SUMMARY PROSPECTUS
Lord Abbett Short Duration Income Fund
APRIL 1, 2025
CLASS/TICKER
CLASS A ............
LALDX
CLASS I...........
LLDYX
CLASS R4 .......
LDLKX
CLASS C............
LDLAX
CLASS P .........
N/A
CLASS R5 .......
LDLTX
CLASS F ............
LDLFX
CLASS R2 .......
LDLQX
CLASS R6 .......
LDLVX
CLASS F3 ..........
LOLDX
CLASS R3 .......
LDLRX
Before you invest, you may want to review the Fund’s prospectus and statement of additional
information, which contain more information about the Fund and its risks. You can find the
Fund’s prospectus, statement of additional information and other information about the Fund at
www.lordabbett.com/documentsandliterature. You can also get this information at no cost by
calling 888-522-2388 (Option #2) or by sending an email request to literature@lordabbett.com.
The current prospectus and statement of additional information dated April 1, 2025 as may be
supplemented from time to time, are incorporated by reference into this summary prospectus.
SUMMARY – SHORT DURATION INCOME FUND
2
INVESTMENT OBJECTIVE
The Fund’s investment objective is to seek a high level of income consistent with
preservation of capital.
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund.
You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the tables
and examples below.
You may qualify for sales charge discounts if you and certain
members of your family invest, or agree to invest in the future, at least $100,000 in
the Lord Abbett Family of Funds. More information about these and other discounts
is available from your financial intermediary and in “Sales Charge Reductions and
Waivers” on page 291 of the prospectus, Appendix A to the prospectus, titled
“Intermediary-Specific Sales Charge Reductions and Waivers,” and “Purchases,
Redemptions, Pricing, and Payments to Dealers” on page 9-1 of Part II of the
statement of additional information (“SAI”).
Shareholder Fees
(1)
(Fees paid directly from your investment)
Class
A
C
F, F3, I, P, R2, R3, R4, R5, and R6
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
2.25%
None
None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption
proceeds, whichever is lower)
None
(2)
1.00%
(3)
None
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Class
A
C
F
F3
I
P
Management Fees
0.25%
0.25%
0.25%
0.25%
0.25%
0.25%
Distribution and Service (12b-1) Fees
0.20%
0.81%
(4)
0.10%
None
None
0.45%
Other Expenses
0.13%
0.13%
0.13%
0.07%
0.13%
0.13%
Total Annual Fund Operating Expenses
0.58%
1.19%
0.48%
0.32%
0.38%
0.83%
SUMMARY – SHORT DURATION INCOME FUND
3
Annual Fund Operating Expenses
(continued)
(Expenses that you pay each year as a percentage of the value of your investment)
Class
R2
R3
R4
R5
R6
Management Fees
0.25%
0.25%
0.25%
0.25%
0.25%
Distribution and Service (12b-1) Fees
0.60%
0.50%
0.25%
None
None
Other Expenses
0.13%
0.13%
0.13%
0.13%
0.07%
Total Annual Fund Operating Expenses
0.98%
0.88%
0.63%
0.38%
0.32%
(1)
A shareholder transacting in share classes without a front-end sales charge may be required to pay a commission to its
financial intermediary. Please contact your financial intermediary for more information about whether such a commission
may apply to your transaction.
(2)
A contingent deferred sales charge (“CDSC”) of 1.00% may be assessed on certain Class A shares purchased or
acquired without a sales charge if they are redeemed before the first day of the month in which the one-year anniversary
of the purchase falls.
(3)
A CDSC of 1.00% may be assessed on Class C shares if they are redeemed before the first anniversary of their
purchase.
(4)
The 12b-1 fee the Fund will pay on Class C shares will be a blended rate calculated based on (i) 1.00% of the Fund’s
average daily net assets attributable to shares held for less than one year and (ii) 0.80% of the Fund’s average daily net
assets attributable to shares held for one year or more. All Class C shareholders of the Fund will bear 12b-1 fees at the
same rate.
Example
This Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your shares
at the end of those periods. The Example also assumes that your investment has a
5% return each year and that the Fund’s operating expenses remain the same. Class
C shares automatically convert to Class A shares after eight years. The expense
example for Class C shares for the ten-year period reflects the conversion to Class A
shares. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
Class
If Shares Are Redeemed
If Shares Are Not Redeemed
1 Year
3 Years
5 Years
10 Years
1 Year
3 Years
5 Years
10 Years
Class A Shares
$
283
$
407
$
542
$
934
$
283
$
407
$
542
$
934
Class C Shares
$
221
$
378
$
654
$
1,273
$
121
$
378
$
654
$
1,273
Class F Shares
$
49
$
154
$
269
$
604
$
49
$
154
$
269
$
604
Class F3 Shares
$
33
$
103
$
180
$
406
$
33
$
103
$
180
$
406
Class I Shares
$
39
$
122
$
213
$
480
$
39
$
122
$
213
$
480
Class P Shares
$
85
$
265
$
460
$
1,025
$
85
$
265
$
460
$
1,025
Class R2 Shares
$
100
$
312
$
542
$
1,201
$
100
$
312
$
542
$
1,201
Class R3 Shares
$
90
$
281
$
488
$
1,084
$
90
$
281
$
488
$
1,084
Class R4 Shares
$
64
$
202
$
351
$
786
$
64
$
202
$
351
$
786
Class R5 Shares
$
39
$
122
$
213
$
480
$
39
$
122
$
213
$
480
Class R6 Shares
$
33
$
103
$
180
$
406
$
33
$
103
$
180
$
406
SUMMARY – SHORT DURATION INCOME FUND
4
Portfolio Turnover.
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in the
annual fund operating expenses or in the example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 92% of the
average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Fund invests in various types of short duration debt (or fixed income) securities.
Under normal conditions, the Fund pursues its investment objective by investing at
least 65% of its net assets in investment grade debt securities of various types. Such
investments include:
•
corporate debt securities of U.S. issuers;
•
corporate debt securities of non-U.S. (including emerging market) issuers that
are denominated in U.S. dollars;
•
mortgage-backed, mortgage-related, and other asset-backed securities, including
privately issued mortgage-related securities and commercial mortgage-backed
securities (“CMBS”);
•
securities issued or guaranteed by the U.S. Government, its agencies and
instrumentalities; and
•
inflation-linked investments.
The Fund may invest in Treasury Inflation Protected Securities (“TIPS”), which are
U.S. Government bonds whose principal automatically is adjusted for inflation as
measured by the Consumer Price Index for All Urban Consumers (“CPI-U”), and
other inflation-indexed securities issued by the U.S. Department of Treasury.
The Fund may invest up to 35% of its net assets in any one or a combination of the
following types of fixed income securities and other instruments:
•
high-yield debt securities (commonly referred to as “lower-rated” or “junk”
bonds);
•
debt securities of non-U.S. (including emerging market) issuers that are
denominated in foreign currencies;
•
loans, including bridge loans, novations, assignments, and participations;
•
convertible securities, including convertible bonds and preferred stocks; and
•
structured securities and other hybrid instruments, including collateralized loan
obligations (“CLOs”).
The Fund will not invest more than 25% of its total assets in any industry; however,
this limitation does not apply to mortgage-backed securities, privately issued
SUMMARY – SHORT DURATION INCOME FUND
5
mortgage-related securities, or securities issued by the U.S. Government, its agencies
and instrumentalities. The Fund may invest substantially in CMBS, including lower-
rated CMBS.
The Fund seeks to manage interest rate risk through its management of the average
duration of the securities it holds in its portfolio. Under normal conditions, the Fund
will maintain its average dollar-weighted duration range between one and three
years. The duration of a security takes into account the pattern of all expected
payments of interest and principal on the security over time, including how these
payments are affected by changes in interest rates.
The Fund may use derivatives to hedge against risk or to gain investment exposure.
Currently, the Fund expects to invest in derivatives consisting principally of futures,
forwards, options, and swaps. The Fund may use derivatives to seek to enhance
returns, to attempt to hedge some of its investment risk, to manage portfolio
duration, as a substitute for holding the underlying asset on which the derivative
instrument is based, or for cash management purposes. For example, the Fund may
invest in or sell short U.S. Treasury futures, securities index futures, other futures,
and/or currency forwards to adjust the Fund’s exposure to the direction of interest
rates, or for other portfolio management reasons.
The portfolio management team buys and sells securities using a relative value-
oriented investment process, meaning the portfolio management team generally
seeks more investment exposure to securities believed to be undervalued and less
investment exposure to securities believed to be overvalued. The portfolio
management team combines top-down and bottom-up analysis to construct its
portfolio, using a blend of quantitative and fundamental research. As part of its top-
down analysis, the portfolio management team evaluates global economic
conditions, including monetary, fiscal, and regulatory policy, as well as the political
and geopolitical environment, in order to identify and assess opportunities and risks
across different segments of the fixed income market. The portfolio management
team employs bottom-up analysis to identify and select securities for investment by
the Fund based on in-depth company, industry, and market research and analysis.
The portfolio management team may actively rotate sector exposure based on its
assessment of relative value. The investment team may also consider the risks and
return potential presented by environmental, social, and governance (“ESG”) factors
in investment decisions. The Fund may engage in active and frequent trading of its
portfolio securities.
The Fund may sell a security when the Fund believes the security is less likely to
benefit from the current market and economic environment, or shows signs of
deteriorating fundamentals, among other reasons. The Fund may deviate from the
investment strategy described above for temporary defensive purposes. The Fund
may miss certain investment opportunities if defensive strategies are used and thus
may not achieve its investment objective.
SUMMARY – SHORT DURATION INCOME FUND
6
PRINCIPAL RISKS
As with any investment in a mutual fund, investing in the Fund involves risk,
including the risk that you may receive little or no return on your investment. When
you redeem your shares, they may be worth more or less than what you paid for
them, which means that you may lose a portion or all of the money you invested in
the Fund. The principal risks of investing in the Fund, which could adversely affect
its performance, include:
•
Portfolio Management Risk:
If the strategies used and investments selected by
the Fund’s portfolio management team fail to produce the intended result, the
Fund may suffer losses or underperform other funds with the same investment
objective or strategies, even in a favorable market.
•
Market Risk:
The market values of securities will fluctuate, sometimes sharply
and unpredictably, based on overall economic conditions, governmental actions
or intervention, market disruptions caused by trade disputes, tariffs or other
factors, political developments, and other factors. Prices of equity securities tend
to rise and fall more dramatically than those of debt securities.
•
Fixed Income Securities Risk:
The Fund is subject to the general risks and
considerations associated with investing in debt securities, including the risk
that issuers will fail to make timely payments of principal or interest or default
altogether. Lower-rated securities in which the Fund may invest may be more
volatile and may decline more in price in response to negative issuer
developments or general economic news due to their increased credit risk
relative to other fixed-income investments. In addition, as interest rates rise, the
Fund’s investments typically will lose value.
•
Foreign Currency Risk:
Investments in securities that are denominated or
receiving revenues in foreign currencies are subject to the risk that those
currencies will decline in value relative to the U.S. dollar, or, in the case of
hedged positions, that the U.S. dollar will decline in value relative to the
currency being hedged. Foreign currency exchange rates may fluctuate
significantly over short periods of time.
•
High Yield Securities Risk:
High yield securities (commonly referred to as
“junk” bonds) typically pay a higher yield than investment grade securities, but
may have greater price fluctuations and have a higher risk of default than
investment grade securities. The market for high yield securities may be less
liquid due to such factors as interest rate sensitivity, negative perceptions of the
junk bond markets generally, and less secondary market liquidity. This may
make such securities more difficult to sell at an acceptable price, especially
during periods of financial distress, increased market volatility, or significant
market decline.
•
Credit Risk:
Debt securities are subject to the risk that the issuer or guarantor
of a security may not make interest and principal payments as they become due
SUMMARY – SHORT DURATION INCOME FUND
7
or may default altogether. In addition, if the market perceives a deterioration in
the creditworthiness of an issuer, the value and liquidity of securities issued by
that issuer may decline. To the extent that the Fund holds below investment
grade securities, these risks may be heightened. Insured debt securities have the
credit risk of the insurer in addition to the credit risk of the underlying
investment being insured.
•
Interest Rate Risk:
As interest rates rise, prices of bonds (including tax-exempt
bonds) generally fall, typically causing the Fund’s investments to lose value.
Additionally, rising interest rates or lack of market participants may lead to
decreased liquidity in fixed income markets. Interest rate changes generally
have a more pronounced effect on the market value of fixed-rate instruments,
such as corporate bonds, than they have on floating rate instruments, and
typically have a greater effect on the price of fixed income securities with longer
durations. A wide variety of market factors can cause interest rates to rise,
including central bank monetary policy, rising inflation, and changes in general
economic conditions.
•
Liquidity/Redemption Risk:
The Fund may lose money when selling securities
at inopportune times to fulfill shareholder redemption requests. The risk of loss
may increase depending on the size and frequency of redemption requests,
whether the redemption requests occur in times of overall market turmoil or
declining prices, and whether the securities the Fund intends to sell have
decreased in value or are illiquid. The Fund may be less able to sell illiquid
securities at its desired time or price. It may be more difficult for the Fund to
value its investments in illiquid securities than more liquid securities.
•
Government Securities Risk:
The Fund invests in securities issued or
guaranteed by the U.S. Government or its agencies and instrumentalities (such
as the Government National Mortgage Association (“Ginnie Mae”), the Federal
National Mortgage Association (“Fannie Mae”), or the Federal Home Loan
Mortgage Corporation (“Freddie Mac”)). Different types of U.S. government
securities are subject to different levels of credit risk, including the risk of
default, depending on the nature of the particular government support for that
security. Unlike Ginnie Mae securities, securities issued or guaranteed by U.S.
Government-related organizations, such as Fannie Mae and Freddie Mac, are
not backed by the full faith and credit of the U.S. Government and no assurance
can be given that the U.S. Government would provide financial support.
•
Mortgage-Related and Other Asset-Backed Securities Risk:
Mortgage-
related securities, including CMBS and other privately issued mortgage-related
securities, and other asset-backed securities may be particularly sensitive to
changes in prevailing interest rates and economic conditions, including
delinquencies and defaults. The prices of mortgage-related and other asset-
backed securities, depending on their structure and the rate of payments, can be
volatile. They are subject to prepayment risk (higher than expected prepayment
rates of mortgage obligations due to a fall in market interest rates) and extension
SUMMARY – SHORT DURATION INCOME FUND
8
risk (lower than expected prepayment rates of mortgage obligations due to a rise
in market interest rates). These risks increase the Fund’s overall interest rate
risk. Some mortgage-related securities receive government or private support,
but there is no assurance that such support will remain in place.
•
Commercial Mortgage-Backed Securities Risk:
CMBS include securities that
reflect an interest in, and are secured by, mortgage loans on commercial real
property. Many of the risks of investing in CMBS reflect the risks of investing
in the real estate securing the underlying mortgage loans. These risks reflect the
effects of local and other economic conditions on real estate markets, the ability
of tenants to make loan payments, and the ability of a property to attract and
retain tenants. The economic impacts of COVID-19 have created a unique
challenge for real estate markets, with the transition to remote-working
environments potentially negatively impacting the occupancy rates of
commercial real estate. CMBS may be less liquid and exhibit greater price
volatility than other types of mortgage- or asset-backed securities.
•
Convertible Securities Risk:
Convertible securities are subject to the risks
affecting both equity and fixed income securities, including market, credit,
liquidity, and interest rate risk. Convertible securities tend to be more volatile
than other fixed income securities, and the markets for convertible securities
may be less liquid than markets for common stocks or bonds. A significant
portion of convertible securities have below investment grade credit ratings and
are subject to increased credit and liquidity risks.
•
Inflation-Linked Investments Risk:
Unlike traditional fixed income securities,
the principal and interest payments of inflation-linked investments are adjusted
periodically based on the inflation rate. The value of the Fund’s inflation-linked
investments may be vulnerable to changes in expectations of inflation or interest
rates and there is no guarantee that the Fund’s use of these instruments will be
successful.
•
Foreign and Emerging Market Company Risk:
Investments in foreign
companies and in U.S. companies with economic ties to foreign markets
generally involve special risks. These companies may be more vulnerable to
economic, political, and social instability and subject to less government
supervision, lack of transparency, inadequate regulatory and accounting
standards, and foreign taxes. Foreign company securities also include American
Depositary Receipts (“ADRs”), which may be less liquid than the underlying
shares in their primary trading market. Foreign securities also may subject the
Fund’s investments to changes in currency exchange rates. Emerging market
securities generally are more volatile than other foreign securities, and are
subject to greater liquidity, regulatory, and political risks. Investments in
emerging markets may be considered speculative and generally are riskier than
investments in more developed markets. Emerging markets are more likely to
experience hyperinflation and currency devaluations. Securities of emerging
market companies may have far lower trading volumes and less liquidity than