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1
Schedule of Investments (unaudited)
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LONG-TERM INVESTMENTS 104.32%
CORPORATE BONDS 2.29%
Health Care Services 2.29%
Care New England Health System
(cost $195,918)
5.50%
9/1/2026
$200,000 $ 196,500
MUNICIPAL BONDS 102.03%
Corporate-Backed 10.76%
Arkansas Development Finance Authority–
Hybar LLC AMT
†
7.375%
7/1/2048
NR 200,000
221,761
New York Liberty Development Corp.–
3 World Trade Center LLC
†
7.25% 11/15/2044
NR 300,000
300,348
Ohio Air Quality Development Authority–
AMG Vanadium LLC AMT
†
5.00%
7/1/2049
B3 250,000
233,288
Public Finance Authority–Sky Harbour
Capital LLC Obligated Group WI AMT
4.25%
7/1/2054
NR 200,000
168,553
Total
923,950
Education 7.81%
Chester County Health & Education
Facilities Authority–Immaculata
University PA
4.25%
11/1/2032
BB-
(a)
135,000
119,469
Cleveland-Cuyahoga County Port
Authority OH
†
5.875%
1/1/2049
NR 300,000
293,769
Illinois Finance Authority–Benedictine
University
5.00%
10/1/2038
BBB- 300,000
257,430
Total
670,668
General Obligation 4.06%
Grapevine Wash Local District–Grapevine
Wash Local District Residential Facilities
Fee Revenue UT GO
†
6.00%
3/1/2055
NR 200,000
196,383
Mineral Business Improvement District
CO GO
†
5.75% 12/1/2054
NR 150,000
151,989
Total
348,372
Health Care 35.38%
Arizona Industrial Development
Authority–Navajo Health Foundation-Sage
Memorial Hospital Inc Obligated Group
†
7.625%
5/1/2054
NR 200,000
198,665
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Schedule of Investments (unaudited)(continued)
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Health Care (continued)
Berks County Municipal Authority–
Tower Health Obligated Group PA
Zero Coupon 6/30/2044
NR $316,000 $ 222,694
California Statewide Communities
Development Authority–Loma Linda
University Medical Obligated Group
5.50% 12/1/2054
BB 530,000
530,091
City of Venice–Southwest Florida
Retirement Center Inc Obligated Group FL
†
5.625%
1/1/2060
BB+
(a)
250,000
253,722
Harris County Cultural Education
Facilities Finance Corp.–Brazos
Presbyterian Homes Obligated Group TX 5.125%
1/1/2048
BB+
(a)
100,000
100,005
King County Public Hospital
District No. 4 WA
6.25% 12/1/2045
NR 100,000
100,103
Maryland Health & Higher Educational
Facilities Authority
(
b)
5.00%
7/1/2054
A+ 200,000
213,173
Maryland Health & Higher Educational
Facilities Authority
(b)
5.25%
7/1/2054
A+ 200,000
213,173
Niagara Area Development Corp.–Catholic
Health System Obligated Group NY
4.50%
7/1/2052
B- 250,000
217,156
North Carolina Medical Care Commission–
Penick Village Obligated Group
5.50%
9/1/2054
NR 150,000
150,434
Oklahoma Development Finance Authority–
OU Medicine Obligated Group
5.25% 8/15/2048
BB 240,000
242,458
Palomar Health Obligated Group CA
5.00%
11/1/2039
BB+ 110,000
98,090
Public Finance Authority–QCF Behavioral
Hospitals I Obligated Group WI
†
7.50%
7/1/2059
NR 250,000
282,630
South Carolina Jobs-Economic Development
Authority–Kiawah Life Plan Village Inc
7.75% 11/15/2058
NR 200,000
216,035
Total
3,038,429
Housing 6.05%
California Public Finance Authority–P3
Irvine SL Holdings LLC Obligated Group
†
6.375%
6/1/2059
NR 300,000
286,546
New Jersey Economic Development
Authority–Provident Group-Rowan
Properties LLC
5.00%
1/1/2048
B1 250,000
232,873
Total
519,419
Other Revenue 3.95%
Commonwealth of Puerto Rico GO Zero Coupon
#(c)
11/1/2051
NR 139,832
86,870
Public Finance Authority–Inperium
Inc Obligated Group WI
†
5.75% 12/1/2054
NR 250,000
252,242
Total
339,112
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3
Schedule of Investments (unaudited)(continued)
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Special Tax 7.76%
New York City Transitional Finance
Authority
(
b)
5.50%
5/1/2052
AAA $400,000 $ 447,112
Rocky Mountain Rail Park Metropolitan
District CO GO
†
5.00%
12/1/2051
NR 250,000
219,335
Total
666,447
Tax Revenue 6.57%
Mida Mountain Village Public Infrastructure
District–Military Installation Development
Auth Military Recreation Fac Project
Area UT
†
6.00% 6/15/2054
NR 125,000
128,943
New York State Dormitory Authority–
State of New York Personal Income Tax
Revenue
(b)
5.25% 3/15/2052
Aa1 400,000
435,680
Total
564,623
Tobacco 7.22%
Buckeye Tobacco Settlement Financing
Authority OH
5.00%
6/1/2055
NR 400,000
355,021
California Statewide Financing
Authority
Zero Coupon
6/1/2046
NR 500,000
127,083
TSASC, Inc. NY
5.00%
6/1/2048
NR 150,000
137,600
Total
619,704
Transportation 12.47%
Florida Development Finance Corp.–
AAF Operations Holdings LLC AMT
†
10.00%
#(c)
7/15/2059
NR 500,000
514,673
Florida Development Finance Corp.–
AAF Operations Holdings LLC AMT
†
12.00%
#(c)
7/15/2032
NR 250,000
266,636
Maryland Economic Development Corp.–
CONSOL Marine Terminals LLC
5.75%
9/1/2025
BB
25,000
25,187
Public Finance Authority–Million Air
Three Obligated Group WI
†
9.75%
9/1/2054
NR 250,000
263,929
Total
1,070,425
Total Municipal Bonds
(cost $8,724,138)
8,761,149
Total Investments in Securities 104.32%
(cost $8,920,056)
8,957,649
Other Assets and Liabilities – Net (4.32)%
(370,562)
Net Assets 100.00%
$8,587,087
AMT Income from the security may be subject to Alternative Minimum Tax.
NR Not Rated.
†
Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such
Act or exempted from registration, may only be resold to qualified institutional buyers. At December 31, 2024, the
total value of Rule 144A securities was $4,064,859, which represents 47.34% of net assets.
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Schedule of Investments (unaudited)(concluded)
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#
Variable rate security. The interest rate represents the rate in effect at December 31, 2024.
(a)
This investment has been rated by Fitch IBCA.
(b)
Municipal Bonds Held in Trust – Securities represent underlying bonds transferred to a separate securitization trust
e
stablished in a tender option bond transaction in which the Fund acquired the residual interest certificates. These
securities serve as collateral in a financing transaction.
(c)
Variable Rate is Fixed to Float: Rate remains fixed or at Zero Coupon until designated future date.
The following is a summary of the inputs used as of December 31, 2024 in valuing the Fund’s investments
carried at fair value
(1)
:
Investment Type
(2)
Level 1
Level 2
Level 3
Total
Long-Term Investments
Corporate Bonds
$
–
$ 196,500 $
–
$ 196,500
Municipal Bonds
(3)
–
8,761,149
–
8,761,149
Total
$
–
$8,957,649 $
–
$8,957,649
(1)
Refer to Note 2(b) for a description of fair value measurements and the three-tier hierarchy of inputs.
(2)
See Schedule of Investments for fair values in each industry. The table above is presented by Investment Type.
Industries are presented within an Investment Type should such Investment Type include securities classified as two
or more levels within the three-tier fair value hierarchy. When applicable, each Level 3 security is identified on the
Schedule of Investments along with the valuation technique utilized.
(3)
Includes Municipal Bonds held in the Trust.
A reconciliation of Level 3 investments is presented when the Fund has a material amount of Level 3
investments at the beginning or end of the period in relation to the Fund’s net assets.
4
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5
1. ORGANIZATION
Lord Abbett Municipal Opportunities Fund (the ‘‘Fund’’) is registered under the Investment Company
Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment
company that continuously offers its common shares (the “Shares”) and is operated as an interval
fund. The Fund was organized as a Delaware statutory trust on July 3, 2024. The Fund had a sale to
Lord, Abbett & Co. LLC (“Lord Abbett”) of 10,000 shares of common stock for $100,000 ($10.00 per
share). The Fund commenced operations on October 22, 2024.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)
Investment Valuation–
Under procedures approved by the Fund’s Board of Trustees
(the “Board”), the Board has designated the determination of fair value of the Fund’s
portfolio investments to Lord Abbett as its valuation designee. Accordingly, Lord Abbett is
responsible for, among other things, assessing and managing valuation risks, establishing,
applying and testing fair value methodologies, and evaluating pricing services. Lord Abbett
has formed a Pricing Committee that performs these responsibilities on behalf of Lord
Abbett, administers the pricing and valuation of portfolio investments and ensures that
prices utilized reasonably reflect fair value. Among other things, these procedures allow
Lord Abbett, subject to Board oversight, to utilize independent pricing services, quotations
from securities and financial instrument dealers and other market sources to determine
fair value. Securities are valued based on evaluated prices supplied by independent pricing
services, which reflect broker/dealer supplied valuations and the independent pricing
services’ own electronic data processing techniques. Exchange traded options and futures
contracts are valued at the last quoted sale price in the market where they are principally
traded. If no sale has occurred, the mean between the most recently quoted bid and ask
prices is used.
Securities for which prices are not readily available are valued at fair value as determined by
the Pricing Committee. The Pricing Committee considers a number of factors, including
observable and unobservable inputs, when arriving at fair value. The Pricing Committee may
use related or comparable assets or liabilities, recent transactions, market multiples, book
values, and other relevant information to determine the fair value of portfolio investments.
The Board or a designated committee thereof periodically reviews reports that may include
fair value determinations made by the Pricing Committee, related market activity, inputs and
assumptions, and retrospective comparison of prices of subsequent purchases and sales
transactions to fair value determinations made by the Pricing Committee.
Short-term securities with 60 days or less remaining to maturity are valued using the
amortized cost method, which approximates fair value.
(b)
Fair Value Measurements–
Fair value is defined as the price that the Fund would receive
upon selling an investment or transferring a liability in an orderly transaction to an
independent buyer in the principal or most advantageous market of the investment. A
three-tier hierarchy is used to maximize the use of observable market data and minimize the
use of unobservable inputs and to establish classification of fair value measurements for
disclosure purposes. Inputs refer broadly to the assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk - for example, the risk
inherent in a particular valuation technique used to measure fair value (such as a pricing
model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be
Notes to Schedule of Investments (unaudited)
6
Notes to Schedule of Investments (unaudited)(continued)
observable or unobservable. Observable inputs reflect the assumptions market participants
would use in pricing the asset or liability. Observable inputs are based on market data
obtained from sources independent of the reporting entity. Unobservable inputs reflect the
reporting entity’s own assumptions about the assumptions market participants would use in
pricing the asset or liability. Unobservable inputs are based on the best information available
in the circumstances. The three-tier hierarchy classification is determined based on the
lowest level of inputs that is significant to the fair value measurement, and is summarized
in the three broad Levels listed below:
• Level 1 – unadjusted quoted prices in active markets for identical investments;
• Level 2 – other significant observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk, etc.); and
• Level 3 – significant unobservable inputs (including Fund’s own assumptions in
determining the fair value of investments).
A summary of inputs used in valuing Fund’s investments as of December 31, 2024 and, if
applicable, Level 3 rollforwards for the period then ended is included in Fund’s Schedule
of Investments.
Changes in valuation techniques may result in transfers into or out of an assigned level
within the three-tier hierarchy. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
3. FEDERAL TAX INFORMATION
It is the policy of Fund to meet the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all taxable income
and capital gains to its shareholders. Therefore, no income tax provision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns are
currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax
returns remains open generally three years after the filing of the tax return. The statute of
limitations on the Fund’s, state and local tax returns may remain open for an additional year
depending upon the jurisdiction.
4. SECURITIES LENDING AGREEMENT
The Fund has established a securities lending agreement with Citibank, N.A. for the lending of
securities to qualified brokers in exchange for securities or cash collateral equal to at least the
market value of securities loaned, plus interest, if applicable. Cash collateral is invested in an
approved money market fund. In accordance with the Fund’s securities lending agreement, the
market value of securities on loan is determined each day at the close of business and any
additional collateral required to cover the value of securities on loan is delivered to the Fund on
the next business day. As with other extensions of credit, the Fund may experience a delay in the
recovery of its securities or incur a loss should the borrower of the securities breach its
agreement with the Fund or the borrower becomes insolvent at a time when the collateral is
insufficient to cover the cost of repurchasing securities on loan.
The initial collateral received by the Fund is required to have a value equal to at least 100% of
the market value of the securities loaned. The collateral must be marked-to-market daily to cover
increases in the market value of the securities loaned (or potentially a decline in the value of the
collateral). In general, the risk of borrower default will be borne by Citibank, N.A.; the Fund will
bear the risk of loss with respect to the investment of the cash collateral. The advantage of such
loans is that the Fund continues to receive income on loaned securities while receiving a portion
of any securities lending fees and earning returns on the cash amounts which may be reinvested
for the purchase of investments in securities.
As of December 31, 2024, the Fund did not have any securities on loan.
7
Notes to Schedule of Investments (unaudited)(concluded)