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LORD ABBETT CREDIT OPPORTUNITIES FUND
LORD ABBETT FLOATING RATE HIGH INCOME FUND
LORD ABBETT MUNICIPAL OPPORTUNITIES FUND
LORD ABBETT
SPECIAL SITUATIONS INCOME FUND
Supplement dated January 14, 2025 to the
Prospectuses,
as supplemented to date (the “
Prospectuses
”), for
the
Funds
This supplement updates certain information contained in
the
Prospectuses
for
the Funds
. Please
review this important information carefully.
The following paragraph replaces the subsection of the prospectuses titled “Plan of
Distribution
– Purchasing Shares –
Initial Purchases
” and supplements and supersedes any
information to the contrary in each prospectus
.
Initial Purchases.
Lord Abbett Dis
tributor acts as an agent for the Fund to work with financial
intermediaries that buy and sell Shares of the Fund on behalf of their clients. Generally, Lord
Abbett Distributor does not sell Fund Shares directly to investors. Initial purchases of Fund Shar
es
may be made through any financial intermediary that has a sales agreement with Lord Abbett
Distributor. Such financial intermediaries
are authorized to designate other intermediaries to
receive purchase orders on the Fund’s behalf.
Unless you are invest
ing in the Fund through a
retirement and benefit plan, fee-
based program or other financial intermediary, you and your
investment professional may fill out the application and send it to the Fund at the address below.
To open an account through a retirement and benefit plan, fee
-based program or other type of
financial intermediary, you should contact your financial intermediary for instructions on opening
an account.
The following paragraph replaces the second paragraph in the section of the prospectuses
titled
“Plan of Distribution –
Purchasing Shares –
Good Order”
and supplements and
supersedes any information to the contrary in each prospectus
.
Initial and additional purchases of Fund Shares are executed at the NAV next determined after the
Fund, its a
uthorized agent
or
an
authorized financial intermediary
or
such
financial intermediary’s
authorized designee receives your purchase request in good order.
The Fund reserves the right to
modify, restrict or reject any purchase order (including exchanges). All purchase orders are subject
to acceptance by the Fund.
The following paragraph replaces the first paragraph in the section of the prospectuses titled
“Plan of Distribution –
Acceptance and Timing of Purchase Orders
” and supplements and
sup
ersedes any information to the contrary in each prospectus
.
A purchase order received by the Fund
, its designee
or
an author
ized
financial
intermediary or
such
financial
intermediary’s authorized
designee prior to the New York Stock Exchange
(“NYSE”) Clos
e, on a day the NYSE
is open for business, together with payment made in one of
the ways described above will be priced based on the Fund’s
NAV next computed after it is
2
received by the Fund or its f
inancial
intermediary or f
inancial
intermediary’s
authorized
designee
.
An order received after the NYSE Close will be effected at the NAV determined on the next
business day. However, orders received by certain retirement plans and other financial firms on a
business day prior to the NYSE Close and communicated to the Fund or its designee prior to such
time as agreed upon by the Fund and financial firm will be effected at the NAV determined on the
business day the order was received by the financial firm. The Fund will be deemed to have
received a purchase
order when an authorized
financial
intermediary or, if applicable, a f
inancial
intermediary’s authorized designee
, receives the order.
The Fund is “open for business” on each
day the NYSE is open for trading, which excludes the following holidays: New Yea
r’s Day, Martin
Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth National
Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. If the
NYSE is closed due to weather or other extenuating circumstances
on a day it would typically be
open for business, the Fund reserves the right to treat such day as a business day and accept
purchase orders in accordance with applicable law. In such cases, the Fund would accept purchase
and redemption orders until, and calculate its NAV as of, the normally scheduled close of regular
trading on the NYSE for that day, so long as Lord Abbett believes there generally remains an
adequate market to obtain reliable and accurate market quotations. The Fund reserves the right to
close if the primary trading markets of the Fund’s portfolio instruments are closed and the Fund’s
management believes that there is not an adequate market to meet purchase requests. On any
business day when the Securities Industry and Financial Markets As
sociation recommends that the
securities markets close trading early, the Fund may close trading early. Purchase orders will be
accepted only on days which the Fund is open for business.
Capitalized terms used in this Supplement shall, unless otherwise defined herein, have the same
meaning as given in the
Prospectuses
.
Please retain this document for your future reference.
Lord Abbett Municipal Opportunities Fund
PROSPECTUS
October 22, 2024
Class A (MOALX)
Class I (MOILX)
Class U (MUOLX)
The Fund.
Lord Abbett Municipal Opportunities Fund (the ‘‘Fund’’) is a non-diversified, closed-end management
investment company that continuously offers its shares (the ‘‘Shares’’) and is operated as an ‘‘interval fund.’’ The
Fund currently offers three classes of Shares: Class A, Class I, and Class U. Class U Shares have not yet
commenced operations.
Investment Objectives.
The Fund’s primary investment objective is to seek a high level of income exempt from
federal income tax. Capital appreciation is a secondary investment objective.
Investment Strategy.
To pursue its investment objecti
ves, the Fund will invest, under no
rmal conditions, at least 80% of
its net assets, plus the amount of any borro
wings for investment purp
oses, in municipal securities that generate income
that is exempt from federal income tax. The municipal securities in which the Fund may invest may pay interest that is
subject to the federal alternative mi
nimum tax (‘‘AMT’’) for certain taxpa
yers. Although the Fund may invest in
municipal bonds in any rating category, under normal co
nditions, the Fund invests at l
east 75% of its net assets in
municipal bonds rated BBB+/Baa1 or lower (at the time of purc
hase), or an equivalent short-
term rating, a
s applicable,
by an independent rating agency or that are unrated but d
eemed by Lord, Abbett & Co. LLC (‘‘Lord Abbett’’) to be of
comparable quality, with approximately 50% of the Fund’s ne
tassetsexpectedtobeinvestedinlowerratedmunicipal
bonds (commonly referred to as ‘‘below in
vestment grade,’’ ‘‘high yield,’’ or ‘‘junk’’ bonds), which are bonds that are
rated BB+/Ba1 or lower (at the time of purchase), or an equiv
alent short-term rating, as applicable, by an independent
rating agency or are unrated but deemed by Lord Abbett to be of comparable quality.
The Fund also may invest in defaulted securities (i.e., bonds on which the issuer has not paid principal or interest
on time) and securities of issuers that are or may become involved in reorganizations, financial restructurings, or
bankruptcy (commonly referred to as ‘‘distressed debt’’). The Fund presently does not intend to invest more than
20% of its net assets (measured at the time of investment) in such defaulted or distressed securities. However, the
Fund’s defaulted or distressed debt holdings may exceed this level from time to time if the Fund purchased
securities that were not considered in default or distressed at their time of purchase and such securities
subsequently become defaulted or distressed. These investment strategies are higher risk relative to strategies
employed by funds that invest primarily in investment grade municipal bonds.
The Fund may invest in all types of municipal bonds, including general obligation bonds, revenue bonds,
municipal leases, and variable rate demand notes. The Fund may invest in both insured and uninsured municipal
bonds. The Fund also may invest in zero coupon, deferred interest, pay-in-kind, and capital appreciation bonds.
The Fund may invest up to 100% of its net assets in private activity bonds (commonly referred to as ‘‘AMT
paper’’), which are a type of municipal bond that pays interest that is subject to AMT. Although the Fund is
permitted to invest up to 20% of its net assets in fixed income securities that pay interest that is subject to regular
federal income tax, the Fund presently has no intention of investing in this manner. There is a risk that a bond
issued as tax-exempt may be reclassified by the Internal Revenue Service (‘‘IRS’’) as taxable. The Fund will not
invest more than 25% of its total assets in any industry; however, this limitation does not apply to tax-exempt
securities and securities issued by the U.S. Government or its agencies or instrumentalities. Certain types of
municipal securities (including general obligation, general appropriation, municipal leases, special assessment, and
special tax bonds) are not considered a part of any ‘‘industry’’ for purposes of this industry concentration policy.
(continued on following page)
Therefore, the Fund may invest more than 25% of its total assets in these types of municipal securities. The Fund
may invest without limitation in securities of issuers located in a single state, territory, municipality, or region.
The Fund expects to invest 10-25% of its net assets in inverse floaters (although it may invest substantially more
in such investments from time to time), which are a type of derivative investment that provides leveraged exposure
to underlying municipal bonds whose interest payments vary inversely with changes in short-term tax-exempt
interest rates. In pursuit of its principal investment strategy, the Fund also may invest in other types of
derivatives, such as futures, for non-hedging, hedging, or duration management purposes.
The Fund may also invest in other securities, including commercial paper, securities eligible for resale under
Rule 144A of the Securities Act of 1933, as amended (the ‘‘1933 Act’’), and other privately placed securities, and
other debt securities subject to federal income tax. The rate of interest on an income-producing security may be
fixed, floating or variable. The Fund may purchase and sell securities on a when-issued, delayed delivery or
forward commitment basis and may engage in short sales. The Fund may also invest up to 10% of its total assets
in securities of other investment companies (including those advised by Lord Abbett), including closed-end funds,
exchange-traded funds and other open-end funds, that invest primarily in municipal bonds and other municipal
securities of the types in which the Fund may invest directly.
The Fund may invest in individual securities of any maturity or duration. Although the Fund does not target
securities of a particular maturity or duration, the Fund expects to maintain a dollar-weighted average maturity of
between ten and twenty-five years, although it may invest outside of this range.
The Fund’s portfolio management team focuses on credit risk analysis, tax exempt income yield, total return
potential, interest rate risk, and call protection in managing its portfolio. The investment team may also consider
the risks and return potential presented by environmental, social, and governance (‘‘ESG’’) factors in investment
decisions. The Fund does not focus its analysis on any specific ESG factor but rather considers ESG factors
where relevant or material, among other material factors, in the context of a particular investment opportunity.
The Fund can and may invest in companies even if there is a financially material ESG risk. 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 d
efensive strategies are used and thus may not achieve its investment objectives.
Leverage.
The Fund may utilize leverage to seek to achieve its investment objectives. The Fund may use leverage to
the extent permitted by the Investment Company Act of 1940, as amended (the ‘‘1940 Act’’). The Fund may obtain
leverage through investments in residual interest certificates of tender option bond trusts (also called inverse floating
rate securities, that have the economic effect of leverage because the Fund’s investment exposure to the underlying
bonds held by the trust have been effectively financed by the trust’s issuance of floating rate certificate). The Fund
may also utilize borrowings and the issuance of preferred shares of beneficial interest (‘‘Preferred Shares’’), which
have seniority over the Shares, or a combination thereof. In addition, the Fund may use derivatives such as financial
futures contracts, swap contracts (including interest rate and credit default swaps), or other derivative instruments
that may have the economic effect of leverage. The Fund may buy or sell (write) these derivatives instruments.
There is no assurance that the Fund’s use of leverage will work as planned or achieve its goals.
Interval Fund/Repurchase Offers.
The Fund is an ‘‘interval fund,’’ a type of fund which, in order to provide
liquidity to shareholders, has adopted a fundamental investment policy to make quarterly offers to repurchase
between 5% and 25% of its outstanding Shares at net asset value (‘‘NAV’’) per share. Subject to applicable law
and approval of the Board of Trustees (the ‘‘Board,’’ and each of the trustees on the Board, a ‘‘Trustee’’), for each
quarterly repurchase offer, it is currently expected that the Adviser (as defined below) will recommend that the
Board approve an offer to repurchase 7.5% of the Fund’s outstanding Shares at NAV. The Fund expects its first
repurchase offer to be issued no later than the second full calendar quarter after the date that the Fund’s
registration statement becomes effective.
When a repurchase offer commences, the Fund will send written notice to each shareholder at least twenty-one
(21) days before the date by which shareholders can tender their Shares in response to a repurchase offer (the
‘‘Repurchase Request Deadline’’). The repurchase price will be the NAV of the Fund as determined at the close of
business on a date (the ‘‘Repurchase Pricing Date’’) that will generally be the same date as the Repurchase
Request Deadline, but that may be up to fourteen (14) calendar days following the Repurchase Request Deadline,
or on the next business day if the fourteenth day is not a business day. The Fund expects to distribute payment
to shareholders between one (1) and three (3) business days after the Repurchase Pricing Date and will distribute
such payments no later than seven (7) calendar days after such date. It is possible that a repurchase offer may be
(continued on following page)