ULTRA SHORT BOND FUND - Lord Abbett
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ULTRA SHORT BOND FUND
Market & Product Opportunity
JUNE 30, 2019
Lord, Abbett & Co. LLC
Copyright © 2019 by Lord, Abbett & Co. LLC. All rights reserved. Lord Abbett Distributor LLC
Lord Abbett mutual fund shares are distributed by Lord Abbett Distributor LLC. 90 Hudson Street, Jersey City, NJ 07302-3973
This presentation has been prepared exclusively for use by analysts, institutional investors and their consultants, registered investment advisors, broker-dealers, and
sponsors of plans with a minimum of 100 participants. It is not intended for, and should not be used with, small plan sponsors, plan participants, or the public in written or
oral form or for any other purpose.OUR FIRM
INVESTMENT-LED. INVESTOR-FOCUSED.
AT A GLANCE
Independent, privately held firm
50 partners
Assets under management: $185.4 billion*
167 investment professionals with an average of 18 years of industry experience
2
INVESTMENT-LED. INVESTOR-FOCUSED.
OUR FIRM OUR MISSION OUR DIFFERENTIATORS
A singular focus on the Delivering superior long-term Independent Perspective
management of money investment performance and a
Commitment to Active Management
since 1929 client experience that exceeds
expectations Intelligent Product Design
Data as of 06/30/2019.
*Includes approximately $1.2 billion for which Lord Abbett provides investment models to managed account sponsors.TAXABLE FIXED INCOME INVESTMENT CAPABILITIES
ASSETS UNDER MANAGEMENT BY STRATEGY & CAPABILITY
(AS OF 06/30/2019)
Strategy Assets Capability Assets
Total Taxable Fixed Income $131,742,226,960 Total Corporate Credit $71,301,406,502
Money Market $361,541,903 Investment Grade Corporate $34,019,035,970
U.S. IG Corporate $22,921,360,095
Ultra Short $18,655,914,991
Non-U.S IG Corporate $11,097,675,875
Short Duration Credit $55,545,947,255
High Yield Corporate $17,695,014,957
Intermediate Government/Credit $403,898,673
U.S. HY Corporate $14,646,013,078
Government $263,621,289
Non-U.S. HY Corporate $3,049,001,879 3
Core $2,845,036,283 Short Duration High Yield $3,738,327,420
Core Plus $7,298,789,012 U.S. HY Corporate $2,999,160,508
Inflation Focused $1,224,868,061 Non-U.S. HY Corporate $739,166,912
Corporate Credit $2,415,238,872 Bank Loans $14,171,515,448
Convertibles $1,677,512,707
Bank Loan $11,807,782,116
Total Securitized Products $43,984,776,250
Multi Sector $16,248,173,427
Commercial MBS $15,881,055,638
Global Multi Sector $71,888,288
Asset Backed Securities $22,914,033,478
Emerging Markets Corporate $59,363,536
Residential MBS $5,189,687,134
Emerging Markets Bond $183,905,995 U.S. Government Related $5,831,121,569
High Yield Core $4,380,740,428 Emerging Markets Debt $5,853,426,678
High Yield Opportunistic $8,490,261,242 EM Corporate $4,218,078,524
Convertible $1,441,710,852 EM Sovereign US$ $1,585,434,625
Credit Opportunities $43,544,737 EM Sovereign Local Currency $49,913,529
Assets under management data is as of 06/30/2019 unless noted and includes approximately $612.1 million for which Lord Abbett provides investment models to managed
account sponsors. In addition to the strategies listed above, the fixed income asset totals include the fixed income portion of the multi-asset class strategies managed by Lord
Abbett. Strategy and Capability total assets may differ since only key capabilities are displayed.INVESTMENT TEAM
Collaborative Team with Deep Sector Expertise
Robert A. Lee Additional Lord Abbett
Partner & Chief Investment Officer Equity and Fixed-Income
Investment Professionals
28 Years
Steven F. Rocco, CFA
Partner & Director of Taxable Fixed Income
18 Years
Leveraged Credit
Kewjin Yuoh Andrew H. O’Brien, CFA Jeffrey D. Lapin, J.D. Alan R. Kurtz Leah G. Traub, Ph.D John J. Morton, CFA
Partner & Partner & Partner & Portfolio Manager Partner & Portfolio Manager
Portfolio Manager Portfolio Manager Portfolio Manager 19 Years Portfolio Manager 34 Years
25 Years 21 Years 22 Years Convertibles 18 Years Emerging Markets
Liquid & Securitized Corporates Bank Loans Currency
Products 4
GLOBAL CREDIT RESEARCH PORTFOLIO MANAGEMENT TRADING
Gregory S. Parker, CFA Manish S. Rajguru, CFA Robert S. Clark, CFA Kearney Posner, CFA Andrew M. Khatri
Partner & Director of Global Fixed
Partner & Director of CMBS Multi-Sector Bank Loans Income Trading
Global Credit Research 28 Years 22 Years 20 Years 17 Years
28 Years
Emanuela Scura Yoana Koleva, CFA Christopher Gizzo, CFA
Hyun Lee, CFA
Managing Director Managing Director 10 Additional Traders
Partner & Deputy Director of Rates/MBS
Corporates High Yield 12 Years Average
Global Credit Research 18 Years 16 Years 11 Years
18 Years
Adam C. Castle, CFA 16 Additional Investment Professionals
23 Additional Research Analysts ABS INVESTMENT STRATEGISTS
12 Years Average
16 Years Average 11 Years
Joseph Graham, CFA
20 Years
QUANTITATIVE RESEARCH ADDITIONAL RESOURCES RISK MANAGEMENT
Timothy Paulson
Walter H. Prahl, Ph.D. 20 Years
Alec Crawford
Partner & Director, 34 Years Giulio Martini Partner & Chief Investment Risk Officer Andrew Fox, CFA
Bjorn Flesaker, Ph.D Partner & Director of 31 Years 20 Years
Director, Fixed Income, 27 Years Strategic Asset Allocation
34 Years 4 Additional Risk Professionals Ritchie Oriol
11 Additional Investment Professionals
15 Years Average
16 Years Average 23 Years
66 investment professionals with 16 years average industry experience
As of 06/30/2019. Years of industry experience as of 01/01/2019.CATEGORY OVERVIEW: ULTRA SHORT BOND
MORNINGSTAR CATEGORY DEFINITIONS
DURATION RANGES
0 – 1 YEAR 1- 3.5 YEAR 3.5 - 6 YEAR
Ultra Short Short Term Intermediate
Bond Bond Term Bond
6WHY ULTRA SHORT BONDS?
■ Higher Income and Total Return Potential versus Money Markets
■ Lower Volatility than Short- and Intermediate-Term Bonds
■ Diversification Benefits Due to Low Correlation
7
■ Attractive Performance During Periods of Rising RatesU.S. CASH BALANCES REMAIN HIGH
CASH & SHORT TERM ASSETS VERSUS MONEY MARKET ASSETS
(AS OF 06/30/2019)
$16,000
Total Cash & Short Term Assets* $14.9
Trillion
$14,000 ICI U.S. Money Market Mutual Fund Assets
$12,000
$10,000
8
$B
$8,000
$6,000
$4,000
$3.2
$2,000
Trillion
$0
Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19
Source: Investment Company Institute data, Federal Reserve, and Bloomberg.
For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.
*Total cash and short-term assets include money market assets (ICI), large time deposits, all commercial banks, NSA (not seasonally adjusted), savings deposits,
and small time deposits.PORTFOLIO BENEFITS OF ULTRA SHORT BONDS
LOWER VOLATILITY LOWER CORRELATION
TRAILING 5-YEAR STANDARD DEVIATION TRAILING 5-YEAR CORRELATION
1.2
3.5
2.94 1.00
3.0 1.0 0.97
2.61
2.5 0.80
0.8
2.0
0.6 9
1.5
0.4
0.98
1.0
0.2 0.16
0.5 0.38
0.0 0.0
Bloomberg Barclays Morningstar Morningstar Short- Morningstar Bloomberg Morningstar Morningstar Short- Morningstar
U.S. Aggregate Intermediate Core Term Bond Ultrashort Bond Barclays U.S. Intermediate Core Term Bond Ultrashort Bond
Bond Aggregate Bond
Less than 20% of the volatility of the Provides diversification benefits
broad U.S. Bond Market
Source: Morningstar. Data as of 06/30/2019.
Data represents standard deviation and correlation statistics for the Bloomberg Barclays U.S. Aggregate Bond Index and Morningstar Category averages. For illustrative
purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment, and not intended to predict or depict future results.
Diversification does not guarantee a profit or protect against loss in declining markets. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not
available for direct investment.BENEFITS OF INVESTMENT GRADE FLOATING RATE NOTES
FLOATING RATE NOTES HAVE HAD LOW VOLATILITY
4.0%
3 Year Standard Deviation
3.03%
3.0%
2.0%
0.95%
1.0% 0.60%
0.28%
0.0%
Bloomberg Barclays U.S. Bloomberg Barclays 1-3 Year Bloomberg Barclays FRN Bloomberg Barclays FRN 10
Aggregate Bond Index Treasury Index Index (< 18 month) Index
FLOATING RATE COUPONS ADJUST WITH RISING SHORT-TERM RATES
3.80
3-Month Libor FRN Index: Avg. Coupon
3.40
3.00 2.79%
Rate (%)
2.60
2.20 2.32%
1.80
1.40
1.00
0.60
0.20
Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Data as of 06/30/2019. Past Performance is not a reliable indicator or guarantee of future results. The historical data are for illustrative purposes only, do not
represent the performance of any specific portfolio managed by Lord Abbett or any particular investment, and are not intended to predict or depict future results.
Source: Morningstar Direct & Bloomberg Barclays.FLOATERS HAVE PERFORMED WELL DURING RISING LONG TERM RATES
INDEX RETURNS DURING THE EIGHT PERIODS OF GREATER THAN 100 BPS
RISE IN THE 10-YEAR U.S. TREASURY YIELD (MONTH-END ANNUALIZED RETURNS)
10-Year Bloomberg IG Corporate Floating High
Short-Term Convertible
Period U.S. Barclays Floating Rate Yield S&P 5008
Corporates4 Bonds7
Treasury1 Aggregate2 Rate Notes3 Loans5 Bonds6
09/30/1993 –
11/30/1994
-8.9% -3.0% - 2.1% 11.3% 1.2% -2.7% 1.8%
01/31/1996 –
08/31/1996
-6.0% -1.8% - 1.7% 4.8% 3.1% 5.4% 3.9%
09/30/1998 –
01/31/2000
-7.7% -0.6% - 4.2% 4.9% 3.7% 41.4% 28.3%
11
06/30/2005 –
-5.8% -0.8% 4.6% 2.3% 6.7% 4.7% 9.4% 8.6%
06/30/2006
12/31/2008 –
-9.9% 5.9% 8.8% 21.3% 44.9% 57.5% 49.1% 26.5%
12/31/2009
08/31/2010 –
-6.1% -0.8% 1.6% 2.3% 7.4% 10.3% 19.2% 27.8%
03/31/2011
07/31/2012 –
-6.2% -1.1% 1.8% 3.2% 7.0% 9.5% 22.9% 25.7%
12/31/2013
06/30/2016 –
-7.5% -2.5% 1.2% 0.6% 5.4% 7.5% 8.3% 8.1%
12/31/2016
Source: Morningstar
During periods of sharply rising U.S. Treasury yields, credit sensitive sectors of the bond market, such as High
Yield Bonds, Floating Rate Loans, and Convertible Bonds, historically have done well.
1 FTSE 10 Year Treasury Bond Index 2 Bloomberg Barclays U.S. Aggregate Bond Index
3 Bloomberg Barclays U.S. Floating Rate Note Index 4 ICE BofAML U.S. Corporate BBB-Rated 1-3 Year Index
5 Credit Suisse Leveraged Loan Index 6 ICE BofAML High Yield Master II Index
7ICE BofAML All Convertibles All Qualities Index 8 S&P 500 Index
Past performance is not a reliable indicator or guarantee of future results. Performance during other time periods may have been different or
negative. Other indexes may not have performed in the same manner under similar conditions. Source: Morningstar. For illustrative purposes only and does
not represent any specific portfolio managed by Lord Abbett or any particular investment. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are
not available for direct investment. No data available for Floating Rate Note Index prior to 2003.PERFORMANCE DURING RISING RATES
PERFORMANCE DURING PERIODS OF FED RATE HIKES
Bloomberg Barclays U.S. Morningstar Ultrashort
Date 10- Year U.S. Treasury
Aggregate Bond Index Bond
12/15/1986 – 09/04/1987 -6.3% -0.4% 1.7%
03/28/1988 – 02/24/1989 2.5% 3.4% 6.0%
02/03/1994 – 02/01/1995 -7.1% -2.2% 2.5%
06/29/1999 – 05/16/2000 -0.3% 2.2% 4.3%
06/29/2004 – 06/29/2006 1.9% 3.1% 2.7%
Average -1.9% 1.2% 3.4%
12
PERFORMANCE DURING PERIODS OF RISING TREASURY YIELDS
Bloomberg Barclays U.S. Morningstar Ultrashort
Date 10- Year U.S. Treasury
Aggregate Bond Index Bond
09/30/1993 – 11/30/1994 -8.9% -3.0% 2.1%
01/31/1996 – 08/31/1996 -6.0% -1.8% 2.7%
09/30/1998 – 01/31/2000 -7.7% -0.6% 4.3%
06/30/2005 – 06/30/2006 -5.8% -0.8% 3.3%
12/31/2008 – 12/31/2009 -9.9% 5.9% 7.2%
08/31/2010 – 03/31/2011 -6.1% -0.8% 0.9%
07/31/2012 – 12/31/2013 -6.2% -1.1% 0.8%
06/30/2016 – 12/31/2016 -7.5% -2.5% 0.6%
Average -7.3% -0.6% 2.7%
Source: Morningstar. 10-Year Treasury represented by FTSE 10 Year Treasury Bond Index. Past performance is not a reliable indicator or guarantee of
future results. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment. Indexes are
unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.MONEY MARKET FUND REFORM IMPACTING SHORT TERM MARKETS
SEC REGULATIONS FOR MONEY MARKET MUTUAL FUNDS
Net Asset Redemption Redemption
Retail & Institutional Funds
Value Fee Suspension
Government Stable at $1.00 None* None*
*Government money market funds are permitted, but not required, to impose redemption fees and restrictions
Retail Funds Net Asset Redemption Redemption
Ownership is restricted to individual investors
(defined as “natural persons”) Value Fee Suspension
13
Prime Up to 10
Stable at $1.00 Up to 2%
Municipal/Tax-Exempt business days
Institutional Funds Net Asset Redemption Redemption
Ownership is open to all investors, including
individual investors Value Fee Suspension
Prime Up to 10
Floating Up to 2%
Municipal/Tax-Exempt business days
Source: U.S. Securities and Exchange Commission (SEC). For illustrative purposes only. An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of
your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell
shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. The fund’s sponsor has no legal obligation to provide financial
support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.ASSETS HAVE SHIFTED TO GOVERNMENT MONEY MARKET FUNDS
PRIME MONEY MARKET FUND ASSETS GOVERNMENT-ONLY FUND ASSETS
(10/07/2015 – 06/30/2019) (10/07/2015 – 06/30/2019)
$1,500 $2,600
$2,400
$1,300
$2,200
$2,000
$1,100
$1,800
Assets ($B)
Assets ($B)
14
$900 $1,600
Assets have $1,400 Assets have
$700 declined by increased by
$1,200
almost $1T over $1T
$1,000
$500
$800
$300 $600
Oct-15
Dec-15
Apr-16
Aug-16
Oct-16
Dec-16
Apr-17
Aug-17
Oct-17
Dec-17
Apr-18
Aug-18
Oct-18
Dec-18
Apr-19
Jun-16
Jun-17
Jun-18
Jun-19
Feb-16
Feb-17
Feb-18
Feb-19
Oct-15
Dec-15
Apr-16
Oct-16
Dec-16
Apr-17
Oct-17
Dec-17
Apr-18
Oct-18
Dec-18
Apr-19
Aug-16
Aug-17
Aug-18
Jun-16
Jun-17
Jun-18
Jun-19
Feb-16
Feb-17
Feb-18
Feb-19
Assets have declined in money market funds due to fund manager conversions
and investor outflows
Source: Bloomberg and ICI Money Market Fund data. For illustrative purposes only, does not represent the performance of any specific portfolio managed by Lord
Abbett or any particular investment, and not intended to predict or depict future results. You could lose money by investing in a money market fund. An investment in
a money market fund is not insured by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve
the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. A fund’s sponsor has no legal obligation to provide financial
support to the fund, and an investor should not expect that the sponsor will provide financial support to the fund at any time.THE LORD ABBETT ULTRA SHORT BOND FUND
FIXED INCOME LINE-UP
LORD ABBETT ULTRA SHORT BOND FUND
Seeks to generate higher income and potential total return versus cash or money market funds, with
potentially less volatility and lower interest rate risk than short or intermediate-term bonds.
POTENTIAL
RETURN
16
Ultra Short Short Core Total Core Inflation Corporate Income Floating Global Bond Emerging Emerging High Convertible
Short Duration Duration Fixed Return Plus Focused Bond Rate Bond Debenture Markets Markets Yield
Bond Core Bond Income Income Bond Corporate Bond
Debt
RELATIVE RISK
The chart represents Lord Abbett’s assessment of the relative level of investment risk and potential investment return among the Lord Abbett taxable fixed-income Funds
listed in the chart. The information is intended to graphically depict Lord Abbett’s overall assessment of relative risk and potential return. It is not intended to depict any
specific risk measurement, such as standard deviation, for any particular product, nor is it to depict any performance of any particular product. In addition, the graphic above
does not depict different types of investment risk and does not reflect that a portion of a Fund’s portfolio may be invested in securities that have higher investment risk
relative to the overall portfolio. For example, a Fund may be depicted as having relatively lower risk because it had less exposure to interest rate changes; however, the Fund
may hold higher yielding securities that have relatively higher credit risk.MORNINGSTAR CATEGORY DEFINITIONS
DURATION RANGES
0 – 1 YEAR 1- 3.5 YEAR 3.5 - 6 YEAR
Ultra Short Short Term Intermediate
Bond Bond Term Bond
17
LORD ABBETT MUTUAL FUND OFFERINGS
Ultra Short Bond Fund Short Duration Income Fund Core Fixed Income Fund
Total Return Fund
Core Plus Bond FundKEY PORTFOLIO PARAMETERS
LOW DURATION HIGH QUALITY
Limited Interest Rate Exposure Limited Credit Exposure
Average Duration < 1 year 100% Investment Grade*
Average Maturity < 1 year 15% Maximum in BBB
Maximum Maturity Limits:
2.25 years (Fixed Rate Securities)
3.25 years (Floating Rate Securities 18
and other similar instruments)
FLEXIBLE APPROACH
The Fund can seek opportunity across multiple sectors of the ultra short term market, primarily:
Investment Grade Corporate Floating Rate Notes
Commercial Paper
AAA-rated Asset Backed Securities
The strategy will not include high yield* bonds, bank loans or CMBS
*Securities must be rated investment grade at time of purchase. The Fund’s portfolio is actively managed and is subject to change.MANAGED BY AN EXPERIENCED, TENURED TEAM
MANAGED BY A DEEP, EXPERIENCED TEAM:
■ Includes over 65 investment professionals with an average of 15 years industry experience
2010
■ Managed through a collaboration across Portfolio Management, Credit Research, and Trading
■ Recognized for delivering consistent performance
19
*Among 57 qualifying fund families. Based on net total return of the one-year period ending 12/31/2018. Barron's Best Mutual Fund Families, March 11, 2019, Lord
Abbett Funds ranked 21 out of 57, 3 out of 55, 3 out of 49 mutual fund families within the taxable bond category for the 1-, 5- and 10- year periods ending
12/31/2018, respectively. Barron's Best Mutual Fund Families, March 10, 2018, Lord Abbett Funds ranked 3 out of 59, 1 out of 54, and 1 out of 50 mutual fund
families within the taxable bond category for the 1-, 5- and 10- year periods ending 12/31/2017, respectively. Barron's Best Mutual Fund Families, February 11, 2017,
Lord Abbett Funds ranked #1 in the Taxable Bond Category among 61 fund families based on the net total return of the one-year period ending 12/31/2016,
respectively. Barron's Best Mutual Fund Families, February 6, 2016, #21 in the Taxable Bond Category among 67 fund families based on the net total return of the
one-year period ending 12/31/2015. Barron's Best Mutual Fund Families, February 7, 2015, #1 in the Taxable Bond Category among 65 fund families. Based on the
net total return of the one-year period ending 12/31/2014. Barron's Best Mutual Fund Families, February 8, 2014, #3 in the Taxable Bond Category among 64 fund
families. Based on the net total return of the one-year period ending 12/31/2013. Barron's Best Mutual Fund Families, February 11, 2013, #2 in the Taxable Bond
Category among 62 fund families. Based on the net total return of the one-year period ending 12/31/2012. Barron's Best Mutual Fund Families, February 6, 2012,
#4 in the Taxable Bond Category among 58 fund families. Based on the net total return of the one year period ending 12/31/2011.
The Ultra Short Bond Fund Class A share rankings within the Lipper Ultra Short Obligations Funds Average as of 06/30/2019 for the one-year time period
was 49% (76/156) and Since Inception, 43% (55/129). Source: Lipper Analytical Services. Lipper Funds Average ranking reflect all share classes within the category
and are based on total return and do not reflect the effect of sales charges.
Past performance is not a reliable indicator or guarantee of future results. Please see “Important Information” regarding Barron’s
rankings.TAXABLE FIXED INCOME INVESTMENT CAPABILITIES
ASSETS UNDER MANAGEMENT BY STRATEGY & CAPABILITY
(AS OF 06/30/2019)
Strategy Assets Capability Assets
Total Taxable Fixed Income $131,742,226,960 Total Corporate Credit $71,301,406,502
Money Market $361,541,903 Investment Grade Corporate $34,019,035,970
U.S. IG Corporate $22,921,360,095
Ultra Short $18,655,914,991
Non-U.S IG Corporate $11,097,675,875
Short Duration Credit $55,545,947,255
High Yield Corporate $17,695,014,957
Intermediate Government/Credit $403,898,673
U.S. HY Corporate $14,646,013,078
Government $263,621,289
Non-U.S. HY Corporate $3,049,001,879 20
Core $2,845,036,283 Short Duration High Yield $3,738,327,420
Core Plus $7,298,789,012 U.S. HY Corporate $2,999,160,508
Inflation Focused $1,224,868,061 Non-U.S. HY Corporate $739,166,912
Corporate Credit $2,415,238,872 Bank Loans $14,171,515,448
Convertibles $1,677,512,707
Bank Loan $11,807,782,116
Total Securitized Products $43,984,776,250
Multi Sector $16,248,173,427
Commercial MBS $15,881,055,638
Global Multi Sector $71,888,288
Asset Backed Securities $22,914,033,478
Emerging Markets Corporate $59,363,536
Residential MBS $5,189,687,134
Emerging Markets Bond $183,905,995 U.S. Government Related $5,831,121,569
High Yield Core $4,380,740,428 Emerging Markets Debt $5,853,426,678
High Yield Opportunistic $8,490,261,242 EM Corporate $4,218,078,524
Convertible $1,441,710,852 EM Sovereign US$ $1,585,434,625
Credit Opportunities $43,544,737 EM Sovereign Local Currency $49,913,529
Assets under management data is as of 06/30/2019 unless noted and includes approximately $612.1 million for which Lord Abbett provides investment models to managed
account sponsors. In addition to the strategies listed above, the fixed income asset totals include the fixed income portion of the multi-asset class strategies managed by Lord
Abbett. Strategy and Capability total assets may differ since only key capabilities are displayed.SECTOR ALLOCATION
Current Portfolio
AS OF 06/30/2019
Corp Floating 45.3
Commercial Paper 29.2
ABS 24.5 21
U.S. Government Related 2.0
Corp Fixed Rate 0.2
Cash -1.1
-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Ultra Short Bond Fund
The Fund's portfolio is actively managed and sector allocation may change significantly over time. "Other" may include municipal bonds and non-index holdings.
Allocations are reported as of the date a security transaction is initiated; however, certain transactions may not settle until several days later. Accordingly, cash may
appear as a negative allocation as a result of forward settling instruments, such as currency forwards, certain mortgage-backed securities, and treasury futures.CREDIT QUALITY DISTRIBUTION
Current Portfolio
AS OF 06/30/2019
35%
30% 28.2
25%
20.6
% of Portfolio
20%
22
14.6
15% 13.7
11.1
10% 9.2
5%
1.9
0.6 0.1
0%
A-1/P-1 A-2/P-2 A-3/P-3 U.S. Treasury AAA AA A BBB Not Rated
Ultra Short Bond Fund
The Fund's portfolio is actively managed and credit quality distribution may change significantly over time. Totals may not equal 100% due to rounding. Ratings (other than
U.S. Treasury securities or securities issued or backed by U.S. agencies) provided by Standard & Poor's, Moody's, and Fitch. For certain securities that are not rated by any of
these three agencies, credit ratings from other agencies may be used. Where the rating agencies rate a security differently, Lord Abbett uses the median, but if there are only
two ratings, the lower rating is used. Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and
below are lower-rated securities (junk bonds). High-yielding, non-investment-grade bonds (junk bonds) involve higher risks than investment-grade bonds. Adverse
conditions may affect the issuer's ability to pay interest and principal on these securities. A portion of the portfolio's securities may not be rated. Breakdown is not an S&P
credit rating or an opinion of S&P as to the creditworthiness of such portfolio. Ratings apply to the credit worthiness of the issuers of the underlying securities and not the
fund or its shares. Ratings may be subject to change. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
Please see “Important Performance and Other Information”MATURITY BREAKDOWN
MATURITY BREAKDOWN
60%
50%
40.2
40%
30%
18.6
20% 16.5 23
14.4
10% 6.2
4.0
0%
0.0-0.5 years 0.5-1.0 years 1.0-1.5 years 1.5-2.0 years 2.0-2.5 years 2.5-3.0 years
Ultra Short Bond Fund
Average Effective Duration 0.23 Years
Average Life 0.88 Years
Data as of 06/30/2019. Past performance is not a reliable indicator or guarantee of future results. The Fund’s portfolio is actively managed and is subject to
change.ULTRA SHORT BOND FUND: PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS
(AS OF 06/30/2019)
Since Inception
YTD One Year
(10/17/2016)
Net Asset Value:
1.60% 2.69% 1.89%
24
Returns for less than one year are not annualized. There is no up-front commission on purchases of the Lord Abbett Ultra Short Bond Fund, but a contingent
deferred sales charge (CDSC) will be charged on shares exchanged from a Lord Abbett-sponsored fund that are subject to a CDSC and that are subsequently
redeemed. The average annual total return figures include changes in net asset value, reinvested dividends, and capital gain distribution.
Expense Ratio: Net: 0.42%; Gross: 0.49%. The net expense ratio takes into account contractual fee waivers/expense reimbursements that currently are
scheduled to remain in place through 03/31/2020. For periods when fees and expenses were waived and/or reimbursed, the Fund benefited by not bearing such
expenses. Without such fee waivers/reimbursements, performance would have been lower.
Without sales charge (NAV): the net asset value performance above shows the Fund's average annual total returns excluding sales charges. If sales charges,
including any applicable contingent deferred sales charge (CDSC) had been included, performance would have been lower.
Past performance is not a reliable indicator or guarantee of future results. Current performance may be higher or lower than the
performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that shares, on any given
day or when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent
month-end by calling Lord Abbett at 888-522-2388 or referring to lordabbett.com.IMPORTANT PERFORMANCE AND OTHER INFORMATION
The index performance data cited in this presentation is presented for informational purposes only and do not depict the performance of the Lord Abbett Ultra
Short Bond Fund or any other investment.
Past performance is not a reliable indicator or guarantee of future results. It is neither implied nor guaranteed that investors in the Lord Abbett Ultra Short
Bond Fund will experience the performance of indexes cited above. Because the Fund has a limited operating history, the performance information available at
this time is very limited. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. You may obtain
Fund performance by calling Lord Abbett at 888-522-2388 or referring to our website at lordabbett.com.
Morningstar Information
Morningstar, Inc. ©2019. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or
redistributed for any purpose and may only be used for non-commercial, personal purposes. The information contained herein is not represented or warranted to
be accurate, correct, complete or timely. Morningstar, Inc., shall not be responsible for investment decisions, damages, or other losses resulting from the use of
this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert"
under the Securities Act of 1933.
© Reuters 2019. All Rights Reserved. Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Although Lipper makes
reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. 25
Barron’s Information
Barron’s, “Best Fund Families of 2018,” March 11, 2019. Barron’s rankings are based on asset-weighted returns in five categories — US equity funds; world equity
funds; mixed equity funds; taxable bond funds; and tax-exempt funds. To be included for Lipper/Barron’s Fund Survey, each fund in the survey must have had at
least three funds in Lipper’s general equity category, one world equity category, one mixed-asset, two taxable-bond funds and one national tax-exempt bond fund.
Rankings also take into account an individual fund's performance within its Lipper peer universe. Each fund’s return was measured against those of all funds in its
Lipper category, resulting in a percentile ranking which was then weighted by asset size, relative to the fund family’s other assets in its general classification.
Lipper calculated each fund's net total return for the year ended December 31, 2018, minus the effects of 12b-1 fees and sales charges. Barron's Fund Family
Rankings are awarded annually.
.IMPORTANT PERFORMANCE AND OTHER INFORMATION Source ICE Data Indices, LLC (“ICE”), used with permission. ICE PERMITS USE OF THE ICE BofAML INDICES AND RELATED DATA ON AN "AS IS" BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofAML INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND LORD ABBETT, OR ANY OF ITS PRODUCTS OR SERVICES. Lipper Category Average - Peer group averages are based on universes of funds with the same investment objectives. The average return for the peer group is based on the returns of each individual fund within the group for the period shown. This average assumes reinvestment of dividends. New Fund Risk: The Fund is newly organized. There can be no assurance that the Fund will reach or maintain a sufficient asset size to effectively implement its investment strategy. A Note about Risk: Ultra Short Bond Fund: The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment in the Fund will change as interest rates fluctuate in response to market movements. When interest rates rise, the prices of debt securities are likely to decline, and when interest rates fall, the prices of debt securities tend to rise. Debt securities are subject to credit risk, which is the risk that 26 the issuer will fail to make timely payments of interest and principal to the Fund. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. Although the Fund may invest in money market securities, this is not a money market fund. These factors can affect Fund performance. As it is a newly organized fund, the Fund’s performance at this time is very limited. The Fund's performance achieved during its initial period of investment operation may not be replicated over longer periods and may not be indicative of how the Fund will perform in the future. Past performance is no guarantee of future results. Taxable Fixed-Income: The value of an investment in fixed-income securities will change as interest rates fluctuate and in response to market movements. As interest rates fall, the prices of debt securities tend to rise. As rates rise, prices tend to fall. High-yield securities, sometimes called junk bonds, carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. Convertible securities have both equity and fixed- income risk characteristics. Like all fixed-income securities, the value of convertible securities is susceptible to the risk of market losses attributable to changes in interest rates. Generally, the market value of convertible securities tends to decline as interest rates increase and, conversely, to increase as interest rates decline.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
This information in this presentation is only for illustrative purposes and is intended to provide general investment education and is not intended to provide legal, tax or
investment advice. It is not intended to be relied upon as a forecast or research regarding a particular investment or the markets in general, nor is it intended to predict or
depict performance of any investment or serve as a recommendation or offer to buy or sell securities.
Bonds are affected by interest rate movements. Bond prices and, likewise, a bond fund’s share price, generally move in the opposite direction of interest rates. As the
prices of bonds in a fund adjust to a rise in interest rates, a fund’s share price may decline. In addition, bonds are subject to call, credit, liquidity, interest rate, and general
market risks. Investors should be aware of the special risks involved with investments in high-yield bonds. High-yield bonds invest in lower-rated, higher-yielding
instruments, which are subject to increased risk of default and can potentially result in loss of principal. Higher-yielding, lower-rated corporate bonds entail a greater degree
of credit risk than investment-grade securities. Adverse conditions may affect the issuer’s ability to pay interest and principal on the securities. Lower-rated bonds may
carry greater risks than higher-rated bonds. Mortgage-backed securities are susceptible to prepayment risk.
Please note: The credit quality of the securities in a portfolio are assigned by a nationally recognized statistical rating organization (NRSRO), such as Standard & Poor’s,
Moody’s, or Fitch, as an indication of an issuer’s creditworthiness. Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment
grade. Credit ratings BB and below are lower-rated securities (junk bonds). High-yielding, non-investment-grade bonds (junk bonds) involve higher risks than investment-
grade bonds. Adverse conditions may affect the issuer’s ability to pay interest and principal on these securities. The credit quality distribution breakdown is not an S&P
credit rating or an opinion of S&P as to the creditworthiness of the portfolio.
27
The information provided is not directed at any investor or category of investors and is provided solely as general information about Lord Abbett’s products and services
and to otherwise provide general investment education. None of the information provided should be regarded as a suggestion to engage in or refrain from any investment-
related course of action as neither Lord Abbett nor its affiliates are undertaking to provide impartial investment advice, act as an impartial adviser, or give advice in a
fiduciary capacity. If you are an individual retirement investor, contact your financial advisor or other fiduciary about whether any given investment idea, strategy, product or
service may be appropriate for your circumstances.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Lord Abbett Funds. This and other
important information is contained in the Fund's summary prospectus and/or prospectus. To obtain a prospectus or summary prospectus on
any Lord Abbett mutual fund, contact your investment professional, Lord Abbett Distributor LLC at 888-522-2388 or visit us at
lordabbett.com. Read the prospectus carefully before you invest.
Mutual funds are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by banks, and are subject to investment risks
including possible loss of principal amount invested. Lord Abbett Distributor LLC is the principal underwriter of the Lord Abbett Mutual Funds.You can also read
