Winnersrationale

2022 was tremendously difficult for all fixed income markets, with both interest rates rising and credit spreads widening. That said, the Lord Abbett Short Duration Income Fund mitigated drawdown and limited overall volatility in a challenging year.

Incepted in 2007 (US 40-act fund, UCITS vehicle launched in 2014), the fund seeks to deliver a high level of current income consistent with the preservation of capital by investing in a variety of short maturity debt securities, including corporate bonds, US government securities, mortgage-backed securities (MBS) and other asset-backed securities.

Since the establishment of the strategy, the investment team of Lord Abbett has demonstrated its ability to provide diversification to rate risk found in other fixed income strategies, credit selection explicitly at the front end of the curve and the opportunity for alpha generation across a variety of market environments.

Examples of these value adds were on display across 2022. Active management across credit sectors and rate exposures allowed the team to drive solid performance in this strategy over one of the most challenging fixed-income markets on record. Tactical adjustments included shortening duration, moving up in credit quality and liquidity as these factors weakened in anticipation of tighter financial conditions.

The Short Duration Income Fund generated positive returns 13 consecutive years from 2009 to 2021 and outperformed its benchmark index ICE BofA 1-3 Year US Corporate Index 13 out of the last 14 years. For the whole of 2022, the I (acc) USD share class of the fund was down 4.29% (as of end Dec 2022). In 2022, this strategy outperformed most standalone fixed income sectors.

Lord Abbett’s private bank distributors in the region have multiple application avenues across advisory, discretionary mandates, and shorter maturity structured notes.

Lord Abbett wins Best Fund Provider – US Bond in Asian Private Banker’s 2023 Asset Management Awards for Excellence.