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If you're looking for a Mutual Fund Bond fund category, then a potential option is Lord Abbett Floating Rate A (LFRAX - Free Report) . LFRAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Lord Abbett is based in Jersey City, NJ, and is the manager of LFRAX. Lord Abbett Floating Rate A made its debut in December of 2007, and since then, LFRAX has accumulated about $2.18 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. LFRAX has a 5-year annualized total return of 2.4% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.1%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of LFRAX over the past three years is 9.36% compared to the category average of 13.96%. Looking at the past 5 years, the fund's standard deviation is 7.45% compared to the category average of 12.31%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.05, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, LFRAX has a positive alpha of 1.54, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, LFRAX is a load fund. It has an expense ratio of 0.79% compared to the category average of 0.82%. Looking at the fund from a cost perspective, LFRAX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1,500 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Lord Abbett Floating Rate A ( LFRAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is LFRAX a Strong Bond Fund Right Now?
If you're looking for a Mutual Fund Bond fund category, then a potential option is Lord Abbett Floating Rate A (LFRAX - Free Report) . LFRAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Lord Abbett is based in Jersey City, NJ, and is the manager of LFRAX. Lord Abbett Floating Rate A made its debut in December of 2007, and since then, LFRAX has accumulated about $2.18 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. LFRAX has a 5-year annualized total return of 2.4% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.1%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of LFRAX over the past three years is 9.36% compared to the category average of 13.96%. Looking at the past 5 years, the fund's standard deviation is 7.45% compared to the category average of 12.31%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.05, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, LFRAX has a positive alpha of 1.54, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, LFRAX is a load fund. It has an expense ratio of 0.79% compared to the category average of 0.82%. Looking at the fund from a cost perspective, LFRAX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1,500 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Lord Abbett Floating Rate A ( LFRAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.