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If you've been stuck searching for High Yield - Bonds funds, consider Lord Abbett Bond Debenture A (LBNDX - Free Report) as a possibility. LBNDX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
LBNDX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Lord Abbett is based in Jersey City, NJ, and is the manager of LBNDX. Lord Abbett Bond Debenture A made its debut in April of 1971, and since then, LBNDX has accumulated about $5.04 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. LBNDX has a 5-year annualized total return of 6.64% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.98%, which places it in the top 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. LBNDX's standard deviation over the past three years is 9.46% compared to the category average of 13.47%. Over the past 5 years, the standard deviation of the fund is 7.83% compared to the category average of 11.55%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.83, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, LBNDX has a positive alpha of 3.44, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, LBNDX has 41.66% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 42.09%, giving LBNDX an average quality of BBB. This means that it focuses on medium quality securities.
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, LBNDX is a load fund. It has an expense ratio of 0.78% compared to the category average of 1.01%. So, LBNDX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Lord Abbett Bond Debenture A ( LBNDX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the High Yield - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is LBNDX a Strong Bond Fund Right Now?
If you've been stuck searching for High Yield - Bonds funds, consider Lord Abbett Bond Debenture A (LBNDX - Free Report) as a possibility. LBNDX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
LBNDX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Lord Abbett is based in Jersey City, NJ, and is the manager of LBNDX. Lord Abbett Bond Debenture A made its debut in April of 1971, and since then, LBNDX has accumulated about $5.04 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. LBNDX has a 5-year annualized total return of 6.64% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.98%, which places it in the top 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. LBNDX's standard deviation over the past three years is 9.46% compared to the category average of 13.47%. Over the past 5 years, the standard deviation of the fund is 7.83% compared to the category average of 11.55%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.83, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, LBNDX has a positive alpha of 3.44, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, LBNDX has 41.66% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 42.09%, giving LBNDX an average quality of BBB. This means that it focuses on medium quality securities.
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, LBNDX is a load fund. It has an expense ratio of 0.78% compared to the category average of 1.01%. So, LBNDX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Lord Abbett Bond Debenture A ( LBNDX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the High Yield - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.