Lord Abbett is one of the oldest privately held asset management firms in the United States, founded in 1929. Known primarily for its expertise in fixed-income investing, the firm manages a wide range of mutual funds across asset classes, including equity, multi-asset and taxable and tax-exempt bond strategies. While it has a reputation for stability and long-term discipline, Lord Abbett also faces increasing pressure in a competitive and fee-conscious investment landscape. As of March 2025, the firm manages assets worth $222 billion.

A key strength of Lord Abbett is its longstanding experience in the bond market. Its fixed-income mutual funds are often recognized for their active management, sound credit research and risk controls. The firm has a reputation of being a reliable choice for navigating interest rate changes and bond market volatility. In recent years, Lord Abbett has broadened its offerings into equity and balanced funds, aiming to provide more comprehensive portfolio solutions.

However, several drawbacks merit consideration. One prominent issue is the relatively high cost of many of its mutual funds, particularly in retail share classes. For cost-conscious investors, relatively high fees charged by the firm may be a turn-off. Additionally, the firm’s adoption of ESG principles has grown, but it still trails some competitors in offering dedicated ESG or sustainability-themed funds.

Despite these limitations, the firm maintains strong client relationships, benefits from independent ownership and offers consistent investment philosophies. These attributes contribute to its appeal, particularly for investors who prioritize active management and personalized service. Recently, Lord Abbett reported a slight increase in assets under management, largely driven by inflows into short-duration and core bond strategies amid market uncertainty.

In summary, Lord Abbett mutual funds are rooted in a legacy of active fixed-income investing, with a disciplined and research-driven approach. However, higher fees and average equity fund performance may deter investors looking for low-cost or passive options.

Astute investors may consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.

Lord Abbett Short Duration High Yield (LSYAX Quick QuoteLSYAX - Free Report) invests in lower-rated debt securities. It may invest a certain portion of its net assets in foreign securities. The manager defines foreign securities as securities of non-U.S. issuers that are denominated in non-U.S. currencies.

Christopher J. Gizzo has been the lead manager of LSYAX since April 2020. The three top holdings for LSYAX are 0.7% in Onemain Fin, 0.6% in Vistajet Malta Fin and 0.5% in Novelis.

LSYAX’s 3-year and 5-year annualized returns are 9.6% and 6.6%, respectively, and its net expense ratio is 0.65%. LSYAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Lord Abbett Growth Opportunities (LOMGX Quick QuoteLOMGX - Free Report) primarily invests in equity securities of mid-sized companies. Per the advisor, these companies possess revenue and growth potential that can exceed market expectations. LOMGX advisors also invest in securities of foreign companies, including emerging market companies, ADRs and other similar depositary receipts.

F. Thomas O’Halloran has been the lead manager of LOMGX since September 2022. The three top holdings for LOMGX are 4.7% in Palantir Tech, 3.3% in Spotify and 3.3% in CyberArk Software.

LOMGX’s 3-year and 5-year annualized returns are 16.2% and 8.9%, respectively, and its net expense ratio is 0.63%. LOMGX has a Zacks Mutual Fund Rank #2.

Lord Abbett International Value Fund (LIDOX Quick QuoteLIDOX - Free Report) invests primarily in a diversified portfolio of equity securities of foreign companies that the advisor believes are undervalued. LIDOX advisors seek to invest in value stocks of companies of any size.

Vincent J. McBride has been the lead manager of LIDOX since June 2008. The three top holdings for LIDOX are 4.2% in Shell, 3% in HSBC and 2.7% in Sanofi.

LIDOX’s 3-year and 5-year annualized returns are 16.2% and 13.2%, respectively, and its net expense ratio is 0.64%. LIDOX has a Zacks Mutual Fund Rank #2.

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