Lord Abbett High Yield Fund

Investor Summary

The fund is managed by three experienced portfolio managers: Steven F. Rocco, CFA, Partner and Co-Head of Taxable Fixed Income with 25 years of experience, who joined Lord Abbett in 2004 and holds a BA from Cornell University; Robert A. Lee, Partner and Co-Head of Taxable Fixed Income, who joined in 1997 and earned a BS in economics from Wharton School; and Christopher Gizzo, CFA, Partner and Deputy Director of Leveraged Credit with 18 years of experience. The team benefits from over 50 years of high-yield investing experience and is driven by a collaborative investment approach that applies a disciplined methodology supported by 87 investment professionals averaging 18 years of industry experience.

Fund Strategy

The Lord Abbett High Yield Fund seeks to deliver current income and the opportunity for capital appreciation by investing primarily in high yield corporate bonds. The fund brings a 40+ year history of high-yield investing, focused on fundamental, bottom-up credit research. It provides the flexibility to adjust to the market environment and take advantage of opportunities across the credit spectrum. The strategy seeks to drive alpha through active management using bottom-up fundamental credit research, guided by top-down macro and thematic views, and deliberate risk budgeting. The fund has offered a track record of strong performance versus peers in up and down markets, demonstrating the strength of this active approach as a core high-yield holding over a full market cycle.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
5.3%	-0.68%	-0.68%

Executive Summary

Lord Abbett High Yield Fund returned -0.68% in Q1 2026, underperforming the benchmark by 13 basis points as high yield spreads widened to 340 bps amid geopolitical tensions and AI disruption concerns. The fund benefited from overweight positions in Energy and Aerospace/Defense sectors, which outperformed on strong earnings and elevated oil prices. Security selection within CCC-rated bonds and an underweight to underperforming Technology/Software also contributed positively. However, the fund's risk positioning detracted as higher-rated tiers outperformed, with overweight CCC allocation and underweight BB exposure hurting relative performance. Credit selection within B-rated bonds, particularly in Services and Basic Industry sectors, also weighed on results. The manager modestly reduced risk by trimming CCC exposure while adding higher-quality BB positions for better convexity. Portfolio positioning emphasizes commodity-oriented cyclicals, particularly Energy and Basic Industry, while maintaining underweights to Technology and consumer-sensitive sectors. Despite near-term volatility, the manager remains constructive on high yield fundamentals supported by solid earnings and higher credit quality.

Forward Outlook

Manager remains constructive on overall credit environment for U.S. high yield credit, benefiting from higher quality composition and solid earnings. Given geopolitical impacts, focused on shorter duration, higher quality exposure with commodity tilt. Recently moved up in quality toward non-cyclicals while maintaining overweight to down in quality and cyclicals based on longer-term U.S. economic resilience views.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
May 11 2026	2026 Q1	-	commodities, credit, defense, energy, high yield, technology	-	Lord Abbett High Yield Fund underperformed in Q1 as spreads widened to 340 bps amid geopolitical tensions. Energy and Defense overweights helped while CCC bias and Technology underweight contributed. Manager reduced risk by trimming CCCs, adding BBs, and focusing on commodity exposure. Remains constructive on high yield fundamentals despite market volatility.
Jan 29 2026	2025 Q4	-	credit, Fed, fixed income, high yield, rates, Spreads	-	Lord Abbett High Yield Fund outperformed in Q4 through superior credit selection, shifting toward lower-quality CCCs for better relative value while reducing expensive BBs. The strategy emphasizes elevated carry in tight spread environment. Manager expects continued strong performance in 2026 supported by Fed easing and resilient macro conditions despite near all-time tight credit spreads.
Nov 5 2025	2025 Q3	-	credit, Fed, fixed income, high yield, rates, Spreads	-	High yield fund outperformed on overweight CCC exposure amid Fed easing cycle. Spreads near historic tights but fundamentals remain solid with low defaults. Increased down-in-quality positioning while adding cyclical sectors. Constructive outlook supported by expected continued rate cuts over 12-18 months and robust issuance providing high-carry opportunities.
Aug 7 2025	2025 Q2	-	CCCs, credit, energy, Fed Cuts, high yield, Spreads, Telecommunications	-	Lord Abbett's High Yield Fund outperformed in Q3 2025 by favoring lower-quality CCC bonds over higher-rated credit amid Fed easing. Strong sector selection in Telecommunications and Energy drove returns while spreads tightened near historic lows. The manager remains constructive on credit markets expecting continued Fed support despite rich valuations.
Mar 31 2025	2025 Q1	-	BBs, CCCs, credit, energy, healthcare, high yield, Spreads	-	Lord Abbett's High Yield Fund underperformed in Q1 as lower-quality positioning hurt amid growth concerns and spread widening. The fund responded by adding higher-quality BB credits while trimming CCCs. Despite economic uncertainty, managers remain constructive on high yield given favorable fundamentals and attractive entry points, maintaining selective risk addition approach.
Sep 30 2024	2024 Q3	-	credit, energy, Fed policy, high yield, Media, rates	-	Lord Abbett's High Yield Fund underperformed in Q3 due to underweight Media exposure and overweight Energy positions. The fund is repositioning for slower growth by increasing BB-rated credits and adding defensive sectors while maintaining CCC overweight. Management remains constructive on high yield credit, expecting Fed rate cuts to provide accommodative conditions for issuers.
Jun 30 2024	2024 Q2	-	Credit quality, credit selection, Cyclical, energy, high yield, interest rates	-	Lord Abbett High Yield Fund outperformed in Q2 through superior credit selection, particularly in CCC-rated bonds and cyclical sectors like Energy. The fund increased BB allocation while reducing CCC exposure amid softer economic data. Management maintains constructive outlook on high yield fundamentals but remains cautious on rate-sensitive sectors and plans dynamic positioning given macro uncertainties.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

May 11 2026

2026 Q1

commodities, credit, defense, energy, high yield, technology

Lord Abbett High Yield Fund underperformed in Q1 as spreads widened to 340 bps amid geopolitical tensions. Energy and Defense overweights helped while CCC bias and Technology underweight contributed. Manager reduced risk by trimming CCCs, adding BBs, and focusing on commodity exposure. Remains constructive on high yield fundamentals despite market volatility.

Jan 29 2026

2025 Q4

credit, Fed, fixed income, high yield, rates, Spreads

Lord Abbett High Yield Fund outperformed in Q4 through superior credit selection, shifting toward lower-quality CCCs for better relative value while reducing expensive BBs. The strategy emphasizes elevated carry in tight spread environment. Manager expects continued strong performance in 2026 supported by Fed easing and resilient macro conditions despite near all-time tight credit spreads.

Nov 5 2025

2025 Q3

credit, Fed, fixed income, high yield, rates, Spreads

High yield fund outperformed on overweight CCC exposure amid Fed easing cycle. Spreads near historic tights but fundamentals remain solid with low defaults. Increased down-in-quality positioning while adding cyclical sectors. Constructive outlook supported by expected continued rate cuts over 12-18 months and robust issuance providing high-carry opportunities.

Aug 7 2025

2025 Q2

CCCs, credit, energy, Fed Cuts, high yield, Spreads, Telecommunications

Lord Abbett's High Yield Fund outperformed in Q3 2025 by favoring lower-quality CCC bonds over higher-rated credit amid Fed easing. Strong sector selection in Telecommunications and Energy drove returns while spreads tightened near historic lows. The manager remains constructive on credit markets expecting continued Fed support despite rich valuations.

Mar 31 2025

2025 Q1

BBs, CCCs, credit, energy, healthcare, high yield, Spreads

Lord Abbett's High Yield Fund underperformed in Q1 as lower-quality positioning hurt amid growth concerns and spread widening. The fund responded by adding higher-quality BB credits while trimming CCCs. Despite economic uncertainty, managers remain constructive on high yield given favorable fundamentals and attractive entry points, maintaining selective risk addition approach.

Sep 30 2024

2024 Q3

credit, energy, Fed policy, high yield, Media, rates

Lord Abbett's High Yield Fund underperformed in Q3 due to underweight Media exposure and overweight Energy positions. The fund is repositioning for slower growth by increasing BB-rated credits and adding defensive sectors while maintaining CCC overweight. Management remains constructive on high yield credit, expecting Fed rate cuts to provide accommodative conditions for issuers.

Jun 30 2024

2024 Q2

Credit quality, credit selection, Cyclical, energy, high yield, interest rates

Lord Abbett High Yield Fund outperformed in Q2 through superior credit selection, particularly in CCC-rated bonds and cyclical sectors like Energy. The fund increased BB allocation while reducing CCC exposure amid softer economic data. Management maintains constructive outlook on high yield fundamentals but remains cautious on rate-sensitive sectors and plans dynamic positioning given macro uncertainties.

QUARTER	THEMES	TAGS
2026 Q1	Energy Fund increased exposure to Energy sector, specifically Exploration & Production and Oil Field Equipment & Services subsectors. Manager believes these will benefit from elevated oil prices and provide hedge against near-term inflationary pressures. Energy was among top performing sectors in high yield market.	Oil Exploration & Production Oil Services Inflation
	AI Fund maintains underweight position in Technology space, specifically Software, due to AI-disruption concerns. Technology/Software weakness driven by AI disruption concerns was a key headwind for market performance during the quarter.	Technology Software Disruption
	Defense Fund held overweight positions in Aerospace and Defense subsector within Capital Goods that outperformed, driven by strong earnings and improved financial outlooks. Manager sees opportunities for issuers with improved financial outlooks in this subsector.	Aerospace Defense Capital Goods
	Gold Basic Industry continues to be the top sector overweight for the Fund, which manager believes is supported by solid price technical for precious metals.	Precious Metals Basic Industry
2025 Q4	AI Manager believes AI revolution is fundamentally different from dot-com bubble, driven by current compute demand rather than future applications. Views infrastructure buildout as most secure part of AI food chain. Expects continued volatility but remains committed to AI investments including Nvidia, ASML, and Micron.	Artificial Intelligence Data Centers Compute Infrastructure GPUs
	Data Centers Three mega-trends driving insatiable demand for accelerated computing: transition from CPU to GPU infrastructure, replacement of recommender systems, and future robotics/digital agents. Current demand exceeds available compute capacity, unlike the telecom overbuild of 2000.	GPU CPU Infrastructure Hyperscalers Cloud
	Trade Policy Trump administration restructured global trade through tariffs and executive orders without triggering trade war. Supreme Court ruling on tariff legality could impact markets in early 2026. Manager prefers tariffs fade as investment topic but expects continued relevance.	Tariffs IEEPA Trade Policy Regulation
	Semiconductors Continued investment in Nvidia and ASML reflects belief in AI infrastructure buildout. Views semiconductor equipment and chip designers as beneficiaries of compute power demand. Added Micron as new investment in memory space.	Nvidia ASML Memory Equipment Foundries
	Enterprise Software Consolidated exposure to platform companies ServiceNow and Salesforce while eliminating Adobe. Believes platforms connecting workflows across organizations are better positioned than best-of-breed apps against AI disruption threats.	SaaS Platforms Workflow Automation Disruption
2025 Q3	Rates The Federal Reserve delivered a 25 basis point cut in September with growing expectations for additional rate cuts amid labor market softening. The renewed rate-cutting cycle is expected to provide a favorable backdrop for credit over the next 12-18 months. The Fund increased exposure to industries that should benefit from potential further decline in rates.	Fed Monetary Policy Easing Credit
	Credit Stress High yield default volume remained at benign levels with the par-weighted default rate finishing around 1.39% over the last twelve months. The Fund increased down-in-quality exposure to CCCs which outperformed, believing this environment is particularly favorable for lower-quality credit given Fed easing and increased M&A activity potential.	Default CCC Credit Quality Spreads
	Capital Markets High yield issuance accelerated with $122bn in gross issuance in Q3, the highest since Q2 2021. September was the highest monthly issuance total since March 2021. The Fund sourced many high-carry positions from robust primary markets as issuance continues at elevated levels.	Issuance Primary Markets High Yield Debt Markets
2025 Q2	Credit Stress High yield default volume remained at benign levels relative to historical rates with the par-weighted U.S. high yield bond default rate finishing around 1.39% over the last twelve months. The Fund increased exposure to CCCs while reducing BBs, believing this offers better relative value given higher yields with potential for further upside appreciation.	Default Rates Credit Quality CCC Bonds High Yield
	Risk Appetite The Fund's risk positioning was a contributor to relative performance, reflected by an overweight allocation to down-in-quality credit and underweight to higher-rated tiers. CCCs outperformed BBs over the period, boosted by the easing financial environment spurred by the Fed.	Down-in-Quality Credit Risk Risk Positioning CCC Exposure
	Rates The Fed delivered a 25 basis point cut in September with growing expectations for rate cuts amid signs of labor market softening. The renewed rate-cutting cycle is expected to provide a favorable backdrop for credit, with additional easing likely over the next 12-18 months.	Fed Cuts Interest Rates Rate Cycle Monetary Policy
2025 Q1	Credit Stress High yield spreads widened meaningfully in March from year-to-date tights of around 292 bps to over 350 bps amid elevated economic uncertainty. Lower-quality CCCs underperformed significantly with -1.27% returns while higher-quality BBs outperformed with +1.44% returns. The fund reduced CCC exposure and added higher-quality BB credits as spreads moved wider.	Spreads Credit Quality BBs CCCs Default Rates
	Risk Appetite The fund modestly added risk as spreads moved wider, believing dislocations present opportunities to add exposure to high quality credits at attractive entry points. The fund began to selectively add risk back towards the end of the quarter after initially reducing risk levels earlier in the period. The approach remains patient and selective in adding risk.	Risk Management Selective Entry Points Positioning
	Energy The fund remained overweight the Energy sector, finding it to be a positive space given the improvement in fundamentals for high yield issuers and that it has performed more defensively in recent years. Energy is viewed as offering attractive risk profiles and defensive characteristics within the high yield universe.	Energy Sector Fundamentals Defensive Overweight
2024 Q3	Rates The Fed implemented a 50 basis point cut in policy rates during the quarter with expectations for further cuts in 2024. The fund is positioned to benefit from lower interest rates by adding exposure to sectors like Financial Services and Real Estate that historically benefit from lower rate environments.	Interest Rates Fed Policy Rate Cuts Monetary Policy Refinancing
	Credit Stress The fund maintained an overweight allocation to CCC-rated credits despite potential economic slowdown, viewing fundamentals as robust with leverage and interest coverage at supportive levels. Default volume remained benign with the par-weighted default rate at 1.64% over twelve months.	Credit Quality Default Risk CCC Bonds Credit Fundamentals High Yield
2024 Q2	Credit Stress The fund remains wary of companies in sectors susceptible to credit events as interest rates have been higher for longer. They trimmed overweight positions to CCCs and lower-rated single-Bs that would be more sensitive to economic slowdown. Media and Telecommunications sectors, specifically Cable/Satellite TV, continued struggling with levered capital structures in higher rate environments.	Credit Quality Interest Rates Leverage Default Risk Economic Sensitivity
	Energy The fund maintains overweight allocations to Energy sector, specifically focused on Exploration & Production and Oil Field Services subsectors. They shifted focus towards offshore energy as an attractive opportunity to find relative value. Energy sector positioning reflects improved credit quality and potential for increased merger & acquisition activity.	Offshore E&P Oil Services M&A Cyclical

QUARTER

THEMES

Energy

Fund increased exposure to Energy sector, specifically Exploration & Production and Oil Field Equipment & Services subsectors. Manager believes these will benefit from elevated oil prices and provide hedge against near-term inflationary pressures. Energy was among top performing sectors in high yield market.

Oil Exploration & Production Oil Services Inflation

AI

Fund maintains underweight position in Technology space, specifically Software, due to AI-disruption concerns. Technology/Software weakness driven by AI disruption concerns was a key headwind for market performance during the quarter.

Technology Software Disruption

Defense

Fund held overweight positions in Aerospace and Defense subsector within Capital Goods that outperformed, driven by strong earnings and improved financial outlooks. Manager sees opportunities for issuers with improved financial outlooks in this subsector.

Aerospace Defense Capital Goods

Gold

Basic Industry continues to be the top sector overweight for the Fund, which manager believes is supported by solid price technical for precious metals.

Precious Metals Basic Industry

2025 Q4

AI

Manager believes AI revolution is fundamentally different from dot-com bubble, driven by current compute demand rather than future applications. Views infrastructure buildout as most secure part of AI food chain. Expects continued volatility but remains committed to AI investments including Nvidia, ASML, and Micron.

Artificial Intelligence Data Centers Compute Infrastructure GPUs

Data Centers

Three mega-trends driving insatiable demand for accelerated computing: transition from CPU to GPU infrastructure, replacement of recommender systems, and future robotics/digital agents. Current demand exceeds available compute capacity, unlike the telecom overbuild of 2000.

GPU CPU Infrastructure Hyperscalers Cloud

Trade Policy

Trump administration restructured global trade through tariffs and executive orders without triggering trade war. Supreme Court ruling on tariff legality could impact markets in early 2026. Manager prefers tariffs fade as investment topic but expects continued relevance.

Tariffs IEEPA Trade Policy Regulation

Semiconductors

Continued investment in Nvidia and ASML reflects belief in AI infrastructure buildout. Views semiconductor equipment and chip designers as beneficiaries of compute power demand. Added Micron as new investment in memory space.

Nvidia ASML Memory Equipment Foundries

Enterprise Software

Consolidated exposure to platform companies ServiceNow and Salesforce while eliminating Adobe. Believes platforms connecting workflows across organizations are better positioned than best-of-breed apps against AI disruption threats.

SaaS Platforms Workflow Automation Disruption

2025 Q3

Rates

The Federal Reserve delivered a 25 basis point cut in September with growing expectations for additional rate cuts amid labor market softening. The renewed rate-cutting cycle is expected to provide a favorable backdrop for credit over the next 12-18 months. The Fund increased exposure to industries that should benefit from potential further decline in rates.

Fed Monetary Policy Easing Credit

Credit Stress

High yield default volume remained at benign levels with the par-weighted default rate finishing around 1.39% over the last twelve months. The Fund increased down-in-quality exposure to CCCs which outperformed, believing this environment is particularly favorable for lower-quality credit given Fed easing and increased M&A activity potential.

Default CCC Credit Quality Spreads

Capital Markets

High yield issuance accelerated with $122bn in gross issuance in Q3, the highest since Q2 2021. September was the highest monthly issuance total since March 2021. The Fund sourced many high-carry positions from robust primary markets as issuance continues at elevated levels.

Issuance Primary Markets High Yield Debt Markets

2025 Q2

Credit Stress

High yield default volume remained at benign levels relative to historical rates with the par-weighted U.S. high yield bond default rate finishing around 1.39% over the last twelve months. The Fund increased exposure to CCCs while reducing BBs, believing this offers better relative value given higher yields with potential for further upside appreciation.

Default Rates Credit Quality CCC Bonds High Yield

Risk Appetite

The Fund's risk positioning was a contributor to relative performance, reflected by an overweight allocation to down-in-quality credit and underweight to higher-rated tiers. CCCs outperformed BBs over the period, boosted by the easing financial environment spurred by the Fed.

Down-in-Quality Credit Risk Risk Positioning CCC Exposure

Rates

The Fed delivered a 25 basis point cut in September with growing expectations for rate cuts amid signs of labor market softening. The renewed rate-cutting cycle is expected to provide a favorable backdrop for credit, with additional easing likely over the next 12-18 months.

Fed Cuts Interest Rates Rate Cycle Monetary Policy

2025 Q1

Credit Stress

High yield spreads widened meaningfully in March from year-to-date tights of around 292 bps to over 350 bps amid elevated economic uncertainty. Lower-quality CCCs underperformed significantly with -1.27% returns while higher-quality BBs outperformed with +1.44% returns. The fund reduced CCC exposure and added higher-quality BB credits as spreads moved wider.

Spreads Credit Quality BBs CCCs Default Rates

Risk Appetite

The fund modestly added risk as spreads moved wider, believing dislocations present opportunities to add exposure to high quality credits at attractive entry points. The fund began to selectively add risk back towards the end of the quarter after initially reducing risk levels earlier in the period. The approach remains patient and selective in adding risk.

Risk Management Selective Entry Points Positioning

Energy

The fund remained overweight the Energy sector, finding it to be a positive space given the improvement in fundamentals for high yield issuers and that it has performed more defensively in recent years. Energy is viewed as offering attractive risk profiles and defensive characteristics within the high yield universe.

Energy Sector Fundamentals Defensive Overweight

2024 Q3

Rates

The Fed implemented a 50 basis point cut in policy rates during the quarter with expectations for further cuts in 2024. The fund is positioned to benefit from lower interest rates by adding exposure to sectors like Financial Services and Real Estate that historically benefit from lower rate environments.

Interest Rates Fed Policy Rate Cuts Monetary Policy Refinancing

Credit Stress

The fund maintained an overweight allocation to CCC-rated credits despite potential economic slowdown, viewing fundamentals as robust with leverage and interest coverage at supportive levels. Default volume remained benign with the par-weighted default rate at 1.64% over twelve months.

Credit Quality Default Risk CCC Bonds Credit Fundamentals High Yield

2024 Q2

Credit Stress

The fund remains wary of companies in sectors susceptible to credit events as interest rates have been higher for longer. They trimmed overweight positions to CCCs and lower-rated single-Bs that would be more sensitive to economic slowdown. Media and Telecommunications sectors, specifically Cable/Satellite TV, continued struggling with levered capital structures in higher rate environments.

Credit Quality Interest Rates Leverage Default Risk Economic Sensitivity

Energy

The fund maintains overweight allocations to Energy sector, specifically focused on Exploration & Production and Oil Field Services subsectors. They shifted focus towards offshore energy as an attractive opportunity to find relative value. Energy sector positioning reflects improved credit quality and potential for increased merger & acquisition activity.

Offshore E&P Oil Services M&A Cyclical

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Energy

AI

Defense

Gold

AI

Data Centers

Trade Policy

Semiconductors

Enterprise Software

Rates

Credit Stress

Capital Markets

Credit Stress

Risk Appetite

Rates

Credit Stress

Risk Appetite

Energy

Rates

Credit Stress

Credit Stress

Energy

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Steven F. Rocco Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Lord Abbett High Yield Fund