Lord Abbett Releases Two Lifestyle Funds

A company news release said that the new offerings – Lord Abbett Income Strategy Fund and Lord Abbett World Growth & Income Strategy Fund – invest solely in other Lord Abbett funds (See  Lifestyle Funds: Simplicity Sells  ). 

Lord Abbett Income Strategy Fund, which has a conservative investment strategy, has a target allocation of 25% equities and 75% fixed-income securities and will be able to invest in three Lord Abbett fixed-income funds and two Lord Abbett equity funds. 

Meanwhile, Lord Abbett World Growth & Income Strategy Fund, which has a long-term growth investment strategy, has a target allocation of 75% equities and 25% fixed-income and may invest in as many as six equity funds and two fixed-income funds.

In addition to the two new funds, Lord Abbett has renamed two existing funds that have historical track records and also employ the fund of funds approach.  Lord Abbett Balanced Fund has been renamed Lord Abbett Balanced Strategy Fund and Lord Abbett Alpha Fund has been renamed Lord Abbett Alpha Strategy Fund.

A committee of four portfolio managers will lead the new funds. The committee consists of: Robert Morris, partner and director of Equity Investments; Christopher Towle, partner and director of High Yield and Convertible Investments; Robert Gerber, partner and director of Taxable Fixed Income Management; and Harold Sharon, director of International Core Equity.

The lifecycle funds have become particularly popular among institutional investors including retirement plans (See  Easy Does It?).