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If you've been stuck searching for Mutual Fund Bond funds, consider Lord Abbett Short Duration Income F (LDLFX - Free Report) as a possibility. LDLFX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various 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 LDLFX. Lord Abbett Short Duration Income F debuted in September of 2007. Since then, LDLFX has accumulated assets of about $1.51 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 1.47%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -0.02%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Compared to the category average of 13.16%, the standard deviation of LDLFX over the past three years is 2.3%. Looking at the past 5 years, the fund's standard deviation is 3.78% compared to the category average of 14.09%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.26, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, LDLFX has a positive alpha of 0.33, 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, LDLFX has 37.62% in high quality bonds rated at least 'AA' or higher, while 52.88% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, LDLFX is a no load fund. It has an expense ratio of 1.21% compared to the category average of 0.64%. LDLFX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Lord Abbett Short Duration Income F ( LDLFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and higher fees, Lord Abbett Short Duration Income F ( LDLFX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into LDLFX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is LDLFX a Strong Bond Fund Right Now?
If you've been stuck searching for Mutual Fund Bond funds, consider Lord Abbett Short Duration Income F (LDLFX - Free Report) as a possibility. LDLFX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various 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 LDLFX. Lord Abbett Short Duration Income F debuted in September of 2007. Since then, LDLFX has accumulated assets of about $1.51 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 1.47%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -0.02%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Compared to the category average of 13.16%, the standard deviation of LDLFX over the past three years is 2.3%. Looking at the past 5 years, the fund's standard deviation is 3.78% compared to the category average of 14.09%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.26, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, LDLFX has a positive alpha of 0.33, 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, LDLFX has 37.62% in high quality bonds rated at least 'AA' or higher, while 52.88% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, LDLFX is a no load fund. It has an expense ratio of 1.21% compared to the category average of 0.64%. LDLFX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Lord Abbett Short Duration Income F ( LDLFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and higher fees, Lord Abbett Short Duration Income F ( LDLFX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into LDLFX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.