Lord Abbett Developing Growth will close to new investors on March 5. Rapid asset growth makes this a prudent decision. The fund saw more than $1 billion of inflows over the past 12 months, bringing total fund assets to more than $5 billion as of Feb. 5, 2021. Lord Abbett has a decent record of managing capacity in this strategy. Lord Abbett similarly closed the fund in 2011, eventually reopening it in stages beginning in 2019 following a period of outflows. Keeping the asset base from becoming too large is particularly important as the managers trade frequently, with turnover typically ranging from 100%-250%, and they sometimes buy less-liquid small-cap companies. The decision to close the fund to new investment does not impact the fund’s Average Process rating or the Morningstar Analyst Rating of Neutral for all share classes.
Lord Abbett Developing Growth R2 LADQX
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will LADQX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable LADQX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the LADQX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of LADQX’s parent organization’s priorities and whether they’re in line with investors’ interests.
Lord Abbett Developing Growth Is Closing to New Investors; Ratings Unchanged
