3 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#190 in Large Blend
U.S. News evaluated 487 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 26.88 percent over the past year, 11.34 percent over the past three years, 20.92 percent over the past five years, and 8.45 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||1.0%|
|3 Years (Annualized)||11.3%|
|5 Years (Annualized)||20.9%|
|10 Years (Annualized)||8.4%|
Lord Abbett Fundamental Equity has built up a solid long-term track record.
As of March 05, 2014, the fund has assets totaling almost $6.05 billion invested in 84 different holdings. Its portfolio consists primarily of shares of large companies.
During the downturn, this fund did a fine job of playing defense. In 2008, it shed 29 percent. While still painful, that put it ahead of 96 percent of its competitors in Morningstar's large blend category. After a middling 2009, the fund found its footing again in 2010, returning upwards of 19 percent. Lately, the fund has been ratcheting up its exposure to financial services companies, initiating a position in Goldman Sachs and adding to stakes in Lazard Ltd. and State Street Corporation. Financial companies currently represent upwards of 22 percent of the fund's stock holdings; that's the highest that this allocation has been in the past three years. The fund has returned 26.88 percent over the past year and 11.34 percent over the past three years.
Historically, the fund has succeeded in navigating the market through a conservative approach that focuses on the fundamentals of investing. As of late December, its trailing 10-year annualized returns beat those of the S&P 500 by upwards of four percentage points per year. Says Morningstar: "Management's prudence gives the portfolio a distinct bent. ... [Its] quality bias is a big reason the fund has held up better than most in market downdrafts." The fund has returned 20.92 percent over the past five years and 8.45 percent over the past decade.
According to the fund's prospectus: "In selecting investments, the Fund attempts to invest in companies the portfolio manager believes have been undervalued by the market and are selling at reasonable prices. The Fund seeks to identify companies that have the strongest fundamentals relative to valuations and looks for positive factors that the Fund believes are likely to improve the value of the company's stock price."
Role in Portfolio
Morningstar calls this fund a "core" holding.
Deepak Khanna and Robert Fetch manage the fund.
Lord Abbett Fundamental Equity has an expense ratio of 1.06 percent.
Like all stock funds, this one comes with some risks.