Interval Fund Changes Name to Lord Abbett Corporate Opportunities Fund
Lord Abbett Special Situations Income Fund – a diversified, closed-end management investment company that operates as an interval fund – recently changed its name to Lord Abbett Corporate Opportunities Fund. The fund currently offers three classes of shares: Class A, Class I, and Class U.
According to the interval fund, which listed a February 2019 inception date, it aims to deliver “total return” through a dynamic investment approach. It invests in bonds, loans, and other fixed income instruments, utilizing derivatives to enhance exposure. Notably, the fund maintains the flexibility to invest across various levels of the capital structure and in both developed and emerging markets.
The fund commits to investing at least 80% of its net assets in corporate fixed income, including related equity and derivative instruments. It emphasizes its ability to adapt to market conditions by adjusting allocations across diverse asset classes, sectors, and capital structures. The fund’s strategy focuses on identifying sectors with favorable risk/reward profiles and selecting securities deemed to offer the best potential returns within those sectors. Unlike traditional funds, it operates without explicit duration targets or liquidity limitations, granting significant freedom to pursue its “total return” objective.
According to the interval fund, it may invest in individual securities of any credit quality, maturity, or duration. At any given time and from time to time, substantially all of the fund’s portfolio may consist of high yield (or below investment grade) debt securities commonly referred to as “junk” bonds. It may invest in debt securities of stressed and distressed issuers as well as in defaulted securities and debtor-in-possession financings.
Additionally, the fund may invest in trade claims, including claims against companies in bankruptcy or reorganization proceedings. It may invest in U.S. dollar and non-U.S. dollar denominated securities of issuers located anywhere in the world.
In order to provide liquidity to shareholders, the interval fund has adopted a fundamental investment policy to make quarterly offers to repurchase between 5% and 25% of its outstanding shares at net asset value per share.
As of Jan. 31, 2025, the fund reported total net assets of $2.72 billion.
Its fees included both a fund gross expense ratio and fund net expense ratio of 1.68%. The fund’s adjusted expense ratio is 1.42%.
Lord Abbett Corporate Opportunities Fund had 202 holding at the end of January, including J P Morgan Securities Inc. (7.9% of assets), Transocean Inc (2.4% of assets), and Vital Energy Inc. (2.3% of assets).
The interval fund’s NAV has ranged from a low of $8.84 in April 2024 to a high of $9.06 in October 2024.
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