US investment management group Lord Abbett is rolling out its flagship fixed income strategies to UK investors.
Lord Abbett will launching the Dublin-domiciled Ucits range based on some of the firm's more popular fixed income strategies.
The Passport Portfolios range will include the Lord Abbett Short Duration Income fund, the Lord Abbett High Yield fund and the Lord Abbett Strategic Income fund.
'The launch of these products presents an opportunity for a wide range of investors outside the US, especially in Europe and the Middle East, to access US fixed income markets at a time when we are seeing attractive income opportunities there,' said the firm's fixed income product strategist, Stephen Hillebrecht,.
'We continue to see demand for yield-based strategies that also limit interest rate exposure, and we feel that our investment-led, investor-focused approach will be well-received.
'The U.S. corporate and asset-backed fixed income market remains one of the deepest, broadest and most liquid fixed income securities markets in the world and continues to provide income-producing opportunities.'
The short-duration income fund focuses on investment grade and high yield mortgage, corporate, government and asset-backed securities, seeking to provide higher yield than traditional short duration strategy, but with lower duration than traditional core bonds.
Over 12 months, its US mirror fund has returned 1.63% compared to the BofA Merrill Lynch 1-3 Year US Corporate index, which delivered 1.69%. Over three years, however, the fund is up 5.64% against the benchmark's 4.74%.
Lord Abbett's strategic income fund focuses primarily on Baa corporate bonds, and is a mirror of the US-registered Lord Abbett Income fund. The latter delivered 2.47% returns over 12 months, compared to its benchmark, the Barclays U.S. Credit Bond Index, which was up 0.41% over the period. Over three years, it is up 6.64% versus the index's 5.63% rise.
Both funds are managed by Robert Lee.
The third fund, which will be managed by Steven Rocco, will be a mirror of the Lord Abbett High Yield fund, which delivered 7.2% over 12 months, compared to the BofA Merrill Lynch High Yield Master II Constrained Index's 6.29% rise.
Over three years, the fund also outperformed the benchmark, returning 8.87% versus 8.39%.
At end of April the investment house had approximately $139 billion in assets under management, of which $92 billion were in its fixed income strategies.