Skip to Content
Fund Spy

Lord Abbett Continues to Grow and Improve

Overall, the firm earns a Positive Parent Pillar rating, largely for its strong manager ownership, reasonable fees, and shareholder-friendly practices.

Mentioned: , , , , , , , , ,

Lord Abbett, founded in 1929, is a throwback in many ways to asset managers of decades ago. The firm is an independent partnership, owned by nearly 70 partners and led on a day-to-day basis by a managing partner (the equivalent of CEO) who eventually passes on the reins to a hand-picked successor. While many competitors these days have diversified their offerings to include passive options, Lord Abbett is solely devoted to active investment management. This could pose a challenge for the firm in a post-fiduciary-rule world, especially because they are also largely focused on the retail channel. That said, the firm continues to build out its institutional business.

After some disruption and turnover following the naming of Daria Foster as managing partner in 2007, the firm has enjoyed a period of relative stability. Under Foster, the firm has implemented significant changes to the structure of the investment organization and some funds. Management team turnover has since slowed dramatically, though the firm continues to add head count as it expands its global equity and multiasset offerings.

Cara Esser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.