Lord Abbett launches AMT Free Municipal Bond fund

By Melissa Kory

Cleveland, Nov. 1 - Lord, Abbett & Co. LLC announced the launch of the Lord Abbett AMT Free Municipal Bond fund, providing investors with an opportunity to earn an "attractive" yield while reducing their exposure to federal and alternative minimum taxes.

The fund is an addition to Lord Abbett's suite of national tax-free offerings. It will focus on municipal bonds across a broad range of sectors and will include investment-grade municipal bonds, with select exposure to high-yield municipal securities.

The fund's net expense ratio of 50 basis points is below the 82 bps peer group average. The gross expense ratio is 0.91%.

Daniel S. Solender, partner and director of municipal bonds, and Scott Smith, portfolio manager, will lead the portfolio management team.

"The market indicates that there is a growing demand for alternative minimum tax-free products with select exposure to high-yield securities and a competitive pricing model," Mike Weldon, partner and director of marketing, said in a news release.

"By combining an attractive yield with an expense ratio that is considerably lower than the competition, we believe this fund will be an appealing option for taxpayers seeking to protect their investment income from the alternative minimum taxes."

The fund joins the suite of Lord Abbett national tax-free municipal bond offerings, including the Short Duration Tax Free, Intermediate Tax Free, National Tax Free and High Yield Municipal Bond funds.

Lord Abbett is an independent, privately held investment management firm based in Jersey City.

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