There are plenty of choices in the High Yield – Bonds category, but where should you start your research? Well, one fund that you should consider investigating is Lord Abbett High Yield A (LHYAX). LHYAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

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LHYAX is part of the High Yield – Bonds section, which is a segment that boasts many possible options. Often referred to as ” junk ” bonds, High Yield – Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.

Lord Abbett is based in Jersey City, NJ, and is the manager of LHYAX. Lord Abbett High Yield A made its debut in December of 1998, and since then, LHYAX has accumulated about $733.86 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 3.22%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.76%, which places it in the bottom third during this time-frame.

It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.

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When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of LHYAX over the past three years is 8.41% compared to the category average of 13.63%. Looking at the past 5 years, the fund’s standard deviation is 10.57% compared to the category average of 14.63%. This makes the fund less volatile than its peers over the past half-decade.

LHYAX carries a beta of 0.19, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 3.38, which measures performance on a risk-adjusted basis.

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, LHYAX is a load fund. It has an expense ratio of 0.93% compared to the category average of 0.95%. Looking at the fund from a cost perspective, LHYAX is actually cheaper than its peers.

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