Lord Abbett
Quarterly Portfolio Holdings Report
Lord Abbett
Affiliated Fund
For the period ended January 31, 2023
Schedule of Investments (unaudited)
LORD ABBETT AFFILIATED FUND, INC. January 31, 2023
| Investments | Shares | Fair Value | ||||||
| LONG-TERM INVESTMENTS 98.18% | ||||||||
| COMMON STOCKS 92.73% | ||||||||
| Aerospace & Defense 4.16% | ||||||||
| Northrop Grumman Corp. | 203,100 | $ | 90,996,924 | |||||
| Raytheon Technologies Corp. | 1,423,057 | 142,092,241 | ||||||
| Total | 233,089,165 | |||||||
| Automobiles 0.96% | ||||||||
| General Motors Co. | 1,371,778 | 53,938,311 | ||||||
| Banks 8.04% | ||||||||
| Bank of America Corp. | 2,912,700 | 103,342,596 | ||||||
| Bank of Ireland Group plc(a) | 4,257,813 | 45,489,809 | ||||||
| JPMorgan Chase & Co. | 2,155,142 | 301,633,674 | ||||||
| Total | 450,466,079 | |||||||
| Beverages 1.01% | ||||||||
| Coca-Cola Co. (The) | 923,500 | 56,629,020 | ||||||
| Biotechnology 3.04% | ||||||||
| AbbVie, Inc. | 1,152,000 | 170,208,000 | ||||||
| Building Products 1.11% | ||||||||
| Johnson Controls International plc | 898,369 | 62,499,531 | ||||||
| Capital Markets 12.20% | ||||||||
| Ameriprise Financial, Inc. | 485,900 | 170,123,308 | ||||||
| BlackRock, Inc. | 35,300 | 26,800,113 | ||||||
| Cboe Global Markets, Inc. | 836,933 | 102,842,327 | ||||||
| Charles Schwab Corp. (The) | 1,249,180 | 96,711,515 | ||||||
| Morgan Stanley | 1,806,700 | 175,846,111 | ||||||
| Nasdaq, Inc. | 1,852,019 | 111,473,024 | ||||||
| Total | 683,796,398 | |||||||
| Containers & Packaging 1.31% | ||||||||
| Avery Dennison Corp. | 388,000 | 73,502,720 | ||||||
| Investments | Shares | Fair Value | ||||||
| Distributors 1.77% | ||||||||
| Ferguson plc (United Kingdom)(b) | 697,694 | $ | 99,309,764 | |||||
| Electric: Utilities 1.28% | ||||||||
| Entergy Corp. | 665,238 | 72,031,971 | ||||||
| Energy Equipment & Services 0.82% | ||||||||
| Schlumberger Ltd. | 805,707 | 45,909,185 | ||||||
| Equity Real Estate Investment Trusts 1.50% | ||||||||
| Life Storage, Inc. | 265,041 | 28,635,030 | ||||||
| Prologis, Inc. | 429,500 | 55,525,760 | ||||||
| Total | 84,160,790 | |||||||
| Food & Staples Retailing 1.93% | ||||||||
| Costco Wholesale Corp. | 54,120 | 27,662,897 | ||||||
| Walmart, Inc. | 558,700 | 80,380,169 | ||||||
| Total | 108,043,066 | |||||||
| Health Care Equipment & Supplies 1.59% | ||||||||
| Abbott Laboratories | 806,900 | 89,202,795 | ||||||
| Health Care Providers & Services 3.67% | ||||||||
| UnitedHealth Group, Inc. | 412,600 | 205,965,794 | ||||||
| Hotels, Restaurants & Leisure 1.67% | ||||||||
| Domino’s Pizza, Inc. | 111,566 | 39,382,798 | ||||||
| Starbucks Corp. | 495,912 | 54,123,836 | ||||||
| Total | 93,506,634 | |||||||
| Household Products 0.87% | ||||||||
| Procter & Gamble Co. (The) | 342,700 | 48,793,626 | ||||||
| Industrial Conglomerates 2.53% | ||||||||
| Honeywell International, Inc. | 680,300 | 141,828,944 | ||||||
| Information Technology Services 0.44% | ||||||||
| Accenture plc Class A (Ireland)(b) | 87,590 | 24,441,989 | ||||||
| See Notes to Schedule of Investments. | 1 |
Schedule of Investments (unaudited)(continued)
LORD ABBETT AFFILIATED FUND, INC. January 31, 2023
| Investments | Shares | Fair Value | ||||||
| Insurance 7.08% | ||||||||
| Allstate Corp. (The) | 1,227,511 | $ | 157,698,338 | |||||
| American Financial Group, Inc./OH | 319,300 | 45,528,987 | ||||||
| Chubb Ltd. (Switzerland)(b) | 326,700 | 74,320,983 | ||||||
| Fidelity National Financial, Inc. | 870,700 | 38,336,921 | ||||||
| Marsh & McLennan Cos., Inc. | 463,561 | 81,081,455 | ||||||
| Total | 396,966,684 | |||||||
| Machinery 4.79% | ||||||||
| Eaton Corp. plc | 586,605 | 95,153,197 | ||||||
| Parker-Hannifin Corp. | 427,530 | 139,374,780 | ||||||
| Stanley Black & Decker, Inc. | 378,394 | 33,794,368 | ||||||
| Total | 268,322,345 | |||||||
| Metals & Mining 1.61% | ||||||||
| Reliance Steel & Aluminum Co. | 397,300 | 90,365,885 | ||||||
| Multi-Line Retail 0.47% | ||||||||
| Target Corp. | 153,383 | 26,403,350 | ||||||
| Oil, Gas & Consumable Fuels 9.70% | ||||||||
| Cheniere Energy, Inc. | 361,608 | 55,250,086 | ||||||
| Chesapeake Energy Corp. | 944,028 | 81,866,108 | ||||||
| Chevron Corp. | 827,332 | 143,972,315 | ||||||
| Marathon Petroleum Corp. | 1,022,900 | 131,463,108 | ||||||
| Shell plc ADR | 2,226,900 | 130,963,989 | ||||||
| Total | 543,515,606 | |||||||
| Personal Products 1.84% | ||||||||
| Unilever plc ADR | 2,017,673 | 103,103,090 | ||||||
| Pharmaceuticals 5.09% | ||||||||
| Eli Lilly & Co. | 254,600 | 87,620,590 | ||||||
| Organon & Co. | 2,570,511 | 77,449,497 | ||||||
| Pfizer, Inc. | 2,723,258 | 120,259,073 | ||||||
| Total | 285,329,160 | |||||||
| Investments | Shares | Fair Value | ||||||
| Road & Rail 2.72% | ||||||||
| Norfolk Southern Corp. | 373,000 | $ | 91,687,130 | |||||
| Union Pacific Corp. | 297,800 | 60,807,782 | ||||||
| Total | 152,494,912 | |||||||
| Semiconductors & Semiconductor Equipment 4.30% | ||||||||
| Lam Research Corp. | 159,500 | 79,765,950 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 658,877 | 61,097,664 | ||||||
| Texas Instruments, Inc. | 563,900 | 99,928,719 | ||||||
| Total | 240,792,333 | |||||||
| Software 0.54% | ||||||||
| Microsoft Corp. | 121,900 | 30,208,039 | ||||||
| Specialty Retail 3.45% | ||||||||
| Home Depot, Inc. (The) | 260,500 | 84,446,285 | ||||||
| Lowe’s Cos., Inc. | 221,800 | 46,189,850 | ||||||
| Ross Stores, Inc. | 532,423 | 62,927,074 | ||||||
| Total | 193,563,209 | |||||||
| Textiles, Apparel & Luxury Goods 1.24% | ||||||||
| LVMH Moet Hennessy Louis Vuitton SE(a) | 79,593 | 69,482,748 | ||||||
| Total Common Stocks (cost $4,415,426,886) | 5,197,871,143 | |||||||
| CONVERTIBLE PREFERRED STOCKS 5.45% | ||||||||
| Electric: Utilities 3.65% | ||||||||
| NextEra Energy, Inc.(c) | 4,276,400 | 204,796,796 | ||||||
| Health Care Equipment & Supplies 1.80% | ||||||||
| Danaher Corp.(d)(e) | 75,000 | 100,800,000 | ||||||
| Total Convertible Preferred Stocks (cost $321,751,131) | 305,596,796 | |||||||
| Total Long-Term Investments (cost $4,737,178,017) | 5,503,467,939 | |||||||
| 2 | See Notes to Schedule of Investments. |
Schedule of Investments (unaudited)(continued)
LORD ABBETT AFFILIATED FUND, INC. January 31, 2023
| Investments | Principal Amount | Fair Value | ||||||
| SHORT-TERM INVESTMENTS 2.71% | ||||||||
| Repurchase Agreements 2.07% | ||||||||
| Repurchase Agreement dated 1/31/2023, 2.05% due 2/1/2023 with Fixed Income Clearing Corp. collateralized by $62,730,600 of U.S. Treasury Note at 4.500% due 11/30/2024; $56,850,500 of U.S. Treasury Note at 2.250% due 11/15/2024; value: $118,391,479; proceeds: $116,076,672 (cost $116,070,062) | $ | 116,070,062 | $ | 116,070,062 | ||||
| Investments | Shares | Fair Value | ||||||
| MONEY MARKET FUNDS 0.58% | ||||||||
| Fidelity Government Portfolio(f) (cost $32,454,143) | 32,454,143 | $ | 32,454,143 | |||||
| TIME DEPOSITS 0.06% | ||||||||
| CitiBank N.A.(f) (cost $3,606,016) | 3,606,016 | 3,606,016 | ||||||
| Total Short-Term Investments (cost $152,130,221) | 152,130,221 | |||||||
| Total Investments in Securities 100.89% (cost $4,889,308,238) | 5,655,598,160 | |||||||
| Other Assets and Liabilities – Net(g) (0.89)% | (50,075,898 | ) | ||||||
| Net Assets 100.00% | $ | 5,605,522,262 | ||||||
| ADR | American Depositary Receipt. | |
| (a) | Investment in non-U.S. dollar denominated securities. | |
| (b) | Foreign security traded in U.S. dollars. | |
| (c) | The security has a dividend rate of 6.22%. | |
| (d) | The security has a dividend rate of 4.75%. | |
| (e) | All or a portion of this security is temporarily on loan to unaffiliated broker/dealers. | |
| (f) | Security was purchased with the cash collateral from loaned securities. | |
| (g) | Other Assets and Liabilities - Net include net unrealized appreciation/depreciation on futures contracts as follows: |
Futures Contracts at January 31, 2023:
| Type | Expiration | Contracts | Position | Notional Amount | Notional Value | Unrealized Appreciation | ||||||||||||||
| E-Mini S&P 500 Index | March 2023 | 410 | Long | $ | 81,364,977 | $ | 83,845,000 | $2,480,023 | ||||||||||||
| See Notes to Schedule of Investments. | 3 |
Schedule of Investments (unaudited)(concluded)
LORD ABBETT AFFILIATED FUND, INC. January 31, 2023
The following is a summary of the inputs used as of January 31, 2023 in valuing the Fund’s investments carried at fair value(1):
| Investment Type(2) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Long-Term Investments | ||||||||||||||||
| Common Stocks | ||||||||||||||||
| Banks | $ | 404,976,270 | $ | 45,489,809 | $ | – | $ | 450,466,079 | ||||||||
| Textiles, Apparel & Luxury Goods | – | 69,482,748 | – | 69,482,748 | ||||||||||||
| Remaining Industries | 4,677,922,316 | – | – | 4,677,922,316 | ||||||||||||
| Convertible Preferred Stocks | ||||||||||||||||
| Health Care Equipment & Supplies | 100,800,000 | – | – | 100,800,000 | ||||||||||||
| Electric: Utilities | – | 204,796,796 | – | 204,796,796 | ||||||||||||
| Short-Term Investments | ||||||||||||||||
| Repurchase Agreements | – | 116,070,062 | – | 116,070,062 | ||||||||||||
| Money Market Funds | 32,454,143 | – | – | 32,454,143 | ||||||||||||
| Time Deposits | – | 3,606,016 | – | 3,606,016 | ||||||||||||
| Total | $ | 5,216,152,729 | $ | 439,445,431 | $ | – | $ | 5,655,598,160 | ||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts | ||||||||||||||||
| Assets | $ | 2,480,023 | $ | – | $ | – | $ | 2,480,023 | ||||||||
| Liabilities | – | – | – | – | ||||||||||||
| Total | $ | 2,480,023 | $ | – | $ | – | $ | 2,480,023 | ||||||||
| (1) | Refer to Note 2(b) for a description of fair value measurements and the three-tier hierarchy of inputs. | |
| (2) | See Schedule of Investments for fair values in each industry and identification of foreign issuer and/or geography. The table above is presented by Investment Type. Industries are presented within an Investment Type should such Investment Type include securities classified as two or more levels within the three-tier fair value hierarchy. When applicable each Level 3 security is identified on the Schedule of Investments along with the valuation technique utilized. |
A reconciliation of Level 3 investments is presented when the Fund has a material amount of Level 3 investments at the beginning or end of the period in relation to the Fund’s net assets.
| 4 | See Notes to Schedule of Investments. |
Notes to Financial Statements (unaudited)
| 1. | ORGANIZATION |
Lord Abbett Affiliated Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Fund was organized in 1934 and was reincorporated under Maryland law on November 26, 1975.
The Fund’s investment objective is long-term growth of capital and income without excessive fluctuations in market value.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
| (a) |
Investment Valuation–Under procedures approved by the Fund’s Board of Directors (the “Board”), the Board has designated the determination of fair value of the Fund’s portfolio investments to Lord, Abbett & Co. LLC (“Lord Abbett”), as its valuation designee. Accordingly, Lord Abbett is responsible for, among other things, assessing and managing valuation risks, establishing, applying and testing fair value methodologies, and evaluating pricing services. Lord Abbett has formed a Pricing Committee that performs these responsibilities on behalf of Lord Abbett, administers the pricing and valuation of portfolio investments and ensures that prices utilized reasonably reflect fair value. Among other things, these procedures allow Lord Abbett, subject to Board oversight, to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Board has approved the use of an independent fair valuation service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that correlate to the fair-valued securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and ask prices. Exchange traded options and futures contracts are valued at the last quoted sale price in the market where they are principally traded. If no sale has occurred, the mean between the most recently quoted bid and ask prices is used.
Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information to determine the fair value of portfolio investments. The Board or a designated committee thereof periodically reviews reports that may include fair value determinations made by the Pricing Committee, related market activity, inputs and assumptions, and retrospective comparison of prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee.
Investments in open-end money market mutual funds are valued at their NAV as of the close of each business day. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value. |
5
Notes to Schedule of Investments (unaudited)(continued)
| (b) | Fair Value Measurements–Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk - for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy classification is determined based on the lowest level of inputs that is significant to the fair value measurement, and is summarized in the three broad Levels listed below: |
| • | Level 1 – | unadjusted quoted prices in active markets for identical investments; | |
| • | Level 2 – | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and | |
| • | Level 3 – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). | |
| A summary of inputs used in valuing the Fund’s investments and other financial instruments as of January 31, 2023 and, if applicable, Level 3 rollforwards for the period then ended is included in the Fund’s Schedule of Investments. | |||
| Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. | |||
| 3. | FEDERAL TAX INFORMATION |
It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax returns remains open generally three years after the filing of the tax return. The statutes of limitations on the Fund’s, state and local tax returns may remain open for an additional year depending upon the jurisdiction.
| 4. | SECURITIES LENDING AGREEMENT |
The Fund has established a securities lending agreement with Citibank, N.A. (the “agent”) for the lending of securities to qualified brokers in exchange for securities or cash collateral equal to at least the market value of securities loaned, plus interest, if applicable. Cash collateral is invested in an approved money market fund. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the
6
Notes to Schedule of Investments (unaudited)(concluded)
next business day. As with other extensions of credit, the Fund has may experience a delay in the recovery of its securities or incur a loss should the borrower of the securities breach its agreement with the Fund has or become insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan.
The initial collateral received by the Fund is required to have a value equal to at least 100% of the market value of the securities loaned. The collateral must be marked-to-market daily to cover increases in the market value of the securities loaned (or potentially a decline in the value of the collateral). In general, the risk of borrower default will be borne by Citibank, N.A.; the Funds will bear the risk of loss with respect to the investment of the cash collateral. The advantage of such loans is that the Funds continue to receive income on loaned securities while receiving a portion of any securities lending fees and earning returns on the cash amounts which may be reinvested for the purchase of investments in securities.
As of January 31, 2023, the market value of securities loaned and collateral received for the Fund was as follows:
| Market Value of Collateral Received | Securities Loaned | |||||
| $ | 35,491,008 | $ | 36,060,159 | |||
7
QPHR-AFF-1Q
(03/23)