NPORT-EX 3 NPORT_EBX6_31403367_0123.htm

 

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)