NPORT-EX 2 NPORT_EBX6_37209711_0723.htm

 

Lord Abbett
Quarterly Portfolio Holdings Report

 

Lord Abbett
Affiliated Fund

 

For the period ended July 31, 2023

 

Schedule of Investments (unaudited)

LORD ABBETT AFFILIATED FUND, INC. July 31, 2023

 

Investments  Shares   Fair
Value		 
LONG-TERM INVESTMENTS 98.47%     
           
COMMON STOCKS 98.47%          
           
Aerospace & Defense 3.22%          
Northrop Grumman Corp.   156,100   $69,464,500 
RTX Corp.   1,197,826    105,324,840 
Total        174,789,340 
           
Automobiles 1.15%          
General Motors Co.   1,620,778    62,189,252 
           
Banks 6.92%          
Bank of America Corp.   2,246,700    71,894,400 
Bank of Ireland Group PLC(a)   3,846,751    40,586,323 
JPMorgan Chase & Co.   1,665,142    263,025,830 
Total        375,506,553 
           
Beverages 1.05%          
Coca-Cola Co.   923,500    57,192,355 
           
Biotechnology 2.49%          
AbbVie, Inc.   905,000    135,369,900 
           
Building Products 1.22%          
Johnson Controls International PLC   951,369    66,167,714 
           
Capital Markets 9.72%          
Ameriprise Financial, Inc.   230,900    80,457,105 
BlackRock, Inc.   86,300    63,762,755 
Cboe Global Markets, Inc.    817,933    114,248,881 
Charles Schwab Corp.   1,416,180    93,609,498 
Morgan Stanley   1,427,700    130,720,212 
S&P Global, Inc.   113,486    44,771,362 
Total        527,569,813 
           
Commercial Services & Supplies 1.18%     
Waste Management, Inc.   392,054    64,214,525 
           
Construction Materials 1.76%          
CRH PLC ADR   1,587,644    95,734,933 
Investments  Shares   Fair
Value		 
Consumer Staples Distribution & Retail 3.46%    
Costco Wholesale Corp.     74,120     $ 41,556,860  
Target Corp.   153,383    20,932,178 
Walmart, Inc.   783,700    125,282,282 
Total        187,771,320 
           
Electric: Utilities 2.79%          
Entergy Corp.   559,238    57,433,742 
NextEra Energy, Inc.   1,279,326    93,774,596 
Total        151,208,338 
           
Electrical Equipment 1.72%          
Eaton Corp. PLC   453,605    93,134,178 
           
Ground Transportation 2.88%          
Norfolk Southern Corp.   373,000    87,129,070 
Union Pacific Corp.   297,800    69,095,556 
Total        156,224,626 
           
Health Care Equipment & Supplies 1.95%     
Abbott Laboratories   951,900    105,975,027 
           
Health Care Providers & Services 3.80%     
Humana, Inc.   130,325    59,536,370 
UnitedHealth Group, Inc.   289,373    146,529,806 
Total        206,066,176 
           
Hotels, Restaurants & Leisure 1.12%     
Starbucks Corp.   600,912    61,034,632 
           
Household Products 0.78%          
Procter & Gamble Co.   270,700    42,310,410 
           
Industrial Conglomerates 1.21%          
Honeywell International, Inc.   338,300    65,674,179 
           
Industrial REITS 1.17%          
Prologis, Inc.   510,500    63,684,875 
 
Information Technology Services 1.29%
Accenture PLC Class A (Ireland)(b)   221,590    70,099,996 

 

  See Notes to Schedule of Investments. 1
 

Schedule of Investments (unaudited)(continued)

LORD ABBETT AFFILIATED FUND, INC. July 31, 2023

 

Investments  Shares   Fair
Value		 
Insurance 4.40%          
Chubb Ltd. (Switzerland)(b)    337,700   $69,029,257 
Manulife Financial Corp. (Canada)(b)   4,118,606    82,372,120 
Marsh & McLennan Cos., Inc.   463,561    87,344,164 
Total        238,745,541 
           
Life Sciences Tools & Services 1.66%          
Danaher Corp.   352,311    89,860,444 
           
Machinery 3.27%          
Parker-Hannifin Corp.   340,530    139,620,705 
Stanley Black & Decker, Inc.   378,394    37,563,173 
Total        177,183,878 
           
Media 2.47%          
Comcast Corp. Class A   2,963,680    134,136,157 
           
Metals & Mining 1.72%          
Reliance Steel & Aluminum Co.   318,300    93,217,338 
           
Oil, Gas & Consumable Fuels 8.92%          
Cheniere Energy, Inc.   505,597    81,835,930 
Chesapeake Energy Corp.   812,028    68,486,442 
Chevron Corp.   381,332    62,408,795 
Kinder Morgan, Inc.   4,531,870    80,259,418 
Marathon Petroleum Corp.   560,900    74,610,918 
Shell PLC ADR   1,892,900    116,659,427 
Total        484,260,930 
           
Personal Care Products 2.00%          
Unilever PLC ADR   2,017,673    108,409,570 
           
Pharmaceuticals 2.26%          
Eli Lilly & Co.   228,600    103,910,130 
Pfizer, Inc.   516,522    18,625,783 
Total        122,535,913 
Investments  Shares   Fair
Value		 
Semiconductors & Semiconductor Equipment 7.07%
Broadcom, Inc.   83,794   $75,301,478 
Lam Research Corp.   134,500    96,636,905 
Micron Technology, Inc.   1,256,111    89,673,764 
Taiwan Semiconductor Manufacturing Co. Ltd. ADR   898,877    89,123,655 
Texas Instruments, Inc.   182,054    32,769,720 
Total        383,505,522 
           
Software 4.36%          
Microsoft Corp.   388,984    130,667,505 
Roper Technologies, Inc.   215,041    106,025,965 
Total        236,693,470 
           
Specialty Retail 4.08%          
Home Depot, Inc.   260,500    86,965,320 
Lowe’s Cos., Inc.   313,800    73,513,926 
Ross Stores, Inc.   532,423    61,036,973 
Total        221,516,219 
           
Textiles, Apparel & Luxury Goods 0.63%   
LVMH Moet Hennessy Louis Vuitton SE(a)   36,593    33,986,390 
           
Tobacco 1.41%          
Philip Morris International, Inc.   767,222    76,507,378 
           
Trading Companies & Distributors 3.34%  
Ferguson PLC (United Kingdom)(b)   697,694    112,761,304 
United Rentals, Inc.   147,181     68,392,067 
Total         181,153,371 
Total Common Stocks
(cost $4,435,999,835)		        5,343,630,263 

 

2 See Notes to Schedule of Investments.
 

Schedule of Investments (unaudited)(concluded)

LORD ABBETT AFFILIATED FUND, INC. July 31, 2023

 

Investments  Principal
Amount		   Fair
Value		 
SHORT-TERM INVESTMENTS 1.92%          
           
Repurchase Agreements 1.92%          
Repurchase Agreement dated 7/31/2023, 2.800% due 8/1/2023 with Fixed Income Clearing Corp. collateralized by $116,635,900 of U.S. Treasury Note at 2.375% due 5/15/2029; value: $106,581,600; proceeds: $104,499,828
(cost $104,491,701)		  $104,491,701   $104,491,701 
Total Investments in Securities 100.39%
(cost $4,540,491,536)		        5,448,121,964 
Other Assets and Liabilities – Net (0.39)%        (21,327,488)
Net Assets 100.00%       $5,426,794,476 

 

 

ADR   American Depositary Receipt.
REITS   Real Estate Investment Trust.
(a)   Investment in non-U.S. dollar denominated securities.
(b)   Foreign security traded in U.S. dollars.

 

 

The following is a summary of the inputs used as of July 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                     
Textiles, Apparel & Luxury Goods  $–   $33,986,390   $–   $33,986,390 
Remaining Industries   5,309,643,873    –    –    5,309,643,873 
Short-Term Investments                    
Repurchase Agreements   –    104,491,701    –    104,491,701 
Total  $5,309,643,873   $138,478,091   $–   $5,448,121,964 

 

(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 issuers 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.

 

  See Notes to Schedule of Investments. 3
 

Notes to Schedule of Investments (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 Pricing Committee uses a third-party 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 recent 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.
   
  Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value.

 

4

 

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 as of July 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. 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

 

5

 

Notes to Schedule of Investments (unaudited)(concluded)

 

next business day. As with other extensions of credit, the Fund 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 or the borrower becomes 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 Fund will bear the risk of loss with respect to the investment of the cash collateral. The advantage of such loans is that the Fund continues 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 July 31, 2023, the Fund did not have any securities on loan.

 

6

 

 

QPHR-AFF-3Q
(09/23)