Lord Abbett Short Duration High Income Municipal Bond Fund

LORD ABBETT MUNICIPAL INCOME FUND INC · 5 share classes

Actively managed U.S. bond fund
One fund, 5 share classes:SDHAXSDHCXSDHFXSDHIXHYMQX
$3.13B NAV
558 positions · as of 2026-06-30 · filed 2026-08-28

Fund classification

Classified from what the fund holds · as of 2026 Q2

Lord Abbett Short Duration High Income Municipal Bond Fund is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
High yield
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q1

The investment objective of the Fund is to seek a high level of income exempt from federal income tax.

Strategy · summarised

The fund invests at least 80% of its net assets in federal tax-exempt municipal bonds, with at least 50% in below-investment-grade or unrated bonds deemed comparable in quality, and may hold up to 100% in private activity bonds subject to the alternative minimum tax. The fund maintains a weighted average effective duration under 4.5 years and may invest in defaulted and distressed securities, inverse floaters, and other derivatives. Because the fund emphasizes lower-rated and unrated municipal bonds with potential for credit deterioration, holdings may experience significant price declines if issuers face financial stress or default.

Expenses
0.40% 1.26%across 5 share classes
Share classGrossNetAs of
SDHAX0.66%0.65%2025 Q1
SDHCX1.31%1.26%2025 Q1
SDHFX0.56%0.55%2025 Q1
SDHIX0.46%0.45%2025 Q1
HYMQX0.41%0.40%2025 Q1

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 29.00% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.23%
of net assets
Bonds99.16%
Derivatives0.07%

Derivatives are shown at market value, not notional exposure.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 68 new40 exited

Largest new: MASSACHUSETTS ST DEV FIN AGY REVENUE ×2, BLACK BELT ENERGY GAS DIST AL GAS PROJECT REVENUE ×2, MAIN STREET ENERGY INC ENERGY PROJ REVENUE, TEXAS ST MUNI GAS ACQUISITION & SPLY CORP V GAS SPLY REVENUE, NEW YORK ST TRANSPRTN DEV CORP SPL FAC REVENUE, NATIONAL FIN AUTH NH MUNI CTFS

Largest exited: BLACK BELT ENERGY GAS DIST AL GAS PROJECT REVENUE ×2, CALIFORNIA CMNTY CHOICE FING AUTH CLEAN ENERGY PROJ REVENUE ×2, NEW YORK NY ×2, OSCEOLA AR SOL WST DIST REVENUE, FLORIDA ST DEV FIN CORP SOL WST DISP REVENUE

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+5.37%+13.46%+6.41%2.65%-2.59%
+4.75%+11.37%+3.05%2.57%-2.74%
+5.46%+13.78%+6.98%2.66%-2.56%
+5.57%+14.11%+7.47%2.66%-2.54%
+5.62%+14.32%+7.82%2.65%-2.52%

These classes hold the same portfolio, so the 4.77pp spread over 5 years is the cost difference between them — roughly 0.95pp a year — not a difference in what they own.

Cumulative return· Jul 2023 – Apr 2026

May 2026 and Jun 2026 have been filed since the trailing figures were struck, so they are not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-06-30

Avg coupon
4.98%
Avg maturity
13.78 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

23%
floating
Fixed rate76.1%
Floating rate23.5%
Zero-coupon or unclassified0.5%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y1.4%
1-3y3.8%
3-5y3.4%
5-10y38.4%
10y+53.1%
Flagged holdings
Defaulted: 0.29% · $8.91M · 6 positions
In arrears: none reported
Paid in kind: none reported

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
3.09 yr
approx. move per 100bp
Credit-spread duration
4.14 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -7.0%
of value
Credit spreads57%
Interest rates43%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+4.14
yrs total
High yield+2.09 yr
Investment grade+2.05 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate3.09 yr total
3 mo30 yr
3 mo0.08 yr3%
1 yr0.33 yr11%
5 yr1.07 yr35%
10 yr1.46 yr47%
30 yr0.15 yr5%
Credit spread4.14 yr total
3 mo30 yr
3 mo0.04 yr1%
1 yr0.41 yr10%
5 yr1.49 yr36%
10 yr1.98 yr48%
30 yr0.22 yr5%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.08+0.01+0.02$4.4k$7.4k
1 yr+0.33+0.16+0.25$50.9k$77.0k
5 yr+1.07+0.67+0.82$209.8k$256.4k
10 yr+1.46+1.09+0.89$341.7k$277.3k
30 yr+0.15+0.11+0.11$35.2k$35.0k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
NEW YORK ST LIBERTY DEV CORP LIBERTY REVENUE5.00% · due 2044-11-151.92%$60.14M
MASSACHUSETTS ST DEV FIN AGY REVENUE4.00% · due 2036-02-151.13%$35.46M
DENVER CITY & CNTY CO SPL FACS ARPT REVENUE5.00% · due 2032-10-011.06%$33.07M
MISSION TX ECON DEV CORP REVENUE4.63% · due 2031-10-011.04%$32.45M
BERKS CNTY PA MUNI AUTH5.00% · due 2039-06-301.04%$32.47M
SOUTHEAST ENERGY AUTHORITY A COOPERATIVE5.00% · due 2035-11-011.02%$31.95M
BLACK BELT ENERGY GAS DIST AL GAS PROJECT REVENUE5.00% · due 2036-06-011.00%$31.34M
BALDWIN CNTY AL INDL DEV AUTH SOL WST DISP REVENUE5.00% floating · due 2055-06-010.95%$29.61M
PUB FIN AUTH WI TAX INCREMENT REVNUE5.00% · due 2041-06-010.93%$29.25M
BLACK BELT ENERGY GAS DIST AL GAS PROJECT REVENUE5.00% · due 2033-07-010.93%$29.16M
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Top 10 positions are 11.02% of net assets, top 25 21.90%, across 304 issuers.

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