Lord Abbett Global Equity Fund: Navigating Q2 2025 and Charting the Course Ahead

The second quarter of 2025 proved to be a dynamic period for global equity markets, characterized by continued resilience and a selective surge in growth sectors. Investors navigated a complex landscape of persistent inflation concerns, evolving interest rate expectations, and the undeniable acceleration of technological innovation.

Amidst these shifting tides, the Lord Abbett Global Equity Fund maintained its disciplined approach, focusing on high-quality companies with sustainable competitive advantages and robust growth prospects.

Global equities, as measured by the MSCI World Index, delivered solid returns during Q2, largely propelled by strong corporate earnings, particularly within the technology and innovation-driven segments.

Enthusiasm around artificial intelligence (AI) continued to be a significant catalyst, with companies at the forefront of AI development and adoption experiencing substantial valuation appreciation. This powerful theme underscored the importance of investing in businesses poised to capitalize on long-term structural shifts rather than short-term market noise.

Our fund’s performance during this period reflected our commitment to a diversified portfolio rooted in fundamental research.

We saw positive contributions from our overweight positions in companies benefiting from digital transformation, sustainable energy solutions, and healthcare innovation. Conversely, some sectors sensitive to consumer discretionary spending faced headwinds, as elevated inflation continued to temper consumer confidence in certain regions.

We remain vigilant in monitoring macroeconomic indicators, including inflation trends, central bank policies, and geopolitical developments, which collectively shape the investment environment.

Looking forward, our investment strategy remains steadfast. We believe that identifying companies with strong balance sheets, consistent free cash flow generation, and visionary management teams is paramount.

We are particularly attentive to businesses that demonstrate pricing power and adaptability in a higher-for-longer interest rate scenario, as well as those leading the charge in critical innovation hubs globally. Our research process continues to uncover opportunities in areas such as advanced materials, precision medicine, and the broader electrification theme, which we anticipate will drive growth for years to come.

The global economic outlook, while displaying pockets of strength, also presents nuanced challenges.

Supply chain recalibrations, labor market dynamics, and regional geopolitical tensions all warrant careful consideration. We believe that active management, coupled with a long-term perspective, is crucial for navigating these complexities effectively. The Lord Abbett Global Equity Fund is strategically positioned to seek out compelling investment opportunities that align with our conviction in enduring growth themes, aiming to deliver consistent, risk-adjusted returns for our investors as we move into the second half of 2025 and beyond.