UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-05476
LORD ABBETT GLOBAL FUND, INC.
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
(Address of principal executive offices) (Zip code)
John T. Fitzgerald, Esq., Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
(Name and address of agent for service)
Registrant’s telephone number, including area code:(888) 522-2388
Date of fiscal year end: 12/31
Date of reporting period: 12/31/2019
| Item 1: | Report(s) to Shareholders. |
LORD ABBETT
ANNUAL REPORT
Lord Abbett
Emerging Markets Bond Fund
Emerging Markets Corporate Debt Fund
Global Bond Fund
For the fiscal year ended December 31, 2019
Important Information on Paperless Delivery
Beginning in February 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer, investment advisor or bank. Instead, the reports will be made available on Lord Abbett’s website and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. Shareholders who hold accounts directly with a Fund may elect to receive shareholder reports and other communications from the Fund electronically by signing into your Lord Abbett online account at lordabbett.com and selecting “Log In.” For further information, you may also contact the Funds at (800) 821-5129. Shareholders who hold accounts through a financial intermediary should contact them directly.
You may elect to receive all future reports in paper free of charge by contacting a Fund at (800) 821-5129. Your election to receive reports in paper will apply to all funds held with Lord Abbett. If your fund shares are held through a financial intermediary please contact them directly. Your election applies to all funds held with that intermediary.
Table of Contents
Lord Abbett Emerging Markets Bond Fund, Lord Abbett Emerging Markets Corporate Bond Fund, and Lord Abbett Global Bond Fund
Annual Report
For the fiscal year ended December 31, 2019
From left to right: James L.L. Tullis, Independent Chairman of the Lord Abbett Funds and Douglas B. Sieg, Director, President, and Chief Executive Officer of the Lord Abbett Funds. | | Dear Shareholders:We are pleased to provide you with this overview of the performance of the Funds for the fiscal year ended December 31, 2019. On this page and the following pages, we discuss the major factors that influenced fiscal year performance. For detailed and more timely information about the Funds, please visit our website at www.lordabbett.com, where you also can access the quarterly commentaries that provide updates on the Fund’s performance and other portfolio related updates. Thank you for investing in Lord Abbett mutual funds. We value the trust that you place in us and look forward to serving your investment needs in the years to come. Best regards, 
Douglas B. Sieg Director, President, and Chief Executive Officer |
Lord Abbett Emerging Markets Bond Fund
For the fiscal year ended December 31, 2019, the Fund returned 15.91%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, compared to its benchmark, the J.P. Morgan Emerging Markets Bond Global Diversified Index (EMBI Global Diversified),1which returned 15.04% during the same period.
During the 12-month period, U.S. dollar-denominated emerging markets
sovereign debt (as represented by the J.P. Morgan Emerging Markets Bond Global Diversified Index1) outperformed U.S. fixed income markets (as represented by the Bloomberg Barclays U.S. Aggregate Bond Index2), which returned 8.72%. In 2019, the emerging markets bond asset class was characterized by emerging markets central banks finding ample room to ease and support growth as major central banks kept their rates low and inflation levels remained subdued. Additionally, trade talks between the United States and China
1
began to move in the right direction towards the end of the year, ultimately resulting in a December agreement by both parties to sign a “Phase One” trade deal. Notable events during the year included a surprise election result out of Argentina where market-friendly incumbent President Mauricio Macri lost in a landslide election to Alberto Fernandez and a drone attack on a major Saudi Arabian oil processing plant in mid-September, which sparked concerns of oil supply disruptions.
The Fund’s underweight allocation to Lebanon contributed to relative performance as the nation continued to grapple with an economic crisis and investors monitored the likelihood of credit defaults. Additionally, an overweight to select corporates within China contributed to relative performance. Supply and demand fundamentals were supportive for the real estate sector and high quality developers gained increased access to financing opportunities. In terms of detractors, an overweight to Argentina negatively impacted relative performance following the surprise election result electing Alberto Fernandez. Finally, an underweight to sovereign bonds issued by the Philippines detracted from relative performance.
Lord Abbett Emerging Markets Corporate Debt Fund
For the fiscal year ended December 31, 2019, the Fund returned 13.56%, reflecting performance at the net asset value (NAV)
of Class A shares, with all distributions reinvested, compared to its benchmark, the J.P. Morgan Corporate Emerging Markets Bond Index Broad Diversified3, which returned 13.09% during the same period.
During the 12-month period, U.S. dollar-denominated emerging markets corporate debt (as represented by the J.P. Morgan Corporate Emerging Markets Bond Index Broad Diversified1) outperformed U.S. fixed income markets (as represented by the Bloomberg Barclays U.S. Aggregate Bond Index2). In 2019, the emerging markets bond asset class was characterized by emerging markets central banks finding ample room to ease and support growth as major central banks kept their rates low and inflation levels remained subdued. Additionally, trade talks between the United States and China began to move in the right direction towards the end of the year, ultimately resulting in a December agreement by both parties to sign a “Phase One” trade deal. Notable events during the year included a surprise election result out of Argentina where market-friendly incumbent President Mauricio Macri lost in a landslide election to Alberto Fernandez and a drone attack on a major Saudi Arabian oil processing plant in mid-September, which sparked concerns of oil supply disruptions.
An overweight to select corporates within China contributed to relative performance. Supply and demand fundamentals were supportive for the real estate sector and high quality developers gained increased access to financing opportunities. Additionally, an overweight
2
to Brazil’s Petrobras, a publicly-held oil and gas corporation, led to a positive impact on relative performance. In terms of detractors, underweights in Hong Kong, Macau, & Thailand negatively impacted relative performance. Finally, an overweight to Argentinian corporates led to a negative impact on relative performance following the surprise election result electing Alberto Fernandez.
Lord Abbett Global Bond Fund
For the fiscal year ended December 31, 2019, the Fund returned 8.32%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Bloomberg Barclays Global Aggregate Bond Index,4which returned 6.84%.
Over the period, the global bond market experienced positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown. Overall, European markets (as measured by the Euro Stoxx 50 Index5) rose roughly 22.3% in U.S. dollars for the period, while Japan’s Nikkei 2256rose 19.8%.
One of the more notable shifts over the year was the U.S. Federal Reserve’s (“Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given an uncertain
market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed had cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (“ECB”) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of€20 billion beginning on November 1, 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (“BoJ”) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates remained unchanged at -0.1%, and the bank kept its 10-year government bond yield target at around 0%. The BoJ also signaled that it may cut interest rates in the near future to support growth.
The International Monetary Fund estimated that global growth will improve from 2.9% in 2019 to 3.3% in 2020 and 3.4% in 2021. This growth projection reflects the impact of substantial monetary easing across developed and emerging
3
markets as well as the expectation that underperforming and stressed economies pick up performance, relatively healthy emerging market economies maintain their robust performance, and advanced economies continue to work towards their potential growth rates. As of the end of December, unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.5% in the United States, 3.6% in China, and 2.2% in Japan, all multi-year lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation has remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.
The Fund maintains a flexible, multi-sector approach with the ability to have exposure to sectors outside of its benchmark, the Bloomberg Barclays Global Aggregate Bond Index4. The Fund seeks to deliver total return by investing in bonds across multiple sectors in developed and emerging markets located throughout the world. Primary sector allocations include investment grade and high yield corporate bonds, sovereign debt, mortgage-backed securities (“MBS”), and asset-backed securities (“ABS”).
The period ended December 31, 2019 was a supportive environment for global
bonds. The Fund’s overweight positioning and security selection within global investment grade and high yield corporate bonds contributed to relative performance. Within high yield corporate bonds, the Fund’s allocation to both U.S. and non-U.S. high yield corporate bonds within developed markets aided performance. Domestic and global high yield bonds exhibited strong returns as spreads compressed during the period, largely due to supportive central bank policies, progress around geopolitical risks, and strong employment data. The Fund’s exposure to developed market government bonds weighed on relative performance. Global yields generally fell during the year, benefitting sovereign securities. In particular, the Fund’s large underweight position to Japanese government bonds detracted from relative performance, as the yields on Japanese global bonds fell even further into negative territory during the year amid speculation regarding interest rate movements from the BoJ. Additionally, the Fund’s positioning within its MBS allocation detracted from relative performance during the period.
Each Fund’s portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or particular sector as a percentage of portfolio assets are subject to change. Sectors may include many industries.
4
1 The J.P. Morgan Emerging Markets Bond Global Diversified Index is a uniquely-weighted version of the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global). It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. The countries covered in the EMBI Global Diversified are identical to those covered by the EMBI Global.
2 The Bloomberg Barclays U.S. Aggregate Bond Index is an index of U.S dollar-denominated, investment-grade U.S. government and corporate securities, and mortgage pass-through securities, and asset-backed securities. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and an investor cannot invest directly in an index.
3 The J.P. Morgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI BD) is a market capitalization weighted index that tracks total returns of U.S. dollar denominated debt instruments issued by corporate entities in emerging markets countries. The Index limits the current face amount allocations of the bonds in the CEMBI Broad by constraining the total face amount outstanding for countries with larger debt stocks.
4 The Bloomberg Barclays Global Aggregate Bond Index is a broad-based measure of the global investment-grade, fixed-income markets. The three major components of this Index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. The Index also includes euro dollar and euro/yen corporate bonds, Canadian government securities, and U.S. dollar investment-grade 144A securities.
5 The EURO STOXX 50® Index represents the performance of the 50 largest companies among the 19 supersectors in terms of free-float market cap in 12 eurozone countries. These countries include Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The Index has a fixed number of components and is part of the STOXX® blue-chip index family. The Index captures about 60% of the free-float market cap of the EURO STOXX® Total Market Index (TMI).
6 The Nikkei Stock Average, the Nikkei 225 is used around the globe as the premier index of Japanese stocks. Because of the prominent nature of the Index, many financial products linked to the Nikkei 225 that have been created are traded worldwide, and has been sufficiently used as the indicator of the
movement of Japanese stock markets. The Nikkei 225 is a price-weighted equity index, which consists of 225 stocks in the 1st section of the Tokyo Stock Exchange.
Unless otherwise specified, indexes reflect total return, with all dividends reinvested. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
Important Performance and Other Information
Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in the Funds will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling Lord Abbett at 888-522-2388 or referring to www.lordabbett.com.
Except where noted, comparative Fund performance does not account for the deduction of sales charges and would be different if sales charges were included. Each Fund offers classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see each Fund’s prospectus.
During certain periods shown, expense waivers and reimbursements were in place. Without such waivers and expense reimbursements, the Funds’ returns would have been lower.
The annual commentary above discusses the views of the Funds’ management and various portfolio holdings of the Funds as of December 31, 2019. These views and portfolio holdings may have changed after this date. Information provided in the commentary is not a recommendation to buy or sell securities. Because the Funds’ portfolio is actively managed and may change significantly, the Funds may no longer own the securities described above or may have otherwise changed their positions in the securities. For more recent information about the Funds’ portfolio holdings, please visit www.lordabbett.com.
A Note about Risk:See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see each Fund’s prospectus.
Mutual funds are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks, and are subject to investment risks including possible loss of principal amount invested.
5
Emerging Markets Bond Fund
Investment Comparison
Below is a comparison of a $10,000 investment in Class A shares with the same investment in the J.P. Morgan Emerging Markets Bond Global Diversified Index (EMBI Global Diversified), assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower.Past performance is no guarantee of future results.
Average Annual Total Returns at Maximum Applicable
Sales Charge for the Periods Ended December 31, 2019 |
| | | 1 Year | | 5 Years | | 10 Years | | Life of Class | |
| Class A3 | | 13.31% | | 2.45% | | 1.31% | | – | |
| Class C4 | | 14.34% | | 2.33% | | 0.91% | | – | |
| Class F5 | | 16.08% | | 3.02% | | 1.67% | | – | |
| Class F36 | | 16.15% | | – | | – | | 5.19% | |
| Class I5 | | 15.92% | | 3.11% | | 1.75% | | – | |
| Class R25 | | 15.19% | | 2.50% | | 1.15% | | – | |
| Class R35 | | 15.59% | | 2.60% | | 1.24% | | – | |
| Class R47 | | 15.85% | | – | | – | | 3.82% | |
| Class R57 | | 15.92% | | – | | – | | 4.09% | |
| Class R67 | | 16.15% | | – | | – | | 4.17% | |
1 Reflects the deduction of the maximum initial sales charge of 2.25%.
2 Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.
3 Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ending December 31,
2019, is calculated using the SEC-required uniform method to compute such return.
4 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.
5 Performance is at net asset value.
6 Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.
7 Commenced operations and performance for the Class began on June 30, 2015. Performance is at net asset value.
6
Emerging Markets Corporate Debt Fund
Investment Comparison
Below is a comparison of a $10,000 investment in Class A shares with the same investment in the J.P. Morgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI BD) Index, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower.Past performance is no guarantee of future results.
Average Annual Total Returns at Maximum Applicable
Sales Charge for the Periods Ended December 31, 2019 |
| | | 1 Year | | 5 Year | | Life of Class | |
| Class A3 | | 11.00% | | 5.19% | | 5.46% | |
| Class C4 | | 11.85% | | 4.96% | | 5.12% | |
| Class F5 | | 13.66% | | 5.76% | | 5.94% | |
| Class F36 | | 13.94% | | – | | 5.53% | |
| Class I5 | | 13.69% | | 5.87% | | 6.05% | |
| Class R25 | | 13.19% | | 5.76% | | 5.97% | |
| Class R35 | | 13.31% | | 5.78% | | 5.98% | |
| Class R47 | | 13.52% | | – | | 5.53% | |
| Class R57 | | 13.79% | | – | | 5.81% | |
| Class R67 | | 13.94% | | – | | 5.94% | |
1 Reflects the deduction of the maximum initial sales charge of 2.25%.
2 Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.
3 Class A shares commenced operations on December 6, 2013 and performance for the Class began on December 31, 2013. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for the period shown ended December 31, 2019, is calculated using the SEC-required uniform method to compare such return.
4 Class C shares commenced operations on December 6, 2013 and performance for the Class began on December 31, 2013. The 1% CDSC for Class C normally applies before the first anniversary of the purchase date.
5 Commenced operations on December 6, 2013 and performance for the Class began on December 31, 2013. Performance is at net asset value.
6 Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.
7 Commenced operations and performance for the Class began on June 30, 2015. Performance is at net asset value.
7
Global Bond Fund
Investment Comparison
Below is a comparison of a $10,000 investment in Class A shares with the same investment in the Bloomberg Barclays Global Aggregate Bond Index, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett and reimbursed by the Underlying Funds; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower.Past performance is no guarantee of future results.
Average Annual Total Returns at Maximum Applicable
Sales Charge for the Periods Ended December 31, 2019 |
| | | 1 Year | | Life of Class | |
| Class A3 | | 5.92% | | 3.07% | |
| Class C4 | | 6.48% | | 3.91% | |
| Class F5 | | 8.53% | | 4.94% | |
| Class F35 | | 8.66% | | 5.07% | |
| Class I5 | | 8.53% | | 4.94% | |
| Class R35 | | 8.00% | | 4.42% | |
| Class R45 | | 8.26% | | 4.68% | |
| Class R55 | | 8.53% | | 4.95% | |
| Class R65 | | 8.66% | | 5.07% | |
1 Reflects the deduction of the maximum initial sales charge of 2.25%.
2 Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.
3 Class A shares commenced operations on July 26, 2018 and performance for the Class began on July 31, 2018. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all distributions reinvested for the periods shown
ending December 31, 2019, is calculated using the SEC-required uniform method to compute such return.
4 Class C shares commenced operations on July 26, 2018 and performance for the Class began on July 31, 2018. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.
5 Commenced operations on July 26, 2018 and performance for the Class began on July 31, 2018. Performance is at net asset value.
8
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (these charges vary among the share classes); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (these charges vary among the share classes); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2019 through December 31, 2019).
Actual Expenses
For each class of each Fund, the first line of the table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During Period 7/1/19 – 12/31/19” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each Fund, the second line of the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
9
Emerging Markets Bond Fund
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | Beginning
Account
Value | | Ending
Account
Value | | Expenses
Paid During
Period† | |
| | | 7/1/19 | | 12/31/19 | | 7/1/19 -
12/31/19 | |
| Class A | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,034.50 | | | $ | 4.92 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.37 | | | $ | 4.89 | |
| Class C | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,031.20 | | | $ | 8.09 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,017.24 | | | $ | 8.03 | |
| Class F | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,035.30 | | | $ | 3.90 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | |
| Class F3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,035.60 | | | $ | 3.85 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.42 | | | $ | 3.82 | |
| Class I | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,033.60 | | | $ | 3.90 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | |
| Class R2 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,030.50 | | | $ | 6.91 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 6.87 | |
| Class R3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,033.00 | | | $ | 6.46 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.85 | | | $ | 6.41 | |
| Class R4 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,034.30 | | | $ | 5.23 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.06 | | | $ | 5.19 | |
| Class R5 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,035.60 | | | $ | 3.75 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.53 | | | $ | 3.72 | |
| Class R6 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,035.60 | | | $ | 3.85 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.42 | | | $ | 3.82 | |
| † | For each class of the Fund, For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.96% for Class A, 1.58% for Class C, 0.76% for Class F, 0.75% for Class F3, 0.76% for Class I, 1.35% for Class R2, 1.26% for Class R3, 1.02% for Class R4, 0.73% for Class R5 and 0.75% for Class R6) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
10
Portfolio Holdings Presented by Sector
December 31, 2019
| Sector* | %** | |
| Banking | 5.11 | % |
| Basic Industry | 2.82 | % |
| Consumer Goods | 1.95 | % |
| Energy | 13.53 | % |
| Financial Services | 2.55 | % |
| Foreign Government | 60.74 | % |
| Real Estate | 0.53 | % |
| Services | 0.58 | % |
| Telecommunications | 0.56 | % |
| Transportation | 1.71 | % |
| U.S. Government | 2.93 | % |
| Utility | 5.16 | % |
| Repurchase Agreement | 1.83 | % |
| Total | 100.00 | % |
| * | | A sector may comprise several industries. |
| ** | | Represents percent of total investments. |
11
Emerging Markets Corporate Debt Fund
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | Beginning
Account
Value | | Ending
Account
Value | | Expenses
Paid During
Period† | |
| | | 7/1/19 | | 12/31/19 | | 7/1/19 -
12/31/19 | |
| Class A | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,039.90 | | | $ | 5.40 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.91 | | | $ | 5.35 | |
| Class C | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,036.60 | | | $ | 8.62 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,016.74 | | | $ | 8.54 | |
| Class F | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,040.40 | | | $ | 4.89 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.42 | | | $ | 4.84 | |
| Class F3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,041.60 | | | $ | 3.65 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.63 | | | $ | 3.62 | |
| Class I | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,040.80 | | | $ | 4.37 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.92 | | | $ | 4.33 | |
| Class R2 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,037.80 | | | $ | 7.45 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,017.90 | | | $ | 7.38 | |
| Class R3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,038.40 | | | $ | 6.94 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 6.87 | |
| Class R4 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,039.70 | | | $ | 5.66 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.66 | | | $ | 5.60 | |
| Class R5 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,041.00 | | | $ | 4.37 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.92 | | | $ | 4.33 | |
| Class R6 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,041.70 | | | $ | 3.65 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.63 | | | $ | 3.62 | |
| † | For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (1.05% for Class A, 1.68% for Class C, 0.95% for Class F, 0.71% for Class F3, 0.85% for Class I, 1.45% for Class R2, 1.35% for Class R3, 1.10% for Class R4, 0.85% for Class R5 and 0.71% for Class R6) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
12
Portfolio Holdings Presented by Sector
December 31, 2019
| Sector* | %** | |
| Auto | 0.34 | % |
| Basic Industry | 1.18 | % |
| Consumer Cyclical | 1.49 | % |
| Consumer Discretionary | 0.67 | % |
| Consumer Services | 0.98 | % |
| Consumer Staples | 3.68 | % |
| Energy | 15.20 | % |
| Financial Services | 30.17 | % |
| Foreign Government | 4.32 | % |
| Health Care | 1.68 | % |
| Materials & Processing | 13.00 | % |
| Other | 1.00 | % |
| Producer Durables | 3.07 | % |
| Technology | 3.35 | % |
| Telecommunications | 5.04 | % |
| Transportation | 0.97 | % |
| Utilities | 10.22 | % |
| Repurchase Agreement | 3.64 | % |
| Total | 100.00 | % |
| * | | A sector may comprise several industries. |
| ** | | Represents percent of total investments. |
13
Global Bond Fund
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | Beginning
Account
Value | | Ending
Account
Value | | Expenses
Paid During
Period† | |
| | | 7/1/19 | | 12/31/19 | | 7/1/19 -
12/31/19 | |
| Class A | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,014.80 | | | $ | 3.96 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.27 | | | $ | 3.97 | |
| Class C | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,010.90 | | | $ | 7.91 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,017.39 | | | $ | 7.93 | |
| Class F | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,015.80 | | | $ | 2.95 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,022.28 | | | $ | 2.96 | |
| Class F3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 2.34 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.65 | | | $ | 2.34 | |
| Class I | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,015.80 | | | $ | 2.95 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,022.28 | | | $ | 2.96 | |
| Class R3 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,013.20 | | | $ | 5.48 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.76 | | | $ | 5.50 | |
| Class R4 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,014.50 | | | $ | 4.21 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.02 | | | $ | 4.23 | |
| Class R5 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,015.80 | | | $ | 2.95 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,022.28 | | | $ | 2.96 | |
| Class R6 | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 2.34 | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,022.89 | | | $ | 2.35 | |
| † | For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.78% for Class A, 1.56% for Class C, 0.58% for Class F, 0.46% for Class F3, 0.58% for Class I, 1.08% for Class R3, 0.83% for Class R4, 0.58% for Class R5 and 0.46% for Class R6) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
14
Portfolio Holdings Presented by Sector
December 31, 2019
| Sector* | %** | |
| Auto | 2.25 | % |
| Basic Industry | 0.32 | % |
| Consumer Cyclicals | 1.46 | % |
| Consumer Discretionary | 3.94 | % |
| Consumer Durables | 0.09 | % |
| Consumer Services | 2.15 | % |
| Consumer Staples | 3.33 | % |
| Energy | 3.92 | % |
| Financial Services | 29.57 | % |
| Foreign Government | 16.98 | % |
| Forest Products | 0.98 | % |
| Healthcare | 0.41 | % |
| Information Technology | 0.10 | % |
| Integrated Oils | 0.16 | % |
| Materials & Processing | 2.27 | % |
| Municipals | 0.52 | % |
| Producer Durables | 0.87 | % |
| Services | 0.10 | % |
| Technology | 3.87 | % |
| Telecommunications | 1.29 | % |
| U.S. Government | 15.44 | % |
| Utilities | 3.00 | % |
| Repurchase Agreement | 6.98 | % |
| Total | 100.00 | % |
| * | | A sector may comprise several industries. |
| ** | | Represents percent of total investments. |
15
Schedule of Investments
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| LONG-TERM INVESTMENTS 96.01% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| CORPORATE BONDS 35.28% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Banking 4.67% | | | | | | | | | | | | | |
| Banco del Estado de Chile (Chile)†(a) | | 3.875% | | | 2/8/2022 | | $ | 455 | | | $ | 468,915 | |
| Banco do Brasil SA† | | 4.625% | | | 1/15/2025 | | | 974 | | | | 1,018,570 | |
| Banco Internacional del Peru SAA Interbank (Peru)†(a) | | 3.25% | | | 10/4/2026 | | | 400 | | | | 400,953 | |
| Banco Internacional del Peru SAA Interbank (Peru)†(a) | | 3.375% | | | 1/18/2023 | | | 970 | | | | 981,315 | |
| Banco Votorantim SA (Brazil)†(a) | | 4.50% | | | 9/24/2024 | | | 600 | | | | 618,006 | |
| Bangkok Bank plc (Hong Kong)†(a) | 3.733%
(5 Yr Treasury CMT + 1.90% | )# | | 9/25/2034 | | | 600 | | | | 608,275 | |
| Itau Unibanco Holding SA† | 4.50%
(5 Yr Treasury CMT + 2.82% | )# | | 11/21/2029 | | | 550 | | | | 563,756 | |
| NBK Tier 1 Financing 2 Ltd. (Armenia)†(a) | 4.50%
(6 Yr Swap rate + 2.83% | )# | | – | (b) | | 500 | | | | 500,000 | |
| Sberbank of Russia Via SB Capital SA (Luxembourg)†(a) | | 6.125% | | | 2/7/2022 | | | 1,380 | | | | 1,478,339 | |
| Turkiye Garanti Bankasi AS (Turkey)†(a) | | 5.875% | | | 3/16/2023 | | | 1,116 | | | | 1,150,156 | |
| Vnesheconombank via VEB Finance plc (Ireland)†(a) | | 6.80% | | | 11/22/2025 | | | 580 | | | | 693,243 | |
| Total | | | | | | | | | | | | 8,481,528 | |
| | | | | | | | | | | | | | |
| Building & Construction 0.68% | | | | | | | | | | | | | |
| Dianjian Haiyu Ltd. (China)(a) | 3.50%
(5 Yr Swap rate + 6.77% | )# | | – | (b) | | 1,221 | | | | 1,226,329 | |
| | | | | | | | | | | | | | |
| Chemicals 1.30% | | | | | | | | | | | | | |
| CNAC HK Finbridge Co. Ltd. (Hong Kong)(a) | | 4.125% | | | 7/19/2027 | | | 1,130 | | | | 1,187,462 | |
| OCP SA (Morocco)†(a) | | 6.875% | | | 4/25/2044 | | | 500 | | | | 637,572 | |
| Yingde Gases Investment Ltd. (Hong Kong)†(a) | | 6.25% | | | 1/19/2023 | | | 525 | | | | 543,688 | |
| Total | | | | | | | | | | | | 2,368,722 | |
| | | | | | | | | | | | | | |
| Electric: Distribution/Transportation 1.21% | | | | | | | | | | | | | |
| OmGrid Funding Ltd.† | | 5.196% | | | 5/16/2027 | | | 1,180 | | | | 1,217,730 | |
| Perusahaan Listrik Negara PT (Indonesia)†(a) | | 4.125% | | | 5/15/2027 | | | 930 | | | | 982,636 | |
| Total | | | | | | | | | | | | 2,200,366 | |
| | | | | | | | | | | | | | |
| Electric: Generation 0.57% | | | | | | | | | | | | | |
| Greenko Mauritius Ltd. (India)†(a) | | 6.25% | | | 2/21/2023 | | | 1,000 | | | | 1,029,295 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Electric: Integrated 3.29% | | | | | | | | | | | | | |
| Abu Dhabi National Energy Co. PJSC (Armenia)†(a) | | 4.00% | | | 10/3/2049 | | | 500 | | | | 519,574 | |
| Empresas Publicas de Medellin ESP (Colombia)†(a) | | 4.25% | | | 7/18/2029 | | | 200 | | | | 208,411 | |
| 16 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Electric: Integrated (continued) | | | | | | | | | | | | | |
| Enel Chile SA (Chile)(a) | | 4.875% | | | 6/12/2028 | | $ | 910 | | | $ | 1,008,141 | |
| Eskom Holdings SOC Ltd. (South Africa)†(a) | | 5.75% | | | 1/26/2021 | | | 1,485 | | | | 1,491,497 | |
| Eskom Holdings SOC Ltd. (South Africa)†(a) | | 7.125% | | | 2/11/2025 | | | 1,150 | | | | 1,179,833 | |
| Perusahaan Listrik Negara PT (Indonesia)†(a) | | 4.875% | | | 7/17/2049 | | | 1,450 | | | | 1,574,606 | |
| Total | | | | | | | | | | | | 5,982,062 | |
| | | | | | | | | | | | | | |
| Energy: Exploration & Production 3.78% | | | | | | | | | | | | | |
| Hunt Oil Co. of Peru LLC Sucursal Del Peru (Peru)†(a) | | 6.375% | | | 6/1/2028 | | | 900 | | | | 992,790 | |
| KazMunayGas National Co. JSC (Kazakhstan)†(a) | | 4.75% | | | 4/19/2027 | | | 1,100 | | | | 1,210,835 | |
| KazMunayGas National Co. JSC (Kazakhstan)†(a) | | 6.375% | | | 10/24/2048 | | | 1,071 | | | | 1,381,847 | |
| KazTransGas JSC (Kazakhstan)†(a) | | 4.375% | | | 9/26/2027 | | | 980 | | | | 1,029,958 | |
| PT Saka Energi Indonesia (Indonesia)†(a) | | 4.45% | | | 5/5/2024 | | | 1,860 | | | | 1,891,883 | |
| PTTEP Treasury Center Co. Ltd. (Thailand)†(a) | | 3.903% | | | 12/6/2059 | | | 361 | | | | 360,412 | |
| Total | | | | | | | | | | | | 6,867,725 | |
| | | | | | | | | | | | | | |
| Food: Wholesale 1.91% | | | | | | | | | | | | | |
| BRF SA (Brazil)†(a) | | 4.875% | | | 1/24/2030 | | | 450 | | | | 464,742 | |
| Kernel Holding SA (Ukraine)†(a) | | 8.75% | | | 1/31/2022 | | | 710 | | | | 767,832 | |
| MHP Lux SA (Luxembourg)†(a) | | 6.25% | | | 9/19/2029 | | | 1,000 | | | | 984,350 | |
| MHP Lux SA (Luxembourg)†(a) | | 6.95% | | | 4/3/2026 | | | 1,199 | | | | 1,260,221 | |
| Total | | | | | | | | | | | | 3,477,145 | |
| | | | | | | | | | | | | | |
| Foreign Government 0.71% | | | | | | | | | | | | | |
| CBB International Sukuk Co. 6 Spc (Bahrain)†(a) | | 5.25% | | | 3/20/2025 | | | 1,200 | | | | 1,296,156 | |
| | | | | | | | | | | | | | |
| Foreign Sovereign 1.00% | | | | | | | | | | | | | |
| Petroleos Mexicanos(c) | | 4.875% | | | 2/21/2028 | | EUR | 750 | | | | 905,002 | |
| Third Pakistan International Sukuk Co. Ltd. (The) (Pakistan)†(a) | 5.625% | | | 12/5/2022 | | $ | 890 | | | | 914,951 | |
| Total | | | | | | | | | | | | 1,819,953 | |
| | | | | | | | | | | | | | |
| Forestry/Paper 0.50% | | | | | | | | | | | | | |
| Klabin Austria GmbH (Austria)†(a) | | 5.75% | | | 4/3/2029 | | | 850 | | | | 906,831 | |
| | | | | | | | | | | | | | |
| Gas Distribution 0.86% | | | | | | | | | | | | | |
| Southern Gas Corridor CJSC (Azerbaijan)†(a) | | 6.875% | | | 3/24/2026 | | | 955 | | | | 1,134,019 | |
| Transportadora de Gas Internacional SA ESP (Colombia)†(a) | 5.55% | | | 11/1/2028 | | | 375 | | | | 429,978 | |
| Total | | | | | | | | | | | | 1,563,997 | |
| | | | | | | | | | | | | | |
| Integrated Energy 5.74% | | | | | | | | | | | | | |
| Ecopetrol SA (Colombia)(a) | | 7.375% | | | 9/18/2043 | | | 360 | | | | 488,137 | |
| Gazprom PJSC Via Gaz Capital SA (Luxembourg)†(a) | | 4.95% | | | 2/6/2028 | | | 1,890 | | | | 2,111,449 | |
| | See Notes to Financial Statements. | 17 |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Integrated Energy (continued) | | | | | | | | | | | | | |
| Lukoil International Finance BV (Netherlands)†(a) | | 4.75% | | | 11/2/2026 | | $ | 740 | | | $ | 821,353 | |
| Pertamina Persero PT (Indonesia)†(a) | | 4.30% | | | 5/20/2023 | | | 730 | | | | 771,228 | |
| Pertamina Persero PT (Indonesia)†(a) | | 4.70% | | | 7/30/2049 | | | 300 | | | | 320,613 | |
| Pertamina Persero PT (Indonesia)†(a) | | 5.625% | | | 5/20/2043 | | | 630 | | | | 737,392 | |
| Petroleos Mexicanos (Mexico)(a) | | 5.35% | | | 2/12/2028 | | | 2,445 | | | | 2,439,737 | |
| Petroleos Mexicanos (Mexico)†(a) | | 6.49% | | | 1/23/2027 | | | 312 | | | | 332,158 | |
| Petroleos Mexicanos (Mexico)(a) | | 6.75% | | | 9/21/2047 | | | 1,408 | | | | 1,415,484 | |
| Sinopec Group Overseas Development Ltd. (China)†(a) | | 3.625% | | | 4/12/2027 | | | 930 | | | | 976,813 | |
| Total | | | | | | | | | | | | 10,414,364 | |
| | | | | | | | | | | | | | |
| Investments & Miscellaneous Financial Services 2.51% | | | | | | | | | | | | |
| AI Candelaria Spain SLU (Spain)†(a) | | 7.50% | | | 12/15/2028 | | | 650 | | | | 730,663 | |
| Charming Light Investments Ltd. | | 4.375% | | | 12/21/2027 | | | 780 | | | | 836,149 | |
| China Cinda Finance 2017 I Ltd. | | 4.75% | | | 2/8/2028 | | | 1,205 | | | | 1,346,996 | |
| Chinalco Capital Holdings Ltd. | | 4.00% | | | 8/25/2021 | | | 1,030 | | | | 1,040,791 | |
| MDGH - GMTN BV (Netherlands)†(a) | | 3.70% | | | 11/7/2049 | | | 580 | | | | 604,404 | |
| Total | | | | | | | | | | | | 4,559,003 | |
| | | | | | | | | | | | | | |
| Metals/Mining (Excluding Steel) 0.30% | | | | | | | | | | | | | |
| Corp. Nacional del Cobre de Chile (Chile)†(a) | | 4.375% | | | 2/5/2049 | | | 500 | | | | 537,451 | |
| | | | | | | | | | | | | | |
| Oil Field Equipment & Services 0.63% | | | | | | | | | | | | | |
| State Oil Co. of the Azerbaijan Republic (Azerbaijan)(a) | | 4.75% | | | 3/13/2023 | | | 740 | | | | 779,434 | |
| State Oil Co. of the Azerbaijan Republic (Azerbaijan)(a) | | 6.95% | | | 3/18/2030 | | | 290 | | | | 356,732 | |
| Total | | | | | | | | | | | | 1,136,166 | |
| | | | | | | | | | | | | | |
| Oil Refining & Marketing 2.30% | | | | | | | | | | | | | |
| Citgo Holding, Inc.† | | 9.25% | | | 8/1/2024 | | | 208 | | | | 223,600 | |
| Empresa Nacional del Petroleo (Chile)†(a) | | 3.75% | | | 8/5/2026 | | | 1,536 | | | | 1,573,083 | |
| Empresa Nacional del Petroleo (Chile)†(a) | | 4.50% | | | 9/14/2047 | | | 1,000 | | | | 1,020,271 | |
| Saudi Arabian Oil Co. (Saudi Arabia)†(a) | | 4.375% | | | 4/16/2049 | | | 725 | | | | 791,599 | |
| Thaioil Treasury Center Co. Ltd. (Thailand)†(a) | | 3.50% | | | 10/17/2049 | | | 600 | | | | 569,483 | |
| Total | | | | | | | | | | | | 4,178,036 | |
| | | | | | | | | | | | | | |
| Rail 1.02% | | | | | | | | | | | | | |
| China Railway Xunjie Co. Ltd. (China)(a) | | 3.25% | | | 7/28/2026 | | | 1,038 | | | | 1,048,250 | |
| Kazakhstan Temir Zholy Finance BV (Netherlands)†(a) | 6.95% | | | 7/10/2042 | | | 600 | | | | 807,222 | |
| Total | | | | | | | | | | | | 1,855,472 | |
| 18 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Real Estate Development & Management 0.52% | | | | | | | | | | | | | |
| Kaisa Group Holdings Ltd. (China)†(a) | | 11.95% | | | 10/22/2022 | | $ | 550 | | | $ | 574,409 | |
| Sunac China Holdings Ltd. (China)(a) | | 7.875% | | | 2/15/2022 | | | 360 | | | | 374,396 | |
| Total | | | | | | | | | | | | 948,805 | |
| | | | | | | | | | | | | | |
| Telecommunications: Wireline Integrated & Services 0.55% | | | | | | | | | | | | |
| Oztel Holdings SPC Ltd. (United Arab Emirates)†(a) | | 6.625% | | | 4/24/2028 | | | 930 | | | | 989,581 | |
| | | | | | | | | | | | | | |
| Transportation (Excluding Air/Rail) 0.57% | | | | | | | | | | | | | |
| DP World Crescent Ltd. | | 3.875% | | | 7/18/2029 | | | 1,000 | | | | 1,027,560 | |
| | | | | | | | | | | | | | |
| Transportation: Infrastructure/Services 0.66% | | | | | | | | | | | | | |
| Aeropuerto Internacional de Tocumen SA (Panama)†(a) | | 5.625% | | | 5/18/2036 | | | 816 | | | | 963,908 | |
| Transnet SOC Ltd. (South Africa)†(a) | | 4.00% | | | 7/26/2022 | | | 235 | | | | 239,067 | |
| Total | | | | | | | | | | | | 1,202,975 | |
| Total Corporate Bonds (cost $59,743,098) | | | | | | | | | | | | 64,069,522 | |
| | | | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATIONS 60.73% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Angola 1.71% | | | | | | | | | | | | | |
| Republic of Angola†(a) | | 8.25% | | | 5/9/2028 | | | 1,510 | | | | 1,634,889 | |
| Republic Of Angola†(a) | | 9.125% | | | 11/26/2049 | | | 500 | | | | 536,266 | |
| Republic of Angola†(a) | | 9.50% | | | 11/12/2025 | | | 790 | | | | 926,958 | |
| Total | | | | | | | | | | | | 3,098,113 | |
| | | | | | | | | | | | | | |
| Argentina 2.52% | | | | | | | | | | | | | |
| Province of Santa Fe†(a) | | 6.90% | | | 11/1/2027 | | | 550 | | | | 437,250 | |
| Province of Santa Fe†(a) | | 7.00% | | | 3/23/2023 | | | 985 | | | | 797,850 | |
| Provincia of Neuquen†(a) | | 7.50% | | | 4/27/2025 | | | 1,040 | | | | 798,200 | |
| Republic of Argentina(a) | | 5.875% | | | 1/11/2028 | | | 1,000 | | | | 472,848 | |
| Republic of Argentina(a) | | 8.28% | | | 12/31/2033 | | | 3,334 | | | | 2,061,179 | |
| Total | | | | | | | | | | | | 4,567,327 | |
| | | | | | | | | | | | | | |
| Bahamas 0.70% | | | | | | | | | | | | | |
| Commonwealth of Bahamas†(a) | | 5.75% | | | 1/16/2024 | | | 1,173 | | | | 1,271,239 | |
| | | | | | | | | | | | | | |
| Bahrain 0.69% | | | | | | | | | | | | | |
| Bahrain Government International Bond†(a) | | 6.00% | | | 9/19/2044 | | | 300 | | | | 315,838 | |
| Bahrain Government International Bond†(a) | | 6.75% | | | 9/20/2029 | | | 800 | | | | 936,534 | |
| Total | | | | | | | | | | | | 1,252,372 | |
| | | | | | | | | | | | | | |
| Benin 0.32% | | | | | | | | | | | | | |
| Benin Government International Bond†(c) | | 5.75% | | | 3/26/2026 | | EUR | 500 | | | | 585,770 | |
| | See Notes to Financial Statements. | 19 |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Bermuda 0.58% | | | | | | | | | | | | | |
| Government of Bermuda† | | 3.717% | | | 1/25/2027 | | $ | 1,000 | | | $ | 1,052,857 | |
| | | | | | | | | | | | | | |
| Brazil 1.24% | | | | | | | | | | | | | |
| Brazilian Government International Bond(a) | | 4.75% | | | 1/14/2050 | | | 1,206 | | | | 1,191,564 | |
| Federal Republic of Brazil(a) | | 4.625% | | | 1/13/2028 | | | 562 | | | | 604,572 | |
| Federal Republic of Brazil(a) | | 5.00% | | | 1/27/2045 | | | 436 | | | | 454,414 | |
| Total | | | | | | | | | | | | 2,250,550 | |
| | | | | | | | | | | | | | |
| Colombia 2.60% | | | | | | | | | | | | | |
| Republic of Colombia(a) | | 3.875% | | | 4/25/2027 | | | 1,810 | | | | 1,919,229 | |
| Republic of Colombia(a) | | 5.00% | | | 6/15/2045 | | | 2,410 | | | | 2,807,493 | |
| Total | | | | | | �� | | | | | | 4,726,722 | |
| | | | | | | | | | | | | | |
| Costa Rica 1.35% | | | | | | | | | | | | | |
| Costa Rica Government†(a) | | 4.25% | | | 1/26/2023 | | | 818 | | | | 824,474 | |
| Costa Rica Government†(a) | | 4.375% | | | 4/30/2025 | | | 485 | | | | 485,201 | |
| Costa Rica Government†(a) | | 5.625% | | | 4/30/2043 | | | 1,220 | | | | 1,135,741 | |
| Total | | | | | | | | | | | | 2,445,416 | |
| | | | | | | | | | | | | | |
| Dominican Republic 3.32% | | | | | | | | | | | | | |
| Dominican Republic†(a) | | 6.40% | | | 6/5/2049 | | | 1,000 | | | | 1,099,685 | |
| Dominican Republic†(a) | | 5.95% | | | 1/25/2027 | | | 2,660 | | | | 2,943,576 | |
| Dominican Republic†(a) | | 6.85% | | | 1/27/2045 | | | 1,740 | | | | 1,991,752 | |
| Total | | | | | | | | | | | | 6,035,013 | |
| | | | | | | | | | | | | | |
| Ecuador 1.92% | | | | | | | | | | | | | |
| Ecuador Government International Bond†(a) | | 9.65% | | | 12/13/2026 | | | 1,200 | | | | 1,143,417 | |
| Republic of Ecuador†(a) | | 7.875% | | | 1/23/2028 | | | 2,000 | | | | 1,783,215 | |
| Republic of Ecuador†(a) | | 9.50% | | | 3/27/2030 | | | 600 | | | | 561,208 | |
| Total | | | | | | | | | | | | 3,487,840 | |
| | | | | | | | | | | | | | |
| Egypt 3.19% | | | | | | | | | | | | | |
| Arab Republic of Egypt†(a) | | 4.55% | | | 11/20/2023 | | | 640 | | | | 654,813 | |
| Arab Republic of Egypt†(a) | | 6.125% | | | 1/31/2022 | | | 1,220 | | | | 1,272,461 | |
| Arab Republic of Egypt†(a) | | 6.588% | | | 2/21/2028 | | | 2,105 | | | | 2,200,546 | |
| Arab Republic of Egypt†(a) | | 7.903% | | | 2/21/2048 | | | 1,070 | | | | 1,125,948 | |
| Egypt Government International Bond†(a) | | 8.15% | | | 11/20/2059 | | | 500 | | | | 535,595 | |
| Total | | | | | | | | | | | | 5,789,363 | |
| 20 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| El Salvador 1.61% | | | | | | | | | | | | | |
| Republic of EI Salvador†(a) | | 6.375% | | | 1/18/2027 | | $ | 1,742 | | | $ | 1,855,853 | |
| Republic of EI Salvador†(a) | | 7.125% | | | 1/20/2050 | | | 1,000 | | | | 1,067,815 | |
| Total | | | | | | | | | | | | 2,923,668 | |
| | | | | | | | | | | | | | |
| Ghana 0.66% | | | | | | | | | | | | | |
| Republic of Ghana†(a) | | 7.875% | | | 8/7/2023 | | | 682 | | | | 750,705 | |
| Republic of Ghana(a) | | 7.875% | | | 3/26/2027 | | | 425 | | | | 447,761 | |
| Total | | | | | | | | | | | | 1,198,466 | |
| | | | | | | | | | | | | | |
| Guatemala 1.21% | | | | | | | | | | | | | |
| Republic of Guatemala†(a) | | 4.375% | | | 6/5/2027 | | | 925 | | | | 960,009 | |
| Republic of Guatemala†(a) | | 4.90% | | | 6/1/2030 | | | 500 | | | | 536,424 | |
| Republic of Guatemala†(a) | | 6.125% | | | 6/1/2050 | | | 600 | | | | 709,317 | |
| Total | | | | | | | | | | | | 2,205,750 | |
| | | | | | | | | | | | | | |
| Honduras 0.41% | | | | | | | | | | | | | |
| Honduras Government†(a) | | 6.25% | | | 1/19/2027 | | | 675 | | | | 738,516 | |
| | | | | | | | | | | | | | |
| Indonesia 1.67% | | | | | | | | | | | | | |
| Indonesia Government International Bond(a) | | 3.70% | | | 10/30/2049 | | | 500 | | | | 514,395 | |
| Indonesia Government International Bond(a) | | 4.10% | | | 4/24/2028 | | | 930 | | | | 1,011,173 | |
| Republic of Indonesia†(a) | | 4.75% | | | 1/8/2026 | | | 835 | | | | 929,111 | |
| Republic of Indonesia(a) | | 4.75% | | | 2/11/2029 | | | 500 | | | | 573,098 | |
| Total | | | | | | | | | | | | 3,027,777 | |
| | | | | | | | | | | | | | |
| Ivory Coast 1.28% | | | | | | | | | | | | | |
| Ivory Coast Bond†(a) | | 6.375% | | | 3/3/2028 | | | 2,200 | | | | 2,326,599 | |
| | | | | | | | | | | | | | |
| Jamaica 1.12% | | | | | | | | | | | | | |
| Government of Jamaica(a) | | 7.875% | | | 7/28/2045 | | | 1,507 | | | | 2,039,627 | |
| | | | | | | | | | | | | | |
| Kazakhstan 1.19% | | | | | | | | | | | | | |
| Republic of Kazakhstan†(c) | | 1.50% | | | 9/30/2034 | | EUR | 500 | | | | 572,660 | |
| Republic of Kazakhstan†(a) | | 3.875% | | | 10/14/2024 | | $ | 422 | | | | 453,646 | |
| Republic of Kazakhstan†(a) | | 4.875% | | | 10/14/2044 | | | 915 | | | | 1,132,852 | |
| Total | | | | | | | | | | | | 2,159,158 | |
| | | | | | | | | | | | | | |
| Kenya 1.49% | | | | | | | | | | | | | |
| Republic of Kenya†(a) | | 7.00% | | | 5/22/2027 | | | 700 | | | | 746,857 | |
| Republic of Kenya†(a) | | 7.25% | | | 2/28/2028 | | | 936 | | | | 1,020,001 | |
| Republic of Kenya†(a) | | 8.25% | | | 2/28/2048 | | | 874 | | | | 939,156 | |
| Total | | | | | | | | | | | | 2,706,014 | |
| | See Notes to Financial Statements. | 21 |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Lebanon 0.49% | | | | | | | | | | | | | |
| Republic of Lebanon(a) | | 6.65% | | | 2/26/2030 | | $ | 1,948 | | | $ | 881,353 | |
| | | | | | | | | | | | | | |
| Mexico 1.41% | | | | | | | | | | | | | |
| United Maxican States(a) | | 4.50% | | | 1/31/2050 | | | 2,370 | | | | 2,566,710 | |
| | | | | | | | | | | | | | |
| Mongolia 0.77% | | | | | | | | | | | | | |
| Development Bank of Mongolia LLC†(a) | | 7.25% | | | 10/23/2023 | | | 422 | | | | 447,298 | |
| Republic of Mongolia†(a) | | 5.125% | | | 12/5/2022 | | | 930 | | | | 954,143 | |
| Total | | | | | | | | | | | | 1,401,441 | |
| | | | | | | | | | | | | | |
| Nigeria 3.00% | | | | | | | | | | | | | |
| Republic of Nigeria†(a) | | 6.375% | | | 7/12/2023 | | | 926 | | | | 991,877 | |
| Republic of Nigeria†(a) | | 6.50% | | | 11/28/2027 | | | 3,073 | | | | 3,146,343 | |
| Republic of Nigeria†(a) | | 9.248% | | | 1/21/2049 | | | 1,174 | | | | 1,315,136 | |
| Total | | | | | | | | | | | | 5,453,356 | |
| | | | | | | | | | | | | | |
| Oman 1.96% | | | | | | | | | | | | | |
| Oman Government International Bond†(a) | | 4.75% | | | 6/15/2026 | | | 2,109 | | | | 2,143,271 | |
| Oman Government International Bond†(a) | | 6.75% | | | 1/17/2048 | | | 1,400 | | | | 1,410,966 | |
| Total | | | | | | | | | | | | 3,554,237 | |
| | | | | | | | | | | | | | |
| Pakistan 1.14% | | | | | | | | | | | | | |
| Pakistan Government International Bond†(a) | | 6.875% | | | 12/5/2027 | | | 525 | | | | 548,318 | |
| Pakistan Government International Bond†(a) | | 8.25% | | | 4/15/2024 | | | 1,361 | | | | 1,520,060 | |
| Total | | | | | | | | | | | | 2,068,378 | |
| | | | | | | | | | | | | | |
| Panama 0.23% | | | | | | | | | | | | | |
| Panama Government International Bond(a) | | 3.87% | | | 7/23/2060 | | | 385 | | | | 415,222 | |
| | | | | | | | | | | | | | |
| Paraguay 1.06% | | | | | | | | | | | | | |
| Republic of Paraguay†(a) | | 4.70% | | | 3/27/2027 | | | 690 | | | | 760,965 | |
| Republic of Paraguay†(a) | | 5.40% | | | 3/30/2050 | | | 1,000 | | | | 1,157,185 | |
| Total | | | | | | | | | | | | 1,918,150 | |
| | | | | | | | | | | | | | |
| Peru 0.28% | | | | | | | | | | | | | |
| Republic of Peru(a) | | 2.844% | | | 6/20/2030 | | | 500 | | | | 517,174 | |
| | | | | | | | | | | | | | |
| Qatar 2.61% | | | | | | | | | | | | | |
| State of Qatar†(a) | | 3.375% | | | 3/14/2024 | | | 1,000 | | | | 1,048,025 | |
| State of Qatar†(a) | | 4.817% | | | 3/14/2049 | | | 584 | | | | 724,422 | |
| State of Qatar†(a) | | 3.25% | | | 6/2/2026 | | | 2,315 | | | | 2,441,607 | |
| State of Qatar†(a) | | 5.103% | | | 4/23/2048 | | | 411 | | | | 528,976 | |
| Total | | | | | | | | | | | | 4,743,030 | |
| 22 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Russia 1.33% | | | | | | | | | | | | | |
| Russian Federation†(a) | | 4.25% | | | 6/23/2027 | | $ | 600 | | | $ | 656,291 | |
| Russian Federation†(a) | | 5.25% | | | 6/23/2047 | | | 1,400 | | | | 1,755,803 | |
| Total | | | | | | | | | | | | 2,412,094 | |
| | | | | | | | | | | | | | |
| Saudi Arabia 2.38% | | | | | | | | | | | | | |
| Saudi International Bond†(a) | | 3.25% | | | 10/26/2026 | | | 961 | | | | 996,986 | |
| Saudi International Bond†(a) | | 3.625% | | | 3/4/2028 | | | 1,200 | | | | 1,269,268 | |
| Saudi International Bond†(a) | | 5.00% | | | 4/17/2049 | | | 1,723 | | | | 2,063,353 | |
| Total | | | | | | | | | | | | 4,329,607 | |
| | | | | | | | | | | | | | |
| Senegal 1.15% | | | | | | | | | | | | | |
| Republic of Senegal†(a) | | 6.25% | | | 7/30/2024 | | | 817 | | | | 906,737 | |
| Republic of Senegal†(a) | | 6.25% | | | 5/23/2033 | | | 1,128 | | | | 1,189,408 | |
| Total | | | | | | | | | | | | 2,096,145 | |
| | | | | | | | | | | | | | |
| South Africa 1.32% | | | | | | | | | | | | | |
| Republic of South Africa(a) | | 4.30% | | | 10/12/2028 | | | 1,946 | | | | 1,911,538 | |
| Republic of South Africa(a) | | 5.75% | | | 9/30/2049 | | | 500 | | | | 487,943 | |
| Total | | | | | | | | | | | | 2,399,481 | |
| | | | | | | | | | | | | | |
| Sri Lanka 2.31% | | | | | | | | | | | | | |
| Republic of Sri Lanka†(a) | | 7.85% | | | 3/14/2029 | | | 650 | | | | 661,242 | |
| Republic of Sri Lanka†(a) | | 5.75% | | | 4/18/2023 | | | 1,531 | | | | 1,514,135 | |
| Republic of Sri Lanka†(a) | | 5.875% | | | 7/25/2022 | | | 570 | | | | 571,524 | |
| Republic of Sri Lanka†(a) | | 6.25% | | | 10/4/2020 | | | 888 | | | | 902,204 | |
| Republic of Sri Lanka†(a) | | 7.55% | | | 3/28/2030 | | | 550 | | | | 547,114 | |
| Total | | | | | | | | | | | | 4,196,219 | |
| | | | | | | | | | | | | | |
| Turkey 3.67% | | | | | | | | | | | | | |
| Export Credit Bank of Turkey†(a) | | 4.25% | | | 9/18/2022 | | | 325 | | | | 318,818 | |
| Export Credit Bank of Turkey†(a) | | 5.375% | | | 2/8/2021 | | | 200 | | | | 203,450 | |
| Export Credit Bank of Turkey†(a) | | 8.25% | | | 1/24/2024 | | | 450 | | | | 490,478 | |
| Republic of Turkey(a) | | 3.25% | | | 3/23/2023 | | | 1,625 | | | | 1,563,616 | |
| Republic of Turkey(a) | | 4.25% | | | 4/14/2026 | | | 838 | | | | 783,834 | |
| Republic of Turkey(a) | | 5.625% | | | 3/30/2021 | | | 1,451 | | | | 1,496,545 | |
| Republic of Turkey(a) | | 5.75% | | | 5/11/2047 | | | 650 | | | | 577,593 | |
| Republic of Turkey(a) | | 7.00% | | | 6/5/2020 | | | 725 | | | | 739,375 | |
| Turkey Government International Bond(a) | | 6.625% | | | 2/17/2045 | | | 500 | | | | 493,780 | |
| Total | | | | | | | | | | | | 6,667,489 | |
| | See Notes to Financial Statements. | 23 |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Ukraine 3.12% | | | | | | | | | | | | | |
| Ukraine Government(a) | | Zero Coupon | | | 5/31/2040 | | $ | 425 | | | $ | 407,469 | |
| Ukraine Government†(c) | | 6.75% | | | 6/20/2026 | | EUR | 250 | | | | 315,585 | |
| Ukraine Government†(a) | | 7.375% | | | 9/25/2032 | | $ | 2,584 | | | | 2,762,857 | |
| Ukraine Government†(a) | | 7.75% | | | 9/1/2021 | | | 550 | | | | 583,172 | |
| Ukraine Government†(a) | | 8.994% | | | 2/1/2024 | | | 1,420 | | | | 1,602,811 | |
| Total | | | | | | | | | | | | 5,671,894 | |
| | | | | | | | | | | | | | |
| United Arab Emirates 0.32% | | | | | | | | | | | | | |
| Abu Dhabi Government International Bond†(a) | | 3.125% | | | 9/30/2049 | | | 600 | | | | 586,150 | |
| | | | | | | | | | | | | | |
| Uruguay 0.61% | | | | | | | | | | | | | |
| Republic of Uruguay(a) | | 4.975% | | | 4/20/2055 | | | 930 | | | | 1,099,014 | |
| | | | | | | | | | | | | | |
| Uzbekistan 0.59% | | | | | | | | | | | | | |
| Republic of Uzbekistan†(a) | | 4.75% | | | 2/20/2024 | | | 1,000 | | | | 1,063,498 | |
| | | | | | | | | | | | | | |
| Vietnam 0.20% | | | | | | | | | | | | | |
| Socialist Republic of Vietnam†(a) | | 4.80% | | | 11/19/2024 | | | 328 | | | | 357,882 | |
| Total Foreign Government Obligations(cost $103,237,202) | | | | | | | | | | 110,286,681 | |
| Total Long-Term Investments (cost $162,980,300) | | | | | | | | | | 174,356,203 | |
| | | | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS 2.34% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATION 0.54% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Egypt | | | | | | | | | | | | | |
Egypt Treasury Bills(c)
(cost $953,374) | | Zero Coupon | | | 3/24/2020 | | EGP | 16,100 | | | | 971,781 | |
| | | | | | | | | | | | | | |
| REPURCHASE AGREEMENT 1.80% | | | | | | | | | | | | | |
Repurchase Agreement dated 12/31/2019, 0.85% due 1/2/2020 with Fixed Income Clearing Corp. collateralized by $3,245,000 of U.S. Treasury Note at 2.75% due 8/15/2021; value: $3,337,492; proceeds: $3,270,208
(cost $3,270,054) | | | | | | | $ | 3,270 | | | | 3,270,054 | |
| Total Short-Term Investments (cost $4,223,428) | | | | | | | | | | 4,241,835 | |
| Total Investments in Securities 98.35% (cost $167,203,728) | | | | | | | | | | 178,598,038 | |
| Cash and Other Assets in Excess of Liabilities(d)1.65% | | | | | | | | | | | | 2,999,792 | |
| Net Assets 100.00% | | | | | | | | | | | $ | 181,597,830 | |
| 24 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS BOND FUNDDecember 31, 2019
| EGP | | Egyptian pound. |
| EUR | | Euro. |
| CMT | | Constant Maturity Rate. |
| | | |
| † | | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers. At December 31, 2019, the total value of Rule 144A securities was $130,837,084, which represents 72.05% of net assets. |
| # | | Variable rate security. The interest rate represents the rate in effect at December 31, 2019. |
| (a) | | Foreign security traded in U.S. dollars. |
| (b) | | Security is perpetual in nature and has no stated maturity. |
| (c) | | Investment in non-U.S. dollar denominated securities. |
| (d) | | Cash and Other Assets in Excess of Liabilities include net unrealized appreciation/depreciation on forward foreign currency exchange contracts, futures contracts and swaps as follows: |
Credit Default Swaps on Issuer – Sell Protection at December 31, 2019(1):
Referenced
Issuer | | Swap
Counterparty | | Fund
Receives
(Quarterly) | | Termination
Date | | Notional
Amount | | | Notional
Value | | | Payments
Upfront(2) | | | Unrealized
Appreciation(3) | | | Credit
Default
Swap
Agreements
Receivable at
Fair Value(4) | |
| Petroleos Mexicanos(5) | | Citibank | | 1.00% | | 6/20/2020 | | | $905,000 | | | | $908,153 | | | | $(1,702 | ) | | | $4,855 | | | | $3,153 | |
| (1) | | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities. |
| (2) | | Upfront payments received are presented net of amortization (See Note 2(n)). |
| (3) | | Total unrealized appreciation on Credit Default Swaps on Issuer amounted to $4,855. Total unrealized depreciation on Credit Default Swaps on Issuer amounted to $0. |
| (4) | | Includes upfront payments received/paid. |
| (5) | | Moody’s Credit Rating: Baa3. |
Open Forward Foreign Currency Exchange Contracts at December 31, 2019:
Forward
Foreign
Currency
Exchange
Contracts | | Transaction
Type | | Counterparty | | Expiration
Date | | Foreign
Currency | | U.S. $
Cost on
Origination
Date | | | U.S. $
Current
Value | | Unrealized
Depreciation | |
| euro | | Sell | | Morgan Stanley | | 2/14/2020 | | 67,000 | | $ | 74,703 | | | $ | 75,350 | | | $ | (647 | ) |
| euro | | Sell | | State Street Bank and Trust | | 2/14/2020 | | 2,067,000 | | | 2,289,805 | | | | 2,324,616 | | | | (34,811 | ) |
| Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | | | | | | | | $ | (35,458 | ) |
| | See Notes to Financial Statements. | 25 |
Schedule of Investments (concluded)
EMERGING MARKETS BOND FUNDDecember 31, 2019
Open Futures Contracts at December 31, 2019:
| Type | | Expiration | | Contracts | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Appreciation | |
| Euro-Bund | | March 2020 | | 9 | | Short | | EUR | (1,557,164 | ) | | EUR | (1,534,410 | ) | | $ | 25,523 | |
| U.S. 10-Year Ultra Treasury Note | | March 2020 | | 62 | | Short | | $ | (8,826,787 | ) | | $ | (8,723,594 | ) | | | 103,193 | |
| U.S. Ultra Treasury Bond | | March 2020 | | 19 | | Short | | | (3,556,556 | ) | | | (3,451,469 | ) | | | 105,087 | |
| Total Unrealized Appreciation on Open Futures Contracts | | | | | | | | | | $ | 233,803 | |
| | | | | | | | | | | | | | | | | | | |
| Type | | Expiration | | Contracts | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Depreciation | |
| Euro-Bobl | | March 2020 | | 2 | | Long | | EUR | 268,724 | | | EUR | 267,260 | | | $ | (1,642 | ) |
| U.S. 2-Year Treasury Note | | March 2020 | | 44 | | Long | | $ | 9,486,205 | | | $ | 9,482,000 | | | | (4,205 | ) |
| U.S. 5-Year Treasury Note | | March 2020 | | 17 | | Short | | | (2,012,080 | ) | | | (2,016,359 | ) | | | (4,279 | ) |
| U.S. Long Bond | | March 2020 | | 104 | | Long | | | 16,633,694 | | | | 16,214,250 | | | | (419,444 | ) |
| Total Unrealized Depreciation on Open Futures Contracts | | | | | | | | | | $ | (429,570 | ) |
The following is a summary of the inputs used as of December 31, 2019 in valuing the Fund’s investments carried at fair value(1):
| Investment Type(2) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | – | | | $ | 64,069,522 | | | $ | – | | | $ | 64,069,522 | |
| Foreign Government Obligations | | | – | | | | 110,286,681 | | | | – | | | | 110,286,681 | |
| Short-Term Investments | | | | | | | | | | | | | | | | |
| Foreign Government Obligation | | | – | | | | 971,781 | | | | – | | | | 971,781 | |
| Repurchase Agreement | | | – | | | | 3,270,054 | | | | – | | | | 3,270,054 | |
| Total | | $ | – | | | $ | 178,598,038 | | | $ | – | | | $ | 178,598,038 | |
| Other Financial Instruments | | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | | | | | | | | | | | | | | | | |
| Assets | | $ | – | | | $ | 3,153 | | | $ | – | | | $ | 3,153 | |
| Liabilities | | | – | | | | – | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | |
| Assets | | | – | | | | – | | | | – | | | | – | |
| Liabilities | | | – | | | | (35,458 | ) | | | – | | | | (35,458 | ) |
| Futures Contracts | | | | | | | | | | | | | | | | |
| Assets | | | 233,803 | | | | – | | | | – | | | | 233,803 | |
| Liabilities | | | (429,570 | ) | | | – | | | | – | | | | (429,570 | ) |
| Total | | $ | (195,767 | ) | | $ | (32,305 | ) | | $ | – | | | $ | (228,072 | ) |
| (1) | | Refer to Note 2(q) 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. |
| 26 | See Notes to Financial Statements. |
Schedule of Investments
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | | | | | Shares
(000) | | | Fair
Value | |
| LONG-TERM INVESTMENTS 94.27% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| COMMON STOCK 0.04% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Metals & Minerals: Miscellaneous | | | | | | | | | | | | |
Vedanta Ltd. ADR
(cost $57,261) | | | | | | | 3 | | | $ | 24,345 | |
| | | | | | | | | | | | | |
| | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | | | |
| | | | | | | | | | | | |
| CONVERTIBLE BONDS 0.47% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Technology 0.30% | | | | | | | | | | | | |
| Trip.com Group Ltd. (China)(a) | | 1.00% | | 7/1/2020 | | $ | 95 | | | | 93,707 | |
| Weibo Corp. (China)(a) | | 1.25% | | 11/15/2022 | | | 98 | | | | 92,182 | |
| Total | | | | | | | | | | | 185,889 | |
| | | | | | | | | | | | | |
| Telecommunications 0.17% | | | | | | | | | | | | |
| GDS Holdings Ltd. (China)(a) | | 2.00% | | 6/1/2025 | | | 90 | | | | 109,225 | |
| Total Convertible Bonds (cost $282,979) | | | | | | | | | | | 295,114 | |
| | | | | | | | | | | | | |
| CORPORATE BONDS 89.27% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Air Transportation 0.52% | | | | | | | | | | | | |
| Latam Finance Ltd.† | | 7.00% | | 3/1/2026 | | | 200 | | | | 216,869 | |
| Transportes Aereos Portugueses SA†(b) | | 5.625% | | 12/2/2024 | | EUR | 100 | | | | 112,030 | |
| Total | | | | | | | | | | | 328,899 | |
| | | | | | | | | | | | | |
| Auto Parts: Original Equipment 0.33% | | | | | | | | | | | | |
| Nemak SAB de CV (Mexico)†(a) | | 4.75% | | 1/23/2025 | | $ | 200 | | | | 207,250 | |
| | | | | | | | | | | | | |
| Banks: Regional 16.45% | | | | | | | | | | | | |
| ADCB Finance Cayman Ltd.† | | 4.00% | | 3/29/2023 | | | 200 | | | | 209,030 | |
| Akbank T.A.S. (Turkey)†(a) | | 5.00% | | 10/24/2022 | | | 650 | | | | 655,284 | |
| Alfa Bank AO Via Alfa Bond Issuance plc (Ireland)(a) | 6.95%
(5 Yr Treasury CMT + 4.57% | )# | – | (c) | | 250 | | | | 245,313 | |
| Alfa Bank AO Via Alfa Bond Issuance plc (Ireland)†(a) | | 7.75% | | 4/28/2021 | | | 200 | | | | 212,764 | |
| Banco BBVA Peru SA (Peru)(a) | | 5.00% | | 8/26/2022 | | | 200 | | | | 212,564 | |
| Banco de Bogota SA (Colombia)†(a) | | 4.375% | | 8/3/2027 | | | 200 | | | | 212,322 | |
| Banco de Credito e Inversiones SA (Chile)†(a) | | 3.50% | | 10/12/2027 | | | 200 | | | | 204,565 | |
| Banco do Brasil SA† | | 4.625% | | 1/15/2025 | | | 400 | | | | 418,304 | |
| Banco do Brasil SA† | 6.25%
(10 Yr Treasury CMT + 4 40% | )# | – | (c) | | 400 | | | | 406,604 | |
| Banco Internacional del Peru SAA Interbank (Peru)†(a) | | 3.25% | | 10/4/2026 | | | 230 | | | | 230,548 | |
| | See Notes to Financial Statements. | 27 |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Banks: Regional (continued) | | | | | | | | | | | | |
| Banco Mercantil del Norte SA† | 7.625%
(10 Yr Treasury CMT + 5.35% | )# | – | (c) | $ | 200 | | | $ | 214,107 | |
| Banco Votorantim SA (Brazil)†(a) | | 4.50% | | 9/24/2024 | | | 200 | | | | 206,002 | |
| Bancolombia SA (Colombia)(a) | 4.625%
(5 Yr Treasury CMT + 2.94% | )# | 12/18/2029 | | | 200 | | | | 203,250 | |
| Bancolombia SA (Colombia)(a) | | 5.95% | | 6/3/2021 | | | 150 | | | | 157,935 | |
| Bangkok Bank plc (Hong Kong)†(a) | 3.733%
(5 Yr Treasury CMT + 1.90% | )# | 9/25/2034 | | | 200 | | | | 202,758 | |
| Bangkok Bank plc (Hong Kong)†(a) | | 5.00% | | 10/3/2023 | | | 200 | | | | 217,396 | |
| Banistmo SA (Panama)†(a) | | 3.65% | | 9/19/2022 | | | 400 | | | | 405,129 | |
| Bank of China Hong Kong Ltd. (Hong Kong)†(a) | 5.90%
(5 Yr Treasury CMT + 3.04% | )# | – | (c) | | 400 | | | | 433,357 | |
| Bank of China Ltd. (China)†(a) | | 5.00% | | 11/13/2024 | | | 400 | | | | 437,213 | |
| BBVA Bancomer SA† | | 4.375% | | 4/10/2024 | | | 350 | | | | 373,336 | |
| BBVA Bancomer SA† | 5.125%
(10 Yr Treasury CMT + 5.65% | )# | 1/18/2033 | | | 450 | | | | 455,078 | |
| Global Bank Corp. (Panama)†(a) | 5.25%
(3 Mo. LIBOR + 3.30% | )# | 4/16/2029 | | | 340 | | | | 365,925 | |
| Itau Unibanco Holding SA† | 4.50%
(5 Yr Treasury CMT + 2.82% | )# | 11/21/2029 | | | 250 | | | | 256,252 | |
| NBK SPC Ltd. (United Arab Emirates)†(a) | | 2.75% | | 5/30/2022 | | | 200 | | | | 201,848 | |
| NBK Tier 1 Financing 2 Ltd. (Armenia)†(a) | 4.50%
(6 Yr Swap rate + 2.83% | )# | – | (c) | | 300 | | | | 300,000 | |
| QNB Finansbank AS (Turkey)†(a) | | 4.875% | | 5/19/2022 | | | 200 | | | | 201,373 | |
| QNB Finansbank AS (Turkey)†(a) | | 6.875% | | 9/7/2024 | | | 400 | | | | 426,950 | |
| Sberbank of Russia Via SB Capital SA (Luxembourg)†(a) | | 5.25% | | 5/23/2023 | | | 450 | | | �� | 482,971 | |
| Sberbank of Russia Via SB Capital SA (Luxembourg)†(a) | | 6.125% | | 2/7/2022 | | | 200 | | | | 214,252 | |
| Turkiye Garanti Bankasi AS (Turkey)†(a) | | 5.875% | | 3/16/2023 | | | 650 | | | | 669,894 | |
| Turkiye Vakiflar Bankasi TAO (Turkey)†(a) | | 6.00% | | 11/1/2022 | | | 200 | | | | 197,150 | |
| Turkiye Vakiflar Bankasi TAO (Turkey)†(a) | 6.875%
(5 Yr Swap rate + 5.44% | )# | 2/3/2025 | | | 300 | | | | 299,717 | |
| Woori Bank (South Korea)†(a) | | 4.75% | | 4/30/2024 | | | 400 | | | | 429,454 | |
| Total | | | | | | | | | | | 10,358,645 | |
| | | | | | | | | | | | | |
| Building Materials 0.33% | | | | | | | | | | | | |
| Cemex SAB de CV (Mexico)†(a) | | 5.45% | | 11/19/2029 | | | 200 | | | | 209,250 | |
| | | | | | | | | | | | | |
| Business Services 1.90% | | | | | | | | | | | | |
| Adani Ports & Special Economic Zone Ltd. (India)†(a) | | 4.375% | | 7/3/2029 | | | 400 | | | | 414,886 | |
| Autopistas del Sol SA (Costa Rica)†(a) | | 7.375% | | 12/30/2030 | | | 183 | | | | 185,877 | |
| 28 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Business Services (continued) | | | | | | | | | | | | |
| DP World plc (United Arab Emirates)†(a) | | 4.70% | | 9/30/2049 | | $ | 200 | | | $ | 202,000 | |
| DP World plc (United Arab Emirates)†(a) | | 6.85% | | 7/2/2037 | | | 300 | | | | 395,791 | |
| Total | | | | | | | | | | | 1,198,554 | |
| | | | | | | | | | | | | |
| Chemicals 3.70% | | | | | | | | | | | | |
| CNAC HK Finbridge Co. Ltd. (Hong Kong)(a) | | 3.50% | | 7/19/2022 | | | 400 | | | | 406,846 | |
| CNAC HK Finbridge Co. Ltd. (Hong Kong)(a) | | 4.125% | | 7/19/2027 | | | 200 | | | | 210,170 | |
| Equate Petrochemical BV (Netherlands)†(a) | | 3.00% | | 3/3/2022 | | | 200 | | | | 201,293 | |
| OCP SA (Morocco)†(a) | | 6.875% | | 4/25/2044 | | | 200 | | | | 255,029 | |
| Orbia Advance Corp. SAB de CV (Mexico)†(a) | | 5.50% | | 1/15/2048 | | | 200 | | | | 204,939 | |
| Phosagro OAO Via Phosagro Bond Funding DAC (Ireland)†(a) | | 3.949% | | 4/24/2023 | | | 200 | | | | 206,410 | |
| SABIC Capital II BV (Netherlands)†(a) | | 4.00% | | 10/10/2023 | | | 200 | | | | 210,969 | |
| SASOL Financing USA LLC | | 5.875% | | 3/27/2024 | | | 200 | | | | 216,529 | |
| Yingde Gases Investment Ltd. (Hong Kong)†(a) | | 6.25% | | 1/19/2023 | | | 400 | | | | 414,238 | |
| Total | | | | | | | | | | | 2,326,423 | |
| | | | | | | | | | | | | |
| Coal 0.31% | | | | | | | | | | | | |
| Indika Energy Capital III Pte Ltd. (Singapore)†(a) | | 5.875% | | 11/9/2024 | | | 200 | | | | 192,787 | |
| | | | | | | | | | | | | |
| Computer Hardware 0.33% | | | | | | | | | | | | |
| HT Global IT Solutions Holdings Ltd. (Mauritius)†(a) | | 7.00% | | 7/14/2021 | | | 200 | | | | 205,949 | |
| | | | | | | | | | | | | |
| Computer Software 0.32% | | | | | | | | | | | | |
| Marble II Pte Ltd. (Singapore)†(a) | | 5.30% | | 6/20/2022 | | | 200 | | | | 202,799 | |
| | | | | | | | | | | | | |
| Containers 0.69% | | | | | | | | | | | | |
| Klabin Austria GmbH (Austria)†(a) | | 5.75% | | 4/3/2029 | | | 200 | | | | 213,372 | |
| Klabin Austria GmbH (Austria)†(a) | | 7.00% | | 4/3/2049 | | | 200 | | | | 219,100 | |
| Total | | | | | | | | | | | 432,472 | |
| | | | | | | | | | | | | |
| Diversified 0.98% | | | | | | | | | | | | |
| CK Hutchison International 17 Ltd.(Cayman Islands)†(a) | | 3.50% | | 4/5/2027 | | | 200 | | | | 207,498 | |
| KOC Holding AS (Turkey)†(a) | | 5.25% | | 3/15/2023 | | | 400 | | | | 410,456 | |
| Total | | | | | | | | | | | 617,954 | |
| | | | | | | | | | | | | |
| Drugs 1.31% | | | | | | | | | | | | |
| Teva Pharmaceutical Finance Co. BV (Curacao)(a) | | 3.65% | | 11/10/2021 | | | 200 | | | | 196,200 | |
| Teva Pharmaceutical Finance Netherlands III BV (Netherlands)(a) | | 2.80% | | 7/21/2023 | | | 250 | | | | 232,396 | |
| Teva Pharmaceutical Finance Netherlands III BV (Netherlands)(a) | | 3.15% | | 10/1/2026 | | | 170 | | | | 141,954 | |
| | See Notes to Financial Statements. | 29 |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | | Fair
Value | |
| Drugs (continued) | | | | | | | | | | | | |
| Teva Pharmaceutical Finance Netherlands III BV(Netherlands)(a) | | 6.00% | | 4/15/2024 | | $ | 250 | | | $ | 253,522 | |
| Total | | | | | | | | | | | 824,072 | |
| | | | | | | | | | | | | |
| Electric: Integrated 0.66% | | | | | | | | | | | | |
| Empresas Publicas de Medellin ESP (Colombia)†(a) | | 4.25% | | 7/18/2029 | | | 400 | | | | 416,821 | |
| | | | | | | | | | | | | |
| Electric: Power 9.01% | | | | | | | | | | | | |
| Abu Dhabi National Energy Co. PJSC (Armenia)†(a) | | 4.00% | | 10/3/2049 | | | 200 | | | | 207,830 | |
| Abu Dhabi National Energy Co. PJSC (United Arab Emirates)†(a) | | 3.625% | | 1/12/2023 | | | 200 | | | | 205,795 | |
| Abu Dhabi National Energy Co. PJSC (United Arab Emirates)†(a) | | 4.875% | | 4/23/2030 | | | 200 | | | | 228,944 | |
| Acwa Power Management & Investments One Ltd. (Saudi Arabia)†(a) | | 5.95% | | 12/15/2039 | | | 200 | | | | 213,900 | |
| Adani Transmission Ltd. (India)†(a) | | 4.00% | | 8/3/2026 | | | 400 | | | | 410,979 | |
| Celeo Redes Operacion Chile SA (Chile)†(a) | | 5.20% | | 6/22/2047 | | | 391 | | | | 429,685 | |
| Cemig Geracao e Transmissao SA (Brazil)†(a) | | 9.25% | | 12/5/2024 | | | 248 | | | | 285,799 | |
| Emirates Semb Corp., Water & Power Co. PJSC (United Arab Emirates)†(a) | | 4.45% | | 8/1/2035 | | | 200 | | | | 219,404 | |
| Energuate Trust (Guatemala)†(a) | | 5.875% | | 5/3/2027 | | | 200 | | | | 207,069 | |
| Engie Energia Chile SA (Chile)†(a) | | 4.50% | | 1/29/2025 | | | 400 | | | | 424,908 | |
| Eskom Holdings SOC Ltd. (South Africa)†(a) | | 5.75% | | 1/26/2021 | | | 400 | | | | 401,750 | |
| Greenko Investment Co. (India)†(a) | | 4.875% | | 8/16/2023 | | | 200 | | | | 199,140 | |
| Israel Electric Corp. Ltd. (Israel)†(a) | | 4.25% | | 8/14/2028 | | | 250 | | | | 272,894 | |
| Listrindo Capital BV (Netherlands)†(a) | | 4.95% | | 9/14/2026 | | | 400 | | | | 406,706 | |
| Minejesa Capital BV (Netherlands)†(a) | | 4.625% | | 8/10/2030 | | | 200 | | | | 207,488 | |
| Mong Duong Finance Holdings BV (Vietnam)†(a) | | 5.125% | | 5/7/2029 | | | 286 | | | | 293,251 | |
| Pampa Energia SA (Argentina)†(a) | | 7.50% | | 1/24/2027 | | | 200 | | | | 171,106 | |
| Pampa Energia SA (Argentina)†(a) | | 9.125% | | 4/15/2029 | | | 250 | | | | 216,337 | |
| Saudi Electricity Global Sukuk Co. 3(Saudi Arabia)†(a) | | 5.50% | | 4/8/2044 | | | 400 | | | | 481,432 | |
| Terraform Global Operating LLC† | | 6.125% | | 3/1/2026 | | | 180 | | | | 187,712 | |
| Total | | | | | | | | | | | 5,672,129 | |
| | | | | | | | | | | | | |
| Energy Equipment & Services 0.52% | | | | | | | | | | | | |
| Greenko Mauritius Ltd. (India)†(a) | | 6.25% | | 2/21/2023 | | | 200 | | | | 205,859 | |
| YPF Energia Electrica SA (Argentina)†(a) | | 10.00% | | 7/25/2026 | | | 142 | | | | 123,913 | |
| Total | | | | | | | | | | | 329,772 | |
| 30 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Engineering & Contracting Services 1.37% | | | | | | | | | | | | |
| Aeropuerto Internacional de Tocumen SA (Panama)†(a) | | 6.00% | | 11/18/2048 | | $ | 200 | | | $ | 248,439 | |
| China Railway Resources Huitung Ltd. (Hong Kong)(a) | | 3.85% | | 2/5/2023 | | | 200 | | | | 207,173 | |
| Delhi International Airport Ltd. (India)†(a) | | 6.125% | | 10/31/2026 | | | 200 | | | | 214,222 | |
| GMR Hyderabad International Airport Ltd. (India)†(a) | | 4.25% | | 10/27/2027 | | | 200 | | | | 189,769 | |
| Total | | | | | | | | | | | 859,603 | |
| | | | | | | | | | | | | |
| Financial Services 2.66% | | | | | | | | | | | | |
| Banco BTG Pactual SA† | | 4.50% | | 1/10/2025 | | | 200 | | | | 203,000 | |
| BOC Aviation Ltd. (Singapore)†(a) | | 3.00% | | 9/11/2029 | | | 200 | | | | 196,651 | |
| China Cinda Finance 2017 I Ltd. | | 4.10% | | 3/9/2024 | | | 200 | | | | 209,525 | |
| China Cinda Finance 2017 I Ltd. | | 4.40% | | 3/9/2027 | | | 200 | | | | 216,655 | |
| Huarong Finance 2017 Co. Ltd. (Hong Kong)(a) | 4.50%
(5 Yr Treasury CMT + 7.77% | )# | – | (c) | | 200 | | | | 203,500 | |
| Intercorp Peru Ltd. (Peru)†(a) | | 3.875% | | 8/15/2029 | | | 200 | | | | 198,572 | |
| Power Finance Corp. Ltd. (India)†(a) | | 6.15% | | 12/6/2028 | | | 200 | | | | 230,905 | |
| SURA Asset Management SA (Colombia)†(a) | | 4.375% | | 4/11/2027 | | | 200 | | | | 214,571 | |
| Total | | | | | | | | | | | 1,673,379 | |
| | | | | | | | | | | | | |
| Food 3.60% | | | | | | | | | | | | |
| Arcor SAIC (Argentina)†(a) | | 6.00% | | 7/6/2023 | | | 185 | | | | 179,128 | |
| BRF GmbH (Austria)†(a) | | 4.35% | | 9/29/2026 | | | 400 | | | | 413,244 | |
| BRF SA (Brazil)†(a) | | 4.875% | | 1/24/2030 | | | 200 | | | | 206,552 | |
| Cencosud SA (Chile)†(a) | | 4.375% | | 7/17/2027 | | | 200 | | | | 197,316 | |
| Cosan Ltd. (Brazil)†(a) | | 5.50% | | 9/20/2029 | | | 200 | | | | 208,650 | |
| Grupo KUO SAB De CV (Mexico)†(a) | | 5.75% | | 7/7/2027 | | | 200 | | | | 209,571 | |
| Minerva Luxembourg SA (Luxembourg)†(a) | | 5.875% | | 1/19/2028 | | | 400 | | | | 420,744 | |
| NBM US Holdings, Inc.† | | 7.00% | | 5/14/2026 | | | 400 | | | | 434,153 | |
| Total | | | | | | | | | | | 2,269,358 | |
| | | | | | | | | | | | | |
| Health Care Services 0.33% | | | | | | | | | | | | |
| Rede D’or Finance Sarl (Luxembourg)†(a) | | 4.95% | | 1/17/2028 | | | 200 | | | | 207,372 | |
| | | | | | | | | | | | | |
| Household Equipment/Products 0.66% | | | | | | | | | | | | |
| Turkiye Sise ve Cam Fabrikalari AS (Turkey)†(a) | | 4.25% | | 5/9/2020 | | | 200 | | | | 200,597 | |
| Turkiye Sise ve Cam Fabrikalari AS (Turkey)†(a) | | 6.95% | | 3/14/2026 | | | 200 | | | | 211,880 | |
| Total | | | | | | | | | | | 412,477 | |
| | | | | | | | | | | | | |
| Investment Management Companies 1.68% | | | | | | | | | | | | |
| Grupo de Inversiones Suramericana SA (Colombia)†(a) | | 5.50% | | 4/29/2026 | | | 200 | | | | 223,571 | |
| Huarong Finance II Co. Ltd. (Hong Kong)(a) | | 4.625% | | 6/3/2026 | | | 400 | | | | 425,375 | |
| | See Notes to Financial Statements. | 31 |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Investment Management Companies (continued) | | | | | | | | | | | | |
| MDGH - GMTN BV (Netherlands)†(a) | | 2.875% | | 11/7/2029 | | $ | 200 | | | $ | 202,142 | |
| MDGH - GMTN BV (Netherlands)†(a) | | 3.70% | | 11/7/2049 | | | 200 | | | | 208,415 | |
| Total | | | | | | | | | | | 1,059,503 | |
| |
| Lodging 1.09% | | | | | | | | | | | | |
| Melco Resorts Finance Ltd. (Hong Kong)†(a) | | 5.375% | | 12/4/2029 | | | 200 | | | | 205,611 | |
| MGM China Holdings Ltd. (Macao)†(a) | | 5.875% | | 5/15/2026 | | | 450 | | | | 477,843 | |
| Total | | | | | | | | | | | 683,454 | |
| |
| Machinery: Agricultural 3.01% | | | | | | | | | | | | |
| JBS Investments II GmbH (Austria)†(a) | | 5.75% | | 1/15/2028 | | | 400 | | | | 422,540 | |
| JBS Investments II GmbH (Austria)†(a) | | 7.00% | | 1/15/2026 | | | 200 | | | | 217,930 | |
| Kernel Holding SA (Ukraine)†(a) | | 8.75% | | 1/31/2022 | | | 400 | | | | 432,582 | |
| MHP Lux SA (Luxembourg)†(a) | | 6.25% | | 9/19/2029 | | | 400 | | | | 393,740 | |
| MHP Lux SA (Luxembourg)†(a) | | 6.95% | | 4/3/2026 | | | 200 | | | | 210,212 | |
| MHP SE (Ukraine)†(a) | | 7.75% | | 5/10/2024 | | | 200 | | | | 216,605 | |
| Total | | | | | | | | | | | 1,893,609 | |
| |
| Media 1.34% | | | | | | | | | | | | |
| Altice Luxembourg SA (Luxembourg)†(a) | | 10.50% | | 5/15/2027 | | | 200 | | | | 228,380 | |
| Cable Onda SA (Panama)†(a) | | 4.50% | | 1/30/2030 | | | 200 | | | | 210,970 | |
| Grupo Televisa SAB (Mexico)(a) | | 6.625% | | 1/15/2040 | | | 132 | | | | 164,937 | |
| Summer BidCo BV†(b) | | 9.00% | | 11/15/2025 | | EUR | 200 | | | | 240,309 | |
| Total | | | | | | | | | | | 844,596 | |
| |
| Metals & Minerals: Miscellaneous 5.37% | | | | | | | | | | | | |
| AngloGold Ashanti Holdings plc (United Kingdom)(a) | | 6.50% | | 4/15/2040 | | $ | 150 | | | | 169,851 | |
| Barminco Finance Pty Ltd. (Australia)†(a) | | 6.625% | | 5/15/2022 | | | 66 | | | | 67,848 | |
| Chinalco Capital Holdings Ltd. | | 4.00% | | 8/25/2021 | | | 200 | | | | 202,095 | |
| First Quantum Minerals Ltd. (Canada)†(a) | | 7.00% | | 2/15/2021 | | | 132 | | | | 132,578 | |
| First Quantum Minerals Ltd. (Canada)†(a) | | 7.25% | | 5/15/2022 | | | 200 | | | | 201,296 | |
| First Quantum Minerals Ltd. (Canada)†(a) | | 7.50% | | 4/1/2025 | | | 200 | | | | 204,917 | |
| Fresnillo plc (Mexico)†(a) | | 5.50% | | 11/13/2023 | | | 200 | | | | 217,335 | |
| Industrias Penoles SAB de CV (Mexico)†(a) | | 5.65% | | 9/12/2049 | | | 400 | | | | 427,806 | |
| Minera Mexico SA de CV (Mexico)†(a) | | 4.50% | | 1/26/2050 | | | 200 | | | | 204,187 | |
| MMC Norilsk Nickel OJSC via MMC Finance DAC (Ireland)†(a) | | 4.10% | | 4/11/2023 | | | 400 | | | | 415,080 | |
| Nexa Resources SA (Brazil)†(a) | | 5.375% | | 5/4/2027 | | | 200 | | | | 214,372 | |
| Press Metal Labuan Ltd. (Malaysia)(a) | | 4.80% | | 10/30/2022 | | | 200 | | | | 197,401 | |
| Southern Copper Corp. (Peru)(a) | | 5.875% | | 4/23/2045 | | | 240 | | | | 300,878 | |
| 32 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Metals & Minerals: Miscellaneous (continued) | | | | | | | | | | | | |
| Vedanta Resources Finance II plc(United Kingdom)†(a) | | 9.25% | | 4/23/2026 | | $ | 200 | | | $ | 198,967 | |
| Vedanta Resources Ltd. (India)†(a) | | 6.125% | | 8/9/2024 | | | 250 | | | | 228,278 | |
| Total | | | | | | | | | | | 3,382,889 | |
| | | | | | | | | | | | | |
| Natural Gas 0.95% | | | | | | | | | | | | |
| Gas Natural de Lima y Callao SA (Peru)†(a) | | 4.375% | | 4/1/2023 | | | 400 | | | | 416,670 | |
| Nakilat, Inc. (Qatar)†(a) | | 6.267% | | 12/31/2033 | | | 151 | | | | 180,944 | |
| Total | | | | | | | | | | | 597,614 | |
| | | | | | | | | | | | | |
| Oil 10.54% | | | | | | | | | | | | |
| CNOOC Finance 2015 USA LLC | | 3.50% | | 5/5/2025 | | | 400 | | | | 418,342 | |
| Dolphin Energy Ltd. LLC (United Arab Emirates)†(a) | | 5.50% | | 12/15/2021 | | | 200 | | | | 211,819 | |
| Ecopetrol SA (Colombia)(a) | | 4.125% | | 1/16/2025 | | | 425 | | | | 447,493 | |
| Ecopetrol SA (Colombia)(a) | | 5.875% | | 5/28/2045 | | | 303 | | | | 358,202 | |
| Gazprom PJSC Via Gaz Capital SA (Luxembourg)†(a) | | 4.95% | | 2/6/2028 | | | 600 | | | | 670,301 | |
| Hunt Oil Co. of Peru LLC Sucursal Del Peru (Peru)†(a) | | 6.375% | | 6/1/2028 | | | 200 | | | | 220,620 | |
| KazMunayGas National Co. JSC (Kazakhstan)†(a) | | 4.75% | | 4/19/2027 | | | 200 | | | | 220,152 | |
| Lukoil International Finance BV (Netherlands)†(a) | | 4.75% | | 11/2/2026 | | | 200 | | | | 221,987 | |
| Medco Platinum Road Pte Ltd. (Singapore)†(a) | | 6.75% | | 1/30/2025 | | | 250 | | | | 254,170 | |
| Petrobras Global Finance BV (Netherlands)†(a) | | 5.093% | | 1/15/2030 | | | 453 | | | | 485,960 | |
| Petrobras Global Finance BV (Netherlands)(a) | | 6.90% | | 3/19/2049 | | | 131 | | | | 153,896 | |
| Petrobras Global Finance BV (Netherlands)(a) | | 7.25% | | 3/17/2044 | | | 340 | | | | 413,588 | |
| Petroleos Mexicanos (Mexico)†(a) | | 6.49% | | 1/23/2027 | | | 47 | | | | 50,037 | |
| PT Saka Energi Indonesia (Indonesia)†(a) | | 4.45% | | 5/5/2024 | | | 200 | | | | 203,428 | |
| PTTEP Treasury Center Co. Ltd. (Thailand)†(a) | | 3.903% | | 12/6/2059 | | | 200 | | | | 199,674 | |
| Saudi Arabian Oil Co. (Saudi Arabia)†(a) | | 4.375% | | 4/16/2049 | | | 400 | | | | 436,744 | |
| Tecpetrol SA (Argentina)†(a) | | 4.875% | | 12/12/2022 | | | 200 | | | | 203,654 | |
| Tengizchevroil Finance Co. International Ltd.(Kazakhstan)†(a) | | 4.00% | | 8/15/2026 | | | 400 | | | | 420,346 | |
| Thaioil Treasury Center Co. Ltd. (Thailand)†(a) | | 3.50% | | 10/17/2049 | | | 200 | | | | 189,828 | |
| Tupras Turkiye Petrol Rafinerileri AS (Turkey)†(a) | | 4.50% | | 10/18/2024 | | | 200 | | | | 195,810 | |
| YPF SA (Argentina)†(a) | | 6.95% | | 7/21/2027 | | | 740 | | | | 660,707 | |
| Total | | | | | | | | | | | 6,636,758 | |
| | | | | | | | | | | | | |
| Oil: Crude Producers 2.22% | | | | | | | | | | | | |
| Abu Dhabi Crude Oil Pipeline LLC(United Arab Emirates)†(a) | | 4.60% | | 11/2/2047 | | | 400 | | | | 463,250 | |
| AI Candelaria Spain SLU (Spain)†(a) | | 7.50% | | 12/15/2028 | | | 250 | | | | 281,024 | |
| GNL Quintero SA (Chile)†(a) | | 4.634% | | 7/31/2029 | | | 200 | | | | 212,822 | |
| | See Notes to Financial Statements. | 33 |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Oil: Crude Producers (continued) | | | | | | | | | | | | |
| Transportadora de Gas del Peru SA (Peru)†(a) | | 4.25% | | 4/30/2028 | | $ | 200 | | | $ | 214,322 | |
| Transportadora de Gas Internacional SA ESP (Colombia)†(a) | | 5.55% | | 11/1/2028 | | | 200 | | | | 229,321 | |
| Total | | | | | | | | | | | 1,400,739 | |
| | | | | | | | | | | | | |
| Paper & Forest Products 0.47% | | | | | | | | | | | | |
| Suzano Austria GmbH (Brazil)†(a) | | 7.00% | | 3/16/2047 | | | 250 | | | | 294,534 | |
| | | | | | | | | | | | | |
| Real Estate Investment Trusts 6.84% | | | | | | | | | | | | |
| China Evergrande Group (China)(a) | | 10.00% | | 4/11/2023 | | | 600 | | | | 569,930 | |
| Country Garden Holdings Co. Ltd. (China)(a) | | 4.75% | | 1/17/2023 | | | 400 | | | | 403,952 | |
| Country Garden Holdings Co. Ltd. (China)(a) | | 5.125% | | 1/17/2025 | | | 200 | | | | 202,434 | |
| IRSA Propiedades Comerciales SA (Argentina)†(a) | | 8.75% | | 3/23/2023 | | | 100 | | | | 89,325 | |
| Kaisa Group Holdings Ltd. (China)(a) | | 9.375% | | 6/30/2024 | | | 400 | | | | 381,412 | |
| Kaisa Group Holdings Ltd. (China)(a) | | 11.25% | | 4/9/2022 | | | 200 | | | | 208,995 | |
| Longfor Group Holdings Ltd. (Cayman Islands)(a) | | 4.50% | | 1/16/2028 | | | 200 | | | | 208,022 | |
| MAF Sukuk Ltd. | | 4.50% | | 11/3/2025 | | | 200 | | | | 214,035 | |
| Ronshine China Holdings Ltd. (China)(a) | | 8.75% | | 10/25/2022 | | | 400 | | | | 417,982 | |
| Shimao Property Holdings Ltd. (Hong Kong)(a) | | 4.75% | | 7/3/2022 | | | 200 | | | | 204,740 | |
| Sunac China Holdings Ltd. (China)(a) | | 7.875% | | 2/15/2022 | | | 200 | | | | 207,998 | |
| Sunac China Holdings Ltd. (China)(a) | | 8.35% | | 4/19/2023 | | | 200 | | | | 213,222 | |
| Swire Properties MTN Financing Ltd. (Hong Kong)(a) | | 3.625% | | 1/13/2026 | | | 200 | | | | 207,696 | |
| Theta Capital Pte Ltd. (Singapore)(a) | | 6.75% | | 10/31/2026 | | | 400 | | | | 359,266 | |
| Theta Capital Pte Ltd. (Singapore)(a) | | 7.00% | | 4/11/2022 | | | 200 | | | | 200,957 | |
| Trust F/1401 (Mexico)†(a) | | 6.39% | | 1/15/2050 | | | 200 | | | | 215,689 | |
| Total | | | | | | | | | | | 4,305,655 | |
| | | | | | | | | | | | | |
| Retail 0.38% | | | | | | | | | | | | |
| Arcos Dorados Holdings, Inc. (Uruguay)†(a) | | 5.875% | | 4/4/2027 | | | 220 | | | | 236,851 | |
| | | | | | | | | | | | | |
| Steel 1.92% | | | | | | | | | | | | |
| CSN Resources SA (Brazil)†(a) | | 7.625% | | 2/13/2023 | | | 400 | | | | 427,238 | |
| CSN Resources SA (Brazil)†(a) | | 7.625% | | 4/17/2026 | | | 200 | | | | 213,369 | |
| GUSAP III LP† | | 4.25% | | 1/21/2030 | | | 300 | | | | 305,250 | |
| Novolipetsk Steel via Steel Funding DAC (Ireland)†(a) | | 4.00% | | 9/21/2024 | | | 250 | | | | 263,108 | |
| Total | | | | | | | | | | | 1,208,965 | |
| | | | | | | | | | | | | |
| Technology 2.33% | | | | | | | | | | | | |
| Alibaba Group Holding Ltd. (China)(a) | | 3.60% | | 11/28/2024 | | | 400 | | | | 421,223 | |
| Myriad International Holdings BV (Netherlands)†(a) | | 4.85% | | 7/6/2027 | | | 200 | | | | 218,562 | |
| Tencent Holdings Ltd. (China)†(a) | | 3.80% | | 2/11/2025 | | | 400 | | | | 421,996 | |
| 34 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Technology (continued) | | | | | | | | | | | | |
| Weibo Corp. (China)(a) | | 3.50% | | 7/5/2024 | | $ | 400 | | | $ | 407,228 | |
| Total | | | | | | | | | | | 1,469,009 | |
| | | | | | | | | | | | | |
| Telecommunications 4.38% | | | | | | | | | | | | |
| America Movil SAB de CV (Mexico)(a) | | 4.375% | | 4/22/2049 | | | 200 | | | | 230,772 | |
| Bharti Airtel Ltd. (India)†(a) | | 4.375% | | 6/10/2025 | | | 200 | | | | 203,968 | |
| Emirates Telecommunications Group Co. PJSC (United Arab Emirates)(a) | | 3.50% | | 6/18/2024 | | | 200 | | | | 209,598 | |
| Metropolitan Light Co. Ltd. (Hong Kong)†(a) | | 5.50% | | 11/21/2022 | | | 200 | | | | 206,868 | |
| Millicom International Cellular SA (Luxembourg)†(a) | | 6.625% | | 10/15/2026 | | | 200 | | | | 221,830 | |
| Ooredoo International Finance Ltd.† | | 3.25% | | 2/21/2023 | | | 400 | | | | 408,340 | |
| Ooredoo International Finance Ltd.† | | 3.875% | | 1/31/2028 | | | 400 | | | | 430,000 | |
| Oztel Holdings SPC Ltd. (United Arab Emirates)†(a) | | 6.625% | | 4/24/2028 | | | 400 | | | | 425,626 | |
| SK Telecom Co. Ltd. (South Korea)†(a) | | 3.75% | | 4/16/2023 | | | 200 | | | | 207,525 | |
| Telefonica Celular del Paraguay SA (Paraguay)†(a) | | 5.875% | | 4/15/2027 | | | 200 | | | | 214,320 | |
| Total | | | | | | | | | | | 2,758,847 | |
| | | | | | | | | | | | | |
| Transportation: Miscellaneous 0.43% | | | | | | | | | | | | |
| Kazakhstan Temir Zholy Finance BV (Netherlands)†(a) | | 6.95% | | 7/10/2042 | | | 200 | | | | 269,074 | |
| | | | | | | | | | | | | |
| Utilities 0.34% | | | | | | | | | | | | |
| Aegea Finance Sarl (Brazil)†(a) | | 5.75% | | 10/10/2024 | | | 200 | | | | 211,085 | |
| Total Corporate Bonds (cost $54,065,584) | | | | | | | | | | | 56,199,147 | |
| | | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATIONS 4.49% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Angola 0.34% | | | | | | | | | | | | |
| Republic Of Angola†(a) | | 9.125% | | 11/26/2049 | | | 200 | | | | 214,506 | |
| | | | | | | | | | | | | |
| Egypt 0.99% | | | | | | | | | | | | |
| Arab Republic of Egypt†(a) | | 4.55% | | 11/20/2023 | | | 200 | | | | 204,629 | |
| Arab Republic of Egypt†(a) | | 6.125% | | 1/31/2022 | | | 400 | | | | 417,200 | |
| Total | | | | | | | | | | | 621,829 | |
| | | | | | | | | | | | | |
| Indonesia 0.34% | | | | | | | | | | | | |
| Republic of Indonesia(a) | | 4.125% | | 1/15/2025 | | | 200 | | | | 214,928 | |
| | | | | | | | | | | | | |
| Mongolia 0.34% | | | | | | | | | | | | |
| Development Bank of Mongolia LLC†(a) | | 7.25% | | 10/23/2023 | | | 200 | | | | 211,990 | |
| | | | | | | | | | | | | |
| Nigeria 0.66% | | | | | | | | | | | | |
| Republic of Nigeria†(a) | | 6.375% | | 7/12/2023 | | | 200 | | | | 214,228 | |
| Republic of Nigeria†(a) | | 6.50% | | 11/28/2027 | | | 200 | | | | 204,774 | |
| Total | | | | | | | | | | | 419,002 | |
| | See Notes to Financial Statements. | 35 |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Qatar 0.39% | | | | | | | | | | | | |
| State of Qatar†(a) | | 4.817% | | 3/14/2049 | | $ | 200 | | | $ | 248,090 | |
| | | | | | | | | | | | | |
| South Korea 0.34% | | | | | | | | | | | | |
| Korea Gas Corp.†(a) | | 3.875% | | 2/12/2024 | | | 200 | | | | 212,428 | |
| | | | | | | | | | | | | |
| Turkey 0.35% | | | | | | | | | | | | |
| Export Credit Bank of Turkey†(a) | | 8.25% | | 1/24/2024 | | | 200 | | | | 217,990 | |
| | | | | | | | | | | | | |
| Ukraine 0.43% | | | | | | | | | | | | |
| Ukraine Government†(a) | | 7.75% | | 9/1/2023 | | | 250 | | | | 272,083 | |
| | | | | | | | | | | | | |
| United Arab Emirates 0.31% | | | | | | | | | | | | |
| Abu Dhabi Government International Bond†(a) | | 3.125% | | 9/30/2049 | | | 200 | | | | 195,383 | |
| Total Foreign Government Obligations (cost $2,695,104) | | | | | | | | | | | 2,828,229 | |
| Total Long-Term Investments (cost $57,100,928) | | | | | | | | | | | 59,346,835 | |
| | | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS 3.64% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATION 0.08% | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Foreign Government | | | | | | | | | | | | |
Egypt Treasury Bills(b)
(cost $45,850) | | Zero Coupon | | 3/24/2020 | | EGP | 775 | | | | 46,778 | |
| | | | | | | | | | | | | |
| REPURCHASE AGREEMENT 3.56% | | | | | | | | | | | | |
Repurchase Agreement dated 12/31/2019, 0.85% due 1/2/2020 with Fixed Income Clearing Corp. collateralized by $2,285,000 of U.S. Treasury Note at 1.50% due 8/31/2021; value: $2,292,358; proceeds: $2,243,169
(cost $2,243,063) | | | | | | $ | 2,243 | | | | 2,243,063 | |
| Total Short-Term Investments (cost $2,288,913) | | | | | | | | | | | 2,289,841 | |
| Total Investments in Securities 97.91% (cost $59,389,841) | | | | | | | | | | | 61,636,676 | |
| Cash and Other Assets in Excess of Liabilities(d)2.09% | | | | | | | | | | | 1,315,940 | |
| Net Assets 100.00% | | | | | | | | | | $ | 62,952,616 | |
| EGP | | Egyptian pound. |
| EUR | | Euro. |
| ADR | | American Depositary Receipt. |
| CMT | | Constant Maturity Rate. |
| LIBOR | | London Interbank Offered Rate. |
| | | |
| † | | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers. At December 31, 2019, the total value of Rule 144A securities was $46,977,396, which represents 74.62% of net assets. |
| # | | Variable rate security. The interest rate represents the rate in effect at December 31, 2019. |
| (a) | | Foreign security traded in U.S. dollars. |
| (b) | | Investment in non-U.S. dollar denominated securities. |
| 36 | See Notes to Financial Statements. |
Schedule of Investments (continued)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
| (c) | | Security is perpetual in nature and has no stated maturity. |
| (d) | | Cash and Other Assets in Excess of Liabilities include net unrealized appreciation/depreciation on forward foreign currency exchange contracts, futures contracts and swaps as follows: |
Centrally Cleared Credit Default Swaps on Indexes - Sell Protection at December 31, 2019(1):
Referenced
Index | | Central
Clearing party | | Fund
Pays
(Quarterly) | | Termination
Date | | Notional
Amount | | | Notional
Value | | | Payments
Upfront(2) | | | Unrealized
Appreciation(3) | |
| Markit CDX. EM.32(4)(5) | | Credit Suisse | | 1.00% | | 12/20/2024 | | | $2,305,000 | | | | $2,227,534 | | | | $(105,143 | ) | | | $27,677 | |
| (1) | | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities. |
| (2) | | Upfront payments received by Central Clearing Party are presented net of amortization (See Note 2(n)). |
| (3) | | Total unrealized appreciation on Credit Default Swaps on Indexes amounted to $27,677 Total unrealized depreciation on Credit Default Swaps on Indexes amounted to $0. |
| (4) | | Central Clearinghouse: Intercontinental Exchange (ICE). |
| (5) | | The Referenced Index is for the Centrally Cleared Credit Default Swaps on Indexes, which is comprised of a basket of emerging markets sovereign issuers. |
Credit Default Swaps on Issuer - Sell Protection at December 31, 2019(1):
Referenced
Issuer | | Swap
Counterparty | | Fund
Receives
(Quarterly) | | Termination
Date | | Notional
Amount | | | Notional
Value | | | Payments
Upfront(2) | | | Unrealized
Appreciation(3) | | | Credit
Default
Swap
Agreements
Receivable at
Fair Value(4) | |
| Petroleos Mexicanos(5) | | Citibank | | 1.00% | | 6/20/2020 | | | $45,000 | | | | $45,157 | | | | $(84 | ) | | | $241 | | | | $157 | |
| (1) | | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities. |
| (2) | | Upfront payments received are presented net of amortization (See Note 2(n)). |
| (3) | | Total unrealized appreciation on Credit Default Swaps on Issuer amounted to $241. Total unrealized depreciation on Credit Default Swaps on Issuer amounted to $0. |
| (4) | | Includes upfront payments received/paid. |
| (5) | | Moody’s Credit Rating: Baa3. |
Open Forward Foreign Currency Exchange Contracts at December 31, 2019:
Forward
Foreign
Currency
Exchange
Contracts | | Transaction
Type | | Counterparty | | Expiration
Date | | Foreign
Currency | | | U.S. $
Cost on
Origination
Date | | | U.S. $
Current
Value | | Unrealized
Depreciation | |
| euro | | Sell | | Morgan Stanley | | 2/14/2020 | | | 16,000 | | | $ | 17,840 | | | $ | 17,994 | | | $ | (154) | |
| euro | | Sell | | State Street Bank and Trust | | 2/14/2020 | | | 204,000 | | | | 225,989 | | | | 229,425 | | | | (3,436) | |
| euro | | Sell | | Toronto Dominion Bank | | 2/14/2020 | | | 90,000 | | | | 99,729 | | | | 101,217 | | | | (1,488) | |
| Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | | | | | $ | (5,078) | |
| | See Notes to Financial Statements. | 37 |
Schedule of Investments (concluded)
EMERGING MARKETS CORPORATE DEBT FUNDDecember 31, 2019
Open Futures Contracts at December 31, 2019:
| Type | | Expiration | | | Contracts | | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Appreciation | |
| U.S. 10-Year Treasury Note | | March 2020 | | | 10 | | | Short | | $ | (1,295,451 | ) | | $ | (1,284,218 | ) | | $ | 11,233 | |
| U.S. 10-Year Ultra Treasury Note | | March 2020 | | | 22 | | | Short | | | (3,132,086 | ) | | | (3,095,469 | ) | | | 36,617 | |
| U.S. Ultra Treasury Bond | | March 2020 | | | 17 | | | Short | | | (3,199,356 | ) | | | (3,088,156 | ) | | | 111,200 | |
| Total Unrealized Appreciation on Open Futures Contracts | | | | | | | | | | $ | 159,050 | |
| | | | | | | | | | | | | |
| Type | | Expiration | | | Contracts | | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Depreciation | |
| U.S. 2-Year Treasury Note | | March 2020 | | | 27 | | | Long | | $ | 5,821,080 | | | $ | 5,818,500 | | | $ | (2,580 | ) |
| U.S. 5-Year Treasury Note | | March 2020 | | | 11 | | | Long | | | 1,309,535 | | | | 1,304,702 | | | | (4,833 | ) |
| U.S. Long Bond | | March 2020 | | | 16 | | | Long | | | 2,559,030 | | | | 2,494,500 | | | | (64,530 | ) |
| Total Unrealized Depreciation on Open Futures Contracts | | | | | | | $ | (71,943 | ) |
The following is a summary of the inputs used as of December 31, 2019 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 Stock | | $ | 24,345 | | | $ | – | | | $ | – | | | $ | 24,345 | |
| Convertible Bonds | | | – | | | | 295,114 | | | | – | | | | 295,114 | |
| Corporate Bonds | | | – | | | | 56,199,147 | | | | – | | | | 56,199,147 | |
| Foreign Government Obligations | | | – | | | | 2,828,229 | | | | – | | | | 2,828,229 | |
| Short-Term Investments | | | | | | | | | | | | | | | | |
| Foreign Government Obligation | | | – | | | | 46,778 | | | | – | | | | 46,778 | |
| Repurchase Agreement | | | – | | | | 2,243,063 | | | | – | | | | 2,243,063 | |
| Total | | $ | 24,345 | | | $ | 61,612,331 | | | $ | – | | | $ | 61,636,676 | |
| Other Financial Instruments | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts | | | | | | | | | | | | | | | | |
| Assets | | $ | – | | | $ | 27,677 | | | $ | – | | | $ | 27,677 | |
| Liabilities | | | – | | | | – | | | | – | | | | – | |
| Credit Default Swap Contracts | | | | | | | | | | | | | | | | |
| Assets | | | – | | | | 157 | | | | – | | | | 157 | |
| Liabilities | | | – | | | | – | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | |
| Assets | | | – | | | | – | | | | – | | | | – | |
| Liabilities | | | – | | | | (5,078 | ) | | | – | | | | (5,078 | ) |
| Futures Contracts | | | | | | | | | | | | | | | | |
| Assets | | | 159,050 | | | | – | | | | – | | | | 159,050 | |
| Liabilities | | | (71,943 | ) | | | – | | | | – | | | | (71,943 | ) |
| Total | | $ | 87,107 | | | $ | 22,756 | | | $ | – | | | $ | 109,863 | |
| (1) | | Refer to Note 2(q) 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. |
| 38 | See Notes to Financial Statements. |
Schedule of Investments
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| LONG-TERM INVESTMENTS 98.06% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| ASSET-BACKED SECURITIES 7.20% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Automobiles 2.67% | | | | | | | | | | | | | |
| AmeriCredit Automobile Receivables 2015–4 D | | 3.72% | | | 12/8/2021 | | $ | 15 | | | $ | 15,079 | |
| Capital Auto Receivables Asset Trust 2018–1 A3† | | 2.79% | | | 1/20/2022 | | | 32 | | | | 31,780 | |
| Chesapeake Funding II LLC 2018–2A A2† | | 2.11%
(1 Mo. LIBOR + .37% | )# | | 8/15/2030 | | | 72 | | | | 72,411 | |
| CPS Auto Receivables Trust 2016-C D† | | 5.92% | | | 6/15/2022 | | | 100 | | | | 101,862 | |
| Drive Auto Receivables Trust 2018–4 B | | 3.36% | | | 10/17/2022 | | | 32 | | | | 32,100 | |
| Drive Auto Receivables Trust 2018–4 C | | 3.66% | | | 11/15/2024 | | | 16 | | | | 16,151 | |
| Santander Drive Auto Receivables Trust 2018–3 D | | 4.07% | | | 8/15/2024 | | | 21 | | | | 21,557 | |
| Total | | | | | | | | | | | | 290,940 | |
| | | | | | | | | | | | | | |
| Credit Cards 2.99% | | | | | | | | | | | | | |
| American Express Credit Account Master Trust 2018–1 A | | 2.67% | | | 10/17/2022 | | | 100 | | | | 100,156 | |
| BA Credit Card Trust 2017-A1 | | 1.95% | | | 8/15/2022 | | | 25 | | | | 25,003 | |
| Discover Card Execution Note Trust 2015-A2 A | | 1.90% | | | 10/17/2022 | | | 100 | | | | 100,014 | |
| Perimeter Master Note Business Trust 2019–2A A† | | 4.23% | | | 5/15/2024 | | | 100 | | | | 100,240 | |
| Total | | | | | | | | | | | | 325,413 | |
| | | | | | | | | | | | | | |
| Other 1.54% | | | | | | | | | | | | | |
| Ally Master Owner Trust 2018–4 A | | 3.30% | | | 7/17/2023 | | | 89 | | | | 90,761 | |
| Towd Point Mortgage Trust 2019-HY2 A1† | | 2.792%
(1 Mo. LIBOR + 1.00% | )# | | 5/25/2058 | | | 77 | | | | 77,574 | |
| Total | | | | | | | | | | | | 168,335 | |
| Total Asset-Backed Securities (cost $780,158) | | | | | | | | | | | | 784,688 | |
| | | | | | | | | | | | | | |
| CORPORATE BONDS 52.57% | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Aerospace/Defense 0.50% | | | | | | | | | | | | | |
| Kratos Defense & Security Solutions, Inc.† | | 6.50% | | | 11/30/2025 | | | 5 | | | | 5,365 | |
| Signature Aviation US Holdings, Inc.† | | 4.00% | | | 3/1/2028 | | | 13 | | | | 12,846 | |
| TransDigm, Inc.† | | 6.25% | | | 3/15/2026 | | | 33 | | | | 35,788 | |
| Total | | | | | | | | | | | | 53,999 | |
| | | | | | | | | | | | | | |
| Apparel 0.18% | | | | | | | | | | | | | |
| William Carter Co. (The)† | | 5.625% | | | 3/15/2027 | | | 18 | | | | 19,392 | |
| | | | | | | | | | | | | | |
| Auto Parts: Original Equipment 0.15% | | | | | | | | | | | | | |
| Panther BF Aggregator 2 LP/Panther Finance Co., Inc.† | | 8.50% | | | 5/15/2027 | | | 15 | | | | 15,965 | |
| | See Notes to Financial Statements. | 39 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Automotive 2.23% | | | | | | | | | | | | | |
| Aston Martin Capital Holdings Ltd. (Jersey)†(a) | | 6.50% | | | 4/15/2022 | | $ | 20 | | | $ | 19,077 | |
| General Motors Co. | | 6.75% | | | 4/1/2046 | | | 30 | | | | 35,265 | |
| Hyundai Capital America† | | 3.45% | | | 3/12/2021 | | | 24 | | | | 24,297 | |
| JB Poindexter & Co., Inc.† | | 7.125% | | | 4/15/2026 | | | 15 | | | | 15,868 | |
| Mclaren Finance plc(b) | | 5.00% | | | 8/1/2022 | | GBP | 100 | | | | 129,321 | |
| Tesla, Inc.† | | 5.30% | | | 8/15/2025 | | $ | 20 | | | | 19,450 | |
| Total | | | | | | | | | | | | 243,278 | |
| | | | | | | | | | | | | | |
| Banks: Regional 8.39% | | | | | | | | | | | | | |
| Bank of America Corp. | | 2.369%
(3 Mo. LIBOR + .66% | )# | | 7/21/2021 | | | 50 | | | | 50,113 | |
| Citigroup, Inc. | | 3.341%
(3 Mo. LIBOR + 1.38% | )# | | 3/30/2021 | | | 50 | | | | 50,691 | |
| Credit Suisse Group AG(b) | | 1.25%
(EUSA1 + .75% | )# | | 7/17/2025 | | EUR | 100 | | | | 116,372 | |
| Goldman Sachs Group, Inc. (The) | | 5.25% | | | 7/27/2021 | | $ | 50 | | | | 52,475 | |
| Goldman Sachs Group, Inc. (The) | | 6.75% | | | 10/1/2037 | | | 15 | | | | 20,818 | |
| JPMorgan Chase & Co. | | 2.435%
(3 Mo. LIBOR + .55% | )# | | 3/9/2021 | | | 50 | | | | 50,018 | |
| Lloyds Bank plc (United Kingdom)†(a) | | 6.50% | | | 9/14/2020 | | | 100 | | | | 102,761 | |
| Macquarie Bank Ltd. (Australia)†(a) | | 6.625% | | | 4/7/2021 | | | 50 | | | | 52,652 | |
| Macquarie Group Ltd. (Australia)†(a) | | 3.763%
(3 Mo. LIBOR + 1.37% | )# | | 11/28/2028 | | | 50 | | | | 52,413 | |
| Morgan Stanley | | 3.146%
(3 Mo. LIBOR + 1.18% | )# | | 1/20/2022 | | | 50 | | | | 50,463 | |
| Nordea Eiendomskreditt AS(b) | | 4.25% | | | 6/16/2021 | | NOK | 500 | | | | 58,817 | |
| Popular, Inc. | | 6.125% | | | 9/14/2023 | | $ | 16 | | | | 17,267 | |
| Swedbank Hypotek AB(b) | | 1.00% | | | 9/18/2024 | | SEK | 300 | | | | 32,712 | |
| UniCredit SpA(b) | | 6.95% | | | 10/31/2022 | | EUR | 100 | | | | 131,062 | |
| Wells Fargo & Co. | | 3.24%
(3 Mo. LIBOR + 1.34% | )# | | 3/4/2021 | | $ | 75 | | | | 75,938 | |
| Total | | | | | | | | | | | | 914,572 | |
| | | | | | | | | | | | | | |
| Beverages 1.11% | | | | | | | | | | | | | |
| Bacardi Ltd.(b) | | 2.75% | | | 7/3/2023 | | EUR | 100 | | | | 120,743 | |
| | | | | | | | | | | | | | |
| Building Materials 0.25% | | | | | | | | | | | | | |
| Patrick Industries, Inc.† | | 7.50% | | | 10/15/2027 | | $ | 25 | | | | 26,696 | |
| | | | | | | | | | | | | | |
| Business Services 2.69% | | | | | | | | | | | | | |
| AA Bond Co. Ltd.(b) | | 2.75% | | | 7/31/2043 | | GBP | 100 | | | | 127,025 | |
| Ahern Rentals, Inc.† | | 7.375% | | | 5/15/2023 | | $ | 13 | | | | 10,340 | |
| Ashtead Capital, Inc.† | | 4.25% | | | 11/1/2029 | | | 8 | | | | 8,190 | |
| Cardtronics, Inc./Cardtronics USA, Inc.† | | 5.50% | | | 5/1/2025 | | | 10 | | | | 10,404 | |
| Techem Verwaltungsgesellschaft 674 mbH†(b) | | 6.00% | | | 7/30/2026 | | EUR | 100 | | | | 121,494 | |
| 40 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Business Services (continued) | | | | | | | | | | | | | |
| United Rentals North America, Inc. | | 5.50% | | | 5/15/2027 | | $ | 10 | | | $ | 10,738 | |
| WW International, Inc.† | | 8.625% | | | 12/1/2025 | | | 5 | | | | 5,318 | |
| Total | | | | | | | | | | | | 293,509 | |
| | | | | | | | | | | | | | |
| Chemicals 0.70% | | | | | | | | | | | | | |
| Ashland LLC | | 6.875% | | | 5/15/2043 | | | 10 | | | | 11,484 | |
| CF Industries, Inc. | | 5.15% | | | 3/15/2034 | | | 16 | | | | 17,910 | |
| Ingevity Corp.† | | 4.50% | | | 2/1/2026 | | | 16 | | | | 16,285 | |
| OCI NV (Netherlands)†(a) | | 6.625% | | | 4/15/2023 | | | 20 | | | | 20,920 | |
| Rain CII Carbon LLC/CII Carbon Corp.† | | 7.25% | | | 4/1/2025 | | | 5 | | | | 4,872 | |
| Tronox, Inc.† | | 6.50% | | | 4/15/2026 | | | 5 | | | | 5,164 | |
| Total | | | | | | | | | | | | 76,635 | |
| | | | | | | | | | | | | | |
| Coal 0.09% | | | | | | | | | | | | | |
| Warrior Met Coal, Inc.† | | 8.00% | | | 11/1/2024 | | | 10 | | | | 10,156 | |
| | | | | | | | | | | | | | |
| Computer Hardware 0.43% | | | | | | | | | | | | | |
| Dell International LLC/EMC Corp.† | | 8.35% | | | 7/15/2046 | | | 30 | | | | 41,295 | |
| Western Digital Corp. | | 4.75% | | | 2/15/2026 | | | 5 | | | | 5,222 | |
| Total | | | | | | | | | | | | 46,517 | |
| | | | | | | | | | | | | | |
| Computer Software 1.14% | | | | | | | | | | | | | |
| TIBCO Software, Inc.† | | 11.375% | | | 12/1/2021 | | | 10 | | | | 10,369 | |
| Ubisoft Entertainment SA(b) | | 1.289% | | | 1/30/2023 | | EUR | 100 | | | | 114,243 | |
| Total | | | | | | | | | | | | 124,612 | |
| | | | | | | | | | | | | | |
| Construction/Homebuilding 0.60% | | | | | | | | | | | | | |
| Century Communities, Inc. | | 5.875% | | | 7/15/2025 | | $ | 5 | | | | 5,221 | |
| Century Communities, Inc.† | | 6.75% | | | 6/1/2027 | | | 15 | | | | 16,118 | |
| PulteGroup, Inc. | | 5.50% | | | 3/1/2026 | | | 5 | | | | 5,599 | |
| Toll Brothers Finance Corp. | | 4.35% | | | 2/15/2028 | | | 10 | | | | 10,453 | |
| Toll Brothers Finance Corp. | | 4.875% | | | 3/15/2027 | | | 5 | | | | 5,414 | |
| TRI Pointe Group, Inc. | | 5.25% | | | 6/1/2027 | | | 17 | | | | 17,813 | |
| Williams Scotsman International, Inc.† | | 7.875% | | | 12/15/2022 | | | 5 | | | | 5,227 | |
| Total | | | | | | | | | | | | 65,845 | |
| | | | | | | | | | | | | | |
| Containers 1.19% | | | | | | | | | | | | | |
| Berry Global, Inc.†(b)(c) | | 1.50% | | | 1/15/2027 | | EUR | 100 | | | | 113,292 | |
| Mauser Packaging Solutions Holding Co.† | | 7.25% | | | 4/15/2025 | | $ | 16 | | | | 15,840 | |
| Total | | | | | | | | | | | | 129,132 | |
| | See Notes to Financial Statements. | 41 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Drugs 0.05% | | | | | | | | | | | | | |
| Bausch Health Cos., Inc.† | | 5.00% | | | 1/30/2028 | | $ | 5 | | | $ | 5,144 | |
| | | | | | | | | | | | | | |
| Electric: Power 3.08% | | | | | | | | | | | | | |
| Ausgrid Finance Pty Ltd. (Australia)†(a) | | 4.35% | | | 8/1/2028 | | | 30 | | | | 32,676 | |
| Calpine Corp. | | 5.50% | | | 2/1/2024 | | | 20 | | | | 20,350 | |
| Clearway Energy Operating LLC | | 5.75% | | | 10/15/2025 | | | 5 | | | | 5,273 | |
| Empresas Publicas de Medellin ESP†(b) | | 8.375% | | | 11/8/2027 | | COP | 65,000 | | | | 20,923 | |
| ESB Finance DAC(b) | | 6.50% | | | 3/5/2020 | | GBP | 50 | | | | 66,826 | |
| NRG Energy, Inc. | | 5.75% | | | 1/15/2028 | | $ | 10 | | | | 10,868 | |
| Origin Energy Finance Ltd. (Australia)†(a) | | 5.45% | | | 10/14/2021 | | | 33 | | | | 34,707 | |
| PPL WEM Ltd./Western Power Distribution Ltd. (United Kingdom)†(a) | | 5.375% | | | 5/1/2021 | | | 25 | | | | 25,738 | |
| Puget Energy, Inc. | | 5.625% | | | 7/15/2022 | | | 26 | | | | 27,891 | |
| Southern Power Co.† | | 2.458%
(3 Mo. LIBOR + .55% | )# | | 12/20/2020 | | | 51 | | | | 51,013 | |
| Toronto Hydro Corp.(b) | | 3.54% | | | 11/18/2021 | | CAD | 50 | | | | 39,536 | |
| Total | | | | | | | | | | | | 335,801 | |
| | | | | | | | | | | | | | |
| Electrical: Household 0.05% | | | | | | | | | | | | | |
| Energizer Holdings, Inc.† | | 6.375% | | | 7/15/2026 | | $ | 5 | | | | 5,334 | |
| | | | | | | | | | | | | | |
| Electronics 0.34% | | | | | | | | | | | | | |
| Itron, Inc.† | | 5.00% | | | 1/15/2026 | | | 15 | | | | 15,587 | |
| Trimble, Inc. | | 4.90% | | | 6/15/2028 | | | 20 | | | | 21,840 | |
| Total | | | | | | | | | | | | 37,427 | |
| | | | | | | | | | | | | | |
| Energy Equipment & Services 0.04% | | | | | | | | | | | | | |
| Enviva Partners LP/Enviva Partners Finance Corp.† | | 6.50% | | | 1/15/2026 | | | 4 | | | | 4,293 | |
| | | | | | | | | | | | | | |
| Engineering & Contracting Services 0.09% | | | | | | | | | | | | | |
| Brand Industrial Services, Inc.† | | 8.50% | | | 7/15/2025 | | | 10 | | | | 10,275 | |
| | | | | | | | | | | | | | |
| Entertainment 3.04% | | | | | | | | | | | | | |
| Buena Vista Gaming Authority† | | 13.00% | | | 4/1/2023 | | | 5 | | | | 5,064 | |
| CPUK Finance Ltd.(b) | | 3.588% | | | 2/28/2042 | | GBP | 100 | | | | 142,143 | |
| Enterprise Development Authority (The)† | | 12.00% | | | 7/15/2024 | | $ | 9 | | | | 10,331 | |
| Penn National Gaming, Inc.† | | 5.625% | | | 1/15/2027 | | | 15 | | | | 15,895 | |
| Pinewood Finance Co. Ltd.(b) | | 3.25% | | | 9/30/2025 | | GBP | 100 | | | | 136,083 | |
| Stars Group Holdings BV/Stars Group US Co-Borrower LLC (Netherlands)†(a) | | 7.00% | | | 7/15/2026 | | $ | 20 | | | | 21,712 | |
| Total | | | | | | | | | | | | 331,228 | |
| 42 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Financial Services 3.35% | | | | | | | | | | | | | |
| Brightsphere Investment Group, Inc. | | Zero Coupon | | | 7/27/2026 | | $ | 50 | | | $ | 52,059 | |
| Global Aircraft Leasing Co. Ltd. PIK 7.25%† | | 6.50% | | | 9/15/2024 | | | 11 | | | | 11,505 | |
| Intrum AB(b) | | 3.00% | | | 9/15/2027 | | EUR | 100 | | | | 110,737 | |
| Lincoln Financing SARL†(b) | | 3.625% | | | 4/1/2024 | | EUR | 100 | | | | 116,713 | |
| Navient Corp. | | 6.75% | | | 6/25/2025 | | $ | 20 | | | | 22,130 | |
| Neuberger Berman Group LLC/Neuberger Berman Finance Corp.† | | 4.875% | | | 4/15/2045 | | | 50 | | | | 51,371 | |
| Total | | | | | | | | | | | | 364,515 | |
| | | | | | | | | | | | | | |
| Food 2.42% | | | | | | | | | | | | | |
| Chobani LLC/Chobani Finance Corp., Inc.† | | 7.50% | | | 4/15/2025 | | | 17 | | | | 17,128 | |
| Fresh Market, Inc. (The)† | | 9.75% | | | 5/1/2023 | | | 7 | | | | 3,570 | |
| JBS USA LUX SA/JBS USA Finance, Inc.† | | 6.75% | | | 2/15/2028 | | | 5 | | | | 5,534 | |
| Kerry Group Financial Service Unitd Co.(b) | | 2.375% | | | 9/10/2025 | | EUR | 100 | | | | 124,336 | |
| Sigma Holdco BV(b) | | 5.75% | | | 5/15/2026 | | EUR | 100 | | | | 113,368 | |
| Total | | | | | | | | | | | | 263,936 | |
| | | | | | | | | | | | | | |
| Government 2.29% | | | | | | | | | | | | | |
| African Development Bank(b) | | 3.35% | | | 8/8/2028 | | AUD | 84 | | | | 65,295 | |
| EUROFIMA(b) | | 3.90% | | | 12/19/2025 | | AUD | 90 | | | | 70,907 | |
| International Finance Corp.(b) | | 4.25% | | | 8/21/2023 | | AUD | 60 | | | | 46,497 | |
| OPB Finance Trust(b) | | 2.98% | | | 1/25/2027 | | CAD | 84 | | | | 66,986 | |
| Total | | | | | | | | | | | | 249,685 | |
| | | | | | | | | | | | | | |
| Health Care Services 0.28% | | | | | | | | | | | | | |
| AHP Health Partners, Inc.† | | 9.75% | | | 7/15/2026 | | $ | 5 | | | | 5,508 | |
| Hadrian Merger Sub, Inc.† | | 8.50% | | | 5/1/2026 | | | 5 | | | | 5,133 | |
| Molina Healthcare, Inc.† | | 4.875% | | | 6/15/2025 | | | 10 | | | | 10,304 | |
| Surgery Center Holdings, Inc.† | | 6.75% | | | 7/1/2025 | | | 5 | | | | 5,015 | |
| West Street Merger Sub, Inc.† | | 6.375% | | | 9/1/2025 | | | 5 | | | | 5,000 | |
| Total | | | | | | | | | | | | 30,960 | |
| | | | | | | | | | | | | | |
| Household Equipment/Products 1.07% | | | | | | | | | | | | | |
| Newell Brands, Inc.(b) | | 3.75% | | | 10/1/2021 | | EUR | 100 | | | | 116,959 | |
| | | | | | | | | | | | | | |
| Insurance 0.58% | | | | | | | | | | | | | |
| CNO Financial Group, Inc. | | 5.25% | | | 5/30/2025 | | $ | 5 | | | | 5,552 | |
| Genworth Holdings, Inc. | | 4.90% | | | 8/15/2023 | | | 10 | | | | 9,929 | |
| HUB International Ltd.† | | 7.00% | | | 5/1/2026 | | | 10 | | | | 10,600 | |
| Teachers Insurance & Annuity Association of America† | | 4.90% | | | 9/15/2044 | | | 30 | | | | 36,842 | |
| Total | | | | | | | | | | | | 62,923 | |
| | See Notes to Financial Statements. | 43 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Leisure 1.02% | | | | | | | | | | | |
| Carnival plc(b) | | 1.00% | | | 10/28/2029 | | EUR | 100 | | | $ | 111,171 | |
| | | | | | | | | | | | | | |
| Machinery: Agricultural 0.26% | | | | | | | | | | | | | |
| BAT Capital Corp. | | 2.79%
(3 Mo. LIBOR + .88% | )# | | 8/15/2022 | | $ | 28 | | | | 28,150 | |
| | | | | | | | | | | | | | |
| Machinery: Industrial/Specialty 0.29% | | | | | | | | | | | | | |
| Cloud Crane LLC† | | 10.125% | | | 8/1/2024 | | | 5 | | | | 5,260 | |
| RBS Global, Inc./Rexnord LLC† | | 4.875% | | | 12/15/2025 | | | 25 | | | | 25,875 | |
| Total | | | | | | | | | | | | 31,135 | |
| | | | | | | | | | | | | | |
| Manufacturing 0.38% | | | | | | | | | | | | | |
| General Electric Co. | | 2.801%
(3 Mo. LIBOR + .80% | )# | | 4/15/2020 | | | 25 | | | | 25,033 | |
| General Electric Co. | | 3.45% | | | 5/15/2024 | | | 1 | | | | 1,038 | |
| General Electric Co. | | 6.15% | | | 8/7/2037 | | | 12 | | | | 14,877 | |
| Total | | | | | | | | | | | | 40,948 | |
| | | | | | | | | | | | | | |
| Media 2.28% | | | | | | | | | | | | | |
| AMC Networks, Inc. | | 4.75% | | | 8/1/2025 | | | 20 | | | | 20,117 | |
| CCO Holdings LLC/CCO Holdings Capital Corp.† | | 5.875% | | | 5/1/2027 | | | 10 | | | | 10,598 | |
| Cox Communications, Inc.† | | 8.375% | | | 3/1/2039 | | | 35 | | | | 52,596 | |
| DISH DBS Corp. | | 7.75% | | | 7/1/2026 | | | 16 | | | | 16,980 | |
| EW Scripps Co. (The)† | | 5.125% | | | 5/15/2025 | | | 15 | | | | 15,381 | |
| Gray Television, Inc.† | | 7.00% | | | 5/15/2027 | | | 17 | | | | 18,923 | |
| NBCUniversal Enterprise, Inc.† | | 5.25% | | | – | (d) | | 100 | | | | 103,285 | |
| Nexstar Broadcasting, Inc.† | | 5.625% | | | 7/15/2027 | | | 10 | | | | 10,556 | |
| Total | | | | | | | | | | | | 248,436 | |
| | | | | | | | | | | | | | |
| Metals & Minerals: Miscellaneous 0.44% | | | | | | | | | | | | | |
| Barminco Finance Pty Ltd. (Australia)†(a) | | 6.625% | | | 5/15/2022 | | | 5 | | | | 5,140 | |
| Freeport-McMoRan, Inc. | | 3.875% | | | 3/15/2023 | | | 10 | | | | 10,203 | |
| Glencore Finance Canada Ltd. (Canada)†(a) | | 5.55% | | | 10/25/2042 | | | 20 | | | | 21,244 | |
| New Gold, Inc. (Canada)†(a) | | 6.25% | | | 11/15/2022 | | | 11 | | | | 10,976 | |
| Total | | | | | | | | | | | | 47,563 | |
| | | | | | | | | | | | | | |
| Oil 3.13% | | | | | | | | | | | | | |
| Berry Petroleum Co. LLC† | | 7.00% | | | 2/15/2026 | | | 20 | | | | 18,582 | |
| Centennial Resource Production LLC† | | 6.875% | | | 4/1/2027 | | | 10 | | | | 10,423 | |
| Continental Resources, Inc. | | 5.00% | | | 9/15/2022 | | | 34 | | | | 34,248 | |
| Ecopetrol SA (Colombia)(a) | | 5.875% | | | 5/28/2045 | | | 30 | | | | 35,466 | |
| Hilcorp Energy I LP/Hilcorp Finance Co.† | | 5.75% | | | 10/1/2025 | | | 5 | | | | 4,890 | |
| Indigo Natural Resources LLC† | | 6.875% | | | 2/15/2026 | | | 10 | | | | 9,425 | |
| 44 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | | Maturity
Date | | Principal
Amount
(000) | | | Fair
Value | |
| Oil (continued) | | | | | | | | | | | | | |
| Marathon Petroleum Corp. | | 5.375% | | | 10/1/2022 | | $ | 50 | | | $ | 50,502 | |
| MEG Energy Corp. (Canada)†(a) | | 6.50% | | | 1/15/2025 | | | 6 | | | | 6,253 | |
| MEG Energy Corp. (Canada)†(a) | | 7.00% | | | 3/31/2024 | | | 15 | | | | 15,125 | |
| Oasis Petroleum, Inc. | | 6.875% | | | 3/15/2022 | | | 15 | | | | 14,475 | |
| Petroleos Mexicanos(b) | | 5.50% | | | 2/24/2025 | | EUR | 34 | | | | 43,688 | |
| Petroleos Mexicanos (Mexico)(a) | | 5.35% | | | 2/12/2028 | | $ | 30 | | | | 29,935 | |
| Range Resources Corp. | | 5.00% | | | 8/15/2022 | | | 11 | | | | 10,808 | |
| SM Energy Co. | | 6.75% | | | 9/15/2026 | | | 10 | | | | 9,829 | |
| Tapstone Energy LLC/Tapstone Energy Finance Corp.† | | 9.75% | | | 6/1/2022 | | | 10 | | | | 85 | |
| Transocean, Inc.† | | 7.25% | | | 11/1/2025 | | | 5 | | | | 4,912 | |
| Valero Energy Corp. | | 10.50% | | | 3/15/2039 | | | 25 | | | | 42,191 | |
| Total | | | | | | | | | | | | 340,837 | |
| | | | | | | | | | | | | | |
| Oil: Crude Producers 0.89% | | | | | | | | | | | | | |
| Buckeye Partners LP | | 6.375%
(3 Mo. LIBOR + 4.02% | )# | | 1/22/2078 | | | 21 | | | | 15,513 | |
| Cheniere Corpus Christi Holdings LLC | | 5.125% | | | 6/30/2027 | | | 10 | | | | 11,070 | |
| Mplx LP | | 2.785%
(3 Mo. LIBOR + .90% | )# | | 9/9/2021 | | | 30 | | | | 30,095 | |
| NGPL PipeCo LLC† | | 4.875% | | | 8/15/2027 | | | 5 | | | | 5,316 | |
| Sabine Pass Liquefaction LLC | | 5.875% | | | 6/30/2026 | | | 30 | | | | 34,446 | |
| Total | | | | | | | | | | | | 96,440 | |
| | | | | | | | | | | | | | |
| Oil: Integrated Domestic 0.17% | | | | | | | | | | | | | |
| National Oilwell Varco, Inc. | | 3.95% | | | 12/1/2042 | | | 20 | | | | 18,623 | |
| | | | | | | | | | | | | | |
| Paper & Forest Products 0.19% | | | | | | | | | | | | | |
| Fibria Overseas Finance Ltd. (Brazil)(a) | | 5.25% | | | 5/12/2024 | | | 19 | | | | 20,607 | |
| | | | | | | | | | | | | | |
| Real Estate Investment Trusts 3.76% | | | | | | | | | | | | | |
| Aroundtown SA(b) | | 1.45% | | | 7/9/2028 | | EUR | 100 | | | | 113,990 | |
| Country Garden Holdings Co. Ltd. (China)(a) | | 4.75% | | | 1/17/2023 | | $ | 200 | | | | 201,976 | |
| EPR Properties | | 4.95% | | | 4/15/2028 | | | 10 | | | | 10,923 | |
| GEO Group, Inc. (The) | | 6.00% | | | 4/15/2026 | | | 12 | | | | 10,680 | |
| GLP Capital LP/GLP Financing II, Inc. | | 5.75% | | | 6/1/2028 | | | 5 | | | | 5,689 | |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.† | | 5.25% | | | 10/1/2025 | | | 5 | | | | 5,202 | |
| VEREIT Operating Partnership LP | | 4.875% | | | 6/1/2026 | | | 40 | | | | 44,303 | |
| WeWork Cos., Inc.† | | 7.875% | | | 5/1/2025 | | | 21 | | | | 17,377 | |
| Total | | | | | | | | | | | | 410,140 | |
| | | | | | | | | | | | | | |
| Retail 0.35% | | | | | | | | | | | | | |
| IRB Holding Corp.† | | 6.75% | | | 2/15/2026 | | | 10 | | | | 10,504 | |
| | See Notes to Financial Statements. | 45 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | Fair
Value | |
| Retail (continued) | | | | | | | | | | | |
| KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC† | | 4.75% | | 6/1/2027 | | $ | 21 | | $ | 22,151 | |
| Lithia Motors, Inc.† | | 4.625% | | 12/15/2027 | | | 5 | | | 5,152 | |
| Total | | | | | | | | | | 37,807 | |
| | | | | | | | | | | | |
| Steel 0.12% | | | | | | | | | | | |
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP (Canada)†(a) | | 8.75% | | 7/15/2026 | | | 13 | | | 13,122 | |
| | | | | | | | | | | | |
| Technology 1.49% | | | | | | | | | | | |
| Match Group, Inc.† | | 5.00% | | 12/15/2027 | | | 10 | | | 10,454 | |
| Netflix, Inc.(b) | | 3.875% | | 11/15/2029 | | EUR | 100 | | | 119,040 | |
| Netflix, Inc. | | 5.875% | | 2/15/2025 | | $ | 29 | | | 32,395 | |
| Total | | | | | | | | | | 161,889 | |
| | | | | | | | | | | | |
| Telecommunications 1.37% | | | | | | | | | | | |
| Altice France SA (France)†(a) | | 7.375% | | 5/1/2026 | | | 25 | | | 26,887 | |
| British Telecommunications plc(b) | | 8.625% | | 3/26/2020 | | GBP | 30 | | | 40,431 | |
| DKT Finance ApS (Denmark)†(a) | | 9.375% | | 6/17/2023 | | $ | 20 | | | 21,339 | |
| Intelsat Jackson Holdings SA (Luxembourg)(a) | | 5.50% | | 8/1/2023 | | | 17 | | | 14,639 | |
| Sprint Capital Corp. | | 6.875% | | 11/15/2028 | | | 9 | | | 9,714 | |
| Telstra Corp. Ltd.(b) | | 7.75% | | 7/15/2020 | | AUD | 50 | | | 36,250 | |
| Total | | | | | | | | | | 149,260 | |
| | | | | | | | | | | | |
| Toys 0.10% | | | | | | | | | | | |
| Mattel, Inc. | | 5.45% | | 11/1/2041 | | $ | 13 | | | 11,030 | |
| Total Corporate Bonds (cost $5,583,035) | | | | | | | | | | 5,726,689 | |
| | | | | | | | | | | | |
| FLOATING RATE LOANS(e)1.01% | | | | | | | | | | | |
| | | | | | | | | | | | |
| Building Materials 0.10% | | | | | | | | | | | |
| Forterra Finance, LLC 2017 Term Loan B | | – | (f) | 10/25/2023 | | | 11 | | | 10,759 | |
| | | | | | | | | | | | |
| Computer Software 0.20% | | | | | | | | | | | |
| Navicure, Inc. 2019 Term Loan B | | – | (f) | 10/22/2026 | | | 11 | | | 11,076 | |
| Project Boost Purchaser, LLC 2019 Term Loan B | | – | (f) | 6/1/2026 | | | 11 | | | 11,039 | |
| Total | | | | | | | | | | 22,115 | |
| | | | | | | | | | | | |
| Electric: Power 0.10% | | | | | | | | | | | |
| Helix Gen Funding, LLC Term Loan B | | – | (f) | 6/3/2024 | | | 11 | | | 10,873 | |
| 46 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | Fair
Value | |
| Engineering & Contracting Services 0.10% | | | | | | | | | | | |
| DG Investment Intermediate Holdings 2, Inc. 2018 1st Lien Term Loan | | – | (f) | 2/3/2025 | | $ | 11 | | $ | 10,945 | |
| | | | | | | | | | | | |
| Financial Services 0.10% | | | | | | | | | | | |
| Minotaur Acquisition, Inc. Term Loan B | | – | (f) | 3/27/2026 | | | 11 | | | 10,835 | |
| | | | | | | | | | | | |
| Leisure 0.10% | | | | | | | | | | | |
| Hayward Industries, Inc. 1st Lien Term Loan | | – | (f) | 8/5/2024 | | | 11 | | | 10,833 | |
| | | | | | | | | | | | |
| Technology 0.21% | | | | | | | | | | | |
| Ancestry.com Operations Inc. Non-Extended Term Loan B | | 5.50%
(1 Mo. LIBOR + 1.80% | ) | 10/19/2023 | | | 11 | | | 10,855 | |
| Optiv Security, Inc. 1st Lien Term Loan | | – | (f) | 2/1/2024 | | | 13 | | | 11,377 | |
| Total | | | | | | | | | | 22,232 | |
| | | | | | | | | | | | |
| Transportation: Miscellaneous 0.10% | | | | | | | | | | | |
| MHI Holdings,LLC Term Loan B | | – | (f) | 9/21/2026 | | | 11 | | | 11,041 | |
| Total Floating Rate Loans (cost $109,148) | | | | | | | | | | 109,633 | |
| | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATIONS 17.37% | | | | | | | | | | | |
| | | | | | | | | | | | |
| Bahamas 0.29% | | | | | | | | | | | |
| Commonwealth of Bahamas†(a) | | 6.95% | | 11/20/2029 | | | 27 | | | 31,185 | |
| | | | | | | | | | | | |
| Belgium 0.15% | | | | | | | | | | | |
| Kingdom of Belgium Government Bond†(b) | | 1.60% | | 6/22/2047 | | EUR | 4 | | | 5,325 | |
| Kingdom of Belgium Government Bond†(b) | | 1.90% | | 6/22/2038 | | EUR | 8 | | | 11,006 | |
| Total | | | | | | | | | | 16,331 | |
| | | | | | | | | | | | |
| Brazil 0.88% | | | | | | | | | | | |
| Brazil Letras do Tesouro Nacional(b) | | Zero Coupon | | 7/1/2022 | | BRL | 205 | | | 44,529 | |
| Brazil Notas do Tesouro Nacional Serie F(b) | | 10.00% | | 1/1/2029 | | BRL | 170 | | | 51,073 | |
| Total | | | | | | | | | | 95,602 | |
| | | | | | | | | | | | |
| Canada 1.40% | | | | | | | | | | | |
| City of Montreal Canada(b) | | 4.25% | | 12/1/2032 | | CAD | 55 | | | 49,623 | |
| Province of Ontario Canada(b) | | 2.90% | | 6/2/2028 | | CAD | 65 | | | 52,411 | |
| Province of Saskatchewan Canada(b) | | 4.75% | | 6/1/2040 | | CAD | 49 | | | 50,305 | |
| Total | | | | | | | | | | 152,339 | |
| | | | | | | | | | | | |
| China 1.58% | | | | | | | | | | | |
| China Development Bank(b) | | 3.48% | | 1/8/2029 | | CNY | 600 | | | 84,769 | |
| China Development Bank(b) | | 3.68% | | 2/26/2026 | | CNY | 600 | | | 87,068 | |
| Total | | | | | | | | | | 171,837 | |
| | See Notes to Financial Statements. | 47 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | Fair
Value | |
| Egypt 0.16% | | | | | | | | | | | |
| Egypt Government Bond(b) | | 15.70% | | 11/7/2027 | | EGP | 260 | | $ | 17,921 | |
| | | | | | | | | | | | |
| El Salvador 0.31% | | | | | | | | | | | |
| Republic of EI Salvador†(a) | | 6.375% | | 1/18/2027 | | $ | 32 | | | 34,092 | |
| | | | | | | | | | | | |
| France 0.68% | | | | | | | | | | | |
| French Republic Government Bond OAT†(b) | | 2.00% | | 5/25/2048 | | EUR | 51 | | | 73,606 | |
| | | | | | | | | | | | |
| Hungary 0.24% | | | | | | | | | | | |
| Hungary Government Bond(b) | | 3.00% | | 8/21/2030 | | HUF | 7,150 | | | 26,527 | |
| | | | | | | | | | | | |
| Indonesia 0.48% | | | | | | | | | | | |
| Indonesia Treasury Bond(b) | | 8.375% | | 3/15/2024 | | IDR | 682,000 | | | 52,717 | |
| | | | | | | | | | | | |
| Italy 3.04% | | | | | | | | | | | |
| Cassa Depositi e Prestiti SpA(b) | | 2.125% | | 9/27/2023 | | EUR | 100 | | | 118,770 | |
| Italy Buoni Poliennali Del Tesoro(b) | | 1.35% | | 4/1/2030 | | EUR | 30 | | | 33,481 | |
| Italy Buoni Poliennali Del Tesoro(b) | | 1.75% | | 7/1/2024 | | EUR | 78 | | | 92,161 | |
| Italy Buoni Poliennali Del Tesoro†(b) | | 2.45% | | 9/1/2033 | | EUR | 40 | | | 48,882 | |
| Italy Buoni Poliennali Del Tesoro†(b) | | 3.85% | | 9/1/2049 | | EUR | 26 | | | 37,789 | |
| Total | | | | | | | | | | 331,083 | |
| | | | | | | | | | | | |
| Japan 1.61% | | | | | | | | | | | |
| Japan Government Thirty Year Bond(b) | | 0.40% | | 6/20/2049 | | JPY | 7,550 | | | 69,334 | |
| Japan Government Twenty Year Bond(b) | | 0.40% | | 3/20/2039 | | JPY | 5,500 | | | 51,835 | |
| Japan Government Twenty Year Bond(b) | | 1.40% | | 9/20/2034 | | JPY | 5,000 | | | 54,503 | |
| Total | | | | | | | | | | 175,672 | |
| | | | | | | | | | | | |
| Malaysia 0.49% | | | | | | | | | | | |
| Malaysia Government Bond(b) | | 3.478% | | 6/14/2024 | | MYR | 216 | | | 53,431 | |
| | | | | | | | | | | | |
| Mexico 0.22% | | | | | | | | | | | |
| United Mexican States(a) | | 4.75% | | 3/8/2044 | | $ | 22 | | | 24,386 | |
| | | | | | | | | | | | |
| Peru 0.09% | | | | | | | | | | | |
| Peru Government Bond†(b) | | 5.40% | | 8/12/2034 | | PEN | 30 | | | 9,518 | |
| | | | | | | | | | | | |
| South Africa 0.28% | | | | | | | | | | | |
| Republic of South Africa Government Bond(b) | | 8.75% | | 2/28/2048 | | ZAR | 486 | | | 30,650 | |
| | | | | | | | | | | | |
| Spain 1.84% | | | | | | | | | | | |
| Spain Government Bond†(b) | | 1.45% | | 4/30/2029 | | EUR | 30 | | | 36,793 | |
| Spain Government Bond†(b) | | 1.85% | | 7/30/2035 | | EUR | 40 | | | 51,368 | |
| Spain Government Bond†(b) | | 2.70% | | 10/31/2048 | | EUR | 11 | | | 16,412 | |
| 48 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | Fair
Value | |
| Spain (continued) | | | | | | | | | | | |
| Spain Government Bond†(b) | | 4.20% | | 1/31/2037 | | EUR | 56 | | $ | 95,930 | |
| Total | | | | | | | | | | 200,503 | |
| | | | | | | | | | | | |
| Turkey 0.30% | | | | | | | | | | | |
| Republic of Turkey(a) | | 7.375% | | 2/5/2025 | | $ | 30 | | | 32,827 | |
| | | | | | | | | | | | |
| United Kingdom 3.33% | | | | | | | | | | | |
| United Kingdom Gilt(b) | | 0.75% | | 7/22/2023 | | GBP | 32 | | | 42,639 | |
| United Kingdom Gilt(b) | | 1.50% | | 7/22/2047 | | GBP | 72 | | | 98,861 | |
| United Kingdom Gilt(b) | | 1.625% | | 10/22/2028 | | GBP | 63 | | | 89,705 | |
| United Kingdom Gilt(b) | | 1.75% | | 9/7/2037 | | GBP | 38 | | | 54,392 | |
| United Kingdom Gilt(b) | | 2.00% | | 7/22/2020 | | GBP | 22 | | | 29,364 | |
| United Kingdom Gilt(b) | | 4.25% | | 12/7/2027 | | GBP | 28 | | | 47,300 | |
| Total | | | | | | | | | | 362,261 | |
| Total Foreign Government Obligations(cost $1,812,157) | | | | | | | | 1,892,488 | |
| | | | | | | | | | | | |
| GOVERNMENT SPONSORED ENTERPRISES PASS-THROUGHS 7.15% | | | | | | | | | |
| Federal Home Loan Mortgage Corp. | | 4.00% | | 10/1/2049 | | $ | 26 | | | 28,630 | |
| Federal National Mortgage Assoc.(g) | | 3.00% | | TBA | | | 350 | | | 354,771 | |
| Federal National Mortgage Assoc.(g) | | 3.50% | | TBA | | | 350 | | | 359,880 | |
| Federal National Mortgage Assoc. | | 4.00% | | 1/1/2048 | | | 32 | | | 35,488 | |
| Total Government Sponsored Enterprises Pass-Throughs (cost $777,368) | | | | | | | | 778,769 | |
| | | | | | | | | | | | |
| NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES 2.57% | | | | | | | | | |
| BBCMS Mortgage Trust 2019-BWAY A† | | 2.696%
(1 Mo. LIBOR + .96% | )# | 11/25/2034 | | | 11 | | | 10,959 | |
| BBCMS Mortgage Trust 2019-BWAY B† | 3.05%
(1 Mo. LIBOR + 1.31% | )# | 11/25/2034 | | | 10 | | | 9,963 | |
| BX Trust 2019-OC11 A† | | 3.202% | | 12/9/2041 | | | 21 | | | 21,652 | |
| Citigroup Commercial Mortgage Trust 2016-GC36 D† | | 2.85% | | 2/10/2049 | | | 45 | | | 39,027 | |
| Citigroup Commercial Mortgage Trust 2016-P3 D† | | 2.804% | #(h) | 4/15/2049 | | | 30 | | | 26,243 | |
| Commercial Mortgage Pass-Through Certificates 2015-PC1 C | | 4.436% | #(h) | 7/10/2050 | | | 25 | | | 25,932 | |
| Commercial Mortgage Pass-Through Certificates 2015-PC1 D | | 4.436% | #(h) | 7/10/2050 | | | 35 | | | 33,027 | |
| Great Wolf Trust 2019-WOLF A† | 2.756%
(1 Mo. LIBOR + 1.03% | )# | 12/15/2029 | | | 27 | | | 26,924 | |
| JPMorgan Chase Commercial Mortgage Securities Trust 2018-LAQ A† | 2.74%
(1 Mo. LIBOR + 1.00% | )# | 6/15/2032 | | | 45 | | | 44,967 | |
| JPMorgan Chase Commercial Mortgage Securities Trust 2018-LAQ B† | 3.04%
(1 Mo. LIBOR + 1.30% | )# | 6/15/2032 | | | 19 | | | 18,898 | |
| | See Notes to Financial Statements. | 49 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| Investments | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000) | | Fair
Value | |
| NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | | |
| JPMorgan Chase Commercial Mortgage Securities Trust 2018-LAQ E† | 4.74%
(1 Mo. LIBOR + 3.00% | )# | 6/15/2035 | | $ | 22 | | $ | 22,579 | |
| Total Non-Agency Commercial Mortgage-Backed Securities (cost $270,086) | | | | | | | | 280,171 | |
| | | | | | | | | | | | |
| U.S. TREASURY OBLIGATIONS 10.19% | | | | | | | | | | | |
| U.S. Treasury Bond | | 2.25% | | 8/15/2049 | | | 41 | | | 39,739 | |
| U.S. Treasury Bond | | 2.375% | | 11/15/2049 | | | 36 | | | 35,848 | |
| U.S. Treasury Bond | | 2.75% | | 11/15/2047 | | | 147 | | | 157,504 | |
| U.S. Treasury Bond | | 3.625% | | 8/15/2043 | | | 80 | | | 98,023 | |
| U.S. Treasury Bond | | 4.50% | | 2/15/2036 | | | 62 | | | 82,153 | |
| U.S. Treasury Inflation Indexed Note(i) | | 0.50% | | 4/15/2024 | | | 106 | | | 107,851 | |
| U.S. Treasury Note | | 1.50% | | 11/30/2024 | | | 83 | | | 82,260 | |
| U.S. Treasury Note | | 1.75% | | 12/31/2024 | | | 136 | | | 136,309 | |
| U.S. Treasury Note | | 1.75% | | 11/15/2029 | | | 143 | | | 140,749 | |
| U.S. Treasury Note | | 2.25% | | 12/31/2023 | | | 225 | | | 229,981 | |
| Total U.S. Treasury Obligations (cost $1,101,968) | | | | | | | | | | 1,110,417 | |
| Total Long-Term Investments (cost $10,433,920) | | | | | | | | | | 10,682,855 | |
| | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS 7.84% | | | | | | | | | | | |
| | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATION 0.45% | | | | | | | | | | | |
| | | | | | | | | | | | |
| Hungary | | | | | | | | | | | |
| Hungary Government Bond(a)(cost $49,134) | | 6.25% | | 1/29/2020 | | | 49 | | | 49,221 | |
| | | | | | | | | | | | |
| REPURCHASE AGREEMENT 7.39% | | | | | | | | | | | |
| Repurchase Agreement dated 12/31/2019, 0.85% due 1/2/2020 with Fixed Income Clearing Corp. collateralized by $800,000 of U.S. Treasury Note at 2.75% due 8/15/2021; value: $822,802; proceeds: $805,201 (cost $805,163) | | | | | | | | | | | |
| | | | | | | | 805 | | | 805,163 | |
| Total Short-Term Investments (cost $854,297) | | | | | | | | | | 854,384 | |
| Total Investments in Securities 105.90% (cost $11,288,217) | | | | | | | | 11,537,239 | |
| Liabilities in Excess of Foreign Cash and Other Assets(j)(5.90%) | | | | | | | | (642,759 | ) |
| Net Assets 100.00% | | | | | | | | | $ | 10,894,480 | |
| 50 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
| AUD | Australian dollar. |
| BRL | Brazilian real. |
| CAD | Canadian dollar. |
| CNY | Chinese yuan renminbi. |
| COP | Colombian peso. |
| EGP | Egyptian pound. |
| EUR | Euro. |
| GBP | British pound. |
| HUF | Hungarian forint. |
| IDR | Indonesian rupiah. |
| JPY | Japanese yen. |
| MYR | Malaysian ringgit. |
| NOK | Norwegian krone. |
| PEN | Peruvian nuevo sol. |
| SEK | Swedish Krona. |
| ZAR | South African rand. |
| LIBOR | London Interbank Offered Rate. |
| PIK | Payment-in-kind. |
| † | | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers. At December 31, 2019, the total value of Rule 144A securities was $2,904,787, which represents 26.66% of net assets. |
| # | | Variable rate security. The interest rate represents the rate in effect at December 31, 2019. |
| (a) | | Foreign security traded in U.S. dollars. |
| (b) | | Investment in non-U.S. dollar denominated securities. |
| (c) | | Securities purchased on a when-issued basis (See Note 2(i)). |
| (d) | | Security is perpetual in nature and has no stated maturity. |
| (e) | | Floating Rate Loans in which the Fund invests generally pay interest at rates which are periodically re-determined at a margin above the London Interbank Offered Rate (“LIBOR”) or the prime rate offered by major U.S. banks. The rate(s) shown is the rate(s) in effect at December 31, 2019. |
| (f) | | Interest rate to be determined. |
| (g) | | To-be-announced (“TBA”). Security purchased on a forward commitment basis with an approximate principal and maturity date. Actual principal and maturity will be determined upon settlement when the specific mortgage pools are assigned. |
| (h) | | Interest rate is based on the weighted average interest rates of the underlying mortgages within the mortgage pool. |
| (i) | | Treasury Inflation Protected Security. A U.S. Treasury Note or Bond that offers protection from inflation by paying a fixed rate of interest on principal amount that is adjusted for inflation based on the Consumer Price Index. |
| (j) | | Liabilities in Excess of Cash and Other Assets include net unrealized appreciation/depreciation on forward foreign currency exchange contracts, futures contracts and swaps as follows: |
Centrally Cleared Credit Default Swaps on Indexes - Sell Protection at December 31, 2019(1):
Referenced
Index | | Central
Clearing party | | Fund
Receives
(Quarterly) | | Termination
Date | | Notional
Amount | | | Notional
Value | | | Payments
Upfront(2) | | | Unrealized
Appreciation(3) | |
| Markit CDX.NA.EM.31(4)(5) | | Credit Suisse | | 1.00% | | 12/20/2024 | | | $1,493,000 | | | �� | $1,442,824 | | | | $(67,163 | ) | | | $16,987 | |
| (1) | | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities. |
| (2) | | Upfront payments received/paid by Central Clearinghouse are presented net of amortization (See Note 2(n)). |
| (3) | | Total unrealized appreciation on Credit Default Swaps on Indexes amounted to $16,987. Total unrealized depreciation on Credit Default Swaps on Indexes amounted to $0. |
| (4) | | Central Clearinghouse: Intercontinental Exchange (ICE). |
| (5) | | The Referenced Index is for the Centrally Cleared Credit Default Swaps on Indexes, which is comprised of a basket of Emerging Markets sovereign Issuers. |
| | See Notes to Financial Statements. | 51 |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
Open Forward Foreign Currency Exchange Contracts at December 31, 2019:
Forward
Foreign
Currency
Exchange
Contracts | | Transaction
Type | | Counterparty | | Expiration
Date | | Foreign
Currency | | U.S. $
Cost on
Origination
Date | | | U.S. $
Current
Value | | Unrealized
Appreciation | |
| Australian dollar | | Buy | | Morgan Stanley | | 1/31/2020 | | 2,000 | | $ | 1,381 | | | $ | 1,404 | | | $ | 23 | |
| British pound | | Buy | | Citibank | | 3/5/2020 | | 54,000 | | | 71,300 | | | | 71,651 | | | | 351 | |
| Canadian dollar | | Buy | | Morgan Stanley | | 3/5/2020 | | 7,000 | | | 5,306 | | | | 5,392 | | | | 86 | |
| Colombian peso | | Buy | | Bank of America | | 1/27/2020 | | 181,951,000 | | | 53,458 | | | | 55,302 | | | | 1,844 | |
| euro | | Buy | | Barclays Bank plc | | 1/2/2020 | | 100,000 | | | 111,323 | | | | 112,170 | | | | 847 | |
| euro | | Buy | | J.P. Morgan | | 3/9/2020 | | 11,000 | | | 12,246 | | | | 12,390 | | | | 144 | |
| euro | | Buy | | Morgan Stanley | | 3/9/2020 | | 104,000 | | | 116,314 | | | | 117,138 | | | | 824 | |
| euro | | Buy | | Morgan Stanley | | 3/9/2020 | | 31,000 | | | 34,647 | | | | 34,916 | | | | 269 | |
| euro | | Buy | | State Street Bank and Trust | | 3/9/2020 | | 128,000 | | | 143,079 | | | | 144,170 | | | | 1,091 | |
| euro | | Buy | | Toronto Dominion Bank | | 3/9/2020 | | 98,000 | | | 109,744 | | | | 110,380 | | | | 636 | |
| Japanese yen | | Buy | | Morgan Stanley | | 1/31/2020 | | 1,890,000 | | | 17,321 | | | | 17,418 | | | | 97 | |
| Mexican peso | | Buy | | Barclays Bank plc | | 3/17/2020 | | 583,000 | | | 30,175 | | | | 30,498 | | | | 323 | |
| New Zealand dollar | | Buy | | Bank of America | | 1/28/2020 | | 83,000 | | | 53,369 | | | | 55,893 | | | | 2,524 | |
| Russian ruble | | Buy | | J.P. Morgan | | 3/11/2020 | | 2,550,000 | | | 39,704 | | | | 40,779 | | | | 1,075 | |
| South Korean won | | Buy | | Barclays Bank plc | | 2/27/2020 | | 140,000,000 | | | 119,462 | | | | 121,247 | | | | 1,785 | |
| Swedish krona | | Buy | | J.P. Morgan | | 1/27/2020 | | 205,000 | | | 21,373 | | | | 21,913 | | | | 540 | |
| Swiss franc | | Buy | | Citibank | | 1/31/2020 | | 54,000 | | | 54,685 | | | | 55,895 | | | | 1,210 | |
| Yuan Renminbi Offshore | | Buy | | Barclays Bank plc | | 2/4/2020 | | 500,000 | | | 70,816 | | | | 71,779 | | | | 963 | |
| Hungarian forint | | Sell | | Citibank | | 1/27/2020 | | 7,865,000 | | | 26,751 | | | | 26,687 | | | | 64 | |
| Japanese yen | | Sell | | Citibank | | 1/31/2020 | | 2,125,000 | | | 19,608 | | | | 19,583 | | | | 25 | |
| Japanese yen | | Sell | | Citibank | | 1/31/2020 | | 5,900,000 | | | 54,513 | | | | 54,372 | | | | 141 | |
| Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | | | | | | | | $ | 14,862 | |
| 52 | See Notes to Financial Statements. | |
Schedule of Investments (continued)
GLOBAL BOND FUNDDecember 31, 2019
Forward
Foreign
Currency
Exchange
Contracts | | Transaction
Type | | Counterparty | | Expiration
Date | | Foreign
Currency | | U.S. $
Cost on
Origination
Date | | | U.S. $
Current
Value | | Unrealized
Depreciation | |
| Japanese yen | | Buy | | Morgan Stanley | | 1/31/2020 | | 158,750,000 | | $ | 1,466,049 | | | $ | 1,462,980 | | | $ | (3,069 | ) |
| Turkish lira | | Buy | | Citibank | | 1/24/2020 | | 316,000 | | | 53,648 | | | | 52,823 | | | | (825 | ) |
| Australian dollar | | Sell | | Barclays Bank plc | | 1/31/2020 | | 141,000 | | | 96,886 | | | | 99,017 | | | | (2,131 | ) |
| Brazilian real | | Sell | | Citibank | | 3/6/2020 | | 84,000 | | | 19,950 | | | | 20,831 | | | | (881 | ) |
| British pound | | Sell | | Toronto Dominion Bank | | 3/5/2020 | | 354,000 | | | 466,889 | | | | 469,712 | | | | (2,823 | ) |
| British pound | | Sell | | Toronto Dominion Bank | | 3/5/2020 | | 97,000 | | | 128,352 | | | | 128,707 | | | | (355 | ) |
| euro | | Sell | | Barclays Bank plc | | 3/9/2020 | | 100,000 | | | 111,790 | | | | 112,633 | | | | (843 | ) |
| euro | | Sell | | Morgan Stanley | | 3/9/2020 | | 121,000 | | | 135,096 | | | | 136,286 | | | | (1,190 | ) |
| Indonesian rupiah | | Sell | | Barclays Bank plc | | 3/13/2020 | | 334,000,000 | | | 23,569 | | | | 24,009 | | | | (440 | ) |
| Malaysian ringgit | | Sell | | Barclays Bank plc | | 2/6/2020 | | 220,000 | | | 52,961 | | | | 53,904 | | | | (943 | ) |
| Peruvian Nuevo sol | | Sell | | Citibank | | 1/27/2020 | | 180,000 | | | 53,623 | | | | 54,288 | | | | (665 | ) |
| South African rand | | Sell | | Morgan Stanley | | 3/11/2020 | | 437,000 | | | 29,383 | | | | 30,923 | | | | (1,540 | ) |
| Taiwan dollar | | Sell | | J.P. Morgan | | 1/30/2020 | | 1,618,000 | | | 53,477 | | | | 54,194 | | | | (717 | ) |
| Thai baht | | Sell | | Bank of America | | 1/27/2020 | | 1,620,000 | | | 53,481 | | | | 54,115 | | | | (634 | ) |
| Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | | | | | | | | $ | (17,056 | ) |
Open Futures Contracts at December 31, 2019:
| Type | | Expiration | | Contracts | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Appreciation | |
| U.S. 2-Year Treasury Note | | March 2020 | | 2 | | Short | | $ | (431,246 | ) | | $ | (431,000 | ) | | $ | 246 | |
| | | | | | | | | | | | | | | | | | | |
| Type | | Expiration | | Contracts | | Position | | Notional
Amount | | | Notional
Value | | Unrealized
Depreciation | |
| U.S. 5-Year Treasury Note | | March 2020 | | 3 | | Long | | $ | 357,146 | | | $ | 355,829 | | | $ | (1,317 | ) |
| | See Notes to Financial Statements. | 53 |
Schedule of Investments (concluded)
GLOBAL BOND FUNDDecember 31, 2019
The following is a summary of the inputs used as of December 31, 2019 in valuing the Fund’s investments carried at fair value(1):
| Investment Type(2) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | | | | | |
| Asset-Backed Securities | | $ | – | | | $ | 784,688 | | | $ | – | | | $ | 784,688 | |
| Corporate Bonds | | | – | | | | 5,726,689 | | | | – | | | | 5,726,689 | |
| Floating Rate Loans | | | – | | | | 109,633 | | | | – | | | | 109,633 | |
| Foreign Government Obligations | | | – | | | | 1,892,488 | | | | – | | | | 1,892,488 | |
| Government Sponsored Enterprises Pass-Throughs | | | – | | | | 778,769 | | | | – | | | | 778,769 | |
| Non-Agency Commercial Mortgage-Backed Securities | | | – | | | | 280,171 | | | | – | | | | 280,171 | |
| U.S. Treasury Obligations | | | – | | | | 1,110,417 | | | | – | | | | 1,110,417 | |
| Short-Term Investments | | | | | | | | | | | | | | | | |
| Foreign Government Obligation | | | – | | | | 49,221 | | | | – | | | | 49,221 | |
| Repurchase Agreement | | | – | | | | 805,163 | | | | – | | | | 805,163 | |
| Total | | $ | – | | | $ | 11,537,239 | | | $ | – | | | $ | 11,537,239 | |
| Other Financial Instruments | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts | | | | | | | | | | | | | | | | |
| Assets | | $ | – | | | $ | 16,987 | | | $ | – | | | $ | 16,987 | |
| Liabilities | | | – | | | | – | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | |
| Assets | | | – | | | | 14,862 | | | | – | | | | 14,862 | |
| Liabilities | | | – | | | | (17,056 | ) | | | – | | | | (17,056 | ) |
| Futures Contracts | | | | | | | | | | | | | | | | |
| Assets | | | 246 | | | | – | | | | – | | | | 246 | |
| Liabilities | | | (1,317 | ) | | | – | | | | – | | | | (1,317 | ) |
| Total | | $ | (1,071 | ) | | $ | 14,793 | | | $ | – | | | $ | 13,722 | |
| (1) | | Refer to Note 2(q) 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. |
| 54 | See Notes to Financial Statements. | |
Statements of Assets and Liabilities
December 31, 2019
| | | Emerging
Markets Bond
Fund | | | Emerging Markets
Corporate Debt
Fund | |
| ASSETS: | | | | | | | | |
| Investments in securities, at cost | | $ | 167,203,728 | | | �� $ | 59,389,841 | |
| Investments in securities, at fair value | | $ | 178,598,038 | | | $ | 61,636,676 | |
| Cash | | | 584,220 | | | | 643,959 | |
| Deposits with brokers for futures collateral | | | 751,000 | | | | 81,300 | |
| Deposits with brokers for swaps collateral | | | 100,003 | | | | 288,467 | |
| Receivables: | | | | | | | | |
| Interest and dividends | | | 2,587,327 | | | | 819,578 | |
| Capital shares sold | | | 776,338 | | | | 408,762 | |
| Investment securities sold | | | 331,700 | | | | – | |
| From advisor (See Note 3) | | | 456 | | | | 33,146 | |
| Variation margin for futures contracts | | | 629 | | | | 24,848 | |
| Variation margin for centrally cleared credit default swap agreements | | | – | | | | 279 | |
| Credit default swap agreements receivable, at fair value (including upfront payments of $1,702 and $84, respectively) | | | 3,153 | | | | 157 | |
| Prepaid expenses and other assets | | | 25,304 | | | | 46,918 | |
| Total assets | | | 183,758,168 | | | | 63,984,090 | |
| LIABILITIES: | | | | | | | | |
| Payables: | | | | | | | | |
| Investment securities purchased | | | 913,579 | | | | 631,242 | |
| Capital shares reacquired | | | 195,076 | | | | 59,262 | |
| Management fee | | | 76,259 | | | | 36,351 | |
| Directors’ fees | | | 51,943 | | | | 3,098 | |
| 12b-1 distribution plan | | | 11,026 | | | | 8,201 | |
| Fund administration | | | 6,101 | | | | 2,077 | |
| Unrealized depreciation on forward foreign currency exchange contracts | | | 35,458 | | | | 5,078 | |
| Interest payable | | | 46 | | | | – | |
| Distributions payable | | | 735,025 | | | | 214,760 | |
| Accrued expenses | | | 135,825 | | | | 71,405 | |
| Total liabilities | | | 2,160,338 | | | | 1,031,474 | |
| Commitments and contingent liabilities | | | | | | | | |
| NET ASSETS | | $ | 181,597,830 | | | $ | 62,952,616 | |
| COMPOSITION OF NET ASSETS: | | | | | | | | |
| Paid-in capital | | $ | 281,347,816 | | | $ | 62,625,374 | |
| Total distributable earnings (loss) | | | (99,749,986 | ) | | | 327,242 | |
| Net Assets | | $ | 181,597,830 | | | $ | 62,952,616 | |
| | See Notes to Financial Statements. | 55 |
Statements of Assets and Liabilities (continued)
December 31, 2019
| | | Emerging
Markets Bond
Fund | | | Emerging Markets
Corporate Debt
Fund | |
| | | | | | | | | |
| Net assets by class: | | | | | | | | |
| Class A Shares | | $ | 13,433,487 | | | $ | 11,659,548 | |
| Class C Shares | | $ | 1,440,815 | | | $ | 2,306,825 | |
| Class F Shares | | $ | 5,064,496 | | | $ | 42,659,985 | |
| Class F3 Shares | | $ | 709,804 | | | $ | 11,590 | |
| Class I Shares | | $ | 160,122,343 | | | $ | 5,634,598 | |
| Class R2 Shares | | $ | 52,362 | | | $ | 141,487 | |
| Class R3 Shares | | $ | 194,263 | | | $ | 147,413 | |
| Class R4 Shares | | $ | 138,179 | | | $ | 15,306 | |
| Class R5 Shares | | $ | 11,986 | | | $ | 248,242 | |
| Class R6 Shares | | $ | 430,095 | | | $ | 127,622 | |
| Outstanding shares by class: | | | | | | | | |
| Class A Shares (534 and 513 million shares of common stock authorized, $.001 par value) | | | 2,537,621 | | | | 750,292 | |
| Class C Shares (100 and 85 million shares of common stock authorized, $.001 par value) | | | 270,549 | | | | 148,441 | |
| Class F Shares (200.3 and 114 million shares of common stock authorized, $.001 par value) | | | 957,501 | | | | 2,744,393 | |
| Class F3 Shares (66.8 and 57 million shares of common stock authorized, $.001 par value) | | | 134,285 | | | | 746 | |
| Class I Shares (300.4 and 228 million shares of common stock authorized, $.001 par value) | | | 30,299,490 | | | | 362,864 | |
| Class R2 Shares (26.7 and 28.6 million shares of common stock authorized, $.001 par value) | | | 9,871 | | | | 9,107 | |
| Class R3 Shares (26.7 and 28.6 million shares of common stock authorized, $.001 par value) | | | 36,758 | | | | 9,487 | |
| Class R4 Shares (26.7 and 28.6 million shares of common stock authorized, $.001 par value) | | | 26,121 | | | | 985.37 | |
| Class R5 Shares (26.7 and 28.6 million shares of common stock authorized, $.001 par value) | | | 2,268 | | | | 15,974 | |
| Class R6 Shares (26.7 and 28.6 million shares of common stock authorized, $.001 par value) | | | 81,359 | | | | 8,211 | |
| Net asset value, offering and redemption price per share (Net assets divided by outstanding shares): | | | | | | | | |
| Class A Shares-Net asset value | | | $5.29 | | | | $15.54 | |
| Class A Shares-Maximum offering price (Net asset value plus sales charge of 2.25%) | | | $5.41 | | | | $15.90 | |
| Class C Shares-Net asset value | | | $5.33 | | | | $15.54 | |
| Class F Shares-Net asset value | | | $5.29 | | | | $15.54 | |
| Class F3 Shares-Net asset value | | | $5.29 | | | | $15.54 | |
| Class I Shares-Net asset value | | | $5.28 | | | | $15.53 | |
| Class R2 Shares-Net asset value | | | $5.30 | | | | $15.54 | |
| Class R3 Shares-Net asset value | | | $5.28 | | | | $15.54 | |
| Class R4 Shares-Net asset value | | | $5.29 | | | | $15.53 | |
| Class R5 Shares-Net asset value | | | $5.28 | | | | $15.54 | |
| Class R6 Shares-Net asset value | | | $5.29 | | | | $15.54 | |
| 56 | See Notes to Financial Statements. |
Statements of Assets and Liabilities (continued)
December 31, 2019
| | Global Bond
Fund | |
| ASSETS: | | | | |
| Investments in securities, at cost | | $ | 11,288,217 | |
| Investments in securities, at fair value | | $ | 11,537,239 | |
| Deposits with brokers for futures collateral | | | 1,316 | |
| Deposits with brokers for swaps collateral | | | 186,846 | |
| Foreign cash, at value (cost $2,141) | | | 2,188 | |
| Receivables: | | | | |
| Interest and dividends | | | 104,337 | |
| Capital shares sold | | | 29,284 | |
| From advisor (See Note 3) | | | 24,259 | |
| Investment securities sold | | | 28 | |
| Variation margin for centrally cleared credit default swap agreements | | | 181 | |
| Unrealized appreciation on forward foreign currency exchange contracts | | | 14,862 | |
| Prepaid expenses | | | 36,901 | |
| Total assets | | | 11,937,441 | |
| LIABILITIES: | | | | |
| Payables: | | | | |
| Investment securities purchased | | | 935,148 | |
| Management fee | | | 3,946 | |
| 12b-1 distribution plan | | | 963 | |
| Fund administration | | | 367 | |
| Directors’ fees | | | 324 | |
| Variation margin on futures contracts | | | 138 | |
| Unrealized depreciation on forward foreign currency exchange contracts | | | 17,056 | |
| Distributions payable | | | 29,284 | |
| Accrued expenses | | | 55,735 | |
| Total liabilities | | | 1,042,961 | |
| Commitments and contingent liabilities | | | | |
| NET ASSETS | | $ | 10,894,480 | |
| COMPOSITION OF NET ASSETS: | | | | |
| Paid-in capital | | $ | 10,729,208 | |
| Total distributable earnings (loss) | | | 165,272 | |
| Net Assets | | $ | 10,894,480 | |
| | See Notes to Financial Statements. | 57 |
Statements of Assets and Liabilities (concluded)
December 31, 2019
| | Global Bond
Fund | |
| | | | | |
| Net assets by class: | | | | |
| Class A Shares | | $ | 2,151,090 | |
| Class C Shares | | $ | 276,867 | |
| Class F Shares | | $ | 2,138,997 | |
| Class F3 Shares | | $ | 1,607,003 | |
| Class I Shares | | $ | 2,138,997 | |
| Class R3 Shares | | $ | 265,482 | |
| Class R4 Shares | | $ | 266,430 | |
| Class R5 Shares | | $ | 267,382 | |
| Class R6 Shares | | $ | 1,782,232 | |
| Outstanding shares by class: | | | | |
| Class A Shares (770 million shares of common stock authorized, $.001 par value) | | | 212,413 | |
| Class C Shares (100 million shares of common stock authorized, $.001 par value) | | | 27,339 | |
| Class F Shares (192.5 million shares of common stock authorized, $.001 par value) | | | 211,219 | |
| Class F3 Shares (192.5 million shares of common stock authorized, $.001 par value) | | | 158,686 | |
| Class I Shares (385 million shares of common stock authorized, $.001 par value) | | | 211,219 | |
| Class R3 Shares (28.9 shares of common stock authorized, $.001 par value) | | | 26,215 | |
| Class R4 Shares (28.9 shares of common stock authorized, $.001 par value) | | | 26,309 | |
| Class R5 Shares (28.9 shares of common stock authorized, $.001 par value) | | | 26,403 | |
| Class R6 Shares (178.4 shares of common stock authorized, $.001 par value) | | | 175,988 | |
| Net asset value, offering and redemption price per share (Net assets divided by outstanding shares): | | | | |
| Class A Shares-Net asset value | | | $10.13 | |
| Class A Shares-Maximum offering price (Net asset value plus sales charge of 2.25%) | | | $10.36 | |
| Class C Shares-Net asset value | | | $10.13 | |
| Class F Shares-Net asset value | | | $10.13 | |
| Class F3 Shares-Net asset value | | | $10.13 | |
| Class I Shares-Net asset value | | | $10.13 | |
| Class R3 Shares-Net asset value | | | $10.13 | |
| Class R4 Shares-Net asset value | | | $10.13 | |
| Class R5 Shares-Net asset value | | | $10.13 | |
| Class R6 Shares-Net asset value | | | $10.13 | |
| 58 | See Notes to Financial Statements. |
Statements of Operations
For the Year Ended December 31, 2019
| | | Emerging
Markets Bond
Fund | | | Emerging Markets
Corporate Debt
Fund | |
| Investment income: | | | | | | | | |
| Dividends | | $ | – | | | $ | 248 | |
| Interest and other (net of foreign withholding taxes of $0 and $1,403 respectively) | | | 10,649,047 | | | | 2,428,590 | |
| Total investment income | | | 10,649,047 | | | | 2,428,838 | |
| Expenses: | | | | | | | | |
| Management fee | | | 905,236 | | | | 322,355 | |
| 12b-1 distribution plan-Class A | | | 23,833 | | | | 20,902 | |
| 12b-1 distribution plan-Class C | | | 13,342 | | | | 17,597 | |
| 12b-1 distribution plan-Class F | | | 5,144 | | | | 28,921 | |
| 12b-1 distribution plan-Class R2 | | | 387 | | | | 807 | |
| 12b-1 distribution plan-Class R3 | | | 1,391 | | | | 684 | |
| 12b-1 distribution plan-Class R4 | | | 230 | | | | 37 | |
| Registration | | | 139,667 | | | | 118,568 | |
| Professional | | | 86,358 | | | | 55,333 | |
| Shareholder servicing | | | 44,844 | | | | 80,782 | |
| Reports to shareholders | | | 77,721 | | | | 24,159 | |
| Fund administration | | | 72,419 | | | | 18,420 | |
| Custody | | | – | | | | 7,687 | |
| Directors’ fees | | | 5,250 | | | | 1,268 | |
| Other | | | 44,423 | | | | 24,827 | |
| Gross expenses | | | 1,420,245 | | | | 722,347 | |
| Expense reductions (See Note 9) | | | (652 | ) | | | (1,460 | ) |
| Fees waived and expenses reimbursed (See Note 3) | | | (5,144 | ) | | | (260,679 | ) |
| Net expenses | | | 1,414,449 | | | | 460,208 | |
| Net investment income | | | 9,234,598 | | | | 1,968,630 | |
| Net realized and unrealized gain (loss): | | | | | | | | |
| Net realized loss on investments | | | (1,155,490 | ) | | | (212,386 | ) |
| Net realized gain (loss) on futures contracts | | | 541,736 | | | | (432,046 | ) |
| Net realized gain on forward foreign currency exchange contracts | | | 210,883 | | | | 10,383 | |
| Net realized gain on swap contracts | | | 51,344 | | | | 18,764 | |
| Net realized loss on foreign currency related transactions | | | (18,601 | ) | | | (2,048 | ) |
| Net change in unrealized appreciation/depreciation on investments | | | 18,218,976 | | | | 4,247,255 | |
| Net change in unrealized appreciation/depreciation on futures contracts | | | (181,365 | ) | | | 180,587 | |
| Net change in unrealized appreciation/depreciation on forward foreign currency exchange contracts | | | (16,435 | ) | | | (5,078 | ) |
| Net change in unrealized appreciation/depreciation on swap contracts | | | 30,385 | | | | 30,683 | |
| Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies | | | 373 | | | | 51 | |
| Net realized and unrealized gain | | | 17,681,806 | | | | 3,836,165 | |
| Net Increase in Net Assets Resulting From Operations | | $ | 26,916,404 | | | $ | 5,804,795 | |
| | See Notes to Financial Statements. | 59 |
Statements of Operations (concluded)
For the Year Ended December 31, 2019
| | Global Bond
Fund | |
| Investment income: | | | | |
| Interest and other (net of foreign withholding tax of $1,855) | | $ | 351,196 | |
| Total investment income | | | 351,196 | |
| Expenses: | | | | |
| Management fee | | | 45,230 | |
| 12b-1 distribution plan-Class A | | | 4,156 | |
| 12b-1 distribution plan-Class C | | | 2,591 | |
| 12b-1 distribution plan-Class F | | | 2,070 | |
| 12b-1 distribution plan-Class R3 | | | 1,288 | |
| 12b-1 distribution plan-Class R4 | | | 645 | |
| Registration | | | 78,433 | |
| Offering costs | | | 60,801 | |
| Professional | | | 54,357 | |
| Custody | | | 25,450 | |
| Reports to shareholders | | | 7,860 | |
| Shareholder servicing | | | 4,985 | |
| Fund administration | | | 4,207 | |
| Directors’ fees | | | 297 | |
| Other | | | 14,266 | |
| Gross expenses | | | 306,636 | |
| Expense reductions (See Note 9) | | | (236 | ) |
| Fees waived and expenses reimbursed (See Note 3) | | | (240,625 | ) |
| Net expenses | | | 65,775 | |
| Net investment income | | | 285,421 | |
| Net realized and unrealized gain: | | | | |
| Net realized gain on investments | | | 78,476 | |
| Net realized loss on futures contracts | | | (4,163 | ) |
| Net realized gain on forward foreign currency exchange contracts | | | 23,538 | |
| Net realized gain on swap contracts | | | 16,023 | |
| Net realized loss on foreign currency related transactions | | | (19,183 | ) |
| Net change in unrealized appreciation/depreciation on investments | | | 484,602 | |
| Net change in unrealized appreciation/depreciation on futures contracts | | | (2,328 | ) |
| Net change in unrealized appreciation/depreciation on forward foreign currency exchange contracts | | | (34,936 | ) |
| Net change in unrealized appreciation/depreciation on swap contracts | | | 20,175 | |
| Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies | | | 976 | |
| Net realized and unrealized gain | | | 563,180 | |
| Net Increase in Net Assets Resulting From Operations | | $ | 848,601 | |
| 60 | See Notes to Financial Statements. |
Statements of Changes in Net Assets
| | | Emerging Markets Bond Fund |
| INCREASE (DECREASE) IN NET ASSETS | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| Operations: | | | | | | | | | | |
| Net investment income | | | $ | 9,234,598 | | | | $ | 7,139,676 | |
| Net realized loss on investments, futures contracts, forward foreign currency exchange contracts, swaps and foreign currency related transactions | | | | (370,128 | ) | | | | (9,999,041 | ) |
| Net change in unrealized appreciation/depreciation on investments, futures contracts, forward foreign currency exchange contracts, swaps and translation of assets and liabilities denominated in foreign currencies | | | | 18,051,934 | | | | | (8,984,042 | ) |
| Net increase (decrease) in net assets resulting from operations | | | | 26,916,404 | | | | | (11,843,407 | ) |
| Distributions to shareholders: | | | | | | | | | | |
| Class A | | | | (601,673 | ) | | | | (610,286 | ) |
| Class B | | | | – | | | | | (67 | ) |
| Class C | | | | (72,757 | ) | | | | (95,282 | ) |
| Class F | | | | (266,585 | ) | | | | (328,831 | ) |
| Class F3 | | | | (30,070 | ) | | | | (19,691 | ) |
| Class I | | | | (8,492,699 | ) | | | | (7,650,080 | ) |
| Class R2 | | | | (3,036 | ) | | | | (3,022 | ) |
| Class R3 | | | | (13,283 | ) | | | | (11,364 | ) |
| Class R4 | | | | (4,574 | ) | | | | (4,365 | ) |
| Class R5 | | | | (636 | ) | | | | (805 | ) |
| Class R6 | | | | (19,393 | ) | | | | (20,341 | ) |
| Return of capital | | | | | | | | | | |
| Class A | | | | – | | | | | (119,463 | ) |
| Class B | | | | – | | | | | (13 | ) |
| Class C | | | | – | | | | | (18,652 | ) |
| Class F | | | | – | | | | | (64,368 | ) |
| Class F3 | | | | – | | | | | (3,855 | ) |
| Class I | | | | – | | | | | (1,497,504 | ) |
| Class R2 | | | | – | | | | | (592 | ) |
| Class R3 | | | | – | | | | | (2,224 | ) |
| Class R4 | | | | – | | | | | (855 | ) |
| Class R5 | | | | – | | | | | (157 | ) |
| Class R6 | | | | – | | | | | (3,982 | ) |
| Total distributions to shareholders | | | | (9,504,706 | ) | | | | (10,455,799 | ) |
| Capital share transactions (Net of share conversions) (See Note 15): | | | | | | | | | | |
| Net proceeds from sales of shares | | | | 9,849,038 | | | | | 44,806,767 | |
| Reinvestment of distributions | | | | 9,428,858 | | | | | 10,226,356 | |
| Cost of shares reacquired | | | | (36,448,036 | ) | | | | (70,149,775 | ) |
| Net decrease in net assets resulting from capital share transactions | | | | (17,170,140 | ) | | | | (15,116,652 | ) |
| Net increase (decrease) in net assets | | | | 241,558 | | | | | (37,415,858 | ) |
| NET ASSETS: | | | | | | | | | | |
| Beginning of year | | | $ | 181,356,272 | | | | $ | 218,772,130 | |
| End of year | | | $ | 181,597,830 | | | | $ | 181,356,272 | |
| | See Notes to Financial Statements. | 61 |
Statements of Changes in Net Assets (continued)
| | | Emerging Markets Corporate Debt Fund |
| INCREASE (DECREASE) IN NET ASSETS | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| Operations: | | | | | | | | | | |
| Net investment income | | | $ | 1,968,630 | | | | $ | 2,197,536 | |
| Net realized loss on investments, futures contracts, forward foreign currency exchange contracts, swaps and foreign currency related transactions | | | | (617,333 | ) | | | | (977,186 | ) |
| Net change in unrealized appreciation/depreciation on investments, futures contracts, forward foreign currency exchange contracts, swaps and translation of assets and liabilities denominated in foreign currencies | | | | 4,453,498 | | | | | (3,437,816 | ) |
| Net increase (decrease) in net assets resulting from operations | | | | 5,804,795 | | | | | (2,217,466 | ) |
| Distributions to shareholders: | | | | | | | | | | |
| Class A | | | | (467,374 | ) | | | | (525,395 | ) |
| Class C | | | | (81,599 | ) | | | | (87,597 | ) |
| Class F | | | | (1,313,265 | ) | | | | (1,336,146 | ) |
| Class F3 | | | | (530 | ) | | | | (504 | ) |
| Class I | | | | (184,187 | ) | | | | (441,684 | ) |
| Class R2 | | | | (5,507 | ) | | | | (6,030 | ) |
| Class R3 | | | | (5,729 | ) | | | | (6,069 | ) |
| Class R4 | | | | (657 | ) | | | | (907 | ) |
| Class R5 | | | | (11,796 | ) | | | | (5,238 | ) |
| Class R6 | | | | (5,362 | ) | | | | (1,003 | ) |
| Total distributions to shareholders | | | | (2,076,006 | ) | | | | (2,410,573 | ) |
| Capital share transactions (See Note 15): | | | | | | | | | | |
| Net proceeds from sales of shares | | | | 34,224,422 | | | | | 28,135,455 | |
| Reinvestment of distributions | | | | 2,057,879 | | | | | 2,376,352 | |
| Cost of shares reacquired | | | | (21,329,236 | ) | | | | (37,361,261 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | | 14,953,065 | | | | | (6,849,454 | ) |
| Net increase (decrease) in net assets | | | | 18,681,854 | | | | | (11,477,493 | ) |
| NET ASSETS: | | | | | | | | | | |
| Beginning of year | | | $ | 44,270,762 | | | | $ | 55,748,255 | |
| End of year | | | $ | 62,952,616 | | | | $ | 44,270,762 | |
| 62 | See Notes to Financial Statements. |
Statements of Changes in Net Assets (concluded)
| | | Global Bond Fund |
| INCREASE IN NET ASSETS | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018* | |
| Operations: | | | | | | | | | | |
| Net investment income | | | $ | 285,421 | | | | $ | 119,551 | |
| Net realized gain (loss) on investments, futures contracts, forward foreign currency exchange contracts, swaps and foreign currency related transactions | | | | 94,691 | | | | | (61,325 | ) |
| Net change in unrealized appreciation/depreciation on investments, futures contracts, forward foreign currency exchange contracts, swaps and translation of assets and liabilities denominated in foreign currencies | | | | 468,489 | | | | | (205,522 | ) |
| Net increase (decrease) in net assets resulting from operations | | | | 848,601 | | | | | (147,296 | ) |
| Distributions to shareholders: | | | | | | | | | | |
| Class A | | | | (78,469 | ) | | | | (27,918 | ) |
| Class C | | | | (7,901 | ) | | | | (2,632 | ) |
| Class F | | | | (82,306 | ) | | | | (29,639 | ) |
| Class F3 | | | | (63,670 | ) | | | | (23,001 | ) |
| Class I | | | | (82,307 | ) | | | | (29,638 | ) |
| Class R3 | | | | (8,956 | ) | | | | (3,168 | ) |
| Class R4 | | | | (9,621 | ) | | | | (3,437 | ) |
| Class R5 | | | | (10,291 | ) | | | | (3,706 | ) |
| Class R6 | | | | (69,992 | ) | | | | (23,254 | ) |
| Total distributions to shareholders | | | | (413,513 | ) | | | | (146,393 | ) |
| Capital share transactions (See Note 15): | | | | | | | | | | |
| Net proceeds from sales of shares | | | | 68,430 | | | | | 10,131,452 | |
| Reinvestment of distributions | | | | 407,190 | | | | | 146,129 | |
| Cost of shares reacquired | | | | (120 | ) | | | | – | |
| Net increase in net assets resulting from capital share transactions | | | | 475,500 | | | | | 10,277,581 | |
| Net increase in net assets | | | | 910,588 | | | | | 9,983,892 | |
| NET ASSETS: | | | | | | | | | | |
| Beginning of year | | | $ | 9,983,892 | | | | $ | – | |
| End of year | | | $ | 10,894,480 | | | | $ | 9,983,892 | |
| * | For the period July 26, 2018, commencement of operations, to December 31, 2018. |
| | See Notes to Financial Statements. | 63 |
Financial Highlights
EMERGING MARKETS BOND FUND
| | | | | | Per Share Operating Performance: |
| | | | | | Investment Operations: | | Distributions to
shareholders from: |
| | | Net asset
value,
beginning
of period | | Net
invest-
ment
income(a) | | Net
realized
and
unrealized
gain (loss) | | Total
from
invest-
ment
opera-
tions | | Net
investment
income | | Return of
capital | | Total
distri-
butions |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | $4.80 | | | | $0.25 | | | | $0.50 | | | | $0.75 | | | | $(0.26 | ) | | | $ – | | | | $(0.26 | ) |
| 12/31/2018 | | | 5.42 | | | | 0.18 | | | | (0.53 | ) | | | (0.35 | ) | | | (0.22 | ) | | | (0.05 | ) | | | (0.27 | ) |
| 12/31/2017 | | | 5.11 | | | | 0.10 | | | | 0.44 | | | | 0.54 | | | | (0.23 | ) | | | – | | | | (0.23 | ) |
| 12/31/2016 | | | 5.10 | | | | 0.08 | | | | 0.21 | | | | 0.29 | | | | (0.28 | ) | | | – | | | | (0.28 | ) |
| 12/31/2015 | | | 5.76 | | | | 0.06 | | | | (0.57 | ) | | | (0.51 | ) | | | (0.07 | ) | | | (0.08 | ) | | | (0.15 | ) |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.83 | | | | 0.22 | | | | 0.51 | | | | 0.73 | | | | (0.23 | ) | | | – | | | | (0.23 | ) |
| 12/31/2018 | | | 5.45 | | | | 0.15 | | | | (0.53 | ) | | | (0.38 | ) | | | (0.20 | ) | | | (0.04 | ) | | | (0.24 | ) |
| 12/31/2017 | | | 5.14 | | | | 0.07 | | | | 0.44 | | | | 0.51 | | | | (0.20 | ) | | | – | | | | (0.20 | ) |
| 12/31/2016 | | | 5.13 | | | | 0.05 | | | | 0.21 | | | | 0.26 | | | | (0.25 | ) | | | – | | | | (0.25 | ) |
| 12/31/2015 | | | 5.79 | | | | 0.03 | | | | (0.57 | ) | | | (0.54 | ) | | | (0.06 | ) | | | (0.06 | ) | | | (0.12 | ) |
| Class F | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.26 | | | | 0.50 | | | | 0.76 | | | | (0.27 | ) | | | – | | | | (0.27 | ) |
| 12/31/2018 | | | 5.42 | | | | 0.17 | | | | (0.51 | ) | | | (0.34 | ) | | | (0.24 | ) | | | (0.04 | ) | | | (0.28 | ) |
| 12/31/2017 | | | 5.11 | | | | 0.10 | | | | 0.45 | | | | 0.55 | | | | (0.24 | ) | | | – | | | | (0.24 | ) |
| 12/31/2016 | | | 5.10 | | | | 0.08 | | | | 0.21 | | | | 0.29 | | | | (0.28 | ) | | | – | | | | (0.28 | ) |
| 12/31/2015 | | | 5.76 | | | | 0.07 | | | | (0.57 | ) | | | (0.50 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.16 | ) |
| Class F3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.26 | | | | 0.50 | | | | 0.76 | | | | (0.27 | ) | | | – | | | | (0.27 | ) |
| 12/31/2018 | | | 5.41 | | | | 0.20 | | | | (0.53 | ) | | | (0.33 | ) | | | (0.23 | ) | | | (0.05 | ) | | | (0.28 | ) |
| 4/4/2017 to 12/31/2017(c) | | | 5.31 | | | | 0.08 | | | | 0.21 | | | | 0.29 | | | | (0.19 | ) | | | – | | | | (0.19 | ) |
| Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.26 | | | | 0.49 | | | | 0.75 | | | | (0.27 | ) | | | – | | | | (0.27 | ) |
| 12/31/2018 | | | 5.41 | | | | 0.20 | | | | (0.53 | ) | | | (0.33 | ) | | | (0.23 | ) | | | (0.05 | ) | | | (0.28 | ) |
| 12/31/2017 | | | 5.10 | | | | 0.11 | | | | 0.44 | | | | 0.55 | | | | (0.24 | ) | | | – | | | | (0.24 | ) |
| 12/31/2016 | | | 5.09 | | | | 0.09 | | | | 0.21 | | | | 0.30 | | | | (0.29 | ) | | | – | | | | (0.29 | ) |
| 12/31/2015 | | | 5.75 | | | | 0.07 | | | | (0.57 | ) | | | (0.50 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.16 | ) |
| Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.82 | | | | 0.23 | | | | 0.49 | | | | 0.72 | | | | (0.24 | ) | | | – | | | | (0.24 | ) |
| 12/31/2018 | | | 5.43 | | | | 0.17 | | | | (0.53 | ) | | | (0.36 | ) | | | (0.21 | ) | | | (0.04 | ) | | | (0.25 | ) |
| 12/31/2017 | | | 5.12 | | | | 0.08 | | | | 0.44 | | | | 0.52 | | | | (0.21 | ) | | | – | | | | (0.21 | ) |
| 12/31/2016 | | | 5.11 | | | | 0.06 | | | | 0.21 | | | | 0.27 | | | | (0.26 | ) | | | – | | | | (0.26 | ) |
| 12/31/2015 | | | 5.77 | | | | 0.04 | | | | (0.57 | ) | | | (0.53 | ) | | | (0.06 | ) | | | (0.07 | ) | | | (0.13 | ) |
| Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.24 | | | | 0.49 | | | | 0.73 | | | | (0.25 | ) | | | – | | | | (0.25 | ) |
| 12/31/2018 | | | 5.41 | | | | 0.17 | | | | (0.52 | ) | | | (0.35 | ) | | | (0.22 | ) | | | (0.04 | ) | | | (0.26 | ) |
| 12/31/2017 | | | 5.10 | | | | 0.08 | | | | 0.44 | | | | 0.52 | | | | (0.21 | ) | | | – | | | | (0.21 | ) |
| 12/31/2016 | | | 5.09 | | | | 0.06 | | | | 0.21 | | | | 0.27 | | | | (0.26 | ) | | | – | | | | (0.26 | ) |
| 12/31/2015 | | | 5.75 | | | | 0.04 | | | | (0.57 | ) | | | (0.53 | ) | | | (0.06 | ) | | | (0.07 | ) | | | (0.13 | ) |
| 64 | See Notes to Financial Statements. |
| | | | | | | Ratios to Average Net Assets: | | Supplemental Data: |
| | | | | | | | | | | | | |
Net
asset
value,
end of
period | | Total
return(b)
(%) | | Total
expenses
after
waivers
and/or reim-
bursements
(%) | | Total
expenses
(%) | | Net
invest-
ment
income
(%) | | Net
assets,
end of
period
(000) | | Portfolio
turnover
rate
(%) |
| | | | | | | | | | | | | | | | | | | | |
| | $5.29 | | | | 15.91 | | | | 0.96 | | | | 0.96 | | | | 4.89 | | | | $13,433 | | | | 47 | |
| | 4.80 | | | | (6.55 | ) | | | 0.98 | | | | 0.98 | | | | 3.41 | | | | 9,636 | | | | 135 | |
| | 5.42 | | | | 10.73 | | | | 0.94 | | | | 0.94 | | | | 1.84 | | | | 17,746 | | | | 35 | |
| | 5.11 | | | | 5.68 | | | | 0.99 | | | | 0.99 | | | | 1.51 | | | | 18,357 | | | | 90 | |
| | 5.10 | | | | (8.95 | ) | | | 0.98 | | | | 0.98 | | | | 1.10 | | | | 20,466 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.33 | | | | 15.34 | | | | 1.58 | | | | 1.58 | | | | 4.32 | | | | 1,441 | | | | 47 | |
| | 4.83 | | | | (7.06 | ) | | | 1.59 | | | | 1.59 | | | | 2.84 | | | | 1,769 | | | | 135 | |
| | 5.45 | | | | 10.03 | | | | 1.55 | | | | 1.55 | | | | 1.22 | | | | 3,158 | | | | 35 | |
| | 5.14 | | | | 5.03 | | | | 1.60 | | | | 1.60 | | | | 0.91 | | | | 4,025 | | | | 90 | |
| | 5.13 | | | | (9.44 | ) | | | 1.59 | | | | 1.59 | | | | 0.49 | | | | 5,558 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.29 | | | | 16.08 | | | | 0.76 | | | | 0.86 | | | | 5.02 | | | | 5,064 | | | | 47 | |
| | 4.80 | | | | (6.44 | ) | | | 0.84 | | | | 0.87 | | | | 3.36 | | | | 3,821 | | | | 135 | |
| | 5.42 | | | | 10.83 | | | | 0.84 | | | | 0.84 | | | | 1.94 | | | | 7,311 | | | | 35 | |
| | 5.11 | | | | 5.79 | | | | 0.89 | | | | 0.89 | | | | 1.61 | | | | 7,366 | | | | 90 | |
| | 5.10 | | | | (8.86 | ) | | | 0.88 | | | | 0.88 | | | | 1.19 | | | | 9,439 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.29 | | | | 16.15 | | | | 0.75 | | | | 0.75 | | | | 5.08 | | | | 710 | | | | 47 | |
| | 4.80 | | | | (6.19 | ) | | | 0.76 | | | | 0.76 | | | | 3.84 | | | | 429 | | | | 135 | |
| | 5.41 | | | | 5.45 | (d) | | | 0.75 | (e) | | | 0.75 | (e) | | | 2.06 | (e) | | | 457 | | | | 35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.28 | | | | 15.92 | | | | 0.76 | | | | 0.76 | | | | 5.13 | | | | 160,122 | | | | 47 | |
| | 4.80 | | | | (6.19 | ) | | | 0.78 | | | | 0.78 | | | | 3.81 | | | | 164,990 | | | | 135 | |
| | 5.41 | | | | 10.96 | | | | 0.74 | | | | 0.74 | | | | 2.03 | | | | 189,184 | | | | 35 | |
| | 5.10 | | | | 5.90 | | | | 0.79 | | | | 0.79 | | | | 1.71 | | | | 356,968 | | | | 90 | |
| | 5.09 | | | | (8.79 | ) | | | 0.78 | | | | 0.78 | | | | 1.29 | | | | 442,393 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.30 | | | | 15.19 | | | | 1.36 | | | | 1.36 | | | | 4.56 | | | | 52 | | | | 47 | |
| | 4.82 | | | | (6.71 | ) | | | 1.38 | | | | 1.38 | | | | 3.22 | | | | 66 | | | | 135 | |
| | 5.43 | | | | 10.28 | | | | 1.34 | | | | 1.34 | | | | 1.44 | | | | 79 | | | | 35 | |
| | 5.12 | | | | 5.26 | | | | 1.39 | | | | 1.39 | | | | 1.11 | | | | 96 | | | | 90 | |
| | 5.11 | | | | (9.30 | ) | | | 1.38 | | | | 1.38 | | | | 0.70 | | | | 101 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.28 | | | | 15.59 | | | | 1.26 | | | | 1.26 | | | | 4.63 | | | | 194 | | | | 47 | |
| | 4.80 | | | | (6.85 | ) | | | 1.28 | | | | 1.28 | | | | 3.39 | | | | 255 | | | | 135 | |
| | 5.41 | | | | 10.42 | | | | 1.23 | | | | 1.23 | | | | 1.55 | | | | 264 | | | | 35 | |
| | 5.10 | | | | 5.38 | | | | 1.28 | | | | 1.28 | | | | 1.22 | | | | 296 | | | | 90 | |
| | 5.09 | | | | (9.24 | ) | | | 1.27 | | | | 1.27 | | | | 0.81 | | | | 285 | | | | 52 | |
| | See Notes to Financial Statements. | 65 |
Financial Highlights (concluded)
EMERGING MARKETS BOND FUND
| | | | | | Per Share Operating Performance: |
| | | | | | Investment Operations: | | Distributions to
shareholders from: |
| | | Net asset
value,
beginning
of period | | Net
invest-
ment
income(a) | | Net
realized
and
unrealized
gain (loss) | | Total
from
invest-
ment
opera-
tions | | Net
investment
income | | Return of
capital | | Total
distri-
butions |
| Class R4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | $4.80 | | | | $0.25 | | | | $0.50 | | | | $0.75 | | | | $(0.26 | ) | | | $ – | | | | $(0.26 | ) |
| 12/31/2018 | | | 5.42 | | | | 0.18 | | | | (0.53 | ) | | | (0.35 | ) | | | (0.22 | ) | | | (0.05 | ) | | | (0.27 | ) |
| 12/31/2017 | | | 5.11 | | | | 0.10 | | | | 0.44 | | | | 0.54 | | | | (0.23 | ) | | | – | | | | (0.23 | ) |
| 12/31/2016 | | | 5.10 | | | | 0.08 | | | | 0.21 | | | | 0.29 | | | | (0.28 | ) | | | – | | | | (0.28 | ) |
| 6/30/2015 to 12/31/2015(f) | | | 5.53 | | | | 0.03 | | | | (0.39 | ) | | | (0.36 | ) | | | (0.03 | ) | | | (0.04 | ) | | | (0.07 | ) |
| Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.26 | | | | 0.49 | | | | 0.75 | | | | (0.27 | ) | | | – | | | | (0.27 | ) |
| 12/31/2018 | | | 5.41 | | | | 0.20 | | | | (0.52 | ) | | | (0.32 | ) | | | (0.24 | ) | | | (0.05 | ) | | | (0.29 | ) |
| 12/31/2017 | | | 5.10 | | | | 0.11 | | | | 0.44 | | | | 0.55 | | | | (0.24 | ) | | | – | | | | (0.24 | ) |
| 12/31/2016 | | | 5.09 | | | | 0.09 | | | | 0.21 | | | | 0.30 | | | | (0.29 | ) | | | – | | | | (0.29 | ) |
| 6/30/2015 to 12/31/2015(f) | | | 5.52 | | | | 0.04 | | | | (0.39 | ) | | | (0.35 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.08 | ) |
| Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 4.80 | | | | 0.26 | | | | 0.50 | | | | 0.76 | | | | (0.27 | ) | | | – | | | | (0.27 | ) |
| 12/31/2018 | | | 5.41 | | | | 0.19 | | | | (0.51 | ) | | | (0.32 | ) | | | (0.24 | ) | | | (0.05 | ) | | | (0.29 | ) |
| 12/31/2017 | | | 5.10 | | | | 0.11 | | | | 0.44 | | | | 0.55 | | | | (0.24 | ) | | | – | | | | (0.24 | ) |
| 12/31/2016 | | | 5.09 | | | | 0.10 | | | | 0.20 | | | | 0.30 | | | | (0.29 | ) | | | – | | | | (0.29 | ) |
| 6/30/2015 to 12/31/2015(f) | | | 5.52 | | | | 0.04 | | | | (0.39 | ) | | | (0.35 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.08 | ) |
| (a) | | Calculated using average shares outstanding during the period. |
| (b) | | Total return for Classes A and C does not consider the effects of sales loads and assumes the reinvestment of all distributions. Total return for all other classes assumes the reinvestment of all distributions. |
| (c) | | Commenced on April 4, 2017. |
| (d) | | Not annualized. |
| (e) | | Annualized. |
| (f) | | Commenced on June 30, 2015. |
| 66 | See Notes to Financial Statements. |
| | | | | | | Ratios to Average Net Assets: | | Supplemental Data: |
| | | | | | | | | | | | | |
Net
asset
value,
end of
period | | Total
return(b)
(%) | | Total
expenses
after
waivers
and/or reim-
bursements
(%) | | Total
expenses
(%) | | Net
invest-
ment
income
(%) | | Net
assets,
end of
period
(000) | | Portfolio
turnover
rate
(%) |
| | | | | | | | | | | | | | | | | | | | |
| | $5.29 | | | | 15.85 | | | | 1.02 | | | | 1.02 | | | | 4.81 | | | | $138 | | | | 47 | |
| | 4.80 | | | | (6.60 | ) | | | 1.03 | | | | 1.03 | | | | 3.53 | | | | 55 | | | | 135 | |
| | 5.42 | | | | 10.67 | | | | 0.99 | | | | 0.99 | | | | 1.83 | | | | 27 | | | | 35 | |
| | 5.11 | | | | 5.67 | | | | 1.01 | | | | 1.01 | | | | 1.50 | | | | 10 | | | | 90 | |
| | 5.10 | | | | (6.44 | )(d) | | | 1.01 | (e) | | | 1.01 | (e) | | | 1.13 | (e) | | | 9 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.28 | | | | 15.92 | | | | 0.74 | | | | 0.74 | | | | 5.14 | | | | 12 | | | | 47 | |
| | 4.80 | | | | (6.17 | ) | | | 0.76 | | | | 0.76 | | | | 4.03 | | | | 18 | | | | 135 | |
| | 5.41 | | | | 10.97 | | | | 0.73 | | | | 0.73 | | | | 2.06 | | | | 11 | | | | 35 | |
| | 5.10 | | | | 5.94 | | | | 0.75 | | | | 0.75 | | | | 1.76 | | | | 10 | | | | 90 | |
| | 5.09 | | | | (6.34 | )(d) | | | 0.76 | (e) | | | 0.76 | (e) | | | 1.37 | (e) | | | 9 | | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5.29 | | | | 16.15 | | | | 0.75 | | | | 0.75 | | | | 5.11 | | | | 430 | | | | 47 | |
| | 4.80 | | | | (6.17 | ) | | | 0.76 | | | | 0.76 | | | | 3.74 | | | | 317 | | | | 135 | |
| | 5.41 | | | | 10.99 | | | | 0.74 | | | | 0.74 | | | | 2.11 | | | | 524 | | | | 35 | |
| | 5.10 | | | | 6.04 | | | | 0.66 | | | | 0.66 | | | | 1.85 | | | | 10 | | | | 90 | |
| | 5.09 | | | | (6.29 | )(d) | | | 0.67 | (e) | | | 0.67 | (e) | | | 1.47 | (e) | | | 9 | | | | 52 | |
| | See Notes to Financial Statements. | 67 |
Financial Highlights
EMERGING MARKETS CORPORATE DEBT FUND
| | | | | | Per Share Operating Performance: |
| | | | | | Investment Operations: | | Distributions to
shareholders from: |
| | | Net asset
value,
beginning
of period | | Net
invest-
ment
income(a) | | Net
realized
and
unrealized
gain (loss) | | Total
from
invest-
ment
opera-
tions | | Net
investment
income | | Net
realized
gain | | Total
distri-
butions |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | $ 14.31 | | | | $ 0.64 | | | | $ 1.27 | | | | $ 1.91 | | | | $(0.68 | ) | | | $ – | | | | $ (0.68 | ) |
| 12/31/2018 | | | 15.54 | | | | 0.61 | | | | (1.16 | ) | | | (0.55 | ) | | | (0.65 | ) | | | (0.03 | ) | | | (0.68 | ) |
| 12/31/2017 | | | 15.08 | | | | 0.59 | | | | 0.67 | | | | 1.26 | | | | (0.64 | ) | | | (0.16 | ) | | | (0.80 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.61 | | | | 0.68 | | | | 1.29 | | | | (0.66 | ) | | | – | | | | (0.66 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.60 | | | | (0.33 | ) | | | 0.27 | | | | (0.67 | ) | | | – | (c) | | | (0.67 | ) |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.55 | | | | 1.26 | | | | 1.81 | | | | (0.58 | ) | | | – | | | | (0.58 | ) |
| 12/31/2018 | | | 15.55 | | | | 0.52 | | | | (1.18 | ) | | | (0.66 | ) | | | (0.55 | ) | | | (0.03 | ) | | | (0.58 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.48 | | | | 0.69 | | | | 1.17 | | | | (0.53 | ) | | | (0.16 | ) | | | (0.69 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.50 | | | | 0.68 | | | | 1.18 | | | | (0.56 | ) | | | – | | | | (0.56 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.50 | | | | (0.34 | ) | | | 0.16 | | | | (0.56 | ) | | | – | (c) | | | (0.56 | ) |
| Class F | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.65 | | | | 1.27 | | | | 1.92 | | | | (0.69 | ) | | | – | | | | (0.69 | ) |
| 12/31/2018 | | | 15.55 | | | | 0.63 | | | | (1.18 | ) | | | (0.55 | ) | | | (0.66 | ) | | | (0.03 | ) | | | (0.69 | ) |
| 12/31/2017 | | | 15.08 | | | | 0.61 | | | | 0.68 | | | | 1.29 | | | | (0.66 | ) | | | (0.16 | ) | | | (0.82 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.62 | | | | 0.68 | | | | 1.30 | | | | (0.67 | ) | | | – | | | | (0.67 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.56 | | | | (0.28 | ) | | | 0.28 | | | | (0.68 | ) | | | – | (c) | | | (0.68 | ) |
| Class F3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.70 | | | | 1.26 | | | | 1.96 | | | | (0.73 | ) | | | – | | | | (0.73 | ) |
| 12/31/2018 | | | 15.55 | | | | 0.67 | | | | (1.18 | ) | | | (0.51 | ) | | | (0.70 | ) | | | (0.03 | ) | | | (0.73 | ) |
| 4/4/2017 to 12/31/2017(d) | | | 15.43 | | | | 0.48 | | | | 0.32 | | | | 0.80 | | | | (0.52 | ) | | | (0.16 | ) | | | (0.68 | ) |
| Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.68 | | | | 1.24 | | | | 1.92 | | | | (0.70 | ) | | | – | | | | (0.70 | ) |
| 12/31/2018 | | | 15.55 | | | | 0.64 | | | | (1.17 | ) | | | (0.53 | ) | | | (0.68 | ) | | | (0.03 | ) | | | (0.71 | ) |
| 12/31/2017 | | | 15.08 | | | | 0.63 | | | | 0.68 | | | | 1.31 | | | | (0.68 | ) | | | (0.16 | ) | | | (0.84 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.64 | | | | 0.68 | | | | 1.32 | | | | (0.69 | ) | | | – | | | | (0.69 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.63 | | | | (0.33 | ) | | | 0.30 | | | | (0.70 | ) | | | – | (c) | | | (0.70 | ) |
| Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.30 | | | | 0.58 | | | | 1.28 | | | | 1.86 | | | | (0.62 | ) | | | – | | | | (0.62 | ) |
| 12/31/2018 | | | 15.54 | | | | 0.64 | | | | (1.17 | ) | | | (0.53 | ) | | | (0.68 | ) | | | (0.03 | ) | | | (0.71 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.63 | | | | 0.68 | | | | 1.31 | | | | (0.68 | ) | | | (0.16 | ) | | | (0.84 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.64 | | | | 0.67 | | | | 1.31 | | | | (0.69 | ) | | | – | | | | (0.69 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.64 | | | | (0.34 | ) | | | 0.30 | | | | (0.70 | ) | | | – | (c) | | | (0.70 | ) |
| Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.60 | | | | 1.26 | | | | 1.86 | | | | (0.63 | ) | | | – | | | | (0.63 | ) |
| 12/31/2018 | | | 15.54 | | | | 0.64 | | | | (1.16 | ) | | | (0.52 | ) | | | (0.68 | ) | | | (0.03 | ) | | | (0.71 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.63 | | | | 0.68 | | | | 1.31 | | | | (0.68 | ) | | | (0.16 | ) | | | (0.84 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.64 | | | | 0.67 | | | | 1.31 | | | | (0.69 | ) | | | – | | | | (0.69 | ) |
| 12/31/2015 | | | 14.85 | | | | 0.64 | | | | (0.34 | ) | | | 0.30 | | | | (0.70 | ) | | | – | (c) | | | (0.70 | ) |
| 68 | See Notes to Financial Statements. |
| | | | | | | Ratios to Average Net Assets: | | Supplemental Data: |
| | | | | | | | | | | | | |
Net
asset
value,
end of
period | | Total
return(b)
(%) | | Total
expenses
after
waivers
and/or reim-
bursements
(%) | | Total
expenses
(%) | | Net
invest-
ment
income
(%) | | Net
assets,
end of
period
(000) | | Portfolio
turnover
rate
(%) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ 15.54 | | | | 13.56 | | | | 1.05 | | | | 1.62 | | | | 4.24 | | | | $ 11,660 | | | | 64 | |
| | 14.31 | | | | (3.65 | ) | | | 1.05 | | | | 1.54 | | | | 4.14 | | | | 8,729 | | | | 56 | |
| | 15.54 | | | | 8.54 | | | | 1.05 | | | | 1.55 | | | | 3.80 | | | | 13,809 | | | | 81 | |
| | 15.08 | | | | 9.03 | | | | 1.05 | | | | 1.67 | | | | 4.03 | | | | 7,535 | | | | 104 | |
| | 14.45 | | | | 1.77 | | | | 1.05 | | | | 1.71 | | | | 4.03 | | | | 13,843 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.54 | | | | 12.85 | | | | 1.68 | | | | 2.25 | | | | 3.61 | | | | 2,307 | | | | 64 | |
| | 14.31 | | | | (4.28 | ) | | | 1.71 | | | | 2.20 | | | | 3.50 | | | | 1,926 | | | | 56 | |
| | 15.55 | | | | 7.85 | | | | 1.76 | | | | 2.27 | | | | 3.10 | | | | 2,261 | | | | 81 | |
| | 15.07 | | | | 8.23 | | | | 1.70 | | | | 2.34 | | | | 3.27 | | | | 1,212 | | | | 104 | |
| | 14.45 | | | | 1.04 | | | | 1.77 | | | | 2.46 | | | | 3.38 | | | | 581 | | | | 148 | |
| |
| | 15.54 | | | | 13.66 | | | | 0.95 | | | | 1.51 | | | | 4.30 | | | | 42,660 | | | | 64 | |
| | 14.31 | | | | (3.63 | ) | | | 0.95 | | | | 1.44 | | | | 4.22 | | | | 24,115 | | | | 56 | |
| | 15.55 | | | | 8.71 | | | | 0.95 | | | | 1.45 | | | | 3.89 | | | | 27,640 | | | | 81 | |
| | 15.08 | | | | 9.10 | | | | 0.95 | | | | 1.57 | | | | 4.09 | | | | 12,321 | | | | 104 | |
| | 14.45 | | | | 1.83 | | | | 0.95 | | | | 1.50 | | | | 3.82 | | | | 12,604 | | | | 148 | |
| |
| | 15.54 | | | | 13.94 | | | | 0.70 | | | | 1.25 | | | | 4.61 | | | | 12 | | | | 64 | |
| | 14.31 | | | | (3.32 | ) | | | 0.68 | | | | 1.21 | | | | 4.49 | | | | 10 | | | | 56 | |
| | 15.55 | | | | 5.21 | (e) | | | 0.67 | (f) | | | 1.24 | (f) | | | 4.15 | (f) | | | 11 | | | | 81 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.53 | | | | 13.69 | | | | 0.85 | | | | 1.45 | | | | 4.51 | | | | 5,635 | | | | 64 | |
| | 14.31 | | | | (3.46 | ) | | | 0.85 | | | | 1.35 | | | | 4.35 | | | | 8,891 | | | | 56 | |
| | 15.55 | | | | 8.84 | | | | 0.85 | | | | 1.37 | | | | 4.04 | | | | 11,674 | | | | 81 | |
| | 15.08 | | | | 9.18 | | | | 0.85 | | | | 1.47 | | | | 4.26 | | | | 8,636 | | | | 104 | |
| | 14.45 | | | | 1.98 | | | | 0.85 | | | | 1.50 | | | | 4.26 | | | | 10,634 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.54 | | | | 13.19 | | | | 1.45 | | | | 2.02 | | | | 3.86 | | | | 141 | | | | 64 | |
| | 14.30 | | | | (3.52 | ) | | | 0.85 | | | | 1.95 | | | | 4.36 | | | | 125 | | | | 56 | |
| | 15.54 | | | | 8.84 | | | | 0.85 | | | | 1.97 | | | | 4.05 | | | | 130 | | | | 81 | |
| | 15.07 | | | | 9.18 | | | | 0.85 | | | | 2.08 | | | | 4.23 | | | | 119 | | | | 104 | |
| | 14.45 | | | | 1.98 | | | | 0.85 | | | | 2.14 | | | | 4.31 | | | | 109 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.54 | | | | 13.31 | | | | 1.35 | | | | 1.92 | | | | 3.96 | | | | 147 | | | | 64 | |
| | 14.31 | | | | (3.53 | ) | | | 0.85 | | | | 1.85 | | | | 4.35 | | | | 125 | | | | 56 | |
| | 15.54 | | | | 8.84 | | | | 0.85 | | | | 1.87 | | | | 4.04 | | | | 148 | | | | 81 | |
| | 15.07 | | | | 9.18 | | | | 0.85 | | | | 1.98 | | | | 4.23 | | | | 119 | | | | 104 | |
| | 14.45 | | | | 1.98 | (e) | | | 0.85 | | | | 2.04 | | | | 4.31 | | | | 109 | | | | 148 | |
| | See Notes to Financial Statements. | 69 |
Financial Highlights (concluded)
EMERGING MARKETS CORPORATE DEBT FUND
| | | | | | Per Share Operating Performance: |
| | | | | | Investment Operations: | | Distributions to
shareholders from: |
| | | Net asset value,
beginning
of period | | Net
invest-
ment
income(a) | | Net
realized
and
unrealized
gain (loss) | | Total
from
invest-
ment
opera-
tions | | Net
investment
income | | Net
realized
gain | | Total
distri-
butions |
| Class R4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | $ 14.30 | | | | $0.64 | | | | $ 1.26 | | | | $ 1.90 | | | | $(0.67 | ) | | | $ – | | | | $(0.67 | ) |
| 12/31/2018 | | | 15.54 | | | | 0.60 | | | | (1.17 | ) | | | (0.57 | ) | | | (0.64 | ) | | | (0.03 | ) | | | (0.67 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.59 | | | | 0.68 | | | | 1.27 | | | | (0.64 | ) | | | (0.16 | ) | | | (0.80 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.60 | | | | 0.68 | | | | 1.28 | | | | (0.66 | ) | | | – | | | | (0.66 | ) |
| 6/30/2015 to 12/31/2015(g) | | | 14.97 | | | | 0.29 | | | | (0.49 | ) | | | (0.20 | ) | | | (0.32 | ) | | | – | (c) | | | (0.32 | ) |
| Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.67 | | | | 1.27 | | | | 1.94 | | | | (0.71 | ) | | | – | | | | (0.71 | ) |
| 12/31/2018 | | | 15.55 | | | | 0.65 | | | | (1.18 | ) | | | (0.53 | ) | | | (0.68 | ) | | | (0.03 | ) | | | (0.71 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.63 | | | | 0.69 | | | | 1.32 | | | | (0.68 | ) | | | (0.16 | ) | | | (0.84 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.64 | | | | 0.67 | | | | 1.31 | | | | (0.69 | ) | | | – | | | | (0.69 | ) |
| 6/30/2015 to 12/31/2015(g) | | | 14.97 | | | | 0.31 | | | | (0.49 | ) | | | (0.18 | ) | | | (0.34 | ) | | | – | (c) | | | (0.34 | ) |
| Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 14.31 | | | | 0.69 | | | | 1.27 | | | | 1.96 | | | | (0.73 | ) | | | – | | | | (0.73 | ) |
| 12/31/2018 | | | 15.54 | | | | 0.67 | | | | (1.17 | ) | | | (0.50 | ) | | | (0.70 | ) | | | (0.03 | ) | | | (0.73 | ) |
| 12/31/2017 | | | 15.07 | | | | 0.65 | | | | 0.68 | | | | 1.33 | | | | (0.70 | ) | | | (0.16 | ) | | | (0.86 | ) |
| 12/31/2016 | | | 14.45 | | | | 0.65 | | | | 0.67 | | | | 1.32 | | | | (0.70 | ) | | | – | | | | (0.70 | ) |
| 6/30/2015 to 12/31/2015(g) | | | 14.97 | | | | 0.31 | | | | (0.48 | ) | | | (0.17 | ) | | | (0.35 | ) | | | – | (c) | | | (0.35 | ) |
| (a) | Calculated using average shares outstanding during the period. |
| (b) | Total return for Classes A and C does not consider the effects of sales loads and assumes the reinvestment of all distributions. Total return for all other classes assumes the reinvestment of all distributions. |
| (c) | Amount less than $0.01. |
| (d) | Commenced on April 4, 2017. |
| (e) | Not annualized. |
| (f) | Annualized. |
| (g) | Commenced on June 30, 2015. |
| 70 | See Notes to Financial Statements. |
| | | | | | | Ratios to Average Net Assets: | | Supplemental Data: |
| | | | | | | | | | | | | |
Net
asset
value,
end of
period | | Total
return(b)
(%) | | Total
expenses
after
waivers
and/or reim-
bursements
(%) | | Total
expenses
(%) | | Net
invest-
ment
income
(%) | | Net
assets,
end of
period
(000) | | Portfolio
turnover
rate
(%) |
| | | | | | | | | | | | | | | | | | | | |
| $ | 15.53 | | | | 13.52 | | | | 1.10 | | | | 1.67 | | | | 4.23 | | | $ | 15 | | | | 64 | |
| | 14.30 | | | | (3.77 | ) | | | 1.10 | | | | 1.57 | | | | 4.08 | | | | 14 | | | | 56 | |
| | 15.54 | | | | 8.57 | | | | 1.11 | | | | 1.62 | | | | 3.80 | | | | 12 | | | | 81 | |
| | 15.07 | | | | 8.92 | | | | 1.10 | | | | 1.71 | | | | 4.00 | | | | 11 | | | | 104 | |
| | 14.45 | | | | (1.33 | )(e) | | | 1.10 | (f) | | | 1.71 | (f) | | | 3.91 | (f) | | | 10 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.54 | | | | 13.79 | | | | 0.85 | | | | 1.42 | | | | 4.47 | | | | 248 | | | | 64 | |
| | 14.31 | | | | (3.45 | ) | | | 0.85 | | | | 1.39 | | | | 4.43 | | | | 240 | | | | 56 | |
| | 15.55 | | | | 8.84 | | | | 0.85 | | | | 1.37 | | | | 4.04 | | | | 54 | | | | 81 | |
| | 15.07 | | | | 9.18 | | | | 0.85 | | | | 1.49 | | | | 4.22 | | | | 35 | | | | 104 | |
| | 14.45 | | | | (1.21 | )(e) | | | 0.85 | (f) | | | 1.46 | (f) | | | 4.17 | (f) | | | 10 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.54 | | | | 13.94 | | | | 0.71 | | | | 1.26 | | | | 4.59 | | | | 128 | | | | 64 | |
| | 14.31 | | | | (3.31 | ) | | | 0.69 | | | | 1.28 | | | | 4.60 | | | | 96 | | | | 56 | |
| | 15.54 | | | | 9.01 | | | | 0.70 | | | | 1.22 | | | | 4.21 | | | | 12 | | | | 81 | |
| | 15.07 | | | | 9.26 | | | | 0.77 | | | | 1.27 | | | | 4.31 | | | | 11 | | | | 104 | |
| | 14.45 | | | | (1.18 | )(e) | | | 0.79 | (f) | | | 1.37 | (f) | | | 4.23 | (f) | | | 10 | | | | 148 | |
| | See Notes to Financial Statements. | 71 |
Financial Highlights
GLOBAL BOND FUND
| | | | | | Per Share Operating Performance: |
| | | | | | Investment Operations: | | Distributions to
shareholders from: |
| | | Net asset
value,
beginning
of period | | Net
invest-
ment
income(a) | | Net
realized
and
unrealized
gain (loss) | | Total
from
invest-
ment
opera-
tions | | Net
investment
income | | Net
realized
gain | | Total
distri-
butions |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | $ 9.71 | | | | $0.26 | | | | $ 0.54 | | | | $ 0.80 | | | | $(0.33 | ) | | | $(0.05 | ) | | | $(0.38 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.11 | | | | (0.26 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | (0.14 | ) |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.18 | | | | 0.54 | | | | 0.72 | | | | (0.25 | ) | | | (0.05 | ) | | | (0.30 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.08 | | | | (0.27 | ) | | | (0.19 | ) | | | (0.10 | ) | | | – | | | | (0.10 | ) |
| Class F | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.28 | | | | 0.54 | | | | 0.82 | | | | (0.35 | ) | | | (0.05 | ) | | | (0.40 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.12 | | | | (0.26 | ) | | | (0.14 | ) | | | (0.15 | ) | | | – | | | | (0.15 | ) |
| Class F3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.29 | | | | 0.54 | | | | 0.83 | | | | (0.36 | ) | | | (0.05 | ) | | | (0.41 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.13 | | | | (0.27 | ) | | | (0.14 | ) | | | (0.15 | ) | | | – | | | | (0.15 | ) |
| Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.28 | | | | 0.54 | | | | 0.82 | | | | (0.35 | ) | | | (0.05 | ) | | | (0.40 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.12 | | | | (0.26 | ) | | | (0.14 | ) | | | (0.15 | ) | | | – | | | | (0.15 | ) |
| Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.23 | | | | 0.54 | | | | 0.77 | | | | (0.30 | ) | | | (0.05 | ) | | | (0.35 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.10 | | | | (0.26 | ) | | | (0.16 | ) | | | (0.13 | ) | | | – | | | | (0.13 | ) |
| Class R4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.25 | | | | 0.54 | | | | 0.79 | | | | (0.32 | ) | | | (0.05 | ) | | | (0.37 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.11 | | | | (0.26 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | (0.14 | ) |
| Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.28 | | | | 0.54 | | | | 0.82 | | | | (0.35 | ) | | | (0.05 | ) | | | (0.40 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.12 | | | | (0.26 | ) | | | (0.14 | ) | | | (0.15 | ) | | | – | | | | (0.15 | ) |
| Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 12/31/2019 | | | 9.71 | | | | 0.29 | | | | 0.54 | | | | 0.83 | | | | (0.36 | ) | | | (0.05 | ) | | | (0.41 | ) |
| 7/26/2018 to12/31/2018(e)(f) | | | 10.00 | | | | 0.13 | | | | (0.27 | ) | | | (0.14 | ) | | | (0.15 | ) | | | – | | | | (0.15 | ) |
| (a) | Calculated using average shares outstanding during the period. |
| (b) | Total return for Classes A and C does not consider the effects of sales loads and assumes the reinvestment of all distributions. Total return for all other classes assumes the reinvestment of all distributions. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Commenced on 07/26/2018, SEC effective date and date shares first became available to the public was 8/1/2018. |
| (f) | Net investment income, net realized and unrealized gain amounted to less than $.01 for the period 7/26/2018 through 8/1/2018. |
| (g) | Total return for the period 8/1/2018 through 12/31/2018 was (1.51)% for Class A, (1.85)% for Class C, (1.43)% for Class F, (1.38)% for Class F3, (1.43)% for Class I, (1.64)% for Class R3, (1.53)% for Class R4, (1.43)% for Class R5, (1.38)% for Class R6. |
| 72 | See Notes to Financial Statements. |
| | | | | | | Ratios to Average Net Assets: | | Supplemental Data: |
| | | | | | | | | | | | | |
Net
asset
value,
end of
period | | Total
return(b)
(%) | | Total
expenses
after
waivers
and/or reim-
bursements
(%) | | Total
expenses
(%) | | Net
invest-
ment
income
(%) | | Net
assets,
end of
period
(000) | | Portfolio
turnover
rate
(%) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 10.13 | | | | 8.32 | �� | | | 0.78 | | | | 3.03 | | | | 2.56 | | | $ | 2,151 | | | | 315 | |
| | 9.71 | | | | (1.42 | )(c)(g) | | | 0.78 | (d) | | | 2.77 | (d) | | | 2.64 | (d) | | | 1,969 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 7.48 | | | | 1.56 | | | | 3.81 | | | | 1.78 | | | | 277 | | | | 315 | |
| | 9.71 | | | | (1.76 | )(c)(g) | | | 1.58 | (d) | | | 3.57 | (d) | | | 1.84 | (d) | | | 245 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.53 | | | | 0.58 | | | | 2.93 | | | | 2.76 | | | | 2,139 | | | | 315 | |
| | 9.71 | | | | (1.33 | )(c)(g) | | | 0.58 | (d) | | | 2.67 | (d) | | | 2.84 | (d) | | | 1,971 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.66 | | | | 0.46 | | | | 2.78 | | | | 2.88 | | | | 1,607 | | | | 315 | |
| | 9.71 | | | | (1.28 | )(c)(g) | | | 0.46 | (d) | | | 2.55 | (d) | | | 2.96 | (d) | | | 1,479 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.53 | | | | 0.58 | | | | 2.83 | | | | 2.76 | | | | 2,139 | | | | 315 | |
| | 9.71 | | | | (1.33 | )(c)(g) | | | 0.58 | (d) | | | 2.57 | (d) | | | 2.84 | (d) | | | 1,971 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.00 | | | | 1.08 | | | | 3.33 | | | | 2.26 | | | | 265 | | | | 315 | |
| | 9.71 | | | | (1.54 | )(c)(g) | | | 1.08 | (d) | | | 3.07 | (d) | | | 2.34 | (d) | | | 246 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.26 | | | | 0.83 | | | | 3.08 | | | | 2.51 | | | | 266 | | | | 315 | |
| | 9.71 | | | | (1.44 | )(c)(g) | | | 0.83 | (d) | | | 2.82 | (d) | | | 2.59 | (d) | | | 246 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.53 | | | | 0.58 | | | | 2.83 | | | | 2.76 | | | | 267 | | | | 315 | |
| | 9.71 | | | | (1.33 | )(c)(g) | | | 0.58 | (d) | | | 2.57 | (d) | | | 2.84 | (d) | | | 246 | | | | 123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.13 | | | | 8.66 | | | | 0.46 | | | | 2.78 | | | | 2.88 | | | | 1,782 | | | | 315 | |
| | 9.71 | | | | (1.28 | )(c)(g) | | | 0.46 | (d) | | | 2.56 | (d) | | | 2.96 | (d) | | | 1,611 | | | | 123 | |
| | See Notes to Financial Statements. | 73 |
Notes to Financial Statements
Lord Abbett Global Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and was incorporated under Maryland law on February 23, 1988.
The Company consists of the following three funds (each, a “Fund” and collectively, the “Funds”) and their respective active share classes at December 31, 2019:
| Funds | | Classes |
| Lord Abbett Emerging Markets Bond Fund (“Emerging Markets Bond Fund”) | | A, C, F, F3, I, R2, R3, R4, R5 and R6 |
| Lord Abbett Emerging Markets Corporate Debt Fund (“Emerging Markets Corporate Debt Fund”) | | A, C, F, F3, I, R2, R3, R4, R5 and R6 |
| Lord Abbett Global Bond Fund (“Global Bond Fund”) | | A, C, F, F3, I, R3, R4, R5 and R6 |
Emerging Markets Corporate Debt Fund and Global Bond Fund are each diversified as defined in the Act and Emerging Markets Bond Fund is non-diversified as defined in the Act.
Emerging Markets Bond Fund’s investment objective is to seek high total return. Emerging Markets Corporate Debt Fund and Global Bond Fund’s investment objective is total return.
Each class of shares has different expenses and dividends. A front-end sales charge is normally added to the net asset value (“NAV”) for Class A shares. There is no front-end sales charge in the case of Class C, F, F3, I, R2, R3, R4, R5 and R6 shares, although there may be a contingent deferred sales charge (“CDSC”) in certain cases as follows: Class A shares purchased without a sales charge and redeemed before the first day of the month in which the one-year anniversary of the purchase falls (subject to certain exceptions as set forth in each Fund’s prospectus); Class C shares redeemed before the first anniversary of purchase. Class C shares automatically convert to Class A shares on the 25th day of the month (or, if the 25th is not a business day, the next business day thereafter) following the tenth anniversary of the month on which the purchase order was accepted.
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. These Funds are considered investment companies under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
| (a) | Investment Valuation–Under procedures approved by the Funds’ Board of Directors (the “Board”), Lord Abbett, the Funds’ investment manager, has formed a Pricing Committee to administer the pricing and valuation of portfolio investments and to ensure that prices utilized reasonably reflect fair value. Among other things, these procedures allow the Funds 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 |
74
Notes to Financial Statements (continued)
| | their fair value as of the close of regular trading on the New York Stock Exchange (“NYSE”). Each Fund may utilize an independent fair valuation service in adjusting the valuations of foreign 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 asked prices. Fixed income securities are valued based on evaluated prices supplied by independent pricing services, which reflect broker/dealer supplied valuations and the independent pricing services’ own electronic data processing techniques. Floating rate loans are valued at the average of bid and ask quotations obtained from dealers in loans on the basis of prices supplied by independent pricing services. 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 asked prices is used. Forward foreign currency exchange contracts are valued using daily forward exchange rates. Swaps are valued daily using independent pricing services or quotations from broker/dealers to the extent available. |
| | |
| | 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, yield curves, broker quotes, observable trading activity, option adjusted spread models and other relevant information to determine the fair value of portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and may employ techniques such as reviewing related market activity, reviewing inputs and assumptions, and retrospectively comparing 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. |
| | |
| (b) | Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method. Realized and unrealized gains (losses) are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. |
| | |
| (c) | Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest and other on the Statements of Operations. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates. |
| | |
| (d) | Income Taxes-It is the policy of each 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. |
| | |
| | Each 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 each Fund’s filed U.S. federal tax returns remains open for the fiscal years ended December 31, 2016 through December 31, 2019. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. |
75
Notes to Financial Statements (continued)
| (e) | Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the funds within the Company on a pro rata basis by relative net assets. Expenses, excluding class-specific expenses, are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Class A, C, F, R2, R3 and R4 shares bear their class-specific share of all expenses and fees relating to the Funds’ 12b-1 Distribution Plan. |
| | |
| (f) | Foreign Transactions–The books and records of each Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss), if applicable, is included in Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies in the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized gain (loss), if applicable, on foreign currency related transactions in the Fund’s Statement of Operations. The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities. |
| | |
| | The Funds use foreign currency exchange contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms. |
| | |
| (g) | Forward Foreign Currency Exchange Contracts–Each Fund may enter into forward foreign currency exchange contracts in order to reduce exposure to changes in foreign currency exchange rates on foreign portfolio holdings, or gain or reduce exposure to foreign currency solely for investment purposes. A forward foreign currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. The contracts are valued daily at forward exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on forward foreign currency exchange contracts on each Fund’s Statement of Operations. The gain (loss) arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing of such contracts is included in Net realized gain (loss) on forward foreign currency exchange contracts on each Fund’s Statement of Operations. |
| | |
| (h) | Futures Contracts–Each Fund may purchase and sell futures contracts to enhance returns, to attempt to economically hedge some of its investment risk, or as a substitute position in lieu of holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by a Fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. Each Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract. |
| | |
| (i) | When-Issued, Forward Transactions or To-Be-Announced (“TBA”) Transactions–Each Fund may purchase portfolio securities on a when-issued or forward basis. When-issued, forward transactions or TBA transactions involve a commitment by a Fund to purchase securities, with payment and delivery (“settlement”) to take place in the future, in order to secure what is considered to be an advantageous price or yield at the time of entering into the |
76
Notes to Financial Statements (continued)
| | transaction. During the period between purchase and settlement, the fair value of the securities will fluctuate and assets consisting of cash and/or marketable securities (normally short-term U.S. Government or U.S. Government sponsored enterprise securities) marked to market daily in an amount sufficient to make payment at settlement will be segregated at each Fund’s custodian in order to pay for the commitment. At the time each Fund makes the commitment to purchase a security on a when-issued basis, it will record the transaction and reflect the liability for the purchase and fair value of the security in determining its NAV. Each Fund, generally, has the ability to close out a purchase obligation on or before the settlement date rather than take delivery of the security. Under no circumstances will settlement for such securities take place more than 120 days after the purchase date. |
| | |
| (j) | Mortgage Dollar Rolls–Each Fund may enter into mortgage dollar rolls in which a Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. During the roll period, each Fund loses the right to receive principal (including prepayments of principal) and interest paid on the securities sold. |
| | |
| (k) | Commercial Paper–Each Fund may purchase commercial paper. Commercial paper consists of unsecured promissory notes issued by corporations to finance short-term credit needs. Commercial paper is issued in bearer form with maturities generally not exceeding nine months. Commercial paper obligations may include variable amount master demand notes. |
| | |
| (l) | Repurchase Agreements–Each Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. Each Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the fair value of these securities has declined, a Fund may incur a loss upon disposition of the securities. |
| | |
| (m) | Interest Rate Swaps–Each Fund may invest in interest rate swaps in order to enhance returns or hedge against interest rate risk. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. The interest rate swap agreement will normally be entered into on a zero coupon basis, meaning that the floating rate will be based on the cumulative of the variable rate, and the fixed rate will compound until the swap’s maturity date, at which point the payments would be netted. The swaps are valued daily and any unrealized gain (loss) is included in the Net change in unrealized appreciation/depreciation on swap contracts on each Fund’s Statement of Operations. A liquidation payment received or made at the termination or maturity of the swap is recorded in realized gain (loss) and is included in Net realized gain (loss) on swaps on each Fund’s Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value as appropriate (“variation margin”) on the Statements of Assets and Liabilities. For centrally cleared swaps, there was minimal counterparty risk to the Funds, since such swaps entered into were traded through a central clearinghouse, which guarantees against default. |
77
Notes to Financial Statements (continued)
| (n) | Credit Default Swaps–Each Fund may enter into credit default swap contracts. As a seller of a credit default swap contract (“seller of protection”), a Fund is required to pay the notional amount or other agreed-upon value of a referenced debt obligation to the counterparty in the event of a default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund receives from the counterparty a periodic stream of payments over the term of the contract. |
| | |
| | As a purchaser of a credit default swap contract (“buyer of protection”), a Fund would receive the notional amount or other agreed upon value of a referenced debt obligation from the counterparty in the event of default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund would make periodic payments to the counterparty over the term of the contracts, provided no event of default has occurred. |
| | |
| | These credit default swaps may have as a reference obligation corporate or sovereign issuers or credit indexes. These credit indexes are comprised of a basket of securities representing a particular sector of the market. |
| | |
| | Credit default swaps are fair valued based upon quotations from counterparties, brokers or market-makers and the change in value, if any, is recorded as an unrealized appreciation or depreciation. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value as appropriate (“variation margin”) on the Statements of Assets and Liabilities. For a credit default swap sold by a Fund, payment of the agreed-upon amount made by the Fund in the event of default of the referenced debt obligation is recorded as the cost of the referenced debt obligation purchased/received. For a credit default swap purchased by a Fund, the agreed-upon amount received by the Fund in the event of default of the referenced debt obligation is recorded as proceeds from sale/delivery of the referenced debt obligation and the resulting gain or loss realized on the referenced debt obligation is recorded as such by the Fund. |
| | |
| | Any upfront payments made or received upon entering a credit default swap contract would be amortized or accreted over the life of the swap and recorded as realized gains or losses. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian bank or broker in accordance with the swap agreement. The value and credit rating of each credit default swap where a Fund is the seller of protection, are both measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities. |
| | |
| | Entering into credit default swaps involves credit and market risk. Such risks involve the possibility that there will be no liquid market for these agreements, that there may be unfavorable changes in interest rates, and that Lord Abbett does not correctly predict the creditworthiness of the issuers of the reference obligation on which the credit default swap is based. For centrally cleared swaps there was minimal counterparty credit risk to the Funds, |
78
Notes to Financial Statements (continued)
| | since the credit default swap entered into was traded through a central clearinghouse, which guarantees against default. |
| | |
| (o) | Total Return Swaps–Each Fund may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market. Each Fund may agree to make payments that are the equivalent of interest in exchange for the right to receive payments equivalent to any appreciation in the value of an underlying security, index or other asset, as well as receive payments equivalent to any distributions made on that asset, over the term of the swap. If the value of the asset underlying a total return swap declines over the term of the swap, each Fund also may be required to pay an amount equal to that decline in value to their counterparty. |
| | |
| (p) | Floating Rate Loans–Each Fund may invest in floating rate loans, which usually take the form of loan participations and assignments. Loan participations and assignments are agreements to make money available to U.S. or foreign corporations, partnerships or other business entities (the “Borrower”) in a specified amount, at a specified rate and within a specified time. A loan is typically originated, negotiated and structured by a U.S. or foreign bank, insurance company or other financial institution (the “Agent”) for a group of loan investors (“Loan Investors”). The Agent typically administers and enforces the loan on behalf of the other Loan Investors in the syndicate and may hold any collateral on behalf of the Loan Investors. Such loan participations and assignments are typically senior, secured and collateralized in nature. A Fund records an investment when the Borrower withdraws money and records interest as earned. These loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or London InterBank Offered Rate (“LIBOR”). |
| | |
| | The loans in which a Fund invests may be subject to some restrictions on resale. For example, a Fund may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, each Fund assumes the credit risk of the Borrower, the selling participant and any other persons interpositioned between a Fund and the Borrower (“Intermediate Participants”). In the event that the Borrower, selling participant or Intermediate Participants become insolvent or enter into bankruptcy, a Fund may incur certain costs and delays in realizing payment or may suffer a loss of principal and/or interest. |
| | |
| | Unfunded commitments represent the remaining obligation of a Fund to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. Until demanded by the Borrower, unfunded commitments are not recognized as an asset on the Statements of Assets and Liabilities. Unrealized appreciation/depreciation on unfunded commitments presented on the Statements of Assets and Liabilities represents mark to market of the unfunded portion of each Fund’s floating rate notes. As of December 31, 2019, each Fund had no unfunded loan commitments. |
| | |
| (q) | Fair Value Measurements–Fair value is defined as the price that each 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 |
79
Notes to Financial Statements (continued)
| | 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 each Fund’s own assumptions in determining the fair value of investments). |
| | A summary of inputs used in valuing each Fund’s investments and other financial instruments as of December 31, 2019 and, if applicable, Level 3 rollforwards for the fiscal year then ended is included in each 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. | MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES |
Management Fee
The Company has a management agreement with Lord Abbett, pursuant to which Lord Abbett supplies each Fund with investment management services and executive and other personnel, provides office space and pays for ordinary and necessary office and clerical expenses relating to research and statistical work and supervision of each Fund’s investment portfolio.
The management fee is based on each Fund’s average daily net assets at the following annual rates:
Emerging Markets Bond Fund
| First $1 billion | .50% |
| Over $1 billion | .45% |
Emerging Markets Corporate Debt Fund
| First $2 billion | .70% |
| Next $3 billion | .65% |
| Over $5 billion | .60% |
Global Bond Fund
| First $3 billion | .43% |
| Over $3 billion | .40% |
80
Notes to Financial Statements (continued)
For the fiscal year ended December 31, 2019, the effective management fee, net of waivers, was at the following annualized rate of each Fund’s average daily net assets:
| | | Net Effective
Management Fee |
| Emerging Markets Bond Fund | | .50% |
| Emerging Markets Corporate Debt Fund | | .13% |
| Global Bond Fund | | .00% |
In addition, Lord Abbett provides certain administrative services to each Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of each funds’ average daily net asset.
For the fiscal year ended December 31, 2019 and continuing through April 30, 2020, Lord Abbett has contractually agreed to waive its fees and reimburse expenses to the extent necessary to limit the total net annual operating expenses, excluding 12b-1 fees, to the following annual rates:
| | | Classes* | | |
| Fund | | A, C, F, I,
R2, R3, R4 and R5 | | F3 and R6 |
| Emerging Markets Corporate Debt Fund | | .85% | | .71% |
| Global Bond Fund | | .58% | | .46% |
All contractual management fee waiver and expense reimbursement agreements between the Funds and Lord Abbett may be terminated only upon approval of the Funds’ Board.
12b-1 Distribution Plan
Each Fund has adopted a distribution plan with respect to Class A, C, F, R2, R3 and R4 shares pursuant to Rule 12b-1 under the Act, which provides for the payment of ongoing distribution and service fees to Lord Abbett Distributor LLC (the “Distributor”), an affiliate of Lord Abbett. The following annual rates have been authorized by the Board pursuant to the plan:
| Fees* | | Class A | | Class C(1) | | Class F(2)(3) | | Class R2** | | Class R3** | | Class R4 |
| Service | | .15% | | .25% | | – | | .25% | | .25% | | .25% |
| Distribution | | .05% | | .75% | | .10% | | .35% | | .25% | | – |
| * | The Funds may designate a portion of the aggregate fee as attributable to service activities for purposes of calculating Financial Industry Regulatory Authority, Inc. (“FINRA”) sales charge limitations. |
| ** | Prior to the sale of shares to unaffiliated investors, service and distribution fees were fully waived. |
| (1) | Each Fund’s Class C 12b-1 fee is a blended rate calculated based on 1.00% of the Fund’s average daily net assets attributable to Class C shares held for less than one year and .80% (.25% service, .55% distribution) of the Fund’s average daily net assets attributable to Class C shares held for one year or more. All Class C shareholders of the Fund will bear Rule 12b-1 fees at the same rate. |
| (2) | The Class F share Rule 12b-1 fee may be designated as a service fee in limited circumstances as described in the Funds’ prospectus. |
| (3) | For the period ended December 31, 2019 and continuing through April 30, 2020, the Distributor has contractually agreed to waive Emerging Markets Bond Fund’s and Global Bond Fund’s 0.10% Rule 12b-1 fee for Class F. These agreements may be terminated only by the Fund’s Board of Trustees. |
Class F3, I, R5 and R6 shares do not have a distribution plan.
81
Notes to Financial Statements (continued)
Commissions
Distributor received the following commissions on sales of shares of the Funds, after concessions were paid to authorized dealers, for the fiscal year ended December 31, 2019:
| | | Distributor
Commissions | | | Dealers’
Concessions | |
| Emerging Markets Bond Fund | | | $ | 1,735 | | | | $ | 11,469 | |
| Emerging Markets Corporate Debt Fund | | | | 1,525 | | | | | 8,548 | |
Distributor received the following amount of CDSCs for the fiscal year ended December 31, 2019:
| | | Class A | | | Class C | |
| Emerging Markets Bond Fund | | | $ | 45 | | | | $ | 6 | |
| Emerging Markets Corporate Debt Fund | | | | 1 | | | | | – | |
Other Related Parties
As of December 31, 2019, the percentages of Emerging Markets Bond Fund’s outstanding shares owned by Lord Abbett Multi-Asset Balanced Opportunity Fund and Lord Abbett Multi-Asset Income Fund, were 50.52% and 36.74%, respectively.
One Director and certain of the Company’s officers have an interest in Lord Abbett.
| 4. | DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS |
Dividends from net investment income, if any, are declared daily and paid monthly for the Funds. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions that exceed earnings and profits for tax purposes, are reported as a tax return of capital.
The tax character of distributions paid during the fiscal years ended December 31, 2019 and December 31, 2018 was as follows:
| | | Emerging Markets
Bond Fund | | | Emerging Markets
Corporate Debt Fund | |
| | | Year Ended
12/31/2019 | | | Year Ended
12/31/2018 | | | Year Ended
12/31/2019 | | | Year Ended
12/31/2018 | |
| Distributions paid from: | | | | | | | | | | | | | | | | |
| Ordinary income | | $ | 9,504,706 | | | $ | 8,744,134 | | | $ | 2,076,006 | | | $ | 2,410,573 | |
| Net long-term capital gains | | | – | | | | – | | | | – | | | | – | |
| Return of capital | | | – | | | | 1,711,665 | | | | – | | | | – | |
| Total distributions paid | | $ | 9,504,706 | | | $ | 10,455,799 | | | $ | 2,076,006 | | | $ | 2,410,573 | |
82
Notes to Financial Statements (continued)
| | | | Global Bond Fund | |
| | | | Year Ended
12/31/2019 | | | | Year Ended
12/31/2018 | |
| Distributions paid from: | | | | | | | | | | |
| Ordinary income | | | $ | 413,513 | | | | $ | 146,393 | |
| Net long-term capital gains | | | | – | | | | | – | |
| Total distributions paid | | | $ | 413,513 | | | | $ | 146,393 | |
As of December 31, 2019, the components of accumulated gains (losses) on a tax-basis were as follows:
| | | Emerging Markets
Bond Fund | | | Emerging Markets
Corporate Debt Fund | |
| Capital loss carryforwards* | | | $ | (110,039,573 | ) | | | $ | (1,763,761 | ) |
| Temporary differences | | | | (786,968 | ) | | | | (22,055 | ) |
| Unrealized gains (losses) – net | | | | 11,076,555 | | | | | 2,113,058 | |
| Total accumulated gains (losses) – net | | | $ | (99,749,986 | ) | | | $ | 327,242 | |
| | | | | | | | | | | |
| | | Global Bond Fund | | | | | | |
| Temporary differences | | | | $ (29,587 | ) | | | | | |
| Unrealized gains (losses) – net | | | | 194,859 | | | | | | |
| Total accumulated gains (losses) – net | | | | $165,272 | | | | | | |
| * | The capital losses will carry forward indefinitely. |
At the Fund’s election, certain losses incurred within the taxable year (Qualified Late-Year Losses) are deemed to arise on the first business day of the Fund’s next taxable year. Global Bond Fund incurred and will elect to defer late-year ordinary losses and post-October capital losses of $3,965 and $25,298, respectively, during fiscal year 2019.
As of December 31, 2019, the aggregate unrealized security gains (losses) on investments and other financial instruments, if any, based on cost for U.S. federal income tax purposes were as follows:
| | | Emerging Markets
Bond Fund | | | Emerging Markets
Corporate Debt Fund | |
| Tax cost | | | $ | 167,293,328 | | | | $ | 59,633,602 | |
| Gross unrealized gain | | | | 12,901,058 | | | | | 2,505,199 | |
| Gross unrealized loss | | | | (1,822,718 | ) | | | | (392,178 | ) |
| Net unrealized security gain | | | $ | 11,078,340 | | | | $ | 2,113,021 | |
| | | | | | | | | | | |
| | | Global Bond Fund | | | | | | |
| Tax cost | | | $ | 11,356,325 | | | | | | |
| Gross unrealized gain | | | | 258,833 | | | | | | |
| Gross unrealized loss | | | | (64,197 | ) | | | | | |
| Net unrealized security gain | | | $ | 194,636 | | | | | | |
The difference between book-basis and tax-basis unrealized gains (losses) is attributable to the tax treatment of other financial instruments, amortization of premium and wash sales.
Permanent items identified during the fiscal year ended December 31, 2019 have been reclassified among the components of net assets based on their tax basis treatment as follows:
| | | Total Distributable
Earnings (Loss) | | | Paid-in Capital | |
| Emerging Markets Bond Fund | | | $125,932 | | | | $(125,932 | ) |
| Global Bond Fund | | | 13,540 | | | | (13,540 | ) |
83
Notes to Financial Statements (continued)
The permanent differences are primarily attributable to the tax treatment of certain distributions and certain expenses.
| 5. | PORTFOLIO SECURITIES TRANSACTIONS |
Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2019 were as follows:
| | | U.S.
Government
Purchases* | | | Non-U.S.
Government
Purchases | | | U.S.
Government
Sales* | | | Non-U.S.
Government
Sales |
| Emerging Markets Bond Fund | | $ | – | | | $ | 82,844,426 | | | $ | – | | | $ | 101,845,589 |
| Emerging Markets Corporate Debt Fund | | | – | | | | 40,687,451 | | | | – | | | | 28,896,640 |
| Global Bond Fund | | | 25,661,183 | | | | 7,739,777 | | | | 25,641,814 | | | | 8,155,791 |
| * | Includes U.S. Government sponsored enterprises securities. |
Each Fund is permitted to purchase and sell securities (“cross-trade”) from and to other Lord Abbett funds or client accounts pursuant to procedures approved by the Board in compliance with Rule 17a-7 under the Act (the “Rule”). Each cross-trade is executed at a fair market price in compliance with provisions of the Rule. For the fiscal year ended December 31, 2019, Emerging Markets Bond Fund engaged in cross-trade sales of $995,889 which resulted in a net realized gain of $7,203.
| 6. | DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Each Fund entered into forward foreign currency exchange contracts for the fiscal year ended December 31, 2019 (as described in note 2(g)). A forward foreign currency exchange contract reduces each Fund’s exposure to changes in the value of the currency it will deliver (or settle in cash) and increases its exposure to changes in the value of the currency it will receive (or settle in cash) for the duration of the contract. Each Fund’s use of forward foreign currency exchange contracts involves the risk that Lord Abbett will not accurately predict currency movements, and each Fund’s returns could be reduced as a result. Forward foreign currency exchange contracts are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedged positions, that the U.S. dollar will decline relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time. Each Fund’s risk of loss from counterparty credit risk is the unrealized appreciation on forward foreign currency exchange contracts and deposits with brokers as collateral.
Each Fund entered into futures contracts for the fiscal year ended December 31, 2019 (as described in note 2(h)) to economically hedge against changes in interest rates. The Funds bear the risk of interest rates moving unexpectedly, in which case the Funds may not achieve the anticipated benefits of the futures contracts and realize a loss. There is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees futures against default. There is minimal counterparty credit risk to each Fund since centrally cleared credit default swaps are traded through a central clearinghouse. As the counterparty to all centrally cleared credit default swaps, the clearinghouse guarantees credit default swaps against default.
Each Fund entered into credit default swaps for the fiscal year ended December 31, 2019 (as described in note 2(n)) to hedge credit risk. Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of underlying securities within an index or the referenced obligation in the event of a defined credit event, such as payment default or bankruptcy. Under a credit default swap one party acts as a guarantor by receiving the fixed
84
Notes to Financial Statements (continued)
periodic payment in exchange for the commitment to purchase the underlying security at par or the referenced obligation if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap contracts in the Statements of Operations. Each Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. There is minimal counterparty credit risk to each Fund since centrally cleared credit default swaps are traded through a central clearinghouse. As the counterparty to all centrally cleared credit default swaps, the clearinghouse guarantees credit default swaps against default.
As of December 31, 2019, each Fund had the following derivatives at fair value, grouped into appropriate risk categories that illustrate the Funds’ use of derivative instruments:
| | Emerging Markets Bond Fund | |
| Asset Derivatives | | Interest
Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Credit Default Swap Contracts(1) | | | – | | | | – | | | $ | 3,153 | |
| Futures Contracts(2) | | $ | 233,803 | | | | – | | | | – | |
| | | | | | | | | | | | | |
| Liability Derivatives | | | | | | | | | | | | |
| Futures Contracts(2) | | $ | 429,570 | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts(3) | | | – | | | $ | 35,458 | | | | – | |
| | | | | | | | | | | | | |
| Emerging Markets Corporate Debt Fund | |
| Asset Derivatives | | Interest
Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Centrally Cleared Credit Default Swap Contracts(4) | | | – | | | | – | | | $ | 27,677 | |
| Credit Default Swap Contracts(1) | | | – | | | | – | | | | 157 | |
| Futures Contracts(2) | | $ | 159,050 | | | | – | | | | – | |
| | | | | | | | | | | | | |
| Liability Derivatives | | | | | | | | | | | | |
| Futures Contracts(2) | | $ | 71,943 | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts(3) | | | – | | | $ | 5,078 | | | | – | |
| | | | | | | | | | | | | |
| | | | | | Global Bond Fund | |
| Asset Derivatives | | Interest
Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Centrally Cleared Credit Default Swap Contracts(4) | | | – | | | | – | | | $ | 16,987 | |
| Forward Foreign Currency Exchange Contracts(5) | | | – | | | $ | 14,862 | | | | – | |
| Futures Contracts(2) | | $ | 246 | | | | – | | | | – | |
| | | | | | | | | | | | | |
| Liability Derivatives | | | | | | | | | | | | |
| Futures Contracts(2) | | $ | 1,317 | | | | – | | | | – | |
| Forward Foreign Currency Exchange Contracts(3) | | | – | | | $ | 17,056 | | | | – | |
| (1) | Statements of Assets and Liabilities location: Credit default swap agreements receivable, at fair value. |
| (2) | Statements of Assets and Liabilities location: Includes cumulative unrealized appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
| (3) | Statements of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts. |
| (4) | Statements of Assets and Liabilities location: Includes cumulative unrealized appreciation/depreciation of centrally cleared swap contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
| (5) | Statements of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts. |
85
Notes to Financial Statements (continued)
Transactions in derivative instruments for the year ended December 31, 2019, were as follows:
| Emerging Markets Bond Fund |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Net Realized Gain (Loss) | | | | | | | | | | | | |
| Credit Default Swap Contracts(1) | | | – | | | | – | | | $ | 51,344 | |
| Forward Foreign Currency Exchange Contracts(2) | | | – | | | $ | 210,883 | | | | – | |
| Futures Contracts(3) | | $ | 541,736 | | | | – | | | | – | |
| Net Change in Unrealized Appreciation/Depreciation | | | | | | | | | | | | |
| Credit Default Swap Contracts(4) | | | – | | | | – | | | $ | 30,385 | |
| Forward Foreign Currency Exchange Contracts(5) | | | – | | | $ | (16,435 | ) | | | – | |
| Futures Contracts(6) | | $ | (181,365 | ) | | | – | | | | – | |
| Average Number of Contracts/Notional Amounts* | | | | | | | | | | | | |
| Credit Default Swap Contracts(7) | | | – | | | | – | | | $ | 6,810,385 | |
| Forward Foreign Currency Exchange Contracts(7) | | | – | | | $ | 3,257,744 | | | | – | |
| Futures Contracts(8) | | | 193 | | | | – | | | | – | |
| | | | | | | | | | | | | |
| Emerging Markets Corporate Debt Fund |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Net Realized Gain (Loss) | | | | | | | | | | | | |
| Credit Default Swap Contracts(1) | | | – | | | | – | | | $ | 18,764 | |
| Forward Foreign Currency Exchange Contracts(2) | | | – | | | $ | 10,383 | | | | – | |
| Futures Contracts(3) | | $ | (432,046 | ) | | | – | | | | – | |
| Net Change in Unrealized Appreciation/Depreciation | | | | | | | | | | | | |
| Credit Default Swap Contracts(4) | | | – | | | | – | | | $ | 30,683 | |
| Forward Foreign Currency Exchange Contracts(5) | | | – | | | $ | (5,078 | ) | | | – | |
| Futures Contracts(6) | | $ | 180,587 | | | | – | | | | – | |
| Average Number of Contracts/Notional Amounts* | | | | | | | | | | | | |
| Credit Default Swap Contracts(7) | | | – | | | | – | | | $ | 940,769 | |
| Forward Foreign Currency Exchange Contracts(7) | | | – | | | $ | 275,155 | | | | – | |
| Futures Contracts(8) | | | 88 | | | | – | | | | – | |
86
Notes to Financial Statements (continued)
| | Global Bond Fund |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | |
| Net Realized Gain (Loss) | | | | | | | | | | | | |
| Credit Default Swap Contracts(1) | | | – | | | | – | | | $ | 16,023 | |
| Forward Foreign Currency Exchange Contracts(2) | | | – | | | $ | 23,538 | | | | – | |
| Futures Contracts(3) | | $ | (4,163 | ) | | | – | | | | – | |
| Net Change in Unrealized Appreciation/Depreciation | | | | | | | | | | | | |
| Credit Default Swap Contracts(4) | | | – | | | | – | | | $ | 20,175 | |
| Forward Foreign Currency Exchange Contracts(5) | | | – | | | $ | (34,936 | ) | | | – | |
| Futures Contracts(6) | | $ | (2,328 | ) | | | – | | | | – | |
| Average Number of Contracts/Notional Amounts* | | | | | | | | | | | | |
| Credit Default Swap Contracts(7) | | | – | | | | – | | | $ | 1,385,154 | |
| Forward Foreign Currency Exchange Contracts(7) | | | – | | | $ | 3,612,931 | | | | – | |
| Futures Contracts(8) | | | 8 | | | | – | | | | – | |
| * | Calculated based on the number of contracts or notional amounts for the fiscal year ended December 31, 2019. |
| (1) | Statements of Operations location: Net realized gain (loss) on swap contracts. |
| (2) | Statements of Operations location: Net realized gain (loss) on forward foreign currency exchange contracts. |
| (3) | Statements of Operations location: Net realized gain (loss) on futures contracts. |
| (4) | Statements of Operations location: Net change in unrealized appreciation/depreciation on swap contracts. |
| (5) | Statements of Operations location: Net change in unrealized appreciation/depreciation on forward foreign currency exchange contracts. |
| (6) | Statements of Operations location: Net change in unrealized appreciation/depreciation on futures contracts. |
| (7) | Amount represents notional amounts in U.S. dollars. |
| (8) | Amount represents number of contracts. |
| 7. | DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES |
The Financial Accounting Standards Board (“FASB”) requires disclosures intended to help better assess the effect or potential effect of offsetting arrangements on a fund’s financial position. The following tables illustrate gross and net information about recognized assets and liabilities eligible for offset in the Statements of Assets and Liabilities; and disclose such amounts subject to an enforceable master netting agreement or similar agreement, by a counterparty. A master netting agreement is an agreement between a fund and a counterparty which provides for the net settlement of amounts owed under all contracts traded under that agreement, as well as cash collateral, through a single payment by one party to the other in the event of default on or termination of any one contract. The Funds’ accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master netting agreement does not result in an offset of reported amounts of financial assets and liabilities in the Statements of Assets and Liabilities across transactions between the Funds and the applicable counterparty:
87
Notes to Financial Statements (continued)
| | | | Emerging Markets Bond Fund |
| Description | | Gross Amounts of
Recognized Assets | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Assets Presented
in the Statement of
Assets and Liabilities |
| Credit Default Swap Contracts | | $ | 3,153 | | | $ | – | | | $ | 3,153 |
| Repurchase Agreement | | | 3,270,054 | | | | – | | | | 3,270,054 |
| Total | | $ | 3,273,207 | | | $ | – | | | $ | 3,273,207 |
| | | Net Amounts
of Assets
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Received(a) | | | Securities
Collateral
Received(a) | | | Net
Amount(b) |
| Citibank | | $ | 3,153 | | | $ | – | | | $ | – | | | $ | – | | | | $3,153 |
| Fixed Income Clearing Corp. | | | 3,270,054 | | | | – | | | | – | | | | (3,270,054 | ) | | | – |
| Total | | $ | 3,273,207 | | | $ | – | | | $ | – | | | $ | (3,270,054 | ) | | | $3,153 |
| Description | | Gross Amounts of
Recognized Liabilities | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Liabilities Presented
in the Statement of
Assets and Liabilities |
| Forward Foreign Currency Exchange Contracts | | | $35,458 | | | $ | – | | | | $35,458 |
| Total | | | $35,458 | | | $ | – | | | | $35,458 |
| | | Net Amounts
of Liabilities
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Pledged(a) | | | Securities
Collateral
Pledged(a) | | | Net
Amount(c) |
| Morgan Stanley | | $ | 647 | | | $ | – | | | $ | – | | | $ | – | | | $ | 647 |
| State Street Bank and Trust | | | 34,811 | | | | – | | | | – | | | | – | | | | 34,811 |
| Total | | $ | 35,458 | | | $ | – | | | $ | – | | | $ | – | | | $ | 35,458 |
| | | | | | Emerging Markets Corporate Debt Fund |
| Description | | Gross Amounts of
Recognized Assets | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Assets Presented
in the Statement of
Assets and Liabilities |
| Credit Default Swap Contracts | | $ | 157 | | | $ | – | | | $ | 157 |
| Repurchase Agreement | | | 2,243,063 | | | | – | | | | 2,243,063 |
| Total | | $ | 2,243,220 | | | $ | – | | | $ | 2,243,220 |
| | | Net Amounts
of Assets
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Received(a) | | | Securities
Collateral
Received(a) | | | Net
Amount(b) |
| Citibank | | $ | 157 | | | $ | – | | | $ | – | | | $ | – | | | | $157 |
| Fixed Income Clearing Corp. | | | 2,243,063 | | | | – | | | | – | | | | (2,243,063 | ) | | | – |
| Total | | $ | 2,243,220 | | | $ | – | | | $ | – | | | $ | (2,243,063 | ) | | | $157 |
88
Notes to Financial Statements (continued)
| | | Emerging Markets Corporate Debt Fund |
| Description | | Gross Amounts of
Recognized Liabilities | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Liabilities Presented
in the Statement of
Assets and Liabilities |
| Forward Foreign Currency Exchange Contracts | | | $5,078 | | | $ | – | | | | $5,078 |
| Total | | | $5,078 | | | $ | – | | | | $5,078 |
| | | Net Amounts
of Liabilities
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Pledged(a) | | | Securities
Collateral
Pledged(a) | | | Net
Amount(c) |
| Morgan Stanley | | $ | 154 | | | $ | – | | | $ | – | | | $ | – | | | $ | 154 |
| State Street Bank and Trust | | | 3,436 | | | | – | | | | – | | | | – | | | | 3,436 |
| Toronto Dominion Bank | | | 1,488 | | | | – | | | | – | | | | – | | | | 1,488 |
| Total | | $ | 5,078 | | | $ | – | | | $ | – | | | $ | – | | | $ | 5,078 |
| | | | | | | | | Global Bond Fund |
| Description | | Gross Amounts of
Recognized Assets | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Assets Presented
in the Statement of
Assets and Liabilities |
| Forward Foreign Currency Exchange Contracts | | $ | 14,862 | | | $ | – | | | $ | 14,862 |
| Repurchase Agreement | | | 805,163 | | | | – | | | | 805,163 |
| Total | | $ | 820,025 | | | $ | – | | | $ | 820,025 |
| | | Net Amounts
of Assets
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Received(a) | | | Securities
Collateral
Received(a) | | | Net
Amount(b) |
| Bank of America | | $ | 4,368 | | | $ | (634 | ) | | $ | – | | | $ | – | | | | $3,734 |
| Barclays Bank plc | | | 3,918 | | | | (3,918 | ) | | | – | | | | – | | | | – |
| Citibank | | | 1,791 | | | | (1,791 | ) | | | – | | | | – | | | | – |
| Fixed Income Clearing Corp. | | | 805,163 | | | | – | | | | – | | | | (805,163 | ) | | | – |
| J.P. Morgan | | | 1,759 | | | | (717 | ) | | | – | | | | – | | | | 1,042 |
| Morgan Stanley | | | 1,299 | | | | (1,299 | ) | | | – | | | | – | | | | – |
| State Street Bank and Trust | | | 1,091 | | | | – | | | | – | | | | – | | | | 1,091 |
| Toronto Dominion Bank | | | 636 | | | | (636 | ) | | | – | | | | – | | | | – |
| Total | | $ | 820,025 | | | $ | (8,995 | ) | | $ | – | | | $ | (805,163 | ) | | | $5,867 |
| Description | | Gross Amounts of
Recognized Liabilities | | | Gross Amounts
Offset in the
Statement of Assets
and Liabilities | | | Net Amounts of
Liabilities Presented
in the Statement of
Assets and Liabilities |
| Forward Foreign Currency Exchange Contracts | | | $17,056 | | | $ | – | | | | $17,056 |
| Total | | | $17,056 | | | $ | – | | | | $17,056 |
89
Notes to Financial Statements (continued)
| | | | | | Global Bond Fund |
| | | Net Amounts
of Liabilities
Presented in | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | | |
| Counterparty | | the Statement
of Assets and
Liabilities | | | Financial
Instruments | | | Cash
Collateral
Pledged(a) | | | Securities
Collateral
Pledged(a) | | | Net
Amount(c) |
| Bank of America | | $ | 634 | | | $ | (634 | ) | | $ | – | | | $ | – | | | $ | – |
| Barclays Bank plc | | | 4,357 | | | | (3,918 | ) | | | – | | | | – | | | | 439 |
| Citibank | | | 2,371 | | | | (1,791 | ) | | | – | | | | – | | | | 580 |
| J.P. Morgan | | | 717 | | | | (717 | ) | | | – | | | | – | | | | – |
| Morgan Stanley | | | 5,799 | | | | (1,299 | ) | | | – | | | | – | | | | 4,500 |
| Toronto Dominion Bank | | | 3,178 | | | | (636 | ) | | | – | | | | – | | | | 2,542 |
| Total | | $ | 17,056 | | | $ | (8,995 | ) | | $ | – | | | $ | – | | | $ | 8,061 |
| (a) | Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets (liabilities) presented in the Statements of Assets and Liabilities, for each respective counterparty. |
| (b) | Net amount represents the amount owed to the Fund by the counterparty as of December 31, 2019. |
| (c) | Net amount represents the amount owed by the Fund to the counterparty as of December 31, 2019. |
| 8. | DIRECTORS’ REMUNERATION |
The Company’s officers and the one Director who are associated with Lord Abbett do not receive any compensation from the Company for serving in such capacities. Independent Directors’ fees are allocated among all Lord Abbett-sponsored funds based on the net assets of each fund. There is an equity-based plan available to all Independent Directors under which Independent Directors must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, Directors’ fees. The deferred amounts are treated as though equivalent dollar amounts had been invested in the funds. Such amounts and earnings accrued thereon are included in Directors’ fees on the Statements of Operations and in Directors’ fees payable on the Statements of Assets and Liabilities and are not deductible for U.S. federal income tax purposes until such amounts are paid.
The Company has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of each Fund’s expenses.
For the period ended August 7, 2019, the Funds and certain other funds managed by Lord Abbett (collectively, the “Participating Funds”) entered into a Syndicated Facility with various lenders for $1.1 billion whereas State Street Bank and Trust Company (“SSB”) participated as a lender and as agent for the lenders. The Participating Funds are subject to graduated borrowing limits of one-third of Fund net assets (if Fund net assets are less than $750 million), $250 million, $300 million, $350 million, or $1 billion, based on past borrowings and likelihood of future borrowings, among other factors.
Effective August 8, 2019, the Participating Funds entered into a Syndicated Facility with various lenders for $1.17 billion whereas SSB participates as a lender and as agent for the lenders. The Participating Funds are subject to graduated borrowing limits of one-third of Fund net assets (if net assets are less than $750 million), $250 million, $300 million, $500 million, or $1 billion, based on past borrowings and likelihood of future borrowings, among other factors.
90
Notes to Financial Statements (continued)
For the period ended August 7, 2019, the Participating Funds entered into an additional line of credit facility with SSB for $250 million (the “Bilateral Facility” and together with the Syndicated Facility, the “Facilities”). Under the Bilateral Facility, each Participating Fund may borrow up to the lesser of $250 million or one-third of Fund net assets.
Effective August 8, 2019, the Participating Funds entered into a Bilateral Facility with SSB for $330 million ($250 million committed and $80 million uncommitted). Under the Bilateral Facility, the Participating Funds are subject to graduated borrowing limits of one-third of Fund net assets (if net assets are less than $750 million), $250 million, $300 million, or $330 million, based on past borrowings and likelihood of future borrowings, among other factors.
The Facilities are to be used for temporary or emergency purposes as an additional source of liquidity to satisfy redemptions.
For the fiscal year ended December 31, 2019, the Funds did not utilize the Facilities.
| 11. | INTERFUND LENDING PROGRAM |
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC exemptive order”), certain registered open-end management investment companies managed by Lord Abbett, including each Fund, participate in a joint lending and borrowing program (the “Interfund Lending Program”). The SEC exemptive order allows the Funds to borrow money from and lend money to each other for temporary or emergency purposes subject to the limitations and conditions.
For the fiscal year ended December 31, 2019, the Funds did not participate as a borrower or lender in the Interfund Lending Program.
| 12. | CUSTODIAN AND ACCOUNTING AGENT |
SSB is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating each Fund’s NAV.
| 13. | SECURITIES LENDING AGREEMENT |
The Funds have 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 Funds’ 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 Funds on the next business day. As with other extensions of credit, a Fund may experience a delay in the recovery of their securities or incur a loss should the borrower of its securities breach its agreement with the Fund or become insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan. Any income earned from lending securities will be noted on the Statements of Operations.
For the fiscal year ended December 31, 2019, the Funds did not loan any securities.
Each Fund is subject to the risks of investing in securities that are issued by non-U.S. entities, the risks of investing in derivatives, liquidity risk, and the risks from leverage.
91
Notes to Financial Statements (continued)
Foreign securities may pose greater risks than domestic securities, including greater price fluctuations, less government regulation, higher transaction costs and other costs, and delays in settlement to the extent they are traded on non-U.S. exchanges or markets. Foreign securities may also be subject to inadequate exchange control regulations and the imposition of economic sanctions or other government restrictions. These risks generally are greater for emerging markets securities. Foreign investments also may be affected by changes in currency rates or currency controls.
The risks associated with derivatives may be different from and greater than the risks associated with directly investing in securities. Derivatives are subject to risks such as liquidity risk, leveraging risk, interest rate risk, market risk, and credit risk. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the value of the underlying asset, rate, or index. Whether a Fund’s use of derivatives is successful will depend on, among other things, the Fund’s ability to correctly forecast market movements, changes in foreign exchange and interest rates, and other factors. Losses may also arise from the failure of a derivative counterparty to meet its contractual obligations. If a Fund incorrectly forecasts these and other factors, its performance could suffer. A Fund’s use of derivatives could result in a loss exceeding the amount of the Fund’s investment in these instruments.
Emerging Markets Bond Fund is non-diversified, which means that it may invest a greater portion of its assets in a single issuer than a diversified fund. Thus, the Fund may be exposed to greater risk.
Each Fund may invest in swap contracts. Swap contracts are bilateral agreements between a fund and its counterparty. Each party is exposed to the risk of default by the other. In addition, swap contracts may involve a small investment of cash compared to the risk assumed, with the result that small changes may produce disproportionate and substantial gains or losses to a Fund.
Each Fund may invest in convertible securities, which have both equity and fixed income risk characteristics. Generally, convertible securities offer lower interest or dividend yields than non-convertible securities of similar quality and less potential for gains or capital appreciation in a rising equity securities market than equity securities. They tend to be more volatile than other fixed income securities and the market for convertible securities may be less liquid than markets for stocks or bonds. A significant portion of convertible securities have below investment grade credit ratings and are subject to increased credit and liquidity risks.
Each Fund may invest in credit default swap and interest rate swap contracts. Such contracts are subject to the risk that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements. Credit default swaps are subject to the risk and that Lord Abbett does not correctly predict the creditworthiness of the issuers of the reference obligation on which the swap is based. Interest rate swaps are subject to the risk that Lord Abbett does not correctly anticipate changes in interest rates.
Each Fund may invest in senior loans, which are subject to increased credit and liquidity risks. Senior loans are business loans made to borrowers that may be U.S. or foreign corporations, partnerships, or other business entities. The senior loans in which a Fund invests may consist primarily of senior loans that are rated below investment grade or, if unrated, deemed by Lord Abbett to be equivalent to below investment grade securities. Below investment grade senior loans, as in the case of high-yield debt securities, or junk bonds, are usually more credit sensitive than interest rate sensitive, although the value of these instruments may be impacted by broader interest rate swings in the overall fixed income market. In addition, senior loans may be subject to structural subordination.
92
Notes to Financial Statements (continued)
Illiquid securities may lower a Fund’s returns since it may be unable to sell these securities at its desired time or price. To the extent illiquid securities can be sold, a Fund may have to do so at disadvantageous prices in order to meet requests for the redemption of Fund shares.
Leverage, including borrowing, may increase volatility in a Fund by magnifying the effect of changes in the value of each Fund’s holdings. The use of leverage may cause investors in a Fund to lose more money in adverse environments than would be the case in the absence of leverage.
Each Fund is subject to the general risks and considerations associated with investing in debt securities and to the changing prospects of individual companies and/or sectors in which a Fund invests, including interest rate risk. When interest rates rise, the prices of debt securities and an investment in a Fund are likely to decline. In times of economic uncertainty, high-yield debt securities (“lower-rated bonds” or “junk bonds”) may decline in price, even when interest rates are falling. There is also the risk that an issuer of a debt security will fail to make timely payments of principal or interest to a Fund, a risk that is greater with junk bonds. A default, or concerns in the market about an increase in risk of default, may result in losses to a Fund. High-yield securities are subject to greater price fluctuations, as well as additional risks. The market for below investment grade securities may be less liquid, which may make such securities more difficult to sell at an acceptable price, especially during periods of financial distress, increased market volatility, or significant market decline.
Each Fund is subject to the risk of investing in securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities (such as the Government National Mortgage Association (“Ginnie Mae’’), the Federal National Mortgage Association (“Fannie Mae”), or the Federal Home Loan Mortgage Corporation (“Freddie Mac”)). Unlike Ginnie Mae securities, securities issued or guaranteed by U.S. Government-related organizations such as Fannie Mae and Freddie Mac are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government would provide financial support to its agencies and instrumentalities if not required to do so by law. Consequently, each Fund may be required to look principally to the agency issuing or guaranteeing the obligation.
The mortgage-related and asset-backed securities in which a Fund may invest may be particularly sensitive to changes in prevailing interest rates, economic conditions, including delinquencies and/or defaults. These changes can affect the value, income and/or liquidity of such positions. When interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. Early principal repayment may deprive a Fund of income payments above current market rates. Alternatively, rising interest rates may cause payments to occur at a slower-than-expected rate, extending the duration of a security and typically reducing its value. The payment rate will thus affect the price and volatility of a mortgage-related security.
The cost of a Fund’s potential use of forward foreign currency exchange contracts varies with factors such as the currencies involved, the length of the contract period, and the market conditions prevailing. Foreign currency exchange rates may fluctuate significantly over short periods of time. Each Fund’s use of currency-related transactions involves the risk that Lord Abbett will not accurately predict currency movements, and each Fund’s returns could be reduced as a result. A decline in the value of foreign currencies relative to the U.S. dollar will reduce the value of securities held by the Funds that are denominated in those currencies.
93
Notes to Financial Statements (continued)
The securities markets of developing or emerging countries tend to be more vulnerable to economic, political and social instability, less liquid, are especially subject to greater price volatility, have a smaller market capitalization, have less government regulation and may not be subject to as extensive and frequent accounting, financial, and other reporting requirements as securities issued in more developed countries.
Bonds issued or guaranteed by foreign governments and governmental entities (commonly referred to as “sovereign debt”) are subject to the risk that such governments or entities are unable or unwilling to make interest payments and/or repay the principal owed. Emerging Markets Corporate Debt Fund may have limited recourse in such instances.
The Funds believe that their investment strategies with respect to foreign currencies will generate qualifying income under current U.S. federal income tax law. However, there can be no assurance that the U.S. Treasury Department will not issue regulations in the future (possibly with retroactive effect) that would treat some or all of each Fund’s foreign currency gains as nonqualifying income.
These factors can affect each Fund’s performance.
| 15. | SUMMARY OF CAPITAL TRANSACTIONS |
Transactions in shares of capital stock were as follows:
| Emerging Markets Bond Fund | | Year Ended
December 31, 2019 | | | Year Ended
December 31, 2018 | |
| Class A Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 759,047 | | | $ | 3,887,967 | | | | 587,443 | | | $ | 3,121,432 | |
| Converted from Class B* | | | – | | | | – | | | | 1,934 | | | | 10,636 | |
| Converted from Class C** | | | 88,858 | | | | 458,921 | | | | 96,257 | | | | 487,578 | |
| Reinvestment of distributions | | | 109,461 | | | | 566,322 | | | | 111,845 | | | | 570,854 | |
| Shares reacquired | | | (425,427 | ) | | | (2,192,183 | ) | | | (2,066,939 | ) | | | (10,578,964 | ) |
| Increase (decrease) | | | 531,939 | | | $ | 2,721,027 | | | | (1,269,460 | ) | | $ | (6,388,464 | ) |
| Class B Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 1 | | | $ | 5 | |
| Reinvestment of distributions | | | – | | | | – | | | | 14 | | | | 75 | |
| Shares reacquired | | | – | | | | – | | | | (35 | ) | | | (181 | ) |
| Converted to Class A* | | | – | | | | – | | | | (1,924 | ) | | | (10,636 | ) |
| Decrease | | | – | | | $ | – | | | | (1,944 | ) | | $ | (10,737 | ) |
| Class C Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 63,874 | | | $ | 329,770 | | | | 65,318 | | | $ | 344,264 | |
| Reinvestment of distributions | | | 12,055 | | | | 62,550 | | | | 17,489 | | | | 90,132 | |
| Shares reacquired | | | (82,952 | ) | | | (428,172 | ) | | | (200,712 | ) | | | (1,046,194 | ) |
| Converted to Class A** | | | (88,318 | ) | | | (458,921 | ) | | | (95,690 | ) | | | (487,578 | ) |
| Decrease | | | (95,341 | ) | | $ | (494,773 | ) | | | (213,595 | ) | | $ | (1,099,376 | ) |
94
Notes to Financial Statements (continued)
| Emerging Markets Bond Fund | | Year Ended
December 31, 2019 | | | Year Ended
December 31, 2018 | |
| Class F Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 751,671 | | | $ | 3,885,558 | | | | 2,715,719 | | | $ | 13,681,480 | |
| Reinvestment of distributions | | | 49,707 | | | | 257,311 | | | | 74,082 | | | | 377,534 | |
| Shares reacquired | | | (639,671 | ) | | | (3,305,775 | ) | | | (3,344,033 | ) | | | (16,640,833 | ) |
| Increase (decrease) | | | 161,707 | | | $ | 837,094 | | | | (554,232 | ) | | $ | (2,581,819 | ) |
| Class F3 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 49,375 | | | $ | 254,246 | | | | 45,380 | | | $ | 226,706 | |
| Reinvestment of distributions | | | 5,828 | | | | 30,122 | | | | 4,627 | | | | 23,559 | |
| Shares reacquired | | | (10,269 | ) | | | (52,801 | ) | | | (45,083 | ) | | | (229,842 | ) |
| Increase | | | 44,934 | | | $ | 231,567 | | | | 4,924 | | | $ | 20,423 | |
| Class I Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 236,663 | | | $ | 1,231,310 | | | | 5,593,378 | | | $ | 27,129,289 | |
| Reinvestment of distributions | | | 1,647,082 | | | | 8,492,217 | | | | 1,793,001 | | | | 9,141,187 | |
| Shares reacquired | | | (5,983,686 | ) | | | (30,228,475 | ) | | | (7,965,710 | ) | | | (41,243,845 | ) |
| Decrease | | | (4,099,941 | ) | | $ | (20,504,948 | ) | | | (579,331 | ) | | $ | (4,973,369 | ) |
| Class R2 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 4,022 | | | $ | 20,746 | | | | 4,816 | | | $ | 24,585 | |
| Reinvestment of distributions | | | 153 | | | | 785 | | | | 238 | | | | 1,204 | |
| Shares reacquired | | | (8,109 | ) | | | (42,509 | ) | | | (5,885 | ) | | | (30,103 | ) |
| Decrease | | | (3,934 | ) | | $ | (20,978 | ) | | | (831 | ) | | $ | (4,314 | ) |
| Class R3 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 8,044 | | | $ | 41,174 | | | | 16,297 | | | $ | 84,812 | |
| Reinvestment of distributions | | | 2,569 | | | | 13,246 | | | | 2,650 | | | | 13,446 | |
| Shares reacquired | | | (27,137 | ) | | | (141,883 | ) | | | (14,427 | ) | | | (74,617 | ) |
| Increase (decrease) | | | (16,524 | ) | | $ | (87,463 | ) | | | 4,520 | | | $ | 23,641 | |
| Class R4 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 16,949 | | | $ | 88,647 | | | | 27,294 | | | $ | 147,216 | |
| Reinvestment of distributions | | | 867 | | | | 4,499 | | | | 999 | | | | 5,130 | |
| Shares reacquired | | | (3,159 | ) | | | (16,283 | ) | | | (21,892 | ) | | | (108,681 | ) |
| Increase | | | 14,657 | | | $ | 76,863 | | | | 6,401 | | | $ | 43,665 | |
| Class R5 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 3 | | | $ | 20 | | | | 1,590 | | | $ | 8,686 | |
| Reinvestment of distributions | | | 124 | | | | 636 | | | | 191 | | | | 961 | |
| Shares reacquired | | | (1,712 | ) | | | (8,497 | ) | | | (4 | ) | | | (19 | ) |
| Increase (decrease) | | | (1,585 | ) | | $ | (7,841 | ) | | | 1,777 | | | $ | 9,628 | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 21,135 | | | $ | 109,600 | | | | 7,702 | | | $ | 38,292 | |
| Reinvestment of distributions | | | 227 | | | | 1,170 | | | | 438 | | | | 2,274 | |
| Shares reacquired | | | (6,051 | ) | | | (31,458 | ) | | | (39,033 | ) | | | (196,496 | ) |
| Increase (decrease) | | | 15,311 | | | $ | 79,312 | | | | (30,893 | ) | | $ | (155,930 | ) |
95
Notes to Financial Statements (continued)
| Emerging Markets Corporate Debt Fund | | Year Ended
December 31, 2019 | | | Year Ended
December 31, 2018 | |
| Class A Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 241,900 | | | $ | 3,643,467 | | | | 247,161 | | | $ | 3,741,694 | |
| Converted from Class C** | | | 3,985 | | | | 60,485 | | | | 482 | | | | 7,141 | |
| Reinvestment of distributions | | | 30,095 | | | | 456,068 | | | | 34,246 | | | | 505,938 | |
| Shares reacquired | | | (135,812 | ) | | | (2,051,314 | ) | | | (560,114 | ) | | | (8,325,293 | ) |
| Increase (decrease) | | | 140,168 | | | $ | 2,108,706 | | | | (278,225 | ) | | $ | (4,070,520 | ) |
| Class C Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 49,523 | | | $ | 750,813 | | | | 29,714 | | | $ | 450,326 | |
| Reinvestment of distributions | | | 5,387 | | | | 81,613 | | | | 5,925 | | | | 87,375 | |
| Shares reacquired | | | (37,062 | ) | | | (558,804 | ) | | | (46,007 | ) | | | (677,233 | ) |
| Converted to Class A** | | | (3,985 | ) | | | (60,485 | ) | | | (482 | ) | | | (7,141 | ) |
| Increase (decrease) | | | 13,863 | | | $ | 213,137 | | | | (10,850 | ) | | $ | (146,673 | ) |
| Class F Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,508,365 | | | $ | 23,010,387 | | | | 1,478,704 | | | $ | 22,076,798 | |
| Reinvestment of distributions | | | 86,747 | | | | 1,316,312 | | | | 90,629 | | | | 1,338,200 | |
| Shares reacquired | | | (535,676 | ) | | | (8,067,770 | ) | | | (1,661,790 | ) | | | (24,316,620 | ) |
| Increase (decrease) | | | 1,059,436 | | | $ | 16,258,929 | | | | (92,457 | ) | | $ | (901,622 | ) |
| Class F3 Shares | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 35 | | | $ | 530 | | | | 34 | | | $ | 505 | |
| Increase | | | 35 | | | $ | 530 | | | | 34 | | | $ | 505 | |
| Class I Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 444,917 | | | $ | 6,783,853 | | | | 102,570 | | | $ | 1,553,509 | |
| Reinvestment of distributions | | | 11,546 | | | | 174,309 | | | | 28,832 | | | | 425,176 | |
| Shares reacquired | | | (715,027 | ) | | | (10,613,868 | ) | | | (260,917 | ) | | | (3,986,582 | ) |
| Decrease | | | (258,564 | ) | | $ | (3,655,706 | ) | | | (129,515 | ) | | $ | (2,007,897 | ) |
| Class R2 Shares | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 364 | | | $ | 5,507 | | | | 410 | | | $ | 6,030 | |
| Increase | | | 364 | | | $ | 5,507 | | | | 410 | | | $ | 6,030 | |
| Class R3 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 367 | | | $ | 5,586 | | | | – | | | $ | – | |
| Reinvestment of distributions | | | 378 | | | | 5,730 | | | | 409 | | | | 6,024 | |
| Shares reacquired | | | – | | | | – | | | | (1,159 | ) | | | (18,026 | ) |
| Increase (decrease) | | | 745 | | | $ | 11,316 | | | | (750 | ) | | $ | (12,002 | ) |
| Class R4 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 224.11 | | | $ | 3,378 | | | | 1,768 | | | $ | 27,144 | |
| Reinvestment of distributions | | | 43.00 | | | | 648 | | | | 60 | | | | 887 | |
| Shares reacquired | | | (246 | ) | | | (3,717 | ) | | | (1,614 | ) | | | (23,854 | ) |
| Increase | | | 21.11 | | | $ | 309 | | | | 214 | | | $ | 4,177 | |
| Class R5 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 489 | | | $ | 7,403 | | | | 13,800 | | | $ | 199,887 | |
| Reinvestment of distributions | | | 779 | | | | 11,796 | | | | 359 | | | | 5,213 | |
| Shares reacquired | | | (2,083 | ) | | | (31,725 | ) | | | (828 | ) | | | (11,879 | ) |
| Increase (decrease) | | | (815 | ) | | $ | (12,526 | ) | | | 13,331 | | | $ | 193,221 | |
96
Notes to Financial Statements (continued)
| Emerging Markets Corporate Debt Fund | | Year Ended
December 31, 2019 | | | Year Ended
December 31, 2018 | |
| Class R6 Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 1,288 | | | $ | 19,535 | | | | 5,999 | | | $ | 86,097 | |
| Reinvestment of distributions | | | 354 | | | | 5,366 | | | | 69 | | | | 1,004 | |
| Shares reacquired | | | (133 | ) | | | (2,038 | ) | | | (123 | ) | | | (1,774 | ) |
| Increase | | | 1,509 | | | $ | 22,863 | | | | 5,945 | | | $ | 85,327 | |
| | | | | | | | | | | | | | | | | |
| Global Bond Fund | | Year Ended
December 31, 2019 | | | Period Ended
December 31, 2018(a) | |
| Class A Shares | | | Shares | | | | Amount | | | | Shares | | | | Amount | |
| Shares sold | | | 1,761 | | | $ | 17,612 | | | | 200,005 | | | $ | 2,000,049 | |
| Reinvestment of distributions | | | 7,806 | | | | 78,469 | | | | 2,855 | | | | 27,917 | |
| Shares reacquired | | | (14 | ) | | | (142 | ) | | | – | | | | – | |
| Increase | | | 9,553 | | | $ | 95,939 | | | | 202,860 | | | $ | 2,027,966 | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,282 | | | $ | 12,889 | | | | 25,000 | | | $ | 250,000 | |
| Reinvestment of distributions | | | 786 | | | | 7,901 | | | | 269 | | | | 2,632 | |
| Shares reacquired | | | 2 | | | | 22 | | | | – | | | | – | |
| Increase | | | 2,070 | | | $ | 20,812 | | | | 25,269 | | | $ | 252,632 | |
| Class F Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 200,000 | | | $ | 2,000,000 | |
| Reinvestment of distributions | | | 8,188 | | | | 82,307 | | | | 3,031 | | | | 29,639 | |
| Increase | | | 8,188 | | | $ | 82,307 | | | | 203,031 | | | $ | 2,029,639 | |
| Class F3 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 150,000 | | | $ | 1,500,000 | |
| Reinvestment of distributions | | | 6,334 | | | | 63,671 | | | | 2,352 | | | | 23,001 | |
| Increase | | | 6,334 | | | $ | 63,671 | | | | 152,352 | | | $ | 1,523,001 | |
| Class I Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 200,000 | | | $ | 2,000,000 | |
| Reinvestment of distributions | | | 8,189 | | | | 82,307 | | | | 3,030 | | | | 29,638 | |
| Increase | | | 8,189 | | | $ | 82,307 | | | | 203,030 | | | $ | 2,029,638 | |
| Class R3 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 25,000 | | | $ | 250,000 | |
| Reinvestment of distributions | | | 891 | | | | 8,956 | | | | 324 | | | | 3,168 | |
| Increase | | | 891 | | | $ | 8,956 | | | | 25,324 | | | $ | 253,168 | |
| Class R4 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 25,000 | | | $ | 250,000 | |
| Reinvestment of distributions | | | 958 | | | | 9,621 | | | | 351 | | | | 3,437 | |
| Increase | | | 958 | | | $ | 9,621 | | | | 25,351 | | | $ | 253,437 | |
| Class R5 Shares | | | | | | | | | | | | | | | | |
| Shares sold | | | – | | | $ | – | | | | 25,000 | | | $ | 250,000 | |
| Reinvestment of distributions | | | 1,024 | | | | 10,291 | | | | 379 | | | | 3,706 | |
| Increase | | | 1,024 | | | $ | 10,291 | | | | 25,379 | | | $ | 253,706 | |
97
Notes to Financial Statements (concluded)
| Global Bond Fund | | Year Ended
December 31, 2019 | | | Period Ended
December 31, 2018(a) | |
| Class R6 Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 3,739 | | | $ | 37,929 | | | | 163,564 | | | $ | 1,631,403 | |
| Reinvestment of distributions | | | 6,334 | | | | 63,667 | | | | 2,351 | | | | 22,991 | |
| Increase | | | 10,073 | | | $ | 101,596 | | | | 165,915 | | | $ | 1,654,394 | |
| * | | Automatic conversion of Class B shares occurred on the 25th day of the month (or, if the 25th day was not a business day, the next business day thereafter) following the eighth anniversary of the day on which the purchase order was accepted. Class B shares were closed on April 25, 2018. |
| ** | | Automatic conversion of Class C shares occurs on the 25th day of the month (or, if the 25th day was not a business day, the next business day thereafter) following the tenth anniversary of the day on which the purchase order was accepted. |
| (a) | | Commenced operations on July 26, 2018. |
98
Report of Independent Registered Public Accounting Firm
To the shareholders and Board of Directors of Lord Abbett Global Fund, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lord Abbett Global Fund, Inc. (the “Company”) comprising the Lord Abbett Emerging Markets Bond Fund, Lord Abbett Emerging Markets Corporate Debt Fund, and Lord Abbett Global Bond Fund, including the schedules of investments, as of December 31, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for the Funds, except Lord Abbett Global Bond Fund; the related statements of operations, changes in net assets, and the financial highlights for the periods indicated in the table below; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds constituting Lord Abbett Global Fund, Inc. as of December 31, 2019, and the results of their operations for the year then ended (or for the period listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
Individual Fund Constituting
the Lord Abbett Global Fund, Inc. | Statement of
Operations | Statements of
Changes in
Net Assets | Financial
Highlights |
| Lord Abbett Global Bond Fund | For the year ended
December 31, 2019 | For the year ended December 31, 2019 and the period from July 26, 2018 (commencement of operations) through December 31, 2018 |
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
99
Report of Independent Registered Public Accounting Firm
statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian, brokers, and selling or agent banks; when replies were not received from brokers and selling or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
New York, New York
February 26, 2020
We have served as the auditor of one or more Lord Abbett Family of Funds’ investment companies since 1932.
100
Supplemental Proxy Information (unaudited)
A joint special meeting of shareholders of each Fund was held on August 26, 2019. The joint special meeting was held for the purpose of electing members of each Fund’s Board of Directors. Shareholders elected the following ten (10) Directors at the joint special meeting:
| • | Eric C. Fast |
| • | Evelyn E. Guernsey |
| • | Julie A. Hill |
| • | Kathleen M. Lutito |
| • | James M. McTaggart |
| • | Charles O. Prince |
| • | Karla M. Rabusch |
| • | Mark A. Schmid |
| • | Douglas B. Sieg |
| • | James L.L. Tullis |
The results of the proxy solicitation on the preceding matter were as follows:
Lord Abbett Global Fund, Inc.
| Nominee Votes | Votes For | Votes Withheld |
| Eric C. Fast | 36,905,363.831 | 1,045,715.948 |
| Evelyn E. Guernsey | 36,899,311.908 | 1,051,767.871 |
| Julie A. Hill | 36,893,363.375 | 1,057,716.404 |
| Kathleen M. Lutito | 36,899,311.908 | 1,051,767.871 |
| James M. McTaggart | 36,905,363.831 | 1,045,715.948 |
| Charles O. Prince | 36,878,826.862 | 1,072,252.917 |
| Karla M. Rabusch | 36,899,017.908 | 1,052,061.871 |
| Mark A. Schmid | 36,905,363.831 | 1,045,715.948 |
| Douglas B. Sieg | 36,905,363.831 | 1,045,715.948 |
| James L.L. Tullis | 36,905,363.831 | 1,045,715.948 |
101
Basic Information About Management
The Board is responsible for the management of the business and affairs of the Company in accordance with the laws of the State of Maryland. The Board elects officers who are responsible for the day-to-day operations of each Fund and who execute policies authorized by the Board. The Board also approves an investment adviser to each Fund and continues to monitor the cost and quality of the services the investment adviser provides, and annually considers whether to renew the contract with the investment adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.
Lord Abbett, a Delaware limited liability company, is each Fund’s investment adviser. Designated Lord Abbett personnel are responsible for the day-to-day management of the Funds.
Interested Director
Mr. Sieg is affiliated with Lord Abbett and is an “interested person” of the Company as defined in the Act. Mr. Sieg is director/trustee of each of the 12 investment companies in the Lord Abbett Family of Funds, which consist of 57 investment portfolios. Mr. Sieg is an officer of the Lord Abbett Family of Funds.
Name, Address and
Year of Birth | | Current Position and
Length of Service
with the Company | | Principal Occupation and Other Directorships
During the Past Five Years |
Douglas B. Sieg
Lord, Abbett & Co. LLC
90 Hudson Street
Jersey City, NJ 07302
(1969) | | Director since 2016;
President and Chief Executive Officer since 2018 | | Principal Occupation: Managing Partner (since 2018) and was formerly Head of Client Services, joined Lord Abbett in 1994. Other Directorships: None. |
Independent Directors
The following Independent Directors also are directors/trustees of each of the 12 investment companies in the Lord Abbett Family of Funds, which consist of 57 investment portfolios.
Name, Address and
Year of Birth | | Current Position and
Length of Service
with the Company | | Principal Occupation and Other Directorships
During the Past Five Years |
Evelyn E. Guernsey
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1955) | | Director since 2011 | | Principal Occupation: None. Other Directorships: None. |
| | | | | |
Julie A. Hill
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1946) | | Director since 2004 | | Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of Anthem, Inc., a health benefits company (since 1994). |
| | | | | |
Kathleen M. Lutito
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1963) | | Director since 2017 | | Principal Occupation: President and Chief Investment Officer of CenturyLink Investment Management Company (since 2006). Other Directorships: None. |
102
Basic Information About Management (continued)
Name, Address and
Year of Birth | | Current Position and
Length of Service
with the Company | | Principal Occupation and Other Directorships
During the Past Five Years |
James M. McTaggart
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1947) | | Director since 2012 | | Principal Occupation: Independent management advisor and consultant (since 2012). Other Directorships: Blyth, Inc., a home products company (2004–2015). |
| | | | | |
Charles O. Prince
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1950) | | Director since 2019 | | Principal Occupation: None. Formerly Chairman and Chief Executive Officer, Citigroup, Inc. Other Directorships: Currently serves as director of Johnson & Johnson (2006–Present). Previously served as director of Xerox Corporation (2008–2018). |
| | | | | |
Karla M. Rabusch
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1959) | | Director since 2017 | | Principal Occupation: President and Director of Wells Fargo Funds Management, LLC (2003–2017); President of Wells Fargo Funds (2003–2016). Other Directorships: None. |
| | | | | |
Mark A. Schmid
Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1959) | | Director since 2016 | | Principal Occupation: Vice President and Chief Investment Officer of the University of Chicago (since 2009). Other Directorships: None. |
| | | | | |
James L.L. Tullis Lord, Abbett & Co. LLC
c/o Legal Dept.
90 Hudson Street
Jersey City, NJ 07302
(1947) | | Director since 2006;
Chairman since 2017 | | Principal Occupation: Chairman of Tullis Health Investors—FL LLC (since 2018); CEO of Tullis—Dickerson and Co. Inc., a venture capital management firm (1990–2016). Other Directorships: Currently serves as director of Crane Co. (since 1998), Alphatec Spine, Inc. (since 2018), and electroCore, Inc. (since 2018). |
Officers
None of the officers listed below have received compensation from the Company. All of the officers of the Company also may be officers of the other Lord Abbett Funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation During the Past Five Years” column indicate each officer’s position(s) and title(s) with Lord Abbett. Each officer serves for an indefinite term (i.e., until his or her death, resignation, retirement, or removal).
Name and
Year of Birth | | Current Position
with the Company | | Length of Service
of Current
Position | | Principal Occupation
During the Past Five Years |
Douglas B. Sieg
(1969) | | President and Chief Executive Officer | | Elected as President and Chief Executive Officer in 2018 | | Managing Partner of Lord Abbett (since 2018) and formerly Head of Client Services, joined Lord Abbett in 1994. |
103
Basic Information About Management (concluded)
Name and
Year of Birth | | Current Position
with the Company | | Length of Service
of Current
Position | | Principal Occupation
During the Past Five Years |
Jackson C. Chan
(1964) | | AML Compliance Officer | | Elected in 2018 | | Deputy Chief Compliance Officer and Director of Regulatory Affairs, joined Lord Abbett in 2014. |
| | | | | | | |
Pamela P. Chen
(1978) | | Vice President, Assistant Secretary and Privacy Officer | | Elected as Vice President and Assistant Secretary in 2018 and Privacy Officer in 2019 | | Associate General Counsel, joined Lord Abbett in 2017 and was formerly Special Counsel at Schulte, Roth & Zabel LLP (2005–2017). |
| | | | | | | |
John T. Fitzgerald
(1975) | | Vice President and Assistant Secretary | | Elected in 2018 | | Deputy General Counsel, joined Lord Abbett in 2018 and was formerly Deputy Head of U.S. Funds Legal, Executive Director and Assistant General Counsel at JPMorgan Chase (2005–2018). |
| | | | | | | |
Vito A. Fronda
(1969) | | Treasurer | | Elected in 2018 | | Partner and Director of Fund Treasury and Tax, joined Lord Abbett in 2003. |
| | | | | | | |
Bernard J. Grzelak
(1971) | | Chief Financial Officer and Vice President | | Elected in 2017 | | Partner and Chief Operating Officer, Global Funds and Risk, joined Lord Abbett in 2003. |
| | | | | | | |
Linda Y. Kim
(1980) | | Vice President and Assistant Secretary | | Elected in 2016 | | Counsel, joined Lord Abbett in 2015. |
| | | | | | | |
Joseph M. McGill
(1962) | | Chief Compliance Officer | | Elected in 2014 | | Partner and Chief Compliance Officer, joined Lord Abbett in 2014. |
| | | | | | | |
Amanda S. Ryan
(1978) | | Vice President and Assistant Secretary | | Elected in 2018 | | Counsel, joined Lord Abbett in 2016 and was formerly a Director and Corporate Counsel at PGIM Investments (2012–2016). |
| | | | | | | |
Lawrence B. Stoller
(1963) | | Vice President, Secretary and Chief Legal Officer | | Elected as Vice President and Secretary in 2007 and Chief Legal Officer in 2019 | | Partner and General Counsel, joined Lord Abbett in 2007. |
Please call 888-522-2388 for a copy of the statement of additional information, which contains further information about the Company’s Directors. It is available free upon request.
104
Approval of Advisory Contract
The Board, including all of the Directors who are not “interested persons” of the Company or of Lord Abbett, as defined in the Investment Company Act of 1940, as amended (the “Independent Directors”), annually considers whether to approve the continuation of the existing management agreement between each Fund and Lord Abbett (the “Agreement”). In connection with its most recent approval, the Board reviewed materials relating specifically to the Agreement, as well as numerous materials received throughout the course of the year, including information about each Fund’s investment performance compared to the performance of its benchmark. Before making its decision as to each Fund, the Board had the opportunity to ask questions and request further information, taking into account its knowledge of Lord Abbett gained through its meetings and discussions. These meetings and discussions included reviews of Fund performance conducted by members of the Contract Committee, the deliberations of the Contract Committee, and discussions between the Contract Committee and Lord Abbett’s management. The Independent Directors also met with their independent legal counsel in various private sessions at which no representatives of management were present.
The materials received by the Board as to each Fund included, but were not limited to: (1) for each Fund with meaningful performance history, information provided by Broadridge Financial Solutions (“Broadridge”) regarding the investment performance of the Fund compared to the investment performance of certain funds with similar investment styles as determined by Broadridge, based, in part, on the Fund’s Morningstar category (the “performance peer group”), and the investment performance of an appropriate benchmark; (2) information provided by Broadridge regarding the expense ratios, contractual and actual management fee rates, and other expense components for the Fund and certain funds in the same Morningstar category, with generally the same or similar share classes and operational characteristics, including asset size (the “expense peer group”); (3) certain supplemental investment performance information provided by Lord Abbett; (4) information provided by Lord Abbett on the expense ratios, management fee rates, and other expense components for the Fund; (5) sales and redemption information for the Fund; (6) information regarding Lord Abbett’s financial condition; (7) an analysis of the relative profitability of the Agreement to Lord Abbett; (8) information provided by Lord Abbett regarding the investment management fee schedules for Lord Abbett’s other advisory clients maintaining accounts with a similar investment strategy as the Fund (in the case of Emerging Markets Corporate Debt Fund and Global Bond Fund); and (9) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.
Investment Management and Related Services Generally.The Board considered the services provided by Lord Abbett to each Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all applicable legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest that may result from being engaged in other lines of business. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to each Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other. After reviewing these and related factors, the Board concluded that each Fund was likely to continue to benefit from the nature, extent and quality of the investment services provided by Lord Abbett under the Agreement.
Investment Performance.The Board reviewed each Fund’s investment performance in relation to that of its performance peer group and an appropriate benchmark as of various periods ended
105
Approval of Advisory Contract (continued)
June 30, 2019. As to Emerging Markets Bond Fund, the Board observed that the Fund’s investment performance was above the median of the performance peer group for the one- and three-year periods, but below the median for the five- and ten-year periods. As to Emerging Markets Corporate Debt Fund, the Board observed that the Fund’s investment performance was above the median of the performance peer group for the one- and five-year periods, but below the median of the performance peer group for the three-year period. As to Global Bond Fund, the Board observed that the Fund commenced operations on July 26, 2018 and therefore did not yet have investment performance for a full calendar year. The Board noted that, therefore, it would be prudent to allow the portfolio management team more time to develop its performance record with the Fund. The Board further considered Lord Abbett’s performance and reputation generally, the performance of other Lord Abbett-managed funds overseen by the Board, and the willingness of Lord Abbett to take steps intended to improve performance when appropriate. After reviewing these and related factors, the Board concluded that each Fund’s Agreement should be continued.
Lord Abbett’s Personnel and Methods.The Board considered the qualifications of the personnel providing investment management services to each Fund, in light of its investment objective and discipline, and other services provided to each Fund by Lord Abbett. Among other things, the Board considered the size, experience, and turnover of Lord Abbett’s staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining personnel.
Nature and Quality of Other Services.The Board considered the nature, quality, and extent of compliance, administrative, and other services performed by Lord Abbett and the nature and extent of Lord Abbett’s supervision of third party service providers, including each Fund’s transfer agent and custodian.
Expenses.The Board considered the expense level of each Fund, including the contractual and actual management fee rates, and the expense levels of the Fund’s expense peer group. It also considered how the expense level of each Fund related to those of the expense peer group and the amount and nature of the fees paid by shareholders. As to each Fund, the Board observed that the net total expense ratio of the Fund was below the median of the expense peer group. After reviewing these and related factors, the Board concluded, within the context of its overall approval of the Agreement, that the management fees paid by, and expense level of, each Fund were reasonable in light of all of the factors it considered and supported the continuation of the Agreement on behalf of each Fund.
Profitability.As to each Fund, the Board considered the level of Lord Abbett’s operating margin in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. It considered whether each Fund was profitable to Lord Abbett in connection with the Fund’s operation, including the fee that Lord Abbett receives from the Fund for providing administrative services to the Fund. The Board also considered the profits realized from other business segments of Lord Abbett, which may benefit from or be related to each Fund’s business. The Board considered Lord Abbett’s profit margins excluding Lord Abbett’s marketing and distribution expenses. The Board also considered Lord Abbett’s profit margins, without those exclusions, in comparison with available industry data and how those profit margins could affect Lord Abbett’s ability to recruit and retain personnel. The Board recognized that Lord Abbett’s overall profitability was a factor in enabling it to attract and retain qualified personnel to provide services to each Fund. After reviewing these and related factors, the Board concluded, within the context of
106
Approval of Advisory Contract (concluded)
its overall approval of the Agreement, that Lord Abbett’s profitability with respect to each Fund was not excessive.
Economies of Scale.As to each Fund, the Board considered the extent to which there had been economies of scale in managing the Fund, whether the Fund’s shareholders had appropriately benefited from such economies of scale, and whether there was potential for realization of any further economies of scale. With respect to Emerging Markets Bond Fund, the Board concluded that the contractual breakpoint in the existing management fee schedule adequately addressed any economies of scale in managing the Fund. With respect to each of the Emerging Markets Corporate Debt Fund and the Global Bond Fund, the Board concluded that the existence of one or more contractual breakpoints in the Fund’s existing management fee schedule, in conjunction with the Fund’s expense limitation agreement, adequately addressed any economies of scale in managing the Fund.
Other Benefits to Lord Abbett.As to each Fund, the Board considered the amount and nature of the fees paid by the Fund and the Fund’s shareholders to Lord Abbett and the Distributor for services other than investment advisory services, such as the fee that Lord Abbett receives from each Fund for providing administrative services to the Fund. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with each Fund. The Board observed that the Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees it receives, and receives a portion of the sales charges on sales and redemptions of some classes of shares of the Lord Abbett Funds. In addition, the Board observed that Lord Abbett accrues certain benefits for its business of providing investment advice to clients other than the Lord Abbett Funds, but that business also benefits the Funds. The Board also noted that Lord Abbett, as disclosed in the prospectus of each Fund, has entered into revenue sharing arrangements with certain entities that distribute shares of the Lord Abbett Funds. The Board also took into consideration the investment research that Lord Abbett receives as a result of client brokerage transactions.
Alternative Arrangements.As to each Fund, the Board considered whether, instead of approving continuation of the Agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms. After considering all of the relevant factors, the Board unanimously found that continuation of the Agreement was in the best interests of each Fund and its shareholders and voted unanimously to approve the continuation of the Agreement on behalf of each Fund. As to each Fund, in considering whether to approve the continuation of the Agreement, the Board did not identify any single factor as paramount or controlling. Individual Directors may have evaluated the information presented differently from one another, giving different weights to various factors. This summary does not discuss in detail all matters considered.
107
Householding
The Company has adopted a policy that allows it to send only one copy of each Fund’s prospectus, proxy material, annual report and semiannual report to certain shareholders residing at the same “household.” This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.
Proxy Voting Policies, Procedures and Records
A description of the policies and procedures that Lord Abbett uses to vote proxies related to each Fund’s portfolio securities, and information on how Lord Abbett voted each Fund’s proxies during the 12-month period ended December 31 are available without charge, upon request, (i) by calling 888-522-2388; (ii) on Lord Abbett’s Website at www.lordabbett.com; and (iii) on the Securities and Exchange Commission’s (“SEC”) Website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters as an attachment to Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388.
| | Tax Information Of the distributions paid by Global Bond Fund to shareholders during the fiscal year ended December 31, 2019, $92,903 represent short-term capital gains. For foreign shareholders, the percentages below reflect the portion of net investment income distributions that represent interest-related dividends: | |
| | Fund Name | | | |
| | Emerging Markets Bond Fund | 3% | | |
| | Emerging Markets Corporate Debt Fund | 8% | | |
| | Global Bond Fund | 51% | | |
| | | | | |
108
This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus. Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC. | | Lord Abbett Global Fund, Inc. Lord Abbett Emerging Markets Bond Fund Lord Abbett Emerging Markets Corporate Debt Fund Lord Abbett Global Bond Fund | | LAGF-2
(02/20) |
| | (a) | In accordance with applicable requirements, the Registrant adopted a Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the principal executive officer and senior financial officers of the Registrant (“Code of Ethics”). The Code of Ethics was in effect during the fiscal year ended December 31, 2019 (the “Period”). |
| | | |
| | (b) | Not applicable. |
| | | |
| | (c) | The Registrant has not amended the Code of Ethics as described in Form N-CSR during the Period. |
| | | |
| | (d) | The Registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the Period. |
| | | |
| | (e) | Not applicable. |
| | | |
| | (f) | See Item 12(a)(1) concerning the filing of the Code of Ethics. |
| Item 3: | Audit Committee Financial Expert. |
| | |
| | The Registrant’s board of directors has determined that each of the following independent directors who are members of the audit committee is an audit committee financial expert: Evelyn E. Guernsey, Karla M. Rabusch and Mark A. Schmid. Each of these persons is independent within the meaning of the Form N-CSR. |
| | |
| Item 4: | Principal Accountant Fees and Services. |
In response to sections (a), (b), (c) and (d) of Item 4, the aggregate fees billed to the Registrant for the fiscal years ended December 31, 2019 and 2018 by the Registrant’s principal accounting firm, Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu and their respective affiliates (collectively, “Deloitte”) were as follows:
| | | Fiscal year ended: | |
| | | 2019 | | 2018 |
| Audit Fees {a} | | | $153,100 | | | | $170,400 | |
| Audit-Related Fees | | | - 0 - | | | | - 0 - | |
| Total audit and audit-related fees | | | 153,100 | | | | 170,400 | |
| | | | | | | | | |
| Tax Fees {b} | | | 26,082 | | | | 53,463 | |
| All Other Fees | | | - 0 - | | | | - 0 - | |
| | | | | | | | | |
| Total Fees | | | $179,182 | | | | $223,863 | |
{a} Consists of fees for audits of the Registrant’s annual financial statements.
{b} Fees for the fiscal year ended December 31, 2019 and 2018 consist of fees for preparing the U.S. Income Tax Return for Regulated Investment Companies, New Jersey Corporation Business Tax Return, New Jersey Annual Report Form, U.S. Return of Excise Tax on Undistributed Income of Investment Companies, IRS Forms 1099-MISC and 1096 Annual Summary and Transmittal of U.S. Information Returns.
(e) (1) Pursuant to Rule 2-01(c) (7) of Regulation S-X, the Registrant’s Audit Committee has adopted pre-approval policies and procedures. Such policies and procedures generally provide that the Audit Committee must pre-approve:
| · | any audit, audit-related, tax, and other services to be provided to the Lord Abbett Funds, including the Registrant, and |
| · | any audit-related, tax, and other services to be provided to the Registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to one or more Funds comprising the Registrant if the engagement relates directly to operations and financial reporting of a Fund, by the independent auditor to assure that the provision of such services does not impair the auditor’s independence. |
The Audit Committee has delegated pre-approval authority to its Chairman, subject to a fee limit of $10,000 per event, and not to exceed $25,000 annually. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. Unless a type of service to be provided by the independent auditor has received general pre-approval, it must be pre-approved by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
(e) (2) The Registrant’s Audit Committee has approved 100% of the services described in this Item 4 (b) through (d).
(f) Not applicable.
(g) The aggregate non-audit fees billed by Deloitte for services rendered to the Registrant are shown above in the response to Item 4 (a), (b), (c) and (d) as “All Other Fees”.
The aggregate non-audit fees billed by Deloitte for services rendered to the Registrant’s investment adviser, Lord, Abbett & Co. LLC (“Lord Abbett”), for the fiscal years ended December 31, 2019 and 2018 were:
| | | Fiscal year ended: | |
| | | 2019 | | 2018 |
| All Other Fees {a} | | | $215,383 | | | | $200,339 | |
{a} Consist of fees for Independent Services Auditors’ Report on Controls Placed in Operation and Tests of Operating Effectiveness related to Lord Abbett’s Asset Management Services (“SOC-1 Report”).
The aggregate non-audit fees billed by Deloitte for services rendered to entities under the common control of Lord Abbett for the fiscal years ended December 31, 2019 and 2018 were:
| | | Fiscal year ended: | |
| | | 2019 | | 2018 |
| All Other Fees | | | $ - 0 - | | | | $ - 0- | |
(h) The Registrant’s Audit Committee has considered the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant, that were not pre-approved pursuant to Rule 2-01 (c)(7)(ii) of Regulation S-X and has determined that the provision of such services is compatible with maintaining Deloitte’s independence.
| Item 5: | Audit Committee of Listed Registrants. |
| | |
| | Not applicable. |
| | |
| Item 6: | Investments. |
| | |
| | Not applicable. |
| | |
| Item 7: | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
| | |
| | Not applicable. |
| | |
| Item 8: | Portfolio Managers of Closed-End Management Investment Companies. |
| | |
| | Not applicable. |
| | |
| Item 9: | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
| | |
| | Not applicable. |
| | |
| Item 10: | Submission of Matters to a Vote of Security Holders. |
| | |
| | Not applicable. |
| Item 11: | Controls and Procedures. |
| (a) | Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days prior to the filing date of this report, the Chief Executive Officer and Chief Financial Officer of the Registrant have concluded that such disclosure controls and procedures are reasonably designed and effective to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| | (a)(1) | The Lord Abbett Family of Funds Sarbanes Oxley Code of Ethics for the Principal Executive Officer and Senior Financial Officers is attached hereto as part of Ex-99. CODEETH. |
| | | |
| | (a)(2) | Certification of each Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2 under the Investment Company Act of 1940 is attached hereto as a part of EX-99.CERT. |
| | | |
| | (b) | Certification of each Principal Executive Officer and Principal Financial Officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is provided as a part of EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | LORD ABBETT GLOBAL FUND, INC. |
| | | | | |
| | By: | /s/ Douglas B. Sieg | |
| | | Douglas B. Sieg | |
| | | President and Chief Executive Officer | |
Date: February 26, 2020
| | By: | /s/ Bernard J. Grzelak | |
| | | Bernard J. Grzelak | |
| | | Chief Financial Officer and Vice President |
Date: February 26, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| | By: | /s/ Douglas B. Sieg | |
| | | Douglas B. Sieg | |
| | | President and Chief Executive Officer | |
Date:February 26, 2020
| | By: | /s/ Bernard J. Grzelak | |
| | | Bernard J. Grzelak | |
| | | Chief Financial Officer and Vice President |
Date:February 26, 2020
