Lord, Abbett & Co. of New York will close the Lord Abbett Developing Growth Fund to new investors on Sept. 30. Like other popular mutual funds, the $2 billion fund was closed so that the fund's portfolio managers could effectively manage the fund's cash flow. The fund has performed well, returning 23.49 percent over the five-year period ending Aug. 31.
"Bigger is not always better," particularly for the volatile small-cap asset class, said Robert Morris, partner and director of equity investments at Lord Abbett, in a statement.
The fund will remain open to existing shareholders, mutual fund advisory programs and qualified retirement plans.