RULE 497 DOCUMENT
The interactive data file included as an exhibit to this Rule 497 filing relates to, and incorporates by reference, the supplement dated July 31, 2018 to the prospectus for Lord Abbett Bond Debenture Fund, Inc. that was filed with the U.S. Securities and Exchange Commission pursuant to Rule 497 under the Securities Act of 1933. (Accession No. 0000930413-18-002410).
Document and Entity Information |
Jul. 31, 2018 |
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Prospectus: | |
Document Type | 497 |
Document Period End Date | Jul. 31, 2018 |
Registrant Name | LORD ABBETT BOND DEBENTURE FUND INC |
Entity Central Index Key | 0000060365 |
Amendment Flag | false |
Document Creation Date | Jul. 31, 2018 |
Document Effective Date | Jul. 31, 2018 |
Prospectus Date | May 01, 2018 |
Jul. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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LORD ABBETT BOND DEBENTURE FUND INC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LORD ABBETT BOND DEBENTURE FUND INC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LORD ABBETT BOND DEBENTURE FUND, INC. LORD ABBETT SERIES FUND, INC. Bond Debenture Portfolio Supplement dated July 31, 2018 to the Summary Prospectus, Prospectus, and Statement of Additional Information, each dated May 1, 2018, each as supplemented thereafter This supplement updates certain information contained in each of Lord Abbett Bond Debenture Fund’s and Bond Debenture Portfolio’s (each a “Fund”) summary prospectus, prospectus, and statement of additional information (“SAI”). Please review this important information carefully. Principal Investment Strategies – Summary Prospectus Changes The second and third paragraphs under the section titled “Principal Investment Strategies” in each Fund’s summary prospectus will be replaced in their entirety with the following: The Fund’s investments primarily consist of the following types of securities and other financial instruments:
Under normal conditions, the Fund allocates its assets principally among fixed income securities in the following four asset categories: U.S. high yield securities; U.S. investment grade fixed income securities; convertible securities; and foreign (including emerging market) securities. However, the Fund may invest substantially all of its assets in any one of these categories at any time, provided that (i) at least 20% of the Fund’s net assets are invested in any combination of investment grade debt securities, U.S. Government securities, and cash equivalents, and (ii) the Fund’s investments in foreign securities, which are securities of non-U.S. issuers that are denominated in non-U.S. currencies, do not exceed 20% of its net assets. Principal Risks – Summary Prospectus Changes The following bullets will be added to the section titled “Principal Risks” in each Fund’s summary prospectus:
Principal Investment Strategies – Prospectus Changes The second through fourth paragraphs of information relating to the Fund under the section titled “More Information About the Fund – Principal Investment Strategies” in each Fund’s prospectus will be replaced in their entirety with the following: The Fund allocates its assets principally among fixed income securities in four asset categories, but may invest substantially all of its assets in any one category at any time:
The investment grade and high-yield securities described above may include mortgage-related and other asset-backed securities, which directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans, real property, or other assets, and government securities, which include U.S. Government and non-U.S. sovereign government securities. Under normal conditions, the Fund invests in each of the four categories described above. However, the Fund may invest substantially all of its assets in any one of these categories at any time, provided that (i) at least 20% of the Fund’s net assets are invested in any combination of investment grade debt securities, U.S. Government securities and cash equivalents, and (ii) the Fund’s investments in foreign securities, which are securities of non-U.S. issuers that are denominated in non-U.S. currencies, do not exceed 20% of its net assets. The Fund may invest up to 20% of its net assets in equity securities, including common stocks, preferred stocks, convertible preferred stocks, and similar instruments. The Fund’s investments in U.S. Government securities may include debt securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities. The Fund may invest in all types of municipal bonds, including general obligation bonds, revenue bonds, municipal leases, and variable rate demand notes. Municipal bonds are debt securities issued by or on behalf of U.S. states, territories (such as Puerto Rico, the U.S. Virgin Islands, and Guam), and possessions (including the District of Columbia) and their political subdivisions, agencies, and instrumentalities that provide income that generally is exempt from regular federal or, as applicable, state and/or local personal income taxes. The Fund’s investments in non-U.S. sovereign government securities may include debt securities issued or guaranteed by non-U.S. sovereign governments, their agencies, authorities, political subdivisions, or instrumentalities, and supranational agencies. Supranational agencies are organizations that are designed or supported by one or more governments or governmental agencies to promote economic development. Examples of supranational agencies include the Asian Development Bank, the European Bank for Reconstruction and Development, and the World Bank. The Fund may invest in inflation-linked fixed income securities, which are securities whose principal and/or interest payments are adjusted for inflation, unlike traditional fixed income securities that make fixed or variable principal and interest payments. Principal Risks – Prospectus Changes The following bullets will be added to the section titled “More Information about the Fund – Principal Risks” in each Fund’s prospectus:
Specific risks are associated with different types of municipal securities. For example, with respect to general obligation bonds, the full faith, credit, and taxing power of the municipality that issues a general obligation bond supports payment of interest and repayment of principal. Timely payments depend on the issuer’s credit quality, ability to raise tax revenues, and ability to maintain an adequate tax base. Certain of the municipalities in which the Fund invest may experience significant financial difficulties, which may lead to bankruptcy or default. With respect to revenue bonds, payments of interest and principal are made only from the revenues generated by a particular facility or class of facilities, the proceeds of a special tax, or other revenue source, and depend on the money earned by that source. Nongovernmental users of facilities financed by tax-exempt revenue bonds (e.g., companies in the electric utility and health care industries) may have difficulty making payments on their obligations in the event of an economic downturn. This would negatively affect the valuation of bonds issued by such facilities. In addition, each industry is subject to its own risks: the electric utility industry is subject to rate regulation vagaries, while the health care industry faces two main challenges – affordability and access. Private activity bonds are issued by municipalities and other public authorities to finance development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its full faith, credit, and taxing power for repayment. If the private enterprise defaults on its payments, the Fund may not receive any income or get its money back from the investment. In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. The issuer generally will appropriate municipal funds for that purpose, but is not obligated to do so. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property. However, if the issuer does not fulfill its payment obligation, it may be difficult to sell the property and the proceeds of a sale may not cover the Fund’s loss. Variable rate demand obligations are floating rate securities that combine an interest in a long-term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money. Special tax bonds are usually backed and payable through a single tax, or series of special taxes such as incremental property taxes. The failure of the tax levy to generate adequate revenue to pay the debt service on the bonds may cause the value of the bonds to decline.
SAI Changes The table beginning on page 4-1 of Part I of each Fund’s SAI is updated to include the following investment types and techniques for the Fund: “Debt Securities – Inflation-Indexed securities;” “Debt Securities – Municipal Bonds;” “Debt Securities – Non-U.S. Government and Supranational Debt Securities;” and “Debt Securities – Zero Coupon Bonds.” Please retain this document for your future reference. |
Label | Element | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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LORD ABBETT BOND DEBENTURE FUND INC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk/Return: | rr_RiskReturnAbstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplement to Prospectus [Text Block] | rr_SupplementToProspectusTextBlock | LORD ABBETT BOND DEBENTURE FUND, INC. LORD ABBETT SERIES FUND, INC. Bond Debenture Portfolio Supplement dated July 31, 2018 to the Summary Prospectus, Prospectus, and Statement of Additional Information, each dated May 1, 2018, each as supplemented thereafter This supplement updates certain information contained in each of Lord Abbett Bond Debenture Fund’s and Bond Debenture Portfolio’s (each a “Fund”) summary prospectus, prospectus, and statement of additional information (“SAI”). Please review this important information carefully. Principal Investment Strategies – Summary Prospectus Changes The second and third paragraphs under the section titled “Principal Investment Strategies” in each Fund’s summary prospectus will be replaced in their entirety with the following: The Fund’s investments primarily consist of the following types of securities and other financial instruments:
Under normal conditions, the Fund allocates its assets principally among fixed income securities in the following four asset categories: U.S. high yield securities; U.S. investment grade fixed income securities; convertible securities; and foreign (including emerging market) securities. However, the Fund may invest substantially all of its assets in any one of these categories at any time, provided that (i) at least 20% of the Fund’s net assets are invested in any combination of investment grade debt securities, U.S. Government securities, and cash equivalents, and (ii) the Fund’s investments in foreign securities, which are securities of non-U.S. issuers that are denominated in non-U.S. currencies, do not exceed 20% of its net assets. Principal Risks – Summary Prospectus Changes The following bullets will be added to the section titled “Principal Risks” in each Fund’s summary prospectus:
Principal Investment Strategies – Prospectus Changes The second through fourth paragraphs of information relating to the Fund under the section titled “More Information About the Fund – Principal Investment Strategies” in each Fund’s prospectus will be replaced in their entirety with the following: The Fund allocates its assets principally among fixed income securities in four asset categories, but may invest substantially all of its assets in any one category at any time:
The investment grade and high-yield securities described above may include mortgage-related and other asset-backed securities, which directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans, real property, or other assets, and government securities, which include U.S. Government and non-U.S. sovereign government securities. Under normal conditions, the Fund invests in each of the four categories described above. However, the Fund may invest substantially all of its assets in any one of these categories at any time, provided that (i) at least 20% of the Fund’s net assets are invested in any combination of investment grade debt securities, U.S. Government securities and cash equivalents, and (ii) the Fund’s investments in foreign securities, which are securities of non-U.S. issuers that are denominated in non-U.S. currencies, do not exceed 20% of its net assets. The Fund may invest up to 20% of its net assets in equity securities, including common stocks, preferred stocks, convertible preferred stocks, and similar instruments. The Fund’s investments in U.S. Government securities may include debt securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities. The Fund may invest in all types of municipal bonds, including general obligation bonds, revenue bonds, municipal leases, and variable rate demand notes. Municipal bonds are debt securities issued by or on behalf of U.S. states, territories (such as Puerto Rico, the U.S. Virgin Islands, and Guam), and possessions (including the District of Columbia) and their political subdivisions, agencies, and instrumentalities that provide income that generally is exempt from regular federal or, as applicable, state and/or local personal income taxes. The Fund’s investments in non-U.S. sovereign government securities may include debt securities issued or guaranteed by non-U.S. sovereign governments, their agencies, authorities, political subdivisions, or instrumentalities, and supranational agencies. Supranational agencies are organizations that are designed or supported by one or more governments or governmental agencies to promote economic development. Examples of supranational agencies include the Asian Development Bank, the European Bank for Reconstruction and Development, and the World Bank. The Fund may invest in inflation-linked fixed income securities, which are securities whose principal and/or interest payments are adjusted for inflation, unlike traditional fixed income securities that make fixed or variable principal and interest payments. Principal Risks – Prospectus Changes The following bullets will be added to the section titled “More Information about the Fund – Principal Risks” in each Fund’s prospectus:
Specific risks are associated with different types of municipal securities. For example, with respect to general obligation bonds, the full faith, credit, and taxing power of the municipality that issues a general obligation bond supports payment of interest and repayment of principal. Timely payments depend on the issuer’s credit quality, ability to raise tax revenues, and ability to maintain an adequate tax base. Certain of the municipalities in which the Fund invest may experience significant financial difficulties, which may lead to bankruptcy or default. With respect to revenue bonds, payments of interest and principal are made only from the revenues generated by a particular facility or class of facilities, the proceeds of a special tax, or other revenue source, and depend on the money earned by that source. Nongovernmental users of facilities financed by tax-exempt revenue bonds (e.g., companies in the electric utility and health care industries) may have difficulty making payments on their obligations in the event of an economic downturn. This would negatively affect the valuation of bonds issued by such facilities. In addition, each industry is subject to its own risks: the electric utility industry is subject to rate regulation vagaries, while the health care industry faces two main challenges – affordability and access. Private activity bonds are issued by municipalities and other public authorities to finance development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its full faith, credit, and taxing power for repayment. If the private enterprise defaults on its payments, the Fund may not receive any income or get its money back from the investment. In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. The issuer generally will appropriate municipal funds for that purpose, but is not obligated to do so. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property. However, if the issuer does not fulfill its payment obligation, it may be difficult to sell the property and the proceeds of a sale may not cover the Fund’s loss. Variable rate demand obligations are floating rate securities that combine an interest in a long-term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money. Special tax bonds are usually backed and payable through a single tax, or series of special taxes such as incremental property taxes. The failure of the tax levy to generate adequate revenue to pay the debt service on the bonds may cause the value of the bonds to decline.
SAI Changes The table beginning on page 4-1 of Part I of each Fund’s SAI is updated to include the following investment types and techniques for the Fund: “Debt Securities – Inflation-Indexed securities;” “Debt Securities – Municipal Bonds;” “Debt Securities – Non-U.S. Government and Supranational Debt Securities;” and “Debt Securities – Zero Coupon Bonds.” Please retain this document for your future reference. |
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Risk/Return [Heading] | rr_RiskReturnHeading | LORD ABBETT BOND DEBENTURE FUND INC |
Label | Element | Value |
---|---|---|
Risk/Return: | rr_RiskReturnAbstract | |
Prospectus Date | rr_ProspectusDate | May 01, 2018 |
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