Fund Notice

At a special meeting held on June 18, 2021, shareholders of AMG GW&K Small Cap Value Fund II (the “Fund”) approved the reorganization of the Fund with and into AMG GW&K Small Cap Value Fund (the “Acquiring Fund”), a series of AMG Funds (the “Reorganization”). Pursuant to the Reorganization, the assets and liabilities of the Fund will be exchanged for shares of the Acquiring Fund, and shareholders of the Fund will become shareholders of the Acquiring Fund. The Reorganization is expected to close on or about August 9, 2021.

Fund Overview

Fund Overview

Share Class

Z

NAV | as of 06/28/2022

$25.57
-$0.26 (-1.01%)

Morningstar | Style Box

V B G L M S

Growth of $10,000 (Hypothetical)

Since Inception 02/24/2017 to 05/31/2022 = $14,102.05

  • 3YR
  • 5YR
  • 10YR
  • INCEP.
INCEP.
  • 3YR
  • 5YR
  • 10YR
  • INCEP.

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month end please call 800.835.3879 or visit our website at amgfunds.com. From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields of the Fund are net of expenses, and the returns and yields of the indices exclude expenses. For time periods where the fund inception date preceded the benchmark, the benchmark data will not be shown.

Objective

Seeks capital appreciation

Why Consider

  • Provides investors with exposure to a portfolio of undervalued small cap companies that demonstrate positive business momentum
  • Employs a fundamental, research-oriented investment process that is built on the belief that a company’s ability to generate consistent, long-term sustainable earnings growth will drive enhanced stock price performance over time
  • Manages risk through portfolio diversification and a strong sell discipline

Daniel L. Miller, CFA

PARTNER AND DIRECTOR OF EQUITIES

Jeffrey O. Whitney, CFA

PARTNER, PORTFOLIO MANAGER

Performance

Performance

Read Important Investment Disclosures

Returns

Trailing Returns

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month end please call 800.835.3879 or visit our website at amgfunds.com. From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields of the Fund are net of expenses, and the returns and yields of the indices exclude expenses. For time periods where the fund inception date preceded the benchmark, the benchmark data will not be shown.

Expense Ratios

  • Gross Expense Ratio: 0.92%
  • Net Expense Ratio: 0.90%
  • Expense Cap Expiration Date: 05/01/2023

Distributions & Pricing

Distributions

Calendar Year Distributions

Ex-Date Total Distribution Income Short-term Cap Gains Long-term Cap Gains
Dec 15, 2021 $0.804800 $0.202900 $0.526100 $0.075800
Aug 05, 2021 $3.730000 $0.101000 $2.370800 $1.258200
Dec 09, 2020 $11.610800 $0.165200 $0.579700 $10.865900
Dec 16, 2019 $2.941300 $0.402700 $2.538600
Dec 27, 2018 $4.635700 $0.384900 $4.250800
Dec 27, 2017 $2.968000 $0.756200 $2.211800

Risk & Return Stats

As of: 05/31/2022

3YR 5YR 10YR
Alpha
Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a security or mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the security or fund relative to the return of the benchmark index is a fund's alpha.
1.49 -0.16 -
Standard Deviation
Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
26.21 24.05 -
Sharpe Ratio
Sharpe Ratio is a risk-adjusted measure developed by William Sharpe. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 90-day Treasury bill (over a 36-month period) is subtracted from the portfolio's average monthly return. The difference in total return represents the portfolio's excess return beyond that of the 90-day Treasury bill, a risk-free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is then divided by the standard deviation of the portfolio's annualized excess returns. The higher the Sharpe ratio, the better the portfolio's historical risk-adjusted performance.
- - -
Upside Capture Ratio (%)
Upside Capture Ratio (%) is a measure of a manager's performance in up markets relative to a particular benchmark. An up market is one in which the market's quarterly (or monthly) return is greater than or equal to zero. For example, a ratio of 50% means that the portfolio's value increased half as much as its benchmark index during up markets.
104.81 108.00 -
Downside Capture Ratio (%)
Downside Capture Ratio (%) measures a manager's performance in down markets relative to a particular benchmark. A down market is one in which the market's quarterly (or monthly) return is less than zero. For example, a ratio of 50% means that the portfolio's value fell half as much as its benchmark index during down markets.
99.00 102.65 -
Beta
Beta measures the relationship between the portfolio's excess return over T-bills (representing a risk-free rate) relative to the excess return of the portfolio's benchmark. A low beta does not imply that the portfolio has a low level of volatility; rather, a low beta means that the portfolio's market-related risk is low. Beta is often referred to as systematic risk.
1.04 1.06 -
R-Squared
R-Squared ranges from 0 to 100 and reflects the percentage of a portfolio's movements that are explained by movements in its benchmark index. A portfolio with an R-squared of 100 means that all movement is completely explained by benchmark index movement. Thus, a portfolio that invests only in S&P 500 stocks will have an R-squared very close to 100. Conversely, a low R-squared indicates that very little of the portfolio's movement is explained by benchmark movement. An R-squared measure of 35, for example, means that movements in its benchmark index can explain only 35% of the portfolio's movements. R-squared is used to ascertain the significance of a particular beta or alpha and generally a higher R-squared will indicate more useful alpha and beta figures.
93.81 93.96 -
Tracking Error (%)
Tracking Error (%) , which is often referred to as the active risk of the portfolio, measures how closely a manager's returns track the returns of a benchmark index. Specifically, tracking error measures the standard deviation of the excess returns a portfolio generates compared to its benchmark. This gives an indication of the volatility of a portfolio versus its benchmark. If a manager tracks a benchmark closely, then tracking error will be low. If a manager tracks a benchmark perfectly, then tracking error will be zero.
6.58 6.05 -
View All Characteristics & Stats

Portfolio & Holdings

Portfolio & Holdings

Top Holdings (Equity)

As of: 03/31/2022

Independence Realty Trust Inc 2.98%
Tenet Healthcare Corp 2.96%
Walker & Dunlop Inc 2.45%
Matador Resources Co, Class A 2.35%
Boot Barn Holdings Inc 2.23%
Magnolia Oil & Gas Corp, Class A 2.10%
Piper Sandler Cos 2.08%
Selective Insurance Group Inc 2.03%
Gray Television Inc 1.94%
Group 1 Automotive Inc 1.86%
% in Top 10 Holdings 22.99%
View Holding Details Read Important Investment Disclosures

Sector Allocation (Equity)

As of: 03/31/2022

View Allocation Details

Investment Approach

Investment Approach

GW&K Small Cap Value Fund

  • The Fund primarily invests in undervalued small cap companies
  • GW&K believes quality small cap companies trading at low valuation levels offer attractive opportunities for stock price appreciation over time.
  • Companies that can generate sustainable earnings growth possess these key attributes:
    • A high quality management team focused on enhancing long-term value for shareholders.
    • Experienced and motivated management
    • Improving business model
    • Catalyst for positive market revaluation
  • GW&K seeks to add value through a fundamental research process and proprietary screening. A disciplined long-term research focus seeks to identify well-managed, undervalued companies with improving fundamental and financial characteristics

Equity Style Analysis: Growth vs. Value

Growth stocks have outperformed value stocks recently testing investor's patience to stay diversified. Although it is nearly impossible to predict when and to what extent growth and value performance trends will reverse themselves, historically they have. Rather than try to predict future trends, investors should consider remaining diversified over the long term.

Read Full Perspective

About

Background

GW&K Investment Management is a dynamic investment management firm that offers asset allocation, active equity and fixed income investment solutions to help meet the needs of a diverse client base. GW&K’s founding principles of applying rigorous fundamental research, focusing on quality and maintaining a long-term view still guide its investment process today.

Learn More

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Founded

1974


Headquarters

Boston, MA


Affiliate Since

2008

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