UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03752
AMG FUNDS III
(Exact name of registrant as specified in charter)
680 Washington Boulevard, Suite 500, Stamford, Connecticut 06901
(Address of principal executive offices) (Zip code)
AMG Funds LLC
680 Washington Boulevard, Suite 500, Stamford, Connecticut 06901
(Name and address of agent for service)
Registrants telephone number, including area code: (203) 299-3500
Date of fiscal year end: DECEMBER 31
Date of reporting period: JANUARY 1, 2021 JUNE 30, 2021
(Semi-Annual Shareholder Report)
Item 1. | Reports to Shareholders |
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SEMI-ANNUAL REPORT | |
AMG Funds | ||||||
June 30, 2021 | ||||||
Veritas Asset Management | ||||||
AMG Veritas Asia Pacific Fund | ||||||
(formerly AMG Managers Special Equity Fund) | ||||||
Class N: MGSEX | Class I: MSEIX | |||||
amgfunds.com | 063021 | SAR078 |
AMG Funds Semi-Annual Report June 30, 2021 (unaudited) |
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PAGE | |||
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2 | ||||
3 | ||||
5 | ||||
FINANCIAL STATEMENTS |
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10 | ||||
Balance sheet, net asset value (NAV) per share computations and cumulative distributable earnings (loss) |
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12 | ||||
Detail of sources of income, expenses, and realized and unrealized gains (losses) during the fiscal period |
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13 | ||||
Detail of changes in assets for the past two fiscal periods |
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14 | ||||
Historical net asset values per share, distributions, total returns, income and expense ratios, turnover ratios and net assets |
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16 | ||||
Accounting and distribution policies, details of agreements and transactions with Fund management and affiliates, and descriptions of certain investment risks |
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OTHER INFORMATION | 22 | |||
ANNUAL RENEWAL OF INVESTMENT MANAGEMENT AND SUBADVISORY AGREEMENTS | 23 | |||
APPROVAL OF SUBADVISORY AGREEMENTS | 25 | |||
FUNDS LIQUIDITY RISK MANAGEMENT PROGRAM | 27 |
Nothing contained herein is to be considered an offer, sale or solicitation of an offer to buy shares of any series of the AMG Funds Family of Funds. Such offering is made only by prospectus, which includes details as to offering price and other material information.
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As a shareholder of a Fund, you may incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on $1,000 invested at the beginning of the period and held for the entire period as indicated below.
ACTUAL EXPENSES
The first line of the following table provides information about the 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 entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Funds |
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 the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
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), redemption fees, or exchange fees. 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. | ||||||
2
Periods ended June 30, 2021 |
3
Fund Performance Periods ended June 30, 2021 (continued) |
All MSCI data is provided as is. The products described here in are not sponsored or endorsed and have not been reviewed or passed on by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the products described here in. | Copying or redistributing the MSCI data is strictly prohibited. All holdings and sector/region allocations are subject to review and adjustment in accordance with the Funds investment strategy and may vary in the future, and should not be considered recommendations to buy or sell any security. | The Russell Indices are trademarks of the London Stock Exchange Group companies.
Not FDIC Insured, nor bank guaranteed. May lose value. | ||||||
4
AMG Veritas Asia Pacific Fund June 30, 2021 |
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
5
AMG Veritas Asia Pacific Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
6
AMG Veritas Asia Pacific Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
7
AMG Veritas Asia Pacific Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 21 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Common Stocks |
||||||||||||||||
Information Technology |
| $53,309,651 | | $ | 53,309,651 | |||||||||||
Health Care |
| 37,220,281 | $68,811 | 37,289,092 | ||||||||||||
Industrials |
| 28,814,134 | | 28,814,134 | ||||||||||||
Consumer Discretionary |
$4,550,618 | 23,951,275 | | 28,501,893 | ||||||||||||
Consumer Staples |
| 17,854,834 | | 17,854,834 | ||||||||||||
Communication Services |
8,687,246 | 5,844,005 | | 14,531,251 | ||||||||||||
Materials |
| 9,846,374 | | 9,846,374 | ||||||||||||
Financials |
7,810,386 | | | 7,810,386 | ||||||||||||
Real Estate |
| 4,753,180 | | 4,753,180 | ||||||||||||
Utilities |
| 1,237,275 | | 1,237,275 | ||||||||||||
Participation Notes |
||||||||||||||||
Consumer Staples |
| 9,394,898 | | 9,394,898 | ||||||||||||
Health Care |
| 7,047,216 | | 7,047,216 | ||||||||||||
Information Technology |
| 5,440,812 | | 5,440,812 | ||||||||||||
Financials |
| 4,309,884 | | 4,309,884 | ||||||||||||
Materials |
| 3,164,728 | | 3,164,728 | ||||||||||||
Consumer Discretionary |
| 2,333,949 | | 2,333,949 | ||||||||||||
Communication Services |
| 1,522,964 | | 1,522,964 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| 798,265 | | 798,265 | ||||||||||||
Other Investment Companies |
2,234,299 | | | 2,234,299 | ||||||||||||
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|
|
|||||||||
Total Investments in Securities |
$ | 23,282,549 | $216,843,725 | $68,811 | $ | 240,195,085 | ||||||||||
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1 | An external pricing service is used to reflect any impact on security value due to market movements between the time the Fund valued such foreign securities and the earlier closing of foreign markets. |
For the period ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
8
AMG Veritas Asia Pacific Fund Schedule of Portfolio Investments (continued) |
The following table below is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value at June 30, 2021:
Common Stock | ||||
Balance as of December 31, 2020 |
$68,811 | |||
Accrued discounts (premiums) |
| |||
Realized gain (loss) |
| |||
Change in unrealized appreciation/depreciation |
| |||
Purchases |
| |||
Sales |
| |||
Transfers in to Level 3 |
| |||
Transfers out of Level 3 |
| |||
Balance as of June 30, 2021 |
$68,811 | |||
Net change in unrealized appreciation/depreciation on investments still held at June 30, 2021 |
$0 |
The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy as of June 30, 2021. The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to the Funds fair value measurements:
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Fair Value as of June 30, 2021 |
Valuation Technique(s) |
Unobservable Inputs(s) |
Range | Median | Impact to Valuation from an Increase in Input(a) | |||||||
Common Stock |
$68,811 | Market Approach-Last Trade Price | Discount Rate | 10% | N/A | Decrease |
(a) | Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end. |
The country allocation in the Schedule of Portfolio Investments at June 30, 2021, was as follows:
Country | % of Long-Term Investments | |
Australia |
9.6 | |
China |
47.4 | |
Hong Kong |
0.5 | |
India |
17.3 | |
Singapore |
3.7 | |
South Korea |
13.7 | |
Taiwan |
7.8 | |
United States |
0.0# | |
| ||
100.0 | ||
|
# Less than 0.05%.
The accompanying notes are an integral part of these financial statements.
9
Statement of Assets and Liabilities (unaudited) June 30, 2021 |
AMG Veritas | ||||
Assets: |
||||
Investments at value1 (including securities on loan valued at $761,161) |
$240,195,085 | |||
Foreign currency2 |
8,839 | |||
Receivable for investments sold |
512,589 | |||
Dividend and interest receivables |
138,529 | |||
Securities lending income receivable |
1,319 | |||
Receivable for Fund shares sold |
57,740 | |||
Receivable from affiliate |
631 | |||
Prepaid expenses and other assets |
18,417 | |||
Total assets |
240,933,149 | |||
Liabilities: |
||||
Payable upon return of securities loaned |
798,265 | |||
Payable for investments purchased |
678,150 | |||
Payable for Fund shares repurchased |
13,253 | |||
Accrued expenses: |
||||
Investment advisory and management fees |
160,032 | |||
Administrative fees |
29,132 | |||
Shareholder service fees |
40,777 | |||
Other |
42,160 | |||
Total liabilities |
1,761,769 | |||
Net Assets |
$239,171,380 | |||
1 Investments at cost |
$222,488,513 | |||
2 Foreign currency at cost |
$9,042 |
The accompanying notes are an integral part of these financial statements.
10
Statement of Assets and Liabilities (continued) |
AMG Veritas | ||||
Asia | ||||
Pacific Fund |
||||
Net Assets Represent: |
||||
Paid-in capital |
$237,603,597 | |||
Total distributable earnings |
1,567,783 | |||
Net Assets |
$239,171,380 | |||
Class N: |
||||
Net Assets |
$201,017,374 | |||
Shares outstanding |
2,231,093 | |||
Net asset value, offering and redemption price per share |
$90.10 | |||
Class I: |
||||
Net Assets |
$38,154,006 | |||
Shares outstanding |
387,664 | |||
Net asset value, offering and redemption price per share |
$98.42 |
The accompanying notes are an integral part of these financial statements.
11
Statement of Operations (unaudited) For the six months ended June 30, 2021 |
AMG Veritas | ||||
Asia | ||||
Pacific Fund | ||||
Investment Income: |
||||
Dividend income |
$770,749 | |||
Securities lending income |
36,289 | |||
Foreign withholding tax |
(95,997 | ) | ||
Total investment income |
711,041 | |||
Expenses: |
||||
Investment advisory and management fees |
1,107,814 | |||
Administrative fees |
187,096 | |||
Shareholder servicing fees - Class N |
257,634 | |||
Custodian fees |
25,539 | |||
Professional fees |
19,496 | |||
Registration fees |
17,813 | |||
Transfer agent fees |
10,671 | |||
Trustee fees and expenses |
9,796 | |||
Reports to shareholders |
9,385 | |||
Miscellaneous |
3,761 | |||
Total expenses before offsets |
1,649,005 | |||
Expense reimbursements |
(20,640 | ) | ||
Expense reductions |
(695 | ) | ||
Net expenses |
1,627,670 | |||
Net investment loss |
(916,629 | ) | ||
Net Realized and Unrealized Gain: |
||||
Net realized gain on investments |
94,279,809 | |||
Net realized loss on foreign currency transactions |
(93,160 | ) | ||
Net change in unrealized appreciation/depreciation on investments |
(63,895,545 | ) | ||
Net change in unrealized appreciation/depreciation on foreign currency translations |
(2,959 | ) | ||
Net realized and unrealized gain |
30,288,145 | |||
Net increase in net assets resulting from operations |
$29,371,516 |
The accompanying notes are an integral part of these financial statements.
12
Statements of Changes in Net Assets For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020 |
AMG Veritas Asia Pacific Fund | ||||||||||
June 30, 2021 |
December 31, 2020 | |||||||||
Increase in Net Assets Resulting From Operations: |
||||||||||
Net investment loss |
$(916,629 | ) | $(1,688,073 | ) | ||||||
Net realized gain on investments |
94,186,649 | 17,151,747 | ||||||||
Net change in unrealized appreciation/depreciation on investments |
(63,898,504 | ) | 54,091,097 | |||||||
Net increase in net assets resulting from operations |
29,371,516 | 69,554,771 | ||||||||
Distributions to Shareholders: |
||||||||||
Class N |
(95,003,142 | ) | (8,646,696 | ) | ||||||
Class I |
(17,275,241 | ) | (1,785,052 | ) | ||||||
Total distributions to shareholders |
(112,278,383 | ) | (10,431,748 | ) | ||||||
Capital Share Transactions:1 |
||||||||||
Net increase (decrease) from capital share transactions |
72,691,714 | (19,630,632 | ) | |||||||
Total increase (decrease) in net assets |
(10,215,153 | ) | 39,492,391 | |||||||
Net Assets: |
||||||||||
Beginning of period |
249,386,533 | 209,894,142 | ||||||||
End of period |
$239,171,380 | $249,386,533 |
1 See Note 1(g) of the Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
13
AMG Veritas Asia Pacific Fund | ||
Financial Highlights | ||
For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||
Class N | (unaudited) | 2020 | 2019 | 2018 | 20171 | 20162 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$147.58 | $111.15 | $114.95 | $119.45 | $99.33 | $87.84 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment loss3,4 |
(0.42 | ) | (1.03 | ) | (1.03 | ) | (0.91 | ) | (0.79 | )5 | (0.43 | )6 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
11.98 | 43.88 | 30.19 | (3.59 | ) | 20.91 | 11.92 | |||||||||||||||||||||||
Total income (loss) from investment operations |
11.56 | 42.85 | 29.16 | (4.50 | ) | 20.12 | 11.49 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net realized gain on investments |
(69.04 | ) | (6.42 | ) | (32.96 | ) | | | | |||||||||||||||||||||
Net Asset Value, End of Period |
$90.10 | $147.58 | $111.15 | $114.95 | $119.45 | $99.33 | ||||||||||||||||||||||||
Total Return4 |
12.77 | %7,8 | 38.74 | %8 | 25.69 | %8 | (3.76 | )%8 | 20.25 | %8 | 13.08 | % | ||||||||||||||||||
Ratio of net expenses to average net assets9 |
1.35 | %10 | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets11 |
1.37 | %10 | 1.42 | % | 1.42 | % | 1.38 | % | 1.41 | % | 1.50 | % | ||||||||||||||||||
Ratio of net investment loss to average net assets4 |
(0.78 | )%10 | (0.89 | )% | (0.76 | )% | (0.69 | )% | (0.73 | )% | (0.49 | )% | ||||||||||||||||||
Portfolio turnover |
192 | %7 | 100 | % | 96 | % | 113 | % | 81 | % | 120 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$201,017 | $204,794 | $171,801 | $170,744 | $173,607 | $180,008 | ||||||||||||||||||||||||
14
AMG Veritas Asia Pacific Fund | ||
Financial Highlights | ||
For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||
Class I | (unaudited) | 2020 | 2019 | 2018 | 2017 | 20162 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$154.81 | $116.08 | $118.57 | $122.90 | $101.95 | $89.92 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment loss3,4 |
(0.32 | ) | (0.77 | ) | (0.72 | ) | (0.60 | ) | (0.54 | )5 | (0.22 | )6 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
12.97 | 45.92 | 31.19 | (3.73 | ) | 21.49 | 12.25 | |||||||||||||||||||||||
Total income (loss) from investment operations |
12.65 | 45.15 | 30.47 | (4.33 | ) | 20.95 | 12.03 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net realized gain on investments |
(69.04 | ) | (6.42 | ) | (32.96 | ) | | | | |||||||||||||||||||||
Net Asset Value, End of Period |
$98.42 | $154.81 | $116.08 | $118.57 | $122.90 | $101.95 | ||||||||||||||||||||||||
Total Return4 |
12.92 | %7,8 | 39.08 | %8 | 26.02 | %8 | (3.52 | )%8 | 20.55 | %8 | 13.38 | % | ||||||||||||||||||
Ratio of net expenses to average net assets9 |
1.10 | %10 | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets11 |
1.12 | %10 | 1.17 | % | 1.17 | % | 1.13 | % | 1.16 | % | 1.25 | % | ||||||||||||||||||
Ratio of net investment loss to average net assets4 |
(0.53 | )%10 | (0.64 | )% | (0.51 | )% | (0.44 | )% | (0.48 | )% | (0.24 | )% | ||||||||||||||||||
Portfolio turnover |
192 | %7 | 100 | % | 96 | % | 113 | % | 81 | % | 120 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$38,154 | $44,593 | $38,093 | $31,253 | $26,865 | $19,647 | ||||||||||||||||||||||||
1 | Effective February 27, 2017, Class S shares were renamed Class N shares. |
2 | Effective October 1, 2016, the Service Class and Institutional Class were renamed Class S and Class I, respectively. |
3 | Per share numbers have been calculated using average shares. |
4 | Total returns and net investment loss would have been lower had certain expenses not been offset. |
5 | Includes non-recurring dividends. Without these dividends, net investment loss per share would have been $(0.84) and $(0.59) for Class N and Class I respectively. |
6 | Includes non-recurring dividends. Without these dividends, net investment loss per share would have been $(0.49) and $(0.28) for Class N and Class I respectively. |
7 | Not annualized. |
8 | The total return is calculated using the published Net Asset Value as of period end. |
9 | Includes reduction from broker recapture amounting to less than 0.01% for the six months ended June 30, 2021, and for the years ended 2020, 2019, 2018, 2017 and 2016, respectively. |
10 | Annualized. |
11 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
15
Notes to Financial Statements (unaudited) June 30, 2021 |
16
Notes to Financial Statements (continued) |
17
Notes to Financial Statements (continued) |
f. CAPITAL LOSS CARRYOVERS AND DEFERRALS
As of December 31, 2020, the Fund had no capital loss carryovers for federal income tax purposes. Should the Fund incur net capital losses for the fiscal year ended December 31, 2021, such amounts may be used to offset future realized capital gains indefinitely, and retain their character as short-term and/or long-term.
g. CAPITAL STOCK
The Trusts Declaration of Trust authorizes for the Fund the issuance of an unlimited number of shares of beneficial interest, without par value. The Fund records sales and repurchases of its capital stock on the trade date.
For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020, the capital stock transactions by class for the Fund were as follows:
June 30, 2021 | December 31, 2020 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class N: |
||||||||||||||||
Proceeds from sale of shares |
45,028 | $4,798,830 | 32,466 | $3,813,396 | ||||||||||||
Reinvestment of distributions |
1,128,609 | 91,981,675 | 58,454 | 8,351,282 | ||||||||||||
Cost of shares repurchased |
(330,240) | (29,789,170) | (248,844) | (27,811,616) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
843,397 | $66,991,335 | (157,924) | $(15,646,938) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class I: |
||||||||||||||||
Proceeds from sale of shares |
27,623 | $3,849,976 | 53,503 | $6,681,747 | ||||||||||||
Reinvestment of distributions |
192,066 | 17,088,128 | 11,788 | 1,766,664 | ||||||||||||
Cost of shares repurchased |
(120,073) | (15,237,725) | (105,414) | (12,432,105) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
99,616 | $5,700,379 | (40,123) | $(3,983,694) | ||||||||||||
|
|
|
|
|
|
|
|
18
Notes to Financial Statements (continued) |
19
Notes to Financial Statements (continued) |
20
Notes to Financial Statements (continued) |
8. MASTER NETTING AGREEMENTS
The Fund may enter into master netting agreements with its counterparties for the securities lending program and Repurchase Agreements, which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate net exposure to the defaulting party or request additional collateral. For financial reporting purposes, the Fund does not offset financial assets and financial liabilities that are subject to master netting agreements in the Statement of Assets and Liabilities. For securities lending transactions, see Note 4.
The following table is a summary of the Funds open Repurchase Agreements that are subject to a master netting agreement as of June 30, 2021:
Gross Amount Not Offset in the | ||||||||||||||||
Statement of Assets and Liabilities | ||||||||||||||||
Gross Amounts of | ||||||||||||||||
Assets Presented in | Net | |||||||||||||||
the Statement of | Offset | Asset | Collateral | Net | ||||||||||||
Assets and Liabilities | Amount | Balance | Received | Amount | ||||||||||||
RBC Dominion Securities, Inc. |
$798,265 | | $798,265 | $798,265 | | |||||||||||
21
|
PROXY VOTE
A special meeting of the shareholders of AMG Veritas Asia Pacific Fund (the Fund) was held on June 18, 2021, to vote on various proposals including to approve a new subadvisory agreement between AMG Funds LLC (the Investment Manager) and Veritas Asset Management LLP (Veritas) with respect to the Fund. The proposals and results of the votes are summarized below.
Number of Eligible Shareholders | ||||||
Proposal |
For | Against | Abstain | |||
Approval of a new subadvisory agreement between the Investment Manager and Veritas with respect to the Fund. |
1,124,761 | 172,946 | 144,825 | |||
% of Shares Present |
76.75% | 11.80% | 9.88% | |||
% of Outstanding Shares |
38.61% | 5.94% | 4.97% |
Number of Eligible Shareholders | ||||||
Proposal | For | Against | Abstain | |||
To approve a change in the Funds sub-classification under the Investment Company Act of 1940, as amended, from diversified to non-diversified. |
1,094,591 | 188,491 | 159,450 | |||
% of Shares Present |
74.69% | 12.86% | 10.88% | |||
% of Outstanding Shares |
37.57% | 6.47% | 5.47% |
Number of Eligible Shareholders | ||||||
Proposal | For | Against | Abstain | |||
To approve a modified manager-of-managers structure for the Fund that would permit the Investment Manager to enter into and materially amend subadvisory agreements with unaffiliated and affiliated subadvisers without obtaining shareholder approval and would also permit the Fund to disclose fees paid to subadvisers on an aggregate, rather than individual, basis. |
1,068,999 | 223,594 | 149,939 | |||
% of Shares Present |
72.94% | 15.26% | 10.23% | |||
% of Outstanding Shares |
36.69% | 7.67% | 5.15% |
Funds Totals: | Shares | |||
Record Total |
2,913,303 | |||
Shares Voted |
1,456,522 | |||
Percent Present |
50.30% |
22
Annual Renewal of Investment Management and Subadvisory Agreements |
At a meeting held via telephone and video conference on June 24, 2021,1 the Board of Trustees (the Board or the Trustees), and separately a majority of the Trustees who are not interested persons of AMG Funds III (the Trust) (the Independent Trustees), approved the Investment Management Agreement, as amended pursuant to letter agreements at any time prior to the date of the meeting, with AMG Funds LLC (the Investment Manager) for AMG Veritas Asia Pacific Fund (formerly AMG Managers Special Equity Fund) (the Fund) and separately each of Amendment No. 1 thereto dated July 1, 2015, and Amendment No. 2 thereto dated October 1, 2016 (collectively, the Investment Management Agreement)2. The Independent Trustees were separately represented by independent legal counsel in connection with their consideration of the approval of the Investment Management Agreement. In considering the Investment Management Agreement, the Trustees reviewed a variety of materials relating to the Fund and the Investment Manager, including the nature, extent and quality of services, comparative performance, fee and expense information for an appropriate peer group of similar mutual funds for the Fund (the Peer Group), performance information for the relevant benchmark index for the Fund (the Fund Benchmark), other relevant matters, and other information provided to them on a periodic basis throughout the year. Prior to voting, the Independent Trustees: (a) reviewed the foregoing information with their independent legal counsel; (b) received materials from their independent legal counsel discussing the legal standards applicable to their consideration of the Investment Management Agreement; and (c) met with their independent legal counsel in private sessions at which no representatives of management were present.
NATURE, EXTENT AND QUALITY OF SERVICES.
In considering the nature, extent and quality of the services provided by the Investment Manager, the Trustees reviewed information relating to the Investment Managers operations and personnel. Among other things, the Investment Manager provided financial information, information about its supervisory and professional staff and descriptions of its organizational and management structure. The Trustees also took into account information provided periodically throughout the previous year by the Investment Manager in Board meetings relating to the performance of its duties with respect to the Fund and the Trustees knowledge of the Investment Managers management and the quality of the performance of the Investment Managers duties under the Investment Management Agreement and |
Administration Agreement. In the course of their deliberations regarding the Investment Manager, the Trustees evaluated, among other things: (a) the extent and quality of the Investment Managers oversight of the operation and management of the Fund; (b) the quality of the Investment Managers oversight of the performance by the Subadviser of its portfolio management duties; (c) the Investment Managers ability to supervise the Funds other service providers; and (d) the Investment Managers compliance program. The Trustees also took into account that, in performing its functions under the Investment Management Agreement and supervising the Subadviser, the Investment Manager: performs periodic detailed analyses and reviews of the performance by the Subadviser of its obligations to the Fund, including without limitation, analysis and review of portfolio and other compliance matters and review of the Subadvisers investment performance with respect to the Fund; prepares and presents periodic reports to the Board regarding the investment performance of the Subadviser and other information regarding the Subadviser, at such times and in such forms as the Board may reasonably request; reviews and considers any changes in the personnel of the Subadviser responsible for performing the Subadvisers obligations and makes appropriate reports to the Board; reviews and considers any changes in the ownership or senior management of the Subadviser and makes appropriate reports to the Board; performs periodic in-person, telephonic or videoconference diligence meetings, including with respect to compliance matters, with representatives of the Subadviser; assists the Board and management of the Trust in developing and reviewing information with respect to the initial approval of the Subadvisory Agreement and annual consideration of the Subadvisory Agreement thereafter; prepares recommendations with respect to the continued retention of the Subadviser or the replacement of the Subadviser, including at the request of the Board; identifies potential successors to, or replacements of, the Subadviser or potential additional subadvisers, including performing appropriate due diligence, and developing and presenting to the Board a recommendation as to any such successor, replacement, or additional subadviser, including at the request of the Board; designates and compensates from its own resources such personnel as the Investment Manager may consider necessary or appropriate to the performance of its services; and performs such other review and reporting functions as the Board shall reasonably request consistent with the Investment Management Agreement and applicable law. The Trustees noted the affiliation of the Subadviser with the Investment |
Manager, noting any potential conflicts of interest. The Trustees also took into account the financial condition of the Investment Manager with respect to its ability to provide the services required under the Investment Management Agreement and the Investment Managers undertaking to maintain a contractual expense limitation for the Fund. The Trustees also considered the Investment Managers risk management processes.
PERFORMANCE.
The Board considered the Funds net performance during relevant time periods as compared to the Funds Peer Group and Fund Benchmark and noted that the Board reviews on a quarterly basis detailed information about both the Funds performance results and portfolio composition, as well as the Subadvisers investment philosophy, strategy and techniques used in managing the Fund. The Board was mindful of the Investment Managers expertise, resources and attention to monitoring the Subadvisers performance, investment style and risk-adjusted performance with respect to the Fund and its discussions with the management of the Funds subadvisers during the period regarding the factors that contributed to the performance of the Fund.
Among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has the earliest inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was above the median performance of the Peer Group and above the performance of the Fund Benchmark, the MSCI AC Asia Pacific ex Japan Index. The Trustees took into account managements discussion of the Funds performance, including the fact that the Fund ranked in the top third of its Peer Group for all relevant time periods. The Trustees also took into account the fact that the Funds subadviser, investment strategy, and Fund Benchmark changed effective March 19, 2021, and that the performance information reflected that of the Funds prior subadvisers and investment strategy. The Trustees concluded that the Funds overall performance has been satisfactory.
ADVISORY FEES; FUND EXPENSES; PROFITABILTY; AND ECONOMIES OF SCALE.
In considering the reasonableness of the advisory fee payable to the Investment Manager, the Trustees reviewed information provided by the Investment Manager at the June 24, 2021 and prior meetings setting forth all revenues and other benefits, both direct and indirect (including any so-called fallout |
23
Annual Renewal of Investment Management and Subadvisory Agreements (continued) |
benefits such as reputational value derived from the Investment Manager serving as Investment Manager to the Fund), received by the Investment Manager and its affiliates attributable to managing the Fund and all the mutual funds in the AMG Funds Family of Funds; the cost of providing such services; the significant risks undertaken as Investment Manager and sponsor of the Fund, including investment, operational, enterprise, entrepreneurial, litigation, regulatory and compliance risks; and the resulting profitability to the Investment Manager and its affiliates from these relationships. The Trustees also considered the changes to the management fee and subadvisory fee rates and the change to the expense cap that were implemented during the past year for the Fund. The Trustees also considered the amount of the advisory fee retained by the Investment Manager after payment of the subadvisory fee with respect to the Fund. The Trustees also noted payments made or to be made from the Subadviser to the Investment Manager, and other payments made or to be made from the Investment Manager to the Subadviser. The Trustees also considered managements discussion of the current asset level of the Fund, and the impact on profitability of both the current asset level and any future growth of assets of the Fund.
In considering the cost of services to be provided by the Investment Manager under the Investment Management Agreement and the profitability to the Investment Manager of its relationship with the Fund, the Trustees noted the undertaking by the Investment Manager to maintain a contractual expense limitation for the Fund. The Board also took into account managements discussion of the advisory fee structure, and the services the Investment Manager provides in performing its functions under the Investment Management Agreement and supervising the Subadviser. Based on the foregoing, the Trustees concluded that the profitability to the Investment Manager is reasonable and that the Investment Manager is not realizing material benefits from economies of scale that would warrant adjustments to the advisory fee at this time. Also with respect to economies of scale, the Trustees noted that as the Funds assets increase over time, the Fund may realize other economies of scale to the extent the increase in assets is proportionally greater than the increase in certain other expenses.
The Trustees noted that the management fees (which include both the advisory and administration |
fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were both higher than the average for the Funds Peer Group. The Trustees took into account the fact that, effective June 18, 2021, the Investment Manager has contractually agreed, through May 1, 2023, to lower the Funds contractual expense limitation from 1.11% to 0.93% of the Funds net annual operating expenses (subject to certain excluded expenses). The Trustees also noted that, effective June 18, 2021, the Funds management fee rate was reduced. The Trustees took into account managements discussion of the Funds expenses and competitiveness with comparably sized funds and select competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager, the foregoing expense limitation and the considerations noted above with respect to the Investment Manager, the Funds advisory fees are reasonable.
The Trustees also considered information provided by the Investment Manager throughout the previous year related to the benefits of the strategic repositioning of the AMG Funds complex for greater alignment with Affiliated Managers Group, Inc. (AMG), in which each fund that was not previously subadvised by an affiliate of AMG (each affiliate of AMG, an Affiliate and collectively, Affiliates) was transitioned to an AMG Affiliate subadviser. The Trustees considered that the strategic repositioning was expected to create value for the Fund, the other funds in the AMG Funds complex and their shareholders through enhanced resources and competitive fee levels. The Trustees noted the expectations that the changes would result in bringing the full range of AMGs resources to bear on the growth and success of the AMG Funds, streamlining the lineup of funds in the AMG Funds complex and reducing the number of subadvisers in the AMG Funds complex, significantly reducing strategy overlap and providing more differentiated investment solutions for the AMG Funds complex that are otherwise not available to U.S. retail investors. The Trustees further considered the expectation that the repositioning would bring AMGs strong partnerships in support of the Fund and the AMG Funds complex as a whole and enable AMG Funds to bring the best capabilities of AMGs Affiliates to the Fund and the rest of the AMG Funds complex. The Trustees noted that AMGs relationship |
with its Affiliates will also allow the Fund to have greater insight into the Affiliates compliance and business platform than is generally possible with third party subadvisers, aiding the ongoing monitoring of subadvisers.
* * * * *
After consideration of the foregoing, the Trustees also reached the following conclusions (in addition to the conclusions discussed above) regarding the Investment Management Agreement: (a) the Investment Manager has demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Management Agreement and (b) the Investment Manager maintains an appropriate compliance program.
Based on all of the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Trustee not necessarily attributing the same weight to each factor, the Trustees concluded that approval of the Investment Management Agreement would be in the best interests of the Fund and its shareholders. Accordingly, on June 24, 2021, the Trustees, and separately a majority of the Independent Trustees, voted to approve the Investment Management Agreement for the Fund.
1 The Trustees determined that the conditions surrounding COVID-19 constituted unforeseen or emergency circumstances and that reliance on the Securities and Exchange Commissions (SEC) exemptive order, which provides relief from the in-person voting requirements of the Investment Company Act of 1940, as amended (the 1940 Act), in certain circumstances (the In-Person Relief), was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19. The Trustees unanimously wished to rely on the In-Person Relief with respect to the approval of those matters on the agenda for the June 24, 2021 meeting that would otherwise require in-person votes under the 1940 Act. See Investment Company Release No. 33897 (June 19, 2020). This exemptive order supersedes, in part, a similar, earlier exemptive order issued by the SEC (Investment Company Release No. 33824 (March 25, 2020)).
2 At a meeting held via telephone and videoconference on March 17-18, 2021, the Board of the Trust, and separately a majority of the Independent Trustees, approved the Subadvisory Agreement with respect to the Fund (the Subadvisory Agreement). The Subadvisory Agreement was subsequently approved by the Funds shareholders at a special meeting held on June 18, 2021, for an initial two-year period.
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24
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AMG Managers Special Equity Fund: Approval of Subadvisory Agreements on March 17-18, 2021
At a meeting held via telephone and videoconference on March 17-18, 2021,1 the Board of Trustees (the Board or the Trustees), and separately a majority of the Trustees who are not interested persons of AMG Funds III (the Trust) (the Independent Trustees), unanimously voted to terminate the former subadvisory agreement between AMG Funds LLC (the Investment Manager) and each of Federated MDTA LLC, Lord, Abbett & Co. LLC, Ranger Investment Management L.P. and Smith Asset Management Group, L.P. (each, a Former Subadviser) with respect to AMG Managers Special Equity Fund (the Fund) (each, a Former Subadvisory Agreement), and approve the interim subadvisory agreement between the Investment Manager and Veritas Asset Management LLP (Veritas) with respect to the Fund (the Interim Subadvisory Agreement), the new subadvisory agreement between the Investment Manager and Veritas with respect to the Fund (the New Subadvisory Agreement and together with the Interim Subadvisory Agreement, the Agreements), and the presentation of the New Subadvisory Agreement for shareholder approval at a special meeting to be held for such purpose, including a recommendation that shareholders vote to approve the New Subadvisory Agreement. The Independent Trustees were separately represented by independent legal counsel in their consideration of the Agreements.
In considering the Agreements, the Trustees considered the information relating to the Fund and Veritas provided to them in connection with the meeting on March 17-18, 2021. Prior to voting, the Independent Trustees: (a) reviewed the foregoing information; (b) received materials from their independent legal counsel discussing the legal standards applicable to their consideration of the Agreements; and (c) met with their independent legal counsel in a private session at which no representatives of management were present.
NATURE, EXTENT AND QUALITY OF SERVICES
In considering the nature, extent and quality of the services to be provided by Veritas, the Trustees reviewed information relating to Veritas financial condition, operations and personnel and the investment philosophy, strategies and techniques (the Investment Strategy) that are intended to be used by Veritas in managing the Fund. The Trustees noted that the Funds investment objective would be to seek to provide long-term capital appreciation and |
the Fund would invest, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of issuers located in the Asia Pacific region (excluding Japan). The Trustees further noted that in connection with hiring Veritas, shareholders would be asked to approve a change in the Funds status from operating as a diversified fund to operating as a non-diversified fund. Among other things, the Trustees reviewed information on portfolio management and other professional staff, information regarding Veritas organizational and management structure, and Veritas compliance policies and procedures. The Trustees noted that Veritas was founded in 2003 and has 42 employees. The Trustees considered specific information provided regarding the experience of the individual at Veritas that is expected to have portfolio management responsibility for the Fund. The Trustees noted that the proposed portfolio manager joined Veritas in 2004. In the course of their deliberations, the Trustees evaluated, among other things: (a) the expected services to be rendered by Veritas to the Fund; (b) the qualifications and experience of Veritas personnel; and (c) Veritas compliance program. The Trustees additionally considered Veritas risk management processes. The Trustees reviewed Veritas compliance policies and procedures, code of ethics, and specific information related to how Veritas monitors, among other things, portfolio compliance and proxy voting and deemed all of them to be adequate. The Trustees also took into account the financial condition of Veritas with respect to its ability to provide the services required under the Agreements and noted that, as of December 31, 2020, Veritas managed approximately $33 billion in assets. The Trustees concluded that, given Veritas financial condition, it would be able to meet any reasonably foreseeable obligations under the Agreements.
PERFORMANCE
Because Veritas was proposing to manage the Fund with its Asia Pacific strategy, the Trustees noted that they could not draw any conclusions regarding the performance of the Fund to date. The Trustees, however, considered the performance provided by Veritas with respect to Veritas Asia Equity Composite, which is managed in a substantially similar manner to the Fund. In this regard, the Trustees noted that the performance of the Asia Equity Composite had not been adjusted for the fees and expenses of the Fund. The Trustees reviewed the year over year performance of the Asia Equity |
Composite from 2011 through 2019 and noted that the composite outperformed its benchmark in six of the nine calendar years.
SUBADVISORY FEES, PROFITABILITY AND ECONOMIES OF SCALE
The Trustees noted that the Investment Manager, and not the Fund, is responsible for paying the fees charged by Veritas. In considering the anticipated profitability of Veritas with respect to the provision of subadvisory services to the Fund, the Trustees considered information regarding Veritas organization, management and financial stability. The Trustees noted that, because Veritas is an affiliate (Affiliate) of the Investment Manager, a portion of Veritas revenues or anticipated profits might be shared directly or indirectly with the Investment Manager. The Trustees also noted that the subadvisory fee rate to be paid to Veritas under the Interim Subadvisory Agreement was the same as the rate paid to each Former Subadviser under the applicable Former Subadvisory Agreement. The Trustees further noted that, although the subadvisory fee rate to be paid to Veritas under the New Subadvisory Agreement was higher than the rate paid to each Former Subadviser under the applicable Former Subadvisory Agreement, the fee is paid by the Investment Manager and the approval of the New Subadvisory Agreement will not increase the management fee rate borne by Fund shareholders. The Trustees further noted that the Investment Manager proposed certain fee changes for the Fund, all of which would be implemented upon the effectiveness of the New Subadvisory Agreement and would result in the overall reduction of the Funds net expense ratios as compared with the Funds current fee structure. The Trustees also considered the amount of the advisory fee retained by the Investment Manager after payment of the subadvisory fee with respect to the Fund, which would decrease if the New Subadvisory Agreement was approved. The Trustees also noted payments made or to be made from Veritas to the Investment Manager, and other payments made or to be made from the Investment Manager to Veritas, including certain expense sharing arrangements related to, among other things, shareholder servicing and distribution. The Trustees concluded that these arrangements were reasonable. The Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund
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25
Approval of Subadvisory Agreement (continued) |
would both be lower than the average for an appropriate peer group of similar mutual funds for the Fund once the new fee changes went into effect.
The Board took into account managements discussion of the proposed subadvisory fee structure, and the services Veritas is expected to provide in performing its functions under the Agreements. The Trustees also were provided with the estimated profitability of Veritas with respect to its proposed subadvisory services to the Fund. Based on the foregoing, the Trustees concluded that the profitability to Veritas is expected to be reasonable and that Veritas is not expected to realize material benefits from economies of scale that would warrant adjustments to the subadvisory fees at this time. Also with respect to economies of scale, the Trustees noted that as the Funds assets increase over time, the Fund may realize economies of scale with respect to certain fees and expenses, other than the Funds management fee, to the extent the increase in assets is proportionally greater than the increase in such fees and expenses.
In addition, the Trustees considered other potential benefits of the subadvisory relationship to Veritas, including, among others, the potential broadening of Veritas Asian equity investment capabilities, as well as the indirect benefits that Veritas may receive from Veritas relationship with the Fund, including any so-called fallout benefits to Veritas, such as reputational value derived from Veritas serving as subadviser to the Fund, which bears Veritas name. Taking into account all of the foregoing, the Trustees concluded that, in light of the nature, extent and quality of the services to be provided by Veritas, and the other considerations noted above with respect to Veritas, the Funds subadvisory fees are reasonable. |
The Trustees also considered information provided by the Investment Manager related to the benefits of the proposed strategic repositioning of the AMG Funds complex. The Trustees considered that the strategic repositioning was expected to create value for the Fund, the other funds in the AMG Funds complex and their shareholders through enhanced resources and competitive fee levels. The Trustees noted that the proposed changes would bring the full range of AMGs resources to bear on the growth and success of the AMG Funds, streamline the lineup of funds in the AMG Funds complex and reduce the number of subadvisers, significantly reduce strategy overlap and provide more differentiated investment solutions for the AMG Funds complex that are otherwise not available to U.S. retail investors. The Trustees further considered that the repositioning would bring AMGs strong partnerships in support of the Fund and the AMG Funds complex as a whole and enable AMG Funds to bring the best capabilities of AMGs Affiliates to the Fund and the rest of the AMG Funds complex. The Trustees noted that AMGs relationship with its Affiliates will also allow the Fund to have greater insight into the Affiliates compliance and business platform than is generally possible with third party subadvisers, aiding the ongoing monitoring of subadvisers. In light of the foregoing, in approving the Agreements, the Trustees, including a majority of the Independent Trustees, determined that the hiring of Veritas is in the best interests of the Fund and its shareholders and does not involve a conflict of interest from which the Investment Manager or an affiliated subadviser derives an inappropriate advantage.
* * * *
After consideration of the foregoing, the Trustees reached the following conclusions (in addition to the
|
conclusions discussed above) regarding each Agreement: (a) Veritas has demonstrated that it possesses the capability and resources to perform the duties required of it under each Agreement; (b) Veritas Investment Strategy is appropriate for pursuing the Funds investment objectives; (c) Veritas is reasonably likely to execute its investment strategy consistently over time; and (d) Veritas maintains appropriate compliance programs.
Based on all of the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Trustee not necessarily attributing the same weight to each factor, the Trustees concluded that approval of each Agreement would be in the best interests of the Fund and its shareholders. Accordingly, on March 17-18, 2021, the Trustees, and separately a majority of the Independent Trustees, unanimously voted to approve each Agreement.
1 The Trustees determined that the conditions surrounding the COVID-19 virus constituted unforeseen or emergency circumstances and that reliance on the SECs exemptive order, which provides relief from the in-person voting requirements of the 1940 Act in certain circumstances (the In-Person Relief), was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19. The Trustees unanimously wished to rely on the In-Person Relief with respect to the approval of those matters on the agenda for the March 17-18, 2021 meeting that would otherwise require in-person votes under the 1940 Act. See Investment Company Release No. 33897 (June 19, 2020). This exemptive order supersedes, in part, a similar, earlier exemptive order issued by the SEC (Investment Company Release No. 33824 (March 25, 2020)). |
26
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The Securities and Exchange Commission (the SEC) adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule), to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that a fund will be unable to meet its redemption obligations and mitigating dilution of the interests of fund shareholders.
The AMG Funds Family of Funds (each a Fund, and collectively, the Funds) have adopted and implemented a Liquidity Risk Management Program (the Program) as required by the Liquidity Rule. The Program is reasonably designed to assess and manage each Funds liquidity risk, taking into consideration the Funds investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short and long-term cash flow projections, and its holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources, including access to the Funds credit facility. Under the Liquidity Rule, each liquidity classification category (highly liquid, moderately liquid, less liquid and illiquid) is defined with respect to the time it is reasonably expected to take to convert the investment to cash (or sell or dispose of the investment) in current market conditions without significantly changing the market value of the investment.
The Funds Board of Trustees (the Board) appointed AMG Funds, LLC (AMGF) as the Program administrator. AMGF formed a Liquidity Risk Management Committee (LRMC), which includes |
members of various departments across AMGF, including Legal, Compliance, Mutual Fund Services, Investment Research and Product Analysis & Operations and, as needed, other representatives of AMGF and/or representatives of the subadvisers to the Funds. The LRMC meets on a periodic basis, no less frequently than monthly. The LRMC is responsible for the Programs administration and oversight and for reporting to the Board on at least an annual basis regarding the Programs operation and effectiveness.
At a meeting of the Board held on March 17-18, 2021, the Board received a report from the LRMC regarding the design and operational effectiveness of the Program for the period January 1, 2020 through December 31, 2020 (the Program Reporting Period).
The Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Funds liquidity risk, as follows:
A. The Funds investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions:
During the Program Reporting Period, the LRMC reviewed whether each Funds investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions is appropriate for an open-end fund structure. The LRMC also factored a Funds concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account.
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B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions:
During the Program Reporting Period, the LRMC reviewed historical net redemption activity and used this information as a component to establish each Funds reasonably anticipated trading size. The Funds maintain an in-kind redemption policy, which may be utilized to meet larger redemption requests, when appropriate. The LRMC may also take into consideration a Funds shareholder ownership concentration, a Funds distribution channels, and the degree of certainty associated with a Funds short-term and long-term cash flow projections.
C. Holdings of cash and cash equivalents, as well as borrowing arrangements:
The LRMC considered the terms of the credit facilities available to the Funds.
The report concluded that, based upon the review of the Program, using resources and methodologies that AMGF considers reasonable, AMGF believes that the Program and Funds Liquidity Risk Management Policies and Procedures are adequate, effective, and reasonably designed to effectively manage the Funds liquidity risk.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to each Funds prospectus or statement of additional information for more information regarding a Funds exposure to liquidity risk and other principal risks to which an investment in a Fund may be subject. |
27
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INVESTMENT MANAGER AND ADMINISTRATOR
AMG Funds LLC One Stamford Plaza 263 Tresser Blvd, Suite 949 Stamford, CT 06901 800.548.4539
DISTRIBUTOR
AMG Distributors, Inc. One Stamford Plaza 263 Tresser Blvd, Suite 949 Stamford, CT 06901 800.548.4539
SUBADVISER
Veritas Asset Management LLP 1 Smarts Place London, WC2B 5LW
CUSTODIAN
The Bank of New York Mellon Mutual Funds Custody 6023 Airport Road Oriskany, NY 13424 |
LEGAL COUNSEL
Ropes & Gray LLP Prudential Tower, 800 Boylston Street Boston, MA 02199-3600
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc. Attn: AMG Funds 4400 Computer Drive Westborough, MA 01581 800.548.4539
TRUSTEES
Bruce B. Bingham Christine C. Carsman Kurt Keilhacker Steven J. Paggioli Richard F. Powers III Eric Rakowski Victoria Sassine Thomas R. Schneeweis |
This report is prepared for the Funds shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by an effective prospectus. To receive a free copy of the prospectus or Statement of Additional Information, which includes additional information about Fund Trustees, please contact us by calling 800.548.4539. Distributed by AMG Distributors, Inc., member FINRA/SIPC.
Current net asset values per share for the Fund are available on the Funds website at amgfunds.com.
A description of the policies and procedures the Fund uses to vote its proxies is available: (i) without charge, upon request, by calling 800.548.4539, or (ii) on the Securities and Exchange Commissions (SEC) website at sec.gov. For information regarding the Funds proxy voting record for the 12-month period ended June 30, call 800.548.4539 or visit the SEC website at sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds portfolio holdings on Form N-PORT are available on the SECs website at sec.gov and the Funds website at amgfunds.com. To review a complete list of the Funds portfolio holdings, or to view the most recent semiannual report or annual report, please visit amgfunds.com. |
amgfunds.com | |
BALANCED FUNDS AMG GW&K Global Allocation
GW&K Investment Management, LLC
AMG FQ Global Risk-Balanced
First Quadrant, L.P.
EQUITY FUNDS AMG Beutel Goodman International Equity
Beutel, Goodman & Company Ltd.
AMG Boston Common Global Impact
Boston Common Asset Management, LLC
AMG Managers CenterSquare Real Estate
CenterSquare Investment Management LLC
AMG Frontier Small Cap Growth
Frontier Capital Management Co., LLC
AMG GW&K Small Cap Core AMG GW&K Small Cap Value AMG GW&K Small/Mid Cap AMG GW&K Small/Mid Cap Growth AMG GW&K Emerging Markets Equity AMG GW&K Emerging Wealth Equity AMG GW&K International Small Cap
GW&K Investment Management, LLC
AMG Montrusco Bolton Large Cap Growth
Montrusco Bolton Investments, Inc. |
AMG Renaissance Large Cap Growth
The Renaissance Group LLC
AMG River Road Dividend All Cap Value AMG River Road Focused Absolute Value AMG River Road International Value Equity AMG River Road Large Cap Value Select AMG River Road Mid Cap Value AMG River Road Small-Mid Cap Value AMG River Road Small Cap Value
River Road Asset Management, LLC
AMG TimesSquare Emerging Markets Small Cap AMG TimesSquare Global Small Cap AMG TimesSquare International Small Cap AMG TimesSquare Mid Cap Growth AMG TimesSquare Small Cap Growth
TimesSquare Capital Management, LLC
AMG Veritas Asia Pacific AMG Veritas China AMG Veritas Global Focus AMG Veritas Global Real Return
Veritas Asset Management LLP
AMG Yacktman AMG Yacktman Focused AMG Yacktman Global AMG Yacktman Special Opportunities
Yacktman Asset Management LP |
FIXED INCOME FUNDS
AMG Beutel Goodman Core Plus Bond
Beutel, Goodman & Company Ltd.
AMG GW&K Core Bond ESG AMG GW&K Enhanced Core Bond ESG AMG GW&K ESG Bond AMG GW&K High Income AMG GW&K Municipal Bond AMG GW&K Municipal Enhanced Yield
GW&K Investment Management, LLC |
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amgfunds.com | | 063021 SAR078 |
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SEMI-ANNUAL REPORT | |
AMG Funds | ||||||
June 30, 2021 | ||||||
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Class N, I, & Z Shares | ||||||
Equity |
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Fixed Income |
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International |
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amgfunds.com | 063021 | SAR019 |
AMG Funds Semi-Annual Report June 30, 2021 (unaudited) |
TABLE OF CONTENTS | PAGE | |||||
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ABOUT YOUR FUNDS EXPENSES | 2 | |||||
FUND PERFORMANCE | 4 | |||||
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FUND SNAPSHOTS AND SCHEDULES OF PORTFOLIO INVESTMENTS | |||||
AMG GW&K ESG Bond Fund |
8 | |||||
16 | ||||||
21 | ||||||
25 | ||||||
31 | ||||||
35 | ||||||
41 | ||||||
44 | ||||||
47 | ||||||
FINANCIAL STATEMENTS |
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50 | ||||||
Balance sheets, net asset value (NAV) per share computations |
||||||
56 | ||||||
Detail of sources of income, expenses, and realized and |
||||||
59 | ||||||
Detail of changes in assets for the past two fiscal periods |
||||||
62 | ||||||
Historical net asset values per share, distributions, total returns, income |
||||||
86 | ||||||
Accounting and distribution policies, details of agreements and |
||||||
OTHER INFORMATION | 98 | |||||
ANNUAL RENEWAL OF INVESTMENT MANAGEMENT AND SUBADVISORY AGREEMENTS | 101 | |||||
APPROVAL OF SUBADVISORY AGREEMENTS | 107 | |||||
FUNDS LIQUIDITY RISK MANAGEMENT PROGRAM | 109 | |||||
Nothing contained herein is to be considered an offer, sale or solicitation of an offer to buy shares of any series of the AMG Funds Family of Funds. Such offering is made only by prospectus, which includes details as to offering price and other material information.
|
As a shareholder of a Fund, you may incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on $1,000 invested at the beginning of the period and held for the entire period as indicated below.
ACTUAL EXPENSES
The first line of the following table provides information about the 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 entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Funds
|
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 the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
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), redemption fees, or exchange fees. 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.
|
2
About Your Funds Expenses (continued) |
3
Periods ended June 30, 2021 |
4
Fund Performance Periods ended June 30, 2021 (continued) |
5
Fund Performance Periods ended June 30, 2021 (continued) |
6
Fund Performance Periods ended June 30, 2021 (continued) |
38 The Russell 2000® Index is composed of the 2,000 smallest stocks in the Russell 3000® Index and is widely regarded in the industry as the premier measure of small-cap stock performance. Unlike the Fund, the Russell 2000® Index is unmanaged, is not available for investment and does not incur expenses.
39 The Russell 2500® Index is composed of the 2,500 smallest stocks in the Russell 3000® Index and is widely regarded in the industry as the premier measure of small/mid cap stock performance. Unlike the Fund, the Russell 2500® Index is unmanaged, is not available for investment and does not incur expenses.
40 The Russell 2000® Value Index is an unmanaged, market-value weighted, value-oriented index comprised of small stocks that have relatively low price-to-book ratios and lower forecasted growth values. Unlike the Fund, the Russell 2000® Value
|
Index is unmanaged, is not available for investment and does not incur expenses.
Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively Bloomberg). BARCLAYS® is a trademark and service mark of Barclays Bank PLC (collectively with its affiliates, Barclays), used under license. Bloomberg or Bloombergs licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
All MSCI data is provided as is. The products described here in are not sponsored or endorsed and have not been reviewed or passed on by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the products described here in. Copying or redistributing the MSCI data is strictly prohibited. All holdings and sector/region allocations are subject to review and adjustment in accordance with the Funds investment strategy and may vary in the future, and should not be considered recommendations to buy or sell any security.
The Russell Indices are trademarks of the London Stock Exchange Group companies.
Not FDIC insured, nor bank guaranteed. May lose value. |
7
Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
8
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
9
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
10
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
11
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
12
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
13
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Corporate Bonds and Notes |
| $538,646,140 | | $538,646,140 | ||||||||||||
Asset-Backed Securities |
| | $3,829,328 | 3,829,328 | ||||||||||||
Municipal Bonds |
| 36,939,362 | | 36,939,362 | ||||||||||||
U.S. Government and Agency Obligations |
| 325,053,017 | | 325,053,017 | ||||||||||||
Foreign Government Obligations |
| 15,044,600 | | 15,044,600 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| 26,441,895 | | 26,441,895 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
| $942,125,014 | $3,829,328 | $945,954,342 | ||||||||||||
|
|
|
|
|
|
|
|
| All corporate bonds and notes, municipal bonds and U.S. government and agency obligations held in the Fund are Level 2 securities. For a detailed breakout of corporate bonds and notes, municipal bonds and U.S. government and agency obligations by major industry or agency classification, please refer to the Funds Schedule of Portfolio Investments. |
The following table below is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value at June 30, 2021:
Asset-Backed Securities |
||||
Balance as of December 31, 2020 |
$5,105,499 | |||
Accrued discounts (premiums) |
2,859 | |||
Realized gain (loss) |
6,130 | |||
Change in unrealized appreciation/depreciation |
(669,742 | ) | ||
Purchases |
| |||
Sales |
(615,418 | ) | ||
Transfers in to Level 3 |
| |||
Transfers out of Level 3 |
| |||
Balance as of June 30, 2021 |
$3,829,328 | |||
Net change in unrealized appreciation/depreciation on investments still held at June 30, 2021 |
$(899,699) |
The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy as of June 30, 2021. The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to the Funds fair value measurements:
Quantitative Information about Level 3 Fair Value Measurements
Fair Value as of June 30, 2021 |
Valuation Technique(s) |
Unobservable Inputs(s) |
Range | Median | Impact to Valuation from an Increase in Input(a) | |||||||||
Asset-Backed Securities |
$3,829,328 | Market Approach | Broker Quote | N/A | N/A | Increase | ||||||||
Discount Rate | 10% | N/A | Decrease |
(a) | Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end. |
The accompanying notes are an integral part of these financial statements.
14
AMG GW&K ESG Bond Fund Schedule of Portfolio Investments (continued) |
For the six months ended June 30, 2021, the effect of derivative instruments on the Statement of Operations for the Fund and the amount of realized gain/(loss) and unrealized appreciation/depreciation on derivatives recognized in income was as follows:
Realized Gain/(Loss) | Change in Unrealized Appreciation/Depreciation | |||||||||||
Derivatives not accounted for as hedging instruments |
Statement of Operations Location |
Realized Gain/(Loss) |
Statement of Operations Location |
Change in Unrealized Appreciation/ Depreciation |
||||||||
Interest rate futures contracts |
Net realized gain on futures contracts | $267,476 | Net change in unrealized appreciation/depreciation on futures contracts | | ||||||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
15
AMG GW&K Enhanced Core Bond ESG Fund Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
16
AMG GW&K Enhanced Core Bond ESG Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
17
AMG GW&K Enhanced Core Bond ESG Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
18
AMG GW&K Enhanced Core Bond ESG Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
19
AMG GW&K Enhanced Core Bond ESG Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Corporate Bonds and Notes |
| $26,976,367 | | $26,976,367 | ||||||||||||
Municipal Bonds |
| 4,283,108 | | 4,283,108 | ||||||||||||
U.S. Government and Agency Obligations |
| 19,865,826 | | 19,865,826 | ||||||||||||
Foreign Government Obligation |
| 346,282 | | 346,282 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| 1,621,125 | | 1,621,125 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
| $53,092,708 | | $53,092,708 | ||||||||||||
|
|
|
|
|
|
|
|
| All corporate bonds and notes, municipal bonds, and U.S. government and agency obligations held in the Fund are Level 2 securities. For a detailed breakout of corporate bonds and notes, municipal bonds, and U.S. government and agency obligations by major industry or agency classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
20
Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
21
AMG GW&K High Income Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
22
AMG GW&K High Income Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
23
AMG GW&K High Income Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Corporate Bonds and Notes |
| $19,306,008 | | $19,306,008 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| 2,570,984 | | 2,570,984 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
| $21,876,992 | | $21,876,992 | ||||||||||||
|
|
|
|
|
|
|
|
| All corporate bonds and notes held in the Fund are level 2 securities. For a detailed breakout of corporate bonds and notes by major industry classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
24
Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
25
AMG GW&K Municipal Bond Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
26
AMG GW&K Municipal Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
27
AMG GW&K Municipal Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
28
AMG GW&K Municipal Bond Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
29
AMG GW&K Municipal Bond Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Municipal Bonds |
| $ | 1,280,040,195 | | $ | 1,280,040,195 | ||||||||||
Short-Term Investments |
||||||||||||||||
Municipal Bonds |
| 88,629,344 | | 88,629,344 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
| $ | 1,368,669,539 | | $ | 1,368,669,539 | ||||||||||
|
|
|
|
|
|
|
|
| All municipal bonds held in the Fund are Level 2 securities. For a detailed breakout of municipal bonds by major classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
30
AMG GW&K Municipal Enhanced Yield Fund Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
31
AMG GW&K Municipal Enhanced Yield Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
32
AMG GW&K Municipal Enhanced Yield Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
33
AMG GW&K Municipal Enhanced Yield Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Municipal Bonds
|
|
|
|
|
$362,340,726
|
|
|
|
$362,340,726
|
| ||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
| $362,340,726 | | $362,340,726 | ||||||||||||
|
|
|
|
|
|
|
|
| All municipal bonds held in the Fund are Level 2 securities. For a detailed breakout of municipal bonds by major classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
34
AMG GW&K Global Allocation Fund Fund Snapshots (unaudited) June 30, 2021 |
Credit quality ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P), Moodys Investors Service, Inc. (Moodys) or Fitch. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by any of the rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
35
AMG GW&K Global Allocation Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
36
AMG GW&K Global Allocation Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
37
AMG GW&K Global Allocation Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
38
AMG GW&K Global Allocation Fund Schedule of Portfolio Investments (continued) |
The accompanying notes are an integral part of these financial statements.
39
AMG GW&K Global Allocation Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 21 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Common Stocks |
||||||||||||||||
Information Technology |
$20,019,280 | $11,182,511 | | $31,201,791 | ||||||||||||
Consumer Discretionary |
11,156,783 | 18,156,492 | | 29,313,275 | ||||||||||||
Financials |
10,218,813 | 3,185,753 | | 13,404,566 | ||||||||||||
Health Care |
13,263,060 | | | 13,263,060 | ||||||||||||
Industrials |
8,915,832 | 3,062,679 | | 11,978,511 | ||||||||||||
Communication Services |
7,485,702 | 2,913,820 | | 10,399,522 | ||||||||||||
Real Estate |
3,098,506 | | | 3,098,506 | ||||||||||||
Utilities |
2,607,302 | | | 2,607,302 | ||||||||||||
Corporate Bonds and Notes |
| 18,150,078 | | 18,150,078 | ||||||||||||
Municipal Bonds |
| 1,817,320 | | 1,817,320 | ||||||||||||
U.S. Government and Agency Obligations |
| 9,763,733 | | 9,763,733 | ||||||||||||
Foreign Government Obligations |
| 4,418,533 | | 4,418,533 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| 1,202,439 | | 1,202,439 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$76,765,278 | $73,853,358 | | $150,618,636 | ||||||||||||
|
|
|
|
|
|
|
|
| All corporate bonds and notes, municipal bonds, and U.S. government and agency obligations held in the Fund are Level 2 securities. For a detailed breakout of corporate bonds and notes, municipal bonds, and U.S. government and agency obligations by major industry or agency classification, please refer to the Funds Schedule of Portfolio Investments. |
1 | An external pricing service is used to reflect any impact on security value due to market movements between the time the Fund valued such foreign securities and the earlier closing of foreign markets. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The country allocation in the Schedule of Portfolio Investments at June 30, 2021, was as follows:
The accompanying notes are an integral part of these financial statements.
40
Fund Snapshots (unaudited) June 30, 2021 |
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
41
AMG GW&K Small Cap Core Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
42
AMG GW&K Small Cap Core Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Common Stocks |
$ | 666,913,115 | | | $ | 666,913,115 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 666,913,115 | | | $ | 666,913,115 | ||||||||||
|
|
|
|
|
|
|
|
| All common stocks held in the Fund are Level 1 securities. For a detailed breakout of common stocks by major industry classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
43
Fund Snapshots (unaudited) June 30, 2021 |
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
44
AMG GW&K Small/Mid Cap Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
45
AMG GW&K Small/Mid Cap Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Common Stocks |
$ | 464,737,298 | | | $ | 464,737,298 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 464,737,298 | | | $ | 464,737,298 | ||||||||||
|
|
|
|
|
|
|
|
| All common stocks held in the Fund are Level 1 securities. For a detailed breakout of common stocks by major industry classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
46
Fund Snapshots (unaudited) June 30, 2021 |
# | Less than 0.05%. |
Because a funds strategy may result in multiple investments in particular sectors of the economy, its performance may depend on the performance of those sectors and may fluctuate more widely than investments diversified across more sectors. For additional information on these and other risk considerations, please see the Funds prospectus.
Any sectors, industries, or securities discussed should not be perceived as investment recommendations. Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Specific securities mentioned in this report may have been sold from the Funds portfolio of investments by the time you receive this report.
47
AMG GW&K Small Cap Value Fund Schedule of Portfolio Investments (unaudited) June 30, 2021 |
The accompanying notes are an integral part of these financial statements.
48
AMG GW&K Small Cap Value Fund Schedule of Portfolio Investments (continued) |
The following table summarizes the inputs used to value the Funds investments by the fair value hierarchy levels as of June 30, 2021:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities |
||||||||||||||||
Common Stocks |
$ 299,086,466 | | | $ 299,086,466 | ||||||||||||
Short-Term Investments |
||||||||||||||||
Joint Repurchase Agreements |
| $ 18,254 | | 18,254 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ 299,086,466 | $ 18,254 | | $ 299,104,720 | ||||||||||||
|
|
|
|
|
|
|
|
| All common stocks held in the Fund are Level 1 securities. For a detailed breakout of common stocks by major industry classification, please refer to the Funds Schedule of Portfolio Investments. |
For the six months ended June 30, 2021, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
49
Statement of Assets and Liabilities (unaudited) June 30, 2021 |
AMG GW&K ESG Bond Fund |
AMG GW&K Enhanced Core Bond ESG Fund |
AMG GW&K High Income Fund |
||||||||||
Assets: |
||||||||||||
Investments at value1 (including securities on loan valued at $27,730,546, $2,100,622, and $2,980,290, respectively) |
$919,512,447 | $51,471,583 | $19,306,008 | |||||||||
Repurchase Agreements at value2 |
26,441,895 | 1,621,125 | 2,570,984 | |||||||||
Cash |
12,351,298 | 2,263,714 | 680,606 | |||||||||
Receivable for investments sold |
| 466,848 | 322,787 | |||||||||
Dividend and interest receivables |
7,000,694 | 398,372 | 252,615 | |||||||||
Securities lending income receivable |
5,031 | 1,112 | 1,626 | |||||||||
Receivable for Fund shares sold |
308,082 | 7,601 | 9,972 | |||||||||
Receivable from affiliate |
| 8,502 | 6,043 | |||||||||
Prepaid expenses and other assets |
43,591 | 18,325 | 13,416 | |||||||||
Total assets |
965,663,038 | 56,257,182 | 23,164,057 | |||||||||
Liabilities: |
||||||||||||
Payable upon return of securities loaned |
26,441,895 | 1,621,125 | 2,570,984 | |||||||||
Payable for investments purchased |
| | 571,932 | |||||||||
Payable for Fund shares repurchased |
1,435,183 | 10,238 | 125 | |||||||||
Accrued expenses: |
||||||||||||
Investment advisory and management fees |
188,100 | 13,305 | 6,358 | |||||||||
Administrative fees |
115,993 | 6,653 | 2,446 | |||||||||
Distribution fees |
| 3,373 | | |||||||||
Shareholder service fees |
116,301 | 1,344 | 2,368 | |||||||||
Other |
160,468 | 35,629 | 15,203 | |||||||||
Total liabilities |
28,457,940 | 1,691,667 | 3,169,416 | |||||||||
Net Assets |
$937,205,098 | $54,565,515 | $19,994,641 | |||||||||
1 Investments at cost |
$900,138,975 | $50,028,928 | $19,044,514 | |||||||||
2 Repurchase agreements at cost |
$26,441,895 | $1,621,125 | $2,570,984 |
The accompanying notes are an integral part of these financial statements.
50
Statement of Assets and Liabilities (continued) |
AMG GW&K ESG Bond Fund |
AMG GW&K Enhanced Core Bond ESG Fund |
AMG GW&K High Income Fund |
||||||||||
Net Assets Represent: |
||||||||||||
Paid-in capital |
$917,429,880 | $56,020,349 | $19,727,671 | |||||||||
Total distributable earnings (loss) |
19,775,218 | (1,454,834 | ) | 266,970 | ||||||||
Net Assets |
$937,205,098 | $54,565,515 | $19,994,641 | |||||||||
Class N: |
||||||||||||
Net Assets |
$479,404,258 | $16,463,298 | $9,463,231 | |||||||||
Shares outstanding |
18,666,965 | 1,533,885 | 417,149 | |||||||||
Net asset value, offering and redemption price per share |
$25.68 | $10.73 | $22.69 | |||||||||
Class I: |
||||||||||||
Net Assets |
$457,800,840 | $26,896,373 | $10,531,410 | |||||||||
Shares outstanding |
17,823,325 | 2,496,430 | 464,539 | |||||||||
Net asset value, offering and redemption price per share |
$25.69 | $10.77 | $22.67 | |||||||||
Class Z: |
||||||||||||
Net Assets |
| $11,205,844 | | |||||||||
Shares outstanding |
| 1,040,649 | | |||||||||
Net asset value, offering and redemption price per share |
| $10.77 | |
The accompanying notes are an integral part of these financial statements.
51
Statement of Assets and Liabilities (continued) |
AMG GW&K Municipal Bond Fund |
AMG GW&K Municipal Enhanced Yield Fund |
AMG GW&K Global Allocation Fund |
||||||||||
Assets: |
||||||||||||
Investments at value1 (including securities on loan valued at $0, $0, and $8,649,389, respectively) |
$1,368,669,539 | $362,340,726 | $149,416,197 | |||||||||
Repurchase Agreements at value2 |
| | 1,202,439 | |||||||||
Cash |
47,992,344 | 12,321,633 | 765,594 | |||||||||
Foreign currency3 |
| | 272,325 | |||||||||
Receivable for investments sold |
| 1,021,900 | 190,604 | |||||||||
Dividend and interest receivables |
16,665,198 | 3,598,959 | 342,269 | |||||||||
Securities lending income receivable |
| | 1,270 | |||||||||
Receivable for Fund shares sold |
1,325,092 | 708,647 | 181,761 | |||||||||
Receivable from affiliate |
48,376 | 17,012 | 6,069 | |||||||||
Prepaid expenses and other assets |
66,408 | 21,265 | 20,231 | |||||||||
Total assets |
1,434,766,957 | 380,030,142 | 152,398,759 | |||||||||
Liabilities: |
||||||||||||
Payable upon return of securities loaned |
| | 1,202,439 | |||||||||
Payable for investments purchased |
31,136,700 | 1,000,000 | | |||||||||
Payable for delayed delivery investments purchased |
70,694,111 | | | |||||||||
Payable for Fund shares repurchased |
2,089,632 | 54,000 | 317,805 | |||||||||
Accrued expenses: |
||||||||||||
Investment advisory and management fees |
226,139 | 139,079 | 74,620 | |||||||||
Administrative fees |
164,211 | 46,360 | 18,655 | |||||||||
Distribution fees |
3,566 | 2,818 | 10,136 | |||||||||
Shareholder service fees |
55,735 | 16,575 | 8,081 | |||||||||
Other |
117,922 | 49,669 | 86,491 | |||||||||
Total liabilities |
104,488,016 | 1,308,501 | 1,718,227 | |||||||||
Net Assets |
$1,330,278,941 | $378,721,641 | $150,680,532 | |||||||||
1 Investments at cost |
$1,301,236,253 | $331,275,855 | $109,531,780 | |||||||||
2 Repurchase agreements at cost |
| | $1,202,439 | |||||||||
3 Foreign currency at cost |
| | $275,387 |
The accompanying notes are an integral part of these financial statements.
52
Statement of Assets and Liabilities (continued) |
AMG GW&K Municipal Bond Fund |
AMG GW&K Municipal Enhanced Yield Fund |
AMG GW&K Global Allocation Fund | |||||||||||||
Net Assets Represent: |
|||||||||||||||
Paid-in capital |
$1,256,177,700 | $344,601,424 | $110,044,443 | ||||||||||||
Total distributable earnings |
74,101,241 | 34,120,217 | 40,636,089 | ||||||||||||
Net Assets |
$1,330,278,941 | $378,721,641 | $150,680,532 | ||||||||||||
Class N: |
|||||||||||||||
Net Assets |
$17,315,085 | $13,847,338 | $47,971,919 | ||||||||||||
Shares outstanding |
1,395,027 | 1,264,719 | 2,378,660 | ||||||||||||
Net asset value, offering and redemption price per share |
$12.41 | $10.95 | $20.17 | ||||||||||||
Class I: |
|||||||||||||||
Net Assets |
$1,312,963,856 | $364,739,941 | $99,015,215 | ||||||||||||
Shares outstanding |
105,185,362 | 34,243,838 | 4,854,670 | ||||||||||||
Net asset value, offering and redemption price per share |
$12.48 | $10.65 | $20.40 | ||||||||||||
Class Z: |
|||||||||||||||
Net Assets |
| $134,362 | $3,693,398 | ||||||||||||
Shares outstanding |
| 12,617 | 181,075 | ||||||||||||
Net asset value, offering and redemption price per share |
| $10.65 | $20.40 |
The accompanying notes are an integral part of these financial statements.
53
Statement of Assets and Liabilities (continued) |
AMG GW&K Small Cap Core Fund |
AMG GW&K Small/Mid Cap Fund |
AMG GW&K Small Cap Value Fund |
||||||||||
Assets: |
||||||||||||
Investments at value1 (including securities on loan valued at $78,813,409, $24,555,840, and $41,958,550, respectively) |
$666,913,115 | $464,737,298 | $299,086,466 | |||||||||
Repurchase Agreements at value2 |
| | 18,254 | |||||||||
Cash |
11,954,046 | 8,899,335 | 20,789 | |||||||||
Receivable for investments sold |
6,872,791 | | 45,266,125 | |||||||||
Dividend and interest receivables |
353,440 | 158,285 | 253,252 | |||||||||
Securities lending income receivable |
7,889 | 2,989 | 3,261 | |||||||||
Receivable for Fund shares sold |
310,043 | 15,183,503 | 96,890 | |||||||||
Receivable from affiliate |
| | 3,916 | |||||||||
Prepaid expenses and other assets |
31,522 | 33,199 | 29,503 | |||||||||
Total assets |
686,442,846 | 489,014,609 | 344,778,456 | |||||||||
Liabilities: |
||||||||||||
Payable upon return of securities loaned |
| | 18,254 | |||||||||
Payable for investments purchased |
1,985,620 | | | |||||||||
Payable for Fund shares repurchased |
1,278,120 | 95,631 | 225,282 | |||||||||
Interfund loan payable |
| | 35,217,070 | |||||||||
Accrued expenses: |
||||||||||||
Investment advisory and management fees |
401,009 | 243,684 | 204,427 | |||||||||
Administrative fees |
83,808 | 57,853 | 43,806 | |||||||||
Distribution fees |
2,169 | 13,906 | | |||||||||
Shareholder service fees |
23,892 | 10,111 | 58,223 | |||||||||
Other |
58,767 | 43,543 | 76,666 | |||||||||
Total liabilities |
3,833,385 | 464,728 | 35,843,728 | |||||||||
Net Assets |
$682,609,461 | $488,549,881 | $308,934,728 | |||||||||
1 Investments at cost |
$432,335,543 | $333,388,974 | $236,087,874 | |||||||||
2 Repurchase agreements at cost |
| | $18,254 |
The accompanying notes are an integral part of these financial statements.
54
Statement of Assets and Liabilities (continued) |
AMG GW&K Small Cap Core Fund |
AMG GW&K Small/Mid Cap Fund |
AMG GW&K Small Cap Value Fund |
||||||||||
Net Assets Represent: |
||||||||||||
Paid-in capital |
$399,410,280 | $345,270,900 | $217,993,225 | |||||||||
Total distributable earnings |
283,199,181 | 143,278,981 | 90,941,503 | |||||||||
Net Assets |
$682,609,461 | $488,549,881 | $308,934,728 | |||||||||
Class N: |
||||||||||||
Net Assets |
$10,435,170 | $68,175,720 | $221,405,891 | |||||||||
Shares outstanding |
298,519 | 3,679,171 | 6,757,723 | |||||||||
Net asset value, offering and redemption price per share |
$34.96 | $18.53 | $32.76 | |||||||||
Class I: |
||||||||||||
Net Assets |
$542,266,784 | $248,041,509 | $83,580,309 | |||||||||
Shares outstanding |
15,165,985 | 13,354,356 | 2,541,612 | |||||||||
Net asset value, offering and redemption price per share |
$35.76 | $18.57 | $32.88 | |||||||||
Class Z: |
||||||||||||
Net Assets |
$129,907,507 | $172,332,652 | $3,948,528 | |||||||||
Shares outstanding |
3,631,567 | 9,267,118 | 120,346 | |||||||||
Net asset value, offering and redemption price per share |
$35.77 | $18.60 | $32.81 |
The accompanying notes are an integral part of these financial statements.
55
Statement of Operations (unaudited) For the six months ended June 30, 2021 |
|
AMG GW&K ESG Bond Fund |
|
|
AMG GW&K Enhanced ESG Fund |
|
|
AMG GW&K High Income Fund |
| ||||||||||||||||||||||
Investment Income: |
||||||||||||||||||||||||||||||
Dividend income |
$287,329 | | | |||||||||||||||||||||||||||
Interest income |
13,708,399 | $558,800 | $222,348 | |||||||||||||||||||||||||||
Securities lending income |
27,636 | 7,530 | 6,062 | |||||||||||||||||||||||||||
Foreign withholding tax |
| | (87 | ) | ||||||||||||||||||||||||||
Total investment income |
14,023,364 | 566,330 | 228,323 | |||||||||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||||||||
Investment advisory and management fees |
1,301,907 | 79,557 | 29,400 | |||||||||||||||||||||||||||
Administrative fees |
759,562 | 39,779 | 11,308 | |||||||||||||||||||||||||||
Distribution fees - Class N |
| 20,154 | | |||||||||||||||||||||||||||
Shareholder servicing fees - Class N |
639,128 | | 12,495 | |||||||||||||||||||||||||||
Shareholder servicing fees - Class I |
102,680 | 7,960 | 427 | |||||||||||||||||||||||||||
Reports to shareholders |
57,047 | 4,709 | 1,624 | |||||||||||||||||||||||||||
Professional fees |
48,785 | 25,209 | 22,538 | |||||||||||||||||||||||||||
Trustee fees and expenses |
42,125 | 2,074 | 466 | |||||||||||||||||||||||||||
Registration fees |
39,062 | 19,783 | 8,552 | |||||||||||||||||||||||||||
Custodian fees |
32,305 | 8,534 | 8,223 | |||||||||||||||||||||||||||
Transfer agent fees |
24,782 | 1,703 | 459 | |||||||||||||||||||||||||||
Miscellaneous |
15,442 | 1,907 | 510 | |||||||||||||||||||||||||||
Total expenses before offsets |
3,062,825 | 211,369 | 96,002 | |||||||||||||||||||||||||||
Expense reimbursements |
(6,144 | ) | (55,852 | ) | (38,604 | ) | ||||||||||||||||||||||||
Net expenses |
3,056,681 | 155,517 | 57,398 | |||||||||||||||||||||||||||
Net investment income |
10,966,683 | 410,813 | 170,925 | |||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss): |
||||||||||||||||||||||||||||||
Net realized gain on investments |
102,388,681 | 533,083 | 59,742 | |||||||||||||||||||||||||||
Net realized gain on futures contracts |
267,476 | | | |||||||||||||||||||||||||||
Net realized loss on foreign currency transactions |
(29,405,028 | ) | | | ||||||||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
(98,395,860 | ) | (1,355,741 | ) | 271,294 | |||||||||||||||||||||||||
Net change in unrealized appreciation/depreciation on foreign currency translations |
(6,995 | ) | | | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) |
(25,151,726 | ) | (822,658 | ) | 331,036 | |||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$(14,185,043) | $(411,845) | $501,961 |
The accompanying notes are an integral part of these financial statements.
56
Statement of Operations (continued) |
AMG GW&K Municipal Bond Fund |
AMG GW&K Municipal Enhanced Yield Fund |
AMG GW&K Global Allocation Fund | ||||||||||||||||||||||
Investment Income: |
||||||||||||||||||||||||
Dividend income |
| | $263,227 | |||||||||||||||||||||
Interest income |
$11,500,083 | $5,139,310 | 402,231 | |||||||||||||||||||||
Securities lending income |
| | 9,563 | |||||||||||||||||||||
Foreign withholding tax |
| | (31,666 | ) | ||||||||||||||||||||
Total investment income |
11,500,083 | 5,139,310 | 643,355 | |||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Investment advisory and management fees |
1,353,938 | 785,156 | 454,352 | |||||||||||||||||||||
Administrative fees |
982,911 | 261,719 | 113,588 | |||||||||||||||||||||
Distribution fees - Class N |
22,340 | 11,449 | 63,177 | |||||||||||||||||||||
Shareholder servicing fees - Class N |
10,723 | 6,870 | | |||||||||||||||||||||
Shareholder servicing fees - Class I |
323,169 | 84,917 | 48,580 | |||||||||||||||||||||
Trustee fees and expenses |
50,372 | 13,018 | 6,175 | |||||||||||||||||||||
Registration fees |
47,196 | 28,043 | 27,560 | |||||||||||||||||||||
Professional fees |
44,714 | 25,905 | 23,216 | |||||||||||||||||||||
Custodian fees |
28,483 | 12,993 | 21,396 | |||||||||||||||||||||
Reports to shareholders |
19,802 | 4,976 | 17,047 | |||||||||||||||||||||
Transfer agent fees |
16,462 | 4,225 | 5,825 | |||||||||||||||||||||
Miscellaneous |
14,462 | 4,515 | 3,842 | |||||||||||||||||||||
Total expenses before offsets |
2,914,572 | 1,243,786 | 784,758 | |||||||||||||||||||||
Expense reimbursements |
(330,409 | ) | (111,074 | ) | (59,626 | ) | ||||||||||||||||||
Net expenses |
2,584,163 | 1,132,712 | 725,132 | |||||||||||||||||||||
Net investment income (loss) |
8,915,920 | 4,006,598 | (81,777 | ) | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss): |
||||||||||||||||||||||||
Net realized gain on investments |
5,771,439 | 2,129,226 | 2,210,556 | |||||||||||||||||||||
Net realized loss on foreign currency transactions |
| | (3,183 | ) | ||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
(9,747,988 | ) | 6,576,854 | 3,232,633 | ||||||||||||||||||||
Net change in unrealized appreciation/depreciation on foreign currency translations |
| | (16,877 | ) | ||||||||||||||||||||
Net realized and unrealized gain (loss) |
(3,976,549 | ) | 8,706,080 | 5,423,129 | ||||||||||||||||||||
Net increase in net assets resulting from operations |
$4,939,371 | $12,712,678 | $5,341,352 |
The accompanying notes are an integral part of these financial statements.
57
Statement of Operations (continued) |
AMG GW&K Small Cap Core Fund |
AMG GW&K Small/Mid Cap Fund |
AMG GW&K Small Cap Value Fund | ||||||||||||||||||||||
Investment Income: |
||||||||||||||||||||||||
Dividend income |
$2,250,514 | $1,618,855 | $2,460,231 | |||||||||||||||||||||
Interest income |
| 154 | | |||||||||||||||||||||
Securities lending income |
44,020 | 10,976 | 7,957 | |||||||||||||||||||||
Foreign withholding tax |
(9,626 | ) | (6,024 | ) | | |||||||||||||||||||
Total investment income |
2,284,908 | 1,623,961 | 2,468,188 | |||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Investment advisory and management fees |
2,289,358 | 1,205,313 | 1,232,230 | |||||||||||||||||||||
Administrative fees |
490,577 | 291,608 | 264,049 | |||||||||||||||||||||
Distribution fees - Class N |
12,373 | 53,696 | | |||||||||||||||||||||
Shareholder servicing fees - Class N |
7,424 | | 326,186 | |||||||||||||||||||||
Shareholder servicing fees - Class I |
132,322 | 55,016 | 20,189 | |||||||||||||||||||||
Professional fees |
27,765 | 23,293 | 23,542 | |||||||||||||||||||||
Registration fees |
27,377 | 18,253 | 28,349 | |||||||||||||||||||||
Trustee fees and expenses |
24,311 | 14,434 | 14,182 | |||||||||||||||||||||
Custodian fees |
16,237 | 12,932 | 13,728 | |||||||||||||||||||||
Reports to shareholders |
9,685 | 10,386 | 26,970 | |||||||||||||||||||||
Transfer agent fees |
8,885 | 4,168 | 13,560 | |||||||||||||||||||||
Miscellaneous |
9,289 | 3,971 | 6,819 | |||||||||||||||||||||
Repayment of prior reimbursements |
42,259 | 9,767 | | |||||||||||||||||||||
Total expenses before offsets |
3,097,862 | 1,702,837 | 1,969,804 | |||||||||||||||||||||
Expense reimbursements |
| | (37,948 | ) | ||||||||||||||||||||
Expense reductions |
(25,984 | ) | (16,586 | ) | (56,464 | ) | ||||||||||||||||||
Net expenses |
3,071,878 | 1,686,251 | 1,875,392 | |||||||||||||||||||||
Net investment income (loss) |
(786,970 | ) | (62,290 | ) | 592,796 | |||||||||||||||||||
Net Realized and Unrealized Gain: |
||||||||||||||||||||||||
Net realized gain on investments |
38,337,410 | 9,691,754 | 23,142,947 | |||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
64,547,748 | 59,249,581 | 48,246,101 | |||||||||||||||||||||
Net realized and unrealized gain |
102,885,158 | 68,941,335 | 71,389,048 | |||||||||||||||||||||
Net increase in net assets resulting from operations |
$102,098,188 | $68,879,045 | $71,981,844 |
The accompanying notes are an integral part of these financial statements.
58
Statements of Changes in Net Assets For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020 |
AMG GW&K ESG Bond Fund |
AMG GW&K Enhanced Core Bond ESG Fund |
AMG GW&K High Income Fund | ||||||||||||||||||||||||||||
June 30, 2021 |
December 31, 2020 |
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Increase (Decrease) in Net Assets Resulting From Operations: |
||||||||||||||||||||||||||||||
Net investment income |
$10,966,683 | $38,906,482 | $410,813 | $827,348 | $170,925 | $211,227 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
73,251,129 | (1,563,017 | ) | 533,083 | 851,301 | 59,742 | 995,238 | |||||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
(98,402,855 | ) | 36,446,570 | (1,355,741 | ) | 1,758,021 | 271,294 | (169,694 | ) | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(14,185,043 | ) | 73,790,035 | (411,845 | ) | 3,436,670 | 501,961 | 1,036,771 | ||||||||||||||||||||||
Distributions to Shareholders: |
||||||||||||||||||||||||||||||
Class N |
(39,751,612 | ) | (19,831,473 | ) | (118,018 | ) | (270,732 | ) | (79,001 | ) | (825,025 | ) | ||||||||||||||||||
Class I |
(40,218,719 | ) | (20,896,667 | ) | (206,323 | ) | (319,421 | ) | (92,123 | ) | | |||||||||||||||||||
Class Z |
| | (96,066 | ) | (225,439 | ) | | | ||||||||||||||||||||||
Total distributions to shareholders |
(79,970,331 | ) | (40,728,140 | ) | (420,407 | ) | (815,592 | ) | (171,124 | ) | (825,025 | ) | ||||||||||||||||||
Capital Share Transactions:1 |
||||||||||||||||||||||||||||||
Net increase (decrease) from capital share transactions |
(70,461,207 | ) | (154,973,478 | ) | 252,185 | 19,163,432 | 9,361,946 | 452,271 | ||||||||||||||||||||||
Total increase (decrease) in net assets |
(164,616,581 | ) | (121,911,583 | ) | (580,067 | ) | 21,784,510 | 9,692,783 | 664,017 | |||||||||||||||||||||
Net Assets: |
||||||||||||||||||||||||||||||
Beginning of period |
1,101,821,679 | 1,223,733,262 | 55,145,582 | 33,361,072 | 10,301,858 | 9,637,841 | ||||||||||||||||||||||||
End of period |
$937,205,098 | $1,101,821,679 | $54,565,515 | $55,145,582 | $19,994,641 | $10,301,858 |
1 | See Note 1(g) of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
59
Statements of Changes in Net Assets (continued) For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020 |
AMG GW&K Municipal Bond Fund |
AMG GW&K Municipal Enhanced Yield Fund |
AMG GW&K Global Allocation Fund | ||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Increase in Net Assets Resulting From Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$8,915,920 | $18,149,308 | $4,006,598 | $7,592,341 | $(81,777 | ) | $1,207,441 | |||||||||||||||||||||||
Net realized gain (loss) on investments |
5,771,439 | 4,459,854 | 2,129,226 | 3,972,374 | 2,207,373 | (971,068 | ) | |||||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
(9,747,988 | ) | 30,387,730 | 6,576,854 | 8,743,902 | 3,215,756 | 15,233,111 | |||||||||||||||||||||||
Net increase in net assets resulting from operations |
4,939,371 | 52,996,892 | 12,712,678 | 20,308,617 | 5,341,352 | 15,469,484 | ||||||||||||||||||||||||
Distributions to Shareholders: |
|
|||||||||||||||||||||||||||||
From net investment income and/or realized gain on investments: |
||||||||||||||||||||||||||||||
Class N |
(93,382 | ) | (291,376 | ) | (90,290 | ) | (230,199 | ) | (4,920 | ) | (1,802,668 | ) | ||||||||||||||||||
Class I |
(8,801,261 | ) | (21,463,147 | ) | (3,905,318 | ) | (11,227,601 | ) | (44,613 | ) | (4,171,934 | ) | ||||||||||||||||||
Class Z |
| | (1,520 | ) | (4,636 | ) | (2,780 | ) | (215,224 | ) | ||||||||||||||||||||
From paid-in capital: |
||||||||||||||||||||||||||||||
Class N |
| | | | | (11,312 | ) | |||||||||||||||||||||||
Class I |
| | | | | (26,180 | ) | |||||||||||||||||||||||
Class Z |
| | | | | (1,351 | ) | |||||||||||||||||||||||
Total distributions to shareholders |
(8,894,643 | ) | (21,754,523 | ) | (3,997,128 | ) | (11,462,436 | ) | (52,313 | ) | (6,228,669 | ) | ||||||||||||||||||
Capital Share Transactions:1 |
||||||||||||||||||||||||||||||
Net increase (decrease) from capital share transactions |
28,414,035 | 241,352,504 | 41,422,337 | 40,667,096 | (7,624,742 | ) | (107,931,884 | ) | ||||||||||||||||||||||
Total increase (decrease) in net assets |
24,458,763 | 272,594,873 | 50,137,887 | 49,513,277 | (2,335,703 | ) | (98,691,069 | ) | ||||||||||||||||||||||
Net Assets: |
||||||||||||||||||||||||||||||
Beginning of period |
1,305,820,178 | 1,033,225,305 | 328,583,754 | 279,070,477 | 153,016,235 | 251,707,304 | ||||||||||||||||||||||||
End of period |
$1,330,278,941 | $1,305,820,178 | $378,721,641 | $328,583,754 | $150,680,532 | $153,016,235 |
1 | See Note 1(g) of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
60
Statements of Changes in Net Assets (continued) For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020 |
AMG GW&K Small Cap Core Fund |
AMG GW&K Small/Mid Cap Fund |
AMG GW&K Small Cap Value Fund | ||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Increase (Decrease) in Net Assets Resulting From Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$(786,970 | ) | $1,002,236 | $(62,290 | ) | $295,299 | $592,796 | $1,157,753 | ||||||||||||||||||||||
Net realized gain on investments |
38,337,410 | 29,838,323 | 9,691,754 | 4,655,713 | 23,142,947 | 106,326,548 | ||||||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments |
64,547,748 | 72,950,806 | 59,249,581 | 45,255,119 | 48,246,101 | (122,030,123 | ) | |||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
102,098,188 | 103,791,365 | 68,879,045 | 50,206,131 | 71,981,844 | (14,545,822 | ) | |||||||||||||||||||||||
Distributions to Shareholders: |
||||||||||||||||||||||||||||||
Class N |
| (206,153 | ) | | | | (78,448,514 | ) | ||||||||||||||||||||||
Class I |
| (11,703,788 | ) | | (194,295 | ) | | (32,924,631 | ) | |||||||||||||||||||||
Class Z |
| (3,120,957 | ) | | (187,001 | ) | | (3,178,095 | ) | |||||||||||||||||||||
Total distributions to shareholders |
| (15,030,898 | ) | | (381,296 | ) | | (114,551,240 | ) | |||||||||||||||||||||
Capital Share Transactions:1 |
||||||||||||||||||||||||||||||
Net increase (decrease) from capital share transactions |
(24,377,231 | ) | 64,165,490 | 148,901,542 | 22,104,665 | (100,186,218 | ) | (27,451,765 | ) | |||||||||||||||||||||
Total increase (decrease) in net assets |
77,720,957 | 152,925,957 | 217,780,587 | 71,929,500 | (28,204,374 | ) | (156,548,827 | ) | ||||||||||||||||||||||
Net Assets: |
||||||||||||||||||||||||||||||
Beginning of period |
604,888,504 | 451,962,547 | 270,769,294 | 198,839,794 | 337,139,102 | 493,687,929 | ||||||||||||||||||||||||
End of period |
$682,609,461 | $604,888,504 | $488,549,881 | $270,769,294 | $308,934,728 | $337,139,102 |
1 | See Note 1(g) of the Notes to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
61
AMG GW&K ESG Bond Fund For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20171 | 20162 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$28.12 | $27.14 | $25.49 | $26.97 | $26.24 | $26.19 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income3,4 |
0.27 | 0.90 | 0.94 | 0.84 | 0.91 | 0.95 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.64 | ) | 1.03 | 1.85 | (1.33 | ) | 0.85 | 0.40 | |||||||||||||||||||||||||||
Total income (loss) from investment operations |
(0.37 | ) | 1.93 | 2.79 | (0.49 | ) | 1.76 | 1.35 | |||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.27 | ) | (0.88 | ) | (0.98 | ) | (0.80 | ) | (0.87 | ) | (0.96 | ) | |||||||||||||||||||||||
Net realized gain on investments |
(1.80 | ) | (0.07 | ) | (0.16 | ) | (0.19 | ) | (0.16 | ) | (0.34 | ) | |||||||||||||||||||||||
Total distributions to shareholders |
(2.07 | ) | (0.95 | ) | (1.14 | ) | (0.99 | ) | (1.03 | ) | (1.30 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period |
$25.68 | $28.12 | $27.14 | $25.49 | $26.97 | $26.24 | |||||||||||||||||||||||||||||
Total Return4 |
(1.21 | )%5,6 | 7.34 | %6 | 11.10 | %6 | (1.82 | )%6 | 6.77 | %6 | 5.19 | % | |||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.71 | %7 | 0.71 | % | 0.72 | %8 | 0.98 | % | 0.99 | % | 1.00 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets9 |
0.71 | %7 | 0.72 | % | 0.73 | %8 | 0.98 | %10 | 0.99 | %10 | 1.02 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets4 |
2.06 | %7 | 3.31 | % | 3.53 | % | 3.19 | % | 3.38 | % | 3.52 | % | |||||||||||||||||||||||
Portfolio turnover |
156 | %5 | 25 | % | 20 | % | 9 | % | 4 | % | 27 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$479,404 | $555,124 | $618,381 | $715,468 | $971,359 | $1,234,229 |
|
|
62
AMG GW&K ESG Bond Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20162 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$28.13 | $27.14 | $25.49 | $26.97 | $26.24 | $26.19 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income3,4 |
0.30 | 0.95 | 0.99 | 0.86 | 0.94 | 0.97 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.64 | ) | 1.05 | 1.85 | (1.32 | ) | 0.85 | 0.40 | |||||||||||||||||||||||||||
Total income (loss) from investment operations |
(0.34 | ) | 2.00 | 2.84 | (0.46 | ) | 1.79 | 1.37 | |||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.30 | ) | (0.94 | ) | (1.03 | ) | (0.83 | ) | (0.90 | ) | (0.98 | ) | |||||||||||||||||||||||
Net realized gain on investments |
(1.80 | ) | (0.07 | ) | (0.16 | ) | (0.19 | ) | (0.16 | ) | (0.34 | ) | |||||||||||||||||||||||
Total distributions to shareholders |
(2.10 | ) | (1.01 | ) | (1.19 | ) | (1.02 | ) | (1.06 | ) | (1.32 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period |
$25.69 | $28.13 | $27.14 | $25.49 | $26.97 | $26.24 | |||||||||||||||||||||||||||||
Total Return4,6 |
(1.07 | )%5 | 7.57 | % | 11.32 | % | (1.72 | )% | 6.87 | % | 5.29 | % | |||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.50 | %7 | 0.50 | % | 0.52 | %8 | 0.88 | % | 0.89 | % | 0.90 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets9 |
0.50 | %7 | 0.51 | % | 0.53 | %8 | 0.88 | %10 | 0.89 | %10 | 0.93 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets4 |
2.27 | %7 | 3.52 | % | 3.73 | % | 3.29 | % | 3.48 | % | 3.61 | % | |||||||||||||||||||||||
Portfolio turnover |
156 | %5 | 25 | % | 20 | % | 9 | % | 4 | % | 27 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$457,801 | $546,698 | $605,353 | $1,094,820 | $1,027,477 | $771,782 |
|
|
1 | Effective February 27, 2017, Class S shares were renamed Class N shares. |
2 | Effective October 1, 2016, the Service Class and Institutional Class were renamed Class S and Class I, respectively. |
3 | Per share numbers have been calculated using average shares. |
4 | Total returns and net investment income would have been lower had certain expenses not been offset. |
5 | Not annualized. |
6 | The total return is calculated using the published Net Asset Value as of period end. |
7 | Annualized. |
8 | Includes 0.01% of extraordinary expense related to legal expense in support of an investment held in the portfolio. |
9 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
10 | Ratio includes recapture of reimbursed fees from prior years amounting to 0.04% and 0.07% for the fiscal year ended December 31, 2018 and December 31, 2017, respectively |
63
AMG GW&K Enhanced Core Bond ESG Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.90 | $10.15 | $9.43 | $9.81 | $9.67 | $9.58 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income2,3 |
0.07 | 0.20 | 0.24 | 0.23 | 0.21 | 0.22 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.16 | ) | 0.75 | 0.73 | (0.38 | ) | 0.15 | 0.09 | |||||||||||||||||||||||||||
Total income (loss) from investment operations |
(0.09 | ) | 0.95 | 0.97 | (0.15 | ) | 0.36 | 0.31 | |||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.08 | ) | (0.20 | ) | (0.25 | ) | (0.23 | ) | (0.22 | ) | (0.22 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period |
$10.73 | $10.90 | $10.15 | $9.43 | $9.81 | $9.67 | |||||||||||||||||||||||||||||
Total Return3 |
(0.85 | )%4,5 | 9.41 | %5 | 10.35 | %5 | (1.48 | )%5 | 3.76 | %5 | 3.26 | % | |||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.73 | %6 | 0.73 | % | 0.73 | % | 0.73 | % | 0.75 | % | 0.84 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets7 |
0.94 | %6 | 1.06 | % | 1.16 | % | 0.99 | % | 1.04 | % | 1.05 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.41 | %6 | 1.86 | % | 2.43 | % | 2.45 | % | 2.19 | % | 2.27 | % | |||||||||||||||||||||||
Portfolio turnover |
55 | %4 | 101 | % | 71 | % | 26 | % | 39 | % | 88 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$16,463 | $15,794 | $14,779 | $12,884 | $16,027 | $16,115 |
|
|
64
AMG GW&K Enhanced Core Bond ESG Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20178 | 20161 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.94 | $10.19 | $9.47 | $9.85 | $9.70 | $9.62 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income2,3 |
0.08 | 0.22 | 0.26 | 0.25 | 0.23 | 0.24 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.16 | ) | 0.75 | 0.73 | (0.38 | ) | 0.16 | 0.08 | |||||||||||||||||||||||||||
Total income (loss) from investment operations |
(0.08 | ) | 0.97 | 0.99 | (0.13 | ) | 0.39 | 0.32 | |||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.09 | ) | (0.22 | ) | (0.27 | ) | (0.25 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period |
$10.77 | $10.94 | $10.19 | $9.47 | $9.85 | $9.70 | |||||||||||||||||||||||||||||
Total Return3,5 |
|
(0.75 |
)%4 |
9.57 | % | 10.51 | % | (1.27 | )% | 4.03 | % | 3.31 | % | ||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.54 | %6 | 0.55 | % | 0.55 | % | 0.54 | % | 0.61 | % | 0.69 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets7 |
0.75 | %6 | 0.88 | % | 0.98 | % | 0.80 | % | 0.90 | % | 0.90 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.60 | %6 | 2.04 | % | 2.62 | % | 2.64 | % | 2.32 | % | 2.39 | % | |||||||||||||||||||||||
Portfolio turnover |
55 | %4 | 101 | % | 71 | % | 26 | % | 39 | % | 88 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$26,896 | $27,800 | $8,502 | $5,967 | $6,864 | $37,952 |
|
|
65
AMG GW&K Enhanced Core Bond ESG Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class Z | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20178 | 20161 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.93 | $10.18 | $9.46 | $9.84 | $9.70 | $9.61 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income2,3 |
0.09 | 0.22 | 0.27 | 0.26 | 0.24 | 0.25 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.16 | ) | 0.75 | 0.72 | (0.38 | ) | 0.15 | 0.09 | |||||||||||||||||||||||||||
Total income (loss) from investment operations |
(0.07 | ) | 0.97 | 0.99 | (0.12 | ) | 0.39 | 0.34 | |||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.09 | ) | (0.22 | ) | (0.27 | ) | (0.26 | ) | (0.25 | ) | (0.25 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period |
$10.77 | $10.93 | $10.18 | $9.46 | $9.84 | $9.70 | |||||||||||||||||||||||||||||
Total Return3,5 |
(0.63 | )%4 | 9.65 | % | 10.59 | % | (1.23 | )% | 4.01 | % | 3.52 | % | |||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.48 | %6 | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | 0.59 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets7 |
0.69 | %6 | 0.81 | % | 0.91 | % | 0.74 | % | 0.79 | % | 0.80 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.66 | %6 | 2.11 | % | 2.72 | % | 2.70 | % | 2.43 | % | 2.51 | % | |||||||||||||||||||||||
Portfolio turnover |
55 | %4 | 101 | % | 71 | % | 26 | % | 39 | % | 88 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$11,206 | $11,552 | $10,080 | $15,254 | $21,271 | $51,357 |
|
|
1 | Effective October 1, 2016, the Investor Class, Service Class and Institutional Class were renamed Class N, Class S and Class I, respectively. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income would have been lower had certain expenses not been offset. |
4 | Not annualized. |
5 | The total return is calculated using the published Net Asset Value as of period end. |
6 | Annualized. |
7 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
8 | Effective February 27, 2017, Class I shares were renamed Class Z and Class S shares were renamed Class I. |
66
AMG GW&K High Income Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | |||||||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | ||||||||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20171 | 20162 | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$22.23 | $21.52 | $20.04 | $21.06 | $19.05 | $18.18 | |||||||||||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||||||||||||
Net investment income3,4 |
0.24 | 0.51 | 0.57 | 0.69 | 0.75 | 0.72 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.40 | 2.09 | 0.98 | (1.57 | ) | 1.26 | 0.15 | ||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.64 | 2.60 | 1.55 | (0.88 | ) | 2.01 | 0.87 | ||||||||||||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||||||||||||
Net investment income |
(0.18 | ) | (0.48 | ) | (0.07 | ) | (0.14 | ) | | | |||||||||||||||||||||||||
Net realized gain on investments |
| (1.41 | ) | | | | | ||||||||||||||||||||||||||||
Total distributions to shareholders |
(0.18 | ) | (1.89 | ) | (0.07 | ) | (0.14 | ) | | | |||||||||||||||||||||||||
Net Asset Value, End of Period |
$22.69 | $22.23 | $21.52 | $20.04 | $21.06 | $19.05 | |||||||||||||||||||||||||||||
Total Return4,5 |
2.90 | %6 | 12.16 | % | 7.67 | % | (4.18 | )% | 10.55 | % | 4.79 | % | |||||||||||||||||||||||
Ratio of net expenses to average net assets |
0.84 | %7 | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | |||||||||||||||||||||||
Ratio of gross expenses to average net assets8 |
1.35 | %7 | 1.70 | % | 1.87 | % | 1.52 | % | 1.39 | % | 1.46 | % | |||||||||||||||||||||||
Ratio of net investment income to average net assets4 |
2.19 | %7 | 2.28 | % | 2.70 | % | 3.34 | % | 3.71 | % | 3.75 | % | |||||||||||||||||||||||
Portfolio turnover |
78 | %6 | 157 | % | 52 | % | 60 | % | 55 | % | 34 | % | |||||||||||||||||||||||
Net assets end of period (000s) omitted |
$9,463 | $10,302 | $9,638 | $10,365 | $14,074 | $15,434 |
|
|
67
AMG GW&K High Income Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | |||||
period ended | |||||
Class I | June 30, 20219 (unaudited) | ||||
Net Asset Value, Beginning of Period |
$22.27 | ||||
Income from Investment Operations: |
|||||
Net investment income3,4 |
0.16 | ||||
Net realized and unrealized gain on investments |
0.45 | ||||
Total income from investment operations |
0.61 | ||||
Less Distributions to Shareholders from: |
|||||
Net investment income |
(0.21 | ) | |||
Net Asset Value, End of Period |
$22.67 | ||||
Total Return4,5 |
2.75 | %6 | |||
Ratio of net expenses to average net assets |
0.61 | %7 | |||
Ratio of gross expenses to average net assets8 |
1.12 | %7 | |||
Ratio of net investment income to average net assets4 |
2.42 | %7 | |||
Portfolio turnover |
78 | %6 | |||
Net assets end of period (000s) omitted |
$10,531 |
|
|
1 | Effective February 27, 2017, Class S was renamed Class N. |
2 | Effective October 1, 2016, the shares were reclassified and redesignated as Class S shares. |
3 | Per share numbers have been calculated using average shares. |
4 | Total returns and net investment income would have been lower had certain expenses not been offset. |
5 | The total return is calculated using the published Net Asset Value as of period end. |
6 | Not annualized. |
7 | Annualized. |
8 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
9 | Commencement of operation was on March 15, 2021. |
68
AMG GW&K Municipal Bond Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$12.45 | $12.12 | $11.48 | $11.60 | $11.25 | $11.70 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income2,3 |
0.06 | 0.15 | 0.19 | 0.17 | 0.15 | 0.13 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.04 | ) | 0.33 | 0.64 | (0.11 | ) | 0.36 | (0.25 | ) | |||||||||||||||||||||
Total income (loss) from investment operations |
0.02 | 0.48 | 0.83 | 0.06 | 0.51 | (0.12 | ) | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.06 | ) | (0.15 | ) | (0.19 | ) | (0.18 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||||||||
Net realized gain on investments |
| | | (0.00 | )4 | (0.01 | ) | (0.21 | ) | |||||||||||||||||||||
Total distributions to shareholders |
(0.06 | ) | (0.15 | ) | (0.19 | ) | (0.18 | ) | (0.16 | ) | (0.33 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$12.41 | $12.45 | $12.12 | $11.48 | $11.60 | $11.25 | ||||||||||||||||||||||||
Total Return3,5 |
0.20 | %6 | 4.31 | % | 7.29 | % | 0.54 | % | 4.58 | % | (1.05 | )% | ||||||||||||||||||
Ratio of net expenses to average net assets |
0.71 | %7 | 0.71 | % | 0.71 | % | 0.71 | % | 0.71 | % | 0.71 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets8 |
0.76 | %7 | 0.77 | % | 0.78 | % | 0.77 | % | 0.78 | % | 0.95 | % | ||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.05 | %7 | 1.25 | % | 1.59 | % | 1.53 | % | 1.31 | % | 1.08 | % | ||||||||||||||||||
Portfolio turnover |
9 | %6 | 17 | % | 18 | % | 35 | % | 27 | % | 66 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$17,315 | $18,153 | $18,711 | $17,445 | $29,513 | $31,406 |
|
|
69
AMG GW&K Municipal Bond Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20179 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$12.52 | $12.18 | $11.54 | $11.66 | $11.31 | $11.77 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income2,3 |
0.08 | 0.19 | 0.23 | 0.21 | 0.19 | 0.17 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(0.04 | ) | 0.34 | 0.64 | (0.12 | ) | 0.36 | (0.25 | ) | |||||||||||||||||||||
Total income (loss) from investment operations |
0.04 | 0.53 | 0.87 | 0.09 | 0.55 | (0.08 | ) | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.08 | ) | (0.19 | ) | (0.23 | ) | (0.21 | ) | (0.19 | ) | (0.17 | ) | ||||||||||||||||||
Net realized gain on investments |
| | | (0.00 | )4 | (0.01 | ) | (0.21 | ) | |||||||||||||||||||||
Total distributions to shareholders |
(0.08 | ) | (0.19 | ) | (0.23 | ) | (0.21 | ) | (0.20 | ) | (0.38 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$12.48 | $12.52 | $12.18 | $11.54 | $11.66 | $11.31 | ||||||||||||||||||||||||
Total Return3,5 |
0.36 | %6 | 4.70 | % | 7.58 | % | 0.87 | % | 4.90 | % | (0.70 | )% | ||||||||||||||||||
Ratio of net expenses to average net assets |
0.39 | %7 | 0.39 | % | 0.39 | % | 0.39 | % | 0.37 | % | 0.34 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets8 |
0.44 | %7 | 0.45 | % | 0.46 | % | 0.45 | % | 0.45 | % | 0.58 | % | ||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.37 | %7 | 1.57 | % | 1.91 | % | 1.85 | % | 1.64 | % | 1.45 | % | ||||||||||||||||||
Portfolio turnover |
9 | %6 | 17 | % | 18 | % | 35 | % | 27 | % | 66 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$1,312,964 | $1,287,667 | $1,014,514 | $940,553 | $1,045,399 | $728,365 |
|
|
1 | Effective October 1, 2016, the Investor Class, Service Class and Institutional Class were renamed Class N, Class S and Class I, respectively. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income would have been lower had certain expenses not been offset. |
4 | Less than $(0.005) per share. |
5 | The total return is calculated using the published Net Asset Value as of period end. |
6 | Not annualized. |
7 | Annualized. |
8 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
9 | Effective June 23, 2017, Class S shares were converted to Class I shares. |
70
AMG GW&K Municipal Enhanced Yield Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.69 | $10.42 | $9.69 | $10.02 | $9.40 | $10.08 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income2,3 |
0.10 | 0.23 | 0.26 | 0.27 | 0.26 | 0.25 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.26 | 0.37 | 0.78 | (0.33 | ) | 0.62 | (0.23 | ) | ||||||||||||||||||||||
Total income (loss) from investment operations |
0.36 | 0.60 | 1.04 | (0.06 | ) | 0.88 | 0.02 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.10 | ) | (0.21 | ) | (0.25 | ) | (0.15 | ) | (0.26 | ) | (0.25 | ) | ||||||||||||||||||
Net realized gain on investments |
| (0.12 | ) | (0.06 | ) | | | (0.45 | ) | |||||||||||||||||||||
Paid in capital |
| | | (0.12 | ) | | | |||||||||||||||||||||||
Total distributions to shareholders |
(0.10 | ) | (0.33 | ) | (0.31 | ) | (0.27 | ) | (0.26 | ) | (0.70 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$10.95 | $10.69 | $10.42 | $9.69 | $10.02 | $9.40 | ||||||||||||||||||||||||
Total Return3,4 |
3.39 | %5 | 5.95 | % | 10.92 | % | (0.55 | )% | 9.51 | % | 0.10 | % | ||||||||||||||||||
Ratio of net expenses to average net assets |
0.99 | %6 | 0.99 | % | 0.99 | % | 0.99 | % | 1.01 | % | 1.14 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets7 |
1.05 | %6 | 1.07 | % | 1.08 | % | 1.08 | % | 1.11 | % | 1.30 | % | ||||||||||||||||||
Ratio of net investment income to average net assets3 |
1.96 | %6 | 2.17 | % | 2.56 | % | 2.79 | % | 2.67 | % | 2.38 | % | ||||||||||||||||||
Portfolio turnover |
33 | %5 | 81 | % | 40 | % | 89 | % | 67 | % | 172 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$13,847 | $5,015 | $5,722 | $7,283 | $8,828 | $4,184 |
|
|
71
AMG GW&K Municipal Enhanced Yield Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 20178 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.40 | $10.15 | $9.45 | $10.01 | $9.40 | $10.07 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income2,3 |
0.12 | 0.25 | 0.29 | 0.31 | 0.30 | 0.30 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.25 | 0.37 | 0.76 | (0.32 | ) | 0.61 | (0.22 | ) | ||||||||||||||||||||||
Total income (loss) from investment operations |
0.37 | 0.62 | 1.05 | (0.01 | ) | 0.91 | 0.08 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.12 | ) | (0.25 | ) | (0.29 | ) | (0.31 | ) | (0.30 | ) | (0.30 | ) | ||||||||||||||||||
Net realized gain on investments |
| (0.12 | ) | (0.06 | ) | | | (0.45 | ) | |||||||||||||||||||||
Paid in capital |
| | | (0.24 | ) | | | |||||||||||||||||||||||
Total distributions to shareholders |
(0.12 | ) | (0.37 | ) | (0.35 | ) | (0.55 | ) | (0.30 | ) | (0.75 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$10.65 | $10.40 | $10.15 | $9.45 | $10.01 | $9.40 | ||||||||||||||||||||||||
Total Return3,4 |
3.57 | %5 | 6.31 | % | 11.28 | % | (0.07 | )% | 9.79 | % | 0.70 | % | ||||||||||||||||||
Ratio of net expenses to average net assets |
0.64 | %6 | 0.64 | % | 0.64 | % | 0.64 | % | 0.64 | % | 0.64 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets7 |
0.70 | %6 | 0.72 | % | 0.73 | % | 0.73 | % | 0.74 | % | 0.80 | % | ||||||||||||||||||
Ratio of net investment income to average net assets3 |
2.31 | %6 | 2.52 | % | 2.91 | % | 3.14 | % | 3.05 | % | 2.89 | % | ||||||||||||||||||
Portfolio turnover |
33 | %5 | 81 | % | 40 | % | 89 | % | 67 | % | 172 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$364,740 | $323,439 | $273,228 | $203,867 | $226,638 | $195,193 |
|
|
72
AMG GW&K Municipal Enhanced Yield Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | |||||||||||||||||||||||||
For the six | period ended | ||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||
Class Z |
(unaudited | ) | 2020 | 2019 | 2018 | 2017 | 9 | ||||||||||||||||||
Net Asset Value, Beginning of Period |
$10.40 | $10.15 | $9.44 | $10.01 | $9.49 | ||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||
Net investment income2,3 |
0.12 | 0.26 | 0.30 | 0.31 | 0.25 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.25 | 0.37 | 0.76 | (0.32 | ) | 0.52 | |||||||||||||||||||
Total income (loss) from investment operations |
0.37 | 0.63 | 1.06 | (0.01 | ) | 0.77 | |||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||
Net investment income |
(0.12 | ) | (0.26 | ) | (0.29 | ) | (0.32 | ) | (0.25 | ) | |||||||||||||||
Net realized gain on investments |
| (0.12 | ) | (0.06 | ) | | | ||||||||||||||||||
Paid in capital |
| | | (0.24 | ) | | |||||||||||||||||||
Total distributions to shareholders |
(0.12 | ) | (0.38 | ) | (0.35 | ) | (0.56 | ) | (0.25 | ) | |||||||||||||||
Net Asset Value, End of Period |
$10.65 | $10.40 | $10.15 | $9.44 | $10.01 | ||||||||||||||||||||
Total Return3,4 |
3.60 | %5 | 6.37 | % | 11.45 | % | (0.09 | )% | 8.23 | %5 | |||||||||||||||
Ratio of net expenses to average net assets |
0.59 | %6 | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | %6 | |||||||||||||||
Ratio of gross expenses to average net assets7 |
0.65 | %6 | 0.67 | % | 0.68 | % | 0.68 | % | 0.69 | %6 | |||||||||||||||
Ratio of net investment income to average net assets3 |
2.36 | %6 | 2.57 | % | 2.96 | % | 3.19 | % | 3.07 | %6 | |||||||||||||||
Portfolio turnover |
33 | %5 | 81 | % | 40 | % | 89 | % | 67 | % | |||||||||||||||
Net assets end of period (000s) omitted |
$134 | $130 | $120 | $108 | $108 |
|
|
1 | Effective October 1, 2016, the Investor Class, Service Class and Institutional Class were renamed Class N, Class S and Class I, respectively. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income would have been lower had certain expenses not been offset. |
4 | The total return is calculated using the published Net Asset Value as of period end. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
8 | Effective June 23, 2017, Class S shares were converted to Class I shares. |
9 | Commencement of operations was February 27, 2017. |
73
AMG GW&K Global Allocation Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$19.50 | $17.04 | $15.45 | $17.03 | $15.45 | $14.92 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.02 | ) | 0.10 | 0.25 | 0.18 | 0.10 | 0.14 | 4 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.69 | 2.93 | 2.35 | (0.67 | ) | 2.30 | 0.54 | |||||||||||||||||||||||
Total income (loss) from investment operations |
0.67 | 3.03 | 2.60 | (0.49 | ) | 2.40 | 0.68 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.00 | )5 | (0.09 | ) | (0.27 | ) | (0.16 | ) | (0.11 | ) | (0.14 | ) | ||||||||||||||||||
Net realized gain on investments |
| (0.48 | ) | (0.74 | ) | (0.93 | ) | (0.71 | ) | (0.01 | ) | |||||||||||||||||||
Paid in capital |
| (0.00 | )5 | | | | | |||||||||||||||||||||||
Total distributions to shareholders |
(0.00 | )5 | (0.57 | ) | (1.01 | ) | (1.09 | ) | (0.82 | ) | (0.15 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$20.17 | $19.50 | $17.04 | $15.45 | $17.03 | $15.45 | ||||||||||||||||||||||||
Total Return3,6 |
3.45 | %7 | 18.92 | % | 16.96 | % | (2.89 | )% | 15.54 | % | 4.59 | % | ||||||||||||||||||
Ratio of net expenses to average net assets8 |
1.06 | %9 | 1.07 | % | 1.08 | % | 1.08 | % | 1.09 | % | 1.08 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets10 |
1.14 | %9 | 1.19 | % | 1.16 | % | 1.15 | % | 1.14 | % | 1.25 | % | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.21 | )%9 | 0.60 | % | 1.51 | % | 1.02 | % | 0.63 | % | 0.94 | % | ||||||||||||||||||
Portfolio turnover |
20 | %7 | 156 | % | 123 | % | 80 | % | 75 | % | 119 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$47,972 | $51,415 | $69,774 | $75,271 | $74,315 | $92,502 |
|
|
74
AMG GW&K Global Allocation Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$19.71 | $17.22 | $15.60 | $17.19 | $15.59 | $15.05 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.01 | ) | 0.13 | 0.28 | 0.21 | 0.13 | 0.17 | 4 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.71 | 2.95 | 2.38 | (0.68 | ) | 2.31 | 0.54 | |||||||||||||||||||||||
Total income (loss) from investment operations |
0.70 | 3.08 | 2.66 | (0.47 | ) | 2.44 | 0.71 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.01 | ) | (0.11 | ) | (0.30 | ) | (0.19 | ) | (0.13 | ) | (0.16 | ) | ||||||||||||||||||
Net realized gain on investments |
| (0.48 | ) | (0.74 | ) | (0.93 | ) | (0.71 | ) | (0.01 | ) | |||||||||||||||||||
Paid in capital |
| (0.00 | )5 | | | | | |||||||||||||||||||||||
Total distributions to shareholders |
(0.01 | ) | (0.59 | ) | (1.04 | ) | (1.12 | ) | (0.84 | ) | (0.17 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$20.40 | $19.71 | $17.22 | $15.60 | $17.19 | $15.59 | ||||||||||||||||||||||||
Total Return3,6 |
3.55 | %7 | 19.08 | % | 17.17 | % | (2.77 | )% | 15.71 | % | 4.79 | % | ||||||||||||||||||
Ratio of net expenses to average net assets8 |
0.91 | %9 | 0.92 | % | 0.93 | % | 0.92 | % | 0.94 | % | 0.93 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets10 |
0.99 | %9 | 1.04 | % | 1.01 | % | 0.99 | % | 0.99 | % | 1.10 | % | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.06 | )%9 | 0.75 | % | 1.66 | % | 1.18 | % | 0.78 | % | 1.09 | % | ||||||||||||||||||
Portfolio turnover |
20 | %7 | 156 | % | 123 | % | 80 | % | 75 | % | 119 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$99,015 | $97,869 | $173,575 | $166,554 | $114,913 | $75,890 |
|
|
75
AMG GW&K Global Allocation Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class Z | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$19.71 | $17.21 | $15.60 | $17.19 | $15.58 | $15.05 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income2,3 |
0.00 | 5 | 0.14 | 0.30 | 0.22 | 0.15 | 0.18 | 4 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
0.70 | 2.97 | 2.37 | (0.67 | ) | 2.32 | 0.54 | |||||||||||||||||||||||
Total income (loss) from investment operations |
0.70 | 3.11 | 2.67 | (0.45 | ) | 2.47 | 0.72 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
(0.01 | ) | (0.13 | ) | (0.32 | ) | (0.21 | ) | (0.15 | ) | (0.18 | ) | ||||||||||||||||||
Net realized gain on investments |
| (0.48 | ) | (0.74 | ) | (0.93 | ) | (0.71 | ) | (0.01 | ) | |||||||||||||||||||
Paid in capital |
| (0.00 | )5 | | | | | |||||||||||||||||||||||
Total distributions to shareholders |
(0.01 | ) | (0.61 | ) | (1.06 | ) | (1.14 | ) | (0.86 | ) | (0.19 | ) | ||||||||||||||||||
Net Asset Value, End of Period |
$20.40 | $19.71 | $17.21 | $15.60 | $17.19 | $15.58 | ||||||||||||||||||||||||
Total Return3,6 |
3.58 | %7 | 19.28 | % | 17.21 | % | (2.68 | )% | 15.90 | % | 4.82 | % | ||||||||||||||||||
Ratio of net expenses to average net assets8 |
0.81 | %9 | 0.82 | % | 0.83 | % | 0.83 | % | 0.84 | % | 0.83 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets10 |
0.89 | %9 | 0.94 | % | 0.91 | % | 0.90 | % | 0.89 | % | 1.00 | % | ||||||||||||||||||
Ratio of net investment income to average net assets3 |
0.04 | %9 | 0.85 | % | 1.76 | % | 1.27 | % | 0.88 | % | 1.20 | % | ||||||||||||||||||
Portfolio turnover |
20 | %7 | 156 | % | 123 | % | 80 | % | 75 | % | 119 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$3,693 | $3,733 | $8,358 | $8,429 | $7,060 | $5,796 |
|
|
1 | Effective October 1, 2016, the Investor Class, Service Class and Institutional Class were renamed Class N, Class I and Class Z, respectively. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income would have been lower had certain expenses not been offset. |
4 | Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.12, $0.15, and $0.16 for Class N, Class I, and Class Z shares, respectively. |
5 | Less than $0.005 or $(0.005) per share. |
6 | The total return is calculated using the published Net Asset Value as of period end. |
7 | Not annualized. |
8 | Includes reduction from broker recapture amounting to less than 0.01% for the fiscal year ended December 31, 2020, 0.01% for the fiscal years ended December 31, 2019 and 2018, less than 0.01% and 0.01% for the fiscal years ended 2017 and 2016, respectively. |
9 | Annualized. |
10 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
76
AMG GW&K Small Cap Core Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class N | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 2017 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$29.97 | $26.09 | $21.03 | $28.04 | $24.57 | $21.80 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.10 | ) | (0.03 | ) | (0.04 | ) | (0.04 | ) | (0.06 | )4 | 0.00 | 5,6 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
5.09 | 4.64 | 6.47 | (3.95 | ) | 5.06 | 3.81 | |||||||||||||||||||||||
Total income (loss) from investment operations |
4.99 | 4.61 | 6.43 | (3.99 | ) | 5.00 | 3.81 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net realized gain on investments |
| (0.73 | ) | (1.37 | ) | (3.02 | ) | (1.53 | ) | (1.04 | ) | |||||||||||||||||||
Net Asset Value, End of Period |
$34.96 | $29.97 | $26.09 | $21.03 | $28.04 | $24.57 | ||||||||||||||||||||||||
Total Return3,7 |
16.65 | %8 | 17.73 | % | 30.66 | % | (14.08 | )% | 20.32 | % | 17.44 | % | ||||||||||||||||||
Ratio of net expenses to average net assets9 |
1.30 | %10,11 | 1.29 | % | 1.29 | % | 1.28 | % | 1.32 | % | 1.33 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets12 |
1.30 | %10,11 | 1.30 | % | 1.31 | % | 1.28 | % | 1.33 | % | 1.42 | % | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.60 | )%10 | (0.14 | )% | (0.15 | )% | (0.13 | )% | (0.21 | )% | 0.01 | % | ||||||||||||||||||
Portfolio turnover |
20 | %8 | 37 | % | 20 | % | 25 | % | 23 | % | 19 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$10,435 | $8,667 | $10,239 | $12,655 | $24,989 | $35,760 |
|
|
77
AMG GW&K Small Cap Core Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||||||||
Class I | June 30, 2021 (unaudited) |
2020 | 2019 | 2018 | 201713 | 20161 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
$30.61 | $26.57 | $21.37 | $28.42 | $24.84 | $22.04 | ||||||||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.04 | ) | 0.05 | 0.05 | 0.06 | 0.07 | 4 | 0.10 | 5 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
5.19 | 4.76 | 6.58 | (4.03 | ) | 5.10 | 3.86 | |||||||||||||||||||||||
Total income (loss) from investment operations |
5.15 | 4.81 | 6.63 | (3.97 | ) | 5.17 | 3.96 | |||||||||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||||||||
Net investment income |
| (0.04 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | (0.10 | ) | |||||||||||||||||||
Net realized gain on investments |
| (0.73 | ) | (1.37 | ) | (3.02 | ) | (1.53 | ) | (1.06 | ) | |||||||||||||||||||
Total distributions to shareholders |
| (0.77 | ) | (1.43 | ) | (3.08 | ) | (1.59 | ) | (1.16 | ) | |||||||||||||||||||
Net Asset Value, End of Period |
$35.76 | $30.61 | $26.57 | $21.37 | $28.42 | $24.84 | ||||||||||||||||||||||||
Total Return3,7 |
16.82 | %8 | 18.16 | % | 31.13 | % | (13.83 | )% | 20.79 | % | 17.90 | % | ||||||||||||||||||
Ratio of net expenses to average net assets9 |
0.95 | %10,11 | 0.94 | % | 0.94 | % | 0.95 | % | 0.95 | % | 0.94 | % | ||||||||||||||||||
Ratio of gross expenses to average net assets12 |
0.95 | %10,11 | 0.95 | % | 0.96 | % | 0.95 | % | 0.96 | % | 1.03 | % | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.25 | )%10 | 0.21 | % | 0.20 | % | 0.20 | % | 0.24 | % | 0.43 | % | ||||||||||||||||||
Portfolio turnover |
20 | %8 | 37 | % | 20 | % | 25 | % | 23 | % | 19 | % | ||||||||||||||||||
Net assets end of period (000s) omitted |
$542,267 | $470,373 | $331,703 | $311,252 | $403,309 | $367,972 |
|
|
78
AMG GW&K Small Cap Core Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | |||||||||||||||||||||||||
For the six | period ended | ||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||
Class Z |
(unaudited | ) | 2020 | 2019 | 2018 | 201714 | |||||||||||||||||||
Net Asset Value, Beginning of Period |
$30.61 | $26.57 | $21.37 | $28.42 | $26.13 | ||||||||||||||||||||
Income (loss) from Investment Operations: |
|||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.03 | ) | 0.07 | 0.06 | 0.07 | 0.14 | 4 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
5.19 | 4.75 | 6.59 | (4.03 | ) | 3.75 | |||||||||||||||||||
Total income (loss) from investment operations |
5.16 | 4.82 | 6.65 | (3.96 | ) | 3.89 | |||||||||||||||||||
Less Distributions to Shareholders from: |
|||||||||||||||||||||||||
Net investment income |
| (0.05 | ) | (0.08 | ) | (0.07 | ) | (0.07 | ) | ||||||||||||||||
Net realized gain on investments |
| (0.73 | ) | (1.37 | ) | (3.02 | ) | (1.53 | ) | ||||||||||||||||
Total distributions to shareholders |
| (0.78 | ) | (1.45 | ) | (3.09 | ) | (1.60 | ) | ||||||||||||||||
Net Asset Value, End of Period |
$35.77 | $30.61 | $26.57 | $21.37 | $28.42 | ||||||||||||||||||||
Total Return3,7 |
16.86 | %8 | 18.21 | % | 31.13 | % | (13.73 | )% | 14.87 | %8 | |||||||||||||||
Ratio of net expenses to average net assets9 |
0.90 | %10,11 | 0.89 | % | 0.89 | % | 0.90 | % | 0.90 | %10 | |||||||||||||||
Ratio of gross expenses to average net assets12 |
0.90 | %10,11 | 0.90 | % | 0.91 | % | 0.90 | % | 0.91 | %10 | |||||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.20 | )%10 | 0.26 | % | 0.25 | % | 0.25 | % | 0.56 | %10 | |||||||||||||||
Portfolio turnover |
20 | %8 | 37 | % | 20 | % | 25 | % | 23 | % | |||||||||||||||
Net assets end of period (000s) omitted |
$129,908 | $125,848 | $110,020 | $85,009 | $108,047 |
|
|
1 | Effective October 1, 2016, the Investor Class, Service Class and Institutional Class were renamed Class N, Class S and Class I, respectively. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income (loss) would have been lower had certain expenses not been offset. |
4 | Includes non-recurring dividends. Without these dividends, net investment income per share would have been $(0.12), $0.01, and $0.09 for Class N, Class I and Class Z shares, respectively. |
5 | Includes non-recurring dividends. Without these dividends, net investment income per share would have been $(0.06) and $0.04 for class N and Class I, respectively. |
6 | Less than $0.005 per share. |
7 | The total return is calculated using the published Net Asset Value as of period end. |
8 | Not annualized. |
9 | Includes reduction from broker recapture amounting to less than 0.01% for the six months ended June 30, 2021, 0.01% for the fiscal year ended 2020, 2019, less than 0.01% for the fiscal year ended 2018 and period ended December 31, 2017. |
10 | Annualized. |
11 | Such ratio includes recapture of waived/reimbursed fees from prior periods amounting to 0.01%. |
12 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
13 | Effective June 23, 2017, Class S shares were converted to Class I shares. |
14 | Commencement of operations was on February 27, 2017. |
79
AMG GW&K Small/Mid Cap Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | ||||||||||||||||||||
For the six | period ended | |||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | ||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Class N | (unaudited) | 2020 | 2019 | 2018 | 20171 | |||||||||||||||
Net Asset Value, Beginning of Period |
$16.04 | $13.03 | $9.99 | $11.15 | $10.35 | |||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||
Net investment income (loss)2,3 |
(0.02 | ) | (0.01 | ) | 0.00 | 4 | (0.01 | ) | 0.01 | 5 | ||||||||||
Net realized and unrealized gain (loss) on investments |
2.51 | 3.02 | 3.07 | (0.91 | ) | 0.94 | ||||||||||||||
Total income (loss) from investment operations |
2.49 | 3.01 | 3.07 | (0.92 | ) | 0.95 | ||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||
Net investment income |
| | (0.01 | ) | | | ||||||||||||||
Net realized gain on investments |
| | (0.02 | ) | (0.24 | ) | (0.15 | ) | ||||||||||||
Total distributions to shareholders |
| | (0.03 | ) | (0.24 | ) | (0.15 | ) | ||||||||||||
Net Asset Value, End of Period |
$18.53 | $16.04 | $13.03 | $9.99 | $11.15 | |||||||||||||||
Total Return3,6 |
15.52 | %7 | 23.10 | % | 30.64 | % | (8.25 | )% | 9.17 | %7 | ||||||||||
Ratio of net expenses to average net assets8 |
1.07 | %9,10 | 1.10 | % | 1.09 | % | 1.09 | % | 1.10 | %9 | ||||||||||
Ratio of gross expenses to average net assets11 |
1.07 | %9,10 | 1.13 | % | 1.14 | % | 1.16 | % | 1.71 | %9 | ||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.23 | )%9 | (0.07 | )% | 0.02 | % | (0.09 | )% | 0.12 | %9 | ||||||||||
Portfolio turnover |
9 | %7 | 29 | % | 18 | % | 53 | % | 38 | % | ||||||||||
Net assets end of period (000s) omitted |
$68,176 | $224 | $172 | $89 | $11 | |||||||||||||||
80
AMG GW&K Small/Mid Cap Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||
Class I | (unaudited) | 2020 | 2019 | 2018 | 2017 | 201612 | ||||||||||||||||||
Net Asset Value, Beginning of Period |
$16.06 | $13.04 | $9.99 | $11.15 | $9.80 | $8.95 | ||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||
Net investment income (loss)2,3 |
(0.00 | )4 | 0.01 | 0.02 | 0.01 | 0.03 | 5 | (0.03 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
2.51 | 3.03 | 3.07 | (0.92 | ) | 1.48 | 0.89 | |||||||||||||||||
Total income (loss) from investment operations |
2.51 | 3.04 | 3.09 | (0.91 | ) | 1.51 | 0.86 | |||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||
Net investment income |
| (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||
Net realized gain on investments |
| | (0.02 | ) | (0.24 | ) | (0.15 | ) | | |||||||||||||||
Total distributions to shareholders |
| (0.02 | ) | (0.04 | ) | (0.25 | ) | (0.16 | ) | (0.01 | ) | |||||||||||||
Net Asset Value, End of Period |
$18.57 | $16.06 | $13.04 | $9.99 | $11.15 | $9.80 | ||||||||||||||||||
Total Return3,6 |
15.63 | %7 | 23.31 | % | 30.86 | % | (8.15 | )% | 15.44 | % | 9.55 | % | ||||||||||||
Ratio of net expenses to average net assets8 |
0.87 | %9,10 | 0.92 | % | 0.94 | % | 0.94 | % | 0.94 | % | 0.95 | % | ||||||||||||
Ratio of gross expenses to average net assets11 |
0.87 | %9,10 | 0.95 | % | 0.99 | % | 1.01 | % | 1.62 | % | 4.60 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets3 |
(0.03 | )%9 | 0.11 | % | 0.17 | % | 0.06 | % | 0.26 | % | (0.38 | )% | ||||||||||||
Portfolio turnover |
9 | %7 | 29 | % | 18 | % | 53 | % | 38 | % | 48 | % | ||||||||||||
Net assets end of period (000s) omitted |
$248,042 | $165,840 | $102,784 | $54,376 | $24,266 | $2 | ||||||||||||||||||
81
AMG GW&K Small/Mid Cap Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | ||||||||||||||||||||
For the six | period ended | |||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | ||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Class Z | (unaudited) | 2020 | 2019 | 2018 | 20171 | |||||||||||||||
Net Asset Value, Beginning of Period |
$16.07 | $13.05 | $10.00 | $11.15 | $10.35 | |||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||
Net investment income2,3 |
0.00 | 4 | 0.02 | 0.03 | 0.02 | 0.03 | 5 | |||||||||||||
Net realized and unrealized gain (loss) on investments |
2.53 | 3.03 | 3.07 | (0.91 | ) | 0.94 | ||||||||||||||
Total income (loss) from investment operations |
2.53 | 3.05 | 3.10 | (0.89 | ) | 0.97 | ||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||
Net investment income |
| (0.03 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | |||||||||||
Net realized gain on investments |
| | (0.02 | ) | (0.24 | ) | (0.15 | ) | ||||||||||||
Total distributions to shareholders |
| (0.03 | ) | (0.05 | ) | (0.26 | ) | (0.17 | ) | |||||||||||
Net Asset Value, End of Period |
$18.60 | $16.07 | $13.05 | $10.00 | $11.15 | |||||||||||||||
Total Return3,6 |
15.74 | %7 | 23.37 | % | 30.94 | % | (7.98 | )% | 9.34 | %7 | ||||||||||
Ratio of net expenses to average net assets8 |
0.82 | %9,10 | 0.83 | % | 0.84 | % | 0.84 | % | 0.85 | %9 | ||||||||||
Ratio of gross expenses to average net assets11 |
0.82 | %9,10 | 0.86 | % | 0.89 | % | 0.91 | % | 1.46 | %9 | ||||||||||
Ratio of net investment income to average net assets3 |
0.02 | %9 | 0.19 | % | 0.27 | % | 0.16 | % | 0.37 | %9 | ||||||||||
Portfolio turnover |
9 | %7 | 29 | % | 18 | % | 53 | % | 38 | % | ||||||||||
Net assets end of period (000s) omitted |
$172,333 | $104,705 | $95,884 | $65,375 | $6,980 | |||||||||||||||
1 | Commencement of operations was on February 27, 2017. |
2 | Per share numbers have been calculated using average shares. |
3 | Total returns and net investment income (loss) would have been lower had certain expenses not been offset. |
4 | Less than $0.005 or $(0.005) per share. |
5 | Includes non-recurring dividends. Without these dividends, net investment income per share would have been $(0.01), $0.00, and $0.01 for Class N, Class I and Class Z, respectively. |
6 | The total return is calculated using the published Net Asset Value as of period end. |
7 | Not annualized. |
8 | Includes reduction from broker recapture amounting to less than 0.01% for the six months ended June 30, 2021, 0.01% for the fiscal year ended 2020, 2019, 2018, and less than 0.01% for the fiscal year ended 2017. |
9 | Annualized. |
10 | Such ratio includes recapture of waived/reimbursed fees from prior periods amounting to less than 0.01%. |
11 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
12 | Effective October 1, 2016, Institutional Class was renamed Class I. |
82
AMG GW&K Small Cap Value Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the six | ||||||||||||||||||||||||
months ended | For the fiscal years ended December 31, | |||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||
Class N | (unaudited) | 2020 | 2019 | 2018 | 20171 | 20162 | ||||||||||||||||||
Net Asset Value, Beginning of Period |
$26.71 | $37.16 | $30.93 | $43.98 | $43.30 | $35.71 | ||||||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||||||
Net investment income (loss)3,4 |
0.04 | 0.08 | 0.07 | (0.01 | ) | (0.08 | ) | (0.01 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
6.01 | 1.00 | 8.79 | (8.40 | ) | 3.73 | 7.61 | |||||||||||||||||
Total income (loss) from investment operations |
6.05 | 1.08 | 8.86 | (8.41 | ) | 3.65 | 7.60 | |||||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||||||
Net investment income |
| (0.08 | ) | (0.09 | ) | | | | ||||||||||||||||
Net realized gain on investments |
| (11.45 | ) | (2.54 | ) | (4.64 | ) | (2.97 | ) | (0.01 | ) | |||||||||||||
Total distributions to shareholders |
| (11.53 | ) | (2.63 | ) | (4.64 | ) | (2.97 | ) | (0.01 | ) | |||||||||||||
Net Asset Value, End of Period |
$32.76 | $26.71 | $37.16 | $30.93 | $43.98 | $43.30 | ||||||||||||||||||
Total Return4,5 |
22.73 | %6 | 3.29 | % | 28.64 | % | (19.00 | )% | 8.39 | % | 21.31 | % | ||||||||||||
Ratio of net expenses to average net assets7 |
1.13 | %8 | 1.17 | % | 1.17 | % | 1.17 | % | 1.25 | % | 1.32 | % | ||||||||||||
Ratio of gross expenses to average net assets9 |
1.17 | %8 | 1.21 | % | 1.20 | % | 1.18 | % | 1.27 | % | 1.42 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets4 |
0.27 | %8 | 0.28 | % | 0.19 | % | (0.03 | )% | (0.18 | )% | (0.03 | )% | ||||||||||||
Portfolio turnover |
7 | %6 | 115 | % | 20 | % | 24 | % | 33 | % | 34 | % | ||||||||||||
Net assets end of period (000s) omitted |
$221,406 | $243,655 | $359,550 | $425,540 | $923,139 | $1,502,587 | ||||||||||||||||||
83
AMG GW&K Small Cap Value Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | ||||||||||||||||||||
For the six | period ended | |||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | ||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Class I | (unaudited) | 2020 | 2019 | 2018 | 201710 | |||||||||||||||
Net Asset Value, Beginning of Period |
$26.79 | $37.23 | $31.05 | $44.06 | $43.64 | |||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||
Net investment income3,4 |
0.08 | 0.14 | 0.13 | 0.06 | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
6.01 | 1.02 | 8.83 | (8.43 | ) | 3.37 | ||||||||||||||
Total income (loss) from investment operations |
6.09 | 1.16 | 8.96 | (8.37 | ) | 3.39 | ||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||
Net investment income |
| (0.15 | ) | (0.24 | ) | | | |||||||||||||
Net realized gain on investments |
| (11.45 | ) | (2.54 | ) | (4.64 | ) | (2.97 | ) | |||||||||||
Total distributions to shareholders |
| (11.60 | ) | (2.78 | ) | (4.64 | ) | (2.97 | ) | |||||||||||
Net Asset Value, End of Period |
$32.88 | $26.79 | $37.23 | $31.05 | $44.06 | |||||||||||||||
Total Return4,5 |
22.81 | %6 | 3.50 | % | 28.86 | % | (18.88 | )% | 7.73 | %6 | ||||||||||
Ratio of net expenses to average net assets7 |
0.93 | %8 | 0.99 | % | 1.01 | % | 1.01 | % | 1.13 | %8 | ||||||||||
Ratio of gross expenses to average net assets9 |
0.97 | %8 | 1.03 | % | 1.04 | % | 1.02 | % | 1.15 | %8 | ||||||||||
Ratio of net investment income to average net assets4 |
0.47 | %8 | 0.46 | % | 0.35 | % | 0.13 | % | 0.06 | %8 | ||||||||||
Portfolio turnover |
7 | %6 | 115 | % | 20 | % | 24 | % | 33 | % | ||||||||||
Net assets end of period (000s) omitted |
$83,580 | $83,003 | $122,323 | $306,757 | $362,723 | |||||||||||||||
84
AMG GW&K Small Cap Value Fund Financial Highlights For a share outstanding throughout each fiscal period |
For the fiscal | ||||||||||||||||||||
For the six | period ended | |||||||||||||||||||
months ended | For the fiscal years ended December 31, | December 31, | ||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Class Z | (unaudited) | 2020 | 2019 | 2018 | 201710 | |||||||||||||||
Net Asset Value, Beginning of Period |
$26.72 | $37.16 | $31.10 | $44.08 | $43.64 | |||||||||||||||
Income (loss) from Investment Operations: |
||||||||||||||||||||
Net investment income3,4 |
0.08 | 0.16 | 0.16 | 0.10 | 0.08 | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
6.01 | 1.02 | 8.84 | (8.44 | ) | 3.33 | ||||||||||||||
Total income (loss) from investment operations |
6.09 | 1.18 | 9.00 | (8.34 | ) | 3.41 | ||||||||||||||
Less Distributions to Shareholders from: |
||||||||||||||||||||
Net investment income |
| (0.17 | ) | (0.40 | ) | | | |||||||||||||
Net realized gain on investments |
| (11.45 | ) | (2.54 | ) | (4.64 | ) | (2.97 | ) | |||||||||||
Total distributions to shareholders |
| (11.62 | ) | (2.94 | ) | (4.64 | ) | (2.97 | ) | |||||||||||
Net Asset Value, End of Period |
$32.81 | $26.72 | $37.16 | $31.10 | $44.08 | |||||||||||||||
Total Return4,5 |
22.83 | %6 | 3.57 | % | 28.94 | % | (18.80 | )% | 7.78 | %6 | ||||||||||
Ratio of net expenses to average net assets7 |
0.88 | %8 | 0.92 | % | 0.92 | % | 0.92 | % | 0.98 | %8 | ||||||||||
Ratio of gross expenses to average net assets9 |
0.92 | %8 | 0.96 | % | 0.95 | % | 0.93 | % | 1.00 | %8 | ||||||||||
Ratio of net investment income to average net assets4 |
0.52 | %8 | 0.53 | % | 0.44 | % | 0.22 | % | 0.21 | %8 | ||||||||||
Portfolio turnover |
7 | %6 | 115 | % | 20 | % | 24 | % | 33 | % | ||||||||||
Net assets end of period (000s) omitted |
$3,949 | $10,481 | $11,815 | $16,969 | $9,929 | |||||||||||||||
1 | Effective February 27, 2017, Class S was renamed Class N. |
2 | Effective October 1, 2016, the Funds shares were reclassified and redesignated to Class S. |
3 | Per share numbers have been calculated using average shares. |
4 | Total returns and net investment income (loss) would have been lower had certain expenses not been offset. |
5 | The total return is calculated using the published Net Asset Value as of period end. |
6 | Not annualized. |
7 | Includes Reduction from broker recapture amounting to 0.02% for the six months ended June 30, 2021. |
8 | Annualized. |
9 | Excludes the impact of expense reimbursement or fee waivers and expense reductions such as brokerage credits, but includes expense repayments and non-reimbursable expenses, if any, such as interest, taxes, and extraordinary expenses. (See Note 1(c) and 2 in the Notes to Financial Statements.) |
10 | Commencement of operations was on February 27, 2017. |
85
Notes to Financial Statements (unaudited) June 30, 2021 |
86
Notes to Financial Statements (continued) |
87
Notes to Financial Statements (continued) |
88
Notes to Financial Statements (continued) |
g. CAPITAL STOCK
The Trusts Declaration of Trust authorizes for each Fund the issuance of an unlimited number of shares of beneficial interest, without par value. Each Fund records sales and repurchases of its capital stock on the trade date.
For the six months ended June 30, 2021 (unaudited) and the fiscal year ended December 31, 2020, the capital stock transactions by class for the Funds were as follows:
ESG Bond | Enhanced Core Bond ESG | |||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Class N: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
937,856 | $24,875,278 | 2,974,694 | $80,948,805 | 204,718 | $2,194,754 | 325,128 | $3,475,322 | ||||||||||||||||||||||||
Reinvestment of distributions |
1,524,093 | 38,725,071 | 712,467 | 19,290,277 | 9,315 | 99,554 | 20,814 | 219,293 | ||||||||||||||||||||||||
Cost of shares repurchased |
(3,533,011) | (92,355,097) | (6,734,473) | (180,090,308) | (129,758) | (1,386,819) | (352,412) | (3,703,576) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
(1,071,062) | $(28,754,748) | (3,047,312) | $(79,851,226) | 84,275 | $907,489 | (6,470) | $(8,961) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class I: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
2,258,532 | $60,004,450 | 5,277,165 | $142,427,000 | 890,536 | $9,545,711 | 1,930,056 | $20,740,872 | ||||||||||||||||||||||||
Reinvestment of distributions |
1,530,746 | 38,906,646 | 741,223 | 20,066,494 | 18,653 | 200,208 | 28,452 | 303,557 | ||||||||||||||||||||||||
Cost of shares repurchased |
(5,401,800) | (140,617,555) | (8,884,854) | (237,615,746) | (954,990) | (10,230,898) | (250,872) | (2,616,750) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
(1,612,522) | $(41,706,459) | (2,866,466) | $(75,122,252) | (45,801) | $(484,979) | 1,707,636 | $18,427,679 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class Z: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
| | | | 84,494 | $908,900 | 325,068 | $3,463,674 | ||||||||||||||||||||||||
Reinvestment of distributions |
| | | | 8,681 | 93,097 | 20,445 | 216,232 | ||||||||||||||||||||||||
Cost of shares repurchased |
| | | | (109,346) | (1,172,322) | (278,702) | (2,935,192) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
| | | | (16,171) | $(170,325) | 66,811 | $744,714 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Income | Municipal Bond | |||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Class N: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
92,436 | $2,070,292 | 122,058 | $2,754,401 | 349,045 | $4,326,667 | 841,918 | $10,312,713 | ||||||||||||||||||||||||
Reinvestment of distributions |
3,386 | 76,266 | 36,046 | 798,071 | 7,003 | 86,727 | 22,319 | 274,465 | ||||||||||||||||||||||||
Cost of shares repurchased |
(142,054) | (3,185,164) | (142,591) | (3,100,201) | (419,041) | (5,198,727) | (950,262) | (11,578,005) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
(46,232) | $(1,038,606) | 15,513 | $452,271 | (62,993) | $(785,333) | (86,025) | $(990,827) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class I:1 |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
466,936 | $10,454,632 | | | 18,658,726 | $232,816,480 | 50,063,425 | $614,578,625 | ||||||||||||||||||||||||
Reinvestment of distributions |
4,093 | 92,123 | | | 565,528 | 7,043,372 | 1,402,065 | 17,349,323 | ||||||||||||||||||||||||
Cost of shares repurchased |
(6,490) | (146,203) | | | (16,884,003) | (210,660,484) | (31,883,833) | (389,584,617) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase |
464,539 | $10,400,552 | | | 2,340,251 | $29,199,368 | 19,581,657 | $242,343,331 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89
Notes to Financial Statements (continued) |
Municipal Enhanced | Global Allocation | |||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Class N: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
1,213,180 | $13,005,776 | 1,891,900 | $19,211,900 | 187,100 | $3,732,574 | 359,114 | $6,076,127 | ||||||||||||||||||||||||
Reinvestment of distributions |
6,093 | 66,034 | 17,895 | 186,782 | 234 | 4,512 | 114,659 | 1,674,037 | ||||||||||||||||||||||||
Cost of shares repurchased |
(423,812) | (4,584,615) | (1,989,572) | (20,374,161) | (445,643) | (8,841,218) | (1,932,600) | (31,474,792) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
795,461 | $8,487,195 | (79,777) | $(975,479) | (258,309) | $(5,104,132) | (1,458,827) | $(23,724,628) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class I: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
5,688,224 | $59,643,464 | 11,477,762 | $114,640,533 | 296,317 | $5,841,328 | 2,038,932 | $33,784,181 | ||||||||||||||||||||||||
Reinvestment of distributions |
188,430 | 1,974,703 | 570,856 | 5,821,974 | 596 | 11,615 | 112,082 | 1,651,265 | ||||||||||||||||||||||||
Cost of shares repurchased |
(2,734,462) | (28,684,545) | (7,868,907) | (78,826,067) | (407,464) | (8,200,045) | (7,267,874) | (114,947,733) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
3,142,192 | $32,933,622 | 4,179,711 | $41,636,440 | (110,551) | $(2,347,102) | (5,116,860) | $(79,512,287) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class Z: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
| | 146 | $1,500 | 8,565 | $170,054 | 85,028 | $1,346,330 | ||||||||||||||||||||||||
Reinvestment of distributions |
146 | $1,520 | 455 | 4,635 | 139 | 2,727 | 14,496 | 214,292 | ||||||||||||||||||||||||
Cost of shares repurchased |
| | | | (17,037) | (346,289) | (395,703) | (6,255,591) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
146 | $1,520 | 601 | $6,135 | (8,333) | $(173,508) | (296,179) | $(4,694,969) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Core | Small/Mid Cap | |||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Class N: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
40,343 | $1,359,845 | 81,195 | $1,849,925 | 16,835 | $13,241,252 | 727 | $10,000 | ||||||||||||||||||||||||
Reinvestment of distributions |
| | 7,028 | 206,122 | | | | | ||||||||||||||||||||||||
Proceeds from sale of shares issued in connection with merger2 |
| | | | 3,848,331 | 66,278,653 | | | ||||||||||||||||||||||||
Cost of shares repurchased |
(30,981) | (1,041,445) | (191,533) | (4,505,002) | (199,953) | (3,623,909) | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
9,362 | $318,400 | (103,310) | $(2,448,955) | 3,665,213 | $75,895,996 | 727 | $10,000 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Class I: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
1,716,720 | $58,438,950 | 6,647,636 | $153,200,697 | 2,816,671 | $59,771,539 | 4,771,671 | $58,055,212 | ||||||||||||||||||||||||
Reinvestment of distributions |
| | 348,162 | 10,423,972 | | | 11,292 | 178,297 | ||||||||||||||||||||||||
Proceeds from sale of shares issued in connection with merger2 |
| | | | 792,895 | 13,678,626 | | | ||||||||||||||||||||||||
Cost of shares repurchased |
(1,919,362) | (66,071,433) | (4,112,470) | (96,834,817) | (582,606) | (10,474,387) | (2,334,832) | (26,093,366) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
(202,642) | $(7,632,483) | 2,883,328 | $66,789,852 | 3,026,960 | $62,975,778 | 2,448,131 | $32,140,143 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
Notes to Financial Statements (continued) |
Small Cap Core | Small/Mid Cap | |||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Class Z: |
||||||||||||||||||||||||||||||||
Proceeds from sale of shares |
1,716,007 | $60,892,794 | 222,490 | $5,627,757 | 2,611,799 | $33,770,672 | 740,790 | $9,664,314 | ||||||||||||||||||||||||
Reinvestment of distributions |
| | 104,205 | 3,120,958 | | | 11,828 | 187,001 | ||||||||||||||||||||||||
Proceeds from sale of shares issued in connection with merger2 |
| | | | 780,901 | 13,486,545 | | | ||||||||||||||||||||||||
Cost of shares repurchased |
(2,195,722) | (77,955,942) | (356,478) | (8,924,122) | (639,402) | (37,227,449) | (1,583,660) | (19,896,793) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) |
(479,715) | $(17,063,148) | (29,783) | $(175,407) | 2,753,298 | $10,029,768 | (831,042) | $(10,045,478) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Value | ||||||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class N: |
||||||||||||||||
Proceeds from sale of shares |
427,514 | $13,251,941 | 874,807 | $25,658,252 | ||||||||||||
Reinvestment of distributions |
| | 2,953,511 | 77,884,081 | ||||||||||||
Cost of shares repurchased |
(2,790,395) | (88,135,664) | (4,383,180) | (125,831,759) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net decrease |
(2,362,881) | $(74,883,723) | (554,862) | $(22,289,426) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class I: |
||||||||||||||||
Proceeds from sale of shares |
220,880 | $6,951,656 | 669,037 | $19,414,296 | ||||||||||||
Reinvestment of distributions |
| | 1,212,187 | 32,050,234 | ||||||||||||
Cost of shares repurchased |
(777,918) | (24,048,834) | (2,068,313) | (58,336,031) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net decrease |
(557,038) | $(17,097,178) | (187,089) | $(6,871,501) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class Z: |
||||||||||||||||
Proceeds from sale of shares |
20,284 | $620,894 | 34,276 | $1,038,772 | ||||||||||||
Reinvestment of distributions |
| | 120,519 | 3,178,096 | ||||||||||||
Cost of shares repurchased |
(292,143) | (8,826,211) | (80,517) | (2,507,706) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(271,859) | $(8,205,317) | 74,278 | $1,709,162 | ||||||||||||
|
|
|
|
|
|
|
|
1 | Commencement of operations was March 15, 2021 for Class I of High Income. |
2 | See Note 12 of the Notes to Financial Statements. |
At June 30, 2021, certain unaffiliated shareholders of record, individually or collectively held greater than 10% of the net assets of the Funds as follows: Small/Mid Cap - one owns 16% and Small Cap Value- one owns 12%. Transactions by these shareholders may have a material impact on the Fund.
91
Notes to Financial Statements (continued) |
92
Notes to Financial Statements (continued) |
93
Notes to Financial Statements (continued) |
94
Notes to Financial Statements (continued) |
95
Notes to Financial Statements (continued) |
11. MASTER NETTING AGREEMENTS
The Funds may enter into master netting agreements with their counterparties for the securities lending program and Repurchase Agreements and derivatives, which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate net exposure to the defaulting party or request additional collateral. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting agreements in the Statement of Assets and Liabilities. For securities lending transactions, see Note 4.
The following table is a summary of the Funds open Repurchase Agreements that are subject to a master netting agreement as of June 30, 2021:
Gross Amount Not Offset in the | ||||||||||||||||||||
Statement of Assets and Liabilities | ||||||||||||||||||||
Fund | Gross Amounts of Assets Presented in the Statement of Assets and Liabilities |
Offset Amount |
Net Asset Balance |
Collateral Received |
Net Amount | |||||||||||||||
ESG Bond |
||||||||||||||||||||
Bethesda Securities LLC |
$1,424,332 | | $1,424,332 | $1,424,332 | | |||||||||||||||
Cantor Fitzgerald Securities, Inc. |
6,280,000 | | 6,280,000 | 6,280,000 | | |||||||||||||||
Citadel Securities LLC |
4,020,899 | | 4,020,899 | 4,020,899 | | |||||||||||||||
JVB Financial Group LLC |
2,331,568 | | 2,331,568 | 2,331,568 | | |||||||||||||||
Mirae Asset Securities USA, Inc. |
2,962,254 | | 2,962,254 | 2,962,254 | | |||||||||||||||
RBC Dominion Securities, Inc. |
2,882,530 | | 2,882,530 | 2,882,530 | | |||||||||||||||
State of Wisconsin Investment Board |
4,620,735 | | 4,620,735 | 4,620,735 | | |||||||||||||||
StoneX Financial, Inc. |
1,919,577 | | 1,919,577 | 1,919,577 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$26,441,895 | | $26,441,895 | $26,441,895 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Enhanced Core Bond ESG |
||||||||||||||||||||
Daiwa Capital Markets America |
$621,125 | | $621,125 | $621,125 | | |||||||||||||||
RBC Dominion Securities, Inc. |
1,000,000 | | 1,000,000 | 1,000,000 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$1,621,125 | | $1,621,125 | $1,621,125 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96
Notes to Financial Statements (continued) |
Gross Amount Not Offset in the | ||||||||||||||||||||
Statement of Assets and Liabilities | ||||||||||||||||||||
Gross Amounts of | ||||||||||||||||||||
Assets Presented in | Net | |||||||||||||||||||
the Statement of | Offset | Asset | Collateral | Net | ||||||||||||||||
Fund | Assets and Liabilities | Amount | Balance | Received | Amount | |||||||||||||||
High Income |
||||||||||||||||||||
Citigroup Global Markets, Inc. |
$570,984 | | $570,984 | $570,984 | | |||||||||||||||
Daiwa Capital Markets America |
1,000,000 | | 1,000,000 | 1,000,000 | | |||||||||||||||
RBC Dominion Securities, Inc. |
1,000,000 | | 1,000,000 | 1,000,000 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$2,570,984 | | $2,570,984 | $2,570,984 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Global Allocation |
||||||||||||||||||||
Deutsche Bank Securities, Inc. |
$202,439 | | $202,439 | $202,439 | | |||||||||||||||
RBC Dominion Securities, Inc. |
1,000,000 | | 1,000,000 | 1,000,000 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$1,202,439 | | $1,202,439 | $1,202,439 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Small Cap Value |
||||||||||||||||||||
TD Securities LLC |
$18,254 | | $18,254 | $18,254 | |
97
|
PROXY VOTE
A special meeting of the shareholders of AMG GW&K ESG Bond Fund (the Fund) was held on June 11, 2021, to vote on proposals including to approve a new subadvisory agreement between AMG Funds LLC (the Investment Manager) and GW&K Investment Management, LLC (GW&K) with respect to the Fund. The proposals and results of the votes are summarized below.
Number of Eligible Shareholders | ||||||||||||||||||||
Proposal 1 | For | Against | Abstain | Uninstructed | ||||||||||||||||
Approval of a new subadvisory agreement between the Investment Manager and GW&K with respect to the Fund. |
17,508,953 | 807,301 | 1,879,881 | 555,343 | ||||||||||||||||
% of Shares Present |
84.37% | 3.89% | 9.06% | 2.68% | ||||||||||||||||
% of Outstanding Shares |
43.10% | 1.99% | 4.63% | 1.36% | ||||||||||||||||
Number of Eligible Shareholders | ||||||||||||||||||||
Proposal 2 | For | Against | Abstain | Uninstructed | ||||||||||||||||
Approval of a modified manager-of-managers structure for the Fund that would permit the Investment Manager to enter into and materially amend subadvisory agreements with unaffiliated and affiliated subadvisers without obtaining shareholder approval and would also permit the Fund to disclose fees paid to subadvisers on an aggregate, rather than individual, basis. |
16,662,130 | 1,553,105 | 1,980,900 | 555,343 | ||||||||||||||||
% of Shares Present |
80.29% | 7.48% | 9.55% | 2.68% | ||||||||||||||||
% of Outstanding Shares |
41.01% | 3.82% | 4.88% | 1.37% |
Fund Totals: | Shares | ||||
Record Total |
40,625,208 | ||||
Shares Voted |
20,751,478 | ||||
Percent Present |
51.08% |
A special meeting of the shareholders of AMG GW&K High Income Fund (the Fund) was held on February 25, 2021, to vote on proposals including to approve a new subadvisory agreement between AMG Funds LLC (the Investment Manager) and GW&K Investment Management, LLC (GW&K) with respect to the Fund. The proposals and results of the votes are summarized below.
Number of Eligible Shareholders | |||||||||||||||
Proposal 1 | For | Against | Abstain | ||||||||||||
Approval of a new subadvisory agreement between the Investment Manager and GW&K with respect to the Fund. |
190,732 | 24,164 | 22,316 | ||||||||||||
% of Shares Present |
80.40% | 10.19% | 9.41% | ||||||||||||
% of Outstanding Shares |
40.75% | 5.16% | 4.77% | ||||||||||||
Number of Eligible Shareholders | |||||||||||||||
Proposal 2 | For | Against | Abstain | ||||||||||||
Approval of a modified manager-of-managers structure for the Fund that would permit the Investment Manager to enter into and materially amend subadvisory agreements with unaffiliated and affiliated subadvisers without obtaining shareholder approval and would also permit the Fund to disclose fees paid to subadvisers on an aggregate, rather than individual, basis. |
160,306 | 55,297 | 21,609 | ||||||||||||
% of Shares Present |
67.58% | 23.31% | 9.11% | ||||||||||||
% of Outstanding Shares |
34.25% | 11.81% | 4.62% |
98
Other Information (continued) |
Number of Eligible Shareholders | |||||||||||||||
Proposal 3 | For | Against | Abstain | ||||||||||||
Amending the Funds fundamental investment restriction with respect to concentrating investments in a particular industry. |
167,842 | 48,232 | 21,138 | ||||||||||||
% of Shares Present |
70.76% | 20.33% | 8.91% | ||||||||||||
% of Outstanding Shares |
35.86% | 10.30% | 4.52% |
Fund Totals: | Shares | ||||
Record Total |
468,032 | ||||
Shares Voted |
237,212 | ||||
Percent Present |
50.68% |
A special meeting of the shareholders of AMG GW&K Small Cap Value Fund (the Fund) was held on April 8, 2021, to vote on proposals including to approve a new subadvisory agreement between AMG Funds LLC (the Investment Manager) and GW&K Investment Management, LLC (GW&K) with respect to the Fund. The proposals and results of the votes are summarized below.
Number of Eligible Shareholders | |||||||||||||||
Proposal 1 | For | Against | Abstain | ||||||||||||
Approval of a new subadvisory agreement between the Investment Manager and GW&K with respect to the Fund |
5,121,031 | 1,169,677 | 352,535 | ||||||||||||
% of Shares Present |
77.08% | 17.61% | 5.31% | ||||||||||||
% of Outstanding Shares |
38.69% | 8.84% | 2.66% | ||||||||||||
Number of Eligible Shareholders | |||||||||||||||
Proposal 2 | For | Against | Abstain | ||||||||||||
Approval of a manager-of-managers structure for the Fund that would permit the Investment Manager to enter into and materially amend subadvisory agreements with unaffiliated and affiliated subadvisers without obtaining shareholder approval and would also permit the Fund to disclose fees paid to subadvisers on an aggregate, rather than individual, basis. |
4,669,503 | 1,397,021 | 576,719 | ||||||||||||
% of Shares Present |
70.29% | 21.03% | 8.68% | ||||||||||||
% of Outstanding Shares |
35.28% | 10.55% | 4.36% |
Fund Totals: | Shares | ||||
Record Total |
13,236,113 | ||||
Shares Voted |
6,643,243 | ||||
Percent Present |
50.19% |
99
Other Information (continued) |
A special meeting of the shareholders of AMG GW&K Mid Cap Fund (the Mid Cap Fund) was held on March 5, 2021, to vote on proposals including to merge into AMG GW&K Small/Mid Cap Fund (the Fund) and to approve a new subadvisory agreement between AMG Funds LLC (the Investment Manager) and GW&K Investment Management, LLC (GW&K) with respect to the Fund. The proposals and results of the votes are summarized below.
Number of Eligible Shareholders | ||||||||||||||||||||
Proposal 1 | For | Against | Abstain | Uninstructed | ||||||||||||||||
Approval of an Agreement and Plan of Reorganization, which provides for the acquisition of the assets and assumption of the liabilities of the Mid Cap Fund in exchange for shares of the Fund, and the liquidation and termination of the Mid Cap Fund |
1,637,124 | 97,931 | 297,412 | 78,257 | ||||||||||||||||
% of Shares Present |
77.56% | 4.64% | 14.09% | 3.71% | ||||||||||||||||
% of Outstanding Shares |
40.91% | 2.45% | 7.43% | 1.95% | ||||||||||||||||
Number of Eligible Shareholders | ||||||||||||||||||||
Proposal 2 | For | Against | Abstain | Uninstructed | ||||||||||||||||
Approval for the Mid Cap Fund a subadvisory agreement between AMG Funds LLC, the current investment manager to the Mid Cap Fund, and GW&K Investment Management, LLC, the current interim subadviser to the Mid Cap Fund. |
1,624,409 | 100,354 | 307,704 | 78,257 | ||||||||||||||||
% of Shares Present |
76.96% | 4.75% | 14.58% | 3.71% | ||||||||||||||||
% of Outstanding Shares |
40.59% | 2.51% | 7.69% | 1.95% |
Fund Totals: | Shares | ||||
Record Total |
4,002,002 | ||||
Shares Voted |
2,110,724 | ||||
Percent Present |
52.74% |
100
Annual Renewal of Investment Management and Subadvisory Agreements |
AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, AMG GW&K Global Allocation Fund, AMG GW&K ESG Bond Fund (formerly AMG Managers Loomis Sayles Bond Fund), AMG GW&K High Income Fund (formerly AMG Managers Global Income Opportunity Fund), and AMG GW&K Small Cap Value Fund (formerly AMG Managers Skyline Special Equities Fund): Approval of Investment Management and Subadvisory Agreements on June 24, 2021
At a meeting held via telephone and video conference on June 24, 2021,1 the Board of Trustees (the Board or the Trustees) of each of AMG Funds, AMG Funds II, and AMG Funds III (each, a Trust and collectively, the Trusts), and separately a majority of the Trustees who are not interested persons of the Trusts (the Independent Trustees), approved (i) the Investment Management Agreement, as amended pursuant to letter agreements at any time prior to the date of the meeting, with AMG Funds LLC (the Investment Manager) and AMG Funds for each of AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund and AMG GW&K Small Cap Value Fund (formerly AMG Managers Skyline Special Equities Fund, and separately each of Amendment No. 1 thereto dated July 1, 2015, and Amendment No. 2 thereto dated October 1, 2016; the Investment Management Agreement, as amended pursuant to letter agreements at any time prior to the date of the meeting, with the Investment Manager and AMG Funds II for AMG GW&K Enhanced Core Bond ESG Fund and AMG GW&K Global Allocation Fund, and separately each of Amendment No. 1 thereto, Amendment No. 2 thereto dated July 1, 2015, and Amendment No. 3 thereto dated October 1, 2016; and the Fund Management Agreement, as amended pursuant to letter agreements at any time prior to the date of the meeting, with the Investment Manager and AMG Funds III for AMG GW&K ESG Bond Fund (formerly AMG Managers Loomis Sayles Bond Fund) and AMG GW&K High Income Fund (formerly AMG Managers Global Income Opportunity Fund), and separately each of Amendment No. 1 thereto dated July 1, 2015, and Amendment No. 2 thereto dated October 1, 2016 (collectively, the Investment Management Agreements); and (ii) the Subadvisory Agreements, as amended at any time prior to the date of the meeting (collectively, the Subadvisory Agreements), with the Subadviser for |
each of AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund2. The Independent Trustees were separately represented by independent legal counsel in connection with their consideration of the approval of these agreements. In considering the Investment Management Agreements and the Subadvisory Agreements, the Trustees reviewed a variety of materials relating to AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, AMG GW&K Global Allocation Fund, AMG GW&K ESG Bond Fund, AMG GW&K High Income Fund, and AMG GW&K Small Cap Value Fund (each, a Fund, and collectively, the Funds), the Investment Manager and, with respect to AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund, the Subadviser, including the nature, extent and quality of services, comparative performance, fee and expense information for an appropriate peer group of similar mutual funds for each Fund (each, a Peer Group), performance information for the relevant benchmark index for each Fund (each, a Fund Benchmark), other relevant matters, and other information provided to them on a periodic basis throughout the year. Prior to voting, the Independent Trustees: (a) reviewed the foregoing information with their independent legal counsel; (b) received materials from their independent legal counsel discussing the legal standards applicable to their consideration of the Investment Management Agreements and Subadvisory Agreements; and (c) met with their independent legal counsel in private sessions at which no representatives of management were present.
NATURE, EXTENT AND QUALITY OF SERVICES.
In considering the nature, extent and quality of the services provided by the Investment Manager, the Trustees reviewed information relating to the Investment Managers operations and personnel. Among other things, the Investment Manager provided financial information, information about its supervisory and professional staff and descriptions of its organizational and management structure. The Trustees also took into account information provided periodically throughout the previous year by the Investment Manager in Board meetings relating to |
the performance of its duties with respect to the Funds and the Trustees knowledge of the Investment Managers management and the quality of the performance of the Investment Managers duties under the Investment Management Agreements and Administration Agreement. In the course of their deliberations regarding the Investment Manager, the Trustees evaluated, among other things: (a) the extent and quality of the Investment Managers oversight of the operation and management of the Funds; (b) the quality of the Investment Managers oversight of the performance by the Subadviser of its portfolio management duties; (c) the Investment Managers ability to supervise the Funds other service providers; and (d) the Investment Managers compliance program. The Trustees also took into account that, in performing its functions under the Investment Management Agreements and supervising the Subadviser, the Investment Manager: performs periodic detailed analyses and reviews of the performance by the Subadviser of its obligations to each Fund, including without limitation, analysis and review of portfolio and other compliance matters and review of the Subadvisers investment performance with respect to each Fund; prepares and presents periodic reports to the Board regarding the investment performance of the Subadviser and other information regarding the Subadviser, at such times and in such forms as the Board may reasonably request; reviews and considers any changes in the personnel of the Subadviser responsible for performing the Subadvisers obligations and makes appropriate reports to the Board; reviews and considers any changes in the ownership or senior management of the Subadviser and makes appropriate reports to the Board; performs periodic in-person, telephonic or videoconference diligence meetings, including with respect to compliance matters, with representatives of the Subadviser; assists the Board and management of the Trusts in developing and reviewing information with respect to the initial approval of each Subadvisory Agreement and the Small Cap Value Subadvisory Agreement, the High Income Subadvisory Agreement and the ESG Bond Subadvisory Agreement, and annual consideration of each Subadvisory Agreement and the Small Cap Value Subadvisory Agreement, the High Income Subadvisory Agreement and the ESG Bond Subadvisory Agreement thereafter; prepares recommendations with respect to the continued retention of the Subadviser or the replacement of the Subadviser, including at the request of the Board; identifies potential successors to, or replacements of, the Subadviser or potential additional subadvisers, including performing appropriate due diligence, and |
101
Annual Renewal of Investment Management and Subadvisory Agreements (continued) |
developing and presenting to the Board a recommendation as to any such successor, replacement, or additional subadviser, including at the request of the Board; designates and compensates from its own resources such personnel as the Investment Manager may consider necessary or appropriate to the performance of its services; and performs such other review and reporting functions as the Board shall reasonably request consistent with the Investment Management Agreements and applicable law. The Trustees noted the affiliation of the Subadviser with the Investment Manager, noting any potential conflicts of interest. The Trustees also took into account the financial condition of the Investment Manager with respect to its ability to provide the services required under the Investment Management Agreements and the Investment Managers undertaking to maintain contractual expense limitations for the Funds. The Trustees also considered the Investment Managers risk management processes.
For AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund, the Trustees also reviewed information relating to the Subadvisers operations and personnel and the investment philosophy, strategies and techniques used in managing each Fund. Among other things, the Trustees reviewed information on portfolio management and other professional staff, information regarding the Subadvisers organizational and management structure and the Subadvisers brokerage policies and practices. The Trustees considered specific information provided regarding the experience of the individuals at the Subadviser with portfolio management responsibility for each Fund, including the information set forth in each Funds prospectus and statement of additional information. In the course of their deliberations, the Trustees evaluated, among other things: (a) the services rendered by the Subadviser in the past; (b) the qualifications and experience of the Subadvisers personnel; and (c) the Subadvisers compliance program. The Trustees also took into account the financial condition of the Subadviser with respect to its ability to provide the services required under each Subadvisory Agreement. The Trustees also considered the Subadvisers risk management processes.
PERFORMANCE.
The Board considered each Funds net performance during relevant time periods as compared to the Funds Peer Group and Fund Benchmark, considered |
the gross performance of each of AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, and AMG GW&K Enhanced Core Bond ESG Fund as compared to the Subadvisers relevant performance composite that utilizes the same investment strategy and approach, and noted that the Board reviews on a quarterly basis detailed information about both a Funds performance results and portfolio composition, as well as the Subadvisers investment philosophy, strategies and techniques used in managing each Fund. The Board was mindful of the Investment Managers expertise, resources, and attention to monitoring the Subadvisers performance, investment style and risk-adjusted performance with respect to the Funds and its discussions with the management of the Funds subadvisers during the period regarding the factors that contributed to the performance of the Funds.
With respect to AMG GW&K Small Cap Core Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has the earliest inception date of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was below, above, above, and above, respectively, the median performance of the Peer Group and below, below, below, and above the performance of the Fund Benchmark, the Russell 2000 Index. The Trustees took into account managements discussion of the Funds performance, including the fact that Class N shares of the Fund ranked in the top decile relative to its Peer Group for the 10-year period and the top quartile relative to its Peer Group for the 3-year and 5-year periods. The Trustees concluded that the Funds overall performance has been satisfactory in light of the Funds investment objective, strategies and policies.
With respect to AMG GW&K Small/Mid Cap Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class I shares (which share class has the earliest inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, and 5-year periods ended March 31, 2021 and for the period from the Funds inception on June 30, 2015 through March 31, 2021 was above the median performance of the Peer Group and below, above, above, and below, respectively, the performance of the Fund |
Benchmark, the Russell 2500 Index. The Trustees took into account managements discussion of the Funds performance, including the fact that Class I shares of the Fund ranked in the top decile relative to its Peer Group for the 3-year period and in the top quintile relative to its Peer Group for the 5-year period. The Trustees also took into account the fact that the Fund made changes to its principal investment strategy in 2017. The Trustees concluded that the Funds overall performance has been satisfactory.
With respect to AMG GW&K Municipal Enhanced Yield Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class I shares (which share class has the earliest inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was below, above, above, and above, respectively, the median performance of the Peer Group and below, above, below, and above, respectively, the performance of the Fund Benchmark, the Bloomberg Barclays U.S. Municipal Bond BAA Index. The Trustees took into account managements discussion of the Funds performance, including the fact that Class I shares of the Fund ranked in the top quintile relative to its Peer Group for the 3-year period, in the top quartile relative to its Peer Group for the 10-year period, and in the top third relative to its Peer Group for the 5-year period. The Trustees concluded that the Funds overall performance has been satisfactory.
With respect to AMG GW&K Municipal Bond Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class I shares (which share class has the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year, and 10-year periods ended March 31, 2021 was below, above, above, and above, respectively, the median performance of the Peer Group and below the performance of the Fund Benchmark, the Bloomberg Barclays 10-Year Municipal Bond Index. The Trustees took into account managements discussion of the Funds performance, including the reasons for the Funds underperformance relative to the Fund Benchmark. The Trustees also noted that Class I shares of the Fund ranked in the top quartile relative to its Peer Group for the 3-year and 10-year periods. The Trustees concluded that the Funds overall performance has been satisfactory in light of the Funds investment objective, strategies and policies. |
102
Annual Renewal of Investment Management and Subadvisory Agreements (continued) |
With respect to AMG GW&K Enhanced Core Bond ESG Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has one of the earliest inception dates and the largest amount of assets of all the share classes of the Fund with that inception date) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was above, above, below, and below, respectively, the median performance of the Peer Group and above the performance of the Fund Benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. The Trustees took into account managements discussion of the Funds performance, including the reasons for the Funds outperformance relative to the Fund Benchmark. The Trustees also noted that Class N shares of the Fund ranked in the top quintile relative to its Peer Group for the 3-year period. The Trustees also took into account the fact that the Fund transitioned to include an ESG strategy in 2019. The Trustees concluded that the Funds overall performance has been satisfactory.
With respect to AMG GW&K Global Allocation Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has one of the earliest inception dates and the largest amount of assets of all the share classes of the Fund with that inception date) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was above the median performance of the Peer Group and above the performance of the Fund Benchmark, a Composite Index (60% MSCI ACWI Index and 40% Bloomberg Barclays Global Aggregate Bond Index). The Trustees took into account managements discussion of the Funds performance, including the reasons for the Funds outperformance relative to the Peer Group and the Fund Benchmark. The Trustees also noted that Class N shares of the Fund ranked in the top decile relative to its Peer Group for the 3-year, 5-year, and 10-year periods and in the top quartile relative to its Peer Group for the 1-year period. The Trustees also took into account the fact that the Funds subadviser, investment strategy, and Fund Benchmark changed effective April 17, 2020, and that the performance information prior to that date reflected that of the Funds prior subadviser and investment strategy. The Trustees concluded that the Funds overall performance has been satisfactory.
With respect to AMG GW&K ESG Bond Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has the earliest |
inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was above, below, above, and above, respectively, the median performance of the Peer Group and above, below, above, and above, respectively, the performance of the Fund Benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. The Trustees took into account managements discussion of the Funds performance, including the fact that Class N shares of the Fund ranked in the top quintile relative to its Peer Group for the 1-year period and in the top quartile relative to its Peer Group for the 5-year and 10-year periods. The Trustees also took into account the fact that the Funds subadviser, investment strategy, and Fund Benchmark changed effective March 19, 2021, and that the performance information reflected that of the Funds prior subadviser and investment strategy. The Trustees concluded that the Funds overall performance has been satisfactory.
With respect to AMG GW&K High Income Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has the earliest inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was below the median performance of the Peer Group and below the performance of the Fund Benchmark, the Bloomberg Barclays U.S. High Yield 1-5 Year Ba Index. The Trustees took into account managements discussion of the Funds performance, including the reasons for the Funds underperformance. The Trustees also took into account the fact that the Funds subadviser, investment strategy, and Fund Benchmark changed effective December 4, 2020, and that the performance information prior to that date reflected that of the Funds prior subadviser and investment strategy. The Trustees concluded that the Funds overall performance is being addressed.
With respect to AMG GW&K Small Cap Value Fund, among other information relating to the Funds performance, the Trustees noted that the Funds performance for Class N shares (which share class has the earliest inception date and the largest amount of assets of all the share classes of the Fund) for the 1-year, 3-year, 5-year and 10-year periods ended March 31, 2021 was above, below, below, and above, respectively, the median performance of the Peer Group and above, below, below and above, respectively, the performance of the Fund Benchmark, the Russell 2000 Value Index. The Trustees took into account managements discussion of the Funds performance, noting that |
Class N shares of the Fund outperformed the median of its Peer Group for the 1-year period and ranked in the top quintile relative to its Peer Group for the 10-year period. The Trustees also took into account the fact that the Funds subadviser and investment strategy changed effective December 4, 2020, and that the performance information prior to that date reflected that of the Funds prior subadviser and investment strategy. The Trustees concluded that the Funds performance is being addressed.
ADVISORY AND SUBADVISORY FEES; FUND EXPENSES; PROFITABILITY; AND ECONOMIES OF SCALE
In considering the reasonableness of the advisory fee payable to the Investment Manager, the Trustees reviewed information provided by the Investment Manager at the June 24, 2021 and prior meetings setting forth all revenues and other benefits, both direct and indirect (including any so-called fallout benefits such as reputational value derived from the Investment Manager serving as Investment Manager to a Fund), received by the Investment Manager and its affiliates attributable to managing each Fund and all the mutual funds in the AMG Funds Family of Funds; the cost of providing such services; the significant risks undertaken as Investment Manager and sponsor of the Funds, including investment, operational, enterprise, entrepreneurial, litigation, regulatory and compliance risks; and the resulting profitability to the Investment Manager and its affiliates from these relationships. The Trustees also considered the changes to the management, subadvisory, and shareholder servicing fee rates and the changes to the expense caps that were implemented during the past year for AMG GW&K Small/Mid Cap Fund, AMG GW&K ESG Bond Fund, AMG GW&K High Income Fund, and AMG GW&K Small Cap Value Fund. The Trustees also considered the amount of the advisory fee retained by the Investment Manager after payment of the subadvisory fee with respect to each Fund. The Trustees also noted payments made or to be made from the Subadviser to the Investment Manager, and other payments made or to be made from the Investment Manager to the Subadviser. The Trustees also considered managements discussion of the current asset levels of the Funds, and the impact on profitability of both the current asset levels and any future growth of assets of the Funds.
In considering the cost of services to be provided by the Investment Manager under each Investment Management Agreement and the profitability to the Investment Manager of its relationship with each Fund, the Trustees noted the undertaking by the Investment Manager to maintain contractual |
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expense limitations for the Funds. The Board also took into account managements discussion of the advisory fee structure, and the services the Investment Manager provides in performing its functions under each Investment Management Agreement and supervising the Subadviser. Based on the foregoing, the Trustees concluded that the profitability to the Investment Manager is reasonable and that the Investment Manager is not realizing material benefits from economies of scale that would warrant adjustments to the advisory fee at this time. Also with respect to economies of scale, the Trustees noted that as each Funds assets increase over time, the Fund may realize other economies of scale to the extent the increase in assets is proportionally greater than the increase in certain other expenses.
For each of AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund, in considering the reasonableness of the subadvisory fees payable by the Investment Manager to the Subadviser, the Trustees reviewed information regarding the cost to the Subadviser of providing subadvisory services to each Fund and the resulting profitability from these relationships. The Trustees noted that, because the Subadviser is an affiliate of the Investment Manager, a portion of the Subadvisers revenues or profits might be shared directly or indirectly with the Investment Manager. The Trustees also noted that the subadvisory fees are paid by the Investment Manager out of its advisory fee. The Board also took into account managements discussion of the subadvisory fee structure, and the services the Subadviser provides in performing its functions under each Subadvisory Agreement. Based on the foregoing, the Trustees concluded that the profitability to the Subadviser is reasonable and that the Subadviser is not realizing material benefits from economies of scale that would warrant adjustments to the subadvisory fees at this time. Also with respect to economies of scale, the Trustees noted that as a Funds assets increase over time, the Fund may realize other economies of scale to the extent the increase in assets is proportionally greater than the increase in certain other expenses.
With respect to AMG GW&K Small Cap Core Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were lower and higher, respectively, than the average for |
the Funds Peer Group. The Trustees took into account the fact that the Investment Manager has contractually agreed, through May 1, 2022, to limit the Funds net annual operating expenses (subject to certain excluded expenses) to 0.90%. The Trustees also took into account managements discussion of the Funds expenses. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K Small/Mid Cap Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares of the Fund as of March 31, 2021 were lower and higher, respectively, than the average for the Funds Peer Group. The Trustees took into account the fact that, effective October 8, 2020, the Investment Manager has contractually agreed, through May 1, 2022, to lower the Funds contractual expense limitation from 0.85% to 0.82% of the Funds net annual operating expenses (subject to certain excluded expenses). The Trustees also noted that, effective October 8, 2020, the Funds management fee rate was reduced. The Trustees also took into account managements discussion of the Funds expenses and competitiveness with comparably sized funds and select competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K Municipal Enhanced Yield Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares of the Fund as of March 31, 2021 were higher and lower, respectively, than the average for the Funds Peer Group. The Trustees took into account the fact that the Investment Manager has contractually agreed, through May 1, 2022, to limit the Funds net annual operating expenses (subject to certain excluded expenses) to 0.59%. The Board also took into account managements discussion of the Funds expenses and competitiveness with comparably sized funds and select competitors. The |
Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K Municipal Bond Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares of the Fund as of March 31, 2021 were both lower than the average for the Funds Peer Group. The Trustees took into account the fact that the Investment Manager has contractually agreed, through May 1, 2022, to limit the Funds net annual operating expenses (subject to certain excluded expenses) to 0.34%. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K Enhanced Core Bond ESG Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were both higher than the average for the Peer Group. The Trustees took into account the fact that the Investment Manager has contractually agreed, through May 1, 2022, to limit the Funds net annual operating expenses (subject to certain excluded expenses) to 0.48%. The Trustees also took into account managements discussion of the Funds expenses and competitiveness with comparably sized funds and select competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K Global Allocation Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense |
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waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were higher and lower, respectively, than the average for the Peer Group. The Trustees took into account the fact that the Investment Manager has contractually agreed, through May 1, 2022, to limit the Funds net annual operating expenses (subject to certain excluded expenses) to 0.81%. The Trustees also took into account managements discussion of the Funds expenses, including fees and expenses relative to comparably sized funds and key competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager and the Subadviser (which is an affiliate of the Investment Manager), the foregoing expense limitation and the considerations noted above with respect to the Investment Manager and the Subadviser, the Funds advisory and subadvisory fees are reasonable.
With respect to AMG GW&K ESG Bond Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were lower and higher, respectively, than the average for the Peer Group. The Trustees took into account the fact that, effective June 11, 2021, the Investment Manager has contractually agreed, through May 1, 2023, to lower the Funds contractual expense limitation from 0.46% to 0.43% of the Funds net annual operating expenses (subject to certain excluded expenses). The Trustees also noted that, effective June 11, 2021, the Funds management fee rate was reduced. The Trustees also took into account managements discussion of the Funds expenses, including fees and expenses relative to comparably sized funds and key competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager, the foregoing expense limitation and the considerations noted above with respect to the Investment Manager, the Funds advisory fees are reasonable.
With respect to AMG GW&K High Income Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class N shares of the Fund as of March 31, 2021 were lower and higher, respectively, than the average for the Peer Group. The Trustees took into account the fact that, effective December 4, 2020, the Investment Manager has
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contractually agreed, through May 1, 2022, to lower the Funds contractual expense limitation from 0.89% to 0.59% of the Funds net annual operating expenses (subject to certain excluded expenses). The Trustees also noted that, effective December 4, 2020, the Funds management fee rate was reduced. The Board took into account managements discussion of the Funds expenses and the current size of the Fund, as well as its competitiveness with comparably sized funds and select competitors. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager, the foregoing expense limitation and the considerations noted above with respect to the Investment Manager, the Funds advisory fees are reasonable.
With respect to AMG GW&K Small Cap Value Fund, the Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the primary focus of the Funds distribution) of the Fund as of March 31, 2021 were lower and higher, respectively, than the average for the Peer Group. The Trustees took into account the fact that, effective December 4, 2020, the Investment Manager has contractually agreed, through May 1, 2022, to lower the Funds contractual expense limitation from 0.92% to 0.90% of the Funds net annual operating expenses (subject to certain excluded expenses). The Trustees also noted that, effective December 4, 2020, the Funds management fee rate was reduced. The Trustees also took into account managements discussion of the Funds expenses. The Trustees concluded that, in light of the nature, extent and quality of the services provided by the Investment Manager, the foregoing expense limitation and the considerations noted above with respect to the Investment Manager, the Funds advisory fees are reasonable.
With respect to AMG GW&K ESG Bond Fund, AMG GW&K High Income Fund and AMG GW&K Small Cap Value Fund, the Trustees also considered information provided by the Investment Manager throughout the previous year related to the benefits of the strategic repositioning of the AMG Funds complex for greater alignment with Affiliated Managers Group, Inc. (AMG), in which each fund that was not previously subadvised by an affiliate of AMG (each affiliate of AMG, an Affiliate and collectively, Affiliates) was transitioned to an AMG Affiliate subadviser. The Trustees considered that the strategic repositioning was expected to create value for the Funds, the other funds in the AMG Funds complex and their shareholders through enhanced resources and
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competitive fee levels. The Trustees noted the expectations that the changes would result in bringing the full range of AMGs resources to bear on the growth and success of the AMG Funds, streamlining the lineup of funds in the AMG Funds complex and reducing the number of subadvisers in the AMG Funds complex, significantly reducing strategy overlap and providing more differentiated investment solutions for the AMG Funds complex that are otherwise not available to U.S. retail investors. The Trustees further considered the expectation that the repositioning would bring AMGs strong partnerships in support of the Funds and the AMG Funds complex as a whole and enable AMG Funds to bring the best capabilities of AMGs Affiliates to the Funds and the rest of the AMG Funds complex. The Trustees noted that AMGs relationship with its Affiliates will also allow the Funds to have greater insight into the Affiliates compliance and business platform than is generally possible with third party subadvisers, aiding the ongoing monitoring of subadvisers.
* * * *
After consideration of the foregoing, the Trustees also reached the following conclusions (in addition to the conclusions discussed above) regarding the Investment Management and Subadvisory Agreements: (a) the Investment Manager and the Subadviser have demonstrated that they possess the capability and resources to perform the duties required of them under each Investment Management Agreement and each Subadvisory Agreement and (b) the Investment Manager and Subadviser maintain appropriate compliance programs.
Based on all of the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Trustee not necessarily attributing the same weight to each factor, the Trustees concluded that approval of each Investment Management Agreement and each Subadvisory Agreement would be in the best interests of the applicable Fund and its shareholders. Accordingly, on June 24, 2021, the Trustees, and separately a majority of the Independent Trustees, voted to approve the Investment Management Agreement for each Fund and the Subadvisory Agreement for each of AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund. |
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Annual Renewal of Investment Management and Subadvisory Agreements (continued) |
1 The Trustees determined that the conditions surrounding COVID-19 constituted unforeseen or emergency circumstances and that reliance on the Securities and Exchange Commissions (SEC) exemptive order, which provides relief from the in-person voting requirements of the Investment Company Act of 1940, as amended (the 1940 Act), in certain circumstances (the In-Person Relief), was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19. The Trustees unanimously wished to rely on the In-Person Relief with respect to the approval of those matters on the agenda for the June 24, 2021 meeting that would otherwise require in-person votes under the 1940 Act. See Investment Company Release No. 33897 (June 19, 2020). This exemptive order supersedes, in part, a similar, earlier exemptive order issued by the SEC (Investment Company Release No. 33824 (March 25, 2020)). |
2 At a meeting held via telephone and videoconference on December 3, 2020 (the December Meeting), the Board of AMG Funds, and separately a majority of the Independent Trustees, approved the Subadvisory Agreement with respect to AMG GW&K Small Cap Value Fund (the Small Cap Value Subadvisory Agreement). The Small Cap Value Subadvisory Agreement was subsequently approved by the Funds shareholders at a special meeting held on April 8, 2021, for an initial two-year period. Also at the December Meeting, the Board of AMG Funds III, and separately a majority of the Independent Trustees, approved the Subadvisory Agreement with respect to AMG GW&K High Income Fund (the High Income Subadvisory Agreement). The High Income Subadvisory Agreement was subsequently approved by the Funds shareholders at a special meeting held on March 25, 2021, for an initial two-year period. At a meeting held via telephone and |
videoconference on March 17-18, 2021, the Board of AMG Funds III, and separately a majority of the Independent Trustees, approved the Subadvisory Agreement with respect to AMG GW&K ESG Bond Fund (the ESG Bond Subadvisory Agreement). The ESG Bond Subadvisory Agreement was subsequently approved by the Funds shareholders at a special meeting held on June 11, 2021, for an initial two-year period. References herein to the Subadvisory Agreements refer to the Subadvisory Agreements for AMG GW&K Small Cap Core Fund, AMG GW&K Small/Mid Cap Fund, AMG GW&K Municipal Enhanced Yield Fund, AMG GW&K Municipal Bond Fund, AMG GW&K Enhanced Core Bond ESG Fund, and AMG GW&K Global Allocation Fund, and do not include the Small Cap Value Subadvisory Agreement, the High Income Subadvisory Agreement or the ESG Bond Subadvisory Agreement. |
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AMG Managers Loomis Sayles Bond Fund: Approval of Subadvisory Agreements on March 17-18, 2021
At a meeting held via telephone and videoconference on March 17-18, 2021,1 the Board of Trustees (the Board or the Trustees), and separately a majority of the Trustees who are not interested persons of AMG Funds III (the Trust) (the Independent Trustees), unanimously voted to terminate the subadvisory agreement between AMG Funds LLC (the Investment Manager) and Loomis, Sayles & Company, L.P. (Loomis) with respect to AMG Managers Loomis Sayles Bond Fund (the Fund) (the Former Subadvisory Agreement), and approve the interim subadvisory agreement between the Investment Manager and GW&K Investment Management, LLC (GW&K) with respect to the Fund (the Interim Subadvisory Agreement), the new subadvisory agreement between the Investment Manager and GW&K with respect to the Fund (the New Subadvisory Agreement and together with the Interim Subadvisory Agreement, the Agreements), and the presentation of the New Subadvisory Agreement for shareholder approval at a special meeting to be held for such purpose, including a recommendation that shareholders vote to approve the New Subadvisory Agreement. The Independent Trustees were separately represented by independent legal counsel in their consideration of the Agreements.
In considering the Agreements, the Trustees considered the information relating to the Fund and GW&K provided to them in connection with the meeting on March 17-18, 2021, and other meetings of the Board throughout the last twelve months, as well as in prior years. In considering the Agreements, the Trustees also considered information relating to the 12 other funds that GW&K sub-advises in the AMG Funds Family of Funds, which, as of March 17-18, 2021, consisted of 46 funds (the AMG Funds Complex). Prior to voting, the Independent Trustees: (a) reviewed the foregoing information; (b) received materials from their independent legal counsel discussing the legal standards applicable to their consideration of the Agreements; and (c) met with their independent legal counsel in a private session at which no representatives of management were present.
NATURE, EXTENT AND QUALITY OF SERVICES
In considering the nature, extent and quality of the services to be provided by GW&K, the Trustees reviewed information relating to GW&Ks financial condition, operations and personnel and the investment philosophy, strategies and techniques |
(the Investment Strategy) that are intended to be used by GW&K in managing the Fund. The Trustees noted that the Funds investment objective would be to generate income and capital appreciation and the Fund would invest, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in bonds (debt securities). Among other things, at this meeting and/or prior meetings, the Trustees reviewed information on portfolio management and other professional staff, information regarding GW&Ks organizational and management structure, GW&Ks compliance policies and procedures, and GW&Ks brokerage policies and practices. The Trustees noted that GW&K was founded in 1974 and has 155 employees. The Trustees considered specific information provided regarding the experience of the individuals at GW&K that are expected to have portfolio management responsibility for the Fund. The Trustees noted that one proposed portfolio manager joined GW&K in 2005 and the other proposed portfolio manager joined GW&K in 2013. The Trustees further noted that the proposed portfolio managers serve as portfolio managers on other funds subadvised by GW&K in the AMG Funds Complex. In the course of their deliberations, the Trustees evaluated, among other things: (a) the expected services to be rendered by GW&K to the Fund; (b) the qualifications and experience of GW&Ks personnel; and (c) GW&Ks compliance program. The Trustees additionally considered GW&Ks risk management processes. The Trustees reviewed GW&Ks compliance policies and procedures, code of ethics, and specific information related to how GW&K monitors, among other things, portfolio compliance and proxy voting and deemed all of them to be adequate. The Trustees also took into account the financial condition of GW&K with respect to its ability to provide the services required under the Agreements and noted that, as of December 31, 2020, GW&K managed approximately $51 billion in assets. The Trustees concluded that, given GW&Ks financial condition, it would be able to meet any reasonably foreseeable obligations under the Agreements.
PERFORMANCE
Because GW&K was proposing to manage the Fund with a new ESG fixed income investment strategy, the Trustees noted that they could not draw any conclusions regarding the performance of the Fund to date. The Trustees, however, considered the performance of GW&K with respect to its Core Bond ESG Composite and Enhanced Core Bond ESG Composite, which had not been adjusted for the fees and expenses of the Fund. The Trustees noted that the Core Bond ESG Composite outperformed its |
benchmark for the one-year period ended December 31, 2020, and for the period since the inception of the Core Bond ESG Composite on January 1, 2019 through December 31, 2020. The Trustees noted that the Enhanced Core Bond ESG Composite outperformed its benchmark for the one-year period ended December 31, 2020, and for the period since the inception of the Enhanced Core Bond ESG Composite on July 1, 2019 through December 31, 2020. The Trustees further considered the performance of other funds in the AMG Funds Complex sub-advised by GW&K.
SUBADVISORY FEES, PROFITABILITY AND ECONOMIES OF SCALE
The Trustees noted that the Investment Manager, and not the Fund, is responsible for paying the fees charged by GW&K. In considering the anticipated profitability of GW&K with respect to the provision of subadvisory services to the Fund, the Trustees considered information regarding GW&Ks organization, management and financial stability. The Trustees noted that, because GW&K is an affiliate (Affiliate) of the Investment Manager, a portion of GW&Ks revenues or anticipated profits might be shared directly or indirectly with the Investment Manager. The Trustees also noted that the subadvisory fee rate to be paid to GW&K under the Interim Subadvisory Agreement was the same as the rate paid to Loomis under the Former Subadvisory Agreement. The Trustees also noted that the subadvisory fee rate to be paid to GW&K under the New Subadvisory Agreement was lower than the rate paid to Loomis under the Former Subadvisory Agreement. The Trustees further noted that the Investment Manager proposed certain fee changes for the Fund, all of which would be implemented upon the effectiveness of the New Subadvisory Agreement and would result in the overall reduction of the Funds net expense ratios as compared with the Funds current fee structure. The Trustees also considered the amount of the advisory fee retained by the Investment Manager after payment of the subadvisory fee with respect to the Fund, which would decrease if the New Subadvisory Agreement was approved. The Trustees also noted payments made or to be made from GW&K to the Investment Manager, and other payments made or to be made from the Investment Manager to GW&K, including certain expense sharing arrangements related to, among other things, shareholder servicing and distribution. The Trustees concluded that these arrangements were reasonable. The Trustees noted that the management fees (which include both the advisory and administration fees) and total expenses (net of applicable expense waivers/reimbursements) of Class I shares (the class of shares which is the |
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Approval of Subadvisory Agreements (continued) |
primary focus of the Funds distribution) of the Fund would be lower than and the same as, respectively, the average for an appropriate peer group of similar mutual funds for the Fund once the new fee changes went into effect.
The Board took into account managements discussion of the proposed subadvisory fee structure, and the services GW&K is expected to provide in performing its functions under the Agreements. The Trustees were provided with the estimated profitability of GW&K with respect to its proposed subadvisory services to the Fund. The Trustees also were provided, in advance of their June 25, 2020 meeting, with the profitability of GW&K with respect to the other funds it sub-advises in the AMG Funds Complex. Based on the foregoing, the Trustees concluded that the profitability to GW&K is expected to be reasonable and that GW&K is not expected to realize material benefits from economies of scale that would warrant adjustments to the subadvisory fees at this time. Also with respect to economies of scale, the Trustees noted that as the Funds assets increase over time, the Fund may realize economies of scale with respect to certain fees and expenses, other than the Funds management fee, to the extent the increase in assets is proportionally greater than the increase in such fees and expenses.
In addition, the Trustees considered other potential benefits of the subadvisory relationship to GW&K, including, among others, the potential broadening of GW&Ks ESG fixed income investment capabilities, as well as the indirect benefits that GW&K may receive from GW&Ks relationship with the Fund, including any so-called fallout benefits to GW&K, such as reputational value derived from GW&K serving as subadviser to the Fund, which bears GW&Ks name. Taking into account all of the foregoing, the Trustees concluded that, in light of the nature, extent and |
quality of the services to be provided by GW&K, and the other considerations noted above with respect to GW&K, the Funds subadvisory fees are reasonable.
The Trustees also considered information provided by the Investment Manager related to the benefits of the proposed strategic repositioning of the AMG Funds complex. The Trustees considered that the strategic repositioning was expected to create value for the Fund, the other funds in the AMG Funds complex and their shareholders through enhanced resources and competitive fee levels. The Trustees noted that the proposed changes would bring the full range of AMGs resources to bear on the growth and success of the AMG Funds, streamline the lineup of funds in the AMG Funds complex and reduce the number of subadvisers, significantly reduce strategy overlap and provide more differentiated investment solutions for the AMG Funds complex that are otherwise not available to U.S. retail investors. The Trustees further considered that the repositioning would bring AMGs strong partnerships in support of the Fund and the AMG Funds complex as a whole and enable AMG Funds to bring the best capabilities of AMGs Affiliates to the Fund and the rest of the AMG Funds complex. The Trustees noted that AMGs relationship with its Affiliates will also allow the Fund to have greater insight into the Affiliates compliance and business platform than is generally possible with third party subadvisers, aiding the ongoing monitoring of subadvisers. In light of the foregoing, in approving the Agreements, the Trustees, including a majority of the Independent Trustees, determined that the hiring of GW&K is in the best interests of the Fund and its shareholders and does not involve a conflict of interest from which the Investment Manager or an affiliated subadviser derives an inappropriate advantage.
* * * * |
After consideration of the foregoing, the Trustees reached the following conclusions (in addition to the conclusions discussed above) regarding each Agreement: (a) GW&K has demonstrated that it possesses the capability and resources to perform the duties required of it under each Agreement; (b) GW&Ks Investment Strategy is appropriate for pursuing the Funds investment objectives; (c) GW&K is reasonably likely to execute its investment strategy consistently over time; and (d) GW&K maintains appropriate compliance programs.
Based on all of the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Trustee not necessarily attributing the same weight to each factor, the Trustees concluded that approval of each Agreement would be in the best interests of the Fund and its shareholders. Accordingly, on March 17-18, 2021, the Trustees, and separately a majority of the Independent Trustees, unanimously voted to approve each Agreement.
1 The Trustees determined that the conditions surrounding the COVID-19 virus constituted unforeseen or emergency circumstances and that reliance on the Security and Exchange Commissions (SEC) exemptive order, which provides relief from the in-person voting requirements of the Investment Company Act of 1940, as amended (the 1940 Act) in certain circumstances (the In-Person Relief), was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19. The Trustees unanimously wished to rely on the In-Person Relief with respect to the approval of those matters on the agenda for the March 17-18, 2021 meeting that would otherwise require in-person votes under the 1940 Act. See Investment Company Release No. 33897 (June 19, 2020). This exemptive order supersedes, in part, a similar, earlier exemptive order issued by the SEC (Investment Company Release No. 33824 (March 25, 2020)). |
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The Securities and Exchange Commission (the SEC) adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule), to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that a fund will be unable to meet its redemption obligations and mitigating dilution of the interests of fund shareholders.
The AMG Funds Family of Funds (each a Fund, and collectively, the Funds) have adopted and implemented a Liquidity Risk Management Program (the Program) as required by the Liquidity Rule. The Program is reasonably designed to assess and manage each Funds liquidity risk, taking into consideration the Funds investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short and long-term cash flow projections, and its holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources, including access to the Funds credit facility. Under the Liquidity Rule, each liquidity classification category (highly liquid, moderately liquid, less liquid and illiquid) is defined with respect to the time it is reasonably expected to take to convert the investment to cash (or sell or dispose of the investment) in current market conditions without significantly changing the market value of the investment.
The Funds Board of Trustees (the Board) appointed AMG Funds, LLC (AMGF) as the Program administrator. AMGF formed a Liquidity Risk Management Committee (LRMC), which includes |
members of various departments across AMGF, including Legal, Compliance, Mutual Fund Services, Investment Research and Product Analysis & Operations and, as needed, other representatives of AMGF and/or representatives of the subadvisers to the Funds. The LRMC meets on a periodic basis, no less frequently than monthly. The LRMC is responsible for the Programs administration and oversight and for reporting to the Board on at least an annual basis regarding the Programs operation and effectiveness.
At a meeting of the Board held on March 17-18, 2021, the Board received a report from the LRMC regarding the design and operational effectiveness of the Program for the period January 1, 2020 through December 31, 2020 (the Program Reporting Period).
The Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Funds liquidity risk, as follows:
A. The Funds investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions:
During the Program Reporting Period, the LRMC reviewed whether each Funds investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions is appropriate for an open-end fund structure. The LRMC also factored a Funds concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. |
B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions:
During the Program Reporting Period, the LRMC reviewed historical net redemption activity and used this information as a component to establish each Funds reasonably anticipated trading size. The Funds maintain an in-kind redemption policy, which may be utilized to meet larger redemption requests, when appropriate. The LRMC may also take into consideration a Funds shareholder ownership concentration, a Funds distribution channels, and the degree of certainty associated with a Funds short-term and long-term cash flow projections.
C. Holdings of cash and cash equivalents, as well as borrowing arrangements:
The LRMC considered the terms of the credit facilities available to the Funds.
The report concluded that, based upon the review of the Program, using resources and methodologies that AMGF considers reasonable, AMGF believes that the Program and Funds Liquidity Risk Management Policies and Procedures are adequate, effective, and reasonably designed to effectively manage the Funds liquidity risk.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to each Funds prospectus or statement of additional information for more information regarding a Funds exposure to liquidity risk and other principal risks to which an investment in a Fund may be subject. |
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INVESTMENT MANAGER AND ADMINISTRATOR
AMG Funds LLC One Stamford Plaza 263 Tresser Blvd, Suite 949 Stamford, CT 06901 800.548.4539
DISTRIBUTOR
AMG Distributors, Inc. One Stamford Plaza 263 Tresser Blvd, Suite 949 Stamford, CT 06901 800.548.4539
SUBADVISER
GW&K Investment Management, LLC 222 Berkeley St. Boston, MA 02116
CUSTODIAN
The Bank of New York Mellon Mutual Funds Custody 6023 Airport Road Oriskany, NY 13424
LEGAL COUNSEL
Ropes & Gray LLP Prudential Tower, 800 Boylston Street Boston, MA 02199-3600 |
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc. Attn: AMG Funds 4400 Computer Drive Westborough, MA 01581 800.548.4539
TRUSTEES
Bruce B. Bingham Christine C. Carsman Kurt A. Keilhacker Steven J. Paggioli Richard F. Powers III Eric Rakowski Victoria L. Sassine Thomas R. Schneeweis |
This report is prepared for the Funds shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by an effective prospectus. To receive a free copy of the prospectus or Statement of Additional Information, which includes additional information about Fund Trustees, please contact us by calling 800.548.4539. Distributed by AMG Distributors, Inc., member FINRA/SIPC.
Current net asset values per share for each Fund are available on the Funds website at amgfunds.com.
A description of the policies and procedures each Fund uses to vote its proxies is available: (i) without charge, upon request, by calling 800.548.4539, or (ii) on the Securities and Exchange Commissions (SEC) website at sec.gov. For information regarding each Funds proxy voting record for the 12-month period ended June 30, call 800.548.4539 or visit the SEC website at sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds portfolio holdings on Form N-PORT are available on the SECs website at sec.gov and the Funds website at amgfunds.com. To review a complete list of the Funds portfolio holdings, or to view the most recent semiannual report or annual report, please visit amgfunds.com. |
amgfunds.com | |
BALANCED FUNDS AMG GW&K Global Allocation
GW&K Investment Management, LLC
AMG FQ Global Risk-Balanced
First Quadrant, L.P.
EQUITY FUNDS AMG Beutel Goodman International Equity
Beutel, Goodman & Company Ltd.
AMG Boston Common Global Impact
Boston Common Asset Management, LLC
AMG Managers CenterSquare Real Estate
CenterSquare Investment Management LLC
AMG Frontier Small Cap Growth
Frontier Capital Management Co., LLC
AMG GW&K Small Cap Core AMG GW&K Small Cap Value AMG GW&K Small/Mid Cap AMG GW&K Small/Mid Cap Growth AMG GW&K Emerging Markets Equity AMG GW&K Emerging Wealth Equity AMG GW&K International Small Cap
GW&K Investment Management, LLC
AMG Montrusco Bolton Large Cap Growth
Montrusco Bolton Investments, Inc. |
AMG Renaissance Large Cap Growth
The Renaissance Group LLC
AMG River Road Dividend All Cap Value AMG River Road Focused Absolute Value AMG River Road International Value Equity AMG River Road Large Cap Value Select AMG River Road Mid Cap Value AMG River Road Small-Mid Cap Value AMG River Road Small Cap Value
River Road Asset Management, LLC
AMG TimesSquare Emerging Markets Small Cap AMG TimesSquare Global Small Cap AMG TimesSquare International Small Cap AMG TimesSquare Mid Cap Growth AMG TimesSquare Small Cap Growth
TimesSquare Capital Management, LLC
AMG Veritas Asia Pacific AMG Veritas China AMG Veritas Global Focus AMG Veritas Global Real Return
Veritas Asset Management LLP
AMG Yacktman AMG Yacktman Focused AMG Yacktman Global AMG Yacktman Special Opportunities Yacktman Asset Management LP
|
FIXED INCOME FUNDS AMG Beutel Goodman Core Plus Bond
Beutel, Goodman & Company Ltd.
AMG GW&K Core Bond ESG AMG GW&K Enhanced Core Bond ESG AMG GW&K ESG Bond AMG GW&K High Income AMG GW&K Municipal Bond AMG GW&K Municipal Enhanced Yield
GW&K Investment Management, LLC |
amgfunds.com | | 063021 SAR019 |
Item 2. | CODE OF ETHICS |
Not applicable for the semi-annual shareholder report.
Item 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
Not applicable for the semi-annual shareholder report.
Item 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Not applicable for the semi-annual shareholder report.
Item 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable.
Item 6. | SCHEDULE OF INVESTMENTS |
The schedule of investments in unaffiliated issuers as of the close of the reporting period is included as part of the shareholder report contained in Item 1 hereof.
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 COMPANIES AND AFFILIATED PURCHASERS |
Not applicable.
Item 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
Not applicable.
Item 11. | CONTROLS AND PROCEDURES |
(a) | The registrants principal executive and principal financial officers have concluded, based on their evaluation of the registrants disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the registrants disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the registrants management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. |
(b) | There were no changes in the registrants internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting. |
Item 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
Item 13. | EXHIBITS |
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 Filed herewith. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 Filed herewith. |
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.
AMG FUNDS III | ||
By: | /s/ Keitha L. Kinne | |
Keitha L. Kinne, Principal Executive Officer | ||
Date: | September 2, 2021 |
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/ Keitha L. Kinne | |
Keitha L. Kinne, Principal Executive Officer | ||
Date: | September 2, 2021 | |
By: | /s/ Thomas Disbrow | |
Thomas Disbrow, Principal Financial Officer | ||
Date: | September 2, 2021 |
CERTIFICATION FILED AS EXHIBIT 13(a)(2) TO FORM N-CSR
I, Keitha L. Kinne, certify that:
1. I have reviewed this report on Form N-CSR of AMG Funds III;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: September 2, 2021 | ||||||
/s/ Keitha L. Kinne | ||||||
Keitha L. Kinne | ||||||
Principal Executive Officer |
CERTIFICATION FILED AS EXHIBIT 13(a)(2) TO FORM N-CSR
I, Thomas Disbrow, certify that:
1. I have reviewed this report on Form N-CSR of AMG Funds III;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: September 2, 2021 | ||||||
/s/ Thomas Disbrow | ||||||
Thomas Disbrow | ||||||
Principal Financial Officer |
CERTIFICATION FILED AS EXHIBIT 13(B) TO FORM N-CSR
Name of Issuer: | AMG FUNDS III AMG VERITAS ASIA PACIFIC FUND, AMG GW&K ESG BOND FUND, AND AMG GW&K HIGH INCOME FUND |
In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the issuer. |
Dated: September 2, 2021 | /s/ Keitha L. Kinne | |||||
Keitha L. Kinne | ||||||
Principal Executive Officer |
CERTIFICATION FILED AS EXHIBIT 13(B) TO FORM N-CSR
Name of Issuer: | AMG FUNDS III AMG VERITAS ASIA PACIFIC FUND, AMG GW&K ESG BOND FUND, AND AMG GW&K HIGH INCOME FUND |
In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the issuer. |
Dated: September 2, 2021 | /s/ Thomas Disbrow | |||||
Thomas Disbrow | ||||||
Principal Financial Officer |
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