Fund Notice

The Board of Trustees of AMG Funds III has approved a plan to liquidate and terminate AMG GW&K High Income Fund (the “Fund”) (the “Liquidation”), which is expected to occur on or about September 11, 2024 (the “Liquidation Date”). Effective on or about June 14, 2024, it is expected that the Fund will begin selling its portfolio investments and will invest the proceeds in cash and cash equivalents, in anticipation of the Liquidation. Proceeds of the Liquidation are expected to be distributed to shareholders of the Fund promptly following the Liquidation Date in full redemption of each shareholder’s shares of the Fund. Please refer to the Fund’s prospectus for more information.

Fund Overview

Share Class

I

NAV | as of 06/13/2024

$20.88
+$0.01 (+0.05%)

Morningstar | Style Box

L M E H M L

Morningstar Rating

Rated against 595 High Yield Bond funds as of 05/31/2024 View Morningstar Details

Growth of $10,000 (Hypothetical)

Since Inception 03/12/2021 to 05/31/2024 = $10,754.16

  • 3YR
  • 5YR
  • 10YR
  • INCEP.
INCEP.
  • 3YR
  • 5YR
  • 10YR
  • INCEP.
SEE ALL PERFORMANCE

  The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month-end please call 800.548.4539 or visit our website at amgfunds.com. From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields of the Fund are net of expenses, and the returns and yields of the indices exclude expenses. For time periods where the fund inception date preceded the benchmark, the benchmark data will not be shown.

Objective

The Fund seeks high income

Why Consider

  • May be appropriate for investors seeking a short term high income investment
  • Employs a research intensive investment process combining quantitative screening tools with in-depth security specific research
  • Manages risk by limiting duration and focusing on the highest quality of non-investment grade corporate bonds

Performance

Performance

Read Important Investment Disclosures

Returns

Trailing Returns

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month-end please call 800.548.4539 or visit our website at amgfunds.com. From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields of the Fund are net of expenses, and the returns and yields of the indices exclude expenses. For time periods where the fund inception date preceded the benchmark, the benchmark data will not be shown.

Expense Ratios

  • Gross Expense Ratio: 1.28%
  • Net Expense Ratio: 0.64%
  • Expense Cap Expiration Date: 05/01/2025

Distributions & Pricing

Distributions

Calendar Year Distributions

Ex-Date Total Distribution Income Short-term Cap Gains Long-term Cap Gains
May 29, 2024 $0.099800 $0.099800
Apr 26, 2024 $0.133000 $0.133000
Mar 26, 2024 $0.091200 $0.091200
Feb 27, 2024 $0.084200 $0.084200
Jan 29, 2024 $0.092100 $0.092100
Dec 14, 2023 $0.085600 $0.085600
Nov 28, 2023 $0.083100 $0.083100
Oct 27, 2023 $0.087700 $0.087700
Sep 27, 2023 $0.086000 $0.086000
Aug 29, 2023 $0.087100 $0.087100
Jul 27, 2023 $0.086900 $0.086900
Jun 28, 2023 $0.083600 $0.083600
May 26, 2023 $0.087600 $0.087600
Apr 26, 2023 $0.085000 $0.085000
Mar 29, 2023 $0.088000 $0.088000
Feb 24, 2023 $0.079800 $0.079800
Jan 27, 2023 $0.084900 $0.084900
Dec 15, 2022 $0.131200 $0.077500 $0.047900 $0.005800
Nov 28, 2022 $0.115800 $0.115800
Oct 27, 2022 $0.066000 $0.066000
Sep 28, 2022 $0.064500 $0.064500
Aug 29, 2022 $0.065400 $0.065400
Jul 27, 2022 $0.065400 $0.065400
Jun 28, 2022 $0.060300 $0.060300
May 26, 2022 $0.060800 $0.060800
Apr 27, 2022 $0.059700 $0.059700
Mar 29, 2022 $0.060100 $0.060100
Feb 24, 2022 $0.054600 $0.054600
Jan 27, 2022 $0.059000 $0.059000
Dec 15, 2021 $0.113000 $0.064700 $0.047700 $0.000600
Nov 26, 2021 $0.059100 $0.059100
Oct 27, 2021 $0.062000 $0.062000
Sep 28, 2021 $0.062100 $0.062100
Aug 27, 2021 $0.063600 $0.063600
Jul 28, 2021 $0.062500 $0.062500
Jun 28, 2021 $0.059100 $0.059100
May 26, 2021 $0.066000 $0.066000
Apr 28, 2021 $0.044000 $0.044000
Mar 29, 2021 $0.040000 $0.040000

Risk & Return Statistics

As of: 05/31/2024

3YR 5YR 10YR
Alpha
Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a security or mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the security or fund relative to the return of the benchmark index is a fund's alpha.
-0.96 - -
Standard Deviation
Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
6.33 - -
Sharpe Ratio
Sharpe Ratio is a risk-adjusted measure developed by William Sharpe. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 90-day Treasury bill (over a 36-month period) is subtracted from the portfolio's average monthly return. The difference in total return represents the portfolio's excess return beyond that of the 90-day Treasury bill, a risk-free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is then divided by the standard deviation of the portfolio's annualized excess returns. The higher the Sharpe ratio, the better the portfolio's historical risk-adjusted performance.
-0.19 - -
Upside Capture Ratio (%)
Upside Capture Ratio (%) is a measure of a manager's performance in up markets relative to a particular benchmark. An up market is one in which the market's quarterly (or monthly) return is greater than or equal to zero. For example, a ratio of 50% means that the portfolio's value increased half as much as its benchmark index during up markets.
104.94 - -
Downside Capture Ratio (%)
Downside Capture Ratio (%) measures a manager's performance in down markets relative to a particular benchmark. A down market is one in which the market's quarterly (or monthly) return is less than zero. For example, a ratio of 50% means that the portfolio's value fell half as much as its benchmark index during down markets.
115.96 - -
Beta
Beta measures the relationship between the portfolio's excess return over T-bills (representing a risk-free rate) relative to the excess return of the portfolio's benchmark. A low beta does not imply that the portfolio has a low level of volatility; rather, a low beta means that the portfolio's market-related risk is low. Beta is often referred to as systematic risk.
1.11 - -
R-Squared
R-Squared ranges from 0 to 100 and reflects the percentage of a portfolio's movements that are explained by movements in its benchmark index. A portfolio with an R-squared of 100 means that all movement is completely explained by benchmark index movement. Thus, a portfolio that invests only in S&P 500 stocks will have an R-squared very close to 100. Conversely, a low R-squared indicates that very little of the portfolio's movement is explained by benchmark movement. An R-squared measure of 35, for example, means that movements in its benchmark index can explain only 35% of the portfolio's movements. R-squared is used to ascertain the significance of a particular beta or alpha and generally a higher R-squared will indicate more useful alpha and beta figures.
97.72 - -
Tracking Error (%)
Tracking Error (%) , which is often referred to as the active risk of the portfolio, measures how closely a manager's returns track the returns of a benchmark index. Specifically, tracking error measures the standard deviation of the excess returns a portfolio generates compared to its benchmark. This gives an indication of the volatility of a portfolio versus its benchmark. If a manager tracks a benchmark closely, then tracking error will be low. If a manager tracks a benchmark perfectly, then tracking error will be zero.
1.13 - -
View All Characteristics & Statistics

Portfolio & Holdings

Portfolio & Holdings

Top Holdings (Fixed)

As of: 03/31/2024

NuStar Logistics LP Fixed 1.91%
SLM Corp Fixed 1.81%
SM Energy Co Fixed 1.76%
Citigroup Inc Floating Perpetual 1.69%
Matador Resources Co Fixed 1.62%
Southwestern Energy Co Fixed 1.60%
Prime Security Services Borrower LLC Fixed 144A 1.56%
MGM Resorts International Fixed 1.49%
Starwood Property Trust Inc Fixed 144A 1.48%
Navient Corp Fixed 1.48%
% in Top 10 Holdings 16.40%
View Holding Details Read Important Investment Disclosures

Sector Allocation (Fixed)

As of: 03/31/2024

View Allocation Details

About the Affiliate

About GW&K Investment Management

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

Learn More About GW&K Investment Management's Approach

FOUNDED

1974

AMG AFFILIATE SINCE

2008

HEADQUARTERS

Boston, MA

Portfolio Managers

Investment Approach

Investment Approach

GW&K High Income Fund

  •  The Fund invests in a diversified portfolio of short-term, non-investment grade corporate bonds, which have the potential to generate high income and strong total return over the long term while assuming manageable levels of risk
  • GW&K believes the short-term segment of the high yield corporate sector provides attractive returns with lower volatility compared to the overall high yield market
  • Under normal market conditions, the Fund invests in bonds with maturities less than five years and seeks to target bonds with an average rating of BB
  • GW&K employs a research intensive process which seeks out relative value opportunities within the corporate bond universe based on their assessment of macro-economic conditions and sound fundamental credit research
  • Uses bottom-up research that focuses on fundamental, valuation, technical and ESG factor analysis
  • A strong risk management process is used to achieve portfolio diversification, manage credit risk, and set sector, quality and issuer limits

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