AFPTX — AMG Managers Fairpointe ESG Equity Fund

AFPTX Fund Overview

AFPTX — AMG Managers Fairpointe ESG Equity Fund is a US mutual fund managed by AMG Funds IV, categorised as Developed ex-US Large Cap Value Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: AMG Funds IV
• Category: Developed ex-US Large Cap Value Thematic Equity
• Assets under management: $12.71M
• Ticker: AFPTX
• SEC CIK: 0000912036
• SEC series ID: S000047666
• Share class ID: C000149637

AFPTX Investment Objective and Strategy

AMG Managers Fairpointe ESG Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by AMG Funds IV.

Investment objective

The Fund seeks long-term total return through capital appreciation.

Principal investment strategy

Under normal conditions, the Fund will invest at least 80% of its assets in a select number of equity securities that the subadviser believes to be trading at a significant discount to intrinsic value. In selecting stocks, the subadviser prefers investment in companies it deems to have strong environmental, social and governance (ESG) records and seeks to avoid those with inferior ESG records relative to the market and peers. The Fund incorporates certain ESG guidelines in the selection of individual securities and in portfolio construction. The subadviser uses internal guidelines as well as third-party research and databases to evaluate and rank a companys record with respect to each ESG component, and then establishes an overall ranking of the companys ESG record. In establishing an overall ESG ranking for a company, the subadviser places a greater emphasis on the governance component of ESG, as it believes that good governance can also lead to more responsible behavior in the social and environmental components of ESG.

The Fund also seeks to monitor and advocate for ESG accountability of portfolio companies through proxy voting and shareholder engagement. The subadviser further evaluates stocks for selection based on bottom-up fundamental analysis, favoring companies with strong business models, effective management, strong or improving balance sheets and attractive valuations. The number of issuers in which the Fund invests varies based on the subadvisers investment outlook for the Fund and so, from time to time, the Funds holdings may be focused on a smaller number of issuers than at other times. The subadviser takes a long-term approach to portfolio management, with a focus on maximizing after-tax returns. Once the Fund invests in a company, the subadviser intends to monitor that companys ESG record and, in some cases, the Fund may sell an investment in a company whose ESG ranking assigned by the subadviser declines below that which it was at the time of purchase, even if the other investment fundamentals of the company are positive.

In addition to value criteria, the subadviser looks for companies with the following characteristics: Industry leaders with a focused business plan and the ability to grow their market share Proven, effective management The Fund typically expects to invest in companies having a market capitalization at the time of acquisition within the capitalization range of the Russell 1000 Index, which as of May 12, 2017, the date of the latest reconstitution of the Index (implemented by the Index on June 23, 2017), was approximately $2.35 billion to $813.88 billion. The Fund may invest in equity securities outside of the capitalization range of the Russell 1000 Index (including small-cap companies), convertible securities (including convertible preferred stocks and convertible bonds), and foreign securities (directly and through American Depositary Receipts).

To manage risk, the subadviser employs a valuation discipline that attempts to purchase securities trading at a substantial discount to intrinsic value, limits position sizes and sector exposure, and adheres to a strong sell discipline.

AFPTX Costs and Fees

AFPTX costs about $112 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.12%
• Gross expense ratio: 1.86%
• Portfolio turnover: 43%
• Brokerage commissions: 6.51 bps of average net assets (SEC N-CEN)

AFPTX Cashflows

Over the 12 months to 2020-01, AMG Managers Fairpointe ESG Equity Fund had net inflows of $655.50K, from monthly SEC N-PORT filings.

AFPTX Debt Constituents

No individual debt constituents are reported in AMG Managers Fairpointe ESG Equity Fund's latest SEC N-PORT filing.

AFPTX Prospectus and SEC Filings

Official AMG Managers Fairpointe ESG Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-03-20
• Prospectus (485BPOS) — filed 2019-03-22
• Prospectus (485BPOS) — filed 2018-03-21
• Portfolio holdings (N-PORT) — filed 2020-03-27
• Portfolio holdings (N-PORT) — filed 2019-12-23
• Annual census (N-CEN) — filed 2020-01-10
• Annual census, amended (N-CEN/A) — filed 2019-07-23

Related Funds

Related funds tracked on ABC INVEST:

• AMG River Road Small Cap Value Fund (ARSVX)
• AMG Managers Fairpointe Mid Cap Fund (CHTTX)
• AMG River Road Small-Mid Cap Value Fund (ARSMX)
• AMG Managers Montag & Caldwell Growth Fund (MCGFX)
• AMG River Road Dividend All Cap Value Fund (ARDEX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.