AMG River Road Small-Mid Cap Value Fund Class Z (ARSZX)

Overview

The investment strategy of the fund is grounded in value investing, focusing primarily on equity securities of small- and mid-capitalization companies that are perceived to be undervalued by the market. These are companies whose market capitalizations fall within the range defined by the Russell 2500™ Index at the time of acquisition. The subadviser employs a disciplined investment process, seeking out stocks that are believed to be out of favor with investors or undervalued in comparison to their peers or their potential for growth. This strategy is driven by in-depth, bottom-up research aimed at uncovering undervalued companies that may offer significant upside potential as they come to be more accurately valued by the market over time. The fund's approach underscores a commitment to investing a minimum of 80% of its net assets, in addition to any borrowings for investment purposes, into these select equity securities, reflecting a strong focus on capitalizing on the potential for value appreciation in the small to mid-cap segment.

Products and Services

• Equity Securities of Small- and Mid-Capitalization Companies

The cornerstone of the fund's investment strategy focuses on purchasing equity securities—such as stocks—in companies that are considered small- or mid-sized based on their market capitalization. The definition of small and mid-cap is aligned with the ranges set by the Russell 2500™ Index at the time of acquisition. The selection process is driven by identifying companies that are judged to be undervalued by the market, offering potential for appreciation as their true value is recognized.

• Value Investing Approach

At the heart of the fund’s methodology is value investing, a strategy that aims to spot stocks that are undervalued in comparison to their peers or their future growth prospects. This involves a comprehensive analysis to find companies that, for a variety of reasons, might be out of favor with the broader market but have solid fundamentals that have been overlooked. The goal is to invest before the market corrects its undervaluation, thus potentially realizing higher returns as the company's stock value aligns closer with its intrinsic value.