Mutual Fund Summary Prospectus (497k)
April 03 2014 - 5:18PM
Edgar (US Regulatory)
Summary Prospectus
AMG SouthernSun U.S. Equity Fund
Investor
Class:
SSEFX
|
Class
C:
SSECX
|
Institutional Class:
SSEIX
|
Before you invest, you may want to review the
Fund’s prospectus and statement of additional information, which contain more information about the Fund and its risks. You can find the Fund’s prospectus, statement of additional information and other information about the Fund online
at http://investor.managersinvest.com/prospectus_annual_reports.html. You can also get this information at no cost by calling 800/835-3879 or by sending an e-mail request to shareholderservices@managersinvest.com. The current prospectus dated March
31, 2014, and statement of additional information dated March 31, 2014, are incorporated by reference into this Summary Prospectus dated March 31, 2014, as revised April 3, 2014.
Investment Objective
The AMG SouthernSun U.S. Equity Fund's (the “Fund”)
investment objective is to provide long-term capital appreciation.
Fees and Expenses of the Fund
The tables below describe the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Shareholder Fees
(fees paid directly from your investment)
|
Investor
Class
|
Class
C
|
Institutional
Class
|
Redemption
Fee (as a percentage of the amount redeemed, if applicable, on shares held less than 30 days)
1
|
2.00%
|
2.00%
|
2.00%
|
1
|
Effective
May 17, 2014, the Redemption Fee will apply to redemptions made within 60 days of purchase.
|
Annual Fund Operating Expenses
(expenses that you pay each
year as a percentage of the value of your investment)
|
Investor
Class
|
Class
C
|
Institutional
Class
|
Management
Fee
|
0.85%
|
0.85%
|
0.85%
|
Distribution
and Service (12b-1) Fees
|
0.25%
|
1.00%
|
None
|
Other
Expenses
1
|
0.22%
|
0.22%
|
0.22%
|
Acquired
Fund Fees and Expenses
1
|
0.03%
|
0.03%
|
0.03%
|
Total
Annual Fund Operating Expenses
|
1.35%
|
2.10%
|
1.10%
|
1
These amounts have been adjusted as necessary from amounts incurred during the Predecessor Fund’s (as defined below) most recent fiscal year to reflect current fees and expenses.
Expense Example
This Example will help you compare the cost of investing in the
Fund to the cost of investing in other mutual funds. The Example makes certain assumptions. It assumes that you invest $10,000 as an initial investment in the Fund for the time periods indicated and then redeem all of your shares at the end of those
periods. It also assumes that your investment has a 5% total return each year and the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on
the above assumptions, your costs would be:
|
1
Year
|
3
Years
|
5
Years
|
10
Years
|
Investor
Class
|
$137
|
$428
|
$
739
|
$1,624
|
Class
C
|
$213
|
$658
|
$1,129
|
$2,431
|
Institutional
Class
|
$112
|
$350
|
$
606
|
$1,340
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the predecessor to the Fund, SouthernSun U.S. Equity Fund, a series of Northern Lights Fund Trust (the
“Predecessor Fund”), had a portfolio turnover rate of 25% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of
its assets (defined as net assets plus any borrowing for investment purposes) in equity securities (common stocks) of U.S. companies. SouthernSun Asset Management, LLC (“SouthernSun” or the “Subadvisor”) seeks to achieve the
Fund’s investment objective by investing primarily in common stocks of small to middle capitalization U.S. companies that SouthernSun selects using a research-driven, value-oriented investment strategy. The Fund defines the investable universe
of small to middle capitalization securities to include securities of issuers with a market capitalization at the time of purchase within the capitalization range of companies in the Russell
2500
®
Index and/or the Russell Midcap
®
Index during the most recent 12 month period (based on month-end data). This
capitalization range will change over time. As of December 31, 2013, the range was $9.6 million to $12.7 billion for the Russell 2500
®
Index and $296.4 million to $31.3 billion for the
Russell Midcap
®
Index.
The Fund’s portfolio typically invests in
20-40 companies SouthernSun believes are niche dominant, attractively-valued with financial flexibility and uniquely-fitted management teams. When selecting companies for investment, SouthernSun seeks opportunities that it believes have the
following characteristics:
•
|
Financial
Flexibility: SouthernSun prefers companies that have strong internally generated discretionary cash flow and organic revenue growth.
|
AMG SouthernSun U.S. Equity Fund SUMMARY PROSPECTUS
•
|
Management
Adaptability: SouthernSun prefers management teams with measurable, transparent goals that are held accountable for performance. This applies to multiple levels of management from the CEO and CFO to the plant/facilities manager.
|
•
|
Niche
Dominance: SouthernSun prefers companies that it believes exhibit competitive advantages through superior products, process controls and technologies.
|
The Fund generally seeks to buy and hold stocks for
the long-term, but will sell holdings that SouthernSun believes have exceeded their intrinsic market value, become too large a position, experienced a change in fundamentals or are subject to other factors that may contribute to relative under
performance. The Fund generally seeks to hold positions in companies as they increase in market capitalization as long as SouthernSun considers the company to remain an attractive investment with capital appreciation potential.
The Fund is non-diversified, which means that it can
invest a greater percentage of its assets in any one issuer than a diversified fund.
Principal Risks
There is the risk that you may lose money on your investment. All
investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not
insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Below are some of the risks of investing in the Fund. The risks are described in alphabetical order and not in the order of importance or
potential exposure.
Focused Investment Risk
—a greater percentage of the Fund’s holdings may be focused in a smaller number of securities which may place the Fund at greater risk than a more diversified fund.
Liquidity
Risk
—particular investments, such as illiquid securities, may not be able to be sold at the price the Fund would like or the Fund may have to sell them at a loss.
Management
Risk
—because the Fund is an actively-managed investment portfolio, security selection or focus on securities in a particular style, market sector or group of companies may cause the Fund to underperform
relevant benchmarks or other funds with a similar investment objective. There can be no guarantee that the Subadvisor’s investment techniques and risk analysis will produce the desired result.
Market
Risk
—market prices of securities held by the Fund may fall rapidly or unpredictably due to a variety of factors, including changing economic, political, or market conditions.
Non-Diversified Fund Risk
—the Fund is non-diversified and therefore a greater percentage of holdings may be concentrated in a small number of issuers or a single issuer, which can place the Fund at greater risk.
Small- and Mid-Capitalization Stock Risk
—the stocks of small- and mid-capitalization companies often have greater price volatility, lower trading volume, and less liquidity than the stocks of larger, more established companies.
Value Stock
Risk
—value stocks may perform differently from the market as a whole and may be undervalued by the market for a long period of time.
Performance
The following performance information illustrates the risks of
investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s performance compares to that of two broad-based securities market indices. As always, past performance of the Fund (before
and after taxes) is not an indication of how the Fund will perform in the future.
The performance information shown for the Fund is
that of the Predecessor Fund, which was reorganized into the Fund on March 31, 2014, and was managed by SouthernSun with the same investment objective and substantially similar investment strategies as those of the Fund.
The performance information shown assumes that all
dividend and capital gain distributions have been reinvested for the Fund and, where applicable, for the indices shown in the table. The information in the bar chart is for Investor Class shares of the Fund. Class C and Institutional Class shares
would have similar annual returns as Investor Class shares because all of the classes are invested in the same portfolio of securities. However, because Class C and Institutional Class shares are subject to different expenses than Investor Class
shares, Class C and Institutional Class share performance varies. The performance information also reflects the impact of the Fund’s previous contractual expense limitation. If the Predecessor Fund’s investment manager had not agreed to
limit expenses, returns would have been lower.
To obtain updated performance information please
visit or call 800.835.3879.
Calendar Year Total Returns
as of 12/31/13 (Investor Class)
Best Quarter:
13.97% (3rd Quarter 2013)
Worst Quarter: 2.87% (2nd Quarter 2013)
2
|
Managers Investment
Group
|
AMG SouthernSun U.S. Equity Fund SUMMARY PROSPECTUS
Average
Annual Total Returns as of 12/31/13
|
AMG
SouthernSun U.S. Equity Fund
|
1
Year
|
Since
Inception
|
Investor
Class
Return Before Taxes
|
|
|
36.45%
|
25.20%
|
Investor
Class
Return After Taxes on Distributions
|
|
|
35.96%
|
23.77%
|
Investor
Class
Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
20.90%
|
19.46%
|
Class
C
Return Before Taxes
|
|
|
35.47%
|
24.42%
|
Institutional
Class
Return Before Taxes
|
|
|
36.84%
|
25.55%
|
Russell
2500
®
Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
36.80%
|
26.51%
|
Russell
Midcap
®
Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
34.76%
|
24.52%
|
The inception date for
the Fund is April 10, 2012.
After-tax returns
are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor Class shares only, and after-tax
returns for Class C and Institutional Class shares will vary.
Portfolio Management
Investment Manager
Managers Investment Group LLC
Subadvisor
SouthernSun Asset Management, LLC
Portfolio Manager
Michael W. Cook, Sr.
Chief Executive Officer and Chief Investment
Officer of SouthernSun;
Portfolio Manager of the Fund and the Predecessor Fund since its inception in 2012.
Buying and Selling Fund Shares
Initial Investment Minimum
Investor Class and Class C (all accounts) $1,000
Institutional
Class (all accounts): $1,000,000
Additional
Investment Minimum
Investor Class and Class C (all accounts):
$250 ($25 for automatic investment plans)
Institutional Class (all accounts): None
TRANSACTION POLICIES
You may purchase or sell your shares of the Fund any day that the
New York Stock Exchange is open for business, either through your registered investment professional or directly to the Fund. Shares may be purchased, sold or exchanged by mail at the address listed below, by phone at 866.672.3863, or by bank wire
(if bank wire instructions are on file for your account).
Via Regular Mail
Managers
c/o Gemini Fund Services, LLC
P.O.
Box 541150
Omaha, Nebraska 68154-1150
or
Overnight Mail
Managers
c/o Gemini Fund
Services, LLC
17605 Wright Street, Suite 2
Omaha, Nebraska 68130-2095
Gemini Fund Services, LLC (“Gemini”)
will serve as the Fund’s interim transfer agent to facilitate the transition of the Predecessor Fund from the Gemini platform to the Managers AMG Funds service provider platform. BNY Mellon Investment Servicing (US) Inc. will be the
Fund’s transfer agent following the transition.
Tax Information
The Fund intends to make distributions that are taxable to you as
ordinary income or capital gains, except when your investment is in an IRA, 401(k), or other tax-advantaged investment plan. By investing in the Fund through such a plan, you will not be subject to tax on distributions from the Fund so long as the
amounts distributed remain in the plan, but you will generally be taxed upon withdrawal of monies from the plan.
Payments to Broker-Dealers and Other Financial
Intermediaries
If you purchase the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies, including Managers Investment Group LLC (the “Investment Manager”), Managers Distributors, Inc. (“MDI” or the
“Distributor”) and the Subadvisor, may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Managers
Investment Group
|
3
|
THIS PAGE INTENTIONALLY LEFT BLANK