Filed pursuant to Rule 497(e)
File Nos. 333‑84639 and 811‑09521
AMG FUNDS
AMG GW&K Municipal Enhanced Yield Fund
Supplement dated December 9, 2022 to the Prospectus dated May 1, 2022, as supplemented July 15, 2022
The following information supplements and supersedes any information to the contrary relating to AMG GW&K Municipal Enhanced Yield Fund (the “Fund”), a series of AMG Funds (the “Trust”), contained in the Fund’s Prospectus (the “Prospectus”), dated and supplemented as noted above.
Effective immediately, the Fund’s existing contractual expense limitation agreement with AMG Funds LLC (the “Investment Manager”) will be replaced with a new contractual expense limitation agreement with the Investment Manager pursuant to which the Investment Manager will agree, through at least May 1, 2025, to limit total annual operating expenses (exclusive of taxes, interest (including interest incurred in connection with bank and custody overdrafts and in connection with securities sold short), shareholder servicing fees, distribution and service (12b‑1) fees, brokerage commissions and other transaction costs, dividends payable with respect to securities sold short, acquired fund fees and expenses, and extraordinary expenses) of the Fund to the annual rate of 0.59% of the Fund’s average daily net assets, subject to later reimbursement by the Fund in certain circumstances.
Effective immediately, the Prospectus is revised as follows:
The sections under “Summary of the Funds – AMG GW&K Municipal Enhanced Yield Fund” titled “Fees and Expenses of the Fund” and “Expense Example” on page 7 are deleted and replaced with the following:
FEES AND EXPENSES OF THE FUND
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Class N |
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Class I |
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Class Z |
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| Management Fee |
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0.45 |
% |
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0.45 |
% |
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0.45 |
% |
| Distribution and Service (12b‑1) Fees |
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0.25 |
% |
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None |
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None |
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| Other Expenses |
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0.35 |
% |
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0.25 |
% |
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0.20 |
% |
| Total Annual Fund Operating Expenses |
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1.05 |
% |
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0.70 |
% |
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0.65 |
% |
| Fee Waiver and Expense Reimbursements1 |
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(0.06 |
)% |
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(0.06 |
)% |
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(0.06 |
)% |
| Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursements1 |
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0.99 |
% |
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0.64 |
% |
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0.59 |
% |
| 1 |
AMG Funds LLC (the “Investment Manager”) has contractually agreed, through at least May 1, 2025, to waive management fees and/or pay or reimburse the Fund’s expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursements (exclusive of taxes, interest (including interest incurred in connection with bank and custody overdrafts and in connection with securities sold short), shareholder servicing fees, distribution and service (12b‑1) fees, brokerage commissions and other transaction costs, dividends payable with respect to securities sold short, acquired fund fees and expenses, and extraordinary expenses) of the Fund to the annual rate of 0.59% of the Fund’s average daily net assets (this annual rate or such other annual rate that may be in effect from time to time, the “Expense Cap”), subject to later reimbursement by the Fund in certain circumstances. In general, for a period of up to 36 months after the date any amounts are paid, waived or reimbursed by the Investment Manager, the Investment Manager may recover such amounts from the Fund, provided that such repayment would not cause the Fund’s Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursements |
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(exclusive of the items noted in the parenthetical above) to exceed either (i) the Expense Cap in effect at the time such amounts were paid, waived or reimbursed, or (ii) the Expense Cap in effect at the time of such repayment by the Fund. The contractual expense limitation may only be terminated in the event the Investment Manager or a successor ceases to be the investment manager of the Fund or a successor fund, by mutual agreement between the Investment Manager and the AMG Funds Board of Trustees or in the event of the Fund’s liquidation unless the Fund is reorganized or is a party to a merger in which the surviving entity is successor to the accounting and performance information of the Fund. |
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 $10,000 as an initial investment in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. It also assumes that your investment has a 5% total return each year and the Fund’s operating expenses remain the same. The Example includes the Fund’s contractual expense limitation through May 1, 2025. Although your actual costs may be higher or lower, based on the above assumptions, your costs would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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| Class N |
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$ |
101 |
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$ |
319 |
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$ |
565 |
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$ |
1,269 |
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| Class I |
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$ |
65 |
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$ |
209 |
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$ |
375 |
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$ |
856 |
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| Class Z |
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$ |
60 |
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$ |
193 |
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$ |
347 |
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$ |
796 |
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The first sentence of the second paragraph of the section titled “Additional Information About the Funds – AMG GW&K Municipal Enhanced Yield Fund – Additional Information About the Fund’s Expenses and Performance” beginning on page 22 is deleted and replaced with the following:
As discussed under “Fees and Expenses of the Fund” in the Fund’s summary section, the Investment Manager has contractually agreed, through at least May 1, 2025, to waive management fees and/or pay or reimburse the Fund’s expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursements (exclusive of taxes, interest (including interest incurred in connection with bank and custody overdrafts and in connection with securities sold short), shareholder servicing fees, distribution and service (12b‑1) fees, brokerage commissions and other transaction costs, dividends payable with respect to securities sold short, acquired fund fees and expenses, and extraordinary expenses) of the Fund to the annual rate of 0.59% of the Fund’s average daily net assets (this annual rate or such other annual rate that may be in effect from time to time, the “Expense Cap”), subject to later reimbursement by the Fund in certain circumstances.
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE