A Diversified Portfolio* provides investors with a smoother ride over the long term. During sharp market downturns, a diversified portfolio has historically hurt investors less. Conversely, during market highs a diversified portfolio may not return as much as an index due to its balanced approach. The recovery periods are most notable in the charts below from the last two bear markets. The Diversified Portfolio took nearly one-fifth of the time to recover and nearly half the time to recover during the global financial crisis from the S&P 500 Index.
Do you remember what it felt like to be an investor in late 2008? 37 months is a long time to get back on a growth track.
9Diversified Portfolio and S&P 500® Index Returns
|S&P 500® Index||-33.8%|
Source: Barclays, FactSet, Standard & Poor’s. As of March 31, 2020. Data date range is January 1999-March 2020.
Bear Market defined as peak-to-trough decline of at least 20 percent. Standard Deviation (Std. Dev.): A measure of risk; it calculates the variability of returns by comparing the Fund’s return in each period with the average Fund return across all periods. Past performance is no guarantee of future results.
Investments in debt securities are subject to credit and interest rate risk. An increase in interest rates typically causes the value of bonds and other fixed income securities to fall.
Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.
Investments in small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity than investing in larger, more established companies.
Real estate investments are subject to factors such as changing general and local economic, financial, competitive and environmental conditions.
Alternative investments are speculative, subject to high return volatility and involve a high degree of risk including, but not limited to, the risks associated with leverage, derivative instruments such as options and futures, distressed securities, may be illiquid on a long term basis and short sales. There can be no assurance that these types of strategies will achieve their objectives or avoid substantial losses. Alternative investments may also be subject to significant fees and expenses.
Investments in emerging markets are subject to risks such as erratic earnings patterns, economic and political instability, changing exchange controls, limitations on repatriation of foreign capital and changes in local governmental attitudes toward private investment, possibly leading to nationalization or confiscation of investor assets.
AMG Distributors, Inc., a member of FINRA/SIPC.
You are now leaving the AMG Funds web site: The link you have selected is located on another web site. Please click OK below to leave the AMG Funds site and proceed to the selected site. AMG Funds does not endorse this web site, its sponsor, or any of the policies, activities, products or services offered on the site, or by any advertiser on the site. AMG Funds has no control of the content or data shown on this site, and while AMG Funds has no reason to doubt the reliability of the data shown, its accuracy is not guaranteed. Furthermore, AMG Funds takes no responsibility for the accuracy or factual correctness of any information posted to third party web sites.
Thank you for your interest in AMG Funds.OK