AMG To Liquidate The AMG FQ Global Alternatives Fund
By DailyAlts Staff On June 26, the AMG Funds I trust filed paperwork with the SEC announcing its plan to liquidate the AMG FQ Global Alternatives Fund (MUTF: MGAAX ), a global tactical allocation fund, on or about July 31. The fund, which launched in 2006, has a one-star rating from Morningstar. Its -5.98% year-to-date returns through June 30 ranked in the bottom 2% of all funds in Morningstar’s Multialternative category. The decision to liquidate was made at a June 25 meeting of the AMG Funds I Board of Trustees. Effective the very next day, the fund stopped accepting most new investments and started selling its portfolio investments. Proceeds from the sales are being held in cash and cash equivalents and will be distributed to shareholders on the liquidation date. The fund sought to outperform the Citigroup 1-month T-bill index, but routinely failed to do so. Since launching on March 30, 2006, the AMG FQ Global Alternatives Fund has dramatically underperformed. In addition to ranking in the bottom 2% of all Multialternative funds in 2015, the fund generated negative annual returns in 2010, 2011, 2013, and 2014; and lagged the category average by 170 basis points in 2012. A $10,000 investment in the AMG FQ Global Alternatives Fund at its inception would have dwindled in value to $8,829.53 as of June 25, 2015, the day the fund’s Board of Trustees decided to liquidate. By comparison, a $10,000 investment in the average fund in Morningstar’s Multialternative category would have grown to $11,408.56 over that same time. As of June 30, the fund’s assets stood at slightly over $15.9 million. Investors with automatic investment plans through IRAs and 401(k)s may still buy shares until the liquidation date. Shareholders who don’t hold their shares in tax-advantaged accounts may have taxable gains or losses upon liquidation. Share this article with a colleague