The AMG TimesSquare International Small Cap Fund (Class I) exhibited impressive financial results for the second quarter of 2025. The fund recorded a noteworthy return of 20.36%, significantly surpassing its benchmark, the MSCI EAFE Small Cap Index, which posted a return of 16.59% for the same period. This strong performance was primarily attributable to the fund's adept stock selection strategies. Over the trailing 12 months ending June 30, 2025, the fund generated a return of 24.49%, further highlighting its consistent growth.
The second quarter of 2025 was marked by significant market movements, including an increase in U.S. Treasury yields and a decline in the value of the U.S. Dollar against major global currencies. These macroeconomic factors introduced a degree of uncertainty into the financial markets, prompting investor caution. Despite these headwinds, the AMG TimesSquare International Small Cap Fund managed to navigate the turbulent landscape effectively, reinforcing its resilience and strategic strength.
A key driver of the fund's outperformance was its strategic approach to investment selection. The management team's ability to identify and invest in promising small-cap companies within the international market proved instrumental in generating superior returns. This meticulous stock-picking process enabled the fund to capitalize on growth opportunities even amidst broader market anxieties concerning economic indicators and currency fluctuations.
The fund's success in the second quarter of 2025, particularly in outperforming its benchmark, underscores its robust investment philosophy and the expertise of its management. This achievement, set against a backdrop of rising U.S. Treasury yields and a weakening U.S. Dollar, highlights the fund's capacity to deliver substantial gains through active and discerning portfolio management, demonstrating its resilience and strategic positioning in the global small-cap market.