AMG Veritas China Fund Reports 0.33% Return in Q2 2025

The AMG Veritas China Fund (Class N) recorded a return of 0.33% for the second quarter of 2025, falling short of its primary benchmark, the MSCI China Index, which achieved a return of 2.01% during the same period. This performance reflects ongoing shifts within China’s economic landscape, particularly a strategic pivot from low-cost manufacturing to a focus on innovation and self-reliance.

Sector Performance Highlights

In the second quarter, significant advancements were noted in the health care and premium consumer sectors, alongside technology, indicating a broader economic transformation. The Chinese government has increasingly emphasized high-quality growth driven by intellectual property and innovative capabilities. The AMG Veritas China Fund aims to capitalize on this trend by investing in businesses that demonstrate strong innovation, scalable business models, and robust balance sheets.

For the 12-month period ending June 30, 2025, the fund’s performance was closely monitored as it navigated a rapidly changing investment environment. The focus on high-quality businesses is expected to yield long-term benefits, aligning with the country’s strategic goals.

Investment Strategy and Future Outlook

AMG Veritas has maintained a disciplined approach to investment, prioritizing companies that not only exhibit competitive advantages but also have a scalable approach to business growth. The fund’s management believes that this strategy will better position it against market fluctuations and enhance resilience in the face of economic uncertainties.

As the fund continues to adapt to the evolving market dynamics, stakeholders are encouraged to stay informed about ongoing developments that could influence future performance. The emphasis on sectors such as health care and technology suggests a commitment to aligning investments with China’s broader economic objectives.

Overall, the AMG Veritas China Fund’s recent performance underscores the importance of strategic investment choices in a transforming economic landscape. Fund managers remain optimistic about future opportunities, particularly in high-growth sectors that align with national policy shifts.