AMG River Road Focused Absolute Value Fund

Transcription

1 Class N (ARRFX) Class I (AFAVX) Class Z (ARRZX) September 2018 FOR INVESTMENT PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO OR USE WITH THE GENERAL PUBLIC

2 QUARTERLY PERFORMANCE () AND EXPENSE RATIOS as of 09/30/2018 Inception Date 1 Mo. Previous Quarter YTD 1 Year 3 Years 5 years 10 Years Life of Fund Gross/Net Expense Ratio () N Share Class (ARRFX) 11/03/ /1.00 I Share Class (AFAVX) 11/03/ /0.75 Z Share Class (ARRZX) 09/29/ /0.71 Russell 3000 Value Index The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month end please call or visit our website at amgfunds.com. From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns of the Fund are net of expenses, and the returns of the indices exclude expenses. The Fund's Investment Manager has contractually agreed, through at least March 1, 2019, to limit fund operating expenses. The net expense ratio reflects this limitation, while the gross expense ratio does not. Please refer to the Fund's prospectus for additional information on the Fund's expenses. 1Since the inception of the Class N shares on 11/03/2015. CALENDAR YEAR RETURNS ARRFX AFAVX Benchmark Share Class N (ARRFX) Share Class I (AFAVX) Benchmark: Russell 3000 Value Index See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement.

3 SECTOR ALLOCATION (EQUITY) Sector Fund Russell 3000 Value Index Financials Communication Services Health Care Health Care Information Technology Financials Consumer Discretionary Consumer Staples Energy Real Estate Information Technology Industrials Materials Communication Services 8.78 Consumer Discretionary Utilities Other Equities Cash & Other The sector allocation chart represents sectors at least 5 Portfolio holdings are subject to change at any time.

4 TOP 10 INDUSTRIES VS BENCHMARK Industry Fund Russell 3000 Value Index Media Capital Markets Diversified Financial Services Food Products Health Care Providers & Services Banks Insurance IT Services Hotels, Restaurants & Leisure Oil, Gas & Consumable Fuels in Top 10 Industries Portfolio holdings are subject to change at any time.

5 PORTFOLIO CHARACTERISTICS (EQUITY) Holdings Fund Russell 3000 Value Index Fund Assets (Mil.$) $30 Number of Holdings Weighted Avg. Market Cap (Mil.$) $72,131 $116,988 Median Market Cap (Mil.$) $9,865 $1,777 Weighted Avg. P/E (1-yr Forward EPS) Weighted Avg. P/E (Trailing EPS) PEG Ratio Weighted Avg. P/B EPS Growth (Trailing 3-yr ) EPS Growth (Trailing 5-yr ) Forward EPS Growth (1-yr ) Forward EPS Growth (Long Term ) Revenue Growth (Trailing 5-yr ) Return on Equity Weighted Avg. Dividend Yield Debt to Equity Trailing 12-Months Portfolio Turnover See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement.

6 TOP HOLDINGS (EQUITY) TOP 10 CONTRIBUTORS TOP 10 DETRACTORS Berkshire Hathaway Inc, Class B 7.12 Fund Holdings Avg. Weight Total Return Fund Holdings Avg. Weight Total Return Brookfield Asset Management Inc, Class A 4.84 Premier Inc. Class A Hostess Brands, Inc. Class A Gci Liberty Inc 4.78 Sabre Corp 4.73 Comcast Corp, Class A 4.53 World Fuel Services Corporation Berkshire Hathaway Inc. Class B Kraft Heinz Company General Motors Company General Electric Company Discovery Inc 4.42 Starbucks Corp 4.09 Hostess Brands Inc, Class A 3.77 World Fuel Services Corp 3.64 Premier Inc, Class A 3.64 in Top 10 Holdings Discovery, Inc. Class C GCI Liberty, Inc. Class A Allergan plc Advance Auto Parts, Inc Expedia Group, Inc Brookfield Asset Management Inc. Class A Comcast Corporation Class A Nielsen Holdings Plc Wells Fargo & Company Liberty Media Corp. Series C Liberty SiriusXM Cars.com, Inc Ventas, Inc FGL Holdings Class A Portfolio holdings and characteristics are subject to change at any time. The Top 10 Contributors and Top 10 Detractors are determined based on the stock's contribution to the Fund's return during the specified quarter.

7 MARKET CAP Market Cap Fund Russell 3000 Value Index Market Cap ($mm) 0-1, Market Cap ($mm) 1,000-1, Market Cap ($mm) 1,500-2, Market Cap ($mm) 2,500-5, Market Cap ($mm) 5,000-10, Market Cap ($mm) 10,000-25, Market Cap ($mm) 25,000-50, Market Cap ($mm) 50, , Market Cap ($mm) 100, , Market Cap ($mm) 200,

8 DISCLOSURES & GLOSSARY Investors should carefully consider the Fund s investment objectives, risks, charges and expenses before investing. For this and other information, please call or visit for a free prospectus. Read it carefully before investing or sending money. The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month end please call or visit our website at From time to time, the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields of the Fund are net of expenses, and the returns and yields of the indices exclude expenses. The Fund is subject to risks associated with investments in small-capitalization companies, such as erratic earnings patterns, competitive conditions, limited earnings history and a reliance on one or a limited number of products. The Fund is subject to risks associated with investments in mid-capitalization companies such as greater price volatility, lower trading volume, and less liquidity than the stocks of larger, more established companies. Active and frequent trading of a fund may result in higher transaction costs and increased tax liability. A greater percentage of the Fund s holdings may be focused in a smaller number of securities which may place the Fund at greater risk than a more diversified fund. 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. The Fund is subject to the risks associated with investments in emerging markets, 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. The Fund is subject to special risk considerations similar to those associated with the direct ownership of real estate. Real estate valuations may be subject to factors such as changing general and local economic, financial, competitive, and environmental conditions. The Fund invests in value stocks, which may perform differently from the market as a whole and may be undervalued by the market for a long period of time. Top Ten Holdings: Mention of a specific security should not be considered a recommendation to buy or solicitation to sell that security. Future Holdings Risk: Any sectors, industries or securities discussed should not be perceived as investment recommendations. The views expressed represent the opinions of AMG Funds LLC and are not intended as a forecast or guarantee of future results. Any securities discussed may no longer be held in an account s portfolio. Both current and future portfolio holdings are subject to risk. It should not be assumed that any of the securities transactions discussed were or will prove to be profitable, or that the investment recommendations we make in the future will be profitable. Data Sources: BoNY, FactSet, Bloomberg and ICE Data Analytics.

9 The Russell 3000 Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3,000 companies with lower price-to-book ratios and lower forecasted growth values. The Index reflects no deduction of fees, expenses, or taxes. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC PT504-SUP