AMG Managers Fairpointe Mid Cap Fund

Transcription

1 AMG Managers Fairpointe Mid Cap Fund Class N (CHTTX) Class I (ABMIX) Class Z (ABIZX) March 2018

2 AMG Funds Overvie The largest netork of institutional quality boutique investment solutions through a single point of access Unrivaled access to insights of over 30 independent and autonomous investment managers More than 100 actively managed products covering the risk spectrum for investors searching beyond the index $66.2 billion Assets Under Management & Service SMA $13.2 billion Sub-advisory $10.9 billion Mutual Funds $42.1 billion Assets Under Management Funds: $35.7 billion SMA: $177.6 million Assets Under Service Funds: $6.3 billion SMA: $13.0 billion Sub-advisory: $10.9 billion As of March 31,

3 Fairpointe Capital Overvie Founded in 2011 Headquarters: Chicago, IL Disciplined, bottom-up, valuation-based equity manager 100% employee oned Majority omen-oned and a certified WBENC business $4.9 billion Assets Under Management & Service ESG Equities/Other $36.2 million Mid Cap Equities $4.9 billion Certified by The Women's Business Enterprise National Council hich is the largest third-party certifier of businesses oned, controlled, and operated by omen in the United States. As of March 31,

4 Mid Cap Investment Philosophy Fundamental Stock Pickers Fairpointe utilizes a disciplined, fundamental bottom-up, valuation-based process to select companies that are inefficiently priced relative to their earnings groth outlook over the next three to five years. Preference is given to companies ith products and services that make their customers more efficient or profitable, and are critical to their success. Desirable characteristics include: Compelling business model Effective management Financial strength Attractive valuation Parameters set by the subadviser are not a fundamental policy of the Fund and are subject to change at any time. 4

5 Investment Process 5

6 Mid Cap Investment Process Strict Adherence to Valuation Discipline Idea Generation Security Selection Portfolio Construction Sell Discipline Total Universe: ~1,100 stocks Market Cap: $2-29B* Revie Investment Risk Working Universe: ~200 stocks Revie Portfolio Risk Portfolio: ~ 50 stocks Revie List: stocks Ongoing Revie Inverse of Buy Discipline Bottom up approach In-depth knoledge of industries Over-reaction to short term disruptions Spin-offs Focus and valuation Focused business Top line groth Competitive advantage Effective management Financial strength Strong or improving balance sheet Attractive valuation P/E to groth rate Price to revenue Price to cash flo Relative P/E High conviction Concentrated portfolio Long-term investor, lo turnover Index agnostic Sector eight can be zero Sector eight max of 2.5x mid cap benchmark (S&P MidCap 400 Index or Russell MidCap Index) Maximum position 6% of portfolio Stock exceeds valuation Deteriorating fundamentals Replaced ith a more attractive idea Portfolio re-balancing based on valuation * Range of the Russell MidCap Index - May, 2017 Parameters set by the subadviser are not a fundamental policy of the Fund and are subject to change at any time. 6

7 Fund Portfolio Changes 1Q 2018 NEW POSITIONS ELIMINATED POSITIONS 1Q 2018 Meredith Corporation (MDP) Times Inc. (TIME)* *Time Inc. (TIME) as acquired by Meredith Corporation for $18.50 in cash. The holdings above are for informational purposes only and are not recommendations to buy or sell securities. The Fund is actively managed. Holdings and eightings are subject to change daily. 7

8 AMG Managers Fairpointe Mid Cap Fund Competitive Advantage Independent Investment Advisor 100% employee and majority omen-oned Investment Consistency Investment philosophy and process in place for over 18 years An actively managed, index agnostic mid cap strategy A high-conviction portfolio, ~ 50 names A long-term approach, average holding period over 5 years Team Continuity and Conviction Strong investment team ith over 29 years of investment industry experience In-depth knoledge in mid-cap investing Thyra Zerhusen started the strategy in 1999; Thyra, along ith Marie Lorden and Mary Pierson have managed the strategy as a team since 2004; Jean Orr CFA, Director of Research, joined in 2012; Brian Washkoiak CFA, Portfolio Manager, joined the team in 2015 All team members are invested in the Fund Past performance is no guarantee of future results. 8

9 Investment Team 9

10 Team Overvie 15 employees; 7 investment professionals ith an average of 25 years of industry experience (highlighted) Executive Team Thyra E. Zerhusen CEO, CIO Mary L. Pierson Co-CEO Marie L. Lorden PM Robert J. Lukaszeicz CFO Michelle J. Katauskas CCO Research Investment Management Compliance/ Operations Finance/ Administration Sales/ Marketing Director of Research Jean W. Orr, CFA Mid-Cap Equity ESG Equity CCO/Director of Operations Michelle J. Katauskas CFO/COO Robert J. Lukaszeicz,CPA Institutional Sales/ Consultant Relations Jeanine M. Meola Analysts Sara E. Hostalet, CFA Marie L. Lorden Mary L. Pierson Frances E. Tuite, CFA Brian M. Washkoiak,CFA Thyra E. Zerhusen Portfolio Managers Thyra E. Zerhusen Marie L. Lorden Mary L. Pierson Brian M. Washkoiak,CFA Sr. Portfolio Administrator Cynthia A. Bolender Portfolio Managers Thyra E. Zerhusen Mary L. Pierson Frances E. Tuite, CFA Portfolio Administrator Sophia A. Erskine Trader/Operations Specialist Tony M. Smith Operations/ IT Administrator Robert A. Godoy Executive Assistant Melinda L. Ogle 10

11 Fairpointe Capital Mid Cap Team Thyra E. Zerhusen, CEO and Chief Investment Officer Ms. Zerhusen is the principal founder of Fairpointe Capital LLC, CEO and Chief Investment Officer of the firm. She is part of the Investment Team, serving as lead portfolio manager for the Mid-Cap Equity and ESG Equity Strategies, including the AMG Managers Fairpointe Mid Cap Fund, the AMG Managers Fairpointe ESG Equity Fund, the Parvest Equity USA Mid Cap Fund, and institutional separate accounts. Prior to founding Fairpointe Capital, Ms. Zerhusen as the Chief Investment Officer for Mid-Cap Equities at a predecessor firm beginning in October of Ms. Zerhusen also spent four years at Talon Asset Management as Senior Vice President and Portfolio Manager, here she began managing the Aston (no AMG) Mid Cap Fund. She has managed the fund ithout interruption for eighteen years, thus preserving the long-term track record. Previously, she as employed by The Burridge Group as principal and portfolio manager for a tax-sensitive mid-cap product, and spent eleven years as Senior Investment Analyst at Sears Investment Management Company. Ms. Zerhusen started her career as an Investment Research Officer at Harris Trust & Savings Bank in Chicago and as responsible for indepth financial analysis of company fundamentals and industry trends. She has been a guest on Wall Street Week ith Louis Rukeyser, CNNfn s Mutual Fundamentals, Bloomberg, and CNBC. Ms. Zerhusen received an M.S. from the Siss Federal Institute of Technology ith concentrations in life sciences, biotechnology, and economics. She has an M.A. in Economics from the University of Illinois. She is also a member of the CFA Society. Primarily educated in Sitzerland, Ms. Zerhusen is fluent in English, French, and German. Marie L. Lorden, Co-Portfolio Manager of the AMG Managers Fairpointe Mid Cap Fund Ms. Lorden has served as a Research Analyst of the Fund since September 2003 and as a Portfolio Manager of the Fund since March Ms. Lorden is a co-founder of Fairpointe Capital and serves as a member of the Investment Team. Her investment responsibilities include investment research and portfolio management. Ms. Lorden has 23 years of experience in the financial industry. Prior to co-founding Fairpointe in 2011, Ms. Lorden served on this strategy as a member of the Mid Cap Investment Team at Optimum Investment Advisors for over seven years. Previously, Ms. Lorden held positions specializing in equity product analysis ith Zurich Insurance Group, Driehaus Capital Management, and The Burridge Group here she orked ith Ms. Zerhusen on a mid-cap strategy. Previously, she as a Project Manager at Radio Free Europe in Prague, here she as responsible for analysis of registration options for the Radio s international bureau locations. Ms. Lorden received a B.S. from Elmhurst College and an M.B.A. from the Keller Graduate School of Management. 11

12 Fairpointe Capital Mid Cap Team Mary L. Pierson, Co-CEO and Co-Portfolio Manager of the AMG Managers Fairpointe Mid Cap Fund Ms. Pierson has served as a Research Analyst of the Fund since May 2004 and as a Portfolio Manager of the Fund since March Ms. Pierson is a co-founder and Co-Chief Executive Officer of Fairpointe Capital and serves as a member of the Investment Team. Her responsibilities include investment research and portfolio management for the Mid-Cap Equity and ESG Equity Strategies. Ms. Pierson has 29 years of experience in the financial industry. Prior to co-founding Fairpointe in 2011, Ms. Pierson served on this strategy as a member of the Mid Cap Investment Team at Optimum Investment Advisors for seven years. Her prior experience includes fifteen years ith Harris Bancorp and Harris Futures Corporation, a holly-oned subsidiary. While serving as General Manager at Harris Futures Corporation, she as responsible for managing all aspects of the institution, hich operated as a financial futures broker. In prior positions at Harris, Ms. Pierson conducted in-depth international economic research and analysis of foreign exchange exposure issues, along ith currency trends and foreign political conditions related to investments. Ms. Pierson received a B.A. in Economics from DePau University, an M.A. in Economics from Northestern University, and an M.B.A. in Finance from The University of Chicago. Brian M. Washkoiak, CFA, Co-Portfolio Manager of the AMG Managers Fairpointe Mid Cap Fund Mr. Washkoiak has served as a Research Analyst of the Fund since January 2015 and as a Portfolio Manager of the Fund since February Mr. Washkoiak serves as a member of the Investment Team. His responsibilities include investment research and portfolio management for the Mid-Cap Equity and ESG Equity Strategies. Mr. Washkoiak has 23 years of experience in the financial industry. Prior to joining Fairpointe Capital LLC in 2015, Mr. Washkoiak managed a fund at BW Opportunity Partners LP, focusing on small and mid-cap investments. He also spent thirteen years as a research analyst and portfolio manager at Talon Asset Management, Inc. and as a member of the investment committee. At Talon, Mr. Washkoiak orked ith Ms. Zerhusen as an analyst and assistant portfolio manager on the mid-cap strategy. He started his career at Duff & Phelps, LLC as an analyst in its consulting group. Brian received a B.A. in Finance from Illinois State University and is a CFA charterholder. 12

13 Performance 13

14 Market Capitalization: Pure Mid Cap Pure Mid Cap <$1 Billion 1.1% >$20 Billion 2.5% $15-$20 Billion 3.5% $1-3 Billion 27.0% $12-15 Billion 12.3% $9-12 Billion 14.4% >$20 Billion $15-$20 Billion $12-15 Billion $9-12 Billion $6-9 Billion $3-6 Billion $1-3 Billion <$1 Billion $3-6 Billion 29.6% $6-9 Billion 9.6% Market Capitalization ($ Wtd.) AMG Managers Fairpointe Mid Cap Fund = $7.1 Billion S&P 400 Index ETF = $5.8 Billion Russell MidCap Index = $15.0 Billion as of 03/31/18. 14

15 Morningstar Rankings as of March 31, 2018 Morningstar Rankings as of March 31, 2018 Based on Total Return 1 Year 3 Year 5 Year 10 Year Since Inception AMG Managers Fairpointe Mid Cap Fund Class I Percentile Rank 96% 76% 47% 19% 8% Morningstar Mid Cap Value Category # of Funds The highest or most favorable Morningstar percentile rank is 1 and the loest percentile rank is 100. The top performing fund in a category ill alays receive a rank of 1. Various rating agencies categorize funds differently. Past performance is no guarantee of future results Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not arranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the AMG Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund ith at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on donard variations and rearding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund ithin this scale and rated separately, hich may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a eighted average of the performance figures associated ith its three-, five-and ten-year (if applicable) Morningstar Rating metric. Morningstar Rating is for the share class indicated only (see ticker); other share classes may have different performance characteristics. The Ranking may reflect the aiver of all or a portion of the fund s fees. Without such aiver, the Rankings may have been loer. 15

16 Holdings By Sector Index Agnostic, Actively Managed Portfolio % of Fund % of S&P MidCap 400 Index ETF* Sectors Over/Under 31.8% 11.9% Consumer Discretionary 19.9% 22.2% 17.6% Information Technology 4.6% 2.5% 0.0% Cash & Other 2.5% Active Share: 97% 5.6% 3.4% Consumer Staples 2.2% 0.0% 0.2% Telecommunications -0.2% As of March 31, *Benchmark for the Fund. The Fund is actively managed. Holdings and eightings are subject to change daily. 3.8% 4.3% Energy -0.5% 6.4% 7.1% Materials -0.7% 7.3% 8.1% Health Care -0.8% 14.5% 15.6% Industrials -1.1% 0.0% 5.5% Utilities -5.5% 0.0% 8.8% Real Estate -8.8% 5.8% 17.7% Financials -11.9% 16

17 Fund Portfolio Fundamentals as of March 31, 2018 Compelling Fund Portfolio Positioning Financial Strength Long-Term Debt as a % of Capitalization 35% 41% 40% 46% Strong Business Model Return on Equity 5-Year Average Long-Term Consensus Earnings Groth 13% 13% 14% 16% 10% 11% 12% 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2018 Calendar P/E Attractive Valuation 2018 P/E to Long-Term Earnings Groth Rate Price/Revenue (TTM) Source: Zacks AMG Managers Fairpointe Mid Cap Fund S&P 400 Index ETF Russell MidCap Index S&P 500 Index ETF 17

18 Prospectus Offer and Risk Disclosures Investors should carefully consider the Fund s investment objectives, risks, charges and expenses before investing. For this and other information, please call or visit amgfunds.com for a free Prospectus. Read it carefully before investing or sending money. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC. Please note: The Fund is subject to risks associated ith investments in mid-capitalization companies such as greater price volatility, loer trading volume, and less liquidity than the stocks of larger, more established companies. The Fund may invest in derivatives such as options and futures; the complexity and rapidly changing structure of derivatives markets may increase the possibility of market losses. Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, hich could result in significant market fluctuations. These risks are magnified in emerging markets. The Fund is subject to risks associated ith 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 S&P MidCap 400 provides investors ith a benchmark for mid-sized companies. The index, hich is distinct from the large-cap S&P 500 Index, measures the performance of mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, hich represent approximately 25% of the total market capitalization of the Russell 1000 Index. You cannot invest directly in an index. The S&P 500 Index is capitalization-eighted index of 500 stocks. The S&P 500 Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Unlike the Fund, the Index is unmanaged, is not available for investment and does not incur expenses. The SPDR S&P MIDCAP 400 ETF seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P MidCap 400 Index TM. The SPDR S&P 500 ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index. 18

19 Fund Portfolio Positioning as of March 31, 2018 Consumer Discretionary Financials Information Technology Adtalem Global Education 1.4% Cincinnati Financial 1.3% Akamai Technologies 3.3% BorgWarner 1.0% Northern Trust Corp 2.5% Cars.com 2.3% Cooper Tire & Rubber Co. 2.5% Raymond James Financial 2.1% Cree, Inc. 3.3% Gentex Corp 2.8% 5.8% Itron Inc. 1.4% Interpublic Group 1.6% Jabil Inc 2.6% LKQ Corp 2.4% Juniper Netorks 3.2% Lear Corp 1.7% Health Care Nuance Communications 1.9% Lions Gate Entertainment Cl A/B 3.0% Patterson Companies Inc 2.1% Teradata Corp 3.3% Mattel 3.2% Quest Diagnostics 1.8% Unisys Corporation 1.1% Meredith Corp 1.5% Varex Imaging Corp 0.7% 22.2% Ne York Times 3.2% Varian Medical Systems 2.6% Office Depot Inc 1.4% 7.3% Materials Scholastic 1.3% Domtar Corp. 2.7% Tegna 2.9% FMC Corporation 1.9% Whirlpool 2.0% Industrials Gerdau S A Sponsored ADR 1.8% 31.8% AGCO Corporation 1.9% 6.4% Arconic Inc 2.1% Consumer Staples Chicago Bridge & Iron 1.8% Cash & Equivalents Bunge Ltd. 2.2% Copa Holdings 2.5% Cash & Equivalents 2.5% Hormel Foods 3.4% Donaldson Inc 1.1% 2.5% 5.6% Stericycle 2.9% Werner Enterprises 2.2% 14.5% Energy McDermott Intl 2.1% TechnipFMC 1.8% 3.8% The holdings above are for informational purposes only and are not recommendations to buy or sell securities. The Fund is actively managed. Holdings and eightings are subject to change daily. 19

20 Appendix FOR INVESTMENT PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO OR USE WITH THE GENERAL PUBLIC 20

21 AMG Managers Fairpointe Mid Cap Fund QUARTERLY PERFORMANCE (%) AND EXPENSE RATIOS as of 03/31/2018 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 (CHTTX) 09/19/ /1.14 I Share Class (ABMIX) 07/06/ /0.89 Z Share Class (ABIZX) 09/29/ /0.81 S&P MidCap 400 Index Russell Midcap Index The performance data shon represents past performance. Past performance is not a guarantee of future results. Current performance may be loer or higher than the performance data quoted. The investment return and the principal value of an investment ill fluctuate so that an investor's shares, hen redeemed, may be orth more or less than their original cost. For performance information through the most recent month end please call or visit our ebsite at amgfunds.com. From time to time, the advisor has aived fees or reimbursed expenses, hich may have resulted in higher returns. The listed returns of the Fund are net of expenses, and the returns of the indices exclude expenses. 1 Since the inception of the Class N shares on 09/19/1994. For Investment Professional Use Only Not For Use With the General Public

22 AMG Managers Fairpointe Mid Cap Fund CALENDAR YEAR RETURNS Previous 10 years ending 12/31/ % 50 % 25 % 0 % -25 % -50 % CHTTX ABMIX Benchmark 1 Benchmark % 66.18% 23.02% -6.55% 16.44% 44.49% 9.73% % 24.06% 11.52% % 66.64% 23.32% -6.3% 16.76% 44.83% 10.03% % 24.36% 11.8% % 37.38% 26.64% -1.73% 17.88% 33.5% 9.77% -2.18% 20.74% 16.24% % 40.48% 25.48% -1.55% 17.28% 34.76% 13.22% -2.44% 13.8% 18.52% Share Class N (CHTTX) Share Class I (ABMIX) Benchmark 1: S&P MidCap 400 Index Benchmark 2: Russell Midcap Index See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement. For Investment Professional Use Only Not For Use With the General Public

23 AMG Managers Fairpointe Mid Cap Fund MPT STATISTICS CHTTX Benchmark: S&P MidCap 400 Index 3 Years 5 Years 10 Years Fund Benchmark Fund Benchmark Fund Benchmark Alpha Standard Deviation Sharpe Ratio Information Ratio Treynor Ratio (%) Upside Capture Ratio (%) Donside Capture Ratio (%) Beta R-Squared Tracking Error (%) Max Dradon As of: 03/31/2018 See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement. For Investment Professional Use Only Not For Use With the General Public

24 AMG Managers Fairpointe Mid Cap Fund SECTOR ALLOCATION (EQUITY) Sector Fund S&P MidCap 400 Index Consumer Discretionary 31.73% 11.99% Information Technology 22.25% 17.52% Industrials 14.46% 15.51% 14.46% Industrials Health Care 7.22% 8.10% Materials 6.39% 7.03% 31.73% Consumer Discretionary Financials 5.84% 17.79% Consumer Staples 5.64% 3.38% Energy 3.83% 4.27% 7.22% Health Care 5.84% Financials Real Estate 0.00% 8.81% Telecommunication Services 0.00% 0.15% Utilities 0.00% 5.44% Other Equities 0.00% 0.00% Cash & Other 2.64% 0.00% As of: 03/31/ % Information Technology 6.39% Materials 5.64% Consumer Staples Portfolio holdings are subject to change at any time. The sector allocation chart represents sectors at least 5% For Investment Professional Use Only Not For Use With the General Public

25 AMG Managers Fairpointe Mid Cap Fund TOP 10 INDUSTRIES VS BENCHMARK Industry Fund S&P MidCap 400 Index Media 13.46% 1.50% Auto Components 7.90% 0.91% Food Products 5.64% 2.18% Internet Softare & Services 5.62% 0.69% Capital Markets 4.51% 4.11% IT Services 4.36% 3.91% Health Care Providers & Services 3.93% 1.85% Electronic Equipment, Instruments & Components 3.92% 4.74% Energy Equipment & Services 3.83% 1.40% Health Care Equipment & Supplies 3.28% 3.94% % in Top 10 Industries 56.45% 25.23% As of: 03/31/2018 Portfolio holdings are subject to change at any time. For Investment Professional Use Only Not For Use With the General Public

26 AMG Managers Fairpointe Mid Cap Fund PORTFOLIO CHARACTERISTICS (EQUITY) Holdings Fund S&P MidCap 400 Index Fund Assets (Mil.$) $3,903 Number of Holdings Weighted Avg. Market Cap (Mil.$) $7,112 $5,848 Median Market Cap (Mil.$) $5,283 $4,031 Weighted Avg. P/E (1-yr Forard EPS) Weighted Avg. P/E (Trailing EPS) PEG Ratio Weighted Avg. P/B EPS Groth (Trailing 3-yr %) -7.91% 8.78% EPS Groth (Trailing 5-yr %) -0.38% 9.10% Forard EPS Groth (1-yr %) 4.70% 16.34% Forard EPS Groth (Long Term %) 9.70% 11.10% Revenue Groth (Trailing 5-yr %) 1.39% 6.66% Return on Equity 8.68% 13.58% Weighted Avg. Dividend Yield 1.55% 1.55% Debt to Equity Trailing 12-Months Portfolio Turnover 20.51% As of: 03/31/2018 See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement. For Investment Professional Use Only Not For Use With the General Public

27 AMG Managers Fairpointe Mid Cap Fund TOP HOLDINGS (EQUITY) TOP 10 CONTRIBUTORS TOP 10 DETRACTORS As of: 03/31/2018 As of: 03/31/2018 As of: 03/31/2018 Hormel Foods Corp 3.42% Fund Holdings Avg. Weight Total Return Fund Holdings Avg. Weight Total Return Akamai Technologies Inc 3.36% Cree Inc 3.28% Teradata Corp 3.25% Ne York Times Co, Class A 3.21% Juniper Netorks Inc 3.19% Mattel Inc 3.16% Stericycle Inc 2.91% TEGNA Inc 2.85% Gentex Corp 2.81% % in Top 10 Holdings 31.44% Ne York Times Company Class A 3.22% 30.54% Gerdau S.A. Sponsored ADR Pfd 1.77% 25.45% Cree, Inc. 3.25% 8.54% Akamai Technologies, Inc. 3.58% 9.13% Unisys Corporation 1.03% 31.90% Varian Medical Systems, Inc. 2.57% 10.35% Gentex Corporation 2.68% 10.39% Jabil Inc. 2.29% 9.78% Interpublic Group of Companies, Inc. 1.48% 15.26% Adtalem Global Education Inc. 1.48% 13.08% Patterson Companies, Inc. 2.52% % Office Depot, Inc. 1.81% % TEGNA, Inc. 3.05% % Mattel, Inc. 3.34% % Stericycle, Inc. 3.09% % Lions Gate Entertainment Corp Class A 1.73% % Juniper Netorks, Inc. 3.30% % Cooper Tire & Rubber Company 2.60% % Lions Gate Entertainment Corp Class B 1.60% % FMC Corporation 2.05% % 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. For Investment Professional Use Only Not For Use With the General Public

28 AMG Managers Fairpointe Mid Cap Fund MARKET CAP Market Cap Fund S&P MidCap 400 Index Market Cap ($mm) 0-1, % 0.00% Market Cap ($mm) 1,000-1, % 0.94% Market Cap ($mm) 1,500-2, % 7.04% Market Cap ($mm) 2,500-5, % 38.07% Market Cap ($mm) 5,000-10, % 46.66% Market Cap ($mm) 10,000-25, % 7.29% As of: 03/31/2018 For Investment Professional Use Only Not For Use With the General Public

29 AMG Managers Fairpointe Mid Cap Fund 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.amgfunds.com for a free prospectus. Read it carefully before investing or sending money. The performance data shon represents past performance. Past performance is not a guarantee of future results. Current performance may be loer or higher than the performance data quoted. The investment return and the principal value of an investment ill fluctuate so that an investor s shares, hen redeemed, may be orth more or less than their original cost. For performance information through the most recent month end please call or visit our ebsite at.amgfunds.com. From time to time, the advisor has aived fees or reimbursed expenses, hich 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 ith investments in mid-capitalization companies such as greater price volatility, loer trading volume, and less liquidity than the stocks of larger, more established companies. The Fund is subject to risks associated ith 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 may invest in derivatives such as options and futures; the complexity and rapidly changing structure of derivatives markets may increase the possibility of market losses. Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, hich could result in significant market fluctuations. 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 vies 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 ere or ill prove to be profitable, or that the investment recommendations e make in the future ill be profitable. Data Sources: BoNY, FactSet, Bloomberg and ICE Data Analytics. The S&P MidCap 400 provides investors ith a benchmark for mid-sized companies. The index, hich is distinct from the large-cap S&P 500, measures the performance of mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, hich represent approximately 25% of the total market capitalization of the Russell 1000 Index. You cannot invest directly in an index. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC. For Investment Professional Use Only Not For Use With the General Public PT451