AMG GW&K Small/Mid Cap Fund Class N (GWGVX) Class I (GWGIX) Class Z (GWGZX) September 2018

Transcription

1 Class N (GWGVX) Class I (GWGIX) Class Z (GWGZX) September 2018 On February 27, 2017, The Fund's Principal Investment Strategies changed from a small cap growth investment strategy to one that primarily invests in common stock and preferred stock of U.S. small and mid-capitalization companies with either growth- or value-oriented characteristics. 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 (GWGVX) 02/24/ /1.11 I Share Class (GWGIX) 06/30/ /0.94 Z Share Class (GWGZX) 02/24/ /0.86 Russell 2500 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 May 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 02/24/2017. CALENDAR YEAR RETURNS GWGIX Benchmark Share Class I (GWGIX) Benchmark: Russell 2500 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 2500 Index Information Technology Industrials Consumer Discretionary Financials Information Technology Consumer Discretionary Financials Health Care Real Estate Materials Energy Utilities Consumer Staples Communication Services Other Equities Industrials Health Care 8.18 Real Estate 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 2500 Index Machinery Banks Equity Real Estate Investment Trusts (REITs) Software Health Care Equipment & Supplies Specialty Retail IT Services Electronic Equipment, Instruments & Components Chemicals Oil, Gas & Consumable Fuels in Top 10 Industries Portfolio holdings are subject to change at any time.

5 PORTFOLIO CHARACTERISTICS (EQUITY) Holdings Fund Russell 2500 Index Fund Assets (Mil.$) $140 Number of Holdings Weighted Avg. Market Cap (Mil.$) $6,235 $5,404 Median Market Cap (Mil.$) $5,643 $1,342 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 RPM International Inc 2.31 Fund Holdings Avg. Weight Total Return Fund Holdings Avg. Weight Total Return Exponent Inc 2.31 Five Below, Inc LogMeIn, Inc Zebra Technologies Corp, Class A 2.27 Gartner Inc, Class A 2.26 West Pharmaceutical Services Inc 2.10 Zebra Technologies Corporation Class A West Pharmaceutical Services, Inc Polaris Industries Inc MarketAxess Holdings Inc Eagle Materials Inc MarketAxess Holdings Inc 2.08 Five Below Inc 2.05 Burlington Stores Inc 2.02 ICU Medical Inc 1.89 Cavco Industries Inc 1.86 in Top 10 Holdings Gartner, Inc Cognex Corporation Quaker Chemical Corporation Cavco Industries, Inc Premier Inc. Class A Ultimate Software Group, Inc RBC Bearings Incorporated PriceSmart, Inc Signature Bank BankUnited, Inc Texas Capital Bancshares, Inc Acadia Healthcare Company, Inc Lithia Motors, Inc. 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 2500 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,

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. The Fund invests in growth stocks, which may be more sensitive to market movements because their prices tend to reflect future investor expectations rather than just current profits. Growth stocks may underperform value stocks during given periods. 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. Diversification does not guarantee a profit or protect against a loss in declining markets. Prior to February 27, 2017, the Fund's benchmark was the Russell 2000 Growth Index. 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. The Russell 2500 Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as "smid" cap. The Russell 2500 Index is a subset of the Russell 3000 Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2500 Index is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap opportunity set. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC PT552-SUP