Class N (SSEFX) Class I (SSEIX) Class C (SSECX) September 2018 FOR INVESTMENT PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION TO OR USE WITH THE GENERAL PUBLIC
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 (SSEFX) 04/10/2012-0.42 1.05 0.42 2.22 8.59 3.83-8.68 1.21/1.21 I Share Class (SSEIX) 04/10/2012-0.41 1.19 0.63 2.46 8.87 4.10-8.96 0.96/0.96 C Share Class (SSECX) 04/10/2012-0.50 0.88-0.15 1.47 7.80 3.06-7.91 1.96/1.96 Russell 2500 Index - -1.52 4.70 10.41 16.19 16.13 11.37 12.02 14.23 1 Russell Midcap Index - -0.64 5.00 7.46 13.98 14.52 11.65 12.31 14.01 1 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 800.835.3879 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. 1 Since the inception of the Class N shares on 04/10/2012.
CALENDAR YEAR RETURNS 40 % 30 % 20 % 10 % 0 % -10 % -20 % SSEFX SSEIX SSECX Benchmark 1 Benchmark 2 2013 2014 2015 2016 2017 36.45% 1.12% -10.82% 16.35% 10.41% 36.84% 1.35% -10.6% 16.6% 10.67% 35.47% 0.33% -11.51% 15.54% 9.57% 36.8% 7.07% -2.9% 17.59% 16.81% 34.76% 13.22% -2.44% 13.8% 18.52% Share Class N (SSEFX) Share Class I (SSEIX) Share Class C (SSECX) Benchmark 1: Russell 2500 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.
MPT STATISTICS SSEFX Benchmark: Russell 2500 Index 3 Years 5 Years Fund Benchmark Fund Benchmark Alpha Standard Deviation Sharpe Ratio Information Ratio Treynor Ratio (%) Upside Capture Ratio (%) Downside Capture Ratio (%) Beta R-Squared Tracking Error (%) Max Drawdown -5.23-5.77 11.79 11.21 12.42 11.57 0.66 1.37 0.27 0.94-1.27-1.13 8.52 3.66 64.46 57.79 102.19 102.95 0.91 0.91 75.33 71.92 5.93 6.66-10.94-11.72-22.13-15.34 As of: 09/30/2018 See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement.
SECTOR ALLOCATION (EQUITY) Sector Fund Russell 2500 Index Industrials 35.71% 15.04% Consumer Discretionary 22.08% 13.42% Information Technology 17.78% 15.95% Consumer Staples 6.22% 2.80% % 35.71 Industrials % 17.78 Information Technology Energy 6.02% 4.90% Health Care 5.46% 12.64% 6.22 % Consumer Staples Materials 3.55% 5.68% Communication Services 0.00% 0.52% Financials 0.00% 15.91% Real Estate 0.00% 9.65% Utilities 0.00% 3.49% Other Equities 0.00% 0.00% Cash & Other 3.18% 0.00% % 22.08 Consumer Discretionary % 6.02 Energy The sector allocation chart represents sectors at least 5% Portfolio holdings are subject to change at any time.
TOP 10 INDUSTRIES VS BENCHMARK Industry Fund Russell 2500 Index Machinery 21.18% 4.33% Commercial Services & Supplies 11.58% 1.61% IT Services 8.93% 2.31% Food Products 6.22% 1.37% Oil, Gas & Consumable Fuels 6.02% 3.52% Health Care Providers & Services 5.46% 1.77% Hotels, Restaurants & Leisure 4.77% 3.04% Textiles, Apparel & Luxury Goods 4.77% 1.13% Specialty Retail 4.58% 2.06% Electronic Equipment, Instruments & Components 4.28% 2.92% % in Top 10 Industries 77.79% 24.06% Portfolio holdings are subject to change at any time.
PORTFOLIO CHARACTERISTICS (EQUITY) Holdings Fund Russell 2500 Index Fund Assets (Mil.$) as of 09/30/2018 $295 Number of Holdings 22 2504 Weighted Avg. Market Cap (Mil.$) $6,788 $4,893 Median Market Cap (Mil.$) $5,123 $1,338 Weighted Avg. P/E (1-yr Forward EPS) 16.18 17.65 Weighted Avg. P/E (Trailing EPS) 18.16 20.24 PEG Ratio 1.42 1.39 Weighted Avg. P/B 2.62 2.31 EPS Growth (Trailing 3-yr %) 3.66% 8.59% EPS Growth (Trailing 5-yr %) -1.96% 10.83% Forward EPS Growth (1-yr %) 20.12% 14.88% Forward EPS Growth (Long Term %) 11.57% 12.17% Revenue Growth (Trailing 5-yr %) 4.79% 8.62% Return on Equity 13.43% 9.96% Weighted Avg. Dividend Yield 1.30% 1.46% Debt to Equity 139.77 85.47 Trailing 12-Months Portfolio Turnover 25.16% See important disclosures in the "Disclosures" section starting on the last or second to last page of this supplement.
TOP HOLDINGS (EQUITY) TOP 10 CONTRIBUTORS TOP 10 DETRACTORS Darling Ingredients Inc 6.22% Fund Holdings Avg. Weight Total Return Fund Holdings Avg. Weight Total Return Newfield Exploration Co 6.02% Clean Harbors Inc 5.98% Brink's Co 5.60% Centene Corp 5.46% Western Union Co 5.18% Timken Co 5.14% Trinity Industries Inc 4.97% Extended Stay America Inc 4.77% Hanesbrands Inc 4.77% % in Top 10 Holdings 54.11% Newfield Exploration Company 6.00% 23.87% Darling Ingredients Inc. 6.65% 14.91% Knowles Corp. 4.17% 21.52% Centene Corporation 5.86% 15.29% Clean Harbors, Inc. 5.87% 13.81% Hanesbrands Inc. 4.22% 20.62% Brink's Company 5.35% 12.01% Extended Stay America, Inc. 4.68% 10.52% Polaris Industries Inc. 4.80% 7.26% Western Union Company 5.58% 6.69% CommScope Holding Co., Inc. 2.40% -26.93% Diebold Nixdorf Incorporated 2.47% -22.40% Thor Industries, Inc. 3.93% -15.12% WestRock Co. 3.47% -10.49% Dycom Industries, Inc. 2.58% -12.19% AGCO Corporation 3.92% -6.15% Flowserve Corporation 4.43% -6.32% IDEX Corporation 4.02% -3.93% Timken Company 5.26% -3.95% OGE Energy Corp. 0.16% -0.41% Portfolio holdings and characteristics are subject to change at any time. The Top 10 Contributors and Top 10 Detractors are determined based on the stock's contribution to the Fund's return during the specified quarter.
MARKET CAP Market Cap Fund Russell 2500 Index Market Cap ($mm) 0-1,000 2.19% 8.65% Market Cap ($mm) 1,000-1,500 4.42% 6.38% Market Cap ($mm) 1,500-2,500 4.73% 12.83% Market Cap ($mm) 2,500-5,000 35.35% 29.61% Market Cap ($mm) 5,000-10,000 36.23% 34.91% Market Cap ($mm) 10,000-25,000 11.44% 7.62% Market Cap ($mm) 25,000-50,000 5.64% 0.00%
DISCLOSURES & GLOSSARY Investors should carefully consider the Fund s investment objectives, risks, charges and expenses before investing. For this and other information, please call 800.835.3879 or visit www.amgfunds.com 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 800.835.3879 or visit our website at www.amgfunds.com. 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. 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. Companies that are in similar businesses may be similarly affected by particular economic or market events; to the extent the Fund has substantial holdings within a particular sector, the risks associated with that sector increase. 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. 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. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. Unlike the Fund, the Indices are unmanaged, are not available for investment and do not incur expenses. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC. 093018 PT576-SUP