AMG Renaissance International Equity Fund Class N (RIEIX) Class I (RIESX) Class Z (RIELX) September 2017
AMG Funds Overvie The largest netork of institutional quality boutique investment solutions through a single point of access More than 100 actively managed products covering the risk spectrum for investors searching beyond the index Unrivaled access to insights of over 30 independent and autonomous investment managers $69.6 billion Assets Under Management & Service SMA $18.4 billion Sub-advisory $10.1 billion Mutual Funds $41.1 billion Assets Under Management Funds: $36.1 billion SMA: $235.7 million Assets Under Service Funds: $5.0 billion SMA: $18.1 billion Sub-advisory: $10.1 billion As of September 30, 2017. 2
Why Invest Internationally? 3
Benefits of Investing in International Equity Why International? Larger Opportunity Set Greater Groth Potential Attractive Entry Point Attractive Valuations International equity stocks may provide a meaningful enhancement to an already diversified equity portfolio. An allocation to international stocks offers: Access to companies not available in the domestic space Larger opportunity set outside the U.S. Exposure to faster economic groth opportunities outside the U.S. Includes both developed and emerging markets Economic groth opportunities can be further accelerated in emerging Potential to enhance diversification Potential for more attractive valuations relative to U.S. stocks Diversification does not guarantee a profit or protect against a loss in declining markets. 4
Why International? Larger Opportunity Set Why International? Larger Opportunity Set Greater Groth Potential Attractive Entry Point Attractive Valuations The opportunity set outside the U.S. is significantly larger, and has gron over time Over 60% of the orld stock market capitalization consists of non-u.s. companies The largest companies in many industries are located outside the U.S. World Stock Market Capitalization Non-U.S. Developed 49% U.S. 51% Non-U.S. Developed 62% U.S. 38% December 2001 September 2017 As of September 30, 2017. Source: Renaissance Research, FactSet, MSCI. 5
Why International? Greater Groth Potential Why International? Larger Opportunity Set Greater Groth Potential Attractive Entry Point Attractive Valuations Greater groth potential in developing and emerging markets Opportunity to take advantage of unprecedented demographic and political change Emerging economies account for more than 50% of orld GDP 70% 60% 50% 40% 30% 20% 10% Developed vs. Emerging GDP Percent of World, Based on Purchasing Poer Parity Forecasted 0% 1980 1986 1992 1998 2004 2010 2016 2022 Advanced Economies Emerging Markets As of September 30, 2017. Source: Renaissance Research, FactSet, MSCI. 6
Why International? Attractive Entry Point Why International? Larger Opportunity Set Greater Groth Potential Attractive Entry Point Attractive Valuations International developed and emerging market indices have underperformed relative to the U.S. recently Lagging markets may present an attractive entry point for investors Rebalancing portfolios toard lagging asset classes may reduce risk and potentially increase returns over time U.S. Indices vs. Global Markets 250 200 150 S&P 500 MSCI EAFE 100 50 MSCI Emerging Markets 0 2010 2011 2012 2013 2014 2015 2016 2017 As of September 30, 2017. Source: FactSet, MSCI, S&P. Past performance is no guarantee of future results. 7
Why International? Attractive Valuations Why International? Larger Opportunity Set Greater Groth Potential Attractive Entry Point Attractive Valuations Current valuation in non-u.s. markets are attractive The U.S. stock market trades among the highest P/E ratios in the orld Non-U.S. developed and emerging markets companies have significantly loer average earnings multiples than U.S. companies 25.0 20.0 Market Valuations Around the World Price-to-Earnings Ratio Trailing One Year Earnings 21.1x 16.7x International valuation levels suggest attractive return potential going forard 15.0 14.5x Investing at lo multiples may reduce the risk of investing near price peaks 10.0 5.0 0.0 -- MSCI MSCI USA USA Index MSCI EAFE Index MSCI Emerging MSCI EAFE MSCI Emerging Markets Index Index Index Markets Index As of September 30, 2017. Source: FactSet, MSCI. 8
AMG Renaissance International Equity Fund 9
Renaissance Investment Management Overvie Greater Cincinnati-based firm founded in 1978 AMG Affiliate since 1995 Manages $5.3 billion in assets 1 Dynamic approach seeks to identify groth opportunities in all market environments Portfolios diversified across the groth spectrum Investment process is consistently applied across all equity products, both domestic and international Experienced team investing in international space since 1994 1 As of September 30, 2017 10
Investment Philosophy Renaissance s investment approach is based on the philosophy that: A disciplined portfolio construction process may result in rates of return better than those of comparable benchmarks over time Quantitative strategy in conjunction ith qualitative assessment combines both the science and the art of investment management Synergies may exist by combining the best characteristics in a robust, systematic methodology Combined approach may add more value than quantitative or qualitative techniques alone High-quality groth companies typically exhibit: Positive changes in earnings expectations Attractive valuations Past and future groth prospects Portfolios combining the above characteristics may bring potential to outperform in both rising and falling markets 11
Investment Process The Science Multi-dimensional scoring system identifies stocks that exhibit a specific set of characteristics Employs advanced quantitative tools and techniques to identify companies: Whose groth is accelerating That are experiencing a positive change in earnings estimates and revisions Exhibiting valuations that have not caught up to their groth expectations Quantitative screening and scoring efficiently focuses research efforts Helps to remove emotion from the buy/sell decision The Art Focused fundamental overlay seeks to identify best candidates Traditional fundamental analysis utilized to seek to confirm that companies truly exhibit the desired characteristics: Earnings are high-quality and not short-term in nature Event risk is minimal Catalysts are in place for continued appreciation 12
Investment Process (continued) Quantitative Analysis - The Science Groth Quality Momentum Valuation Cash flo groth Profitability Change in consensus estimates Trailing earnings yield Net income groth Accruals ratio Change in non-consensus estimates Operating earnings yield Cash flo to stakeholders Price momentum Enterprise value/ebitd Qualitative Fundamental Analysis - The Art Process Confirm quantitative inputs Assess earnings quality Identify and understand: Ø Competitive strategy and position Ø Key drivers of earnings and cash flo Ø Near-term catalyststs Ø Corporate governance issues Ø Critical risk factors Risk Control Approximately 50-60 positions Equal-eighted positions (at cost) 40% maximum in any sector Scaleback at double-eight Maximum 33% exposure to emerging markets Rigorous sell discipline 13
Investment Process (continued) The Science and The Art in Action Ho Renaissance Buys Stocks Universe Approximately 2,800 non-u.s. companies Quality, Liquidity & GAAP/IFRS Conformity Developed and emerging markets American Depositary Receipts (ADRs) and U.S.- listed shares of foreign companies Renaissance Universe Good groth prospects Strong earnings momentum Reasonable valuations Fundamentals Competitive position Management strategy Quantitative Multi- Dimensional Source Quantitative Revie Build Portfolio Approximately 750 stocks Highest-quality companies Highly liquid issues Highest-Ranked Stocks Approximately 150 stocks Fund Portfolio Approximately 50-60 stocks Renaissance s best investment opportunities Equal-eighted positions at cost Max 33% exposure to emerging markets There is no guarantee that these investment strategies ill ork under all market conditions, and each investor should evaluate his or her ability to invest for the long term, especially during periods of donturns in the market. 14
Investment Process (continued) The Science and The Art in Action Ho Renaissance Sells Stocks Sell Discipline Stocks ranking in the loest three quintiles must be revieed for sale Characteristics of Sell-Ranked Stocks High valuation Rank 1 (Focus List) Sloing rates of earnings groth Negative earnings estimate revisions 2 3 Revieed for Sale 4 5 15
AMG Renaissance International Equity Fund Overvie Fund Subadvisor: Renaissance Investment Management Fund AUM: $2.75 million 1 Fund seeks long-term capital appreciation The Fund generally invests at least 80% of its net assets in equity securities including common and preferred stock and American Depositary Receipts (ADRs), and at least 40% of its net assets in investments of issuers located outside the United States and/or investments that expose the Fund to such issuers May invest up to 33% of its net assets in securities of issuers located in emerging markets countries Normally consists of beteen 50-60 securities May have exposure to and hold non-u.s. currencies Share Class 2 Ticker Inception Expense Ratio Gross/Net 3 Minimum Initial Investment Maximum Sales Load 12b-1 Fee Class N RIEIX 06/16/14 4.12%/1.25% $2,000 0.25% Class I RIESX 06/16/14 3.82%/0.95% $100,000 Class Z RIELX 06/16/14 3.72%/0.85% $5,000,000 1 As of September 30, 2017. 2 Prior to October 1, 2016, the Fund s N, I and Z shares ere knon as Investor, Service and Institutional, respectively. 3 The Fund s Investment Manager has contractually agreed, through at least May 1, 2018, to limit Fund operating expenses. The net expense ratio reflects this limitation, hile the gross expense ratio does not. Please refer to the Fund s Prospectus for additional information on the Fund s expenses. 16
What This Fund Will Provide Investors Access to an experienced firm that has been investing in the international space since 1994 Additional equity diversification through exposure to non-u.s. companies Includes both developed and emerging markets Potentially higher economic groth opportunities through emerging markets A combined approach that may add more value than quantitative or qualitative techniques alone Groth equity (GARP) style to complement value-oriented international investments Potential long-term capital appreciation 17
Appendix 18
ADR vs. Ordinary Shares Over time there are negligible differences in return and risk characteristics beteen the ADR and MSCI indices This suggests the supposed advantages of ordinaries is likely overstated Mutual fund investing in ADRs (American Depositary Receipts) is comparable to investing in ordinary shares of foreign stocks ADRs can offer advantages in trading and operational efficiencies International Index Comparison BNY Mellon Classic ADR Index and MSCI ACWI ex USA Annualized Returns BNY Mellon Classic ADR MSCI ACWI ex USA Annualized Standard Deviation BNY Mellon Classic ADR MSCI ACWI ex USA R-Squared MSCI ACWI ex USA vs. BNY Mellon Classic ADR 3 Years 1.2% 0.8% 5 Years 7.9% 7.2% 7 Years 7.3% 6.7% 10 Years 1.1% 1.1% 3 Years 11.4% 10.9% 5 Years 10.9% 10.4% 7 Years 15.2% 14.4% 10 Years 20.3% 20.1% 3 Years 0.99 5 Years 0.98 7 Years 0.99 10 Years 0.99 Past performance is no guarantee of future results. R-Squared: Measures ho much of the performance of the Fund is explained by the index. Standard Deviation: A measure of risk; it calculates the variability of returns by comparing the Fund s return in each period from the average Fund return across all periods. As of September 30, 2017. Source: Renaissance Research, FactSet, MSCI, BNY Mellon. An investor cannot invest directly in an index. 19
Portfolio Manager and Investment Team Biographies Portfolio Manager Joe G. Bruening, CFA, Senior Partner and Portfolio Manager Mr. Bruening joined Renaissance in 1998 and is the Lead Portfolio Manager for the firm s international equity portfolios. Prior to assuming his current portfolio management duties, Mr. Bruening served as a Securities Trader, a role in hich he had 10 years prior experience as a trader on Fifth Third Bank. In November 2000, Mr. Bruening as promoted to Vice President, as made a Partner in 2003, and most recently a Senior Partner in 2010. Mr. Bruening holds a Master of Business Administration from Xavier University and is a cum laude graduate of the University of Cincinnati here he received his Bachelor s Degree in Finance and Real Estate. He is a member of the CFA Society of Cincinnati and the CFA Institute. Investment Team Andre M. Temming, CFA, Research Analyst and Partner Mr. Temming joined Renaissance in 2008 ith six years of prior investment experience. He is responsible for company research and analysis of current and potential portfolio holdings. Prior to joining Renaissance, Mr. Temming as an Associate Portfolio Manager and Research Analyst at Cincinnati Financial Corporation here he as part of a team that managed the firm s equity portfolios. Mr. Temming graduated from Xavier University and earned a Bachelor of Science in Business Administration ith a concentration in Finance. He also holds a Master of Business Administration ith a concentration in Accounting from Xavier University. Mr. Temming obtained his CFA Charter in 2006. Michael J. Streitmarter, CFA, Research Analyst Mr. Streitmarter joined Renaissance in 2008. He is responsible for company research and analysis of current and potential portfolio holdings. Prior to starting his current role in 2014, Mr. Streitmarter served as a Portfolio Administrator. He is a graduate of the Fisher College of Business, Ohio State University, ith a Major in Finance. Mr. Streitmarter obtained his CFA Charter in 2013. Eric M. Aber, CFA, Research Analyst Mr. Aber joined Renaissance in 2009. He is primarily responsible for research and testing of the quantitative aspect of the investment process. Prior to joining Renaissance, Mr. Aber served as the Director of Quantitative Equity and Portfolio Manager for the ZAR Fund Group and as a Systems Engineer for Boeing. Mr. Aber graduated from Ohio University here he earned a Bachelor of Science in Computer Science. He also holds a Master of Science in Finance from the University of Cincinnati. Mr. Aber obtained his CFA Charter in 2012. 20
Disclosures 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 amgfunds.com for a free prospectus. Read it carefully before investing or sending money. The Fund is subject to the risks associated ith 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 toard private investment, possibly leading to nationalization or confiscation of investor assets. Investments in foreign securities, even though publicly traded in the United States, may involve risks, hich are in addition to those inherent in domestic investments. The Fund is subject to currency risk resulting from fluctuations in exchange rates that may affect the total loss or gain on a non-u.s. Dollar security hen converted back to U.S. Dollars. The Fund invests in groth stocks, hich may be more sensitive to market movements because their prices tend to reflect future investor expectations rather than just current profits. The BNY Mellon Classic ADR Index is a capitalization-eighted U.S. Dollar total return index that includes all U.S. Exchange-listed or OTC-traded Depositary Receipts ith the exception of Grey Market Securities, Ne York Shares and Global Registered Shares. The MSCI USA Index is a free float-adjusted market capitalization index that is designed to measure large- and mid-cap U.S. equity market performance. The MSCI USA Index is member of the MSCI Global Equity Indices and represents the U.S. equity portion of the global benchmark MSCI ACWI Index. The MSCI All Country World Index (ACWI) ex USA is a free float-adjusted market capitalization eighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 45 country indices comprising 22 developed and 24 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, Ne Zealand, Noray, Portugal, Singapore, Spain, Seden, Sitzerland, and the United Kingdom. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taian, Thailand, Turkey and the United Arab Emirates. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index consists of the folloing 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, Ne Zealand, Noray, Portugal, Singapore, Spain, Seden, Sitzerland and the United Kingdom. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the folloing 24 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taian, Thailand, Turkey and the United Arab Emirates. All MSCI data is provided as is. The products described herein are not sponsored or endorsed and have not been revieed or passed on by MSCI. In no event shall MSCI, its affiliates, or any MSCI data provider have any liability of any kind in connection ith the MSCI data or the products described herein. Copying or redistributing the MSCI data is strictly prohibited. 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 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. 21 093017 PT297