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An Investment Built for Full Market Cycles

The current bull market is truly something to behold. As of August 2018, it was officially the longest in history. Surpassing the "roaring 90s" bull market, which lasted 113 months, last year. To put that in historical context, this bull market has lasted almost three years longer than the post-World War II run, which many view as the most fruitful time in American history.

For many investors, it can be hard to remember the volatile up and down nature of the markets. As the below chart illustrates, the S&P 500 has reached new highs in a generally tranquil environment since 2009. 

Inside the Current Bull Market

Average annual returns (%) (as of 03/31/19)

  Inception 1Yr 3Yr 5Yr 10Yr Since Incpt
YACKX (Class I) 07/06/92 11.74 11.82 8.69 16.34 10.38
S&P 500® - 9.50 13.51 10.91 15.92 9.64
Russell 1000® Value Index - 5.67 10.45 7.72 14.52 9.76

Expense Ratios (gross/net): Class I 0.76% / 0.76%

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. 

Experience Through Market Cycles

Older investors, that have lived through multiple market cycles, know that times are not always this good. Preparing for that inevitability ahead of time is a key to long-term success. The AMG Yacktman Fund (YACKX), with a history of success through market cycles, may help investors as they prepare. 

To demonstrate that point, the below chart zooms out from the current bull market and looks at how a hypothetical $1M investment fared since the early 1990s in both the S&P 500 and the AMG Yacktman Fund.

Source: FactSet. As of March 31, 2019. Performance measured from first full calendar year of performance. Fund inception date was July 6, 1992.

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.

Winning by Not Losing

A closer look at the the performance of the Yacktman Fund vs. the S&P 500 Index during specific market phases from 2000 to today.  

Source: FactSet. As of March 31, 2019. The information shown is for the time periods indicated. Performance for other periods may differ, possibly significantly.

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.

Proven Risk-Reward Profile in All Markets

Robust, normal or down. What type of market do you think we are in right now? What type of market do you think we will be in at the end of 2019? Depending on your answer, the 5-year rolling returns of the Yacktman Fund during different market types may be helpful. 

The below chart shows how the Fund has performed in up and down markets. Generally, slightly smaller gains in up markets and smaller loses in down markets. 

Source: FactSet. As of March 31, 2019. Down markets: 5-yr average return below 0%, Normal markets: 5-yr average return 0%-10%, Robust markets: 5-yr average return above 10%.

1 Inception date of Yacktman Fund (YACKX) is 07/06/1992.

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.

The Power of Recovery

To make the performance of the AMG Yacktman Fund more tangible we looked at how a hypothetical $1M investment would do during recent market types. From one bubble peak to the next...  

03/10/2000 - 10/31/2007 YACKX S&P 500 Index
Hypothetical Growth of $1M $3,153,199 $1,253,768
Drawdown $984,925 $573,641
Recovery (Months below $1M) 1 68

Source: AMG Funds, Standard & Poor's, FactSet. As of March 31, 2019.

Past performance is no guarantee of future results.

11/01/2007 - 12/31/2018 YACKX S&P 500® Index
Hypothetical Growth of $1M $3,033,225 $2,337,147
Drawdown $539,042 $451,810
Recovery (Months below $1M ) 10 59

Source: AMG Funds, Standard & Poor's, FactSet. As of March 31, 2019.

Past performance is no guarantee of future results.

Redefining the Active Standard

Historically outperforming the S&P 500 Index, as the Fund has done over certain periods, doesn't generally happen with managers that are "closet indexers". Identifying Active managers that are truly active could be a plus. 

Source: AMG Funds and Morningstar. Data as of December 31, 2018.

1Tracking error is the difference between the return on a portfolio or fund, and the benchmark it is expected to mirror (or track). This chart calculated tracking error from 1/1/04-12/31/18. The calculations included all large cap funds. Extended performance was used for some funds.
2 Active Share is based on data as of 12/31/18.
3 Active Share is a measure of the percentage of stock holdings in a manager’s portfolio that differ from the benchmark index.
“Active Share: A Misunderstood Measure in Manager Selection” Lazard, February 2014.

Flexibility in Practice - Adapt as Markets Change

The AMG Yacktman Fund has had a historically high conviction, benchmark agnostic portfolio. They have also been able to use their cash and cash equivalents holdings strategically depending on their view of the markets. 

Source: Morningstar and FactSet. As of March 31, 2019. Cash and cash equivalent level sources are Morningstar (1992-2005) and AMG Funds (2005-2019).

Past performance is no guarantee of future results.

For more information about the AMG Yacktman Fund (YACKX) please contact your AMG Funds representative or continue to research the strategy below. 


IMPORTANT INFORMATION

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 with investments in debt securities, such as default risk and fluctuations in the perception of the debtor's ability to pay its creditors. Changing interest rates may adversely affect the value of an investment. An increase in interest rates typically causes the value of bonds and other fixed income securities to fall.

High-yield bonds (also known as “junk bonds”) may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities. These securities are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. The issuers of the Fund's holdings may be involved in bankruptcy proceedings, reorganizations, or financial restructurings, and are not as strong financially as higher-rated issuers.

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 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 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.

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.

Growth stocks 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. Value stocks 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 ensure a profit or protect against a loss. This does not constitute investment advice or an investment recommendation.

The S&P 500® Index is a capitalization-weighted 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.

The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price/book ratios and higher forecasted growth values. The stocks are also members of the Russell 3000® Growth Index.

The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price/book ratios and lower forecasted growth values. The stocks are also members of the Russell 3000® Value Index.

The CBOE Volatility Index (VIX) is a measure of expected price fluctuations in the S&P 500 Index options over the next 30 days.

The indices are unmanaged, are not available for direct investment and do not incur expenses.

Not FDIC Insured | May Lose Value | Not Bank Guaranteed

AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC.

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