FQ Tax-Managed U.S. Equity Fund

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MFQTX Morningstar Risk-Adjusted Ratings as of September 30, 2008 Overall Rating 3 Years 5 Years 10 Years Category (of 1719 Funds) (of 1719 Funds) (of 1353 Funds) N/A Large Blend

Objective

Where this mutual fund may fit as part of your asset allocation

• Looking to gain exposure to high-quality U.S. companies
• Seeking an equity portfolio that minimizes the impact of taxes
• Willing to accept a higher degree of risk for the opportunity of higher potential returns
• Willing to accept short-term volatility of returns

Focus

The Managers AMG First Quadrant Tax-Managed U.S. Equity Fund seeks to achieve superior long-term after-tax returns for investors by investing primarily in a diversified portfolio of equity securities (generally common and preferred stocks) of large U.S. companies. This mutual fund invests primarily in securities that reflect the characteristics of the Russell 3000 Index in terms of industry, earnings growth, valuation, and similar measurements.

First Quadrant L.P. ("First Quadrant") strives to minimize taxable distributions to shareholders in this mutual fund. First Quadrant may apply a variety of tax-sensitive investment techniques including:

• Investing in stocks that pay below-average dividends
• Employing a buy-and-hold strategy designed to avoid realizing short-term capital gains and defer as long as possible the realization of long-term capital gains
• Realizing losses on specific securities or specific tax lots of securities to offset realized gains.

Fund Facts (as of 9/30/2008)

Learn more about share classes offered by Managers Investment Group.

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 download a free prospectus. Read it carefully before investing or sending money.

The performance shown represents past performance and 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. From time to time the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields on the Fund are net of expenses and the returns and yields on the indices exclude expenses. Current performance of the Fund may be lower or higher than the performance quoted.

The Fund invests in large-capitalization companies that may underperform other stock funds (such as funds that focus on small and medium capitalization companies) when stocks of large-capitalization companies are out of favor.

Class C shares convert to an equal dollar value of Class A shares at the end of the tenth year after purchase.

Annual net expense ratios as of the current prospectus dated 03/01/2008 adjusted for the reduction in custodial fees, which took effect on 07/01/2007. The Investment Manager has contractually agreed, through at least March 1, 2009, to limit Total Annual Fund Operating Expenses (exclusive of taxes, interest, brokerage commissions, acquired fund expenses, and extraordinary items) to the expense cap ratios listed of each class' average daily net assets.

Unlike the Fund, the Index is unmanaged, is not available for investment and does not incur expenses. Please see Index Definitions for all our funds' benchmarks.

The Russell 3000^® Growth Index is a trademark of Russell Investments. Russell^® is a trademark of Russell Investments. An investment cannot be made directly into an Index.

For each fund with 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 downward variations and rewarding 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 within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with 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 waiver of all or a portion of the fund's fees. Without such waiver, the Rankings may have been lower.

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