FPA Crescent Fund

Objective:

The Contrarian Value Strategy, including FPA Crescent Fund, endeavors to provide, over the long-term, an equity-like return with less risk than the stock market.

Philosophy:

Absolute value investors. We seek genuine bargains rather than relatively attractive securities.

Alignment of interests. We invest our money alongside yours, and we act as stewards of our shared capital.

Broad mandate. We invest across the capital structure, asset classes, market caps, industries, and geographies. We are willing to hold cash.

Long-term focus. We believe the best way to accomplish our goals is to accept short-term underperformance in exchange for long-term success.

Macroeconomic view. We incorporate an understanding (sometimes limited) of the economic environment.

Volatility. If we have performed our research correctly, volatility creates opportunity, not risk.

Downside protection / Risk minimization. We aim to protect capital first and create long-term equity-like returns second. We cannot eliminate risk, but we conduct ourselves by hoping for the best, while preparing for the worst.

For additional information, please reference the Contrarian Policy Statement.


As of April 30, 2012

Comparative Performance

Fund/Index Month    YTD   1 Year   3 Years** 5 Years** 10 Years** 15 Years** Since Inception**
FPA Crescent -0.42%   6.20%   2.09%      14.66%    4.87%    8.15%   9.36%  10.87%
S&P 500 -0.63%  11.88%   4.76%      19.46%    1.01%    4.71%   5.65%    8.20%
Russell 2500 Index -0.73% 12.16%   -2.23%      22.13%    2.35%    7.44%   8.80%    9.84%
Balanced(60% R2500/40% BCGC) 0.10%   7.81%   2.62%      16.69%

 

    4.70%    7.35%   8.42%    8.91%
** Annualized

After Tax Returns Historical Performance

Portfolio Structure *

CASH PLUS LIQUIDITY:
27.0%
TOTAL NET ASSETS:
$8.4 Billion
TOTAL SECURITIES IN PORTFOLIO
113


Top Sectors*


Top Holdings*

CVS Caremark   3.8%   Occidental
   2.2%
Aon   3.5%   Omnicare   2.1%
Wal-Mart Stores   3.3%   Ensco plc   2.1%
Covidien plc   2.9%   Anheiser-Busch*   2.1%
Microsoft   2.9%   Wellpoint
   2.0%
 
*Various Issues
Excludes U.S. Treasuries
Top 10 Holdings represent 26.9% of Total Net Assets

Portfolio Holdings

* As of March 31, 2012. Past performance is not indicative of future performance. The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small and mid capitalization stock performance. The Standard & Poor's 500 Stock Index (S&P 500) is a capitalization-weighted index which covers industrial, utility, transportation and financial service companies, and represents approximately 75% of the New York Stock Exchange (NYSE) capitalization and 30% of NYSE issues. This index is considered a measure of large capitalization stock performance. These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks they represent. The Balanced Benchmark is a combined index of which 60% reflects the Russell 2500 Index and 40% the Barclay Government/Credit Index. The performance of the Fund and of the Averages is computed on a total return basis which includes reinvestment of all distributions.

^ FPC1Z - Charles Schwab only.


As of April 30, 2012
 
(NAV) 1 Year 5 Years 10 Years
Before Tax 2.09% 4.87% 8.15%
After Tax on Distribution* 1.40% 3.87% 7.22%
 
After Tax on Distribution and Sale of Fund Shares* 1.50% 3.76% 6.75%

*After -tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.  Actual after-tax returns depend upon an investor's tax situation and may differ from those shown.  After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs.

Performance has been calculated on a total return basis, which combines principal and dividend income changes for the periods shown. Principal changes are based on the difference between the beginning and closing net asset values for the period and assume reinvestment of all dividends and distributions paid.  Total return calculations are based on a $10,000 investment. This data represents past performance and investors should understand that investment returns and principal values fluctuate, so that when you redeem your investment it may be worth more or less than its original cost. The Prospectus details the Fund"s objective and policies, sales charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing.