FPA Crescent Fund

Investment Objective and Strategy:

The Fund seeks to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.

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.

Value investing does not protect against loss of principal and there is no assurance that the Fund will meet its objective.


As of August 31, 2016

Comparative Performance Monthly

Fund/IndexMTDYTD1 Year3 Years5 Years10 Years20 Years Since Inception*
FPA Crescent Fund2.20 %5.66 %6.98 %6.22 %8.84 %7.02 %9.43 %10.33 %
S&P 5000.14 %7.82 %12.55 %12.30 %14.69 %7.51 %8.21 %9.10 %
MSCI ACWI0.34 %5.95 %7.24 %6.74 %8.32 %---
CPI0.20 %0.95 %1.09 %1.00 %1.23 %1.66 %2.14 %NA
60% S&P500/40% BC Agg0.04 %7.14 %10.09 %9.23 %10.17 %6.76 %7.52 %7.99 %

Periods over one year annualized.
*Inception of FPA Crescent is June 2, 1993.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
Expense ratio calculated as of most recent prospectus is 1.11%.
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. Current month-end performance data may be obtained by calling toll-free, 1-800-982-4372.
The Fund commenced investment operations on June 2, 1993. The performance shown for periods prior to March 1, 1996 reflects the historical performance of a predecessor fund. FPA assumed control of the predecessor fund on March 1, 1996. The FPA Crescent Fund's objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the predecessor fund.


As of June 30, 2016

Average Annual Returns

Fund/IndexQTRYTD1 Year3 Years5 Years10 Years20 Years Since Inception*Expense Ratio1
FPA Crescent Fund0.39 %0.19 %-1.87 %4.95 %6.68 %6.53 %9.26 %10.16 %1.11 %
S&P 5002.46 %3.84 %3.99 %11.66 %12.10 %7.42 %7.87 %8.99 %
MSCI ACWI0.99 %1.23 %-3.73 %6.03 %5.38 %---
CPI0.84 %0.79 %1.05 %1.07 %1.31 %1.75 %2.15 %NA
60% S&P500/40% BC Agg2.37 %4.52 %5.04 %8.73 %8.90 %6.81 %7.32 %7.94 %

Periods over one year annualized.
*Inception of FPA Crescent is June 2, 1993.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
Note CPI is not yet available.
1 Expense Ratio is calculated as of the date of the most recent prospectus.
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. Current month-end performance data may be obtained by calling toll-free, 1-800-982-4372.
The Fund commenced investment operations on June 2, 1993. The performance shown for periods prior to March 1, 1996 reflects the historical performance of a predecessor fund. FPA assumed control of the predecessor fund on March 1, 1996. The FPA Crescent Fund's objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the predecessor fund.


Historical Annual Returns

FPA Crescent Fund*S&P 500CPI
2015-2.06 %1.38 %0.66 %
20146.64 %13.69 %0.68 %
201321.95 %32.39 %1.49 %
201210.33 %16.00 %1.61 %
20113.02 %2.11 %3.04 %
201012.04 %15.06 %1.41 %
200928.37 %26.46 %2.94 %
2008-20.55 %-37.00 %-0.04 %
20076.84 %5.49 %4.07 %
200612.43 %15.79 %2.42 %
200510.83 %4.91 %3.34 %
200410.21 %10.88 %3.35 %
200326.15 %28.68 %1.91 %
20023.71 %-22.10 %2.63 %
200136.14 %-11.89 %1.51 %
20003.59 %-9.10 %3.45 %
1999-6.28 %21.04 %2.73 %
19982.79 %28.58 %1.41 %
199721.95 %33.36 %1.71 %
199622.88 %22.96 %3.35 %
199526.04 %37.58 %2.53 %
19944.22 %1.32 %2.73 %
19939.65 %4.41 %1.41 %

* Inception June 2, 1993
* Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. All applicable expenses such as advisory fees have been included in calculating performance. 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. Current month-end performance data may be obtained at http://www.fpafunds.com/crescent by calling toll-free, 1-800-982-4372.
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained at http://www.fpafunds.com/docs/default-document library/ fpa_ crescent_prospectus by email at info@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.
The Fund commenced investment operations on June 2, 1993. The performance shown for periods prior to March 1, 1996 reflects the historical performance of a predecessor fund. FPA assumed control of the predecessor fund on March 1, 1996. The FPA Crescent Fund's objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the predecessor fund.


As of August 31, 2016

1 Year5 Years10 Years
Before Tax6.98 %8.84 %7.02 %
After Tax on Distribution*5.36 %7.67 %5.88 %
After Tax on Distribution and Sale of Fund Shares*5.15 %6.80 %5.43 %

* 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.


Portfolio Structure *

LIQUIDITY:
29.61%
TOTAL NET ASSETS:
$16.3 Billion
NUMBER OF EQUITY HOLDINGS:
51



Top Sectors*



Top Holdings*

Oracle   5.0%   Citigroup
  2.9%
United Technologies   3.4%   Alcoa
  2.8%
Aon
  3.1%
  Cisco
  2.7%
Naspers
  3.1%   Microsoft
  2.4%
AIG
  3.1%   CIT Group
  2.3%
 
*Various Issues
Excludes U.S. Treasuries
Top 10 Holdings represent 30.8% of Total Net Assets


Portfolio Holdings

* As of June 30, 2016. Portfolio composition will change due to ongoing management of the funds.  References to individual securities or sectors are for informational purposes only and should not be construed as recommendations by the Funds, Advisor or Distributor.
      
Past performance is not indicative of future performance. S&P 500 Index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. The index focuses on the large-cap segment of the market, with over 80% coverage of U.S. equities, but is also considered a proxy for the total market. The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 44 country indices comprising 23 developed and 21 emerging market country indices. Barclays Aggregate Index provides a measure of the    performance  of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities  and asset-backed securities that are publicly offered for sale in the United States. The securities in the Index must have at least 1 year remaining in maturity. In addition, the securities must be denominated in U.S. dollars and must be fixed rate, nonconvertible, and taxable. 60% S&P 500/40% Barclays Aggregate Index is a hypothetical combination of unmanaged indices comprised of 60% S&P 500 Index and 40% Barclays Aggregate Index, representing the Fund’s neutral mix of 60% stocks and 40% bonds.  The Consumer Price Index (CPI) is an unmanaged index representing the rate of the inflation of the U.S. consumer prices as determined by the U.S. Department of Labor Statistics. There can be no guarantee that the CPI of other indexes will reflect the exact level of inflation at any given time. You cannot invest directly in an Index.

^ FPC1Z - New Charles Schwab accounts only.


As of June 30, 2012
 
(NAV) 1 Year 5 Years 10 Years
Before Tax 1.63% 3.83% 8.29%
After Tax on Distribution* 0.95% 2.84% 7.40%
 
After Tax on Distribution and Sale of Fund Shares* 1.13% 2.87% 6.92%

*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.