FPA Crescent Fund

Investment Objective and Strategy:

The Fund seeks to provide a total return consistent with reasonable investment risk, through a combination of income and capital appreciation.  As we strive for an equity-like return with less risk than the stock market over the long term, we focus on absolute value opportunities across the capital structure.

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, 2013

Comparative Performance Monthly

Fund/IndexMTDYTD1 Year3 Years**5 Years**10 Years** Since Inception**
FPA Crescent1.52 %8.85 %13.08 %9.93 %6.70 %9.74 %10.98 %
S&P 5001.93 %12.74 %16.89 %12.80 %5.21 %7.88 %8.62 %
60% R2500/40% BCGC0.67 %8.27 %13.18 %10.70 %7.86 %9.32 %9.12 %

** 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 1.25%.
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 March 31, 2013

Average Annual Returns

Fund/IndexQTRYTD1 Year3 Years**5 Years**10 Years** Since Inception**Expense Ratio1
FPA Crescent7.22 %7.22 %10.92 %9.40 %7.10 %10.18 %10.94 %1.25%
S&P 50010.61 %10.61 %13.96 %12.67 %5.81 %8.53 %8.55 %
60% R2500/40% BCGC7.55 %7.55 %12.54 %11.67 %8.36 %9.87 %9.12 %

** Annualized. Inception of FPA Crescent is June 2, 1993.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
1Expense 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*Balanced (60% Russell 2500/ 40% BC Capital Gov't/Cr)S&P 500
201210.33 %12.70 %16.00 %
20113.02 %2.48 %2.11 %
201012.04 %19.07 %15.06 %
200928.37 %22.46 %26.46 %
2008-20.55 %-21.40 %-37.00 %
20076.84 %3.88 %5.49 %
200612.43 %11.23 %15.79 %
200510.83 %6.00 %4.91 %
200410.21 %12.67 %10.88 %
200326.15 %28.08 %28.68 %
20023.71 %-6.63 %-22.10 %
200136.14 %4.83 %-11.89 %
20003.59 %7.85 %-9.10 %
1999-6.28 %13.28 %21.04 %
19982.79 %4.92 %28.58 %
199721.95 %18.53 %33.36 %
199622.88 %12.59 %22.96 %
199526.04 %26.72 %37.58 %
19944.22 %-1.95 %1.32 %
19939.65 %7.95 %4.41 %

* 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 April 30, 2013

After-Tax Returns

1 Year5 Years10 Years
Before Tax13.08 %6.70 %9.74 %
After Tax on Distribution*12.12 %5.95 %8.80 %
After Tax on Distribution and Sale of Fund Shares*10.85 %5.45 %8.22 %

* 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 *

CASH PLUS LIQUIDITY:
31.58%
TOTAL NET ASSETS:
$11.3 Billion
TOTAL SECURITIES IN PORTFOLIO
106


Top Sectors*


Top Holdings*

AON   3.4%   Omnicare   2.1%
CVS Caremark   3.3%   Cisco   2.0%
Microsoft
   3.0%   Anheuser-Busch   1.9%
Covidien plc   2.9%   Google   1.8%
Thermo Fisher
   2.5%   AIG
   1.8%
 
*Various Issues
Excludes U.S. Treasuries
Top 10 Holdings represent 24.6% of Total Net Assets

Portfolio Holdings

* As of March 31, 2012. 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. Russell 2500 Index is an unmanaged index comprised of 2,500 stocks of U.S. companies with small market capitalizations. Barclays Capital Government/Credit Index is an unmanaged index of investment grade bonds, including U.S. Government Treasury bonds, corporate bonds, and yankee bonds. Balanced Benchmark(60% R2500/40% BCGC) is a hypothetical combination of unmanaged indices comprised of 60% Russell 2500 Index and 40% Barclays Capital Government/ Credit Index, reflecting the Fund's neutral mix of 60% stocks and 40% bonds.  These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks they represent.  The performance of the Fund and of the Indices is computed on a total return basis which includes reinvestment of all distributions.  It is not possible to invest in an index.

^ FPC1Z - Charles Schwab 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.