FPA International Value Fund

Objective:

The FPA International Value strategy endeavors to provide above average capital appreciation over the long term while attempting to minimize the risk of capital losses.

We seek to identify absolute value opportunities across international markets, including both developed and emerging countries.

Philosophy:

  • Absolute value investors: We seek genuine bargains in the equity markets rather than relatively attractive ones. We may at times hold large amounts of cash if we cannot find enough opportunities meeting our investment requirements.

  • Long-term focus: We find that our investment goals are best achieved by taking a long-term contrarian approach. In practice we tend to stay invested on average about five years.

  • Bottom-up: We select and value individual stocks based on the fundamentals of the underlying businesses. We always demand that our investments meet the following criteria:

    • 1. High quality businesses with long-term staying power.

    2. Overall financial strength and ability to weather market dislocations.

    3. Management teams that allocate capital in a value creative manner.

    4. Significant discount to the intrinsic value of the business.

  • Broad investment universe: We invest across market caps, industries, and geographies.

  • Concentration: We focus only on our best ideas and expect to be invested in no more than 25-35 stocks.

  • Research-driven: Prior to making investments, we engage into an extensive research and valuation process. Portfolio construction is the product of that process with the most attractive names accounting for the greatest weightings.

  • Downside protection: We believe our process is inherently risk-averse. First, we limit ourselves to companies with strong balance sheets. Second, we spend a lot of time understanding the operational risk profile of the businesses in which we invest. If we cannot get comfortable with the long-term economics of a business, we do not invest. Lastly, we only buy stock when it offers a significant margin of safety.

As of April 30, 2012

Comparative Performance

Fund/Index Month YTD Since
Inception
FPA International Value  -1.92% 10.98% 12.20%
MSCI ACWI ex US  -1.58%   9.48%   8.25%

After Tax Returns Historical Performance

Portfolio Structure *

CASH PLUS LIQUIDITY:
34.4%
TOTAL NET ASSETS:
N/A
TOTAL SECURITIES IN PORTFOLIO
27


Top Holdings*

LSL Property Services   7.3%   Assa Abloy   4.1%
ATEA   5.1%   Diageo   4.0%
Britvic   4.3%   Daimler   3.8%
Kininklijke Philips   4.2%   SAP
   3.8%
Incitec Pivot
   4.1%   Legrand   3.6%
 
Excludes U.S. Treasuries
Top 10 Holdings represent 44.1% of Total Net Assets

Portfolio Holdings

* As of March 31, 2012. Past performance is not indicative of future performance. The MSCI ACWI ex-USA Index is a float-adjusted market capitalization index that is designed to measure the combined equity market performance of developed and emerging market countries excluding the United States. 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 Averages is computed on a total return basis which includes reinvestment of all distributions.


*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.