Investors First

FPA’s Crescent Fund Performance Data here.

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, which may be lower or higher than the performance data quoted, may be obtained by calling toll-free, 1-800-982- 4372.

Periods greater than one year are annualized. Fund performance is shown net of all fees and expenses. Fund performance is calculated on a total return basis which includes reinvestment of all distributions. Fund performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, which would lower these figures.

Any stocks or investments mentioned are for informational and illustrative purposes only and do not constitute financial advice or a recommendation to buy, sell, or hold any security.

The information set forth herein and any opinions herein do not constitute an endorsement, implied or otherwise, of any securities, nor does it constitute an endorsement with respect to any investment area or vehicle. It is not intended as an offer or solicitation for the purchase or sale of any financial instruments or any investment interest in any fund or as an official confirmation of any transaction. Opinions, estimates and projections in this discussion constitute the current judgement of the First Pacific Advisers, LP (the “investment adviser”, “us”. “our” “firm”) as of the date of this report and are subject to change without notice. All market prices, data and other information, are not warranted as to completeness or accuracy and are subject to change without notice at the sole and absolute discretion of the investment adviser. We have no obligation to update, modify or amend this report or otherwise notify you hereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Certain statements made in this presentation are forward-looking and are subject to risks and uncertainties. The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account information currently available to us. Actual results could differ materially from the forward-looking statements made in this presentation. When we use the words “believe,” “expect,” “anticipate,” “plan,” “will,” “intend” or other similar expressions, we are identifying forward-looking statements. These statements are based on information available to us as of the date hereof; and the investment adviser’s or fund’s actual results or actions could differ materially from those stated or implied, due to risks and uncertainties associated with its business. Unless otherwise stated, all representations in this presentation are the portfolio manager’s beliefs based on sector knowledge and/or research. Past performance is not necessarily indicative of future results. Any references to any indices are for informational and general comparative purposes only. There are significant differences between such indices and an investment program of the firm. An FPA Fund may not invest in all or necessarily any significant portion of the securities, industries, or strategies or represented by such indices. Indices are unmanaged, and their performance results do not reflect the impact of fees, expenses, or taxes that may be incurred through an investment strategy or fund managed by the investment adviser. Returns for indices assume dividend reinvestment. An investment cannot be made directly in an index. Accordingly, comparing results shown to those of such indices may be of limited use.

Investments involve risks, including loss of principal. Please click here for the principal risks of investing in FPA Funds. 

EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBITDA is one indicator of a company’s financial performance and is used as a proxy for the earning potential of a business, although doing so can have drawbacks. EBITDA strips out the cost of debt capital and its tax effects by adding back interest and taxes to earnings.

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. The S&P 500 is considered a measure of large capitalization stock performance.

MSCI ACWI NR USD Index (MSCI ACWI) is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Net Return (NR) indicates that withholding taxes are applied to dividend reinvestments. MSCI uses withholding tax rates applicable to Luxembourg holding companies.

You should consider the FPA Funds’ investment objectives, risks, and charges and expenses carefully before you invest. The offering documents for the FPA Funds details their objectives and policies and other matters of interest to the prospective investor, please read them carefully before investing. The prospectus may be obtained by clicking here for the FPA Crescent Fund (“FPACX”), or here for the FPA Global Equity ETF (“FPAG”), by calling toll-free, 1-800-982-4372, or by email at [email protected]. 

Past performance is no guarantee of future results. 

The FPA Crescent Fund and FPA Global Equity ETF are distributed by Distribution Services, LLC, 190 Middle Street, Suite 301, Portland, ME 04101. Distribution Services, LLC and is not affiliated with FPA or any other product discussed.

There is no guarantee that any FPA Funds or investment strategies will achieve their investment objectives. Portfolio composition will change due to ongoing management of the FPA Funds. The complete list of the Funds’ portfolio holdings for the most recent reporting period may be obtained here for the FPACX and here for the FPAG. Please note that any references in this report to specific securities or instruments are for informational purposes only and should not be construed as a recommendation by the FPA Funds, the portfolio managers, FPA, the distributor, or Morningstar to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the security/instrument examples discussed. The information contained in the article is not complete, may change, and is subject to, and is qualified in its entirety by, the more complete disclosures, risk factors, and other information contained in the Funds’ Prospectus and Statement of Additional Information.

Shares of the FPAG are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Because ETFs trade like stocks, the Fund may trade at prices above or below the ETF’s NAV. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. Brokerage commissions and ETF expenses will reduce returns.

FPA did not compensate the third party for statements about FPA, its employees, its portfolio managers or the FPA Funds, and, to its knowledge, is not aware of any material conflicts of interest in relation to the statements made therein. By providing this article, we are not providing you with investment advice or offering securities for sale to you.

Additional Disclosures related to accessing a website hosted by a third party

By accessing this link, you are clicking through to a site hosted by a third-party that is not controlled by First Pacific Advisors, LP. You acknowledge and agree that First Pacific Advisors, LP is not responsible for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content available on or through any such external site. You are encouraged to read and evaluate the privacy and security policies on any external site you enter. Accessing any such external link is at your own risk.

Investments involve risks, including loss of principal. Please click here for the principal risks of investing in FPA Funds. You should consider the FPA Funds’ investment objectives, risks, and charges and expenses carefully before you invest. The offering documents for the FPA Funds details their objectives and policies and other matters of interest to the prospective investor, please read them carefully before investing. The prospectus may be obtained by clicking here for FPACX, or here for FPAG, by calling toll-free, 1-800-982-4372, or by email at [email protected]. Information relating to Source Capital may be obtained by visiting the website at fpa.com, by email at [email protected], or toll free by calling 1-800-279-1241 (option 1).

The FPA Crescent Fund and FPA Global Equity ETF are distributed by Distribution Services, LLC, Three Canal Plaza, Suite 100, Portland, ME 04101. Distribution Services, LLC and is not affiliated with FPA or any other product discussed.

There is no guarantee that the FPA Funds will achieve their investment objectives.  Portfolio composition will change due to ongoing management of the FPA Funds. The complete list of the Funds’ portfolio holdings for the most recent reporting period may be obtained here for the FPACX and here for the FPAG.  Please note that any references in this report to specific securities or instruments are for informational purposes only and should not be construed as a recommendation by the FPA Funds, the portfolio managers, FPA, the distributor, or Morningstar to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the security/instrument examples discussed. The information contained in the article is not complete, may change, and is subject to, and is qualified in its entirety by, the more complete disclosures, risk factors, and other information contained in the Funds’ Prospectus and Statement of Additional Information.

Shares of the FPAG are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Because ETFs trade like stocks, the Fund may trade at prices above or below the ETF’s NAV. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. Brokerage commissions and ETF expenses will reduce returns.

©2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar, Inc. has not granted consent for it to be considered or deemed an “expert” under the Securities Act of 1933.

FPA did not compensate the third party for statements about FPA or the FPA Funds and to its knowledge is not aware of any material conflicts of interest in relation to the statements made therein.  By providing this article, we are not providing you with investment advice or offering securities for sale to you. Past performance is no guarantee, nor is it indicative, of future results.

Additional Disclosures

Please see important information at the top of this webpage. The individual investment examples discussed herein were not chosen based on their performance. It should not be assumed that any transactions in the future will be profitable.

Private securities and limited partnerships are not registered under the federal securities laws and are generally eligible for sale only to certain eligible investors. As such, they may be illiquid, and thus more difficult to sell, because there may be relatively few potential purchasers for such investments, and the sale of such investments may also be restricted under securities laws.

End Notes and Definitions Related to the Article:

Rubin, Robert E. and Weisberg, Jacob. In an Uncertain World: Tough Choices from Wall Street to Washington. Random House, 2004.

FPA Crescent Fund Q1 2025 Commentary (https://fpa.com/docs/default-source/funds/fpa-crescent-fund/literature/quarterly-commentaries/fpa-crescent-fund-commentary-2025-03.pdf?sfvrsn=e8f99e9d_7)

BRICS is an acronym referring to an intergovernmental organization comprising ten countries – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

Credit Spread is the difference in yield between securities with similar maturity but different credit quality. Widening spreads generally indicate deteriorating creditworthiness of corporate borrowers and narrowing indicate improving.

Price-to-Earnings (P/E) Ratio measures share price compared to earnings per share for a stock or stocks in a portfolio.

With respect to the various securities mentioned in the article, as of March 31, 2025 the corresponding position sizes (as a % of Net Asset Value) were as follows: (for the FPA Crescent Fund) Analog Devices (ADI) 2.7, Vail Resorts (MTN) 0.8, Eurofins Scientific (ERF FP) 0.8, Howmet Aerospace (HWM) 0.5, Broadcom Inc. (AVGO) 0.2; (for the FPA Global Equity ETF) Grupo Mexico SAB de CV-SER B (GMEXICOB MM) 0.4.

As of December 31, 2012, the FPA Crescent Fund’s Healthcare sector exposure was 16.4% of equity exposure and was the third largest exposure of the Fund.  As of December 31, 2009, the Healthcare exposure was the largest in the fund at 33% of equity exposure.

As of March 31, 2025, the FPA Crescent Fund’s overall average holding period for equity securities was 5.08 yrs, the average holding period for its top 10 holdings was 9.97 yrs.