steve romick fpa crescent fund q3 investor presentation

7/24/2019 Steve Romick FPA Crescent Fund Q3 Investor Presentation

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FPA Crescent FundFPACX*

Third Quarter 2015

Webcast Presentation

Presented by: Contrarian Value Team

*Charles Schwab Ticker: FPC1Z


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Absolute Return Focus

Flexible Approach

Deep Research

Philosophy

1

Seek long-term, equity-like returns with less risk than the stock market while avoidingpermanent impairment of capital


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Performance

2

Please refer to the next page for standardized performance.

Average Annual Total Returns as of September 30, 2015 for FPA Crescent1 Year, -2.34% 5 Years, 8.41% 10 Years, 6.90%

* Source: Morningstar. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The return shown is at net asset value(NAV) and does not reflect the deduction of the sales charge, which if reflected, would reduce the performance shown. Please refer to the back of the presentation for full disclosure information.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, sothat 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. Expenseratio as of most recent prospectus is 1.11%. A redemption fee of 2% may apply.The Fund commenced investment operations on June 2, 1993. The performance shown for periods prior toMarch 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. Standard deviation is a measure of the dispersion of a set of data from its mean. Sharpe ratiois the average return earned in excess of the risk-free rate per unit of volatility or standard deviation.

FPA Crescent S&P 50060% S&P 500/40% Barclays

Aggregate

Annualized returns 10.37% 8.79% 7.81%

Standard deviation 10.13% 14.70% 9.00%

Sharpe ratio 0.53 0.26 0.31

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

FPACX $90,556

S&P 500 $65,604

60% S&P/40% BA $53,651


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Performance

Performance is annualized for periods exceeding 1 Year. Past performance is not a guarantee of future results. Calculated using Morningstar Direct.Expense ratio as of the most recent prospectus is 1.11%.

*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.

Market Cycle Performance reflects two most recent market cycles (peak to peak) defined as a period that contains a decline of at least 20% from the previous market peak over atleast a two-month period and a rebound to establish a new peak above the previous one by S&P 500 Index.

This presentation is for informational purposes only and does not constitute an offer of securities nor the solicitation for purchase or sale of any securities.This presentation is confidential and is not intended for public use or distribution. The information presented may not be reproduced or distributed without prior written consent ofFirst Pacific Advisors, LLC (FPA). Certain information contained herein has been obtained from third parties and is believed to be reliable; however, FPA assumes noresponsibility for the accuracy of the information.

Past performance is no guarantee of future results and current performance may be higher or lower than 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.

Annual Perfo rman ce (%)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

FPA Crescent 6.64 21.95 10.33 3.02 12.04 28.37 -20.55 6.84 12.43 10.83 10.21 26.15

S&P 500 13.69 32.39 16.00 2.11 15.06 26.46 -37.00 5.49 15.79 4.91 10.88 28.68

CPI 0.68 1.53 1.77 3.03 1.44 2.81 -0.02 4.11 2.52 3.34 3.34 2.04

60% S&P500/40% BC Agg 10.62 17.56 11.31 4.69 12.13 18.40 -22.06 6.22 11.12 4.00 8.30 18.48

3

Trailing Performance (%) Market Cycle Performance

As o f Date: 9/30/2015 Incep tion* 20 Years 15 Years 10 Years 5 Years 3 Years 1 Year YTD QTR 3/25/00-10/9/07

10/10/07-9/30/15

FPA Crescent 10.37 9.75 10.15 6.90 8.41 8.08 -2.34 -4.73 -4.73 14.70 5.95

S&P 500 8.79 8.14 3.96 6.80 13.34 12.40 -0.61 -5.29 -6.44 2.00 4.85

CPI NA 2.22 2.11 1.80 1.71 0.92 -0.03 0.54 -0.09 2.75 1.71

60% S&P500/40% BC Agg 7.81 7.43 4.81 6.22 9.33 8.14 0.95 -2.62 -3.39 3.97 5.14


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Flexible approach FPA Crescent risk exposure &subsequent 2-year return

4

Source: Morningstar Direct. Last data point as of September 30, 2015. Past performance is no guarantee of future results.

Risk

Exposure

# of Quarterly

Periods

Avg Subsequent

2-Yr Return

Risk

Exposure

# of Quarterly

Periods

Avg Subsequent

2-Yr Return

80% 11 15.03%

30%

40%

50%

60%

70%

80%

90%

100%

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014


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5-year roll ing returns by market type

Down Market 5yr

average returnbelow 0%

Normal Market 5yr

average return0-10%

Robust Market 5yr

average returnabove 10%

FPACX 9.54% 8.71% 12.12%

S&P 500 -1.81% 3.30% 18.37%

FPACX Outperformed 100% of periods 97.5% of periods 16.3% of periods

(49 of 49) (77 of 79) (13 of 80)

Rolling 5-year monthly returns as of September 30, 2015. Past performance is not a guarantee of future results.Source: Morningstar Direct.

5

-30%

-20%

-10%

0%

10%

20%

30%

-30% -20% -10% 0% 10% 20% 30%

FPA

Crescent

S&P 500

Most recent period


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Active security selection drives differentiated returns

2007 to2015

CAGR

9 MosYTD

2015

2014 2013 2012 2011 2010 2009 2008 2007

FPACX long equity 9.05% -7.64% 13.67% 39.62% 17.69% 6.25% 22.30% 38.39% -38.27% 11.47%

S&P 500 5.76% -5.29% 13.69% 32.39% 16.00% 2.11% 15.06% 26.46% -37.00% 5.49%

Alpha vs. S&P 500 3.29% -2.35% -0.02% 7.23% 1.69% 4.14% 7.24% 11.93% -1.27% 5.98%

S&P 500 Value 3.68% -8.66% 12.36% 31.99% 17.68% -0.48% 15.10% 21.18% -39.22% 1.99%

Alpha vs. S&P 500 Value 5.37% 1.02% 1.31% 7.63% 0.01% 6.73% 7.20% 17.21% 0.95% 9.48%

Past performance is not a guarantee of future results.Source: FPA and Morningstar Direct. FPACX returns are gross of fees as of September 30, 2015.

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Q3 2015: Winners and Losers

8

Based on weighted contribution to quarterly performance of the Fund. Percentage of portfolio as of September 30, 2015.

As of September 30, 2015. Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed asrecommendations by the Fund, its Advisor or Distributor. The discussions of Fund investments represent the views of the Fund's managers at the time of each report and aresubject to change without notice. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any First Pacific Advisors portfolio.Security examples featured are samples for presentation purposes and are intended to illustrate our investment philosophy and its application. It should not be assumed thatmost recommendations made in the future will be profitable or will equal the performance of the securities.

Past performance is not a guarantee of future results. Please refer to the back of the presentation for full disclosure information.

Winners PerformanceContribution

Percent ofPortfolio

Losers PerformanceContribution

Percent ofPortfolio

Google 0.20% 1.52% Oracle -0.38% 4.10%

Sound Holding FP 0.05% 0.37% Joy Global -0.37% 0.28%

Microsoft 0.04% 3.58% Aon -0.35% 3.25%

Glencore Sr. Notes (VariousIssues)

0.03% 0.36% Citigroup -0.26% 2.65%

Energy Select Sector SPDRFund (Short)

0.03% 0.00% United Technologies -0.25% 2.57%


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Portfolio characteristics

9

FPACXQ3 2015 FPACXAverage S&P 500

Market Capitalization (in millions)1 $94,789 $29,100 $128,470

Price/Earnings2 16.9 16.7 18.9

Price/Book3 1.6 1.7 2.6

Debt/Capital4

-20.9% 8.5% 52.2%

Return on Equity5 13.2% 12.8% 17.5%

Source: FPA and Mellon1For Crescent Fund since 9/30/1996, based on earliest data. Market capitalization is the value of a corporation as determined by the market price of its issued and outstanding

common stock. It is calculated by multiplying the number of outstanding shares by the current market price of a share.2P/E and average P/E reflect the trailing 12 months, since 3/31/1999, based on earliest data. Price/Earnings ratio (P/E) is the price of a stock divided by its earnings per share.3Average since 9/30/1996, based on earliest data. Price/Book ratio is the current closing price of the stock by the latest quarters book value per share.4Average since 12/31/1997, based on earliest data. Debt/Total Capitalfor a fund's underlying stock holdings is calculated by dividing each security's long-term debt by its total

capitalization (the sum of common equity plus preferred equity and long-term debt) and is a measure of the company's financial leverage.5Average since 3/31/1999, based on earliest data. Return on Equity is the amount of profit computed by dividing net income before taxes less preferred dividends by the value

of stockholders equity.

Past performance is no guarantee of future results and current performance may be higher or l ower 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 originalcost . Current month-end perfor mance data may be obtained via http://w ww.fpaf unds.co m/cresc ent or by calling toll-free, 1-800-982-4372.


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Geographic exposure

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Domicile and revenue composition for the equity positions only in the FPA Crescent Fund as of September 30, 2015. Source: Bloomberg

Domicile Revenue

North America 70.4% 43.9%

South America / Latin America 0.0% 2.3%

Uncategorized Americas - 6.4%

Western / Northern Europe 25.1% 13.7%

Central / Eastern Europe 3.9% 1.4%

Asia / Pacific -3.7% 8.2%

Middle East / Africa 4.3% 7.5%

Uncategorized Non-US - 16.6%


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Portfolio allocation

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Risk Asset Q3 2015 Year End2014 AverageSince Inception

Common stock, long 58.1% 55.5% 53.2%

Common stock, short -3.1% -4.2% -4.8%

Corporate debt 3.4% 1.4% 12.4%

Mortgages 0.9% 1.4% 0.6%

Other 0.4% 0.8% 0.3%

Exposure, Net 59.7% 54.9% 63.3%

No. of Equity Positions 53 51 38

Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed asrecommendations by the Fund, its Advisor or Distributor. The discussions of Fund investments represent the views of the Fund's managers at the time of eachreport and are subject to change without notice. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any

First Pacific Advisors portfolio. Security examples featured are samples for presentation purposes and are intended to illustrate our investment philosophy and itsapplication. It should not be assumed that most recommendations made in the future will be profitable or will equal the performance of the securities.


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2015 FPA Crescent portfolio activi ty

Risk Exposure

12/31/2014 54.9%

3/31/2015 55.7%

6/30/2015 57.6%

7/31/2015 54.6%

8/31/2015 55.5%

9/30/2015 59.7%

Source: FPA.

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13

Q3 2015 2015 9 mos

Positions initiated 8 14

Positions exited 3 6

Purchases - % average AUM 11.9% 20.6%

Sales - % average AUM 9.3% 15.6%

Source: FPA. Positions initiated and exited are for equity and high yield debt positions only. Average AUM for Q3 2015 represents the average net assets of

the fund at each month end from 6/30/2015 9/30/2015. Average AUM for 2015 9 mos represents the average net assets of the fund at each month endfrom 12/31/2014 9/30/2015.


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Average trailing P/E of companies purchased and sold in 2015, including both positions initiated and liquidated:

Disclaimer: P/E uses income in the denominator, even though income can be vastly different than free cash flow. We therefore use free cash flow. Inaddition, trailing metrics may not be reflective of a business earnings power.

Source: Bloomberg. As of September 30, 2015. P/E ratios were calculated using the Funds average purchase or sales price divided by trailing 12 monthsdiluted earnings per share from continuing operations.

14

P/E

Buys 14.4x

Sells 19.4x


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0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

5

10

15

20

25

30

35

40

45

50

1881 1894 1908 1921 1934 1948 1961 1974 1988 2001 2015

10-YearUS

TreasuryNotes

Price-EarningsRatio

CAPE Price E10 Ratio Interest Rate

Historic P/E ratio using 10-year average earnings

15

Source: Shiller, Robert J. Online Data Robert Shiller, www.econ.yale.edu/~shiller/data.htm, and Bloomberg. Data as of October 2, 2015. P/E or price-to-earnings is a valuationratio of a companys current share price compared to its per-share earnings. Past performance is no guarantee of future results.

Oct. 2, 2015 P/E 10-Year UST

Current 24.8 2.00%

Since 1881 16.6 4.60%

Since 1930 17.6 5.10%

Since 1950 19.0 5.83%

Since 1970 19.6 6.69%


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Stock valuations are historically high

16

Source: http://www.advisorperspectives.com/dshort/updates/PE-Ratios-and-Market-Valuation.php. As of October 1, 2015.


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US Treasury yields

0%

2%

4%

6%

8%

10%

12%

14%

16%

3-Month Treasury Yield 10-Year Treasury Yield

Source: Federal Reserve Bank of St. Louis. Data from January 4, 1982 October 27, 2015.

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High yield index spreads

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

U.S. Corporate High Yield - Spread over Treasuries

Average: 579 bps

Source: Barclays and Morningstar. Graph represents the Barclays U.S. Corporate High Yield Index spread relative to U.S. Treasuries from 8/15/2000 9/30/2015.

Index 9 Mos

YTD 2015

iShares iBoxx $ High Yield Corporate Bond ETF -4.03%

19


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High yield index spreads and energy sub-component

Source: Barclays. Graph represents the Barclays U.S. Corporate High Yield Index and its energy sub-component spreads over U.S. Treasuries from8/15/2000 9/30/2015.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

U.S. Corporate High Yield - Spread over Treasuries High Yield Energy - Spread over Treasuries

20


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US primary dealers holdings of corporate debt

US primary dealers holdings of corporate debt securities have declined by over 80% since peaking in October 2007. Note: The data are split into two timeperiods (July 2001 March 2013 and April 2013 Now) due to changes in data structure. Source: New York Fed, CLSA.

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We think of Compounders as infinite duration bonds with rising coupons

We think of long-term returns on compounders equal to:

Owner earnings* + Long-term organic growth in owner earnings

= Long-term return to owner before capital allocation

Current Portfolio Examples: Oracle, Aon, Thermo Fisher, United Technologies

*Free cash flow after investment required to sustain competitive position and pursue organic growth

This example is provided to assist in understanding the research used by the Advisor. It is not meant to be construed as a prediction of the futurereturn of this security. Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors shouldnot be construed as recommendations by the Fund, its Advisor or Distributor.

Compounders: The worlds great businesses

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United Technologies (UTX) a Compounder

Leading Franchises

Ubiquitous, necessary businesses in attractive markets. Sustainable, long-term business prospects for Otis, Carrier and Pratt.

Diversified by end market, product, cycle, technology and geography.

Compelling Economics

ROE>20%. ROTE>100%. Return on incremental capital >20%.

Fort Knox Balance Sheet

Debt less than 1.5x ebitda A rated

Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed as

recommendations by the Fund, its Advisor or Distributor. As of 9/30/2015, United Technologies represented 2.57% of Crescent Funds total net assets.Source: Company reports.

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UTX - Buttressed by long-term mega trends

Bigger and more profitable 5 and 10 years from now

FPA expects UTXs businesses to grow on back of long-term macro drivers, resulting in an attractive 10%+ long-term

owners return (FCF + growth)



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UTX - Grows and throws

Shareholder Focus

UTX business grows and throws FCF we expect continued shareholder friendly use of FCF and balance sheet consistentwith company history and reputation of new CEO Greg Hayes

Compelling Valuation

Net of Sikorsky proceeds, 11-13x 2016 earnings power

7-9% FCF yield in blue chip collection of business, growing 3-6% (on average over time depending on economy)10-15% expected owner return with limited fundamental risk and management team pursuing shareholder friendly capitalallocation



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For Institutional Use Only/Not for Public Use

Q & A


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Market cycle returns

27

Annual ized

Return

Max

Drawdown

Annual ized

Return

Max

Drawdown

FPA Crescent Fund(Average liquidity = 29.50%)1

14.70% -10.94% FPA Crescent Fund(Average liquidity = 31.30%)1

5.95% -28.84%

S&P 500 Index 2.00% -44.73% S&P 500 Index 4.85% -50.95%

Russell 2500 Index 8.08% -27.27% MSCI ACWI 0.93% -54.92%

60% S&P 500 / 40% BC Agg. 3.97% -22.82% 60% S&P 500 / 40% BC Agg. 5.14% -32.54%

Market Cycle Performance reflects two most recent market cycles (peak to peak) defined as a period that contains a decline of at least 20% from the previous market peak over at least a two-month period and a rebound to establish a new peak above the previous one by S&P 500 Index.

1 We make a distinction between cash and liquidity, although we sometimes use them interchangeably. Cash includes the cash received from securities sold short and, as a result, can appearto overstate the cash balance. Therefore, we believe liquidity, which nets that out, is the more appropriate measure. Past performance is no guarantee of future result.

3/25/2000 10/9/2007 10/10/2007 9/30/2015

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000FPACX S&P 500 Russell 2500

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

FPACX S&P 500 MSCI ACWI


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Downside Capture - less risk over the long-term

We believe our flexible approach greatly enhances the likelihood that we will deliver an equity-like return with less

risk over the long-term. (FPA Crescent Policy Statement)

Long-term will generally include bear markets (20% declines) and other large corrections.

We have successfully protected capital better than the S&P 500 during large drawdowns:

Drawdown

within the

following period

S&P 500 FPA Crescent FPA Crescent

Downside Capture

as % of S&P 500

2007 2009 -50.95% -28.84% 57%

1999 2002 -44.73% -20.00% 45%

2011 -16.26% -11.58% 71%

1998 -15.37% -14.80% 96%

2010 -12.80% -5.98% 47%

2002 2003 -9.72% -4.33% 45%2015 -8.36% -6.29% 75%

1994 -6.96% -3.87% 56%

2012 -6.60% -5.36% 81%

1996 1997 -5.60% -3.04% 54%

Average 63%

Ten largest S&P 500 drawdowns since FPA Crescents 1993 inception

As of September 30, 2015. Past performance is not a guarantee of future results.Source: Morningstar Direct.

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Value

2015 index comparison 9 mos YTD 2015

Index 1H 2015 Q3 2015 9 Mos

YTD 2015

MSCI USA Momentum 5.62% -4.42% 0.95%Russell 1000 Growth 3.96% -5.29% -1.54%

MSCI ACWI Growth 4.83% -8.59% -4.17%

FPA Crescent 0.00% -4.73% -4.73%

Russell 1000 1.71% -6.83% -5.24%

MSCI EAFE 5.52% -10.23% -5.28%

S&P 500 1.23% -6.44% -5.29%

Russell 2000 Growth 8.74% -13.06% -5.47%

MSCI World 2.63% -8.45% -6.04%

MSCI ACWI 2.66% -9.45% -7.04%Russell 2000 4.75% -11.92% -7.73%

MSCI USA Value -1.52% -7.25% -8.66%

Russell 1000 Value -0.61% -8.39% -8.96%

MSCI ACWI Value 0.45% -10.33% -9.92%

Russell 2000 Value 0.76% -10.73% -10.06%

MSCI EM 2.95% -17.90% -15.47%

Growth index average 5.79% -7.84% -2.55%

Value index average -0.23% -9.18% -9.40%Growth vs Value 6.02% 1.34% 6.84%

FPACX vs.

Value index average 0.23% 4.45% 4.67%

Growth index average -5.79% 3.11% -2.18%

S&P 500 -1.23% 1.71% 0.56%

MSCI ACWI -2.66% 4.72% 2.31%

As of June 30, 2015 and September 30, 2015. Past performance is not a guarantee of future results.Source: Morningstar Direct. All index performance numbers are in USD with dividends reinvested.

Growth

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FPA Crescent holdings as of September 30, 2015

Portfolio composition will change due to ongoing management of the Fund. References to specific securities

or sectors should not be construed as recommendations by the Fund, its Advisor or Distributor.

Consumer Discretionary 4.88%Genting Malaysia Berhad 0.35%Interpublic Group of Companies 0.95%Naspers Limited N Shares 2.25%WPP PLC 1.33%

Consumer Staples 4.93%Anheuser-Busch Inbev SA/NV ADR 0.67%Carlsberg A/S B 1.03%CVS Caremark 0.27%Henkel AG & Co. KGAA 0.62%Orkla ASA 0.56%Unilever N.V. 0.95%Walgreens Boots Alliance Inc. 0.83%

Energy 2.50%Bennu Oil & Gas Series A 0.00%

Bennu Oil & Gas Series B 0.00%Canadian Natural Resources Limited 0.37%Gazprom OAO - ADR 0.28%Halliburton Company 0.20%Lukoil OAO - ADR 0.27%Occidental Petroleum 1.13%Rosneft Oil Company Reg S GDR 0.12%Surgutneftegas-Preference 0.13%

Financials 13.28%Alleghany Corporation 0.70%American Express Company 0.26%

American International Group, Inc. 2.50%Aon 3.25%Bank of America Corporation 1.50%CIT Group 1.07%Citigroup 2.65%Groupe Bruxelles Lambert S.A. 1.11%Sberbank of Russia Preference 0.10%Sberbank of Russia - ADR 0.14%

Health Care 1.79%Express Scripts 0.59%Thermo Fisher Scientific Inc. 1.20%

Industrials 7.43%Esterline Technologies Corporation 1.05%General Electric Co. 1.48%Jardine Matheson Holdings Limited 0.32%Jardine Strategic Holdings Limited 0.29%

Joy Global Inc. 0.28%Meggitt PLC 1.44%United Technologies Corporation 2.57%

Information Technology 16.20%Analog Devices, Inc. 1.15%Arris Group, Inc. 0.27%Cisco Systems 2.09%Google Inc. Class A 0.78%Google Inc. Class C 0.74%Microsoft 3.58%Oracle Corporation 4.10%

Qualcomm Incorporated 0.81%TE Connectivity 2.14%Yahoo 0.54%

Materials 3.53%Alcoa Inc. 2.21%MMC Norilsk Nickel OJSC - ADR 0.35%Owens-Illinois 0.97%

Telecommuni cation Services 0.20%Vodafone Group Plc - ADR 0.20%

Other 3.04%Undisclosed 3.04%

Common stocks - short -3.13%

Limited Partnerships 0.66%Sound Holdings FP 0.37%U.S. Farming Realty Trust I & II 0.29%

Corporate Bonds & Notes 3.40%

ATP Oil & Gas Corporation 0.00%

Bombardier 0.37%

California Resources Corporation 0.19%

Consol Energy 0.37%

Glencore (Various issues) 0.36%

iStar Financial Inc. 0.13%

Navistar International Corporation 0.72%

RELP (4-11) 0.39%

Ship Loan Participation (Northern Shipping) 0.47%

Springleaf Financial Services 0.17%

Walter Investment Management Corporation 0.23%

Mortgages 0.87%

Stanwich Mortgage Loan Trust (Variousissues)

0.20%

Sunset Mortgage Loan Company 0.67%

Derivatives/futures 0.15%

Cash and equivalents (net of liabiliti es) 40.27%

U.S. government and agencies 36.30%

Commercial paper, money market 3.97%

Total net assets 100%

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Disclaimer

These slides are intended as supplemental material to the 3rd Quarter 2015 FPA Crescent audio presentation that is posted on our website fpafunds.com.

We do want to make sure you understand that the views expressed on these slides and in the accompanying audio presentation are as of today, October 29, 2015 and are subject to changebased on market and other conditions. These views may differ from other portfolio managers and analysts of the firm as a whole, and are not intended to be a forecast of future events, a guaranteeof future results or investment advice. Any mention of individual securities or sectors should not be construed as a recommendation to purchase or sell such securities, and any information

provided is not a sufficient basis upon which to make an investment decision. The information provided does not constitute, and should not be construed as, an offer or solicitation with respect toany securities, products or services discussed.

Past performance is not a guarantee of future results. This data represents past performance and investors should understand that investment returns and principal values fluctuate,

so that when you r edeem your investment it may be wort h more or less t han its original cost. Performance has been calculated on a total return basis, which combines principal and

dividend income changes for t he periods shown. Principal changes are based on the diff erence between the beginning and closing net asset values for the period and assume

reinvestment of all dividends and distr ibutions paid. All applicable expenses such as advisory fees have been included in calculating performance. It should not be assumed that

recommendations made in the future will be profit able or will equal the performance of the security examples discussed. Current month-end performance data may be obtained by

calling toll-f ree, 1-800-982-4372.

You should consider the Funds investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus

details the Fund's objective and policies and other matters of interest to the prospective investor. Please read this Prospectus

carefully before investing. The Prospectus may be obtained by visiting the website at www.fpafunds.com, by email atcrm@fpafunds .com, toll -free by calling 1-800-982-4372 or by contacting the Fund in wri ting.

Statistics have been obtained from sources believed to be reliable, but the accuracy and completeness cannot be guaranteed. The Standard & Poor's 500 Stock Index (S&P 500) is acapitalization-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. The index does not reflect any commissions or fees which would be incurredby an investor purchasing the stocks it represents. The Consumer Price Index (CPI) is an unmanaged index representing the rate of the inflation of the U.S. consumer prices as determined by theU.S. Department of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time. 60% S&P500/40% Barclays Aggregate Indexis a hypothetical combination of unmanaged indices comprised of 60% S&P 500 Index and 40% Barclays Aggregate Index, the Fund's neutral mix of 60% stocks and 40% bonds.

Investments in mutual funds carry risks and investors may lose principal value. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, oreconomic developments. The Fund may purchase foreign securities, including American Depository Receipts (ADRs) and other depository receipts, which are subject to interest rate, currencyexchange rate, economic and political risks; this may be enhanced when investing in emerging markets. Small and mid cap stocks involve greater risks and they can fluctuate in price more thanlarger company stocks. Short-selling involves increased risks and transaction costs. You risk paying more for a security than you received from its sale.

Interest rate risk is when interest rates go up, the value of fixed income securities, such as bonds, typically go down and i nvestors may lose principal value. Credit risk is the risk of loss of principaldue to the issuers failure to repay a loan. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. Ifan issuer defaults the security may lose some or all of its value.

The return of principal in a bond investment is not guaranteed. Bonds have issuer, interest rate, inflation and credit risks. Lower rated bonds, callable bonds and other types of debt obligationsinvolve greater risks. Mortgage-backed securities and asset-backed securities are subject to prepayment risk and the risk of default on the underlying mortgages or other assets.

The portfolio holdings as the most recent quarter end may be obtained at http://fpafunds.com/docs/funf-holdings/2015-09-crescent---excluding-cusip-and-sedol.pdf?sfvrsn=2

The FPA Funds are distributed by UMB Distribution Services, LLC, 235 W. Galena Street, Milwaukee, WI, 53212.

steve romick fpa crescent fund q3 investor presentation

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