s

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FPA Crescent
Fund
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FPACX*

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Fourth Quarter 2015

Webcast Presentation

Presented by: Steven Romick, Mark Landecker, and Brian Selmo

*Charles Schwab Ticker: FPC1Z

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Philosophy

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

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Absolute Return Focus

Flexible Approach
Deep Research

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Performance
FPA Crescent
Annualized returns

$120,000
$100,000
$80,000

$20,000
$0
1993

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1995

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1997

1999

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2001

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9.01%

7.91%

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Sharpe ratio

$40,000

S&P 500

10.39%

Standard deviation

$60,000

60% S&P 500/

40% Barclays
Aggregate

2003

2005

10.12%

14.71%

9.00%

0.53

0.27

0.32

2007

2009

2011

2013

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FPACX

$93,096

S&P 500

$70,224

60% S&P/40% BA

$55,804

2015

Please refer to the next page for standardized performance.

Average Annual Total Returns as of December 31, 2015 for FPA Crescent
1 Year, -2.06%
5 Years, 7.68%
10 Years, 7.11%
* 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, 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. Expense
ratio 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 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. Standard deviation is a measure of the dispersion of a set of data from its mean. Sharpe ratio
is the average return earned in excess of the risk-free rate per unit of volatility or standard deviation.

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Performance
Trailing Performance (%)
As of Date: 12/31/2015

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Market Cycle Performance

Inception* 20 Years

FPA Crescent
S&P 500
MSCI ACWI
CPI
60% S&P500/40% BC Agg

15 Years

10 Years

5 Years

3 Years

1 Year

YTD

7.11
7.31
1.85
6.48

7.68
12.57
6.09
1.53
8.95

8.40
15.13
7.69
0.95
9.62

-2.06
1.38
-2.36
0.66
1.28

-2.06
1.38
-2.36
0.66
1.28

10.39
9.01

9.78
8.19

10.25
5.00

NA
7.91

2.20
7.36

2.08
5.31

Annual Performance (%)

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FPA Crescent
S&P 500
MSCI ACWI
CPI
60% S&P500/40% BC Agg

2015

2014

2013

-2.06
1.38
-2.36
0.66
1.28

6.64
13.69
4.16
0.68
10.62

21.95
32.39
22.80
1.53
17.56

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QTR
2.80
7.04
5.03
0.12
4.01

3/25/0010/9/07

10/10/0712/31/15

14.70
2.00
2.75
3.97

6.12
5.57
1.50
1.61
5.49

2012

2011

2010

2009

2008

2007

2006

2005

2004

10.33
16.00
16.13
1.77
11.31

3.02
2.11
-7.35
3.03
4.69

12.04
15.06
1.44
12.13

28.37
26.46
2.81
18.40

-20.55
-37.00
-0.02
-22.06

6.84
5.49
4.11
6.22

12.43
15.79
2.52
11.12

10.83
4.91
3.34
4.00

10.21
10.88
3.34
8.30

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%.

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*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.

t
rs

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.

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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 of
First Pacific Advisors, LLC (FPA). Certain information contained herein has been obtained from third parties and is believed to be reliable; however, FPA assumes no
responsibility 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.

The story of 2015

2015 Commodity Price Chart

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Broad global indices largely declined

MSCI ACWI:

-2.36%

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Russell 3000:

0.48%

Russell 3000 Growth:

5.09%

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Growth outperformed value

Russell 3000 Value:

-4.13%

Barclays U.S. Corporate High Yield:

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-4.47%

Domestic high yield declined

Source: Morningstar Direct. Performance shown for 2015 in USD with dividends reinvested.

S&P 500 performance has become increasingly narrow

Without the five top contributors in the index, the S&P 500 would have also been down.

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Top five contributors to 2015 S&P 500 performance

Company

Alphabet (Google)
Amazon
Facebook
General Electric
Microsoft

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Average
Total

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S&P 500

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2015
Total Return

S&P 500 Return

Contribution

46.6%

0.86%

36.4

117.8%

0.87%

979.6

34.2%

0.38%

105.7

27.5%

0.36%

22.7

22.7%

0.45%

22.1

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49.8%

S&P 500 ex-top five contributors

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Trailing P/E

233.3

2.93%

1.38%
-1.55%

Source: Bloomberg; FPA calculations. Analysis assumes December 31, 2014 index weightings remained constant throughout 2015.

Bigger was better

Return by market capitalization

2015 S&P 500

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Market Cap

2015 Average
Total Return

>$100B

4.39%

$50-100B

2.38%

$10-50B

-3.22%

$5-10B

-0.72%

<$5B

-19.60%

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Source: Bloomberg; FPA calculations. Analysis assumes December 31, 2014 S&P 500 index weightings remained constant throughout 2015.

And biggest was best

Return contribution
2015 S&P 500

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Market
Capitalization
Largest 30

The other 470

Total

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Return
Contribution

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2.93%

-1.55%
1.38%

Source: Bloomberg; FPA calculations. Largest 30 consist of the largest 30 market capitalization stocks in the S&P 500 at year-end 2014. Return contribution is calculated as
2015 total return multiplied by the average monthly 2015 implied index weights based on market capitalization. The S&P 500 actually consisted of between 502 and 506
securities throughout 2015. By The other 470, we simply mean the remaining securities outside the largest 30.

Winners and losers

2015 - Q4
Winners

Percent of
Portfolio

Microsoft

0.91%

3.55%

Meggitt

General Electric

0.36%

1.83%

Naspers/Tencent Pair Trade

Alphabet (A and C Shares)

0.35%

1.87%

Undisclosed

American International Group

0.24%

2.73%

Owens-Illinois

United Technologies

0.22%

2.77%

Navistar Sr. Notes (Various Issues)

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2015 - Year
Winners

Losers

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Performance
Contribution

i
f
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Performance
Contribution

Percent of
Portfolio

-0.33%

1.29%

-0.18%

-0.12%

-0.15%

1.52%

-0.15%

0.90%

-0.14%

0.67%

Performance
Contribution

Percent of
Portfolio

Performance
Contribution

Percent of
Portfolio

0.85%

3.55%

Oracle

-0.72%

4.14%

0.54%

1.87%

Alcoa

-0.64%

2.26%

0.44%

1.83%

Joy Global

-0.55%

0.17%

American International Group

0.26%

2.73%

Naspers/Tencent Pair Trade

-0.53%

-0.12%

CVS

0.24%

0.00%

Meggitt

-0.42%

1.29%

Microsoft
Alphabet (A and C Shares)
General Electric

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Losers

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Based on weighted contribution to quarterly performance of the Fund. Percentage of portfolio as of December 31, 2015.
As of December 31, 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. The discussions of Fund investments represent the views of the Fund's managers at the time of each report 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 its application. It should not be assumed that
most 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.

Active security selection drives differentiated returns

2007 to
2015
CAGR

2015

2014

FPACX long equity

9.63%

-1.04%

13.67%

39.62%

17.69%

6.25%

S&P 500

6.40%

1.38%

13.69%

32.39%

16.00%

Alpha vs. S&P 500

3.23%

-2.42%

-0.02%

7.23%

S&P 500 Value

4.25%

-3.13%

12.36%

Alpha vs. S&P 500 Value

5.38%

2.09%

MSCI ACWI

3.10%

Alpha vs. MSCI ACWI

6.53%

P
t

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-2.36%
1.32%

2013

2012

2011

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2010

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2009

2008

22.30%

38.39%

-38.27%

11.47%

2.11%

15.06%

26.46%

-37.00%

5.49%

1.69%

4.14%

7.24%

11.93%

-1.27%

5.98%

31.99%

17.68%

-0.48%

15.10%

21.18%

-39.22%

1.99%

1.31%

7.63%

0.01%

6.73%

7.20%

17.21%

0.95%

9.48%

4.16%

22.80%

16.13%

-7.35%

12.67%

34.63%

-42.19%

11.66%

9.51%

16.82%

1.56%

13.60%

9.63%

3.76%

3.92%

-0.19%

fi i

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2007

Past performance is not a guarantee of future results.

Source: FPA and Morningstar Direct. FPACX returns are gross of fees as of December 31, 2015.

10

Market cycle returns

3/25/2000 10/9/2007
$18,000

$30,000
FPACX

S&P 500

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10/10/2007 12/31/2015

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FPACX

Russell 2500
$16,000

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$25,000

$14,000

$20,000

$12,000
$10,000

$15,000

S&P 500

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MSCI ACWI

$8,000

$10,000

$6,000

$5,000

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Annualized
Return

FPA Crescent Fund

(Average liquidity = 29.50%)1

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Russell 2500 Index

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S&P 500 Index

60% S&P 500 / 40% BC Agg.

$4,000

Max
Drawdown

Annualized
Return

Max
Drawdown

14.70%

-13.44%

FPA Crescent Fund

(Average liquidity = 31.30%)1

6.12%

-30.60%

8.08%

-33.82%

MSCI ACWI

1.50%

-57.49%

2.00%

-45.83%

S&P 500 Index

5.57%

-54.71%

3.97%

-23.88%

60% S&P 500 / 40% BC Agg.

5.49%

-35.30%

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 twomonth 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 appear
to 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.

11

Downside capture less risk over the long-term

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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)

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We have successfully protected capital during large drawdowns.

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Drawdowns in >10% market declines*

Added large caps to tool kit

2007-2009
FPA Crescent

-30.6%

MSCI ACWI

-57.5%

Russell 3000

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-55.1%

S&P 500

-54.7%

Drawdown vs MSCI ACWI

a
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Drawdown vs Russell 3000

t
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Added developed non-US and EM stocks to tool kit

2010

2011

2015-2016

-7.2%

-12.8%

-11.7%

-13.9%

-22.4%

-18.1%

-15.6%

-20.2%

-13.0%

-15.0%

-18.5%

-11.3%

52%

57%

65%

56%

Our quest for value has increasingly taken us overseas and our portfolio is more global than it has been in the past.
Currently, almost half the equity holdings (totaling almost a third of the Funds equity exposure) are foreign-domiciled.

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*Since the 2007 S&P 500 peak

Source: Morningstar Direct, FPA. Long-term will generally include bear markets (20%+ declines) and other large corrections. Equity exposure data as of 12/31/2015.
Drawdowns referenced above are individual max drawdowns from 2007-2009, and S&P 500 peak and trough dates (4/23/2010-7/2/2010, 4/29/2011-10/3/2011, and
5/21/2015-1/20/2016). The Fund added large capitalization stocks to its opportunity set beginning around 2007 and added developed non-U.S. and emerging market stocks to
its opportunity set beginning around 2009.

12

Geographic exposure

Domicile

o
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North America
South America / Latin America
Uncategorized Americas
Western / Northern Europe
Central / Eastern Europe
Asia / Pacific
Middle East / Africa

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Uncategorized Non-US

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Revenue

71.0%

35.2%

0.0%

2.6%

10.1%

24.8%

14.8%

3.8%

1.5%

-4.3%

6.4%

4.7%

10.6%

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18.8%

Domicile and revenue composition for the equity positions only in the FPA Crescent Fund as of December 31, 2015. Source: Bloomberg

13

Portfolio characteristics

FPACX
Q4 2015

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Market Capitalization, Wgt. Avg. (in millions)1

Market Capitalization, Median (in millions)1
Price/Earnings2
Price/Book3
Debt/Capital4
Return on Equity5

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FPACX
Average

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S&P 500

$112,169

$30,165

$26,168

$9,314

21.0

16.8

20.5

1.6

1.7

2.8

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$140,350
$18,062

-18.9%

8.1%

53.8%

11.3%

12.8%

17.7%

Source: FPA and Mellon

For 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.
2 P/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.
3 Average 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.
4 Average since 12/31/1997, based on earliest data. Debt/Total Capital for 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.
5 Average 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.

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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 via http://www.fpafunds.com/crescent or by calling toll-free, 1-800-982-4372.

14

Portfolio allocation

Risk Asset

Year End
2015

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Year End
2014

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,

Average
Since Inception

Common stock, long

59.5%

55.5%

Common stock, short

-3.6%

-4.2%

3.9%

1.4%

12.4%

1.0%

1.4%

0.6%

0.4%

0.8%

0.3%

61.2%

54.9%

63.3%

46

51

38

Corporate debt
Mortgages
Other
Exposure, Net

c
a

No. of Equity Positions

s
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P
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fi i

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53.2%
-4.8%

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. The discussions of Fund investments represent the views of the Fund's managers at the time of each report 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 its application. It should not be assumed that most recommendations made in the
future will be profitable or will equal the performance of the securities.

15

Global markets tailwind declining interest rates

Rates cant go down forever.

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10-year government bond rate

o
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12%

10-Year Government Bond Rate

10%

8%

6%

4%

2%

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0%

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U.S.

Japan

Euro Area

Source: https://data.oecd.org/interest/long-term-interest-rates.htm. Euro Area consists of 19 countries. As of December 31, 2015.

16

Global markets tailwind low/negative interest rates

Negative sovereign yields across Europe and Japan.

-0.12%

0.05%

0.21%

0.36%

0.51%

Switzerland
Germany
Austria
Belgium
Finland
Netherlands
Denmark
France
Ireland
Sweden
Japan
Italy

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Spain

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Average Yield

a
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-0.37%

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Bond Maturity Year

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10

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f
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-0.35%

-0.25%

Negative

0.68%

0.91%

Positive

Source: Bloomberg. As of January 8, 2016.

17

Global markets tailwind - QE

Central bank balance sheets vs MSCI ACWI

s
r

o
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A
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$10,000,000

Millions of USD

$8,000,000

$6,000,000

c
a

$4,000,000

P
t

$2,000,000

s
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$-

2003

2004

2005

L
,
400
350
300
250

fi i

2006

450

200

MSCI ACWI

$12,000,000

C
L

150
100
50
0

2007

2008

2009

Central Bank Balance Sheets

2010

2011

2012

2013

2014

2015

MSCI ACWI

Source: Federal Reserve Bank of St. Louis; Bloomberg. Central Bank Balance Sheets total is the sum of Federal Reserve, Bank of Japan, and ECB assets. ECB assets are the
aggregate assets of 11-19 countries. Asset values converted into USD using the applicable currency cross rates at each year-end.

18

U.S. market tailwind share repurchases

s
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Source: I/B/E/S; Company Reports, Deutsche Bank. http://www.businessinsider.com/contribution-buybacks-eps-growth-2015-11.

19

U.S. market tailwind stock scarcity value

Number of Listed Firms in U.S. Stock Market, 1975-2015
Excluding Investment Funds and Trusts

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Source: http://www.bloombergview.com/articles/2015-06-24/where-have-all-the-publicly-traded-companies-gone-

20

U.S. stocks an endangered species?

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Source: Wilshire Associates. Number of index constituents as of September 30, 2015.

21

Historic P/E ratio using 10-year average earnings

45
40

Price-Earnings Ratio

35

Jan. 13, 2016

P/E

10-Year UST

Current
Since 1881
Since 1930
Since 1950
Since 1970

24.0
16.7
17.6
19.0
19.6

2.13%
4.59%
5.09%
5.81%
6.67%

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d
A
c

30
25
20
15

c
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10
5
0
1881

P
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1894

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1908

1921

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18%
16%
14%
12%
10%
8%

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6%

10-Year US Treasury Notes

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50

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4%
2%
0%

1934

1948

CAPE Price E10 Ratio

1961

1974

1988

2001

2015

Interest Rate

P/E is in the 89th percentile

Source: Shiller, Robert J. Online Data Robert Shiller, www.econ.yale.edu/~shiller/data.htm. Data as of January 13, 2016. P/E or price-to-earnings is a valuation ratio of a
companys current share price compared to its per-share earnings. Past performance is no guarantee of future results.

22

Stock valuations are historically high

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S&P 500 valuations at most recent market peaks vs. year-end 2015

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Price/Earnings
(median)

Price/Sales
(median)

Price/Book
(median)

18.9

1.4

2.9

18.2

1.7

3.1

18.7

2.1

2.9

March 31, 2000

September 30, 2007
December 31, 2015

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Source: Bloomberg. As of December 31, 2015.

23

What comes next?

S&P 500
2000-2015

2000

1800

1600

1400

1200

1000

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800

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600

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2200

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Source: Bloomberg. As of December 31, 2015.

24

More volatility likely

S&P 500 Volatility (VIX)

s
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90

o
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A
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80
70
60
50
40
30
20
10
0

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Source: Bloomberg, March 2,1990 December 31, 2015.

25

Opportunistic high yield exposure

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BofA Merrill Lynch US High Yield Master II Option-Adjusted Spread

vs
FPA Crescent High Yield/Distressed Exposure

s
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High Yield Option-Adjusted Spread

18%
16%
14%
12%
10%
8%
6%
4%

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2%

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30%

25%

20%

15%

10%

5%

0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% of Assets in High Yield

35%

% of Assets in High Yield

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A
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20%

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0%

High Yield Option-Adjusted Spread

Source: FPA, Federal Reserve Bank of St. Louis, December 31, 2015.

26

High yield spreads have widened but mostly energy

High yield spreads ex-energy and metals

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Source: J.P. Morgan. As of December 31, 2015.

27

Wider spreads but yields still below average

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BofA Merrill Lynch High Yield Index (YTM) vs. average of 5- and 10-year US Treasury yields

As of Dec. 31

5-Year UST

Spread
vs. 5-Year

10-Year UST

Spread
vs. 10-Year

Current

8.9%

1.8%

7.1%

2.3%

6.6%

High

21.7%

9.5%

19.8%

9.3%

18.8%

Low

5.8%

0.6%

2.8%

1.5%

2.8%

Average

10.4%

4.5%

5.9%

5.0%

5.4%

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High Yield

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Source: Federal Reserve Bank of St. Louis. BofA Merrill Lynch US High Yield Master II Index. As of December 31, 2015.

28

Default rate remains low

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Default Rate (based on par amount) Trailing Twelve Months

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i
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o
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Source: J.P. Morgan. January 4, 2016.

29

Recoveries have been worse of late

High Yield Bond Recoveries (1982-2015)

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Source: Moody's Investors Service; J.P. Morgan. January 4, 2016.

30

High yield bond return distribution

Gross yield (Default rate x (1-Recovery rate) = Net yield
Gross Yield
Case 1

Default Rate

12/31/2014

8.9% BAML HY Index

12/31/2015

Case 3

Case 4

13.4%

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3.6% avg

41.5% avg

11.0% peak

41.5% avg

11.0% peak

22.0% trough

4.9%
0.6%

-1.6%

3.6% avg

41.5% avg

6.8%

11.0% peak

41.5% avg

2.5%

11.0% peak

22.0% trough

0.3%

FPA Crescent

3.6% avg

41.5% avg

11.3%

12/31/2015

11.0% peak

41.5% avg

7.0%

11.0% peak

22.0% trough

4.8%

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20.0%

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Net Yield

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7.0% BAML HY Index

Case 2

Recovery Rate

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High Gross

3.6% avg

41.5% avg

17.9%

Yield Environment

11.0% peak

41.5% avg

13.6%

11.0% peak

22.0% trough

11.4%

Source: FPA; J.P. Morgan. 1982-2015.

31

Unprecedented high yield issuance

High Yield New Issues 1997-2015

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Source: Barclays Capital. As of January 1, 2016.

32

Easy credit increase in defaults

s
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t
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a
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o
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d
A
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Source: J.P. Morgan; S&P LCD. January 4, 2016.

33

Refinancing needs will be significant

High Yield Bond and Institutional Loan Maturities

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rs

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$760 billion in high yield bonds mature in 2020-2022, roughly half the high yield market.

i
F

Source: J.P. Morgan; Markit. As of December 2015.

34

s
r

Q&A

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Holdings as of December 31, 2015

Consumer Discretionary
Genting Malaysia Berhad
Interpublic Group of Companies
Naspers Limited N Shares
WPP PLC

5.46%
0.38%
1.15%
2.46%
1.47%

Consumer Staples
Anheuser-Busch Inbev SA/NV ADR
Carlsberg A/S B
Henkel AG & Co. KGAA
Orkla ASA
Unilever N.V.
Walgreens Boots Alliance Inc.

3.93%
0.71%
0.94%
0.68%
0.34%
1.04%
0.22%

Energy
Gazprom OAO - ADR
Halliburton Company
Lukoil OAO - ADR
Occidental Petroleum
Rosneft Oil Company Reg S GDR
Surgutneftegas-Preference

2.47%
0.26%
0.55%
0.26%
1.16%
0.11%
0.13%

Financials
Alleghany Corporation
American Express Company
American International Group, Inc.
Aon
Bank of America Corporation
CIT Group
Citigroup
Groupe Bruxelles Lambert S.A.
Sberbank of Russia Preference
Sberbank of Russia - ADR

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Health Care
Express Scripts
Thermo Fisher Scientific Inc.

1.64%
0.36%
1.28%

7.99%
1.24%
1.83%
0.32%
0.37%
0.17%
1.29%
2.77%

16.57%
1.13%
2.19%
0.94%
0.93%
3.55%
4.14%
0.75%
2.31%
0.63%

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Corporate Bonds & Notes

Bombardier
California Resources Corporation
Consol Energy
Glencore (Various issues)
iStar Financial Inc.
Navistar International Corporation
RELP (4-11)
Rice Energy
Ship Loan Participation (Northern Shipping)
Springleaf Financial Services
Walter Investment Management Corporation

3.89%
0.45%
0.12%
0.70%
0.36%
0.13%
0.67%
0.41%
0.07%
0.46%
0.17%
0.35%

Mortgages
Stanwich Mortgage Loan Trust (Various
issues)
Sunset Mortgage Loan Company

0.98%

Derivatives/futures

0.14%

s
r

o
s
i
v
d
A
c

Information Technology
Analog Devices, Inc.
Cisco Systems
Google Inc. Class A
Google Inc. Class C
Microsoft
Oracle Corporation
Qualcomm Incorporated
TE Connectivity
Yahoo

i
f
i
c

14.92%
0.71%
1.01%
2.73%
3.37%
1.64%
1.16%
2.76%
1.26%
0.12%
0.16%

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Industrials
Esterline Technologies Corporation
General Electric Co.
Jardine Matheson Holdings Limited
Jardine Strategic Holdings Limited
Joy Global Inc.
Meggitt PLC
United Technologies Corporation

0.18%
0.80%

Materials
Alcoa Inc.
MMC Norilsk Nickel OJSC - ADR
Owens-Illinois

3.47%
2.26%
0.31%
0.90%

Cash and equivalents (net of liabilities)

38.76%

U.S. government and agencies

34.09%

Other
Undisclosed

3.09%
3.09%

Commercial paper, money market

4.67%

Total net assets

100%

Common stocks - short

Limited Partnerships
U.S. Farming Realty Trust I & II

-3.60%
0.29%
0.29%

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.
36

Disclaimer
These slides are intended as supplemental material to the 4th Quarter 2015 FPA Crescent audio presentation that is posted on our website fpafunds.com.

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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, January 29, 2016 and are subject to change
based 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 guarantee
of 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 to
any securities, products or services discussed.

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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 redeem your investment it may be worth more or less than its original cost. 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. It should not be assumed that
recommendations made in the future will be profitable or will equal the performance of the security examples discussed. Current month-end performance data may be obtained by
calling toll-free, 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 at
crm@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.

i
f
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c

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 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. This index is considered a measure of large capitalization stock performance. The index does not reflect any commissions or fees which would be incurred
by 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 the
U.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 Index
is 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.

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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, or
economic developments. The Fund may purchase foreign securities, including American Depository Receipts (ADRs) and other depository receipts, which are subject to interest rate, currency
exchange 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 than
larger company stocks. Short-selling involves increased risks and transaction costs. You risk paying more for a security than you received from its sale.

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Interest rate risk is when interest rates go up, the value of fixed income securities, such as bonds, typically go down and investors may lose principal value. Credit risk is the risk of loss of principal
due 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. If
an issuer defaults the security may lose some or all of its value.

i
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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 obligations
involve 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.

37