FPA Crescent Fund Team/Personnel Changes:
Inception of FPA Crescent is 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. A redemption fee of 2.00% will be imposed on redemptions within 90 days. CPI data is not yet available for September 2014.
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.
- Trimmed some positions, including The Bank of New York Mellon Corporation (NYSE:BK), Regis Corporation (NYSE:RGS), Johnson & Johnson (NYSE:JNJ), Norsk Hydro ASA (ADR) (OTCMKTS:NHYDY) and WellPoint Inc (NYSE:WLP).
- Added to a few names, including Bank of America Corp (NYSE:BAC), Naspers Limited (JSE:NPN) and Meggitt plc (LON:MGGT).
- Continued to add to newly purchased positions that we have not disclosed. Purchased two additional equity positions in the quarter.
- Top contributors* for the quarter were Microsoft Corporation (NASDAQ:MSFT), CVS Health Corp (NYSE:CVS), Citigroup Inc (NYSE:C) and Alcoa Inc (NYSE:AA). Top detractors* were Owens-Illinois Inc (NYSE:OI), Canadian Natural Resources Limited (TSE:CNQ), Walgreen Company (NYSE:WAG)’s and Oracle Corporation (NYSE:ORCL).
- Gross exposure to equities has increased slightly from the past few quarters at approximately 55%. Fixed Income remains extremely low at around 0.7%.
- Add to private investments, specifically real estate partnerships.
- Cash remains approximately 45.4%.
- Macroeconomic: Volatility remains low. We remain cautious and vigilant with hopes of more opportunity to come.
- Nothing new, still remains difficult to find bargains. We are adhering to our investment philosophy and continue to add names that match our investment criteria. We are looking at areas, such as electronics, insurance, property rental.
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, sales charges, 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 email@example.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.
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.
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; derivatives may increase volatility.
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. Click here for current holdings.
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.
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. Balanced benchmark (60% Russell 2500/ 40% Barclays Government/Credit) 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.
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.