4
Morningstar Analyst Rating
06-04-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
§
Positive
Positive
Positive
Positive
Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
31.34
29.29
26.78
26.79
24.82
19.59
25.29
26.40
25.17
23.55
21.79
17.40
Total Return %
11.34
10.33
3.02
12.04
28.37
-20.55
6.84
12.43
10.83
10.21
26.15
3.71
+/-M* MdTgRk
4.94
-1.71
2.43
-0.29
6.60
1.64
-1.79
-0.52
3.79
-1.27
3.67
10.40
+/-Mstr Md Ag Rk
2.43
-4.00
4.95
-2.88
0.82
10.10
-2.10
-3.56
1.98
-3.86
-2.99
16.01
Income Return %
0.17
0.45
1.16
1.30
1.56
1.47
2.88
2.13
1.43
0.37
0.86
2.52
Capital Return %
11.17
9.88
1.86
10.74
26.81
-22.02
3.96
10.30
9.40
9.84
25.29
1.19
Total Rtn % Rank Cat
5
79
13
47
23
10
37
25
2
30
9
1
Income $
0.05
0.12
0.31
0.32
0.31
0.37
0.75
0.53
0.34
0.08
0.15
0.43
Capital Gains $
1.11
0.12
0.51
0.64
0.00
0.23
2.16
1.34
0.58
0.37
0.00
0.00
Expense Ratio %
.
1.16
1.13
1.17
1.23
1.22
1.25
1.39
1.40
1.41
1.54
1.50
Income Ratio %
.
0.62
0.87
1.32
1.65
2.06
2.68
1.45
0.57
0.67
2.06
1.73
Turnover Rate %
.
26
32
32
32
29
29
24
17
20
39
34
Net Assets $mil
11,744
9,917
7,479
4,813
2,659
1,191
1,318
1,411
1,280
915
381
209
Performance
05-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-2.45 14.97
8.76 5.25 28.37
4.27 -5.91
7.38 6.35 12.04
4.44 0.50
-9.73 8.72
3.02
6.65 -2.91
4.55 1.91 10.33
7.22
. . . .
Trailing
Total
+/- M* +/- Mstr
%Rank Growth of
Return% MdTgRk Md Ag Rk
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
6.09 3.07
1.84
9 10,609
13.31 5.69
2.56
5 11,331
21.70 5.63
0.14
8 12,170
12.55 1.77
-0.09
15 14,257
6.45 1.47
1.88
8 13,669
9.31 1.52
0.66
2 24,356
8.68
. .
3 34,853
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
11.54
14
0.89
76
5.63
6
0.77
50
8.35
1
0.88
42
Potential Capital Gain Exposure: 17% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
21.70
3 Yr
12.55
+Avg
Avg
5 Yr
6.45
+Avg
-Avg
10 Yr
9.31
High
Avg
Incept
11.06
Other Measures
Standard Index
Best Fit Index
M* MdTgRk Mstr Lft Mod 2040
Alpha
2.0
3.3
Beta
0.96
0.62
R-Squared
90
93
Standard Deviation
9.20
Mean
12.55
Sharpe Ratio
1.33
Morningstar’s Take
by Dan Culloton 06-04-13
Even with a more limited palette, FPA Crescent paints
a promising picture.
The fund has achieved great returns and has gotten
noticed. Since its 1993 inception through May 31,
2013, this fund’s 11% annualized gain beats all comers
in the moderate-allocation category. Furthermore, the
fund whose stated aim is to deliver equitylike returns
without the attendant volatility also has bested about
90% of domestic-stock funds in that time while losing
less than most stock and allocation funds in down
markets, such as 2002, 2008, and 2011. That’s
attracted investors scarred by this century’s bear
markets. Assets in the fund have swelled from around
$1 billion in 2008 to nearly $12 billion.
Success has its downside. The fund’s heavier asset
load limits its ability to invest as much in small- and
mid-cap stocks, which helped its past performance.
The fund needs a larger share of average daily trading
volume to build a smaller average position size in
small- and mid-caps than it did in 2007, shortly before
it fully reopened to investors. At the end of 2007, the
fund’s average small- and mid-cap long position of
1.30% typically required less than a day of trading
volume. Recently, its average small- and mid-cap long
position of 0.91% needed about three days’ volume.
That limitation need not be a handicap, though.
Steve Romick, the manager here since inception, is an
omnivorous contrarian who has demonstrated over
two decades that he can sniff out value among stocks
of all sizes and bonds of varying credit quality. His
advantage is patiently waiting for value to emerge and
then deploying accumulated cash dispassionately
when and where it does. The market cap of the
securities that he invests in matters less than his
insistence on a margin of safety, and there is no sign
of compromise on that front. Indeed, the fund has
nearly a third of the portfolio in cash because Romick
says attractive opportunities have diminished as
stocks have risen and bond yields have fallen. That
will change eventually; when it does, Romick now has
a larger team to help sift for bargains. This fund is
ready for what comes next.
Address:
FPA Funds Trust
Los Angeles, CA 90064
800-982-4372
Web Address:
Inception:
06-02-93
Advisor:
First Pacific Advisors, LLC
Subadvisor:
None
NTF Plans:
Schwab OneSource, DATALynx NTF
Minimum Purchase:
$1500
Add: $100 IRA: $100
Min Auto Inv Plan:
$100
Add: $100
Sales Fees:
No-load, 2.00%R
Management Fee:
1.00%
Actual Fees:
Mgt:1.00% Dist:
.
Expense Projections:
3Yr:$400
5Yr:$692 10Yr:$1523
Income Distribution:
Semi-Annually
Data through May 31, 2013
FPA Crescent
Ticker
Status Yield Total Assets
Mstar Category
FPACX Open
0.5% $11,744 mil
Moderate Allocation
42% 46% 54% 40% 40% 50% 58% 59% 54%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13
Historical Profile
Return
Risk
Rating
High
Average
Highest
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
M* MdTgRk
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.0
26.0
Portfolio Analysis
03-31-13
Total Stocks:42
P/E
YTD % Net
Share change since 12-31-12
Sectors
Ratio Return % Assets
Aon
Finan Svs
18.6 13.75 3.39
CVS Caremark Corp
Cnsmr Def
15.9 19.83 3.30
Microsoft Corporation
Technology 14.7 32.72 2.96
Covidien, Ltd.
Hlth care
14.7 10.96 2.90
Thermo Fisher Scientific
Hlth care
18.6 38.63 2.49
Omnicare Inc
Hlth care
20.9 28.06 2.10
Cisco Systems Inc
Technology 12.7 24.84 2.02
Anheuser-Busch Inbev SA A Cnsmr Def
19.6 7.79 1.90
Google, Inc. Class A
Technology 21.9 21.45 1.79
Date of
Amount
Value % Net
Total Fixed-Income:26
Maturity
$000
$000 Assets
U.S. Farming Realty Trust
34,416 37,361 0.33
Stanwich Mtg Ln Tr Ser 20
08-15-50 46,091 24,309 0.21
Istar Finl 5.875%
03-15-16 18,785 19,442 0.17
Stanwich Mtg Ln Tr Ser 20
02-28-57 32,187 16,229 0.14
Rri Engy 7.625%
06-15-14 15,230 16,182 0.14
Amer Gen Fin Medtm Srnt B
12-15-17 15,366 15,472 0.14
Stanwich Mtg Ln Tr Ser 20
09-15-50 28,433 15,217 0.13
Stanwich Mtg Ln Tr Ser 20
06-15-51 33,941 15,072 0.13
Stanwich Mtg Ln Tr 2010-4
08-31-49 24,587 11,489 0.10
Equity Style
Fixed-Income Style
Style: Blend
Size: Large-Cap
Duration:
.
Quality:
.
Avg Eff Duration
.
Avg Eff Maturity
.
Avg Credit Quality
.
Avg Wtd Coupon
5.88%
figure provided by fund
1
1
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.56
1.41
1.06
5.27
1.92
0.96
0.75
0.88
0.77
0.80
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.13
3.95
-4.56
9.81
0.89
1.10
3.56
NMF
12.74
0.20
Market Cap %
Giant 43.6
Large 37.4
Mid 17.1
Small
1.9
Micro
0.0
Avg $mil:
35,006
Composition - Net
(% of Stock)
Cash 38.1
Stocks 53.7
Bonds 2.1
Other
6.1
Foreign 21.9
Sector
Weightings
% of
Stocks
Rel M*
MdTgRk High
3 Year
Low
Cyclical 33.68 0.88
BasicMat 0.00 0.00 2 0
CnsmrCyc13.84 1.22 14 5
FinanSvs 19.84 1.17 20 11
Real Est 0.00 0.00
. .
Sensitive 28.55 0.74
CommSrvs 0.00 0.00 4 2
Energy 6.37 0.68 21 6
Industrl
0.80 0.06 5 1
Technlgy 21.38 1.77 21 6
Defensive37.77 1.63
CnsmrDef19.81 2.20 28 18
Hlthcare 17.96 1.78 23 16
Utilities 0.00 0.00
. .
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2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or
timely. Past performance isnoguaranteeof future results.Accessupdated reportsat
Toorder reprints, call312-696-6100.
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