Media

Janaury 10, 2013

Associated Press 'The Big Story': Morningstar comments on FPNIX

In 'The Big Story' from the Associated Press, Morningstar analyst Michelle Canavan mentions FPA New Income among "bond funds that offer strong potential to avoid losses when rates rise" ("Bond investors: Heed warnings about rise in rates," by Mark Jewell).For this story click here.

The views expressed in this story are those of the author at the time created.  They do not necessarily reflect the views of the Fund, Advisor, or the Distributor.  These views are subject to change at any time based on market and other conditions, and the Fund, Advisor, or the Distributor disclaimes any responsibility to update such views.  No forecasts can be guaranteed. These views may not be relied upon as investment advice or as indication of trading intent on behalf of any First Pacific Advisors portfolio or the Distributor. and should not be construed as an offer to sell or a solicitation of an offer to buy securities or any product mentioned in this article.

For standardized performance as of the most recent calendar quarter for FPA New Income Fund, please 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 may be obtained via http://www.fpafunds.com/newincome or by calling toll-free, 1-800-982-4372. 

 As of December 26, 2012, FPA New Income was rated Silver by Morningstar. The Morningstar Analyst Rating is not a credit or risk rating.  It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc.  Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price.  Morningstar’s analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis.  Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary.  The Analyst Rating ultimately reflects the analyst’s overall assessment and is overseen by Morningstar’s Analyst Rating Committee.  The approach serves not as a formula but as a framework to ensure consistency across Morningstar’s global coverage universe.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating.  A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction.  A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction.  A ”Bronze” rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars. Nor does it distinguish itself very positively.  A ‘Negative” rated fund is flawed in at least one it not more pillars and is considered an inferior offering to its peers.  Analyst Ratings are reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/US/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund Morningstar analyst Ratings are based on Morningstar’s current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such.  Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected. Copyright 2013 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.

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 crm@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.

For holdings in the FPA New Income Fund as of the most recent calendar quarter, please click here.

Investments in mutual funds carry risks and investors may lose principal value. Capital markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The Fund can purchase foreign securities, which are subject to interest rate, currency exchange rate, economic and political risks. The securities of smaller, less well-known companies can be more volatile than those of larger companies.

The return of principal in a bond fund is not guaranteed. Bond funds have the same issuer, interest rate, inflation and credit risks that are associated with underlying bonds owned by the fund. Lower rated bonds, convertible securities and other types of debt obligations involve greater risks than higher rated bonds. Mortgage securities and collateralized mortgage obligations (CMOs) are subject to prepayment risk and the risk of default on the underlying mortgages or other assets; derivatives may increase volatility. High yield securities can be volatile and subject to much higher instances of default.

FPA Funds are distributed by UMB Distribution Services, LLC, 803 W. Michigan Street, Milwaukee, WI 53233.

No other funds mentioned in the article are distributed by UMB Distribution Services, LLC.