Fund Insights


August 15, 2013

Value Investor Insight Interview with Bob Rodriguez and Dennis Bryan

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Basis point - A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument.

E&P - Exploration and production

EPS - Earnings per share, or the portion of a company's profit allocated to each outstanding share of common stock.

P/E - Price-to-earnings ratio, or is the price of a stock divided by its earnings per share.

The views expressed and any forward-looking statements are as of the date of the publication and are those of the portfolio managers and author.   Future events or results may vary significantly from those expressed and are subject to change at any time in response to changing circumstances and industry developments.  This information and data has been prepared from sources believed reliable.  The accuracy and completeness of the information cannot be guaranteed and is not a complete summary or statement of all available data

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 fund literature tab on this website, by email at crm@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.

Please click here for the most recent holdings in the FPA Capital Fund.  Portfolio composition will change due to ongoing management of the fund.  References to individual securities are for informational purposes only and should not be construed as recommendations by the Funds, Advisor or Distributor.

In comparing the performance of the FPA Capital Fund to the performance of an IRA account, please consider the following:

 

FPA Capital Fund

IRA Account (individual securities)

Objective: Growth/Income

Fluctuating share price and income distributions

Fluctuating share price and usually fixed income payment

Costs

2.00% redemption fee

Expense ratio is 0.83% as of the most recent prospectus

Commissions on purchase or sale

Management

Professionally managed

Investor managed

Liquidity

Daily liquidity

Generally liquid, however liquidity can be at a cost

Market Risk

 Market conditions constantly affect the fund’s value, although the diversification inherent in a fund generally reduces the market risk of any one issuer.

Market may be higher or lower than you paid for the security

Diversification

Mutual funds invest in many individual securities, providing diversification for a relatively small investment minimum.

 

Investor must purchase many securities to achieve diversification—which means it may require a significant investment to achieve diversification.

Tax features

Price may be higher or lower leading to a capital gain or loss

Price may be higher or lower leading to a capital gain or loss

 

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 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.  Groups of stocks, such as value and growth, go in and out of favor which may cause certain funds to underperform other equity funds.

The return of principal in a bond investment is not guaranteed. Bonds have issuer, interest rate, inflation and credit risks.  Lower rated bonds, convertible securities and other types of debt obligations involve greater risks than higher rated bonds.     

The FPA Funds are distributed by UMB Distribution Services, LLC.