FPA Paramount Fund, Inc.

Objective:

FPA Paramount Fund seeks long-term capital growth by investing primarily in global small and mid-cap stocks.

  • Buy superior businesses at reasonable prices
  • Consistent disciplined philosophy since fund inception
  • Portfolio weightings reduces benchmark correlation
  • Concentrated portfolio
  • Very low portfolio turnover

Philosophy:

The Fund's managers believe that long-term ownership of superior companies produces high shareholder returns. These businesses typically exhibit outstanding returns on capital combined with fortress balance sheets. Their business models are easily understood, benefit from strong market positions or other competitive strengths, and are executed by capable management teams. Through a patient approach, the Fund attempts to take advantage of price opportunities or market inefficiencies to periodically acquire the securities of such companies at attractive prices. The Fund's approach does not rely on market or economic forecasts, rather on the selection of individual businesses and a disciplined judgment of the relative attractiveness of the market valuation of those businesses. Due to its bottom up security selection process and relative concentration of holdings, the Fund varies widely from benchmark security and sector weightings.


As of April 30, 2013

Comparative Performance Monthly

Fund/IndexMTDYTD1 Year3 Years**5 Years**10 Years**
FPA Paramount1.39 %13.32 %18.98 %12.22 %8.14 %11.30 %
Russell 2500 0.31 %13.20 %18.96 %12.95 %7.95 %11.38 %
MSCI World3.15 %11.13 %16.70 %9.59 %1.81 %8.29 %

** Annualized.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
Expense ratio calculated as of most recent prospectus is 0.94%.
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.


As of March 31, 2013

Average Annual Returns

Fund/IndexQTRYTD1 Year3 Years**5 Years**10 Years**Expense Ratio1
FPA Paramount 11.76 %11.76 %16.14 %13.07 %8.86 %12.10 %0.94 %
Russell 2500 12.85 %12.85 %17.73 %14.59 %9.02 %12.30 %
MSCI World7.73 %7.73 %11.85 %8.46 %2.23 %8.88 %

** Annualized.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
1Expense Ratio is calculated as of the date of the most recent prospectus.
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.


Historical Annual Returns

FPA Paramount Fund, Inc.*Russell 2500
201215.97 %17.88 %
2011-3.69 %-2.51 %
201023.63 %26.71 %
200945.79 %34.39 %
2008-38.07 %-36.79 %
20076.84 %1.38 %
20064.76 %16.17 %
200512.20 %8.11 %
200415.89 %18.29 %
200341.41 %45.51 %
2002-12.37 %-17.80 %
200121.67 %1.22 %
20002.67 %-5.30 %

* Inception of Current Management April 2000
* Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. 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 at http://www.fpafunds.com/paramount or by calling toll-free, 1-800-982-4372.
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 at http://www.fpafunds.com or by email at info@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.


As of April 30, 2013

After-Tax Returns

1 Year5 Years10 Years
Before Tax18.98 %8.14 %11.30 %
After Tax on Distribution*18.91 %8.05 %11.19 %
After Tax on Distribution and Sale of Fund Shares*16.09 %7.01 %10.07 %

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. 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. 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. 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.


Portfolio Structure *

CASH PLUS LIQUIDITY:
4.6%
TOTAL NET ASSETS:
$291 Million
TOTAL SECURITIES IN PORTFOLIO
34


Top Sectors*


Top Holdings*

Signet Jewelers   6.6%   ScanSource   4.0%
O'Reilly Automotive   6.5%   FMC Technologies
   3.8%
Carmax   6.4%   Zebra
   3.6%
Wabco
   5.6%   Graco
   3.4%
Copart
   4.8%   HNI   3.4%
 
Top 10 Holdings represent 48.0% of Total Net Assets

Portfolio Holdings

* As of March 31, 2013. 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.
   
Past performance is not indicative of future performance. The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. This index is considered a measure of small to medium capitalization stock performance. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks it represents. The performance of the Fund and of the Indices is computed on a total return basis which includes reinvestment of all distributions.  It is not possible to invest in an index.


As of June 30, 2012
 
(NAV) 1 Year 5 Years 10 Years
Before Tax -6.47% 1.29% 7.48%
After Tax on Distribution -6.47% 1.17% 7.37%
 
After Tax on Distribution and Sale of Fund Shares -5.50% 1.02% 6.55%
 
(With Load) 1 Year 5 Years 10 Years
Before Tax -11.38%  0.20% 6.90%
After Tax on Distribution -11.38% 0.09% 6.79%
 
After Tax on Distribution and Sale of Fund Shares  -9.67%  0.10% 6.02%

*After -tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.  Actual after-tax returns depend upon an investor's tax situation and may differ from those shown.  After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs.

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. The maximum sales charge of 5.25% and all applicable expenses such as advisory fees have been included in calculating the after tax (with load) performance. 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. 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.