FPA Celebrates 30th Anniversary of Managing FPA Capital and FPA New Income Funds

LOS ANGELES--()--FPA is pleased to celebrate the 30th anniversary as the investment adviser to the FPA Capital and FPA New Income Funds.

FPA Capital Fund, Inc. (“Capital”, FPPTX) is the top performing domestic equity mutual fund in the United States since 1984, according to Morningstar. Capital which invests in small- and mid-cap companies has appreciated by approximately 15% per year since inception*. By comparison, the Russell 2500 Index (“Index”) has compounded at about 12% per year over the same period. An investment in Capital at inception held through June 30, 2014, would have grown to more than double the value of such an investment made into the Index. Consistent with FPA’s absolute value philosophy, the Fund’s cash stake has fluctuated over the years along with the opportunity set and has averaged about 20%.

Fund/Index MTD YTD 1 Year 5 Years 10 Years 15 Years 20 Years Since 7/11/84
FPA Capital 5.15 % 11.21 % 26.74 % 19.28 % 9.14 % 10.50 % 13.75 % 15.04 %
Russell 2000 5.32 % 3.19 % 23.64 % 20.21 % 8.70 % 8.01 % 9.81 % 10.30 %
Russell 2500 4.78 % 5.95 % 25.58 % 21.63 % 9.78 % 4.35 % 9.79 % 12.08 %

FPA New Income, Inc. (“New Income”, FPNIX) is the only fixed-income mutual fund in the United States managed by the same investment team to have generated a positive return in every calendar year since 1985. New Income, which utilizes an absolute value, benchmark agnostic approach, is also the top performing fund on a risk-adjusted basis** over the same time period compared to any fund that uses the Barclays US Aggregate Bond Index as a benchmark, according to Morningstar.

Fund/Index MTD YTD 1 Year 5 Years 10 Years 15 Years 20 Years Since 7/11/84
FPA New Income 0.10 % 1.17 % 1.47 % 2.13 % 2.99 % 4.35 % 5.19 % 7.67 %
Barclays US Agg Bond 0.05 % 3.93 % 4.37 % 4.85 % 4.93 % 5.60 % 6.15 % 7.94 %

FPA purchased both funds from Transamerica in 1984, at which time Robert Rodriguez began managing each strategy. “It has been an honor and a privilege to have been able to contribute to FPA Capital Fund and New Income's thirty year performance record. The investment goals established at inception continue today,” said Mr. Rodriguez of the occasion. He now serves as strategic advisor to each fund. In 2009, Mr. Rodriguez transitioned portfolio management responsibilities to Dennis Bryan for the FPA Capital Fund, and Tom Atteberry for FPA New Income, who joined the firm in 1993 and 1997 respectively.

“The fixed income team is humbled by the accomplishments our distinct investment philosophy has achieved over the past 30 years and is enthusiastic about the opportunity to continue meeting our objectives,” said Mr. Atteberry, Portfolio Manager for FPA New Income.

Mr. Bryan and Arik Ahitov, Portfolio Managers for FPA Capital Fund, commented “We take great pride in having produced excellent long-term results for our shareholders. We remain steadfast in managing Capital’s assets adhering to the same investment philosophy and strategy that was originally outlined in 1984.”

Capital has been closed to new investors since 2004 but existing shareholders, including financial advisers and consultants with clients invested in the Fund, may continue to purchase shares in the Fund for their entire client base. New Income remains open to new investors.

About FPA

FPA is a leading practitioner of value investing. Providing a prudent place to invest, the firm focuses on generating superior returns over the long-term, coupled with capital preservation. FPA fosters a culture that promotes high ethical standards.

Located in Los Angeles, California, FPA is independently owned, with 30 investment professionals and 77 employees in total. Currently, FPA manages $33 billion across five equity strategies and one fixed income strategy.

FPA's equity and fixed income styles are linked by a common fundamental value orientation. Our goal is to provide a consistent, risk-averse and disciplined approach to long-term investing in individual securities with the objective of achieving superior total returns for client portfolios.

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, 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.

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.

Expense ratio calculated as of most recent prospectus is 0.58% for the FPA New Income Fund and 0.83% for the FPA Capital Fund. A redemption fee of 2.00% will be imposed on redemptions of certain shares within 90 days.

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. 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 that are associated with underlying bonds owned by the fund. Lower rated bonds, callable bonds and other types of debt obligations involve greater risks than higher- rated bonds. Mortgage-backed securities and collateralized mortgage obligations (CMOs) are subject to prepayment risk and the risk of default on the underlying mortgages or other assets; such derivatives may increase volatility. Convertible securities are generally not investment grade and are subject to greater credit risk than higher-rated investments. High yield securities can be volatile and subject to much higher instances of default. The Fund many experience increased costs, losses and delays in liquidating underlying securities should the seller of a repurchase agreement declare bankruptcy or default.

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.

Barclays Aggregate Index provides a measure of the performance of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities that are publicly offered for sale in the United States. The securities in the Index must have at least 1 year remaining in maturity. In addition, the securities must be denominated in U.S. dollars and must be fixed rate, nonconvertible, and taxable.

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. These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks they represent.

The FPA Funds are distributed by UMB Distribution Services, LLC. 235 W. Galena Street, Milwaukee, WI 53212.

*Inception for FPA Management July 11, 1984.

** Sharpe Ratio is a risk adjusted measure calculated by using standard deviation and excess return to reward per unit of risk.


Hewes Communications, Inc.
Tucker Hewes, 212-207-9451

Release Summary

FPA is pleased to celebrate the 30th anniversary as the investment adviser to the FPA Capital and FPA New Income Funds.


Hewes Communications, Inc.
Tucker Hewes, 212-207-9451