The views expressed in these articles and commentaries are those of the author at the time created. They do not necessarily reflect the views of FPA or the distributor. These views are subject to change at any time based on market and other conditions, and FPA and/or the Distributor disclaims 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 FPA 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. This information and data has been prepared from sources believed reliable. However, the accuracy and completeness of the information cannot be guaranteed and is not a complete summary or statement of all available data. FPA has received certain nominations or awards by third-parties as reflected herein. Investors should review the criteria for each nomination or award as reflected on the third-party’s webpage.
You should consider the Fund’s investment objectives, risks, fees and expenses before investing. The Prospectus contain this and other important information which should be read carefully before investing.
Russel Kinnel, Director of Manager Research for Morningstar, discusses why investors should hold onto Gold-rated FPA Crescent Fund (FPACX) despite outflows from active managers across the industry.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to https://morningstardirect.morningstar.com/clientcomm/Morningstar_Analyst_Rating_Brief_Descriptions.pdf.
This report is for the one-year period ending May 2019.
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a fund. 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.
©2019 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. Past performance is no guarantee of future results. Morningstar, Inc. has not granted consent for it to be considered or deemed an “expert” under the Securities Act of 1933.
Please note that any references in this article to specific securities are being provided as a means of illustrating FPA’s investment thesis and should not be construed as a recommendation by the strategy, the portfolio managers, FPA or the distributor to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the security examples discussed. Past performance is no guarantee, nor is it indicative, of future results.
In an interview on July 3, 2019 with Morningstar.com, Russel Kinnel, Director of Manager Research for Morningstar, names FPA International Value Fund as one of his two favorite specialized foreign small- and mid-cap stock funds, highlighting positive attributes of the Fund and its portfolio manager, Pierre Py.
The May 2019 Morningstar FundInvestor newsletter names the FPA International Value Fund (“Fund”) to the 'FundInvestor 500' list of the industry's 500 “best and most notable funds,” based on Morningstar’s analysis. The Fund joins the FPA Crescent Fund and FPA New Income Inc., already among the 500. In adding the Fund, Morningstar Editor Russ Kinnel notes:
“FPA International Value was upgraded to Bronze as we have gained confidence in manager Pierre Py, who worked as an analyst at Oakmark International (OAKIX) prior to joining FPA. He has so far made a little more use of small and mid-caps as well as growth names than David Herro does at Oakmark. Still, the basic idea is to find a focused portfolio of stocks that are trading at large discounts to Py’s estimate of intrinsic value.
Our growing confidence comes from the fact that the three-person analyst team has stabilized after some turnover early in Py’s tenure. Performance has also improved in recent years. The Fund has a small $236 million asset base, and expenses are merely average at 1.29%.”
Note: A Morningstar subscription is needed to access this article.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please view Morningstar's Research Ratings Guide. This report is for the one-year period ending May 2019.
Steven Romick, Brian Selmo and Mark Landecker speak with Financial Advisor about how they define value, the diversity that their outlook can help bring to the portfolio, and where they currently see risk in the market.
A new Morningstar analysis of the FPA International Value Fund (FPIVX) upgrades the Fund's Analyst Rating to 'Bronze' from 'Neutral.' Additionally, pillar ratings for both Performance and People increased from 'Neutral' to 'Positive.'
The Fund joins FPA Crescent Fund (FPACX) (Gold) and FPA New Income, Inc. (FPNIX) (Bronze) among FPA Funds currently earning the "Medalist" designation.
Barron's 'Sector Focus' blog features some of Greg Nathan's Consumer-sector stock picks.
A story in the April Mutual Fund Observer includes FPA International Value in a lineup of 17 funds in 2017 with a total return of at least 15%, achieved while maintaining a 15% or greater allocation to cash.
For the original article, please click here. (Financial Times subscription needed)
To read the New Income Special Commentary discussed in this article, please click here.
Tom Atteberry sits down with Consuelo Mack to discuss the risk associated with traditional corporate and Treasury Bonds.
Please note that in this video, Tom Atteberry is incorrectly referred to as the lead Portfolio Manager of New Income (FPNIX). Tom Atteberry and Abhijeet Patwardhan serve as co-Portfolio Managers for the Fund.
MarketWatch's 'Outside the Box' column today reports on the retirement of Bob Rodriguez ("This mutual fund manager knew how to make your money grow: FPA's Rodriguez beat stock and bond markets with patience and realism," by John Coumarianos).
In coverage today of investment managers' positioning for the U.S. election, Reuters quotes the FPA Capital Third Quarter Commentary ("Amid election jitters, many big funds stay aggressive but cash tempts," by Tim McLaughlin and Jamie McGeever).
Steven Romick and FPA Crescent are the subjects of the 'Manager Profile' in the September 12 debut issue of Citywire Professional Buyer magazine ("Steven Romick: Value investing may be out favor but FPA Crescent fund manager Steven Romick tells Alex Steger how he arrived at this philosophy, times it has caused him pain and where he sees opportunities in the current market").
TheStreet featured a video interview of Tom Atteberry by investment reporter Rhonda Schaffler ("Bond Fund Manager Favors Asset Backed Debt in Low Rate Environment; One fund manager finds investment opportunities in subprime auto loans; Tom Atteberry, who manages the FPA New Income Fund, is investing in asset backed securities as a way to generate additional yield for bond investors. Atteberry favors securities backed by subprime auto loans, and avoids high yield debt.").
In Morningstar's 'Fund Spy' column today, senior analyst for fixed-income strategies Eric Jacobson highlights FPA's expense limitation agreement for FPA New Income effective June 1 ("Putting the Investor Horse in Front of the Fund Company Cart: FPA New Income's shareholder-conscious pricing and policy decisions are almost novel in their genesis").
See the section, "Objective: Volatility Protection," on pages 23 to 28.
In The Wall Street Journal's Investing In Funds & ETFs supplement today, FPA Crescent is highlighted as a fund that has produced strong risk-adjusted results while not adhering to any one particular style box, "Some Mutual Funds Rally by Not Sticking to a Style: Go outside the category? That worked for some funds that did best over the past 15 years.
Morningstar produced their latest analyst report on FPA New Income, in which they state "safety and stability are the hallmarks of this offering."
For glossary of terms, please click here.
Morningstar's 'Five-Star Investor' column today highlights FPA New Income among "Medalist funds in the multisector- and non-traditional-bond groups . . . that held up reasonably well in the last two stress tests for fixed-income funds: the disparate bond-market years of 2008 and 2013" ("5 Go-Anywhere Bond Funds That Have Shown Resilience: While hardly low-risk, these multisector- and non-traditional-bond funds have held up well in recent stress tests," by Christine Benz).
Arik Ahitov comments in the cover story of this week's Barron's on active management ("Return of the Stockpickers: Reports of the death of active fund management are greatly exaggerated. In fact, it's likely to do quite well again if interest rates go up," p. L7, by Sarah Max).
See the excerpt below. (Subscription required for full access.)
When John Templeton said, "The time of maximum pessimism is the best time to buy," he probably wasn't thinking that his tenet might one day refer to his own industry. Yet, for active mutual fund managers, 2014 was a point of maximum pessimism.
While the Standard & Poor's 500 returned 13.7% for the year, stockpickers struggled to keep up. Just 19.9% of U.S. equity fund managers bested their benchmarks, according to Morningstar -- but those who did managed an advantage of 1.8 percentage points, on average. Specialists, such as sector and alternative funds, also struggled, with 33% and 25%, respectively, beating their benchmarks.
As more money moves into the indexes, it could create more opportunity for stockpickers. "It becomes a self-fulfilling prophecy," says Arik Ahitov, co-manager of $1.2 billion FPA Capital (FPPTX). Ahitov says more than a quarter of the companies in his bogey, the Russell 2500, have net negative income. "You have all of these unprofitable companies going up, and nobody seems to care. An index fund doesn't distinguish between what is and isn't profitable. Everything moves together." His fund has averaged 14.4% annual gains since 1984, versus 11.9% for its benchmark. But, like many deep-value funds with large cash positions -- recently 28% of assets -- it has lagged behind lately, last year by nearly six percentage points.