April 28, 2015

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FPA InternationaldValue Fund
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FPIVX
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First Quarter 2015
Webcast Presentation

Presented by the International Value Team:

Pierre Py
Portfolio Manager

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Jason Dempsey
Analyst

Victor Liu
Analyst

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Key fund attributes

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Absolute value Seek genuine bargains and hold cash when opportunities are scarce.

Broad universe and benchmark agnostic Invest across market caps, sectors,
geographies.

Bottom-up Select and value companies based on fundamentals. Look for high quality.

Downside focused Avoid low quality and high leverage. Buy at a significant discount to
fair value.

Research-based Portfolio is output of research. Discounts dictate portfolio weightings.

Concentrated Focus on best ideas - typically 25-35 holdings. Non-diversified investment

vehicle.

Long-term, often contrarian approach 20% expected average turnover. Time for
discount to unwind dictates holding period.

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Performance as of March 31, 2015

FPA International Value

MSCI ACWI Ex US (Net)

QTD

1 Year

3 Year

2014

2013

2012

3.65
3.49

-6.84
-1.01

6.78
6.40

-9.19
-3.87

18.00
15.29

24.04
16.83

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Highlights:

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2011 Inception*
1.20
-1.12

10.45
8.81

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In 1Q15, cash exposure started to rise again (and did throughout the quarter) from ca. 26% at 12/31/14 to ca. 30% at 03/31/15.
Since inception, average cash exposure has been >35%. Its fluctuated along with opportunity set from low teens to >40%.
Currency remains significant headwind to absolute performance. In euro currency, Fund and Index returned ~17% in period.
Takeaways:

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Past reinvestment efforts have helped performance in face of renewed rally across multiple international markets.

Some more recent additions however continued with negative momentum, including TNT, KSB, Fenner, and ALS.

Fugro may have turned corner. Improvements on many fronts, operationally and financially. Boskalis as new anchor shareholder.
Perspectives:

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Fund may underperform in short-term. Always encourage shareholders to evaluate returns over multi-year period.

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Renewed rally not a positive outcome. Signs of speculation driven by quantitative easing. Finding opportunities challenging again.

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* Inception December 1, 2011. Annualized. Calculated using Morningstar Direct.

Net expense ratio: 1.26%. A redemption fee of 2% will be imposed on redemptions within 90 days.

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/internationalvalue or by calling toll-free, 1-800-982-4372.
The MSCI ACWI ex US Index is a float-adjusted market capitalization index that is designed to measure the combined equity market performance of developed and emerging
market countries excluding the United States.

Portfolio metrics as of March 31, 2015

As of Date: 3/31/15

FPA International Value

12-Month Forward P/E

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15.0x

Price/Book

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2.1x

Return on Equity

17.8%

Debt to Equity
Median Market Cap (billions)

0.4x
$5.1

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MSCI ACWI ex US

15.7x

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1.8x

14.9%

0.6x
$7.2

15.0x Forward P/E: High quality companies that trade at attractive valuations.

Financials, Materials, Energy drive index P/E down significantly. We believe our names are cheaper.

Our businesses have greater staying power and superior management teams.

Prices have run up mostly through multiple expansion (and higher profit expectations mostly from currency).

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Rise European equities and rallying capital markets challenging again.

Renewed increase in cash exposure.

Weighted average discount to estimated intrinsic value reduced to about 30%.

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17.8% ROE: Strong fundamentals drive industry-leading margins, high cash flows, and attractive returns. Good
managers allocate capital in value creative manner.

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0.4x Debt to Equity: Financially robust companies positioned to become stronger through difficult times.
Source: Mellon and FPA data.
12-Month Forward P/E is calculated using harmonic averaging, which helps avoid extreme results that may occur due to small relative numbers. Price/Book ratio is the
market price of a stock divided by the book value per share. Return on Equity measures a corporation's profitability by revealing how much profit a company generates with
the money shareholders have invested. Debt to Equity is the measure of a company's financial leverage calculated by dividing its total debt by stockholders' equity.

Key performers
12/31/14 Through 3/31/15

Performance (%)

BEST PERFORMERS
Fugro
Michael Page
Incitec Pivot
Countrywide
Adidas

28.32
20.61
19.04
14.23
12.60

12/31/14 Through 3/31/15

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Best performer Fugro:

Meaningful detractor in second part of 2014.

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-13.82
-8.62
-7.30
-5.26
-3.78

Worst performer ALS:

Added to portfolio towards end of 4Q 2014.

Based in Holland. Leading provider of geotechnical and

geophysical analyses for resource projects.

Based in Australia. Leading provider of geochemistry

services. Growing participant in global TIC2 market.

Significant disruptions caused by decline in oil prices.

Management taking action to lower costs, reduce capex,

and strengthen balance sheet. Improved operations,
aligned incentives better, and looked to focus further on
core businesses.

Mining exposure. Also involved in O&G following

Reservoir acquisition. Impacted by cycle and oil price
drop.

Mineral testing key driver for large investment decisions.

Hard to replicate hub and spoke network and global info
management system. Few comparable offerings in
market.

Management rooted with business. History of superior

execution and value creation through acquisitions.
~9x EBITA. ~9% free cash flow yield. 7% dividend yield.

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Dutch peer Boskalis has bought stake of 25% in past few

months. Long-term value investors another 15%.

~8x EBITA1. >9% free cash flow yield. ~4% dividend yield.

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Cyclical low. Offshore remains appealing long term. Moving

towards cleaner portfolio of quality businesses. Management
proving itself in difficult times. Balance sheet strengthening.
White knight in place. Depressed valuation. Long-term thesis
finally playing out. Remain meaningful investment.

WORST PERFORMERS
ALS
KSB
Fenner
TNT Express
Aggreko

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Performance (%)

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Core business at cyclical low. Good long-term TIC prospect.

Challenging Reservoir acquisition. Strong fundamentals.
Increasingly diversified global TIC player. Good management.
Depressed valuation. Typical FPIVX investment opportunity.
2

EBITA (Earnings before interest, taxes and amortization) is a financial indicator used widely as a measure of efficiency and profitability. TIC is Testing, Inspection and
Certification. Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed as recommendations
by the Fund, its Advisor or Distributor. As of 03/31/15 Fugro represented 5.24%, Michael Page represented 2.54%, Incitec represented .91%, Countrywide represented 2.36 %,
Adidas represented 3.26%, ALS represented 4.49%, KSB represented 2.64%, Fenner represented 4.85%, TNT represented 3.63%, and Aggreko represented 3.05% of FPIVX.

Portfolio as of March 31, 2015

Geographic allocation* (% of assets invested):

Overview:
Circa 70% invested.

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Pacific Basin
11.3%

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27 disclosed positions. Top 10 account for

more than 40% of assets.

EM
4.6%

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$15bn weighted average market cap ($400m to

>$100bn). Median around $5bn.
Size and geography agnostic.

Europe
84.1%

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Sector allocation* (% of assets invested):

Industrials
Consumer Discretionary
Consumer Staples

13.2%

Information Technology

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11.7%

Financials

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8.3%

Energy

Materials

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15.0%

Geographic Analysis:
Mostly UK and Continental Europe. Some
developing market exposure. No exposure to
Japan.

42.3%

8.1%

1.4%

0.0%

10.0% 20.0% 30.0% 40.0% 50.0%

Domicile not very relevant. Close to 60% of

free cash flows generated outside Europe.
Roughly 50% of EUR and 20% of GBP
exposure** hedged defensively.

Sector Analysis:
No exposure to banks. Biased towards capital
light businesses: services, robust industrials,
consumer goods.
Sector agnostic. IT not technology dependent.

* Excludes undisclosed holdings. Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed
as recommendations by the Fund, its Advisor or Distributor.
** Exposure is defined as the percentage of free cash flow denominated in the currency applied to invested capital.

Case study: Danone (BN FP)

Leading global player in branded consumer foods and beverages.

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Significant presence in emerging markets and strong positions in developed countries.

Diversified portfolio of branded, health-oriented products: dairy, baby food, water, nutritional.

Strong market positions across the board.

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Dairy franchise has delivered consistently positive revenue growth for decades:

Excellent long-term prospects thanks to demographic tailwinds, increasing penetration of

product category, and inflation pass-through.

Restructuring phase in core European market while currency weakness persists in Russia.

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Balance of growth (9% LFL avg over last 7 years) and good margins (17% avg over same period):

Branded water (e.g. Evian) high value-add product in emerging countries.

Baby nutrition fairly concentrated market with pricing power and rising volumes globally.

Medical nutrition grows profitably through protected niche positions in aging end-markets.

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Attractive economics and long-term reinvestment profile:

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Gross margins around 50% with mid-teens EBITA margins.

Portfolio breadth and geographic footprint allows for reinvestment at double digit returns.

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Experienced and high quality management team.

Recent generational succession with new team focused on margins and LFL growth.

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Conservative gearing at Net Debt/EBITDA averaging 2.0x.

High single digit free cash flow yield and multiple of normalized EBITA at time of purchase.
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EBITA (Earnings before interest, taxes and amortization) is a financial indicator used widely as a measure of efficiency and profitability. As of 03/31/15 Danone represented
2.42% of FPA International Value Fund.

Investment credo

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We are long-term value investors with a focus on international equities. We look for well-run, financially strong, highquality businesses that can be purchased at a significant discount to their intrinsic values.

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Sell Investment Decision

Price

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Investment
Candidate:

Continued value
creation over time
Discount to
estimated intrinsic
value

Buy Investment Decision

Time
Intrinsic value line.
Discount to intrinsic value line.

*Chart is a hypothetical example to show our Investment Philosophy and is not an actual holding in the fund.

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Question & d
Answer
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Disclosure

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These slides are intended as supplemental material to the 1st Quarter 2015 FPA International Value audio presentation that is posted on our website fpafunds.com.

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We do want to make sure you understand that the views expressed on these slides and in the accompanying audio presentation are as of today, April 28, 2015, and are
subject to change based on market and other conditions. These views may differ from other portfolio managers and analysts of the firm as a whole, and are not intended to
be a forecast of future events, a guarantee of future results or investment advice. Any mention of individual securities or sectors should not be construed as a
recommendation to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. The information
provided does not constitute, and should not be construed as, an offer or solicitation with respect to any securities, products or services discussed.

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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.

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.

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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. Foreign investments, especially those of companies in emerging markets,
can be riskier, less liquid, harder to value, and more volatile than investments in the United States. Adverse political and economic developments or changes in the value of
foreign currency can make it more difficult for the Fund to value the securities. Differences in tax and accounting standards, difficulties in obtaining information about foreign
companies, restrictions on receiving investment proceeds from a foreign country, confiscatory foreign tax laws, and potential difficulties in enforcing contractual obligations,
can all add to the risk and volatility of foreign investments. Small and mid cap stocks involve greater risks and they can fluctuate in price more than larger company stocks.

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The Fund is non-diversified and may hold fewer securities than a diversified fund because it is permitted to invest a greater percentage of its assets in a smaller number of
securities. Holding fewer securities increases the risk that the value of the Fund could go down because of the poor performance of a single investment.
Performance returns for the MSCI ACWI ex-USA Index assume dividends were reinvested for the entire period. Returns for periods greater than one year are compounded
average annual rates of return. One cannot invest directly in an index.

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Statistics have been obtained from sources believed to be reliable, but the accuracy and completeness cannot be guaranteed.
The FPA Funds are distributed by UMB Distribution Services, LLC
The portfolio holdings as the most recent quarter end may be obtained at http://www.fpafunds.com/docs/funf-holdings/international-14-12.pdf?sfvrsn=4.