Dear Shareholder:

Performance Overview

The FPA Crescent Fund – Institutional Class (“Fund” or “Crescent”) gained 3.70% in Q3 2024 and 21.27% in the trailing twelve months. The Fund captured 67.2% of the MSCI ACWI's return in the trailing twelve months, underperforming its 70.1% average net risk exposure. (1)

Performance versus Illustrative Indices (%) (2)

Portfolio Discussion

Crescent's net risk exposure is 68.5% as of quarter end, down approximately four percentage points year-over-year. The Fund's exposure has not been this low since the fourth quarter of 2019. (3) As always, risk-on versus risk-off remains a function of finding investments that offer good upside yet afford reasonable downside protection. If those parameters are unmet, cash will build until such opportunities present themselves. Nevertheless, there's generally something useful to do that helps explain the three new equity positions added during the quarter, though we exited five. Crescent's top five performers contributed 7.75% to its trailing twelve-month return while its bottom five detracted 1.22%.

Trailing Twelve-Month Contributors and Detractors as of September 30, 2024 (4)

Below are two companies that have impacted portfolio performance but have not recently been discussed. (5)

Jefferies (JEF, Financial) shares have appreciated due to strong operating performance, wise capital allocation from the company's owner-operator CEO, and building excitement for a strong investment banking and capital markets environment expected to be facilitated by lower interest rates and clarity on the US Election.

JDE Peet's (XAMS:JDEP, Financial) stock has declined over the past TTM, but earnings have been largely stable. However, a change in management, record-high coffee bean prices, and headwinds from the company's Russia business have led investors to view the glass as half-empty. We are hopeful that new management will prove up to the task of making entrepreneurial and cost-efficient investments to reinvigorate growth and put JDE Peets in a position to benefit from its position as the world's second-largest consumer coffee company. Closing The world might seem tilted on its axis today amidst natural disasters, Middle East conflict, and insecurity around next month's US election, on top of other fears unique to each of us. Without too much digging, one can easily fall into a vortex of negativity. We prefer to look more optimistically at what the future might hold. Uncertainty can breed confusion and insecurity, fostering a fertile environment for the calm and logical to take advantage of economic opportunities. We hope to continue exhibiting clear thinking when others might be losing their heads to benefit our investors.

Respectfully submitted,

FPA Crescent Portfolio Managers

October 30, 2024

(1) Risk assets are any assets that are not risk free and generally refers to any financial security or instrument, such as equities, commodities, high-yield bonds, and other financial products that are likely to fluctuate in price. Risk exposure refers to the Fund's exposure to risk assets as a percent of total assets.

(2) Source: FPA, Morningstar. Comparison to the indices is for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in its investment objectives. An investor cannot invest directly in an index. The long equity segment of the Fund is presented gross of investment management fees, transactions costs, and Fund operating expenses, which if included, would reduce the returns presented. Long equity holdings only includes equity securities excluding paired trades, short-sales, and preferred securities. The long equity performance information shown herein is for illustrative purposes only and may not reflect the impact of material economic or market factors. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those shown. Long equity performance does not represent the return an investor in the Fund can or should expect to receive. Fund shareholders may only invest or redeem their shares at net asset value.

(3) The Fund's net risk exposure, as of December 31, 2019, was 63.7%.

(4) Reflects the top five contributors and detractors to the Fund's performance based on contribution to return for the trailing twelve months (“TTM”). Contribution is presented gross of investment management fees, transactions costs, and Fund operating expenses, which if included, would reduce the returns presented. Percent of portfolio reflects the average position size over the period. The information provided does not reflect all positions purchased, sold or recommended by FPA during the quarter. A copy of the methodology used and a list of every holding's contribution to the overall Fund's performance during the TTM is available by contacting FPA Client Service at [email protected]. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities listed.

(5) The company data and statistics referenced in this section, including competitor data, are sourced from company press releases, investor presentations, financial disclosures, SEC filings, or company websites, unless otherwise noted. You can find the Fund's other positions addressed previously in our archived commentaries.

Past performance is no guarantee, nor is it indicative, of future results.

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 and other matters of interest to the prospective investor. Please read the Prospectus carefully before investing. The Prospectus may be obtained by visiting the website at fpa.com, by calling toll-free, 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, which may be lower or higher than the performance data quoted, may be obtained at fpa.com or by calling toll-free, 1-800-982 -4372. The FPA Crescent Fund – Institutional Class (“Fund” or “FPACX”) total expense ratio as of its most recent prospectus is 1.08%, and net expense ratio is 1.05% (both including dividend and interest expense on short sales).