Market Overview

FPA Launches FPA Flexible Fixed Income Fund


First Pacific Advisors, LP ("FPA") announced today that it launched FPA
Flexible Fixed Income Fund (FPFIX) ("the Fund").

This marks FPA's first new bond fund since becoming adviser to FPA New
Income, Inc. (FPNIX) in 1984. FPA New Income, Inc. is the only fund in
Morningstar's Short-Term Bond category to post positive returns in every
calendar year since 1984.1

FPA partners Thomas Atteberry and Abhijeet (Abhi) Patwardhan manage both
funds with the same investment philosophy, process and team.

"We believe the Fund is attractive to fixed income investors who want an
offering that has greater flexibility to take advantage of high-yield
credit cycles while remaining focused on seeking attractive
risk-adjusted returns and capital preservation. Our intent is to
capitalize on our team's experience investing across the credit quality,
sector and maturity spectrum," said portfolio managers Atteberry and

The key characteristics of two funds are as follows:


FPA Flexible Fixed Income Fund (FPFIX)

    FPA New Income, Inc. (FPNIX)
Short-term goal    

Seeks positive absolute returns in a 36-month


Seeks positive absolute returns in a 12-month

Long-term goal    

Seeks positive real returns (outperform
inflation plus 200 basis points
) over five-year period and
competitive returns versus bond market universe.


Seeks positive real returns (outperform
inflation plus 100 basis points
) over five-year period and
competitive returns versus bond market universe

Credit quality    

Maximum 75% of portfolio market value
can be rated BBB+ and below.


Maximum 25% of portfolio market value
can be rated BBB+ and below.

Morningstar peer group     Nontraditional Bond*     Short-Term Bond



More information, including the Fund's prospectus and policy statement,
can be found at

The Fund's management fee is 0.50%, placing it in the cheapest quartile
of the Morningstar Nontraditional Bond category.

FPA Flexible Fixed Income Fund seeks to provide long-term total return,
which includes income and capital appreciation, while considering
capital preservation.

About FPA

FPA, a Los Angeles-based institutional money management firm, employs a
disciplined approach to value investing, prudently seeking superior
long-term returns while maintaining a focus on capital preservation. As
of December 31, 2018, FPA manages approximately $30 billion across
multiple strategies.

1 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 by visiting the website at
or by calling toll-free, 1-800-982-4372.

Past performance is no guarantee, nor is it indicative, of future
results. You should consider the Fund's and/or FPNIX's investment
objectives, risks, and charges and expenses carefully before you invest.
The Prospectus details each fund's objective and policies, charges, and
other matters of interest to a prospective investor. Please read the
Prospectus carefully before investing. The Prospectus may be obtained by
visiting the fund literature tab on the website at,
by email at,
toll-free by calling 1-800-982-4372 or by contacting each respective
fund in writing.

Investments in mutual funds carry risks and investors may lose principal
value. Capital markets are volatile and can decline significantly in
response to adverse issuer, political, regulatory, market, or economic
developments. The Fund and/or FPNIX may purchase foreign securities,
which are subject to interest rate, currency exchange rate, economic and
political risks. The securities of smaller, less well-known companies
can be more volatile than those of larger companies.

The return of principal in a bond fund is not guaranteed. Bond funds
have the same issuer, interest rate, inflation and credit risks that are
associated with underlying bonds owned by the fund. Lower rated bonds,
convertible securities and other types of debt obligations involve
greater risks than higher rated bonds.

Interest rate risk is when interest rates go up, the value of fixed
income securities, such as bonds, typically go down and investors may
lose principal value. Credit risk is the risk of loss of principle due
to the issuer's failure to repay a loan. Generally, the lower the
quality rating of a security, the greater the risk that the issuer will
fail to pay interest fully and return principal in a timely manner. If
an issuer defaults the security may lose some or all its value.

Mortgage 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

Significant taxable distributions impact fund expenses which in turn
negatively impacts fund performance.

The Morningstar Nontraditional Bond Funds category contains funds that
pursue strategies divergent in one or more ways from conventional
practice in the broader bond fund universe. Many funds in this group
describe themselves as "absolute return" portfolios, which seek to avoid
losses and produce returns uncorrelated with the overall bond market;
they employ a variety of methods to achieve those aims. Another large
subset are self-described "unconstrained" portfolios that have more
flexibility to invest tactically across a wide swath of individual
sectors, including high yield and foreign debt, and typically with very
large allocations. Funds in the latter group typically have broad
freedom to manage interest rate sensitivity, but attempt to tactically
manage those exposures in order to minimize volatility. The category is
also home to a subset of portfolios that attempt to minimize volatility
by maintaining short or ultra-short duration portfolios, but explicitly
court significant credit and foreign bond market risk in order to
generate high returns. Funds within this category often will use credit
default swaps and other fixed income derivatives to a significant level
within their portfolios.

The Morningstar Short-term Bond Funds category contains portfolios that
invest primarily in corporate and other investment-grade U.S.
fixed-income issues and typically have durations of 1.0 to 3.5 years.
These portfolios are attractive to fairly conservative investors,
because they are less sensitive to interest rates than portfolios with
longer durations. Morningstar calculates monthly breakpoints using the
effective duration of the Morningstar Core Bond Index in determining
duration assignment. Short-term is defined as 25% to 75% of the
three-year average effective duration of the MCBI.

©2018 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.

FPFIX and FPNIX are distributed by UMB Distribution Services, LLC.

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