FPA Queens Road Small Cap Value Fund Institutional Class · NASDAQ:QRSIX
FPA Queens Road Small Cap Value Fund Institutional Class — FPA New Income Fund and FPA Flexible Fixed Income Fund — Investor Presentation (December 2025)
53 slides from FPA Queens Road Small Cap Value Fund Institutional Class's investor presentation, December 2025
Slide 1: FPA New Income Fund & FPA Flexible Fixed Income Fourth Quarter 2025 Webcast
L P rs , is o d v c A f FPA New Income i i Fund (FPNIX) & a c FPA Flexible Fixed Income (FPFIX) t P Fourth Quarter 2025 Webcast Presentation i r s F Follow us on:
Slide 2: FPNIX performance (net)
FPNIX performance (net) L P , Performance (%) as of 12/31/2025 Since 40 Yr 30 Yr 20 Yr 15 Yr 10 Yr 5 Yr 3 Yr 1 Yr YTD QTD Inception rs FPA New Income (FPNIX) 6.22 5.51 3.96 2.91 2.47 3.06 3.35 6.48 7.36 7.36 1.15 o Bloomberg U.S. Aggregate 6.25 5.54 4.22 3.25 2.42 2.01 -0.36 4.66 7.30 7.30 1.10 is C
Slide 3: FPNIX performance (net) annual
FPNIX performance (net) Annual Performance (%) 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 L P , FPA New Income (FPNIX) 7.36 4.59 7.51 -3.10 0.82 2.51 3.81 2.30 2.67 2.53 0.15 1.32 0.67 2.18 2.23 3.18 2.89 4.31 6.02 4.79 1.57 rs Bloomberg
Slide 4: FPFIX performance (net)
FPFIX performance (net) L P , Performance (%) as of 12/31/2025 Since Inception 5 Yr 3 Yr 1 Yr YTD QTD rs FPA Flexible Fixed Income (FPFIX) 4.08 4.01 7.17 7.23 7.23 1.23 o Bloomberg U.S. Universal 2.38 0.06 5.24 7.58 7.58 1.20 is CPI + 200 5.79 6.57 5.02 4.72 4.72 1.01 d v c A if i a c t P i Index da
Slide 5: FPFIX performance (net) annual
FPFIX performance (net) L P , Annual Performance (%) 2025 2024 2023 2022 2021 2020 2019 rs FPA Flexible Fixed Income (FPFIX) 7.23 5.29 9.02 -2.82 1.77 4.70 3.78 o Bloomberg U.S. Universal 7.58 2.04 6.17 -12.99 -1.10 7.58 9.29 is CPI + 200 4.72 4.94 5.40 8.55 9.31 3.36 4.38 d v c A if i a c t P i Ind
Slide 6: Overview of funds
Overview of funds P FPA Short Duration FPA New Income Fund FPA Flexible Fixed Income Fund L Government ETF Institutional Class Shares (FPNIX) Institutional Class Shares (FPFIX) (FPAS) Investor Class Shares (FPNRX) Advisor Class Shares (FFIAX) , Investor Class Shares (FFIRX) rs Seeks to provide long-
Slide 7: Portfolio characteristics
Portfolio characteristics As of 12/31/2025 L P rs , Yield-to-Worst (%) Effective Duration (yrs.) Credit Exposure (%) FPA New Income 4.00 3.2 3.6 is o Bloomberg U.S. Aggregate 4.32 6.0 11.6 v Bloomberg U.S. Aggregate 1-3 Year 3.70 1.8 8.7 Ad Yield-to-Worst (%) Effective Duration (yrs.) Credit Exposur
Slide 8: Q4 2025 Summary
Q4 2025 Summary ■ Credit spreads are in historically low territory; we believe credit markets remain expensive. L P ■ Credit is generally not attractive but both Funds are open to buying BBB or lower rated debt if and rs , o when the price makes sense. ■ We believe High Quality, longer duration bond
Slide 9: Market Observations & Commentary
L P rs , i s o d v Observations c A Market f i Commentary i a c t P i r s F 9
Slide 10: Loosen monetary policy? Tighten monetary policy? Core PCE
Loosen monetary policy? Tighten monetary policy? Core PCE Decomposition L P rs , is o d v c A if i a c t P F i rs Year Source: Deutsche Bank – Inflation Outlook Distortions and Outliers, San Francisco Fed, BEA, Macrobond; January 16, 2026. Personal Consumption Expenditures (PCE) is a measure of the
Slide 11: Loosen monetary policy? Tighten monetary policy? Payrolls
Loosen monetary policy? Tighten monetary policy? Private payroll gains of only 37k in December and clear slowing in trend after downward revisions L P Change in Private Nonfarm Payroll Employment rs , is o d v c A if i a c t P F i rs Year Source: Deutsche Bank – Fast Growth Despite Furious Sentiment
Slide 12: The path of monetary policy is not obvious
The path of monetary policy is not obvious Number of Governors Dissenting on the FOMC L P rs , is o d v c A if i a c t P F i rs Year Source: Deutsche Bank, Bloomberg Finance LP – Curveballs for 2026, Jim Reid; December 2025. 12
Slide 13: New risks
New risks L % of Bloomberg Articles Mentioning “Geopolitics” in Monthly Total Articles P rs , is o d v c A if i a c t P i rs Year F Source: Deutsche Bank, Bloomberg Finance LP; Jim Reid; January 21, 2026. 13
Slide 14: Yield curve
Yield curve U.S. Treasury Yield Curve L P , 5.00% rs As of 12/31/2025 As of 12/31/2024 o As of 9/30/2025 4.50% v is Yield 4.00% 3.50% Ad 3.00% 1M 3M 6M 1Y 2Y 3Y 5Y 7Y if 10Y i c 20Y 30Y a c Maturity t P Maturity rs Change in yield (bps) 1Y 2Y 3Y 5Y 7Y 10Y 20Y 30Y i Q4 2025 -14 -14 -8 -2 1 2 9 11 F C
Slide 15: Treasury yields remain near decade-plus highs
Treasury yields remain near decade-plus highs U.S. Treasury Yields L P 18.00% rs , 4.00 o 16.00% is 3.50 v 14.00% 3.00 d 12.00% A 2.50 Duration (years) 10.00% c Yield 2.00 f i 8.00% i 1.50 c 6.00% a 1.00 4.00% t P 2.00% 0.50 rs 0.00% 0.00 F i 2 yr. Treasury yield 3 yr. Treasury yield 5 yr. Treasury
Slide 16: High yield: reward generally not worth the risk
High yield: reward generally not worth the risk Bloomberg U.S. Corporate High Yield Index L P 25.00% At 12/31/25 rs , 2,500 o Spread Percentile is All High Yield 292 bps 2nd BB, ex. Energy 184 bps 3rd v 20.00% 2,000 15.00% Ad 1,500 Yield-to-worst Spread (bps) 10.00% if i c 1,000 a c P 5.00% 500 rs t
Slide 17: Investment grade bond spreads are very low
Investment grade bond spreads are very low Bloomberg U.S. Aggregate Bond Index L P 18.00% At 12/31/25 Spread Percentile rs , 350 o Overall Index 40 bps Zero is 16.00% Corporates 78 bps 1st 300 ABS 53 bps 23rd v 14.00% CMBS 77 bps 23rd d MBS 72 bps 8th 250 12.00% A Yield-to-worst Spread (bps) 10.00%
Slide 18: Opportunity cost of investment grade is potentially small
Opportunity cost of investment grade is potentially small High Yield Spread less Investment Grade Corporate Spread L P 800 At 12/31/25 rs , o Spread Percentile 113 bps 3rd is 700 v 600 d Basis Points (bps) A 500 c 400 300 if i 200 a c t P 100 rs 0 F i BB ex. Energy less Intermediate IG Corp. Source:
Slide 19: Opportunity cost of highly-rated debt is potentially small
Opportunity cost of highly-rated debt is potentially small BBB Intermediate Corporate Spread less AAA Intermediate Corporate Spread L P 700 At 12/31/25 rs , o Spread Percentile is 600 71 bps 18th d v 500 A Basis Points (bps) 400 300 if i c 200 a c t P 100 i rs 0 F -100 BBB-AAA Source: Bloomberg. As
Slide 20: The actual opportunity cost of investment grade may not be a cost
The actual opportunity cost of investment grade may not be a cost at all Bloomberg U.S. Corporate High Yield Spread vs. Forward Excess Return L P rs , 8,000 12/31/25 spread = 292 bps o Average Forward Excess Return 6,000 is at 292 bps or lower = -986 bps v 12-month Forward Excess Return (bps) 4,000
Slide 21: The actual opportunity cost of highly-rated debt may not be a cost
The actual opportunity cost of highly-rated debt may not be a cost at all Bloomberg U.S. Intermediate Corp. BBB less AAA Spread vs. Forward Excess Return L P 3,000 12/31/25 BBB-AAA spread = 71 bps rs , o 2,500 Average Forward Excess Return at 71 bps or lower = -98 bps is 12-month Forward BBB Excess
Slide 22: Better returns are the potential benefit of incurring the opportunity cost
Better returns are the potential benefit of incurring the opportunity cost L P Recovery since last high water-mark rs , o Cumulative Total Return is Peak Recovery Years to FPNIX FPFIX v Date Date Recovery d Bloomberg U.S. Aggregate 1-3 Year 8/31/2021 12/29/2023 2.3 4.15% 6.21% A Bloomberg U.S. Aggre
Slide 23: Active duration management: upside versus downside
Active duration management: illustration of upside versus downside Hypothetical 12-month U.S. Treasury Returns L P 10.00% rs , 9.40 o Yield^ Downside return* Upside return* is 8.00% 7.49 v 6.50 d 6.00% 5.48 Yield / Total Return A 4.45 3.73 3.94 4.00% 3.47 3.47 3.47 3.47 3.54 3.64 i c 2.51 if 2.00% 1
Slide 24: FPA New Income: investing for the long-term
FPA New Income: investing for the long-term L P , 1 Yr 3 Yr 5 Yr 10 Yr 15 Yr rs Annualized Return o FPA New Income (FPNIX) 7.36% 6.48% 3.35% 3.06% 2.47% is Morningstar U.S. Fund Short-Term Bond 5 9 7 13 24 Percentile Rank Bloomberg U.S. Aggregate 7.30% d v 4.66% -0.36% 2.01% 2.42% A Sortino Ratio f
Slide 25: FPA Flexible Fixed Income: investing for the long-term
FPA Flexible Fixed Income: investing for the long-term 1 Yr 3 Yr L 5 Yr P rs , Annualized Return FPA Flexible Fixed Income (FPFIX) 7.23% 7.17% 4.01% is o Morningstar U.S. Nontraditional Bond Percentile Rank 30 30 22 v Bloomberg U.S. Aggregate 7.30% 4.66% -0.36% d Bloomberg U.S. Universal 7.58% 5.24%
Slide 26: FPA New Income Fund Portfolio Update
L P rs , is o d v c A f FPA New Income i i Fund c Portfolio Update a t P i r s F 26
Slide 27: FPA New Income Fund contribution to return Q4 2025
FPA New Income Fund contribution to return P Q4 2025 L Average Total Contribution Top sector-level Notable drivers of performance , Weight (%) Return (%) to return (%) contributor/detractors rs ABS 27.81 1.34 0.37 Auto 6.21 1.21 0.08 o Interest income and price increase due to lower Equipment 11.11
Slide 28: FPA New Income Fund contribution to return Calendar Year 2025
FPA New Income Fund contribution to return P Calendar Year 2025 L Average Total Contribution Top sector-level Notable drivers of performance , Weight (%) Return (%) to return (%) contributor/detractors rs ABS 30.48 6.63 2.03 Auto 6.96 6.09 0.43 o Equipment 11.97 7.20 0.87 CLO 3.42 6.04 0.21 is Other
Slide 29: FPA New Income Fund portfolio overview
FPA New Income Fund portfolio overview L P , Sector Exposure Yield-to-Worst Avg. Life Effective Duration Spread Duration OAS rs (% of MV) (years) (years) (years) (bps) Securitized 69.1% 4.28% 3.8 3.4 3.2 50 o Agency RMBS 21.3% 4.39% 5.4 4.8 4.5 37 is Non-Agency RMBS 6.1% 4.68% 5.7 5.3 4.5 58 v Agenc
Slide 30: FPA New Income Fund investment idea exposure
FPA New Income Fund investment idea exposure L P As of September 30, 2025 rs , As of December 31, 2025 is o v Treasuries Treasuries Mortgage 17% Mortgage 18% Agency d Pass-through Agency Pass-through 22% Performing Performing 21% CMBS CMBS A 14% 14% ABS ABS Other c Other Equipment Equipment i 15% 11
Slide 31: FPA New Income Fund quality exposure
FPA New Income Fund quality exposure L P , 100% rs As of 12/31/2025: 90% High Quality o AAA 73% 80% is AA 22% v A 2% 70% Total 96% d % of portfolio 60% Credit A BBB 2% 50% c BB 0% fi i B 0% 40% CCC 0% CC 0% c 30% C 0% a D 0% 20% NR 2% P 10% 9% 8% 7% 9% 9% 9% 10% 10%10% 10%10% 10% 10% 9% Total 4% t 7
Slide 32: FPA New Income Fund exposure summary
FPA New Income Fund exposure summary L P Portfolio Exposure Limits Current Portfolio Exposure rs , 100% is o v High quality High quality 96% d 75%-100% ■ Cash & Equiv. 9% ■ Treasury 18% A ■ ABS 27% ■ RMBS 27% i c ■ CMBS 15% f ■ Corporate 0% c i a Credit sensitive 4% ■ Corporate 4% P ■ ABS 0% ■ RMBS
Slide 33: FPA New Income Fund return simulation as of 12/31/25
FPA New Income Fund return simulation as of 12/31/25 L P rs , 7.0% Hypothetical 12-month total return, gross of fees 6.0% 5.0% is o v 4.0% d 3.0% 2.0% c A if i 1.0% c 0.0% a -1.0% -2.0% t P rs -100 -75 -50 -25 0 +25 +50 +75 +100 +125 +150 +175 +200 Reference yield change (bps) F i The Chart shows th
Slide 34: FPA Flexible Fixed Income Fund Portfolio Update
L P rs , is o d v FPA Flexible c A Income Fund if i Fixed c Portfolio Update a t P i r s F 34
Slide 35: FPA Flexible Fixed Income Fund contribution to return Q4 2025
FPA Flexible Fixed Income Fund contribution to return P Q4 2025 L Average Total Contribution Top sector-level Notable drivers of performance , Weight (%) Return (%) to return (%) contributor/detractors ABS 20.58 1.47 0.30 rs Auto 3.59 1.23 0.04 Interest income and price increase due to lower Equipme
Slide 36: FPA Flexible Fixed Income Fund contribution to return Calendar Year 2025
FPA Flexible Fixed Income Fund contribution to return P Calendar Year 2025 L Average Total Contribution Top sector-level Notable drivers of performance , Weight (%) Return (%) to return (%) contributor/detractors ABS 23.93 7.35 1.76 rs Auto 4.12 6.21 0.26 Equipment 8.84 7.32 0.65 o CLO 3.39 9.06 0.3
Slide 37: FPA Flexible Fixed Income Fund portfolio overview
FPA Flexible Fixed Income Fund portfolio overview L P , Sector Exposure Yield-to-Worst Avg. Life Effective Duration Spread Duration OAS rs (% of MV) (years) (years) (years) (bps) Securitized 60.26% 4.43% 4.1 3.7 3.5 62 o Agency RMBS 21.06% 4.43% 5.6 5.0 4.6 39 is Non-Agency RMBS 6.77% 4.68% 5.7 5.3
Slide 38: FPA Flexible Fixed Income Fund investment idea exposure
FPA Flexible Fixed Income Fund investment idea exposure L P As of September 30, 2025 rs , As of December 31, 2025 is o v Mortgage Mortgage Treasuries Pass-through Treasuries d Pass-through 22% 20% 24% 23% Cash A 9% Cash Other 13% Other c 14% 13% if i c Agency Performing Agency a CMBS Corporates Corp
Slide 39: FPA Flexible Fixed Income Fund quality exposure
FPA Flexible Fixed Income Fund quality exposure L P , 100% rs As of 12/31/2025: 90% High Quality o AAA 72% 80% is AA 22% v A 1% 70% Total 95% d % of portfolio 60% Credit A BBB 2% 50% c BB 1% fi i B 1% 40% CCC 0% 30%31% 32%29% CC 0% c 30% 29% 28% 24% 27% 23% 24%22% 23% C 0% a 20% 20% 20% 20% 17% D 0%
Slide 40: FPA Flexible Fixed Income Fund exposure summary
FPA Flexible Fixed Income Fund exposure summary L P rs , o Portfolio Exposure Limits Current Portfolio Exposure is 100% v High quality High quality 95% d 25%-100% ■ Cash & Equiv. 13% ■ Treasury 24% A ■ ABS 18% ■ RMBS 28% i c ■ CMBS 13% f ■ Corporate 0% c i a Credit sensitive 5% ■ Corporate 3% P ■ AB
Slide 41: FPA Flexible Fixed Income Fund return simulation as of 12/31/25
FPA Flexible Fixed Income Fund return simulation as of 12/31/25 L P rs , 8.0% Hypothetical 12-month total return, gross of fees 7.0% 6.0% is o v 5.0% d 4.0% 3.0% c A if i 2.0% c 1.0% a 0.0% -1.0% t P rs -100 -75 -50 -25 0 +25 +50 +75 +100 +125 +150 +175 +200 Reference yield change (bps) F i The Char
Slide 42: Question & Answer
L P rs , is o d v c A f i Question & Answer i a c t P F irs 42
Slide 43: FPNIX return simulation vs. 12-month Treasury Bill
FPNIX return simulation vs. 12 month Treasury Bill L P , FPNIX (gross of fees) FPNIX (net of fees) rs 12 month Treasury Bill FPNIX (net of fees) less 12 month Treasury Bill o 8.0% is 6.40 5.95 Hypothetical 12-month total return 6.0% d v 3.86 4.0% 3.47 3.41 3.47 3.47 A 2.48 2.0% 1.39 c 0.94 0.0% if i
Slide 44: FPNIX return simulation vs. 3-year Treasury
FPNIX return simulation vs. 3-year Treasury L P , FPNIX (gross of fees) FPNIX (net of fees) rs 3 yr. Treasury FPNIX (net of fees) less 3 yr. Treasury o 8.0% is 6.40 Hypothetical 12-month total return 5.95 v 6.0% 5.48 d 3.86 A 4.0% 3.41 3.54 i c 1.65 f 2.0% 1.39 i 0.94 0.47 c 0.0% a -0.13 P -0.71 -2.
Slide 45: FPNIX return simulation vs. 7-year Treasury
FPNIX return simulation vs. 7-year Treasury* FPNIX (gross of fees) FPNIX (net of fees) L P , 7 yr. Treasury FPNIX (net of fees) less 7 yr. Treasury rs 10.0% 9.40 8.0% is o Hypothetical 12-month total return 6.40 v 5.95 6.0% d 3.86 3.94 A 4.0% 3.41 2.14 c 2.0% 1.39 fi i 0.94 0.0% c -0.53 a -2.0% -1.2
Slide 46: The ultimate goal is attractive long-term returns with a smoother ride
The ultimate goal is attractive long-term returns with a smoother ride FPA New Income growth of $10,000 over ten years L P , $14,000 FPA New Income rs Bloomberg U.S. Aggregate 1-3 Year Morningstar U.S. Fund Short-Term Bond $13,000 Bloomberg U.S. Aggregate $12,000 is o $11,000 d v A $10,000 fi i c De
Slide 47: The ultimate goal is attractive long-term returns with a smoother ride
The ultimate goal is attractive long-term returns with a smoother ride FPA Flexible Fixed Income growth of $10,000 since inception L P , $14,000 FPA Flexible Fixed Income rs Bloomberg U.S. Universal Morningstar U.S. Fund Nontraditional Bond $13,000 Bloomberg U.S. Aggregate is o $12,000 v $11,000 $10
Slide 48: Important Disclosures
Important Disclosures P These slides are intended as supplemental material to the Fourth Quarter 2025 FPA New Income Fund, FPA Flexible Fixed Income Fund, and FPA Short Duration L Government ETF (each a “Fund”, and collectively, the “Funds”) audio presentation and transcript that is posted on FPA's
Slide 49: Important Disclosures (continued)
Important Disclosures (continued) L P The FPA Flexible Fixed Income Fund Total Annual Fund Operating Expenses before reimbursement is 0.62% for the Institutional Class, 0.65% for the Advisor Class, and 0.80% for the Investor Class (as of most recent prospectus). First Pacific Advisors, LP (the “Advi
Slide 50: Important Disclosures (continued)
Important Disclosures (continued) L P Value style investing presents the risk that the holdings or securities may never reach their full market value because the market fails to recognize what the portfolio management team considers the true business value or because the portfolio management team ha
Slide 51: Important Disclosures (continued)
Important Disclosures (continued) P Index Definitions L Index returns are provided for comparison purposes only. Indices are unmanaged and index returns do not reflect transactions costs (e.g., commissions), investment management fees , or other fees and expenses that would reduce performance for an
Slide 52: Important Disclosures (continued)
Important Disclosures (continued) L P Morningstar Bond Categories , Morningstar Nontraditional Bond portfolios contain 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 re
Slide 53: Glossary of Terms
Glossary of Terms L P High Yield (HY) Bond is a high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds. , Investment Grade (IG) is a ratin