FPA Queens Road Small Cap Value Fund Institutional Class · NASDAQ:QRSIX
FPA Queens Road Small Cap Value Fund Institutional Class — First Pacific Advisors (FPA New Income Fund & FPA Flexible Fixed Income Fund) — Debt Investor Presentation (June 2025)
41 slides from FPA Queens Road Small Cap Value Fund Institutional Class's debt investor presentation, June 2025
Slide 1: FPA New Income Fund & FPA Flexible Fixed Income Q2 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 Second Quarter 2025 Webcast Presentation i r s F Follow us on:
Slide 2: FPNIX performance (net)
FPNIX performance (net) L P , Performance (%) as of 6/30/2025 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 5.67 4.02 2.86 2.35 2.69 3.02 5.33 7.12 4.31 1.65 o Bloomberg U.S. Aggregate 6.25 5.71 4.32 3.09 2.29 1.76 -0.73 2.55 6.08 4.02 1.21 is CP
Slide 3: FPNIX performance (net) – annual
FPNIX performance (net) Annual Performance (%) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 L P , FPA New Income (FPNIX) 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 2.60 rs Bloomberg
Slide 4: FPFIX performance (net)
FPFIX performance (net) L P , Performance (%) as of 6/30/2025 Since 5 Yr 3 Yr 1 Yr YTD QTD rs Inception FPA Flexible Fixed Income (FPFIX) 3.94 3.98 6.15 7.11 4.16 1.76 o Bloomberg U.S. Universal 2.05 -0.15 3.28 6.51 4.10 1.40 is CPI + 200 5.86 6.68 4.97 4.74 2.24 1.09 d v c A if i c Index data sourc
Slide 5: FPFIX performance (net) – annual
FPFIX performance (net) L P , Annual Performance (%) 2024 2023 2022 2021 2020 2019 rs FPA Flexible Fixed Income (FPFIX) 5.29 9.02 -2.82 1.77 4.70 3.78 o Bloomberg U.S. Universal 2.04 6.17 -12.99 -1.10 7.58 9.29 is CPI + 200 4.97 5.38 8.58 9.35 3.36 4.38 d v c A if i c Index data source: Morningstar.
Slide 6: Funds overview
Funds overview 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)1 rs Seeks to provide long-te
Slide 7: Portfolio characteristics
Portfolio characteristics As of 6/30/2025 L P rs , Yield-to-Worst (%) Effective Duration (yrs.) Credit Exposure (%) FPA New Income 4.43 3.3 4.4 is o Bloomberg U.S. Aggregate 4.51 6.1 11.9 v Bloomberg U.S. Aggregate 1-3 Year 3.95 1.9 9.6 Ad Yield-to-Worst (%) Effective Duration (yrs.) Credit Exposure
Slide 8: Q2 2025 Summary
Q2 2025 Summary ■ Spreads are very low; we believe debt markets are expensive. L P ■ We believe High Quality, longer duration bonds are attractive. rs , ■ Lower-rated debt is generally still not attractive but both Funds are open to buying BBB or lower rated is o v debt if and when the price makes s
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: Tariffs sparked an increase in market volatility
Tariffs sparked an increase in market volatility MOVE Index L P rs , o 140 is April 2, 2025: Tariffs announced v 130 120 Ad c Index value if i 110 100 a c 90 t P 80 F i rs 12-May 17-May 22-May 27-May 12-Jan 17-Jan 22-Jan 27-Jan 13-Mar 18-Mar 23-Mar 28-Mar 16-Jun 11-Jun 21-Jun 26-Jun 2-Jan 7-Jan 11-F
Slide 11: Investment grade bond yields near decade-plus highs but spreads are low
Investment grade bond yields near decade-plus highs but spreads are low Bloomberg U.S. Aggregate Bond Index L P Spread Percentile rs , o 18.00% Q2 2025 peak 56 bps 16th 350 is At 6/30/25 46 bps 2nd 16.00% v 300 d 14.00% A 250 12.00% c Yield-to-worst Spread (bps) i 10.00% 200 8.00% c if 150 a 6.00% P
Slide 12: 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 BB, ex. Energy All High Yield rs , o Spread Percentile Spread Percentile 25.00% 2,500 is Q2 2025 peak 317 bps 69th 476 bps 48th At 6/30/25 199 bps 6th 323 bps 6th d v 20.00% 2,000 15.00% c A 1,500 Spread (b
Slide 13: High yield: reward generally not worth the risk
High yield: reward generally not worth the risk High Yield Spread less Investment Grade Corporate Spread L P rs , o 800 is 700 600 d v A 500 Basis Points (bps) 400 if i c c 300 200 P a rs t 100 i 0 F BB ex. Energy less Intermediate IG Corp. Source: Bloomberg. As of June 30, 2025. BB ex Energy is the
Slide 14: Yield curve
Yield curve U.S. Treasury Yield Curve L P , 5.00% rs As of 12/31/2024 o As of 6/30/2025 is As of 3/31/2025 4.50% v Yield Ad 4.00% 3.50% 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 Q2 2025 -5 -16 -19 -15 -8 2 18 20 F Year-
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 is o 16.00% 3.50 v 14.00% 3.00 d 12.00% A 2.50 Duration (years) 10.00% c Yield i 2.00 f 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: Active duration management: illustration of upside versus downside
Active duration management: illustration of upside versus downside Hypothetical 12-month U.S. Treasury Returns L P 10.00% rs , 9.45 is o 8.00% 7.56 6.60 v 6.00% 5.62 d Yield / Total Return 4.70 A 3.97 3.97 3.97 3.80 3.99 4.00% 3.72 3.69 3.74 c 2.75 if i 1.80 2.00% c 0.98 0.20 a 0.00% t P -1.14 -2.00
Slide 17: Multiple paths to attractive risk-adjusted return
Multiple paths to attractive risk-adjusted return L P FPA New Bloomberg FPA Flexible rs , Bloomberg o Income U.S. Aggregate Fixed Income Universal is 1-yr return (%) 7.12 6.08 7.11 6.51 v 1-yr max drawdown (%) -1.36 -3.06 -1.38 -2.73 3-yr return (%) 5.33 Ad 2.55 6.15 3.28 3-yr max drawdown (%) if i
Slide 18: 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 18
Slide 19: FPA New Income Fund contribution to return
FPA New Income Fund contribution to return Q2 2025 L P , Average Total Contribution Top sector-level Notable drivers of performance rs Weight (%) Return (%) to return (%) contributor/detractors ABS 31.50 1.55 0.48 o Auto 7.31 1.41 0.10 is Equipment 12.28 1.62 0.20 CLO 3.64 1.42 0.05 v Other 8.28 1.5
Slide 20: FPA New Income Fund portfolio overview
FPA New Income Fund portfolio overview L P , Sector Exposure Yield-to-Worst Maturity Effective Duration Spread Duration OAS rs (% of MV) (years) (years) (years) (bps) Securitized 77.1% 4.71% 4.0 3.5 3.4 80 o Agency RMBS 23.1% 4.66% 5.5 4.9 4.5 55 is Non-Agency RMBS 6.7% 4.86% 5.8 5.1 4.4 78 v Agency
Slide 21: FPA New Income Fund investment idea exposure
FPA New Income Fund investment idea exposure L P As of March 31, 2025 rs , As of June 30, 2025 Agency is o Agency v Performing Performing Mortgage CMBS Mortgage CMBS Pass-through d Pass-through 15% 14% 22% Treasuries 23% Treasuries 14% 14% A ABS ABS Other c Other Equipment i Equipment 15% 17% 12% f
Slide 22: FPA New Income Fund quality exposure
FPA New Income Fund quality exposure L P , 100% rs As of 6/30/2025: 90% High Quality o AAA 68% 80% is AA 24% v A 4% 70% Total 96% d % of portfolio 60% Credit A BBB 2% 50% c BB 0% fi i B 1% 40% CCC 0% CC 0% c 30% C 0% a D 0% 20% NR 2% P 10% 10% 9% 10% 9% 8% 7% 9% 9% 9% 10% 10% 10%10% 10% 7% Total 4%
Slide 23: FPA New Income Fund return simulation as of 6/30/25
FPA New Income Fund return simulation as of 6/30/25 L P rs , 8.0% Hypothetical 12-month total return, gross of fees 7.0% is o 6.0% v 5.0% d 4.0% A 3.0% i c 2.0% if 1.0% c 0.0% -1.0% P a t -2.0% rs -100 -75 -50 -25 0 +25 +50 +75 +100 +125 +150 +175 +200 Reference yield change (bps) F i The Chart show
Slide 24: 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 24
Slide 25: FPA Flexible Fixed Income Fund contribution to return
FPA Flexible Fixed Income Fund contribution to return P Q2 2025 L Average Total Contribution Top sector-level Notable drivers of performance , Weight (%) Return (%) to return (%) contributor/detractors rs ABS 24.94 1.76 0.43 Auto 4.28 1.44 0.06 o Equipment 9.03 1.58 0.14 CLO 3.86 2.38 0.09 is Other
Slide 26: FPA Flexible Fixed Income Fund portfolio overview
FPA Flexible Fixed Income Fund portfolio overview L P , Sector Exposure Yield-to-Worst Maturity Effective Duration Spread Duration OAS rs (% of MV) (years) (years) (years) (bps) Securitized 70.8% 4.97% 4.4 3.7 3.7 102 o Agency RMBS 24.0% 4.70% 5.7 5.1 4.7 58 is Non-Agency RMBS 7.6% 4.85% 5.8 5.1 4.4
Slide 27: FPA Flexible Fixed Income Fund investment idea exposure
FPA Flexible Fixed Income Fund investment idea exposure L P As of March 31, 2025 rs , As of June 30, 2025 is o v Mortgage Treasuries Mortgage Treasuries Pass-through 20% Agency Pass-through d 19% Agency 20% Performing 24% Performing CMBS CMBS A 10% 10% Other 15% ABS Other c ABS i Equipment 19% Equip
Slide 28: FPA Flexible Fixed Income Fund quality exposure
FPA Flexible Fixed Income Fund quality exposure L P , 100% rs As of 6/30/2025: 90% High Quality o AAA 65% 80% is AA 25% v A 2% 70% Total 92% d % of portfolio 60% Credit A BBB 3% 50% c BB 2% fi i B 2% 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
Slide 29: FPA Flexible Fixed Income Fund return simulation
FPA Flexible Fixed Income Fund return simulation as of 6/30/25 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 Chart
Slide 30: Question & Answer
L P rs , is o d v c A f i Question & Answer i a c t P F irs 30
Slide 31: 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% 6.98 is 6.53 Hypothetical 12-month total return 6.0% v 4.32 d 3.97 3.87 3.97 3.97 4.0% A 2.56 1.77 2.0% 1.32 0.0% if i c
Slide 32: 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% 6.98 is 6.53 Hypothetical 12-month total return v 6.0% 5.61 d 4.32 3.87 A 4.0% 3.00 i c 1.77 1.80 f 2.0% 1.32 i 0.92 c 0.18 0.0% a -0.48 P -2.0
Slide 33: 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% 9.45 8.0% is o Hypothetical 12-month total return 6.98 6.53 v 6.0% d 4.32 3.87 3.99 A 4.0% 2.46 1.77 c 2.0% 1.32 0.0% if i c -0.12 a -2.0% -1.1
Slide 34: Attractive long-term returns with a smoother ride – FPA New Income
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 Ju
Slide 35: Attractive long-term returns with a smoother ride – FPA Flexible Fixed Income
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 36: Important Disclosures
Important Disclosures These slides are intended as supplemental material to the Second Quarter 2025 FPA New Income Fund, FPA Flexible Fixed Income Fund, and FPA Short Duration Government ETF (each a “Fund”, and collectively, the “Funds”) audio presentation and transcript that is posted on FPA's webs
Slide 37: Important Disclosures (continued)
Important Disclosures (continued) L P Certain statements made may be forward-looking and/or based on current expectations, projections, and information currently available to First Pacific Advisors, LP (“FPA”). Such statements may or may not be accurate over the long-term. While we believe we have a
Slide 38: Important Disclosures (continued)
Important Disclosures (continued) L P For the FPA Short Duration Government ETF - Shares of the Fund are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Because ETFs trade like stocks, the Fund may trade at prices above or below the ETF's NAV. While the sha
Slide 39: Important Disclosures (continued) – Index Definitions
Important Disclosures (continued) L P Index Definitions 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 40: Important Disclosures (continued) – Morningstar Bond Categories
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 41: Glossary of Terms
Glossary of Terms L P Investment Grade (IG) is a rating that indicates that a bond has a relatively low risk of default. Loss coverage multiple is calculated by dividing breakeven collateral loss by peak historical collateral loss. , Maturity is the period of time for which a financial instrument re