FPA Queens Road Small Cap Value Fund Institutional Class · NASDAQ:QRSIX
FPA Queens Road Small Cap Value Fund Institutional Class — FPA — Investor Presentation (June 2026)
36 slides from FPA Queens Road Small Cap Value Fund Institutional Class's investor presentation, June 2026
Slide 1: Second Quarter 2026 Webcast Presentation
Follow us on: s Second Quarter 2026 Webcast Presentation FPA New Income Fund nd u FPA Flexible Fixed Income Fund F P A F
Slide 2: FPA Investor Day – Los Angeles
FPA Investor Day – Los Angeles d s u n F A formal invitation with agenda and RSVP A details will be sent to all FPA Webcast P attendees. F 2
Slide 3: FPNIX performance (net)
FPNIX performance (net) s Average Annual Total Returns (%) d As of June 30, 2026 Since 40 Yr 30 Yr 20 Yr 15 Yr 10 Yr 5 Yr 3 Yr 1 Yr YTD QTD Inception n FPA New Income (FPNIX) 6.15 5.38 3.89 2.84 2.40 2.97 3.33 5.89 3.48 0.54 0.36 Bloomberg U.S. Aggregate 6.19 5.33 4.28 3.32 2.28 1.54 0.08 4.16 3.79
Slide 4: FPFIX performance (net)
FPFIX performance (net) s Average Annual Total Returns (%) n d As of June 30, 2026 Since Inception 5 Yr 3 Yr 1 Yr YTD QTD FPA Flexible Fixed Income (FPFIX) 3.86 3.83 6.10 3.38 0.42 0.24 u Bloomberg U.S. Universal 2.33 0.44 4.70 4.15 0.77 0.92 CPI + 200 5.81 6.30 5.11 5.55 3.03 1.19 F Annual Performa
Slide 5: Overview of funds
Overview of funds s FPA Short Duration FPA New Income Fund FPA Flexible Fixed Income Fund Government ETF Institutional Class Shares (FPNIX) Institutional Class Shares (FPFIX) (FPAS) Investor Class Shares (FPNRX) Advisor Class Shares (FFIAX) d Investor Class Shares (FFIRX) Investment Objective Seeks
Slide 6: Portfolio overview as of 6/30/2026
Portfolio overview as of 6/30/2026 d s Yield-to-Worst (%) Effective Duration (yrs.) Credit Exposure (%) n FPA New Income 4.35 3.2 3.2 Bloomberg U.S. Aggregate 4.73 5.9 11.6 u Bloomberg U.S. Govt/Credit 1-5 Year 4.32 2.6 11.6 F Bloomberg U.S. Aggregate 1-3 Year 4.28 1.9 9.1 A FPA Flexible Fixed Incom
Slide 7: Q2 2026 Summary
Q2 2026 Summary s • Credit spreads are in historically low territory; we believe credit markets remain expensive. d • Credit is generally not attractive to us but both Funds are open to buying BBB or lower rated debt if and when n the price makes sense. • We believe High Quality, longer duration bon
Slide 8: Observations
d s u n Observations F P A F 8
Slide 9: High yield spreads are very low
High yield spreads are very low s Bloomberg U.S. Corporate High Yield Index d 25.00% 2,500 u n 20.00% 2,000 F Spread (bps) 15.00% 1,500 Yield-to-worst 10.00% 1,000 A 5.00% 500 F P 0.00% 0 Jun-95 Apr-98 Jul-02 Jul-09 Mar-15 Aug-16 Jun-19 Mar-22 Aug-23 Jun-26 Jan-94 Nov-96 Sep-99 Feb-01 Dec-03 May-05
Slide 10: Investment grade bond spreads are very low
Investment grade bond spreads are very low s Bloomberg U.S. Aggregate Bond Index 18.00% 350 d 16.00% 300 n 14.00% 250 12.00% Yield-to-worst Spread (bps) u 10.00% 200 8.00% 150 F 6.00% 100 4.00% 50 2.00% A 0.00% 0 Jul-77 Apr-83 Aug-87 Jun-90 Mar-96 Jul-00 Jun-03 Apr-06 Mar-09 Aug-10 Jul-13 Apr-19 Mar
Slide 11: Incremental credit spreads are low
Incremental credit spreads are low s High Yield Spread less Investment Grade Corporate Spread d 800 n 700 u 600 F Basis Points (bps) 500 400 A 300 P 200 F 100 0 Apr-00 Mar-03 Jul-07 Jun-10 Apr-16 Mar-19 Aug-20 Jul-23 Jun-26 Oct-01 Sep-04 Feb-06 Jan-09 Dec-11 May-13 Oct-14 Sep-17 Feb-22 Dec-24 At 6/3
Slide 12: Yield curve
Yield curve s U.S. Treasury Yield Curve n d 5.00% As of 6/30/2026 As of 3/31/2026 As of 12/31/2025 u 4.50% F Yield 4.00% A 3.50% F P 3.00% 1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 20Y 30Y Maturity Maturity Change in yield (bps) 1Y 2Y 3Y 5Y 7Y 10Y 20Y 30Y Q2 2026 32 38 37 28 21 15 5 4 YTD 2026 51 70 64 50 40 30 1
Slide 13: Year-to-date Treasury yields
Year-to-date Treasury yields s U.S. Treasury Yield d Feb. 28: Jun. 17: n 4.75% Beginning of US FOMC attacks on Iran announcement, (Warsh's first) u 4.55% F 4.35% 4.15% A 3.95% P 3.75% F 3.55% 3.35% Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 2 yr. Treasury yield 3 yr. Treasury yield 5 yr. Treasury yie
Slide 14: Treasury yields remain near decade-plus highs
Treasury yields remain near decade-plus highs s U.S. Treasury Yields and Funds’ Duration d 18.00% 4.00 n 16.00% 3.50 u 14.00% 3.00 Duration (years) F 12.00% 2.50 10.00% Yield 2.00 8.00% A 1.50 6.00% P 1.00 4.00% 2.00% 0.50 F 0.00% 0.00 Aug-67 Jun-70 Mar-73 Aug-81 Jun-84 Mar-87 Aug-95 Jun-98 Mar-01 A
Slide 15: Active duration management
Active duration management s Focused on preservation of capital with upside potential d Example: U.S. Treasury Yields and Potential 12-month Return n 12.00% u 9.73 10.00% 7.95 F 8.00% 7.04 Yield / Total Return 6.10 6.00% 5.15 4.17 4.18 4.21 4.23 4.34 3.98 3.98 3.98 A 4.00% 3.21 2.30 2.00% 1.46 0.66
Slide 16: Real yields increased
Real yields increased s 5-year Real Yield d 5.00% n 4.00% u 3.00% F 2.00% A 1.00% P 0.00% F -1.00% -2.00% -3.00% Jul-97 May-00 Apr-03 Mar-06 Feb-09 Dec-11 Nov-14 Oct-17 Aug-20 Jul-23 Jun-26 Source: Bloomberg. As of June 30, 2026. Past performance is no guarantee, nor is it indicative, of future resu
Slide 17: FPA New Income Fund Portfolio Update
d s u n F FPA New Income Fund A Portfolio Update P F 17
Slide 18: FPA New Income Fund contribution to return
FPA New Income Fund contribution to return s Q2 2026 Average Total Contribution Top sector-level Notable drivers of return d Weight (%) Return (%) to return (%) contributors/detractors ABS 24.2 0.74 0.18 Auto 6.1 0.66 0.04 n Interest income, partially offset by price declines caused by an increase E
Slide 19: FPA New Income Fund portfolio
FPA New Income Fund portfolio s Sector Exposure Yield-to-Worst Avg. Life Effective Duration Spread Duration OAS (% of MV) (%) (years) (years) (years) (bps) d Securitized 58.5% 4.72% 3.5 3.1 3.0 49 Agency RMBS 15.6% 4.77% 5.6 4.9 4.6 36 n Non-Agency RMBS 5.5% 5.10% 5.2 4.9 4.1 70 Agency CMBS 11.3% 4.
Slide 20: FPA New Income Fund investment idea exposure
FPA New Income Fund investment idea exposure s As of March 31, 2026 As of June 30, 2026 3% 14% n 3% 14% d u 29% 30% 5% 5% F 6% 6% 6% 7% 15% 15% 10% A 9% 11% 11% F P Source: FactSet. As a % of market value. ABS = Asset Backed Security. CMBS = Commercial Mortgage-Backed Security. Other represents the
Slide 21: FPA New Income Fund quality exposure
FPA New Income Fund quality exposure s Quality Exposure d 100% High Quality n 90% AAA 80% AA 16% u 80% A 1% 70% Total 97% F 60% Credit % of portfolio 50% BBB 1% 40% BB 0% A B 0% 30% CCC 0% 20% CC 0% P 10%10% 10%10%10% 9% 10% 9% 8% 7% 9% 9% 9%10% 10% 7% C 0% 7% 5% 6% 7% 7% 6% 6% 7% 4% 4% 4% 4% 4% 3%
Slide 22: FPA New Income Fund quality exposure
FPA New Income Fund quality exposure s Portfolio Exposure Limits Current Portfolio Exposure d 100% n High quality 75%-100% High quality 97% u Cash & Equiv. 7% Treasury 31% F ABS 24% RMBS 21% CMBS 14% Corporate 0% A Credit sensitive 3% P Corporate 3% ABS 0% Credit sensitive RMBS 0% F 0-25% CMBS 0% 0%
Slide 23: FPA Flexible Fixed Income Fund Portfolio Update
d s u n F FPA Flexible Fixed Income Fund A Portfolio Update P F 23
Slide 24: FPA Flexible Fixed Income Fund contribution to return
FPA Flexible Fixed Income Fund contribution to return Q2 2026 s Average Total Contribution Top sector-level Notable drivers of return Weight (%) Return (%) to return (%) contributors/detractors d ABS 17.5 0.52 0.09 Auto 3.3 0.60 0.02 Interest income, partially offset by price declines caused by an i
Slide 25: FPA Flexible Fixed Income Fund portfolio
FPA Flexible Fixed Income Fund portfolio s Sector Exposure Yield-to-Worst Avg. Life Effective Duration Spread Duration OAS (% of MV) (%) (years) (years) (years) (bps) d Securitized 54.1% 4.86% 4.0 3.6 3.4 60 Agency RMBS 15.6% 4.76% 5.7 5.0 4.7 36 n Non-Agency RMBS 10.3% 5.07% 5.2 4.8 4.1 68 Agency C
Slide 26: FPA Flexible Fixed Income Fund investment idea exposure
FPA Flexible Fixed Income Fund investment idea exposure s As of March 31, 2026 As of June 30, 2026 3% 12% n 4% 3% 11% d u 4% 32% 34% 7% 7% F 8% 7% 9% 16% 9% A 15% 9% 10% F P Source: FactSet. As a % of market value. ABS = Asset Backed Security. CMBS = Commercial Mortgage-Backed Security. Other repres
Slide 27: FPA Flexible Fixed Income Fund quality exposure
FPA Flexible Fixed Income Fund quality exposure s Quality Exposure d 100% High Quality n AAA 79% 90% AA 16% u 80% A 1% Total 96% 70% F 60% Credit % of portfolio 50% BBB 2% BB 1% A 40% B 1% 31%32% 30% 29%30% 29% 28% CCC 0% 27% 23% 24% 22%24% 23% 21%20% CC 0% P 20% 20% 15% 17% 13% 13% C 0% 10% 10% 6%
Slide 28: FPA Flexible Fixed Income Fund quality exposure
FPA Flexible Fixed Income Fund quality exposure s Portfolio Exposure Limits Current Portfolio Exposure d 100% n High quality 25%-100% High quality 96% u Cash & Equiv. 9% Treasury 34% F ABS 16% RMBS 26% CMBS 11% Corporate 0% A Credit sensitive 4% P Corporate 3% ABS 1% Credit sensitive RMBS 0% F 0-75%
Slide 29: Question & Answer
d s u n F Question & Answer P A F 29
Slide 30: Ultimate goal is attractive long-term returns with a smoother ride
Ultimate goal is attractive long-term returns with a smoother ride FPA New Income Growth of $10,000 Over Ten Years d s n $14,000 u $13,000 F $12,000 $11,000 A $10,000 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 P FPA New Income Bloomberg U.S. Govt/Credit 1-5 Yr Bloom
Slide 31: Ultimate goal is attractive long-term returns with a smoother ride
Ultimate goal is attractive long-term returns with a smoother ride FPA Flexible Fixed Income Growth of $10,000 Since Inception d s n $14,000 u $13,000 $12,000 F $11,000 $10,000 A $9,000 Dec-18 Jun-20 Dec-21 Jun-23 Dec-24 Jun-26 P FPA Flexible Fixed Income Morningstar U.S. Fund Nontraditional Bond Bl
Slide 32: Important disclosures
Important disclosures s These slides are intended as supplemental material to the Second Quarter 2026 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 we
Slide 33: Important disclosures (continued)
Important disclosures (continued) s NO INVESTMENT DECISIONS SHOULD BE BASED IN ANY MANNER ON THE INFORMATION AND OPINIONS SET FORTH IN THIS PRESENTATION. YOU SHO ULD VERIFY ALL CLAIMS, DO YOUR OWN DUE DILIGENCE AND/OR SEEK ADVICE FROM YOUR OWN PROFESSIONAL ADVISOR(S) AND CONSIDER THE INVESTMENT OBJE
Slide 34: Important disclosures (continued)
Important disclosures (continued) s A client’s individual portfolio results may vary from any hypothetical or estimated results because of the timing of trades, deposits and withdrawals, the impact of management fees and taxes, market fluctuations, trading costs, cash flows, custodian fees, among ot
Slide 35: Important disclosures (continued)
Important disclosures (continued) s 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 return
Slide 36: Glossary of terms (continued)
Glossary of terms (continued) s Peak historical collateral loss is highest level of collateral losses during the history of particular issuer. RMBS (Residential Mortgage Backed Securities) is mortgage-backed securities backed by residential mortgages. Sharpe Ratio is a risk-adjusted performance metr