Slide 1: FPA Global Equity ETF (FPAG) 3-Year Anniversary Webcast Presentation
LP s , o r v i s A d c FPA Global iEquity ETF (FPAG) i f c 3-Year Anniversary Webcast Presentation a t P Presented by: Mark Landecker and Brian Selmo February 20, 2025 ir s F Follow us on:
Slide 2: Agenda
Agenda I. Why we launched FPAG LP II. Strategy overview s, III. Process o r IV. Results v i s V. Portfolio update VI. Portfolio holding update A d VII. Q&A if i c a c t P ri s F 2
Slide 3: Why we launched FPAG
Why we launched FPAG ■ ETFs came up in conversations with clients. LP ‒ We believed ETF usage would continue to increase over the long-term. s, ■ The FPA Contrarian Value team had been managing an equity only portfolio for many years. o r i s ‒ We thought larger capitalization equities were the idea
Slide 4: Strategy overview
Strategy overview FPA Global Equity ETF FPA Contrarian Value Strategy (FPA Crescent Fund) LP Investment Goals Market beating returns with similar risk* , Equity-like returns with less risk* s Morningstar Category Global Large-Stock Value r Moderately Aggressive Allocation o Asset Class(es) Market Ca
Slide 5: Process
Process FPA Crescent Fund (FPACX) LP long-only equities. s , o r v i s Those greater than A d if i c $10bn at time of purchase.* a c t P ri s FPA Global Equity ETF (FPAG) Portfolio As of December 31, 2024. F * FPAG will primarily invest in publicly traded commons stocks greater than $10B at time of
Slide 6: Performance
Performance Trailing Performance (%) LP , As of Date: 12/31/2024 Since 12/16/21 3 Years 1 Year YTD QTD 2024 2023 2022 2021* FPA Global Equity ETF - NAV FPA Global Equity ETF - Market Price 7.95 8.02 7.20 7.15 15.76 15.64 15.76 15.64 -1.36 -1.42 rs 15.76 15.64 29.00 29.58 -17.52 -17.89 2.44 2.76 MSCI
Slide 7: FPAG vs Crescent vs MSCI ACWI since inception
FPAG vs Crescent vs MSCI ACWI since inception Growth of 10k LP $14,000 s , $12,704 $12,000 o r $12,617 $11,947 $10,000 $8,000 v i s $6,000 2021 2022 2023 A d 2024 2024 FPA Global Equity ETF if i c MSCI ACWI FPA Crescent Fund c Performance: Cumulative, Annualized, and Max Drawdown a t P Total Return
Slide 8: Performance contribution
Performance contribution Trailing Twelve-Month Contributors and Detractors (%) LP s , r Top 5 Performance Percent of Bottom 5 Performance Percent of Contribution Portfolio Contribution Portfolio Meta Platforms 3.04 8.8 i s Heineken Holding o -0.96 3.0 v Alphabet 2.83 5.7 JDE Peet's -0.80 1.8 d Citig
Slide 9: Top holdings
Top 10 holdings Holding Positon (%) LP Alphabet 8.1 s , r Meta Platforms 6.0 o Citigroup 5.4 s Holcim 5.3 Analog Devices Comcast v i 5.2 4.7 TE Connectivity Amazon Int'l Flavors and Fragrances A d 4.4 3.8 3.8 Aon Top 10 % of Fund if i c 3.4 50.1 a c Active Share 89.8% t P ri s As of December 31, 202
Slide 10: FPA Global Equity ETF Portfolio
FPA Global Equity ETF Portfolio Geographic Allocation1 United States % of Equity 60.0 LP International - Developed International - Emerging 37.6 s2.4 , Sector Breakdown (GICS)2 o r % of Portfolio s Communication Services 24.1 Consumer Discretionary Information Technology Financials v i 12.9 12.4 11.
Slide 11: 2024 Portfolio activity
2024 Portfolio activity Bought Sold LP Pernod Ricard AIG s , Shiseido Vail Resorts Heidelberg Materials Alibaba o r iShares 0-3 Month Treasury Bond ETF Grupo Mexico v i s Entain FirstEnergy A d Groupe Bruxelles Lambert Just Eat Takeaway Netflix if i c a c t P ri s As of December 31, 2024. F The info
Slide 12: Equity valuation metrics vs market
Equity valuation metrics vs market FPA Global Equity ETF Equity Holding Valuations and Earnings Growth vs Stock Market LP Price/Earnings Price/Book s , 3-Year Forward Estimated EPS 1 Year Forward o r Growth s 12/31/2023 12/31/2024 12/31/2023 12/31/2024 12/31/2023 12/31/2024 FPAG - Equity Portfolio 1
Slide 13: Portfolio holding update - Heineken Holding
Portfolio holding update - Heineken Holding ■ World’s second largest brewer, behind AB InBev. LP s , ■ #1 or 2 market share positions in 71 countries across the world. o r ■ Greater than 40% of revenue from premium products. v i s ■ 55% of revenue from emerging markets. A d if i c ■ #1 nonalcoholic
Slide 14: Why we like beer
Why we like beer ■ Combines personality of a consumer staple with above average economics derived from LP manufacturing and logistics at a massive scale. s, o r ■ Oligopolistic markets, strong brands, low private label penetration, high return on capita employed. v i s ■ Heineken is undertaking an e
Slide 15: 12-month Forward P/E
12-month Forward P/E LP s , o r v i s A d if i c a c t P ri s F Source: Citigroup. As of January 10, 2025. “Cons” stands for “Consumer”. The US Market is represented by the MSCI USA Index, and the US Consumer Staples reflects the MSCI USA Consumer Staples Index. Similarly, the Europe Market is repre
Slide 16: Summary
Summary ■ So far so good… but it has only been ~3 years. LP s, years. o r ■ We continue to urge our fellow shareholders to think in terms of full market cycles, not quarters and v i s ■ We believe FPAG is a great solution for those who have a long time horizon and are comfortable with equity-market
Slide 17: Q&A
LP s, o r v i s A d Q&A if i c a c t P ri s F 17
Slide 18: Appendix
LP s, o r v i s A d Appendix if i c a c t P ri s F 18
Slide 19: Fund holdings (%) as of December 31, 2024
Fund holdings (%) as of December 31, 2024 Communication Services Alphabet Meta Platforms 24.1 8.1 6.0 Financials Citigroup Aon 11.9 5.4 3.4 Materials Holcim LP International Flavors & Fragrances 11.1 5.3 3.8 Comcast Charter Communications 4.7 2.4 Wells Fargo 3.1 Glencore s Grupo Mexico , 1.9 0.1 r N
Slide 20: FPA Crescent Fund Standard Performance
FPA Crescent Fund Standard Performance P Trailing Performance (%) Market Cycle Performance L 3/25/00- 10/10/07- 1/4/22- As of December 31, 2024 Inception* 30 Yr 20 Yr 15 Yr 10 Yr 5 Yr 3 Yr 1 Yr YTD QTD 10/9/07 1/3/22 12/31/24 FPA Crescent Fund (FPACX) MSCI ACWI** 9.99 - 10.05 - 8.14 - 8.76 - 7.85 9.
Slide 21: FPA Crescent Fund Long Equity Carve Out Returns
FPA Crescent Fund Long Equity Carve Out Returns Long Equity Carve-Out Gross Performance vs Indices (%) CAGR LP 1/1/07 to 12/31/2024 1/1/11 to 12/31/2024 s , 2024 r FPACX Long Equity 11.02 10.06 19.85 o MSCI ACWI* 6.91 17.49 s Excess Return vs. MSCI ACWI 3.16 2.36 S&P 500 Excess Return vs. S&P 500 10
Slide 22: Important risk information
Important risk information These slides are intended as supplemental material to the 3-Year Anniversary FPA Global Equity ETF (“FPAG” or “Fund”) audio presentation and transcript that are LP posted on FPA's website at fpag.fpa.com. This presentation is for informational and discussion purposes only
Slide 23: Important risk information (continued)
Important risk information (continued) P The Fund’s Total Annual Fund Operating Expenses before reimbursement are 1.03% (as of the most recent Prospectus). First Pacific Advisors, LP, (the “Adviser”) has contractually agreed to limit Total Annual Fund Operating Expenses (excluding any front-end or c
Slide 24: Important risk information (continued)
Important risk information (continued) P Index / Benchmark / Category Definitions L Comparison to indices are shown for illustrative purposes only. Certain information, including index information, has been provided by third-party sources, and, although believed to be reliable, has not been independ
Slide 25: Important risk information (continued)
Important risk information (continued) P Other Definitions (cont’d) L Cyclically adjusted price-to-earnings ratio (CAPE), commonly known as Shiller P/E or P/E 10 ratio, is a valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years