FPA Perennial Fund, Inc.

Objective:

FPA Perennial Fund, Inc. (FPPFX) seeks long-term capital growth by investing primarily in small and mid-cap stocks.

• Buy superior businesses at reasonable prices
• Consistent disciplined philosophy since fund inception
• Portfolio weightings reduces benchmark correlation
• Concentrated portfolio
• Very low portfolio turnover

Philosophy:

The Fund's managers believe that long-term ownership of superior companies produces high shareholder returns. These businesses typically exhibit outstanding returns on capital combined with fortress balance sheets. Their business models are easily understood, benefit from strong market positions or other competitive strengths, and are executed by capable management teams. Through a patient approach, the Fund attempts to take advantage of price opportunities or market inefficiencies to periodically acquire the securities of such companies at attractive prices. The Fund's approach does not rely on market or economic forecasts, rather on the selection of individual businesses and a disciplined judgment of the relative attractiveness of the market valuation of those businesses. Due to its bottom up security selection process and relative concentration of holdings, the Fund varies widely from benchmark security and sector weightings.