FPPFX — FPA U.S. Value Fund, Inc.
Data updated: 2023-08-29
FPPFX — FPA U.S. Value Fund, Inc. Global (incl. US) Value Equity · $57.62M AUM · 1.26% expense ratio. Holdings, fees, performance and SEC filings.
FPPFX Fund Overview
FPPFX — FPA U.S. Value Fund, Inc. is a US mutual fund managed by Fpa U.s. Value Fund INC, categorised as Global (incl. US) Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Fpa U.s. Value Fund INC
- Category: Global (incl. US) Value Equity
- Assets under management: $57.62M
- 1-year return: 21.9%
- Ticker: FPPFX
- SEC CIK: 0000732041
- SEC series ID: S000010874
- Share class ID: C000030130
FPPFX Investment Objective and Strategy
FPA U.S. Value Fund, Inc. describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Fpa U.s. Value Fund INC.
Investment objective
The Fund's primary investment objective is long-term growth of capital.
Principal investment strategy
"Under normal circumstances, the Fund's portfolio manager (""portfolio manager"") invests at least 80% of the value of its net assets in securities of U.S. companies. The Fund considers a company to be a U.S. company if it meets any of the criteria below: is organized under the laws of, or has its principal office in the United States; has its principal securities trading market in the United States; alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the United States; or issues securities denominated in the currency of the United States. The Fund's 80% investment policy is a non-fundamental investment policy that may be changed by the Fund's Board of Directors (the ""Board"") without shareholder approval upon at least 60 days' notice to shareholders.
When evaluating potential investments, the Fund's portfolio manager attempts to identify high-quality businesses that typically also have the following characteristics: high barriers to market entry, low intensity of rivalry with competitors, limited threat of substitution, and limited bargaining power of suppliers and customers. The portfolio manager believes that companies with these characteristics are generally financially strong and are attractive investments. In addition, the portfolio manager prefers to invest in companies run by managers with demonstrated track records of reinvesting earnings and operational success. The portfolio manager does, however, consider for investment quality companies that lack some or all of such characteristics. Although company quality is the principal investment criteria, the valuation of investments is also an important part of the stock selection process.
The portfolio manager's primary measure of value is the price/earnings ratio. The portfolio manager seeks out companies that are undervalued relative to their long-term earnings power or to other companies of similar quality. The portfolio manager also seeks to identify better-than-average companies whose future intrinsic value the portfolio manager believes to be greater than or equal to the market price at the time of purchase. The portfolio manager defines the ""intrinsic value"" of a business to mean the discounted value of its future cash flows and/or net assets. Seeking to minimize risk, especially in treacherous economic or stock market environments, is an important element of the portfolio manager's investment process. To do this, the portfolio manager seeks out companies with relatively low levels of net debt (total debt minus cash and cash equivalents) on their balance sheets compared to earnings before interest, taxes, depreciation and amortization (under-leveraged), operating in more predictable sectors of the economy, with competitively advantaged business models that the portfolio manager can understand.
The portfolio manager believes that the most important contributor to the long-term investment performance of the companies held by the Fund is earnings growth, not changes in valuation (measured by the price/earnings ratio). The portfolio manager is willing to hold portfolio securities at valuations higher than it would require for an initial purchase. If a position becomes significantly overvalued, the portfolio manager would typically look to trim or eliminate the position from the portfolio. The portfolio manager's aim is to reduce portfolio turnover and its related costs and to make investment decisions based on the long-term business fundamentals of each portfolio company. The Fund may sell a portfolio holding when the holding's market price appreciates and approaches the portfolio manager's estimate of its intrinsic value; the portfolio manager finds an opportunity to reallocate the Fund's assets to other investments with greater reward potential; or the original investment thesis no longer holds.
The Fund invests primarily in the common stocks of U.S. companies in a variety of industries and market segments. The portfolio manager's investment process is fundamental and bottom-up, evaluating each company on its own merits. The process is not driven by macroeconomic analysis, though it recognizes that changes in the economic environment can be important to most companies' prospects. The Fund will seek to have holdings in various industries. These companies will generally have a minimum market capitalization of $2 billion or greater at the time of purchase. However, if the market capitalization of an issuer of securities held by the Fund declines below $2 billion, the Fund may purchase additional shares of that issuer. Cash typically will not exceed 10% of net assets. The portfolio manager believes that international investments can yield valuable benefits to Fund shareholders by providing exposure to more investment opportunities outside the U.S.
that meet the portfolio manager's investment criteria. Much of this exposure to non-U.S. business activity is expected to come from purchases of U.S.-domiciled companies with strong worldwide franchises, and from similarly strong companies whose principal offices are located in the U.S. but are domiciled outside the U.S. These non-U.S.-domiciled companies will generally be in the developed countries represented by the MSCI World Index. The MSCI World Index captures large and mid-cap representation across 23 developed markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The Fund may purchase shares and/or depository receipts of non-U.S.-domiciled companies that meet the portfolio manager's usual investment criteria and where differences in accounting, disclosure, culture, management accessibility and trading will not, in the portfolio manager's view, put the Fund at a competitive disadvantage.
Depositary receipts are receipts that represent interests in non-U.S. securities that may be sponsored by the issuer or unsponsored. On September 1, 2015, the Fund changed its name, portfolio manager and principal investment strategy. Prior to September 1, 2015, the Fund (formerly, FPA Perennial Fund, Inc.) was managed using a small/mid-capitalization strategy that permitted the Fund to invest up to 35% of its assets in non-U.S. securities. The Fund is currently using an all-capitalization strategy that permits the Fund to invest up to 20% of its assets in non-U.S. securities. The Fund's investment objective did not change."
FPPFX Performance
Total returns for FPPFX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 21.9% |
| 3 years (annualised) | 9.1% |
FPPFX Risk Information
Risk metrics for FPPFX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 20.2%
FPPFX Costs and Fees
FPPFX costs about $126 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.26%
- Gross expense ratio: 1.44%
- Portfolio turnover: 80%
- Brokerage commissions: 4.52 bps of average net assets (SEC N-CEN)
FPPFX Cashflows
Over the 12 months to 2023-06, FPA U.S. Value Fund, Inc. had net outflows of $3.33M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2023-06 | −$612 |
| 2023-05 | −$411.49K |
| 2023-04 | −$412.15K |
| 2023-03 | −$1.17M |
| 2023-02 | −$231.55K |
| 2023-01 | −$442.35K |
FPPFX Debt Constituents
No individual debt constituents are reported in FPA U.S. Value Fund, Inc.'s latest SEC N-PORT filing.
FPPFX Prospectus and SEC Filings
Official FPA U.S. Value Fund, Inc. filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2021-04-30
- Prospectus supplement (497) — filed 2023-05-03
- Prospectus supplement (497) — filed 2022-08-15
- Portfolio holdings (N-PORT) — filed 2023-08-29
- Portfolio holdings (N-PORT) — filed 2023-05-30
- Portfolio holdings (N-PORT) — filed 2023-02-28
- Annual census (N-CEN) — filed 2023-03-13
- Annual census (N-CEN) — filed 2022-03-11
Related Funds
Other Global (incl. US) Value Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.