FPA

Effective succession planning and methodical product development position FPA well. It earns an Above Average Parent rating.

This employee-owned firm has long been thoughtful about succession. Managing partner Richard Atwood retired from the firm at year-end 2024 after more than 20 years in the role. David Brookman became a managing partner in 2023 in anticipation of Atwood’s retirement, allowing for a gradual transition of duties. The firm’s small-cap boutique, Queens Road, appointed a comanager in January 2026 alongside longtime lead manager Steve Scruggs, which represents the latest example of well-thought-out succession. Although the firm’s equity ownership remains concentrated in a small group of senior leaders, FPA has taken steps to enhance retention. In 2025, it introduced a profit share arrangement for high achievers, which management continues to award to select employees each year.

Flagship strategies FPA Crescent and FPA New Income represent a significant portion of the firm’s USD 32 billion in assets under management as of December 2025. However, the firm has taken prudent steps to diversify its business without affecting existing capabilities. For instance, FPA launched a Short Duration Government Bond ETF in October 2024, its second exchange-traded fund following the 2021 launch of FPA Global Equity ETF. The firm also introduced new share class structures in 2024 and continues to prioritize fee waivers and tax management to benefit investors.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, FPA (Branding Name ID: BN000008Q9), is covered by Morningstar Manager Research.