0001104659-13-012153.txt : 20130220 0001104659-13-012153.hdr.sgml : 20130220 20130220115750 ACCESSION NUMBER: 0001104659-13-012153 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20130220 DATE AS OF CHANGE: 20130220 EFFECTIVENESS DATE: 20130220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FPA PARAMOUNT FUND INC CENTRAL INDEX KEY: 0000076210 IRS NUMBER: 952239888 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 002-14660 FILM NUMBER: 13625787 BUSINESS ADDRESS: STREET 1: 11400 W OLYMPIC BLVD STE 1200 CITY: LOS ANGELES STATE: CA ZIP: 90064 BUSINESS PHONE: 31047302225 MAIL ADDRESS: STREET 1: 11400 WEST OLYMPIC BLVD STREET 2: SUITE 1200 CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: PARAMOUNT MUTUAL FUND INC/ DATE OF NAME CHANGE: 19840620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FPA PARAMOUNT FUND INC CENTRAL INDEX KEY: 0000076210 IRS NUMBER: 952239888 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-00852 FILM NUMBER: 13625788 BUSINESS ADDRESS: STREET 1: 11400 W OLYMPIC BLVD STE 1200 CITY: LOS ANGELES STATE: CA ZIP: 90064 BUSINESS PHONE: 31047302225 MAIL ADDRESS: STREET 1: 11400 WEST OLYMPIC BLVD STREET 2: SUITE 1200 CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: PARAMOUNT MUTUAL FUND INC/ DATE OF NAME CHANGE: 19840620 0000076210 S000010871 FPA Paramount Fund, Inc. C000030125 FPA Paramount Fund, Inc. fprax 485BPOS 1 a13-2659_4485bpos.htm POST-EFFECTIVE AMENDMENT FILED PURSUANT TO SECURITIES ACT RULE 485(B)

As filed with the Securities and Exchange Commission on February 20, 2013

Securities Act File No. 2-14660

Investment Company Act No. 811-852

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

Form N-1A

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ý

 

Pre-Effective Amendment No. o

 

Post-Effective Amendment No. 75 ý

 

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ý

 

Amendment No. 40 ý

 


 

FPA PARAMOUNT FUND, INC.

(Exact Name of Registrant as Specified in Charter)

 

11400 West Olympic Boulevard, Suite 1200

Los Angeles, California 90064

(Address of Principal Executive Offices)

 

(310)473-0225

(Registrant’s Telephone Number, including Area Code)

 

J. RICHARD ATWOOD, Treasurer

 

Copy to:

FPA PARAMOUNT FUND, INC.

 

MARK D. PERLOW, ESQ

11400 West Olympic Boulevard, Suite 1200

 

K&L Gates LLP

Los Angeles, California 90064

 

Four Embarcadero Center, Suite 1200

(Name and Address of Agent for Service)

 

San Francisco, California 94111

 


 

Approximate Date of Proposed Public Offering:

 

As soon as practicable after Registration Statement becomes effective.

It is proposed that this filing will become effective (check appropriate box)

x  immediately upon filing pursuant to paragraph (b)

o  on (date) pursuant to paragraph (b)

o  60 days after filing pursuant to paragraph (a)(1)

o  on (date) pursuant to paragraph (a)(1)

o  75 days after filing pursuant to paragraph (a)(2)

o  on (date) pursuant to paragraph (a)(2) of rule 485

 

If appropriate, check the following box:

o  this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 

Title of Securities Being Registered: Common Stock, $0.25 par value

 

 

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment to Registration Statement under Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment to Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Los Angeles, State of California, on the 20th day of February, 2013.

 

 

FPA PARAMOUNT FUND, INC.

 

 

 

 

 

By:

/s/ ERIC S. ENDE

 

 

Eric S. Ende

 

 

President

 



 

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment to Registration Statement has been signed below by the following persons in the capacities and on the dates indicated:

 

SIGNATURE

 

TITLE

 

DATE

 

 

 

 

 

/s/ ERIC S. ENDE

 

President

 

February 20, 2013

Eric S. Ende

 

(Principal Executive Officer)

 

 

 

 

 

 

 

/s/ J. RICHARD ATWOOD

 

Treasurer

 

February 20, 2013

J. Richard Atwood

 

(Principal Financial

 

 

 

 

Officer and Principal

 

 

 

 

Accounting Officer)

 

 

 

 

 

 

 

/s/ ERIC S. ENDE

 

Director

 

February 20, 2013

Eric S. Ende

 

 

 

 

 

 

 

 

 

/s/              WILLARD H. ALTMAN, JR.

 

Director

 

February 20, 2013

Willard H. Altman, Jr.

 

 

 

 

 

 

 

 

 

/s/              THOMAS P. MERRICK

 

Director

 

February 20, 2013

Thomas P. Merrick

 

 

 

 

 

 

 

 

 

/s/              A. ROBERT PISANO

 

Director

 

February 20, 2013

A. Robert Pisano

 

 

 

 

 

 

 

 

 

/s/              PATRICK B. PURCELL

 

Director

 

February 20, 2013

Patrick B. Purcell

 

 

 

 

 

 

 

 

 

/s/              ALLAN M. RUDNICK

 

Director

 

February 20, 2013

Allan M. Rudnick

 

 

 

 

 



 

EXHIBIT INDEX

 

EXHIBIT

 

Exhibit No.

 

Description

 

 

 

EX-101.INS

 

XBRL Instance Document

 

 

 

EX-101.SCH

 

XBRL Taxonomy Extension Schema Document

 

 

 

EX-101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase

 

 

 

EX.101.DEF

 

XBRL Taxonomy Extension Definition Linkbase

 

 

 

EX.101.LAB

 

XBRL Taxonomy Extension Labels Linkbase

 

 

 

EX-101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase

 


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Your broker-dealer may charge you a fee for redemptions. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. FPA PARAMOUNT FUND INC 485BPOS false 0000076210 2012-09-30 2013-01-30 2013-01-30 2013-01-30 FPA Paramount Fund, Inc. fprax Fees and Expenses of the Fund. <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and certain family members invest, or agree to invest in the future, at least $50,000 in the FPA Funds. More information about these and other ways of reducing your sales charge is available in the prospectus section, "Reducing Your Sales Charge;" and in the Fund's Statement of Additional Information.</font> </p> 0.0525 0.0200 0.0000 0.0000 0.0065 0.0000 0.0029 0.0019 0.0010 0.0094 ~ http://fpafunds.com/20130130/role/ScheduleShareholderFees20001 column dei_LegalEntityAxis compact ck0000076210_S000010871Member row primary compact * ~ ~ http://fpafunds.com/20130130/role/ScheduleAnnualFundOperatingExpenses20002 column dei_LegalEntityAxis compact ck0000076210_S000010871Member row primary compact * ~ You may qualify for sales charge discounts if you and certain family members invest, or agree to invest in the future, at least $50,000 in the FPA Funds. Annual Fund Operating Expenses (expenses that are deducted from Fund assets) 50000 Redemptions by wire are subject to a $3.50 charge per wire. Your broker-dealer may charge you a fee for redemptions. Shareholder Fees (fees paid directly from your investment) Principal Investment Strategies. <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Adviser attempts to concentrate on ownership of high-quality businesses, particularly firms with histories of earning high returns on capital and with modest debt levels. These companies generally have leading market shares globally and strong managers who have demonstrable track records of wise reinvestment of the business's cash flows.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">Although company quality is the principal investment test, the valuation of investments is also an important part of the stock selection process. The Adviser's primary measure of value is the price/earnings ratio. The Adviser seeks out companies that are undervalued relative to their long-term earnings power or to other companies of similar quality, but it will not overpay for even the best companies. It is expected that the Fund's portfolio will have better-than-average companies selling at valuations similar to or below the market.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">Seeking to minimize risk, especially in treacherous economic or stock market environments, is an important element of the Adviser's investment process. To do this, the Adviser seeks out companies with relatively unleveraged balance sheets, operating in more predictable, less volatile sectors of the economy, with business models that it can understand. The companies' leading market shares and high operating margins may minimize the volatility of their earnings. A diversified portfolio and modest relative valuations, typically lower than the global market, also contribute to reducing risk.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Adviser believes that the most important contributor to the long-term investment performance of the companies held by the Fund is growth in earnings, not changes in valuation (measured by the price/earnings ratio). Because growth is driven by earning high returns on capital and successful reinvestment of cash flow, it is necessary to hold most of the portfolio securities in the Fund's portfolio for an extended period in order for this process to come to fruition. Accordingly, portfolio turnover may be very low.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">Although there can be a conflict between a very long investment time horizon and a strong value discipline in managing the portfolio, the Adviser is willing to hold portfolio securities at valuations higher than it would require for an initial purchase. If a position becomes significantly overvalued, the Adviser would not hesitate to trim or eliminate the security from the portfolio. The Adviser's aim is to reduce portfolio turnover with its concomitant costs and to focus attention on the long-term business fundamentals of the portfolio companies.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Fund invests primarily in the common stocks of international and U.S. companies in a variety of industries and market segments. The Adviser'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's portfolio will have holdings in many industries. The portfolio may be moderately concentrated, with 30-40 positions. Most of these companies will be of small-to-medium market capitalization (up to $10 billion), though ownership of larger companies is permitted. Cash is the residual of the investment process and will normally be a small percent of Fund assets.</font> </p> <br/><p style="margin: 0pt 0pt 8pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;"><font style="font-size: 10pt; font-family: Arial, Helvetica;">The Adviser believes that the Fund's international diversification, which is building over time, can yield valuable benefits to Fund shareholders by providing exposure to more investment opportunities outside</font> the U.S. that meet the Adviser's investment criteria. The Fund will purchase foreign domiciled companies that meet the Adviser's usual investment criteria and where differences in accounting, disclosure, culture, management accessibility and trading do not put the Fund at a competitive disadvantage. Once the foreign portfolio is established, which may take time given the Fund's low turnover, the Fund will typically maintain an allocation to foreign domiciled companies of more than 50% of total assets. Additional exposure to foreign business activity is expected to come from purchases of U.S.-based companies with strong worldwide franchises.</font> </p> Updated Performance Information. <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">To obtain updated monthly performance information, please visit the Fund's website at <u>www.fpafunds.com</u> or call (800) 982-4372.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;"><b>Performance Information.</b></font> <font style="font-size:10pt; font-family: Arial, Helvetica;">The bar chart and Average Annual Total Returns table below provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 calendar years compare with those of a broad-based securities market index and an index of similar funds. The bar chart shows performance without a sales charge (load). If it did, returns would be lower than those shown. Performance in the Average Annual Total Returns table reflects the impact of the maximum sales charge of 5.25%. The chart and table reflect the reinvestment of dividends and other distributions. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small to mid-capitalization stock performance and is included as a broad-based comparison to the capitalization characteristics of the Fund's portfolio. The Lipper Mid-Cap Core Fund Average provides an additional comparison of how the Fund performed in relation to other mutual funds with similar objectives. Funds in this Average, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a 3-year weighted basis) below Lipper's US Dollar Equity large-cap floor. Index returns reflect the reinvestment of all dividends and/or other distributions.</font> </p> 0.4141 0.1589 0.1220 0.0476 0.0683 -0.3807 0.4579 0.2363 -0.0369 0.1597 ~ http://fpafunds.com/20130130/role/ScheduleAnnualTotalReturnsBarChart20004 column dei_LegalEntityAxis compact ck0000076210_S000010871Member row primary compact * ~ Highest 0.2219 2009-06-30 Lowest -0.2912 2008-12-31 <p style="margin:0pt 0pt 2pt 0pt;" align="left"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Fund's highest/lowest</font> <font style="font-size:10pt; font-family: Arial, Helvetica;"><i>quarterly</i></font> <font style="font-size:10pt; font-family: Arial, Helvetica;">results during this time period were:</font> </p> <br/><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="padding: 0pt .7pt 0pt 0pt; background-color: #cceeff;" colspan="3" align="left" valign="bottom" width="386"> <p style="margin: 0pt 0pt 0pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;"><strong>Highest</strong></font> </p> </td> <td style="background-color: #cceeff;" colspan="1"> &#160; </td> <td style="padding: 0pt .7pt 0pt 0pt; background-color: #cceeff;" colspan="7" align="center" valign="bottom" width="176"> <font style="font-size: 10pt; font-family: Arial, Helvetica;">22.19</font> <font style="font-size: 10pt; font-family: Arial, Helvetica;">%</font> </td> <td style="background-color: #cceeff;" colspan="1"> &#160; </td> <td style="padding: 0pt .7pt 0pt 0pt; background-color: #cceeff;" colspan="3" align="center" valign="bottom" width="168"> <p style="margin: 0pt 0pt 0pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;">(Quarter ended 6/30/09)</font> </p> </td> <td style="background-color: #cceeff;" colspan="1"> &#160; </td> </tr> <tr> <td style="padding: 0pt .7pt 8pt 0pt;" colspan="3" align="left" valign="bottom" width="386"> <p style="margin: 0pt 0pt 0pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;"><strong>Lowest</strong></font> </p> </td> <td colspan="1"> &#160; </td> <td style="padding: 0pt .7pt 8pt 0pt;" colspan="7" align="center" valign="bottom" width="176"> <font style="font-size: 10pt; font-family: Arial, Helvetica;">(29.12</font><font style="font-size: 10pt; font-family: Arial, Helvetica;">)%</font> </td> <td colspan="1"> &#160; </td> <td style="padding: 0pt .7pt 8pt 0pt;" colspan="3" align="center" valign="bottom" width="168"> <p style="margin: 0pt 0pt 0pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;">(Quarter ended 12/31/08)</font> </p> </td> <td colspan="1"> &#160; </td> </tr> </table> 0.0988 0.0336 0.0905 0.0865 0.0322 0.0811 0.0753 0.0283 0.0788 0.1788 0.0434 0.1049 0.1561 0.0224 0.0889 ~ http://fpafunds.com/20130130/role/ScheduleAverageAnnualReturnsTransposed20005 column dei_LegalEntityAxis compact ck0000076210_S000010871Member column rr_PerformanceMeasureAxis compact * row primary compact * ~ Performance in the Average Annual Total Returns table reflects the impact of the maximum sales charge of 5.25%. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. The bar chart and Average Annual Total Returns table below provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 calendar years compare with those of a broad-based securities market index and an index of similar funds. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small to mid-capitalization stock performance and is included as a broad-based comparison to the capitalization characteristics of the Fund's portfolio. The Lipper Mid-Cap Core Fund Average provides an additional comparison of how the Fund performed in relation to other mutual funds with similar objectives. Funds in this Average, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a 3-year weighted basis) below Lipper's US Dollar Equity large-cap floor. Index returns reflect the reinvestment of all dividends and/or other distributions. (reflects no deductions for fees, expenses or taxes) The bar chart shows performance without a sales charge (load). If it did, returns would be lower than those shown. (800) 982-4372 www.fpafunds.com Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Average Annual Total Returns (for the periods ended December 31, 2012) Investment Objective. <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Fund's primary investment objective is a high total investment return, including capital appreciation and income.</font> </p> Example <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font> </p> 616 809 1018 1619 ~ http://fpafunds.com/20130130/role/ScheduleExpenseExample20003 column dei_LegalEntityAxis compact ck0000076210_S000010871Member row primary compact * ~ Principal Investment Risks. <p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">As with all mutual funds, your investment in the Fund may be worth more or less at any time than the price that you originally paid for it. There is also a possibility that the Fund will not achieve its investment objective or goal. This could happen because its strategy failed to produce the intended results or because the Adviser did not implement its strategy properly. The Fund's shares are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, government authority or the FDIC.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;"><b>Risks Associated with Investing in Equities.</b></font> <font style="font-size:10pt; font-family: Arial, Helvetica;">As with all equity funds, the risks that could affect the value of the Fund's shares and the total return on your investment include the possibility that the equity securities held by the Fund will experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect the securities markets generally, such as adverse changes in economic conditions, the general outlook for corporate earnings, interest rates or investor sentiment. The financial problems in global economies over the past several years, including the European sovereign debt crisis, may continue to cause high volatility in global financial markets and individual securities. Equity securities may also lose value because of factors affecting an entire industry or sector, such as increases in production costs or factors directly related to a specific company, such as decisions made by its management. This risk is greater for small and medium-sized companies, which tend to be more vulnerable to adverse developments than larger companies.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;"><b>Risks Associated with Small and Medium-Sized Companies.</b></font> <font style="font-size:10pt; font-family: Arial, Helvetica;">The Fund's investment approach has resulted in an emphasis on medium and smaller sized companies. Investing in smaller companies generally involves greater risk than investing in larger companies, and securities of smaller companies are often more volatile and less liquid. In addition, these companies often have shorter operating histories and are more reliant on key products or personnel than larger companies.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;"><b>Risks Associated with Investing in Foreign Securities.</b></font> <font style="font-size:10pt; font-family: Arial, Helvetica;">When the Fund invests in foreign securities, it will be subject to risks not typically associated with domestic securities. The value of the Fund's foreign securities may be affected by social, political and economic developments and U.S. and foreign laws relating to foreign investment. Further, because the Fund may invest in securities denominated in foreign currencies, the Fund's securities may go down in value depending on foreign exchange rates. Other risks include trading, settlement, custodial, and other operational risks; withholding or other taxes; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign securities less liquid, more volatile and harder to value than U.S. securities.</font> </p> <br/><p style="margin: 0pt 0pt 8pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;"><strong>Risks Associated with Value Stocks.</strong></font> <font style="font-size: 10pt; font-family: Arial, Helvetica;">Value stocks, including those selected by the Adviser for the Fund, are subject to the risks that their intrinsic value may never be realized by the market and that their prices may go down. In addition, the market may favor certain stocks (value stocks vs. growth stocks) and <font style="font-size: 10pt; font-family: Arial, Helvetica;">the Fund may hold investments that are out of favor. The Fund's value discipline sometimes prevents or limits investments in stocks that are in its benchmark index.</font><br /> </font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">Although the Fund may not invest more than 5% of its total assets in the securities of any one issuer (except the U.S. Government) at the time of purchase, changes in market prices and the assets of the Fund may from time to time cause more than 5% of the Fund's total assets to be invested in the securities of a single company. Such relative concentration is likely to increase the volatility of the Fund's net asset value per share. If an adverse event depresses the value of a particular security, an investment in a security proves in retrospect to be inopportune because of other adverse developments or the vagaries of the markets, or company-specific events reduce the income or return generated from its securities, the Fund may be more susceptible to losses than a fund that invested in more companies.</font> </p> <br/><p style="margin:0pt 0pt 8pt 0pt;"> <font style="font-size:10pt; font-family: Arial, Helvetica;">Because of these and other risks, you could lose money by investing in the Fund.</font> </p> Because of these and other risks, you could lose money by investing in the Fund. The Fund's shares are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, government authority or the FDIC. Portfolio Turnover. <p style="margin: 8pt 0pt 8pt 0pt;"> <font style="font-size: 10pt; font-family: Arial, Helvetica;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance.&#160; <font style="font-size: 10pt; font-family: Arial, Helvetica;">During the most recent fiscal year, the Fund's portfolio turnover rate was 6% of the average value of its whole portfolio.</font><br/> </font> </p> 0.06 EX-101.SCH 3 ck0000076210-20130130.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 000001 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 020000 - Document - Risk/Return Summary {Unlabeled} - FPA Paramount Fund, Inc. link:presentationLink link:definitionLink link:calculationLink 020001 - Schedule - Shareholder Fees link:presentationLink link:definitionLink link:calculationLink 020002 - Schedule - Annual Fund Operating Expenses link:presentationLink link:definitionLink link:calculationLink 020003 - Schedule - Expense Example link:presentationLink link:definitionLink link:calculationLink 020004 - Schedule - Annual Total Returns [Bar Chart] link:presentationLink link:definitionLink link:calculationLink 020005 - Schedule - Average Annual Returns {Transposed} link:presentationLink link:definitionLink link:calculationLink 020006 - Disclosure - Risk/Return Detail Data {Elements} - FPA Paramount Fund, Inc. link:presentationLink link:definitionLink link:calculationLink EX-101.LAB 4 ck0000076210-20130130_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT EX-101.DEF 5 ck0000076210-20130130_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.PRE 6 ck0000076210-20130130_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT EX-101.CAL 7 ck0000076210-20130130_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT ZIP 8 0001104659-13-012153-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001104659-13-012153-xbrl.zip M4$L#!!0````(`$-?5$('VO2/OR(``+N_```9`!P`8VLP,#`P,#`L``00E#@``!#D!``#L75ESV[BR M?K]5]S_@>):*[U@+)>])5*4XRV1QG/$R,YE3IUP0"4D8SF^_W0V` MBTS)L6,YRR0U&\5#UG68L[G;<7:=+79RO,K'X(G+@>)SRX# M/U2/5TH3X>5FE(Q:G7:[VY*A2GGHBA4]FWG"T-YLZ9MVJ'O6QC];FQVGG3\PC/DP"SV2#I+OXG_V"5^& M9PM8Q]L#KHJE^@L&__D&1MN1F6JDTUBH*M^9:MD;^,Q.=:521>L=9VN1*/6( M?+T:`/D#=8"P8Y.D7NA)4B?S*W*9=(D+9V=GIT5W\Z&J;AQPZ[3^W']SY(Y% MP!LY!`AFC#U""KN*;AZ*(2.*NRB7QRM*!K&/$J=KXT0,'Z^4%=NP.FQ>*F^E MU=-@!YIN!"9SF3+I/5[QQ)!G?KIB;0'__TB$J4RGO?P"7)(>7AQ*,"WB1E06 M8V6T]_+U2J_@X%&K>*Q7HM\J)K"78I'(R*M,"9)(TJ=@E#TM]YU&%R@65TL< M$\_>E;'V6CYO,8N61,N(PLY;$HU4#M8^9-DMUW2:1BX::9.AKS1.SY7*F:^6>UNV#A_PBT]X>0L!WS2Z$. 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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Prospectus Date rr_ProspectusDate Jan. 30, 2013
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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading FPA Paramount Fund, Inc.
Objective [Heading] rr_ObjectiveHeading Investment Objective.
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock

The Fund's primary investment objective is a high total investment return, including capital appreciation and income.

Expense [Heading] rr_ExpenseHeading Fees and Expenses of the Fund.
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and certain family members invest, or agree to invest in the future, at least $50,000 in the FPA Funds. More information about these and other ways of reducing your sales charge is available in the prospectus section, "Reducing Your Sales Charge;" and in the Fund's Statement of Additional Information.

Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder Fees (fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund Operating Expenses (expenses that are deducted from Fund assets)
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio Turnover.
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance.  During the most recent fiscal year, the Fund's portfolio turnover rate was 6% of the average value of its whole portfolio.

Portfolio Turnover, Rate rr_PortfolioTurnoverRate 6.00%
Expense Breakpoint Discounts [Text] rr_ExpenseBreakpointDiscounts You may qualify for sales charge discounts if you and certain family members invest, or agree to invest in the future, at least $50,000 in the FPA Funds.
Expense Breakpoint, Minimum Investment Required [Amount] rr_ExpenseBreakpointMinimumInvestmentRequiredAmount $ 50,000
Expenses Explanation of Nonrecurring Account Fee [Text] rr_ExpensesExplanationOfNonrecurringAccountFee Redemptions by wire are subject to a $3.50 charge per wire. Your broker-dealer may charge you a fee for redemptions.
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Strategy [Heading] rr_StrategyHeading Principal Investment Strategies.
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock

The Adviser attempts to concentrate on ownership of high-quality businesses, particularly firms with histories of earning high returns on capital and with modest debt levels. These companies generally have leading market shares globally and strong managers who have demonstrable track records of wise reinvestment of the business's cash flows.


Although company quality is the principal investment test, the valuation of investments is also an important part of the stock selection process. The Adviser's primary measure of value is the price/earnings ratio. The Adviser seeks out companies that are undervalued relative to their long-term earnings power or to other companies of similar quality, but it will not overpay for even the best companies. It is expected that the Fund's portfolio will have better-than-average companies selling at valuations similar to or below the market.


Seeking to minimize risk, especially in treacherous economic or stock market environments, is an important element of the Adviser's investment process. To do this, the Adviser seeks out companies with relatively unleveraged balance sheets, operating in more predictable, less volatile sectors of the economy, with business models that it can understand. The companies' leading market shares and high operating margins may minimize the volatility of their earnings. A diversified portfolio and modest relative valuations, typically lower than the global market, also contribute to reducing risk.


The Adviser believes that the most important contributor to the long-term investment performance of the companies held by the Fund is growth in earnings, not changes in valuation (measured by the price/earnings ratio). Because growth is driven by earning high returns on capital and successful reinvestment of cash flow, it is necessary to hold most of the portfolio securities in the Fund's portfolio for an extended period in order for this process to come to fruition. Accordingly, portfolio turnover may be very low.


Although there can be a conflict between a very long investment time horizon and a strong value discipline in managing the portfolio, the Adviser is willing to hold portfolio securities at valuations higher than it would require for an initial purchase. If a position becomes significantly overvalued, the Adviser would not hesitate to trim or eliminate the security from the portfolio. The Adviser's aim is to reduce portfolio turnover with its concomitant costs and to focus attention on the long-term business fundamentals of the portfolio companies.


The Fund invests primarily in the common stocks of international and U.S. companies in a variety of industries and market segments. The Adviser'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's portfolio will have holdings in many industries. The portfolio may be moderately concentrated, with 30-40 positions. Most of these companies will be of small-to-medium market capitalization (up to $10 billion), though ownership of larger companies is permitted. Cash is the residual of the investment process and will normally be a small percent of Fund assets.


The Adviser believes that the Fund's international diversification, which is building over time, can yield valuable benefits to Fund shareholders by providing exposure to more investment opportunities outside the U.S. that meet the Adviser's investment criteria. The Fund will purchase foreign domiciled companies that meet the Adviser's usual investment criteria and where differences in accounting, disclosure, culture, management accessibility and trading do not put the Fund at a competitive disadvantage. Once the foreign portfolio is established, which may take time given the Fund's low turnover, the Fund will typically maintain an allocation to foreign domiciled companies of more than 50% of total assets. Additional exposure to foreign business activity is expected to come from purchases of U.S.-based companies with strong worldwide franchises.

Risk [Heading] rr_RiskHeading Principal Investment Risks.
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock

As with all mutual funds, your investment in the Fund may be worth more or less at any time than the price that you originally paid for it. There is also a possibility that the Fund will not achieve its investment objective or goal. This could happen because its strategy failed to produce the intended results or because the Adviser did not implement its strategy properly. The Fund's shares are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, government authority or the FDIC.


Risks Associated with Investing in Equities. As with all equity funds, the risks that could affect the value of the Fund's shares and the total return on your investment include the possibility that the equity securities held by the Fund will experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect the securities markets generally, such as adverse changes in economic conditions, the general outlook for corporate earnings, interest rates or investor sentiment. The financial problems in global economies over the past several years, including the European sovereign debt crisis, may continue to cause high volatility in global financial markets and individual securities. Equity securities may also lose value because of factors affecting an entire industry or sector, such as increases in production costs or factors directly related to a specific company, such as decisions made by its management. This risk is greater for small and medium-sized companies, which tend to be more vulnerable to adverse developments than larger companies.


Risks Associated with Small and Medium-Sized Companies. The Fund's investment approach has resulted in an emphasis on medium and smaller sized companies. Investing in smaller companies generally involves greater risk than investing in larger companies, and securities of smaller companies are often more volatile and less liquid. In addition, these companies often have shorter operating histories and are more reliant on key products or personnel than larger companies.


Risks Associated with Investing in Foreign Securities. When the Fund invests in foreign securities, it will be subject to risks not typically associated with domestic securities. The value of the Fund's foreign securities may be affected by social, political and economic developments and U.S. and foreign laws relating to foreign investment. Further, because the Fund may invest in securities denominated in foreign currencies, the Fund's securities may go down in value depending on foreign exchange rates. Other risks include trading, settlement, custodial, and other operational risks; withholding or other taxes; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign securities less liquid, more volatile and harder to value than U.S. securities.


Risks Associated with Value Stocks. Value stocks, including those selected by the Adviser for the Fund, are subject to the risks that their intrinsic value may never be realized by the market and that their prices may go down. In addition, the market may favor certain stocks (value stocks vs. growth stocks) and the Fund may hold investments that are out of favor. The Fund's value discipline sometimes prevents or limits investments in stocks that are in its benchmark index.


Although the Fund may not invest more than 5% of its total assets in the securities of any one issuer (except the U.S. Government) at the time of purchase, changes in market prices and the assets of the Fund may from time to time cause more than 5% of the Fund's total assets to be invested in the securities of a single company. Such relative concentration is likely to increase the volatility of the Fund's net asset value per share. If an adverse event depresses the value of a particular security, an investment in a security proves in retrospect to be inopportune because of other adverse developments or the vagaries of the markets, or company-specific events reduce the income or return generated from its securities, the Fund may be more susceptible to losses than a fund that invested in more companies.


Because of these and other risks, you could lose money by investing in the Fund.

Risk Lose Money [Text] rr_RiskLoseMoney Because of these and other risks, you could lose money by investing in the Fund.
Risk Not Insured Depository Institution [Text] rr_RiskNotInsuredDepositoryInstitution The Fund's shares are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, government authority or the FDIC.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Updated Performance Information.
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock

To obtain updated monthly performance information, please visit the Fund's website at www.fpafunds.com or call (800) 982-4372.


Performance Information. The bar chart and Average Annual Total Returns table below provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 calendar years compare with those of a broad-based securities market index and an index of similar funds. The bar chart shows performance without a sales charge (load). If it did, returns would be lower than those shown. Performance in the Average Annual Total Returns table reflects the impact of the maximum sales charge of 5.25%. The chart and table reflect the reinvestment of dividends and other distributions. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.


The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small to mid-capitalization stock performance and is included as a broad-based comparison to the capitalization characteristics of the Fund's portfolio. The Lipper Mid-Cap Core Fund Average provides an additional comparison of how the Fund performed in relation to other mutual funds with similar objectives. Funds in this Average, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a 3-year weighted basis) below Lipper's US Dollar Equity large-cap floor. Index returns reflect the reinvestment of all dividends and/or other distributions.

Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and Average Annual Total Returns table below provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 calendar years compare with those of a broad-based securities market index and an index of similar funds.
Performance Additional Market Index [Text] rr_PerformanceAdditionalMarketIndex The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small to mid-capitalization stock performance and is included as a broad-based comparison to the capitalization characteristics of the Fund's portfolio. The Lipper Mid-Cap Core Fund Average provides an additional comparison of how the Fund performed in relation to other mutual funds with similar objectives. Funds in this Average, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a 3-year weighted basis) below Lipper's US Dollar Equity large-cap floor. Index returns reflect the reinvestment of all dividends and/or other distributions.
Performance Availability Phone [Text] rr_PerformanceAvailabilityPhone (800) 982-4372
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.fpafunds.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads The bar chart shows performance without a sales charge (load). If it did, returns would be lower than those shown.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock

The Fund's highest/lowest quarterly results during this time period were:


Highest

  22.19 %  

(Quarter ended 6/30/09)

 

Lowest

  (29.12)%  

(Quarter ended 12/31/08)

 
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 22.19%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (29.12%)
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Performance in the Average Annual Total Returns table reflects the impact of the maximum sales charge of 5.25%.
Index No Deduction for Fees, Expenses, Taxes [Text] rr_IndexNoDeductionForFeesExpensesTaxes (reflects no deductions for fees, expenses or taxes)
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
Caption rr_AverageAnnualReturnCaption Average Annual Total Returns (for the periods ended December 31, 2012)
Russell 2500 (reflects no deductions for fees, expenses or taxes)
 
Risk/Return: rr_RiskReturnAbstract  
Average Annual Returns, 1 Year rr_AverageAnnualReturnYear01 17.88%
Average Annual Returns, 5 Years rr_AverageAnnualReturnYear05 4.34%
Average Annual Returns, 10 Years rr_AverageAnnualReturnYear10 10.49%
Lipper Mid-Cap Core Fund Average (reflects no deductions for sales charges or taxes)
 
Risk/Return: rr_RiskReturnAbstract  
Average Annual Returns, 1 Year rr_AverageAnnualReturnYear01 15.61%
Average Annual Returns, 5 Years rr_AverageAnnualReturnYear05 2.24%
Average Annual Returns, 10 Years rr_AverageAnnualReturnYear10 8.89%
FPA Paramount Fund, Inc.
 
Risk/Return: rr_RiskReturnAbstract  
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 5.25%
Maximum Deferred Sales Charge (Load) (as a percentage of original sales price or redemption proceeds, as applicable) rr_MaximumDeferredSalesChargeOverOther 2.00%
Redemption Fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption none [1]
Exchange Fee rr_ExchangeFeeOverRedemption none
Management Fees rr_ManagementFeesOverAssets 0.65%
Distribution (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets none
Component1 Other Expenses rr_Component1OtherExpensesOverAssets 0.19%
Financial Services rr_Component2OtherExpensesOverAssets 0.10%
Other Expenses rr_OtherExpensesOverAssets 0.29%
Total Annual Fund Operating Expenses rr_ExpensesOverAssets 0.94%
Expense Example, with Redemption, 1 Year rr_ExpenseExampleYear01 616
Expense Example, with Redemption, 3 Years rr_ExpenseExampleYear03 809
Expense Example, with Redemption, 5 Years rr_ExpenseExampleYear05 1,018
Expense Example, with Redemption, 10 Years rr_ExpenseExampleYear10 $ 1,619
Annual Return 2003 rr_AnnualReturn2003 41.41%
Annual Return 2004 rr_AnnualReturn2004 15.89%
Annual Return 2005 rr_AnnualReturn2005 12.20%
Annual Return 2006 rr_AnnualReturn2006 4.76%
Annual Return 2007 rr_AnnualReturn2007 6.83%
Annual Return 2008 rr_AnnualReturn2008 (38.07%)
Annual Return 2009 rr_AnnualReturn2009 45.79%
Annual Return 2010 rr_AnnualReturn2010 23.63%
Annual Return 2011 rr_AnnualReturn2011 (3.69%)
Annual Return 2012 rr_AnnualReturn2012 15.97%
Average Annual Returns, 1 Year rr_AverageAnnualReturnYear01 9.88%
Average Annual Returns, 5 Years rr_AverageAnnualReturnYear05 3.36%
Average Annual Returns, 10 Years rr_AverageAnnualReturnYear10 9.05%
FPA Paramount Fund, Inc. | After Taxes on Distributions
 
Risk/Return: rr_RiskReturnAbstract  
Average Annual Returns, 1 Year rr_AverageAnnualReturnYear01 8.65% [2]
Average Annual Returns, 5 Years rr_AverageAnnualReturnYear05 3.22% [2]
Average Annual Returns, 10 Years rr_AverageAnnualReturnYear10 8.11% [2]
FPA Paramount Fund, Inc. | After Taxes on Distributions and Sales
 
Risk/Return: rr_RiskReturnAbstract  
Average Annual Returns, 1 Year rr_AverageAnnualReturnYear01 7.53% [2]
Average Annual Returns, 5 Years rr_AverageAnnualReturnYear05 2.83% [2]
Average Annual Returns, 10 Years rr_AverageAnnualReturnYear10 7.88% [2]
[1] Redemptions by wire are subject to a $3.50 charge per wire. Your broker-dealer may charge you a fee for redemptions.
[2] After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

XML 13 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
FPA Paramount Fund, Inc. | FPA Paramount Fund, Inc.
FPA Paramount Fund, Inc.
Investment Objective.

The Fund's primary investment objective is a high total investment return, including capital appreciation and income.

Fees and Expenses of the Fund.

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and certain family members invest, or agree to invest in the future, at least $50,000 in the FPA Funds. More information about these and other ways of reducing your sales charge is available in the prospectus section, "Reducing Your Sales Charge;" and in the Fund's Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)
Shareholder Fees
FPA Paramount Fund, Inc.
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.25%
Maximum Deferred Sales Charge (Load) (as a percentage of original sales price or redemption proceeds, as applicable) 2.00%
Redemption Fee (as a percentage of amount redeemed) [1] none
Exchange Fee none
[1] Redemptions by wire are subject to a $3.50 charge per wire. Your broker-dealer may charge you a fee for redemptions.
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)
Annual Fund Operating Expenses
FPA Paramount Fund, Inc.
Management Fees 0.65%
Distribution (12b-1) Fees none
Other Expenses 0.29%
Other Expenses 0.19%
Financial Services 0.10%
Total Annual Fund Operating Expenses 0.94%
Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Expense Example (USD $)
FPA Paramount Fund, Inc.
One year 616
Three years 809
Five years 1,018
Ten years 1,619
Portfolio Turnover.

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance.  During the most recent fiscal year, the Fund's portfolio turnover rate was 6% of the average value of its whole portfolio.

Principal Investment Strategies.

The Adviser attempts to concentrate on ownership of high-quality businesses, particularly firms with histories of earning high returns on capital and with modest debt levels. These companies generally have leading market shares globally and strong managers who have demonstrable track records of wise reinvestment of the business's cash flows.


Although company quality is the principal investment test, the valuation of investments is also an important part of the stock selection process. The Adviser's primary measure of value is the price/earnings ratio. The Adviser seeks out companies that are undervalued relative to their long-term earnings power or to other companies of similar quality, but it will not overpay for even the best companies. It is expected that the Fund's portfolio will have better-than-average companies selling at valuations similar to or below the market.


Seeking to minimize risk, especially in treacherous economic or stock market environments, is an important element of the Adviser's investment process. To do this, the Adviser seeks out companies with relatively unleveraged balance sheets, operating in more predictable, less volatile sectors of the economy, with business models that it can understand. The companies' leading market shares and high operating margins may minimize the volatility of their earnings. A diversified portfolio and modest relative valuations, typically lower than the global market, also contribute to reducing risk.


The Adviser believes that the most important contributor to the long-term investment performance of the companies held by the Fund is growth in earnings, not changes in valuation (measured by the price/earnings ratio). Because growth is driven by earning high returns on capital and successful reinvestment of cash flow, it is necessary to hold most of the portfolio securities in the Fund's portfolio for an extended period in order for this process to come to fruition. Accordingly, portfolio turnover may be very low.


Although there can be a conflict between a very long investment time horizon and a strong value discipline in managing the portfolio, the Adviser is willing to hold portfolio securities at valuations higher than it would require for an initial purchase. If a position becomes significantly overvalued, the Adviser would not hesitate to trim or eliminate the security from the portfolio. The Adviser's aim is to reduce portfolio turnover with its concomitant costs and to focus attention on the long-term business fundamentals of the portfolio companies.


The Fund invests primarily in the common stocks of international and U.S. companies in a variety of industries and market segments. The Adviser'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's portfolio will have holdings in many industries. The portfolio may be moderately concentrated, with 30-40 positions. Most of these companies will be of small-to-medium market capitalization (up to $10 billion), though ownership of larger companies is permitted. Cash is the residual of the investment process and will normally be a small percent of Fund assets.


The Adviser believes that the Fund's international diversification, which is building over time, can yield valuable benefits to Fund shareholders by providing exposure to more investment opportunities outside the U.S. that meet the Adviser's investment criteria. The Fund will purchase foreign domiciled companies that meet the Adviser's usual investment criteria and where differences in accounting, disclosure, culture, management accessibility and trading do not put the Fund at a competitive disadvantage. Once the foreign portfolio is established, which may take time given the Fund's low turnover, the Fund will typically maintain an allocation to foreign domiciled companies of more than 50% of total assets. Additional exposure to foreign business activity is expected to come from purchases of U.S.-based companies with strong worldwide franchises.

Principal Investment Risks.

As with all mutual funds, your investment in the Fund may be worth more or less at any time than the price that you originally paid for it. There is also a possibility that the Fund will not achieve its investment objective or goal. This could happen because its strategy failed to produce the intended results or because the Adviser did not implement its strategy properly. The Fund's shares are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, government authority or the FDIC.


Risks Associated with Investing in Equities. As with all equity funds, the risks that could affect the value of the Fund's shares and the total return on your investment include the possibility that the equity securities held by the Fund will experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect the securities markets generally, such as adverse changes in economic conditions, the general outlook for corporate earnings, interest rates or investor sentiment. The financial problems in global economies over the past several years, including the European sovereign debt crisis, may continue to cause high volatility in global financial markets and individual securities. Equity securities may also lose value because of factors affecting an entire industry or sector, such as increases in production costs or factors directly related to a specific company, such as decisions made by its management. This risk is greater for small and medium-sized companies, which tend to be more vulnerable to adverse developments than larger companies.


Risks Associated with Small and Medium-Sized Companies. The Fund's investment approach has resulted in an emphasis on medium and smaller sized companies. Investing in smaller companies generally involves greater risk than investing in larger companies, and securities of smaller companies are often more volatile and less liquid. In addition, these companies often have shorter operating histories and are more reliant on key products or personnel than larger companies.


Risks Associated with Investing in Foreign Securities. When the Fund invests in foreign securities, it will be subject to risks not typically associated with domestic securities. The value of the Fund's foreign securities may be affected by social, political and economic developments and U.S. and foreign laws relating to foreign investment. Further, because the Fund may invest in securities denominated in foreign currencies, the Fund's securities may go down in value depending on foreign exchange rates. Other risks include trading, settlement, custodial, and other operational risks; withholding or other taxes; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign securities less liquid, more volatile and harder to value than U.S. securities.


Risks Associated with Value Stocks. Value stocks, including those selected by the Adviser for the Fund, are subject to the risks that their intrinsic value may never be realized by the market and that their prices may go down. In addition, the market may favor certain stocks (value stocks vs. growth stocks) and the Fund may hold investments that are out of favor. The Fund's value discipline sometimes prevents or limits investments in stocks that are in its benchmark index.


Although the Fund may not invest more than 5% of its total assets in the securities of any one issuer (except the U.S. Government) at the time of purchase, changes in market prices and the assets of the Fund may from time to time cause more than 5% of the Fund's total assets to be invested in the securities of a single company. Such relative concentration is likely to increase the volatility of the Fund's net asset value per share. If an adverse event depresses the value of a particular security, an investment in a security proves in retrospect to be inopportune because of other adverse developments or the vagaries of the markets, or company-specific events reduce the income or return generated from its securities, the Fund may be more susceptible to losses than a fund that invested in more companies.


Because of these and other risks, you could lose money by investing in the Fund.

Updated Performance Information.

To obtain updated monthly performance information, please visit the Fund's website at www.fpafunds.com or call (800) 982-4372.


Performance Information. The bar chart and Average Annual Total Returns table below provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 calendar years compare with those of a broad-based securities market index and an index of similar funds. The bar chart shows performance without a sales charge (load). If it did, returns would be lower than those shown. Performance in the Average Annual Total Returns table reflects the impact of the maximum sales charge of 5.25%. The chart and table reflect the reinvestment of dividends and other distributions. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.


The Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small to mid-capitalization stock performance and is included as a broad-based comparison to the capitalization characteristics of the Fund's portfolio. The Lipper Mid-Cap Core Fund Average provides an additional comparison of how the Fund performed in relation to other mutual funds with similar objectives. Funds in this Average, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a 3-year weighted basis) below Lipper's US Dollar Equity large-cap floor. Index returns reflect the reinvestment of all dividends and/or other distributions.

Bar Chart

The Fund's highest/lowest quarterly results during this time period were:


Highest

  22.19 %  

(Quarter ended 6/30/09)

 

Lowest

  (29.12)%  

(Quarter ended 12/31/08)

 
Average Annual Total Returns (for the periods ended December 31, 2012)
Average Annual Returns
Average Annual Returns, 1 Year
Average Annual Returns, 5 Years
Average Annual Returns, 10 Years
FPA Paramount Fund, Inc.
9.88% 3.36% 9.05%
FPA Paramount Fund, Inc. After Taxes on Distributions
[1] 8.65% 3.22% 8.11%
FPA Paramount Fund, Inc. After Taxes on Distributions and Sales
[1] 7.53% 2.83% 7.88%
FPA Paramount Fund, Inc. Russell 2500 (reflects no deductions for fees, expenses or taxes)
17.88% 4.34% 10.49%
FPA Paramount Fund, Inc. Lipper Mid-Cap Core Fund Average (reflects no deductions for sales charges or taxes)
15.61% 2.24% 8.89%
[1] After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
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Document and Entity Information
0 Months Ended
Sep. 30, 2012
Risk/Return:  
Document Type 485BPOS
Document Period End Date Sep. 30, 2012
Registrant Name FPA PARAMOUNT FUND INC
Central Index Key 0000076210
Amendment Flag false
Document Creation Date Jan. 30, 2013
Document Effective Date Jan. 30, 2013
Prospectus Date Jan. 30, 2013
FPA Paramount Fund, Inc. | FPA Paramount Fund, Inc. | FPA Paramount Fund, Inc.
 
Risk/Return:  
Trading Symbol fprax
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