FPA Announces Update to Source Capital Share Buyback Program

LOS ANGELES–(BUSINESS WIRE)–Source Capital, Inc. (“SOR” or the “Fund”) has announced an amendment to its share buyback program (the “Program”) that will allow portfolio managers, board members and the managers of the Fund to increase their personal investments in Action SOR. Effective immediately, the Fund will be required to halt share redemptions each month on the first two days that the New York Stock Exchange is open, so that persons affiliated with the Fund can trade in its shares (the “Affiliate Buyer Window”). The Affiliate Buyer Window will be waived for any month in which the dividend payable in that month has not been declared by the Board and announced at least five business days prior to such Affiliate Buyer Window, or otherwise determined by the advice.

About Source Capital, Inc.

Source Capital, Inc. is a closed-end investment firm managed by First Pacific Advisors, LP. Its shares are listed on the New York Stock Exchange under the symbol “SOR”. The Fund’s investment objective is to seek maximum total shareholder return from capital appreciation and investment income to the extent consistent with the protection of invested capital. The Fund may invest in longer duration assets, such as dividend paying stocks, and illiquid assets, such as private loans in pursuit of its investment objective and is therefore only suitable for investors with a long-term investment (greater than or equal to ~5 years).

You may obtain additional information by visiting the website at www.fpa.com, by email at [email protected], toll-free by calling 1-800-982-4372 or by contacting the Fund in writing .

Important Disclosures

You should carefully consider the Fund’s investment objectives, risks and charges and expenses before investing.

As with any stock, the price of the common shares of the Fund will fluctuate with market conditions and other factors. Shares of closed-end investment companies frequently trade at a price below (a “discount”) or above (a “premium”) their net asset value. If the shares of the Fund are trading at a premium to net asset value, there can be no assurance that such premium will continue for any period and not decline, or that the shares will not trade at a discount to net asset value thereafter.

The Fund’s daily closing prices on the New York Stock Exchange, net asset values ​​per share, and other information, including portfolio statistics and updated performance, are available by visiting the website at address https://fpa.com/funds/overview/sourcecapital, by email at [email protected], toll free by calling 1-800-279-1241 (option 1), or by contacting the Fund in writing.

This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of securities in any state in which such offer, solicitation or sale would be unlawful under the laws of the securities of such a State.

Investments, including investments in closed-end funds, involve risk and investors may lose principal value. Financial markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. It is important to remember that there are inherent risks with any investment and there is no guarantee that any investment or asset class will provide positive performance over time. Value style investing introduces the risk that holdings or securities will never reach our estimate of intrinsic value because the market does not recognize what the portfolio management team considers to be true market value or because the portfolio management team misjudged these stocks. In addition, value style investments may lose popularity and underperform growth investments or other investment styles in given periods. Non-US investing presents additional risks, such as the potential for adverse political, monetary, economic, social or regulatory developments in a country, including lack of liquidity, excessive taxation and differing legal and accounting standards. Non-US securities, including American Certificates of Deposit (ADR) and other certificates of deposit, are also subject to interest rate and currency risk.

Fixed income instruments are subject to interest rate, inflation and credit risk. These investments may be secured, partially secured or unsecured and may be unrated, and whether or not rated, may have speculative characteristics. The market price of the Fund’s fixed income investments will change with changes in interest rates and other factors. Generally, when interest rates rise, the value of fixed income instruments falls, and vice versa. Certain fixed income instruments are subject to prepayment and/or default risk.

Private placement securities are securities that are not registered under federal securities laws and generally may only be sold to certain qualified investors. Private placements may be illiquid, and therefore more difficult to sell, as there may be relatively few potential buyers for such investments, and the sale of such investments may also be restricted under securities laws.

The Fund may use leverage. Although the use of leverage may help to increase the potential distribution and return of the Fund, it also increases the volatility of the net asset value (NAV) of the Fund and potentially increases the volatility of its distributions and its Classes. There are costs associated with using leverage, including ongoing dividends and/or interest charges. There may also be expenses for issuing or administering the leverage. Leverage changes the capital structure of the Fund through the issuance of preferred stock and/or debt securities, both of which are senior to common stock in priority to debt. If short-term interest rates rise, the cost of leverage will increase and likely reduce the returns to common shareholders of the Fund.

This material has been distributed for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

Sallie R. Loera