Supplement to Prospectus dated 07/01/2019

FIRST EAGLE FUNDS

First Eagle Fund of America

1345 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10105
(800) 334-2143

SUPPLEMENT DATED JULY 1, 2019
TO PROSPECTUS DATED MARCH 1, 2019,
AS SUPPLEMENTED

This Supplement is intended to highlight certain changes to the Prospectus dated March 1, 2019, as supplemented. Please review these matters carefully.

Effective July 1, 2019 through February 28, 2021, the Adviser has contractually agreed to waive its management fee with respect to the first $2.25 billion of the First Eagle Fund of America’s (the “Fund”) average daily net assets by 0.05%, which has the effect of reducing the annual management fee with respect to the first $2.25 billion of the Fund’s average daily net assets from 0.90% to 0.85%. The management fee breakpoints with respect to the Fund’s average daily net assets in excess of $2.25 billion up to $5 billion and in excess of $5 billion will remain unchanged, and are 0.85% and 0.80%, respectively.

*  *  *  *  *

The information in this Supplement modifies the First Eagle Funds’ Prospectus dated March 1, 2019, as supplemented. In particular, and without limitation, the information contained in this Supplement modifies (and if inconsistent, replaces) information contained in those sections of the Prospectus entitled “Summary Information about the First Eagle Fund of America—Fees and Expenses of the Fund of America” and “Fund Management—The Adviser.” For example, the footnote to the Management Fees line item in the Fund’s fee and expense table appearing on page 55 and the footnote to the Management Fee table related to the Fund appearing on page 76 is replaced with: “0.90% (waived to 0.85%) of the first $2.25


 

billion of the Fund’s average daily net assets, 0.85% of the next $2.75 billion of average daily net assets, and 0.80% of average daily net assets in excess of $5 billion. The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.05% of the first $2.25 billion of the Fund’s average daily net assets for the period through February 28, 2021.”

2


Supplement to Prospectus dated 05/09/2019

FIRST EAGLE FUNDS

First Eagle Global Income Builder Fund
First Eagle High Yield Fund

1345 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10105
(800) 334-2143

SUPPLEMENT DATED MAY 9, 2019
TO PROSPECTUS DATED MARCH 1, 2019

This Supplement is intended to highlight certain changes to the Prospectus dated March 1, 2019, as may be amended or supplemented. Please review these matters carefully.

Addition of a Portfolio Manager for the First Eagle Global Income Builder Fund

Effective March 31, 2019, Julien Albertini is a Portfolio Manager of the Global Income Builder Fund. Mr. Albertini joins Kimball Brooker, Jr., Edward Meigs and Sean Slein as the Portfolio Managers. Prior to March 31, 2019, Mr. Albertini was the Fund’s Associate Portfolio Manager.

To reflect Mr. Albertini’s new role, the following replaces the information appearing under the heading “Our Management Team” on page 44 of the Prospectus:

First Eagle Investment Management, LLC serves as the Adviser to the Global Income Builder Fund.

Kimball Brooker, Jr., Edward Meigs, Sean Slein and Julien Albertini are the Portfolio Managers for the Fund. Messrs. Meigs and Slein have been Portfolio Managers since the Fund’s inception on May 1, 2012, with Mr. Brooker joining as a Portfolio Manager in July 2016. Mr. Albertini joined as a Portfolio Manager in March 2019.

*  *  *  *  *


 

Reduction of Sales Charges for First Eagle Global Income Builder Fund and First Eagle High Yield Fund Class A Shares

Effective July 8, 2019, each of the First Eagle Global Income Builder Fund and First Eagle High Yield Fund is eliminating its sales charges for purchases of Class A shares of $250,000 or more.

 

 

With respect to the Global Income Builder Fund, the 2.50% sale charge for purchase amounts of $250,000-$499,999 and 1.50% sales charge for purchase amounts of $500,000-$999,999 will be eliminated. There will be no sales charge for purchases of $250,000 of more.

 

 

With respect to High Yield Fund, the 2.50% sales charge for purchase amounts of $250,000-$499,999 and 2.00% sales charge for purchase amounts of $500,000-$999,999 will be eliminated. There will be no sales charge for purchases of $250,000 of more.

 

 

No changes are being made to the sales charge percentages for purchase of Class A shares below $250,000.

 

 

No changes are being made to the sales charge percentages at any level for purchase of Class A shares for other First Eagle Funds.

To reflect these sales charge reductions, various changes are being made to the Prospectus, as follows (all effective July 8, 2019):

The following replaces the information appearing in the first footnote to the Fees and Expenses Tables under each of the headings “Fees and Expenses of the Global Income Builder Fund” and “Fees and Expenses of the High Yield Fund” on pages 36 and 46 of the Prospectus, respectively:

* A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $250,000 or more without an initial sales charge.

2


 

The following replaces the introductory paragraph and the two charts appearing under the heading “Public Offering Price of Class A Shares” on page 85 of the Prospectus:

The public offering price of Class A shares equals the net asset value per share plus a sales charge. The Class A sales charges* for each Fund, except the Global Income Builder Fund and the High Yield Fund, are as follows:

 

 

 

 

 

 

 

Class A Shares Dollars Invested

 

Sales Charge as
a Percentage of

 

Dealer Allowance
As a Percentage
of Offering Price

 

Offering
Price

 

Net Amount
Invested

 

Less than $25,000

 

 

 

5.00

%

 

 

 

 

5.26

%

 

 

 

 

4.50

%

 

 

$25,000 but less than $50,000

 

 

 

4.50

 

 

 

 

4.71

 

 

 

 

4.25

 

 

$50,000 but less than $100,000

 

 

 

4.00

 

 

 

 

4.17

 

 

 

 

3.75

 

 

$100,000 but less than $250,000

 

 

 

3.25

 

 

 

 

3.36

 

 

 

 

3.00

 

 

$250,000 but less than $500,000

 

 

 

2.50

 

 

 

 

2.56

 

 

 

 

2.25

 

 

$500,000 but less than $1,000,000

 

 

 

1.50

 

 

 

 

1.52

 

 

 

 

1.25

 

 

$1,000,000 and over**

 

 

 

0.00

 

 

 

 

0.00

 

 

 

 

0.00

 

 

The Class A sales charges* for the Global Income Builder Fund are as follows:

 

 

 

 

 

 

 

Class A Shares Dollars Invested

 

Sales Charge as a
Percentage of

 

Dealer Allowance
As a Percentage
of Offering Price

 

Offering
Price

 

Net Amount
Invested

 

Less than $25,000

 

 

 

5.00

%

 

 

 

 

5.26

%

 

 

 

 

4.50

%

 

 

$25,000 but less than $50,000

 

 

 

4.50

 

 

 

 

4.71

 

 

 

 

4.25

 

 

$50,000 but less than $100,000

 

 

 

4.00

 

 

 

 

4.17

 

 

 

 

3.75

 

 

$100,000 but less than $250,000

 

 

 

3.25

 

 

 

 

3.36

 

 

 

 

3.00

 

 

$250,000 and over**

 

 

 

0.00

 

 

 

 

0.00

 

 

 

 

0.00

 

 

The Class A sales charges* for the High Yield Fund are as follows:

 

 

 

 

 

 

 

Class A Shares Dollars Invested

 

Sales Charge as a
Percentage of

 

Dealer Allowance
As a Percentage of
Offering Price

 

Offering
Price

 

Net Amount
Invested

 

Less than $100,000

 

 

 

4.50

%

 

 

 

 

4.71

%

 

 

 

 

4.00

%

 

 

$100,000 but less than $250,000

 

 

 

3.50

 

 

 

 

3.36

 

 

 

 

3.00

 

 

$250,000 and over**

 

 

 

0.00

 

 

 

 

0.00

 

 

 

 

0.00

 

 

3


 

The following replaces the first two paragraphs appearing under the heading “About Your Investment—Class A Contingent Deferred Sales Charge” on page 86 of the Prospectus:

There is no initial sales charge on purchases of Class A shares of one or more of the Global Fund, Overseas Fund, U.S. Value Fund, Gold Fund and Fund of America aggregating $1 million or more. There is no initial sales charge on purchases of Class A shares of one or more of the Global Income Builder Fund and High Yield Fund aggregating $250,000 or more. The Distributor may pay dealers of record “finder’s fee” commissions of up to 1.00% of purchases of Class A shares not previously subject to a front-end sales charge or dealer commission paid by the investor.***

These finder’s fee commissions will be paid with respect to (i) purchases aggregating (on a single trade date) $1 million or more ($250,000 or more for the Global Income Builder Fund and High Yield Fund) by any “person,” which term includes any account having the same mailing address or tax identification number; (ii) accounts with completed letters of intention of $1 million or more ($250,000 or more for the Global Income Builder Fund and High Yield Fund); and (iii) certain group retirement plans investing through an omnibus account making any single purchase of Class A shares of $1 million or more ($250,000 or more for the Global Income Builder Fund and High Yield Fund). Subsequent purchases will need to aggregate $1 million or more ($250,000 or more for the Global Income Builder Fund and High Yield Fund) to be eligible for this commission (and appropriate documentation will be required to verify additional aggregations).

*  *  *  *

The information in this Supplement modifies the First Eagle Funds’ Prospectus dated March 1, 2019. Except as noted above, no other provisions of the Prospectus are modified by this Supplement.

4

 

 

 

Prospectus

 

March 1, 2019 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

First Eagle Global Fund

     

First Eagle Global Income Builder Fund

Class A

 

SGENX

     

Class A

 

FEBAX

Class C

 

FESGX

     

Class C

 

FEBCX

Class I

 

SGIIX

     

Class I

 

FEBIX

Class R3

 

EARGX

     

Class R3

 

FBRRX

Class R4

 

EAGRX

     

Class R4

 

FIBRX

Class R5

 

FRGLX

     

Class R5

 

EABRX

Class R6

 

FEGRX

     

Class R6

 

FEBRX

 

 

 

   

 

 

 

 

First Eagle Overseas Fund

     

First Eagle High Yield Fund

Class A

 

SGOVX

     

Class A

 

FEHAX

Class C

 

FESOX

     

Class C

 

FEHCX

Class I

 

SGOIX

     

Class I

 

FEHIX

Class R3

 

EAROX

     

Class R3

 

EARHX

Class R4

 

FIORX

     

Class R4

 

FIHRX

Class R5

 

FEROX

     

Class R5

 

FERHX

Class R6

 

FEORX

     

Class R6

 

FEHRX

 

 

 

   

 

 

 

 

First Eagle U.S. Value Fund

     

First Eagle Fund of America

Class A

 

FEVAX

     

Class A

 

FEFAX

Class C

 

FEVCX

     

Class C

 

FEAMX

Class I

 

FEVIX

     

Class I

 

FEAIX

Class R3

 

EARVX

     

Class Y

 

FEAFX

Class R4

 

FIVRX

     

Class R3

 

EARFX

Class R5

 

FERVX

     

Class R4

 

EAFRX

Class R6

 

FEVRX

     

Class R5

 

FERFX

 

 

 

     

Class R6

 

FEFRX

First Eagle Gold Fund

   

 

 

 

 

Class A

 

SGGDX

   

 

 

 

 

Class C

 

FEGOX

   

 

 

 

 

Class I

 

FEGIX

   

 

 

 

 

Class R3

 

EAURX

   

 

 

 

 

Class R4

 

FIURX

   

 

 

 

 

Class R5

 

FERUX

   

 

 

 

 

Class R6

 

FEURX

   

 

 

 

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on www.feim.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly or, if you are a direct investor, by calling 800.334.2143 or by visiting www.Fundreports.com.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your reports. If you invest directly with a Fund, you can call 800.334.2143 or visit www.Fundreports.com. Your election to receive reports in paper will apply to all funds held with First Eagle or your financial intermediary.

Advised by First Eagle Investment Management, LLC

 

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

 


 

Thank you for your interest in First Eagle Funds (the “Trust” or “Funds”), managed by First Eagle Investment Management, LLC (“FEIM” or the “Adviser”). The Trust consists of seven portfolios: First Eagle Global Fund, First Eagle Overseas Fund, First Eagle U.S. Value Fund, First Eagle Gold Fund, First Eagle Global Income Builder Fund, First Eagle High Yield Fund and First Eagle Fund of America. This prospectus describes Fund shares designated as Classes A, C, I, R3, R4, R5, R6 and in the case of Fund of America, Class Y. Other classes of shares may be available by separate prospectus.


 

Table of Contents

 

 

 

Summary Information about the Funds (Including Investment, Risk and Fee/Expense Information)

First Eagle Global Fund

 

 

4

 

First Eagle Overseas Fund

 

 

12

 

First Eagle U.S. Value Fund

 

 

20

 

First Eagle Gold Fund

 

 

28

 

First Eagle Global Income Builder Fund

 

 

36

 

First Eagle High Yield Fund

 

 

45

 

First Eagle Fund of America

 

 

54

 

Information about Taxes and Financial Intermediaries

 

 

62

 

More Information about the Funds’ Investments

 

 

63

 

Investment Objectives and Strategies of the Funds

 

 

63

 

Principal Investment Risks

 

 

64

 

Defensive Investment Strategies

 

 

71

 

Disclosure of Portfolio Holdings

 

 

72

 

Fund Indices

 

 

72

 

Fund Management

 

 

74

 

The Adviser

 

 

74

 

The Subadviser

 

 

76

 

Approval of Advisory and Subadvisory Agreements

 

 

77

 

About Your Investment

 

 

78

 

How to Purchase Shares

 

 

78

 

Anti-Money Laundering Compliance

 

 

82

 

How Fund Share Prices Are Calculated

 

 

82

 

Purchases Through Dealers and Financial Intermediaries

 

 

83

 

Public Offering Price of Class A Shares

 

 

85

 

Purchasing Level-Load Class C Shares

 

 

90

 

Purchasing Class R3, Class R4, Class R5 and Class R6 Shares

 

 

91

 

Distribution and/or Shareholder Services Expenses

 

 

92

 

Bookshare Account Plan

 

 

95

 

Electronic Delivery

 

 

96

 

Where To Send Your Application

 

 

96

 

Minimum Account Size

 

 

96

 

Automatic Investment Program

 

 

97

 

Contractual Arrangements

 

 

97

 

Once You Become a Shareholder

 

 

98

 

Exchanging Your Shares

 

 

98

 

Redemption of Shares

 

 

100

 

Short-Term Trading Policies

 

 

102

 

Redemption Fee

 

 

103

 

Retirement Plans

 

 

105

 

Information on Dividends, Distributions and Taxes

 

 

107

 

Privacy Notice for Individual Shareholders

 

 

108

 

How to Reach First Eagle Funds

 

 

110

 

Financial Highlights

 

 

111

 

Appendix - Intermediary-Specific Front-End Sales Load and Waiver Terms

 

 

 

A-1

 

 

 

 

Useful Shareholder Information

 

 

 

Back Cover

 


 

 

First Eagle Global Fund

Summary Information

Investment Objective

First Eagle Global Fund (“Global Fund”) seeks long-term growth of capital by investing in a range of asset classes from markets in the United States and throughout the world.

Fees and Expenses of the Global Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the Global Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in the Global Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses**

 

 

 

0.11

   

 

0.11

   

 

 

0.09

   

 

0.15

   

 

0.17

   

 

0.18

   

 

 

0.03

 

Total Annual Operating Expenses (%)

     

1.11

   

 

1.86

   

 

 

0.84

   

 

1.25

   

 

1.02

   

 

0.93

   

 

 

0.78

 
 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

4First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Fund

Example

The following example is intended to help you compare the cost of investing in the Global Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same. Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$608

 

 

 

 

$835

 

 

 

 

$1,081

 

 

 

 

$1,784

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$289

 

 

 

 

$585

 

 

 

 

$1,006

 

 

 

 

$2,180

 

 

Held

 

 

 

$189

 

 

 

 

$585

 

 

 

 

$1,006

 

 

 

 

$2,180

 

Class I

Sold or Held

 

 

 

$86

 

 

 

 

$268

 

 

 

 

$466

 

 

 

 

$1,037

 

Class R3

Sold or Held

 

 

 

$127

 

 

 

 

$397

 

 

 

 

$686

 

 

 

 

$1,511

 

Class R4

Sold or Held

 

 

 

$104

 

 

 

 

$325

 

 

 

 

$563

 

 

 

 

$1,248

 

Class R5

Sold or Held

 

 

 

$95

 

 

 

 

$296

 

 

 

 

$515

 

 

 

 

$1,143

 

Class R6

Sold or Held

 

 

 

$80

 

 

 

 

$249

 

 

 

 

$433

 

 

 

 

$966

 

 

Portfolio Turnover Rate

The Global 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 the 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 14.91% of the average value of its portfolio.

First Eagle Funds  |  Prospectus  |  March 1, 20195


 

Summary Information about the Global Fund

Principal Investment Strategies

To achieve its objective of long-term capital growth, the Global Fund will normally invest primarily in common stocks (and securities convertible into common stocks) of U.S. and foreign companies.

Investment decisions for the Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. The Fund may also invest in fixed-income instruments (without regard to credit rating or time to maturity), short-term debt instruments, gold and other precious metals, and futures contracts related to precious metals. Under normal circumstances, the Fund anticipates it will allocate a substantial amount of its assets to foreign investments. That generally means that approximately 40% or more of the Fund’s net assets (plus any borrowings for investment purposes) will be allocated to foreign investments (unless market conditions are not deemed favorable by the Fund, in which case the Fund expects to invest at least 30% of its net assets (plus any borrowings for investment purposes) in foreign investments). For purposes of these 40% and 30% of assets allocations, the Fund “counts” relevant derivative positions on foreign investments, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price).

The investment philosophy and strategy of the Global Fund can be broadly characterized as a “value” approach, as it seeks a “margin of safety” in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility). In particular, a discount to “intrinsic value” is sought even for the best of businesses, with a deeper discount demanded for companies that we view as under business model, balance sheet, management or other stresses. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets. See also Defensive Investment Strategies.

The Fund makes some investments through a special purpose trading subsidiary (the “Subsidiary”) and may invest up to 25% of its total assets in the Subsidiary. The Subsidiary is a wholly-owned and controlled subsidiary of the Fund, organized under the laws of the Cayman Islands as an exempted company. Generally, the Subsidiary will invest in commodities and related instruments (primarily gold bullion and other precious metals and related futures contracts).

6First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Fund

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the Global Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in the Global Fund, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Gold Risk — The Fund may invest in both physical gold and the securities of companies in the gold mining sector. Prices of gold-related issues are susceptible to changes in U.S. and foreign regulatory policies, taxes, currencies, mining laws, inflation, and various other market conditions.

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The Fund may invest in debt instruments that are below investment grade, commonly known as junk bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

First Eagle Funds  |  Prospectus  |  March 1, 20197


 

Summary Information about the Global Fund

 

 

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. To date, derivatives have been used mainly under a hedging program intended to reduce the impact of foreign exchange rate changes on the Fund’s value.

 

 

Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect the Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

 

 

Subsidiary Risk — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and is not subject to all of the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as expected and could adversely affect the Fund.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in the Global Fund, please see the More Information about the Funds’ Investments section.

Investment Results

The following information provides an indication of the risks of investing in the Global 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 years compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/global-fund or by calling 800.334.2143.

8First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Fund

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included the returns would be lower.

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Third Quarter 2009

 

14.58%

 

 

 

Third Quarter 2011

 

-9.95%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

The following table discloses after-tax returns only for Class A shares.

After-tax returns for Class C, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

First Eagle Funds  |  Prospectus  |  March 1, 20199


 

Summary Information about the Global Fund

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(1/17/18)

 

Class R6
Inception
(3/1/17)

First Eagle Global Fund

Class A Shares

Return Before Taxes

 

 

-13.08%

   

 

2.16%

   

 

7.62%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-14.29%

   

 

1.16%

   

 

6.83%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-6.84%

   

 

1.65%

   

 

6.21%

   

 

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-10.04%

   

 

2.45%

   

 

7.37%

   

 

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-8.26%

   

 

3.49%

   

 

8.46%

   

 

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

-7.94%

   

 

   

 

 

Class R4 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

   

 

-11.75%

   

 

 

Class R6 Shares

Return Before Taxes

 

 

-8.19%

   

 

   

 

   

 

   

 

   

 

-0.36%

 

MSCI World Index

 

 

-8.71%

   

 

4.56%

   

 

9.67%

       

-8.46%

       

-12.74%

   

 

2.76%

 

Our Management Team

First Eagle Investment Management, LLC serves as the Global Fund’s Adviser.

Matthew McLennan and Kimball Brooker, Jr. have served as the Fund’s Portfolio Managers since September 2008 and February 2011, respectively.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the Global Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt

10First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Fund

of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

First Eagle Funds  |  Prospectus  |  March 1, 201911


 

 

First Eagle Overseas Fund

 

 

 

 

 

Summary Information

Investment Objective

First Eagle Overseas Fund (“Overseas Fund”) seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations.

Fees and Expenses of the Overseas Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the Overseas Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in the Overseas Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses**

 

 

 

0.15

 

 

 

 

0.13

   

 

0.11

   

 

0.11

   

 

0.18

   

 

0.20

   

 

0.05

 

Total Annual Operating Expenses (%)

     

1.15

       

1.88

   

 

0.86

   

 

1.21

   

 

1.03

   

 

0.95

   

 

0.80

 
 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

12First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Overseas Fund

Example

The following example is intended to help you compare the cost of investing in the Overseas Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same. Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$611

 

 

 

 

$847

 

 

 

 

$1,101

 

 

 

 

$1,828

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$291

 

 

 

 

$591

 

 

 

 

$1,016

 

 

 

 

$2,201

 

 

Held

 

 

 

$191

 

 

 

 

$591

 

 

 

 

$1,016

 

 

 

 

$2,201

 

Class I

Sold or Held

 

 

 

$88

 

 

 

 

$274

 

 

 

 

$477

 

 

 

 

$1,061

 

Class R3

Sold or Held

 

 

 

$123

 

 

 

 

$384

 

 

 

 

$665

 

 

 

 

$1,466

 

Class R4

Sold or Held

 

 

 

$105

 

 

 

 

$328

 

 

 

 

$569

 

 

 

 

$1,259

 

Class R5

Sold or Held

 

 

$97

   

 

$303

   

 

$525

   

 

$1,166

 

Class R6

Sold or Held

 

 

 

$82

 

 

 

 

$255

 

 

 

 

$444

 

 

 

 

$990

 

 

Portfolio Turnover Rate

The Overseas 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 12.10% of the average value of its portfolio.

First Eagle Funds  |  Prospectus  |  March 1, 201913


 

Summary Information about the Overseas Fund

Principal Investment Strategies

To achieve its objective of long-term capital growth, the Overseas Fund will invest primarily in equity securities of non-U.S. companies, the majority of which are traded in mature markets (for example, Japan, Germany and France), and may invest in countries whose economies are still developing (sometimes called “emerging markets”). The Fund particularly seeks companies that have financial strength and stability, strong management and fundamental value. Normally, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in foreign securities and “counts” relevant derivative positions towards this “80% of assets” allocation, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price). The Fund also may invest up to 20% of its total assets in debt instruments. The Fund may invest in debt securities generally without regard to their credit rating or time to maturity. Investment decisions for the Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. The Fund may invest in fixed-income instruments, short-term debt instruments, gold and other precious metals, and futures contracts related to precious metals.

The investment philosophy and strategy of the Overseas Fund can be broadly characterized as a “value” approach, as it seeks a “margin of safety” in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility). In particular, a discount to “intrinsic value” is sought even for the best of businesses, with a deeper discount demanded for companies that we view as under business model, balance sheet, management or other stresses. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets. See also Defensive Investment Strategies.

The Fund makes some investments through a special purpose trading subsidiary (the “Subsidiary”) and may invest up to 25% of its total assets in the Subsidiary. The Subsidiary is a wholly-owned and controlled subsidiary of the Fund, organized under the laws of the Cayman Islands as an exempted company. Generally, the Subsidiary will invest in commodities and related instruments (primarily gold bullion and other precious metals and related futures contracts).

14First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Overseas Fund

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the Overseas Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in the Overseas Fund, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

 

 

Emerging Market Risk — When the Fund invests in emerging market securities (generally meaning those associated with less developed markets), the Fund may be exposed to market, credit, currency, liquidity, legal, political, technical and other risks different from, and generally greater than, the risks of investing in developed markets. Emerging market countries typically have less-established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The Fund may invest in debt instruments that are below investment grade, commonly known as junk

First Eagle Funds  |  Prospectus  |  March 1, 201915


 

Summary Information about the Overseas Fund

 

 

 

bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

Gold Risk — The Fund may invest in both physical gold and the securities of companies in the gold mining sector. Prices of gold-related issues are susceptible to changes in U.S. and foreign regulatory policies, taxes, currencies, mining laws, inflation, and various other market conditions.

 

 

Illiquid Investment Risk — Holding illiquid securities restricts or otherwise limits the ability for the Fund to freely dispose of its investments for specific periods of time. The Fund might not be able to sell illiquid securities at its desired price or time. Changes in the markets or in regulations governing the trading of illiquid instruments can cause rapid changes in the price or ability to sell an illiquid security.

 

 

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. To date, derivatives have been used mainly under a hedging program intended to reduce the impact of foreign exchange rate changes on the Fund’s value.

 

 

Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect the Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

 

 

Subsidiary Risk — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act and is not subject to all of the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as expected and could adversely affect the Fund.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in the Overseas Fund, please see the More Information about the Funds’ Investments section.

16First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Overseas Fund

Investment Results

The following information provides an indication of the risks of investing in the Overseas 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 years compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/overseas-fund or by calling 800.334.2143.

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included, the returns would be lower.

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2009

 

16.58%

 

 

 

Third Quarter 2011

 

-10.29%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

First Eagle Funds  |  Prospectus  |  March 1, 201917


 

Summary Information about the Overseas Fund

The following table discloses after-tax returns only for Class A shares.

After-tax returns for Class C, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(1/17/18)

 

Class R6
Inception
(3/1/17)

First Eagle Overseas Fund

Class A Shares

Return Before Taxes

 

 

-14.78%

   

 

0.77%

   

 

6.03%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-15.25%

   

 

0.12%

   

 

5.25%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-8.19%

   

 

0.69%

   

 

4.91%

   

 

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-11.77%

   

 

1.07%

   

 

5.78%

   

 

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-9.99%

   

 

2.10%

   

 

6.85%

   

 

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

-9.75%

   

 

   

 

 

Class R4 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

   

 

-13.32%

   

 

 

Class R6 Shares

Return Before Taxes

 

 

 

-9.92%

   

 

   

 

   

 

   

 

   

 

-0.99%

 

MSCI EAFE Index

 

 

-13.79%

   

 

0.53%

   

 

6.32%

   

 

-13.82%

   

 

-17.55%

   

 

1.54%

 

Our Management Team

First Eagle Investment Management, LLC serves as the Overseas Fund’s Adviser.

18First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Overseas Fund

Matthew McLennan and Kimball Brooker, Jr. have served as the Fund’s Portfolio Managers since September 2008 and March 2010, respectively.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the Overseas Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

First Eagle Funds  |  Prospectus  |  March 1, 201919


 

 

First Eagle U.S. Value Fund

Summary Information

Investment Objective

First Eagle U.S. Value Fund (“U.S. Value Fund”) seeks long-term growth of capital by investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in domestic equity and debt securities.

Fees and Expenses of the U.S. Value Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the U.S. Value Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in the U.S. Value Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees**

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses***

 

 

0.15

   

 

0.15

   

 

0.12

   

 

0.14

   

 

0.26

   

 

0.26

   

 

0.11

 

Total Annual Operating Expenses (%)

 

 

1.15

   

 

1.90

   

 

0.87

   

 

1.24

   

 

1.11

   

 

1.01

   

 

0.86

 

Fee Waiver**

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

Total Annual Operating Expenses After Fee Waiver (%)

 

 

1.10

   

 

1.85

   

 

0.82

   

 

1.19

   

 

1.06

   

 

0.96

   

 

0.81

 

20First Eagle Funds  |  Prospectus  |  March 1, 2019


 

U.S. Value Fund

 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.05% of the average daily value of the Fund’s net assets for the period through February 29, 2020. This waiver has the effect of reducing the management fee shown in the table for the term of the waiver from 0.75% to 0.70%.

 

***

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

Example

The following example is intended to help you compare the cost of investing in the U.S. Value Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same (except that the management fee waiver is taken into account only for the one-year expense example). Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$607

 

 

 

 

$842

 

 

 

 

$1,097

 

 

 

 

$1,823

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$288

 

 

 

 

$592

 

 

 

 

$1,022

 

 

 

 

$2,218

 

 

Held

 

 

 

$188

 

 

 

 

$592

 

 

 

 

$1,022

 

 

 

 

$2,218

 

Class I

Sold or Held

 

 

 

$84

 

 

 

 

$273

 

 

 

 

$477

 

 

 

 

$1,068

 

Class R3

Sold or Held

 

 

 

$121

 

 

 

 

$388

 

 

 

 

$676

 

 

 

 

$1,496

 

Class R4

Sold or Held

 

 

$108

   

 

$348

   

 

$607

   

 

$1,347

 

Class R5

Sold or Held

 

 

$98

   

 

$317

   

 

$553

   

 

$1,232

 

Class R6

Sold or Held

 

 

 

$83

 

 

 

 

$269

 

 

 

 

$472

 

 

 

 

$1,056

 

 

First Eagle Funds  |  Prospectus  |  March 1, 201921


 

Summary Information about the U.S. Value Fund

Portfolio Turnover Rate

The U.S. Value 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 9.05% of the average value of its portfolio.

Principal Investment Strategies

To achieve its objective of long-term capital growth, the U.S. Value Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in domestic equity and debt instruments and may invest to a lesser extent in securities of non-U.S. issuers. In particular, the Fund seeks companies exhibiting financial strength and stability, strong management and fundamental value. Investment decisions for the Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. The debt instruments in which the Fund may invest include fixed-income securities without regard to credit rating or time to maturity and short-term debt instruments. The Fund may also invest in gold and other precious metals, and futures contracts related to precious metals. The Fund “counts” relevant derivative positions towards its “80% of assets” allocation, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price).

The investment philosophy and strategy of the U.S. Value Fund can be broadly characterized as a “value” approach, as it seeks a “margin of safety” in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility). In particular, a discount to “intrinsic value” is sought even for the best of businesses, with a deeper discount demanded for companies that we view as under business model, balance sheet, management or other stresses. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets. See also Defensive Investment Strategies.

The Fund makes some investments through a special purpose trading subsidiary (the “Subsidiary”) and may invest up to 25% of its total assets in the Subsidiary. The Subsidiary is a wholly-owned and controlled subsidiary of the Fund, organized under

22First Eagle Funds  |  Prospectus  |  March 1, 2019


 

U.S. Value Fund

the laws of the Cayman Islands as an exempted company. Generally, the Subsidiary will invest in commodities and related instruments (primarily gold bullion and other precious metals and related futures contracts).

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the U.S. Value Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in the U.S. Value Fund, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The Fund may invest in debt instruments that are below investment grade, commonly known as junk bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Gold Risk — The Fund may invest in both physical gold and the securities of companies in the gold mining sector. Prices of gold-related issues are susceptible to changes in U.S. and foreign regulatory policies, taxes, currencies, mining laws, inflation, and various other market conditions.

First Eagle Funds  |  Prospectus  |  March 1, 201923


 

Summary Information about the U.S. Value Fund

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

 

 

Subsidiary Risk — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act and is not subject to all of the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as expected and could adversely affect the Fund.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in the U.S. Value Fund, please see the More Information about the Funds’ Investments section.

Investment Results

The following information provides an indication of the risks of investing in the U.S. Value 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 years compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/us-value-fund or by calling 800.334.2143.

24First Eagle Funds  |  Prospectus  |  March 1, 2019


 

U.S. Value Fund

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included, the returns would be lower.

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2009

 

12.57%

 

 

 

Third Quarter 2011

 

-9.03%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

The following table discloses after-tax returns only for Class A shares.

After-tax returns for Class C, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

First Eagle Funds  |  Prospectus  |  March 1, 201925


 

Summary Information about the U.S. Value Fund

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R6
Inception
(3/1/17)

First Eagle U.S. Value Fund

Class A Shares

Return Before Taxes

 

 

-10.64%

   

 

3.49%

   

 

8.57%

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-13.49%

   

 

1.50%

   

 

7.23%

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-4.10%

   

 

2.66%

   

 

6.97%

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-7.40%

   

 

3.77%

   

 

8.31%

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-5.64%

   

 

4.83%

   

 

9.41%

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

-5.76%

   

 

 

Class R6 Shares

Return Before Taxes

 

 

-5.61%

   

 

   

 

   

 

   

 

0.96%

 

Standard & Poor’s 500 Index

 

 

-4.38%

   

 

8.49%

   

 

13.12%

   

 

-4.27%

   

 

4.51%

 

Our Management Team

First Eagle Investment Management, LLC serves as the U.S. Value Fund’s Adviser.

Matthew McLennan, Kimball Brooker, Jr. and Matthew Lamphier have served as the Fund’s Portfolio Managers since January 2009, March 2010 and March 2014 respectively.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the U.S. Value Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt

26First Eagle Funds  |  Prospectus  |  March 1, 2019


 

U.S. Value Fund

of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

First Eagle Funds  |  Prospectus  |  March 1, 201927


 

 

First Eagle Gold Fund

Summary Information

Investment Objective

First Eagle Gold Fund (“Gold Fund”) seeks to provide investors the opportunity to participate in the investment characteristics of gold (and to a limited extent other precious metals) for a portion of their overall investment portfolio.

Fees and Expenses of the Gold Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the Gold Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in the Gold Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Redemption Fee (as a percentage of the amount redeemed within 60 days of purchase)

 

 

 

2.00

 

 

 

 

2.00

 

 

 

 

2.00

 

 

 

 

2.00

 

 

 

 

2.00

 

 

 

 

2.00

 

 

 

 

2.00

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses**

 

 

0.29

   

 

0.30

   

 

0.25

   

 

0.22

   

 

0.31

   

 

0.31

   

 

0.16

 

Total Annual Operating Expenses (%)

 

 

1.29

   

 

2.05

   

 

1.00

   

 

1.32

   

 

1.16

   

 

1.06

   

 

0.91

 

28First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Gold Fund

 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

Example

The following example is intended to help you compare the cost of investing in the Gold Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same. Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$625

 

 

 

 

$889

 

 

 

 

$1,172

 

 

 

 

$1,979

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$308

 

 

 

 

$643

 

 

 

 

$1,103

 

 

 

 

$2,379

 

 

Held

 

 

 

$208

 

 

 

 

$643

 

 

 

 

$1,103

 

 

 

 

$2,379

 

Class I

Sold or Held

 

 

 

$102

 

 

 

 

$318

 

 

 

 

$552

 

 

 

 

$1,225

 

Class R3

Sold or Held

 

 

 

$134

 

 

 

 

$418

 

 

 

 

$723

 

 

 

 

$1,590

 

Class R4

Sold or Held

 

 

$118

   

 

$368

   

 

$638

   

 

$1,409

 

Class R5

Sold or Held

 

 

$108

   

 

$337

   

 

$585

   

 

$1,294

 

Class R6

Sold or Held

 

 

 

$93

 

 

 

 

$290

 

 

 

 

$504

 

 

 

 

$1,120

 

 

Portfolio Turnover Rate

The Gold 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

First Eagle Funds  |  Prospectus  |  March 1, 201929


 

Summary Information about the Gold Fund

fiscal year, the Fund’s portfolio turnover rate was 9.43% of the average value of its portfolio.

Principal Investment Strategies

To achieve its objective of providing investors the opportunity to participate in the investment characteristics of gold, the Gold Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in gold and/or securities (which may include both equity and, to a limited extent, debt instruments) directly related to gold or issuers principally engaged in the gold industry, including securities of gold mining finance companies as well as operating companies with long-, medium- or short-life mines. Up to 20% of the Fund’s assets may be invested in equity and, to a limited extent, debt instruments unrelated to gold or the gold industry. The Fund may invest up to 20% of its total assets in debt securities. Investment decisions for the Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. The Fund may also invest in fixed-income instruments (without regard to credit rating or time to maturity), short-term debt instruments, other precious metals, and futures contracts related to precious metals. The Fund “counts” relevant derivative positions towards its “80% of assets” allocation, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price).

An investment in the Gold Fund is not intended to be a complete investment program. However, many investors believe that, historically, a limited exposure to investments in gold or gold-related instruments may provide some offset against the market impact of political and economic disruptions, as well as relieve inflationary or deflationary pressures.

The Fund makes some investments through a special purpose trading subsidiary (the “Subsidiary”) and may invest up to 25% of its total assets in the Subsidiary. The Subsidiary is a wholly-owned and controlled subsidiary of the Fund, organized under the laws of the Cayman Islands as an exempted company. Generally, the Subsidiary will invest in commodities and related instruments (primarily gold bullion and other precious metals and related futures contracts). The Fund will invest in the Subsidiary in order to gain exposure to the commodities markets within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. Unlike the Fund, the Subsidiary may invest without limitation in commodities and related instruments, however, the Subsidiary will comply with the same 1940 Act asset coverage requirements with respect to any investments in commodity-linked

30First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Gold Fund

derivatives that are applicable to the Fund’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary will be subject to the same fundamental investment restrictions and will follow the same compliance policies and procedures as the Fund. Compliance with the Fund’s investment restrictions generally will be measured on an aggregate basis in respect of the Fund’s and the Subsidiary’s portfolios. The Subsidiary will comply with the 1940 Act provisions governing affiliate transactions and custody of assets. The Fund is the sole shareholder of the Subsidiary and does not expect shares of the Subsidiary to be offered or sold to other investors.

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the Gold Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in the Gold Fund, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Gold Risk — The Fund may invest in both physical gold and the securities of companies in the gold mining sector. Prices of gold-related issues are susceptible to changes in U.S. and foreign regulatory policies, taxes, currencies, mining laws, inflation, and various other market conditions.

 

 

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. To date, derivatives have been used mainly under a hedging program intended to reduce the impact of foreign exchange rate changes on the Fund’s value.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. These risks may be more pronounced with respect to investments in emerging markets. Because of the Gold Fund’s policy of investing primarily in gold, securities directly related to gold and/or of companies engaged in the gold industry, a substantial part of the Gold Fund’s assets will generally be

First Eagle Funds  |  Prospectus  |  March 1, 201931


 

Summary Information about the Gold Fund

 

 

 

invested in securities of companies domiciled or operating in one or more foreign countries, including emerging markets.

 

 

Diversification Risk — The Fund is a non-diversified mutual fund, and as a result, an investment in the Fund may expose your money to greater risks than if you invest in a diversified fund. The Fund may invest in a limited number of companies and industries, therefore gains or losses in a particular security may have a greater impact on their share price.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The Fund may invest in debt instruments that are below investment grade, commonly known as junk bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect the Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

 

 

Subsidiary Risk — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act and is not subject to all of the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as expected and could adversely affect the Fund.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

32First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Gold Fund

For more information on the risks of investing in the Gold Fund, please see the More Information about the Funds’ Investments section.

Investment Results

The following information provides an indication of the risks of investing in the Gold 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 years compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/gold-fund or by calling 800.334.2143.

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included, the returns would be lower.

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

First Quarter 2016

 

32.55%

 

 

 

Second Quarter 2013

 

-32.24%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

First Eagle Funds  |  Prospectus  |  March 1, 201933


 

Summary Information about the Gold Fund

The following table discloses after-tax returns only for Class A shares.

After-tax returns for Class C, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R6
Inception
(3/1/17)

First Eagle Gold Fund

Class A Shares

Return Before Taxes

 

 

-20.10%

   

 

-1.40%

   

 

-2.45%

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-20.10%

   

 

-1.40%

   

 

-2.68%

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-11.90%

   

 

-1.06%

   

 

-1.57%

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-17.42%

   

 

-1.18%

   

 

-2.71%

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-15.69%

   

 

-0.11%

   

 

-1.70%

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

-10.58%

   

 

 

Class R6 Shares

Return Before Taxes

 

 

-15.55%

   

 

   

 

   

 

   

 

-9.48%

 

MSCI World Index

 

 

-8.71%

   

 

4.56%

   

 

9.67%

   

 

-8.46%

   

 

2.76%

 

 

FTSE Gold Mines Index

 

 

-11.31%

   

 

0.58%

   

 

-5.41%

   

 

-5.31%

   

 

-6.40%

 

Our Management Team

First Eagle Investment Management, LLC serves as the Gold Fund’s Adviser.

34First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Gold Fund

Matthew McLennan and Thomas Kertsos have served as the Fund’s Portfolio Managers since March 2013 and March 2016, respectively. Mr. McLennan has also served as the Head of the First Eagle Global Value Team since September 2008.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the Gold Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

First Eagle Funds  |  Prospectus  |  March 1, 201935


 

 

First Eagle Global Income Builder Fund

Summary Information

Investment Objective

First Eagle Global Income Builder Fund (“Global Income Builder Fund”) seeks current income generation and long-term growth of capital.

Fees and Expenses of the Global Income Builder Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the Global Income Builder Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in the Global Income Builder Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

 

 

0.75

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses**

 

 

0.18

   

 

0.18

   

 

0.17

   

 

0.17

   

 

0.28

   

 

0.28

   

 

0.13

 

Total Annual Fund Operating Expenses (%)

 

 

1.18

   

 

1.93

   

 

0.92

   

 

1.27

   

 

1.13

   

 

1.03

   

 

0.88

 
 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

36First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Income Builder Fund

Example

The following example is intended to help you compare the cost of investing in the Global Income Builder Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same. Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$614

 

 

 

 

$856

 

 

 

 

$1,117

 

 

 

 

$1,860

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$296

 

 

 

 

$606

 

 

 

 

$1,042

 

 

 

 

$2,254

 

 

Held

 

 

 

$196

 

 

 

 

$606

 

 

 

 

$1,042

 

 

 

 

$2,254

 

Class I

Sold or Held

 

 

 

$94

 

 

 

 

$293

 

 

 

 

$509

 

 

 

 

$1,131

 

Class R3

Sold or Held

 

 

 

$129

 

 

 

 

$403

 

 

 

 

$697

 

 

 

 

$1,534

 

Class R4

Sold or Held

 

 

$115

   

 

$359

   

 

$622

   

 

$1,375

 

Class R5

Sold or Held

 

 

$105

   

 

$328

   

 

$569

   

 

$1,259

 

Class R6

Sold or Held

 

 

 

$90

 

 

 

 

$281

 

 

 

 

$488

 

 

 

 

$1,084

 

 

Portfolio Turnover Rate

There are transaction costs due to the bid/ask spread in the case of bonds or commissions in the case of stocks. The Global Income Builder Fund pays transaction costs when the Fund 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 Fund’s most recent fiscal year, the Fund’s portfolio turnover rate was 22.15% of the average value of its portfolio.

First Eagle Funds  |  Prospectus  |  March 1, 201937


 

Summary Information about the Global Income Builder Fund

Principal Investment Strategies

To achieve its objective of current income generation and long-term growth of capital, the Global Income Builder Fund will normally invest primarily in common stocks of U.S. and foreign companies that offer attractive dividend yields as well as a range of fixed income instruments, including high-yield, below investment grade instruments (commonly referred to as “junk bonds”), investment grade instruments and sovereign debt, from markets in the United States and multiple countries around the world.

Investment decisions for the Global Income Builder Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. Under normal circumstances, the Fund anticipates it will allocate a substantial amount of its assets to income-producing securities. That generally means that approximately 80% or more of the Fund’s net assets (plus any borrowings for investment purposes) will be allocated to such investments, which may include dividend paying equities, both high-yield (below investment grade) and investment grade debt, sovereign bonds, and various short-term debt instruments. The Fund may invest in securities with any maturity or investment rating, as well as unrated securities. The Fund may also invest (typically for hedging purposes) in derivative instruments such as options, futures contracts and options on futures contracts, credit default swaps, and swaps and options on indices.

Additionally, under normal circumstances, the Fund anticipates it will allocate a substantial amount of its assets to foreign investments. That generally means that approximately 40% or more of the Fund’s net assets (plus any borrowings for investment purposes) will be allocated to foreign investments (unless market conditions are not deemed favorable by the Fund, in which case the Fund expects to invest at least 30% of its net assets (plus any borrowings for investment purposes) in foreign investments). For purposes of these 80%, 40% and 30% of assets allocations, the Fund “counts” relevant derivative positions on investments, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price).

The investment philosophy and strategy of the Global Income Builder Fund can be broadly characterized as a “value” approach, as it seeks a “margin of safety” in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility). With respect to equity investments in particular, a discount to “intrinsic value” is sought even for what appear to be the

38First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Income Builder Fund

best of businesses, with a deeper discount demanded for companies that we view as under business model, balance sheet, management or other stresses. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets. Investments in debt instruments are made after careful scrutiny of the underlying creditworthiness of the issuer, taking into account such factors as cash flow generation, liquidation value and structural protections. The Global Income Builder Fund seeks to own debt instruments that offer an attractive “margin of safety” on principal repayment relative to the total expected return of the security.

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the Global Income Builder Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in the Global Income Builder Fund, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Foreign Investment Risk — The Fund will invest in foreign investments. Foreign investments can be susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

Prepayment Risk — Certain instruments, especially mortgage-backed securities, for example, are susceptible to the risk of prepayment by borrowers. During a period of declining interest rates, homeowners may refinance their high-rate mortgages and prepay the principal. Cash from these prepayments flows through

First Eagle Funds  |  Prospectus  |  March 1, 201939


 

Summary Information about the Global Income Builder Fund

 

 

 

to prepay the mortgage-backed securities, necessitating reinvestment in other assets, which may lower returns. Asset-backed securities, which are subject to risks similar to those of mortgage-backed securities, are also structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying assets may include such items as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property and receivables from credit card agreements. The market for mortgage-backed and asset-backed instruments may be volatile and limited, which may make them difficult to buy or sell.

 

 

Changes in Debt Ratings Risk — If a rating agency gives a debt instrument a lower rating, the value of the instrument may decline because investors may demand a higher rate of return.

 

 

Defaulted Securities Risk — The Fund may invest in securities of companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments involve a substantial degree of risk. In any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund may lose its entire investment, may be required to accept cash or securities with a value less than the Fund’s original investment, and/or may be required to accept payment over an extended period of time.

 

 

Convertible Security Risk — Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. Convertible securities may gain or lose value due to changes in the issuer’s operating results, financial condition and credit rating and changes in interest rates and other general economic, industry and market conditions.

 

 

High Yield Risk — The Fund intends to invest in high yield instruments (commonly known as “junk bonds”) which may be subject to greater levels of interest rate, credit (including issuer default) and liquidity risk than investment grade instruments and may experience extreme price fluctuations. The securities of such companies may be considered speculative and the ability of such companies to pay their debts on schedule may be uncertain.

 

 

Gold Risk — The Fund may invest in both physical gold and the securities of companies in the gold mining sector. Prices of gold-related issues are susceptible to changes in U.S. and foreign regulatory policies, taxes, currencies, mining laws, inflation, and various other market conditions.

40First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Income Builder Fund

 

 

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. To date, derivatives have been used mainly under a hedging program that seeks to reduce the impact of foreign exchange rate changes on the Fund’s value. The Fund may at times also purchase derivatives linked to relevant market indices as either a hedge or for investment purposes.

 

 

Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect the Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Bank Loan Risk — The Fund may invest in bank loans. These investments potentially expose the Fund to the credit risk of the underlying borrower, and in certain cases, of the financial institution. The Fund’s ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower. The market for bank loans may be illiquid and the Fund may have difficulty selling them, especially in the case of leveraged loans, which can be difficult to value. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. At times, the Fund may decline to receive non-public information relating to loans, which could disadvantage the Fund relative to other investors.

 

 

Real Estate Industry Risk — The Fund may invest in real estate investment trusts (“REITs”), which are subject to risks affecting the real estate industry generally (including market conditions, competition, property obsolescence, changes in interest rates and casualty to real estate), as well as risks specifically affecting REITs (the quality and skill of REIT management and the internal expenses of the REIT).

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in the Global Income Builder Fund, please see the More Information about the Funds’ Investments section.

First Eagle Funds  |  Prospectus  |  March 1, 201941


 

Summary Information about the Global Income Builder Fund

Investment Results

The following information provides an indication of the risks of investing in the Global Income Builder Fund by showing changes in the Fund’s performance from year to year, and by showing how the Fund’s average annual returns for the periods shown compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/global-income-builder-fund or by calling 800.334.2143.

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included, the returns would be lower.

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Third Quarter 2013

 

5.09%

 

 

 

Fourth Quarter 2018

 

-6.48%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

42First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Global Income Builder Fund

The following table discloses after-tax returns only for Class A shares.

After-tax returns for Class C, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

Since
Inception
(5/1/12)

 

Class R3
Inception
(5/1/18)

 

Class R6
Inception
(3/1/17)

First Eagle Global Income Builder Fund

Class A Shares

Return Before Taxes

 

 

-11.18%

   

 

1.80%

   

 

4.03%

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-11.61%

   

 

0.78%

   

 

2.99%

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-6.41%

   

 

1.08%

   

 

2.81%

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-8.13%

   

 

2.07%

   

 

4.05%

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-6.18%

   

 

3.12%

   

 

5.11%

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

-5.77%

   

 

 

Class R6 Shares

               

Return Before Taxes

 

 

-6.23%

   

 

   

 

   

 

   

 

1.25%

 

60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Bond Index

 

 

-5.07%

   

 

3.90%

   

 

5.67%

   

 

-4.09%

   

 

2.51%

 

 

MSCI World Index

 

 

-8.71%

   

 

4.56%

   

 

7.86%

   

 

-8.46%

   

 

2.76%

 

 

Bloomberg Barclays U.S. Aggregate Bond Index

 

 

0.01%

   

 

2.52%

   

 

2.00%

   

 

2.49%

   

 

1.75%

 

First Eagle Funds  |  Prospectus  |  March 1, 201943


 

Summary Information about the Global Income Builder Fund

Our Management Team

First Eagle Investment Management, LLC serves as the Adviser to the Global Income Builder Fund.

Kimball Brooker, Jr., Edward Meigs and Sean Slein are the Portfolio Managers for the Fund. Messrs. Meigs and Slein have been Portfolio Managers since the Fund’s inception on May 1, 2012, with Mr. Brooker joining as a Portfolio Manager in July 2016.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the Global Income Builder Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

44First Eagle Funds  |  Prospectus  |  March 1, 2019


 

 

First Eagle High Yield Fund

Summary Information

Investment Objective

First Eagle High Yield Fund (“High Yield Fund”) seeks to provide investors with a high level of current income.

Fees and Expenses of the High Yield Fund

The following information describes the fees and expenses you may pay if you buy and hold shares of the High Yield Fund.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $100,000 in the High Yield Fund. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to this Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

4.50

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees**

 

 

 

0.70

 

 

 

 

0.70

 

 

 

 

0.70

 

 

 

 

0.70

 

 

 

 

0.70

 

 

 

 

0.70

 

 

 

 

0.70

 

 

Distribution and/or Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses***

 

 

0.31

   

 

0.31

   

 

0.27

   

 

0.31

   

 

0.46

   

 

0.46

   

 

0.31

 

Total Annual Fund Operating Expenses (%)

 

 

1.26

   

 

2.01

   

 

0.97

   

 

1.36

   

 

1.26

   

 

1.16

   

 

1.01

 

Fee Waiver**

 

 

 

-0.10

 

 

 

 

-0.10

 

 

 

 

-0.10

 

 

 

 

-0.10

 

 

 

 

-0.10

 

 

 

 

-0.10

 

 

 

 

-0.10

 

Total Annual Fund Operating Expenses After Fee Waiver (%)

     

1.16

   

 

1.91

   

 

0.87

   

 

1.26

   

 

1.16

   

 

1.06

   

 

0.91

 

First Eagle Funds  |  Prospectus  |  March 1, 201945


 

Summary Information about the High Yield Fund

 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.10% of the average daily value of the Fund’s net assets for the period through February 29, 2020. This waiver has the effect of reducing the management fee shown in the table for the term of the waiver from 0.70% to 0.60%.

 

***

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

Example

The following example is intended to help you compare the cost of investing in the High Yield Fund with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same (except that the management fee waiver is taken into account only for the one-year expense example). Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$563

 

 

 

 

$822

 

 

 

 

$1,101

 

 

 

 

$1,896

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$294

 

 

 

 

$621

 

 

 

 

$1,074

 

 

 

 

$2,330

 

 

Held

 

 

 

$194

 

 

 

 

$621

 

 

 

 

$1,074

 

 

 

 

$2,330

 

Class I

Sold or Held

 

 

 

$89

 

 

 

 

$299

 

 

 

 

$527

 

 

 

 

$1,181

 

Class R3

 

Sold or Held

 

 

 

$128

 

 

 

 

$421

 

 

 

 

$735

 

 

 

 

$1,626

 

Class R4

Sold or Held

 

 

$118

   

 

$390

   

 

$682

   

 

$1,514

 

Class R5

Sold or Held

 

 

$108

   

 

$359

   

 

$629

   

 

$1,400

 

Class R6

Sold or Held

 

 

 

$93

 

 

 

 

$312

 

 

 

 

$548

 

 

 

 

$1,227

 

 

46First Eagle Funds  |  Prospectus  |  March 1, 2019


 

High Yield Fund

Portfolio Turnover Rate

There are transaction costs due to the bid/ask spread in the case of bonds or commissions in the case of stocks. The High Yield Fund pays transaction costs, such as commissions, when the Fund 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 Fund’s most recent fiscal year, the Fund’s portfolio turnover rate was 24.82% of the average value of its portfolio.

Principal Investment Strategies

To pursue its investment objective, the High Yield Fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in high yield, below investment-grade securities (commonly referred to as “junk bonds”) and instruments. Such high yield instruments may include corporate bonds and loans, municipal bonds, and mortgage-backed and asset-backed securities. The Fund may invest in, and count for the purposes of this 80% allotment, unrated securities or other instruments deemed by the Fund’s Adviser to be below investment grade. The Fund “counts” relevant derivative positions towards its “80% of assets” allocation and, in doing so, values each position at the price at which it is held on the Fund’s books (generally market price).

The Fund may invest its assets in the securities of both U.S. and foreign issuers. The Fund may also invest (typically for hedging purposes) in derivative instruments such as options, futures contracts and options on futures contracts, credit default swaps, and swaps and options on indices.

The Fund may invest in securities with any investment rating or time to maturity.

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the High Yield Fund. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

First Eagle Funds  |  Prospectus  |  March 1, 201947


 

Summary Information about the High Yield Fund

Principal risks of investing in the High Yield Fund, which could adversely affect its net asset value and total return, are:

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

High Yield Risk — The Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) under normal market conditions in high yield instruments (commonly known as “junk bonds”) which may be subject to greater levels of interest rate, credit (including issuer default) and liquidity risk than investment grade securities and may experience extreme price fluctuations. The securities of such companies may be considered speculative and the ability of such companies to pay their debts on schedule may be uncertain.

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which the Fund invests, as well as economic, political, or social events in the United States or abroad.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments can be susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

 

 

Convertible Security Risk — Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. Convertible securities may gain or lose value due to changes in the issuer’s operating results, financial condition, credit rating and changes in interest rates and other general economic, industry and market conditions.

 

 

Illiquid Investment Risk — Holding illiquid securities restricts or otherwise limits the ability for the Fund to freely dispose of its investments for specific periods of time. The Fund might not be able to sell illiquid securities at its desired price or time. Changes in the markets or in regulations governing the trading of illiquid instruments can cause rapid changes in the price or ability to sell an illiquid security. The market for lower-quality debt instruments, including junk bonds, is generally less liquid than the market for higher-quality debt instruments.

48First Eagle Funds  |  Prospectus  |  March 1, 2019


 

High Yield Fund

 

 

Prepayment Risk — Certain instruments, especially mortgage-backed securities, for example, are susceptible to the risk of prepayment by borrowers. During a period of declining interest rates, homeowners may refinance their high-rate mortgages and prepay the principal. Cash from these prepayments flows through to prepay the mortgage-backed securities, necessitating reinvestment in other assets, which may lower returns. Asset-backed securities, which are subject to risks similar to those of mortgage-backed securities, are also structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying assets may include such items as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property and receivables from credit card agreements. The market for mortgage-backed and asset-backed instruments may be volatile and limited, which may make them difficult to buy or sell.

 

 

Bank Loan Risk — The Fund may invest in bank loans. These investments potentially expose the Fund to the credit risk of the underlying borrower, and in certain cases, of the financial institution. The Fund’s ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower. The market for bank loans may be illiquid and the Fund may have difficulty selling them, especially in the case of leveraged loans, which can be difficult to value. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. At times, the Fund may decline to receive non-public information relating to loans, which could disadvantage the Fund relative to other investors.

 

 

Changes in Debt Ratings Risk — If a rating agency gives a debt instrument a lower rating, the value of the instrument may decline because investors may demand a higher rate of return.

 

 

Defaulted Securities Risk — The Fund may invest in securities of companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments involve a substantial degree of risk. In any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund may lose its entire investment, may be required to accept cash or securities with a value less than the Fund’s original investment, and/or may be required to accept payment over an extended period of time.

 

 

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. The Fund may use derivatives in seeking to

First Eagle Funds  |  Prospectus  |  March 1, 201949


 

Summary Information about the High Yield Fund

 

 

 

reduce the impact of foreign exchange rate changes on the Fund’s value. The Fund may at times also purchase derivatives linked to relevant market indices as either a hedge or for investment purposes.

 

 

Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect the Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in the High Yield Fund, please see the More Information about the Funds’ Investments section.

Investment Results

The High Yield Fund commenced operations in its present form on or about December 30, 2011 and is the successor to the Old Mutual High Yield Fund (the “Predecessor Fund”) pursuant to a reorganization on or about that same date. The Predecessor Fund had similar investment objectives and strategies as the Fund, but was managed by another investment adviser.

The following information provides 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 and 5 years and since inception compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/high-yield-fund or by calling 800.334.2143.

50First Eagle Funds  |  Prospectus  |  March 1, 2019


 

High Yield Fund

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included the returns would be lower.

Calendar Year Total Returns—Class I

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2009

 

24.95%

 

 

 

Third Quarter 2011

 

-5.97%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

The following average annual total returns table discloses after-tax returns only for Class I shares.

After-tax returns for Class A, Class C, Class R3, Class R4, Class R5 and Class R6 shares will vary. Returns shown for Class I shares assume commencement of operations on November 19, 2007, which is the date of organization of the Predecessor Fund. Returns shown for Class A and Class C assume commencement of operations on January 3, 2012, which is the date of inception for these share classes. Returns shown for Class I shares include the returns of the Predecessor Fund for periods prior to January 1, 2012. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

First Eagle Funds  |  Prospectus  |  March 1, 201951


 

Summary Information about the High Yield Fund

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Classes
A and C
Inception
(1/3/12)

 

Class R3
Inception
(5/1/18)

 

Class R6
Inception
(3/1/17)

 

 

First Eagle High Yield Fund

Class A Shares

Return Before Taxes

 

 

-5.15%

   

 

1.33%

   

 

   

 

3.74%

   

 

   

 

   

 

Class C Shares

Return Before Taxes

 

 

-2.40%

   

 

1.51%

   

 

   

 

3.63%

   

 

   

 

   

 

Class I Shares

Return Before Taxes

 

 

-0.42%

   

 

2.56%

   

 

10.42%

   

 

   

 

   

 

   

 

 

Return After Taxes on Distributions

 

 

-2.56%

   

 

-0.02%

   

 

6.87%

   

 

   

 

   

 

   

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-0.23%

   

 

0.79%

   

 

6.84%

   

 

   

 

   

 

   

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

   

 

-1.64%

   

 

   

 

Class R6 Shares

Return Before Taxes

 

 

-0.58%

   

 

   

 

   

 

   

 

   

 

1.43%

   

 

Bloomberg Barclays U.S. Corporate High Yield Index

 

 

-2.08%

   

 

3.83%

   

 

11.12%

   

 

5.89%

   

 

-1.77%

   

 

1.10%

   

 

Our Management Team

First Eagle Investment Management, LLC serves as the Adviser to the High Yield Fund.

Edward Meigs joined First Eagle Investment Management, LLC as a Portfolio Manager in 2011. Previously, Mr. Meigs served as a Portfolio Manager at Dwight Asset Management, LLC, where he managed the Predecessor Fund since its inception on November 19, 2007.

Sean Slein joined First Eagle Investment Management, LLC as a Portfolio Manager in 2011. Previously, Mr. Slein served as a Portfolio Manager at Dwight Asset Management, LLC, where he managed the Predecessor Fund since its inception on November 19, 2007.

52First Eagle Funds  |  Prospectus  |  March 1, 2019


 

High Yield Fund

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the High Yield Fund is $2,500 for Classes A and C and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

First Eagle Funds  |  Prospectus  |  March 1, 201953


 

 

First Eagle Fund of America

Summary Information

Investment Objective

First Eagle Fund of America (“Fund of America”) seeks capital appreciation by investing primarily in domestic stocks and, to a lesser extent, in debt and foreign equity securities.

Fees and Expenses of the Fund of America

The following information describes the fees and expenses you may pay if you buy and hold shares of Fund of America.

You may qualify for sales charge discounts if you, together with certain related accounts, invest, or agree to invest in the future, at least $25,000 in Fund of America. Information about these and other discounts is available from your financial professional and in the How to Purchase Shares and Public Offering Price of Class A Shares sections on pages 78 and 85, respectively, and in the appendix to the Fund’s Prospectus titled Intermediary-Specific Front-End Sales Load and Waiver Terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class C

 

Class Y†

 

Class I

 

Class R3

 

Class R4

 

Class R5

 

Class R6

Shareholder Fees (fees paid directly from your investment)

Maximum Sales Charge (Load) on Purchases (as a percentage of public offering price)

 

 

 

5.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

Maximum Deferred Sales Charge (Load) (as a percentage of the lesser of your purchase or redemption price)

 

 

 

1.00

*

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

 

 

 

None

 

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment)

Management Fees**

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

 

 

0.90

 

 

Distribution and Service (12b-1) Fees

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

0.25

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses***

 

 

0.17

   

 

 

0.16

   

 

0.18

   

 

0.12

   

 

0.13

   

 

0.23

   

 

0.23

   

 

0.08

 

Total Annual Operating Expenses (%)

 

 

1.32

   

 

 

2.06

   

 

1.33

   

 

1.02

   

 

1.38

   

 

1.23

   

 

1.13

   

 

0.98

 

 

54First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Fund of America

 

 

Closed to new investors.

 

*

 

A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $1,000,000 or more without an initial sales charge.

 

**

 

0.90% of the first $2.25 billion of the Fund’s average daily net assets, 0.85% of the next $2.75 billion of average daily net assets, and 0.80% of average daily net assets in excess of $5 billion.

 

***

 

“Other Expenses” shown generally reflect actual expenses for the Fund for the fiscal year ended October 31, 2018 and estimated expenses in the case of newly organized share classes.

Example

The following example is intended to help you compare the cost of investing in Fund of America with the cost of investing in other mutual funds. This hypothetical example assumes you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem all shares at the end of those periods. The example also assumes the average annual return is 5% and operating expenses remain the same. Please keep in mind your actual costs may be higher or lower.

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$628

 

 

 

 

$897

 

 

 

 

$1,187

 

 

 

 

$2,011

 

Class C (shares have a one year contingent deferred sales charge)

Sold

 

 

 

$309

 

 

 

 

$646

 

 

 

 

$1,108

 

 

 

 

$2,390

 

 

Held

 

 

 

$209

 

 

 

 

$646

 

 

 

 

$1,108

 

 

 

 

$2,390

 

Class Y

Sold or Held

 

 

 

$135

 

 

 

 

$421

 

 

 

 

$729

 

 

 

 

$1,601

 

Class I

Sold or Held

 

 

 

$104

 

 

 

 

$325

 

 

 

 

$563

 

 

 

 

$1,248

 

Class R3

Sold or Held

 

 

 

$140

 

 

 

 

$437

 

 

 

 

$755

 

 

 

 

$1,657

 

Class R4

Sold or Held

 

 

$125

   

 

$390

   

 

$676

   

 

$1,489

 

Class R5

Sold or Held

 

 

$115

   

 

$359

   

 

$622

   

 

$1,375

 

Class R6

Sold or Held

 

 

 

$100

 

 

 

 

$312

 

 

 

 

$542

 

 

 

 

$1,201

 

 

First Eagle Funds  |  Prospectus  |  March 1, 201955


 

Summary Information about the Fund of America

Portfolio Turnover Rate

Fund of America 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 of America operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, Fund of America’s portfolio turnover rate was 60.29% of the average value of its portfolio.

Principal Investment Strategies

To achieve its objective of capital appreciation, Fund of America will primarily invest in domestic stocks and, to a lesser extent, debt and foreign equity instruments. Normally, at least 80% of the Fund’s net assets (plus any borrowings for investment purposes) are invested in domestic equity and debt instruments. The Fund “counts” derivative positions on these instruments for purposes of this 80% allocation, and in doing so, values each position at the price at which it is held on the Fund’s books (generally market price). Equity securities include common stocks, preferred stocks, convertible securities and warrants. The Fund may also invest in repurchase agreements and derivatives.

Derivatives include investing in options, futures and swaps and related products. Specifically, the Fund may enter into interest rate, credit default, currency, equity, fixed income and index swaps and the purchase or sale of related caps, floors and collars.

In addition, the Fund may enter into options on securities and on stock indices to limit the Fund’s investment risk and augment its investment return. Further, the Fund may write “covered” call options on equity or debt securities and on stock indices in seeking to enhance investment return or to hedge against declines in the prices of portfolio securities or may write put options to hedge against increases in the prices of securities which it intends to purchase. The Fund also may write call options on broadly based stock and bond market indices if at the time of writing it holds a portfolio of stocks or bonds listed on such index. Finally, the Fund may utilize futures contracts and options on futures on securities exchanges or in the over-the-counter market.

The Fund may enter into certain types of repurchase agreements, primarily as a cash management strategy.

56First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Fund of America

The investment philosophy and strategy of Fund of America can be broadly characterized as a bottom-up, event-driven approach to choose securities that the Fund believes are undervalued and should perform well. In a bottom-up approach, companies and securities are researched and chosen individually. In an event-driven approach, one looks for companies that appear to be undervalued in relation to their potential value in light of positive corporate changes. Signals of corporate change can be management changes, large share repurchases, potential acquisitions or mergers. If changes are successful, these companies should realize a rise in the stock price. Fund of America invests in the securities of companies that it believes are undervalued relative to their overall financial and managerial strength. Investment decisions for the Fund are made without regard to the capitalization (size) of the companies in which it invests. The Fund may invest in any size company, including large, medium and smaller companies. The Fund may invest in debt securities generally without regard to their credit rating or time to maturity. However, the Fund has no current intention of investing more than 5% of its net assets in high yield bonds.

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in Fund of America. The likelihood of loss may be greater if you invest for a shorter period of time. An investment in the Fund is not intended to be a complete investment program.

Principal risks of investing in Fund of America, which could adversely affect its net asset value and total return, are:

 

 

Market Risk — The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which Fund of America invests, as well as economic, political, or social events in the United States or abroad.

 

 

Event-Driven Style Risk — The event-driven investment style carries the additional risk that the event anticipated occurs later than expected, does not occur at all, or does not have the desired effect on the market price of the securities.

 

 

Diversification Risk — The Fund is a non-diversified mutual fund, and as a result, an investment in Fund of America may expose your money to greater risks than if you invest in a diversified fund. Fund of America will invest in a limited number of companies and industries, therefore gains or losses in a particular security may have a greater impact on their share price.

First Eagle Funds  |  Prospectus  |  March 1, 201957


 

Summary Information about the Fund of America

 

 

Credit and Interest Rate Risk — The value of the Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The Fund may invest in debt instruments that are below investment grade, commonly known as junk bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

 

 

Small and Medium-Size Company Risk — The Fund may invest in small and medium-size companies, the securities of which can be more volatile in price than those of larger companies. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. The Fund considers small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

 

 

Repurchase Agreements Risk — The Fund may enter into certain types of repurchase agreements, primarily as a cash management strategy. If the seller fails to repurchase the security and the market value declines, the Fund may lose money.

 

 

Options Risk — The Fund may engage in various options transactions in which the Fund seeks to limit investment risk or increase investment returns by purchasing the right to buy or sell, or by selling the obligation to buy or sell, a security at a set price in the future. The Fund pays a premium when buying options and receives a premium when selling options. When trading options, the Fund may incur losses or forego otherwise realizable gains if market prices do not move as expected.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

For more information on the risks of investing in Fund of America, please see the More Information about the Funds’ Investments section.

58First Eagle Funds  |  Prospectus  |  March 1, 2019


 

Fund of America

Investment Results

The following information provides an indication of the risks of investing in Fund of America 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 years compare with those of a broad measure of market performance. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

After-tax returns are calculated using the highest individual federal income tax rate for each year, and do not reflect the effect of state and local taxes. Actual after-tax returns depend on your individual tax situation. After-tax returns are not relevant to investors in tax-deferred accounts, such as 401(k) plans or individual retirement accounts.

Updated performance information is available at www.feim.com/individual-investors/fund/fund-america or by calling 800.334.2143.

The following bar chart assumes reinvestment of dividends and distributions and does not reflect any sales charges. If sales charges were included, the returns would be lower.

Calendar Year Total Returns—Class Y

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2009

 

13.03%

 

 

 

Fourth Quarter 2018

 

-21.67%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

The following table discloses after-tax returns only for Class Y shares.

First Eagle Funds  |  Prospectus  |  March 1, 201959


 

Summary Information about the Fund of America

After-tax returns for Class C, Class A, Class I, Class R3, Class R4, Class R5 and Class R6 shares will vary. While no or only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they have no or partial performance as of December 31, 2018), annual returns for Class R3, Class R4, Class R5 and Class R6 shares would have been substantially similar to those shown here. Class R3, Class R4, Class R5 and Class R6 shares are invested in the same portfolio of securities and the annual returns differ only to the extent that Class R3, Class R4, Class R5 and Class R6 shares do not have the same expenses as the classes for which more extended performance is shown. Comparative expense information is in the Fees and Expenses table.

Average Annual Total Returns as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class I
Inception
(3/8/13)

 

Class R3
Inception
(5/1/18)

 

Class R6
Inception
(3/1/17)

First Eagle Fund of America

Class Y Shares

Return Before Taxes

 

 

-23.85%

   

 

-0.66%

   

 

8.81%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions

 

 

-27.35%

   

 

-2.78%

   

 

7.43%

   

 

   

 

   

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-11.41%

   

 

-0.30%

   

 

7.30%

   

 

   

 

   

 

 

Class C Shares

Return Before Taxes

 

 

-24.96%

   

 

-1.40%

   

 

8.01%

   

 

   

 

   

 

 

Class A Shares

Return Before Taxes

 

 

-27.65%

   

 

-1.68%

   

 

8.26%

   

 

   

 

   

 

 

Class I Shares

Return Before Taxes

 

 

-23.61%

   

 

-0.37%

   

 

   

 

3.14%

   

 

   

 

 

Class R3 Shares

Return Before Taxes

 

 

   

 

   

 

   

 

   

 

-21.17%

   

 

 

Class R6 Shares

Return Before Taxes

 

 

-23.55%

   

 

   

 

   

 

   

 

   

 

-7.67%

 

Standard & Poor’s 500 Index

 

 

-4.38%

   

 

8.49%

   

 

13.12%

   

 

10.84%

   

 

-4.27%

   

 

4.51%

 

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Fund of America

Our Management Team

First Eagle Investment Management, LLC serves as Fund of America’s Adviser.

Portfolio Managers Harold Levy, Eric Stone and Lukasz Thieme of Iridian Asset Management LLC, a subadviser retained by First Eagle Investment Management, LLC, have responsibility for the day-to-day management of Fund of America and are assisted by their colleague Portfolio Manager David Cohen. Messrs. Levy and Cohen have served as Portfolio Managers of the Fund since the Fund’s inception in April 1987 and since 1989, respectively. Mr. Stone has served as a Portfolio Manager since March 2014 and Mr. Thieme has served as a Portfolio Manager since March 2018.

How to Purchase and Redeem Shares

The minimum initial investment amount generally required for the Fund of America is $2,500 for Classes A, C, and Y and $1 million for Class I. There is no minimum initial investment for Class R3, Class R4, Class R5 and Class R6. See the About Your Investment—How to Purchase Shares section for more information. Class Y shares are closed to new investors subject to the limited exceptions described in the About Your Investment—Fund of America Class Y Shares (closed to new investors) section.

You may purchase Fund shares on any business day at their public offering price next computed after proper receipt of the order. You may redeem or exchange Fund shares on any business day at their net asset value next computed after proper receipt of the order. Transaction orders may be submitted via telephone, through your authorized dealer or through the Fund’s transfer agent, DST Systems, Inc. Shares held in the dealer’s “street name” must be redeemed or exchanged through the dealer. See the Once You Become a Shareholder section for more information.

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Summary Information about the Funds

Information about Taxes and Financial Intermediaries

Tax Information

It is the Funds’ policy to make periodic distributions of net investment income and net realized capital gains, if any. Unless you elect otherwise, your ordinary income dividends and capital gain distributions will be reinvested in additional shares of the same share class of a Fund at net asset value calculated as of the payment date. The Funds’ distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as a 401(k) plan or an individual retirement account. Amounts withdrawn from a tax-deferred account may be subject to tax, including a penalty on pre-retirement distributions that are not properly rolled over to other tax-deferred accounts. See the Information on Dividends, Distributions and Taxes section for more information.

Payments to Broker-Dealers and Financial Intermediaries

If you purchase shares of the Funds through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial adviser to recommend the Fund over another investment. Ask your individual financial adviser or visit your financial intermediary’s website for more information. See the About Your Investment—Distribution and/or Shareholder Services Expenses section for more information.

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More Information about the Funds’ Investments

Investment Objectives and Strategies of the Funds

Global Fund. The Global Fund seeks long-term growth of capital by investing in a range of asset classes from markets in the United States and throughout the world. In seeking to achieve this objective, the Fund will normally invest primarily in common stocks (and securities convertible into common stocks) of U.S. and foreign companies. The Fund may also invest in short-term debt instruments, gold and other precious metals, and futures contracts related to precious metals, and fixed-income instruments of domestic or foreign issuers.

Overseas Fund. The Overseas Fund seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations. In seeking to achieve this objective, the Fund invests primarily in equity securities of non-U.S. companies, the majority of which are traded in mature markets, and may invest in emerging markets. Normally, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in foreign securities. The Fund may invest in fixed-income instruments, short-term debt instruments, gold and other precious metals, and futures contracts related to precious metals.

U.S. Value Fund. The U.S. Value Fund seeks long-term growth of capital by investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in domestic equity and debt securities. The Fund may also invest in gold and other precious metals, and futures contracts related to precious metals.

Gold Fund. The Gold Fund seeks to provide investors the opportunity to participate in the investment characteristics of gold (and to a limited extent other precious metals) for a portion of their overall investment portfolio. At least 80% of the Fund’s net assets (plus any borrowings for investment purposes) will be invested in gold and/or securities (which may include both equity and, to a limited extent, debt instruments) directly related to gold or issuers principally engaged in the gold industry, including securities of gold mining finance companies as well as operating companies with long, medium or short-life mines. The Fund may also invest in debt and equity instruments unrelated to the gold industry, other precious metals and futures contracts related to precious metals.

Global Income Builder Fund. The Global Income Builder Fund seeks current income generation and long-term growth of capital. The Fund will normally invest primarily in common stocks of U.S. and foreign companies that offer attractive dividend yields as well as a range of fixed income instruments, including high yield, below investment grade instruments (commonly referred to as “junk bonds”),

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investment grade instruments, sovereign debt and various short-term debt instruments from markets in the United States and multiple countries around the world.

High Yield Fund. The High Yield Fund seeks to provide investors with a high level of current income. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in high yield, below investment-grade securities (commonly referred to as “junk bonds”) and instruments. Such high yield instruments may include corporate bonds and loans, municipal bonds, and mortgage-backed and asset-backed securities. The Fund may also invest in other types of instruments including unrated debt securities and derivatives and may also employ certain investment techniques which create market exposure.

Fund of America. The Fund of America seeks capital appreciation by investing primarily in domestic stocks and to a lesser extent in debt and foreign equity securities. The Fund may also invest in repurchase agreements and derivatives.

All Funds—Change in Investment Objective. Although no change is anticipated, the investment objective of each of the Funds, except for the Global Fund, can be changed without shareholder approval. Shareholders will be notified a minimum of 60 days in advance of any change in investment objective or of any change in a Fund’s “80% of assets” investment policies.

Principal Investment Risks

Some of the principal investment risks of the Funds are described below in greater detail than in the Fund Summaries at the beginning of the Prospectus. The chart identifies which of these risks are applicable to a particular Fund. Other investment risks and practices also apply and are described in the Statement of Additional Information (the “SAI”), which is available on request (see back cover). In any Fund, an investment made at a perceived “margin of safety” or “discount to intrinsic or fundamental value” can trade at prices substantially lower than when an investment is made, so that any perceived “margin of safety” or “discount to value” is no guarantee against loss.

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Risk

 

Global
Fund

 

Overseas
Fund

 

U.S. Value
Fund

 

Gold
Fund

 

Global Income
Builder Fund

 

High Yield
Fund

 

Fund of
America

 

Market Risk

 

 

   

 

   

 

   

 

   

 

   

 

   

 

 

 

Credit and Interest Rate Risk

 

 

   

 

   

 

   

 

   

 

   

 

   

 

 

 

Foreign Investment Risk

 

 

   

 

   

 

   

 

   

 

   

 

   

 

 

 

Emerging Market Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small and Medium-Size Company Risk

 

 

   

 

   

 

   

 

   

 

 

 

 

 

 

 

 

Illiquid Investment Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Risk

 

 

   

 

 

 

 

 

 

   

 

   

 

 

 

 

 

Subsidiary Risk

 

 

   

 

   

 

   

 

 

 

 

 

 

 

 

 

Options Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold Risk

 

 

   

 

   

 

   

 

   

 

 

 

 

 

 

 

Diversification Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High Yield Risk

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Prepayment Risk

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Currency Risk

 

 

   

 

 

 

 

 

 

   

 

   

 

 

 

 

 

Changes in Debt Ratings Risk

 

 

 

 

 

 

 

 

 

 

   

 

   

 

 

Bank Loan Risk

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Convertible Security Risk

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Defaulted Securities Risk

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Real Estate Industry Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Event-Drive Style Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Risk — All securities may be subject to adverse market trends. The value of a Fund’s portfolio holdings may fluctuate in response to events specific to the companies or stock or bond markets in which a Fund invests, as well as economic, political, or social events in the United States or abroad. This may cause a Fund’s portfolio to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer or the market as a whole. As a result, a portfolio of such securities may underperform the market as a whole.

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Credit and Interest Rate Risk — The value of a Fund’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. The value of the debt securities held by a Fund fluctuates with the credit quality of the issuers of those securities. A Fund could lose money if the issuer of a security is unable to meet its financial obligations or goes bankrupt. In addition, fluctuations in interest rates can affect the value of debt instruments held by the Fund. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

Foreign Investment Risks — Foreign investments involve certain inherent risks that are different from those of domestic investments, including political or economic instability of the issuer or the country of issue, less government supervision and regulation of foreign securities exchanges, changes in foreign currency and exchange rates, less public information about foreign companies, greater price fluctuations, and the possibility of adverse changes in investment or exchange control regulations. Currency fluctuations may also affect the net asset value of a Fund irrespective of the performance of the underlying investments in foreign issuers. Foreign governments can also levy confiscatory taxes, expropriate assets and limit repatriations of assets. These risks may be more pronounced with respect to investments in emerging markets, as described below. As a result of these and other factors, foreign securities may be subject to greater price fluctuation than securities of U.S. companies.

Emerging Market Risk — To the extent a Fund invests in emerging market securities, the Fund may be exposed to market, credit, currency, liquidity, legal, political, technical and other risks different from, and generally greater than, the risks of investing in developed markets. Emerging market countries typically have less-established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers.

Small and Medium-Size Company Risk — In addition to investments in larger companies, each Fund may invest in smaller and medium-size companies, which historically have been more volatile in price than larger company securities, especially over the short term. Positions in smaller companies, especially when the Fund is a large holder of a small company’s securities, also may be more difficult or expensive to trade. Among the reasons for the greater price volatility are the less certain growth

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prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. In addition, smaller companies may lack depth of management, they may be unable to generate funds necessary for growth or development, or they may be developing or marketing new products or services for which markets are not yet established and may never become established. The Funds consider small companies to be companies with market capitalizations of less than $1 billion and medium-size companies to have market capitalizations of less than $10 billion.

Illiquid Investment Risk — Holding illiquid securities restricts or otherwise limits the ability for a Fund to freely dispose of its investments for specific periods of time. A Fund might not be able to sell illiquid securities at its desired price or time. Changes in the markets or in regulations governing the trading of illiquid instruments can cause rapid changes in the price or ability to sell an illiquid security. The market for lower-quality debt instruments, including junk bonds and leveraged loans, is generally less liquid than the market for higher-quality debt instruments.

Derivatives Risk — Futures contracts or other “derivatives,” including hedging strategies, present risks related to their significant price volatility and risk of default by the counterparty to the contract. Derivatives are subject to counterparty risk, which is the risk that a loss may be sustained by a Fund as a result of the insolvency or bankruptcy of the other party to the transaction or the failure of the other party to make required payments or otherwise comply with the terms of the transaction. Changing conditions in a particular market area, such as those experienced in the subprime and non-agency mortgage market over recent years, whether or not directly related to the referenced assets that underlie the transaction, may have an adverse impact on the creditworthiness of the counterparty. If a Fund invests in derivatives at inopportune times or judges market conditions incorrectly, such investments may lower the Fund’s return or result in a loss, which could also lead to an increase in redemptions of Fund shares. The Fund also could experience losses if its derivatives were poorly correlated with its other investments, or if the Fund was unable to liquidate its position because of an illiquid secondary market. The market for some derivatives is, or suddenly can become, illiquid, especially in times of financial stress. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives.

Subsidiary Risk — By investing in its Subsidiary, each of the Global Fund, Overseas Fund, U.S. Value Fund, and Gold Fund are indirectly exposed to the risks associated with that Subsidiary’s investments. The Subsidiaries are not registered under the 1940 Act and are not subject to all of the investor protections of the 1940 Act.

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Changes in the laws of the United States and/or the Cayman Islands could result in the inability of a Fund and/or a Subsidiary to operate as expected and could adversely affect the Fund.

Options Risk — When trading options, a Fund may incur losses or forego otherwise realizable gains if market prices do not move as expected.

Gold Risk — The Gold Fund maintains a policy of concentrating its investments in gold and gold-related issues. The other Funds may also invest in assets of this nature. Each Fund is therefore susceptible to specific political and economic risks affecting the price of gold and other precious metals including changes in U.S. and foreign regulatory policies, tax, currency or mining laws, increased environmental costs, international monetary and political policies, economic conditions within an individual country, trade imbalances, and trade or currency restrictions between countries. The price of gold, in turn, is likely to affect the market prices of securities of companies mining or processing gold, and accordingly, the value of a Fund’s investments in such securities may also be affected. Gold-related investments as a group have not performed as well as the stock market in general during periods when the U.S. dollar is strong, inflation is low and general economic conditions are stable. In addition, returns on gold-related investments have traditionally been more volatile than investments in broader equity or debt markets.

Although the risks related to investing in gold and other precious metals directly (as each of the Funds other than Fund of America are authorized to do) are similar to those of investing in precious metal finance and operating companies, as just described, there are additional considerations, including custody and transaction costs that may be higher than those involving securities. Moreover, holding gold results in no income being derived from such holding, unlike certain securities which may pay dividends or make other current payments. Although the Funds have contractual protections with respect to the credit risk of their custodian, gold held in physical form (even in a segregated account) involves the risk of delay in obtaining the assets in the case of bankruptcy or insolvency of the custodian. This could impair disposition of the assets under those circumstances. In addition, income derived from trading in gold and certain contracts and derivatives relating to gold may result in negative tax consequences. Finally, although not currently anticipated, if gold in the future were held in a book account, it would involve risks of the credit of the party holding the gold.

Diversification Risk — The Gold Fund and Fund of America are non-diversified mutual funds, and as a result, an investment in these Funds may expose your money to greater risks than if you invest in a diversified fund. These Funds may invest in a

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limited number of companies and industries, and therefore gains or losses in a particular security may have a greater impact on their share price.

High Yield Risk — The High Yield Fund maintains a policy of concentrating its investments in high yield debt instruments. The other Funds may also invest in assets of this nature. Instruments with the lowest investment grade ratings are considered to have speculative characteristics. Certain debt instruments that have not been rated also are considered by the Adviser to be equivalent to below investment grade (often referred to as “high yield” or “junk bonds”). On balance, debt instruments that are below investment grade are considered predominately speculative with respect to the issuer’s capacity to pay interest and repay principal according to the terms of the obligation and, therefore, carry greater investment risk, including the possibility of default and bankruptcy. In the event of a high yield issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield bond holders, leaving few or no assets available to repay high yield bond holders. Prices of high yield instruments are subject to extreme price fluctuations and are likely to be less marketable and more adversely affected by economic downturns than higher-quality debt instruments. Adverse publicity and investors’ perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of lower-rated debt instruments, especially in a thinly traded market. Analyses of the creditworthiness of issuers of lower-rated debt instruments may be more complex than for issuers of higher-rated instruments, and the ability of each Fund to achieve its investment objective may, to the extent of investment in lower-rated debt instruments, be more dependent upon such creditworthiness analyses than would be the case if this Fund were investing in higher-rated instruments.

Prepayment Risk — Certain instruments, especially mortgage-backed securities, for example, are susceptible to the risk of prepayment by borrowers. During a period of declining interest rates, homeowners may refinance their high rate mortgages and prepay the principal. Cash from these prepayments flows through to prepay the mortgage-backed securities, necessitating reinvestment in other assets, which may lower returns. Asset-backed securities, which are subject to risks similar to those of mortgage-backed securities, are also structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying assets may include such items as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property and receivables from credit card agreements. The market for mortgage-backed and asset-backed instruments may be volatile and limited, which may make them difficult to buy or sell.

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Currency Risk — Currency risk is the risk that foreign currencies will decline in value relative to that of the U.S. dollar and affect a Fund’s non-U.S. currencies or securities that trade in and receive revenue in non-U.S. currencies.

Changes in Debt Ratings Risk — Investments can be subject to the risk of downgrade by a ratings agency. Ratings downgrades generally affect the value of the downgraded security and are likely to result in both decreased demand for the security and an investor expectation of a higher rate of return on the security.

Bank Loan Risk — The Funds may invest in bank loans. These investments potentially expose a Fund to the credit risk of the underlying borrower, and in certain cases, of the financial institution. A Fund’s ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower. Even investments in secured loans present risk, as there is no assurance that the collateral securing the loan will be sufficient to satisfy the loan obligation. The market for bank loans may be illiquid and a Fund may have difficulty selling them. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. In some instances, other accounts managed by the Adviser or an affiliate may hold other securities issued by borrowers whose loans may be held in the Fund’s portfolio. If the credit quality of the issuer deteriorates, the Adviser may owe conflicting fiduciary duties to the Fund and other client accounts. At times, the Fund may decline to receive non-public information relating to loans, which could disadvantage the Fund relative to other investors. Alternatively, the Adviser may come into possession of material, non-public information about the issuers of loans that may be held in the Fund’s portfolio. The Adviser’s ability to trade in these loans for the account of the Fund could be limited by its possession of such information. Limitations on the Adviser’s ability to trade could have an adverse effect on the Fund by preventing the Fund from selling a loan that is experiencing a material decline in value.

Convertible Security Risk — The Funds may be susceptible to convertible security risk. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. Convertible securities may gain or lose value due to changes in the issuer’s operating results, financial condition, and credit rating and changes in interest rates and other general economic, industry and market conditions. Convertible securities generally have higher yields than common stocks of the same or similar issuers, but lower yields than comparable non-convertible securities. They may be less subject to fluctuation in value than the underlying stock because they have fixed income characteristics, and provide the potential for capital appreciation if the market price of the underlying common stock increases.

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Defaulted Securities Risk — A Fund may invest in securities of companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments involve a substantial degree of risk. In any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund may lose its entire investment, may be required to accept cash or securities with a value less than the Fund’s original investment, and/or may be required to accept payment over an extended period of time. A wide variety of considerations render the outcome of any investment in a financially distressed company uncertain, and the level of analytical sophistication, both financial and legal, necessary for successful investment in companies experiencing significant business and financial difficulties, is unusually high. There is no assurance that the Adviser will correctly evaluate the intrinsic values of the distressed companies in which the Fund may invest.

Real Estate Industry Risk — A Fund may invest in real estate investment trusts (“REITs”), which are subject to risks affecting the real estate industry. REITs are subject to substantial cash flow dependency, defaults by borrowers, self-liquidation, and the risk of failing to qualify for tax-free pass-through of income under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and/or to maintain exemptions from the 1940 Act. A Fund’s investments in REITs present certain further risks that are unique and in addition to the risks associated with investing in the real estate industry in general. The real estate industry has been subject to substantial fluctuations and declines on a local, regional and national basis in the past and may continue to be in the future.

Event-Driven Style Risk — The event-driven investment style of the Fund of America carries the additional risk that the event anticipated occurs later than expected, does not occur at all, or does not have the desired effect on the market price of the securities.

Repurchase Agreements Risk — A Fund may enter into certain types of repurchase agreements, primarily as a cash management strategy. If the seller fails to repurchase the security and the market value declines, the Fund may lose money.

Defensive Investment Strategies

The Funds have the flexibility to respond promptly to changes in market and economic conditions. For example, a defensive strategy may be warranted during periods of unfavorable market or economic conditions, including periods of market turbulence or periods when prevailing market valuations are higher than those deemed attractive under the investment criteria generally applied on behalf of the

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Funds. Under a defensive strategy, the Funds may hold cash and/or invest up to 100% of their assets in high quality debt securities or money market instruments of U.S. or foreign issuers. In such a case, a Fund may not be able to pursue, and may not achieve, its investment objective. It is impossible to predict whether, when or for how long a Fund will employ defensive strategies.

Disclosure of Portfolio Holdings

A description of the Funds’ policies and procedures with respect to disclosure of their portfolio securities is available in the Funds’ Statement of Additional Information, which is available to you without charge, see the Disclosure of Portfolio Holdings section of that document. Top position holdings (generally either top 10 or top five depending on the concentration represented), as well as certain statistical information relating to portfolio holdings such as country or sector breakdowns, for the Funds are posted to the website on a monthly basis within 30 days after the end of each month. These postings can be located behind the Portfolio tab on each Fund’s page of the website and generally are available for at least 30 days from their date of posting. Certain archived top holding postings are also available.

Fund Indices

The Average Annual Total Returns tables earlier in this Prospectus illustrate how each Fund’s average annual returns for different calendar periods compare to the returns of one of the specified indices. These indices are not available for purchase. Additional information on each is set out below.

The MSCI World Index is a widely followed, unmanaged group of stocks from 23 developed markets. The index provides total returns in U.S. dollars with net dividends reinvested. One cannot invest directly in an index.

The MSCI EAFE Index is an unmanaged total return index, reported in U.S. dollars, based on share prices and reinvested net dividends of companies from 21 developed market countries. One cannot invest directly in an index.

The Standard & Poor’s 500 Index is a widely recognized unmanaged index including a representative sample of 500 leading companies in leading sectors of the U.S. economy. Although the Standard & Poor’s 500 Index focuses on the large-cap segment of the market, with approximately 80% coverage of U.S. equities, it is also considered a proxy for the total market. The Standard & Poor’s 500 Index includes dividends reinvested. One cannot invest directly in an index.

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The FTSE Gold Mines Index Series is designed to reflect the performance of the worldwide market in the shares of companies whose principal activity is the mining of gold. The FTSE Gold Mines Index encompasses all gold mining companies that have a sustainable, attributable gold production of at least 300,000 ounces a year and that derive 51% or more of their revenue from mined gold. The Index is unmanaged, and includes dividends reinvested. One cannot invest directly in an index.

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. One cannot invest directly in an index.

The Bloomberg Barclays U.S. Corporate High Yield Index is composed of fixed-rate, publicly issued, non-investment grade debt and is unmanaged, with dividends reinvested. The index includes both corporate and non-corporate sectors. The corporate sectors are Industrial, Utility, and Finance, which include both U.S. and non-U.S. corporations. One cannot invest directly in an index.

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Fund Management

The Adviser

First Eagle Funds are managed by First Eagle Investment Management, LLC, a subsidiary of First Eagle Holdings, Inc. (“FE Holdings”). Based in New York City since 1937, FE Holdings, formerly Arnhold and S. Bleichroeder Holdings, Inc., is the successor firm to two German banking houses—Gebr. Arnhold, founded in Dresden in 1864, and S. Bleichroeder, founded in Berlin in 1803. BCP CC Holdings L.P. owns a controlling interest in FE Holdings. BCP CC Holdings L.P. is a Delaware limited partnership managed by its two members, Blackstone Capital Partners VI L.P. and Corsair IV Financial Services Capital Partners, L.P. Blackstone Capital Partners VI L.P. is indirectly controlled by The Blackstone Group L.P., (“Blackstone”) and Corsair IV Financial Services Capital Partners, L.P. is indirectly controlled by Corsair Capital LLC (“Corsair”). Investment funds managed by Blackstone and Corsair and certain co-investors own a controlling interest in FE Holdings and the Adviser through BCP CC Holdings L.P. The Adviser offers a variety of investment management services. In addition to the First Eagle Funds, its clients include other pooled vehicles, corporations, foundations, major retirement plans and high-net-worth individuals. As of January 31, 2019, the Adviser had over $96 billion under management. The Adviser’s address is 1345 Avenue of the Americas, New York, NY 10105.

Matthew McLennan and Kimball Brooker, Jr. manage Global Fund and Overseas Fund. Matthew McLennan, Kimball Brooker, Jr. and Matthew Lamphier manage U.S. Value Fund. Matthew McLennan and Thomas Kertsos manage Gold Fund. Kimball Brooker, Jr., Edward Meigs and Sean Slein manage Global Income Builder Fund. Edward Meigs and Sean Slein manage High Yield Fund. Their professional backgrounds are below.

Matthew McLennan is Head of the First Eagle Global Value Team, manages Global Fund and Overseas Fund with Mr. Brooker, manages U.S. Value Fund with Messrs. Brooker and Lamphier and manages Gold Fund with Mr. Kertsos. Mr. McLennan joined the Adviser in September 2008 after having held various senior positions with Goldman Sachs Asset Management in London and New York. While at his predecessor firm for over fourteen years, Mr. McLennan was Chief Investment Officer of a London-based investment team from 2003 to 2008 where he was responsible for managing a focused value-oriented global equity product and held positions from 1994 to 2003 that included portfolio management and investment analyst responsibilities for small-cap and mid-cap value equity portfolios.

Kimball Brooker, Jr. manages Global Fund and Overseas Fund with Mr. McLennan, manages U.S. Value Fund with Messrs. McLennan and Lamphier and manages the

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Fund Management

Global Income Builder Fund with Messrs. Meigs and Slein. Mr. Brooker joined the Adviser in January 2009 and is also a member of the First Eagle Global Value analyst team. For the three years prior to that, Mr. Brooker was Chief Investment Officer of Corsair Capital.

Matthew Lamphier manages U.S. Value Fund with Messrs. McLennan and Brooker. He joined the Adviser in May 2007 and is also a member of the First Eagle Global Value analyst team. Prior to that, Mr. Lamphier worked as a research analyst at various financial institutions, most recently, Trilogy Global Advisors.

Thomas Kertsos manages the Gold Fund with Mr. McLennan. He joined the Adviser in May 2014 and is also a member of the First Eagle Global Value analyst team. Prior to that, Mr. Kertsos worked as an analyst at Fidelity Management & Research.

Edward Meigs joined First Eagle Investment Management, LLC in 2011. Prior to serving as Portfolio Manager to the High Yield Fund with Mr. Slein and the Global Income Builder Fund with Messrs. Brooker and Slein, Mr. Meigs held various portfolio management positions at Dwight Asset Management, LLC, the investment adviser to the Predecessor Fund to the High Yield Fund, since 2001, where he managed the Predecessor Fund since its inception.

Sean Slein joined First Eagle Investment Management, LLC in 2011. Prior to serving as Portfolio Manager to the High Yield Fund with Mr. Meigs and the Global Income Builder Fund with Messrs. Brooker and Meigs, Mr. Slein held various portfolio management positions at Dwight Asset Management, LLC, the investment adviser to the Predecessor Fund to the High Yield Fund, since 2001, where he managed the Predecessor Fund since its inception.

Additional information regarding these portfolio managers’ compensation, other accounts managed and ownership of securities in the First Eagle Funds is available in the Statement of Additional Information. The portfolio managers are supported in their duties by a team of investment professionals employed by the Adviser. Also available in the Statement of Additional Information is certain background information regarding these investment professionals. The personnel responsible for the day-to-day management of Fund of America are described under “The Subadviser.”

Pursuant to an advisory agreement with the Funds, the Adviser is responsible for the management of each of the Funds’ portfolios or, in the case of Fund of America, oversees and supervises the investment management services provided by the

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Fund Management

Subadviser. In return for its investment management services, each Fund pays the Adviser a fee at the annual rate of the average daily value of its net assets as follows:

 

 

 

Management Fee

Global Fund

 

 

 

0.75

%

 

 

Overseas Fund

 

 

 

0.75

%

 

 

U.S. Value Fund

 

 

 

0.75

%*

 

 

Gold Fund

 

 

 

0.75

%

 

 

Global Income Builder Fund

 

 

 

0.75

%

 

 

High Yield Fund

 

 

 

0.70

%**

 

 

Fund of America

 

 

 

0.90

%***

 

 

 

*

 

The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.05% of the average daily value of the U.S. Value Fund’s net assets for the period through February 29, 2020. This waiver has the effect of reducing the management fee shown in the table for the term of the waiver from 0.75% to 0.70%.

 

**

 

The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.10% of the average daily value of the High Yield Fund’s net assets for the period through February 29, 2020. This waiver has the effect of reducing the management fee shown in the table for the term of the waiver from 0.70% to 0.60%.

 

***

 

0.90% of the first $2.25 billion of the Fund of America’s average daily net assets, 0.85% of the next $2.75 billion of average daily net assets, and 0.80% of average daily net assets in excess of $5 billion.

The Adviser also performs certain administrative, accounting, operations, compliance and other services on behalf of the Funds, and in accordance with its agreements with them, the Funds (other than the Global Income Builder Fund and the High Yield Fund) reimburse the Adviser for costs (including personnel, related overhead and other costs) related to those services. Those reimbursements may not exceed an annual rate of 0.05% of the value of a Fund’s average daily net assets. Each of the Global Income Builder Fund and the High Yield Fund pays a fee to the Adviser related to those services. The fee is an annual rate of 0.05% of the value of each of the Global Income Builder Fund’s and the High Yield Fund’s average daily net assets. These fees and reimbursements comprise a portion, and sometimes a substantial portion, of each Fund’s “Other Expenses” in the fees and expenses tables at the beginning of this Prospectus.

The Subadviser

Pursuant to a subadvisory agreement with the Adviser, Iridian Asset Management LLC (“Iridian” or the “Subadviser”) manages the investments of Fund of America. Iridian is a registered investment adviser whose primary office is at 276 Post Road

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Fund Management

West, Westport, CT 06880. Harold J. Levy, Eric Stone and Lukasz Thieme are the portfolio managers primarily responsible for Fund of America. Mr. Levy was, as an employee of FEIM, a portfolio manager of the Fund in its prior format as a series of the former First Eagle Funds Trust since its inception in April 1987. David L. Cohen assists Mr. Levy, Mr. Stone and Mr. Thieme and also is a portfolio manager of the Fund and, as an employee of FEIM was a portfolio manager of the Fund in its prior format as a series of the former First Eagle Funds Trust since 1989. Prior to 2002, Messrs. Levy and Cohen were employed by FEIM since 1985 and 1989, respectively. Iridian is wholly owned by entities controlled by Messrs. Levy and Cohen. Mr. Stone joined Iridian in April 2012 and for the three years prior to that, Mr. Stone worked as a portfolio manager with Plural Investments. Mr. Thieme joined Iridian in August 2007 as a research analyst and for the two years prior to that worked as an analyst with LRL/Ritchie Capital.

The fees paid to Iridian by the Adviser under the Subadvisory Agreement are based on a reference amount equal to 50% of the combined (i) fees received by the Adviser for advisory services on behalf of the Fund and (ii) fees received by the Fund’s distributor for its shareholder liaison services on behalf of the Fund. These amounts are reduced by certain direct marketing costs borne by the Adviser in connection with the Fund and are further reduced by the amount paid by the Adviser for certain administrative expenses incurred in providing services to the Fund.

Additional information regarding these portfolio managers’ compensation, other accounts managed by these portfolio managers and their ownership of securities in Fund of America is available in the Statement of Additional Information.

Approval of Advisory and Subadvisory Agreements

A discussion regarding the basis of the Funds’ Board of Trustees’ (“Board of Trustees”) approval of the Advisory and Subadvisory Agreements between the Funds and the Adviser or Subadviser is available in the Annual or Semi-Annual Report to shareholders for financial reporting periods in which the Agreements were acted upon by the Board of Trustees.

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About Your Investment

Investing requires a plan. Whether you invest on your own or use the services of a financial professional, you should create a strategy designed to meet your short-term and long-term financial goals.

How to Purchase Shares

The minimum initial and subsequent investment amounts generally required for share classes of each Fund are as follows:

 

 

 

 

 

Minimum Investments

 

Initial*

 

Subsequent

First Eagle Global Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

 

 

 

 

 

First Eagle Overseas Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

See footnotes on page 80.

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About Your Investment

 

 

 

 

 

Minimum Investments

 

Initial*

 

Subsequent

First Eagle U.S. Value Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

 

 

 

 

 

First Eagle Gold Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

 

 

 

 

 

First Eagle Global Income Builder Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

See footnotes on next page.

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About Your Investment

 

 

 

 

 

Minimum Investments

 

Initial*

 

Subsequent

First Eagle High Yield Fund

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

 

 

 

 

 

First Eagle Fund of America

Class A

 

 

 

$2,500

 

 

 

 

$100

 

 

Class C

 

 

 

2,500

 

 

 

 

100

 

 

Class Y***

 

 

 

2,500

 

 

 

 

100

 

 

Class I

 

 

 

1,000,000

**

 

 

 

 

100

 

 

Class R3

 

 

 

None

 

 

 

 

None

 

 

Class R4

 

 

 

None

 

 

 

 

None

 

 

Class R5

 

 

 

None

 

 

 

 

None

 

 

Class R6

 

 

 

None

 

 

 

 

None

 

 

 

*

 

Minimum initial investment is $1,000 for Class A and Class C shares in an individual retirement account (instead of $2,500 as is otherwise required).

 

**

 

The current aggregate net asset value of a shareholder’s accounts in any of the Funds may qualify for purposes of meeting the initial minimum investment amount for those Funds which have Class I shares. The minimum may be waived for Class I shares for certain wrap fee programs if approved by FEF Distributors, LLC and for certain intermediaries that have entered into a relevant agreement with FEF Distributors, LLC. With respect to the High Yield Fund, the minimum also will be waived for certain legacy investors who were invested in the Predecessor Fund to the High Yield Fund.

 

***

 

Closed to new investors, subject to limited exceptions described in the About Your Investment—Fund of America Class Y Shares (closed to new investors) section.

80First Eagle Funds  |  Prospectus  |  March 1, 2019