Prospectus

 

March 1, 2023

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

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 Income 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 Rising Dividend Fund
(formerly named 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 R3

 

EARFX

Class R4

 

FIVRX

     

Class R4

 

EAFRX

Class R5

 

FERVX

     

Class R5

 

FERFX

Class R6

 

FEVRX

     

Class R6

 

FEFRX

 

 

 

   

 

 

 

 

First Eagle Gold Fund

     

First Eagle Small Cap Opportunity Fund

Class A

 

SGGDX

     

Class A

 

FESAX

Class C

 

FEGOX

     

Class I

 

FESCX

Class I

 

FEGIX

     

Class R6

 

FESRX

Class R3

 

EAURX

   

 

 

 

 

Class R4

 

FIURX

     

First Eagle U.S. Smid Cap Opportunity Fund

Class R5

 

FERUX

     

Class A

 

FEMAX

Class R6

 

FEURX

     

Class I

 

FESMX

 

 

 

     

Class R6

 

FEXRX

 

 

 

   

 

 

 

 

 

     

First Eagle Global Real Assets Fund

 

 

 

     

Class A

 

FERAX

 

 

 

     

Class I

 

FEREX

 

 

 

     

Class R6

 

FERRX

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 (the “Adviser”). The Trust consists of ten 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 Income Fund, First Eagle Rising Dividend Fund (formerly named First Eagle Fund of America), First Eagle Small Cap Opportunity Fund, First Eagle U.S. Smid Cap Opportunity Fund and First Eagle Global Real Assets Fund. This prospectus describes Fund shares designated as Classes A, C, I, R3, R4, R5 and R6.


 

Table of Contents

 

 

 

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

First Eagle Global Fund

 

 

 

4

 

First Eagle Overseas Fund

 

 

 

14

 

First Eagle U.S. Value Fund

 

 

 

25

 

First Eagle Gold Fund

 

 

 

35

 

First Eagle Global Income Builder Fund

 

 

 

45

 

First Eagle High Income Fund

 

 

 

58

 

First Eagle Rising Dividend Fund (formerly named First Eagle Fund of America)

 

 

 

69

 

First Eagle Small Cap Opportunity Fund

 

 

 

81

 

First Eagle U.S. Smid Cap Opportunity Fund

 

 

 

90

 

First Eagle Global Real Assets Fund

 

 

 

97

 

Information about Taxes and Financial Intermediaries

 

 

 

110

 

More Information About the Funds’ Investments

 

 

 

111

 

Investment Objectives and Strategies of the Funds

 

 

 

111

 

Principal Investment Risks

 

 

 

119

 

Defensive Investment Strategies

 

 

 

145

 

Disclosure of Portfolio Holdings

 

 

 

145

 

Fund Indices

 

 

 

146

 

Fund Management

 

 

 

148

 

The Adviser

 

 

 

148

 

Approval of Advisory Agreement

 

 

 

154

 

About Your Investment

 

 

 

155

 

How to Purchase Shares

 

 

 

155

 

Anti-Money Laundering Compliance

 

 

 

159

 

How Fund Share Prices Are Calculated

 

 

 

159

 

Purchases Through Dealers and Financial Intermediaries

 

 

 

160

 

Public Offering Price of Class A Shares

 

 

 

162

 

Reducing the Sales Charge

 

 

 

164

 

Purchasing Level-Load Class C Shares

 

 

 

167

 

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

 

 

 

168

 

Distribution and/or Shareholder Services Expenses

 

 

 

169

 

Bookshare Account Plan

 

 

 

172

 

Electronic Delivery

 

 

 

172

 

Where To Send Your Application

 

 

 

173

 

Minimum Account Size

 

 

 

173

 

Automatic Investment Program

 

 

 

173

 

Contractual Arrangements

 

 

 

174

 

Once You Become a Shareholder

 

 

 

175

 

Exchanging Your Shares

 

 

 

175

 

Automatic Exchange Program

 

 

 

176

 

Conversion

 

 

 

176

 

Dividend Direction Plan

 

 

 

177

 

Redemption of Shares

 

 

 

177

 

Short-Term Trading Policies

 

 

 

179

 

Telephone Privileges

 

 

 

180

 

Systematic Withdrawal Plan

 

 

 

181

 

Retirement Plans

 

 

 

181

 

Information Regarding State Escheatment Laws

 

 

 

182

 

Information on Dividends, Distributions and Taxes

 

 

 

183

 

Derivative Actions Brought on Behalf of the Trust

 

 

185

 

Privacy Notice for Individual Shareholders

 

 

187

 

How to Reach First Eagle Funds

 

 

192

 

Financial Highlights

 

 

193

 

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” or the “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, hold and sell shares of the Global Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 155 and 162, 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

 

 

 

 

0.12

 

 

 

 

0.11

   

 

 

0.10

   

 

 

0.22

   

 

 

0.36

   

 

 

0.04

 

Total Annual Operating Expenses (%)

     

1.11

       

1.87

       

0.86

   

 

1.20

   

 

1.07

   

 

 

1.11

   

 

0.79

 
 

*

 

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.

4First Eagle Funds  |  Prospectus  |  March 1, 2023


 

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

 

 

 

$290

 

 

 

 

$588

 

 

 

 

$1,011

 

 

 

 

$2,190

 

 

Held

 

 

 

$190

 

 

 

 

$588

 

 

 

 

$1,011

 

 

 

 

$2,190

 

Class I

Sold or Held

 

 

 

$88

 

 

 

 

$274

 

 

 

 

$477

 

 

 

 

$1,061

 

Class R3

Sold or Held

 

 

 

$122

 

 

 

 

$381

 

 

 

 

$660

 

 

 

 

$1,455

 

Class R4

Sold or Held

 

 

 

$109

 

 

 

 

$340

 

 

 

 

$590

 

 

 

 

$1,306

 

Class R5

Sold or Held

 

 

 

$113

 

 

 

 

$353

 

 

 

 

$612

 

 

 

 

$1,352

 

Class R6

Sold or Held

 

 

 

$81

 

 

 

 

$252

 

 

 

 

$439

 

 

 

 

$978

 

 

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 above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 10.87% of the average value of its portfolio.

First Eagle Funds  |  Prospectus  |  March 1, 20235


 

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 debt instruments (e.g., notes and bonds) 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 (including American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts). 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, 2023


 

Global Fund

For more information about the Global Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

Equity Risk — The value of the Fund’s portfolio holdings may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time. Equity securities generally have greater price volatility than debt securities.

 

 

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.

First Eagle Funds  |  Prospectus  |  March 1, 20237


 

Summary Information about the Global Fund

 

 

Foreign Investment Risk — The Fund may invest in foreign investments (including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)). Foreign investments, which can be denominated in any applicable foreign currency, are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. While depositary receipts provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs, GDRs and EDRs continue to be subject to many of the risks associated with investing directly in foreign investments.

 

 

Geographic Investment Risk — To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. While the Fund reserves the right to dynamically allocate its assets across countries and regions, listed below are some of the geographies to which the Fund has significant exposure as of the date of this Prospectus.

European Risk — The Fund’s investments may subject it to the risks associated with investing in the European markets, including the risks associated with the United Kingdom’s exit from the European Union (“Brexit”) and the war in Ukraine. Investments in a single region, even though representing a number of different countries within the region, may be affected by common economic forces and other factors. Further, political or economic disruptions in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund’s holdings. The impact of Brexit on the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the European Union, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

Japan Risk — The Japanese economy is heavily dependent upon international trade and may be subject to considerable degrees of economic, political and social instability, which could negatively affect the Fund. Japan has also experienced natural disasters, such as earthquakes and tidal waves, of varying degrees of severity, which also could negatively affect the Fund.

8First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Fund

 

 

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.

 

 

Large-Size Company Risk — The Fund may invest in larger, more established companies, the securities of which may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Larger companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. The Fund considers large companies to be companies with market capitalizations of $10 billion or greater.

 

 

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. 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.

 

 

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 “high yield” or “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. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there

First Eagle Funds  |  Prospectus  |  March 1, 20239


 

Summary Information about the Global Fund

 

 

 

is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

 

 

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. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity. In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

 

 

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.

 

 

Value Investment Strategy Risk — 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented. In such an event, the Fund’s investment returns would be expected to lag relative to returns associated with more growth-oriented investment strategies. Investing in or having exposure to “value” securities presents the risk that such securities may never reach what the Adviser believes are their full market values.

 

 

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.

10First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Fund

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 the periods shown compare with those of one or more broad measures of market performance, which have characteristics relevant to the Fund’s investment strategy. The index is described in the Fund Indices section. 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 U.S. 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.firsteagle.com/global-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 2020

 

14.73%

 

 

 

First Quarter 2020

 

-19.50%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

First Eagle Funds  |  Prospectus  |  March 1, 202311


 

Summary Information about the Global 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 only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(1/17/18)

 

Class R5
Inception
(7/29/19)

 

Class R6
Inception
(3/1/17)

First Eagle Global Fund

Class A Shares

Return Before Taxes

 

 

-11.16%

   

 

 

3.49%

   

 

 

5.79%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions

 

 

-11.99%

   

 

 

2.32%

   

 

 

4.70%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-5.99%

   

 

 

2.61%

   

 

 

4.46%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-8.08%

   

 

 

3.77%

   

 

 

5.54%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes

 

 

-6.25%

   

 

 

4.83%

   

 

 

6.61%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class R3 Shares

Return Before Taxes

 

 

-6.58%

   

 

 

 

 

 

 

   

 

 

4.80%

   

 

 

 

 

 

 

 

 

 

 

 

Class R4 Shares

Return Before Taxes

 

 

-6.48%

   

 

 

 

 

 

 

 

 

 

 

   

 

 

3.90%

   

 

 

 

 

 

 

 

Class R5 Shares

Return Before Taxes

 

 

-6.51%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

4.50%

   

 

 

 

Class R6 Shares

Return Before Taxes

 

 

-6.19%

   

 

 

4.90%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

5.60%

 

MSCI World Index (reflects no deduction for fees or expenses, but reflects net of withholding taxes)

 

 

-18.14%

   

 

6.14%

   

 

8.85%

   

 

6.62%

   

 

6.14%

   

 

6.86%

   

 

8.00%

 

12First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Fund

Our Management Team

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

Matthew McLennan, Kimball Brooker, Jr., Manish Gupta and Julien Albertini serve as the Fund’s Portfolio Managers. Matthew McLennan and Kimball Brooker, Jr. have served as the Fund’s Portfolio Managers since September 2008 and February 2011, respectively. Manish Gupta and Julien Albertini have served as the Fund’s Portfolio Managers since May 2021.

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 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, 202313


 

 

First Eagle Overseas Fund

Summary Information

Investment Objective

First Eagle Overseas Fund (“Overseas Fund” or the “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, hold and sell shares of the Overseas Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 155 and 162, 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

   

 

 

0.14

   

 

 

0.14

   

 

 

0.30

   

 

 

0.16

   

 

 

0.42

   

 

 

0.05

 

Total Annual Operating Expenses (%)

 

 

1.15

   

 

 

1.89

   

 

0.89

   

 

1.40

   

 

1.01

   

 

1.17

   

 

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.

14First Eagle Funds  |  Prospectus  |  March 1, 2023


 

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

 

 

 

$292

 

 

 

 

$594

 

 

 

 

$1,021

 

 

 

 

$2,212

 

 

Held

 

 

 

$192

 

 

 

 

$594

 

 

 

 

$1,021

 

 

 

 

$2,212

 

Class I

Sold or Held

 

 

 

$91

 

 

 

 

$284

 

 

 

 

$493

 

 

 

 

$1,096

 

Class R3

Sold or Held

 

 

 

$143

 

 

 

 

$443

 

 

 

 

$766

 

 

 

 

$1,680

 

Class R4

Sold or Held

 

 

 

$103

 

 

 

 

$322

 

 

 

 

$558

 

 

 

 

$1,236

 

Class R5

Sold or Held

 

 

 

$119

 

 

 

 

$372

 

 

 

 

$644

 

 

 

 

$1,420

 

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 above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 8.99% of the average value of its portfolio.

Principal Investment Strategies

To achieve its objective of long-term capital growth, the Overseas Fund will invest primarily in equity securities (e.g., common stocks) of non-U.S.

First Eagle Funds  |  Prospectus  |  March 1, 202315


 

Summary Information about the Overseas Fund

companies, the majority of which are traded in mature markets (for example, Canada, 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 (including American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts) 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 (e.g., notes and bonds). The Fund may invest in debt instruments 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 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).

For more information about the Overseas Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

16First Eagle Funds  |  Prospectus  |  March 1, 2023


 

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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

Equity Risk — The value of the Fund’s portfolio holdings may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time. Equity securities generally have greater price volatility than debt securities.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments (including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)). Foreign investments, which can be denominated in any applicable foreign currency, are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. While depositary receipts provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs, GDRs and EDRs

First Eagle Funds  |  Prospectus  |  March 1, 202317


 

Summary Information about the Overseas Fund

 

 

 

continue to be subject to many of the risks associated with investing directly in foreign investments.

 

 

Geographic Investment Risk — To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. While the Fund reserves the right to dynamically allocate its assets across countries and regions, listed below are some of the geographies to which the Fund has significant exposure as of the date of this Prospectus.

     

Canada Risk — The Canadian economy is susceptible to adverse changes in certain commodities markets, including those related to the mining and agricultural industries. It is also heavily dependent on trading with key partners. Any reduction in this trading may adversely affect the Canadian economy.

     

European Risk — The Fund’s investments may subject it to the risks associated with investing in the European markets, including the risks associated with the United Kingdom’s exit from the European Union (“Brexit”) and the war in Ukraine. Investments in a single region, even though representing a number of different countries within the region, may be affected by common economic forces and other factors. Further, political or economic disruptions in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund’s holdings. The impact of Brexit on the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the European Union, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

     

Japan Risk — The Japanese economy is heavily dependent upon international trade and may be subject to considerable degrees of economic, political and social instability, which could negatively affect the Fund. Japan has also experienced natural disasters, such as earthquakes and tidal waves, of varying degrees of severity, which also could negatively affect the Fund.

 

 

Emerging Market Risk — When the Fund invests in emerging market securities (generally meaning those associated with less developed markets),

18First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Overseas Fund

 

 

 

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.

 

 

Large-Size Company Risk — The Fund may invest in larger, more established companies, the securities of which may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Larger companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. The Fund considers large companies to be companies with market capitalizations of $10 billion or greater.

 

 

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 “high yield” or “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. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there

First Eagle Funds  |  Prospectus  |  March 1, 202319


 

Summary Information about the Overseas Fund

 

 

 

is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

 

 

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. 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.

 

 

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. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity. In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

 

 

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.

 

 

Value Investment Strategy Risk — 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented. In such an event, the Fund’s investment returns would be expected to lag relative to returns associated with more growth-oriented investment strategies. Investing in or having exposure to “value” securities presents the risk that such securities may never reach what the Adviser believes are their full market values.

20First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Overseas Fund

 

 

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.

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 the periods shown compare with those of one or more broad measures of market performance, which have characteristics relevant to the Fund’s investment strategy. The index is described in the Fund Indices section. 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 U.S. 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.firsteagle.com/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.

First Eagle Funds  |  Prospectus  |  March 1, 202321


 

Summary Information about the Overseas Fund

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2020

 

12.99%

 

 

 

First Quarter 2020

 

-17.70%

 

 

 

 

 

 

*

 

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 only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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.

22First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Overseas Fund

Average Annual Total Returns as of December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(1/17/18)

 

Class R5
Inception
(3/11/19)

 

Class R6
Inception
(3/1/17)

First Eagle Overseas Fund

Class A Shares

Return Before Taxes

 

 

-12.69%

   

 

 

0.67%

   

 

 

3.47%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions

 

 

-13.40%

   

 

-0.17%

   

 

 

2.59%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-6.99%

   

 

 

0.50%

   

 

 

2.67%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-9.69%

   

 

 

0.96%

   

 

 

3.24%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes

 

 

-7.89%

   

 

 

1.99%

   

 

 

4.29%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class R3 Shares

Return Before Taxes

 

 

-8.38%

   

 

 

 

 

 

 

   

 

 

1.75%

   

 

 

 

 

 

 

 

 

 

 

 

Class R4 Shares

Return Before Taxes

 

 

-7.98%

   

 

 

 

 

 

 

 

 

 

 

   

 

 

1.11%

   

 

 

 

 

 

 

 

Class R5 Shares

Return Before Taxes

 

 

-8.19%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

3.44%

   

 

 

 

Class R6 Shares

Return Before Taxes

 

 

-7.78%

   

 

 

2.07%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

3.28%

 

MSCI EAFE Index (reflects no deduction for fees or expenses, but reflects net of withholding taxes)

 

 

-14.45%

   

 

1.54%

   

 

4.67%

   

 

1.50%

   

 

1.54%

   

 

3.61%

   

 

4.51%

 

Our Management Team

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

Matthew McLennan, Kimball Brooker, Jr., Christian Heck and Alan Barr serve as the Fund’s Portfolio Managers. Matthew McLennan and Kimball Brooker, Jr. have served as the Fund’s Portfolio Managers since September 2008 and March 2010, respectively. Christian Heck and Alan Barr have served as the Fund’s Portfolio Managers since May 2021.

First Eagle Funds  |  Prospectus  |  March 1, 202323


 

Summary Information about the Overseas Fund

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.

24First Eagle Funds  |  Prospectus  |  March 1, 2023


 

 

First Eagle U.S. Value Fund

Summary Information

Investment Objective

First Eagle U.S. Value Fund (“U.S. Value Fund” or the ‘‘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, hold and sell shares of the U.S. Value Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 155 and 162, 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

 

 

 

0.16

   

 

 

0.17

   

 

 

0.13

   

 

 

0.24

   

 

 

0.29

   

 

 

0.27

   

 

 

0.08

 

Total Annual Operating Expenses (%)

     

1.16

   

 

1.92

   

 

0.88

   

 

1.34

   

 

1.14

   

 

1.02

   

 

0.83

 

Fee Waiver**

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

 

 

 

-0.05

 

Total Annual Operating Expenses After Fee Waiver (%)

     

1.11

   

 

1.87

   

 

0.83

   

 

1.29

   

 

1.09

   

 

0.97

   

 

0.78

 

First Eagle Funds  |  Prospectus  |  March 1, 202325


 

Summary Information about the 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, 2024. This agreement may not be terminated during its term without the consent of the Board of Trustees. 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%.

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

 

 

 

$608

 

 

 

 

$845

 

 

 

 

$1,102

 

 

 

 

$1,834

 

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

Sold

 

 

 

$290

 

 

 

 

$598

 

 

 

 

$1,032

 

 

 

 

$2,239

 

 

Held

 

 

 

$190

 

 

 

 

$598

 

 

 

 

$1,032

 

 

 

 

$2,239

 

Class I

Sold or Held

 

 

 

$85

 

 

 

 

$276

 

 

 

 

$483

 

 

 

 

$1,080

 

Class R3

Sold or Held

 

 

 

$131

 

 

 

 

$420

 

 

 

 

$729

 

 

 

 

$1,608

 

Class R4

Sold or Held

 

 

 

$111

 

 

 

 

$357

 

 

 

 

$623

 

 

 

 

$1,382

 

Class R5

Sold or Held

 

 

 

$99

 

 

 

 

$320

 

 

 

 

$558

 

 

 

 

$1,243

 

Class R6

Sold or Held

 

 

 

$80

 

 

 

 

$260

 

 

 

 

$456

 

 

 

 

$1,021

 

 

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

26First Eagle Funds  |  Prospectus  |  March 1, 2023


 

U.S. Value Fund

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 above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 10.33% 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 (e.g., common stocks) and debt instruments (e.g., notes and bonds) and may invest to a lesser extent in securities of non-U.S. issuers (including American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts). 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 the laws of the Cayman Islands as an exempted company. Generally, the Subsidiary will invest in commodities and related

First Eagle Funds  |  Prospectus  |  March 1, 202327


 

Summary Information about the U.S. Value Fund

instruments (primarily gold bullion and other precious metals and related futures contracts).

For more information about the U.S. Value Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

Equity Risk — The value of the Fund’s portfolio holdings may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time. Equity securities generally have greater price volatility than debt securities.

 

 

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

28First Eagle Funds  |  Prospectus  |  March 1, 2023


 

U.S. Value Fund

 

 

 

due. The Fund may invest in debt instruments that are below investment grade, commonly known as “high yield” or “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. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

 

 

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.

 

 

Large-Size Company Risk — The Fund may invest in larger, more established companies, the securities of which may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Larger companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. The Fund considers large companies to be companies with market capitalizations of $10 billion or greater.

 

 

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. 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-

First Eagle Funds  |  Prospectus  |  March 1, 202329


 

Summary Information about the U.S. Value Fund

 

 

 

related investments have traditionally been more volatile than investments in broader equity or debt markets.

 

 

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 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. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity. In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments (including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)). Foreign investments, which can be denominated in any applicable foreign currency, are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. While depositary receipts provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs, GDRs and EDRs continue to be subject to many of the risks associated with investing directly in foreign investments.

 

 

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.

 

 

Value Investment Strategy Risk — 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented. In such an event, the Fund’s investment returns would be expected to lag relative to returns associated with more growth-oriented investment strategies. Investing in or having exposure to “value” securities presents the risk that such securities may never reach what the Adviser believes are their full market values.

30First Eagle Funds  |  Prospectus  |  March 1, 2023


 

U.S. Value Fund

 

 

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 the periods shown compare with those of one or more broad measures of market performance, which have characteristics relevant to the Fund’s investment strategy. The index is described in the Fund Indices section. 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 U.S. 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.firsteagle.com/us-value-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.

First Eagle Funds  |  Prospectus  |  March 1, 202331


 

Summary Information about the U.S. Value Fund

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2020

 

14.53%

 

 

 

First Quarter 2020

 

-21.57%

 

 

 

 

 

 

*

 

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 only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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.

32First Eagle Funds  |  Prospectus  |  March 1, 2023


 

U.S. Value Fund

Average Annual Total Returns as of December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(7/29/19)

 

Class R5
Inception
(7/29/19)

 

Class R6
Inception
(3/1/17)

First Eagle U.S. Value Fund

Class A Shares

Return Before Taxes

 

 

-10.41%

   

 

 

4.91%

   

 

 

7.04%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions

 

 

-12.00%

   

 

 

2.94%

   

 

 

5.23%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-4.99%

   

 

 

3.63%

   

 

 

5.36%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-7.27%

   

 

 

5.19%

   

 

 

6.77%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes 

 

 

-5.47%

   

 

 

6.29%

   

 

 

7.88%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class R3 Shares

Return Before Taxes

 

 

-5.92%

   

 

 

 

 

 

 

   

 

 

6.32%

   

 

 

 

 

 

 

 

 

 

 

 

Class R4 Shares

Return Before Taxes

 

 

-5.78%

   

 

 

 

 

 

 

   

 

 

   

 

 

5.90%

   

 

 

 

 

 

 

 

Class R5 Shares

Return Before Taxes

 

 

-5.56%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

6.09%

   

 

 

 

Class R6 Shares

Return Before Taxes

 

 

-5.37%

   

 

 

6.34%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

6.78%

 

S&P 500 Index (reflects no deduction for fees, expenses or taxes)

 

 

-18.11%

   

 

9.42%

   

 

12.56%

   

 

10.22%

   

 

9.73%

   

 

9.73%

   

 

10.65%

 

First Eagle Funds  |  Prospectus  |  March 1, 202333


 

Summary Information about the U.S. Value Fund

Our Management Team

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

Matthew McLennan, Kimball Brooker, Jr., Matthew Lamphier and Mark Wright serve as the Fund’s Portfolio Managers. 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. Mark Wright has served as the Fund’s Portfolio Manager since May 2021.

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 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.

34First Eagle Funds  |  Prospectus  |  March 1, 2023


 

 

First Eagle Gold Fund

Summary Information

Investment Objective

First Eagle Gold Fund (“Gold Fund” or the “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, hold and sell shares of the Gold Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 155 and 162, 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

 

 

 

0.19

   

 

 

0.18

   

 

 

0.19

   

 

 

0.35

   

 

 

0.25

   

 

 

0.24

   

 

 

0.10

 

Total Annual Operating Expenses (%)

 

 

1.19

   

 

1.93

   

 

0.94

   

 

1.45

   

 

1.10

   

 

0.99

   

 

 

0.85

 
 

*

 

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.

First Eagle Funds  |  Prospectus  |  March 1, 202335


 

Summary Information about the Gold Fund

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

 

 

 

$615

 

 

 

 

$859

 

 

 

 

$1,122

 

 

 

 

$1,871

 

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

 

 

 

$96

 

 

 

 

$300

 

 

 

 

$520

 

 

 

 

$1,155

 

Class R3

Sold or Held

 

 

 

$148

 

 

 

 

$459

 

 

 

 

$792

 

 

 

 

$1,735

 

Class R4

Sold or Held

 

 

 

$112

 

 

 

 

$350

 

 

 

 

$606

 

 

 

 

$1,340

 

Class R5

Sold or Held

 

 

 

$101

 

 

 

 

$315

 

 

 

 

$547

 

 

 

 

$1,213

 

Class R6

Sold or Held

 

 

 

$87

 

 

 

 

$271

 

 

 

 

$471

 

 

 

 

$1,049

 

 

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 above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 17.78% 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

36First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Gold Fund

net assets (plus any borrowings for investment purposes) in gold and/or securities (which may include both equity (e.g., common stocks) and, to a limited extent, debt instruments (e.g., notes and bonds)) 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 anticipates it will allocate a substantial amount of its assets to foreign investments (including American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts). 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 Gold Fund is a “non-diversified” fund. It generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.

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 derivatives that are applicable to the Fund’s transactions in

First Eagle Funds  |  Prospectus  |  March 1, 202337


 

Summary Information about the Gold Fund

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.

For more information about the Gold Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

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. 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

38First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Gold Fund

 

 

 

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.

 

 

Equity Risk — The value of the Fund’s portfolio holdings may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time. Equity securities generally have greater price volatility than debt securities.

 

 

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. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity. In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments (including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)). Foreign investments, which can be denominated in any applicable foreign currency, are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. While depositary receipts provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs, GDRs and EDRs continue to be subject to many of the risks associated with investing directly in foreign investments. 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 invested in one or more foreign countries, including emerging markets.

 

 

Geographic Investment Risk — To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. While the Fund reserves the right to dynamically allocate

First Eagle Funds  |  Prospectus  |  March 1, 202339


 

Summary Information about the Gold Fund

 

 

 

its assets across countries and regions, listed below are some of the geographies to which the Fund has significant exposure as of the date of this Prospectus.

     

Brazil Risk — Brazil has experienced economic instability resulting from, among other things, political corruption, political instability, periods of very high inflation, persistent structural public sector deficits and significant devaluations of its currency, leading also to a high degree of price volatility in both the Brazilian equity and foreign currency markets. Brazilian companies may also be adversely affected by high interest and unemployment rates and fluctuations in commodity prices.

     

Canada Risk — The Canadian economy is susceptible to adverse changes in certain commodities markets, including those related to the mining and agricultural industries. It is also heavily dependent on trading with key partners. Any reduction in this trading may adversely affect the Canadian economy.

 

 

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, 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.

 

 

Large-Size Company Risk — The Fund may invest in larger, more established companies, the securities of which may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Larger companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. The Fund considers large companies to be companies with market capitalizations of $10 billion or greater.

 

 

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 “high yield” or “junk” bonds, which are considered speculative, and carry a higher risk of default. In addition, fluctuations in

40First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Gold Fund

 

 

 

interest rates can affect the value of debt instruments held by the Fund. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

 

 

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 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 the periods shown compare with those of one or more broad measures of market performance, which have characteristics relevant to the Fund’s investment strategy. The indices are described in the Fund Indices section. As with all mutual funds, past performance is not an indication of future performance (before or after taxes).

First Eagle Funds  |  Prospectus  |  March 1, 202341


 

Summary Information about the Gold Fund

After-tax returns are calculated using the highest individual U.S. 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.firsteagle.com/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*

Second Quarter 2020

 

39.99%

 

 

 

Second Quarter 2013

 

-32.24%

 

 

 

 

 

 

*

 

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 only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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.

42First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Gold Fund

Average Annual Total Returns as of December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(7/29/19)

 

Class R5
Inception
(7/29/19)

 

Class R6
Inception
(3/1/17)

First Eagle Gold Fund

Class A Shares

Return Before Taxes

 

 

-6.48%

   

 

 

5.42%

   

 

-2.15%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions

 

 

-6.48%

   

 

 

5.31%

   

 

-2.20%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-3.83%

   

 

 

4.23%

   

 

-1.60%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-3.30%

   

 

 

5.70%

   

 

-2.40%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes

 

 

-1.31%

   

 

 

6.81%

   

 

-1.37%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class R3 Shares

Return Before Taxes

 

 

-1.82%

   

 

 

 

 

 

 

   

 

 

8.31%

   

 

 

 

 

 

 

 

 

 

 

 

Class R4 Shares

Return Before Taxes

 

 

-1.51%

   

 

 

 

 

 

 

 

 

 

 

   

 

 

7.89%

   

 

 

 

 

 

 

 

Class R5 Shares

Return Before Taxes

 

 

-1.39%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

7.93%

   

 

 

 

Class R6 Shares

Return Before Taxes

 

 

-1.26%

   

 

 

6.88%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

5.62%

 

MSCI World Index (reflects no deduction for fees or expenses, but reflects net of withholding taxes)

 

 

-18.14%

   

 

6.14%

   

 

8.85%

   

 

6.62%

   

 

6.86%

   

 

6.86%

   

 

8.00%

 

 

FTSE Gold Mines Index (reflects no deduction for fees, expenses or taxes)

 

 

-15.47%

   

 

2.63%

   

 

-4.69%

   

 

4.15%

   

 

0.85%

   

 

0.85%

   

 

2.15%

 

Our Management Team

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

Thomas Kertsos serves as the Fund’s Portfolio Manager. Max Belmont serves as the Fund’s Associate Portfolio Manager. Thomas Kertsos has served as the Fund’s Portfolio Manager since March 2016. Max Belmont has served as the Fund’s Associate Portfolio Manager since March 2021.

First Eagle Funds  |  Prospectus  |  March 1, 202343


 

Summary Information about the Gold Fund

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.

44First Eagle Funds  |  Prospectus  |  March 1, 2023


 

 

First Eagle Global Income Builder Fund

Summary Information

Investment Objective

First Eagle Global Income Builder Fund (“Global Income Builder Fund” or the “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, hold and sell shares of the Global Income Builder Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 155 and 162, 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

 

 

 

0.16

   

 

 

0.19

 

 

 

 

0.18

   

 

 

0.23

   

 

 

0.55

   

 

 

0.42

   

 

 

0.12

 

Total Annual Operating Expenses (%)

 

 

1.16

   

 

 

1.94

       

0.93

   

 

1.33

   

 

1.40

   

 

1.17

   

 

 

0.87

 
 

*

 

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.

First Eagle Funds  |  Prospectus  |  March 1, 202345


 

Summary Information about the 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

 

 

 

$612

 

 

 

 

$850

 

 

 

 

$1,106

 

 

 

 

$1,839

 

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

Sold

 

 

 

$297

 

 

 

 

$609

 

 

 

 

$1,047

 

 

 

 

$2,264

 

 

Held

 

 

 

$197

 

 

 

 

$609

 

 

 

 

$1,047

 

 

 

 

$2,264

 

Class I

Sold or Held

 

 

 

$95

 

 

 

 

$296

 

 

 

 

$515

 

 

 

 

$1,143

 

Class R3

Sold or Held

 

 

 

$135

 

 

 

 

$421

 

 

 

 

$729

 

 

 

 

$1,601

 

Class R4

Sold or Held

 

 

 

$143

 

 

 

 

$443

 

 

 

 

$766

 

 

 

 

$1,680

 

Class R5

Sold or Held

 

 

 

$119

 

 

 

 

$372

 

 

 

 

$644

 

 

 

 

$1,420

 

Class R6

Sold or Held

 

 

 

$89

 

 

 

 

$278

 

 

 

 

$482

 

 

 

 

$1,073

 

 

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 above, affect the Fund’s performance. During the Fund’s most recent fiscal year, the Fund’s portfolio turnover rate was 13.76% of the average value of its portfolio.

46First Eagle Funds  |  Prospectus  |  March 1, 2023


 

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. The Fund may also invest in 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 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 (including American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts). 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

First Eagle Funds  |  Prospectus  |  March 1, 202347


 

Summary Information about the Global Income Builder Fund

sought even for what appear to be 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. 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.

For more information about the Global Income Builder Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

Equity Risk — The value of the Fund’s portfolio holdings may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a

48First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Income Builder Fund

 

 

 

whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time. Equity securities generally have greater price volatility than debt securities.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments (including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)). Foreign investments, which can be denominated in any applicable foreign currency, are susceptible to less politically, economically and socially stable environments, foreign currency and exchange rate changes, and adverse changes to government regulations. While depositary receipts provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs, GDRs and EDRs continue to be subject to many of the risks associated with investing directly in foreign investments.

 

 

Geographic Investment Risk — To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. While the Fund is not required to allocate its investments in any set percentages to any particular countries, it normally will invest in at least three countries (one of which may be the United States). The Fund reserves the right to dynamically allocate its assets across countries and regions. Listed below are some of the geographies to which the Fund has significant exposure as of the date of this Prospectus.

     

European Risk — The Fund’s investments may subject it to the risks associated with investing in the European markets, including the risks associated with the United Kingdom’s exit from the European Union (“Brexit”) and the war in Ukraine. Investments in a single region, even though representing a number of different countries within the region, may be affected by common economic forces and other factors. Further, political or economic disruptions in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund’s holdings. The impact of Brexit on the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the European Union, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

First Eagle Funds  |  Prospectus  |  March 1, 202349


 

Summary Information about the Global Income Builder Fund

 

 

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 “high yield” or “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. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

 

 

Corporate Bond Risk — The market value of a corporate bond may be affected by factors directly related to the issuer and by factors not directly related to the issuer, such as general market liquidity. The market value of corporate bonds generally may be expected to rise and fall inversely with interest rates, and as a result, corporate bonds may lose value in a rising-rate environment.

 

 

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.

50First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Income Builder Fund

 

 

Dividend Risk — There is no guarantee that issuers of the securities held by the Fund will declare dividends in the future or that, if declared, they will be paid, or that they will either remain at current levels or increase over time.

 

 

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.

 

 

High Yield Risk — The Fund intends to invest in debt instruments that are below investment grade, commonly known as “high yield” or “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. 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.

 

 

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 as either a hedge or for investment purposes. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity.

First Eagle Funds  |  Prospectus  |  March 1, 202351


 

Summary Information about the Global Income Builder Fund

 

 

 

In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

 

 

Options Risk — The Fund may engage in various options transactions in which the Fund typically seeks to limit investment risk 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.

 

 

Swaps Risk — Swap agreements (including credit default and index) are derivatives contracts where the parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. In addition to the risks generally applicable to derivatives, risks associated with swap agreements include adverse changes in the returns of the underlying instruments, failure of the counterparties to perform under the agreement’s terms and the possible lack of liquidity with respect to the agreements.

 

 

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.

 

 

Large-Size Company Risk — The Fund may invest in larger, more established companies, the securities of which may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Larger companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. The Fund considers large companies to be companies with market capitalizations of $10 billion or greater.

 

 

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

52First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Income Builder Fund

 

 

 

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).

 

 

Sovereign Debt Risk — The Fund’s investments in debt obligations of sovereign governments may lose value due to the government entity’s unwillingness or inability to repay principal and interest when due in accordance with the terms of the debt or otherwise in a timely manner. The Fund may have limited (or no) recourse in the event of a default because bankruptcy, moratorium and other similar laws applicable to issuers of sovereign debt obligations may be substantially different from those applicable to private issuers and any recourse may be subject to the political climate in the relevant country.

 

 

LIBOR Risk — The risk that changes related to the use of the London Interbank Offered Rate (“LIBOR”) could have adverse impacts on financial instruments that reference LIBOR. While some instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR, especially those that do not have fallback provisions.

 

 

Value Investment Strategy Risk — 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented. In such an event, the Fund’s investment returns would be expected to lag relative to returns associated with more growth-oriented investment strategies. Investing in or

First Eagle Funds  |  Prospectus  |  March 1, 202353


 

Summary Information about the Global Income Builder Fund

 

 

 

having exposure to “value” securities presents the risk that such securities may never reach what the Adviser believes are their full market values.

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.

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 one or more broad measures of market performance, which have characteristics relevant to the Fund’s investment strategy. The indices are described in the Fund Indices section. 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 U.S. 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.firsteagle.com/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.

54First Eagle Funds  |  Prospectus  |  March 1, 2023


 

Global Income Builder Fund

Calendar Year Total Returns—Class A

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Fourth Quarter 2022

 

11.10%

 

 

 

First Quarter 2020

 

-15.78%

 

 

 

 

 

 

*

 

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 only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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, 202355


 

Summary Information about the Global Income Builder Fund

Average Annual Total Returns as of December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(7/29/19)

 

Class R5
Inception
(7/29/19)

 

Class R6
Inception
(3/1/17)

First Eagle Global Income Builder Fund

Class A Shares

Return Before Taxes

 

 

-8.35%

   

 

 

2.45%

   

 

 

4.50%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions

 

 

-9.16%

   

 

 

1.45%

   

 

 

3.39%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions and Sales of Fund Shares

 

 

-4.64%

   

 

 

1.64%

   

 

 

3.18%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-5.24%

   

 

 

2.71%

   

 

 

4.25%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes

 

 

-3.33%

   

 

 

3.77%

   

 

 

5.30%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class R3 Shares

Return Before Taxes

 

 

-3.72%

   

 

 

 

 

 

 

   

 

 

3.74%

   

 

 

 

 

 

 

 

 

 

 

 

Class R4 Shares

Return Before Taxes

 

 

-3.70%

   

 

 

 

 

 

 

 

 

 

 

   

 

 

3.96%

   

 

 

 

 

 

 

 

Class R5 Shares

Return Before Taxes

 

 

-3.62%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

4.04%

   

 

 

 

Class R6 Shares

Return Before Taxes

 

 

-3.28%

   

 

 

3.80%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

4.80%

 

60% MSCI World Index/40% Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees or expenses, but reflects net of taxes)

 

 

-15.85%

   

 

4.01%

   

 

5.92%

   

 

4.50%

   

 

3.75%

   

 

3.75%

   

 

5.24%

 

 

MSCI World Index (reflects no deduction for fees or expenses, but reflects net of withholding taxes)

 

 

-18.14%

   

 

6.14%

   

 

8.85%

   

 

6.62%

   

 

6.86%

   

 

6.86%

   

 

8.00%

 

 

Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)

 

 

-13.01%

   

 

0.02%

   

 

1.06%

   

 

0.50%

   

 

-1.65%

   

 

-1.65%

   

 

0.47%

 

56First Eagle Funds  |  Prospectus  |  March 1, 2023


 

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, Sean Slein, Julien Albertini and Idanna Appio serve as the Fund’s Portfolio Managers. Edward Meigs and Sean Slein have served as the Fund’s Portfolio Managers since the Fund’s inception on May 1, 2012. Kimball Brooker, Jr., Julien Albertini and Idanna Appio have served as the Fund’s Portfolio Managers since July 2016, March 2019 and May 2021, respectively.

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.

First Eagle Funds  |  Prospectus  |  March 1, 202357


 

 

First Eagle High Income Fund

Summary Information

Investment Objective

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

Fees and Expenses of the High Income Fund

The following information describes the fees and expenses you may pay if you buy, hold and sell shares of the High Income Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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 Income 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 155 and 162, 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**

 

 

 

0.45

 

 

 

 

0.45

 

 

 

 

0.45

 

 

 

 

0.45

 

 

 

 

0.45

 

 

 

 

0.45

 

 

 

 

0.45

 

 

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

 

 

 

0.25

 

 

 

 

1.00

 

 

 

 

None

 

 

 

 

0.35

 

 

 

 

0.10

 

 

 

 

None

 

 

 

 

None

 

 

Other Expenses

 

 

 

0.43

   

 

 

0.43

   

 

 

0.41

   

 

 

0.48

   

 

 

1.81

   

 

 

0.67

   

 

 

0.33

 

Total Annual Operating Expenses (%)

 

 

1.13

   

 

1.88

   

 

0.86

   

 

1.28

   

 

2.36

   

 

1.12

   

 

0.78

 

Fee Waiver and/or Expense Reimbursement**

 

 

-0.19

   

 

-0.19

   

 

-0.17

   

 

-0.24

   

 

-1.57

   

 

-0.43

   

 

-0.09

 

Total Annual Operating Expenses After Fee Waiver and/or Expenses Reimbursement (%)

 

 

0.94

   

 

1.69

   

 

0.69

   

 

1.04

   

 

0.79

   

 

0.69

   

 

0.69

 

58First Eagle Funds  |  Prospectus  |  March 1, 2023


 

High Income 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 $250,000 or more without an initial sales charge.

 

**

 

First Eagle Investment Management, LLC (the “Adviser”) has contractually agreed to waive and/ or reimburse certain fees and expenses of Classes A, C, I, R3, R4, R5 and R6 so that the total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividend and interest expenses relating to short sales, and extraordinary expenses, if any) (“annual operating expenses”) of each class are limited to 0.94%, 1.69%, 0.69%, 1.04%, 0.79%, 0.69% and 0.69% of average net assets, respectively. Each of these undertakings lasts until February 29, 2024 and may not be terminated during its term without the consent of the Board of Trustees. The Fund has agreed that each of Classes A, C, I, R3, R4, R5 and R6 will repay the Adviser for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses (after the repayment is taken into account) to exceed the lesser of: (1) 0.94%, 1.69%, 0.69%, 1.04%, 0.79%, 0.69% and 0.69% of the class’ average net assets, respectively; or (2) if applicable, the then-current expense limitations. Any such repayment must be made within three years after the year in which the Adviser incurred the expense.

Example

The following example is intended to help you compare the cost of investing in the High Income 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 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.

First Eagle Funds  |  Prospectus  |  March 1, 202359


 

Summary Information about the High Income Fund

 

 

 

 

 

 

 

 

 

Share Status

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

Sold or Held

 

 

 

$542

 

 

 

 

$775

 

 

 

 

$1,027

 

 

 

 

$1,747

 

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

Sold

 

 

 

$272

 

 

 

 

$572

 

 

 

 

$999

 

 

 

 

$2,186

 

 

Held

 

 

 

$172

 

 

 

 

$572

 

 

 

 

$999

 

 

 

 

$2,186

 

Class I

Sold or Held

 

 

 

$70

 

 

 

 

$257

 

 

 

 

$460

 

 

 

 

$1,045

 

Class R3

Sold or Held

 

 

 

$106

 

 

 

 

$382

 

 

 

 

$679

 

 

 

 

$1,524

 

Class R4

Sold or Held

 

 

 

$81

 

 

 

 

$586

 

 

 

 

$1,118

 

 

 

 

$2,575

 

Class R5

Sold or Held

 

 

 

$70

 

 

 

 

$313

 

 

 

 

$575

 

 

 

 

$1,325

 

Class R6

Sold or Held

 

 

 

$70

   

 

 

$240

   

 

 

$424

 

 

 

 

$958

 

 

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 Income 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 above, affect the Fund’s performance. During the Fund’s most recent fiscal year, the Fund’s portfolio turnover rate was 28.00% of the average value of its portfolio.

Principal Investment Strategies

To pursue its investment objective, the High Income Fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in debt instruments that are below investment grade, commonly known as “high yield” or “junk” bonds. Such high yield instruments may include corporate bonds and loans, municipal bonds, convertible securities, 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

60First Eagle Funds  |  Prospectus  |  March 1, 2023


 

High Income Fund

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.

For more information about the High Income Fund’s principal investment strategies, please see the More Information about the Funds’ Investments section.

Principal Investment Risks

As with any mutual fund investment, you may lose money by investing in the High Income 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 High Income 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. A debt instrument’s “duration” is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates. 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. Generally, debt instruments with long maturities and low coupons have the longest durations. Longer-duration instruments tend to be more sensitive to interest rate changes than those with shorter durations. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate the risk that borrowers will not be able to make payments of interest and principal when due. In addition, there is risk of significant future rate moves and related economic and market impacts. As of the date of this Prospectus, there have been significant recent rates increases in the United States to combat inflation in the U.S. economy, and additional rate increases are possible.

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Summary Information about the High Income Fund

 

 

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 debt instruments that are below investment grade, commonly known as “high yield” or “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 and liquidity 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. Markets may be volatile, and prices of individual securities and other investments, including those of a particular type, may decline significantly and rapidly in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment or publicity. Recent market conditions and events, including a global public health crisis, wars and armed conflicts and actions taken by governments in response, may exacerbate volatility. Rapid changes in prices or liquidity, which often are not anticipated and can relate to events not connected to particular investments, may limit the ability of the Fund to dispose of its assets at the price or time of its choosing and can result in losses. Changes in prices may be temporary or may last for extended periods.

 

 

Foreign Investment Risk — The Fund may invest in foreign investments. Foreign investments, which can be denominated in any applicable foreign currency, are 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,

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High Income Fund

 

 

 

including junk bonds, is generally less liquid than the market for higher-quality debt instruments.

 

 

Call Risk — The Fund may be subject to the risk that an issuer will exercise its right to pay principal on a debt obligation (such as a convertible security) that is held by the Fund earlier than expected. This may happen when there is a decline in interest rates. Under these circumstances, the Fund may be unable to recoup all of its initial investment and may also suffer from having to reinvest in lower-yielding securities.

 

 

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.

 

 

Corporate Bond Risk — The market value of a corporate bond may be affected by factors directly related to the issuer and by factors not directly related to the issuer, such as general market liquidity. The market value of corporate bonds generally may be expected to rise and fall inversely with interest rates, and as a result, corporate bonds may lose value in a rising-rate environment.

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Summary Information about the High Income Fund

 

 

Municipal Bond Risk — Like other bonds, municipal bonds are subject to credit risk, interest rate risk, liquidity risk, and call risk. However, the obligations of some municipal issuers may not be enforceable through the exercise of traditional creditors’ rights. The reorganization under federal bankruptcy laws of a municipal bond issuer may result in the bonds being cancelled without payment or repaid only in part, or in delays in collecting principal and interest.

 

 

Mortgage- and Asset-Backed Securities Risk — Mortgage- and certain asset-backed securities permit early repayment of principal based on prepayment of the underlying assets, and changes in the rate of repayment affect the price and volatility of an investment. If prepayments occur more quickly than expected, the Fund receives lower interest payments than it expects. If prepayments occur more slowly than expected, it delays the return of principal to the Fund. Securities issued by certain U.S. government-sponsored entities (“GSEs”) are not issued or guaranteed by the U.S. Treasury, and there is no assurance the U.S. government will provide support in the event a GSE issuer cannot meet its obligations.

 

 

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 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. A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile and futures contracts may lack liquidity. In addition, there may be imperfect or even negative correlation between the price of a futures contract and the price of the underlying securities or financial index.

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High Income Fund

 

 

Options Risk — The Fund may engage in various options transactions in which the Fund typically seeks to limit investment risk 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.

 

 

Swaps Risk — Swap agreements (including credit default and index) are derivatives contracts where the parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. In addition to the risks generally applicable to derivatives, risks associated with swap agreements include adverse changes in the returns of the underlying instruments, failure of the counterparties to perform under the agreement’s terms and the possible lack of liquidity with respect to the agreements.

 

 

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.

 

 

LIBOR Risk — The risk that changes related to the use of the London Interbank Offered Rate (“LIBOR”) could have adverse impacts on financial instruments that reference LIBOR. While some instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR, especially those that do not have fallback provisions.

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 Income 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 High Income 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 one or more broad measures of market

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Summary Information about the High Income Fund

performance, which have characteristics relevant to the Fund’s investment strategy. The index is described in the Fund Indices section. 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 U.S. 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.firsteagle.com/high-income-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 I

 

 

 

 

 

 

 

 

 

Best Quarter*

 

 

 

Worst Quarter*

Second Quarter 2020

 

9.88%

 

 

 

First Quarter 2020

 

-12.11%

 

 

 

 

 

 

*

 

For the period presented in the bar chart above.

The following 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. While only partial information is shown for Class R3, Class R4, Class R5 and Class R6 shares (because they are more recently organized), 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

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High Income Fund

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, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Class R3
Inception
(5/1/18)

 

Class R4
Inception
(7/29/19)

 

Class R5
Inception
(7/29/19)

 

Class R6
Inception
(3/1/17)

First Eagle High Income Fund

Class A Shares

Return Before Taxes

 

 

-12.89%

   

 

 

0.74%

   

 

 

2.23%

   

 

   

 

 

 

 

 

 

 

 

 

 

 

Class C Shares

Return Before Taxes

 

 

-10.25%

   

 

 

0.93%

   

 

 

1.94%

   

 

   

 

 

 

 

 

 

 

 

 

 

 

Class I Shares

Return Before Taxes

 

 

-8.46%

   

 

 

1.97%

   

 

 

3.00%

   

 

   

 

 

 

 

 

 

 

 

 

 

 

 

Return After Taxes on Distributions