First Eagle Global Income Builder Fund seeks current income generation and long-term growth of capital.
First Eagle Global Income Builder Fund aims to deliver a meaningful but sustainable income stream across all market environments. Through bottom-up fundamental analysis focusing on global income-producing securities, the team seeks to avoid the permanent impairment of capital by investing only where they believe an adequate discount to intrinsic value exists. While securities are considered because they generate income, they are purchased because we believe they offer a substantial margin of safety
First Eagle Global Income Builder Fund seeks a level of income distribution that is consistent with preserving and growing the capital base in real terms over time. The Fund will distribute quarterly.*
The Global Income Builder Team follows a four-step process of idea generation, fundamental research, portfolio construction, and risk management. Fundamental research drives the identification of income-producing investment opportunities across all market environments.
Drawing upon First Eagle's global expertise, the Global Income Builder Team seeks a broad array of possible income-producing opportunities across the capital structure.
Equity idea generation focuses on:
Credit idea generation focuses on:
The team analyzes securities for margin of safety and income sustainability through industry, company, and security research. Equity research focuses on determining what an informed buyer would pay in cash for the underlying enterprise. Credit research focuses on determining whether the enterprise possesses the ability and willingness to successfully pay coupons and repay or refinance principal.
For each potential investment, the team:
The team then determines what they believe is the optimal place in the capital structure to invest.
The team employs a flexible and global approach to income generation. Capital allocation decisions are made security by security based on the team's assessment of margin of safety. As broader market conditions warrant, the team may invest in:
The team defines risk as the potential for permanent impairment of capital, and believes that risk management begins at the security level and continues through portfolio construction and monitoring.
The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at firsteaglefunds.com or by calling 800.334.2143.
1 Gross operating expenses are the actual fund operating expenses prior to the application of fee waivers and/or expense reimbursements. The Adviser has contractually agreed to limit operating expenses of the Fund to an annual rate of 1.30% for A Shares, 2.05% for C Shares, and 1.05% for I Shares with gross operating expenses of 2.13%, 2.88%, and 2.20% respectively. This limitation excludes certain expenses as described in the Fees and Expenses section of the prospectus. This limitation will continue until December 31, 2013. The expense limitation may be terminated by the Adviser in future years.
* Dividends are not guaranteed.
The portfolio is actively managed and is subject to change. The above are not investment guidelines or restrictions and the Fund's actual holdings information may vary from the above. Past performance is no guarantee of future results.
There are risks associated with investing in funds that invest in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.
Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer's ability to make such payments may cause the price of that bond to decline.
The Fund invests in high yield securities (commonly known as "junk bonds") which are generally considered speculative because they may be subject to greater levels of interest rate, credit (including issuer default) and liquidity risk than investment grade securities and may be subject to greater volatility. High yield securities are rated lower than investment-grade securities because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities.
Investment in gold and gold related investments present certain risks, and returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets. Physical gold does not produce income.
Income generation is not guaranteed. All investments involve the risk of loss.