Global Income Builder Fund

Investment Objective

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

Investment Philosophy

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

Income Distributions

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.*

Investment Process

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.

Idea Generation:

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:

• Companies misunderstood or temporarily disappointing investors
• Underappreciated franchise businesses

Credit idea generation focuses on:

• Companies with stable and sufficient cash flows
• Companies with underlying asset value and/or security
• Management with a demonstrable positive track record

Fundamental Research:

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:

• Deconstructs the financials
• Understands the business
• Assesses the valuation

The team then determines what they believe is the optimal place in the capital structure to invest.

Bottom-Up Portfolio Construction:

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:

• Equity securities that they believe have the potential to generate income and grow capital over the long-term, focusing on dividend-paying equities
• Credit securities that they believe will generate income, including corporate bonds and loans
• Cash and sovereign debt securities as deferred purchasing power, with flexibility regarding duration and currency
• Gold and gold-related securities as a potential hedge against extreme outcomes, focusing on dividend-paying gold mining stocks

Risk Management and Portfolio Monitoring:

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.

• Security-level risk management: The team continuously reassesses the intrinsic value and price/value relationship of individual securities, monitoring industry or competitive developments that could alter a specific company's risk profile, and limiting initial position sizing to maintain the flexibility to exploit additional security price weakness.
• Portfolio-level risk management: The team seeks to maintain an adequately diversified portfolio and avoid clusters of risk. They may hold gold as a potential hedge against extreme market outcomes, and have the flexibility to remain benchmark-agnostic.