Fund of America Class A shares (without sales charge)* rose 18.66% in the first quarter, outperforming the S&P 500 index, which returned 13.65%. The rebound we expected in our portfolio after the second-half 2018 drawdown occurred, with strong performance in first quarter 2019 driven by many of the stocks that had performed poorly last year.
Fund of America is a fundamental research-driven strategy that seeks to identify undervalued companies that can benefit from catalysts for corporate change.
Over the last several years, the retirement landscape has markedly changed. Americans are living longer and need to plan accordingly. At the same time, with defined contribution plans replacing defined benefit plans both at corporations and, more recently, at public entities, individuals also need to shoulder greater responsibility for their own retirement saving.
We believe that First Eagle Funds are a natural fit for defined contribution plans because we believe in the key tenets of successful retirement plan investing. Our funds have distinctive risk/reward characteristics, and they have performed well in some periods when other investments were struggling.
To mark the Fund's 30-year anniversary on April 10th, Harold Levy recalls the creation of the the Fund of America strategy, reflects on what's changed over 30 years and reaffirms his commitment to providing prudent stewardship of shareholders' assets.