Fund of America

Seeks capital appreciation and current income by investing primarily in US stocks and, to a lesser extent, in debt and foreign equity securities. 

Selectivity focused on quality 

We seek a portfolio of select high-quality, high-cash generative companies that have maintained or grown their dividends over time.

Seek income from growing dividends 

Companies that have maintained or grown dividends have historically provided a more attractive risk/return profile

Foundation of a proven philosophy 

Consistent philosophy with the First Eagle Global Value research platform

58-Disclosure Share Class Y-Share Closed disclosure FEA

As of September 1, 2005, Class Y Shares of First Eagle Fund of America are closed to new accounts.

49-Disclosure Performance Standard Past Performance All funds

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 on the Prices & Performance page.

105 - Inception Dates All Share Classes - FEA

**Fund of America Inception dates:  A Shares 11/20/1998, C Shares 03/02/1998, I Shares 03/08/2013, Y Shares 04/10/1987, R3 Shares 05/01/2018, R4 Shares 07/29/2019, R5 Shares 07/29/2019, R6 Shares 03/01/2017.

Please refer to the Fees and Expenses tab for expense ratios having commenced 8/17/2020.

214-FEA Fee Waiver without Asterisks for Fees and Expenses

For the First Eagle Fund of America, as of July 1, 2019, 0.90% (waived to 0.85%) of the first $2.25 billion of the Fund’s average daily net assets, 0.85% of the next $2.75 billion of average daily net assets, and 0.80% of average daily net assets in excess of $5 billion. The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.05% of the first $2.25 billion of the Fund’s average daily net assets for the period through February 28, 2021.

131-Performance-Average Annual Returns Reflect

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses.  Investment results and the principal value of an investment will vary.

124 - Avg Annual Returns - Periods less than 1 year

Returns for periods less than one year are not annualized.

36-Disclosure Performance A-share performance USV, GLD, FEA, GIB

The average annual returns for Class A Shares "with sales charge" reflects the maximum sales charge of 5.00%.

37-Disclosure Performance C-share performance All funds

The average annual returns for Class C Shares reflect a CDSC (contingent deferred sales charge) of 1.00% in the year-to-date and first year only.

43-Disclosure Performance I-Share performance GLO, OVS, USV, GLD, FEA, GIB

Performance information for Class I Shares is without the effect of sales charges and assumes all distributions have been reinvested and if a sales charge was included values would be lower. Had fees not been waived and/or expenses reimbursed, the performance would have been lower. Class A and C Shares have maximum sales charges of 5.00% and 1.00% respectively, and 12b-1 fees, which reduce performance.

8-Disclosure Expenses I Share $1mm minimum All funds

Class I Shares require $1mm minimum investment, and are offered without sales charge.

215-R Share Performance

Class R Shares are offered without sales charge.

38-Disclosure Performance Y-share performance FEA

Class Y shares are offered without sales charge.

58-Disclosure Share Class Y-Share Closed disclosure FEA

As of September 1, 2005, Class Y Shares of First Eagle Fund of America are closed to new accounts.

82 - Expenses - Expense Ratio As of Date - All Funds

The annual expense ratio is based on expenses incurred by the fund, as stated in the most recent prospectus.

Effective August 17, 2020, the Fund changed its investment objective and principal investment strategy.  In addition, effective August 17, 2020, the Fund is subject to different (generally lower) fees and expenses than previously. Under the prior objective and strategy, the Fund's portfolio and investment characteristics differed substantially from that now presented.  All investment performance shown for periods through August 17, 2020 is based on the prior investment strategy and the fees and expenses applicable to the Fund at such time. Current management is also as of August 17, 2020.

During the transition of the Fund to its new investment objective and principal investment strategies, it is expected that the Fund will not be as invested in income producing securities as will be the case once the transition is complete. The Fund may be subject to a “ramp-up” period, during which it may not be fully invested or able to meet its investment objective or principal investment strategies.

The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which Fund of America invests, as well as economic, political, or social events in the United States or abroad. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate volatility. The value of the Fund’s portfolio 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.

Investments in bonds are subject to interest-rate risk (including during periods of historically low interest rates) 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. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate these risks.

Income generation is not guaranteed. If dividend paying stocks in the Fund's portfolio stop paying or reduce dividends, the Fund's ability to generate income will be adversely affected.

The Fund is a non-diversified mutual fund, and as a result, an investment in Fund of America may expose your money to greater risks than if you invest in a diversified fund.

The principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value.

All investments involve the risk of loss of principal.

First Eagle defines "margin of safety" as the difference between a company's market price and our estimate of its intrinsic value. An investment made with a margin of safety is no guarantee against loss.

Seeks capital appreciation and current income by investing primarily in US stocks and, to a lesser extent, in debt and foreign equity securities.

44-Disclosure Performance Growth of 10k disclosure - A Shares GLO, OVS, USV, GLD, FEA, GIB

This chart illustrates a hypothetical investment in Class A shares without the effect of sales charges and assumes all distributions have been reinvested and if a sales charge was included values would be lower. Date selected assumes purchase at month end.

46-Disclosure Performance Risk & Return Chart - A Shares GLO, OVS, USV, GLD, FEA, GIB

This chart illustrates risk and return data for Class A Shares without the effect of sales charges and assumes all distributions have been reinvested and if sales charge was included values would be lower.

154-Disclosure - Performance CY Partial Year - FEA

*Performance for 1987 is for the period 04/10/1987 to 12/31/1987

49-Disclosure Performance Standard Past Performance All funds

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 on the Prices & Performance page.

105 - Inception Dates All Share Classes - FEA

**Fund of America Inception dates:  A Shares 11/20/1998, C Shares 03/02/1998, I Shares 03/08/2013, Y Shares 04/10/1987, R3 Shares 05/01/2018, R4 Shares 07/29/2019, R5 Shares 07/29/2019, R6 Shares 03/01/2017.

Please refer to the Fees and Expenses tab for expense ratios having commenced 8/17/2020.

214-FEA Fee Waiver without Asterisks for Fees and Expenses

For the First Eagle Fund of America, as of July 1, 2019, 0.90% (waived to 0.85%) of the first $2.25 billion of the Fund’s average daily net assets, 0.85% of the next $2.75 billion of average daily net assets, and 0.80% of average daily net assets in excess of $5 billion. The Adviser has contractually agreed to waive its management fee at an annual rate in the amount of 0.05% of the first $2.25 billion of the Fund’s average daily net assets for the period through February 28, 2021.

131-Performance-Average Annual Returns Reflect

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses.  Investment results and the principal value of an investment will vary.

124 - Avg Annual Returns - Periods less than 1 year

Returns for periods less than one year are not annualized.

36-Disclosure Performance A-share performance USV, GLD, FEA, GIB

The average annual returns for Class A Shares "with sales charge" reflects the maximum sales charge of 5.00%.

37-Disclosure Performance C-share performance All funds

The average annual returns for Class C Shares reflect a CDSC (contingent deferred sales charge) of 1.00% in the year-to-date and first year only.

43-Disclosure Performance I-Share performance GLO, OVS, USV, GLD, FEA, GIB

Performance information for Class I Shares is without the effect of sales charges and assumes all distributions have been reinvested and if a sales charge was included values would be lower. Had fees not been waived and/or expenses reimbursed, the performance would have been lower. Class A and C Shares have maximum sales charges of 5.00% and 1.00% respectively, and 12b-1 fees, which reduce performance.

8-Disclosure Expenses I Share $1mm minimum All funds

Class I Shares require $1mm minimum investment, and are offered without sales charge.

215-R Share Performance

Class R Shares are offered without sales charge.

38-Disclosure Performance Y-share performance FEA

Class Y shares are offered without sales charge.

58-Disclosure Share Class Y-Share Closed disclosure FEA

As of September 1, 2005, Class Y Shares of First Eagle Fund of America are closed to new accounts.

82 - Expenses - Expense Ratio As of Date - All Funds

The annual expense ratio is based on expenses incurred by the fund, as stated in the most recent prospectus.

Effective August 17, 2020, the Fund changed its investment objective and principal investment strategy.  In addition, effective August 17, 2020, the Fund is subject to different (generally lower) fees and expenses than previously. Under the prior objective and strategy, the Fund's portfolio and investment characteristics differed substantially from that now presented.  All investment performance shown for periods through August 17, 2020 is based on the prior investment strategy and the fees and expenses applicable to the Fund at such time. Current management is also as of August 17, 2020.

During the transition of the Fund to its new investment objective and principal investment strategies, it is expected that the Fund will not be as invested in income producing securities as will be the case once the transition is complete. The Fund may be subject to a “ramp-up” period, during which it may not be fully invested or able to meet its investment objective or principal investment strategies.

The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which Fund of America invests, as well as economic, political, or social events in the United States or abroad. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate volatility. The value of the Fund’s portfolio 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.

Investments in bonds are subject to interest-rate risk (including during periods of historically low interest rates) 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. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate these risks.

Income generation is not guaranteed. If dividend paying stocks in the Fund's portfolio stop paying or reduce dividends, the Fund's ability to generate income will be adversely affected.

The Fund is a non-diversified mutual fund, and as a result, an investment in Fund of America may expose your money to greater risks than if you invest in a diversified fund.

The principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value.

All investments involve the risk of loss of principal.

Standard & Poor's 500 Index is a widely recognized unmanaged index including a representative sample of 500 leading companies in leading sectors of the U.S. economy and is not available for purchase.  Although the Standard & Poor's 500 Index focuses on the large-cap segment of the market, with approximately 80% coverage of U.S. equities, it is also considered a proxy for the total market.

The Russell Midcap Value Index is an unmanaged index of mid-capitalization companies in the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values and is not available for purchase.

The Russell 3000 Index is an unmanaged index that measures the performance of the 3000 largest U.S. companies based on market capitalization, which encompasses 98% of the total market capitalization of the publicly traded U.S. equity market, and is not available for purchase.

The Russell 2000 Index is an unmanaged index that measures the performance of the 2000 smallest companies in the Russell 3000 Index and is not available for purchase.

Standard deviation is a statistical measure of the distance a quantity is likely to be from its average value.  It is applied to the annual rate of return to measure volatility.

R-Squared reflects the percentage of a fund's movements that are explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark.

Beta is a measure of the fund's volatility (risk) relative to the overall market.  The higher the fund's Beta, the more the fund price is expected to change in response to a given change in the value of the market.

Alpha is a measure of the Fund's excess return relative to the return of the benchmark index.

Information ratio evaluates the ratio of a fund's returns above those of a benchmark against the volatility of those returns.

Investment Philosophy

Fund of America seeks to provide a highly selective, fundamentally driven portfolio of high-quality, predominantly US companies that have consistently returned excess capital to shareholders by maintaining or growing their dividend streams over time and/or through stock buybacks. We believe that the market episodically fails to recognize the intrinsic value of such companies, and we selectively invest in them when their market price represents an appropriate “margin of safety.”

Investment Process

Companies are considered based on their quality and income generation, and are purchased because of their discount to our calculation of intrinsic value.

  • 1

    Quality: Asset scarcity as a foundation.

    • Sound financial metrics, including return on invested capital
    • Strong capital structure and prudent management team
    • Industry leadership with durable competitive advantage
  • 2

    Income: Resilient companies able to maintain or grow dividends

    • History of high and resilient free cash flow generation
    • Capacity to maintain and grow dividend over time
    • Commitment to returning excess capital to shareholders through dividends and/or stock buybacks
  • 3

    Valuation: “Margin of safety" in price alongside yield

    • Market price representing a discount to our estimate of intrinsic value
    • Capacity to maintain and grow dividend over time
    • Commitment to returning excess capital to shareholders through dividends and/or stock buybacks
  • 4

    Sell Discipline

    • Discount to our estimate of intrinsic value closes, shrinking "margin of safety"
    • Negative fundamentals impair dividend payments
    • Broken thesis
    • More attractive investment opportunities
  • 5

    Risk Management

    • Risk management is embedded throughout the process
    • We define risk as the permanent impairment of capital
    • We seek to manage risk at both the stock and portfolio levels

Effective August 17, 2020, the Fund changed its investment objective and principal investment strategy.  In addition, effective August 17, 2020, the Fund is subject to different (generally lower) fees and expenses than previously. Under the prior objective and strategy, the Fund's portfolio and investment characteristics differed substantially from that now presented.  All investment performance shown for periods through August 17, 2020 is based on the prior investment strategy and the fees and expenses applicable to the Fund at such time. Current management is also as of August 17, 2020.

During the transition of the Fund to its new investment objective and principal investment strategies, it is expected that the Fund will not be as invested in income producing securities as will be the case once the transition is complete. The Fund may be subject to a “ramp-up” period, during which it may not be fully invested or able to meet its investment objective or principal investment strategies.

The value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which Fund of America invests, as well as economic, political, or social events in the United States or abroad. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate volatility. The value of the Fund’s portfolio 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.

Investments in bonds are subject to interest-rate risk (including during periods of historically low interest rates) 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. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate these risks.

Income generation is not guaranteed. If dividend paying stocks in the Fund's portfolio stop paying or reduce dividends, the Fund's ability to generate income will be adversely affected.

The Fund is a non-diversified mutual fund, and as a result, an investment in Fund of America may expose your money to greater risks than if you invest in a diversified fund.

The principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value.

All investments involve the risk of loss of principal.

Not all companies held by the Fund will meet all the criteria listed.

First Eagle defines "margin of safety" as the difference between a company's market price and our estimate of its intrinsic value. An investment made with a margin of safety is no guarantee against loss.

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

Please read prospectus carefully for more complete information including details on fees, expenses and risk before investing.

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

**"Other Expenses" shown generally reflect actual expenses for the Fund for the most recent fiscal year ended October 31 and estimated expenses in the case of newly organized share classes.

*****First Eagle Investment Management, LLC (‘‘FEIM’’) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, C, Y, 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 0.90%, 1.65%, 0.90%, 0.65%, 1.00%, 0.75%, 0.65% and 0.65% of average net assets, respectively. Each of these undertakings lasts until February 28, 2022 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, Y, I, R3, R4, R5 and R6 will repay FEIM 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 either: (1) 0.90%, 1.65%, 0.90%, 0.65%, 1.00%, 0.75%, 0.65% and 0.65% 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 FEIM incurred the expense.

******Acquired Fund Fees and Expenses (“AFFE”) are fees and expenses incurred by the Fund in connection with its investments in other investment companies.

Class I Shares require $1mm minimum investment, and are offered without sales charge.

As of September 1, 2005, Class Y Shares of First Eagle Fund of America are closed to new accounts.

There are several ways to lower the sales charge on Class A shares: Aggregation, Rights of Accumulation and Letter of Intention. For details please refer to our prospectus.

In order to claim a breakpoint or other means of reducing the sales charge, an investor should notify his or her dealer, the Distributor, or the Transfer Agent (DST) at the time of purchase.

Ordinary income distributions are distributed at the class level and will vary by class.

Collectibles gains, such as gains from gold bullion, held for greater than one year currently are subject to a 28% tax rate. Collectibles gains held for less than one year are taxable to U.S. shareholders as short-term gains.

"Reinvested at" is the share price used to calculate the number of shares added to an account if a shareholder reinvests dividends or capital gains.

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