Global Income Builder Fund

Strives for current income generation and long-term growth of capital

Seeks to Provide Meaningful and Sustainable Income

We attempt to provide a material income stream that persists over time and holds its value in real terms. >

Seeks To Provide Downside Protection

Our attempts to avoid the permanent loss of capital result in a portfolio that has exposure to securities purchased with what we believe to be a margin of safety in price.

Flexible, Benchmark-Agnostic Approach

The Fund invests across asset classes, regions, sectors/industries, market capitalization ranges and without regard to a benchmark.

190- Morningstar Rating Overall - GIB

*Class A Shares rated three stars overall by Morningstar among 396 World Allocation funds for the 3-year period ended 3/31/17. The Overall Morningstar Rating for First Eagle Global Income Builder Fund is derived from a weighted average of the performance figures associated with its 3-year Morningstar Rating metrics.

107 - Inception Date All Share Classes - GIB

*Global Income Builder Fund Inception dates: A Shares 05/01/2012, C Shares 05/01/2012, I Shares 05/01/2012

121 - Performance - Fee Waiver GIB and HY

Had fees not been waived and/or expenses reimbursed in the past, returns would have been lower.

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.

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.

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.

There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. These risks may be more pronounced with respect to investments in emerging markets.

Investments 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.

High yield securities (commonly known as "junk bonds") 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. The Funds invest in high yield securities that are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. 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.

Bank loans are often less liquid than other types of debt instruments. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated.

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 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.

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.

All investments involve the risk of loss of principal.

2017 Morningstar, Inc.© All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Ratings are relative to a peer group and do not necessarily mean that the fund had high total returns. For each fund with at least a three-year history, Morningstar calculates Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

First Eagle Global Income Builder Fund Morningstar ratings – World Allocation Category; A Shares: Overall 3 stars/396 funds, Three-year rating: 3 stars/396 funds. C Shares: Overall: 3 stars/396 funds, Three-year rating: 3 stars/396 funds. I Shares: Overall: 4 stars/396 funds, Three-year rating: 4 stars/396 funds. Different share classes may have different ratings.

The Morningstar percentile rankings for the First Eagle Global Income Builder Fund in the Morningstar World Allocation category were derived using the total return of the performance figure associated with its 1- and 3-year time periods.

Composite Index - effective March 1, 2016 the Fund is compared against a composite index, 60% of which consists of the MSCI World Index and 40% of which consists of the Barclays U.S. Aggregate Bond Index. The Fund believes this composite index provides a useful comparison against the performance of the Fund, which currently invests in both equity and fixed income securities.

The MSCI World Index is a widely followed, unmanaged group of stocks from 23 international markets and is not available for purchase.  The index provides total returns in U.S. dollars with net dividends reinvested.

The Bloomberg Barclays Capital Aggregate Bond Index is a broad-based benchmark that measures the investment grade U.S. dollar-denominated fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughts), ABS, and CMBS.  One cannot invest directly in an index.

Strives for current income generation and long-term growth of capital.

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.

107 - Inception Date All Share Classes - GIB

*Global Income Builder Fund Inception dates: A Shares 05/01/2012, C Shares 05/01/2012, I Shares 05/01/2012

121 - Performance - Fee Waiver GIB and HY

Had fees not been waived and/or expenses reimbursed in the past, returns would have been lower.

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.

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.

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.

There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. These risks may be more pronounced with respect to investments in emerging markets.

Investments 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.

High yield securities (commonly known as "junk bonds") 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. The Funds invest in high yield securities that are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. 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.

Bank loans are often less liquid than other types of debt instruments. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated.

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 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.

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.

All investments involve the risk of loss of principal.

2017 Morningstar, Inc.© All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Ratings are relative to a peer group and do not necessarily mean that the fund had high total returns. For each fund with at least a three-year history, Morningstar calculates Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

First Eagle Global Income Builder Fund Morningstar ratings – World Allocation Category; A Shares: Overall 3 stars/396 funds, Three-year rating: 3 stars/396 funds. C Shares: Overall: 3 stars/396 funds, Three-year rating: 3 stars/396 funds. I Shares: Overall: 4 stars/396 funds, Three-year rating: 4 stars/396 funds. Different share classes may have different ratings.

The Morningstar percentile rankings for the First Eagle Global Income Builder Fund in the Morningstar World Allocation category were derived using the total return of the performance figure associated with its 1- and 3-year time periods.

Composite Index - effective March 1, 2016 the Fund is compared against a composite index, 60% of which consists of the MSCI World Index and 40% of which consists of the Barclays U.S. Aggregate Bond Index. The Fund believes this composite index provides a useful comparison against the performance of the Fund, which currently invests in both equity and fixed income securities.

The MSCI World Index is a widely followed, unmanaged group of stocks from 23 international markets and is not available for purchase.  The index provides total returns in U.S. dollars with net dividends reinvested.

The Bloomberg Barclays Capital Aggregate Bond Index is a broad-based benchmark that measures the investment grade U.S. dollar-denominated fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughts), ABS, and CMBS.  One cannot invest directly in an index.

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.

Strives for current income generation and long-term growth of capital.

52-Disclosure Portfolio Characteristics Portfolio Holdings disclosure All funds

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

148-Portfolio Characteristics - Percentages may not sum to 100%

Percentages may not sum to 100% due to rounding.

52-Disclosure Portfolio Characteristics Portfolio Holdings disclosure All funds

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

148-Portfolio Characteristics - Percentages may not sum to 100%

Percentages may not sum to 100% due to rounding.

52-Disclosure Portfolio Characteristics Portfolio Holdings disclosure All funds

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

148-Portfolio Characteristics - Percentages may not sum to 100%

Percentages may not sum to 100% due to rounding.

52-Disclosure Portfolio Characteristics Portfolio Holdings disclosure All funds

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

62-Disclosure Source Information S&P credit ratings disclosure HY

Ratings source: Standard & Poor's. A credit rating, as represented by the Credit Quality Breakdown, is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of credit worthiness of an issuer with respect to debt obligations, including specific securities, money market instruments, or other bonds. ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. Not Rated (NR) indicates that the debtor was not rated and should not be interpreted as indicating low quality. For more information on the Standard & Poor's rating methodology, please visit standardandpoors.com and select "Understanding Ratings" under Rating Resources.

150-Portfolio Characteristics - Credit Quality includes FI Only - GIB

Credit quality includes only Fixed Income securities.

148-Portfolio Characteristics - Percentages may not sum to 100%

Percentages may not sum to 100% due to rounding.

52-Disclosure Portfolio Characteristics Portfolio Holdings disclosure All funds

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. These risks may be more pronounced with respect to investments in emerging markets.

Investments 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.

High yield securities (commonly known as "junk bonds") 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. The Funds invest in high yield securities that are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. 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.

Bank loans are often less liquid than other types of debt instruments. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated.

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 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.

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.

All investments involve the risk of loss of principal.

Investment Philosophy

The team believes that current income generation and long-term growth of capital are best pursued by first attempting to avoid the permanent impairment of capital. While securities are considered because they generate income, they are purchased because the team believes they offer an appropriate margin of safety.
 

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.

  • 1

    Idea Generation

    The team examines a broad array of possible income-producing opportunities across the capital structure of a company.

    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
  • 2

    Fundamental Research

    Analyze 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.

  • 3

    Bottom-Up Portfolio Construction

    Employ 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 cash equivalents 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
  • 4

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

There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. These risks may be more pronounced with respect to investments in emerging markets.

Investments 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.

High yield securities (commonly known as "junk bonds") 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. The Funds invest in high yield securities that are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. 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.

Bank loans are often less liquid than other types of debt instruments. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated.

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 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.

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.

All investments involve the risk of loss of principal.

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

Please read prospectus carefully for more complete information including details on fees, expenses and risks 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 reflect actual expenses for the Fund for the fiscal year ended October 31, 2016 and estimated expenses in the case of newly organized share classes.

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

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.

Had fees not been waived and/or expenses reimbursed in the past, returns would have been lower.

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.