First Eagle International Value Strategy, including the Overseas Fund, to Reopen
First Eagle Investment Management announced that effective January 10, 2019, the current soft-close limitations applicable to the International Value Strategy, which includes the First Eagle Overseas Fund, will be removed. The Strategy and the Fund have been closed to certain third-party intermediaries and institutional investors since May 2014.
With recent market risk aversion and weakness in a number of sectors, portfolio managers Matt McLennan and Kimball Brooker have seen a greater bottom-up “margin of safety” across the portfolio despite their lingering top-down concerns about the business cycle, geopolitics and sovereign balance sheets. At the time of the close in 2014, the Strategy/Fund was being managed in an environment of very strong inflows and limited investment opportunities deemed acceptable by the portfolio managers. The current environment presents the opposite scenario, with outflows and potentially more investment opportunities. Against this backdrop, the portfolio managers believe it is in the best interest of investors/shareholders to remove the soft close. This has the potential to return the Strategy/Fund to a balanced-cash-flow scenario—an optimal condition for the investment team to apply its desired strategy.
The official notice of these changes can be found in the Fund prospectus sticker.
The Global Value Team defines “margin of safety” as the difference between a company’s purchase price and our estimate of its intrinsic value.
Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds and may be obtained by contacting your financial adviser, visiting our website at www.feim.com or calling us at 800.334.2143. Please read the prospectus carefully before investing.