Fund takes an opportunistic, bottom-up approach to identifying undervalued small companies in the US with potential catalysts for improved fundamentals

First Eagle Investments (“First Eagle”) is proud to announce the three-year anniversary of its First Eagle Small Cap Opportunity Fund (I-Share Class: FESCX). The Fund seeks long-term growth of capital by investing in small companies the portfolio management team believes to be attractively valued and poised to benefit from catalysts—such as new management, a more favorable business cycle, product innovation or margin improvement—that will drive recovery and earnings growth. With assets under management of approximately $1.9 billion as of March 31, 2024, the Fund’s widespread adoption since its inception on April 27, 2021, underscores the appeal of the team’s disciplined, active approach to opportunities on the smaller end of the capitalization spectrum.

The Small Cap Opportunity Fund is managed by First Eagle’s Small Cap team, which was formed three years ago with the hiring of Portfolio Manager and Head of Small Cap Bill Hench, Associate Portfolio Managers Suzanne Franks and Rob Kosowsky, and Senior Research Analyst Adam Mielnik. The team subsequently expanded to include Senior Research Analyst Frank Francese, Research Analyst Connor Sheehy and Senior Trader Mark Salamone.

“We are excited to mark this significant three-year milestone,” said Hench. “Launching the Fund amid the dislocations of the Covid-19 pandemic, our goal was to do our best work to help clients navigate what figured to be an uncertain and unprecedented investment environment. We approached the challenge the only way we know how: through diligent bottom-up research, opportunistic investing and diversified portfolio construction.”

“While small cap stocks represent a particularly volatile and inefficiently priced segment of the US equity market, these dynamics can create opportunities for active, disciplined investors,” said Frank Riccio, Head of Sales and Strategic Relationships—US Wealth Solutions. “Bill and his team have been able to leverage their decades of experience in this space to deliver strong risk-adjusted returns for our clients during what has been a particularly challenging three years. We’re excited to continue providing our clients access to small cap investment opportunities.”

In addition to I-share class, the fund is also offered as A-shares (FESAX) and R-shares (FESRX), both of which were incepted on July 1, 2021.

About First Eagle Investments

First Eagle Investments is an independent, privately owned investment management firm headquartered in New York with approximately $138 billion in assets under management as of March 31, 2024.^* Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing, with a strong emphasis on downside mitigation. With a heritage dating back to 1864, First Eagle strives to help clients avoid permanent impairment of capital and earn attractive returns through widely varied economic cycles. The firm’s investment capabilities include equity, fixed income, alternative credit and multi-asset strategies. For more information, please visit www.firsteagle.com.

* The total AUM represents the combined AUM of (i) First Eagle Investment Management, LLC, (ii) its subsidiary investment advisers, First Eagle Separate Account Management, LLC, First Eagle Alternative Credit (“FEAC”) and Napier Park Global Capital (“Napier Park”), and (iii) Regatta Loan Management LLC, an advisory affiliate of Napier Park. The total AUM includes $1.7 billion of committed and other non-fee-paying capital from FEAC, and $1.8 billion of committed and other non-fee-paying capital from Napier Park.

First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers. First Eagle Alternative Credit and Napier Park are brand names for the two subsidiary investment advisers engaged in the alternative credit business.

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 at www.firsteagle.com or by calling 800.334.2143. The average annual returns are historical and reflect changes in share price, reinvested dividends and are net of expenses. “With sales charge” performance for Class A Shares gives effect to the deduction of the maximum sales charge of 5.00% thereafter. Class I Shares require $1MM minimum investment and are offered without sales charge. Class R6 Shares are offered without sales charge. Operating expenses reflect the Fund’s total annual operating expenses for the share class as of the Fund’s most current prospectus, including management fees and other expenses.

1. First Eagle Investment Management, LLC (the ‘‘Adviser) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, and I so that the total annual operating expenses (excluding interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, dividend and other expenses relating to short sales, and extraordinary expenses, if any) (‘‘annual operating expenses’’) of each class are limited to 1.25%, 1.00% and 1.00% of average net assets, respectively. Each of these undertakings lasts until February 28, 2025 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, and I will repay the Adviser 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 the lesser of: (1) 1.25%, 1.00% and 1.00% 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 the Adviser incurred the expense.

2. Inception performance for the indices is as of the Fund A shares’ inception date, which have the oldest since inception date for the Small Cap Opportunity Fund.

3. Primary index.

Risk Disclosures:

The value and liquidity of portfolio holdings may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the United States or abroad. During periods of market volatility, the value of individual securities and other investments at times may decline significantly and rapidly. The securities of small and micro-size companies can be more volatile in price than those of larger companies and may be more difficult or expensive to trade.

There are risks associated with investing in foreign investments (including depositary receipts). Foreign investments, which can be denominated in foreign currencies, are susceptible to less politically, economically and socially stable environments, fluctuations in the value of foreign currency and exchange rates, and adverse changes to government regulations.

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.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy or product.

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 viewed at www.firsteagle.com. You may also request printed copies by calling us at 800-747-2008. Please read our prospectus carefully before investing.

Investments are not FDIC insured or bank guaranteed and may lose value.

First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers.

The First Eagle Funds are offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC, which provides advisory services.

© 2024 First Eagle Investment Management, LLC. All rights reserved.

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