Investment Philosophy

The High Income Fund seeks to maximize risk-adjusted returns by modifying risk exposure throughout the high yield credit cycle, and purchase securities with what we believe to be an appropriate “margin of safety”.

  • Risk and Investment Analytics Icon

    Risk Rotation Rather than Sector Rotation

    Focuses on fundamental credit research to gradually modify risk exposure throughout the high yield credit cycle.

  • Bottom Up Investing

    Focus on Downside Mitigation

    Seeks to invest only in opportunities that we feel have an attractive “margin of safety” at the time of purchase.

  • 08 flexible

    Benchmark-Agnostic Approach

    We may avoid securities and industries where we feel the issuer’s business model is not appropriate for a leveraged balance sheet and thus may significantly differ from the benchmark.

Our Process

The High Income Fund emphasizes a fundamental bottom-up research approach that drives the identification of investment opportunities in all market environments. The three phases of the process are:

  • 01

    Assess Credit Cycle and Strategy

    The team believes that effective management through the high yield cycle is critical to delivering consistent outperformance. They begin by assessing the primary market and continue with an evaluation of the global economic outlook.

    • Assess the primary market
    • Focus on spreads
    • Evaluate the global economic outlook
  • 02

    Conduct Fundamental Research

    The emphasis is on bottom-up fundamental research that drives the identification of investment opportunities in all market environments. Research focuses on answering one core question: Does the enterprise possess the ability and willingness to successfully pay coupons and repay or refinance principal?

    • Deconstructs the financials
    • Understands the business
    • Valuation 
  • 03

    Construct Portfolio

    The team approaches risk management at both credit-specific and portfolio levels.

    • Credit-level risk management begins at the security level. The team has the flexibility to invest in opportunities that they feel have an attractive “margin of safety” at the time of purchase. They seek to avoid issuances whose dynamics are unfavorable to high yield debt holders.
    • Portfolio-level risk management begins by rotating risk as the team considers it appropriate to each phase of the high-yield market cycle. In each phase, the strategy may move to overweight or underweight higher and lower quality credit tiers in order to add or reduce risk to the portfolio and to rebalance the portfolio’s sensitivity to economic growth.

Growth of $10,000

Select Benchmarks

Source: FactSet; data as of Dec 31, 2022.

  1. 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.

  1. Disclosures

  2. High Income Fund Inception dates: A Shares 01/03/2012, C Shares 01/03/2012, I Shares 11/19/2007, R3 Shares 05/01/2018, R4 Shares 07/29/2019, R5 Shares 07/29/2019, R6 Shares 03/01/2017.

  3. These are the actual Fund operating expenses prior to the application of fee waivers and/or expense reimbursements.  Had fees not been waived and/or expenses reimbursed, returns would have been lower.

  4. Effective July 1, 2021, First Eagle Investment Management, LLC (‘‘FEIM’’) and the Board of Trustees (the ‘‘Board’’) of First Eagle Funds (the ‘‘Trust’’), on behalf of the High Income Fund, have agreed to reduce the management fee from the annual rate of 0.70% of the average daily value of the Fund’s net assets to the annual rate of 0.45% of the average daily value of the Fund’s net assets. This fee reduction also supersedes the above referenced management fee waiver that had been in effect prior to July 1, 2021.

  5. 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.

  6. The average annual returns for Class A Shares “with sales charge” of the First Eagle High Income Fund gives effect to the deduction of the maximum sales charge of 4.50%.

  7. 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.

  8. 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.

  9. Class I Shares require $1MM minimum investment and are offered without sales charge. There is no minimum subsequent investment amount for Class I Shares.

  10. Class R Shares are offered without sales charge.

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

  12. The Fund commenced operations in its present form on December 30, 2011, and is successor to another mutual fund pursuant to a reorganization December 30, 2011. Information prior to December 30, 2011 is for this predecessor fund. Immediately after the reorganization, changes in net asset value of the Class I shares were partially impacted by differences in how the Fund and the predecessor fund price portfolio securities

  1. Definitions

  2. One cannot invest directly in an index. Indices do not incur management fees or other operating expenses.

  3. The Bloomberg Barclays US Corporate High Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt, is unmanaged, with dividends reinvested, and is not available for purchase.  The index includes both corporate and non-corporate sectors.  The corporate sectors are Industrial, Utility and Finance, which include both U.S. and non-U.S. corporations.  The index is presented here for comparison purposes only.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

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

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

Growth of $10K

Select Benchmarks

Source: FactSet; data as of Dec 31, 2022.

  1. 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.

Risk vs. Return Since Inception

FEHIXBloomberg US Corp. High Yield Index
Annualized Return (%)    6.28    5.89
Annualized Standard Deviation (%)    8.56   10.06
R-Square (%)   89.75  100.00
Beta    0.81    1.00
Alpha (annualized)    1.45    0.00
Information Ratio (annualized)    0.12     NA 

Source: FactSet; data as of Dec 31, 2022.

Calendar Year Returns

YearClass I (FEHIX)Bloomberg US Corp. HY Bond Index
2022 -8.46 -11.19
2021 3.48 5.28
2020 7.32 7.11
2019 8.93 14.32
2018 -0.42 -2.08
2017 4.86 7.50
2016 17.19 17.13
2015 -7.04 -4.47
2014 -0.24 2.45
2013 6.92 7.44
2012 15.19 15.81
2011 4.08 4.98
2010 15.76 15.12
2009 60.00 58.21
2007 -15.70 -26.16

Source: FactSet; data as of Dec 31, 2022.

TickerClassYTD %1 MO3 MO1 YR3 YR5 YR10 YRINCEPT %Expense Ratio
GrossNet
FEHAX A w/out load  -8.82%  -0.22%   4.04%  -8.82%   0.24%   1.67%   2.69%   3.63%   1.06% --
FEHAX A w/load -12.89%  -4.70%  -0.66% -12.89%  -1.27%   0.74%   2.23%   3.20%   1.06% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHAX A w/out load  -8.82%  -0.22%   4.04%  -8.82%   0.24%   1.67%   2.69%   3.63%   1.06% --
FEHAX A w/load -12.89%  -4.70%  -0.66% -12.89%  -1.27%   0.74%   2.23%   3.20%   1.06% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHCX C -10.25%  -1.15%   2.98% -10.25%  -0.48%   0.93%   1.94%   2.86%   1.84% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHCX C -10.25%  -1.15%   2.98% -10.25%  -0.48%   0.93%   1.94%   2.86%   1.84% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHIX I  -8.46%  -0.07%   4.24%  -8.46%   0.55%   1.97%   3.00%   6.31%   0.80% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHIX I  -8.46%  -0.07%   4.24%  -8.46%   0.55%   1.97%   3.00%   6.31%   0.80% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
EARHX R3  -8.95%  -0.11%   3.99%  -8.95%   0.07%      -      -   1.45%   1.23% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
EARHX R3  -8.95%  -0.11%   3.99%  -8.95%   0.07%      -      -   1.45%   1.23% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FIHRX R4 -10.03%  -0.24%   3.06% -10.03%  -0.59%      -      -   0.03%   1.49% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FIHRX R4 -10.03%  -0.24%   3.06% -10.03%  -0.59%      -      -   0.03%   1.49% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FERHX R5  -8.74%  -0.10%   4.10%  -8.74%   0.26%      -      -   0.78%   1.03% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FERHX R5  -8.74%  -0.10%   4.10%  -8.74%   0.26%      -      -   0.78%   1.03% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHRX R6  -8.39%  -0.07%   4.25%  -8.39%   0.58%   1.97%      -   2.24%   0.75% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%
FEHRX R6  -8.39%  -0.07%   4.25%  -8.39%   0.58%   1.97%      -   2.24%   0.75% --
Bloomberg US Corporate High Yield Index (since inception based on I Shares) -11.19%  -0.62%   4.17% -11.19%   0.05%   2.31%   4.03%   5.89%

Source: FactSet; data as of Dec 31, 2022.

Source: FactSet; data as of Dec 31, 2022.

  1. The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact a 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.

  1. Disclosures

  2. High Income Fund Inception dates: A Shares 01/03/2012, C Shares 01/03/2012, I Shares 11/19/2007, R3 Shares 05/01/2018, R4 Shares 07/29/2019, R5 Shares 07/29/2019, R6 Shares 03/01/2017.

  3. These are the actual Fund operating expenses prior to the application of fee waivers and/or expense reimbursements.  Had fees not been waived and/or expenses reimbursed, returns would have been lower.

  4. 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.

  5. The average annual returns for Class A Shares “with sales charge” of the First Eagle High Income Fund gives effect to the deduction of the maximum sales charge of 4.50%.

  6. 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.

  7. 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. Class I Shares require $1MM minimum investment and are offered without sales charge. There is no minimum subsequent investment amount for Class I Shares.

  9. Class R Shares are offered without sales charge.

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

  11. The Fund commenced operations in its present form on December 30, 2011, and is successor to another mutual fund pursuant to a reorganization December 30, 2011. Information prior to December 30, 2011 is for this predecessor fund. Immediately after the reorganization, changes in net asset value of the Class I shares were partially impacted by differences in how the Fund and the predecessor fund price portfolio securities

Show More Show Less
  1. Definitions

  2. One cannot invest directly in an index. Indices do not incur management fees or other operating expenses.

  3. The Bloomberg Barclays US Corporate High Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt, is unmanaged, with dividends reinvested, and is not available for purchase.  The index includes both corporate and non-corporate sectors.  The corporate sectors are Industrial, Utility and Finance, which include both U.S. and non-U.S. corporations.  The index is presented here for comparison purposes only.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

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

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

Show More Show Less

Top Ten Holdings (%)

As of Dec 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.16
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.82
Seg Holding LLC 5.625% 10/15/28 BB- 1.70
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.59
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.48
Sprint Corp. 7.875% 09/15/23 BB+ 1.45
Centene Corporation 4.25% 12/15/27 BBB- 1.38
Amn Healthcare, Inc. 4.625% 10/01/27 BB- 1.37
Vici Properties LP 5.75% 02/01/27 BBB- 1.35
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.34
Top Ten Holdings as a Percentage of Total Net Assets 15.63

Top Ten Holdings (%)

As of Nov 30, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.21
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.08
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.74
Seg Holding LLC 5.625% 10/15/28 BB- 1.68
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.53
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.43
Sprint Corp. 7.875% 09/15/23 BB+ 1.43
Centene Corporation 4.25% 12/15/27 BBB- 1.39
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.35
Amn Healthcare, Inc. 4.625% 10/01/27 BB- 1.34
Top Ten Holdings as a Percentage of Total Net Assets 16.20

Top Ten Holdings (%)

As of Oct 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.27
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.09
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.83
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.69
Seg Holding LLC 5.625% 10/15/28 BB- 1.68
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.53
Sprint Corp. 7.875% 09/15/23 BB+ 1.45
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.45
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.43
Centene Corporation 4.25% 12/15/27 BBB- 1.40
Top Ten Holdings as a Percentage of Total Net Assets 16.81

Top Ten Holdings (%)

As of Sep 30, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.19
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 1.99
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.89
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.72
Seg Holding LLC 5.625% 10/15/28 BB- 1.71
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.55
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.50
Sprint Corp. 7.875% 09/15/23 BB+ 1.44
Centene Corporation 4.25% 12/15/27 BBB- 1.39
AMN Healthcare 4.625% 10/01/27 BB- 1.37
Top Ten Holdings as a Percentage of Total Net Assets 16.76

Top Ten Holdings (%)

As of Aug 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.12
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.05
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.78
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.67
Seg Holding LLC 5.625% 10/15/28 BB- 1.60
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.52
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.44
Centene Corporation 4.25% 12/15/27 BBB- 1.37
AMN Healthcare 4.625% 10/01/27 BB- 1.34
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.33
Top Ten Holdings as a Percentage of Total Net Assets 16.21

Top Ten Holdings (%)

As of Jul 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.10
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.07
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.78
Seg Holding LLC 5.625% 10/15/28 BB- 1.57
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.54
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.50
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.42
Centene Corporation 4.25% 12/15/27 BBB- 1.39
AMN Healthcare 4.625% 10/01/27 BB- 1.36
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.33
Top Ten Holdings as a Percentage of Total Net Assets 16.07

Top Ten Holdings (%)

As of Jun 30, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.10
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.08
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.78
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.63
Seg Holding LLC 5.625% 10/15/28 BB- 1.59
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.44
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.43
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.36
Centene Corporation 4.25% 12/15/27 BBB- 1.35
AMN Healthcare 4.625% 10/01/27 BB- 1.33
Top Ten Holdings as a Percentage of Total Net Assets 16.10

Top Ten Holdings (%)

As of May 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.09
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.03
GLP Capital LP 5.25% 06/01/25 BBB- 1.90
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.75
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.67
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.56
Seg Holding LLC 5.625% 10/15/28 BB- 1.48
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.44
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.42
Centene Corporation 4.25% 12/15/27 BBB- 1.37
Top Ten Holdings as a Percentage of Total Net Assets 16.71

Top Ten Holdings (%)

As of Apr 30, 2022

G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 2.03
CITGO Petroleum Corp. 7.0% 06/15/25 B+ 2.03
GLP Capital LP 5.25% 06/01/25 BBB- 1.89
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.80
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.64
Seg Holding LLC 5.625% 10/15/28 BB- 1.57
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.53
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.45
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.44
Centene Corporation 4.25% 12/15/27 BBB- 1.31
Top Ten Holdings as a Percentage of Total Net Assets 16.69

Top Ten Holdings (%)

As of Mar 31, 2022

CITGO Petroleum Corp. 7.0% 06/15/25 B+ 1.94
G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 1.94
GLP Capital LP 5.25% 06/01/25 BBB- 1.82
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.78
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.61
Seg Holding LLC 5.625% 10/15/28 BB- 1.57
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.47
Vista Outdoor, Inc. 4.5% 03/15/29 BB 1.41
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.37
Centene Corporation 4.25% 12/15/27 BBB- 1.28
Top Ten Holdings as a Percentage of Total Net Assets 16.20

Top Ten Holdings (%)

As of Feb 28, 2022

G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 1.86
CITGO Petroleum Corp. 7.0% 06/15/25 B+ 1.85
Enquest PLC 7.0% 04/15/22 B- 1.84
GLP Capital LP 5.25% 06/01/25 BBB- 1.78
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.75
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.55
Seg Holding LLC 5.625% 10/15/28 BB- 1.55
Vista Outdoor, Inc. 4.5% 03/15/29 BB- 1.41
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.41
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.36
Top Ten Holdings as a Percentage of Total Net Assets 16.35

Top Ten Holdings (%)

As of Jan 31, 2022

G-III Apparel Group, Ltd. 7.875% 08/15/25 BB 1.86
CITGO Petroleum Corp. 7.0% 06/15/25 B+ 1.79
Enquest PLC 7.0% 04/15/22 B- 1.75
GLP Capital LP 5.25% 06/01/25 BBB- 1.75
IHO Verwaltungs GmbH 4.75% 09/15/26 BB- 1.70
Seg Holding LLC 5.625% 10/15/28 BB- 1.50
Taylor Morrison Communities, Inc. 5.875% 04/15/23 BB 1.50
Vista Outdoor, Inc. 4.5% 03/15/29 BB- 1.41
Consensus Cloud Solutions, Inc. 6.0% 10/15/26 B+ 1.40
Mexico Remittances Funding Fiduciary Estate Management SARL 4.88% 01/15/28 NR 1.37
Top Ten Holdings as a Percentage of Total Net Assets 16.02
  1. Top ten holdings represent high yield securities only.

Allocation by Industry (%)

Consumer Non-Cyclical: 25.93%
Consumer Cyclical: 12.37%
Energy: 10.39%
Technology: 10.04%
Short-Term, Cash & Cash Equivalents: 8.52%
Capital Goods: 7.78%
Finance Related: 7.26%
Basic Industry: 6.58%
Transportation: 6.07%
Communications: 4.97%
Owned No Guarantee: 0.09%
Source: FactSet; data as of Dec 31, 2022.
Consumer Non-Cyclical 25.93%
Consumer Cyclical 12.37%
Energy 10.39%
Technology 10.04%
Short-Term, Cash & Cash Equivalents 8.52%
Capital Goods 7.78%
Finance Related 7.26%
Basic Industry 6.58%
Transportation 6.07%
Communications 4.97%
Owned No Guarantee 0.09%
Consumer Non-Cyclical 24.47%
Consumer Cyclical 16.04%
Energy 11.65%
Technology 9.32%
Finance Related 7.08%
Capital Goods 7.07%
Basic Industry 6.92%
Communications 6.40%
Short-Term, Cash & Cash Equivalents 6.25%
Transportation 4.73%
Owned No Guarantee 0.08%
Consumer Non-Cyclical 26.78%
Consumer Cyclical 16.36%
Energy 10.49%
Technology 8.92%
Basic Industry 7.98%
Finance Related 7.18%
Capital Goods 7.11%
Short-Term, Cash & Cash Equivalents 5.05%
Communications 4.93%
Transportation 4.61%
REITS 0.50%
Owned No Guarantee 0.09%
Consumer Non-Cyclical 27.41%
Consumer Cyclical 18.69%
Energy 9.96%
Technology 8.16%
Basic Industry 8.03%
Capital Goods 6.98%
Finance Related 6.66%
Communications 5.04%
Short-Term, Cash & Cash Equivalents 4.59%
Transportation 3.92%
REITS 0.47%
Owned No Guarantee 0.09%
Consumer Non-Cyclical 25.56%
Consumer Cyclical 18.28%
Energy 9.58%
Basic Industry 8.30%
Technology 7.97%
Capital Goods 7.45%
Finance Related 6.67%
Communications 5.83%
Transportation 3.77%
REITS 0.44%
Owned No Guarantee 0.09%

Allocation by Asset Class (%)

US Corporate Bonds: 77.34%
International Corporate Bonds: 12.57%
Short-Term, Cash & Cash Equivalents: 8.52%
Term Loans: 1.57%
Other: 0.00%
Source: FactSet; data as of Dec 31, 2022.
US Corporate Bonds 77.34%
International Corporate Bonds 12.57%
Short-Term, Cash & Cash Equivalents 8.52%
Term Loans 1.57%
Other 0.00%
US Corporate Bonds 79.56%
International Corporate Bonds 13.24%
Short-Term, Cash & Cash Equivalents 6.25%
Term Loans 0.95%
Other 0.00%
US Corporate Bonds 81.22%
International Corporate Bonds 12.82%
Short-Term, Cash & Cash Equivalents 5.05%
Term Loans 0.91%
Other 0.00%
US Corporate Bonds 82.40%
International Corporate Bonds 12.21%
Short-Term, Cash & Cash Equivalents 4.59%
Term Loans 0.80%
Other 0.00%
US Corporate Bonds 79.96%
International Corporate Bonds 13.26%
Cash & Cash Equivalents 6.07%
Term Loans 0.72%
Other 0.00%

Allocation by Credit Quality (%)

BB: 59.80%
B: 25.34%
BBB and above: 8.25%
CCC and below: 4.61%
No Rating: 1.99%
Source: FactSet; data as of Dec 31, 2022.
  1. 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.

  2. Excludes cash and cash equivalents.

BB 59.80%
B 25.34%
BBB and above 8.25%
CCC and below 4.61%
No Rating 1.99%
BB 61.11%
B 25.37%
BBB and above 7.19%
CCC and below 4.51%
No Rating 1.83%
BB 59.52%
B 26.45%
BBB and above 8.22%
CCC and below 4.11%
No Rating 1.71%
BB 63.47%
B 26.17%
BBB and above 5.30%
CCC and below 3.62%
No Rating 1.44%
BB 61.94%
B 28.10%
BBB and above 5.12%
CCC and below 3.40%
No Rating 1.44%

Allocation by Maturity (%)

4-6 Years: 47.04%
7-10 Years: 39.15%
0-3 Years: 13.81%
10+ Years: 0.00%
Source: FactSet; data as of Dec 31, 2022.
4-6 Years 47.04%
7-10 Years 39.15%
0-3 Years 13.81%
10+ Years 0.00%
7-10 Years 42.51%
4-6 Years 41.46%
0-3 Years 16.04%
10+ Years 0.00%
7-10 Years 46.68%
4-6 Years 41.52%
0-3 Years 11.80%
10+ Years 0.00%
7-10 Years 51.94%
4-6 Years 41.23%
0-3 Years 6.83%
10+ Years 0.00%
7-10 Years 58.14%
4-6 Years 34.81%
0-3 Years 6.17%
10+ Years 0.88%
  1. Short-Term, Cash & Cash Equivalents include short-term investments; e.g., short-term commercial paper (5.3% of net assets) that settles in 90 days or less, longer-term commercial paper (0.0% of net assets) that settles in 91 days or more, with the balance in US T-bills or money market funds.

  2. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Based on total fair value of investment and cash/cash equivalents. Not a guarantee of future portfolio composition. Current and future portfolio holdings are subject to risk.

  3. Percentages may not sum to 100% due to rounding.

  1. Definitions

  2. Average coupon is the average of each bond's coupon payment, adjusted for its relative weighting in the portfolio.

  3. Average credit quality is the average of each bond's credit rating, adjusted for its relative weighting in the portfolio.

  4. SEC Yield is the standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses. This is also referred to as the 'standardized yield.' The number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund, and therefore may not be correlated with dividends and distributions paid. Had fees not been waived and/or expenses reimbursed, the SEC Yield would have been lower.

  5. Weighted average maturity is the average due date of scheduled principal payments on a loan, weighted by the amount of time such principal payments are outstanding. An amortization schedule that requires more principal payments to be made in later years will have a greater weighted average maturity than one that is front-end loaded.

Fund Management

  • Kevin Kuzio

    Associate Portfolio Manager and Senior Credit Analyst

    Industry start:  
    1993
    Year joined:  
    2011
  • Edward Meigs

    Co-Head of High Yield Team and Portfolio Manager

    Industry start:  
    1988
    Year joined:  
    2011
  • Sean Slein

    Co-Head of High Yield Team and Portfolio Manager

    Industry start:  
    1988
    Year joined:  
    2011

Our Process

The High Income Fund emphasizes a fundamental bottom-up research approach that drives the identification of investment opportunities in all market environments. The three phases of the process are:

  • 01

    Assess Credit Cycle and Strategy

    The team believes that effective management through the high yield cycle is critical to delivering consistent outperformance. They begin by assessing the primary market and continue with an evaluation of the global economic outlook.

    • Assess the primary market
    • Focus on spreads
    • Evaluate the global economic outlook
  • 02

    Conduct Fundamental Research

    The emphasis is on bottom-up fundamental research that drives the identification of investment opportunities in all market environments. Research focuses on answering one core question: Does the enterprise possess the ability and willingness to successfully pay coupons and repay or refinance principal?

    • Deconstruct the financials
    • Understand the business
    • Valuation
  • 03

    Construct Portfolio 

    The team approaches risk management at both credit-specific and portfolio levels.

    • Credit-level risk management begins at the security level. The team has the flexibility to invest in opportunities that they feel have an attractive “margin of safety” at the time of purchase. They seek to avoid issuances whose dynamics are unfavorable to high yield debt holders.
    • Portfolio-level risk management begins by rotating risk as the team considers it appropriate to each phase of the high yield market cycle. In each phase, the strategy may move to overweight or underweight higher and lower quality credit tiers in order to add or reduce risk to the portfolio and to rebalance the portfolio's sensitivity to economic growth.
  1. Definitions

  2. 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.

Share Class A (FEHAX)

Expense Ratio and Shareholder Fees as of January 1, 2023

Shareholder Fee (%)

These are the fees paid directly from your investment.

 Sales ChargeDealer Re-Allowance
Less than $100,0004.504.00
$100,000 but less than $250,0003.503.00
$250,000 and over10.000.00

 

Expense Ratio (%)

These are the expenses you pay each year as a percentage of the value of your investment

Management Fees0.45
Distribution and Service (12b-1) Fees0.25
Other Expenses20.36
Total Annual Operating Expenses (%)1.06
Fee Waiver3(0.12)
Total Annual Operating Expenses After Fee Waiver0.94
  1. Disclosures

  2. 1

    A contingent deferred sales charge of 1.00% may apply on certain redemptions of Class A shares made within 18 months following a purchase of $250,000 or more without an initial sales charge. The Distributor may pay dealers of record “finder’s fee” commissions of up to 1.00% of purchases of Class A shares not previously subject to a front-end sales charge or dealer commission paid by the investor.

  3. 2

    "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.

  4. 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.

  5. 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.

Share Class C (FEHCX)

Expense Ratio and Shareholder Fees as of January 1, 2023

Shareholder Fee (%)

These are the fees paid directly from your investment.

Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of your purchase or redemption price)
1.00

 

These are the expenses you pay each year as a percentage of the value of your investment

Management Fees0.45
Distribution and Service (12b-1) Fees1.00
Other Expenses10.39
Total Annual Operating Expenses (%)1.84
Fee Waiver3(0.15)
Total Annual Operating Expenses After Fee Waiver1.69
  1. Disclosures

  2. 1

    "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.

  3. 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.

Share Class I (FEHIX)

Expense Ratio and Shareholder Fees as of January 1, 2023

Expense Ratio (%)

These are the expenses you pay each year as a percentage of the value of your investment

Management Fees0.45
Other Expenses10.35
Total Annual Operating Expenses (%)0.80
Fee Waiver3(0.11)
Total Annual Operating Expenses After Fee Waiver0.69
  1. Disclosures

  2. 1

    "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.

  3. Class I Shares require $1MM minimum investment and are offered without sales charge. There is no minimum subsequent investment amount for Class I Shares.

  4. 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.

Share Class R3 (EARHX)

Expense Ratio and Shareholder Fees as of January 1, 2023

Expense Ratio (%)

These are the expenses you pay each year as a percentage of the value of your investment

Management Fees0.45
Distribution and Service (12b-1) Fees0.35
Other Expenses10.43
Total Annual Operating Expenses (%)1.23
Fee Waiver3(0.19)
Total Annual Operating Expenses After Fee Waiver1.04
  1. Disclosures

  2. 1

    "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.

  3. 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.

Share Class R4 (FIHRX)

Expense Ratio and Shareholder Fees as of January 1, 2023

Expense Ratio (%)

These are the expenses you pay each year as a percentage of the value of your investment

Management Fees0.45
Distribution and Service (12b-1) Fees0.10
Other Expenses10.94
Total Annual Operating Expenses (%)1.49
Fee Waiver3(0.70)
Total Annual Operating Expenses After Fee Waiver0.79
  1. Disclosures

  2. 1

    "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.

  3. 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.