Investment Philosophy

The team seeks to invest in small and midcap companies that have become disconnected from their normalized valuations and have an identifiable catalyst for improvement. The smid cap strategy’s broad opportunity set promotes the potential for an attractive risk/return tradeoff and positions the team to capture the evolution of quality businesses as they grow.

  • Transitional Company Focus

    The seasoned management team has deep experience identifying value in companies’ life cycles through all markets.

  • Catalyst-Driven Value

    The U.S. Smid Cap Opportunity Fund employs in-house fundamental research in an effort to identify temporarily mispriced companies with potential catalysts for earnings-growth normalization.

  • Volatility Leads to Potential Opportunity

    The smid cap market may create attractive opportunities within security-level volatility due to short-and long-term dislocations in the market for disciplined active investors. It seeks to provide an enhanced risk/return trade-off by combining investment opportunities from both the small and midcap market segments.

Our Process

The team uses a bottom-up process, building the portfolio stock by stock.

  • 01

    Narrow the Universe

    The team narrows the approximately 4,000 US small and midcap stock universe using their historical investment experience, by attending management meetings, conference calls, investment conferences, and by following industry trade journals.

  • 02

    Conduct Fundamental Research

    The team aims to identify companies that have low multiples and a potential catalyst for improvement.

    Low Multiples
    • The team seeks to uncover companies that they believe are trading at a significantly discounted price/book or price/sales.
    • Holdings typically fall into at least one category below:
      • Turnarounds
      • Inefficiently valued assets
      • Accelerating growth
      • Overlooked leaders

    Catalyst for Improvement
    • Utilizing the team’s analysis and deep institutional knowledge of competitors, industry and existing holdings used for comparisons, they seek to determine the likelihood of execution success.
    • Some potential catalysts the team look for that could lead to a company’s return to normalized earnings are:
      • New management
      • More favorable business cycle
      • Product innovation
      • Margin improvement

  • 03

    Construct Portfolio

    • Selective approach with approximately 70-100 positions
    • Typical holding has a market cap of $4-$7B
    • Annual turnover expected 15%–25%

Competitive Advantage

  • Seasoned team, experienced in identifying value in companies' life cycles through all markets
  • Time-tested, catalyst-driven value approach
  • Experience to find opportunity in short- and long-term dislocations due to volatility

  1. Disclosures

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

  3. The above are not investment guidelines or restrictions and are subject to change without notice.

  4. Not all companies held in this Fund will meet the criteria listed.

  5. First Eagle U.S. Smid Cap Opportunity Fund commenced on August 15, 2022.

  6. Inception dates shown for the Russell 2500TM Value and Russell 2500TM Indices match that of the U.S. Smid Cap Opportunity Fund.

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  1. Definitions

  2. Russell 2500TM Index is a market-cap-weighted index that includes the smallest 2,500 companies covered in the broad-based Russell 3000 sphere of United States-based listed equities. All 2,500 of the companies included in the Index cover the small- and mid-cap market capitalizations.

  3. Russell 2500TM Value Index measures the performance of small-cap value segment of the US equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. 

  4. 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.

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Average Annual Returns

TickerClassYTD %1 MO3 MO1 YR3 YR5 YR10 YRINCEPT %Expense Ratio
GrossNet
FEMAX A w/out load   8.46%   5.05%   8.46%  23.35%      -      -      -   7.52%   7.09%   1.21%
FEMAX A w/load   3.09%  -0.18%   3.09%  17.17%      -      -      -   4.15%   7.09%   1.21%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                
FEMAX A w/out load   8.46%   5.05%   8.46%  23.35%      -      -      -   7.52%   7.09%   1.21%
FEMAX A w/load   3.09%  -0.18%   3.09%  17.17%      -      -      -   4.15%   7.09%   1.21%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                
FESMX I   8.41%   5.06%   8.41%  23.64%      -      -      -   7.80%   2.97%   0.96%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                
FESMX I   8.41%   5.06%   8.41%  23.64%      -      -      -   7.80%   2.97%   0.96%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                
FEXRX R6   8.49%   5.03%   8.49%  23.65%      -      -      -   7.78%   8.97%   0.96%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                
FEXRX R6   8.49%   5.03%   8.49%  23.65%      -      -      -   7.78%   8.97%   0.96%
Russell 2500 Value Index (since inception based on I Shares)   6.07%   4.93%   6.07%  21.33%       -       -       -   6.76%                
Russell 2500 Index (since inception based on I Shares)   6.92%   4.13%   6.92%  21.43%       -       -       -   7.36%                

Source: FactSet; data as of Mar 31, 2024.

Source: FactSet; data as of Mar 31, 2024.

  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.

  2. First Eagle Investment Management, LLC (the ‘‘Adviser’’) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I 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 1.20%, 0.95% and 0.95% 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, I and R6 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) 1.20%, 0.95% and 0.95% 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.

  1. Disclosures

  2. “With load” performance for Class A Shares gives effect to the deduction of the maximum sales charge of 5.00%.

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

  4. The above are not investment guidelines or restrictions and are subject to change without notice.

  5. Not all companies held in this Fund will meet the criteria listed.

  6. U.S. Smid Cap Opportunity Fund Inception date: 08/15/2022

  7. Inception dates shown for the Russell 2500TM Value and Russell 2500TM Indices match that of the U.S. Smid Cap Opportunity Fund.

  1. Definitions

  2. Russell 2500™ Index (Gross/Total) measures the performance of the small to midcap segment of the US equity universe, commonly referred to as “smid” cap. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. A Total Return Index tracks price changes and reinvestment of distribution income.

  3. Russell 2500™  Value Index (Gross/Total) measures the performance of the small to mid-cap value segment of the US equity universe. It includes those Russell 2500 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 years). The Russell 2500 Value Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap value market. A Total Return Index tracks price changes and reinvestment of distribution income.

Top Ten Holdings (%)

As of Mar 31, 2024

XPO, Inc. 2.77
Tenet Healthcare Corporation 2.68
MKS Instruments, Inc. 2.59
Curtiss-Wright Corporation 2.51
Cardinal Health, Inc. 2.38
Air Lease Corporation Class A 2.18
Performance Food Group Co 2.16
Ingersoll Rand Inc. 2.04
Onto Innovation, Inc. 2.02
Evercore Inc. Class A 1.99
Top Ten Holdings as a Percentage of Total Net Assets 23.32

Allocation By Sector (%)

Industrials: 22.00%
Health Care: 15.80%
Consumer Discretionary: 15.11%
Information Technology: 14.19%
Financials: 9.83%
Materials: 7.25%
Energy: 6.41%
Consumer Staples: 6.26%
Short-Term, Cash & Cash Equivalents: 3.17%
Source: FactSet; data as of Dec 31, 2023.
Industrials 22.00%
Health Care 15.80%
Consumer Discretionary 15.11%
Information Technology 14.19%
Financials 9.83%
Materials 7.25%
Energy 6.41%
Consumer Staples 6.26%
Short-Term, Cash & Cash Equivalents 3.17%

Allocation By Asset Class (%)

US Stocks: 96.83%
Short-Term, Cash & Cash Equivalents: 3.17%
Source: FactSet; data as of Dec 31, 2023.
US Stocks 96.83%
Short-Term, Cash & Cash Equivalents 3.17%

  1. Definitions

  2. Russell 2500™ Index (Gross/Total) measures the performance of the small to midcap segment of the US equity universe, commonly referred to as “smid” cap. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. A Total Return Index tracks price changes and reinvestment of distribution income.

  3. Russell 2500™  Value Index (Gross/Total) measures the performance of the small to mid-cap value segment of the US equity universe. It includes those Russell 2500 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 years). The Russell 2500 Value Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap value market. A Total Return Index tracks price changes and reinvestment of distribution income.

  4. Indices are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index.

Fund Management

  • Suzanne Franks Headshot

    Suzanne Franks

    Associate Portfolio Manager
    Industry start:  
    2004
    Year joined:  
    2021
  • Bill Hench Headshot

    Bill Hench

    Head of Small Cap Team and Portfolio Manager
    Industry start:  
    1992
    Year joined:  
    2021
  • Rob Kosowsky Headshot

    Rob Kosowsky

    Associate Portfolio Manager
    Industry start:  
    2002
    Year joined:  
    2021
  • Adam Mielnik Headshot

    Adam Mielnik

    Senior Research Analyst
    Industry start:  
    2014
    Year joined:  
    2021

Our Process

The team uses a bottom-up process, building the portfolio stock by stock.

  • 01

    Narrow the Universe

    The team narrows the approximately 4,000 US small and midcap stock universe using their historical investment experience, by attending management meetings, conference calls, investment conferences, and by following industry trade journals.

  • 02

    Conduct Fundamental Research

    The team aims to identify companies that have low multiples and a potential catalyst for improvement.

    Low Multiples
    • The team seeks to uncover companies that they believe are trading at a significantly discounted price/book or price/sales.
    • Holdings typically fall into at least one category below:
      • Inefficiently valued assets
      • Turnarounds
      • Accelerating growth
      • Overlooked leaders

    Catalyst for Improvement
    • Utilizing the team’s analysis and deep institutional knowledge of competitors, industry and existing holdings used for comparisons, they seek to determine the likelihood of execution success.
    • Some potential catalysts the team look for that could lead to a company’s return to normalized earnings are:
      • New management
      • More favorable business cycle
      • Product innovation
      • Margin improvement

  • 03

    Construct Portfolio

    • Selective approach with approximately 70-100 positions
    • Typical holding has a market cap of $4-$7B
    • Annual turnover expected 15%–25%

Competitive Advantage

  • Seasoned team, experienced in identifying value in companies' life cycles through all markets
  • Time-tested, catalyst-driven value approach
  • Experience to find opportunity in short- and long-term dislocations due to volatility

Share Class A (FEMAX)

Expense Ratio and Shareholder Fees as of March 1, 2024

Shareholder Fee (%)

These are the fees paid directly from your investment.

 Sales ChargeDealer Re-Allowance
Less than $25,0005.004.50
$25,000 but less than $50,0004.504.25
$50,000 but less than $100,0004.003.75
$100,000 but less than $250,0003.253.00
$250,000 but less than $500,0002.502.25
$500,000 but less than $1,000,0001.501.25
$1,000,000 and over10.000.00

 

Expense Ratio (%)

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

Management Fees20.75
Distribution and Service (12b-1) Fees0.25
Other Expenses6.08
Acquired Fund Fees and Expenses0.01
Total Annual Operating Expenses7.09
Fee Waiver and/or Expense Reimbursement2-5.88
Total Annual Operating Expenses after Fee Waiver and/or Expense Reimbursement1.21

  1. Disclosures

  2. 1

    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.

  3. 2

    First Eagle Investment Management, LLC (the ‘‘Adviser’’) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I 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 1.20%, 0.95% and 0.95% 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, I and R6 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) 1.20%, 0.95% and 0.95% 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.

  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 I (FESMX)

Expense Ratio and Shareholder Fees as of March 1, 2024

Expense Ratio (%)

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

Management Fees10.75
Distribution and/or Service (12b-1) Fees0.00
Other Expenses2.21
Acquired Fund Fees and Expenses0.01
Total Annual Operating Expenses2.97
Fee Waiver and/or Expense Reimbursement1-2.01
Total Annual Operating Expenses after Fee Waiver and/or Expense Reimbursement0.96

  1. Disclosures

  2. 1

    First Eagle Investment Management, LLC (the ‘‘Adviser’’) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I 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 1.20%, 0.95% and 0.95% 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, I and R6 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) 1.20%, 0.95% and 0.95% 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.

  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 R6 (FEXRX)

Expense Ratio and Shareholder Fees as of March 1, 2024

Expense Ratio (%)

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

Management Fees10.75
Distribution and/or Service (12b-1) Fees0.00
Other Expenses8.21
Acquired Fund Fees and Expenses0.01
Total Annual Operating Expenses8.97
Fee Waiver and/or Expense Reimbursement1-8.01
Total Annual Operating Expenses after Fee Waiver and/or Expense Reimbursement0.96

  1. Disclosures

  2. 1

    First Eagle Investment Management, LLC (the ‘‘Adviser’’) has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I 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 1.20%, 0.95% and 0.95% 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, I and R6 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) 1.20%, 0.95% and 0.95% 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.

  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.

  1. 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.

Capital Gains Distributions

Record DateEx & Reinvestment DatePayable DateOrdinary IncomeShort Term Capital GainsLong Term Capital GainsLong Term Capital Gains - 28%Total Distribution
12/04/2023 12/05/2023 12/06/2023 $0.185 $0.000 $0.000 $0.000 $0.185
11/30/2022 12/01/2022 12/02/2022 $0.011 $0.000 $0.000 $0.000 $0.011
12/04/2023 12/05/2023 12/06/2023 $0.037 $0.000 $0.000 $0.000 $0.037
11/30/2022 12/01/2022 12/02/2022 $0.029 $0.000 $0.000 $0.000 $0.029
12/04/2023 12/05/2023 12/06/2023 $0.334 $0.000 $0.000 $0.000 $0.334
11/30/2022 12/01/2022 12/02/2022 $0.036 $0.000 $0.000 $0.000 $0.036

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

  2. 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.

  3. "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.

  4. 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.

Fund Literature

Prospectus

Annual Report
Fact Sheet
Dealer Fact Guide

  1. The prospectus and summary prospectus may be viewed online or by calling us at 800-334-2143. Please read our prospectus carefully before investing.  Investments are not FDIC insured or bank guaranteed and may lose value.

  2. 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.

  1. Risk Disclosures

  2. The First Eagle U.S. Smid Cap Opportunity Fund (“Fund”) is new and may not be successful under all future market conditions. The Fund may not attract sufficient assets to achieve investment, trading or other efficiencies.

  3. 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 medium-size companies can be more volatile in price than those of larger companies and may be more difficult or expensive to trade.

  4. 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.

  5. A 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  6. All investments involve the risk of loss of principal.

  7. Actual portfolio characteristics may differ. The portfolio is actively managed and is subject to change. The above are not investment guidelines or restrictions

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

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  1. 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 online or calling us at 800.747.2008. Please read the prospectus carefully before investing. Investments are not FDIC insured or bank guaranteed and may lose value.

  2. 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.

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

  4. Check the background of FEF Distributors, LLC (Member SIPC) on FINRA's BrokerCheck.