Global Income Strategy


Inception Date: NOV 01, 2011

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

Investment Philosophy

The team uses a value approach, consisting of a bottom-up fundamental analysis, applied to identify income-producing equities and debt securities offering what the team believes to be an attractive expected return relative to their risk level. Investments will be made without any restrictions in terms of geographic allocation, market capitalization, sector, rating or time to maturity.
 

Strategy Highlights

  • Macro Awareness Insights

    Seek Meaningful and Sustainable Income

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

  • Bottom Up Investing

    Seek Downside Mitigation

    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.

  • 08 flexible

    Flexible, Benchmark-Agnostic Approach

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

  • Julien Albertini

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    2002
    Year joined:  
    2013
  • Idanna Appio

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    1998
    Year joined:  
    2015
  • Kimball Brooker Jr.

    Co-Head of Global Value Team and Portfolio Manager

    Industry start:  
    1992
    Year joined:  
    2009
  • 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 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”.

The team uses a value approach, consisting of a bottom-up fundamental analysis, applied to identify income-producing equities and debt securities offering what the team believes to be an attractive expected return relative to their risk level. Investments will be made without any restrictions in terms of geographic allocation, market capitalization, sector, rating or time to maturity. 

  • 01

    Idea Generation

    Seek broad array of possible income-producing opportunities across the capital structure 

    Equity Idea Generation

    • Companies misunderstood or temporarily disappointing investors
    • Industries or geographies out of favor
    • Underappreciated franchise businesses

     

    Credit Idea Generation

    • What the team believes to be stable and sufficient cash flows
    • Management with demonstrable positive track record
    • Asset value and/or security
  • 02

    Fundamental Research

    Analyze securities for “margin of safety” and income sustainability and determine what the team believes to be a securities intrinsic value

    • Deconstruct the financials
    • Understand the business
    • Assess the valuation
    • Security selection
  • 03

    Portfolio Construction

    Flexible bottom-up portfolio construction

    • Equity: Generate income and seek long-term growth of capital
    • Credit: Generate income
    • Cash and sovereign debt: Deferred purchasing power
    • Gold: Potential hedge
  • 04

    Risk Management

    Monitor investments in an effort to manage downside risk

    • Continuous engagement with companies
    • Continuous investment research

Annual Returns (%)

  1. Performance for 2011 is from November 1, 2011 to December 31, 2011.

  2. Past performance is not indicative of future results

Trailing Returns (%)

Period: 01-Nov-2011 to 30-Jun-20222nd QtrYTD1 Year3 Years5 YearsSince Inception (Nov-2011)
Global Income Builder Composite (Gross) -6.59 -6.64 -5.53 4.80 4.83 6.77
Global Income Builder Composite (Net) -6.76 -6.94 -6.18 4.04 4.06 5.98
Composite Index* -11.68 -16.47 -12.53 4.13 5.23 6.42
Excess Gross Return 5.09 9.82 7.00 0.67 -0.40 0.35
Excess Net Return 4.92 9.53 6.36 -0.09 -1.17 -0.44
MSCI World Index (Net) -16.19 -20.51 -14.34 7.00 7.67 9.22
Bloomberg Barclays US Aggregate Index -4.69 -10.35 -10.29 -0.93 0.88 1.76
  1. *

    The composite index consists of 60% of the MSCI World Index and 40% of the Bloomberg Barclays U.S. Aggregate Bond Index.

Disclosures

Year EndTotal Firm Assets (USD Millions)Composite Assets (USD Millions)Number of AccountsComposite GrossComposite Net60% MSCI World (Net)/ 40% Barclays US Agg3Y ex-post Std. Dev. Composite3Y ex-post Std. Dev. 60% MSCI World (Net)/ 40% Barclays US AggComposite Dispersion
2021 111,364 1,334 Five or Fewer 11.06% 10.23% 12.05% 11.15% 10.55% N.A.
2020 108,794 1,306 Five or Fewer 5.89% 5.10% 13.72% 11.09% 10.99% N.A.
2019 96,434 1,526 Five or Fewer 15.89% 15.02% 20.01% 6.08% 6.61% N.A.
2018 91,890 1,484 Five or Fewer -5.32% -6.03% -5.07% 6.31% 6.19% N.A.
2017 116,057 1,444 Five or Fewer 14.32% 13.46% 14.52% 6.81% 6.10% N.A.
2016 99,086 1,208 Five or Fewer 11.36% 10.53% 5.79% 7.61% 6.55% N.A.
2015 92,369 1,203 Five or Fewer -1.21% -1.95% -0.05% 7.00% 6.63% N.A.
2014 99,470 1,293 Five or Fewer 2.58% 1.82% 5.48% 6.99% 6.31% N.A.
2013 92,511 613 Five or Fewer 13.27% 12.42% 14.45% N.A.
2012 72,916 196 Five or Fewer 14.19% 13.33% 11.30% N.A.
2011 59,646 25 Five or Fewer -0.22% -0.33% -0.98% N.A.

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  1. Disclosures

  2. Note that the Capital Income Strategy has not yet launched and has no historical track record. The Strategy intends to leverage the Global Value Team’s existing research platform, which is responsible for several fundamental, bottom-up strategies with long track records

  3. First Eagle Investment Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. First Eagle Investment Management, LLC has been independently verified for the periods 01-Jan-1996 through 31-Dec-2020. The verification report is available upon request.

  4. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all of the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

  5. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

  6. First Eagle Investment Management, LLC is an independent SEC registered investment adviser. The firm maintains a complete list and description of composites, which is available upon request.

  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.

  1. Benchmarks

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

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

  4. 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 passthroughs), ABS, and CMBS.

  5. 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.

  1. Risk Disclosures

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

  3. 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.

  4. 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. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate these risks.

  5. High yield securities (commonly known as "junk bonds") which 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

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

  11. FEF Distributors, LLC (Member SIPC) distributes certain First Eagle products; it does not provide services to investors. As such, when FEF Distributors, LLC presents a strategy or product to an investor, FEF Distributors, LLC  does not determine whether the investment is in the best interests of, or is suitable for, the investor. Investors should exercise their own judgment and/or consult with a financial professional prior to investing in any First Eagle strategy or product.