Gold Investment Strategy
First Eagle seeks to provide exposure to the investment characteristics of gold and, to a limited extent, other precious metals through our gold-oriented strategies. These strategies invest primarily in gold, gold related securities and issuers principally engaged in the gold industry.
Overview
Our Philosophy
Capability Highlights
Time Horizon- Philosophy does not attempt to time the market or speculate on prices
- Long-term investment horizon is generally viewed favorably by company management teams
- Patience for depth of research required for custom research around each mine – no two mines are alike
Experience- First Eagle has been investing in gold since 1979*
- Investment team with deep experience in gold investing, including insights from sovereign research team
- Long institutional memory and knowledge of industry dynamics
Scale- More than $10bn in bullion holdings across various strategies; scale typically preferred in company management engagement
- Tenure in market and team mindset helps to maintain preferred partnerships including custodian relationships.
Strategy at a glance
| Approach | Actively Managed, Bottom-Up, Fundamental |
| Typical Allocation | strategy and client specific |
| Typical Investments | Mining companies and non-equity securities including: Gold bullion, silver bullion, cash and cash equivalents |
| Vehicles | Separate account, Mutual Fund, contact for additional capabilities |
The above are not investment guidelines or restrictions and are subject to change without notice.
The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.
Risk Disclosures
All investments involve the risk of loss of principal.
Investment in gold and gold-related investments present certain risks, including political and economic risks affecting the price of gold and other precious metals like changes in U.S. or foreign tax, currency or mining laws, increased environmental costs, international monetary and political policies, economic conditions within an individual country, trade imbalances and trade or currency restrictions between countries. The price of gold, in turn, is likely to affect the market prices of securities of companies mining or processing gold, and accordingly, the value of investments in such securities may also be affected. Gold related investments as a group have not performed as well as the stock market in general during periods when the U.S. dollar is strong, inflation is low and general economic conditions are stable. In addition, returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets. Investment in gold and gold related investments may be speculative and may be subject to greater price volatility than investments in other assets and types of companies.
Strategies whose investments are concentrated in a specific industry or sector may be subject to a higher degree of risk than funds whose investments are diversified and may not be suitable for all investors.
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.
Disclosures
Although First Eagle Investment Management, LLC has experience managing strategies involving gold and gold-related securities, the First Eagle Institutional Gold Strategy has limited operating history upon which investors can evaluate likely performance.
These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.
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.
Team & Process
Risk Disclosures
All investments involve the risk of loss of principal.
Investment in gold and gold-related investments present certain risks, including political and economic risks affecting the price of gold and other precious metals like changes in U.S. or foreign tax, currency or mining laws, increased environmental costs, international monetary and political policies, economic conditions within an individual country, trade imbalances and trade or currency restrictions between countries. The price of gold, in turn, is likely to affect the market prices of securities of companies mining or processing gold, and accordingly, the value of investments in such securities may also be affected. Gold related investments as a group have not performed as well as the stock market in general during periods when the U.S. dollar is strong, inflation is low and general economic conditions are stable. In addition, returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets. Investment in gold and gold related investments may be speculative and may be subject to greater price volatility than investments in other assets and types of companies.
Strategies whose investments are concentrated in a specific industry or sector may be subject to a higher degree of risk than funds whose investments are diversified and may not be suitable for all investors.
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.
Disclosures
Although First Eagle Investment Management, LLC has experience managing strategies involving gold and gold-related securities, the First Eagle Institutional Gold Strategy has limited operating history upon which investors can evaluate likely performance.
These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.
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.
Contact Us
Head of Institutional
Co-President of Napier Park
Client Service
Relationship Management Team