US Dividend Equity Strategy


Inception Date: NOV 20, 1998

Investment Philosophy

We believe that the market episodically fails to recognize the "intrinsic value" of such companies, and we selectively invest in them when their market price represents an appropriate “margin of safety.”
 

Strategy Highlights

  • 03 Quality FPO

    Selectivity focused on quality

    We seek a portfolio of select high-quality, high-cash generative companies that have maintained or grown their dividends over time.

  • Absolute Return Orientation

    Seek income from growing dividends

    Companies that have maintained or grown dividends have in general, historically provided a more attractive risk/return profile

  • Flexible Vehicle Structure Icon

    Foundation of a proven philosophy

    Consistent philosophy with the First Eagle Global Value research platform

  1. Risk Disclosures

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

  3. The value of the Strategy’s portfolio holdings may fluctuate in response to events specific to the companies or markets in which US Dividend Equity Strategy invests, as well as economic, political, or social events in the United States or abroad. Recent market conditions and events, including a global public health crisis and actions taken by governments in response, may exacerbate volatility. The value of the portfolio may fluctuate in response to the risk that the prices of equity securities, including common stock, rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

  4. Income generation is not guaranteed. If dividend paying stocks in the Strategy's portfolio stop paying or reduce dividends, the Strategy's ability to generate income will be adversely affected.

  5. 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.

  6. The Strategy is a non-diversified, and as a result, an investment in US Dividend Equity Strategy may expose your money to greater risks than if you invest in a diversified strategy.

  7. Disclosures

  8. Effective August 14, 2020, the US Dividend Equity Strategy changed its investment objective and principal investment strategy. Under the prior objective and strategy, the portfolio and investment characteristics differed substantially from that now presented. Current management is also as of August 14, 2020.

  9. These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

  10. 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.

  11. Definitions

  12. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets.

  13. 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.

  14. Benchmark Definitions

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

  16. Standard & Poor's 500 Index: Standard & Poor's 500 Index is a widely recognized unmanaged index including a representative sample of 500 leading companies in leading sectors of the U.S. economy and is not available for purchase. Although the Standard & Poor's 500 Index focuses on the large-cap segment of the market, with approximately 80% coverage of U.S. equities, it is also considered a proxy for the total market.

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  • Julien Albertini

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    2002
    Year joined:  
    2013
  • Manish Gupta

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    2005
    Year joined:  
    2009
  • Christian Heck

    Portfolio Manager, Associate Director of Research and Senior Research Analyst

    Industry start:  
    2011
    Year joined:  
    2013