First Eagle Overseas Fund to reopen to new investors

TheShadow

https://www.sec.gov/Archives/edgar/data/906352/000093041319000009/c92580_497.htm

497 1 c92580_497.htm
FIRST EAGLE FUNDS

First Eagle Overseas Fund

1345 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10105
(800) 334-2143

SUPPLEMENT DATED JANUARY 3, 2019
TO STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 1, 2018

This Supplement is intended to highlight certain changes to the Statement of Additional Information dated March 1, 2018, as may be amended or supplemented. Please review these matters carefully.

First Eagle Overseas Fund Opening to New Investors

Effective at the start of business on January 10, 2019, the First Eagle Overseas Fund (the “Overseas Fund”) will again begin accepting new investors without special restriction. At that time, shares of the Overseas Fund will be available for purchase as described in the section of the First Eagle Funds’ Prospectus entitled “About Your Investment—How to Purchase Shares.”

* * * *

The information contained in this Supplement modifies the First Eagle Funds’ Statement of Additional Information dated March 1, 2018, as may be amended or supplemented. In particular, and without limitation, the information contained in this Supplement modifies (and if inconsistent, replaces) information contained in the section of the Statement of Additional Information entitled “Fund Shares.”

Ted

@MFO Members: For your information.
Regards,
Ted
M* Snapshot SGOVX:
https://www.morningstar.com/funds/XNAS/SGOVX/quote.html

JoJo26

Gotta gather those assets baby.

David_Snowball

Investors are weird. SGOVX has been 14 consecutive months of outflows, peaking at a drawdown of $800 million in December, despite top-tier performance in 2018 (also in 2014, 2015, and 2016). 2017 saw fine absolute returns (14%) but rotten relative ones (it trailed by 13% in a frothy market, which is entirely predictable) and investors began inching toward the doors in late 2017 but not rushing until 2018.

"Long-term" now translates to "three-month," for many folks.

David

JoJo26

Investors, generally, just don't know what they're holding. For active managers, relative performance should be more of the driver of flows and 13% underperformance isn't going to be tolerable for most investors.

I like high tracking error, but even that (despite +14% absolute) would make me upset.

David_Snowball

Why?

JoJo26

Why?

Because 27% > 14%. I like high tracking error and that dispersion is way too much to handle, and it's not even an overly concentrated fund. Your everyday investor certainly won't be able to tolerate that type of underperformance. Sometimes it is that simple.

MikeM

This post answer smacks of market timing. Not something I (nor anybody, IMO) can consider myself an expert at.

Hmmm, where have I heard this before?

Mulder420

I had been thinking of this before, but it had been closed. Is this a good one for long term? for me is 10 to 15 years

Bobby

there's a 5% load; why pay that?

JoeD

Bobby said:

there's a 5% load; why pay that?

First Eagle Overseas Fund Class A (SGOVX)

This fund is now available NTF (No Transaction Fee) and offered load-waived through Fidelity.