e-fundresearch.com: What asset classes does the fund essentially cover and who is responsible for the overall asset allocation of the fund? Based on what key-criteria do you undertake the strategic asset allocation of the portfolio?
First Eagle Amundi Income Builder Fund: First Eagle Amundi Income Builder Fund is a core long term wealth management solution with a dual mandate. The fund seeks to deliver a meaningful level of income today while preserving and if possible growing the purchasing power of tomorrow's income stream. In order to achieve these two objectives, the fund will mainly invest in dividend paying equities and corporate bonds around the world offering an appropriate margin of safety in order to minimize the risk of permanent impairment of capital over time. The fund is managed without any constraints by country, sector, market capitalization, credit rating or index coverage. The fund's investment team, the First Eagle Global Income Builder Team, may also hold government bonds and cash when attractive investment opportunities in equities and credit with the requested margin of safety are less abundant. Moreover the fund will maintain a structural position in gold-related securities as a potential portfolio insurance policy against extreme and unpredictable market events.
The investment decisions are made in a team approach by the 4 portfolio managers composing the First Eagle Global Income Builder Team in association with the respective research analyst (20 fully dedicated equity and credit analysts). All 4 portfolio managers and the analyst in charge of suggesting the security will have to agree on the investment decision in order to initiate any new investment. However, while First Eagle imposes a high entry barrier for new investments, only one portfolio manager feeling uncomfortable with an existing position is sufficient to liquidate that holding.