e-fundresearch.com: First Eagle is known for paying particular attention to always maintaining a certain gold- or gold-related asset quota in its portfolios – why?
First Eagle Amundi Income Builder Fund: We believe that gold-related securities offer a potential protection against extreme and unpredictable market events, such as Lehman and worse. The future being by definition uncertain we believe in the value of gold as at least partial protection against such extreme events. For First Eagle Amundi Income Builder Fund we will typically maintain an exposure of around 2 to 5% in gold-related securities.
e-fundresearch.com: What are the most significant USPs of the First Eagle Amundi Income Builder Fund in comparison to competing multi-asset funds?
First Eagle Amundi Income Builder Fund: Most multi-asset funds with an income generation target available in the market are chasing yields, some even at all costs, thus often taking a lot of capital loss risk in order to maximize their income level. First Eagle Amundi International Fund however will only invest in income generating securities when these offer an attractive level of margin of safety, hence minimizing the risk of permanent capital loss over time. Moreover, most multi-asset funds are driven by top-down allocation, while First Eagle Amundi Income Builder Fund follows First Eagle's highly reputed bottom-up stock picking approach based on the unconstrained search for margin of safety. Finally, being driven by a rigorously implemented pure buy and sell discipline First Eagle Amundi Income Builder Fund is an easy to understand investment solution with a very predictable behavior through various market environments. First Eagle Amundi Income Builder Fund is a "sleep well" fund for long term investors searching for a meaningful and sustainable income solution over time.
