N-30D 1 a31727.txt FIRST EAGLE SOGEN FUNDS, INC. N-30D First Eagle SoGen Funds Annual Report October 31, 2001 First Eagle SoGen Global Fund First Eagle SoGen Overseas Fund First Eagle U.S. Value Fund First Eagle SoGen Gold Fund Annual Report ANNUAL REPORT First Eagle SoGen Funds, Inc. THE PRESIDENTS' LETTER Dear Shareholder: In the 1980's and in the 1990's -- for twenty years -- good news was the rule, at least in the United States market (and, to a lesser extent, in Europe). And whenever there was bad news (in October 1987 for example, or in the summer of 1998), the Federal Reserve flooded the system with liquidity, and the crisis was over in a month or two. No wonder a speculative bubble developed in the late 1990's... But over the past eighteen months, first the bubble burst, then the American (indeed the world) economy weakened, finally we had the tragedy of September 11th, all of which goes to show that there are risks with equities. Some may have forgotten it. We never did. We always insisted on what Benjamin Graham called the 'margin of safety'. We still do. In other words, we will only buy (or hold) a stock if its valuation is low enough, i.e. if it is selling much below what we perceive to be its 'intrinsic' value. Admittedly, we make exceptions to the rule (that's what rules are for...). On rare occasions -- and not without trepidation -- we buy -- to quote Warren Buffett -- 'a comfortable business at a questionable price.' To illustrate our investment approach, let's briefly discuss Corporacion Financiera Alba SA ('Alba'), a large stake in both your First Eagle SoGen Global and First Eagle SoGen Overseas Funds. A warning: we never know in advance which stocks we own will work out and which won't -- that's why we diversify -- so buyer beware.... Alba is a Spanish 'holding' company, i.e. it owns stakes in several businesses. About half its net asset value is accounted for by its 3% interest in Carrefour, and the rest is reasonably attractive. Carrefour is the second largest retailer in the world (after Wal-Mart) and, we believe, a 'comfortable' business but the stock, though much cheaper than Wal-Mart, is somewhat expensive to our taste. However, Alba sells at a 40% discount to its net asset value (value investors love discounts...). So we see Alba as an indirect, partial, but cheap way into Carrefour. Could then Alba be a 'comfortable' business at a 'comfortable' price? Only time will tell. In the continuing Bank for International Settlements saga, your funds' lawyers recently submitted a Statement of Claim to the International Tribunal in The Hague. Our valuation case is so simple and so strong that we believe we should prevail. But, if we do, it will take time. Our First Eagle U.S. Value Fund opened for business in September. We now have a global fund -- under current management for 23 years -- an international fund created 8 years ago -- and the new domestic equity fund. And a gold fund, just in case... Sincerely, Jean-Marie Eveillard John P. Arnhold Jean-Marie Eveillard John P. Arnhold Co-President Co-President December 3, 2001 2 First Eagle SoGen Funds, Inc. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE [Photo] Charles de Vaulx (left), Jean-Marie Eveillard (right) The bursting of the bubble that started mid-March 2000 resulted in huge losses on so-called 'new economy' stocks (defined as technology, media and telecommunications), both in the U.S. and outside the U.S. Starting in mid-October 2000, however, many 'old economy' stocks (typically the type of stocks held by the Funds) started to rally in the U.S. because they were cheap and because of the belief that any economic slowdown in the U.S. would be quickly followed by a V-shaped recovery. Interestingly, similar 'old economy' stocks have barely recovered outside the U.S., perhaps out of fear that the policy makers in Europe and Japan would never be able to engineer an economic recovery. This helps explain the difference in performance between the First Eagle SoGen Global Fund and the First Eagle SoGen Overseas Fund over the one year period ending October 31, 2001. The First Eagle SoGen Global, First Eagle SoGen Overseas and First Eagle SoGen Gold Funds have benefited to some extent from corporate activity as a few of the companies owned in the portfolios were the object of takeover bids (actual or anticipated), mergers or corporate reorganizations. Foreign exchange fluctuations had a very limited impact on the Funds as the euro was essentially flat over that period while the Funds were largely insulated from the yen's 11% decline against the U.S. dollar by being 65%-70% hedged. First Eagle SoGen Global Fund The net asset value of the Fund's Class `A' shares rose 9.0% between November 1, 2000 and October 31, 2001, better than the MSCI World Index which was down 25.51% over that period. Most of that performance came from the Global Fund's stocks in the U.S., where many value stocks were up over that period, particularly small cap value stocks. Gold related stocks also helped performance. 3 First Eagle SoGen Overseas Fund The net asset value of the Fund's Class `A' shares rose 2.0% for the period from November 1, 2000 to October 31, 2001, while the MSCI EAFE Index fell 24.93% over that period. The foreign stocks that helped the First Eagle SoGen Overseas Fund include those stocks that rose due to corporate activity that were discussed for the Global Fund (Legrand, Buderus AG, Canadian Pacific) as well as from stocks that rose on their own. These include: OPG, a wholesale drug distributor in the Netherlands; Industrias Penoles, S.A. de C.V., a Mexican silver producer; Mandom Corporation, a cosmetics manufacturer in Japan; Shaw Brothers Limited, a holding company with a stake in TVB in Hong Kong. A few securities had a negative impact on the First Eagle SoGen Overseas Fund's net asset value: Enodis plc, a United Kingdom manufacturer of commercial food equipment, and Shimano Inc., a Japanese manufacturer of bicycle parts. We believe the stock price drop of these two companies represents a good buying opportunity and we have been adding to these holdings. Finally, SwissAir Group (the Swiss airline carrier) went bankrupt late October 2001 in the aftermath of the September 11th attack. First Eagle U.S. Value Fund Between September 4, 2001, the inception date of the First Eagle U.S. Value Fund, and October 31, 2001, the net asset value of the Fund's Class `A' shares rose 1.60%, while the Russell 2000 declined 8.08% over that period. The Fund was just one week old when the shocking September 11th attacks took place. The Fund was only 35% invested by then, which cushioned the blow. Stocks that helped performance include names as varied as Hancock Fabrics, Inc. (retail), Adolph Coors Company (consumer products) or Furniture Brands International (consumer products), while decliners include Greif Brothers Corp. (paper and forest products) and Security Capital Group, Inc. (real estate), which has recently received a takeover offer of $26 per share (or about 26% more than its closing price of $20.70 per share on December 14, 2001) by General Electric Co. 4 First Eagle SoGen Gold Fund Between November 1, 2000 and October 31, 2001, the price of gold rose from $265 to $280, i.e. 5.7%, helped by reduced hedging activity by gold mining companies as well as global financial uncertainty. The net asset value of the Fund's Class `A' shares rose 45.2% while the FT Gold Mines Index was up 42.03% over that period. The Fund's performance was better than most, if not all, of its peers for three reasons. The first is that the Fund focuses primarily on the gold companies that do not hedge. The Fund also was not exposed to platinum/palladium stocks that were down over that period. Lastly, the Fund benefited from corporate activity, with both Homestake Mining and Normandy Mining receiving takeover bids at significant premia over where they were trading. Charles de Vaulx Charles de Vaulx Co-Manager 5 FIRST EAGLE SOGEN GLOBAL FUND 10/31/2001 -------------- FUND OVERVIEW The First Eagle SoGen Global Fund seeks long-term growth of capital by investing in a wide range of asset classes from markets in the United States and around the world. This truly global fund is managed with a highly disciplined, bottom-up, value oriented style that helps minimize risk. ------------------------- PERFORMANCE COMPARISON:
AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2001 ONE-YEAR FIVE-YEAR TEN-YEAR -------- --------- -------- First Eagle SoGen Global Fund (A Shares)............ 3.51% 7.60% 10.23% MSCI World Equity Index............................. (25.51%) 4.83% 7.64% Consumer Price Index................................ 2.13% 2.33% 2.61%
[PERFORMANCE GRAPH]
Growth of a $10,000 Initial Investment --------------------------------------------------- First Eagle Sogen MSCI Consumer Global Fund World Index Price Index 1990 10,000 10,000 10,000 1991 10,000 10,000 10,000 1992 10,617 9,477 10,328 1993 13,075 12,036 10,612 1994 14,372 12,957 10,889 1995 15,539 14,186 11,195 1996 17,710 16,498 11,530 1997 19,907 19,265 11,770 1998 19,042 22,204 11,937 1999 22,322 27,736 12,243 2000 24,357 28,039 12,666 2001 26,537 20,885 12,935
Performance is historical and is not indicative of future results. The Fund's results assume reinvestment of income dividends and capital gains distributions and give effect to the deduction of the maximum sales load of 3.75%. Effective March 1, 2000 the maximum sales load is 5.00%. The MSCI World Index returns assume reinvestment of dividends. This index is a widely followed, unmanaged group of stocks from 20 international markets and is not available for purchase. It is a trademark of Morgan Stanley Capital International SA in Geneva, Switzerland. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households.
----------------------------------- TOP 10 HOLDING Buderus AG (German manufacturer of heating systems) 5.99% Rayonier Inc. (U.S. forest products company) 5.29% Manpower Inc. (U.S. leading global temporary employment firm) 2.48% Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 2.40% Freeport McMoran Pfd. (B,C & D) (U.S. mining company) 1.85% Shimano Inc. (Japanese manufacturer of bicycle parts) 1.65% IMI plc (British industrial conglomerate) 1.24% Security Cap Group, Inc. (U.S. real estate operating and investment company) 1.20% Hornbach Holding AG Pfd. (German do-it-yourself superstore operator) 1.13% Kuehne & Nagel International AG (Swiss freight company) 1.13% ------------------------------------------- ASSET ALLOCATION U.S. Stocks 31.26% Foreign Stocks 47.77% U.S. Dollar Bonds 12.41% Foreign Currency Bonds 1.08% U.S. Dollar Cash and Equivalents 7.48% ------------------------------------------- TOP 5 COUNTRIES United States 31.26% Japan 10.25% Germany 8.88% France 4.62% Switzerland 2.86%
The Fund's portfolio composition is subject to change at any time. 6 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- U.S. (31.26%) Agriculture (0.37%) 135,000 Deere & Company $ 3,360,995 $ 4,993,650 2,485 J.G. Boswell Company 573,840 739,287 -------------- -------------- 3,934,835 5,732,937 -------------- -------------- Automotive (0.26%) 172,300 Bandag Incorporated, Class `A' 6,909,471 3,990,468 -------------- -------------- Capital Goods (1.72%) 240,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 8,139,212 10,080,000 107,500 Franklin Electric Company, Inc. 7,460,000 8,263,525 365,000 Kaiser Ventures Inc. 3,304,995 4,507,750 70,000 IDEX Corporation 1,662,671 2,037,000 4,805 Conbraco Industries, Inc. (a) 1,568,050 1,849,925 -------------- -------------- 22,134,928 26,738,200 -------------- -------------- Chemicals (0.22%) 3,775,000 Ethyl Corporation (a) 6,642,885 3,397,500 -------------- -------------- Consumer Products (2.41%) 585,000 Energizer Holdings, Inc. (a) 11,184,608 9,646,650 184,500 Allen Organ Company, Class `B' (c) 5,726,139 5,728,725 185,000 St. John Knits International Inc. (a) 3,180,703 5,180,000 245,000 Dole Food Company, Inc. 3,259,804 4,988,200 100,000 Philip Morris Companies, Inc. 2,123,038 4,680,000 50,000 Adolph Coors Company 2,245,668 2,487,500 85,000 Furniture Brands International (a) 503,775 2,040,850 300,000 A.T. Cross Company, Class `A' (a) 3,169,423 1,635,000 201,424 Jostens, Inc., Class `A' (a) 2,887,806 1,178,330 125,000 Baldwin Piano & Organ Company (a) 917,000 1,250 -------------- -------------- 35,197,964 37,566,505 -------------- -------------- Electronics (0.00%) 25,000 OpticNet Inc. -- 25 -------------- -------------- Energy (2.55%) 835,000 San Juan Basin Royalty Trust 4,945,091 9,560,750 100,000 Murphy Oil Corporation 3,959,554 7,950,000 275,000 CONSOL Energy, Inc. 5,091,819 7,590,000 100,000 Phillips Petroleum Company 4,087,205 5,441,000 245,000 Kaneb Services LLC 1,584,598 4,588,850 85,000 Burlington Resources, Inc. 2,656,933 3,166,250 700,000 Xanser Corporation (a) 741,146 1,400,000 -------------- -------------- 23,066,346 39,696,850 -------------- --------------
7 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- U.S. -- (continued) Financial Companies (0.38%) 65 Berkshire Hathaway Inc., Class `A' (a) $ 3,169,800 $ 4,628,000 114,750 East Texas Financial Services, Inc. (c) 862,687 1,053,405 31,000 Redwood Financial, Inc. (a)(e) 271,250 286,750 -------------- -------------- 4,303,737 5,968,155 -------------- -------------- Forest Products (6.61%) 1,925,000 Rayonier Inc. (c) 72,215,463 82,351,500 615,000 Greif Bros. Corporation, Class `A' (c) 11,017,026 15,252,000 204,800 Deltic Timber Corporation 3,719,963 5,427,200 -------------- -------------- 86,952,452 103,030,700 -------------- -------------- Health Care (0.39%) 135,000 DENTSPLY International, Inc. 3,107,470 6,073,650 -------------- -------------- Media (0.63%) 635,000 General Motors Corporation -- Class `H' (a) 10,386,330 8,731,250 34,924 Mills Music Trust (c) 1,055,337 1,012,796 -------------- -------------- 11,441,667 9,744,046 -------------- -------------- Precious Metals (2.30%) 700,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (d) 23,008,334 16,135,000 925,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (d) 14,053,198 7,538,750 305,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (d) 9,173,578 5,139,250 7,432 Case, Pomeroy & Company, Inc. Class `A' 7,366,948 7,108,708 -------------- -------------- 53,602,058 35,921,708 -------------- -------------- Real Estate (2.82%) 1,000,000 Security Capital Group, Inc. Class `B' (a) 15,298,036 18,700,000 510,000 Security Capital European Realty (a)(e) 10,199,990 10,026,600 500,000 Crescent Real Estate Equities Company 7,671,061 8,805,000 235,000 Price Legacy Corporation (a) 2,707,118 3,478,000 23,133 Price Legacy Corporation Pfd., Series `A' 228,127 345,260 150,000 Catellus Development Corporation (a) 253,547 2,580,000 -------------- -------------- 36,357,879 43,934,860 -------------- --------------
8 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- U.S. -- (continued) Retail (3.72%) 600,000 McDonald's Corporation $ 16,033,251 $ 15,642,000 455,000 The Sherwin-Williams Company 9,804,683 11,083,800 150,000 Costco Wholesale Corporation 4,783,334 5,674,500 240,000 Tiffany & Company 5,266,856 5,613,600 365,000 Hancock Fabrics, Inc. 1,327,576 4,288,750 125,000 The May Department Stores Company 2,829,038 3,931,250 145,000 Weyco Group, Inc. 1,502,428 3,733,750 100,000 Papa John's International Inc. (a) 2,211,624 2,786,000 215,000 Dillard's Inc., Class `A' 3,813,306 2,784,250 200,000 Handleman Company (a) 1,973,345 2,460,000 -------------- -------------- 49,545,441 57,997,900 -------------- -------------- Services (3.53%) 1,355,000 Manpower Inc. 40,243,269 38,698,800 472,700 UniFirst Corporation (c) 5,714,599 8,295,885 215,000 Chemed Corporation 6,084,804 6,095,250 77,392 KinderCare Learning Centers, Inc. (a) 992,527 1,934,800 -------------- -------------- 53,035,199 55,024,735 -------------- -------------- Technology (1.48%) 700,000 American Power Conversion Corporation (a) 8,205,405 9,009,000 165,000 Zebra Technologies Corporation, Class `A' (a) 6,599,132 7,601,550 335,000 Earthlink Inc. 2,520,505 4,907,750 565,000 APW Limited (a) 3,786,986 1,519,850 -------------- -------------- 21,112,028 23,038,150 -------------- -------------- Transportation (0.90%) 525,000 Burlington Northern Santa Fe Corporation 12,697,102 14,106,750 -------------- -------------- Utilities (0.97%) 250,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. 11,261,875 9,187,500 155,000 IDACORP, Inc. 4,879,507 5,890,000 -------------- -------------- 16,141,382 15,077,500 -------------- -------------- Common and Preferred Stocks-Non U.S. (47.77%) Argentina (0.13%) 1,750,000 Siderca S.A.I.C. (2) 1,279,456 1,996,298 -------------- --------------
9 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- Non U.S. -- (continued) Australia and New Zealand (1.81%) 3,150,000 Wilson & Horton Limited 5% exchangeable preference shares (c)(14) $ 16,143,687 $ 11,022,122 12,950,000 Carter Holt Harvey Limited (3) 14,077,421 7,600,918 8,850,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (18) 5,435,262 3,652,824 1,000,000 Spotless Group Limited (15) 1,620,341 3,067,385 4,000,000 Tasman Agriculture Limited (4) 1,711,335 2,873,150 -------------- -------------- 38,988,046 28,216,399 -------------- -------------- Austria (1.10%) 365,000 Flughafen Wien AG (8) 12,972,144 8,606,700 225,000 BBAG Oesterreichische Brau-Beteiligungs AG (11) 8,670,323 8,490,825 -------------- -------------- 21,642,467 17,097,525 -------------- -------------- Belgium (0.43%) 500,000 Deceuninck (5) 6,669,400 6,660,000 -------------- -------------- Canada (1.24%) 375,000 PanCanadian Energy Corporation (2) 4,298,978 10,387,500 292,500 Canadian Pacific Railway Limited (8) 2,216,595 4,931,550 146,250 Fairmont Hotels & Resorts Inc. (18) 1,258,126 2,610,562 146,250 CP Ships Limited (a)(8) 520,455 1,405,463 -------------- -------------- 8,294,154 19,335,075 -------------- -------------- Chile (0.10%) 250,000 Quinenco S.A. ADR (a)(19) 1,662,544 1,512,500 -------------- -------------- Commonwealth of Independent States (0.15%) 556,624 Firebird Fund, L.P. (a)(b)(e)(21) 1,000,000 2,359,930 -------------- -------------- Denmark (0.59%) 215,000 Carlsberg A/S `B' (11) 10,006,793 9,150,872 -------------- -------------- France (4.62%) 405,000 Schneider Electric SA (6) 5,665,783 16,212,960 295,000 Eurazeo (19) 11,333,239 15,120,225 27,500 Societe Sucriere de Pithiviers-le-Vieil (c)(4) 10,658,072 9,207,000 185,000 Sagem ADP (9) 6,551,420 6,360,300 70,000 NSC Groupe (c)(6) 12,400,388 5,603,850 11,250 Taittinger C.I. (c)(11) 2,775,854 5,138,437 385,000 Sabeton SA (c)(19) 4,841,233 3,932,775 73,500 Crometal SA (6) 4,938,687 3,218,197
10 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- Non U.S. -- (continued) France -- (continued) 70,000 Societe BIC SA (11) $ 2,642,368 $ 2,148,930 41,916 Robertet SA C.I. (c)(11) 781,686 1,659,874 20,448 Robertet SA (11) 527,638 1,196,208 54,844 Gaumont SA (a)(14) 2,673,307 1,505,468 34,250 Conflandey SA (1) 1,630,502 710,516 -------------- -------------- 67,420,177 72,014,740 -------------- -------------- Germany (8.88%) 3,715,000 Buderus AG (c)(6) 62,151,281 93,283,650 385,000 Hornbach Holding AG Pfd. (c)(12) 22,377,021 17,671,500 5,557,200 Bertelsmann AG D.R.C. (14) 13,223,972 10,515,630 600,000 Sudzucker AG Pfd. (4) 7,107,404 8,316,000 205,000 Bayer AG (7) 4,295,456 6,014,700 50,000 Axel Springer Verlag AG (14) 1,553,189 2,610,000 -------------- -------------- 110,708,323 138,411,480 -------------- -------------- Hong Kong (1.10%) 21,650,000 Shaw Brothers (Hong Kong) Limited (c)(14) 21,884,402 15,959,936 22,153,845 City e-Solutions Limited (c)(16) 1,000,825 1,164,497 -------------- -------------- 22,885,227 17,124,433 -------------- -------------- Israel (0.07%) 275,000 The Israel Land Development Company Limited (20) 900,749 1,178,296 -------------- -------------- Japan (10.25%) 2,055,000 Shimano Inc. (11) 33,138,585 25,731,561 435,000 Ono Pharmaceutical Company, Limited (13) 16,189,998 13,856,898 3,500,000 Nipponkoa Insurance Company, Limited (16) 13,149,072 13,150,372 235,000 Secom Company, Limited (15) 10,552,379 12,226,987 2,000,000 Mitsui Sumitomo Insurance Company, Limited (16) 11,261,568 11,108,388 1,000,000 Wacoal Corporation (11) 8,626,718 10,079,229 2,500,000 Aioi Insurance Company, Limited (16) 10,791,013 8,065,834 600,000 Chofu Seisakusho Company, Limited (6) 10,124,073 7,498,162 1,500,000 Nisshinbo Industries, Inc. (20) 7,724,683 6,983,582 2,000,000 Okumura Corporation (6) 9,490,804 6,942,743 700,000 Shoei Company, Limited (c)(19) 5,834,803 6,861,063 1,000,000 Kokusai Securities Company, Limited (16) 7,279,769 6,248,469 1,150,000 Makita Corporation (11) 9,907,551 6,190,068 175,000 Fuji Photo Film Company, Limited (11) 4,159,184 5,774,728
11 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- Non U.S. -- (continued) Japan -- (continued) 2,000,000 Aida Engineering, Limited (6) $ 13,038,988 $ 5,750,225 1,000,000 The Nichido Fire & Marine Insurance Company, Limited (16) 5,299,644 5,611,370 500,000 Hitachi, Limited (10) 3,601,871 3,410,112 2,000,000 Iino Kaiun Kaisha, Limited (8) 4,857,297 2,956,792 10,950 Toho Company, Limited (14) 1,467,644 1,270,032 -------------- -------------- 186,495,644 159,716,615 -------------- -------------- Mexico (0.76%) 12,000,000 Industrias Penoles, S.A. de C.V. (1) 26,462,656 11,864,004 -------------- -------------- Netherlands (1.00%) 315,000 OPG Groep NV (13) 7,677,057 10,631,250 325,000 Holdingmaatschappij de Telegraaf NV (14) 3,243,242 4,873,050 -------------- -------------- 10,920,299 15,504,300 -------------- -------------- Singapore and Malaysia (0.86%) 1,800,000 Fraser & Neave Limited (19) 6,455,221 6,763,391 2,825,000 Delgro Corporation Limited (19) 1,763,712 3,765,530 1,505,000 Times Publishing Limited (14) 2,930,314 2,806,835 -------------- -------------- 11,149,247 13,335,756 -------------- -------------- South Korea (2.57%) 2,125,000 Daeduck Electronics Company, Limited (9) 16,364,619 15,785,244 51,500 Nam Yang Dairy Products (c)(11) 10,223,638 11,488,768 900,000 Daeduck GDS Company, Limited (9) 4,991,577 5,507,359 23,500 Lotte Confectionery Company, Limited (11) 3,990,967 4,841,983 10,000 Lotte Chilsung Beverage Company (11) 1,525,540 2,378,002 -------------- -------------- 37,096,341 40,001,356 -------------- -------------- Spain and Portugal (2.98%) 1,875,000 Corporacion Financiera Alba SA (19) 42,004,053 37,462,500 565,000 Espirito Santo Financial Group SA ADR (16) 9,566,489 9,040,000 -------------- -------------- 51,570,542 46,502,500 -------------- -------------- Switzerland (2.86%) 365,000 Kuehne & Nagel International AG (8) 10,917,534 17,624,541 34,250 Edipresse SA (14) 9,052,716 9,222,766 15,000 Lindt & Sprungli AG PC (11) 2,661,221 7,701,958
12 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) ------------------------------------------------------------------------------ Common and Preferred Stocks -- Non U.S. -- (continued) Switzerland -- (continued) 29,500 Sika Finanz AG (5) $ 6,557,141 $ 6,111,230 10,000 Societe Generale d'Affichage (14) 2,094,287 3,659,731 75,000 SwissAir Group (8) 5,376,811 218,482 -------------- -------------- 36,659,710 44,538,708 -------------- -------------- Thailand (0.15%) 577,000 The Oriental Hotel Public Company Limited (18) 2,636,472 2,322,451 -------------- -------------- United Kingdom (2.57%) 6,000,000 IMI plc (20) 24,175,075 19,274,786 1,325,000 Antofagasta Holdings plc (1) 3,526,660 8,291,287 5,875,000 Enodis plc (6) 11,189,505 5,770,976 2,000,000 Aggregate Industries plc (5) 1,726,999 2,524,859 185,000 Lonmin plc (1) 712,409 2,106,656 3,000,000 McBride plc (11) 7,569,080 1,353,382 2,725,000 Royal Doulton plc (a)(11) 9,876,396 793,111 -------------- -------------- 58,776,124 40,115,057 -------------- -------------- Gold Related (3.36%) 995,000 Franco-Nevada Mining Corporation Limited 10,091,822 14,167,270 2,000,000 Gold Fields Limited 7,102,817 9,069,622 10,575,000 Normandy Mining Limited 6,476,297 7,444,694 315,000 Newmont Mining Corporation 5,466,400 7,308,000 550,000 Meridian Gold Inc. (a) 1,995,979 5,959,994 1,000,000 Harmony Gold Mining Company Limited 4,591,642 5,816,849 750,000 Pan American Silver Corporation (a) 2,579,121 2,622,460 -------------- -------------- 38,304,078 52,388,889 -------------- -------------- Miscellaneous (0.19%) 100,000 Banco Latinoamericano de Exportaciones S.A., Class `E' (BLADEX) (16) 1,501,875 2,918,000 -------------- -------------- Total Common and Preferred Stocks 1,199,213,168 1,231,305,823 -------------- -------------- ------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) ------------------------------------------------------------------------------ Bonds, Notes and Convertible Bonds (13.49%) U.S. Dollar Convertible Bonds (2.62%) $ 2,500,000 Medya International Limited 10% due 6/28/2001 (e)(f)(14) 2,482,264 25,000 6,000,000 Danka Business Systems plc 6 3/4% due 4/01/2002 (6) 5,503,963 1,650,000
13 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) ------------------------------------------------------------------------------ Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Convertible Bonds -- (continued) $ 3,000,000 LUKINTER Finance BV 3 1/2% due 5/06/2002 (2) $ 2,468,341 $ 3,780,000 3,000,000 Ashanti Goldfields Company Limited 5 1/2% due 3/15/2003 (1) 2,788,013 2,475,000 2,000,000 Agnico Eagle Mines Limited 3 1/2% due 1/27/2004 (1) 1,724,079 1,745,000 6,000,000 Coeur d'Alene Mines Corporation 6 3/8% due 1/31/2004 (1) 5,987,436 2,302,500 3,615,000 Coeur d'Alene Mines Corporation 6% due 6/10/2002 (1) 3,505,340 2,060,550 10,000,000 Friede Goldman Halter Marine Group Inc. 4 1/2% due 9/15/2004 (f)(6) 6,776,154 2,000,000 4,420,000 Battle Mountain Gold Company 6% due 1/04/2005 (1) 3,848,667 4,110,600 2,500,000 Blount International Inc. 7% due 6/15/2005 (6) 1,830,832 1,912,500 15,500,000 Blount International Inc. 13% due 8/01/2009 (6) 12,320,767 8,292,500 11,935,000 P.T. Inti Indorayon Utama 7% due 5/02/2006 (f)(3) 9,926,856 895,125 1,500,000 Samsung Electronics Company Limited 0% due 12/31/2007 (a)(9) 1,182,832 2,062,500 3,500,000 LG Electronics Inc. 1/4% due 12/31/2007 (9) 2,803,386 4,375,000 3,000,000 Jostens, Inc. 12 3/4% due 5/01/2010 (11) 2,874,852 3,180,000 -------------- -------------- 66,023,782 40,866,275 -------------- -------------- U.S. Dollar Bonds and Notes (5.74%) 4,644,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (f)(3) 3,515,596 644,355 666,000 P.T. Pabrik Kertas Tjiwi-Kimia 13 1/4% due 8/01/2049 (f)(3) 669,495 83,250 72,000 Florsheim Group Inc. 12 3/4% due 9/01/2002 (12) 70,522 24,480 8,000,000 The Southland Corporation 5% due 12/15/2003 (12) 7,252,815 7,560,000 5,589,000 The Southland Corporation 4% due 6/15/2004 (12) 4,669,947 4,918,320 2,625,000 Dillard's Inc. 6.43% due 8/01/2004 (6) 2,413,652 2,420,090 1,500,000 Hollinger International Publishing 8 5/8% due 3/15/2005 (14) 1,575,000 1,449,375 3,500,000 Hollinger International Publishing 9 1/4% due 3/15/2007 (14) 3,510,275 3,290,000 2,750,000 Westpoint Stevens Inc. 7 7/8% due 6/15/2005 (11) 2,339,987 921,250
14 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) ------------------------------------------------------------------------------ Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Bonds and Notes -- (continued) $ 2,000,000 Polaroid Corporation 11 1/2% due 2/15/2006 (f)(11) $ 2,027,500 $ 180,000 10,000,000 Riverwood International Corporation 10 1/4% due 4/01/2006 (3) 9,944,510 10,400,000 1,500,000 American Standard Inc. 7 1/8% due 6/01/2006 (5) 1,365,153 1,350,000 1,000,000 American Standard Inc. 8 1/4% due 6/01/2009 (5) 1,065,000 1,065,000 2,000,000 TriQuint Semiconductor Inc. 4% due 3/01/2007 (10) 1,385,402 1,537,500 3,500,000 Seagate Technology International 12 1/2% due 11/15/2007 (b)(10) 3,389,183 3,675,000 4,500,000 AMSC Acquisition Company Inc. 12 1/4% due 4/01/2008 (10) 4,258,194 675,000 8,000,000 Level 3 Communications, Inc. 9 1/8% due 5/01/2008 (6) 3,921,881 3,640,000 4,750,000 Domino's Inc. 10 3/8% due 1/15/2009 (11) 4,488,308 5,058,750 4,000,000 St. John Knits International Inc. 12 1/2% due 7/01/2009 (11) 3,855,975 3,660,000 6,000,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 (6) 5,948,794 5,967,000 2,500,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 144A (b)(6) 2,533,750 2,675,000 3,000,000 The Manitowoc Company, Inc. 10 3/8% due 5/15/2011 (6) 2,582,260 2,632,500 10,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(16) 6,050,977 7,700,000 2,000,000 P.T. Inti Indorayon Utama 9 1/8% due 10/15/2049 (f)(3) 1,922,646 105,000 5,500,000 Bergen Bank Floating Rate Perpetual Notes (3 5/8% @ 10/31/2001) (16) 3,888,750 4,363,425 3,500,000 Den Norske Bank Floating Rate Perpetual Notes (3 3/4% @ 10/31/2001) (16) 2,610,000 2,716,875 3,170,000 Den Norske Bank Floating Rate Perpetual Notes (3.65% @ 10/31/2001) (16) 2,059,625 2,496,375 10,000,000 Christiania Bank Floating Rate Perpetual Notes (8.0375% @ 10/31/2001) (16) 6,826,750 8,162,500 -------------- -------------- 96,141,947 89,371,045 -------------- --------------
15 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) ------------------------------------------------------------------------------ Bonds, Notes and Convertible Bonds -- (continued) U.S. Treasury Notes (4.05%) $ 40,000,000 U.S. Treasury Inflation Index Note 3 1/8% due 1/15/2007 (22) $ 40,155,063 $ 46,380,000 10,000,000 U.S. Treasury Zero Coupon Strip due 11/15/2007 (a)(22) 7,011,227 7,948,000 7,000,000 U.S. Treasury Note 7 1/4% due 5/15/2016 (22) 7,246,094 8,707,895 -------------- -------------- 54,412,384 63,035,895 -------------- -------------- Non U.S. Dollar Convertible Bonds (0.45%) CAD 1,600,000 Noranda Inc. 5% due 4/30/2007 (20) 1,076,865 897,149 EUR 6,500,000 Sola International Inc. 11% due 3/15/2008 (13) 5,826,767 6,157,125 -------------- -------------- 6,903,632 7,054,274 -------------- -------------- Non U.S. Dollar Bonds and Notes (0.63%) CAD 2,500,000 Bell Canada 8 1/2% due 6/09/2003 (17) 1,769,859 1,702,079 EUR 7,000,000 Republic of France O.A.T. 3% due 7/25/2009 (22) 5,961,839 6,442,380 NZD 3,500,000 Evergreen Forest Limited 0% due 3/19/2009 (a)(c)(3) 1,871,556 1,616,147 -------------- -------------- 9,603,254 9,760,606 -------------- -------------- Total Bonds, Notes and Convertible Bonds 233,084,999 210,088,095 -------------- -------------- Short-Term Investments (7.13%) 19,998,000 General Electric Capital Corporation 2.53% due 11/01/2001 19,998,000 19,998,000 15,000,000 American Express Credit Corporation 2.58% due 11/01/2001 15,000,000 15,000,000 9,237,000 Maytag Corporation 2.9% due 11/01/2001 9,237,000 9,237,000 22,573,000 General Motors Acceptance Corporation 2.72% due 11/05/2001 22,566,178 22,566,178 10,100,000 Honeywell Inc. 2 1/2% due 11/07/2001 10,095,792 10,095,792 6,867,000 Sony Capital Corporation 2 1/2% due 11/07/2001 6,864,139 6,864,139 11,626,000 Ford Motor Credit Corporation 2 3/4% due 11/08/2001 11,619,783 11,619,783
16 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) ------------------------------------------------------------------------------ Bonds, Notes and Convertible Bonds -- (continued) Short-Term Investments -- (continued) $ 15,772,000 Allstate Corporation 2.34% due 11/21/2001 $ 15,751,496 $ 15,751,496 -------------- -------------- Total Short-Term Investments 111,132,388 111,132,388 -------------- -------------- Total Investments (99.65%) $1,543,430,555* 1,552,526,306** -------------- -------------- Other assets in excess of liabilities (0.35%) 5,437,895 -------------- Net assets (100.00%) $1,557,964,201 -------------- --------------
--------- * At October 31, 2001, the cost of investments for federal income tax purposes equals $1,562,365,275. ** Gross unrealized appreciation and depreciation of securities at October 31, 2001, based on cost for federal income tax purposes, were $206,883,392 and $216,722,361, respectively (net depreciation was $9,838,969).
Foreign Currencies Industry Classifications ------------------ ------------------------ CAD -- Canadian Dollar (1) Metals & Minerals (12) Distribution EUR -- Euro (2) Energy (13) Health Care NZD -- New Zealand Dollar (3) Forest Products (14) Media (4) Agriculture (15) Services (5) Building Materials (16) Financial Services (6) Capital Goods (17) Utilities (7) Chemicals (18) Real Estate (8) Transportation (19) Holding Companies (9) Electronics (20) Conglomerates (10) Technology (21) Investment Companies (11) Consumer Products (22) Government Issues
--------- (a) Non-income producing security. (b) Security is exempt from registration under the Securities Act of 1933 and may only be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. (c) Affiliate as defined by the Investment Company Act of 1940. An affiliate is defined as a company in which the Fund directly or indirectly owns, controls, or holds power to vote 5% or more of the outstanding voting securities. Following is a summary of transactions with each such affiliate for the year ended October 31, 2001. 17 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
-------------------------------------------------------------------------------------------------- Purchases Sales ----------------------- -------------------- Realized Dividend Affiliate Shares Cost Shares Cost (Loss)/Gain Income -------------------------------------------------------------------------------------------------- Allen Organ Company, Class `B'........... 5,500 $ 180,750 -- -- -- $ 50,120 Buderus AG........... 50,000 941,228 -- -- -- 1,297,055 City e-Solutions Limited............. -- -- -- -- -- 56,806 East Texas Financial Services, Inc....... -- -- -- -- -- 22,950 Greif Bros. Corporation, Class `A'........... -- -- -- -- -- 332,100 Hornbach Holding AG Pfd................. -- -- -- -- -- 295,592 Kaiser Ventures Inc................. -- -- 85,000 $2,060,375 $(232,037) -- Mills Music Trust.... -- -- -- -- -- 94,253 Nam Yang Dairy Products............ 21,500 4,905,960 -- -- -- 17,641 NSC Groupe........... -- -- -- -- -- 157,005 Rayonier Inc......... 510,000 20,089,337 -- -- -- 2,541,600 Robertet SA C.I.'D'............. 31,437 -- -- -- -- 31,907 Sabeton SA........... -- -- -- -- -- 36,634 Shaw Brothers (Hong Kong) Limited....... 1,650,000 1,250,765 -- -- -- 672,762 Shoei Co., Ltd....... 100,000 954,059 -- -- -- 736,127 Societe Sucriere de Pithiviers-le-Vieil... 550 197,280 -- -- -- 228,257 Taittinger C.I....... -- -- 2,999 737,389 754,596 87,487 UniFirst Corporation......... 25,000 260,705 277,300 4,785,058 37,528 101,464 Wilson & Horton Limited 5% exchangeable preference shares... -- -- -- -- -- 521,608 --------------------------------------------------------------------------------------------------
'D' 4 for 1 stock split ex-date January 2, 2001; received 31,437 additional shares. (d) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (e) Security for which there are less than three market makers. (f) In default as to principal and interest. --------- See Notes to Financial Statements. 18 FIRST EAGLE SOGEN OVERSEAS FUND 10/31/2001 -------------- FUND OVERVIEW The First Eagle SoGen Overseas Fund seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations. Management's research-driven process seeks to minimize risk by focusing on undervalued securities. ------------------------- PERFORMANCE COMPARISON: AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2001
SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (8-31-93) First Eagle SoGen Overseas Fund (A Shares). (3.09%) 7.65% 9.63% MSCI EAFE Index.................................... (24.93%) 0.57% 2.83% Consumer Price Index............................... 2.13% 2.33% 2.52%
[PERFORMANCE GRAPH]
Growth of a $10,000 Initial Investment ---------------------------------------------------- First Eagle Sogen MSCI Consumer Overseas Fund EAFE Index Price Index 1990 10,000 10,000 10,000 1991 10,055 10,076 10,055 1992 11,685 11,093 10,317 1993 12,338 11,052 10,607 1994 14,129 12,209 10,925 1995 15,313 12,775 11,153 1996 14,733 14,007 11,311 1997 19,095 17,233 11,601 1998 20,790 16,734 12,001 1999 21,209 12,562 12,257
Performance is historical and is not indicative of future results. The Fund's results assume reinvestment of income dividends and capital gains distributions and give effect to the deduction of the maximum sales load of 3.75%. Effective March 1, 2000 the maximum sales load is 5.00%. The MSCI EAFE Index returns assume reinvestment of dividends. This is a widely followed index of an unmanaged group of stocks from 20 international markets and is not available for purchase. It is a trademark of Morgan Stanley Capital International SA in Geneva, Switzerland. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households.
------------------------------------ TOP 10 HOLDINGS Buderus AG (German manufacturer of heating systems) 6.59% Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 3.36% Shimano Inc. (Japanese manufacturer of bicycle parts) 2.69% Carter Holt Harvey Ltd. (New Zealand forest products company) 2.46% IMI Plc. (British industrial conglomerate) 2.46% Shaw Brothers Ltd. (Chinese holding company with a large stake in media) 2.24% Industrias Penoles, S.A. de C.V. (Mexican producer of silver) 2.18% Kuehne & Nagel International AG (Swiss freight company) 1.98% Hornbach Holding AG Pfd. (German do-it-yourself superstore operator) 1.98% Schneider Electric SA (French electrical company) 1.98% -------------------------------------------- ASSET ALLOCATION Foreign Stocks 92.42% U.S. Dollar Bonds 1.65% Foreign Currency Bonds 0.13% U.S. Dollar Cash and Equivalents 5.80% -------------------------------------------- TOP 5 COUNTRIES Japan 22.80% Germany 9.99% France 9.31% South Korea 5.76% United Kingdom 5.61%
The Fund's portfolio composition is subject to change at any time. 19 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks (92.44%) Argentina (0.23%) 500,000 Siderca S.A.I.C. (2) $ 323,579 $ 570,371 700,000 Cresud S.A.C.I.F. y A. (4) 679,745 511,332 ------------ ------------ 1,003,324 1,081,703 ------------ ------------ Australia and New Zealand (4.36%) 20,000,000 Carter Holt Harvey Limited (3) 19,643,548 11,738,870 1,425,000 Wilson & Horton Limited 5% exchangeable preference shares (c)(15) 7,451,735 4,986,198 3,750,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (18) 2,839,258 1,547,807 1,750,000 Tasman Agriculture Limited (4) 913,524 1,257,003 300,000 Spotless Group Limited (16) 509,937 920,216 1,500,000 Evergreen Forests Limited (a)(3) 571,553 317,073 ------------ ------------ 31,929,555 20,767,167 ------------ ------------ Austria (3.11%) 225,000 Flughafen Wien AG (9) 7,565,862 5,305,500 129,500 Brau-Union AG (12) 5,026,027 4,784,377 125,000 BBAG Oesterreichische Brau-Beteiligungs AG (12) 4,742,960 4,717,125 ------------ ------------ 17,334,849 14,807,002 ------------ ------------ Belgium (1.62%) 577,725 Deceuninck (6) 8,757,819 7,695,297 ------------ ------------ Canada (3.32%) 635,000 Franco-Nevada Mining Corporation Limited (23) 7,995,449 9,041,424 145,000 PanCanadian Energy Corporation (2) 2,359,343 4,016,500 75,000 Canadian Pacific Railway Limited (9) 594,538 1,264,500 37,500 Fairmont Hotels & Resorts Inc. (a)(18) 337,457 669,375 37,500 CP Ships Limited (a)(9) 139,597 360,375 20,000 Fording Inc. (2) 133,078 306,000 45,000 Norske Skog Canada Limited (3) 251,768 157,631 ------------ ------------ 11,811,230 15,815,805 ------------ ------------ Chile (0.61%) 482,900 Quinenco S.A. ADR (a)(19) 3,508,241 2,921,545 ------------ ------------ Commonwealth of Independent States (0.80%) 532,524 Firebird Fund, L.P. (a)(b)(e)(21) 533,858 2,144,463 9,000 Baltic Republic Fund (a)(b)(e)(21) 500,750 648,000 5,072 Firebird Republic Fund, Ltd. Class `A' (a)(b)(e)(21) 727,765 522,057
20 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Commonwealth of Independent States -- (continued) 100,000 First NIS Regional Fund SICAF (a)(b)(e)(21) $ 1,000,000 $ 515,000 ------------ ------------ 2,762,373 3,829,520 ------------ ------------ Denmark (0.22%) 25,000 Carlsberg A/S `B' (12) 949,443 1,064,055 ------------ ------------ France (9.31%) 235,000 Schneider Electric SA (10) 5,795,841 9,407,520 150,000 Eurazeo (21) 6,751,356 7,688,250 20,500 Societe Sucriere de Pithiviers-le-Vieil (4) 7,164,760 6,863,400 125,000 Sagem ADP (10) 4,505,368 4,297,500 50,000 Robertet SA (12) 2,502,298 2,925,000 35,500 Robertet SA C.I. (c)(12) 1,284,691 1,405,800 1,350,000 FINEL (a)(b)(e)(3) 2,277,010 2,289,388 4,500 Taittinger C.I. (c)(19) 1,166,070 2,055,375 23,500 NSC Groupe (7) 4,098,208 1,881,293 50,000 Societe BIC SA (12) 1,933,133 1,534,950 95,000 Sabeton SA (19) 1,404,739 970,425 18,500 Rougier SA (3) 1,209,117 933,233 20,000 Crometal SA (7) 1,200,595 875,700 23,500 Conflandey SA (1) 1,284,949 487,507 10,000 Burelle SA (5) 443,781 456,750 15,000 Societe Francaise des Papiers Peints (c)(12) 741,390 271,350 ------------ ------------ 43,763,306 44,343,441 ------------ ------------ Germany (9.99%) 1,250,000 Buderus AG (7) 20,132,496 31,387,500 205,000 Hornbach Holding AG Pfd. (c)(13) 10,554,063 9,409,500 105,000 Bayer AG (8) 3,079,235 3,080,700 155,000 Vossloh AG (6) 2,706,089 2,915,550 15,000 Axel Springer Verlag AG (15) 575,364 783,000 ------------ ------------ 37,047,247 47,576,250 ------------ ------------ Hong Kong (3.61%) 14,442,500 Shaw Brothers (Hong Kong) Limited (15) 13,694,520 10,646,715 7,350,000 Cafe de Coral Holdings Limited (19) 2,859,830 4,287,500 2,750,000 Varitronix International Limited (10) 1,357,343 1,137,019 11,250,000 City e-Solutions Limited (16) 336,425 591,346 2,500,000 Lerado Group Holding Company Limited (12) 396,369 278,846
21 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Hong Kong -- (continued) 3,500,000 China-Hong Kong Photo Products Holdings Limited (12) $ 324,344 $ 260,256 ------------ ------------ 18,968,831 17,201,682 ------------ ------------ India (0.04%) 10,000 The Spartek Emerging Opportunities of India Fund (a)(b)(e)(21) 1,035,000 187,200 ------------ ------------ Ireland (0.46%) 700,000 Greencore Group (12) 1,891,072 1,556,100 1,000,000 Waterford Wedgwood plc (12) 785,370 612,000 ------------ ------------ 2,676,442 2,168,100 ------------ ------------ Israel (0.06%) 70,000 Super-Sol (13) 129,090 264,644 ------------ ------------ Japan (22.80%) 1,025,000 Shimano Inc. (12) 16,421,819 12,834,477 2,425,000 Nipponkoa Insurance Company, Limited (17) 9,074,377 9,111,329 215,000 Ono Pharmaceutical Company, Limited (14) 8,040,746 6,848,812 130,000 Secom Company, Limited (16) 6,278,414 6,763,865 1,000,000 Mitsui Sumitomo Insurance Company, Limited (17) 5,839,990 5,554,194 565,000 Shoei Company, Limited (19) 5,200,358 5,537,858 1,500,000 Okumura Corporation (16) 6,609,410 5,207,057 500,000 Wacoal Corporation (12) 4,301,493 5,039,614 955,400 Tachi-S Company, Limited (5) 8,141,244 4,791,437 365,000 Chofu Seisakusho Company, Limited (7) 5,340,628 4,561,382 315,000 T. Hasegawa Company, Limited (12) 2,356,643 3,805,317 1,225,000 Aida Engineering, Limited (7) 5,994,804 3,522,013 1,000,000 Aioi Insurance Company, Limited (17) 3,750,285 3,226,333 500,000 Kokusai Securities Company, Limited (17) 3,465,329 3,124,234 200,000 Mandom Corporation (12) 1,921,836 3,054,807 475,300 Yomeishu Seizo Company, Limited (12) 3,012,626 3,043,659 749,730 Sotoh Company, Limited (12) 6,288,832 2,976,140 150,000 SK Kaken Company Limited (8) 2,623,563 2,940,456 500,000 The Nichido Fire & Marine Insurance Company, Limited (17) 2,597,878 2,805,685 515,000 Makita Corporation (12) 4,336,424 2,772,074
22 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Japan -- (continued) 51,500 ASAHI Broadcasting Corporation (15) $ 3,977,773 $ 2,738,422 500,000 Nisshinbo Industries, Inc. (20) 2,096,767 2,327,861 325,000 Sonton Food Industry Company, Limited (12) 3,298,777 2,256,391 1,000,000 Iino Kaiun Kaisha, Limited (9) 2,094,108 1,478,396 35,000 Fuji Photo Film Company, Limited (12) 829,092 1,154,946 50,000 Nitto Kohki Company, Limited (7) 336,617 641,591 7,000 Hitachi, Ltd. ADR (10) 520,105 489,020 ------------ ------------ 124,749,938 108,607,370 ------------ ------------ Mexico (2.27%) 10,500,000 Industrias Penoles, S.A. de C.V. (1) 20,544,151 10,381,004 500,000 Grupo Industrial Satillo, S.A. de C.V. (a)(5) 1,469,358 426,336 ------------ ------------ 22,013,509 10,807,340 ------------ ------------ Netherlands (3.67%) 575,000 Randstad Holding NV (a)(16) 6,253,254 7,172,550 205,000 OPG Groep NV (14) 4,999,299 6,918,750 225,000 Holdingmaatschappij de Telegraaf NV (15) 3,887,240 3,373,650 ------------ ------------ 15,139,793 17,464,950 ------------ ------------ Singapore and Malaysia (1.71%) 775,000 Fraser & Neave Limited (19) 2,819,294 2,912,016 1,000,000 Haw Par Corporation Limited (a)(19) 1,572,498 1,974,713 6,301,000 Del Monte Pacific Limited (12) 1,451,828 1,175,141 850,000 Delgro Corporation Limited (19) 357,119 1,132,991 500,000 Times Publishing Limited (15) 727,258 932,503 ------------ ------------ 6,927,997 8,127,364 ------------ ------------ South Korea (5.76%) 1,003,500 Daeduck Electronics Company, Limited (10) 7,998,823 7,454,349 875,000 Daeduck GDS Company, Limited (10) 5,056,433 5,354,376 28,430 Nam Yang Dairy Products Pfd. (c)(12) 416,336 3,848,290 115,000 Fursys Incorporated (12) 2,110,908 2,756,971 10,750 Nam Yang Dairy Products (12) 1,030,602 2,398,141 10,000 Lotte Confectionery Company, Limited (12) 1,313,778 2,060,418 65,000 Sindo Ricoh Company (7) 1,463,184 2,044,152
23 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) South Korea -- (continued) 65,000 Dong Ah Tire & Rubber Company, Limited (5) $ 3,209,245 $ 1,535,631 ------------ ------------ 22,599,309 27,452,328 ------------ ------------ Spain and Portugal (5.40%) 800,000 Corporacion Financiera Alba SA (19) 18,834,608 15,984,000 345,000 Espirito Santo Financial Group SA ADR (17) 5,872,702 5,520,000 1,000,000 Energia e Industrias Aragonesas Eia, SA (8) 4,782,436 4,230,000 ------------ ------------ 29,489,746 25,734,000 ------------ ------------ Sweden (0.24%) 925,000 Gorthon Lines AB `B' (c)(9) 2,761,593 1,125,705 ------------ ------------ Switzerland (4.17%) 195,000 Kuehne & Nagel International AG (9) 6,918,327 9,415,851 18,000 Edipresse SA (15) 3,721,737 4,847,001 10,000 Sika Finanz AG (6) 2,205,204 2,071,603 2,875 Lindt & Sprungli AG PC (12) 751,682 1,476,209 3,000 Societe Generale d'Affichage (15) 831,962 1,097,919 5,000 PubliGroupe SA (15) 738,176 703,794 85,000 SwissAir Group (a)(9) 8,093,487 247,613 ------------ ------------ 23,260,575 19,859,990 ------------ ------------ Thailand (0.18%) 211,600 The Oriental Hotel Public Company Limited (18) 905,157 851,699 ------------ ------------ United Kingdom (5.61%) 3,650,000 IMI plc (20) 14,198,118 11,725,495 1,000,000 Spirax-Sarco Engineering plc (7) 5,852,426 5,500,845 3,325,000 Enodis plc (7) 5,751,227 3,266,127 350,000 Antofagasta Holdings plc (20) 967,721 2,190,151 465,000 Millennium & Copthorne Hotel plc (c)(18) 1,512,563 1,465,037 3,000,000 McBride plc (12) 4,281,506 1,353,383 500,000 Aggregate Industries plc (6) 194,906 631,215 2,000,000 Royal Doulton plc (a)(12) 4,113,638 582,100 ------------ ------------ 36,872,105 26,714,353 ------------ ------------ Miscellaneous (2.89%) 340,000 Security Capital European Realty (a)(e)(18) 6,800,000 6,684,400
24 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Miscellaneous -- (continued) 265,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (a)(d)(23) $ 3,576,375 $ 4,465,250 100,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (a)(d)(23) 1,003,137 1,110,000 5,000 M.J. Whitman Global Value L.P. (a)(b)(e)(21) 500,000 557,050 55,000 InterTAN, Inc. (a)(13) 484,813 492,250 15,000 Banco Latinoamericano de Exportaciones S.A. Class `E' (BLADEX) (17) 261,838 437,700 ------------ ------------ 12,626,163 13,746,650 ------------ ------------ Total Common and Preferred Stocks 479,022,635 440,215,160 ------------ ------------ --------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds (1.78%) U.S. Dollar Convertible Bonds (0.45%) $ 2,000,000 Medya International Ltd. 10% due 6/28/2001 (a)(e)(f)(15) 1,987,057 20,000 3,500,000 Danka Business Systems plc 6 3/4% due 4/01/2002 (a)(7) 3,387,297 962,500 750,000 Agnico Eagle Mines Limited 3 1/2% due 1/27/2004 (1) 588,794 654,375 6,500,000 P.T. Inti Indorayon Utama 7% due 5/02/2006 (a)(f)(3) 5,263,024 487,500 ------------ ------------ 11,226,172 2,124,375 ------------ ------------ U.S. Dollar Bonds and Notes (1.20%) 334,000 P.T. Pabrik Kertas Tjiwi-Kimia 13 1/4% due 8/01/2001 (f)(3) 335,360 41,750 2,456,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (f)(3) 1,868,854 340,770 1,000,000 United Mexican States 9 7/8% due 2/01/2010 (a)(22) 1,107,500 1,107,500 1,000,000 The Manitowoc Company Inc. 10 3/8% due 5/15/2011 (7) 886,655 877,500 1,000,000 Grupo Televisa S.A. 8% due 9/13/2011 (15) 976,250 976,250 3,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(17) 1,815,887 2,310,000 1,000,000 P.T. Inti Indorayon Utama 9 1/8% due 10/15/2049 (a)(f)(3) 950,451 52,500 ------------ ------------ 7,940,957 5,706,270 ------------ ------------
25 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Non U.S. Dollar Convertible Bonds (0.13%) NZD$1,316,810 Evergreen Forest Limited 0% due 3/19/2009 (a)(3) $ 714,126 $ 608,045 ------------ ------------ Total Bonds, Notes and Convertible Bonds 19,881,255 8,438,690 ------------ ------------ Short-Term Investment (4.98%) 23,740,000 General Electric Capital Corporation 2.53% due 11/01/2001 23,740,000 23,740,000 ------------ ------------ Total Investments (99.20%) $522,643,890* 472,393,850** ------------ ------------ Other assets in excess of liabilities (0.80%) 3,816,915 ------------ Net Assets (100.00%) $476,210,765 ------------ ------------
--------- * At October 31, 2001, the cost of investments for federal income tax purposes equals $536,179,290. ** Gross unrealized appreciation and depreciation of securities based on cost for federal income tax purposes at October 31, 2001 were $44,887,253 and $108,672,693 respectively (net depreciation was $63,785,440).
Foreign Currency Industry Classifications ---------------- ------------------------ NZD -- New Zealand Dollar (1) Metals and Minerals (13) Retail (2) Energy (14) Health Care (3) Paper and Forest Products (15) Media (4) Agriculture (16) Services (5) Automotive (17) Financial Services (6) Building Materials (18) Real Estate (7) Capital Goods (19) Holding Companies (8) Chemicals (20) Conglomerates (9) Transportation (21) Investment Companies (10) Electronics (22) Government Issues (11) Technology (23) Gold Related (12) Consumer Products
--------- (a) Non-income producing security. (b) Security is exempt from registration under the Securities Act of 1933 and may only be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. 26 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001 (c) Affiliate as defined by the Investment Company Act of 1940. An affiliate is defined as a company in which the Fund directly or indirectly owns, controls, or holds power to vote 5% or more of the outstanding voting securities. Following is a summary of transactions with each such affiliate for the year ended October 31, 2001.
------------------------------------------------------------------------------------------ Purchases Sales -------------------- ------------------- Realized Dividend Affiliate Shares Cost Shares Cost (Loss)/Gain Income ------------------------------------------------------------------------------------------ Gorthon Lines AB `B'.............. 75,000 $ 129,120 45,500 $ 271,571 $ (204,802) $ 71,358 Hornbach Holding AG Pfd................. 32,305 1,443,928 62,305 5,508,115 (2,347,454) 157,393 Millennium & Copthorne Hotel plc................. 465,000 1,512,563 -- -- -- -- Nam Yang Dairy Products Pfd........ -- -- 70 1,609 9,450 17,690 Robertet SA C.I.'D' 27,644 164,127 -- -- -- 23,921 Societe Francaise des Papiers Peints...... -- -- -- -- -- 11,985 Taittinger C.I....... -- -- 1,500 381,498 321,232 36,453 Wilson & Horton Limited 5% exchangeable preference shares... -- -- -- -- -- 432,835 ------------------------------------------------------------------------------------------
'D' 4 for 1 stock split ex-date January 2, 2001; received 23,568 additional shares. (d) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (e) Security for which there are less than three market makers. (f) In default of as to principal and interest. --------- See Notes to Financial Statements. 27 FIRST EAGLE U.S. VALUE FUND 10/31/2001 -------------- FUND OVERVIEW The First Eagle U.S. Value Fund seeks long-term growth of capital by investing primarily in equities issued by U.S. corporations. The Fund will consist of mostly small and medium size U.S. companies. Management utilizes a highly disciplined, bottom-up, value approach in achieving its investment objective. ------------------------- PERFORMANCE COMPARISON: AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2001
SINCE INCEPTION --------- (09-04-01) First Eagle U.S. Value Fund (A Shares) without sales load........................................ 1.60% with sales load (maximum of 5.00%)........................ (3.70%) Russell 2000 Index.......................................... (10.41%)
Performance is historical and is not indicative of future results. The Russell 2000 Index is a subset of the Russell 3000 Index, produced by the Frank Russell Company, which represents approximately 98% of the investable U.S. equity market. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index.
----------------------------------- TOP 10 HOLDINGS Rayonier Inc. (forest products) 4.89% Security Capital Group Inc. (real estate development) 4.28% McDonald's Corp. (restaurant franchise) 3.98% Manpower Inc. (temporary employment service) 3.81% Hancock Fabrics, Inc. (specialty retail) 3.58% Adolph Coors Co. (brewing company) 3.42% Sherwin-Williams Co. (paint supplies and products) 3.25% Consol Energy Inc. (coal mining) 3.16% Costco Wholesale Corp. (multi-line retail) 2.89% Chemed Corp. (diversified commercial services) 2.70% ------------------------------------------- ASSET ALLOCATION U.S. Stocks 78.37% Foreign Stocks 5.05% U.S. Dollar Bonds 2.60% U.S. Dollar Cash and Equivalents 13.98% ------------------------------------------- TOP 5 SECTORS Retail 18.88% Consumer Products 11.49% Forest Products 6.79% Services 6.52% Technology 5.79%
The Fund's portfolio composition is subject to change at any time. 28 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (78.37%) Capital Goods (5.09%) 20,000 CoorsTek, Inc. $ 503,300 $ 530,000 10,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 389,502 420,000 5,000 Franklin Electric Company, Inc. 351,990 384,350 ----------- ----------- 1,244,792 1,334,350 ----------- ----------- Chemicals (1.03%) 300,000 Ethyl Corporation (a) 339,967 270,000 ----------- ----------- Consumer Products (11.49%) 18,000 Adolph Coors Company 797,662 895,500 40,000 Energizer Holdings, Inc. (a) 710,941 659,600 25,000 Dole Food Company, Inc. 567,036 509,000 20,000 Furniture Brands International (a) 408,052 480,200 10,000 Philip Morris Companies, Inc. 481,614 468,000 ----------- ----------- 2,965,305 3,012,300 ----------- ----------- Energy (3.87%) 30,000 CONSOL Energy, Inc. 772,225 828,000 5,000 Burlington Resources, Inc. 182,960 186,250 ----------- ----------- 955,185 1,014,250 ----------- ----------- Financial Company (1.90%) 7 Berkshire Hathaway Inc., Class `A' (a) 469,900 498,400 ----------- ----------- Forest Products (6.79%) 30,000 Rayonier Inc. 1,309,102 1,283,400 20,000 Greif Bros. Corporation, Class 'A' 568,990 496,000 ----------- ----------- 1,878,092 1,779,400 ----------- ----------- Health Care (1.72%) 10,000 DENTSPLY International, Inc. 426,850 449,900 ----------- ----------- Media (4.07%) 45,000 General Motors Corporation -- Class `H' (a) 587,815 618,750 20,000 The Interpublic Group of Companies, Inc. 396,020 449,000 ----------- ----------- 983,835 1,067,750 ----------- ----------- Precious Metals (1.27%) 30,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (b) 346,097 333,000 ----------- ----------- Real Estate (4.28%) 60,000 Security Capital Group, Inc. Class `B' (a) 1,184,125 1,122,000 ----------- ----------- Retail (18.88%) 40,000 McDonald's Corporation 1,161,146 1,042,800 80,000 Hancock Fabrics, Inc. 654,457 940,000 35,000 The Sherwin-Williams Company 807,486 852,600 20,000 Costco Wholesale Corporation (a) 693,116 756,600
29 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Retail -- (continued) 15,000 The May Department Stores Company $ 443,874 $ 471,750 20,000 Tiffany & Company 427,393 467,800 15,000 Papa John's International Inc. (a) 389,700 417,900 ----------- ----------- 4,577,172 4,949,450 ----------- ----------- Services (6.52%) 35,000 Manpower Inc. 983,282 999,600 25,000 Chemed Corporation 721,050 708,750 ----------- ----------- 1,704,332 1,708,350 ----------- ----------- Technology (5.79%) 12,000 Zebra Technologies Corporation, Class `A' 501,090 552,840 35,000 Earthlink, Inc. 483,075 512,750 30,000 American Power Conversion Corporation (a) 352,050 386,100 25,000 APW Limited (a) 156,400 67,250 ----------- ----------- 1,492,615 1,518,940 ----------- ----------- Telecommunications (2.82%) 65,000 Montana Power Company 421,918 387,400 4,000 Telephone & Data Systems, Inc. 381,480 351,600 ----------- ----------- 803,398 739,000 ----------- ----------- Transportation (1.84%) 18,000 Burlington Northern Santa Fe Corporation 481,634 483,660 ----------- ----------- Utilities (1.01%) 7,000 IDACORP, Inc. 264,921 266,000 ----------- ----------- Common Stock -- Non U.S. (5.05%) Canada (5.05%) 45,000 Franco-Nevada Mining Corporation Limited (1) 636,795 640,731 13,680 PanCanadian Energy Corporation (2) 366,068 378,936 10,000 Canadian Pacific Railway Limited (3) 174,926 168,600 5,000 Fairmont Hotels and Resorts Inc. (4) 99,287 89,250 5,000 CP Ships Limited (a)(3) 41,073 48,050 ----------- ----------- 1,318,149 1,325,567 ----------- ----------- Total Common and Preferred Stocks 21,436,369 21,872,317 ----------- ----------- --------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- U.S. Dollar Bond (2.60%) $1,500,000 Level 3 Communications 9 1/8% due 5/01/2008 (5) 602,403 682,500 ----------- -----------
30 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Short-Term Investments (16.43%) $ 933,000 American Express Credit Corporation 2.58% due 11/01/2001 $ 933,000 $ 933,000 1,000,000 General Electric Capital Corporation 2.53% due 11/01/2001 1,000,000 1,000,000 1,149,000 May Department Stores Company 2.45% due 11/01/2001 1,149,000 1,149,000 1,228,000 Allstate Corporation 2.34% due 11/21/2001 1,226,403 1,226,403 ----------- ----------- Total Short-Term Investments 4,308,403 4,308,403 ----------- ----------- Total Investments (102.45%) $26,347,175* 26,863,220** ----------- ----------- Liabilities in excess of other assets ( - 2.45%) (642,585) ----------- Net assets (100.00%) $26,220,635 ----------- -----------
--------- * At October 31, 2001 cost is substantially identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at October 31, 2001, based on cost for federal income tax purposes, were $1,183,473 and $667,428, respectively (net appreciation was $516,045). Industry Classifications ------------------------ (1) Metals & Minerals (2) Energy (3) Transportation (4) Real Estate (5) Telecommunications --------- (a) Non-income producing security. (b) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. --------- See Notes to Financial Statements. 31 FIRST EAGLE SOGEN GOLD FUND 10/31/2001 -------------- FUND OVERVIEW The First Eagle SoGen Gold Fund's investment objective is growth of capital. To achieve its objective, the Fund invests primarily in securities of companies engaged in mining, processing, dealing in or holding gold or other precious metals such as silver, platinum and palladium, both in the United States and in foreign countries. ------------------------- PERFORMANCE COMPARISON: AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2001
SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (08-31-93) First Eagle SoGen Gold Fund. 37.93% (9.11%) (3.37%) FT Gold Mines Index................................ 42.03% (14.83%) (9.37%) Consumer Price Index............................... 2.13% 2.33% 2.52%
[PERFORMANCE GRAPH]
Growth of a $10,000 Initial Investment ----------------------------------------------------- First Eagle SoGen FT Gold Consumer Gold Fund Mines Index Price Index 1990 10,000 10,000 10,000 1991 10,055 10,494 10,055 1992 11,733 11,467 10,317 1993 10,984 9,164 10,607 1994 11,746 9,987 10,925 1995 8,990 6,604 11,153 1996 7,314 5,920 11,311 1997 7,304 5,211 11,601 1998 5,214 3,150 12,001 1999 7,570 4,474 12,257
Performance is historical and is not indicative of future results. The Fund's results assume reinvestment of income dividends and capital gains distributions and give effect to the deduction of the maximum sales load of 3.75%. Effective March 1, 2000 the maximum sales load is 5.00%. The FT Gold Mines Index is only available without dividends reinvested. Unlike Fund returns, the indices do not reflect any fees or expenses. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households.
------------------------------------ TOP 10 HOLDINGS Goldcorp Inc. (Formerly: CSA Management Ltd.) (Canada) 8.78% Newmont Mining Corp. (United States) 8.65% Harmony Gold Mining Co. Ltd. (South Africa) 8.02% Gold Fields Ltd. (South Africa) 7.87% Meridian Gold Inc. (Canada) 6.46% Freeport McMoran Pfd. (B, C, & D) (United States) 5.68% Repadre Capital Corp. (Canada) 5.28% Industrias Penoles, S.A. de C.V. (Mexico) 5.16% Normandy Mining Ltd. (Australia) 5.12% Placer Dome Inc. (Canada) 5.10% -------------------------------------------- ASSET ALLOCATION U.S. Stocks 22.08% Foreign Stocks 71.77% Foreign Currency Bonds 3.13% U.S. Dollar Cash and Equivalents 3.02% -------------------------------------------- TOP 5 COUNTRIES Canada 39.72% United States 22.08% South Africa 20.18% Latin America 5.96% Australia 5.91%
The Fund's portfolio composition is subject to change at any time. 32 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS October 31, 2001
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks (93.85%) Australia (5.91%) 975,000 Normandy Mining Limited $ 581,301 $ 686,390 1,194,840 Otter Gold Mines Limited (a) 735,702 105,145 230,000 Otter Gold Mines Limited Warrants (a) -- 1,793 ----------- ----------- 1,317,003 793,328 ----------- ----------- Canada (39.72%) 100,000 Goldcorp Inc. 270,622 1,178,138 80,000 Meridian Gold Inc. (a) 377,316 866,908 300,000 Repadre Capital Corporation (a) 590,801 708,773 60,000 Placer Dome Inc. 657,331 684,600 47,500 Franco-Nevada Mining Corporation Limited 553,966 676,327 1,325,000 TVX Gold Inc. (a) 638,451 556,500 510,000 Miramar Mining Corporation (a) 425,270 289,179 18,000 Barrick Gold Corporation 314,760 280,620 25,000 Pan American Silver Corporation (a) 86,218 87,415 ----------- ----------- 3,914,735 5,328,460 ----------- ----------- South Africa (20.18%) 185,000 Harmony Gold Mining Company Limited 848,664 1,076,117 197,500 Gold Fields Limited 703,998 895,625 35,000 Gold Fields Limited ADR 153,106 160,300 30,000 AngloGold Limited ADR 570,265 497,700 1,500,000 Consolidated African Mines Limited (a) 213,392 76,287 ----------- ----------- 2,489,425 2,706,029 ----------- ----------- United States (22.08%) 50,000 Newmont Mining Corporation 1,528,282 1,160,000 75,000 Homestake Mining Company 623,436 615,000 75,000 Royal Gold, Inc. 289,082 425,250 45,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (b) 927,304 366,750 20,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (b) 654,161 337,000 2,500 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (b) 80,775 57,625 ----------- ----------- 4,103,040 2,961,625 ----------- ----------- Miscellaneous (5.96%) 700,000 Industrias Penoles, S.A. de C.V. 1,270,402 692,067 766,806 Compania Minera Arcata S.A. (a) 514,222 107,012 ----------- ----------- 1,784,624 799,079 ----------- ----------- Total Common and Preferred Stocks 13,608,827 12,588,521 ----------- -----------
33 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2001
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Non U.S. Dollar Convertible Bond (3.13%) CAD$1,150,000 Kinross Gold Corporation 5 1/2% 12/05/2006 $ 423,211 $ 420,224 ----------- ----------- Short-Term Investment (1.74%) 234,000 General Electric Capital Corporation 2.53% due 11/01/2001 234,000 234,000 ----------- ----------- Total Investments (98.72%) $14,266,038* 13,242,745** ----------- ----------- Other assets in excess of liabilities (1.28%) 171,238 ----------- Net assets (100.00%) $13,413,983 ----------- -----------
--------- Foreign Currency CAD -- Canadian Dollar * At October 31, 2001, the cost of investments for federal income tax purposes equals $14,853,318. ** Gross unrealized appreciation and depreciation of securities at October 31, 2001, based on cost for federal income tax purposes, $2,308,415 and $3,918,988, respectively (net depreciation was $1,610,573). (a) Non-income producing security. (b) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. --------- See Notes to Financial Statements. 34 [THIS PAGE INTENTIONALLY LEFT BLANK] 35 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF ASSETS AND LIABILITIES October 31, 2001
--------------------------------------------------------------------------- First Eagle SoGen Global Fund --------------------------------------------------------------------------- Assets: Investments, at value (cost: $1,543,430,555, $522,643,890, $26,347,175 and $14,266,038 respectively) (Note 1)............................... $1,552,526,306 Cash................................................... -- Receivable for forward currency contracts held, at value (Notes 1 and 6)................................ 945,244 Receivable for investment securities sold.............. 6,967,327 Receivable for Fund shares sold........................ 1,943,467 Receivable from Adviser (Note 2)....................... -- Accrued interest and dividends receivable.............. 8,462,075 Prepaid expense........................................ 211,388 Deferred offering costs (Note 1)....................... -- -------------- Total Assets......................................... 1,571,055,807 -------------- Liabilities: Due to broker.......................................... 391,831 Payable for Fund shares redeemed....................... 1,233,762 Payable for investment securities purchased............ 6,819,130 Payable for forward currency contracts held, at value (Notes 1 and 6)...................................... 2,304,582 Investment advisory fees payable (Note 2).............. 990,863 Distribution fees payable (Note 3)..................... 327,835 Offering costs payable (Note 1)........................ -- Accrued expenses and other liabilities................. 1,023,603 -------------- Total Liabilities.................................... 13,091,606 -------------- Net Assets: Capital stock (par value, $0.001 per share)............ 68,118 Capital surplus........................................ 1,539,692,599 Net unrealized appreciation (depreciation) on: Investments.......................................... 9,095,751 Forward currency contracts........................... (1,359,338) Foreign currency related transactions................ (7,346) Undistributed net realized gains (losses) on investments.......................................... (411,525) Undistributed net investment income (loss)............. 10,885,942 -------------- Net Assets (Note 1).................................. $1,557,964,201 -------------- -------------- Class A share capital................................... $1,511,867,249 Shares of beneficial interest outstanding (Class A) (Note 5)............................................... 66,100,286 Net asset value per share.............................. $22.87 Maximum offering price per share....................... $24.07 Class I share capital................................... $ 34,925,536 Shares of beneficial interest outstanding (Class I) (Note 5)............................................... 1,525,566 Net asset value per share.............................. $22.89 Class C share capital................................... $ 11,171,416 Shares of beneficial interest outstanding (Class C) (Note 5)............................................... 492,557 Net asset value per share.............................. $22.68
--------- See Notes to Financial Statements. 36
------------------------------------------------------------------ First Eagle SoGen First Eagle First Eagle Overseas U.S. SoGen Fund Value Fund Gold Fund ------------------------------------------------------------------ $472,393,850 $ 26,863,220 $ 13,242,745 -- 369 288 724,992 -- -- -- -- 225,021 10,071,828 220,601 269,657 -- 65,162 -- 1,820,670 45,625 32,411 99,274 -- 2,505 -- 137,646 -- ------------ ------------ ------------ 485,110,614 27,332,623 13,772,627 ------------ ------------ ------------ 128,653 -- -- 247,070 -- 1,952 6,737,081 967,952 39,464 943,030 422 36 289,423 15,361 8,319 90,516 2,889 2,773 -- 82,527 -- 464,076 42,837 306,100 ------------ ------------ ------------ 8,899,849 1,111,988 358,644 ------------ ------------ ------------ 42,487 2,582 2,174 568,085,282 25,681,528 41,281,561 (50,250,040) 516,045 (1,023,293) (218,038) (422) (36) 8,759 400 (4,051) (1,413,782) 20,502 (26,869,662) (40,043,903) -- 27,290 ------------ ------------ ------------ $476,210,765 $ 26,220,635 $ 13,413,983 ------------ ------------ ------------ ------------ ------------ ------------ $409,297,960 $ 7,360,650 $ 13,413,983 36,516,794 724,811 2,173,603 $11.21 $10.16 $6.17 $11.80 $10.69 $6.49 $ 60,548,034 $ 16,479,701 -- 5,399,153 1,622,398 -- $11.21 $10.16 -- $ 6,364,771 $ 2,380,284 -- 570,628 234,681 -- $11.15 $10.14 --
37 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF OPERATIONS For the Year Ended October 31, 2001
--------------------------------------------------------------------------- First Eagle SoGen Global Fund --------------------------------------------------------------------------- Investment Income: Income: Dividends (net of $2,509,207, $1,168,427, $0 and $6,536 foreign taxes withheld, respectively)................. $ 34,851,182 Interest............................................... 25,160,417 ------------ Total income from operations.......................... 60,011,599 Expenses: Investment advisory fees (Note 2)...................... 12,490,057 Distribution fees -- Class A and Class C (Note 3)...... 4,092,850 Shareholder servicing agent fees....................... 2,299,073 Legal fees (Note 1).................................... 1,953,072 Custodian fees......................................... 1,307,620 Printing fees.......................................... 210,488 Audit fees............................................. 179,494 Directors' fees........................................ 161,879 Registration and filing fees........................... 69,987 Amortization of deferred offering costs (Note 1)....... -- Miscellaneous fees..................................... 142,420 ------------ Total expenses from operations........................ 22,906,940 ------------ Expense reductions due to earnings credits (Note 1)...... (32,473) Expense reimbursements (Note 2).......................... -- ------------ Net expenses from operations............................. 22,874,467 ------------ Net investment income (loss) (Note 1).................... 37,137,132 ------------ Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Related Transactions (Notes 1 and 6): Net realized gains (losses) from: Investment transactions................................ 147,412,281 Foreign currency related transactions.................. (274,964) ------------ 147,137,317 ------------ Change in unrealized appreciation (depreciation) of: Investments............................................ (28,690,288) Foreign currency related transactions.................. (8,888,590) ------------ (37,578,878) ------------ Net gain on investments and foreign currency related transactions............................................. 109,558,439 ------------ Net Increase in Net Assets Resulting from Operations...... $146,695,571 ------------ ------------
--------- See Notes to Financial Statements. 38
---------------------------------------------------------------- First Eagle SoGen First Eagle First Eagle Overseas U.S. SoGen Fund Value Fund Gold Fund ---------------------------------------------------------------- $ 9,014,550 $ 15,120 $ 287,606 1,680,061 30,522 35,782 ------------ ----------- ------------ 10,694,611 45,642 323,388 3,298,050 26,059 80,615 1,032,150 4,337 26,871 666,584 21,803 72,163 885,509 530 23,374 508,492 5,119 17,968 69,830 741 3,591 75,982 21,725 35,364 37,581 430 1,190 48,872 8,677 21,622 -- 22,688 -- 37,688 392 2,998 ------------ ----------- ------------ 6,660,738 112,501 285,756 ------------ ----------- ------------ (6,229) -- (818) -- (65,162) -- ------------ ----------- ------------ 6,654,509 47,339 284,938 ------------ ----------- ------------ 4,040,102 (1,697) 38,450 ------------ ----------- ------------ 1,416,390 22,499 (2,136,740) 14,046,265 (300) 6,584 ------------ ----------- ------------ 15,462,655 22,199 (2,130,156) ------------ ----------- ------------ (9,562,987) 516,045 5,947,717 (4,197,363) (22) (4,327) ------------ ----------- ------------ (13,760,350) 516,023 5,943,390 ------------ ----------- ------------ 1,702,305 538,222 3,813,234 ------------ ----------- ------------ $ 5,742,407 $ 536,525 $ 3,851,684 ------------ ----------- ------------ ------------ ----------- ------------
39 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund ---------------------------------------------------- Period From Year Ended April 1, 2000 to Year Ended October 31, 2001 October 31, 2000 March 31, 2000 ------------------------------------------------------------------------------------------------- Operations: Net investment income (loss).............. $ 37,137,132 $ 27,741,508 $ 51,506,533 Net realized gain from investments and foreign currency related transactions.... 147,137,317 62,945,843 212,352,942 (Decrease) Increase in unrealized appreciation (depreciation) of investments and foreign currency related transactions............................. (37,578,878) (62,743,824) 129,940,211 -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations.............. 146,695,571 27,943,527 393,799,686 -------------- -------------- -------------- Distributions to Shareholders: Dividends paid from net investment income................................... (87,440,626) -- (75,711,375) Distributions paid from net realized gains from investment transactions............. (200,503,578) -- (122,354,661) -------------- -------------- -------------- Decrease in net assets resulting from distributions.......................... (287,944,204) -- (198,066,036) -------------- -------------- -------------- Fund Share Transactions (Note 5): Net proceeds from shares sold............. 162,877,299 135,696,998 186,563,394 Net asset value of shares issued for reinvested dividends and distributions... 273,439,640 -- 187,409,473 Cost of shares redeemed................... (366,336,312) (340,436,991) (838,465,578) -------------- -------------- -------------- Increase (Decrease) in net assets from Fund share transactions................ 69,980,627 (204,739,993) (464,492,711) -------------- -------------- -------------- Net (decrease) increase in net assets.... (71,268,006) (176,796,466) (268,759,061) Net Assets (Note 1): Beginning of period....................... 1,629,232,207 1,806,028,673 2,074,787,734 -------------- -------------- -------------- End of period (including undistributed (overdistributed) net investment income of $10,885,942, $56,893,079, $4,914,159, $(40,043,903), $16,725,746, $4,497,430 and $0 respectively)..................... $1,557,964,201 $1,629,232,207 $1,806,028,673 -------------- -------------- -------------- -------------- -------------- --------------
--------- See Notes to Financial Statements. 40
------------------------------------------------------------------------------ First Eagle SoGen First Eagle Overseas Fund U.S. Value Fund ------------------------------------------------------- -------------------- Period From Period From Year Ended April 1, 2000 to Year Ended September 4, 2001 to October 31, 2001 October 31, 2000 March 31, 2000 October 31, 2001 ------------------------------------------------------- -------------------- $ 4,040,102 $ 5,824,246 $ 10,134,623 $ (1,697) 15,462,655 23,117,092 68,766,189 22,199 (13,760,350) (32,121,003) 62,885,115 516,023 ------------- ------------- ------------- ----------- 5,742,407 (3,179,665) 141,785,927 536,525 ------------- ------------- ------------- ----------- (21,778,190) -- (5,795,262) -- (75,298,528) -- (20,928,842) -- ------------- ------------- ------------- ----------- (97,076,718) -- (26,724,104) -- ------------- ------------- ------------- ----------- 160,805,713 145,135,796 299,315,210 25,697,089 92,813,118 -- 25,664,683 -- (105,307,230) (199,737,019) (419,030,776) (12,979) ------------- ------------- ------------- ----------- 148,311,601 (54,601,223) (94,050,883) 25,684,110 ------------- ------------- ------------- ----------- 56,977,290 (57,780,888) 21,010,940 26,220,635 419,233,475 477,014,363 456,003,423 -- ------------- ------------- ------------- ----------- $ 476,210,765 $ 419,233,475 $ 477,014,363 $26,220,635 ------------- ------------- ------------- ----------- ------------- ------------- ------------- -----------
41 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF CHANGES IN NET ASSETS
---------------------------------------------------------------------------------------------------- First Eagle SoGen Gold Fund ------------------------------------------------------- Period From Year Ended April 1, 2000 to Year Ended October 31, 2001 October 31, 2000 March 31, 2000 ---------------------------------------------------------------------------------------------------- Operations: Net investment income...................... $ 38,450 $ 208,083 $ 364,230 Net realized loss from investments and foreign currency related transactions..... (2,130,156) (2,349,183) (4,238,656) Increase in unrealized appreciation (depreciation) of investments and foreign currency related transactions............. 5,943,390 414,048 3,781,035 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations............... 3,851,684 (1,727,052) (93,391) ----------- ----------- ------------ Distributions to Shareholders: Dividends paid from net investment income.................................... (444,560) -- (410,071) Distributions paid from net realized gains from investment transactions.............. -- -- -- ----------- ----------- ------------ Decrease in net assets resulting from distributions........................... (444,560) -- (410,071) ----------- ----------- ------------ Fund Share Transactions (Note 5): Net proceeds from shares sold.............. 3,836,032 5,962,725 5,142,915 Net asset value of shares issued for reinvested dividends and distributions.... 425,126 -- 391,556 Cost of shares redeemed.................... (4,002,710) (7,485,676) (10,214,073) ----------- ----------- ------------ Increase (Decrease) in net assets from Fund share transactions................. 258,448 (1,522,951) (4,679,602) ----------- ----------- ------------ Net increase (decrease) in net assets..... 3,665,572 (3,250,003) (5,183,064) Net Assets (Note 1): Beginning of period........................ 9,748,411 12,998,414 18,181,478 ----------- ----------- ------------ End of period (including undistributed net investment income of $27,290, $427,595 and $223,185, respectively)................... $13,413,983 $ 9,748,411 $ 12,998,414 ----------- ----------- ------------ ----------- ----------- ------------
--------- See Notes to Financial Statements. 42 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS Note 1 -- Significant Accounting Policies First Eagle SoGen Funds, Inc. (the 'Company'), is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Company consists of four separate portfolios, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund (each individually a 'Fund' or collectively the 'Funds'). The Funds, formerly SoGen Funds Inc., changed its name to First Eagle SoGen Funds, Inc. effective December 31, 1999. Effective May 23, 2000, the Funds' fiscal year end changed from March 31 to October 31 of each year. The following is a summary of significant accounting policies adhered to by the Funds: (a) Security valuation -- In the case of First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, portfolio securities are valued based on market quotations where available. Short-term investments maturing in sixty days or less are valued at cost plus interest earned, which approximates value. Securities for which current market quotations are not readily available and any restricted securities are valued at fair value as determined in good faith by the Valuation Committee of the Board of Directors. (b) Deferred offering costs -- Offering costs incurred in connection with the organization of the First Eagle U.S. Value Fund are being amortized on a straight-line basis over a twelve-month period from the date the Fund commenced investment operations. (c) Security transactions and income -- Security transactions are accounted for on a trade date basis. The specific identification method is used in determining realized gains and losses from security transactions. Dividend income is recorded on the ex-dividend date. Interest income is recorded daily on the accrual basis. In computing investment income, each Fund amortizes discounts on debt obligations; however, premiums are not amortized. In November 2000 the American Institute of Certified Public Accountants ('AICPA') issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the 'Guide'). The revised version of the Guide is effective for financial statements issued 43 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) for fiscal years beginning after December 15, 2000. One of the new provisions in the Guide requires investment companies to amortize premiums and discounts on fixed income securities on a scientific basis. Upon adoption, the funds will be required to record a cumulative effect adjustment to conform with accounting principles generally accepted in the United States of America. The effect of this adjustment, effective November 1, 2001, is to increase or decrease accumulated net investment income with an offsetting increase or decrease to accumulated unrealized appreciation (depreciation) on investments. This adjustment will therefore, have no effect on the net assets of the funds. (d) Expenses -- Expenses arising in connection with a Fund are charged directly to that Fund. Expenses common to all Funds are allocated to each Fund in proportion to its relative net assets. Earnings credits reduce custodian fees and shareholder servicing agent fees by the amount of interest earned on balances with such service providers. It is important to note that legal fees for the First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund and First Eagle Gold Fund are higher this year than in prior years. As mentioned in the Presidents' Letter, these Funds are involved in a lawsuit with Bank for International Settlements in the hopes of recovering additional monies for the mandatory tender of these shares which took place earlier this year. (e) Foreign currency translation (First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund) -- The market values of securities which are not traded in U.S. currency are recorded in the financial statements after translation to U.S. dollars based on the applicable exchange rates at the end of the period. The costs of such securities are translated at exchange rates prevailing when acquired. Related dividends, interest and withholding taxes are accrued at the rates of exchange prevailing on the respective dates of such transactions. The net assets of each of First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund are presented at the foreign exchange rates and market values at the close of the period. The Funds do not isolate that portion of gains and losses on investments which is due to 44 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) changes in foreign exchange rates from that which is due to changes in market prices of the equity securities. However, for federal income tax purposes each Fund does isolate the effect of changes in foreign exchange rates from the changes in market prices for realized gains and losses on debt obligations. (f) Forward currency contracts (First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund) -- In connection with portfolio purchases and sales of securities denominated in foreign currencies, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund may enter into forward currency contracts. Additionally, each Fund may enter into such contracts to hedge certain other foreign currency denominated investments. These contracts are valued at current market, and the related realized and unrealized foreign exchange gains and losses are included in the statement of operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations. (g) United States income taxes -- No provision has been made for U.S. federal income taxes since it is the intention of each Fund to distribute to shareholders all taxable net investment income and net realized gains on investments, if any, within the allowable time limit, and to comply with the provisions of the Internal Revenue Code for a regulated investment company. First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund declare and pay such income, dividends and capital gains distributions on an annual basis. At October 31, 2001, First Eagle Sogen Gold Fund had the following capital loss carryforwards to offset future capital gain net income:
Carryforward Amount Expiration Date ------------------- --------------- $ (789,246) October 31, 2004 (1,336,531) October 31, 2005 (9,007,548) October 31, 2006 (8,499,197) October 31, 2007 (4,351,091) October 31, 2008 (2,415,206) October 31, 2009 $(26,398,819)
45 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) (h) Reclassification of capital accounts -- On the statements of assets and liabilities, as a result of certain differences in the computation of net investment income and net realized capital gains under federal income tax rules and regulations versus accounting principles generally accepted in the United States of America, such as the treatment of foreign currency gains and losses and distributions paid in connection with the redemption of fund shares, a reclassification has been made to increase (decrease) undistributed net investment income, undistributed net realized gains on investments and capital surplus for First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund as follows:
Undistributed Net Undistributed Net Realized Capital Investment Income Gains (Losses) on Investments Surplus ----------------- ----------------------------- ------- First Eagle SoGen Global Fund......... $ 4,296,357 $(134,346,286) $130,049,929 First Eagle SoGen Overseas Fund....... (39,031,562) (10,497,888) 49,529,450 First Eagle U.S. Value Fund.......... 1,697 (1,697) -- First Eagle SoGen Gold Fund........... 5,805 (5,805) --
(i) Use of estimates -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2 -- Investment Advisory Agreements and Transactions with Related Persons Arnhold and S. Bleichroeder Advisers, Inc. (the 'Adviser'), a wholly owned subsidiary of Arnhold and S. Bleichroeder, Inc. ('A&SB'), manages the Funds. For its services, the Adviser receives, pursuant to an Investment Advisory Agreement between the Funds and the Adviser (the 'Advisory Agreement') an annual advisory fee as follows: First Eagle SoGen Global Fund at a rate of 1% of the first 46 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) $25,000,000 and 0.75% in excess of $25,000,000, First Eagle SoGen Overseas Fund at 0.75%, First Eagle U.S. Value Fund at 0.75% and First Eagle SoGen Gold Fund at 0.75%. On December 22, 1999, the shareholders and on October 22, 1999, the Board of Directors approved the Advisory Agreement between the Fund and the Adviser effective December 31, 1999. The Advisory Agreement is substantially the same as the prior investment advisory agreement with Societe Generale Asset Management Corp ('SGAM Corp'.), except that each Fund now pays accrued advisory fees on a monthly basis, rather than a quarterly basis. If necessary, the Adviser will reimburse the First Eagle U.S. Value Fund to the extent that the aggregate annual expenses exceed 1.50% for Class A, 1.25% for Class I and 2.25% for Class C of average daily net assets. For the period from September 4, 2001 to October 31, 2001, the Adviser has agreed to pay the Fund $65,162 so that each class of the Fund could maintain the above expense ratios. Expense reimbursements are accrued daily and paid yearly. For the year ended October 31, 2001, A&SB, the principal underwriter, realized $136,574, $49,908, $5,121 and $9,006 after reallowance to others, pertaining to the sale of shares of First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. For the year ended October 31, 2001, A&SB received $180,095, $29,027, $15,200 and $300 in brokers' commissions for portfolio transactions executed on behalf of First Eagle SoGen Global Fund, First Eagle SoGen Overseas, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. Note 3 -- Plans of Distribution (First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund) Under the terms of the Distribution Plans and Agreements ('the Plans') with A&SB, pursuant to the provisions of Rule 12b-1 under the Investment Company Act of 1940, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund pay A&SB quarterly, a distribution fee with respect to Class A and Class C shares at an annual rate of up to 0.25% and 1%, respectively of average daily net 47 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) assets. Under the Plans, A&SB is obligated to use the amounts received under the Plans for payments to qualifying dealers for their assistance in the distribution of a Fund's shares and the provision of shareholder services and for other expenses such as advertising costs and the payment for the printing and distribution of prospectuses to prospective investors. The Distribution Agreement is substantially the same as the prior distribution agreement with SGAM Corp. A&SB bears distribution costs of a Fund to the extent they exceed payments received under the Plan. For the year ended October 31, 2001 the distribution fees paid or payable by First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund were $4,092,850, $1,032,150, $4,337 and $26,871 respectively. Note 4 -- Purchases and Sales of Securities During the year ended October 31, 2001 the aggregate cost of purchases of investments, excluding U.S. Government obligations and short-term securities, totaled $450,181,399, $174,622,726, $22,499,853 and $3,207,896 for First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively, and proceeds from sales of investments, excluding short-term securities, totaled $577,793,058, $73,312,104, $484,734 and $3,095,641 for First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. Note 5 -- Capital Stock Transactions in shares of capital stock were as follows:
------------------------------------------------------------------------------------------------------------- Year Ended October 31, 2001 ------------------------------------------------------------------------------- First Eagle SoGen First Eagle SoGen First Global Fund Overseas Fund Eagle -------------------------------- -------------------------------- SoGen Class A Class I Class C Class A Class I Class C Gold Fund ------------------------------------------------------------------------------------------------------------- Shares sold................. 5,561,193 885,994 461,908 9,717,291 3,374,528 547,071 654,002 Shares issued for reinvested dividends and distributions.............. 12,531,352 203,177 7,467 7,635,308 605,304 10,514 90,646 Shares redeemed............. (15,374,047) (112,696) (6,271) (8,118,990) (563,336) (11,346) (764,420) ----------- -------- ------- ---------- --------- ------- -------- Net increase (decrease)..... 2,718,498 976,475 463,104 9,233,609 3,416,496 546,239 (19,772) ----------- -------- ------- ---------- --------- ------- -------- -------------------------------------------------------------------------------------------------------------
48 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued)
------------------------------------------------------------------------------------------- Period from September 4, 2001 to October 31, 2001 ----------------------------- First Eagle U.S. Value Fund ----------------------------- Class A Class I Class C ------------------------------------------------------------------------------------------- Shares sold................................................. 724,812 1,622,398 236,069 Shares redeemed............................................. (1) -- (1,388) ------- --------- ------- Net increase................................................ 724,811 1,622,398 234,681 ------- --------- ------- -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, 2000 ------------------------------------------------------------------------------------ First Eagle SoGen First Eagle SoGen First Global Fund Overseas Fund Eagle -------------------------------- ------------------------------------ SoGen Class A Class I Class C Class A Class I Class C Gold Fund ----------------------------------------------------------------------------------------------------------------- Shares sold................ 5,024,228 365,391 29,677 8,770,016 1,454,012 24,409 1,188,290 Shares redeemed............ (13,083,835) (472,638) (224) (12,733,750) (1,320,271) (20) (1,510,309) ----------- -------- ------- ----------- ---------- --------- ---------- Net (decrease) increase.... (8,059,607) (107,247) 29,453 (3,963,734) 133,741 24,389 (322,019) ----------- -------- ------- ----------- ---------- --------- ---------- -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------- Year Ended March 31, 2000 -------------------------------------------------------------- First Eagle SoGen First Eagle SoGen First Global Fund Overseas Fund Eagle ---------------------- ------------------------ SoGen Class A Class I Class A Class I Gold Fund Shares sold.................................. 7,117,410 372,281 18,942,904 3,050,725 859,456 Shares issued for reinvested dividends and distributions............................... 7,774,853 59,968 1,847,342 53,682 67,041 Shares redeemed.............................. (33,542,534) (288,812) (29,422,421) (1,503,606) (1,754,133) ----------- -------- ----------- ---------- ---------- Net (decrease) increase...................... (18,650,271) 143,437 (8,632,175) 1,600,801 (827,636) ----------- -------- ----------- ---------- ---------- -------------------------------------------------------------------------------------------------------------
Note 6 -- Commitments As of October 31, 2001, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund had entered into forward currency contracts, as summarized below, resulting in net unrealized depreciation of $1,359,338, $218,038, $422 and $36, respectively. 49 FIRST EAGLE SOGEN GLOBAL FUND TRANSACTION HEDGES: Foreign Currency Purchases
--------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2001 Delivered --------------------------------------------------------------------------------- 11/02/01 448,519 Euro $ 403,667 $ 405,524 11/02/01 332,324 Swiss Franc 203,381 204,828 11/05/01 453,930 Canadian Dollar 285,985 286,743 11/05/01 30,263,974 Japanese Yen 247,194 247,512 11/06/01 1,933,473 Euro 1,740,126 1,741,531 ------------ ------------ 2,880,353 2,886,138 ------------ ------------
Foreign Currency Sales --------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received October 31, 2001 --------------------------------------------------------------------------------- 11/02/01 106,037 Pound Sterling 154,009 154,311 11/05/01 370,834 Euro 334,865 333,751 ------------ ------------ 488,874 488,062 ------------ ------------
PORTFOLIO HEDGES: Foreign Currency Purchases --------------------------------------------------------------------------------- Settlement Dates Foreign Currency To U.S. $ Value at U.S. $ To Be Through Be Received October 31, 2001 Delivered --------------------------------------------------------------------------------- 11/28/01 3,065,000 Australian Dollar 1,540,469 1,571,981 12/05/01 8,836,000 Swiss Franc 5,411,563 5,484,633 ------------ ------------ 6,952,032 7,056,614 ------------ ------------
Foreign Currency Sales --------------------------------------------------------------------------------- Settlement Dates Foreign Currency To U.S. $ To Be U.S. $ Value at Through Be Delivered Received October 31, 2001 --------------------------------------------------------------------------------- 11/28/01 3,065,000 Australian Dollar 1,582,982 1,540,469 12/05/01 8,836,000 Swiss Franc 4,983,411 5,411,563 2/14/02 5,505,807,000 Japanese Yen 45,177,393 45,342,987 2/14/02 8,169,425,000 Japanese Yen 67,721,805 66,820,188 2/21/02 54,857,000 Euro 47,858,700 49,349,004 2/21/02 4,541,000 Euro 4,000,586 4,080,762 4/17/02 6,904,000 New Zealand Dollar 2,776,789 2,806,476 ------------ ------------ 174,101,666 175,351,449 ------------ ------------ $184,422,925 $185,782,263 ------------ ------------ ------------ ------------
50
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- -- $ (1,857) -- (1,447) -- (758) -- (318) -- (1,405) -------- ----------- -- (5,785) -------- -----------
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- -- (302) $ 1,114 -- -------- ----------- 1,114 (302) -------- -----------
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- -- (31,512) -- (73,070) -------- ----------- -- (104,582) -------- -----------
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- 42,513 -- -- (428,152) -- (165,594) 901,617 -- -- (1,490,304) -- (80,176) -- (29,687) -------- ----------- 944,130 (2,193,913) -------- ----------- $945,244 $(2,304,582) -------- ----------- -------- -----------
51 FIRST EAGLE SOGEN OVERSEAS FUND TRANSACTION HEDGES: Foreign Currency Purchases
---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2001 Delivered ---------------------------------------------------------------------------------- 11/01/01 110,182 Canadian Dollar $ 69,417 $ 70,040 11/01/01 233,314 Hong Kong Dollar 29,912 29,914 11/01/01 232,792 Mexican Peso 25,126 25,167 11/02/01 246,816 Euro 222,134 223,156 11/05/01 681,155 Canadian Dollar 429,142 430,737 11/05/01 30,263,974 Japanese Yen 247,194 247,511 11/05/01 143,045 Pound Sterling 208,166 207,920 11/05/01 34,504 Singapore Dollar 18,927 18,918 11/05/01 1,857,486 Swiss Franc 1,136,772 1,142,108 11/06/01 2,127,869 Euro 1,915,082 1,917,968 ------------ ------------ 4,301,872 4,313,439 ------------ ------------
PORTFOLIO HEDGES: Foreign Currency Purchases ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2001 Delivered ---------------------------------------------------------------------------------- 11/28/01 544,000 Australian Dollar 273,414 278,582 12/05/01 294,000 Swiss Franc 180,059 305,311 ------------ ------------ 453,473 583,893 ------------ ------------
Foreign Currency Sales ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received October 31, 2001 ---------------------------------------------------------------------------------- 11/28/01 544,000 Australian Dollar 282,640 273,414 12/05/01 294,000 Swiss Franc 171,142 180,059 2/14/02 3,580,237,000 Japanese Yen 29,702,980 29,286,661 2/14/02 5,775,176,000 Japanese Yen 47,768,082 47,468,890 2/21/02 2,218,000 Euro 1,963,253 1,992,432 2/21/02 22,720,000 Euro 19,867,729 20,434,160 1/09/02 8,469,214,000 South Korean Won 6,384,702 6,562,738 1/09/02 411,260,000 South Korean Won 313,939 318,683 4/17/02 3,135,000 New Zealand Dollar 1,260,897 1,274,378 ------------ ------------ 107,715,364 107,791,415 ------------ ------------ $112,470,709 $112,688,747 ------------ ------------ ------------ ------------
52
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- -- $ (623) -- (2) -- (41) -- (1,022) -- (1,595) -- (317) $ 246 -- 9 -- -- (5,336) -- (2,886) -------- --------- 255 (11,822) -------- ---------
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- -- (5,168) -- (125,252) -------- --------- -- (130,420) -------- ---------
---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 ---------------------------------------- 9,226 -- -- (8,917) 416,319 -- 299,192 -- -- (29,179) -- (566,431) -- (178,036) -- (4,744) -- (13,481) -------- --------- 724,737 (800,788) -------- --------- $724,992 $(943,030) -------- --------- -------- ---------
53 FIRST EAGLE U.S. VALUE FUND TRANSACTION HEDGES: Foreign Currency Purchases
--------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2001 Delivered --------------------------------------------------------------------- 11/02/01 114,585 Canadian Dollar $72,191 $72,613 ------- ------- $72,191 $72,613 ------- ------- ------- -------
FIRST EAGLE SOGEN GOLD FUND TRANSACTION HEDGES: Foreign Currency Purchases
--------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2001 Delivered --------------------------------------------------------------------- 11/02/01 9,665 Canadian Dollar $6,089 $6,125 ------ ------ $6,089 $6,125 ------ ------ ------ ------
54
-------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 -------------------------------------- -- $(422) ---- ----- -- $(422) ---- ----- ---- -----
-------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2001 October 31, 2001 -------------------------------------- -- $(36) ---- ---- -- $(36) ---- ---- ---- ----
55 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------------------------- Year Ended October 31, ----------------------------------------------- 2001 ----------------------------------------------- Class A Class I Class C -------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund SELECTED PER SHARE DATA Net asset value, beginning of year............... $25.47 $25.53 $25.44 ------ ------ ------ Income from investment operations: Net investment income........................... 0.53 0.58 0.26 Net realized and unrealized gains (losses) on investments.................................... 1.45 1.44 1.53 ------ ------ ------ Total from investment operations................ 1.98 2.02 1.79 ------ ------ ------ Less distributions: Dividends from net investment income............ (1.39) (1.47) (1.36) Distributions from capital gains................ (3.19) (3.19) (3.19) ------ ------ ------ Total distributions............................. (4.58) (4.66) (4.55) ------ ------ ------ Net asset value, end of year................... $22.87 $22.89 $22.68 ------ ------ ------ ------ ------ ------ TOTAL RETURN'DD'................................. 9.0% 9.2% 8.1% RATIOS AND SUPPLEMENTAL DATA Net assets, end of year (millions)............... $1,512 $ 35 $ 11 Ratio of operating expenses to average net assets.......................................... 1.4%'D' 1.1%'D' 2.1%'D' Ratio of net investment income to average net assets.......................................... 2.2%'D' 2.5%'D' 1.1%'D' Portfolio turnover rate.......................... 29.0% 29.0% 29.0% --------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------- Year Ended October 31, ----------------------------------------------- 2001 ----------------------------------------------- Class A Class I Class C -------------------------------------------------------------------------------------------------- First Eagle SoGen Overseas Fund SELECTED PER SHARE DATA Net asset value, beginning of year............... $14.31 $14.34 $14.31 ------ ------ ------ Income from investment operations: Net investment income (loss).................... 0.11 0.13 (0.01) Net realized and unrealized gains (losses) on investments.................................... 0.19 0.19 0.21 ------ ------ ------ Total from investment operations................ 0.30 0.32 0.20 ------ ------ ------ Less distributions: Dividends from net investment income............ (0.76) (0.81) (0.72) Distributions from capital gains................ (2.64) (2.64) (2.64) ------ ------ ------ Total distributions............................. (3.40) (3.45) (3.36) ------ ------ ------ Net asset value, end of year................... $11.21 $11.21 $11.15 ------ ------ ------ ------ ------ ------ TOTAL RETURN'DD'................................. 2.0% 2.2% 1.2% RATIOS AND SUPPLEMENTAL DATA Net assets, end of year (millions)............... $ 409 $ 61 $ 6 Ratio of operating expenses to average net assets.......................................... 1.5%'D' 1.3%'D' 2.3%'D' Ratio of net investment income to average net assets.......................................... 0.9%'D' 1.1%'D' (0.1%)'D' Portfolio turnover rate.......................... 17.3% 17.3% 17.3%
56
-------------------------------------------------------------------------------------------------------------------------- Period From April 1, 2000 to October 31, Year Ended March 31, --------------------------------------------------- -------------------------------------------------------------------- 2000 2000 1999 1998 1997 --------------------------------------------------- ----------------- ------------------------------------------------ Class A Class I Class C'D''D''D' Class A Class I Class A Class I'D''D' $25.05 $25.07 $24.97 $22.90 $22.90 $27.42 $24.59 $26.68 $26.09 ------ ------ ------ ------ ------ ------ ------ ------ ------ 0.41 0.45 0.11 0.66 0.71 0.63 0.30 1.47 0.76 0.01 0.01 0.36 4.29 4.31 (2.73) (1.47) 2.10 1.66 ------ ------ ------ ------ ------ ------ ------ ------ ------ 0.42 0.46 0.47 4.95 5.02 (2.10) (1.17) 3.57 2.42 ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- (1.07) (1.12) (0.83) -- (1.36) (1.09) -- -- -- (1.73) (1.73) (1.59) (0.52) (1.47) (0.74) ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- (2.80) (2.85) (2.42) (0.52) (2.83) (1.83) ------ ------ ------ ------ ------ ------ ------ ------ ------ $25.47 $25.53 $25.44 $25.05 $25.07 $22.90 $22.90 $27.42 $26.68 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 1.7%# 1.8%# 1.9%# 22.2% 22.5% (8.0%) (4.7%)# 14.4% 9.5% $1,614 $ 14 $ 1 $1,790 $ 16 $2,063 $ 12 $4,035 $3,908 1.4%*'D' 1.1%*'D' 1.9%*'D' 1.3% 1.1% 1.2% 1.0%* 1.2% 1.2% 2.8%*'D' 3.0%*'D' 1.1%*'D' 2.7% 2.9% 2.8% 3.0%* 2.8% 3.1% 11.9% 11.9% 11.9% 15.6% 15.6% 9.9% 9.9% 20.6% 12.9%
-------------------------------------------------------------------------------------------------------------------------- Period From April 1, 2000 to October 31, Year Ended March 31, --------------------------------------------------- -------------------------------------------------------------------- 2000 2000 1999 1998 1997 --------------------------------------------------- ----------------- ------------------------------------------------ Class A Class I Class C'D'D'D' Class A Class I Class A Class I'D''D' $14.41 $14.43 $14.14 $11.36 $11.37 $13.52 $12.31 $13.84 $13.26 ------ ------ ------ ------ ------ ------ ------ ------ ------ 0.19 0.21 -- 0.28 0.31 0.15 0.41 0.88 0.61 (0.29) (0.30) 0.17 3.59 3.59 (0.97) (1.10) 0.31 0.95 ------ ------ ------ ------ ------ ------ ------ ------ ------ (0.10) (0.09) 0.17 3.87 3.90 (0.82) (0.69) 1.19 1.56 ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- (0.18) (0.20) (0.57) -- (0.83) (0.60) -- -- -- (0.64) (0.64) (0.77) (0.25) (0.68) (0.38) ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- (0.82) (0.84) (1.34) (0.25) (1.51) (0.98) ------ ------ ------ ------ ------ ------ ------ ------ ------ $14.31 $14.34 $14.31 $14.41 $14.43 $11.36 $11.37 $13.52 $13.84 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ (0.7%)# (0.6%)# 1.2%# 34.5% 34.8% (6.5%) (5.5%)# 10.0% 12.2% $ 390 $ 28 $ 1 $ 450 $ 27 $ 453 $ 3 $1,007 $ 953 1.4%*'D' 1.2%*'D' 2.0%*'D' 1.3% 1.2% 1.3% 1.0%* 1.2% 1.3% 2.2%*'D' 2.5%*'D' (0.1%)*'D' 2.1% 2.1% 2.2% 2.0%* 2.2% 2.3% 17.3% 17.3% 17.3% 26.6% 26.6% 9.3% 9.3% 22.1% 15.2%
57 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
------------------------------------------------------------------------------------------------- Period from September 4, 2001 to October 31, 2001 --------------------------------------------- Class A Class I Class C ------------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund SELECTED PER SHARE DATA Net asset value, beginning of period.............. $10.00 $10.00 $10.00 ------ ------ ------ Income from investment operations: Net investment loss.............................. -- -- (0.02) Net realized and unrealized gains on investments.................................... 0.16 0.16 0.16 ------ ------ ------ Total from investment operations.................. 0.16 0.16 0.14 ------ ------ ------ Less distributions: Dividends from net investment income............. -- -- -- Distributions from capital gains................. -- -- -- ------ ------ ------ Total distributions............................... -- -- -- Net asset value, end of period................. $10.16 $10.16 $10.14 ------ ------ ------ ------ ------ ------ TOTAL RETURN'DD'.................................. 1.6% 1.6% 1.4% RATIOS AND SUPPLEMENTAL DATA Net assets, end of year (millions)................ $ 7 $ 17 $ 2 Ratio of operating expenses to average net assets........................................... 1.5%*'D' 1.3%*'D' 2.3%*'D' Ratio of net investment income to average net assets........................................... (0.2%)*'D' 0.1%*'D' (1.0%)*'D' Portfolio turnover rate........................... 2.6% 2.6% 2.6%
58 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
---------------------------------------------------------------------------------------------------------------------------- Period from Year Ended April 1, 2000 to October 31, October 31, Year Ended March 31, ----------- ---------------- ------------------------------------------------------------- 2001 2000 2000 1999 1998 1997 ---------------------------------------------------------------------------------------------------------------------------- First Eagle SoGen Gold Fund SELECTED PER SHARE DATA Net asset value, beginning of year... $4.44 $5.17 $5.44 $7.31 $10.60 $12.25 Income from investment operations: Net investment income............ 0.02 0.09 0.15 0.16 0.13 0.26 Net realized and unrealized gains (losses) on investments....... 1.92 (0.82) (0.27) (1.82) (3.03) (1.75) ----- ----- ----- ----- ------ ------ Total from investment operations........ 1.94 (0.73) (0.12) (1.66) (2.90) (1.49) ----- ----- ----- ----- ------ ------ Less distributions: Dividends from net investment income............ (0.21) -- (0.15) (0.21) (0.39) (0.14) Distributions from capital gains..... -- -- -- -- -- (0.02) ----- ----- ----- ----- ------ ------ Total distributions..... (0.21) -- (0.15) (0.21) (0.39) (0.16) ----- ----- ----- ----- ------ ------ Net asset value, end of year...... $6.17 $4.44 $5.17 $5.44 $ 7.31 $10.60 ----- ----- ----- ----- ------ ------ ----- ----- ----- ----- ------ ------ TOTAL RETURN'DD'..... 45.2% (14.1%)# (2.5%) (22.8%) (27.2%) (12.2%) RATIOS AND SUPPLEMENTAL DATA Net assets, end of year (millions)..... $ 13 $ 10 $ 13 $ 18 $ 31 $ 53 Ratio of operating expenses to average net assets.......... 2.7% 2.6%*'D' 2.2% 1.6% 1.6% 1.5% Ratio of net investment income to average net assets.............. 0.4% 2.9%*'D' 2.3% 2.0% 1.5% 1.2% Portfolio turnover rate................ 29.2% 11.7% 15.7% 37.7% 11.2% 16.8%
59 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued) NOTES TO FINANCIAL HIGHLIGHTS 'D''D' July 31, 1998 inception date for Class I shares. 'D''D''D' June 5, 2000 inception date for Class C shares. * Annualized. # Not annualized. 'DD' Does not give effect to the deduction of the sales load. 'D' The ratio of operating expenses to average net assets without the effect of earnings credits and in the case of the First Eagle U.S. Value Fund, without the effect of expense reimbursements are as follows:
---------------------------------------------------------------------------------- Year Ended October 31, 2001 --------------------------- Class A Class I Class C ---------------------------------------------------------------------------------- First Eagle SoGen Global Fund....................... 1.4% 1.1% 2.1% First Eagle SoGen Overseas Fund..................... 1.5% 1.3% 2.3% First Eagle SoGen Gold Fund......................... 2.7% N/A N/A
-------------------------------------------------------------------------------- Period from September 4, 2001 to October 31, 2001 ------------------------------ Class A* Class I* Class C* -------------------------------------------------------------------------------- First Eagle U.S. Value Fund..................... 3.3% 3.2% 4.1% --------------------------------------------------------------------------------
The ratio of net investment income to average net assets without the effect of earnings credits and in the case of the First Eagle U.S. Value Fund, without the effect of expense reimbursements are as follows:
--------------------------------------------------------------------------------- Year Ended October 31, 2001 --------------------------- Class A Class I Class C --------------------------------------------------------------------------------- First Eagle SoGen Global Fund....................... 2.2% 2.5% 1.1% First Eagle SoGen Overseas Fund..................... 0.9% 1.1% (0.1%) First Eagle SoGen Gold Fund......................... 0.4% N/A N/A
-------------------------------------------------------------------------------- Period from September 4, 2001 to October 31, 2001 ------------------------------ Class A* Class I* Class C* -------------------------------------------------------------------------------- First Eagle U.S. Value Fund..................... 1.6% 2.0% 0.8% --------------------------------------------------------------------------------
60
---------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, Year Ended March 31, ------------------------------ ---------------------------------------------------------------- 2000 2000 1999 ------------------------------ ------------------- ------------------ Class A* Class I* Class C* 'D''D''D' Class A Class I Class A Class I 'D''D' 1998 1997 ---------------------------------------------------------------------------------------------------------------- 1.4% 1.1% 1.9% 1.3% 1.1% 1.2% 1.6% 1.2% 1.2% 1.4% 1.2% 1.9% 1.3% 1.2% 1.3% 1.2% 1.2% 1.3% 2.6% N/A N/A 2.2% N/A 1.6% N/A 1.6% 1.5% ----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------ Period from April 1, 2000 to October 31, Year Ended March 31, ------------------------------ ------------------------------------------------------------ 2000 2000 1999 ------------------------------ ------------------- -------------------------------------- Class A* Class I* Class C* 'D''D''D' Class A Class I Class A Class I 'D''D' 1998 1997 ---------------------------------------------------------------------------------------------------------------- 2.8% 3.0% 1.1% 2.7% 2.9% 2.7% 2.4% 2.8% 3.1% 2.2% 2.5% (0.1%) 2.1% 2.1% 2.2% 1.8% 2.2% 2.3% 2.9% N/A N/A 2.2% N/A 2.0% N/A 1.5% 1.2% ----------------------------------------------------------------------------------------------------------------
61 INDEPENDENT AUDITORS' REPORT To the Board of Directors and Shareholders of FIRST EAGLE SOGEN FUNDS, INC.: We have audited the accompanying statements of assets and liabilities of First Eagle SoGen Funds, Inc. (the 'Funds') consisting of First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, including the schedules of investments, as of October 31, 2001, and the related statements of operations, the statements of changes in net assets and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2001, by correspondence with the custodian and brokers. As to securities purchased and sold but not yet received or delivered we performed alternative auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2001, and the results of its operations, the changes in its net assets and financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP New York, New York December 21, 2001 62 FIRST EAGLE SOGEN FUNDS, INC. TAX INFORMATION Fiscal Year Ended October 31, 2001 (Unaudited) Each Company portfolio designates the following amounts distributed during the fiscal year ended October 31, 2001, if any, as capital gains dividends and/or dividends eligible for the corporate dividends received deduction:
--------------------------------------------------------------------------------------- % of Dividends Eligible for the Aggregate Capital Gains Dividends Received Name of Portfolio Dividends Distributed Declaration --------------------------------------------------------------------------------------- First Eagle SoGen Global Fund............ $168,269,209 15.16% First Eagle SoGen Overseas Fund.......... 16,684,499 0.71% First Eagle U.S. Value Fund.............. -- -- First Eagle SoGen Gold Fund.............. -- 100.00%
These amounts were previously reported to Company shareholders on their tax year 2000 Forms 1099-DIV. In early 2002, shareholders will receive information regarding any dividends and distributions paid to them by the Company during calendar year 2001. 63 First Eagle SoGen Funds, Inc. 1345 Avenue of the Americas New York, N.Y. 10105 DIRECTORS AND OFFICERS Directors Investment Adviser John P. Arnhold Arnhold and S. Bleichroeder Candace K. Beinecke Advisers, Inc. Edwin J. Ehrlich 1345 Avenue of the Americas Robert J. Gellert New York, N.Y. 10105 James E. Jordan William M. Kelly Legal Counsel Donald G. McCouch Shearman & Sterling Fred J. Meyer 599 Lexington Avenue Dominique Raillard New York, N.Y. 10022 Nathan Snyder Stanford S. Warshawsky Custodian The Bank of New York Officers One Wall Street Stanford S. Warshawsky New York, N.Y. 10286 Chairman of the Board Shareholder Servicing Agent John P. Arnhold DST Systems, Inc. Co-President 330 West 9th Street Kansas City, MO 64105 Jean-Marie Eveillard (800) 334-2143 Co-President Underwriter Charles de Vaulx Arnhold and S. Bleichroeder, Inc. Senior Vice President 1345 Avenue of the Americas New York, N.Y. 10105 Robert Bruno Vice President, Independent Auditors Secretary & Treasurer KPMG LLP 757 Third Avenue Tracy Saltwick New York, N.Y. 10017 Vice President & Compliance Officer Edwin Olsen Vice President Andrew DeCurtis Vice President Stefanie Spritzler Assistant Treasurer Winnie Chin Assistant Treasurer Suzan J. Afifi Assistant Secretary This report is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective prospectus of First Eagle SoGen Funds, Inc. STATEMENT OF DIFFERENCES ------------------------ The dagger symbol shall be expressed as................................ 'D' The double dagger symbol shall be expressed as......................... 'DD'