N-30D 1 a32820.txt FIRST EAGLE SOGEN FUNDS, INC. First Eagle SoGen Funds SEMI-ANNUAL REPORT April 30, 2002 First Eagle SoGen Global Fund First Eagle SoGen Overseas Fund First Eagle U.S. Value Fund First Eagle SoGen Gold Fund Semi-Annual Report First Eagle SoGen Funds, Inc. THE PRESIDENTS' LETTER Dear Shareholder: We are generally reluctant to engage in forecasting. As Benjamin Graham used to quip: 'the future is uncertain.' And Peter Bernstein: 'anything can happen, good or bad.' So today we shall briefly discuss not the future but the present with Enron, and also the past with what our two objectives have been over the past quarter-century. Enron is just an extreme case. The key problem is that a large number of big American corporations have apparently pushed the accounting envelope with the acquiescence of their auditors and of Wall Street analysts, among others. It's going to be a hard path back to intellectual honesty. But we -- together with some other 'value' investors -- do not take reported earnings at face value. We make adjustments where appropriate -- upwards (in Continental Europe sometimes) or downwards (most of the time, alas) -- in order to try to come up with an approximation of true economic profits. It's time consuming admittedly, but necessary if we are to have any chance at even a rough estimate of the business value of an enterprise. As for our objectives, first and foremost, and over time (key words here . . .), we strive to do better, if possible much better, than a money market fund, simply because we're exposing you, our shareholders to the risks of equities. That objective was easy to reach in the 1980's and in the 1990's. It wasn't in the past two years and may or may not be in the future. Second, and over time again, we strive to do better than whatever benchmark is appropriate. Otherwise, you might say: 'I don't need you, I'll buy into an index fund.' We did beat our benchmarks -- over time (more than twenty-three years for the First Eagle SoGen Global Fund . . .) and by amounts that are not statistically insignificant -- but there were years (in the mid-to-late-nineties) when we lagged. As a final note, we reminded you in last December's letter that we had a gold fund. After floundering for a long time, the fund is up sharply this year but that's not the point. We look at gold (both with the First Eagle SoGen Gold Fund and with the modest exposure to gold in our three other funds) as insurance against something bad happening. As we said in last December's letter, just in case . . . Sincerely, Jean-Marie Eveillard John P. Arnhold Jean-Marie Eveillard John P. Arnhold Co-President Co-President May 28, 2002 P.S. Jean-Marie Eveillard and Charles de Vaulx were named 2001 International Managers of the year by Morningstar. Coming from Morningstar and with the quality of the competition, this is quite a compliment. But tomorrow is another day. 2 First Eagle SoGen Funds, Inc. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE [Photo of Charles de Vaulx and Jean-Marie Eveillard] The six month period ending April 30, 2002 was characterized by unprecedented volatility in many markets. Stock markets were volatile, mostly up until early 2002 and then down since mid-March -- an exception being the Japanese market which was weak until early February and then rebounded sharply. Stock markets struggled due to high valuation levels, an uncertain outlook for corporate profits, and bleak results in the telecommunications sector. Also, in the U.S., the issue du jour was the breakdown in confidence in corporate earnings following the Enron collapse. In early January, Argentina defaulted and its currency devalued sharply, yet most emerging markets rose strongly during the period. Bond markets weakened as major economies suffered less than expected from the September 11th attacks, particularly the U.S. economy. Foreign exchange markets were very volatile with the euro, Swiss franc, and Pound sterling weakening until early February and then rebounding strongly against the U.S. dollar. The Japanese yen weakened significantly and then rebounded partially in April. Finally, gold prices rose strongly -- and gold related stocks, even more so, in the wake of renewed investment demand for gold in Japan (where individuals question the safety of their bank deposits), tensions in the Middle East, and a weakening U.S. dollar, as well as nonexistent producer hedging. First Eagle SoGen Global Fund The net asset value of the Fund's Class `A' shares rose 19.45% between November 1, 2001 and April 30, 2002, better than the MSCI World Index which was up 3.29% over that period. Almost half of that performance came from the First Eagle SoGen Global Fund's stocks in the U.S., where many value stocks were up over that period, particularly small and mid capitalization value stocks. In particular, the First Eagle SoGen Global Fund benefited from strong moves in Rayonier Inc. (paper and forest products), Manpower Inc. (temporary staffing), Greif Bros. Corporation, Class `A' (shipping containers), and Energizer Holdings, Inc. (batteries). The First Eagle 3 SoGen Global Fund's South Korean stocks did well, including Daeduck Electronics Company, Limited (printed circuit boards), Lotte Confectionery Company, Limited (food), and Nam Yang Dairy Products (food). Many U.K. and continental European stocks rose as well, including Kuehne & Nagel International AG (freight forwarding), BBAG Oesterreichische Brau-Beteiligungs AG (beer), IMI plc (manufacturing), Flughafen Wien AG (airport), and Enodis plc (food equipment). Gold related stocks also helped performance, contributing a little over 4% of the First Eagle SoGen Global Fund's total return over the period. Only two securities benefited from corporate activity: Security Capital Group, Inc., Class `B', a U.S. real estate company that was acquired by General Electric Company, and Crometal SA, a French industrial company that announced the distribution of a significant extraordinary dividend. Conversely, Robert Bosch was apparently not willing to pay 'full price' for Buderus AG. We were disappointed, but happy to remain shareholders of this fine German company (after having reduced somewhat our stake in January). The Fund remains 70% hedged to protect against a possible further decline in the Japanese yen, while we are only 18% hedged against the euro, believing the latter to be significantly undervalued against the U.S. dollar. First Eagle SoGen Overseas Fund The net asset value of the Fund's Class `A' shares rose 21.14% for the period from November 1, 2001 to April 30,2002, while the MSCI EAFE Index was up 5.53% over that period. Among the foreign stocks that helped the First Eagle SoGen Overseas Fund were our South Korean stocks. The South Korean market in general has been doing very well, reflecting the positive impact of all the structural reforms engineered over the past few years in that country. We have started to take some profits on both Daeduck Electronics Company, Limited and Daeduck GDS Company, Limited, two very successful manufacturers of printed circuit boards. Other stocks such as Lotte Confectionery Company, Limited and Nam Yang Dairy Products (two successful food manufacturers) have risen significantly but still trade at a significant discount to what we believe are their respective intrinsic values. Also helping the First Eagle SoGen Overseas Fund were various stocks from the Industrials and Paper and Forest Products industries, 4 reflecting the better economic outlook. In particular, Carter Holt Harvey Limited (a major timberland owner in New Zealand), Shaw Brothers (Hong Kong) Limited (T.V. broadcasting in Hong Kong), IMI plc and Spirax-Sarco Engineering plc, two U.K. manufacturing companies. Also benefiting from a cyclical rebound was Millennium & Copthorne Hotel plc, a U.K. based company with hotels in major U.S. cities and around the world, including Asia. Kuehne & Nagel International AG, the Swiss based global freight forwarding company, was the third best performer over the six month period as investors realized that the company was not only more profitable but also a lot less cyclical then most transportation companies. We believe that stock to still be significantly undervalued at current prices. Finally, the First Eagle SoGen Overseas Fund benefited from its precious metals related securities. In particular, Industrias Penoles, S.A. de C.V. -- a silver producer in Mexico, saw its share price jump 94% during the period. Only one security benefited from corporate activity, Crometal SA, a French industrial company that announced the distribution of a significant extraordinary dividend. The Fund remains 70% hedged to protect against a possible further decline in the Japanese yen, while only 15% hedged against the euro. In addition, we initiated a 50% hedge on the Korean won. First Eagle U.S. Value Fund Between November 1, 2001 and April 30, 2002, the net asset value of the First Eagle U.S. Value Fund's Class `A' shares rose 19.49%, while the S&P 500 and the Russell 2000 rose 2.35% and 20.03%, respectively, over that period. The First Eagle U.S. Value Fund has benefited from a strong surge among many small and medium capitalization stocks in the U.S. In particular, the First Eagle U.S. Value Fund saw sharp appreciations in stocks as varied as Rayonier Inc. (paper and forest products), Hancock Fabrics, Inc. (retail), Energizer Holdings, Inc. (batteries), Manpower Inc. (temporary staffing), Dole Food Company, Inc. (food), and Freeport McMoRan Copper & Gold Inc. (metals). The very few names that were down include Earthlink Inc. (internet service provider), Tyco International Limited (conglomerate, which we started buying a little too early), and CONSOL Energy, Inc. (coal). The only instance of corporate activity that benefited the First Eagle U.S. Value Fund was Security Capital Group, Inc. Class `B' (real 5 estate) which was acquired by General Electric Company at a premium of approximately 26%. First Eagle SoGen Gold Fund Between November 1, 2001 and April 30, 2002, the price of gold rose from $280 an ounce to $308.45 an ounce, i.e. 10.16%, helped by global financial uncertainty (weak banking system in Japan, Argentine default, Middle East crisis, unstable stock markets, weakening U.S. dollar) as well as a lack of hedging activity by gold mining companies. The net asset value of the Fund's Class `A' shares rose 66.61%, while the Financial Times Gold Mines Index was up 47.28% over that period. The Fund's performance was better than most of its peers because it focuses primarily on the gold companies that do not hedge. As gold funds in general, and your First Eagle SoGen Gold Fund in particular, are beginning to attract new inflows, we are adding to our existing positions whenever possible and coming up with a few new names. We have also started to invest in gold structured notes which typically have a one year maturity and provide one and a half to one leverage to the price of gold. Outlook Our five analysts are currently doing thorough research (often recasting the financial statements of the companies being investigated) on a few new ideas that hopefully will be added to the portfolio in the coming months. We are struck by the fact that small and medium cap value stocks have recovered so strongly in the U.S. since the fall of 2000, while barely moving in Europe or Asia. Expectations for a sustainable economic recovery might be too high in the U.S., but too low for Europe and Asia. Finally, the stocks we own in Japan are of well capitalized companies that offer extraordinary value and should be somewhat immune to the country's economic woes. We appreciate your confidence and thank you for your continued support. Charles de Vaulx Charles de Vaulx Co-Manager 6 First Eagle SoGen Funds Performance Average Annual Returns as of April 30, 2002(1) (Unaudited)
---------------------------------------------------------------------------------------------------------------------------- 1 Year 3 Years 5 Years 10 Years 15 Years Inception Inception Date ============================================================================================================================ First Eagle SoGen Global Fund First Eagle SoGen Global Fund - Class A (SGENX) without sales load 14.88% 14.69% 11.12% 12.00% 10.82% 15.32% 1/01/79(2) with sales load 9.14% 13.23% 10.27% 11.57% 10.53% 15.13% 1/01/79(2) First Eagle SoGen Global Fund - Class I (SGIIX) 15.14% 14.89% ---- ---- ---- 12.37% 7/31/98 First Eagle SoGen Global Fund - Class C (FESGX) 14.07% ---- ---- ---- ---- 15.39% 6/05/00 ============================================================================================================================ MSCI World Index(3) (13.85%) (6.69%) 3.98% 8.50% 6.74% 11.54% 1/01/79 ============================================================================================================================ First Eagle SoGen Overseas Fund First Eagle SoGen Overseas Fund - Class A (SGOVX) without sales load 12.70% 14.30% 11.11% ---- ---- 11.98% 8/31/93 with sales load 7.06% 12.86% 10.27% ---- ---- 11.49% 8/31/93 First Eagle SoGen Overseas Fund - Class I (SGOIX) 12.87% 14.45% ---- ---- ---- 12.68% 7/31/98 First Eagle SoGen Overseas Fund - Class C (FESOX) 11.98% ---- ---- ---- ---- 11.95% 6/05/00 ============================================================================================================================ MSCI EAFE Index(4) (13.88%) (6.36%) 1.34% 5.86% 3.77% 3.31% 8/31/93 ============================================================================================================================ First Eagle U.S. Value Fund(5) First Eagle U.S. Value Fund - Class A (FEVAX) without sales load ---- ---- ---- ---- ---- 21.40% 9/04/01 with sales load ---- ---- ---- ---- ---- 15.06% 9/04/01 First Eagle U.S. Value Fund - Class I (FEVIX) ---- ---- ---- ---- ---- 21.60% 9/04/01 First Eagle U.S. Value Fund - Class C (FEVCX) ---- ---- ---- ---- ---- 19.64% 9/04/01 ============================================================================================================================ Russell 2000 Index(6) 6.68% 7.06% 9.66% 11.64% 9.74% 10.33% 9/04/01 ============================================================================================================================ First Eagle SoGen Gold Fund First Eagle SoGen Gold Fund (SGGDX) without sales load 93.22% 22.32% 4.05% ---- ---- 3.15% 8/31/93 with sales load 83.56% 20.77% 3.26% ---- ---- 2.69% 8/31/93 ============================================================================================================================ Financial Times Gold Mines Index(7) 64.90% 6.77% (3.34%) ---- ---- 3.31% 8/31/93 ============================================================================================================================
Please see the following page for important notes to this table. Performance data quoted herein represents past performance and should not be considered indicative of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. 7 FIRST EAGLE SOGEN FUNDS PERFORMANCE -- (CONTINUED) (1) The average annual returns shown on the prior page are historical and reflect changes in share price, reinvested dividends and are net of expenses. The average annual returns for Class A Shares give effect to the deduction of the maximum sales load of 3.75% for periods prior to March 1, 2000 and of 5.00% thereafter. The average annual returns for Class C shares reflect a CDSC (Contingent Deferred Sales Charge) of 1.00% in the first year only. For U.S. Value Fund Class C Shares only, the 1.00% front end sales load is also reflected in the returns. Class I Shares require $1mm minimum investment, and offered without load. (2) As of current management tenure January 1, 1979. (3) The MSCI World Index is a widely followed, unmanaged group of stocks from 23 international markets and is not available for purchase. This index is a trademark of Morgan Stanley Capital International SA in Geneva, Switzerland. (4) The MSCI EAFE Index is a widely followed, unmanaged group of stocks from 21 international markets and is not available for purchase. This index is a trademark of Morgan Stanley Capital International SA in Geneva, Switzerland. (5) Due to First Eagle U.S. Value Fund's inception date (September 4, 2001), the performance data shown on the prior page is of a very limited time period and should not be misconstrued to reflect future performance. (6) The Russell 2000 Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index and is not available for purchase. (7) The Financial Times Gold Mines Index is an unmanaged index composed of 32 gold mining companies and is not available for purchase. The Financial Times Gold Mines Index is only available without dividends reinvested. 8 FIRST EAGLE SOGEN GLOBAL FUND FUND OVERVIEW APRIL 30, 2002 (UNAUDITED) 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 APRIL 30, 2002
ONE-YEAR FIVE-YEAR TEN-YEAR -------- --------- -------- First Eagle SoGen Global Fund (A Shares)........... 9.14% 10.27% 11.57% MSCI World Index.................................... (13.85%) 3.98% 8.50% Consumer Price Index................................ 1.53% 2.31% 2.55%
Growth of a $10,000 Initial Investment
First Eagle MSCI Consumer SoGen Global Fund World Index Price Index ----------------- ----------- ----------- 4/30/92 10,000 10,000 10,000 11,683 9,881 10,488 12,998 11,508 10,643 14,387 12,550 10,777 15,252 12,872 10,888 15,815 13,510 11,058 16,058 14,126 11,235 17,099 14,791 11,368 19,063 16,768 11,553 19,488 17,202 11,709 20,595 18,502 11,842 21,905 20,087 11,953 23,631 23,874 12,019 20,954 23,151 12,123 23,123 27,683 12,293 24,563 28,919 12,433 25,813 31,085 12,670 26,802 29,235 12,862 30,364 26,097 13,077 4/30/02 29,943 22,602 12,867
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% for periods prior to March 1, 2000 and of 5.00% thereafter. The MSCI World Index returns assume reinvestment of dividends. This index is a widely followed, unmanaged group of stocks from 23 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 Rayonier Inc. (U.S. forest products company) 5.48% Buderus AG (German manufacturer of heating systems) 4.29% Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 2.70% Newmont Mining Corporation (U.S. mining company) 2.33% Shimano Inc. (Japanese manufacturer of bicycle parts) 2.15% Freeport McMoRan Copper & Gold Inc. (B,C & D) (U.S. mining company) 1.87% McDonald's Corporation (U.S. restaurant franchise) 1.36% Kuehne & Nagel International AG (Swiss freight company) 1.35% Security Capital Group, Inc. Class `B' (U.S. real estate operating and investment company) 1.32% Shaw Brothers (Hong Kong) Limited (Chinese holding company with a large stake in media) 1.28% ASSET ALLOCATION Foreign Stocks 44.46% U.S. Stocks 30.82% U.S. Dollar Bonds and Notes 14.92% Foreign Currency Bonds and Notes 1.95% U.S. Dollar Cash and Equivalents 7.85% TOP 5 COUNTRIES United States 53.34% Japan 9.28% Germany 7.05% France 4.27% South Korea 3.49%
The Fund's portfolio composition is subject to change at any time. 9 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (30.82%) Agriculture (0.27%) 100,000 Deere & Company $ 2,013,195 $ 4,476,000 2,485 J.G. Boswell Company (a) 573,840 755,440 -------------- -------------- 2,587,035 5,231,440 -------------- -------------- Automotive (0.23%) 135,800 Bandag Incorporated, Class `A' 5,131,035 4,461,030 -------------- -------------- Capital Goods (1.57%) 215,000 Franklin Electric Company, Inc. 7,460,000 10,879,000 500,000 Tyco International Limited 11,567,850 9,225,000 185,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 6,205,830 8,186,250 365,000 Kaiser Ventures LLC (a) -- 1,277,500 4,805 Conbraco Industries, Inc. (a) 1,568,050 1,033,075 -------------- -------------- 26,801,730 30,600,825 -------------- -------------- Chemicals (0.23%) 3,818,100 Ethyl Corporation (a) 6,693,366 4,619,901 -------------- -------------- Consumer Products (2.70%) 795,000 Energizer Holdings, Inc. (a) 15,044,276 19,000,500 184,500 Allen Organ Company, Class `B' (c) 5,726,139 6,918,750 185,000 St. John Knits International Inc. (a) 3,180,703 6,567,500 115,000 Philip Morris Companies, Inc. 2,838,087 6,259,450 145,000 Weyco Group, Inc. 1,502,428 4,484,125 115,000 Dole Food Company, Inc. 1,404,795 3,826,050 210,424 Jostens, Inc., Class `A' (a) 2,944,626 3,471,996 300,000 A.T. Cross Company, Class `A' (a) 3,169,423 2,124,000 125,000 Baldwin Piano & Organ Company (a) 917,000 1,250 -------------- -------------- 36,727,477 52,653,621 -------------- -------------- Electronics (0.00%) 25,000 OpticNet Inc. -- 25 -------------- -------------- Energy (2.27%) 835,000 San Juan Basin Royalty Trust 4,945,091 9,652,600 95,000 Murphy Oil Corporation 3,757,994 8,963,250 335,000 CONSOL Energy, Inc. 6,548,661 7,701,650 145,000 Burlington Resources, Inc. 5,074,651 6,442,350 215,000 Kaneb Services LLC 1,379,612 5,028,850 70,000 Phillips Petroleum Company 2,847,227 4,186,700 700,000 Xanser Corporation (a) 741,146 2,310,000 -------------- -------------- 25,294,382 44,285,400 -------------- --------------
10 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Financial Companies (0.34%) 70 Berkshire Hathaway Inc., Class `A' (a) $ 3,509,801 $ 5,141,500 114,750 East Texas Financial Services, Inc. (c) 862,687 1,285,774 31,000 Redwood Financial, Inc. (a)(e) 271,250 302,870 -------------- -------------- 4,643,738 6,730,144 -------------- -------------- Forest Products (6.95%) 1,825,000 Rayonier Inc. (c) 67,517,044 107,072,750 615,000 Greif Bros. Corporation, Class `A' 11,017,026 21,844,800 200,000 Deltic Timber Corporation 3,613,195 6,700,000 -------------- -------------- 82,147,265 135,617,550 -------------- -------------- Health Care (0.46%) 225,000 DENTSPLY International, Inc. 3,864,747 8,925,750 -------------- -------------- Media (0.81%) 1,000,000 General Motors Corporation -- Class `H' (a) 15,642,707 14,980,000 34,924 Mills Music Trust 1,055,337 841,668 -------------- -------------- 16,698,044 15,821,668 -------------- -------------- Precious Metals (4.56%) 1,215,000 Newmont Mining Corporation 17,032,359 34,639,650 3,676,750 Newmont Mining Corporation Holding Company 3,394,060 10,984,530 700,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (a)(d) 23,008,334 20,090,000 925,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (a)(d) 14,053,198 9,342,500 315,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (a)(d) 9,389,978 7,040,250 7,432 Case, Pomeroy & Company, Inc. Class `A' 7,366,948 7,119,856 -------------- -------------- 74,244,877 89,216,786 -------------- --------------
11 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Real Estate (2.69%) 1,000,000 Security Capital Group, Inc. Class `B' (a) $ 15,298,036 $ 25,730,000 510,000 Security Capital European Realty (a)(e) 10,199,990 9,965,400 500,000 Crescent Real Estate Equities Company 7,671,061 9,810,000 258,133 Price Legacy Corporation pfd., Series `A' 2,935,244 3,975,248 150,000 Catellus Development Corporation (a) 253,547 3,060,000 -------------- -------------- 36,357,878 52,540,648 -------------- -------------- Retail (2.88%) 935,000 McDonald's Corporation 25,157,941 26,554,000 215,000 Tiffany and Company 4,681,906 8,546,250 275,000 The Sherwin-Williams Company 5,807,682 8,450,750 245,000 Dillard's Inc., Class `A' 4,184,329 6,000,050 200,000 Hancock Fabrics, Inc. 643,925 3,638,000 100,000 Papa John's International Inc. (a) 2,211,624 3,110,000 -------------- -------------- 42,687,407 56,299,050 -------------- -------------- Services (1.93%) 485,000 Manpower Inc. 13,162,192 19,521,250 355,000 UniFirst Corporation 4,177,244 9,641,800 111,300 Chemed Corporation 2,974,469 4,273,920 200,000 Handleman Company (a) 1,973,345 2,560,000 77,392 KinderCare Learning Centers, Inc. (a) 992,527 1,741,320 -------------- -------------- 23,279,777 37,738,290 -------------- -------------- Technology (1.43%) 1,350,000 Earthlink, Inc. (a) 11,612,105 9,828,000 165,000 Zebra Technologies Corporation, Class `A' (a) 6,674,899 9,350,550 685,000 American Power Conversion Corporation (a) 8,015,766 8,802,250 -------------- -------------- 26,302,770 27,980,800 -------------- -------------- Transportation (0.64%) 450,000 Burlington Northern Santa Fe Corporation 10,703,683 12,370,500 -------------- --------------
12 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Utilities (0.86%) 305,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. $ 13,465,313 $ 12,010,900 125,000 IDACORP, Inc. 3,763,795 4,730,000 -------------- -------------- 17,229,108 16,740,900 -------------- -------------- Common and Preferred Stocks -- Non U.S. (44.46%) Argentina (0.14%) 175,000 Siderca S.A.I.C. ADR (2) 1,257,401 2,817,500 -------------- -------------- Australia and New Zealand (1.37%) 3,150,000 Independent News and Media Limited exchangeable preference shares (14) 16,143,687 12,054,987 10,000,000 Carter Holt Harvey Limited (3) 9,380,191 8,056,800 8,850,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (18) 5,435,262 3,985,028 1,000,000 Spotless Group Limited (15) 1,620,341 2,540,776 -------------- -------------- 32,579,481 26,637,591 -------------- -------------- Austria (1.54%) 295,000 BBAG Oesterreichische Brau- Beteiligungs AG (11) 11,299,170 17,071,643 400,000 Flughafen Wien AG (8) 13,948,426 12,890,818 -------------- -------------- 25,247,596 29,962,461 -------------- -------------- Belgium (0.47%) 500,000 Deceuninck (5) 6,669,400 9,128,595 -------------- -------------- Canada (1.55%) 375,000 EnCana Corporation (2) 4,298,978 11,793,750 500,000 Meridian Gold Inc. (a)(1) 1,814,526 7,555,896 135,000 Fairmont Hotels & Resorts Inc. (18) 1,145,394 3,847,500 635,000 Pan American Silver Corporation (a)(1) 2,027,589 3,621,280 165,000 Canadian Pacific Railway Limited (8) 1,195,764 3,440,250 -------------- -------------- 10,482,251 30,258,676 -------------- -------------- Chile (0.07%) 250,000 Quinenco S.A. ADR (19) 1,662,544 1,402,500 -------------- --------------
13 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- Non-U.S. -- (continued) Commonwealth of Independent States (0.20%) 556,624 Firebird Fund, L.P. (b)(e)(21) $ 1,000,000 $ 3,900,988 -------------- -------------- Denmark (0.59%) 265,000 Carlsberg A/S `B' (11) 12,046,991 11,572,683 -------------- -------------- France (3.66%) 375,000 Eurazeo (19) 15,626,920 19,995,540 27,500 Societe Sucriere de Pithiviers-le-Vieil (c)(4) 10,658,072 10,898,470 70,000 NSC Groupe (c)(6) 12,400,388 6,494,047 127,500 Sagem ADP (9) 3,826,308 5,511,136 56,250 Taittinger C.I. (a)(11) 2,775,854 5,421,088 73,500 Crometal SA (6) 4,938,687 5,362,317 385,000 Sabeton SA (c)(19) 4,841,233 3,973,978 90,000 Societe BIC SA (11) 3,278,464 3,518,134 70,000 Schneider Electric SA (6) 872,044 3,376,274 60,000 Gaumont SA (a)(14) 2,895,073 2,658,866 42,252 Robertet SA C.I. (a)(c)(11) 800,508 2,397,552 20,448 Robertet SA (11) 527,638 1,814,125 -------------- -------------- 63,441,189 71,421,527 -------------- -------------- Germany (7.05%) 3,500,000 Buderus AG (6) 58,267,291 83,697,548 385,000 Hornbach Holding AG Pfd. (12) 22,377,021 21,048,909 5,039,400 Bertelsmann AG D.R.C. (14) 12,268,742 9,829,000 500,000 Sudzucker AG Pfd. (4) 5,849,951 7,655,950 195,000 Bayer AG (7) 3,968,368 6,419,514 215,000 Merck KGaA (13) 6,683,418 6,351,736 50,000 Axel Springer Verlag AG (14) 1,553,189 2,702,550 -------------- -------------- 110,967,980 137,705,207 -------------- -------------- Hong Kong (1.37%) 21,650,000 Shaw Brothers (Hong Kong) Limited (c)(14) 21,884,402 24,983,652 21,500,000 City e-Solutions Limited (a)(c)(16) 971,287 1,736,739 -------------- -------------- 22,855,689 26,720,391 -------------- -------------- Israel (0.05%) 275,000 The Israel Land Development Company Limited (a)(20) 900,749 967,416 -------------- --------------
14 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- Non-U.S. -- (continued) Japan (9.28%) 3,165,000 Shimano Inc. (11) $ 46,799,385 $ 42,011,314 475,000 Secom Company, Limited (15) 21,890,301 23,343,701 575,000 Ono Pharmaceutical Company, Limited (13) 20,404,319 18,779,160 3,975,000 Nipponkoa Insurance Company, Limited (16) 14,923,262 14,743,974 2,000,000 Mitsui Sumitomo Insurance Company, Limited (16) 11,138,221 9,828,927 4,900,000 Aioi Insurance Company, Limited (16) 15,410,083 9,068,429 1,205,000 Makita Corporation (11) 10,202,070 7,908,398 700,000 Shoei Company, Limited (c)(19) 5,834,803 7,473,561 615,000 Chofu Seisakusho Company, Limited (6) 10,291,599 7,402,955 1,000,000 Wacoal Corporation (11) 8,626,718 7,278,383 2,500,000 Okumura Corporation (6) 10,670,713 6,337,481 2,000,000 Aida Engineering, Limited (6) 13,038,988 5,692,068 175,000 Fuji Photo Film Company, Limited (11) 4,159,184 5,552,100 1,000,000 Kokusai Securities Company, Limited (16) 7,279,769 5,054,432 1,000,000 Nisshinbo Industries, Inc. (20) 4,271,416 4,043,546 500,000 Hitachi, Limited (10) 3,601,871 3,697,512 2,000,000 Iino Kaiun Kaisha, Limited (8) 4,857,297 3,032,659 -------------- -------------- 213,399,999 181,248,600 -------------- -------------- Mexico (1.18%) 12,000,000 Industrias Penoles, S.A. de C.V. (1) 26,462,656 22,998,296 -------------- -------------- Netherlands (1.01%) 315,000 OPG Groep NV (13) 7,677,057 12,906,446 325,000 Holdingmaatschappij de Telegraaf NV (14) 3,243,242 6,747,369 -------------- -------------- 10,920,299 19,653,815 -------------- -------------- Singapore and Malaysia (0.47%) 1,215,000 Fraser & Neave Limited (19) 4,147,603 5,091,110 2,825,000 Delgro Corporation Limited (19) 1,763,712 4,034,045 -------------- -------------- 5,911,315 9,125,155 -------------- -------------- South Africa (1.90%) 2,000,000 Gold Fields Limited (1) 7,102,817 24,134,036 1,000,000 Harmony Gold Mining Company Limited (1) 4,591,642 12,876,506 -------------- -------------- 11,694,459 37,010,542 -------------- --------------
15 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- Non-U.S. -- (continued) South Korea (3.49%) 65,000 Nam Yang Dairy Products (c)(11) $ 14,642,655 $ 23,196,276 1,434,700 Daeduck Electronics Company, Limited (9) 10,243,119 16,584,197 601,250 Daeduck GDS Company, Limited (9) 3,188,400 6,903,413 27,950 Lotte Confectionery Company, Limited (11) 5,099,109 14,094,259 7,750 Lotte Chilsung Beverage Company (11) 1,161,734 4,419,123 10,000 Samsung Electronics Company, Limited (9) 1,020,350 2,963,538 -------------- -------------- 35,355,367 68,160,806 -------------- -------------- Spain and Portugal (3.16%) 2,705,000 Corporacion Financiera Alba SA (c)(19) 58,967,683 52,699,191 525,000 Espirito Santo Financial Group SA ADR (16) 8,754,822 9,082,500 -------------- -------------- 67,722,505 61,781,691 -------------- -------------- Switzerland (3.24%) 375,000 Kuehne & Nagel International AG (8) 11,558,726 26,393,777 34,500 Edipresse SA (14) 9,097,472 11,949,435 41,500 Sika Finanz AG (5) 9,174,476 10,120,701 15,000 Lindt & Sprungli AG PC (c)(11) 2,661,221 9,075,755 10,000 Societe Generale d'Affichage (14) 2,094,287 4,198,308 750 Pargesa Holding AG (16) 1,636,177 1,605,853 -------------- -------------- 36,222,359 63,343,829 -------------- -------------- Thailand (0.15%) 577,000 The Oriental Hotel Public Company Limited (18) 2,636,472 3,015,424 -------------- -------------- United Kingdom (2.52%) 4,625,000 IMI plc (20) 17,955,471 20,159,552 10,000,000 Enodis plc (a)(6) 13,830,990 13,411,760 875,000 Antofagasta Holdings plc (1) 2,300,167 7,379,201 2,000,000 Aggregate Industries plc (5) 1,726,999 2,726,086 155,400 Lonmin plc (1) 317,526 2,646,012 3,000,000 McBride plc (11) 7,569,080 2,492,838 2,675,000 Royal Doulton plc (a)(11) 6,031,691 370,463 -------------- -------------- 49,731,924 49,185,912 -------------- -------------- Total Common and Preferred Stocks 1,190,562,945 1,469,853,933 -------------- --------------
16 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds (16.87%) U.S. Dollar Convertible Bonds (1.22%) $ 3,000,000 LUKINTER Finance BV 3 1/2% due 5/06/2002 (2) $ 2,981,122 $ 3,907,500 3,000,000 Ashanti Goldfields Company Limited 5 1/2% due 3/15/2003 (a)(1) 2,861,121 3,018,750 3,615,000 Coeur d'Alene Mines Corporation 6% due 6/10/2002 (a)(1) 3,593,859 3,108,900 6,000,000 Coeur d'Alene Mines Corporation 6 3/8% due 1/31/2004 (a)(1) 5,994,970 3,780,000 10,000,000 Friede Goldman Halter Marine Group Inc. 4 1/2% due 9/15/2004 (a)(f)(6) 6,776,154 1,325,000 4,420,000 Battle Mountain Gold Company 6% due 1/04/2005 (a)(1) 3,925,097 4,265,300 3,500,000 LG Electronics Inc. 1/4% due 12/31/2007 (9) 2,859,375 4,375,000 2,500,000 Medya International Limited 10% due 6/28/2049 (a)(e)(f)(14) 2,482,264 25,000 -------------- -------------- 31,473,962 23,805,450 -------------- -------------- U.S. Dollar Bonds and Notes (8.56%) 1,250,000 HSBC Gold Linked Note 0% due 4/09/2003 (a)(d)(e)(1) 1,250,000 1,255,875 8,000,000 The Southland Corporation 5% due 12/15/2003 (12) 7,413,667 7,650,000 5,589,000 The Southland Corporation 4% due 6/15/2004 (12) 4,823,680 5,120,921 3,625,000 Dillard's Inc. 6.43% due 8/01/2004 (6) 3,397,432 3,584,346 4,644,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (a)(f)(3) 3,515,596 1,033,290 1,500,000 Hollinger International Publishing 8 5/8% due 3/15/2005 (14) 1,575,000 1,653,750 3,500,000 Hollinger International Publishing 9 1/4% due 3/15/2007 (14) 3,514,754 3,613,750 6,750,000 Blount International Inc. 7% due 6/15/2005 (6) 5,613,501 6,015,938 23,500,000 Blount International Inc. 13% due 8/01/2009 (6) 16,344,322 16,215,000 2,750,000 Westpoint Stevens Inc. 7 7/8% due 6/15/2005 (11) 2,385,229 1,828,750 2,000,000 Polaroid Corporation 11 1/2% due 2/15/2006 (a)(f)(11) 2,027,500 45,000 10,000,000 Riverwood International Corporation 10 1/4% due 4/01/2006 (3) 9,949,905 10,366,700
17 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Bonds and Notes -- (continued) $ 3,500,000 American Standard Inc. 7 1/8% due 6/01/2006 (5) $ 3,180,604 $ 3,152,450 4,910,000 American Standard Inc. 8 1/4% due 6/01/2009 (5) 5,236,863 5,155,500 2,000,000 TriQuint Semiconductor Inc. 4% due 3/01/2007 (10) 1,427,983 1,542,500 1,250,000 B&G Foods Inc. 9 5/8% due 8/01/2007 (11) 1,263,219 1,293,750 3,500,000 Seagate Technology International 12 1/2% due 11/15/2007 (b)(10) 3,395,014 4,235,000 4,500,000 AMSC Acquisition Company Inc. 12 1/4% due 4/01/2008 (a)(f)(10) 4,258,194 1,710,000 1,600,000 Columbus McKinnon Corporation 8 1/2% due 4/01/2008 (6) 1,498,709 1,552,000 10,000,000 Level 3 Communications, Inc. 9 1/8% due 5/01/2008 (6) 5,031,636 4,450,000 5,750,000 Domino's Inc. 10 3/8% due 1/15/2009 (11) 5,577,382 6,195,625 1,000,000 Longview Fibre Company 10% due 1/15/2009 (3) 993,955 1,052,500 2,000,000 Crescent Real Estate Equities Company 9 1/4% due 4/15/2009 (18) 2,009,375 2,053,902 5,000,000 St. John Knits International Inc. 12 1/2% due 7/01/2009 (11) 4,803,818 5,350,000 4,000,000 Jostens Inc. 12 3/4% due 5/01/2010 (11) 3,994,609 4,500,000 5,240,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 (6) 5,202,967 5,427,618 1,878,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 144A (b)(6) 1,893,090 2,131,530 10,000,000 Tyco International Group SA 6 3/4% due 2/15/2011 (6) 8,294,129 8,200,000 6,900,000 Briggs & Stratton Corporation 8 1/2% due 3/15/2011 (11) 7,351,750 7,245,000 5,000,000 Steinway Musical Instruments 8 3/4% due 4/15/2011 (11) 5,046,250 5,075,000 2,500,000 Penton Media Inc. 10 3/8% due 6/15/2011 (14) 2,098,099 1,987,500 4,500,000 Potlatch Corporation 10% due 7/15/2011 (3) 4,830,625 4,882,500 1,000,000 UCAR Finance Inc. 10 1/4% due 2/15/2012 (b)(16) 1,020,000 1,057,500 3,200,000 Bausch and Lomb Inc. 7 1/8% due 8/01/2028 (13) 2,686,842 2,630,400 10,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(16) 6,056,601 10,000,000
18 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Bonds and Notes -- (continued) $ 5,500,000 Bergen Bank Floating Rate Perpetual Notes (2.1875% @ 4/30/2002) (16) $ 3,888,750 $ 4,379,375 3,500,000 Den Norske Bank Floating Rate Perpetual Notes (2.2125% @ 4/30/2002) (16) 2,610,000 2,770,775 3,170,000 Den Norske Bank Floating Rate Perpetual Notes (2.1875% @ 4/30/2002) (16) 2,059,625 2,532,038 10,000,000 Christiania Bank Floating Rate Perpetual Notes (2.1875% @ 4/30/2002) (16) 6,826,750 8,157,280 -------------- -------------- 164,347,425 167,103,063 -------------- -------------- U.S. Treasury Notes (5.14%) 44,883,200 U.S. Treasury Inflation Index Note 3 3/8% due 1/15/2007 (22) 45,042,720 46,561,832 10,000,000 U.S. Treasury Zero Coupon Strip due 11/15/2007 (a)(22) 7,220,052 7,785,840 23,774,625 U.S. Treasury Inflation Index Note 4 1/4% due 1/15/2010 (22) 25,270,054 25,738,409 5,000,000 U.S. Treasury Note 7 1/4% due 5/15/2016 (22) 5,173,906 5,802,150 15,000,000 U.S. Treasury Note 5 3/8% due 2/15/2031 (22) 14,426,791 14,528,910 -------------- -------------- 97,133,523 100,417,141 -------------- -------------- Non U.S. Dollar Convertible Bonds (0.15%) CAD 1,600,000 Noranda Inc. 5% due 4/30/2007 (20) 1,087,104 946,640 NZD 3,500,000 Evergreen Forest Limited 0% due 3/19/2009 (a)(3) 1,871,556 1,942,584 -------------- -------------- 2,958,660 2,889,224 -------------- -------------- Non U.S. Dollar Bonds and Notes (1.80%) CAD 2,500,000 Bell Canada 8 1/2% due 6/09/2003 (17) 1,778,832 1,669,298 CAD 4,500,000 Shaw Communications Inc. 7.4% due 10/17/2007 (14) 2,844,116 2,872,060 EUR 7,500,000 Sola International Inc. 11% due 3/15/2008 (13) 6,774,427 7,228,118 EUR 13,573,560 Republic of France O.A.T. 3% due 7/25/2009 (22) 11,550,786 11,977,524 ZAR 50,000,000 Republic of South Africa 13% due 8/31/2010 (22) 4,594,230 4,924,149 EUR 3,500,000 The Manitowoc Company, Inc. 10 3/8% due 5/15/2011 (b)(6) 3,040,636 3,404,646
19 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) Non U.S. Dollar Bonds and Notes -- (continued) GBP 2,000,000 Enodis plc 10 3/8% due 4/15/2012 (b)(6) $ 2,914,375 $ 3,017,646 -------------- -------------- 33,497,402 35,093,441 -------------- -------------- Total Bonds, Notes and Convertible Bonds 329,410,972 329,308,319 -------------- -------------- Short-Term Investments (7.60%) $ 6,500,000 Maytag Corporation 1.92% due 5/01/2002 6,500,000 6,500,000 44,572,000 Nestle Capital Corporation 1.82% due 5/01/2002 44,572,000 44,572,000 895,000 Monsanto Group 1.90% due 5/06/2002 894,764 894,764 10,276,000 Procter & Gamble Company 1.74% due 5/06/2002 10,273,517 10,273,517 2,656,000 Toyota Motor Credit Corporation 1.71% due 5/06/2002 2,655,369 2,655,369 20,360,000 Kraft Foods Inc. 1.71% due 5/07/2002 20,354,197 20,354,197 25,000,000 Philip Morris Capital Corporation 1 3/4% due 5/07/2002 24,992,708 24,992,708 20,000,000 Kraft Foods Inc. 1.73% due 5/08/2002 19,993,272 19,993,272 10,716,000 General Electric Capital Corporation 1.73% due 5/09/2002 10,711,880 10,711,880 7,400,000 Pearson Holdings Inc. 2% due 5/09/2002 7,396,711 7,396,711 -------------- -------------- Total Short-Term Investments 148,344,418 148,344,418 -------------- -------------- Total Investments (99.75%) $1,668,318,335* 1,947,506,670** -------------- -------------- Other assets in excess of liabilities (0.25%) 4,916,708 -------------- Net assets (100.00%) $1,952,423,378 -------------- --------------
--------- * At April 30, 2002 cost is substantially identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at April 30, 2002, based on cost for federal income tax purposes, were $398,377,966 and $119,189,631, respectively (net appreciation was $279,188,335). 20 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
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 ZAR -- South African Rand (4) Agriculture (15) Services GBP -- Pound Sterling (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 six months ended April 30, 2002.
------------------------------------------------------------------------------------------------ Purchases Sales --------------------- --------------------- Realized Dividend Affiliate Shares Cost Shares Cost Gain/Loss Income ------------------------------------------------------------------------------------------------ Allen Organ Company, Class `B'........... -- -- -- -- -- $ 51,660 City e-Solutions Limited............. -- -- -- -- -- -- Corporacion Financiera Alba SA............. 830,000 $16,963,630 -- -- -- 85,201 East Texas Financial Services, Inc....... -- -- -- -- -- 11,475 Lindt & Sprungli AG PC.................. -- -- -- -- -- 54,177 Nam Yang Dairy Products............ 13,500 4,419,018 -- -- -- 29,209 NSC Groupe........... -- -- -- -- -- 157,005 Rayonier Inc......... -- -- 100,000 $4,698,419 $831,597 1,386,000 Robertet SA C.I...... 336 18,823 -- -- -- -- Sabeton SA........... -- -- -- -- -- 36,633 Shaw Brothers (Hong Kong) Limited....... -- -- -- -- -- 277,639 Shoei Company, Limited............. -- -- -- -- -- 54,677 Societe Sucriere de Pithiviers-le-Vieil.. -- -- -- -- -- 228,257 ------------------------------------------------------------------------------------------------
(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. 21 FIRST EAGLE SOGEN OVERSEAS FUND FUND OVERVIEW APRIL 30, 2002 (UNAUDITED) 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 APRIL 30, 2002
SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (8-31-93) First Eagle SoGen Overseas Fund (A Shares). 7.06% 10.27% 11.49% MSCI EAFE Index.................................... (13.88%) 1.34% 3.31% Consumer Price Index............................... 1.53% 2.31% 2.50%
Growth of a $10,000 Initial Investment
First Eagle MSCI Consumer SoGen Overseas Fund EAFE Index Price Index ------------------- ---------- ----------- 8/31/93 10,000 10,000 10,000 10,055 10,076 10,055 11,289 10,637 10,159 11,685 11,093 10,317 11,590 11,231 10,483 12,338 11,052 10,607 13,938 12,512 10,780 14,129 12,209 10,925 15,172 12,401 11,049 15,313 12,775 11,153 16,849 14,745 11,215 14,733 14,007 11,311 17,206 16,147 11,470 19,095 17,233 11,601 20,083 18,390 11,822 20,790 16,734 12,001 22,798 15,376 12,202 4/30/02 25,692 13,256 12,388
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% for periods prior to March 1, 2000 and of 5.00% thereafter. The MSCI EAFE Index returns assume reinvestment of dividends. This is a widely followed index of an unmanaged group of stocks from 21 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 Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 3.95% Buderus AG (German manufacturer of heating systems) 3.45% Shimano Inc. (Japanese manufacturer of bicycle parts) 3.34% Freeport McMoRan Copper & Gold Inc. (B,C & D) (U.S. mining company) 3.10% Kuehne & Nagel International AG (Swiss freight company) 2.85% Industrias Penoles, S.A. de C.V. (Mexican producer of silver) 2.69% Shaw Brothers (Hong Kong) Limited (Chinese holding company with a large stake in media) 2.46% EnCana Corp. (Canadian energy company) 2.28% Carter Holt Harvey Limited (New Zealand forest products company) 2.14% Eurazeo (French financial holding company) 2.09% ASSET ALLOCATION Foreign Stocks 86.71% Foreign Currency Bonds 2.71% U.S. Dollar Bonds 0.90% U.S. Dollar Cash and Equivalents 9.68% TOP 5 COUNTRIES Japan 18.21% France 8.81% Germany 7.45% Switzerland 6.99% United Kingdom 5.42%
The Fund's portfolio composition is subject to change at any time. 22 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) ---------------------------------------------------------------------------- Common and Preferred Stocks (86.71%) Argentina (0.16%) 50,000 Siderca S.A.I.C. ADR (2) $ 318,288 $ 805,000 70,000 Cresud S.A.C.I.F. y A. ADR (a)(4) 682,545 433,930 ------------ ------------ 1,000,833 1,238,930 ------------ ------------ Australia and New Zealand (5.56%) 20,000,000 Carter Holt Harvey Limited (3) 19,643,548 16,113,600 425,000 Newmont Mining Corporation Holding Company (23) 6,511,657 12,116,750 1,500,000 Independent News and Media Limited exchangeable preference shares (15) 7,716,051 5,740,470 1,750,000 Spotless Group Limited (16) 4,156,715 4,446,358 4,000,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (18) 2,946,655 1,801,142 5,750,000 Tasman Farms (4) 1,054,354 1,261,113 1,500,000 Evergreen Forests Limited (a)(3) 571,553 375,984 ------------ ------------ 42,600,533 41,855,417 ------------ ------------ Austria (3.48%) 185,000 Brau-Union AG (12) 7,214,363 10,131,074 255,000 Flughafen Wien AG (9) 8,413,067 8,217,897 135,000 BBAG Oesterreichische Brau- Beteiligungs AG (12) 5,108,712 7,812,447 ------------ ------------ 20,736,142 26,161,418 ------------ ------------ Belgium (1.61%) 665,000 Deceuninck (6) 10,056,338 12,141,031 ------------ ------------ Canada (2.89%) 545,000 EnCana Corporation (2) 13,369,238 17,140,250 400,000 Repadre Capital Corporation (a)(1) 1,601,632 1,847,351 75,000 Canadian Pacific Railway Limited (9) 594,538 1,563,750 35,000 Fairmont Hotels & Resorts Inc. (18) 311,230 997,500 45,000 Norske Skog Canada Limited (3) 251,768 206,679 ------------ ------------ 16,128,406 21,755,530 ------------ ------------ Chile (0.45%) 600,000 Quinenco S.A. ADR (19) 4,253,445 3,366,000 ------------ ------------
23 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Commonwealth of Independent States (0.57%) 352,296 Firebird Fund, L.P. (b)(e)(21) $ 353,178 $ 2,393,780 4,949 Firebird Republic Fund, Ltd. Class `A' (b)(e)(21) 719,082 802,755 100,000 First NIS Regional Fund SICAF (21) 1,000,000 647,500 9,000 Baltic Republic Fund (b)(21) 275,750 450,000 ------------ ------------ 2,348,010 4,294,035 ------------ ------------ Denmark (0.26%) 45,000 Carlsberg A/S `B'(12) 1,773,476 1,965,173 ------------ ------------ France (7.73%) 295,000 Eurazeo (21) 14,517,069 15,729,825 22,187 Societe Sucriere de Pithiviers-le-Vieil (4) 7,733,330 8,792,886 75,000 Robertet SA (12) 4,212,564 6,653,921 51,071 Robertet SA C.I. (a)(c)(12) 2,129,713 2,897,978 85,000 Sagem ADP (10) 2,614,712 3,674,090 75,000 Societe BIC SA (12) 2,720,331 2,931,778 1,350,000 FINEL (a)(b)(e)(3) 2,277,010 2,291,169 30,000 Crometal SA (7) 1,707,427 2,188,701 23,500 NSC Groupe (7) 4,098,208 2,180,144 21,237 Taittinger C.I. (a)(19) 1,097,423 2,046,714 55,000 Carbone Lorraine SA (10) 1,769,329 1,907,232 57,750 Conflandey (c)(1) 1,892,773 1,559,943 25,000 Schneider Electric SA (10) 512,676 1,205,812 95,000 Sabeton SA (19) 1,404,739 980,592 15,000 Rougier SA (3) 904,226 863,996 28,800 Laurent-Perrier (12) 680,896 744,483 12,000 Gaumont SA (a)(15) 525,233 531,773 10,000 Burelle SA (5) 443,781 495,385 15,000 Societe Francaise des Papiers Peints (a)(c)(12) 741,390 342,694 217 Societe Vermandoise de Sucreries (4) 163,560 177,861 ------------ ------------ 52,146,390 58,196,977 ------------ ------------ Germany (7.45%) 1,085,000 Buderus AG (7) 17,130,587 25,946,240 205,000 Hornbach Holding AG Pfd. (13) 10,554,063 11,207,860 265,000 Merck KGaA (14) 7,862,554 7,828,884 255,000 Vossloh AG (6) 4,712,773 5,489,316
24 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Germany -- (continued) 145,000 Bayer AG (8) $ 4,310,358 $ 4,773,485 15,000 Axel Springer Verlag AG (15) 575,364 810,765 ------------ ------------ 45,145,699 56,056,550 ------------ ------------ Hong Kong (3.28%) 16,067,500 Shaw Brothers (Hong Kong) Limited (15) 15,227,458 18,541,562 5,000,000 Cafe de Coral Holdings Limited (19) 1,888,912 3,558,103 11,250,000 City e-Solutions Limited (a)(16) 336,425 908,759 5,000,000 Lerado Group Holding Company Limited (12) 696,702 839,840 5,000,000 China-Hong Kong Photo Products Holdings Limited (12) 432,544 448,770 500,000 Varitronix International Limited (10) 207,138 378,249 ------------ ------------ 18,789,179 24,675,283 ------------ ------------ India (0.02%) 10,000 The Spartek Emerging Opportunities of India Fund (b)(e)(21) 1,035,000 169,700 ------------ ------------ Ireland (0.60%) 3,750,000 Waterford Wedgwood plc (12) 2,683,014 2,431,890 700,000 Greencore Group (12) 1,891,072 2,061,702 ------------ ------------ 4,574,086 4,493,592 ------------ ------------ Israel (0.03%) 70,000 Super-Sol (13) 129,090 236,241 ------------ ------------ Italy (0.97%) 850,000 Gewiss S.p.A (10) 2,747,133 3,376,274 500,000 Italcementi S.p.A. (6) 2,475,857 2,512,953 65,000 Italmobiliare S.p.A. (6) 1,377,367 1,398,652 ------------ ------------ 6,600,357 7,287,879 ------------ ------------ Japan (18.21%) 1,895,000 Shimano Inc. (12) 27,126,199 25,153,694 265,000 Secom Company, Limited (16) 12,779,900 13,023,328 2,900,000 Nipponkoa Insurance Company, Limited (17) 10,824,191 10,756,610
25 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Japan -- (continued) 295,000 Ono Pharmaceutical Company, Limited (14) $ 10,449,573 $ 9,634,526 575,000 Shoei Company, Limited (19) 5,306,665 6,138,997 385,000 Nitto Kohki Company, Limited (7) 4,733,693 5,748,056 385,000 Mandom Corporation (12) 4,321,603 5,451,672 415,000 Chofu Seisakusho Company, Limited (7) 5,899,050 4,995,490 1,000,000 Mitsui Sumitomo Insurance Company, Limited (17) 5,721,242 4,914,463 2,350,000 Aioi Insurance Company, Limited (17) 6,620,459 4,349,145 955,400 Tachi-S Company, Limited (5) 8,141,244 4,167,802 1,625,000 Okumura Corporation (16) 6,910,452 4,119,362 1,325,000 Aida Engineering, Limited (7) 6,312,365 3,770,995 64,040 ASAHI Broadcasting Corporation (15) 4,623,344 3,719,897 500,000 Wacoal Corporation (12) 4,301,493 3,639,191 550,000 Makita Corporation (12) 4,524,833 3,609,642 315,000 T. Hasegawa Company, Limited (12) 2,356,643 3,453,733 749,730 Sotoh Company, Limited (12) 6,288,832 3,439,663 155,000 SK Kaken Company Limited (8) 2,726,925 3,362,753 650,000 Kokusai Securities Company, Limited (17) 4,355,715 3,285,381 475,300 Yomeishu Seizo Company, Limited (12) 3,012,626 2,964,157 325,000 Sonton Food Industry Company, Limited (12) 3,298,777 2,122,862 1,000,000 Iino Kaiun Kaisha, Limited (9) 2,094,108 1,516,330 109,500 Toho Company, Limited (12) 1,225,305 1,249,969 35,000 Fuji Photo Film Company, Limited (12) 829,092 1,110,420 200,000 Nisshinbo Industries, Inc. (20) 827,654 808,709 7,000 Hitachi Ltd. ADR (10) 520,105 526,120 ------------ ------------ 156,132,088 137,032,967 ------------ ------------ Mexico (2.83%) 10,550,000 Industrias Penoles, S.A. de C.V. (1) 19,877,372 20,219,336 500,000 Grupo Industrial Saltillo, S.A. de C.V. (5) 1,469,358 1,083,369 ------------ ------------ 21,346,730 21,302,705 ------------ ------------
26 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Netherlands (2.06%) 205,000 OPG Groep NV (14) $ 4,999,299 $ 8,399,433 225,000 Holdingmaatschappij de Telegraaf NV (15) 3,887,240 4,671,255 100,000 Randstad Holding NV (16) 971,512 1,387,078 50,000 Koninklijke Grolsch NV (12) 1,051,362 1,029,050 ------------ ------------ 10,909,413 15,486,816 ------------ ------------ Singapore and Malaysia (1.21%) 14,250,000 Del Monte Pacific Limited (12) 3,266,695 3,417,643 1,000,000 Haw Par Corporation Limited (19) 1,572,498 2,381,806 495,000 Fraser & Neave Limited (19) 1,708,879 2,074,156 850,000 Delgro Corporation Limited (19) 357,119 1,213,784 ------------ ------------ 6,905,191 9,087,389 ------------ ------------ South Korea (4.93%) 15,650 Lotte Confectionery Company, Limited (12) 2,665,055 7,891,777 545,155 Daeduck Electronics Company, Limited (10) 3,940,430 6,301,636 519,750 Daeduck GDS Company, Limited (10) 2,689,780 5,967,649 17,250 Nam Yang Dairy Products (12) 3,112,218 6,155,935 28,850 Nam Yang Dairy Products Pfd. (12) 479,094 4,196,567 575,000 Fursys Incorporated (12) 2,110,908 4,282,389 650,000 Dong Ah Tire & Rubber Company, Limited (5) 3,209,245 2,319,628 ------------ ------------ 18,206,730 37,115,581 ------------ ------------ Spain and Portugal (5.52%) 1,525,000 Corporacion Financiera Alba SA (19) 33,856,064 29,710,265 1,135,000 Energia e Industrias Aragonesas EIA, SA (8) 5,379,852 6,021,315 335,000 Espirito Santo Financial Group SA ADR (17) 5,668,009 5,795,500 ------------ ------------ 44,903,925 41,527,080 ------------ ------------ Sweden (0.20%) 925,000 Gorthon Lines AB `B' (9) 2,761,593 1,530,339 ------------ ------------
27 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Switzerland (6.99%) 305,000 Kuehne & Nagel International AG (9) $ 12,527,005 $ 21,466,938 3,850 Pargesa Holding AG (17) 8,397,446 8,243,378 9,250 Hilti AG (12) 6,175,622 6,910,230 17,500 Edipresse SA (15) 3,562,244 6,061,308 22,500 Sika Finanz AG (6) 4,798,810 5,487,127 3,250 Lindt & Sprungli AG PC (12) 960,751 1,966,414 3,000 Societe Generale d'Affichage (15) 831,962 1,259,492 5,000 PubliGroupe SA (15) 724,745 1,257,949 ------------ ------------ 37,978,585 52,652,836 ------------ ------------ Thailand (0.15%) 211,600 The Oriental Hotel Public Company Limited (18) 905,157 1,105,830 ------------ ------------ United Kingdom (5.42%) 1,500,000 Spirax-Sarco Engineering plc (7) 8,655,353 9,949,485 2,275,000 IMI plc (20) 8,244,877 9,916,320 6,150,000 Enodis plc (a)(7) 7,777,709 8,248,232 875,000 Millennium & Copthorne Hotel plc (18) 2,916,908 4,847,185 3,000,000 McBride plc (12) 4,281,506 2,492,838 805,000 J.Z. Equity Partners plc (21) 1,610,586 1,851,242 200,000 Antofagasta Holdings plc (20) 548,939 1,686,675 8,000,000 Royal Doulton plc (a)(c)(12) 4,800,998 1,107,928 500,000 Aggregate Industries plc (6) 194,906 681,521 ------------ ------------ 39,031,782 40,781,426 ------------ ------------ Miscellaneous (4.13%) 945,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a)(23) 14,202,358 16,783,200 294,300 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (a)(d)(23) 4,218,150 6,577,605 340,000 Security Capital European Realty (a)(e)(18) 6,800,000 6,643,600 5,000 M.J. Whitman Global Value L.P. (b)(e)(21) 500,000 678,200 35,000 InterTAN, Inc. (a)(13) 301,950 425,250 ------------ ------------ 26,022,458 31,107,855 ------------ ------------ Total Common and Preferred Stocks 592,420,636 652,624,580 ------------ ------------
28 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds (3.61%) U.S. Dollar Convertible Bond (0.01%) $ 2,000,000 Medya International Ltd. 10% due 6/28/2049 (a)(e)(f)(15) $ 1,987,057 $ 20,000 ------------ ------------ U.S. Dollar Bonds and Notes (0.89%) 2,456,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (a)(f)(3) 1,868,854 546,460 1,000,000 United Mexican States 9 7/8% due 2/01/2010 (22) 1,107,500 1,150,800 1,000,000 Grupo Televisa S.A. 8% due 9/13/2011 (15) 977,045 1,010,000 4,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(17) 2,598,153 4,000,000 ------------ ------------ 6,551,552 6,707,260 ------------ ------------ Non U.S. Dollar Convertible Bonds (0.13%) NZD 1,775,277 Evergreen Forest Limited 0% due 3/19/2009 (a)(3) 943,678 985,321 ------------ ------------ Non U.S. Dollar Bonds and Notes (2.58%) AUD 1,500,000 Queensland Treasury Corporation 8% due 9/14/2007 (22) 855,687 880,189 CAD 3,500,000 Shaw Communications Inc. 7.4% due 10/17/2007 (15) 2,227,213 2,233,825 EUR 1,500,000 Sola International Inc. 11% due 3/15/2008 (14) 1,428,198 1,445,624 EUR 9,188,256 Republic of France O.A.T. 3% due 7/25/2009 (22) 7,871,361 8,107,862 EUR 15,000,000 Republic of South Africa 13% due 8/31/2010 (22) 1,198,213 1,477,245 EUR 1,500,000 The Manitowoc Company, Inc. 10 3/8% due 5/15/2011 (b)(7) 1,341,618 1,459,134 GBP 2,535,000 Enodis plc 10 3/8% due 4/15/2012 (b)(7) 3,712,489 3,824,866 ------------ ------------ 18,634,779 19,428,745 ------------ ------------ Total Bonds, Notes and Convertible Bonds 28,117,066 27,141,326 ------------ ------------ Short-Term Investments (9.10%) 9,700,000 American Express Credit Corporation 1.8% due 5/01/2002 9,700,000 9,700,000 34,870,000 Nestle Capital Corporation 1.82% due 5/01/2002 34,870,000 34,870,000 18,522,000 Monsanto Group 1.9% due 5/06/2002 18,517,112 18,517,112 3,676,000 Motorola Credit Corporation 2.05% due 5/06/2002 3,674,953 3,674,953
29 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Short-Term Investments -- (continued) $1,714,000 Pearson Holdings Inc. 1.95% due 5/07/2002 $ 1,713,443 $ 1,713,443 ------------ ------------ Total Short-Term Investments 68,475,508 68,475,508 ------------ ------------ Total Investments (99.42%) $689,013,210* 748,241,414** ------------ ------------ Other assets in excess of liabilities (0.58%) 4,368,943 ------------ Net Assets (100.00%) $752,610,357 ------------ ------------
--------- * At April 30, 2002 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at April 30, 2002 were $112,188,560 and $52,960,356, respectively (net appreciation was $59,228,204).
Foreign Currencies Industry Classifications ------------------ ------------------------ NZD -- New Zealand Dollar (1) Metals and Minerals (13) Retail AUD -- Australian Dollar (2) Energy (14) Health Care CAD -- Canadian Dollar (3) Paper and Forest Products (15) Media EUR -- Euro (4) Agriculture (16) Services GBP -- Pound Sterling (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. (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 six months ended April 30, 2002.
------------------------------------------------------------------------------------------ Purchases Sales ---------------------- ---------------- Realized Dividend Affiliate Shares Cost Shares Cost Gain/Loss Income ------------------------------------------------------------------------------------------ Conflandey............ 34,250 $ 607,824 -- -- -- $ 7,758 Robertet SA C.I....... 15,571 845,022 -- -- -- -- Royal Doulton plc 'D'.................. 6,000,000 687,360 -- -- -- -- Societe Francaise des Papiers Peints....... -- -- -- -- -- 3,995 ------------------------------------------------------------------------------------------
'D' 3 for 1 rights issue/offering, ex-date March 18, 2002; subscribed to 6,000,000 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. 30 FIRST EAGLE U.S. VALUE FUND FUND OVERVIEW APRIL 30, 2002 (UNAUDITED) 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 consists 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 APRIL 30, 2002
SINCE INCEPTION --------- (9-04-01) First Eagle U.S. Value Fund (A Shares) without sales load........................................ 21.40% with sales load (maximum of 5.00%)........................ 15.06% Russell 2000 Index.......................................... 10.33%
Performance is historical and is not indicative of future results. The Russell 2000 Index, produced by the Frank Russell Company, is a subset of the Russell 3000 Index 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 McDonald's Corporation (restaurant franchise) 4.07% J.Z. Equity Partners plc (investment trust company) 3.30% Energizer Holdings, Inc. (battery manufacturer) 2.97% Security Capital Group, Inc. Class `B' (real estate operating and investment company) 2.95% Newmont Mining Corporation (mining company) 2.83% Rayonier Inc. (forest products company) 2.80% Columbus McKinnon Corporation (material handling products) 2.71% Freeport McMoRan Copper & Gold Inc. (mining company) 2.54% Blount International Inc. (industrial and power equipment) 2.46% Tyco International Limited (industrial conglomerate) 2.29% ASSET ALLOCATION U.S. Stocks 63.45% U.S. Dollar Bonds and Notes 15.21% Foreign Stocks 4.50% Foreign Currency Bonds 0.92% U.S. Dollar Cash and Equivalents 15.92% TOP 5 SECTORS Retail 10.83% Consumer Products 8.22% Capital Goods 7.78% Precious Metals 5.38% Energy 4.87%
The Fund's portfolio composition is subject to change at any time. 31 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (63.45%) Capital Goods (7.78%) 105,850 Columbus McKinnon Corporation $ 995,392 $ 1,418,517 65,000 Tyco International Limited 1,684,600 1,199,250 20,000 Franklin Electric Company, Inc. 790,265 1,012,000 10,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 389,642 442,500 ----------- ----------- 3,859,899 4,072,267 ----------- ----------- Chemicals (0.71%) 307,900 Ethyl Corporation (a) 349,345 372,559 ----------- ----------- Consumer Products (8.22%) 65,000 Energizer Holdings, Inc. (a) 1,204,590 1,553,500 18,000 Philip Morris Companies, Inc. 877,898 979,740 22,000 Dole Food Company, Inc. 494,886 731,940 18,500 Weyco Group, Inc. 557,855 572,113 10,000 Furniture Brands International (a) 197,551 408,300 2,252 Jostens, Inc., Class `A' (a) 21,837 37,158 600 St. John Knits International Inc. (a) 18,600 21,300 ----------- ----------- 3,373,217 4,304,051 ----------- ----------- Energy (4.87%) 10,000 Murphy Oil Corporation 775,200 943,500 35,000 CONSOL Energy, Inc. 904,695 804,650 18,000 Burlington Resources, Inc. 684,593 799,740 ----------- ----------- 2,364,488 2,547,890 ----------- ----------- Financial Company (2.11%) 15 Berkshire Hathaway Inc., Class `A' (a) 1,021,716 1,101,750 ----------- ----------- Forest Products (4.16%) 25,000 Rayonier Inc. 1,073,952 1,466,750 20,000 Greif Bros. Corporation, Class `A' 568,990 710,400 ----------- ----------- 1,642,942 2,177,150 ----------- ----------- Health Care (1.89%) 25,000 DENTSPLY International, Inc. 747,925 991,750 ----------- ----------- Media (2.46%) 55,000 General Motors Corporation -- Class `H' (a) 724,503 823,900 15,000 The Interpublic Group of Companies, Inc. 295,760 463,200 ----------- ----------- 1,020,263 1,287,100 ----------- -----------
32 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (continued) Precious Metals (5.38%) 52,000 Newmont Mining Corporation Holding Company $ 950,423 $ 1,482,520 75,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a) 1,005,622 1,332,000 ----------- ----------- 1,956,045 2,814,520 ----------- ----------- Real Estate (2.95%) 60,000 Security Capital Group, Inc. Class `B' (a) 1,184,125 1,543,800 ----------- ----------- Retail (10.83%) 75,000 McDonald's Corporation 2,116,306 2,130,000 25,000 The Sherwin-Williams Company 564,886 768,250 40,000 Hancock Fabrics, Inc. 310,256 727,600 15,000 Costco Wholesale Corporation (a) 530,440 603,000 14,000 Tiffany & Company 296,753 556,500 15,000 Papa John's International Inc. (a) 389,700 466,500 12,000 The May Department Stores Company 353,648 416,160 ----------- ----------- 4,561,989 5,668,010 ----------- ----------- Services (3.35%) 30,000 Chemed Corporation 867,891 1,152,000 15,000 Manpower Inc. 386,114 603,750 ----------- ----------- 1,254,005 1,755,750 ----------- ----------- Technology (3.67%) 140,000 Earthlink, Inc. (a) 1,388,850 1,019,200 8,000 Zebra Technologies Corporation, Class `A' (a) 383,820 453,360 35,000 American Power Conversion Corporation (a) 424,490 449,750 ----------- ----------- 2,197,160 1,922,310 ----------- ----------- Telecommunications (1.31%) 8,000 Telephone & Data Systems, Inc. 741,098 688,000 ----------- ----------- Transportation (0.95%) 18,000 Burlington Northern Santa Fe Corporation 481,634 494,820 ----------- ----------- Utilities (2.81%) 25,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. 1,001,563 984,500 7,000 IDACORP, Inc. 264,921 264,880 65,000 Touch America Holdings Inc. (a) 421,918 220,350 ----------- ----------- 1,688,402 1,469,730 ----------- -----------
33 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited) --------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common Stock -- Non U.S. (4.50%) Canada (1.20%) 20,000 EnCana Corporation (2) $ 549,956 $ 629,000 ----------- ----------- United Kingdom (3.30%) 750,000 J.Z. Equity Partners plc (10) 1,499,247 1,724,760 ----------- ----------- Total Common and Preferred Stocks 30,493,456 35,565,217 ----------- -----------
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Bonds and Notes (16.13%) U.S. Dollar Bonds and Notes (15.21%) $ 670,000 Blount International Inc. 7% due 6/15/2005 (6) 570,440 597,137 1,000,000 Blount International Inc. 13% due 8/01/2009 (6) 495,271 690,000 550,000 Columbus McKinnon Corporation 8 1/2% due 4/01/2008 (6) 515,203 533,500 1,500,000 Level 3 Communications 9 1/8% due 5/01/2008 (4) 627,379 667,500 250,000 Crescent Real Estate Equities Company 9 1/4% due 4/15/2009 (9) 250,000 256,738 500,000 American Standard Inc. 8 1/4% due 6/01/2009 (5) 530,000 525,000 500,000 Jostens Inc. 12 3/4% due 5/01/2010 (7) 558,375 562,500 995,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 (b)(6) 1,130,323 1,129,325 1,000,000 Briggs & Stratton Corporation 8 1/2% due 3/15/2011 (7) 1,062,000 1,050,000 850,000 Steinway Musical Instruments 8 3/4% due 4/15/2011 (7) 859,750 862,750 550,000 Potlatch Corporation 10% due 7/15/2011 (3) 592,063 596,750 600,000 Bausch and Lomb Inc. 7 1/8% due 8/01/2028 (8) 503,089 493,200 ----------- ----------- 7,693,893 7,964,400 ----------- ----------- Non U.S. Dollar Bond (0.92%) EUR 500,000 Sola International Inc. 11% due 3/15/2008 (8) 474,342 481,874 ----------- ----------- Total Bonds and Notes 8,168,235 8,446,274 ----------- -----------
34 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Short-Term Investments (15.90%) $ 2,500,000 Maytag Corporation 1.92% due 5/01/2002 $ 2,500,000 $ 2,500,000 2,500,000 Nestle Capital Corporation 1.82% due 5/01/2002 2,500,000 2,500,000 2,000,000 Kraft Foods Inc. 1.71% due 5/06/2002 1,999,525 1,999,525 1,324,000 Motorola Credit Corporation 2.05% due 5/06/2002 1,323,623 1,323,623 ----------- ----------- Total Short-Term Investments 8,323,148 8,323,148 ----------- ----------- Total Investments (99.98%) $46,984,839* 52,334,639** ----------- ----------- Other assets in excess of liabilities (0.02%) 10,098 ----------- Net assets (100.00%) $52,344,737 ----------- -----------
--------- * At April 30, 2002 cost is substantially identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at April 30, 2002, based on cost for federal income tax purposes, were $6,604,500 and $1,254,700, respectively (net appreciation was $5,349,800). Foreign Currency Industry Classifications ---------------- ------------------------ EUR -- Euro (1) Metals & Minerals (2) Energy (3) Forest Products (4) Telecommunications (5) Building Materials (6) Capital Goods (7) Consumer Products (8) Health Care (9) Real Estate (10) Investment Companies --------- (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. --------- See Notes to Financial Statements. 35 FIRST EAGLE SOGEN GOLD FUND FUND OVERVIEW APRIL 30, 2002 (UNAUDITED) 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 APRIL 30, 2002
SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (8-31-93) First Eagle SoGen Gold Fund........................ 83.56% 3.26% 2.69% Financial Times Gold Mines Index................... 64.90% (3.34%) (4.70%) Consumer Price Index............................... 1.53% 2.31% 2.50%
Growth of a $10,000 Initial Investment
Consumer Financial Times First Eagle Price Index Gold Mines Index SoGen Gold Fund ----------- ---------------- --------------- 8/31/93 10,000 10,000 10,000 10,055 10,494 10,055 10,159 10,086 10,652 10,317 11,467 11,733 10,483 10,262 11,062 10,607 9,164 10,984 10,780 12,375 12,456 10,925 9,987 11,746 11,049 7,811 10,339 11,153 6,604 8,990 11,215 6,906 8,793 11,311 5,920 7,314 11,470 5,414 6,892 11,601 5,211 7,304 11,822 4,023 5,813 12,001 3,150 5,214 12,202 3,996 6,527 4/30/02 12,388 6,590 12,613
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% for periods prior to March 1, 2000 and of 5.00% thereafter. The Financial Times Gold Mines Index is an unmanaged index composed of 32 gold mining companies and is not available for purchase. The Financial Times Gold Mines Index is only available without dividends reinvested. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households. TOP 10 HOLDINGS Newmont Mining Corporation (United States) 10.01% Gold Fields Limited ADR (South Africa) 7.41% Harmony Gold Mining Company Limited (South Africa) 6.36% Repadre Capital Corporation (Canada) 5.17% Freeport McMoRan Copper & Gold Inc. (B,C & D) (United States) 4.81% Kinross Gold Corporation (Canada) 4.73% Goldcorp Inc. (Canada) 4.69% Placer Dome Inc. (Canada) 4.49% TVX Gold Inc. (United States) 4.05% Industrias Penoles, S.A. de C.V. (Mexico) 4.01% ASSET ALLOCATION Foreign Stocks 68.78% U.S. Stocks 16.35% U.S. Dollar Structured Notes 3.97% Foreign Currency Bonds 2.98% U.S. Dollar Cash and Equivalents 7.92% TOP 5 COUNTRIES Canada 47.57% United States 31.37% South Africa 18.08% Mexico 4.01% Australia 1.92%
The Fund's portfolio composition is subject to change at any time. 36 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks (85.13%) Australia (1.92%) 95,000 Normandy NFM Limited $ 1,261,758 $ 728,724 ----------- ----------- Canada (44.59%) 425,000 Repadre Capital Corporation (a) 1,093,657 1,962,811 100,000 Goldcorp Inc. 270,622 1,781,010 145,000 Placer Dome Inc. 1,694,290 1,703,750 1,875,000 TVX Gold Inc. (a) 936,603 1,537,151 100,000 Meridian Gold Inc. (a) 675,296 1,511,179 235,000 Glamis Gold Limited (a) 1,150,744 1,431,150 295,000 IAMGOLD Corporation 906,665 1,326,667 90,000 Agnico-Eagle Mines Limited 1,095,533 1,250,100 60,000 Barrick Gold Corporation 986,405 1,204,200 900,000 Miramar Mining Corporation (a) 734,087 826,715 275,000 Richmont Mines, Inc. (a) 558,500 808,695 395,000 Kinross Gold Corporation (a) 483,870 663,600 315,000 Golden Star Resources Limited (a)(b)(d) 176,400 456,750 160,000 International Pursuit Corporation (a) 160,000 333,440 25,000 Pan American Silver Corporation (a)(b) 86,218 142,570 ----------- ----------- 11,008,890 16,939,788 ----------- ----------- South Africa (18.08%) 232,500 Gold Fields Limited ADR 866,978 2,813,250 185,000 Harmony Gold Mining Company Limited ADR 857,914 2,415,453 30,000 AngloGold Limited ADR 596,830 804,000 12,000 Impala Platinum Holdings Limited 633,284 779,367 1,500,000 Consolidated African Mines Limited (a) 213,392 55,064 ----------- ----------- 3,168,398 6,867,134 ----------- ----------- United States (16.35%) 94,000 Newmont Mining Corporation Holding Company 2,221,791 2,679,940 375,375 Newmont Mining Corporation 332,433 1,121,457 29,500 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (c) 856,231 659,325 30,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a) 484,940 532,800 50,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (c) 978,999 505,000 4,500 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (c) 135,865 129,150 65,000 Royal Gold, Inc. 243,531 582,426 ----------- ----------- 5,253,790 6,210,098 ----------- -----------
37 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS -- (Continued) April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) --------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Miscellaneous (4.19%) 795,000 Industrias Penoles, S.A. de C.V. $ 1,392,488 $ 1,523,637 766,806 Compania Minera Arcata S.A. (a) 514,222 66,989 ----------- ----------- 1,906,710 1,590,626 ----------- ----------- Total Common and Preferred Stocks 22,599,546 32,336,370 ----------- ----------- --------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) --------------------------------------------------------------------------- Note and Convertible Bond (6.95%) U.S. Dollar Note (3.97%) $ 1,500,000 HSBC Gold Linked-Note 0% due 4/09/2003 (a)(b)(d) 1,500,000 1,507,050 ----------- ----------- Non U.S. Dollar Convertible Bond (2.98%) CAD 2,180,000 Kinross Gold Corporation 5 1/2% 12/05/2006 (a) 916,373 1,133,352 ----------- ----------- Total Note and Convertible Bond 2,416,373 2,640,402 ----------- ----------- Short-Term Investments (4.10%) 1,000,000 Maytag Inc. 1.92% due 5/01/2002 1,000,000 1,000,000 558,000 Nestle Capital Corporation 1.82% due 5/01/2002 558,000 558,000 ----------- ----------- Total Short-Term Investments 1,558,000 1,558,000 ----------- ----------- Total Investments (96.18%) $26,573,919* 36,534,772** ----------- ----------- Other assets in excess of liabilities (3.82%) 1,449,947 ----------- Net assets (100.00%) $37,984,719 ----------- -----------
--------- * At April 30, 2002 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at April 30, 2002 were $11,777,068 and $1,816,215, respectively (net appreciation was $9,960,853). Foreign Currency CAD -- Canadian Dollar (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) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (d) Security for which there are less than three market makers. --------- See Notes to Financial Statements. 38 [THIS PAGE IS INTENTIONALLY BLANK] 39 FIRST EAGLE SOGEN FUNDS, INC. STATEMENT OF ASSETS AND LIABILITIES April 30, 2002 (Unaudited)
--------------------------------------------------------------------------- First Eagle SoGen Global Fund --------------------------------------------------------------------------- Assets: Investments, at value (cost: $1,668,318,335, $689,013,210, $46,984,839 and $26,573,919 respectively) (Note 1)............................... $1,947,506,670 Cash................................................... -- Foreign cash........................................... 20,132 Receivable for forward currency contracts held, at value (Notes 1 and 6)................................ 14,528 Receivable for investment securities sold.............. 9,729,600 Receivable for Fund shares sold........................ 5,340,205 Receivable from Adviser (Note 2)....................... -- Accrued interest and dividends receivable.............. 13,260,136 Other assets........................................... 178,576 Deferred offering costs (Note 1)....................... -- -------------- Total Assets......................................... 1,976,049,847 -------------- Liabilities: Due to broker.......................................... 190,229 Payable for Fund shares redeemed....................... 500,029 Payable for investment securities purchased............ 18,754,664 Payable for forward currency contracts held, at value (Notes 1 and 6)...................................... 1,822,115 Investment advisory fees payable (Note 2).............. 1,189,880 Distribution fees payable (Note 3)..................... 407,693 Accrued expenses and other liabilities................. 761,859 -------------- Total Liabilities.................................... 23,626,469 -------------- Net Assets: Capital stock (par value, $0.001 per share)............ 73,727 Capital surplus........................................ 1,676,295,283 Net unrealized appreciation (depreciation) on: Investments.......................................... 279,188,335 Forward currency contracts........................... (1,807,587) Foreign currency related transactions................ 23,356 Undistributed net realized gains (losses) on investments.......................................... 13,012,060 Undistributed net investment (loss) income............. (14,361,796) -------------- Net Assets (Note 1).................................. $1,952,423,378 -------------- -------------- Class A share capital................................... $1,839,076,861 Shares of beneficial interest outstanding (Class A) (Note 5)............................................... 69,438,196 Net asset value per share.............................. $26.49 Maximum offering price per share....................... $27.88 Class I share capital................................... $ 65,619,029 Shares of beneficial interest outstanding (Class I) (Note 5)............................................... 2,478,892 Net asset value per share.............................. $26.47 Class C share capital................................... $ 47,727,488 Shares of beneficial interest outstanding (Class C) (Note 5)............................................... 1,809,576 Net asset value per share.............................. $26.37
--------- See Notes to Financial Statements. 40
----------------------------------------------------------- First Eagle SoGen First Eagle First Eagle Overseas U.S. SoGen Fund Value Fund Gold Fund ----------------------------------------------------------- $748,241,414 $ 52,334,639 $ 36,534,772 1,270,786 158,643 48,229 5,752 -- -- 16,257 -- -- 2,686,576 -- -- 4,513,675 278,366 2,408,377 -- 102,975 -- 3,984,635 246,480 36,592 73,038 1,391 1,895 -- 56,997 -- ------------ ------------ ------------ 760,792,133 53,179,491 39,029,865 ------------ ------------ ------------ -- -- -- 110,279 -- 265,436 5,503,397 754,822 703,775 1,640,401 -- 1,091 446,165 31,462 20,008 136,487 10,175 6,669 345,047 38,295 48,167 ------------ ------------ ------------ 8,181,776 834,754 1,045,146 ------------ ------------ ------------ 55,446 4,311 3,737 729,510,529 45,476,096 55,091,952 59,228,204 5,349,800 9,960,853 (1,624,144) -- (1,091) 29,999 122 1,103 3,459,850 1,273,701 (26,912,078) (38,049,527) 240,707 (159,757) ------------ ------------ ------------ $752,610,357 $ 52,344,737 $ 37,984,719 ------------ ------------ ------------ ------------ ------------ ------------ $600,098,448 $ 18,029,721 $ 37,984,719 44,206,141 1,484,969 3,737,066 $13.58 $12.14 $10.16 $14.29 $12.78 $10.69 $127,792,077 $ 25,795,274 -- 9,402,945 2,121,193 -- $13.59 $12.16 -- $ 24,719,832 $ 8,519,742 -- 1,836,600 704,936 -- $13.46 $12.09 --
41 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2002 (Unaudited)
----------------------------------------------------------------------------------------------- First First Eagle First Eagle Eagle First Eagle SoGen SoGen U.S. SoGen Global Fund Overseas Fund Value Fund Gold Fund ----------------------------------------------------------------------------------------------- Investment Income: Income: Interest........................... $ 18,297,757 $ 1,247,724 $ 369,487 $ 60,019 Dividends (net of $932,598, $706,290, $299 and $3,851 foreign taxes withheld, respectively)..... 10,990,251 4,793,913 154,223 108,920 ------------ ------------ ---------- ----------- Total income from operations...... 29,288,008 6,041,637 523,710 168,939 ------------ ------------ ---------- ----------- Expenses: Investment advisory fees (Note 2).......................... 6,454,330 2,194,434 145,150 74,924 Distribution fees (Note 3)......... 2,175,658 663,467 41,396 24,975 Shareholder servicing agent fees... 1,250,577 461,500 64,465 40,484 Legal fees......................... 722,824 320,930 744 14,135 Custodian fees..................... 578,048 277,565 14,340 9,417 Printing fees...................... 129,146 27,275 2,380 2,133 Audit fees......................... 71,904 35,704 18,844 22,489 Directors' fees.................... 83,309 21,720 914 596 Registration and filing fees....... 29,753 28,265 14,000 9,573 Amortization of deferred offering costs (Note 1).................... -- -- 81,338 -- Miscellaneous fees................. 73,908 18,966 2,517 1,056 ------------ ------------ ---------- ----------- Total expenses from operations.... 11,569,457 4,049,826 386,088 199,782 ------------ ------------ ---------- ----------- Expense reductions due to earnings credits (Note 1)................... (7,775) (2,565) (110) (105) Expense reimbursements (Note 2)...... -- -- (102,975) -- ------------ ------------ ---------- ----------- Net expenses from operations......... 11,561,682 4,047,261 283,003 199,677 ------------ ------------ ---------- ----------- Net investment income (loss) (Note 1)........................... 17,726,326 1,994,376 240,707 (30,738) ------------ ------------ ---------- ----------- Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Related Transactions (Notes 1 and 6): Net realized gains (losses) from: Investment transactions............ 14,851,092 466,589 1,253,477 (33,079) Foreign currency related transactions...................... 4,713,271 4,407,042 (278) (9,336) ------------ ------------ ---------- ----------- 19,564,363 4,873,631 1,253,199 (42,415) ------------ ------------ ---------- ----------- Change in unrealized appreciation (depreciation) of: Investments........................ 270,092,584 109,478,244 4,833,754 10,984,146 Foreign currency related transactions...................... (417,547) (1,384,866) 145 4,099 ------------ ------------ ---------- ----------- 269,675,037 108,093,378 4,833,899 10,988,245 ------------ ------------ ---------- ----------- Net gain on investments and foreign currency related transactions...... 289,239,400 112,967,009 6,087,098 10,945,830 ------------ ------------ ---------- ----------- Net Increase in Net Assets Resulting from Operations...................... $306,965,726 $114,961,385 $6,327,805 $10,915,092 ------------ ------------ ---------- ----------- ------------ ------------ ---------- -----------
--------- See Notes to Financial Statements. 42 [THIS PAGE IS INTENTIONALLY BLANK] 43 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------------- First Eagle SoGen Global Fund --------------------------------- For the Six Months ended April 30, 2002 Year Ended (Unaudited) October 31, 2001 --------------------------------------------------------------------------------------- Operations: Net investment income (loss)....................... $ 17,726,326 $ 37,137,132 Net realized gain (loss) from investments and foreign currency related transactions............. 19,564,363 147,137,317 Increase (decrease) in unrealized appreciation (depreciation) of investments and foreign currency related transactions.............................. 269,675,037 (37,578,878) -------------- -------------- Net increase in net assets resulting from operations...................................... 306,965,726 146,695,571 -------------- -------------- Distributions to Shareholders: Dividends paid from net investment income.......... (42,974,158) (87,440,626) Distributions paid from net realized gains from investment transactions........................... (6,140,777) (200,503,578) -------------- -------------- Decrease in net assets resulting from distributions................................... (49,114,935) (287,944,204) -------------- -------------- Fund Share Transactions (Note 5): Net proceeds from shares sold...................... 178,445,170 162,877,299 Net asset value of shares issued for reinvested dividends and distributions....................... 45,762,879 273,439,640 Cost of shares redeemed............................ (87,599,663) (366,336,312) -------------- -------------- Increase in net assets from Fund share transactions.................................... 136,608,386 69,980,627 -------------- -------------- Net increase (decrease) in net assets............. 394,459,177 (71,268,006) Net Assets (Note 1): Beginning of period................................ 1,557,964,201 1,629,232,207 -------------- -------------- End of period (including undistributed net investment (loss) income of $(14,361,796), $10,885,942, $(38,049,527), $(40,043,903), $240,707, $0, $(159,757) and $27,290, respectively.).................................... $1,952,423,378 $1,557,964,201 -------------- -------------- -------------- --------------
--------- See Notes to Financial Statements. 44
---------------------------------------------------------------------------------------------------------------- First Eagle SoGen First Eagle First Eagle SoGen Overseas Fund U.S. Value Fund Gold Fund ------------------------------------- ------------------------------------ --------------------------------- For the Six For the Six For the Six Months ended Months ended Period From Months ended April 30, 2002 Year Ended April 30, 2002 September 4, 2001 April 30, 2002 Year Ended (Unaudited) October 31, 2001 (Unaudited) to October 31, 2001 (Unaudited) October 31, 2001 ---------------------------------------------------------------------------------------------------------------- $ 1,994,376 $ 4,040,102 $ 240,707 $ (1,697) $ (30,738) $ 38,450 4,873,631 15,462,655 1,253,199 22,199 (42,415) (2,130,156) 108,093,378 (13,760,350) 4,833,899 516,023 10,988,245 5,943,390 ------------ ------------- ----------- ----------- ----------- ----------- 114,961,385 5,742,407 6,327,805 536,525 10,915,092 3,851,684 ------------ ------------- ----------- ----------- ----------- ----------- -- (21,778,190) -- -- (156,310) (444,560) -- (75,298,528) -- -- -- -- ------------ ------------- ----------- ----------- ----------- ----------- -- (97,076,718) -- -- (156,310) (444,560) ------------ ------------- ----------- ----------- ----------- ----------- 230,235,743 160,805,713 20,912,897 25,697,089 18,366,589 3,836,032 -- 92,813,118 -- -- 148,324 425,126 (68,797,536) (105,307,230) (1,116,600) (12,979) (4,702,959) (4,002,710) ------------ ------------- ----------- ----------- ----------- ----------- 161,438,207 148,311,601 19,796,297 25,684,110 13,811,954 258,448 ------------ ------------- ----------- ----------- ----------- ----------- 276,399,592 56,977,290 26,124,102 26,220,635 24,570,736 3,665,572 476,210,765 419,233,475 26,220,635 -- 13,413,983 9,748,411 ------------ ------------- ----------- ----------- ----------- ----------- $752,610,357 $ 476,210,765 $52,344,737 $26,220,635 $37,984,719 $13,413,983 ------------ ------------- ----------- ----------- ----------- ----------- ------------ ------------- ----------- ----------- ----------- -----------
45 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'). 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 -- For the Funds, 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 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. (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. 46 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) (e) Foreign currency translation -- 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 the Funds 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 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 -- In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds 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. The Funds declare and pay such income, dividends and capital gains distributions at least on an annual basis. (h) Use of estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires 47 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) 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 Holdings, Inc. ('ASB Holdings'), 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 of each Fund's daily net assets, payable monthly, as follows: First Eagle SoGen Global Fund at an annual rate of 1% of the first $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%. If necessary, the Adviser will reimburse the First Eagle U.S. Value Fund, through December 31, 2002, 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 daily net assets. For the six months ended April 30, 2002, the Adviser has agreed to pay the Fund $102,975 so that each class of the Fund could maintain the above expense ratios. Expense reimbursements are accrued daily and paid yearly. For the six months ended April 30, 2002, Arnhold and S. Bleichroeder, Inc. ('ASB'), the principal underwriter and a wholly owned subsidiary of ASB Holdings, realized $117,245, $56,529, $9,289 and $35,647 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 six months ended April 30, 2002, broker-dealer affiliates of the Adviser received $78,033, $11,970, $7,310 and $600 in broker's commissions for portfolio transactions executed on behalf of First Eagle SoGen Global Fund, First Eagle 48 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. Note 3 -- Plans of Distribution Under the terms of the Distribution Plans and Agreements ('the Plans') with ASB, pursuant to the provisions of Rule 12b-1 under the Investment Company Act of 1940, the Funds pay ASB 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 assets. Under the Plan, ASB 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. ASB bears distribution costs of a Fund to the extent they exceed payments received under the Plan. For the six months ended April 30, 2002 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 $2,175,658, $663,467, $41,396 and $24,975, respectively. Note 4 -- Purchases and Sales of Securities During the six months ended April 30, 2002 the aggregate cost of purchases of investments, excluding short-term securities, totaled $270,511,693, $192,575,176, $22,238,216 and $14,162,455 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 $176,345,403, $62,320,232, $6,074,741 and $556,798 for First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. 49 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) Note 5 -- Capital Stock Transactions in shares of capital stock were as follows:
Six months ended April 30, 2002 ----------------------------------------------------------------------------------------------------- First Eagle SoGen First Eagle SoGen First Eagle Global Fund Overseas Fund U.S. Value Fund ---------------------------------- ---------------------------------- --------------------------- Class A Class I Class C Class A Class I Class C Class A Class I Class C ---------------------------------------------------------------------------------------------------------------------------- Shares sold.......... 4,786,875 1,106,351 1,331,396 12,783,592 4,525,469 1,326,942 848,137 498,914 478,288 Shares issued for reinvested dividends and distributions... 1,920,678 54,074 13,326 -- -- -- -- -- -- Shares redeemed...... (3,369,643) (207,099) (27,703) (5,094,245) (521,677) (60,970) (87,979) (119) (8,033) ---------- --------- --------- ---------- --------- --------- ------- ------- ------- Net (decrease) increase............ 3,337,910 953,326 1,317,019 7,689,347 4,003,792 1,265,972 760,158 498,795 470,255 ---------------------------------------------------------------------------------------------------------------------------- First Eagle SoGen Gold Fund -------------------------------- Shares sold.......... 2,133,903 Shares issued for reinvested dividends and distributions... 24,928 Shares redeemed...... (595,368) --------- Net (decrease) increase............ 1,563,463 --------------------------------
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) ----------------------------------------------------------------------------------------------------------------------
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 --------------------------------------------------------------------------------------------
Note 6 -- Commitments As of April 30, 2002, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund and First Eagle SoGen Gold Fund had entered into forward currency contracts, as summarized on the following pages, resulting in net unrealized depreciation of $1,807,587, $1,624,144 and $1,091, respectively. 50 [THIS PAGE IS INTENTIONALLY BLANK] 51 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) 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 April 30, 2002 Delivered -------------------------------------------------------------------------------------- 5/02/02 505,271 Canadian Dollar $ 322,311 $ 322,630 5/02/02 48,637,064 Japanese Yen 378,204 379,695 5/02/02 351,246 Swiss Franc 216,858 216,431 5/06/02 1,101,070 Euro 991,734 994,326 ------------ ------------ 1,909,107 1,913,082 ------------ ------------ Foreign Currency Sales --------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received April 30, 2002 --------------------------------------------------------------------------------- 5/02/02 345,158 Pound Sterling 503,142 503,172 5/03/02 266,553 Euro 240,924 240,085 ------------ ------------ 744,066 743,257 ------------ ------------ PORTFOLIO HEDGES: Foreign Currency Sales --------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received April 30, 2002 --------------------------------------------------------------------------------- 8/14/02 15,858,366,000 Japanese Yen 123,810,003 123,796,741 8/14/02 223,317,000 Japanese Yen 1,743,730 1,743,932 8/21/02 66,664,000 Euro 59,050,149 59,944,775 8/21/02 722,000 Euro 630,887 647,532 9/18/02 32,003,760,000 South Korean Won 23,854,920 24,761,130 ------------ ------------ 209,089,689 210,894,110 ------------ ------------ $211,742,862 $213,550,449 ------------ ------------ ------------ ------------
52
------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 ------------------------------------- -- $ (319) -- (1,491) $ 427 -- -- (2,592) ----------- ----------- 427 (4,402) ----------- ----------- ------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 ------------------------------------- -- (30) 839 -- ----------- ----------- 839 (30) ----------- ----------- ------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 ------------------------------------- 13,262 -- -- (202) -- (894,626) -- (16,645) -- (906,210) ----------- ----------- 13,262 (1,817,683) ----------- ----------- $ 14,528 $(1,822,115) ----------- ----------- ----------- -----------
53 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) 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 April 30, 2002 Delivered ---------------------------------------------------------------------------------- 5/02/02 356,775 Australian Dollar $ 192,052 $ 192,760 5/02/02 674,576 Canadian Dollar 430,311 431,059 5/02/02 31,775,402 Japanese Yen 247,087 247,993 5/02/02 702,491 Swiss Franc 433,717 432,862 5/03/02 868,548 Euro 782,302 784,063 5/03/02 76,562 Singapore Dollar 42,212 42,398 ------------ ------------ 2,127,681 2,131,135 ------------ ------------ Foreign Currency Sales ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received April 30, 2002 ---------------------------------------------------------------------------------- 5/02/02 179,390 Pound Sterling 261,497 261,515 5/03/02 54,208 Euro 48,996 48,825 ------------ ------------ 310,493 310,340 ------------ ------------ PORTFOLIO HEDGES: Foreign Currency Sales ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received April 30, 2002 ---------------------------------------------------------------------------------- 8/14/02 11,507,933,000 Japanese Yen 89,455,027 89,867,945 8/14/02 282,698,000 Japanese Yen 2,221,690 2,206,459 8/21/02 34,354,000 Euro 30,311,691 30,869,877 8/21/02 947,000 Euro 827,403 849,868 9/18/02 25,174,140,000 South Korean Won 18,834,586 19,477,091 ------------ ------------ 141,650,397 143,271,240 ------------ ------------ 144,088,571 145,712,715 ------------ ------------ 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 April 30, 2002 Delivered ---------------------------------------------------------------------------------- 5/02/02 407,200 Canadian Dollar 259,752 260,758 5/02/02 70,350 Australian Dollar 37,869 37,954 ------------ ------------ $ 297,621 $ 298,712 ------------ ------------ ------------ ------------
54
-------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 -------------------------------------- -- $ (708) -- (748) -- (906) $ 855 -- -- (1,761) -- (186) ---------- ----------- 855 (4,309) ---------- ----------- -------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 -------------------------------------- -- (18) 171 -- ---------- ----------- 171 (18) ---------- ----------- -------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 -------------------------------------- -- (412,918) 15,231 -- -- (558,186) -- (22,465) -- (642,505) ---------- ----------- 15,231 (1,636,074) ---------- ----------- 16,257 (1,640,401) ---------- ----------- -------------------------------------- Unrealized Unrealized Appreciation at Depreciation at April 30, 2002 April 30, 2002 -------------------------------------- -- (1,006) -- (85) ---------- ----------- -- $ (1,091) ---------- ----------- -----------
55 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------ Six Months Ended April 30, 2002 (Unaudited) --------------------------------------------- Class A Class I Class C ------------------------------------------------------------------------------------------ First Eagle SoGen Global Fund SELECTED PER SHARE DATA Net asset value, beginning of period....... $22.87 $22.89 $22.68 ------ ------ ------ Income from investment operations: Net investment income..................... 0.25 0.28 0.16 Net realized and unrealized gains on investments............................. 4.09 4.08 4.07 ------ ------ ------ Total from investment operations.......... 4.34 4.36 4.23 ------ ------ ------ Less distributions: Dividends from net investment income...... (0.63) (0.69) (0.45) Distributions from capital gains.......... (0.09) (0.09) (0.09) ------ ------ ------ Total distributions....................... (0.72) (0.78) (0.54) ------ ------ ------ Net asset value, end of period.......... $26.49 $26.47 $26.37 ------ ------ ------ ------ ------ ------ Total Return'DD'........................... 19.5%# 19.6%# 19.0%# Ratios and Supplemental Data Net assets, end of year (millions)......... $1,839 $ 65 $ 48 Ratio of operating expenses to average net assets.................................... 1.3%*'D' 1.1%*'D' 2.1%*'D' Ratio of net investment income to average net assets................................ 2.1%*'D' 2.3%*'D' 1.3%*'D' Portfolio turnover rate.................... 11.1% 11.1% 11.1%
------------------------------------------------------------------------------------------------ Period from April 1, 2000 to October 31, 2000 ----------------------------------------------------- Class A Class I Class C'D'D'D' ------------------------------------------------------------------------------------------------ First Eagle SoGen Global Fund SELECTED PER SHARE DATA Net asset value, beginning of period..... $25.05 $25.07 $24.97 ------ ------ ------ Income from investment operations: Net investment income................... 0.41 0.45 0.11 Net realized and unrealized gains (losses) on investments............... 0.01 0.01 0.36 ------ ------ ------ Total from investment operations........ 0.42 0.46 0.47 ------ ------ ------ Less distributions: Dividends from net investment income.... -- -- -- Distributions from capital gains........ -- -- -- ------ ------ ------ Total distributions..................... -- -- -- ------ ------ ------ Net asset value, end of period........ $25.47 $25.53 $25.44 ------ ------ ------ ------ ------ ------ Total Return'DD'......................... 1.7%# 1.8%# 1.9%# Ratios and Supplemental Data Net assets, end of year (millions)....... $1,614 $ 14 $ 1 Ratio of operating expenses to average net assets.............................. 1.4%*'D' 1.1%*'D' 1.9%*'D' Ratio of net investment income to average net assets.............................. 2.8%*'D' 3.0%*'D' 1.1%*'D' Portfolio turnover rate.................. 11.9% 11.9% 11.9%
56
--------------------------------------- Year Ended October 31, 2001 --------------------------------------- Class A Class I Class C --------------------------------------- $25.47 $25.53 $25.44 ------ ------ ------ 0.53 0.58 0.26 1.45 1.44 1.53 ------ ------ ------ 1.98 2.02 1.79 ------ ------ ------ (1.39) (1.47) (1.36) (3.19) (3.19) (3.19) ------ ------ ------ (4.58) (4.66) (4.55) ------ ------ ------ $22.87 $22.89 $22.68 ------ ------ ------ ------ ------ ------ 9.0% 9.2% 8.1% $1,512 $ 35 $ 11 1.4%'D' 1.1%'D' 2.1%'D' 2.2%'D' 2.5%'D' 1.1%'D' 29.0% 29.0% 29.0%
---------------------------------------------------------------------------------- Year Ended March 31, ---------------------------------------------------------------------------------- 2000 1999 1998 1997 ------------------ ----------------------------- ------ ------ Class A Class I Class A Class I'D'D' ---------------------------------------------------------------------------------- $22.90 $22.90 $27.42 $24.59 $26.68 $26.09 ------ ------ ------ ------ ------ ------ 0.66 0.71 0.63 0.30 1.47 0.76 4.29 4.31 (2.73) (1.47) 2.10 1.66 ------ ------ ------ ------ ------ ------ 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) ------ ------ ------ ------ ------ ------ $25.05 $25.07 $22.90 $22.90 $27.42 $26.68 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 22.2% 22.5% (8.0%) (4.7%)# 14.4% 9.5% $1,790 $ 16 $2,063 $ 12 $4,035 $3,908 1.3% 1.1% 1.2% 1.0%* 1.2% 1.2% 2.7% 2.9% 2.8% 3.0%* 2.8% 3.1% 15.6% 15.6% 9.9% 9.9% 20.6% 12.9%
57 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
------------------------------------------------------------------------------------------ Six Months Ended April 30, 2002 (Unaudited) ---------------------------------------------- Class A Class I Class C ------------------------------------------------------------------------------------------ First Eagle SoGen Overseas Fund SELECTED PER SHARE DATA Net asset value, beginning of period...... $11.21 $11.21 $11.15 ------ ------ ------ Income from investment operations: Net investment income (loss)............. 0.04 0.06 0.01 Net realized and unrealized gains on investments............................ 2.33 2.32 2.30 ------ ------ ------ Total from investment operations......... 2.37 2.38 2.31 ------ ------ ------ Less distributions: Dividends from net investment income..... -- -- -- Distributions from capital gains......... -- -- -- ------ ------ ------ Total distributions...................... -- -- -- ------ ------ ------ Net asset value, end of period......... $13.58 $13.59 $13.46 ------ ------ ------ ------ ------ ------ Total Return'DD'.......................... 21.1%# 21.2%# 20.7%# Ratios and Supplemental Data Net assets, end of year (millions)........ $ 600 $ 128 $ 25 Ratio of operating expenses to average net assets............................... 1.4%*'D' 1.2%*'D' 2.2%*'D' Ratio of net investment income to average net assets....................... 0.6%*'D' 1.0%*'D' 0.1%*'D' Portfolio turnover rate................... 11.4% 11.4% 11.4%
----------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, 2000 --------------------------------------------------------- Class A Class I Class C'D'D'D' ----------------------------------------------------------------------------------------------------- First Eagle SoGen Overseas Fund SELECTED PER SHARE DATA Net asset value, beginning of period...... $14.41 $14.43 $14.14 ------ ------ ------ Income from investment operations: Net investment income.................... 0.19 0.21 -- Net realized and unrealized (losses) gains on investments................... (0.29) (0.30) 0.17 ------ ------ ------ Total from investment operations......... (0.10) (0.09) 0.17 ------ ------ ------ Less distributions: Dividends from net investment income..... -- -- -- Distributions from capital gains......... -- -- -- ------ ------ ------ Total distributions...................... -- -- -- ------ ------ ------ Net asset value, end of period......... $14.31 $14.34 $14.31 ------ ------ ------ ------ ------ ------ Total Return'DD'.......................... (0.7%)# (0.6%)# 1.2%# Ratios and Supplemental Data Net assets, end of year (millions)........ $ 390 $ 28 $ 1 Ratio of operating expenses to average net assets............................... 1.4%*'D' 1.2%*'D' 2.0%*'D' Ratio of net investment income to average net assets....................... 2.2%*'D' 2.5%*'D' (0.1%)*'D' Portfolio turnover rate................... 17.3% 17.3% 17.3%
58
----------------------------------------- Year Ended October 31, 2001 ----------------------------------------- Class A Class I Class C ----------------------------------------- $14.31 $14.34 $14.31 ------ ------ ------ 0.11 0.13 (0.01) 0.19 0.19 0.21 ------ ------ ------ 0.30 0.32 0.20 ------ ------ ------ (0.76) (0.81) (0.72) (2.64) (2.64) (2.64) ------ ------ ------ (3.40) (3.45) (3.36) ------ ------ ------ $11.21 $11.21 $11.15 ------ ------ ------ ------ ------ ------ 2.0% 2.2% 1.2% $ 409 $ 61 $ 6 1.5%'D' 1.3%'D' 2.3%'D' 0.9%'D' 1.1%'D' (0.1%)'D' 17.3% 17.3% 17.3%
Year Ended March 31, -------------------------------------------------------------------- 2000 1999 1998 1997 --------------- ---------------------------- ----- ----- Class A Class I Class A Class I'D'D' -------------------------------------------------------------------- $11.36 $11.37 $13.52 $12.31 $13.84 $13.26 ------ ------ ------ ------ ------ ------ 0.28 0.31 0.15 0.41 0.88 0.61 3.59 3.59 (0.97) (1.10) 0.31 0.95 ------ ------ ------ ------ ------ ------ 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) ------ ------ ------ ------ ------ ------ $14.41 $14.43 $11.36 $11.37 $13.52 $13.84 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 34.5% 34.8% (6.5%) (5.5%)# 10.0% 12.2% $ 450 $ 27 $ 453 $ 3 $1,007 $ 953 1.3% 1.2% 1.3% 1.0%* 1.2% 1.3% 2.1% 2.1% 2.2% 2.0%* 2.2% 2.3% 26.6% 26.6% 9.3% 9.3% 22.1% 15.2%
59 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
-------------------------------------------------------------------------------------------- Six Months Ended April 30, 2002 (Unaudited) ------------------------------------------- Class A Class I Class C -------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund SELECTED PER SHARE DATA Net asset value, beginning of period........... $10.16 $10.16 $10.14 ------ ------ ------ Income from investment operations: Net investment income (loss).................. 0.07 0.08 0.03 Net realized and unrealized gains on investments................................. 1.91 1.92 1.92 ------ ------ ------ Total from investment operations............... 1.98 2.00 1.95 ------ ------ ------ Less distributions: Dividends from net investment income.......... -- -- -- Distributions from capital gains.............. -- -- -- ------ ------ ------ Total distributions........................... -- -- -- ------ ------ ------ Net asset value, end of period................ $12.14 $12.16 $12.09 ------ ------ ------ ------ ------ ------ Total Return'DD'............................... 19.5%# 19.7%# 19.2%# Ratios and Supplemental Data Net assets, end of year (millions)............. $ 18 $ 26 $ 8 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........................................ 1.2%*'D' 1.5%*'D' 0.5%*'D' Portfolio turnover rate........................ 19.4% 19.4% 19.4%
----------------------------------------------------------------------------------------- Six Months Ended Period from April 30, Year Ended April 1, 2000 to 2002 October 31, October 31, (Unaudited) 2001 2000 ----------------------------------------------------------------------------------------- First Eagle SoGen Gold Fund SELECTED PER SHARE DATA Net asset value, beginning of period.............................. $ 6.17 $ 4.44 $ 5.17 Income from investment operations: Net investment (loss) income........ (0.01) 0.02 0.09 Net realized and unrealized gains (losses) on investments........... 4.07 1.92 (0.82) ------ ------ ------ Total from investment operations.... 4.06 1.94 (0.73) ------ ------ ------ Less distributions: Dividends from net investment income............................ (0.07) (0.21) -- Distributions from capital gains.... -- -- -- ------ ------ ------ Total distributions................. (0.07) (0.21) -- ------ ------ ------ Net asset value, end of period.... $10.16 $ 6.17 $ 4.44 ------ ------ ------ ------ ------ ------ Total Return'DD'..................... 66.6%# 45.2% (14.1%)# Ratios and Supplemental Data Net assets, end of year (millions)... $ 38 $ 13 $ 10 Ratio of operating expenses to average net assets.................. 2.0%*'D' 2.7% 2.6%*'D' Ratio of net investment income to average net assets.................. (0.3%)*'D' 0.4% 2.9%*'D' Portfolio turnover rate.............. 2.8% 29.2% 11.7%
60
-------------------------------------------------------- Period from September 4, 2001 to October 31, 2001 -------------------------------------------------------- Class A Class I Class C -------------------------------------------------------- $10.00 $10.00 $10.00 ------ ------ ------ -- -- (0.02) 0.16 0.16 0.16 ------ ------ ------ 0.16 0.16 0.14 ------ ------ ------ -- -- -- -- -- -- ------ ------ ------ -- -- -- ------ ------ ------ $10.16 $10.16 $10.14 ------ ------ ------ ------ ------ ------ 1.6%# 1.6%# 1.4%# $ 7 $ 17 $ 2 1.5%*'D' 1.3%*'D' 2.3%*'D' (0.2%)*'D' 0.1%*'D' (1.0%)*'D' 2.6% 2.6% 2.6%
------------------------------------------------------- Year Ended March 31, ------------------------------------------------------- 2000 1999 1998 1997 ------------------------------------------------------- $ 5.44 $ 7.31 $10.60 $12.25 0.15 0.16 0.13 0.26 (0.27) (1.82) (3.03) (1.75) ------ ------ ------ ------ (0.12) (1.66) (2.90) (1.49) ------ ------ ------ ------ (0.15) (0.21) (0.39) (0.14) -- -- -- (0.02) ------ ------ ------ ------ (0.15) (0.21) (0.39) (0.16) ------ ------ ------ ------ $ 5.17 $ 5.44 $ 7.31 $10.60 ------ ------ ------ ------ ------ ------ ------ ------ (2.5%) (22.8%) (27.2%) (12.2%) $ 13 $ 18 $ 31 $ 53 2.2% 1.6% 1.6% 1.5% 2.3% 2.0% 1.5% 1.2% 15.7% 37.7% 11.2% 16.8%
61 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued) '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:
---------------------------------------------------------------------------------------------------- Six Months Ended April 30, 2002 Year Ended (Unaudited) October 31, 2001 ------------------------------ --------------------------- Class A* Class I* Class C* Class A Class I Class C ---------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund......... 1.3% 1.1% 2.1% 1.4% 1.1% 2.1% First Eagle SoGen Overseas Fund....... 1.4% 1.2% 2.2% 1.5% 1.3% 2.3% First Eagle SoGen Gold Fund........... 2.0% N/A N/A 2.7% N/A N/A ---------------------------------------------------------------------------------------------------- Six Months Ended Period from April 30, 2002 September 4, 2001 (Unaudited) to October 31, 2001 ------------------------------ --------------------------- Class A* Class I* Class C* Class A* Class I* Class C* ---------------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund........... 2.0% 1.8% 2.7% 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:
----------------------------------------------------------------------------------------------------- Six Months Ended April 30, 2002 Year Ended (Unaudited) October 31, 2001 ------------------------------ ---------------------------- Class A* Class I* Class C* Class A Class I Class C ----------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund......... 2.1% 2.3% 1.3% 2.2% 2.5% 1.1% First Eagle SoGen Overseas Fund....... 0.6% 1.0% 0.1% 0.9% 1.1% (0.1%) First Eagle SoGen Gold Fund........... (0.3%) N/A N/A 0.4% N/A N/A
----------------------------------------------------------------------------------------------------- Six Months Ended Period from April 30, 2002 September 4, 2001 (Unaudited) to October 31, 2001 ------------------------------ ------------------------------ Class A* Class I* Class C* Class A* Class I* Class C* ----------------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund......... 1.7% 2.0% 1.0% 1.6% 2.0% 0.8%
--------- '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. 62
------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, 2000 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, 2000 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%
63 ADDITIONAL INFORMATION (UNAUDITED) The business of the Company is managed by its Board of Directors, which elects officers responsible for the day to day operations of the Funds and for the execution of the policies formulated by the Board of Directors. Pertinent information regarding the members of the Board of Directors and principal officers of the Company is set forth below. Some of the Directors and officers are employees of the Adviser and its affiliates. At least a majority of the Company's Board of Directors are not 'interested persons' as that term is defined in the Investment Company Act. Additional information about the Directors is available in the Company's Statement of Additional Information dated March 1, 2002 which is available from the Company at no charge by calling (800) 334-2143. INDEPENDENT DIRECTORS(1)
TERM OF NUMBER OF OFFICE(2) PORTFOLIOS AND IN THE FUND OTHER POSITION(S) LENGTH OF PRINCIPAL COMPLEX DIRECTORSHIPS/ HELD WITH TIME OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, AGE AND ADDRESS THE COMPANY SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------- ----------- ------ ------------------- -------- ---------------- Candace K. Beinecke, 55 ................... Director December Chair, Hughes 6 Director, ALSTOM; One Battery Park Plaza 1999 to Hubbard & Reed Director, Jacob's New York, New York present Pillow Dance 10004 Festival, Inc.; Director, Merce Cunningham Dance Foundation, Inc.; Trustee, First Eagle Funds (1 portfolio); Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio) Edwin J. Ehrlich, 71 ................... Director December President, 6 Trustee, First 2976 Lonni Lane 1999 to Ehrlich Capital Eagle Funds Merrick, New York present Management (1 portfolio); 11566 Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio) Robert J. Gellert, 71 ................... Director December Manager and 6 Director, Formex 122 East 42nd Street 1999 to Director, United Manufacturing, New York, New York present Continental Corp.; Inc.; Trustee, 10168 General Partner, First Eagle Funds Windcrest Partners (1 portfolio); Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio)
64
TERM OF NUMBER OF OFFICE(2) PORTFOLIOS AND IN THE FUND OTHER POSITION(S) LENGTH OF PRINCIPAL COMPLEX DIRECTORSHIPS/ HELD WITH TIME OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, AGE AND ADDRESS THE COMPANY SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------- ----------- ------ ------------------- -------- ---------------- James E. Jordan, 56 ... Director December Private Investor; 6 Director, Leucadia 767 Fifth Avenue 1999 to Consultant to The National New York, New York present Jordan Company Corporation; 10153 (private investment Director, Empire banking company); Insurance Company; until June 1997, Director, J.Z. President and Chief Equity Partners plc Investment Officer (a British of The William Penn investment trust Company (a registered company); Director, investment adviser) School of International and Public Affairs of Columbia University; Vice Chairman, New York State Board of The Nature Conservancy; Trustee, First Eagle Funds (1 portfolio); Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio) William M. Kelly, 57 ................... Director December Senior Associate, 6 Trustee, New York 500 Fifth Avenue, 1999 to Lingold Associates Foundation; 50th Floor present Treasurer and New York, New York Trustee, Black Rock 10110 Forest Consortium; Trustee, First Eagle Funds (1 portfolio); Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio) Paul J. Lawler, 53 .... Director March Vice President - 6 Director and One Michigan Avenue 2002 to Investments and Treasurer, Junior East present Chief Investment Achievement of Battle Creek, Michigan Officer, W.K. South Central 49017 Kellogg Foundation; Michigan; Finance prior to June 1997, Committee Member, Vice President for Battle Creek Finance, Renssalaer Community Polytechnic Foundation; Institute Trustee, First Eagle Funds (1 portfolio); Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio) Donald G. McCouch, 59 ................... Director December Prior to 1997, 5 Director, First 1345 Avenue of the 1999 to Senior Managing Eagle SoGen Americas present Director of Chemical Variable Funds, New York, New York Bank Inc. (1 portfolio) 10105 Fred J. Meyer, 71 ..... Director August Special Advisor/ 5 Director, Novartis 437 Madison Avenue 1993 to Executive office Corporation; New York, New York present of Omnicom Director, Zurich 10022 Group, Inc. since Life Insurance 2001; prior thereto, Company of New Vice Chairman of York; Director, Omnicom Group, Inc.; Actelion Ltd.; and prior to 1998, Trustee, Chief Financial Earthjustice Legal Officer Defense Fund; Trustee, Sacred Heart University; Director, First Eagle SoGen Variable Funds, Inc. (1 portfolio)
65
TERM OF NUMBER OF OFFICE(2) PORTFOLIOS AND IN THE FUND OTHER POSITION(S) LENGTH OF PRINCIPAL COMPLEX DIRECTORSHIPS/ HELD WITH TIME OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, AGE AND ADDRESS THE COMPANY SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------- ----------- ------ ------------------- -------- ---------------- Dominique Raillard, 62 ................... Director April Independent 5 Director, First 15 Boulevard Delessert 1987 to Consultant/Private Eagle SoGen 75016 Paris France present Investor; prior to Variable Funds, March 2002 Managing Inc. (1 portfolio) Director of Act 2 International (Consulting) Nathan Snyder, 67 ..... Director March Independent 5 Director, First 1345 Avenue of the 1983 to Consultant/Private Eagle SoGen Americas present Investor Variable Funds, New York, New York Inc. (1 portfolio) 10105
--------- (1) Directors who are not 'interested persons' of the Company as defined in the Investment Company Act. (2) The term of office of each Director expires on his/her 72nd birthday. 66 INTERESTED DIRECTORS(1)
TERM OF NUMBER OF OFFICE(2) PORTFOLIOS AND IN THE FUND OTHER POSITION(S) LENGTH OF PRINCIPAL COMPLEX DIRECTORSHIPS/ HELD WITH TIME OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, AGE AND ADDRESS THE COMPANY SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------- ----------- ------ ------------------- -------- ---------------- John P. Arnhold, 48 ... Co- December Co-President and 6 Co-President and 1345 Avenue of the President; 1999 to Director, Arnhold Trustee, First Americas Director present and S. Bleichroeder Eagle Funds New York, New York Holdings, Inc.; (1 portfolio); 10105 Co-President Co-President and and Director, Director, First Arnhold and Eagle SoGen S. Bleichroeder, Variable Funds, Inc.; Co-President Inc. (1 portfolio) and Director, Arnhold and S. Bleichroeder Advisers, Inc.; President and Director, Arnhold and S. Bleichroeder UK Ltd.; Co- President and Director, ASB Securities, Inc.; Director Aquila International Fund, Ltd.; President, Worldvest, Inc. Stanford S. Warshawsky, 64................... Chairman of December Co-President, 6 Director, German- 1345 Avenue of the the Board; 1999 to Secretary, and American Chamber Americas Director present Director, Arnhold of Commerce; New York, New York and S. Bleichroeder Chairman and 10105 Holdings, Inc.; Co- Trustee, First President, Secretary Eagle Funds and Director, (1 portfolio); Arnhold and Chairman and S. Bleichroeder, Director, First Inc.; Co-President Eagle SoGen and Director, Variable Funds, Arnhold and Inc. (1 portfolio) S. Bleichroeder Advisers, Inc.; Chairman and Director, Arnhold and S. Bleichroeder UK Ltd.; Co- President and Director, ASB Securities, Inc.
--------- (1) Directors who are 'interested persons' of the Company as defined in the Investment Company Act. Each of Messrs. Arnhold and Warshawsky is an interested person of the Company by virtue of being an officer and a director of the Adviser. (2) The term of office of each Director expires on his/her 72nd birthday. 67 OFFICERS
POSITION(S) TERM OF OFFICE HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) NAME, AGE AND ADDRESS THE COMPANY TIME SERVED (1) DURING PAST FIVE (5) YEARS --------------------- ----------- --------------- -------------------------- John P. Arnhold, 48 ........... Co-President; December 1999 See table above related to 1345 Avenue of the Americas Director to present Interested Directors New York, New York 10105 Jean-Marie Eveillard, 62 ...... Co-President December 1999 Senior Vice President, Arnhold 1345 Avenue of the Americas (portfolio to present and S. Bleichroeder Holdings, New York, New York 10105 manager) (with portfolio Inc.; Vice President, Arnhold management and S. Bleichroeder Advisers, responsibility Inc.; Co-President, First Eagle since 1979) SoGen Variable Funds, Inc.; prior to 1999, Director and President or Executive Vice President of Societe Generale Asset Management Corp. Charles de Vaulx, 40 .......... Senior Vice December 1999 Senior Vice President, Arnhold 1345 Avenue of the Americas President to present and S. Bleichroeder Holdings, New York, New York 10105 (portfolio (with portfolio Inc.; manager) management Vice President, Arnhold and responsibility S. Bleichroeder Advisers, Inc.; since December Senior Vice President, First 1996) Eagle SoGen Variable Funds, Inc.; Senior Vice President, Societe Generale Asset Management Corp. since 1998, Associate Portfolio Manager from December 1996, Securities Analyst, prior to December 1996 Robert Bruno, 37 .............. Vice President, December 1999 Senior Vice President, Arnhold 1345 Avenue of the Americas Secretary and to present and S. Bleichroeder Holdings, New York, New York 10105 Treasurer Inc.; Vice President, Arnhold and S. Bleichroeder Advisers, Inc.; Vice President, Secretary and Treasurer, First Eagle Funds; Vice President, Secretary and Treasurer, First Eagle SoGen Variable Funds, Inc.; prior to 1997, President and Chief Operating Officer, Coelho Associates LLC; and Senior Vice President and Chief Admin. Officer, Schroeder Wertheim Investment Services, Inc. Andrew DeCurtis, 34 ........... Vice President November 2000 Vice President, Arnhold and 1345 Avenue of the Americas to present S. Bleichroeder Holdings, Inc.; New York, New York 10105 Vice President, First Eagle Funds; Vice President, First Eagle SoGen Variable Funds, Inc.; Assistant Vice President, Oppenheimer Capital prior to 1997 Edwin S. Olsen, 62 ............ Vice President November 2000 Vice President of Arnhold and 1345 Avenue of the Americas to present S. Bleichroeder Holdings, Inc.; New York, New York 10105 Vice President, First Eagle Funds; Vice President, First Eagle SoGen Variable Funds, Inc.; Vice President, SG Cowen Securities Corp. from prior to 1999 Tracy Saltwick, 43 ............ Vice President December 1999 Senior Vice President, Arnhold 1345 Avenue of the Americas and Compliance to present and S. Bleichroeder, Inc.; Vice New York, New York 10105 Officer President, ASB Securities, Inc.; Assistant Vice President and Compliance Officer, First Eagle Funds; Vice President and Compliance Officer, First Eagle SoGen Variable Funds, Inc.
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POSITION(S) TERM OF OFFICE HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) NAME, AGE AND ADDRESS THE COMPANY TIME SERVED (1) DURING PAST FIVE (5) YEARS --------------------- ----------- --------------- -------------------------- Stefanie Spritzler, 28 ........ Assistant May 2000 to Assistant Vice President, 1345 Avenue of the Americas Treasurer present Arnhold and S. Bleichroeder New York, New York 10105 Holdings, Inc.; Assistant Treasurer, First Eagle Funds; Assistant Treasurer, First Eagle SoGen Variable Funds, Inc.; prior to May 1998, Senior Accountant, The Bank of New York; prior to September 1997, Senior Accountant, Prudential Insurance Company of America Winnie Chin, 27 ............... Assistant March 2001 to Assistant Treasurer, First 1345 Avenue of the Americas Treasurer present Eagle Funds; Assistant New York, New York 10105 Treasurer, First Eagle SoGen Variable Funds, Inc.; Prior to 1997, Senior Accountant, Salomon Smith Barney Inc. Suzan J. Afifi, 49 ............ Assistant December 1999 Vice President, Arnhold and 1345 Avenue of the Americas Secretary to present S. Bleichroeder Holdings, Inc.; New York, New York 10105 Assistant Secretary, First Eagle Funds; Assistant Secretary, First Eagle SoGen Variable Funds, Inc.; prior to 1997, Managing Director, EffectInvest Bank, Vienna, Austria.
--------- (1) The term of office of each officer is indefinite. 69 First Eagle SoGen Funds, Inc. 1345 Avenue of the Americas New York, N.Y. 10105 www.firsteaglesogen.com DIRECTORS AND OFFICERS Directors John P. Arnhold Candace K. Beinecke Edwin J. Ehrlich Robert J. Gellert James E. Jordan Paul J. Lawler William M. Kelly Donald G. McCouch Fred J. Meyer Dominique Raillard Nathan Snyder Stanford S. Warshawsky Officers Stanford S. Warshawsky Chairman of the Board John P. Arnhold Co-President Jean-Marie Eveillard Co-President Charles de Vaulx Senior Vice President Robert Bruno Vice President, Secretary & Treasurer Tracy Saltwick Vice President & Compliance Officer Edwin S. Olsen Vice President Andrew DeCurtis Vice President Stefanie Spritzler Assistant Treasurer Winnie Chin Assistant Treasurer Suzan J. Afifi Assistant Secretary Investment Adviser Arnhold and S. Bleichroeder Advisers, Inc. 1345 Avenue of the Americas New York, N.Y. 10105 Legal Counsel Shearman & Sterling 599 Lexington Avenue New York, N.Y. 10022 Custodian The Bank of New York One Wall Street New York, N.Y. 10286 Shareholder Servicing Agent DST Systems, Inc. 330 West 9th Street Kansas City, MO 64105 (800) 334-2143 Underwriter Arnhold and S. Bleichroeder, Inc. 1345 Avenue of the Americas New York, N.Y. 10105 Independent Auditors KPMG LLP 757 Third Avenue New York, N.Y. 10017 The financial information included herein is taken from the records of the Funds without examination by the Funds' independent auditors, who do not express an opinion thereon. 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'