-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Tv5oiSYZPJSlDk3YFR+yHicYHhc4xgFVzNzcItmhDY0qTMRXYD+gcYulm+GfBWzc YJRwvTBqvMaUuAEQE+bP8w== 0000950117-02-003218.txt : 20021226 0000950117-02-003218.hdr.sgml : 20021225 20021226122458 ACCESSION NUMBER: 0000950117-02-003218 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021031 FILED AS OF DATE: 20021226 EFFECTIVENESS DATE: 20021226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST EAGLE SOGEN FUNDS INC CENTRAL INDEX KEY: 0000906352 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07762 FILM NUMBER: 02868810 BUSINESS ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2126983133 MAIL ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 FORMER COMPANY: FORMER CONFORMED NAME: SOGEN FUNDS INC DATE OF NAME CHANGE: 19930714 N-30D 1 a33932.txt A&S BLEICHROEDER First Eagle SoGen Funds ANNUAL REPORT October 31, 2002 First Eagle SoGen Global Fund First Eagle SoGen Overseas Fund First Eagle U.S. Value Fund First Eagle SoGen Gold Fund Annual Report [LOGO] First Eagle SoGen Funds, Inc. THE PRESIDENTS' LETTER Dear Shareholder: First, a few words about the Bank for International Settlements (BIS). Two years ago, BIS management and board intended to squeeze out private shareholders (including your funds) at the unduly low price of Swiss francs (CHF) 16,000 per share, barely half of net asset value (NAV). We protested and then presented our case to the Arbitration Tribunal in the Hague. A few weeks ago, the Tribunal decided that private shareholders would receive NAV (CHF 33,820) discounted by 30%, or almost CHF 24,000. We're utterly, bitterly disappointed. Half a loaf is better than nothing, but we've always believed that we should get at least NAV, anything less would unduly enrich BIS (i.e. its remaining shareholders, the central banks). We're examining our legal options, if any (the Tribunal's decision is 'final').* Deminor, a European shareholder advocacy group, has a lawsuit pending in a French court against BIS (and others). We would now like to share with you our understanding of the word 'risk'. Twice in the past fifteen years, we have declined to participate in what we saw as a speculative bubble. First in Japan in the late 1980's, and then in the U.S. and in Europe in the late 1990's. On both occasions, we were told that we were making a big mistake, i.e. we were taking the risk of doing worse than our peers and our benchmarks for as long as the bubble lasted. Indeed, that's what happened. Between the spring of 1995 and the spring of 2000, your First Eagle SoGen Global and First Eagle SoGen Overseas Funds were still making good money, but nowhere near as much as aggressive 'momentum' funds. So, many shareholders abandoned us. However, for us to have knowingly participated in what we saw as a bubble would have subjected our shareholders to undue risk, to the risk of losing much money in absolute terms. And that is the real risk. As our colleague Edwin Olsen put it, 'we would rather lose half of our shareholder base (which we did) than half of our shareholders' money (which we didn't).' Today, the mutual fund industry may be at a crossroads. Most equity funds turned into index 'huggers' in the late 1990's, and so now they're down 35%, 40% or 45% in less than three years. Mutual fund shareholders are not amused, and that's putting it mildly. Unless equity markets come back quickly enough strongly enough, many individuals may become disenchanted with equity funds. And hedge funds are a dubious solution: it's not difficult to be long and wrong some securities as well as short and wrong other securities . . . Add leverage and some hedge funds can be a wipe-out. Some see us as quirky. So be it. And it's true that sometimes, as in the late 1990's, shareholders have to bear with us. However, those who did -- the happy few -- have been well rewarded, at least so far in the twenty-first century. Sincerely, Jean-Marie Eveillard John P. Arnhold - -------------------- ---------------- Jean-Marie Eveillard John P. Arnhold Co-President Co-President
December 9, 2002 - --------- * As a consequence of the Tribunal's partial award, the BIS will be called upon to make an additional payment. The Tribunal will determine the precise amount at a later stage, after taking into account real estate values, interest, arbitration costs and other relief requested by any of the parties. The net asset value of your Funds was positively impacted on November 25, 2002 reflecting the estimated recoveries. The impact of this ruling on the Funds' net asset values as of November 25, 2002 was as follows: First Eagle SoGen Global Fund +1.6%, First Eagle SoGen Overseas Fund +1.3%, and First Eagle SoGen Gold Fund +0.4%. 2 First Eagle SoGen Funds, Inc. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE [Photo] The twelve-month period ending October 31, 2002 was Charles de Vaulx (left), characterized by unprecedented volatility in many Jean-Marie Eveillard markets. Stock markets were volatile, mostly up until (right) early 2002 (recovering in the aftermath of the September 11 attack), and then down sharply, particularly in June, July and September. In the U.S., the stock market struggled due to high valuation levels, an uncertain outlook for corporate profits, bleak results in the telecommunications sector, as well as a general breakdown in confidence following the Enron Corporation and Worldcom Inc. collapses. Some of the foreign markets' difficulties can be tied to the delayed recovery in the United States, a weak economy in Germany, and fear of a war with Iraq. Also hurting was the growing recognition of the fragility of the banking system in Japan, the vulnerability of many European insurance companies to slumping equity markets, and an increasingly distressed financial situation in Brazil. Bond markets were also very volatile with government bonds in the U.S. and Europe exhibiting a strong inverse correlation with stock markets (unlike corporate bonds, particularly high yield bonds, which moved mostly in sync with stock markets). Foreign exchange markets too were very volatile, with the euro, Swiss franc, and pound sterling weakening until early February, then rebounding strongly against the U.S. dollar in May and June. The Japanese yen weakened significantly and then rebounded partially in April. Finally gold prices -- and gold stocks even more so -- began to rise strongly starting in mid-November 2001 in the wake of a weakening U.S. dollar, volatile financial markets, as well as non-existent producer hedging (in fact there was producer dishedging). First Eagle SoGen Global Fund The net asset value of the Fund's Class `A' shares rose 9.76% between November 1, 2001 and October 31, 2002, better than the MSCI World Index which was down 14.85% over that period. Almost half of that performance came from the First Eagle SoGen 3 Global Fund's stocks in the U.S. where quite a few of our 'value' stocks were up over that period, particularly during the first half of the fiscal year. For example, the Fund benefited from strong moves in Manpower, Inc. (temporary staffing), Energizer Holdings Inc. (batteries), Rayonier Inc. (paper and forest products), Zebra Technologies (bar code equipment), and Tiffany & Company (jewelry retailer). The First Eagle SoGen Global Fund's South Korean stocks also did well, including Daeduck Electronics Company, Limited and Daeduck GDS Co., Limited (both in printed circuit boards), and Lotte Confectionery Co., Limited and Lotte Chilsung Beverage Co., Limited (both in food and beverage). A few U.K. and Continental European stocks rose as well including BBAG Oesterreichische Brau-Beteilingungs AG (beer), although the bulk of the return on European stocks was derived from the weakening of the U.S. dollar over the period. Gold related stocks also helped performance contributing a little over 3% of the First Eagle SoGen Global Fund's total return during the period. Mergers and acquisitions activity worldwide was a lot less buoyant than a few years ago. Only two securities in the First Eagle SoGen Global Fund 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. 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 that the latter (with the Swiss franc and the pound sterling) still remain undervalued against the U.S. dollar. In addition, we initiated a 35% hedge on the Korean won. First Eagle SoGen Overseas Fund The net asset value of the Fund's, Class `A' shares rose 11.06% for the period from November 1, 2001 to October 31, 2002, while the MSCI EAFE Index was down 13.21% over that period. Among the foreign stocks that helped the First Eagle SoGen Overseas Fund were our South Korean stocks. In certain cases we had to take some profits, particularly in February and March, (for instance, Daeduck Electronics Company, Limited and Daeduck GDS Company, Limited, two very successful manufacturers of printed circuit boards). Other stocks such as Lotte Confectionery Company, 4 Limited (a successful food manufacturer) rose significantly, but still trade at a considerable discount to what we believe is their respective intrinsic value. Even European stocks that were flat over the period helped the Fund as the currency in which those are denominated rose against the U.S. dollar. Also helping the First Eagle SoGen Overseas Fund were stocks from various sectors, particularly Carter Holt Harvey Limited (a major timberland owner in New Zealand), Shaw Brothers (Hong Kong) Limited (TV broadcasting), IMI plc (U.K. manufacturing), and Kuehne & Nagel International AG (the Swiss based global freight forwarding company). 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 51% 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 October 31, 2002, the net asset value of the First Eagle U.S. Value Fund's Class `A' shares rose 4.12% while the Standard & Poor's 500 Stock Index and the Russell 2000 Index declined 15.07% and 11.57%, respectively over that period. During the first half of this fiscal year, the First Eagle U.S. Value Fund benefited from a strong surge among many small and medium capitalization 'value' stocks in the U.S. As the profit expectations began to be dramatically lowered starting in May, many of those stocks fell back sharply during the second half of the fiscal year. The First Eagle U.S. Value Fund managed to get good returns on stocks as varied as Energizer Holdings Inc. (batteries), Hancock Fabrics, Inc. (fabrics retailer), Manpower Inc. (temporary staffing), Dole Food Company, Inc. (bananas), Chemed Corporation (plumbing services), and Zebra Technologies Corporation -- Class `A' (bar code equipment). The stocks that were down include CONSOL Energy, Inc. (coal) as well as McDonald's Corporation and Tyco International 5 Limited, two situations which we currently find very undervalued -- even though we have had to lower our initial estimates of the intrinsic value of those two companies. The only instance of corporate activity that benefited the First Eagle U.S. Value Fund was Security Capital Group, Inc. Class `B' (real estate) which was acquired by General Electric Company at a premium of approximately 26%. First Eagle SoGen Gold Fund Between November 1, 2001 and October 31, 2002 the price of gold rose from $280 per ounce to $315 per ounce, i.e., 12.41%, helped by global financial uncertainty (weak banking in Japan, Argentine default, Middle East crisis, unstable stock markets, weakening U.S. dollar). Also helping gold was a lack of hedging activity by gold mining companies (in fact actual demand for gold was generated from dishedging). The net asset value of the Fund's Class `A' shares rose 70.70% while the Financial Times Gold Mines Index was up 27.30% over that period. The bulk of that performance was achieved during the first half of the fiscal year. 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, have begun to attract new inflows, we have been adding to our existing positions whenever possible and coming up with a few new names. As of April, 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 As someone once quipped, 'a bear market, if properly prepared for, can be a value investor's best friend.' Over the past year, we have been finding bargains in unlikely places. We have been able to find value among some bigger names (ex. Vivendi Universal S.A. and Liberty Media Corporation). We have also been looking at sectors that are not normally associated with value, for instance in the pharmaceutical industry (ex. Schering-Plough Corporation and Merck KGaA). Finally, we have found some value in distressed debt (Lucent Technologies and Level 3 Communications). 6 In addition, we have been able to add to existing positions. Although we have revised downward the intrinsic values of some of our companies, the discounts at which our holdings are currently trading have expanded considerably, thus increasing our perceived 'margin of safety.' We also derive great comfort from the fact that some of our holdings currently offer somewhat generous dividend yields, sometimes in excess of ten year bond yields. We like to get paid while waiting. . . We appreciate your confidence and thank you for your support. Charles de Vaulx - ---------------- Charles de Vaulx Co-Manager 7 FIRST EAGLE SOGEN FUNDS PERFORMANCE Average Annual Returns as of October 31, 2002(1)
- -------------------------------------------------------------------------------------------------------------------------- Inception 1 Year 3 Years 5 Years 10 Years 15 Years Inception Date ========================================================================================================================== First Eagle SoGen Global Fund First Eagle SoGen Global Fund - Class A (SGENX) without sales load 9.76% 9.28% 7.91% 10.62% 11.10% 14.57% 1/01/79(2) with sales load 4.27% 7.88% 7.08% 10.19% 10.81% 14.39% 1/01/79(2) First Eagle SoGen Global Fund - Class I (SGIIX) 10.03% 9.46% -- -- -- 8.70% 7/31/98 First Eagle SoGen Global Fund - Class C (FESGX) 7.91% -- -- -- -- 7.98% 6/05/00 ========================================================================================================================== MSCI World Index(3) (14.85%) (13.77%) (1.59%) 6.50% 6.27% 10.39% 1/01/79(2) ========================================================================================================================== First Eagle SoGen Overseas Fund First Eagle SoGen Overseas Fund - Class A (SGOVX) without sales load 11.06% 7.24% 9.00% -- -- 10.24% 8/31/93 with sales load 5.51% 5.89% 8.17% -- -- 9.78% 8/31/93 First Eagle SoGen Overseas Fund - Class I (SGOIX) 11.33% 7.40% -- -- -- 8.90% 7/31/98 First Eagle SoGen Overseas Fund - Class C (FESOX) 9.23% -- -- -- -- 5.33% 6/05/00 ========================================================================================================================== MSCI EAFE Index(4) (13.21%) (14.15%) (3.12%) -- -- 0.95% 8/31/93 ========================================================================================================================== First Eagle U.S. Value Fund(5) First Eagle U.S. Value Fund - Class A (FEVAX) without sales load 4.12% -- -- -- -- 4.98% 9/04/01 with sales load (0.77%) -- -- -- -- 0.23% 9/04/01 First Eagle U.S. Value Fund - Class I (FEVIX) 4.41% -- -- -- -- 5.24% 9/04/01 First Eagle U.S. Value Fund - Class C (FEVCX) 1.55% -- -- -- -- 3.35% 9/04/01 ========================================================================================================================== Russell 2000 Index(6) (11.57%) -- -- -- -- (16.41%) 9/04/01 ========================================================================================================================== First Eagle SoGen Gold Fund First Eagle SoGen Gold Fund (SGGDX) without sales load 70.70% 20.95% 7.52% -- -- 3.25% 8/31/93 with sales load 62.17% 19.41% 6.70% -- -- 2.82% 8/31/93 ========================================================================================================================== Financial Times Gold Mines Index(7) 27.30% 3.01% (2.91%) -- -- (5.95%) 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. 8 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 'with sales load' 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. Class I Shares require $1mm minimum investment, and are offered without load. The average annual returns for Class C Shares reflect the CDSC (Contingent Deferred Sales Charge) of 1.00% which pertains to the first year of investment only. For First Eagle U.S. Value Fund Class C Shares only, the 1.00% front-end sales load is reflected in the returns. (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 above is of a very limited time period and is not indicative of future results. (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. 9 FIRST EAGLE SOGEN GLOBAL FUND OCTOBER 31, 2002 Fund Overview The First Eagle SoGen Global Fund seeks long-term growth of capital by investing in a wide range of asset classes from markets in the United States and around the world. This truly global fund is managed with a highly disciplined, bottom-up, value oriented style that helps minimize risk. PERFORMANCE COMPARISON:
AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2002 ONE-YEAR FIVE-YEAR TEN-YEAR -------- --------- -------- First Eagle SoGen Global Fund (A Shares)............ 4.27% 7.08% 10.19% MSCI World Index.................................... (14.85%) (1.59%) 6.50% Consumer Price Index................................ 2.08% 2.33% 2.49%
Growth Of a $10,000 Initial Investment [GRAPH]
First Eagle MSCI Consumer SoGen Global Fund World Index Price Index --------------- ----------- ----------- 10/31/92 $10,000.0 $10,000.0 $10,000.0 10/31/93 11,899.2 12,700.6 10,275.0 10/31/94 13,079.8 13,672.5 10,543.0 10/31/95 14,141.8 14,969.2 10,839.2 10/31/96 16,118.3 17,408.7 11,163.6 10/31/97 18,117.7 20,328.6 11,396.3 10/31/98 17,331.5 23,429.8 11,558.5 10/31/99 20,318.4 29,267.3 11,854.7 10/31/00 22,172.1 29,587.3 12,263.8 10/31/01 24,157.5 22,038.3 12,524.7 10/31/02 26,513.1 18,765.1 12,785.6
Performance data quoted herein represents past performance and should not be considered indicative of future results. The average annual returns shown above 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 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 Buderus AG (German manufacturer of heating systems) 3.92% Rayonier Inc. (U.S. forest products company) 3.92% Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 3.05% Shimano Inc. (Japanese manufacturer of bicycle parts) 2.67% Tyco International Ltd., (U.S. industrial conglomerate) 2.58% Newmont Mining Corp. (U.S. mining company) 1.89% Freeport McMoRan Cooper & Gold Inc. Pfd. (Series B,C & D) (U.S. mining company) 1.80% Liberty Media Corp. (U.S. media company) 1.33% McDonald's Corp. (U.S. restaurant franchise) 1.30% ProLogis (U.S. REIT) 1.23%
- --------------------------------------- ASSET ALLOCATION Foreign Stocks 44.94% U.S. Stocks 30.16% U.S. Dollar Bonds and Notes 16.23% Foreign Currency Bonds and Notes 2.66% U.S. Dollar Cash and Equivalents 6.01% - --------------------------------------- TOP 5 COUNTRIES United States 46.83% Japan 11.19% Germany 7.03% France 4.54% Switzerland 3.54%
The Fund's portfolio composition is subject to change at any time. 10 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS October 31, 2002
- ---------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ---------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (30.20%) Agriculture (0.04%) 2,485 J.G. Boswell Company (a) $ 573,840 $ 735,560 -------------- -------------- Automotive (0.23%) 135,000 Bandag Incorporated, Class `A' 5,092,470 4,509,000 -------------- -------------- Capital Goods (2.74%) 2,000,000 Tyco International Limited 31,179,105 28,920,000 250,000 Franklin Electric Company, Inc. 9,113,148 10,990,000 285,000 Vulcan Materials Company 10,152,461 9,564,600 150,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 4,985,477 3,090,000 365,000 Kaiser Ventures LLC (a) -- 1,277,500 4,805 Conbraco Industries, Inc. (a) 1,568,050 321,935 -------------- -------------- 56,998,241 54,164,035 -------------- -------------- Chemicals (0.21%) 885,000 Ethyl Corporation (c) 7,283,811 4,150,650 -------------- -------------- Consumer Products (2.14%) 535,000 Barnes and Noble, Inc. 10,625,048 11,288,500 186,500 Allen Organ Company, Class `B' (c) 5,807,639 7,165,330 185,000 St. John Knits International Inc. (a) 3,180,703 6,058,750 137,000 Weyco Group, Inc. 1,376,375 4,880,625 210,424 Jostens, Inc., Class `A' (a) 2,944,626 4,076,965 100,000 Philip Morris Companies, Inc. 2,123,038 4,075,000 100,000 Dole Food Company, Inc. 1,219,488 2,938,000 300,000 A.T. Cross Company, Class `A' (a) 3,169,423 1,836,000 -------------- -------------- 30,446,340 42,319,170 -------------- -------------- Electronics (0.00%) 25,000 OpticNet Inc. -- -- -------------- -------------- Energy (2.19%) 275,000 Burlington Resources, Inc. 10,284,595 11,330,000 875,000 San Juan Basin Royalty Trust 5,342,905 11,077,500 100,000 Murphy Oil Corporation 4,173,744 8,383,000 415,000 CONSOL Energy, Inc. 7,601,388 5,353,500 200,000 Kaneb Services LLC 1,277,654 3,710,000 70,000 ConocoPhillips 2,847,227 3,395,000 -------------- -------------- 31,527,513 43,249,000 -------------- --------------
11 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) - ------------------------------------------------------------------------------ Common and Preferred Stocks -- U.S.--(continued) Financial Companies (0.78%) 125 Berkshire Hathaway Inc., Class `A' (a) $ 7,366,302 $ 9,273,750 115,000 Leucadia National Corporation 3,481,783 4,313,650 114,750 East Texas Financial Services, Inc. (c) 862,688 1,302,412 31,000 Redwood Financial, Inc. (a)(e) 271,250 430,125 -------------- -------------- 11,982,023 15,319,937 -------------- -------------- Forest Products (5.29%) 1,835,000 Rayonier Inc. (c) 68,109,414 77,400,300 615,000 Greif Bros. Corporation, Class `A' 11,017,026 15,614,850 888,300 Longview Fibre Company 5,957,905 6,040,440 200,000 Deltic Timber Corporation 3,613,195 5,276,000 -------------- -------------- 88,697,540 104,331,590 -------------- -------------- Health Care (1.01%) 645,000 Schering-Plough Corporation 14,888,702 13,770,750 165,000 DENTSPLY International Inc. 2,515,282 6,091,800 -------------- -------------- 17,403,984 19,862,550 -------------- -------------- Media (2.74%) 3,175,000 Liberty Media Corporation (a) 28,687,913 26,257,250 1,675,000 General Motors Corporation -- Class `H' (a) 22,739,102 16,498,750 1,500,000 Amdocs Limited 11,332,824 10,470,000 34,924 Mills Music Trust (c) 1,055,337 925,486 -------------- -------------- 63,815,176 54,151,486 -------------- -------------- Precious Metals (4.07%) 4,816,750 Newmont Mining Corporation 18,700,241 37,362,656 725,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (a)(d) 23,738,819 19,937,500 355,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (a)(d) 10,369,569 8,413,500 925,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (a)(d) 11,785,274 7,122,500 7,432 Case, Pomeroy & Company, Inc. Class `A' 7,366,948 7,536,048 -------------- -------------- 71,960,851 80,372,204 -------------- --------------
12 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Real Estate (2.17%) 1,000,000 ProLogis $ 18,498,091 $ 24,200,000 500,000 Crescent Real Estate Equities Company 7,671,061 7,375,000 240,210 Security Capital European Realty (a)(e) 4,804,190 4,487,123 258,133 Price Legacy Corporation Pfd., Series `A' 2,935,244 4,181,755 150,000 Catellus Development Corporation (a) 253,547 2,670,000 -------------- -------------- 34,162,133 42,913,878 -------------- -------------- Retail (2.34%) 1,415,000 McDonald's Corporation 34,293,031 25,625,650 325,000 Tiffany & Company 6,951,764 8,508,500 175,000 The Sherwin-Williams Company 3,650,616 4,786,250 185,000 Dillard's Inc., Class `A' 3,072,364 3,050,650 150,000 Hancock Fabrics, Inc. 477,528 2,385,000 70,000 Papa John's International Inc. (a) 1,527,445 1,822,100 -------------- -------------- 49,972,748 46,178,150 -------------- -------------- Services (1.16%) 335,000 Manpower Inc. 8,889,167 11,423,500 343,000 UniFirst Corporation 4,024,047 6,856,570 85,000 Chemed Corporation 2,248,046 2,996,250 154,784 KinderCare Learning Centers, Inc. (a) 992,527 1,563,318 -------------- -------------- 16,153,787 22,839,638 -------------- -------------- Technology (1.67%) 3,000,000 Earthlink Inc. (a) 21,192,192 18,300,000 725,000 American Power Conversion Corporation (a) 8,479,516 9,367,000 85,000 Zebra Technologies Corporation, Class `A' (a) 3,175,082 5,229,200 -------------- -------------- 32,846,790 32,896,200 -------------- -------------- Transportation (0.50%) 385,000 Burlington Northern Santa Fe Corporation 9,051,314 9,906,050 -------------- -------------- Utilities (0.92%) 315,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. (c) 13,865,313 12,954,375 200,000 IDACORP, Inc. 5,192,212 5,202,000 -------------- -------------- 19,057,525 18,156,375 -------------- --------------
13 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- Non U.S. (44.90%) Argentina (0.15%) 175,000 Siderca S.A.I.C. ADR (2) $ 1,257,401 $ 2,863,000 -------------- -------------- Australia and New Zealand (1.04%) 3,150,000 News and Media NZ Limited exchangeable preference shares (c)(14) 16,143,687 12,091,621 8,850,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (c)(18) 5,435,262 4,253,902 1,500,000 Spotless Group Limited (15) 2,876,214 4,145,477 -------------- -------------- 24,455,163 20,491,000 -------------- -------------- Austria (1.69%) 505,000 Flughafen Wien AG (8) 17,243,831 16,942,450 300,000 BBAG Oesterreichische Brau- Beteiligungs AG (11) 11,551,015 16,396,542 -------------- -------------- 28,794,846 33,338,992 -------------- -------------- Belgium (0.44%) 500,000 Deceuninck (5) 6,669,400 8,761,058 -------------- -------------- Canada (1.39%) 445,000 EnCana Corporation (2) 6,309,013 12,949,500 485,000 Meridian Gold Inc. (a)(1) 1,760,090 7,748,815 625,000 Pan American Silver Corporation (a)(1) 1,994,168 3,447,309 135,000 Fairmont Hotels & Resorts Inc. (18) 1,145,394 3,315,600 50,000 Miramar Mining Corporation (a)(1) 41,193 38,116 -------------- -------------- 11,249,858 27,499,340 -------------- -------------- Chile (0.10%) 500,000 Quinenco S.A. ADR (19) 2,687,144 1,897,500 -------------- -------------- Commonwealth of Independent States (0.18%) 556,624 Firebird Fund, L.P. (b)(e)(21) 1,000,000 3,515,748 -------------- -------------- Denmark (0.47%) 200,000 Carlsberg A/S, `B' (11) 9,284,691 9,373,481 -------------- -------------- France (4.54%) 385,000 Eurazeo (19) 15,142,563 17,150,884 31,053 Societe Sucriere de Pithiviers-le-Vieil (c)(4) 12,062,938 11,251,176 550,000 Wendel Investissement (6) 11,796,993 10,971,121 70,000 NSC Groupe (c)(6) 12,400,388 6,243,615 100,000 Sagem ADP (9) 2,850,921 5,098,242 56,250 Taittinger C.I. (a)(11) 2,775,854 4,343,406
14 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- Non U.S. -- (continued) France -- (continued) 385,000 Sabeton SA (c)(19) $ 4,841,233 $ 3,925,647 65,000 Gaumont SA (a)(14) 3,132,425 2,831,257 73,500 Crometal SA (6) 4,938,687 2,182,840 42,252 Robertet SA C.I. (a)(11) 800,508 2,048,704 325,000 Remy Cointreau (11) 9,104,524 9,800,010 1,000,000 Vivendi Universal SA (14) 14,629,591 12,275,380 20,448 Robertet SA (11) 527,638 1,467,581 -------------- -------------- 95,004,263 89,589,863 -------------- -------------- Germany (7.03%) 3,525,000 Buderus AG (c)(6) 58,768,940 77,468,537 379,080 Hornbach Holding AG Pfd. (c)(12) 21,920,338 19,138,783 859,464 Merck KGaA (13) 21,731,872 18,377,850 50,393 Bertelsmann AG (14) 12,268,742 9,029,481 500,000 Sudzucker AG (4) 5,849,951 6,731,660 300,000 Bayer AG (7) 5,939,207 5,731,811 50,000 Axel Springer Verlag AG (14) 1,553,189 2,227,387 -------------- -------------- 128,032,239 138,705,509 -------------- -------------- Hong Kong (0.93%) 21,650,000 Shaw Brothers (Hong Kong) Limited (c)(14) 21,884,402 16,794,028 21,500,000 City e-Solutions Limited (a)(c)(16) 971,287 1,543,718 -------------- -------------- 22,855,689 18,337,746 -------------- -------------- Israel (0.03%) 275,000 The Israel Land Development Company Limited (a)(20) 900,749 633,685 -------------- -------------- Japan (11.19%) 3,585,000 Shimano Inc. (11) 52,645,049 52,780,791 685,000 Secom Company, Limited (15) 31,540,342 24,192,904 700,000 Ono Pharmaceutical Company, Limited (13) 24,624,574 22,039,152 5,000,000 Nipponkoa Insurance Company, Limited (16) 18,898,196 17,414,356 1,925,000 Makita Corporation (11) 14,501,867 12,294,249 1,315,000 Wacoal Corporation (11) 11,170,958 11,122,798 395,000 Fuji Photo Film Company, Limited (11) 10,828,996 10,889,886 5,000,000 Aioi Insurance Company, Limited (16) 15,606,103 10,685,155 2,500,000 Mitsui Sumitomo Insurance Company, Limited (16) 13,619,625 10,379,282 700,000 Daiichi Pharmaceutical Corporation, Limited (13) 12,478,617 10,220,228
15 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- Non U.S. -- (continued) Japan -- (continued) 615,000 Chofu Seisakusho Company, Limited (6) $ 10,291,599 $ 7,820,432 700,000 Shoei Company, Limited (19) 5,834,803 7,422,512 2,500,000 Okumura Corporation (6) 10,670,713 7,340,946 1,000,000 Mitsubishi Securities Company, Limited (16) 7,279,769 4,975,530 2,000,000 Aida Engineering, Limited (6) 13,038,988 3,980,424 1,000,000 Nisshinbo Industries, Inc. (20) 4,271,416 3,898,858 2,000,000 Iino Kaiun Kaisha, Limited (8) 4,857,297 3,507,341 -------------- -------------- 262,158,912 220,964,844 -------------- -------------- Mexico (0.94%) 12,450,000 Industrias Penoles, S.A. de C.V. (1) 27,131,539 18,610,762 -------------- -------------- Netherlands (0.87%) 315,000 OPG Groep NV (13) 7,677,057 12,613,695 300,000 Holdingmaatschappij de Telegraaf, NV (14) 2,646,649 4,558,720 -------------- -------------- 10,323,706 17,172,415 -------------- -------------- Singapore (0.41%) 1,165,000 Fraser & Neave Limited (19) 3,965,243 5,077,833 3,000,000 Delgro Corporation Limited (19) 1,987,552 3,056,719 -------------- -------------- 5,952,795 8,134,552 -------------- -------------- South Africa (1.85%) 2,000,000 Gold Fields Limited (1) 7,102,817 22,944,371 1,000,000 Harmony Gold Mining Company Limited (1) 4,591,642 13,513,175 -------------- -------------- 11,694,459 36,457,546 -------------- -------------- South Korea (2.76%) 65,500 Nam Yang Dairy Products (c)(11) 14,805,002 16,060,482 33,500 Lotte Confectionery Company, Limited (11) 7,953,913 13,334,287 1,624,700 Daeduck Electronics Company, Limited (9) 11,759,935 12,973,698 601,250 Daeduck GDS Company, Limited (9) 3,188,400 5,626,737 7,750 Lotte Chilsung Beverage Company (11) 1,161,734 3,699,224 10,000 Samsung Electronics Company, Limited (9) 1,020,350 2,819,779 -------------- -------------- 39,889,334 54,514,207 -------------- --------------
16 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- Non U.S. -- (continued) Spain and Portugal (3.28%) 3,025,000 Corporacion Financiera Alba SA (19) $ 65,698,384 $ 60,221,381 300,000 Espirito Santo Financial Group SA ADR (16) 4,540,444 4,500,000 -------------- -------------- 70,238,828 64,721,381 -------------- -------------- Switzerland (3.54%) 375,000 Kuehne & Nagel International AG (8) 11,558,726 21,254,907 10,443 Pargesa Holding AG (16) 21,192,401 17,011,573 34,250 Edipresse SA (14) 9,017,725 9,967,176 41,500 Sika Finanz AG (5) 9,174,476 9,830,130 15,000 Lindt & Sprungli AG PC (11) 2,661,221 8,141,581 10,000 Societe Generale d'Affichage (14) 2,094,287 3,654,575 -------------- -------------- 55,698,836 69,859,942 -------------- -------------- Thailand (0.17%) 577,000 The Oriental Hotel Public Company Limited (18) 2,636,472 3,356,897 -------------- -------------- United Kingdom (1.90%) 4,000,000 IMI plc (20) 15,239,578 16,299,996 10,000,000 Enodis plc (a)(6) 12,807,689 8,056,140 700,000 Antofagasta Holdings plc (1) 1,822,782 5,704,998 3,000,000 McBride plc (11) 7,569,080 2,768,809 2,250,000 Aggregate Industries plc (5) 2,013,209 2,551,763 145,000 Lonmin plc (1) 292,225 1,973,363 2,000,000 Royal Doulton plc (a)(11) 4,167,057 132,965 -------------- -------------- 43,911,620 37,488,034 -------------- -------------- Total Common and Preferred Stocks 1,408,854,030 1,482,342,975 -------------- --------------
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds (18.89%) U.S. Dollar Convertible Bonds (1.94%) $ 6,000,000 Coeur d'Alene Mines Corporation 6 3/8% due 1/31/2004 (a)(1) 6,002,918 5,062,500 4,420,000 Battle Mountain Gold Company 6% due 1/04/2005 (a)(1) 4,007,224 4,375,800
17 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Convertible Bonds -- (continued) $ 8,500,000 Interpublic Group Company 1.870% 6/01/2006 (14) $ 5,939,470 $ 5,509,020 2,000,000 TriQuint Semiconductor Inc. 4% due 3/01/2007 (10) 1,473,602 1,512,500 12,000,000 SCI Systems 3.00% due 3/15/2007 (10) 6,983,327 6,945,000 12,000,000 Ivax Corporation 4 1/2% due 5/15/2008 (13) 9,218,325 9,588,738 10,000,000 AOL Time Warner 0% due 10/06/2019 (14) 5,108,756 5,325,000 2,500,000 Medya International Limited 10% due 6/28/2049 (a)(e)(f)(14) 2,482,264 25,000 -------------- -------------- 41,215,886 38,343,558 -------------- -------------- U.S. Dollar Bonds and Notes (10.83%) 1,250,000 HSBC Gold-Linked Note 0% due 4/09/2003 (a)(d)(e)(1) 1,250,000 1,306,250 750,000 HSBC Gold-Linked Note 0% due 5/05/2003 (a)(d)(e)(1) 750,000 773,100 2,400,000 HSBC Gold-Linked Note 0% due 5/15/2003 (a)(d)(e)(1) 2,400,000 2,418,480 550,000 HSBC Gold-Linked Note 0% due 5/29/2003 (a)(d)(e)(1) 550,000 540,485 1,900,000 HSBC Gold-Linked Note 0% due 6/19/2003 (a)(d)(e)(1) 1,900,000 1,851,170 3,000,000 HSBC Gold-Linked Note 0% due 6/24/2003 (a)(d)(e)(1) 3,000,000 2,938,500 3,000,000 HSBC Gold-Linked Note 0% due 6/26/2003 (a)(d)(e)(1) 3,000,000 2,905,500 2,000,000 HSBC Gold-Linked Note 0% due 7/15/2003 (a)(d)(e)(1) 2,000,000 2,023,400 2,000,000 HSBC Gold-Linked Note 0% due 7/18/2003 (a)(d)(e)(1) 2,000,000 1,989,600 1,000,000 HSBC Gold-Linked Note 0% due 7/22/2003 (a)(d)(e)(1) 1,000,000 977,300 1,000,000 HSBC Gold-Linked Note 0% due 7/25/2003 (a)(d)(e)(1) 1,000,000 982,000 3,700,000 UBS Gold-Linked Note 0% due 5/23/2003 (a)(d)(e)(1) 3,700,000 3,801,417 4,000,000 UBS Gold-Linked Note 0% due 6/19/2003 (a)(d)(e)(1) 4,000,000 3,911,480 8,000,000 The Southland Corporation 5% due 12/15/2003 (12) 7,585,086 7,680,000 5,589,000 The Southland Corporation 4% due 6/15/2004 (12) 4,988,596 5,253,660
18 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Bonds and Notes -- (continued) $ 4,644,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (a)(f)(3) $ 3,515,596 $ 1,288,710 3,625,000 Dillard's Inc. 6.43% due 8/01/2004 (6) 3,444,156 3,572,390 1,500,000 Hollinger International Publishing 8 5/8% due 3/15/2005 (14) 1,575,000 1,572,215 3,500,000 Hollinger International Publishing 9 1/4% due 3/15/2007 (14) 3,519,499 3,535,000 6,750,000 Blount International Inc. 7% due 6/15/2005 (6) 5,764,028 5,636,250 29,500,000 Blount International Inc. 13% due 8/01/2009 (6) 20,632,339 16,225,000 2,750,000 Westpoint Stevens Inc. 7 7/8% due 6/15/2005 (11) 2,434,235 838,750 5,000,000 Tyco International Group SA 6 3/8% due 2/15/2006 (6) 4,286,854 4,503,850 20,500,000 Tyco International Group SA 6 3/4% due 2/15/2011 (6) 16,511,780 17,456,488 3,500,000 American Standard Inc. 7 1/8% due 6/01/2006 (5) 3,181,761 3,430,177 4,910,000 American Standard Inc. 8 1/4% due 6/01/2009 (5) 5,236,863 5,210,737 20,000,000 Lucent Technologies 7 1/8% due 7/15/2006 (10) 11,585,678 10,100,000 1,250,000 B&G Foods Inc. 9 5/8% due 8/01/2007 (11) 1,263,448 1,303,125 1,000,000 Penton Media Inc. 11 3/8% due 10/10/2007 (14) 586,458 700,000 5,500,000 Penton Media Inc. 10 3/8% due 6/15/2011 (14) 3,927,216 1,705,000 6,890,000 Columbus McKinnon Corporation 8 1/2% due 4/01/2008 (6) 6,055,068 4,995,250 3,500,000 Computer Associates 6 1/2% due 4/15/2008 (10) 2,859,475 3,119,130 15,000,000 Level 3 Communications, Inc. 9 1/8% due 5/01/2008 (6) 7,719,417 8,550,000 5,750,000 Domino's Inc. 10 3/8% due 1/15/2009 (11) 5,589,856 6,195,625 2,200,000 Longview Fibre Company 10% due 1/15/2009 (3) 2,251,493 2,277,000 4,000,000 Crescent Real Estate Equities Company 9 1/4% due 4/15/2009 (18) 4,039,375 4,005,744
19 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Dollar Bonds and Notes -- (continued) $ 5,000,000 St. John Knits International Inc. 12 1/2% due 7/01/2009 (11) $ 4,812,310 $ 5,150,000 4,000,000 Jostens Inc. 12 3/4% due 5/01/2010 (11) 3,999,021 4,460,000 1,878,000 Flowserve Corporation 12 1/4% due 8/15/2010 (b)(6) 1,893,090 2,000,070 6,900,000 Briggs & Stratton Corporation 8 3/4% due 3/15/2011 (11) 7,351,750 7,279,500 5,500,000 Steinway Musical Instruments 8 3/4% due 4/15/2011 (11) 5,556,250 5,520,625 4,500,000 Potlatch Corporation 10% due 7/15/2011 (3) 4,830,625 4,950,000 1,500,000 Citizens Communications 9 1/4% due 5/15/2011 (14) 1,301,142 1,585,308 1,000,000 UCAR Finance Inc. 10 1/4% due 2/15/2012 (b)(16) 1,020,000 675,000 5,000,000 Greif Bros. Corporation 8 7/8% due 8/01/2012 (3) 4,959,941 5,200,000 1,000,000 The Manitowoc Company Inc. 10 1/2% due 8/01/2012 (6) 1,000,000 1,005,000 4,200,000 Bausch and Lomb Inc. 7 1/8% due 8/01/2028 (13) 3,509,629 3,388,597 10,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(16) 6,062,700 9,875,000 5,500,000 Bergen Bank Floating Rate Perpetual Notes (1.937% @ 10/31/2002) (16) 3,888,750 4,114,550 3,500,000 Den Norske Bank Floating Rate Perpetual Notes (2.025% @ 10/31/2002) (16) 2,610,000 2,712,500 3,170,000 Den Norske Bank Floating Rate Perpetual Notes (2.125% @ 10/31/2002) (16) 2,059,625 2,417,125 10,000,000 Christiania Bank Floating Rate Perpetual Notes (2.312% @ 10/31/2002) (16) 6,826,750 7,938,000 -------------- -------------- 216,784,860 213,844,058 -------------- --------------
20 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) U.S. Treasury Notes (3.46%) $ 5,131,780 U.S. Treasury Note 3 3/8% due 1/15/2007 (22) $ 5,112,286 $ 5,514,262 10,000,000 U.S. Treasury Zero Coupon Strip due 11/15/2007 (22) 7,435,687 8,727,260 37,586,850 U.S. Treasury Inflation Index Note 4 1/4% due 1/15/2010 (22) 40,178,228 42,396,802 5,000,000 U.S. Treasury Note 7 1/4% due 5/15/2016 (22) 5,173,906 6,314,260 5,000,000 U.S. Treasury Note 5 3/8% due 2/15/2031 (22) 4,704,125 5,279,105 -------------- -------------- 62,604,232 68,231,689 -------------- -------------- Non U.S. Dollar Convertible Bonds (0.16%) CAD 1,600,000 Noranda Inc. 5% due 4/30/2007 (20) 1,098,098 912,236 NZD 3,500,000 Evergreen Forest Limited 0% due 3/19/2009 (a)(c)(3) 1,871,556 2,193,839 -------------- -------------- 2,969,654 3,106,075 -------------- -------------- Non U.S. Dollar Bonds and Notes (2.50%) CAD 2,500,000 Bell Canada 8 1/2% due 6/09/2003 (17) 1,788,588 1,644,459 CAD 6,000,000 Shaw Communications Inc. 7.4% due 10/17/2007 (14) 3,685,924 3,116,656 EUR 7,500,000 Sola International Inc. 11% due 3/15/2008 (13) 6,774,427 7,090,517 EUR 13,728,910 Republic of France O.A.T/i 3% due 7/25/2009 (22) 11,693,355 13,671,121 EUR 2,250,000 Prosieben Media 11 1/4% due 7/31/2009 (14) 2,034,471 2,138,292 EUR 6,240,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 (6) 6,213,001 6,424,380 ZAR 50,000,000 Republic of South Africa 13% due 8/31/2010 (c)(22) 4,594,230 5,357,611 EUR 5,000,000 The Manitowoc Company, Inc. 10 3/8% due 5/15/2011 (6) 4,540,472 4,727,011 GBP 3,375,000 Enodis plc 10 3/8% due 4/15/2012 (6) 4,908,213 5,134,323 -------------- -------------- 46,232,681 49,304,370 -------------- -------------- Total Bonds, Notes and Convertible Bonds 369,807,313 372,829,750 -------------- -------------- Short-Term Investments (5.90%) 21,723,000 Dow Chemical Inc. 1.80% due 11/01/2002 21,723,000 21,723,000 18,826,000 GMAC 1.74% due 11/01/2002 18,826,000 18,826,000
21 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Short-Term Investments -- (continued) $ 15,378,000 United Parcel Service 1.62% due 11/01/2002 $ 15,378,000 $ 15,378,000 20,000,000 GMAC 1.74% due 11/04/2002 19,997,100 19,997,100 20,000,000 Ingersoll Rand Corporation 1.77% due 11/04/2002 19,997,050 19,997,050 15,118,000 Philip Morris Capital Corporation 1.77% due 11/04/2002 15,115,770 15,115,770 5,489,000 Diageo Capital plc 1.77% due 11/06/2002 5,487,651 5,487,651 -------------- -------------- Total Short-Term Investments 116,524,571 116,524,571 -------------- -------------- Total Investments (99.89%) $1,895,185,914* 1,971,697,296** -------------- -------------- Other assets in excess of liabilities (0.11%) 2,103,047 -------------- Net assets (100.00%) $1,973,800,343 -------------- --------------
- --------- * At October 31, 2002, the cost of investments for federal income tax purposes equals $1,916,330,063. ** Gross unrealized appreciation and depreciation of securities at October 31, 2002, based on cost for federal income tax purposes, were $238,529,190 and $183,161,957 respectively (net appreciation was $55,367,233).
Foreign Currencies Industry Classifications - ------------------ ------------------------ CAD -- Canadian Dollar (1) Metals & Minerals (12) Distribution NZD -- New Zealand Dollar (2) Energy (13) Health Care EUR -- Euro (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 year ended October 31, 2002. 22 FIRST EAGLE SOGEN GLOBAL FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
Purchases Sales -------------------- ----------------------- Realized Dividend Affiliate Shares Cost Shares Cost Gain/Loss Income - ------------------------------------------------------------------------------------------------------- Allen Organ Company, Class `B'.................. 2,000 $ 81,500 -- -- -- $ 103,600 Buderus AG.................. 25,000 501,649 215,000 $3,883,990 $1,215,424 353,296 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares..................... -- -- -- -- -- 16,538 City e-Solutions Limited.... -- -- 653,845 29,538 13,845 -- East Texas Financial Services, Inc. (c)......... -- -- -- -- -- 22,950 Ethyl Corporation'D'........ 530,400 640,926 3,420,400 -- -- -- Evergreen Forest Limited 0% due 3/19/2009.............. -- -- -- -- -- -- Hornbach Holding AG Pfd. ... -- -- 5,920 456,683 (125,019) 64,658 CalEnergy Capital Trust 6 1/2% Conv. Pfd. ......... 65,000 2,603,438 -- -- -- -- Mills Music Trust........... -- -- -- -- -- 95,402 Nam Yang Dairy Products..... 14,000 4,581,364 -- -- -- 5,772 News and Media NZ Limited exchangeable preference shares..................... -- -- -- -- -- 39,019 NSC Groupe.................. -- -- -- -- -- 31,401 Rayonier Inc. .............. 85,000 4,013,046 175,000 8,119,095 1,632,233 2,676,600 Sabeton SA.................. -- -- -- -- -- 7,327 Shaw Brothers (Hong Kong) Limited.................... -- -- -- -- -- 693,988 Societe Sucriere de Pithiviers-le-Vieil........ 3,553 1,404,866 -- -- -- 45,651 'D' 1 for 5 stock split (ex-date July 1, 2002)
(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. 23 FIRST EAGLE SOGEN OVERSEAS FUND -------------- OCTOBER 31, 2002 FUND OVERVIEW -------------- The First Eagle SoGen Overseas Fund seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations. Management's research-driven process seeks to minimize risk by focusing on undervalued securities. - ------------------------- PERFORMANCE COMPARISON: - ------------------------- AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2002
SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (8-31-93) First Eagle SoGen Overseas Fund (A Shares). 5.51% 8.17% 9.78% MSCI EAFE Index.................................... (13.21%) (3.12%) 0.95% Consumer Price Index............................... 2.08% 2.33% 2.47%
[GRAPH]
FIRST EAGLE MSCI CONSUMER SOGEN OVERSEAS EAFE PRICE FUND INDEX INDEX ---- ----- ----- 8/31/93 10000 10000 10000 10/31/93 10055 10076 10055 10/31/94 11685 11093 10317 10/31/95 12338 11052 10607 10/31/96 14129 12209 10925 10/31/97 15313 12775 11153 10/31/98 14733 14007 11311 10/31/99 19095 17233 11601 10/31/00 20790 16734 12001 10/31/01 21209 12562 12257 10/31/02 23555 10902 12512
Performance data quoted herein represents past performance and should not be considered indicative of future results. The average annual returns shown above 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 MSCI EAFE Index returns assume reinvestment of dividends. This is a widely followed index of an unmanaged group of stocks from 20 international markets and is not available for purchase. It is a trademark of Morgan Stanley Capital International SA in Geneva, Switzerland. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households.
- ----------------------------------- TOP 10 HOLDINGS - ----------------------------------- Corporacion Financiera Alba SA (European holding company with stakes in retail, telecom, construction and media) 3.87% Buderus AG (German manufacturer of heating systems) 3.19% Freeport McMoran Copper & Gold Pfd. (Series B, C) (U.S. mining company) 3.15% Shimano Inc. (Japanese manufacturer of bicycle parts) 2.95% EnCana Corp. (Canadian energy company) 2.80% Merck KGaA (German pharmaceutical company) 1.93% Kuehne & Nagel International AG (Swiss freight company) 1.91% Secom Co. Ltd. (Japanese security services company) 1.88% Flughafen Wien AG (Austrian airport operator) 1.66% Pargesa Holdings SA (Swiss holding company) 1.63% - ------------------------------------------- ASSET ALLOCATION - ------------------------------------------- Foreign Stocks 83.55% U.S. Dollar Bonds 3.52% Foreign Currency Bonds 5.43% U.S. Dollar Cash and Equivalents 7.50% - ------------------------------------------- TOP 5 COUNTRIES - ------------------------------------------- Japan 18.90% France 10.19% Germany 8.31% Switzerland 6.15% Spain 4.50%
The Fund's portfolio composition is subject to change at any time. 24 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks (83.55%) Argentina (0.22%) 250,000 Cresud S.A.C.I.F. y A. ADR (a)(4) $ 1,635,631 $ 1,475,000 50,000 Siderca S.A.I.C. ADR (2) 318,288 818,000 -------------- -------------- 1,953,919 2,293,000 -------------- -------------- Australia and New Zealand (4.47%) 20,000,000 Carter Holt Harvey Limited (3) 19,643,548 16,034,700 4,000,000 Spotless Group Limited (16) 9,704,252 11,054,604 385,000 Newmont Mining Corporation Holding Company (23) 5,902,923 9,517,200 1,500,000 News and Media NZ Limited exchangeable preference shares (c)(15) 7,716,051 5,757,915 5,000,000 Capital Properties New Zealand Limited 8 1/2% exchangeable preference shares (18) 3,415,671 2,403,334 5,750,000 Tasman Farms (4) 1,054,354 1,229,327 2,000,000 Evergreen Forests Limited (a)(3) 708,863 515,054 -------------- -------------- 48,145,662 46,512,134 -------------- -------------- Austria (3.22%) 515,000 Flughafen Wien AG (9) 16,834,242 17,277,944 186,200 Brau-Union AG (12) 7,270,838 8,801,695 135,000 BBAG Oesterreichische Brau-Beteiligungs AG (12) 5,108,712 7,378,444 -------------- -------------- 29,213,792 33,458,083 -------------- -------------- Belgium (1.44%) 852,875 Deceuninck (6) 13,593,508 14,944,174 -------------- -------------- Canada (3.50%) 1,000,000 EnCana Corporation (2) 26,654,251 29,100,000 835,000 Repadre Capital Corporation (a)(1) 3,861,871 4,279,308 75,000 Canadian Pacific Railway Limited (9) 594,538 1,485,750 35,000 Fairmont Hotels & Resorts Inc. (18) 311,230 859,600 200,000 Norske Skog Canada Limited (3) 937,734 653,427 -------------- -------------- 32,359,624 36,378,085 -------------- -------------- Chile (0.36%) 1,000,000 Quinenco S.A. ADR (19) 6,197,947 3,795,000 -------------- --------------
25 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Commonwealth of Independent States (0.36%) 352,296 Firebird Fund, L.P. (b)(e)(21) $ 353,178 $ 2,157,390 4,949 Firebird Republic Fund, Ltd. Class `A' (b)(e)(21) 719,082 799,487 9,000 Baltic Republic Fund (b)(e)(21) 275,750 408,600 100,000 First NIS Regional Fund SICAF (21) 1,000,000 348,000 -------------- -------------- 2,348,010 3,713,477 -------------- -------------- Denmark (0.23%) 50,000 Carlsberg A/S `B'(12) 2,033,096 2,343,370 -------------- -------------- France (10.19%) 362,042 Eurazeo (21) 16,769,028 16,128,156 33,300 Societe Sucriere de Pithiviers-le-Vieil (c)(4) 12,125,002 12,065,313 945,000 Vivendi Universal S.A. (15) 13,691,630 11,600,234 355,000 Remy Cointreau (12) 10,476,889 10,704,626 525,000 Wendel Investissement (7) 12,454,293 10,472,434 315,000 Carbone Lorraine SA (10) 9,388,456 7,954,892 95,000 Robertet SA (12) 5,768,827 6,818,281 51,500 Robertet SA C.I. (a)(12) 2,151,628 2,497,119 75,000 Sagem ADP (10) 2,271,236 3,823,682 1,350,000 FINEL (a)(b)(e)(3) 2,277,010 3,501,453 119,667 Laurent-Perrier (12) 3,307,625 3,493,514 125,000 Legris Industries S.A. (7) 2,535,315 2,585,007 55,000 Gaumont SA (a)(15) 2,424,611 2,395,679 25,500 NSC Groupe (7) 4,290,363 2,274,460 70,000 Societe BIC SA (12) 2,518,947 2,189,769 21,237 Taittinger C.I. (a)(19) 1,097,423 1,639,838 57,750 Conflandey (c)(1) 1,892,774 1,600,749 40,000 Crometal SA (7) 2,083,977 1,187,940 95,000 Sabeton SA (19) 1,404,739 968,666 8,760 Societe du Louvre Reg D (15) 449,229 484,329 8,780 Rougier SA (3) 471,477 422,420 7,000 Burelle SA (5) 299,839 417,858 15,000 Societe Francaise des Papiers Peints (a)(c)(12) 741,390 303,519 415 Societe Vermandoise de Sucreries (4) 330,866 295,386 3,112 Didot-Bottin (19) 242,025 244,455 -------------- -------------- 111,464,599 106,069,779 -------------- --------------
26 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Germany (8.31%) 1,510,000 Buderus AG (7) $ 25,989,933 $ 33,185,104 938,500 Merck KGaA (14) 23,086,014 20,067,870 205,000 Hornbach Holding AG Pfd. (c)(13) 10,554,063 10,349,927 345,000 Vossloh AG (6) 6,726,451 8,213,863 335,000 Bayer AG (8) 8,247,018 6,400,522 425,000 Suedzucker AG (4) 6,779,054 5,721,911 56,432 Axel Springer Verlag AG (15) 2,514,850 2,513,919 -------------- -------------- 83,897,383 86,453,116 -------------- -------------- Hong Kong (1.78%) 17,003,500 Shaw Brothers (Hong Kong) Limited (15) 16,069,289 13,189,711 4,000,000 Cafe de Coral Holdings Limited (19) 1,498,162 2,615,603 8,500,000 Lerado Group Holding Company Limited (12) 1,291,205 1,318,700 11,250,000 City e-Solutions Limited (a)(16) 336,425 807,760 8,750,000 China-Hong Kong Photo Products Holdings Limited (12) 746,584 572,163 -------------- -------------- 19,941,665 18,503,937 -------------- -------------- India (0.00%) 10,000 The Spartek Emerging Opportunities of India Fund (b)(e)(21) 1,035,000 10,898 -------------- -------------- Ireland (0.36%) 6,500,000 Waterford Wedgwood plc (12) 4,056,985 2,895,604 350,000 Greencore Group (12) 900,084 900,855 -------------- -------------- 4,957,069 3,796,459 -------------- -------------- Israel (0.01%) 70,000 Super-Sol (13) 129,090 140,645 -------------- -------------- Italy (1.89%) 1,525,000 Italcementi S.p.A. (6) 7,483,611 7,291,724 385,000 Italmobiliare S.p.A. (6) 7,829,109 7,222,428 2,094,668 Gewiss S.p.A (10) 6,250,790 5,204,778 -------------- -------------- 21,563,510 19,718,930 -------------- -------------- Japan (18.90%) 2,085,000 Shimano Inc. (12) 29,776,603 30,696,778 555,000 Secom Company, Limited (16) 26,052,511 19,601,550
27 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Japan -- (continued) 500,000 Ono Pharmaceutical Company, Limited (14) $ 17,320,480 $ 15,742,251 3,475,000 Nipponkoa Insurance Company, Limited (17) 12,952,366 12,102,977 1,000,000 Toho Company, Limited (12) 11,129,642 10,106,036 434,990 Mandom Corporation (12) 5,181,090 8,568,522 275,000 Fuji Photo Film Company, Limited (12) 7,979,588 7,581,566 500,000 Daiichi Pharmaceutical Corporation (14) 9,064,152 7,300,163 3,125,000 Aioi Insurance Company, Limited (17) 8,281,083 6,678,222 1,000,000 Makita Corporation (12) 7,356,578 6,386,623 600,000 Shoei Company, Limited (19) 5,579,022 6,362,153 500,000 Chofu Seisakusho Company, Limited (7) 7,048,809 6,358,075 750,000 Wacoal Corporation (12) 6,245,284 6,343,801 1,500,000 Mitsui Sumitomo Insurance Company, Limited (17) 8,083,906 6,227,569 478,100 T. Hasegawa Company, Limited (12) 4,365,442 5,884,608 185,000 SK Kaken Company Limited (8) 3,497,875 4,919,250 955,400 Tachi-S Company, Limited (5) 8,141,244 4,753,622 869,730 Sotoh Company, Limited (c)(12) 6,976,995 4,646,600 400,000 Nitto Kohki Company, Limited (7) 4,904,435 4,469,821 1,625,000 Okumura Corporation (16) 6,910,452 4,771,615 2,000,000 Aida Engineering, Limited (7) 8,267,911 3,980,424 555,300 Yomeishu Seizo Company, Limited (12) 3,574,145 3,668,785 80,000 ASAHI Broadcasting Corporation (15) 5,425,722 3,034,258 500,000 Mitsubishi Securities Company, Limited (17) 3,239,564 2,487,765 325,000 Sonton Food Industry Company, Limited (12) 3,298,777 2,213,499 1,000,000 Iino Kaiun Kaisha, Limited (9) 2,094,108 1,753,670 -------------- -------------- 222,747,784 196,640,203 -------------- -------------- Mexico (1.60%) 10,550,000 Industrias Penoles, S.A. de C.V. (1) 19,877,372 15,770,565 500,000 Grupo Industrial Saltillo, S.A. de C.V. (5) 1,469,358 923,833 -------------- -------------- 21,346,730 16,694,398 -------------- --------------
28 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Netherlands (2.22%) 1,000,000 Randstad Holding NV (16) $ 9,211,763 $ 9,998,495 205,000 OPG Groep NV (14) 4,999,299 8,208,913 225,000 Holdingmaatschappij de Telegraaf NV (15) 3,887,240 3,419,040 75,000 Koninklijke Grolsch NV (12) 1,563,162 1,456,711 -------------- -------------- 19,661,464 23,083,159 -------------- -------------- Singapore (1.00%) 20,000,000 Del Monte Pacific Limited (12) 4,700,784 4,924,714 1,000,000 Haw Par Corporation Limited (19) 1,572,498 2,298,200 495,000 Fraser & Neave Limited (19) 1,706,523 2,157,534 1,000,000 Delgro Corporation Limited (19) 547,327 1,018,906 -------------- -------------- 8,527,132 10,399,354 -------------- -------------- South Korea (3.83%) 25,360 Lotte Confectionery Company, Limited (12) 7,552,379 10,094,254 1,250,155 Daeduck Electronics Company (10) 9,800,642 9,982,848 519,750 Daeduck GDS Company, Limited (10) 2,689,780 4,864,027 22,950 Nam Yang Dairy Products (12) 4,912,653 5,627,299 28,850 Nam Yang Dairy Products Pfd. (12) 479,094 3,401,400 600,000 Fursys Inc. (12) 2,265,593 3,972,211 650,000 Dong Ah Tire & Rubber Company, Limited (5) 3,209,245 1,941,765 -------------- -------------- 30,909,386 39,883,804 -------------- -------------- Spain and Portugal (4.92%) 2,025,000 Corporacion Financiera Alba SA (19) 43,878,290 40,313,486 1,125,000 Energia e Industrias Aragonesas EIA, SA (8) 5,323,726 5,991,672 325,000 Espirito Santo Financial Group SA ADR (17) 5,397,449 4,875,000 -------------- -------------- 54,599,465 51,180,158 -------------- -------------- Sweden (0.15%) 925,000 Gorthon Lines AB `B' (c)(9) 2,761,593 1,564,700 -------------- -------------- Switzerland (6.15%) 350,000 Kuehne & Nagel International AG (9) 15,129,959 19,837,913 10,444 Pargesa Holding AG (17) 21,221,012 17,013,202 23,500 Sika Finanz AG (6) 5,018,182 5,566,459 9,750 Hilti AG (12) 6,453,438 5,443,794
29 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - -------------------------------------------------------------------------------- Common and Preferred Stocks -- (continued) Switzerland -- (continued) 17,500 Edipresse SA (15) $ 3,562,244 $ 5,092,718 3,000 Metall Zug PC AG (20) 3,115,394 3,065,782 58 Metall Zug AG (20) 551,136 569,166 5,500 Lindt & Sprungli PC AG (12) 2,256,442 2,985,246 150 Lindt & Sprungli AG (12) 937,536 873,037 7,000 Societe Generale d'Affichage (15) 2,295,843 2,558,202 6,500 PubliGroupe SA (15) 934,993 989,781 -------------- -------------- 61,476,179 63,995,300 -------------- -------------- Thailand (0.13%) 231,000 The Oriental Hotel Public Company Limited (18) 1,012,719 1,343,922 -------------- -------------- United Kingdom (3.56%) 1,714,212 Spirax-Sarco Engineering plc (7) 9,848,006 10,458,006 2,000,000 IMI plc (20) 7,163,381 8,149,998 5,825,000 Enodis plc (a)(7) 6,718,635 4,692,701 2,000,000 J.Z. Equity Partners, plc (21) 4,161,974 3,347,600 3,540,366 McBride plc (12) 4,757,483 3,267,533 1,000,000 Millennium & Copthorne Hotel plc (18) 3,315,262 3,128,598 1,650,000 Aggregate Industries plc (6) 1,504,320 1,871,293 100,000 Antofagasta Holdings plc (20) 274,913 815,000 315,000 Trans-Siberian Gold Limited (23) 750,000 788,407 8,000,000 Royal Doulton plc (a)(12) 4,800,998 531,862 -------------- -------------- 43,294,972 37,050,998 -------------- -------------- Miscellaneous (4.75%) 1,865,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a)(23) 29,669,978 22,753,000 425,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (a)(d)(23) 7,554,601 10,072,500 1,350,000 Amdocs Limited (15) 10,423,627 9,423,000 500,000 InterTAN, Inc. (a)(13) 5,307,185 3,550,000 160,140 Security Capital European Realty (a)(e)(18) 3,202,800 2,991,415 5,000 M.J. Whitman Global Value L.P. (b)(e)(21) 500,000 659,430 -------------- -------------- 56,658,191 49,449,345 -------------- -------------- Total Common and Preferred Stocks 901,829,489 869,416,428 -------------- --------------
30 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - -------------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds (8.95%) U.S. Dollar Convertible Bonds (2.45%) $1,000,000 HSBC Gold-Linked Note 0% due 5/15/2003 (a)(d)(e)(23) $ 1,000,000 $ 1,007,700 4,000,000 UBS Gold-Linked Note 0% due 5/23/2003 (a)(d)(e)(23) 4,000,000 4,109,640 200,000 HSBC Gold-Linked Note 0% due 6/04/2003 (a)(d)(e)(23) 200,000 189,520 5,000,000 HSBC Gold-Linked Note 0% due 6/19/2003 (a)(d)(e)(23) 5,000,000 4,871,500 3,650,000 UBS Gold-Linked Note 0% due 6/19/2003 (a)(d)(e)(23) 3,650,000 3,569,226 3,000,000 HSBC Gold-Linked Note 0% due 6/24/2003 (a)(d)(e)(23) 3,000,000 2,938,500 2,250,000 HSBC Gold-Linked Note 0% due 6/26/2003 (a)(d)(e)(23) 2,250,000 2,179,125 3,000,000 HSBC Gold-Linked Note 0% due 7/15/2003 (a)(d)(e)(23) 3,000,000 3,035,100 1,650,000 HSBC Gold-Linked Note 0% due 7/18/2003 (a)(d)(e)(23) 1,650,000 1,641,420 1,000,000 HSBC Gold-Linked Note 0% due 7/22/2003 (a)(d)(e)(23) 1,000,000 977,300 1,000,000 HSBC Gold-Linked Note 0% due 7/25/2003 (a)(d)(e)(23) 1,000,000 982,000 2,000,000 Medya International Limited 10% due 6/28/2049 (a)(e)(f)(15) 1,987,057 20,000 -------------- -------------- 27,737,057 25,521,031 -------------- -------------- U.S. Dollar Bonds and Notes (1.07%) 2,456,000 P.T. Pabrik Kertas Tjiwi-Kimia 10% due 8/01/2004 (a)(f)(3) 1,868,854 681,540 4,000,000 Amdocs Limited 2% due 6/01/2008 (15) 3,548,755 3,585,000 1,000,000 YPF Sociedad Anonima 9 1/8% due 2/24/2009 (2) 725,752 732,500 1,000,000 United Mexican States 9 7/8% due 2/01/2010 (22) 1,107,500 1,168,750 1,000,000 Grupo Televisa S.A. 8% due 9/13/2011 (15) 977,880 1,010,000 4,000,000 Bangkok Bank Public Company 9.025% due 3/15/2029 (b)(17) 2,600,617 3,950,000 -------------- -------------- 10,829,358 11,127,790 -------------- -------------- Non U.S. Dollar Convertible Bonds (0.44%) EUR 60,000 Havas Advertising 1% due 1/01/2006 (15) 1,025,035 1,142,798 EUR 243,500 Havas Advertising 4% due 1/01/2009 (15) 1,986,854 2,283,976
31 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - -------------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - -------------------------------------------------------------------------------- Bonds, Notes and Convertible Bonds -- (continued) Non U.S. Dollar Convertible Bonds -- (continued) NZD 1,775,277 Evergreen Forest Limited 0% due 3/19/2009 (a)(c)(3) $ 943,678 $ 1,112,763 -------------- -------------- 3,955,567 4,539,537 -------------- -------------- Non U.S. Dollar Bonds and Notes (4.99%) EUR 16,017,159 Vivendi Universal S.A. 6.7% due 6/21/2006 (15) 11,514,084 13,636,321 AUD 10,000,000 Queensland Treasury Corporation 8% due 9/14/2007 (22) 5,935,361 6,176,039 CAD 12,000,000 Shaw Communications Inc. 7.4% due 10/17/2007 (15) 7,452,062 6,233,312 EUR 1,500,000 Sola International Inc. 11% due 3/15/2008 (14) 1,428,198 1,418,103 EUR 9,293,416 Republic of France O.A.T./i 3% due 7/25/2009 (22) 7,973,883 9,254,297 EUR 3,000,000 Prosieben Media 11 1/4% due 7/31/2009 (15) 2,749,963 2,851,056 EUR 1,000,000 Flowserve Finance B.V. 12 1/4% due 8/15/2010 (7) 1,010,034 1,029,548 EUR 15,000,000 Republic of South Africa 13% due 8/31/2010 (c)(22) 1,198,957 1,607,283 EUR 3,350,000 The Manitowoc Company, Inc. 10 3/8% due 5/15/2011 (7) 3,152,742 3,167,097 GBP 4,335,000 Enodis plc 10 3/8% due 4/15/2012 (7) 6,371,653 6,594,752 -------------- -------------- 48,786,937 51,967,808 -------------- -------------- Total Bonds, Notes and Convertible Bonds 91,308,919 93,156,166 -------------- -------------- Short-Term Investments (7.35%) $ 3,698,000 American Express Credit Corporation 1.72% due 11/01/2002 3,698,000 3,698,000 21,723,000 Dow Chemical Incorporated 1.8% due 11/01/2002 21,723,000 21,723,000 27,170,000 GMAC 1.74% due 11/01/2002 27,167,100 27,167,100 23,895,000 Kraft Foods 1.74% due 11/05/2002 23,890,380 23,890,380 -------------- -------------- Total Short-Term Investments 76,478,480 76,478,480 -------------- -------------- Total Investments (99.85%) $1,069,616,888* 1,039,051,074** -------------- -------------- Other assets in excess of liabilities (0.15%) 1,595,341 -------------- Net Assets (100.00%) $1,040,646,415 -------------- --------------
- --------- * At October 31, 2002, the cost of investments for federal income tax purposes equals $1,101,530,262. ** Gross unrealized appreciation and depreciation of securities at October 31, 2002, based on cost for federal income tax purposes, were $66,738,199 and $129,217,387 respectively (net depreciation was $62,479,188). 32 FIRST EAGLE SOGEN OVERSEAS FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
Foreign Currencies Industry Classifications - ------------------ ------------------------ EUR -- Euro (1) Metals and Minerals (13) Retail NZD -- New Zealand Dollar (2) Energy (14) Health Care AUD -- Australian Dollar (3) Paper and Forest Products (15) Media CAD -- Canadian Dollar (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 October 31, 2002. - ------------------------------------------------------------------------------------------ Purchases Sales ---------------------- ---------------- Realized Dividend Affiliate Shares Cost Shares Cost Gain/Loss Income - ------------------------------------------------------------------------------------------ Conflandey 'D'........ 34,250 $ 607,825 -- -- -- $12,255 Evergreen Forest Limited 0% due 3/19/2009............ 458,467 229,552 -- -- -- -- Gorthon Lines AB `B'.................. -- -- -- -- -- 13,404 Hornbach Holding AG Pfd.................. -- -- -- -- -- 34,747 News and Media NZ Limited exchangeable preference shares.... 75,000 264,316 -- -- -- 17,651 Societe Francaise des Papiers Peints....... -- -- -- -- -- -- Societe Sucriere de Pithiviers-le-Vieil... 12,800 4,960,242 -- -- -- 44,445 Sotoh Company, Limited.............. 120,000 688,163 -- -- -- 4,650
'D' Interfund transfer on trade date November 21, 2001 from the First Eagle SoGen Global Fund. (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. 33 FIRST EAGLE U.S. VALUE FUND -------------- OCTOBER 31, 2002 FUND OVERVIEW -------------- The First Eagle U.S. Value Fund seeks long-term growth of capital by investing primarily in equities issued by U.S. corporations. The Fund will consist of mostly small and medium size U.S. companies. Management utilizes a highly disciplined, bottom-up, value approach in achieving its investment objective. - ------------------------- PERFORMANCE COMPARISON: - -------------------------
AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2002 SINCE ONE-YEAR INCEPTION -------- --------- (09-04-01) First Eagle U.S. Value Fund (A Shares) without sales load..................................... 4.12% 4.98% with sales load........................................ (0.77%) 0.23% Russell 2000 Index....................................... (11.57%) (16.41%)
Performance data quoted herein represents past performance and should not be considered indicative of future results. The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. The average annual returns for Class A Shares with a sales load gives effect to the deduction of the maximum sales load of 5.00%. 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.
- ----------------------------------- TOP 10 HOLDINGS - ----------------------------------- ProLogis (REIT) 3.44% Liberty Media Corp. (media company) 3.26% CalEnergy Capital Trust 6 1/2% Conv. Pfd. (energy company) 3.25% McDonald's Corp. (restaurant franchise) 3.00% Rayonier Inc. (forest products) 3.00% Deltic Timber Corp (forest products) 2.50% Newmont Mining Corp. (mining company) 2.34% Tyco International Ltd. (industrial conglomerate) 2.28% Schering-Plough Corp. (pharmaceutical company) 2.02% J.Z. Equity Partners plc (investment trust company) 1.98% - ------------------------------------------- ASSET ALLOCATION - ------------------------------------------- U.S. Stocks 61.08% U.S. Dollar Bonds 12.70% Foreign Stocks 2.90% Foreign Currency Bonds 0.75% U.S. Dollar Cash and Equivalents 22.57% - ------------------------------------------- TOP 5 SECTORS - ------------------------------------------- Retail 7.89% Forest Products 7.19% Energy 5.40% Consumer Products 5.40% Capital Goods 4.81%
The Fund's portfolio composition is subject to change at any time. 34 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. (61.08%) Capital Goods (4.81%) 100,000 Tyco International Limited $ 2,210,850 $ 1,446,000 20,000 Franklin Electric Company, Inc. 790,265 879,200 105,850 Columbus McKinnon Corporation 995,392 514,431 10,000 Sealed Air Corporation $2 Conv. Pfd., Series `A' 389,642 206,000 ----------- ----------- 4,386,149 3,045,631 ----------- ----------- Chemicals (1.58%) 20,000 Vulcan Materials 663,736 671,200 70,000 Ethyl Corporation (a) 401,128 328,300 ----------- ----------- 1,064,864 999,500 ----------- ----------- Consumer Products (5.40%) 40,000 Barnes and Noble Inc. (a) 849,234 844,000 18,000 Philip Morris Companies, Inc. 877,898 733,500 20,000 Weyco Group, Inc. 603,980 712,500 22,000 Dole Food Company, Inc. 494,886 646,360 10,000 Furniture Brands International (a) 197,550 226,100 5,000 Allen Organ Company 190,550 192,100 2,252 Jostens, Inc., Class `A' (a) 21,837 43,633 600 St. John Knits International Inc. (a) 18,600 19,650 ----------- ----------- 3,254,535 3,417,843 ----------- ----------- Energy (5.40%) 60,000 Kaneb Services LLC 1,191,750 1,113,000 10,000 Murphy Oil Corporation 775,200 838,300 20,000 Burlington Resources, Inc. 770,541 824,000 50,000 CONSOL Energy, Inc. 1,110,179 645,000 ----------- ----------- 3,847,670 3,420,300 ----------- ----------- Financial Company (2.71%) 15 Berkshire Hathaway Inc., Class `A' (a) 1,021,716 1,112,850 16,000 Leucadia National Company 503,879 600,160 ----------- ----------- 1,525,595 1,713,010 ----------- ----------- Forest Products (7.19%) 45,000 Rayonier Inc. 1,993,595 1,898,100 60,000 Deltic Timber Corporation 1,695,981 1,582,800 25,000 Plum Creek Timber Company 570,983 565,250 20,000 Greif Bros. Corporation, Class `A' (a) 568,990 507,800 ----------- ----------- 4,829,549 4,553,950 ----------- ----------- Health Care (3.48%) 60,000 Schering-Plough Corporation 1,369,323 1,281,000 25,000 DENTSPLY International, Inc. 747,925 923,000 ----------- ----------- 2,117,248 2,204,000 ----------- -----------
35 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ---------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ---------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Media (4.40%) 250,000 Liberty Media Corporation (a) $ 2,451,458 $ 2,067,500 55,000 General Motors Corporation -- Class `H' (a) 724,503 541,750 15,000 The Interpublic Group of Companies, Inc. 295,760 179,550 ----------- ----------- 3,471,721 2,788,800 ----------- ----------- Precious Metals (4.24%) 60,000 Newmont Mining Corporation Holding Company 1,170,587 1,483,200 75,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a) 1,005,622 915,000 280 Case Pomeroy & Co., Inc. Class `A' 266,000 283,920 ----------- ----------- 2,442,209 2,682,120 ----------- ----------- Real Estate (3.44%) 90,000 ProLogis 1,810,056 2,178,000 ----------- ----------- Retail (7.89%) 105,000 McDonald's Corporation 2,748,808 1,901,550 25,000 The Sherwin-Williams Company 564,886 683,750 40,000 Seneca Food Corporation (a) 586,200 560,400 20,000 Tiffany & Company 429,113 523,600 30,000 Hancock Fabrics, Inc. 229,949 477,000 17,500 Papa John's International Inc. (a) 471,775 455,525 17,000 The May Department Stores Company 522,898 396,950 ----------- ----------- 5,553,629 4,998,775 ----------- ----------- Services (3.15%) 22,500 Chemed Corporation 644,292 793,125 30,000 Waste Management Inc. 832,950 690,600 15,000 Manpower Inc. 386,114 511,500 ----------- ----------- 1,863,356 1,995,225 ----------- ----------- Technology (2.36%) 150,000 Earthlink, Inc. (a) 1,438,150 915,000 45,000 American Power Conversion Corporation (a) 539,590 581,400 ----------- ----------- 1,977,740 1,496,400 ----------- ----------- Telecommunications (0.64%) 8,000 Telephone & Data Systems, Inc. 741,098 407,200 ----------- ----------- Transportation (0.81%) 20,000 Burlington Northern Santa Fe Corporation 537,599 514,600 ----------- -----------
36 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Number Cost Value of Shares (Note 1) (Note 1) - ----------------------------------------------------------------------------- Common and Preferred Stocks -- U.S. -- (continued) Utilities (3.58%) 50,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. $ 2,001,563 $ 2,056,250 7,000 IDACORP, Inc. 264,921 182,070 65,000 Touch America Holdings Inc. (a) 421,918 28,600 ----------- ----------- 2,688,402 2,266,920 ----------- ----------- Common Stock -- Non U.S. (2.90%) Canada (0.92%) 20,000 EnCana Corporation (2) 549,956 582,000 ----------- ----------- United Kingdom (1.98%) 750,000 J.Z. Equity Partners plc (10) 1,499,247 1,255,350 ----------- ----------- Total Common and Preferred Stocks 44,160,623 40,519,624 ----------- -----------
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Bonds and Notes (13.45%) U.S. Dollar Bonds and Notes (12.70%) $ 670,000 Blount International Inc. 7% due 6/15/2005 (6) 583,953 559,450 550,000 Columbus McKinnon Corporation 8 1/2% due 4/01/2008 (6) 517,447 398,750 1,500,000 Level 3 Communications 9 1/8% due 5/01/2008 (4) 656,254 855,000 275,000 Longview Fibre Company 10% due 1/15/2009 (3) 290,125 284,625 250,000 Crescent Real Estate Equities Company 9 1/4% due 4/15/2009 (9) 250,000 250,359 500,000 American Standard Inc. 8 1/4% due 6/01/2009 (5) 530,000 530,625 1,000,000 Blount International Inc. 13% due 8/01/2009 (6) 506,501 550,000 500,000 Jostens Inc. 12 3/4% due 5/01/2010 (7) 558,375 557,500 995,000 Flowserve Corporation 12 1/4% due 8/15/2010 (b)(6) 1,130,322 1,059,675 1,000,000 Briggs & Stratton Corporation 8 7/8% due 3/15/2011 (7) 1,062,000 1,055,000 850,000 Steinway Musical Instruments 8 3/4% due 4/15/2011 (7) 859,750 853,188 550,000 Potlatch Corporation 10% due 7/15/2011 (3) 592,063 605,000 600,000 Bausch and Lomb Inc. 7 1/8% due 8/01/2028 (8) 503,606 484,085 ----------- ----------- 8,040,396 8,043,257 ----------- ----------- Non U.S. Dollar Bond (0.75%) EUR 500,000 Sola International Inc. 11% due 3/15/2008 (8) 474,342 472,701 ----------- ----------- Total Bonds and Notes 8,514,738 8,515,958 ----------- -----------
37 FIRST EAGLE U.S. VALUE FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002
- ----------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ----------------------------------------------------------------------------- Short-Term Investments (23.11%) $ 2,995,000 Dow Chemical Inc. 1.80% due 11/01/2002 $ 2,995,000 $ 2,995,000 2,995,000 GMAC 1.74% due 11/01/2002 2,995,000 2,995,000 2,657,000 United Parcel Service 1.55% due 11/01/2002 2,657,000 2,657,000 2,995,000 Philip Morris Capital Corporation 1.77% due 11/04/2002 2,994,558 2,994,558 2,995,000 Diageo Capital plc 1.77% due 11/06/2002 2,994,263 2,994,263 ----------- ----------- Total Short-Term Investments 14,635,821 14,635,821 ----------- ----------- Total Investments (100.54%) $67,311,182* 63,671,403** ----------- ----------- Liabilities in excess of other assets (-0.54%) (341,498) ----------- Net assets (100.00%) $63,329,905 ----------- -----------
- --------- * At October 31, 2002, the cost of investments is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at October 31, 2002, based on cost for federal income tax purposes, were $2,706,194 and $6,345,973, respectively (net depreciation was $3,639,779). Foreign Currency - ---------------- EUR -- Euro Industry Classifications - ------------------------ (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. 38 FIRST EAGLE SOGEN GOLD FUND OCTOBER 31, 2002 -------------- FUND OVERVIEW The First Eagle SoGen Gold Fund's investment objective is growth of capital. To achieve its objective, the Fund invests primarily in securities of companies engaged in mining, processing, dealing in or holding gold or other precious metals such as silver, platinum and palladium, both in the United States and in foreign countries. - ------------------------- PERFORMANCE COMPARISON:
AVERAGE ANNUAL RATES OF RETURN AS OF OCTOBER 31, 2002 SINCE ONE-YEAR FIVE-YEAR INCEPTION -------- --------- --------- (08-31-93) First Eagle SoGen Gold Fund........................ 62.17% 6.70% 2.82% Financial Times Gold Mines Index................... 27.30% (2.91%) (5.95%) Consumer Price Index............................... 2.08% 2.33% 2.47%
[GRAPH] First Eagle MCSI Consumer SoGen Gold Fund World Index Price Index 10/31/92 $10,000.0 $10,000.0 $10,000.0 10/31/93 10,055.0 10,494.0 10,055.0 10/31/94 11,733.0 11,467.0 10,317.0 10/31/95 10,984.0 9,164.0 10,607.0 10/31/96 11,746.0 9,987.0 10,925.0 10/31/97 8,990.0 6,604.0 11,153.0 10/31/98 7,314.0 5,920.0 11,311.0 10/31/99 7,304.0 5,211.0 11,601.0 10/31/00 5,214.0 3,150.0 12,001.0 10/31/01 7,570.0 4,474.0 12,257.0 10/31/02 12,923.0 5,695.0 12,512.0 Performance data quoted herein represents past performance and should not be considered indicative of future results. The average annual returns shown above 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 FT 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 Freeport McMoRan Cooper & Gold Inc. Pfd (Series B, C, & D) (United States) 9.04% Newmont Mining Corp. (United States) 8.93% Repadre Capital Corp. (Canada) 4.52% Barrick Gold Corp. (Canada) 4.26% Gold Fields Limited ADR (South Africa) 4.18% Industrias Penoles, S.A. de C.V. (Mexico) 4.06% Agnico-Eagle Mines Ltd. (Canada) 3.69% Placer Dome Inc. (Canada) 3.61% Harmony Gold Mining Co. Ltd. ADR (South Africa) 3.55% Glamis Gold Ltd. (Canada) 3.48% - -------------------------------------------- ASSET ALLOCATION Foreign Stocks 61.24% U.S. Stocks 19.53% Gold-Linked Notes 10.26% Foreign Currency Bonds 1.42%
U.S. Dollar Cash and Equivalents 7.55% - -------------------------------------------- TOP 5 COUNTRIES Canada 39.96% United States 29.79% South Africa 13.92% Latin America 6.33% Australia 2.16%
The Fund's portfolio composition is subject to change at any time. 39 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS October 31, 2002 - ------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) - ------------------------------------------------------------------------------ Common and Preferred Stocks (80.77%) Australia (2.16%) 195,000 Normandy NFM Limited $ 2,190,263 $ 1,946,792 ----------- ----------- Canada (38.54%) 795,000 Repadre Capital Corporation (a) 2,953,303 4,074,311 255,000 Barrick Gold Corporation 4,208,533 3,842,850 275,000 Agnico-Eagle Mines Limited 3,784,684 3,324,750 375,000 Placer Dome Inc. 3,990,145 3,251,250 385,000 Glamis Gold Limited (a) 2,376,006 3,133,900 195,000 Meridian Gold Inc. (a) 2,307,419 3,115,503 3,275,000 Miramar Mining Corporation (a) 3,022,172 2,496,637 230,000 TVX Gold Inc. (a) 1,367,450 2,454,319 255,000 Goldcorp Inc. 828,043 2,450,352 645,000 IAMGOLD Corporation 2,242,709 2,103,171 515,000 Richmont Mines, Inc. (a) 1,395,805 1,821,140 800,000 Kinross Gold Corporation (a) 1,365,188 1,320,000 1,100,000 Wheaton River Minerals Limited (a) 835,623 683,536 262,500 Wheaton River Warrants -- 70,628 315,000 Golden Star Resources Limited (a) 176,400 418,950 30,000 Pan American Silver Corporation (a) 119,370 165,471 ----------- ----------- 30,972,850 34,726,768 ----------- ----------- South Africa (13.92%) 342,500 Gold Fields Limited ADR 2,282,997 3,767,500 245,000 Harmony Gold Mining Company Limited ADR 1,888,305 3,202,150 100,000 Anglogold Limited ADR 2,562,951 2,517,000 38,500 Impala Platinum Holdings Limited 2,102,090 2,215,910 165,000 Randgold and Exploration Limited (a) 853,379 777,150 1,500,000 JCI Limited (a) 213,392 58,557 ----------- ----------- 9,903,114 12,538,267 ----------- ----------- United States (19.53%) 662,875 Newmont Mining Corporation Holding Company 7,836,030 8,044,415 195,000 Freeport McMoRan Copper & Gold Inc., Preferred Series `C' (b) 5,134,243 4,621,500 212,500 Freeport McMoRan Copper & Gold Inc., Preferred Series `D' (b) 2,218,822 1,636,250 57,500 Freeport McMoRan Copper & Gold Inc., Preferred Series `B' (b) 1,710,201 1,581,250 25,000 Freeport McMoRan Copper & Gold Inc., Class `B' (a) 395,097 305,000 65,000 Royal Gold, Inc. 243,531 1,150,500 200,000 Apollo Gold Corporation (a) 160,000 262,660 ----------- ----------- 17,697,924 17,601,575 ----------- ----------- United Kingdom (0.29%) 105,000 Trans-Siberian Gold Limited (a) 250,000 262,802 ----------- -----------
40 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - ------------------------------------------------------------------------------ Number Cost Value of Shares (Note 1) (Note 1) - ------------------------------------------------------------------------------ Common and Preferred Stocks -- (continued) Miscellaneous (6.33%) 2,450,000 Industrias Penoles, S.A. de C.V. $ 4,370,127 $ 3,662,359 135,000 Apex Silver Mines Limited 2,049,595 1,957,500 766,806 Compania Minera Arcata S.A. (a) 514,222 87,237 ----------- ----------- 6,933,944 5,707,096 ----------- ----------- Total Common and Preferred Stocks 67,948,095 72,783,300 ----------- -----------
- ---------------------------------------------------------------------------- Principal Cost Value Amount (Note 1) (Note 1) - ---------------------------------------------------------------------------- Notes and Convertible Bonds (11.68%) U.S. Dollar Notes (10.26%) $ 1,500,000 HSBC Gold-Linked Note 0% due 4/09/2003 (a)(b)(c) 1,500,000 1,567,500 250,000 HSBC Gold-Linked Note 0% due 5/05/2003 (a)(b)(c) 250,000 257,700 385,000 HSBC Gold-Linked Note 0% due 5/15/2003 (a)(b)(c) 385,000 387,965 450,000 HSBC Gold-Linked Note 0% due 5/29/2003 (a)(b)(c) 450,000 442,215 800,000 HSBC Gold-Linked Note 0% due 6/04/2003 (a)(b)(c) 800,000 758,080 100,000 HSBC Gold-Linked Note 0% due 6/19/2003 (a)(b)(c) 100,000 97,430 750,000 HSBC Gold-Linked Note 0% due 6/26/2003 (a)(b)(c) 750,000 726,375 350,000 HSBC Gold-Linked Note 0% due 7/18/2003 (a)(b)(c) 350,000 348,180 1,000,000 HSBC Gold-Linked Note 0% due 7/22/2003 (a)(b)(c) 1,000,000 977,300 1,000,000 HSBC Gold-Linked Note 0% due 7/25/2003 (a)(b)(c) 1,000,000 982,000 2,300,000 UBS Gold-Linked Note 0% due 5/23/2003 (a)(b)(c) 2,300,000 2,363,043 350,000 UBS Gold-Linked Note 0% due 6/19/2003 (a)(b)(c) 350,000 342,255 ----------- ----------- 9,235,000 9,250,043 ----------- ----------- Non U.S. Dollar Convertible Bond (1.42%) CAD 2,430,000 Kinross Gold Corporation 5 1/2% 12/05/2006 (a) 1,092,215 1,276,489 ----------- ----------- Total Notes and Convertible Bonds 10,327,215 10,526,532 ----------- -----------
41 FIRST EAGLE SOGEN GOLD FUND SCHEDULE OF INVESTMENTS -- (Continued) October 31, 2002 - ------------------------------------------------------------------------------ Principal Cost Value Amount (Note 1) (Note 1) - ------------------------------------------------------------------------------ Short-Term Investments (7.35%) $ 2,438,000 American Express Credit Corporation 1.72% due 11/01/2002 $ 2,438,000 $ 2,438,000 2,299,000 Dow Chemical Corporation 1.8% due 11/01/2002 2,299,000 2,299,000 1,887,000 Philip Morris 1.77% due 11/04/2002 1,886,722 1,886,722 ----------- ----------- Total Short-Term Investments 6,623,722 6,623,722 ----------- ----------- Total Investments (99.80%) $84,899,032* 89,933,554** ----------- ----------- Other assets in excess of liabilities (0.20%) 182,346 ----------- Net assets (100.00%) $90,115,900 ----------- -----------
- --------- * At October 31, 2002, the cost of investments for federal income tax purposes equals $86,123,062. ** Gross unrealized appreciation and depreciation of securities at October 31, 2002, based on cost for federal income tax purposes, were $9,848,632 and $6,038,138, respectively (net appreciation was $3,810,494). Foreign Currency - ---------------- CAD -- Canadian Dollar (a) Non-income producing security. (b) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (c) Security for which there are less than three market makers. - --------- See Notes to Financial Statements. 42 [THIS PAGE IS INTENTIONALLY BLANK] 43 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF ASSETS AND LIABILITIES October 31, 2002
- ----------------------------------------------------------------------------- First Eagle SoGen Global Fund - ----------------------------------------------------------------------------- Assets: Investments, at value (cost: $1,895,185,914, $1,069,616,888, $67,311,182 and $84,899,032 respectively) (Note 1)............................... $1,971,697,296 Cash................................................... 3,341,988 Foreign cash........................................... 16,791 Receivable for forward currency contracts held, at value (Notes 1 and 6)................................ 959,028 Receivable for investment securities sold.............. 2,465,063 Receivable for Fund shares sold........................ 5,444,997 Receivable from Adviser (Note 2)....................... -- Accrued interest and dividends receivable.............. 11,635,736 -------------- Total Assets......................................... 1,995,560,899 -------------- Liabilities: Payable for Fund shares redeemed....................... 1,885,917 Payable for investment securities purchased............ 11,890,598 Payable for forward currency contracts held, at value (Notes 1 and 6)...................................... 5,101,361 Investment advisory fees payable (Note 2).............. 1,227,300 Distribution fees payable (Note 3)..................... 451,999 Accrued expenses and other liabilities................. 1,203,381 -------------- Total Liabilities.................................... 21,760,556 -------------- Net Assets: Capital stock (par value, $0.001 per share)............ 81,137 Capital surplus........................................ 1,882,394,154 Net unrealized appreciation (depreciation) on: Investments.......................................... 76,511,382 Forward currency contracts........................... (4,142,333) Foreign currency related transactions................ 165,451 Undistributed net realized gains (losses) on investments.......................................... 33,772,210 Undistributed net investment income (loss)............. (14,981,658) -------------- Net Assets (Note 1).................................. $1,973,800,343 -------------- -------------- Class A share capital................................... $1,784,707,555 Shares of beneficial interest outstanding (Class A) (Note 5)............................................... 73,336,098 Net asset value per share.............................. $24.34 Maximum offering price per share....................... $25.62 Class I share capital................................... $ 84,599,694 Shares of beneficial interest outstanding (Class I) (Note 5)............................................... 3,473,556 Net asset value per share.............................. $24.36 Class C share capital................................... $ 104,493,094 Shares of beneficial interest outstanding (Class C) (Note 5)............................................... 4,327,042 Net asset value per share.............................. $24.15
- --------- See Notes to Financial Statements. 44
- ------------------------------------------------------------ First Eagle First Eagle First Eagle SoGen U.S. SoGen Overseas Fund Value Fund Gold Fund - ------------------------------------------------------------ $1,039,051,074 $63,671,403 $ 89,933,554 45,810 11,993 607 4,798 -- -- 1,655,992 -- 493 263,378 -- -- 9,535,986 340,445 820,103 -- 207,425 -- 2,606,121 290,781 116,522 -------------- ----------- ------------ 1,053,163,159 64,522,047 90,871,279 -------------- ----------- ------------ 1,136,012 735 127,491 7,110,953 1,078,221 469,105 2,706,286 -- 72 638,316 37,925 56,971 207,781 12,808 18,990 717,396 62,453 82,750 -------------- ----------- ------------ 12,516,744 1,192,142 755,379 -------------- ----------- ------------ 83,596 5,995 8,657 1,112,061,380 64,140,929 112,216,168 (30,565,814) (3,639,779) 5,034,522 (1,050,294) -- 421 36,154 72 (394) 254,691 2,124,434 (26,668,241) (40,173,298) 698,254 (475,233) -------------- ----------- ------------ $1,040,646,415 $63,329,905 $ 90,115,900 -------------- ----------- ------------ -------------- ----------- ------------ $ 765,338,635 $22,070,471 $ 90,115,900 61,458,834 2,089,400 8,657,218 $12.45 $10.56 $10.41 $13.11 $11.12 $10.96 $ 209,214,358 $30,904,619 -- 16,764,140 2,917,303 -- $12.48 $10.59 -- $ 66,093,422 $10,354,815 -- 5,373,253 988,324 -- $12.30 $10.48 --
45 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------- First First Eagle First Eagle First Eagle Eagle SoGen SoGen U.S. SoGen Global Fund Overseas Fund Value Fund Gold Fund - ----------------------------------------------------------------------------------------------- Investment Income: Income: Interest........................... $ 35,435,674 $ 4,080,438 $ 987,602 $ 190,167 Dividends (net of $2,599,862, $1,913,811, $7,244 and $8,842 foreign taxes withheld, respectively)..................... 29,163,157 14,109,944 513,558 617,500 ------------ ------------ ----------- ---------- Total income from operations...... 64,598,831 18,190,382 1,501,160 807,667 ------------ ------------ ----------- ---------- Expenses: Investment advisory fees (Note 2).......................... 13,974,271 5,806,769 359,204 344,419 Distribution fees -- Class A and Class C (Note 3).................. 4,863,942 1,808,692 115,357 114,806 Shareholder servicing agent fees... 2,585,944 1,197,923 152,253 162,102 Legal fees......................... 1,619,179 770,329 15,608 18,446 Custodian fees..................... 1,375,506 830,381 46,774 54,888 Printing fees...................... 290,125 86,315 4,223 5,349 Audit and tax fees................. 152,000 78,045 33,609 47,769 Directors' fees.................... 129,060 48,125 2,916 1,901 Registration and filing fees....... 57,039 52,148 41,177 17,258 Offering costs amortization (Note 1).......................... -- -- 144,881 -- Miscellaneous fees................. 76,238 30,607 5,802 1,863 ------------ ------------ ----------- ---------- Total expenses from operations.... 25,123,304 10,709,334 921,804 768,801 ------------ ------------ ----------- ---------- Expense reductions due to earnings credits (Note 1)................... (21,492) (7,835) (375) (718) Expense reimbursements (Note 2)...... -- -- (207,425) -- ------------ ------------ ----------- ---------- Net expenses from operations......... 25,101,812 10,701,499 714,004 768,083 ------------ ------------ ----------- ---------- Net investment income (Note 1)....... 39,497,019 7,488,883 787,156 39,584 ------------ ------------ ----------- ---------- Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Related Transactions (Notes 1 and 6): Net realized gains (losses) from: Investment transactions............ 39,828,917 1,668,473 2,194,232 201,393 Foreign currency related transactions...................... (6,642,440) (5,217,784) 2 (11,072) ------------ ------------ ----------- ---------- 33,186,477 (3,549,311) 2,194,234 190,321 ------------ ------------ ----------- ---------- Change in unrealized appreciation (depreciation) of: Investments........................ 67,415,631 19,684,226 (4,155,824) 6,057,815 Foreign currency related transactions...................... (2,610,198) (804,861) 94 4,114 ------------ ------------ ----------- ---------- 64,805,433 18,879,365 (4,155,730) 6,061,929 ------------ ------------ ----------- ---------- Net gain (loss) on investments and foreign currency related transactions....................... 97,991,910 15,330,054 (1,961,496) 6,252,250 ------------ ------------ ----------- ---------- Net Increase (Decrease) in Net Assets Resulting from Operations............ $137,488,929 $ 22,818,937 $(1,174,340) $6,291,834 ------------ ------------ ----------- ---------- ------------ ------------ ----------- ----------
- --------- See Notes to Financial Statements. 46 [THIS PAGE IS INTENTIONALLY BLANK] 47 FIRST EAGLE SOGEN FUNDS, INC. STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------ First Eagle SoGen Global Fund ----------------------------------- Year Ended October 31, ----------------------------------- 2002 2001 - ------------------------------------------------------------------------------------------ Operations: Net investment income (loss)........................ $ 39,497,019 $ 37,137,132 Net realized gain (loss) from investments and foreign currency related transactions.............. 33,186,477 147,137,317 Increase (Decrease) in unrealized appreciation (depreciation) of investments and foreign currency related transactions............................... 64,805,433 (37,578,878) -------------- -------------- Net increase (decrease) in net assets resulting from operations.................................. 137,488,929 146,695,571 -------------- -------------- Distributions to Shareholders: Dividends paid from net investment income........... (42,974,159) (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.................................... (49,114,936) (287,944,204) -------------- -------------- Fund Share Transactions (Note 5): Net proceeds from shares sold....................... 513,285,805 162,877,299 Net asset value of shares issued for reinvested dividends and distributions........................ 45,762,881 273,439,640 Cost of shares redeemed............................. (231,586,537) (366,336,312) -------------- -------------- Increase in net assets from Fund share transactions..................................... 327,462,149 69,980,627 -------------- -------------- Net increase (decrease) in net assets.............. 415,836,142 (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 $(14,981,658), $10,885,942, $(40,173,298), $(40,043,903), $698,254, $0, $(475,233) and $27,290, respectively.)..................................... $1,973,800,343 $1,557,964,201 -------------- -------------- -------------- --------------
- --------- See Notes to Financial Statements. 48
- ---------------------------------------------------------------------------------------------------------------------- First Eagle SoGen First Eagle First Eagle SoGen Overseas Fund U.S. Value Fund Gold Fund ----------------------------------- ----------------------------------- ----------------------------------- Year Ended October 31, Period From Year Ended October 31, ----------------------------------- Year Ended September 4, 2001 ----------------------------------- 2002 2001 October 31, 2002 to October 31, 2001 2002 2001 ------------------------------------------------------------------------------------------------------------------ $ 7,488,883 $ 4,040,102 $ 787,156 $ (1,697) $ 39,584 $ 38,450 (3,549,311) 15,462,655 2,194,234 22,199 190,321 (2,130,156) 18,879,365 (13,760,350) (4,155,730) 516,023 6,061,929 5,943,390 -------------- ------------- ----------- ----------- ----------- ----------- 22,818,937 5,742,407 (1,174,340) 536,525 6,291,834 3,851,684 -------------- ------------- ----------- ----------- ----------- ----------- -- (21,778,190) -- -- (156,310) (444,560) -- (75,298,528) (93,600) -- -- -- -------------- ------------- ----------- ----------- ----------- ----------- -- (97,076,718) (93,600) -- (156,310) (444,560) -------------- ------------- ----------- ----------- ----------- ----------- 767,317,548 160,805,713 41,056,764 25,697,089 107,083,079 3,836,032 -- 92,813,118 91,160 -- 420,413 425,126 (225,700,835) (105,307,230) (2,770,714) (12,979) (36,937,099) (4,002,710) -------------- ------------- ----------- ----------- ----------- ----------- 541,616,713 148,311,601 38,377,210 25,684,110 70,566,393 258,448 -------------- ------------- ----------- ----------- ----------- ----------- 564,435,650 56,977,290 37,109,270 26,220,635 76,701,917 3,665,572 476,210,765 419,233,475 26,220,635 -- 13,413,983 9,748,411 -------------- ------------- ----------- ----------- ----------- ----------- $1,040,646,415 $ 476,210,765 $63,329,905 $26,220,635 $90,115,900 $13,413,983 -------------- ------------- ----------- ----------- ----------- ----------- -------------- ------------- ----------- ----------- ----------- -----------
49 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 December 31, 2002, the Company will change its name to First Eagle Funds, Inc., with corresponding changes to the names of the portfolios (for example, First Eagle SoGen Global Fund will be renamed First Eagle Global Fund as of that date). Effective May 23, 2000, the Funds' fiscal year end changed from March 31 to October 31 of each year. The following is a summary of significant accounting policies adhered to by the Funds: (a) Security valuation -- In the case of 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 Valuation Committee of the Board of Directors. (b) Deferred offering costs -- Offering costs incurred in connection with 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 50 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) each Fund in proportion to its relative net assets. Earnings credits reduce custodian fees by the amount of interest earned on balances. (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 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, First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund may enter into forward currency contracts. Additionally, each Fund may enter into such contracts to hedge certain other foreign currency denominated investments. These contracts are valued at current market, and the related realized and unrealized foreign exchange gains and losses are included in the statement of operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations. (g) United States income taxes -- No provision has been made for U.S. federal income taxes since it is the intention of each Fund to distribute to shareholders all taxable net investment income and net realized gains on investments, if any, within the allowable time limit, and to comply with the provisions of the Internal Revenue Code for a regulated investment company. First Eagle SoGen Global Fund, 51 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund declare and pay such income, dividends and capital gains distributions on an annual basis. Each fund designates the following amounts distributed during the fiscal years ended October 31, 2002 and October 31, 2001, if any, as capital gain dividends and/or dividends eligible for corporate dividends received deduction for the fiscal year ended October 31, 2002:
- ----------------------------------------------------------------------------------------------------- % of Dividends Eligible for Long-Term Capital Ordinary Income the Dividends Gains ------------------------- Received ------------------- 2002 2001 Declaration 2002 2001 - ----------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund..... $49,114,936 $87,440,626 39.05% -- $168,269,209 First Eagle SoGen Overseas Fund *................................ -- 21,778,190 1.59% -- 16,684,499 First Eagle U.S. Value Fund....... 93,600 -- 15.06% -- -- First Eagle SoGen Gold Fund....... 156,320 444,560 18.32% -- --
* First Eagle SoGen Overseas Fund paid foreign taxes of $1,940,634 and recognized foreign source income of $17,327,533. Pursuant to Section 853 of the Internal Revenue Code, the Fund designates such amounts as having been paid in connection with dividends distributed from investment taxable income during the calendar year 2002. At October 31, 2002, First Eagle SoGen Gold Fund had the following capital loss carryforwards to offset future capital gain net income:
- ------------------------------------------------------------------------------------------------------------------------- Expiring in fiscal 2004 2005 2006 2007 2008 2009 2010 Total - ------------------------------------------------------------------------------------------------------------------------- First Eagle SoGen Gold Fund........... $789,246 $1,336,531 $9,007,548 $8,499,197 $4,351,091 $2,415,206 $233,227 $26,632,046 - -------------------------------------------------------------------------------------------------------------------------
At October 31, 2002, the components of accumulated earnings on a tax basis were as follows:
- -------------------------------------------------------------------------------------------------------- Net Undistributed Unrealized Net Undistributed Appreciation Investment Net Realized (Depreciation) Series Name Income Gain (Loss) on Investment - -------------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund.......................... $10,941,824 $33,614,492 $ 55,367,233 First Eagle SoGen Overseas Fund........................ 18,284,467 574,288 (62,479,188) First Eagle U.S. Value Fund............................ 698,253 2,124,434 (3,639,779) First Eagle SoGen Gold Fund............................ 712,602 (26,632,046) 3,810,494 - --------------------------------------------------------------------------------------------------------
52 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) The differences between the components of distributable earnings on a tax basis and the amounts reflected in the statement of net assets are primarily due to wash sales, investments in partnerships and the treatment of passive foreign investments. (h) Reclassification of capital accounts -- On the statements of assets and liabilities, as a result of certain differences in the computation of net investment income and net realized capital gains under federal income tax rules and regulations versus generally accepted accounting principles, a reclassification has been made to increase (decrease) undistributed net investment income, undistributed net realized gains on investments and capital surplus for the Funds as follows:
- ------------------------------------------------------------------------------------------------- Undistributed Net Undistributed Net Realized Capital Investment Income Gains (Losses) on Investments Surplus - ------------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund.......................... $(22,390,554) $7,138,035 $15,252,519 First Eagle SoGen Overseas Fund.......................... (7,618,279) 5,217,784 2,400,495 First Eagle U.S. Value Fund.... (88,903) 3,298 85,605 First Eagle SoGen Gold Fund.... (385,797) 11,100 374,697 - -------------------------------------------------------------------------------------------------
The primary permanent differences causing such reclassifications include currency gains and losses, distributions paid in connection with the redemption of fund shares, the treatment of real estate investment trusts and litigation income for federal tax purposes. (i) Use of estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2 -- Investment Advisory Agreements and Transactions with Related Persons Arnhold and S. Bleichroeder Advisers, Inc. (the 'Adviser'), a wholly owned subsidiary of Arnhold and S. Bleichroeder 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 53 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) advisory fee of each Fund's daily net assets, payable monthly, as follows: First Eagle SoGen Global Fund at a 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 to the extent that the aggregate annual expenses exceed 1.50% for Class A shares, 1.25% for Class I shares and 2.25% for Class C shares of average daily net assets. For the year ended October 31, 2002, the Adviser has agreed to pay the Fund $207,425 so that each class of the Fund could maintain the above expense ratios. Expense reimbursements are accrued daily and paid yearly. For the year ended October 31, 2002, Arnhold and S. Bleichroeder, Inc. ('ASB'), the principal underwriter and wholly owned subsidiary of ASB Holdings, realized $404,180, $250,203, $17,953 and $233,752 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. (Effective December 5, 2002, the First Eagle Funds Distributors division of ASB Securities, Inc., another wholly-owned subsidiary of ASB Holdings succeeded ASB as the principle underwriter to the Funds.) For the year ended October 31, 2002, broker-dealer affiliates of the Adviser received $545,433, $109,273, $38,370 and $16,210 in broker's commissions for portfolio transactions executed on behalf of First Eagle SoGen Global Fund, First Eagle 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% (when combined with service fees), respectively, of average daily net assets. Under the Plans, ASB is 54 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued) obligated to use the amounts received 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 Plans. For the year ended October 31, 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 $4,863,942, $1,808,692, $115,357 and $114,806, respectively. Note 4 -- Purchases and Sales of Securities During the year ended October 31, 2002, the aggregate cost of purchases of investments, excluding U.S. Government obligations and short-term securities, totaled $707,076,584, $569,546,213, $39,306,603 and $66,464,857 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 $337,634,926, $72,870,070, $8,790,212 and $1,840,154 for First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, respectively. Note 5 -- Capital Stock Transactions in shares of capital stock were as follows:
Year Ended October 31, 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.......... 13,535,842 2,847,119 3,991,931 40,165,958 13,713,297 5,099,945 1,534,823 1,315,315 803,149 Shares issued for reinvested dividends and distributions... 1,920,668 54,074 13,327 -- -- -- 2,696 3,773 1,384 Shares redeemed...... (8,220,698) (953,203) (170,773) (15,223,918) (2,348,310) (297,320) (172,930) (24,183) (50,890) ---------- --------- --------- ----------- ---------- --------- --------- --------- ------- Net increase......... 7,235,812 1,947,990 3,834,485 24,942,040 11,364,987 4,802,625 1,364,589 1,294,905 753,643 - ----------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------- Year Ended October 31, 2002 ---------- First Eagle SoGen Gold Fund - ---------------------------------- Shares sold.......... 10,007,833 Shares issued for reinvested dividends and distributions... 24,928 Shares redeemed...... (3,549,146) ---------- Net increase......... 6,483,615 - ----------------------------------
55 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL STATEMENTS -- (Continued)
- ----------------------------------------------------------------------------------------------------------------------- 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......................... 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 issued for reinvested dividends and distributions.... -- -- -- Shares redeemed............................................. (1) -- (1,388) ------- --------- ------- Net increase................................................ 724,811 1,622,398 234,681 - -------------------------------------------------------------------------------------------
Note 6 -- Commitments As of October 31, 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 pages 58 to 61, resulting in net unrealized (depreciation) appreciation of $(4,142,333), $(1,050,294) and $421, respectively. Note 7 -- Subsequent Event On November 25, 2002, the Permanent Court of Arbitration in The Hague announced a final award in connection with the Bank for International Settlements arbitration, which involved First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund and First Eagle SoGen Gold Fund. The terms of that award were incorporated into the net asset values of each of those Funds on November 25, 2002. The impact on the Funds' net asset values was as follows: First Eagle SoGen Global Fund +1.6%, First Eagle SoGen Overseas Fund +1.3% and First Eagle SoGen Gold Fund +0.4%. 56 [THIS PAGE INTENTIONALLY LEFT BLANK] 57 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 October 31, 2002 Delivered - --------------------------------------------------------------------------------- 11/01/02 1,212,200 Euro $ 1,200,017 $ 1,193,726 11/01/02 20,377,438 Japanese Yen 166,211 166,496 11/02/02 183,727 Pound Sterling 287,404 286,320 11/05/02 218,225 Swiss Franc 147,689 147,729 11/06/02 793,597 Euro 785,622 784,469 ------------ ------------ 2,586,943 2,578,740 ------------ ------------ PORTFOLIO HEDGES: Foreign Currency Sales - --------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received October 31, 2002 - --------------------------------------------------------------------------------- 2/05/03 718,163,000 Japanese Yen 5,951,833 5,886,821 2/05/03 19,811,060,000 Japanese Yen 162,998,162 162,112,674 2/12/03 1,842,000 Euro 1,798,949 1,818,231 2/12/03 68,987,000 Euro 63,652,521 68,280,256 3/19/03 24,588,675,000 South Korean Won 19,670,940 20,124,959 ------------ ------------ 254,072,405 258,222,941 ------------ ------------ $256,659,348 $260,801,681 ------------ ------------ ------------ ------------
58
- --------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - --------------------------------------- $ 6,291 -- -- $ (285) 1,084 -- -- (40) 1,153 -- -------- ----------- 8,528 (325) -------- ----------- - --------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - --------------------------------------- 65,012 -- 885,488 -- -- (19,282) -- (4,627,735) -- (454,019) -------- ----------- 950,500 (5,101,036) -------- ----------- $959,028 $(5,101,361) -------- ----------- -------- -----------
59 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 October 31, 2002 Delivered - ---------------------------------------------------------------------------------- 11/01/02 1,677,896 Euro $ 1,661,033 $ 1,652,325 11/01/02 110,236 Pound Sterling 172,442 171,792 11/01/02 1,124,071 Swiss Franc 760,741 756,186 11/04/02 29,308 Hong Kong Dollar 3,758 3,758 11/05/02 110,599 Pound Sterling 173,010 173,054 11/05/02 792,326 Swiss Franc 536,225 533,941 11/06/02 2,242,218 Euro 2,219,684 2,212,254 11/06/02 85,063,147 Japanese Yen 693,827 694,975 ------------ ------------ 6,220,720 6,198,285 ------------ ------------ Foreign Currency Sales - ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received October 31, 2002 - ---------------------------------------------------------------------------------- 11/01/02 142,924 Euro 140,746 141,487 11/04/02 123,128 Euro 121,257 121,891 ------------ ------------ 262,003 263,378 ------------ ------------ PORTFOLIO HEDGES: Foreign Currency Sales - ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ To Be U.S. $ Value at Through To Be Delivered Received October 31, 2002 - ---------------------------------------------------------------------------------- 1/22/03 12,659,111,000 South Korean Won 10,576,582 10,361,034 2/05/03 17,151,429,000 Japanese Yen 141,656,279 140,362,481 2/05/03 1,188,145,000 Japanese Yen 9,856,878 9,733,859 2/12/03 52,201,000 Euro 49,174,201 51,636,791 2/12/03 3,712,000 Euro 3,631,432 3,667,646 3/19/03 11,097,708,000 South Korean Won 8,878,166 9,083,081 ------------ ------------ 223,773,538 224,844,892 ------------ ------------ $230,256,261 $231,306,555 ------------ ------------ ------------ ------------
FIRST EAGLE SOGEN GOLD FUND
TRANSACTION HEDGES: Foreign Currency Purchases - ---------------------------------------------------------------------------------- Settlement Dates Foreign Currency U.S. $ Value at U.S. $ To Be Through To Be Received October 31, 2002 Delivered - ---------------------------------------------------------------------------------- Australian 11/01/02 30,616 Dollar 16,991 17,063 11/01/02 131,240 Canadian Dollar 84,074 83,972 Australian 11/04/02 144,223 Dollar 80,036 79,726 11/04/02 763,162 Mexican Peso 75,004 74,923 ------------ ------------ $ 256,105 $ 255,684 ------------ ------------ ------------ ------------
60 - ---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - ---------------------------------------- $ 8,708 $ -- 650 -- 4,555 -- -- -- -- (44) 2,284 -- 7,430 -- -- (1,148) ---------- ----------- 23,627 (1,192) ---------- -----------
- ---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - ---------------------------------------- -- (741) -- (634) ---------- ----------- -- (1,375) ---------- ----------- - ---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - ---------------------------------------- 215,548 -- 1,293,798 -- 123,019 -- -- (2,462,590) -- (36,214) -- (204,915) ---------- ----------- 1,632,365 (2,703,719) ---------- ----------- $1,655,992 $(2,706,286) ---------- ----------- ---------- ----------- - ---------------------------------------- Unrealized Unrealized Appreciation at Depreciation at October 31, 2002 October 31, 2002 - ---------------------------------------- -- (72) 102 -- 310 -- 81 -- ---------- ----------- $ 493 $ (72) ---------- ----------- ---------- -----------
61 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------- Year Ended October 31, ------------------------------------------- 2002 ------------------------------------------- Class Class Class A I C - ----------------------------------------------------------------------------------------- First Eagle SoGen Global Fund SELECTED PER SHARE DATA Net asset value, beginning of year......... $22.87 $22.89 $22.68 ------ ------ ------ Income from investment operations: Net investment income..................... 0.53 0.27 0.72 Net realized and unrealized gains on investments............................. 1.66 1.98 1.29 ------ ------ ------ Total from investment operations.......... 2.19 2.25 2.01 ------ ------ ------ 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 year............ $24.34 $24.36 $24.15 ------ ------ ------ ------ ------ ------ Total Return'DD'........................... 9.76% 10.03% 8.98% Ratios and Supplemental Data Net assets, end of year (millions)......... $1,785 $ 85 $ 104 Ratio of operating expenses to average net assets'D'................................. 1.34% 1.09% 2.10% Ratio of net investment income to average net assets'D'............................. 2.14% 2.37% 1.31% Portfolio turnover rate.................... 19.75% 19.75% 19.75%
- ----------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, --------------------------------------------------------------- 2000 --------------------------------------------------------------- Class Class A 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'..................... 1.68%# 1.83%# 1.88%# Ratios and Supplemental Data Net assets, end of year (millions)... $1,614 $ 14 $ 1 Ratio of operating expenses to average net assets'D'............... 1.35%* 1.10%* 1.87%* Ratio of net investment income to average net assets'D'............... 2.78%* 3.04%* 1.10%* Portfolio turnover rate.............. 11.91% 11.91% 11.91%
62
------------------------------------------ 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 ------ ------ ------ ------ ------ ------ 8.96% 9.15% 8.10% $1,512 $ 35 $ 11 1.38% 1.14% 2.14% 2.24%* 2.47%* 1.12%* 28.98% 28.98% 28.98%
---------------------------------------------------------------------- Year Ended March 31, --------------------------------------------------------------------- 2000 1999 1998 ----------------- ----------------------------------- ------ Class Class Class Class A I A Class I'D''D' A ---------------------------------------------------------------------- $22.90 $22.90 $27.42 $24.59 $26.68 ------ ------ ------ ------ ------ 0.66 0.71 0.63 0.30 1.47 4.29 4.31 (2.73) (1.47) 2.10 ------ ------ ------ ------ ------ 4.95 5.02 (2.10) (1.17) 3.57 ------ ------ ------ ------ ------ (1.07) (1.12) (0.83) -- (1.36) (1.73) (1.73) (1.59) (0.52) (1.47) ------ ------ ------ ------ ------ (2.80) (2.85) (2.42) (0.52) (2.83) ------ ------ ------ ------ ------ $25.05 $25.07 $22.90 $22.90 $27.42 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 22.19% 22.52% (7.95%) (4.72%)# 14.35% $1,790 $ 16 $2,063 $ 12 $4,035 1.32% 1.07% 1.23% 1.01%* 1.18% 2.68% 2.89% 2.75% 3.04%* 2.80% 15.57% 15.57% 9.89% 9.89% 20.63%
63 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
- ----------------------------------------------------------------------------------------- Year Ended October 31, -------------------------------------------- 2002 -------------------------------------------- Class Class Class A I C - ----------------------------------------------------------------------------------------- First Eagle SoGen Overseas Fund SELECTED PER SHARE DATA Net asset value, beginning of year........ $11.21 $11.21 $11.15 ------ ------ ------ Income from investment operations: Net investment income (loss)............. 0.12 0.15 0.02 Net realized and unrealized gains (losses) on investments................ 1.12 1.12 1.13 ------ ------ ------ Total from investment operations......... 1.24 1.27 1.15 ------ ------ ------ Less distributions: Dividends from net investment income..... -- -- -- Distributions from capital gains......... -- -- -- ------ ------ ------ Total distributions...................... -- -- -- ------ ------ ------ Net asset value, end of year........... $12.45 $12.48 $12.30 ------ ------ ------ ------ ------ ------ Total Return'DD'.......................... 11.06% 11.33% 10.31% Ratios and Supplemental Data Net assets, end of year (millions)........ $ 766 $ 209 $ 66 Ratio of operating expenses to average net assets'D'................................ 1.39% 1.15% 2.15% Ratio of net investment income to average net assets'D'............................ 0.96% 1.17% 0.19% Portfolio turnover rate................... 10.52% 10.52% 10.52%
- --------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, ------------------------------------------------------------------- 2000 ------------------------------------------------------------------- Class Class A 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 gains (losses) 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'.......................... (0.69%)# (0.62%)# 1.20%# Ratios and Supplemental Data Net assets, end of year (millions)........ $ 390 $ 28 $ 1 Ratio of operating expenses to average net assets'D'................................ 1.41%* 1.16%* 1.95%* Ratio of net investment income to average net assets'D'............................ 2.23%* 2.48%* (0.05%)* Portfolio turnover rate................... 17.28% 17.28% 17.28%
64 Year Ended October 31, --------------------------------------------------------- 2001 --------------------------------------------------------- Class Class Class A I 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 ------ ------ ------ ------ ------ ------ 2.01% 2.19% 1.19% $ 409 $ 61 $ 6 1.53% 1.28% 2.26% 0.91% 1.10% (0.08%) 17.27% 17.27% 17.27%
Year Ended March 31, ----------------------------------------------------------- 2000 1999 1998 --------------- -------------------------------- ------ Class Class Class Class A I A Class I'D''D' A $11.36 $11.37 $13.52 $12.31 $13.84 ------ ------ ------ ------ ------ 0.28 0.31 0.15 0.41 0.88 3.59 3.59 (0.97) (1.10) 0.31 ------ ------ ------ ------ ------ 3.87 3.90 (0.82) (0.69) 1.19 ------ ------ ------ ------ ------ (0.18) (0.20) (0.57) -- (0.83) (0.64) (0.64) (0.77) (0.25) (0.68) ------ ------ ------ ------ ------ (0.82) (0.84) (1.34) (0.25) (1.51) ------ ------ ------ ------ ------ $14.41 $14.43 $11.36 $11.37 $13.52 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 34.46% 34.76% (6.46%) (5.53%)# 10.00% $ 450 $ 27 $ 453 $ 3 $1,007 1.34% 1.15% 1.29% 1.03%* 1.22% 2.10% 2.14% 2.22% 1.97% 2.20%* 26.62% 26.62% 9.31% 9.31% 22.13%
65 FIRST EAGLE SOGEN FUNDS, INC. FINANCIAL HIGHLIGHTS -- (continued)
- ----------------------------------------------------------------------------- Year Ended October 31, 2002 ------------------------ 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)..................... 0.13 0.14 0.13 Net realized and unrealized gains on investments.................................... 0.29 0.31 0.23 ------ ------ ------ Total from investment operations.................. 0.42 0.45 0.36 ------ ------ ------ Less distributions: Dividends from net investment income............. -- -- -- Distributions from capital gains................. (0.02) (0.02) (0.02) ------ ------ ------ Total distributions.............................. (0.02) (0.02) (0.02) ------ ------ ------ Net asset value, end of period................... $10.56 $10.59 $10.48 ------ ------ ------ ------ ------ ------ Total Return'DD'.................................. 4.12% 4.41% 3.53% Ratios and Supplemental Data Net assets, end of year (millions)................ $ 22 $ 31 $ 10 Ratio of operating expenses to average net assets'D'........................................ 1.50% 1.25% 2.25% Ratio of net investment income to average net assets'D'........................................ 1.65% 1.85% 0.93% Portfolio turnover rate........................... 22.66% 22.66% 22.66%
- ----------------------------------------------------------------------------------- Year Ended Period from October 31, April 1, 2000 to --------------- October 31, 2002 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 income........................ 0.01 0.02 0.09 Net realized and unrealized gains (losses) on investments................................ 4.30 1.92 (0.82) ------ ------ ------ Total from investment operations............. 4.31 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............. $10.41 $ 6.17 $ 4.44 ------ ------ ------ ------ ------ ------ Total Return'DD'.............................. 70.70% 45.19% (14.12%)# Ratios and Supplemental Data Net assets, end of year (millions)............ $ 90 $ 13 $ 10 Ratio of operating expenses to average net assets'D'.................................... 1.66% 2.65% 2.56%* Ratio of net investment income to average net assets'D'.................................... 0.09% 0.36% 2.92%* Portfolio turnover rate....................... 4.27% 29.16% 11.66%
66
-------------------------------------------------- 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 ------ ------ ------ ------ ------ ------ 1.60% 1.60% 1.40% $ 7 $ 17 $ 2 1.50%* 1.25%* 2.25%* (0.21%)* 0.10%* (1.02%)* 2.57% 2.57% 2.57%
Year Ended March 31, -------------------------------------------------- 2000 1999 1998 -------------------------------------------------- $ 5.44 $ 7.31 $10.60 ------ ------ ------ 0.15 0.16 0.13 (0.27) (1.82) (3.03) ------ ------ ------ (0.12) (1.66) (2.90) ------ ------ ------ (0.15) (0.21) (0.39) -- -- -- ------ ------ ------ (0.15) (0.21) (0.39) ------ ------ ------ $ 5.17 $ 5.44 $ 7.31 ------ ------ ------ ------ ------ ------ (2.52%) (22.77%) (27.23%) $ 13 $ 18 $ 31 2.15% 1.62% 1.55% 2.25% 2.01% 1.47% 15.70% 37.73% 11.20%
67 FIRST EAGLE SOGEN FUNDS, INC. NOTES TO FINANCIAL HIGHLIGHTS -- (continued) 'D''D' July 31, 1998 inception date for Class I shares. 'D''D''D' June 5, 2000 inception date for Class C shares. * Annualized. # Not annualized. 'DD' Does not give effect to the deduction of the sales load. 'D' The ratio of operating expenses to average net assets without the effect of earnings credits and in the case of the First Eagle U.S. Value Fund, without the effect of earnings credits and expense reimbursements are as follows: - ----------------------------------------------------------------------------------------------- Year Ended October 31, --------------------------------------------------------- 2002 2001 --------------------------- --------------------------- Class A Class I Class C Class A Class I Class C - ----------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund....... 1.34% 1.10% 2.10% 1.39% 1.14% 2.14% First Eagle SoGen Overseas Fund..... 1.40% 1.15% 2.15% 1.53% 1.28% 2.26% First Eagle SoGen Gold Fund......... 1.67% N/A N/A 2.66% N/A N/A
- ----------------------------------------------------------------------------------------------- Period from Year Ended September 4, 2001 October 31, 2002 to October 31, 2001 --------------------------- ------------------------------ Class A Class I Class C Class A* Class I* Class C* - ----------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund........... 1.92% 1.69% 2.67% 3.33% 3.16% 4.05%
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 earnings credits and expense reimbursements are as follows: - ----------------------------------------------------------------------------------------------- Year Ended October 31, --------------------------------------------------------- 2002 2001 --------------------------- --------------------------- Class A Class I Class C Class A Class I Class C - ----------------------------------------------------------------------------------------------- First Eagle SoGen Global Fund.......... 2.14% 2.37% 1.31% 2.24% 2.47% 1.12% First Eagle SoGen Overseas Fund........ 0.96% 1.17% 0.19% 0.91% 1.10% (0.08%) First Eagle SoGen Gold Fund............ 0.08% N/A N/A 0.35% N/A N/A
- ----------------------------------------------------------------------------------------------- Period from Year Ended September 4, 2001 October 31, 2002 to October 31, 2001 --------------------------- ------------------------------ Class A Class I Class C Class A* Class I* Class C* - ----------------------------------------------------------------------------------------------- First Eagle U.S. Value Fund........... 2.08% 2.29% 1.35% 1.62% 2.02% 0.80%
68 ---------------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, Year Ended March 31, ------------------------------------------------------ ------------------------------------------------------------- 2000 2000 1999 ------------------------------------------------------ ----------------- --------------------------------- Class A* Class I* Class C*'D'D'D' Class A Class I Class A Class I'D'D' 1998 ---------------------------------------------------------------------------------------------------------------------- 1.36% 1.11% 1.85% 1.32% 1.07% 1.24% 1.63% 1.19% 1.41% 1.16% 1.94% 1.34% 1.15% 1.29% 1.21% 1.22% 2.59% N/A N/A 2.16% N/A 1.64% N/A 1.56%
---------------------------------------------------------------------------------------------------------------------- Period from April 1, 2000 to October 31, Year Ended March 31, ------------------------------------------------------ ------------------------------------------------------------- 2000 2000 1999 ------------------------------------------------------ ----------------- --------------------------------- Class A* Class I* Class C*'D'D'D' Class A Class I Class A Class I'D'D' 1998 ---------------------------------------------------------------------------------------------------------------------- 2.78% 3.03% 1.11% 2.66% 2.87% 2.74% 2.42% 2.80% 2.23% 2.48% (0.06%) 2.10% 2.14% 2.22% 1.79% 2.20% 2.89% N/A N/A 2.24% N/A 1.99% N/A 1.46%
69 INDEPENDENT AUDITORS' REPORT To the Board of Directors and Shareholders of FIRST EAGLE SOGEN FUNDS, INC.: We have audited the accompanying statements of assets and liabilities of First Eagle SoGen Funds, Inc. (the 'Funds') consisting of First Eagle SoGen Global Fund, First Eagle SoGen Overseas Fund, First Eagle U.S. Value Fund and First Eagle SoGen Gold Fund, including the schedules of investments, as of October 31, 2002, and the related statements of operations, the statements of changes in net assets and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2002, by correspondence with the custodian and brokers. As to securities purchased and sold but not yet received or delivered we performed alternative auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2002, and the results of its operations, the changes in its net assets and financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP - ------------------ New York, New York December 20, 2002 70 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 Trustee, First 122 East 42nd Street 1999 to Director, United Eagle Funds New York, New York present Continental Corp.; (1 portfolio); 10168 General Partner, Director, First Windcrest Partners Eagle SoGen Variable Funds, Inc. (1 portfolio) William M. Kelly, 58 ........... 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)
71
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 --------------------- ----------- ------ ------------------- -------- ---------------- 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) Fred J. Meyer, 71 .............. Director August Special 5 Director, Novartis 437 Madison Avenue 1993 to Advisor/Executive Corporation; New York, New York present office 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) Dominique Raillard, 62 ........ Director April Independent 5 Director, First 15 Boulevard Delessert 1987 to Consultant Eagle SoGen 75016 Paris France present Variable Funds, Inc. (1 portfolio) Nathan Snyder, 67 ............. Director March Independent 5 Director, First 1345 Avenue of the 1983 to Consultant Eagle SoGen Americas present 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. 72 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. 73 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, 38 .............. 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 Stefanie Spritzler, 29 ........ 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
74
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 --------------------- ----------- --------------- -------------------------- Winnie Chin, 28 ............... 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, 50 ............ 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. 75 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 William M. Kelly Paul J. Lawler 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 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 First Eagle Funds Distributors, a division of ASB Securities, Inc. 1345 Avenue of the Americas New York, N.Y. 10105 Independent Auditors KPMG LLP 757 Third Avenue New York, N.Y. 10017 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' -----END PRIVACY-ENHANCED MESSAGE-----