Capital Income Strategy

Risk Disclosures

All investments involve the risk of loss of principal.

The value of the strategy’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. In addition, fluctuations in interest rates can affect the value of debt instruments held by the strategy. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

The strategy intends to invest in high yield instruments (commonly known as ‘‘junk bonds’’) which may be subject to greater levels of interest rate, credit (including issuer default) and liquidity risk than investment grade instruments and may experience extreme price fluctuations. The securities of such companies may be considered speculative and the ability of such companies to pay their debts on schedule may be uncertain.

The strategy may invest in securities of companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments involve a substantial degree of risk. In any reorganization or liquidation proceeding relating to a company in which the strategy invests, the strategy may lose its entire investment, may be required to accept cash or securities with a value less than the strategy’s original investment, and/or may be required to accept payment over an extended period of time.

If a rating agency gives a debt instrument a lower rating, the value of the instrument may decline because investors may demand a higher rate of return.

Disclosures

Note that the Capital Income Strategy has not yet launched and has no historical track record. The Strategy intends to leverage the Global Value Team’s existing research platform, which is responsible for several fundamental, bottom-up strategies with long track records

These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.

Definitions

Investment grade allocation would mainly comprise high grade corporate and sovereign bonds (including USD and local currency securities), ultrashort investment grade notes, and nominal and inflation-linked securities (65% excludes cash).

High income securities may include corporate and sovereign high yield bonds, preferred and hybrid securities, and potentially dividend yielding equities (35% excludes cash).

Yield and duration are not targeted but are residual of value-driven security selection. Interest rate duration may vary over time, depending on the level of compensation for the assumed risk. Yields could also increase (or decrease) as credit spreads widen (or narrow) and as risk-free assets (Treasuries) increase or decrease, in addition to idiosyncratic security performance. When credit spreads are narrow and risk-free yields are low, the portfolio would likely have a shorter duration and less credit risk.

Within a fixed income context, margin of safety refers to the discount to intrinsic value of a security, as determined by a business or sovereign’s ability to generate cash flow to cover interest payments. Margin of safety involves an issuer’s fundamental quality, financial health and management, as well as its credit rating, leverage metrics or bondholder protections.

Risk Disclosures

All investments involve the risk of loss of principal.

The value of the strategy’s portfolio may fluctuate in response to the risk that the issuer of a bond or other instrument will not be able to make payments of interest and principal when due. In addition, fluctuations in interest rates can affect the value of debt instruments held by the strategy. An increase in interest rates tends to reduce the market value of debt instruments, while a decline in interest rates tends to increase their values. Longer duration instruments tend to be more sensitive to interest rate changes than those with shorter durations.

The strategy intends to invest in high yield instruments (commonly known as ‘‘junk bonds’’) which may be subject to greater levels of interest rate, credit (including issuer default) and liquidity risk than investment grade instruments and may experience extreme price fluctuations. The securities of such companies may be considered speculative and the ability of such companies to pay their debts on schedule may be uncertain.

The strategy may invest in securities of companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments involve a substantial degree of risk. In any reorganization or liquidation proceeding relating to a company in which the strategy invests, the strategy may lose its entire investment, may be required to accept cash or securities with a value less than the strategy’s original investment, and/or may be required to accept payment over an extended period of time.

If a rating agency gives a debt instrument a lower rating, the value of the instrument may decline because investors may demand a higher rate of return.

Disclosures

Note that the Capital Income Strategy has not yet launched and has no historical track record. The Strategy intends to leverage the Global Value Team’s existing research platform, which is responsible for several fundamental, bottom-up strategies with long track records

These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.

Definitions

Within a fixed income context, margin of safety refers to the discount to intrinsic value of a security, as determined by a business or sovereign’s ability to generate cash flow to cover interest payments. Margin of safety involves an issuer’s fundamental quality, financial health and management, as well as its credit rating, leverage metrics or bondholder protections.