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FIRST EAGLE FUNDS
FIRST EAGLE FUND OF AMERICA
FIRST EAGLE INTERNATIONAL FUND
1345 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10105
(800) 334-2143
SUPPLEMENT DATED OCTOBER 23, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 1, 2000.
THE DISCLOSURE IN THE STATEMENT OF ADDITIONAL INFORMATION UNDER "DISTRIBUTOR"
PP. 13 IS REPLACED IN ITS ENTIRETY TO READ AS FOLLOWS:
Arnhold and S. Bleichroeder, Inc. (the "Distributor"), a registered
broker-dealer, investment adviser and a member of the New York Stock Exchange
and the National Association of Securities Dealers ("NASD"), serves as the
Distributor of the Funds' Class Y, Class C and Class A shares.
The Distributor receives a service fee at the annual rate of 0.25% of the
average daily net assets of all Classes of shares of the Funds, to cover
expenses incurred by the Distributor for providing shareholder liaison services,
including assistance with subscriptions, redemptions and other shareholder
questions. The Funds pay the Distributor a Rule 12b-1 fee on Class A shares at
the annual rate of up to 0.25% of the average daily net assets of each Fund's
outstanding Class A shares and a Rule 12b-1 fee on Class C shares at the annual
rate of up to 0.75% of the average daily net assets of each Fund's outstanding
Class C shares. The Distributor has agreed, subject to its right to unilaterally
require payments monthly, to accept the payments involved (whether distribution
related or service fees) on a quarterly basis other than in certain exceptional
casts.
The Distributor also normally retains part of the initial sales charge as
its underwriter's allowance on sales of Class A shares, and when it does
broker-dealers may be deemed to be underwriters as that term is defined under
the Securities Act of 1933. Pursuant to the Distribution and Services Agreement,
dated February 27, 1998, the Funds agree to indemnify the Distributor against
certain liabilities under the Securities Act of 1933, as amended.
The Fund's Rule 12b-1 Plan is a compensation plan which means that the Funds
pay the Distributor for distributor services based on the net assets of Class C
and Class A shares. The Distributor pays financial services firms fees for
distributing the Class C and Class A shares. However, the Distributor will not
pay dealers 12b-1, distribution related and service fees for any quarter in
which they have less than $50,000 in accounts. For the fiscal year ended
October 31, 1999, First Eagle Fund of America paid the Distributor Rule 12b-1
fees of $97,663 for Class C shares and $2,279 for Class A shares and First Eagle
International Fund paid the Distributor 12b-1 fees of $3,806 for Class C shares
and $76 for Class A shares.
