<PAGE>
FIRST EAGLE FUNDS
-------------------------
SEMI-ANNUAL REPORT -- APRIL 30, 2000
[LOGO]
<PAGE>
Dear Fellow Investors:
The First Eagle Funds ended their fiscal semi-annual period on April 30,
2000. First Eagle Fund of America and First Eagle International Fund
performances for their no-load Class Y shares relative to the indices are
described below.
The net asset value of FIRST EAGLE FUND OF AMERICA'S Class Y shares
increased 0.40%, adjusted for distributions for the period from November 1, 1999
through April 30, 2000, while the unmanaged Standard & Poor's 500 Stock Index,
adjusted for distributions, increased 7.15% for the same period. Additionally,
the unmanaged Russell Midcap Value Index, adjusted for distributions, was up
2.22% for the period from November 1, 1999 through April 30, 2000.
The net asset value of FIRST EAGLE INTERNATIONAL FUND'S Class Y shares
increased 14.96%, adjusted for distributions for the period from November 1,
1999 through April 30, 2000, while the broad-based, unmanaged Morgan Stanley
Capital International SA (MSCI) Europe, Australia, Far East Index (EAFE),
adjusted for distributions, was up 6.72% for the same period. In addition, the
unmanaged MSCI World Ex-USA Index, adjusted for distributions, was up 7.74% for
the period from November 1, 1999 through April 30, 2000.
As always, we take this opportunity to review with our shareholders the
activity of the Funds and the principles which guide us in the day-to-day
business of investing the funds you have entrusted to us.
The economy continues to display few signs of yielding to the contractionary
influences of rising interest rates or oil prices. With the economy at full
employment, and fearing the effect of too rapid economic growth on wages and
output prices, the Federal Reserve remains committed to an approach of gradual
preemptive rate increases to forestall the emergence of inflationary forces. How
long this tug-of-war might endure is of course not known, as is the question of
how high rates will need to be raised, and whether the Fed can once again
engineer the soft landing achieved at the end of 1994. Otherwise lacking the
precision of a crystal ball we continue to be optimistic that the economy will
submit to basic economic forces of contraction. We are encouraged that the
emergence of new technologies, global competition, and disciplined corporate
practices will lead to a more balanced rate of economic growth, and avoid the
imposition of a credit squeeze which would be required to restrain more
threatening inflationary conditions. The most recent travails of the
<PAGE>
NASDAQ marketplace may provide the earliest and most encouraging evidence that
Fed policy is beginning to bite.
Over the semi-annual period, FIRST EAGLE FUND OF AMERICA'S investment
results reflect the offsetting influences of achievement coupled with
disappointment. The two issues that dominated the investment landscape continued
to be the strength of the economy and the divergence between 'old' and 'new'
economy stocks. Shares of old economy companies have been punished in a classic
bear market response to rising interest rates, while the highest flying
technology, telecommunication and biotechnology companies appeared immune to the
influence of rising interest rates on valuation. We have been cautious of the
overall market in light of our broadly held belief that the threat of an economy
expanding too rapidly would lead the Federal Reserve to continue to raise
interest rates. Old economy stocks have reacted predictably to rising short-term
interest rates. This phenomenon has been inflamed by the continued performance
of a narrow sector of the market which seems to be immune to the effect of
rising rates on valuation and further siphons off investment flows from the old
economy. Most recently it appears that this valuation arbitrage has become too
extreme, and that market forces in their inimitable way will likely
self-correct. In addition, given where values are in the market, we believe that
M&A activity should begin to pick up.
In reviewing our results we are struck by the immense divergence of
performance among stocks in our portfolio. The enthusiasm with which the market
endorses an investment concept is only matched by the ruthlessness to which it
treats disappointment or uncertainty. This no doubt is symptomatic of a
bifurcated market. Our successes were predictably companies representing
attractive values in businesses, which if our investment premise proved correct,
offered the opportunity to be rewarded. This included meaningful gains in stocks
such as Nextel Communications, News Corp, Comdisco, Apple Computer, GM Hughes,
Harris Corp, Sungard Data Systems, Amgen Inc., and L-3 Holdings, all of which
rose in excess of 20%. Additionally the proposed acquisition by CitiCorp of the
minority position in Travelers Property contributed to our results. These
successes however were offset by other meaningful disappointments such as Finova
and Loral Space. Both companies have been long-term investments for us with
seasoned managements whom we know well and in whom we have a high level of
confidence. The market's volatile reaction to short-term problems appears
excessive.
<PAGE>
Now we turn to the global community and the economic environment that helped
shape the performance of the FIRST EAGLE INTERNATIONAL FUND during this
semi-annual period. The global economy was also marked by investors' continued
enthusiasm for stocks in three industries: telecommunications, media and
technology. Again, companies in these so-called 'new economy' industries enjoyed
soaring stock prices and valuations while those in traditional 'old-economy'
sectors languished on the sidelines. Toward the end of March, however, this
dramatic divergence in the market finally reversed as high-growth, high-priced
stocks fell in the wake of Nasdaq's sudden decline.
Our exposure to these new economy sectors contributed to our outperformance.
One of our best performers these past months was Ericsson, a stock we purchased
when its price faltered in January. Sweden's Ericsson is one of the global
leaders in mobile communications equipment. The company holds the world's
leading position in selling infrastructure for mobile telecommunications
networks and is number three, after Nokia and Motorola, in selling mobile
handsets. Ericsson is very well placed to exploit both the convergence of fixed
and mobile telephony, as well as the convergence of telecommunications and data
communications. These industry trends, as well as the pressure on telecom
operators to extend the capacity of their networks, encourage us to retain our
position in Ericsson despite the stock's strong performance.
Another of our strong performers was the French communications agency Havas
Advertising, a position we initiated in December of 1999. Advertising trends
across Europe have been very strong, driven by strong GDP growth, deregulation
of the financial and telecommunications industries, and the need of new
`dot.com' companies to create brand recognition. With record consumer confidence
in France, advertising trends in Havas' home market have been particularly
strong. As the sixth largest advertising agency in the world -- and with the
goal of being among the top five soon -- Havas has also benefited from the trend
among multinational companies to work increasingly with global advertising
agencies who can meet their needs worldwide.
During this period, we sold our entire position in Peninsular & Orient. P&O,
the venerable U.K. shipping concern, is active in cruises (the Princess line),
cargo, bulk and container shipping, and ports management. We held P&O shares in
hopes that the company's anticipated restructuring efforts would highlight and
unlock the value of the conglomerate's individual lines of business. While the
company
<PAGE>
proceeded as expected with disposal and de-merger plans, these positive steps
were overshadowed by problems within the cruise industry: In February, U.S.
cruise leader Carnival Corporation suggested that cruise prices were softening,
particularly in the Caribbean where most industry participants are adding
significant new capacity. Combined with the prospect of higher fuel prices, this
announcement decimated share prices of all the companies within the industry.
We reduced our investments in Japan as we liquidated positions in DDI Corp.
and Nippon Telephone and Telegraph. The reduction in these investments was
mainly due to specific issues with both of the companies and does not reflect a
change in our bullish stance towards the Japanese market. While the outlook for
Japan has become slightly more uncertain as the economy re-entered a technical
recession following two successive periods of negative GDP growth, the latest
Bank of Japan Tankan report indicates that the economy may be looking a little
healthier once again.
Our core positions in Japan remain Nikko Securities and Matsushita Electric
Industrial. Nikko Securities continues to benefit from an improving Japanese
stock market. Citigroup increased its direct ownership interest in Nikko to 20%
which we believe is positive for the group. Matsushita Electric Industrial is a
leading consumer electronics company with a stable of strong global brands. The
restructuring process at MEI appears to be gathering steam which we believe will
increase shareholder value in the near term. We continue to look for
opportunities in the old economy as Japanese corporate restructuring continues
and also search for investments in new economy companies at the appropriate
prices.
We have made a new investment in Citic Pacific, a Hong Kong conglomerate,
which is restructuring its asset base and making new investments in the
telecommunications industry. Citic Pacific is a well-connected company and this
has enabled it to acquire relatively cheap assets in the rapidly growing Chinese
telecommunications industry.
The swift market correction which ushered in the second quarter of this year
has not altered our underlying confidence in Europe's economies. Economic
indicators in Europe remain strong: Business sentiment in Germany, Europe's
largest economy, is at a five-year peak and unemployment across the continent
continues to fall. Moreover, while the market's increasing volatility is
unnerving, we remain convinced that the fundamental traits of our investments --
leading market positions, good managements and strong barriers to
<PAGE>
entry -- will prevail over short-term market movements, leading over time to
stock price appreciation.
Although we continue to face the challenge of a bifurcated market and
extreme volatility in the short-term, we remain confident about the portfolios
of First Eagle Fund of America and First Eagle International Fund. We believe
staying committed to our disciplines will prove to be the right strategy in
continuing to serve our fellow shareholders' best interests in the long-term.
Thank you for your continued confidence,
Your Investment Team at
Arnhold and S. Bleichroeder Advisers, Inc.
May 2000
<PAGE>
First Eagle Fund of America and S&P 500 Stock Index
Comparison of Change in Value of $10,000 Investment
April 10, 1987 to April 30, 2000
Average Annual Total Return (Y Shares)*
---------------------------
1 Year -5.42%
3 Years 21.32%
10 Years 16.23%
Since Inception** 15.42%
* After all expenses. C Shares returned 13.09%*** for the period
March 2, 1998 (inception) to April 30, 2000 and Class A shares
returned -7.02%*** for the period November 19, 1998 (inception) to
April 30, 2000.
** April 10, 1987
*** Not annualized
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
First Eagle Fund S&P 500
Date of America w/income
---- ---------------- --------
<S> <C> <C>
4/10/87 $10,000 $10,000
10/31/87 $ 9,170 $ 8,777
10/31/88 $11,734 $10,085
10/31/89 $14,575 $12,737
10/31/90 $11,999 $11,782
10/31/91 $14,718 $15,730
10/31/92 $17,076 $17,295
10/31/93 $23,088 $19,870
10/31/94 $23,954 $20,631
10/31/95 $29,116 $26,077
10/31/96 $37,009 $32,256
10/31/97 $48,472 $42,736
10/31/98 $57,778 $52,125
10/31/99 $64,754 $65,492
4/30/00 $65,013 $70,173
</TABLE>
Past performance is not predictive of future performance.
<PAGE>
First Eagle International Fund and MSCI EAFE Index
Comparison of Change in Value of $10,000 Investment
April 4, 1994 to April 30, 2000
Average Annual Total Return (Y Shares)*
---------------------------
1 Year 21.81%
3 Years 11.38%
5 Years 13.81%
Since Inception** 10.49%
* After all expenses. C Shares returned 17.64%*** for the
period March 2, 1998 (inception) to April 30, 2000 and
Class A shares returned -0.82%*** for the period March 12,
1999 (inception) to April 30, 2000.
** April 4, 1994
*** Not annualized
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
First Eagle MSCI EAFE
Date International Fund Index
---- ------------------ -----
<S> <C> <C>
4/4/94 $10,000 $10,000
12/31/94 $ 9,896 $10,414
12/31/95 $11,047 $11,581
12/31/96 $12,805 $12,281
10/31/97 $13,767 $12,519
10/31/98 $14,571 $13,727
10/31/99 $15,942 $16,888
4/30/00 $18,327 $18,022
</TABLE>
Past performance is not predictive of future performance.
<PAGE>
FIRST EAGLE FUND OF AMERICA
INVESTMENT PORTFOLIO
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
<C> <S> <C> <C>
------------------------------------------------------------------------
COMMON STOCK (93.85%)
COMPUTER HARDWARE, SOFTWARE &
CONSULTING SERVICES (18.66%)
36,000 Apple Computer Inc.* $ 3,399,821 $ 4,466,250
200 Cadence Design Systems Inc.* 4,116 3,363
396,250 Ceridian Corp.* 7,549,859 8,593,672
684,800 Comdisco Inc. 17,449,468 21,271,600
355,400 NCR Corp.* 14,729,107 13,727,325
277,800 Network Associates Inc.* 8,573,553 7,066,537
155,400 Parametric Technology Corp.* 3,144,672 1,267,481
659,000 Silicon Graphics Inc.* 8,554,073 4,736,563
504,700 Storage Technology Corp.* 12,343,716 6,561,100
215,400 Sungard Data Systems Inc.* 6,990,333 7,444,763
354,700 Unisys Corp.* 8,465,847 8,224,606
------------ ------------
91,204,565 83,363,260
CONSUMER DISCRETIONARY (16.06%)
268,648 AT&T Corp./Liberty Media Group* 4,497,237 13,415,609
54,700 Cablevision Systems* 3,789,169 3,702,506
215,900 Fortune Brands Inc. 6,907,594 5,397,500
43,500 Harcourt General Inc. 1,584,306 1,625,812
438,000 Mandalay Resort Group* 9,131,381 8,267,250
287,400 Mattel Inc. 3,446,093 3,520,650
295,100 Reader's Digest Association
Inc. 8,749,864 9,443,200
349,200 Starwood Hotels & Resorts
Worldwide Inc. 11,031,250 9,930,375
69,800 Tandy Corp 1,664,225 3,978,600
120,900 Ventiv Health Inc.* 1,616,795 1,277,006
172,000 Whirlpool Corp. 11,540,214 11,201,500
------------ ------------
63,958,128 71,760,008
ELECTRONIC & COMMUNICATION EQUIPMENT (12.47%)
380,300 Cabletron Systems Inc.* 6,765,281 8,699,362
55,700 General Motors Corp. Cl `H'* 2,124,819 5,364,606
417,400 Harris Corp. 12,572,308 13,487,237
262,900 L-3 Communications* 9,542,022 13,999,425
111,250 Symbol Technologies Inc. 6,023,640 6,202,188
410,300 Thermo Electron Corp.* 9,849,790 7,949,563
------------ ------------
46,877,860 55,702,381
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
------------------------------------------------------------------------
FINANCIAL (5.80%)
<C> <S> <C> <C>
163,000 Comerica Inc. $ 9,210,957 $ 6,907,125
531,400 Finova Group Inc. 17,727,740 6,808,563
290,019 Fleet Boston Corp. 10,490,740 10,277,548
10,000 Household International Inc. 421,820 417,500
47,600 Mellon Financial Corp. 1,500,972 1,529,150
------------ ------------
39,352,229 25,939,886
HEALTH CARE (17.85%)
413,200 Amgen Inc.* 11,989,289 23,139,200
259,600 Bausch & Lomb Inc. 15,011,372 15,673,350
329,800 Becton, Dickinson & Co. 9,339,181 8,451,125
280,400 Genzyme Corp.* 12,425,685 13,687,025
603,000 St. Jude Medical Inc.* 18,865,195 18,806,063
------------ ------------
67,630,722 79,756,763
INDUSTRIALS (15.96%)
9,300 American Standard Co.* 388,848 381,300
392,800 Cendant Corp.* 9,344,234 6,063,850
355,700 Dun & Bradstreet Corp. 10,602,018 10,715,463
447,600 Equifax Inc. 14,394,711 10,938,225
273,400 Galileo International Inc. 10,934,596 6,322,375
367,300 General Dynamics Corp. 21,523,643 21,487,050
23,600 Grainger (W.W.) Inc. 1,319,211 1,023,650
827,000 Loral Space & Communications
Ltd.* 13,927,997 8,114,937
148,900 Pitney-Bowes Inc. 6,764,926 6,086,288
3,100 Textron Inc. 192,355 192,006
------------ ------------
89,392,539 71,325,144
MATERIALS (2.53%)
358,400 Ball Corp. 14,905,118 11,289,600
TELECOMMUNICATION SERVICES (4.52%)
184,400 Nextel Communications Inc.* 5,087,046 20,180,275
------------ ------------
TOTAL COMMON STOCK 418,408,207 419,317,317
------------ ------------
PREFERRED STOCK (3.84%)
67,777 Assistive Technology Inc.
Ser. E-1*'D' 883,921 883,921
51,966 Assistive Technology Inc.
Ser. E-2*'D' 500,000 500,000
331,100 News Corp. Ltd. 8,227,252 14,568,400
1,200 Tidewater Holdings Inc. Ser. A
Conv.*'D' 1,200,000 1,200,000
------------ ------------
TOTAL PREFERRED STOCK 10,811,173 17,152,321
------------ ------------
WARRANTS (0.00%)
9,873 Assistive Technology Inc.* 382 382
1,455 Assistive Technology Inc.
Ser. E-1* 0 0
------------ ------------
TOTAL WARRANTS 382 382
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
------------------------------------------------------------------------
<C> <S> <C> <C>
OTHER INVESTMENTS (0.34%)
16.1616 Euro Outlet Malls, L.P.'D' $ 0 $ 1,500,000
------------ ------------
<CAPTION>
CONTRACTS
<C> <S> <C> <C>
---------------------------------------------------------------------
CALL OPTIONS (0.19%)
4,000 Amgen Inc. @ $60 exp.
May 2000 1,712,000 850,000
------------ ------------
TOTAL INVESTMENTS 430,931,762 438,820,020
------------ ------------
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
<C> <S> <C> <C>
---------------------------------------------------------------------
SHORT TERM INVESTMENTS (3.21%)
10,000,000 United States Treasury Bill
due 7/06/00** 9,895,684 9,897,330
4,500,000 United States Treasury Bill
due 7/27/00 4,439,644 4,438,773
------------ ------------
TOTAL SHORT TERM INVESTMENTS 14,335,328 14,336,103
------------ ------------
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
CONTRACTS COST VALUE
<C> <S> <C> <C>
---------------------------------------------------------------------
COVERED CALL OPTIONS WRITTEN (-2.03%)
4,132 Amgen Inc. @ $55 exp. July 2000 $ (3,460,550)
4,000 Amgen Inc. @ $55 exp. May 2000 (1,700,000)
360 Apple Computer Inc. @ $125
exp. May 2000 (265,500)
1,000 Comdisco Inc. @ $40
exp. May 2000 (46,875)
553 General Motors Cl. `H' @ $95
exp. June 2000 (470,050)
1,844 Nextel Communications @ $95
exp. May 2000 (3,134,800)
------------
TOTAL COVERED CALL OPTIONS
WRITTEN (PREMIUM $11,165,085) (9,077,775)
------------
TOTAL INVESTMENT PORTFOLIO
(99.40%) $434,102,005 444,078,348
------------
------------
Other assets in excess of other
liabilities (0.60%) 2,660,974
------------
NET ASSETS (100.00%) $446,739,322
------------
------------
</TABLE>
* Non-income producing security.
** At April 30, 2000, a portion of this security was
segregated to cover collateral requirement for options.
'D' Restricted security priced at fair value by the
Board of Trustees. Represents ownership interest in a
security which has not been registered with the
Securities and Exchange Commission under the
Securities Act of 1933. Information concerning each
restricted security holding on April 30, 2000 is
shown below:
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Security Acquisition Date Cost
<S> <C> <C>
--------------------------------------------------------------
Assistive Technology Project
Inc. Ser. E-1 10/3/95 $ 883,921
Assistive Technology Project
Inc. Ser. E-2 12/19/96 $ 500,000
Euro Outlet Malls, L.P. 12/30/94 --
Tidewater Holdings Inc. Ser. A
Conv. Pfd. Stock 7/9/96 $1,200,000
</TABLE>
See notes to financial statements.
<PAGE>
FIRST EAGLE INTERNATIONAL FUND
INVESTMENT PORTFOLIO
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
<C> <S> <C> <C>
----------------------------------------------------------------------
COMMON AND PREFERRED STOCK (91.19%)
FINLAND (5.94%)
41,040 Nokia OYJ (telecommunications) $ 674,845 $ 2,359,781
FRANCE (21.91%)
5,724 Alcatel Alsthom
(telecommunications) 1,198,787 1,330,071
4,145 Altran Technologies SA
(engineering & consulting
services) 653,792 849,094
9,800 AXA (insurance) 842,944 1,456,515
9,100 Casino Guichard Perrachon
(supermarkets) 929,207 832,550
5,450 Suez Lyonnaise des Eaux SA
(utitlity distribution) 953,330 856,684
4,396 Pinault Printemps (department
stores) 937,265 888,894
2,300 Television Francaise SA
(television) 1,390,114 1,578,185
9,110 Vivendi SA (utility
distribution) 922,490 903,197
----------- -----------
7,827,929 8,695,190
GERMANY (7.32%)
1,712 Allianz AG (insurance) 591,678 660,370
34,972 Bayerische Motoren Werke AG
(automobiles) 1,052,103 943,294
11,300 Constantin Film AG*
(broadcasting) 782,183 588,374
7,960 ProSieben Media AG Pfd.
(television) 1,159,985 712,295
----------- -----------
3,585,949 2,904,333
HONG KONG (1.47%)
127,000 Citic Pacific Ltd. (industrial
conglomerate) 724,422 582,075
ITALY (10.28%)
10,500 Arnoldo Mondadori Editore SpA
(publishing & printing) 180,243 254,511
16,600 BIPOP-Carire SpA (banking) 506,954 1,512,666
84,900 Class Editori SpA (publishing) 1,488,177 1,160,470
48,250 Luxottica Group SpA ADR
(optical supplies) 1,145,747 1,151,969
----------- -----------
3,321,121 4,079,616
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
----------------------------------------------------------------------
<C> <S> <C> <C>
JAPAN (9.01%)
12,000 Asia Securities Printing Co.,
Ltd. (printing) $ 161,502 $ 157,668
47,000 Matsushita Electric Industrial
Co., Ltd. (electronics) 1,111,843 1,243,766
111,000 The Nikko Securities Co., Ltd.
(banking) 738,514 1,309,507
10 NTT DoCoMo, Inc.
(telecommunications) 354,120 334,027
38,000 Sumitomo Corp. (trading &
distribution) 437,663 425,445
11,000 The Tokio Marine & Fire
Insurance Co., Ltd.
(insurance) 105,344 107,277
----------- -----------
2,908,986 3,577,690
NETHERLANDS (8.74%)
37,778 Hunter Douglas NV (window
treatments) 1,223,334 864,068
174 ING Groep NV (banking) 8,505 9,516
52,516 Philips Electronics NV
(electronics) 1,216,372 2,348,242
10,382 Wolters Kluwer NV (publishing) 151,013 245,596
----------- -----------
2,599,224 3,467,422
PORTUGAL (2.17%)
54,213 Telecel-Communicacoes Pessoais,
S.A. (telecommunications) 1,038,553 859,583
SPAIN (1.84%)
65,000 NH Hoteles, S.A.* (hotels) 814,145 731,502
SWEDEN (4.61%)
13,060 Telefonaktiebolaget LM Ericsson
AB Cl. `B'*
(telecommunications) 840,420 1,162,607
64,944 Information Highway AB*
(computer services) 810,518 667,357
----------- -----------
1,650,938 1,829,964
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
----------------------------------------------------------------------
<C> <S> <C> <C>
SWITZERLAND (2.46%)
5,025 Charles Voegele Holdings*
(apparel retailer) $ 894,760 $ 978,422
THAILAND (0.57%)
215,000 Thai Farmers Bank Ltd.*
(banking) 356,259 225,811
UNITED KINGDOM (13.06%)
25,309 Cable & Wireless plc
(telecommunications) 322,567 421,751
72,128 Premier Farnell plc
(electronics distribution) 484,371 468,928
403,200 Rentokil Initial plc
(environmental services) 947,151 1,108,784
80,000 SmithKline Beecham plc
(pharmaceutical) 1,024,140 1,100,923
147,701 Vodafone Airtouch plc
(telecommunications) 516,705 678,302
82,000 Williams plc (security devices) 470,612 466,069
61,850 WPP Group plc (advertising) 331,043 938,734
----------- -----------
4,096,589 5,183,491
UNITED STATES (1.81%)
13,500 UnitedGlobalcom Inc.*
(broadcast services) 688,359 717,188
----------- -----------
TOTAL INVESTMENTS 31,182,079 36,192,068
----------- -----------
----------- -----------
<CAPTION>
PRINCIPAL
----------------------------------------------------------------------
<C> <S> <C> <C>
SHORT TERM INVESTMENTS (6.26%)
2,500,000 United States Treasury Bill
due 6/8/00** 2,485,117 2,485,173
----------- -----------
TOTAL INVESTMENT PORTFOLIO
(97.45%) $33,667,196 38,677,241
----------- -----------
-----------
Other assets in excess of other
liabilities (2.55%) 1,010,923
-----------
NET ASSETS (100.00%) $39,688,164
-----------
-----------
</TABLE>
* Non-income producing security.
** At April 30, 2000, a portion of this
security was segregated to cover collateral
requirements for currency contracts.
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
FIRST EAGLE FIRST EAGLE
FUND OF AMERICA INTERNATIONAL FUND
<S> <C> <C>
ASSETS:
Investments -- Cost $430,931,762 $31,182,079
Short-term investments -- Cost 14,335,328 2,485,117
Investments, at value 438,820,020 36,192,068
Short-term investments, at value 14,336,103 2,485,173
Cash 588,303 939,576
Dividends and interest receivable 155,725 69,077
Receivable for open forward foreign
currency contracts (note 6) -- 4,313
Receivable for Fund shares sold 1,404,779 --
Receivable for investments sold 4,256,692 1,187,033
Other receivable 631,000 --
------------ -----------
TOTAL ASSETS 460,192,622 40,877,240
------------ -----------
LIABILITIES:
Options written at value** (note 4) 9,077,775 --
Payable for investments purchased 3,533,639 1,019,650
Payable for closed forward foreign
currency contracts -- 15,745
Payable for Fund shares redeemed 289,668 --
Management fee payable 366,208 32,867
Accrued operating expenses 186,010 120,814
------------ -----------
TOTAL LIABILITIES 13,453,300 1,189,076
------------ -----------
TOTAL NET ASSETS $446,739,322 $39,688,164
------------ -----------
------------ -----------
Net Assets were comprised of:
Par value of capital shares (note 5) 235,341 23,287
Capital paid in excess of par value
(note 5) 418,210,093 29,743,263
Net unrealized appreciation of
investments, written options and
foreign currency related transactions 9,976,343 5,007,263
Accumulated net realized gain on
investments, written options and
foreign currency related transactions 18,788,451 5,184,252
Undistributed net investment loss (470,906) (269,901)
------------ -----------
NET ASSETS $446,739,322 $39,688,164
------------ -----------
------------ -----------
SHARES OUTSTANDING
Class Y 22,562,037 2,274,886
Class C 915,310 49,311
Class A 56,795 4,474
NET ASSET VALUE PER SHARE:
Class Y (and redemption price) $19.00 $17.05
Class C* $18.64 $16.72
Class A $18.94 $16.99
</TABLE>
* For the period from November 1, 1999 to February 29, 2000 and effective
March 1, 2000, the redemption price is NAV of Class C shares reduced by a
1.25% and 1.00% contingent deferred sales charge, respectively, if shares are
redeemed within the first year of purchase.
** Premiums received for First Eagle Fund of America were $11,165,085.
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
FIRST EAGLE FIRST EAGLE
FUND OF AMERICA INTERNATIONAL FUND
<S> <C> <C>
INVESTMENT INCOME:
Dividend income $ 2,284,527 $ 113,880
Interest income 247,051 79,882
Miscellaneous Income 632,804 --
Less: Foreign withholding tax -- (17,178)
----------- ----------
TOTAL INVESTMENT INCOME 3,164,382 176,584
----------- ----------
EXPENSES:
Management fee (note 2) 2,519,016 198,911
Services fee (note 2) 629,753 49,728
Transfer agent fees 138,169 19,228
Legal fees 61,937 43,065
Custodian fees (note 3) 42,021 34,859
Registration expenses 51,164 15,838
Audit fees 24,027 24,020
Accounting fees 28,654 44,468
Trustee fees 18,048 18,507
Printing expenses 18,126 2,757
Miscellaneous expenses 31,816 8,874
Distribution fees (note 2) 72,557 3,228
----------- ----------
TOTAL EXPENSES 3,635,288 463,483
----------- ----------
Less: Custody earnings credits (note 3) -- (16,998)
----------- ----------
NET EXPENSES 3,635,288 446,485
----------- ----------
NET INVESTMENT LOSS (470,906) (269,901)
----------- ----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS, WRITTEN OPTIONS AND FOREIGN
CURRENCY RELATED TRANSACTIONS:
Net Realized Gain (Loss) from:
Investment transactions 20,587,536 5,186,962
Foreign currency translation -- (17,432)
----------- ----------
NET REALIZED GAIN 20,587,536 5,169,530
Change in Net Unrealized Appreciation of
Investments, Written Options and Foreign
Currency Related Transactions:
Beginning of period 24,984,200 4,651,494
End of period 9,976,343 5,007,263
----------- ----------
(DECREASE)/INCREASE IN NET UNREALIZED
APPRECIATION (15,007,857) 355,769
----------- ----------
NET GAIN ON INVESTMENTS, WRITTEN OPTIONS
AND FOREIGN CURRENCY RELATED TRANSACTIONS 5,579,679 5,525,299
----------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS $ 5,108,773 $5,255,398
----------- ----------
----------- ----------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST EAGLE FUND OF AMERICA
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(unaudited)
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
OPERATIONS:
Net investment (loss)/income $ (470,906) $ 1,471,360
Net realized gain 20,587,536 82,107,831
Decrease in net unrealized
appreciation (15,007,857) (37,261,549)
------------- -------------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 5,108,773 46,317,642
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
Net realized gain (40,736,792) (79,492,608)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (40,736,792) (79,492,608)
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 87,662,745 256,276,010
Net asset value of shares issued
for reinvestment of capital gains 34,916,258 69,129,616
Cost of shares redeemed (197,641,352) (127,273,264)
------------- -------------
(DECREASE)/INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (75,062,349) 198,132,362
------------- -------------
(DECREASE)/INCREASE IN NET ASSETS (110,690,368) 164,957,396
NET ASSETS:
Beginning of period 557,429,690 392,472,294
------------- -------------
END OF PERIOD $ 446,739,322 $ 557,429,690
------------- -------------
------------- -------------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST EAGLE INTERNATIONAL FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(unaudited)
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
OPERATIONS:
Net investment loss $ (269,901) $ (288,694)
Net realized gain 5,169,530 3,513,921
Increase in net unrealized appreciation 355,769 4,062
----------- -----------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 5,255,398 3,229,289
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
Net realized gain (3,094,098) (3,269,629)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,094,098) (3,269,629)
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 1,249,394 5,260,401
Net asset value of shares issued for
reinvestment of capital gains 2,565,949 2,737,672
Cost of shares redeemed (1,888,189) (10,888,194)
----------- -----------
INCREASE/(DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 1,927,154 (2,890,121)
----------- -----------
INCREASE/(DECREASE) IN NET ASSETS 4,088,454 (2,930,461)
NET ASSETS:
Beginning of period 35,599,710 38,530,171
----------- -----------
END OF PERIOD $39,688,164 $35,599,710
----------- -----------
----------- -----------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST EAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES -- First Eagle Fund of America,
Inc. and First Eagle International Fund, Inc., each a Maryland corporation, were
reorganized as separate Series of First Eagle Trust, a Delaware business trust,
(the 'Trust') effective February 28, 1998. The trust is registered under the
Investment Company Act of 1940 as amended (the 'Act') as a non-diversified,
open-end management investment company. The Trust presently consists of two
separate portfolios ('Series'): First Eagle Fund of America (a 'Fund') and First
Eagle International Fund (a 'Fund'). Each Series has distinct investment
objectives and policies. A shareholder's interest is limited to the Series in
which she or he owns shares. Each Series offers Class Y, Class C, and Class A
shares. All classes of shares have identical rights to earnings, assets, and
voting privileges, except that each class has its own distribution and/or
service plan, and has exclusive voting rights with respect to matters affecting
only that class.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- Any security for which the primary market is on
an exchange is valued at the last sale price on such exchange on the day of
valuation or, if there was no sale on such day, the mean between the last bid
and asked prices quoted on such day. Equity securities listed on the NASDAQ
National Market System are valued at the last sale price or, if there was no
sale on such day, at the mean between the most recently quoted bid and asked
prices. Corporate bonds (other than convertible debt securities) and U.S.
Government Securities that are actively traded in the over-the-counter market,
including listed securities for which the primary market is believed to be
over-the-counter, are valued on the basis of valuations provided by a pricing
service which uses information with respect to transactions in bonds, quotations
from bond dealers, market transactions in comparable securities and various
relationships between securities in determining value. Other securities are
valued at the mean between the most recently quoted bid and asked prices. Short-
term debt instruments which mature in less than 60 days are valued at amortized
cost, unless the Board of Trustees determines that such valuation does not
represent fair value. Securities which are otherwise not readily marketable or
securities for which market quotations are not readily available are valued in
good faith at fair value in accordance with procedures adopted by the Trust's
Board of Trustees.
<PAGE>
A Valuation Committee of the Board of Trustees has been established to determine
the value of such securities after consultation with the Trust's investment
adviser.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains or losses
on security transactions are determined based on the specific identification
method. Discounts and premiums on purchases of investments are accreted and
amortized, respectively, as adjustments to interest income and cost of
securities. Dividend income is recorded on the ex-dividend date. Interest income
is recorded on the accrual basis.
OPTIONS: In order to produce incremental earnings or protect against changes in
the value of portfolio securities, a Fund may buy and sell put and call options,
write covered call options on portfolio securities and write cash-secured put
options.
A Fund generally purchases put options or writes covered call options to hedge
against adverse movements in the value of portfolio holdings. A Fund may also
use options for speculative purposes, although it does not employ options for
this purpose at the present time. A Fund will segregate assets to cover its
obligations under option contracts.
Options contracts are valued daily based upon the last sale price on the
principal exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. A Fund will realize a gain or loss upon the expiration
or closing of the option transaction. When an option is exercised, the proceeds
on the sales of a written call option, the purchase cost of a written put
option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
The risk in writing a call option is that a Fund gives up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that a Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
of buying an option is that a Fund pays a premium whether or not the option is
exercised. A Fund also has the additional risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist. A Fund may also
write over-the-counter options where the completion of the obligation is
dependent upon the credit standing of the counterparty.
FORWARD CURRENCY CONTRACTS: In connection with purchases and sales of securities
denominated in foreign currencies, a Fund may enter into forward currency
contracts. Additionally, a Fund may enter
<PAGE>
into such contracts to hedge certain other foreign currency denominated
investments. These contracts are recorded at market value, and the related
unrealized foreign exchange gains and losses are included in the statement of
operations. A Fund will realize a gain or loss upon the closing or settlement of
the forward transaction. Such realized gains or 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.
C. FOREIGN CURRENCY TRANSLATION -- The market values of securities which are not
traded in United States 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 a Fund are presented at the foreign exchange rates and market
values at the close of the period. A Fund does not isolate that portion of gains
and losses on investments which is due to change in foreign exchange rates from
that which is due to changes in market prices of the equity securities.
D. FEDERAL INCOME TAX STATUS -- It is the Funds' policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to shareholders.
Accordingly, no federal income tax provision is required.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income, if any, and distribution of net realized gain from investment
transactions, if any, will be made annually. The Funds record dividends and
distributions to its shareholders on the record date.
F. ESTIMATES AND ASSUMPTIONS -- Estimates and assumptions are required to be
made regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in economic
environment, financial markets and any other parameters used in determining
these estimates could cause results to differ from these amounts.
NOTE 2. INVESTMENT ADVISORY AGREEMENT AND SERVICES AGREEMENT -- Arnhold and S.
Bleichroeder Advisers, Inc. (the 'Adviser'), a wholly owned subsidiary of
Arnhold and S. Bleichroeder, Inc. ('ASB'), manages the Trust. For its services,
the Adviser receives,
<PAGE>
pursuant to an Investment Advisory Agreement between the Trust and the Adviser
(the 'Advisory Agreement') an annual advisory fee of 1.0% of the average daily
net assets of each Fund.
ASB (the 'Distributor') serves as the distributor of the Trust's Class Y,
Class C, and Class A shares. The Distributor receives an annual services fee at
the annual rate of 0.25% of each portfolio's daily net assets payable monthly,
pursuant to a Distribution and Services Agreement which was approved by the
Board of Trustees, to cover expenses incurred by ASB for providing shareholder
liaison services, including assistance with subscriptions, redemptions and other
shareholder questions.
For the period from November 1, 1999 to February 29, 2000, shareholders paid the
distributor a contingent deferred sales charge ('CDSC') of 1.25% on Class C
shares which applied if redemption occurred within the first year of purchase.
Effective March 1, 2000, the contingent deferred sales charge has been changed
to 1.00%. In addition, the Trust also pays a distribution fee (12b-1) with
respect to Class C shares and Class A shares calculated at the annual rate of
0.75% and 0.25% respectively, of the average daily net assets. For the six
months ended April 30, 2000, total 12b-1 fees for Class C shares and Class A
shares were as follows:
<TABLE>
<CAPTION>
Class C Class A
------- -------
<S> <C> <C>
First Eagle Fund of America $70,986 $1,571
First Eagle International Fund $ 3,133 $ 95
</TABLE>
NOTE 3. CUSTODIAN FEES -- The Fund has entered into an expense offset agreement
with its custodian wherein it receives credit toward the reduction of custodian
fees whenever there are uninvested cash balances. As of April 30, 2000 the
portfolios' custodian fees and related offset were as follows:
<TABLE>
<CAPTION>
Custodian Fees Credits Earned
-------------- --------------
<S> <C> <C>
First Eagle Fund of America $42,021 --
First Eagle International Fund $34,859 $16,998
</TABLE>
NOTE 4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The aggregate
costs of purchases and proceeds from sales of investments (including maturities,
but excluding short-term investments), during the six months ended April 30,
2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
First Eagle Fund of America $128,312,879 $242,478,821
First Eagle International Fund $ 31,183,370 $ 30,542,164
</TABLE>
<PAGE>
For the six months ended April 30, 2000 First Eagle Fund of America and First
Eagle International Fund had the following written options transactions:
FIRST EAGLE FUND OF AMERICA
<TABLE>
<CAPTION>
Number of Contracts Premium
------------------- -------
<S> <C> <C>
Options outstanding at
October 31, 1999 12,046 $ 5,104,916
Options written 26,503 19,198,037
Options exercised 4,643 2,396,448
Options expired/closed 22,017 10,741,420
------ -----------
Options outstanding at
April 30, 2000 11,889 $11,165,085
------ -----------
------ -----------
</TABLE>
FIRST EAGLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
Number of Contracts Premium
------------------- -------
<S> <C> <C>
Options outstanding at
October 31, 1999 25 $ 75,235
Options written 25 137,420
Options exercised 25 137,420
Options expired/closed 25 75,235
-- --------
Options outstanding at April 30, 2000 0 $ 0
-- --------
-- --------
</TABLE>
For the six months ended April 30, 2000, the First Eagle Fund of America and
First Eagle International Fund paid brokerage commissions on securities
transactions of $716,597 and $127,777 of which $21,580 and $9,439 was paid to
ASB, respectively.
NOTE 5. CAPITAL SHARES -- The Declaration of the Trust authorizes the issuance
of an unlimited number of shares of beneficial interest without par value. The
Trust has established Class Y, Class C, and Class A shares. Each share of a
class represents an identical interest in the portfolio and has the same rights,
except that each class bears certain expenses specifically related to the
distribution of its shares.
At April 30, 2000, total paid-in capital amounted to the following for each
class:
<TABLE>
<CAPTION>
Class Y Class C Class A
------- ------- -------
<S> <C> <C> <C>
First Eagle Fund of America $397,049,934 $20,110,033 $1,285,467
First Eagle International
Fund $ 28,907,868 $ 791,689 $ 66,993
</TABLE>
<PAGE>
Transactions in shares of each portfolio were as follows:
<TABLE>
<CAPTION>
Six months ended Year ended
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE FUND OF AMERICA CLASS Y
Shares sold 4,350,258 $ 85,831,319 10,506,742 $ 234,618,369
Shares redeemed (9,759,616) (192,662,717) (5,720,598) (126,601,217)
Shares issued on
reinvestment 1,764,711 33,493,785 3,223,043 67,570,333
---------- ------------- ----------- -------------
Net (Decrease)/
Increase (3,644,647) $ (73,337,613) 8,009,187 $ 175,587,485
---------- ------------- ----------- -------------
---------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
Six months ended Year ended
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE FUND OF AMERICA CLASS C
Shares sold 67,238 $ 1,280,526 902,526 $ 19,902,637
Shares redeemed (197,043) (3,834,848) (31,574) (671,996)
Shares issued on
reinvestment 73,583 1,375,169 69,078 1,476,797
-------- ----------- -------- ------------
Net (Decrease)/Increase (56,222) $(1,179,153) 940,030 $ 20,707,438
-------- ----------- -------- ------------
-------- ----------- -------- ------------
</TABLE>
<TABLE>
<CAPTION>
For the period from
Six months ended November 20, 1998 to
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE FUND OF AMERICA CLASS A
Shares sold 28,220 $ 550,900 77,985 $ 1,755,004
Shares redeemed (55,712) (1,143,787) (2) (51)
Shares issued on
reinvestment 2,498 47,304 3,806 82,486
-------- ----------- -------- ------------
Net (Decrease)/Increase (24,994) $ (545,583) 81,789 $ 1,837,439
-------- ----------- -------- ------------
-------- ----------- -------- ------------
</TABLE>
<TABLE>
<CAPTION>
Six months ended Year ended
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE INTERNATIONAL FUND CLASS Y
Shares sold 66,624 $ 1,161,846 301,060 $ 4,668,298
Shares redeemed (104,189) (1,814,458) (704,487) (10,755,409)
Shares issued on
reinvestment 163,961 2,544,669 175,851 2,716,066
-------- ----------- -------- ------------
Net Increase/(Decrease) 126,396 $ 1,892,057 (227,576) $ (3,371,045)
-------- ----------- -------- ------------
-------- ----------- -------- ------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six months ended Year ended
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE INTERNATIONAL FUND CLASS C
Shares sold 5,200 $ 84,835 34,641 $ 525,359
Shares redeemed (4,013) (73,731) (8,536) (132,763)
Shares issued on
reinvestment 1,393 21,280 1,409 21,606
------ -------- ------ ---------
Net Increase 2,580 $ 32,384 27,514 $ 414,202
------ -------- ------ ---------
------ -------- ------ ---------
</TABLE>
<TABLE>
<CAPTION>
For the period from
Six months ended March 11, 1999 to
April 30, 2000 October 31, 1999
-------------- ----------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
FIRST EAGLE INTERNATIONAL FUND CLASS A
Shares sold -- $ -- 4,475 $66,744
Shares redeemed -- -- (1) (22)
Shares issued on reinvestment -- -- -- --
----- --------- ----- -------
Net Increase -- $ -- 4,474 $66,722
----- --------- ----- -------
----- --------- ----- -------
</TABLE>
Of the 23,534,142 shares of common stock outstanding for First Eagle Fund of
America and 2,328,671 shares of common stock outstanding for First Eagle
International Fund at April 30, 2000 ASB owned 34,305 and 10,767 shares and the
ASB Profit Sharing Plan owned 514,008 and 247,348 shares respectively. The
directors and officers of the Trust owned approximately 1,178,338 shares of
First Eagle Fund of America and 355,289 shares of the First Eagle International
Fund at April 30, 2000.
NOTE 6. FORWARDS -- As of April 30, 2000, First Eagle International had entered
into forward currency contracts, as summarized below, resulting in net
unrealized appreciation of $25,051:
<PAGE>
FIRST EAGLE INTERNATIONAL FUND
TRANSACTION HEDGES:
<TABLE>
<CAPTION>
Foreign Currency Purchases
SETTLEMENT U.S.$ VALUE AT U.S.$ UNREALIZED
DATES FOREIGN CURRENCY TO APRIL 30, TO BE LOSS AT
THROUGH BE RECEIVED 2000 DELIVERED APRIL 30, 2000
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/01/00 280,023 Euro 255,169 269,214) (14,045)
5/08/00 446,828 Pound Sterling 699,151 705,882 (6,731)
-------- -------- --------
954,320 975,096 (20,776)
-------- -------- --------
<CAPTION>
Foreign Currency Sales
SETTLEMENT U.S.$ U.S.$ VALUE AT UNREALIZED
DATES FOREIGN CURRENCY TO TO BE APRIL 30, GAIN AT
THROUGH BE DELIVERED RECEIVED 2000 APRIL 30, 2000
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/01/00 949,571 Euro 904,953 865,292 39,661
5/08/00 179,092 Pound Sterling 282,079 280,226 1,853
--------- --------- ------
1,187,032 1,145,518 41,514
--------- --------- ------
</TABLE>
PORTFOLIO HEDGES:
<TABLE>
<CAPTION>
Foreign Currency Sales
SETTLEMENT U.S.$ U.S.$ VALUE AT UNREALIZED
DATES FOREIGN CURRENCY TO TO BE APRIL 30, GAIN AT
THROUGH BE DELIVERED RECEIVED 2000 APRIL 30, 2000
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/10/00 370,000,000 Japanese Yen 3,418,101 3,413,788 4,313
---------- ---------- -------
$5,559,453 $5,534,402 $25,051
---------- ---------- -------
---------- ---------- -------
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD
FUND OF AMERICA CLASS Y SHARES
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $20.46 $21.53 $20.59 $17.97 $16.28 $15.45
INCOME FROM
INVESTMENT
OPERATIONS
Net investment
(loss)/income (0.02) 0.07 (0.08) (0.06) (0.04) (0.04)
Net realized and
unrealized gain 0.10 2.45 3.62 5.31 4.08 2.87
------ ------ ------ ------ ------ ------
Total from investment
operations 0.08 2.52 3.54 5.25 4.04 2.83
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
FROM:
Net investment
income -- -- -- -- -- --
Net realized gain (1.54) (3.59) (2.60) (2.63) (2.35) (2.00)
------ ------ ------ ------ ------ ------
Total distributions (1.54) (3.59) (2.60) (2.63) (2.35) (2.00)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END
OF PERIOD $19.00 $20.46 $21.53 $20.59 $17.97 $16.28
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total Return* 0.4 %'D''D' 12.1% 19.2 % 31.0 % 27.1 % 21.6 %
Net assets, end of
period $428,600,487 $536,157,945 $391,797,350 $254,438,325 $163,402,847 $134,350,180
RATIOS TO AVERAGE NET
ASSETS:
Expenses (1) 1.4 %'D' 1.4% 1.5 % 1.7 % 1.8 % 1.9 %
Net investment
(loss)/income (0.2)%'D' 0.3% (0.4)% (0.3)% (0.2)% (0.3)%
Portfolio turnover
rate 43 % 89% 83 % 98 % 93 % 81 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the year ended October 31, 1999, the Fund has earned credits from
the custodian which reduce service fees incurred. If the credits are
taken into consideration, the ratio of expenses to average net assets
would be 1.4%.
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD:
FUND OF AMERICA CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR MARCH 2, 1998**
ENDED APRIL 30, ENDED OCTOBER 31, THROUGH OCT. 31,
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 20.18 $ 21.43 $ 21.07
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss (0.09) (0.20) (0.16)
Net realized and unrealized
gain 0.09 2.54 0.52
----------- ----------- --------
Total from investment
operations 0.00 2.34 0.36
----------- ----------- --------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- --
Net realized gain (1.54) (3.59) --
----------- ----------- --------
Total distributions (1.54) (3.59) --
----------- ----------- --------
NET ASSET VALUE, END OF PERIOD $ 18.64 $ 20.18 $ 21.43
----------- ----------- --------
----------- ----------- --------
Total Return* 0.0 %'D''D' 11.2 % 1.7 %'D''D'
Net assets, end of period $17,063,230 $19,601,461 $674,944
RATIOS TO AVERAGE NET ASSETS:
Expenses (1) 2.2 %'D' 2.1 % 1.8 %'D'
Net investment loss (0.9)%'D' (0.9)% (0.9)%'D'
Portfolio turnover rate 43 % 89 % 83 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the year ended October 31, 1999, the Fund has earned credits from
the custodian which reduce service fees incurred. If the credits are
taken into consideration, the ratio of expenses to average net assets
would be 2.1%.
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD:
FUND OF AMERICA CLASS A SHARES
<TABLE>
<CAPTION>
FOR THE SIX MONTHS NOVEMBER 20, 1998**
ENDED APRIL 30, THROUGH OCTOBER 31,
2000 1999
---- ----
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.42 $ 20.33
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.04) (0.09)
Net realized and unrealized gain 0.10 1.93
---------- ----------
Total from investment operations 0.06 1.84
---------- ----------
LESS DISTRIBUTIONS FROM:
Net investment income -- --
Net realized gain (1.54) (1.75)
---------- ----------
Total distributions (1.54) (1.75)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 18.94 $ 20.42
---------- ----------
---------- ----------
Total Return* 0.3 %'D''D' 8.6 %'D''D'
Net assets, end of period $1,075,605 $1,670,284
RATIOS TO AVERAGE NET ASSETS:
Expenses (1) 1.7 %'D' 1.6 %'D'
Net investment loss (0.4)%'D' (0.4)%'D'
Portfolio turnover rate 43 % 89 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the period from November 19, 1998 ended October 31, 1999 , the Fund
has earned credits from the custodian which reduce service fees
incurred. If the credits are taken into consideration, the ratio of
expenses to average net assets would be 1.6%'D'.
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD:
INTERNATIONAL FUND CLASS Y
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE FROM
SIX MONTHS FOR THE YEAR ENDED JANUARY 1, FOR THE YEAR ENDED
ENDED OCTOBER 31, THROUGH DECEMBER 31,
APRIL 30, ------------------------- OCTOBER 31, -------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $16.18 $16.09 $16.17 $15.04 $13.38 $12.37
INCOME FROM
INVESTMENT
OPERATIONS
Net investment loss (0.13) (0.17) (0.06) (0.12) (0.16) (0.13)
Net realized and
unrealized gain 2.41 1.60 0.95 1.25 2.29 1.57
------ ------ ------ ------ ------ ------
Total from investment
operations 2.28 1.43 0.89 1.13 2.13 1.44
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
FROM:
Net investment
income -- -- -- -- -- --
Net realized gain (1.41) (1.34) (0.97) -- (0.47) (0.43)
------ ------ ------ ------ ------ ------
Total distributions (1.41) (1.34) (0.97) -- (0.47) (0.43)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END
OF PERIOD $17.05 $16.18 $16.09 $16.17 $15.04 $13.38
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total Return* 15.0 %'D''D' 9.4 % 5.8 % 7.5 %'D''D' 15.9 % 11.6 %
Net assets, end of
period $38,787,546 $34,781,555 $38,222,433 $36,320,210 $32,105,280 $22,420,889
RATIOS TO AVERAGE NET
ASSETS:
Expenses (1) 2.3 %'D' 2.4 % 2.4 % 2.3 %'D' 2.9 % 3.1 %
Net investment loss (1.5)%'D' (1.1)% (0.5)% (1.0)%'D' (1.1)% (1.1)%
Portfolio turnover
rate 81 % 87 % 85 % 54 % 101 % 166 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the six months ended April 30, 2000 and for the year ended
October 31, 1999 the Fund has earned credits from the custodian
which reduce service fees incurred. If the credits are taken into
consideration the expense ratios are 2.2%'D' and 2.4%, respectively.
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD:
INTERNATIONAL FUND CLASS C
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE MARCH 2, 1998
ENDED YEAR ENDED THROUGH
APRIL 30, OCTOBER 31, OCTOBER 31,
2000 1999 1998**
---- ---- ------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.95 $ 16.01 $ 16.90
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss)/income (0.19) (0.29) 0.84
Net realized and unrealized gain/(loss) 2.37 1.57 (1.73)
-------- -------- --------
Total from investment operations 2.18 1.28 (0.89)
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- --
Net realized gain (1.41) (1.34) --
-------- -------- --------
Total distributions (1.41) (1.34) --
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 16.72 $ 15.95 $ 16.01
-------- -------- --------
-------- -------- --------
Total Return* 14.5 %'D''D' 8.4 % (5.3)%'D''D'
Net assets, end of period $824,602 $745,850 $307,738
RATIOS TO AVERAGE NET ASSETS:
Expenses (1) 3.1 %'D' 3.2 % 2.3 %'D'
Net investment (loss)/income (2.3)%'D' (2.0)% 4.2 %'D'
Portfolio turnover rate 81 % 87 % 93 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the six months ended April 30, 2000 and for the year ended
October 31, 1999 the Fund has earned credits from the custodian
which reduce service fees incurred. If the credits are taken into
consideration the ratio of expenses to average net assets would be
3.0%'D' and 3.1%, respectively.
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH
PERIOD:
INTERNATIONAL FUND CLASS A
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS MARCH 11, 1999
ENDED THROUGH
APRIL 30, OCTOBER 31,
2000 1999**
---- ------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.15 $ 15.06
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.15) (0.15)
Net realized and unrealized gain 2.40 1.24
------- -------
Total from investment operations 2.25 1.09
------- -------
LESS DISTRIBUTIONS FROM:
Net investment income -- --
Net realized gain (1.41) --
------- -------
Total distributions (1.41) --
------- -------
NET ASSET VALUE, END OF PERIOD $ 16.99 $ 16.15
------- -------
------- -------
Total Return* 14.8 %'D''D' 7.2 %'D''D'
Net assets, end of period $76,016 $72,305
RATIOS TO AVERAGE NET ASSETS:
Expenses (1) 2.6 %'D' 2.7 %'D'
Net investment loss (1.8)%'D' (1.6)%'D'
Portfolio turnover rate 81 % 87 %
</TABLE>
* Past performance is not predictive of future performance.
** Commencement of investment operations
'D' Annualized
'D''D' Total return not annualized
(1) For the six months ended April 30, 2000 and for the period from
November 19, 1998 ended October 31, 1999, the Fund has earned credits
from the custodian which reduce service fees incurred. If the credits
are taken into consideration the ratio of expenses to average net
assets would be 2.5%'D' and 2.7%'D', respectively.
<PAGE>
FIRST EAGLE FUNDS
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105-4300
TOLL FREE (800) 451-3623
TRANSFER AGENT FAX: (614) 470-8702
WEBSITE: www.firsteaglefunds.com
TRUSTEES
JOHN P. ARNHOLD
CANDACE K. BEINECKE
EDWIN J. EHRLICH
K. GEORG GABRIEL
ROBERT J. GELLERT
JAMES E. JORDAN
MICHAEL M. KELLEN, Vice Chairman of the Board
WILLIAM M. KELLY
STANFORD S. WARSHAWSKY, Chairman of the Board
OFFICERS
JOHN P. ARNHOLD, Co-President
HAROLD J. LEVY, Co-President
DAVID L. COHEN, Senior Vice President
ARTHUR F. LERNER, Senior Vice President
ROBERT MILLER, Treasurer
ROBERT BRUNO, Vice President and Secretary
TRACY LA POINTE SALTWICK, Vice President
CARI LEVINE, Asst. Treasurer
STEFANIE SPRITZLER, Asst. Treasurer
SUZAN J. AFIFI, Asst. Secretary
INVESTMENT ADVISER
ARNHOLD AND S. BLEICHROEDER ADVISERS, INC.
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10005
TRANSFER AGENT
BISYS FUND SERVICES, INC.
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
SHEARMAN & STERLING
599 Lexington Avenue
New York, NY 10022
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
757 Third Avenue
New York, NY 10017
This report is not authorized for distribution to prospective investors unless
accompanied by a current prospectus and the most recent calendar quarter
standardized performance information.
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as...................................'D'
