FIRST EAGLE SOGEN FUNDS, INC.
First Eagle SoGen Global Fund
First Eagle SoGen Overseas Fund
First Eagle SoGen Gold Fund
First Eagle SoGen Money Fund
1345 Avenue of the Americas
New York, New York 10105
(800) 334-2143
CUMULATIVE SUPPLEMENT DATED MARCH 1, 2000
TO PROSPECTUS DATED AUGUST 1, 1999.
Fund Name Changes. The names of the Company and of each Fund have been changed.
The Company, SoGen Funds, Inc. has been renamed First Eagle SoGen Funds, Inc.
SoGen International Fund has been renamed First Eagle SoGen Global Fund
("Global Fund") in order to reflect the "global" aspect of the fund's
investments in both U.S. and international securities. In addition, SoGen
Overseas Fund has been renamed First Eagle SoGen Overseas Fund ("Overseas
Fund"), SoGen Gold Fund has been renamed First Eagle SoGen Gold Fund ("Gold
Fund") and SoGen Money Fund has been renamed First Eagle SoGen Money Fund
("Money Fund") (each a "Fund" and collectively, the "Funds").
New Investment Advisory Arrangements. As approved by the shareholders of each
Fund at a Special Meeting of Shareholders held on December 22, 1999, Arnhold and
S. Bleichroeder Advisers, Inc. ("ASB Advisers") became the investment adviser to
each of the Funds effective as of December 31, 1999 under a contract that is
substantially identical to the Funds' prior advisory contract with Socie'te'
Ge'ne'rale Asset Management Corp. ("SGAM Corp."), except that each Fund now pays
accrued advisory fees on a monthly basis, rather than a quarterly basis. ASB
Advisers is a wholly-owned subsidiary of Arnhold and S. Bleichroeder, Inc.
("A&SB"), a privately owned investment firm that, on December 31, 1999, acquired
80.1% of the outstanding equity securities of the Funds' prior investment
adviser. Mr. Jean-Marie Eveillard, Chief Executive Officer of SGAM Corp. and
owner of the remaining 19.9% of the equity of SGAM Corp., has entered into an
agreement with A&SB providing for the eventual sale of his shares of SGAM Corp.
to A&SB in three installments over a period of approximately eight years.
The primary investment management team of SGAM Corp., including Jean-Marie
Eveillard, has joined ASB Advisers and will continue to manage the portfolios
of the Funds. The investment objectives and policies of each Fund have remained
unchanged.
Effective March 1, 2000, the Board of Directors approved A&SB as the
distributor and principal underwriter for the Funds. The address of ASB
Advisers and A&SB is 1345 Avenue of the Americas, New York, New York 10105.
1
<PAGE>
The disclosure in the Prospectus under "Management of the Company -- Investment
Adviser" on page 15 is replaced in its entirety to read as follows:
Effective December 31, 1999, the adviser of the Company is ASB Advisers, a
wholly owned subsidiary of A&SB. A&SB is the successor firm of two German
banking houses -- Gebr. Arnhold founded in Dresden in 1864 and S. Bleichroeder
founded in Berlin in 1803. The firm moved to New York City in 1937 and conducts
its activities under the current name of Arnhold and S. Bleichroeder, Inc. A&SB
uses its experience and worldwide contacts to provide asset management, global
securities research and trading, and investment banking services to
institutional clients throughout the world.
ASB Advisers is responsible for the continuous supervision and management of
the Funds under the direction of the Funds' Board of Directors. The advisory
fee rates paid by each of the Funds to ASB Advisers are the same annual rates
as the Funds paid to SGAM Corp., the Funds' former investment adviser. For the
fiscal year ended March 31, 1999, Global Fund paid advisory fees equal to 1% of
the first $25 million and 0.75% of the amount in excess of $25 million of its
average daily net asset value and Overseas Fund, Gold Fund and Money Fund paid
advisory fees equal to 0.75%, 0.75% and 0.40%, respectively, of their average
daily net asset values.
The disclosure in the Prospectus under "Distribution Arrangements" on page 16
is replaced in its entirety to read as follows:
The Funds' shares are offered, in states and countries in which such offer is
lawful, to investors either through selected securities dealers or directly by
A&SB, the Funds' principal underwriter. Class A shares of Global Fund and
Overseas Fund and shares of Gold Fund are subject to a sales charge that is
described under "How to Invest -- How to Purchase Shares -- Public Offering
Price," below.
Global Fund, Overseas Fund and Gold Fund have adopted Distribution Plans and
Agreements pursuant to Rule 12b-1 under the Investment Company Act of 1940.
Under the Plan, the Global Fund, Overseas Fund and Gold Fund pay A&SB a monthly
distribution related fee at an annual rate of 0.25% of the average daily net
asset value attributable to class A shares. A&SB is obligated to use the amounts
received under the Plans for payments to qualifying dealers for their assistance
in the distribution of a Fund's shares and the provision of shareholder services
and for other expenses such as advertising costs and the payment for the
printing and distribution of prospectuses to prospective investors. A&SB bears
distribution expenses to the extent they are not covered by payments under the
Plans. Any distribution expenses incurred by A&SB in any fiscal year of a Fund
that are not reimbursed from payments under the Plans accrued in such fiscal
year will not be carried over for payment under the Plans in any subsequent
year. Class I shares and shares of Money Fund do not participate in the Plans
and are not charged with any portion of the payments made under the Plans.
Because the fees are paid out of Fund assets on an on-going basis, over time
these fees will increase the cost of an investment in the Funds and may
ultimately cost more than paying other types of sales charges.
2
<PAGE>
The disclosure in the Prospectus "Fees and Expenses" on pages 7 and 8 is
replaced in its entirety to read as follows:
Effective April 1, 2000, Global Fund, Overseas Fund and Gold Fund will change
the sales charge schedule for Class A shares. The following information is
designed to help you understand the fees and expenses that you may pay if you
buy and hold shares of the Funds.
<TABLE>
<CAPTION>
Global Fund Overseas Fund
--------------------- ---------------------- Gold Money
Class A Class I Class A Class I Fund Fund
-------- ------- -------- -------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Shareholder Fees
Maximum Sales Charge (Load)
on purchases as a percentage
of offering price .................. 5.00% None 5.00% None 5.00% None
Maximum deferred sales charge
(Load) as a percentage of the
lesser of your purchase or
redemption price ................... None None None None None None
Redemption Fees* .................... None None None None None None
Annual Fund Operating
Expenses
Management Fees ..................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.40%
Distribution (12b-1) Fees** ......... 0.25% None 0.25% None 0.25% None
Other Expenses ...................... 0.23% 0.26% 0.29% 0.28% 0.62% 0.29%
----- ----- ----- ----- ----- -----
Total Fund Operating Expenses ....... 1.23% 1.01% 1.29% 1.03% 1.62% 0.69%***
===== ===== ===== ===== ===== ======
</TABLE>
- ----------
* Certain fees may be deducted from proceeds redeemed through a bank wire.
** Some of the Funds have adopted a Rule 12b-1 plan which allows those Funds
to pay distribution fees for the sale and distribution of their shares.
The annual distribution expenses for Class A shares of those Funds is
0.25% of the average net assets of the shares of Class A. Because these
fees are paid out of each of those Fund's assets on an on-going basis, the
distribution expenses you pay over time will increase the cost of your
investment and may total more than the maximum sales charge permissible if
imposed entirely as an initial sales charge.
*** The investment adviser, voluntarily agreed to limit the total expenses of
Money Fund (excluding interest, taxes, brokerage and extraordinary
expenses) to an annual rate of 0.75% of the Fund's average net assets
until July 31, 2000.
3
<PAGE>
Example
This Example is intended to help you compare the cost of investing in the Funds
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in a Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. This Example also assumes that your
investment has a 5% return each year and that a Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions, your costs would be:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C> <C>
Global Fund Class A $619 $871 $1,142 $1,914
Class I $103 $322 $ 558 $1,236
Overseas Fund Class A $625 $889 $1,172 $1,979
Class I $105 $328 $ 569 $1,259
Gold Fund $657 $986 $1,337 $2,326
Money Fund $ 70 $221 $ 384 $ 859
</TABLE>
The paragraph under the heading "Investment Objective, Principal Investment
Strategies, and Related Risks -- International Fund Investment Objective and
Policies" on page 9 of the Prospectus is corrected to read in its entirety as
follows:
Global Fund's investment objective is to provide long-term growth of capital.
In seeking to achieve this objective, Global Fund will normally invest its
assets primarily in common stocks (and in securities convertible into common
stocks) of United States and foreign companies. However, Global Fund reserves
the right to invest a portion of its assets in fixed-income securities
(including lower-rated securities) of domestic or foreign issuers which, in
addition to the income they may provide, appear to offer potential for
long-term growth of capital. When deemed appropriate by Global Fund's
investment adviser for short-term investment purposes, Global Fund may hold a
portion of its assets in short-term debt instruments including commercial paper
and certificates of deposit.
The disclosure in the Prospectus under "How to Purchase Shares" on page 17 is
replaced in its entirety to read as follows:
The minimum initial and subsequent investment amounts generally required for
each Fund and each class of shares within a Fund are listed in the table below:
<TABLE>
<CAPTION>
Minimum Initial Investment Minimum Subsequent Investment
---------------------------- ------------------------------
<S> <C> <C>
Global Fund and Overseas Fund
Class A $1,000 $100
Class I $1 million $100
Gold Fund (Class A) $1,000 $100
Money Fund $1,000 $100
</TABLE>
4
<PAGE>
The current value of a shareholder's account in any of the Funds may qualify
for purposes of meeting the minimum investment amount for Class I shares. The
minimum may be waived for Class I shares for sponsors of 40l(k) Plans and
wrapped fee programs if approved by A&SB, the Funds' principal underwriter.
The Automatic Investment Program and Automatic Exchange Program each require a
minimum initial investment of $100 per Fund (see "Shareholder Services") and an
account with the Money Fund that is opened by an exchange (see "Shareholder
Services -- Exchange Privilege") requires a minimum investment of $1,000.
"Starter" checks and third party checks will not be accepted for purposes of
opening a new account. The Funds reserve the right to waive the initial minimum
investment amounts, at the discretion of A&SB, for certain investors, including
Fund employees and directors and officers of ASB Advisers and A&SB.
A Fund's shares may be purchased through authorized dealers or through A&SB. A
completed and signed application is required for the initial account opening
with the Funds. If there is no application accompanying this Prospectus, please
call (800) 334-2143 to obtain one. A&SB and the Funds reserve the right to
reject or to limit the purchase of a Fund's shares.
The disclosure in the Prospectus under "Purchase through Dealers" on pages 17
and 18 is replaced in its entirety to read as follows:
Investors may purchase a Fund's shares through selected securities dealers with
whom A&SB has sales agreements. A prospective investor may obtain additional
New Account Applications from such authorized dealers. For a list of authorized
dealers, please contact A&SB at (212) 698-3000. Authorized dealers and
financial service firms are responsible for promptly transmitting purchase
orders to A&SB, the Funds' principal underwriter.
The disclosure in the Prospectus under "Public Offering Price" on pages 18 and
19 is replaced in its entirety to read as follows:
Effective April 1, 2000, the public offering price at which transactions will
be effected will be equal to the net asset value per share plus, in the case of
Class A shares of Global Fund, Overseas Fund and Gold Fund, a sales charge as
described below. The net asset value per share of Money Fund is expected to
remain constant at $1.00 per share. Orders for shares received by DST prior to
the close of trading on the NYSE, or orders received by dealers prior to such
time and transmitted to A&SB prior to the latter's close of business, will be
effected based on the net asset value determined as of the close of trading on
the NYSE that day. Net asset value per share is calculated as set forth under
"Net Asset Value" below. Class I shares and shares of the Money Fund are not
subject to sales charges. The sales charges applicable to Class A shares
currently in effect are as follows:
5
<PAGE>
<TABLE>
<CAPTION>
Sales Charge as a percentage of Dealer Allowance
-------------------------------------- as a percentage of
Class A Shares Dollars Invested Offering Price Net Amount Invested Offering Price
- ------------------------------- -------------- ------------------- ------------------
<S> <C> <C> <C>
Less than $50,000 5.00% 5.26% 4.50%
$50,000 but less than $100,000 4.50 4.71 4.00
$100,000 but less than $250,000 3.75 3.90 3.25
$250,000 but less than $500,000 2.75 2.83 2.50
$500,000 but less than $1,000,000 1.75 1.78 1.50
$1,000,000 or more none none none
</TABLE>
For the next twelve months, shareholders who owned Class A shares of Global
Fund, Overseas Fund and Gold Fund on February 28, 2000 may continue to purchase
shares pursuant to the following schedule:
<TABLE>
<CAPTION>
Sales Charge as a percentage of Dealer Allowance
-------------------------------------- as a percentage of
Class A Shares Dollars Invested Offering Price Net Amount Invested Offering Price
- ------------------------------- -------------- ------------------- ------------------
<S> <C> <C> <C>
Less than $25,000 3.75% 3.90% 3.35%
$25,000 but less than $50,000 3.25 3.35 2.85
$50,000 but less than $100,000 2.75 2.83 2.35
$100,000 but less than $500,000 2.00 2.04 1.60
$500,000 but less than $1,000,000 1.00 1.01 0.80
$1,000,000 and over 0.00 0.00 0.00
</TABLE>
Sales charges applicable to persons residing in countries outside the United
States may vary from those listed above.
A&SB reallows discounts to selected dealers with whom it has sales agreements
and is entitled to retain the balance over dealer discounts. A&SB may from time
to time reallow the entire sales load, and may provide additional promotional
incentives, to dealers selling a Fund's shares. Such additional promotional
incentive may include financial assistance in connection with pre-approved
conferences or seminars, sales or training programs for invited sales personnel
and payment for travel expenses for such seminars or training programs. In some
instances the entire reallowance or incentives may be offered only to certain
dealers which have sold or may sell significant amounts of a Fund's shares.
Authorized dealers to whom substantially the entire sales charge is reallowed
may be deemed to be underwriters as that term is defined under the Securities
Act of 1933. A&SB intends to reallow 100% of sales charge through May 31, 2000.
A&SB may from time to time pay a concession to a dealer which employs a
registered representative whose client invests in a Fund. Such amount will be
paid from the resources of A&SB.
6
<PAGE>
The disclosure in the Prospectus under "Reinstatement Privilege" on page 21 is
replaced in its entirety to read as follows:
Through February 29, 2001, any investor who had redeemed shares of a SoGen Fund
since February 1, 1998 may reinvest in Class A shares of the Global Fund,
Overseas of Gold Fund at net asset value without a sales charge. The investor
or the investor's broker must inform A&SB at the time the order for the
purchase is placed and must provide a copy of the investor's prior account
statement showing the investment or redemption.
A&SB may waive the front-end sales charge for investors who purchase Class A
shares with the proceeds from a redemption of another "load" mutual fund of
Class A shares of one of the Funds made within 60 days of the purchase. The
investor or the investor's broker must inform A&SB at the time the order for
the purchase is placed and must provide a copy of the investor's prior account
statement showing the investment or redemption.
7
