In This Article:
Strong fundraising and investment performance drove notable results in 2024
NEW YORK, January 16, 2025--(BUSINESS WIRE)--First Eagle Investments ("First Eagle") today announced a milestone achievement for its High Yield Municipal Credit business under the leadership of team Head and Chief Investment Officer John Miller. Miller joined the firm on January 2, 2024, and serves as lead portfolio manager for both the First Eagle High Yield Municipal Fund (I Shares: FEHIX; A Shares: FEHAX; C Shares: FEHCX; R6 Shares: FEHRX) and First Eagle Short Duration High Yield Municipal Fund (I Shares: FDUIX; A Shares: FDUAX; R6 Shares: FDURX). Both delivered what the firm considers to be exceptional results in 2024, and significant inflows propelled the First Eagle High Yield Municipal Fund above $5 billion in total assets as of December 31, 2024. The First Eagle High Yield Municipal Fund achieved a total return of 11.95% in 2024 (I Shares: FEHIX), outperforming the S&P Municipal Yield Index* by approximately 632 basis points and ranking in the top 1% of the Morningstar High Yield Muni category. The First Eagle Short Duration High Yield Municipal Fund’s total return of 7.39% (I Shares: FDUIX) beat the S&P Short Duration Municipal Yield Index** by 314 basis points.
"It has been a transformational year for First Eagle’s High Yield Municipal Credit business," said Miller. "Together, we’ve laid a solid foundation with the potential to deliver continued success in 2025 and beyond. Our Fund’s growth to over $5 billion reflects the deep trust financial advisors have in our high yield municipal bond strategy. Our commitment remains focused on delivering strong returns and steady income for investors through active credit selection."
To further enhance its investing capabilities in municipal bonds, First Eagle recently hired David Blair as Managing Director and Portfolio Manager, Head of Municipal Core SMA Business. Reporting to Miller, he will take on portfolio management and business development responsibilities, with an emphasis on investment grade municipal bonds. Blair joins First Eagle from Nuveen, where he focused on municipal bond strategies, and he previously held a leadership role at PIMCO as a Senior Vice President, Institutional Client Manager. With 30 years of investment industry experience, Blair brings deep expertise in credit research, portfolio management and SMA business development. He earned a BA in economics from the University of California, Santa Barbara, and an MBA from the University of Chicago. Blair also holds the Chartered Financial Analyst designation.
First Eagle’s High Yield Municipal Credit team also includes credit analysts John Suh, Andrew Belsky, Bridget Young, Douglas Johnston and Ryan Rosberg, as well as Senior Investment Specialist Purva Patel and traders Bryce Pickering and Matthew Tanzer.
"David’s addition not only enhances our team’s capabilities in the investment grade space and sets us apart in our pursuit of investment excellence, it also positions us to better address the growing demand for innovative municipal strategies," said Carl Katerndahl, Chief Operating Officer of the Municipal High Yield Credit team.
Frank Riccio, Head of US Wealth Solutions, added, "The High Yield Municipal Fund’s success is a direct result of our strategic partnerships with key distribution platforms that have positioned us to meet the growing demand from financial advisors. By offering long- and short-duration strategies, the team provides investors access to tax-exempt income at different parts of the municipal yield curve. As more investors seek tax-efficient income solutions, we’re excited to continue expanding access to our high yield municipal strategy across important distribution channels."
As of December 31, 2024, the First Eagle High Yield Municipal Fund (I Shares: FEHIX) had a distribution rate of 5.31% and an unsubsidized 30-day SEC yield of 4.77%. The First Eagle Short Duration High Yield Municipal Fund (I Shares: FDUIX) had a distribution rate of 4.57% and an unsubsidized 30-day SEC yield of 4.62%. ***
| First Eagle High Yield Municipal Fund - NAV, Distribution Rate and 30-Day SEC Yield by Share Class | ||||||||
| Data as of 31-December-2024 | ||||||||
| NAV | Distribution Rate | Subsidized | Unsubsidized | |||||
| Class I (FEHIX) | $8.59 | 5.31% | 4.77% | 4.77% | ||||
| Class A (FEHAX) | $8.60 | 5.02% | 4.42% | 4.42% | ||||
| Class C (FEHCX) | $8.59 | 4.19% | 3.78% | 3.78% | ||||
| Class R6 (FEHRX) | $8.60 | 5.86% | 4.80% | 4.80% | ||||
| First Eagle High Yield Municipal Fund - Average Annual Returns as of Quarter End | ||||||||||||||||
| Data as of 31-December-2024 | ||||||||||||||||
| New | 1 | 5 | 10 | Gross | Net | Adjusted | Fund Inception | |||||||||
| Class I (FEHIX) | 11.95% | 11.95% | 4.49% | 4.43% | 1.28% | 1.00% | 0.60% | Nov 19, 2007 | ||||||||
| Class A (FEHAX) w/o load | 11.69% | 11.69% | 4.22% | 4.14% | 1.53% | 1.25% | 0.85% | Jan 3, 2012 | ||||||||
| Class A (FEHAX) w/ load | 6.69% | 6.69% | 3.27% | 3.66% | 1.53% | 1.25% | 0.85% | Jan 3, 2012 | ||||||||
| Class C (FEHCX) | 9.87% | 9.87% | 3.44% | 3.38% | 2.28% | 2.00% | 1.60% | Jan 3, 2012 | ||||||||
| Class R6 (FEHRX) | 12.23% | 12.23% | 4.56% | -- | 1.28% | 1.00% | 0.60% | Mar 1, 2017 | ||||||||
| S&P Municipal Yield Index | 5.63% | 5.63% | 2.38% | 4.08% | -- | -- | -- | -- | ||||||||
| First Eagle Short Duration High Yield Municipal Fund - NAV, Distribution Rate and 30-Day SEC Yield by Share Class | ||||||||
| Data as of 31-December-2024 | ||||||||
| NAV | Distribution Rate | Subsidized | Unsubsidized | |||||
| Class I (FDUIX) | $10.25 | 4.57% | 4.62% | 4.62% | ||||
| Class A (FDUAX) | $10.27 | 4.32% | 4.23% | 4.23% | ||||
| Class R6 (FDURX) | $10.27 | 4.67% | 4.61% | 4.61% | ||||
| First Eagle Short Duration High Yield Municipal Fund - Average Annual Returns as of Quarter End | ||||||||||||
| Data as of 31-December-2024 | ||||||||||||
| YTDœ | Since | Gross | Net | Adjusted | Fund Inception | |||||||
| Class I (FDUIX) | 7.39% | 7.39% | 1.10% | 0.72% | 0.60% | Jan 2, 2024 | ||||||
| Class A (FDUAX) w/o load | 7.18% | 7.18% | 1.35% | 0.97% | 0.85% | Jan 2, 2024 | ||||||
| Class A (FDUAX) w/ load | 4.46% | 4.46% | 1.35% | 0.97% | 0.85% | Jan 2, 2024 | ||||||
| Class R6 (FDURX) | 7.48% | 7.48% | 1.10% | 0.72% | 0.60% | Jan 2, 2024 | ||||||
| S&P Short Duration Municipal Yield Index | 4.22% | 4.22% | -- | -- | -- | -- | ||||||
The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund’s short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Past performance data through the most recent month end is available at www.firsteagle.com or by calling 800-334-2143. The average annual returns are historical and reflect changes in share price, reinvested dividends and are net of expenses. "With sales charge" performance for class A shares gives effect to the deduction of the maximum sales charge of 2.50%. The average annual returns for Class C shares reflect a CDSC (contingent deferred sales charge) of 1.00% in the year-to-date and first year only. Class I shares require $1MM minimum investment and are offered without sales charge. Class R6 shares are offered without sales charge. Operating expenses reflect the Fund’s total annual operating expenses for the share class of the Fund’s most current prospectus, including management fees and other expenses.
1. John Miller started as lead portfolio manager of the Fund beginning 2-Jan-2024.
2. First Eagle Investment Management, LLC (the ‘‘Adviser’’) has contractually agreed to waive and/ or reimburse certain fees and expenses of Classes A, C, I, and R6 so that the total annual operating expenses (excluding interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, dividend and other expenses relating to short sales, and extraordinary expenses, if any) (‘‘annual operating expenses’’) of each class are limited to 0.85%, 1.60%, 0.60%, and 0.60% of average net assets, respectively. Each of these undertakings lasts until 28-Feb-2025 and may not be terminated during its term without the consent of the Board of Trustees. The High Yield Municipal Fund has agreed that each of Classes A, C, I, and R6 will repay the Adviser for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses (after the repayment is taken into account) to exceed the lesser of: (1) 0.85%, 1.60%, 0.60%, and 0.60% of the class’s average net assets, respectively; or (2) if applicable, the then-current expense limitations. Any such repayment must be made within three years after the year in which the Adviser incurred the expense.
First Eagle Investment Management, LLC (the "Adviser") has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I and R6 so that the total annual operating expenses (excluding interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, dividend and other expenses relating to short sales, and extraordinary expenses, if any) (‘‘annual operating expenses’’) of each class are limited to 0.85%, 0.60% and 0.60% of average net assets, respectively. Each of these undertakings lasts until 28-Feb-2025 and may not be terminated during its term without the consent of the Board of Trustees. The Short Duration High Yield Municipal Fund has agreed that each of Classes A, I and R6 will repay the Adviser for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses (after the repayment is taken into account) to exceed the lesser of: (1) 0.85%, 0.60% and 0.60% of the class’s average net assets, respectively; or (2) if applicable, the then-current expense limitations. Any such repayment must be made within three years after the year in which the Adviser incurred the expense.
3. The Adjusted Expense Ratio excludes certain fees and expenses, such as interest expense and fees paid on Fund borrowings and/or interest and related expenses from inverse floaters. The Fund is currently in a "ramp-up" period, during which it may not be fully invested, and certain of these expenses may change over time.
4. Effective 27-Dec-2023, the Fund changed its name and principal investment strategy. Performance for the periods prior to 27-Dec-2023 is based on the investment strategy utilized by the Fund at those times.
5. YTD Performance shows performance from close of 2-Jan-2024.
*S&P Municipal Yield Index measures the performance of high yield and investment grade municipal bonds. Index constituents are market value-weighted and adjusted for credit rating and concentration limits. Indices are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index. The information is not intended to provide and should not be relied on for accounting or tax advice. Any tax information presented is not intended to constitute an analysis of all tax considerations.
**S&P Short Duration Municipal Yield Index measures the performance of high yield and investment grade municipal bonds with duration range of one to 12 years maturity.
***30-day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. This is also referred to as the "standardized yield." The number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund, and therefore may not be correlated with dividends and distributions paid. Had fees not been waived and or/expenses reimbursed, the SEC Yield would have been lower.
The Subsidized 30-Day SEC Yield includes contractual expense reimbursements and it would be lower without those reimbursements.
The Unsubsidized 30-Day SEC Yield excludes contractual expense reimbursements.
The Fund intends to declare income dividends daily and distribute them monthly at rates intended to maintain a more stable level of distributions than would result from paying out amounts solely based on current net investment income by paying out less than all of its net investment income or paying out undistributed income from prior months (with any potential remaining deficiencies characterized as a return of capital at year end). The distributions might not be made in equal amounts, and one month’s distribution may be larger than another. Distribution rate presented excludes any special dividends and indicates the annual rate received if the most recent monthly distribution paid (for each class) was the same for an entire year. The rate represents a distribution and does not represent the total return of the Fund. Because the distribution rate is annualized from a single month’s distribution, investors would not necessarily receive this rate amount in a given year. The rate is calculated by annualizing the most recent monthly distribution paid for each class and dividing it by that class’s NAV on the last day of the month.
About First Eagle Investments
First Eagle Investments is an independent, privately owned investment management firm headquartered in New York with approximately $149 billion in assets under management as of September 30, 2024. * Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing, with a strong emphasis on downside mitigation. With a heritage dating back to 1864, First Eagle strives to help clients avoid permanent impairment of capital and earn attractive returns through widely varied economic cycles. The firm’s investment capabilities include equity, fixed income, alternative credit and multi-asset strategies. For more information, please visit www.firsteagle.com.
*The total AUM represents the combined AUM of (i) First Eagle Investment Management, LLC, (ii) its subsidiary investment advisers, First Eagle Separate Account Management, LLC, First Eagle Alternative Credit ("FEAC") and Napier Park Global Capital ("Napier Park"), and (iii) Regatta Loan Management LLC, an advisory affiliate of Napier Park. The total AUM includes $1.7 billion of committed and other non-fee-paying capital from FEAC, and $1.8 billion of committed and other non-fee-paying capital from Napier Park.
The First Eagle High Yield Municipal Fund was known as the First Eagle High Income Fund prior to December 27, 2023.
Risk Disclosures:
First Eagle High Yield Municipal Fund
The Fund recently completed the repositioning of its investment portfolio to align it with its current investment objective and principal investment strategies. As a result of the repositioning, the Fund has satisfied and intends to continue to satisfy assets tests at the end of each quarter (which requires at least 50% of the Fund’s assets to consist of certain tax-exempt obligations) that enable the Fund to pass through to its shareholders the tax-exempt character of its income from tax-exempt obligations by paying "exempt-interest dividends." Prior to completing the repositioning of its investment portfolio, the Fund generally was invested in portfolio securities that pay interest that is subject to regular federal income tax. The Fund has already distributed to shareholders the income from such taxable portfolio securities, and the Fund anticipates that most of its dividends will consist of "exempt-interest dividends" going forward. However, it is possible that a portion of the Fund’s income from the taxable portfolio securities will be reported as distributed to shareholders as ordinary dividends after the repositioning. Exempt-interest dividends are excludable from gross income for U.S. federal income tax purposes, but all or a portion of exempt-interest dividends may be taken into account in determining the alternative minimum tax on shareholders who are individuals and may be subject to state and local taxes. Even though the Fund has repositioned its investment portfolio to align it with its current investment objective and principal investment strategies, the Fund also may realize and distribute taxable ordinary income or capital gains from time to time because of the Fund’s investment activities. If you redeem Fund shares or exchange them for shares of another Fund, you generally will be treated as having sold your shares and any gain on the transaction will be subject to tax.
Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise, while they typically increase their principal values when interest rates decline. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer’s ability to make such payments may cause the price of that bond to decline.
The Fund may invest in high yield, fixed income securities that, at the time of purchase, are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. High yield securities are rated lower than investment-grade securities because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High yield securities involve greater risk than higher rated securities and portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not.
Municipal bonds are subject to credit risk, interest rate risk, liquidity risk, and call risk. However, the obligations of some municipal issuers may not be enforceable through the exercise of traditional creditors’ rights. The reorganization under federal bankruptcy laws of a municipal bond issuer may result in the bonds being cancelled without payment or repaid only in part, or in delays in collecting principal and interest.
All investments involve the risk of loss of principal.
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
First Eagle Short Duration High Yield Municipal Fund
The First Eagle Short Duration High Yield Municipal Fund ("The Fund") is new and may not be successful under all future market conditions. The Fund may not attract sufficient assets to achieve investment, trading or other efficiencies.
Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise, while they typically increase their principal values when interest rates decline.
Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer’s ability to make such payments may cause the price of that bond to decline. The Fund may invest in high yield, fixed income securities that, at the time of purchase, are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. High yield securities are rated lower than investment-grade securities because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High yield securities involve greater risk than higher rated securities and portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not.
Municipal bonds are subject to credit risk, interest rate risk, liquidity risk, and call risk. However, the obligations of some municipal issuers may not be enforceable through the exercise of traditional creditors’ rights. The reorganization under federal bankruptcy laws of a municipal bond issuer may result in the bonds being cancelled without payment or repaid only in part, or in delays in collecting principal and interest.
All investments involve the risk of loss of principal.
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds and may be viewed at www.firsteagle.com. You may also request printed copies by calling us at 800-747-2008. Please read our prospectus carefully before investing.
Investments are not FDIC insured or bank guaranteed and may lose value.
High-Yield Muni Category
High yield muni portfolios invest at least 50% of assets in high-income municipal securities that are not rated or that are rated by a major agency such as Standard & Poor's or Moody's at the level of BBB (considered speculative in the municipal industry) and below.
First Eagle High Yield Municipal Fund: The Morningstar percentile ranking for the First Eagle High Yield Municipal Fund was derived using the total return of the performance figure associated with its MTD, QTD, and YTD periods, as of 12/31/2024. Morningstar percentile rankings were: 69% for the Month-to-Date (123/202), 42% for the Quarter-to-Date (74/202), and 1% for the Year-to-Date (2/194) periods when compared against the High Yield Muni Bond category.
The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.
© 2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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.
First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers.
The First Eagle Funds are offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC, which provides advisory services.
© 2025 First Eagle Investment Management, LLC. All rights reserved.
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Contacts
Media Contacts
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Pholida Barclay
212-698-3208
pholida.barclay@firsteagle.com
Hedda Nadler
Mount Nadler
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212-759-4440