ThZeal - The Zeal

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-09092

First Eagle Variable Funds
(Exact name of registrant as specified in charter)

1345 Avenue of the Americas New York, NY					10105
(Address of principal executive offices)					(Zip code)

Robert Bruno First Eagle Variable Funds 1345 Avenue of the Americas New York, NY 10105
(Name and address of agent for service)

Registrant’s telephone number, including area code:				1-212-632-2700

Date of fiscal year end:	December 31

Date of reporting period:		June 30, 2013

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Dear Fellow Shareholders,

At First Eagle, we remain committed to the mission that has guided our investment approach over our long history: To provide prudent stewardship of the assets you have placed in our care. Regardless of short-term market events, swings in investor confidence or the pressures to follow new market paradigms, we continue to seek to provide our shareholders with attractive absolute returns over the long-term.

Market Overview

Since I wrote you last February, financial markets have been characterized by a near absence of fear and caution. Given that this time last year we were in the midst of a period of unusual change and uncertainty driven by historic macro interventions, it is noteworthy and perhaps troubling that a mere twelve months later investors appear to be generally ignoring potential signs of distress.

For instance, during the six-month period ending June 30, 2013, the Japanese market has expanded rapidly—largely as a result of accommodative monetary policy. Japan's equity market, as measured by the Nikkei 225, has risen approximately 32% since the start of First Eagle's fiscal year on January 1, 2013.

It is important to note that this expansion has not been uniform across the globe. In fact, markets remained sluggish in Europe as the region digested fiscal austerity measures and Europe's recession deepened. In addition, China experienced the pressure of challenging property markets, a slowdown in GDP growth¹ and higher real exchange rates.

In the first half of our fiscal year, the gold spot price has declined. This was punctuated by the 9% drop on April 15th, driven by fears (later proven to be unfounded) that European central banks would follow Cyprus's Finance Minister by liquidating gold reserves to raise capital in order to qualify for economic aid. We continue to believe that predicting the price of gold is a fool's errand. Bullion's price declines have been steep; nonetheless, we remain comfortable with our view of gold as a potential hedge against unforeseen circumstances. In our quest to protect our clients' capital while providing absolute returns, we continue to focus on seeking to identify quality businesses

and quality credit at what we believe to be attractive prices. We are global, fundamental investors. While we do not make decisions based on macro views, we stay abreast of macro changes across the globe as large shifts may impact the long-term fundamentals of the businesses we own on behalf of our shareholders.

The First Eagle Overseas Variable Fund continues to seek opportunities to invest in high-quality companies at what we consider to be attractive prices. With the rapid rise of equity valuations in Japan, it seems that we may have entered a market period where equity valuations are on the higher side of fair. Even in Europe, where market valuations grew at a more measured pace, we've found that good companies are generally fairly valued. In this type of environment, it has been more difficult to find opportunities with what we believe to be an adequate margin of safety in price. In addition, several of our investments have reached what we believe to be their intrinsic values. As a result, we have trimmed or exited several long-term holdings.

Since cash is a residual of our investment process, in times like these, our cash levels grow as a percentage of our Fund. This period has been no exception.

When equity markets are rising to new heights, it can be challenging for value investors to search patiently, one security at a time, for companies priced with what we view to be a margin of safety. Under the thoughtful leadership of Matthew McLennan alongside Portfolio Managers Abhay Deshpande and Kimball Brooker, First Eagle's Global Value Team remains disciplined and continues to demonstrate the patient temperament required to weather this part of the cycle.

Closing

Please be assured that we remain dedicated to our goal of managing your investments in our Funds in the same prudent manner we have been practicing for over 30 years. We are grateful for your continued confidence.

Sincerely,

John P. Arnhold

President

August 2013

In the six months ending June 30, 2013, the MSCI World Index increased 8.43%. In Europe, the German DAX Index rose 2.3% and the French CAC 40 Index rose 2.7% during the period. The Nikkei 225 Index increased 31.6% during the six-month period. This large move was, in part, the result of the December election of Shinzo Abe and the belief that his reflationary policies would be fully enacted. Although our portfolio benefited from a rising Japanese equity market, these gains were partially offset by the weakness in gold mining stocks and gold bullion. Crude oil rose 5.2% to $97 a barrel, and the price of gold fell 26.3% to $1,235 an ounce as of June 28th. On April 15th, gold fell 9%. Market participants appeared to react strongly to comments by the Cyprian Finance Minister that the Central Bank of Cyprus might sell some of its gold reserves to help Cyprus qualify for international aid. Over the six-month period, the Japanese Yen weakened 14.9% against the U.S. Dollar, and in Europe, the U.S. Dollar strengthened 1.4% against the Euro.

First Eagle Overseas Variable Fund

The NAV of the Fund's shares rose 2.41% for the six-month period while the MSCI EAFE Index increased 4.10%. The Fund's cash and cash equivalents position increased from 11.9% at the end of December to 19.3% on June 30, 2013.

The five largest contributors to the performance of First Eagle Overseas Variable Fund over the period were KDDI Corporation (communications, Japan), Thai Beverage PCL (beverages, Thailand), Shimano, Inc. (bicycle parts, Japan), MS&AD Insurance Group Holdings (insurance, Japan) and Nomura Research Institute Limited (technology, Japan) collectively accounting for 2.4% points of this period's performance.

The five largest detractors were gold bullion, Newcrest Mining Limited (mining, Australia), Agnico-Eagle Mines Limited (mining, Canada), Fanuc Corporation (robotics, Japan) and Gold Fields Limited (mining, South Africa). Their combined negative performance over the six-month period subtracted -3.86% points from the Fund's performance.

Past performance is no guarantee of future results. The portfolio is actively managed. Current and future portfolio holdings are subject to risk.

There are risks associated with investing in funds that invest in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Funds whose investments are concentrated in a specific industry or sector may be subject to a higher degree of risk than funds whose investments are diversified and may not be suitable for all investors. Hedging can reduce exposure to currency exchange movements, but cannot eliminate that exposure. It is possible to lose money under a hedge. Results from hedging transactions, which for the Funds are primarily currency forward contracts, are further described in the financial statements that follow this commentary.

Investment in gold and gold related investments present certain risks, including negative tax consequences (e.g., a change in a fund's tax status causing the fund to be subject to tax at the fund level on its taxable income), political and economic risks affecting the price of gold and other precious metals like changes in U.S. or foreign tax, currency or mining laws, increased environmental costs, international monetary and political policies, economic conditions within an individual country, trade imbalances, and trade or currency restrictions between countries. The price of gold, in turn, is likely to affect the market prices of securities of companies mining or processing gold, and accordingly, the value of investments in such securities may also be affected. Gold related investments as a group have not performed as well as the stock market in general during periods when the U.S. dollar is strong, inflation is low and general economic conditions are stable. In addition, returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets.

The commentary represents the opinion of the Global Value Team Portfolio Managers as of August 2013 and is subject to change based on market and other conditions. These materials are provided for informational purposes only. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. The views expressed herein may change at any time subsequent of the date of issue hereof. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.

Countries**

Japan	25.98	%
France	10.63
Canada	6.92
Germany	4.42
United States	4.27
Switzerland	3.68
Mexico	3.09
United Kingdom	3.06
South Korea	2.58
Singapore	2.38
Thailand	1.51
Austria	1.28
South Africa	1.20
Sweden	1.09
Hong Kong	0.91
Ireland	0.86
Bermuda	0.86
Australia	0.81
Spain	0.80
Greece	0.76
Belgium	0.69
Italy	0.63
Norway	0.59
Malaysia	0.55
Israel	0.44
Turkey	0.43
Netherlands	0.33

Performance data quoted herein represents past performance and should not be considered indicative of future results. Performance data quoted herein does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. The MSCI EAFE Index is a total return index, reported in U.S. Dollars, based on share price and reinvested net dividends of approximately 1,100 companies from 22 countries and is not available for purchase. The Consumer Price Index (CPI) represents the change in price of all goods and services purchased for consumption by urban households.

Top 10 Holdings*

Gold Bullion (precious metal)	4.25	%
Grupo Televisa S.A.B., ADR (Mexican media company)	1.89
Fanuc Corporation (Japanese automation components manufacturer)	1.87
Keyence Corporation (Japanese sensors manufacturer)	1.83
SMC Corporation (Japanese automated control devices manufacturer)	1.81
Secom Company Limited (Japanese commercial services provider)	1.79
KDDI Corporation (Japanese telecommunications company)	1.68
HeidelbergCement AG (German building materials manufacturer)	1.61
Total SA (French oil company)	1.59
Nestlé SA (Swiss food company)	1.57
Total	19.89	%

_SHARES		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
International Common Stocks — 75.64%
Australia 0.81%
	533,112	Newcrest Mining Limited	$	12,035,355	$	4,812,193
Austria 1.27%
	344,128	Wienerberger AG		5,226,110		3,974,071
	79,499	OMV AG		3,193,448		3,590,750
				8,419,558		7,564,821
Belgium 0.69%
	34,494	Groupe Bruxelles Lambert SA		2,959,008		2,595,617
	16,497	Sofina SA		1,625,340		1,494,757
				4,584,348		4,090,374
Bermuda 0.85%
	81,180	Jardine Matheson Holdings Limited		2,388,610		4,911,390
	20,651	Hiscox, Limited		170,246		178,875
				2,558,856		5,090,265
Canada 6.66%
	301,300	Canadian Natural Resources Limited		8,666,454		8,494,385
	226,518	Cenovus Energy, Inc.		5,714,786		6,460,293
	169,422	Potash Corporation of Saskatchewan, Inc.		6,672,918		6,460,061
	230,720	Goldcorp, Inc.		7,042,019		5,705,706
	432,584	Penn West Petroleum Limited		7,186,941		4,576,739
	153,286	Agnico-Eagle Mines Limited		5,197,863		4,226,770
	465,400	Kinross Gold Corporation		2,406,179		2,373,540
	75,229	EnCana Corporation		1,552,890		1,274,379
	107,519	Catalyst Paper Corporation (a)(b)(c)		2,181		112,457
				44,442,231		39,684,330
France 10.59%
	194,229	Total SA		9,779,897		9,481,942
	77,828	Sanofi		5,617,906		8,065,886
	273,961	Bouygues SA		10,564,875		6,992,949
	229,037	Carrefour SA		6,073,461		6,299,400
	75,015	Sodexo		2,043,749		6,249,167
	115,856	Compagnie de Saint-Gobain		4,879,607		4,690,001
	364,800	Société Télévision Francaise 1		6,165,468		4,365,220
	52,842	Neopost SA		4,579,685		3,507,870
	26,147	Wendel SA		508,531		2,693,809
	27,856	Laurent-Perrier		2,065,828		2,393,077
	11,484	Robertet SA		849,379		2,130,110

_SHARES		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
International Common Stocks — 75.64% — (continued)
France 10.59% — (continued)
	26,164	NSC Groupe (b)	$	1,990,467	$	2,111,494
	34,760	Legrand SA		1,159,791		1,612,544
	22,180	Société Foncière Financière et de Participations (a)		2,036,704		1,007,584
	8,655	BioMerieux		671,300		838,624
	9,682	Gaumont SA		835,117		480,158
	8,840	Sabeton SA (a)		100,102		152,577
				59,921,867		63,072,412
Germany 4.40%
	142,342	HeidelbergCement AG		7,346,007		9,573,386
	352,458	Deutsche Wohnen AG		3,292,170		5,984,743
	97,337	Daimler AG		4,685,509		5,889,587
	153,074	Hamburger Hafen und Logistik AG		5,267,794		3,275,648
	24,274	Fraport AG		913,552		1,468,593
				21,505,032		26,191,957
Greece 0.76%
	457,586	Jumbo SA (a)		3,174,943		4,526,686
Hong Kong 0.90%
	684,604	Hopewell Holdings Limited		2,352,387		2,277,291
	189,670	Guoco Group Limited		2,199,025		2,151,992
	246,000	Great Eagle Holdings Limited		766,574		938,829
				5,317,986		5,368,112
Ireland 0.86%
	252,125	CRH PLC		4,349,815		5,119,317
Israel 0.44%
	267,106	Israel Chemicals Limited		2,763,229		2,638,347
Italy 0.63%
	397,580	Italcementi S.p.A. RSP		3,849,944		1,278,249
	68,340	Italcementi S.p.A.		1,275,606		436,768
	45,886	Italmobiliare S.p.A. RSP (a)		2,342,059		621,166
	25,533	Italmobiliare S.p.A. (a)		2,256,914		545,719
	79,000	Recordati S.p.A.		524,615		876,628
				10,249,138		3,758,530
Japan 25.86%
	76,980	Fanuc Corporation		6,396,270		11,161,246
	34,110	Keyence Corporation		6,143,115		10,885,073

_SHARES		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
International Common Stocks — 75.64% — (continued)
Japan 25.86% — (continued)
	53,760	SMC Corporation	$	6,063,411	$	10,797,532
	195,460	Secom Company Limited		8,289,891		10,642,105
	192,800	KDDI Corporation		5,953,027		10,030,732
	362,300	MS&AD Insurance Group Holdings		9,916,118		9,212,750
	106,760	Shimano, Inc.		2,155,817		9,063,513
	341,600	NKSJ Holdings, Inc.		8,709,117		8,145,634
	365,160	Hoya Corporation		7,795,394		7,543,989
	138,280	Astellas Pharma, Inc.		5,203,863		7,514,914
	48,480	Hirose Electric Company Limited		4,794,553		6,393,612
	235,660	Mitsubishi Estate Company Limited		3,856,512		6,275,238
	150,400	Nissin Foods Holdings Company Limited		5,301,373		6,088,486
	154,290	Nomura Research Institute Limited		2,894,901		5,024,770
	182,130	MISUMI Group, Inc.		3,070,861		5,007,749
	361,980	Kansai Paint Company Limited		2,725,268		4,620,555
	57,100	Ono Pharmaceutical Company Limited		1,880,545		3,874,602
	139,048	Chofu Seisakusho Company Limited		2,330,173		3,007,239
	159,784	Nitto Kohki Company Limited		3,170,541		2,964,333
	320,500	Japan Wool Textile Company Limited		2,379,039		2,284,669
	137,200	T. Hasegawa Company Limited		2,002,922		1,972,648
	72,980	As One Corporation		1,283,278		1,816,774
	108,710	Nagaileben Company Limited		919,919		1,814,025
	23,020	Shin-Etsu Chemical Company Limited		1,067,927		1,527,239
	56,094	Secom Joshinetsu Company Limited		1,001,733		1,442,223
	51,930	Daiichikosho Company Limited		711,897		1,422,603
	25,394	SK Kaken Company Limited		654,403		1,257,154
	71,610	OSG Corporation		440,292		1,072,923
	43,800	Seikagaku Corporation		309,117		529,504
	9,880	Kobayashi Pharmaceutical Company Limited		454,995		520,996
	108	NTT DoCoMo, Inc.		161,000		167,804
				108,037,272		154,082,634
Malaysia 0.55%
	2,668,190	Genting Malaysia Berhad		2,244,010		3,285,095

_SHARES		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
International Common Stocks — 75.64% — (continued)
Mexico 3.07%
	453,137	Grupo Televisa S.A.B., ADR	$	8,558,304	$	11,255,923
	119,710	Industrias Peñoles S.A.B. de C.V.		661,696		3,566,231
	260,119	Fresnillo PLC		3,375,778		3,489,438
				12,595,778		18,311,592
Netherlands 0.33%
	263,553	TNT Express NV		2,778,254		1,976,675
Norway 0.58%
	424,764	Orkla ASA		2,981,701		3,479,592
Singapore 2.37%
	1,440,813	Haw Par Corporation Limited		3,785,660		8,218,602
	4,065,310	ComfortDelGro Corporation Limited		4,719,225		5,885,478
				8,504,885		14,104,080
South Africa 1.19%
	565,610	Gold Fields Limited, ADR		5,927,465		2,969,452
	202,295	AngloGold Ashanti Limited, ADR		3,407,136		2,892,819
	235,367	Harmony Gold Mining Company Limited, ADR		2,356,639		896,748
	115,754	Sibanye Gold Limited, ADR (a)		796,571		340,317
				12,487,811		7,099,336
South Korea 2.31%
	92,672	KT&G Corporation		5,113,871		6,020,982
	19,748	Nong Shim Company Limited		3,769,031		4,590,950
	1,360	Lotte Confectionery Company Limited		605,175		1,913,682
	49,850	Fursys, Inc.		1,161,375		1,241,830
				10,649,452		13,767,444
Spain 0.79%
	85,811	Red Electrica Corporation SA		4,090,765		4,719,149
Sweden 1.08%
	233,754	Investor AB, Class 'A'		4,657,344		6,099,961
	12,577	Investor AB, Class 'B'		234,678		338,145
				4,892,022		6,438,106
Switzerland 3.67%
	142,180	Nestlé SA		4,368,452		9,325,129
	129,778	Pargesa Holding SA		7,721,848		8,662,858
	9,593	Rieter Holding AG (a)		1,167,779		1,511,237
	397	Lindt & Spruengli AG PC		1,113,111		1,491,246

_SHARES		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
International Common Stocks — 75.64% — (continued)
Switzerland 3.67% — (continued)
	11,283	Autoneum Holding AG (a)	$	520,295	$	843,940
				14,891,485		21,834,410
Thailand 1.51%
	9,873,192	Thai Beverage PCL		1,600,547		4,595,805
	611,105	Bangkok Bank PCL, NVDR		2,002,395		4,019,520
	20,000	OHTL PCL (b)		88,922		352,733
				3,691,864		8,968,058
Turkey 0.42%
	206,623	Yazicilar Holding AS		1,423,265		2,528,285
United Kingdom 3.05%
	176,670	Berkeley Group Holdings PLC		2,093,939		5,726,128
	223,540	GlaxoSmithKline PLC		4,234,881		5,603,086
	1,368,939	WM Morrison Supermarkets PLC		6,117,293		5,450,904
	72,000	Anglo American PLC		2,138,290		1,386,376
				14,584,403		18,166,494
Total International Common Stocks				383,175,325		450,678,294
International Preferred Stock — 0.25%
South Korea 0.25%
	1,949	Samsung Electronics Company Limited		250,410		1,508,617
_OUNCES
Commodity — 4.25%
	20,548	Gold bullion (a)		18,141,049		25,333,076
_PRINCIPAL
International Corporate Bond — 0.23%
Canada 0.23%
	1,863,261 USD	Catalyst Paper Corporation 11.00% due 10/30/17 (c)(d)		2,311,335		1,341,548

_PRINCIPAL		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
Commercial Paper — 19.17%
International Commercial Paper — 7.95%
Canada 0.38%
	355,000	Suncor Energy, Inc. USD0.27% due 08/14/13	$	354,883	$	354,883
	1,917,000	Suncor Energy, Inc. USD0.29% due 09/23/13		1,915,702		1,915,397
Germany 0.86%
	2,648,000	Henkel Corporation USD0.13% due 09/10/13		2,647,321		2,646,754
	2,448,000	Henkel Corporation USD0.15% due 09/10/13		2,447,276		2,446,847
Italy 2.91%
	15,221,000	Eni S.p.A. USD0.17% due 07/01/13		15,221,000		15,221,000
	2,144,000	Eni S.p.A. USD0.39% due 08/26/13		2,142,733		2,142,733
Japan 1.66%
	6,253,000	Hitachi America Capital USD0.27% due 07/01/13		6,253,000		6,253,000
	3,648,000	Hitachi International Treasury USD0.27% due 07/01/13		3,648,000		3,648,000
Switzerland 0.48%
	398,000	Nestlé SA USD0.10% due 09/05/13		397,927		397,927
	893,000	Roche Holding, Inc. USD0.07% due 08/07/13		892,936		892,936
	1,539,000	Roche Holding, Inc. USD0.08% due 08/15/13		1,538,846		1,538,846
United Arab Emirates 0.27%
	1,581,000	Xstrata Finance Dubai Limited USD0.41% due 07/15/13		1,580,754		1,580,754
United Kingdom 1.39%
	1,539,000	AstraZeneca PLC USD0.10% due 09/10/13		1,538,696		1,538,370
	676,000	AstraZeneca PLC USD0.12% due 07/23/13		675,951		675,951
	6,071,000	GlaxoSmithKline PLC USD0.11% due 07/10/13		6,070,833		6,070,833
Total International Commercial Paper				47,325,858		47,324,231

_PRINCIPAL		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
Commercial Paper — 19.17% — (continued)
U.S. Commercial Paper — 11.22%
$	708,000	Abbott Laboratories 0.10% due 09/03/13	$	707,874	$	707,908
	2,295,000	Abbott Laboratories 0.11% due 08/27/13		2,294,600		2,294,600
	1,062,000	Abbott Laboratories 0.12% due 09/09/13		1,061,753		1,061,849
	1,358,000	BHP Billiton Finance USA Limited 0.08% due 07/16/13		1,357,955		1,357,955
	880,000	BHP Billiton Finance USA Limited 0.09% due 08/14/13		879,903		879,903
	2,385,000	Caterpillar Financial Services Company 0.14% due 07/10/13		2,384,917		2,384,917
	5,460,000	Caterpillar Financial Services Company 0.14% due 07/25/13		5,459,490		5,459,490
	2,295,000	Chevron Corporation 0.06% due 07/12/13		2,294,958		2,294,958
	2,295,000	Chevron Corporation 0.06% due 07/15/13		2,294,946		2,294,946
	2,295,000	Chevron Corporation 0.06% due 07/17/13		2,294,939		2,294,939
	646,000	Church & Dwight Company, Inc. 0.32% due 07/08/13		645,960		645,960
	1,267,000	Coca-Cola Company 0.12% due 07/19/13		1,266,924		1,266,924
	1,581,000	Devon Energy Corporation 0.28% due 07/19/13		1,580,779		1,580,779
	844,000	Devon Energy Corporation 0.31% due 07/10/13		843,935		843,935
	2,075,000	Duke Energy Corporation 0.26% due 08/07/13		2,074,445		2,074,445
	2,580,000	Exxon Mobil Corporation 0.04% due 07/25/13		2,579,931		2,579,931
	4,073,000	Exxon Mobil Corporation 0.05% due 08/09/13		4,072,779		4,072,779
	2,295,000	Honeywell International, Inc. 0.10% due 09/24/13		2,294,458		2,294,271
	1,152,000	Johnson & Johnson 0.05% due 07/10/13		1,151,986		1,151,986
	1,152,000	Johnson & Johnson 0.05% due 07/11/13		1,151,984		1,151,984
	2,580,000	Johnson & Johnson 0.05% due 08/07/13		2,579,867		2,579,867
	2,580,000	Johnson & Johnson 0.05% due 08/12/13		2,579,849		2,579,849

_PRINCIPAL		_DESCRIPTION	_{COST (NOTE 1)}		_{VALUE (NOTE 1)}
Commercial Paper — 19.17% — (continued)
U.S. Commercial Paper — 11.22% — (continued)
$	4,169,000	Kroger Company 0.20% due 07/01/13	$	4,169,000	$	4,169,000
	2,304,000	Merck & Company, Inc. 0.08% due 07/18/13		2,303,913		2,303,913
	1,633,000	MetLife 0.13% due 07/11/13		1,632,941		1,632,941
	770,000	MetLife 0.13% due 08/13/13		769,880		769,880
	1,097,000	Parker-Hannifin Corporation 0.10% due 07/09/13		1,096,976		1,096,976
	646,000	PepsiCo, Inc. 0.05% due 07/08/13		645,994		645,994
	1,917,000	PepsiCo, Inc. 0.07% due 08/07/13		1,916,862		1,916,862
	768,000	Philip Morris International, Inc. 0.08% due 07/19/13		767,969		767,969
	2,036,000	Procter & Gamble Company 0.09% due 09/04/13		2,035,669		2,035,731
	1,539,000	Unilever Capital Corporation 0.09% due 08/08/13		1,538,854		1,538,854
	621,000	Unilever Capital Corporation 0.10% due 09/12/13		620,874		620,830
	4,618,000	Wal-Mart Stores, Inc. 0.09% due 09/10/13		4,617,181		4,617,335
	895,000	Wal-Mart Stores, Inc. 0.10% due 07/30/13		894,928		894,928
Total U.S. Commercial Paper				66,865,273		66,865,388
Total Commercial Paper				114,191,131		114,189,619
Total Investments — 99.54%			$	518,069,250	$	593,051,154
Other Assets in Excess of Liabilities — 0.46%						2,759,163
Net Assets — 100.00%					$	595,810,317

Abbreviations used in this schedule include:

ADR — American Depository Receipt

NVDR — Non-Voting Depository Receipt

PC — Participation Certificate

PCL — Public Company Limited

PLC — Public Limited Company

RSP — Represents Non-Voting Shares

Currencies

USD — United States Dollar

_{RESTRICTED SECURITIES}	_ACQUISITION_DATE	_COST		_{CARRYING VALUE PER}_{SHARE/PRINCIPAL}
Catalyst Paper Corporation	09/17/12	$	2,181	$	1.05
Catalyst Paper Corporation 11.00% due 10/30/2017	09/17/12		2,311,335		0.72
Foreign Currency Exchange Contracts — Sales

_SETTLEMENT_DATES_THROUGH	_{FOREIGN CURRENCY}_{TO BE DELIVERED}			_{U.S. $}_{TO BE}_RECEIVED		_{U.S. $ VALUE}_{AT JUNE 30,}₂₀₁₃		_UNREALIZED_APPRECIATION_{AT JUNE 30,}₂₀₁₃		_UNREALIZED_DEPRECIATION_{AT JUNE 30,}₂₀₁₃
07/17/13		6,759,000	Euro	$	8,835,432	$	8,798,371	$	37,061	$	—
08/21/13		3,073,000	Euro		4,107,403		4,000,808		106,595		—
09/18/13		2,737,000	Euro		3,579,038		3,563,827		15,211		—
10/16/13		3,270,000	Euro		4,296,175		4,258,445		37,730		—
11/13/13		6,199,000	Euro		8,127,044		8,074,021		53,023		—
12/18/13		4,993,000	Euro		6,661,810		6,504,456		157,354		—
08/21/13		1,315,578,000	Japanese Yen		14,099,003		13,267,246		831,757		—
09/18/13		1,747,957,000	Japanese Yen		18,254,472		17,630,377		624,095		—
10/16/13		453,333,000	Japanese Yen		4,780,057		4,573,419		206,638		—
11/13/13		890,586,000	Japanese Yen		8,975,103		8,986,892		—		(11,789	)
12/18/13		642,178,000	Japanese Yen		6,766,888		6,482,263		284,625		—
01/15/14		1,885,268,000	Japanese Yen		21,122,049		19,013,557		2,108,492		—
				$	109,604,474	$	105,153,682	$	4,462,581	$	(11,789	)
Foreign Currency Exchange Contracts — Purchases
_SETTLEMENT_DATES_THROUGH	_{FOREIGN CURRENCY}_{TO BE RECEIVED}			_{U.S. $}_{TO BE}_DELIVERED		_{U.S. $ VALUE}_{AT JUNE 30,}₂₀₁₃		_UNREALIZED_APPRECIATION_{AT JUNE 30,}₂₀₁₃		_UNREALIZED_DEPRECIATION_{AT JUNE 30,}₂₀₁₃
07/17/13		822,134,000	Japanese Yen	$	9,047,314	$	8,289,773	$	—	$	(757,541	)

_{INDUSTRY DIVERSIFICATION FOR PORTFOLIO HOLDINGS}	_{PERCENT OF}_{NET ASSETS}
International Common Stocks
Consumer Discretionary		10.02	%
Consumer Staples		8.21
Energy		5.68
Financials		9.88
Health Care		6.57
Industrials		15.27
Information Technology		5.60
Materials		11.91
Telecommunication Services		1.71
Utilities		0.79
Total International Common Stocks		75.64
International Preferred Stock
Information Technology		0.25
Total International Preferred Stock		0.25
Commodity		4.25
International Corporate Bond
Materials		0.23
Total International Corporate Bond		0.23
Commercial Paper
International Commercial Paper		7.95
U.S. Commercial Paper		11.22
Total Commercial Paper		19.17
Total Investments		99.54	%

	_{FIRST EAGLE}_{OVERSEAS VARIABLE FUND}
Assets
Investments, at Cost (Note 1)
Investments	$	499,928,201
Gold bullion		18,141,049
Foreign currency		261,135
Total Investments, at Cost		518,330,385
Investments, at Value (Note 1)
Investments		567,718,078
Gold bullion		25,333,076
Foreign currency		258,161
Total Investments, at Value		593,309,315
Cash		990
Receivable for forward currency contracts held, at value (Note 1)		4,462,581
Receivable for investment securities sold		15,477
Receivable for Fund shares sold		35
Accrued interest and dividends receivable		1,280,528
Other assets		49,836
Total Assets		599,118,762
Liabilities
Payable for Fund shares redeemed		252,439
Payable for investment securities purchased		1,106,151
Payable for forward currency contracts held, at value (Note 1)		769,330
Investment advisory fees payable (Note 2)		369,755
Distribution fees payable (Note 3)		123,252
Administrative fees payable (Note 2)		24,189
Trustee fees payable		917
Accrued expenses and other liabilities		662,412
Total Liabilities		3,308,445
Net Assets	$	595,810,317

	_{FIRST EAGLE}_{OVERSEAS VARIABLE FUND}
Net Assets Consist of
Capital stock (par value, $0.001 per share)	$	20,586
Capital surplus		462,435,386
Net unrealized appreciation on:
Investments (net of $292,714 deferred capital gain country tax)		74,689,190
Foreign currency and forward contract related translation		3,667,629
Undistributed net realized gains on investments, commodity, foreign currency and forward contracts		54,762,288
Accumulated net investment income		235,238
Net Assets	$	595,810,317
Shares outstanding (1,000,000,000 shares authorized) (Note 6)		20,586,007
Net asset value per share and redemption proceeds per share	$	28.94

	_{FIRST EAGLE}_{OVERSEAS VARIABLE FUND}
Investment Income
Interest and Dividends (net of $1,032,036 foreign taxes withheld)	$	7,582,153
Total Income		7,582,153
Expenses
Investment advisory fees (Note 2)		2,291,054
Administrative costs (Note 2)		32,538
Distribution fees (Note 3)		763,685
Shareholder servicing agent fees		513,542
Custodian and accounting fees		121,460
Professional fees		76,099
Shareholder reporting fees		18,332
Trustees' fees		7,734
Registration and filing fees		375
Other Expenses		28,106
Total Expenses		3,852,925
Net Investment Income (Note 1)		3,729,228
Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Related Transactions (Note 1)
Net realized gains from:
Investment transactions		18,028,687
Foreign currency and forward contract related transactions		12,362,681
		30,391,368
Changes in unrealized appreciation (depreciation) of:
Investment transactions (net of increase in deferred capital gain country tax accruals of $32,018)		(17,285,436	)
Foreign currency and forward contract related translation		(1,560,850	)
		(18,846,286	)
Net realized and unrealized gains (losses) on investments, foreign currency and forward contract related transactions		11,545,082
Net Increase in Net Assets Resulting from Operations	$	15,274,310

	_{FIRST EAGLE}_{OVERSEAS VARIABLE FUND}
	_{SIX-MONTHS ENDED}_{JUNE 30, 2013}_(unaudited)			_{YEAR ENDED}_{DECEMBER 31,}₂₀₁₂
Operations
Net investment income	$	3,729,228		$	4,854,901
Net realized gain from investments, foreign currency and forward contract related transactions		30,391,368			30,284,500
Change in unrealized appreciation (depreciation) of investments, foreign currency and forward contract related transactions		(18,846,286	)		50,975,732
Net increase in net assets resulting from operations		15,274,310			86,115,133
Distribution to Shareholders
Dividends paid from net investment income		—			(4,535,109	)
Distributions paid from net realized gains from investment transactions		—			(33,257,469	)
Decrease in net assets resulting from distributions		—			(37,792,578	)
Fund Share Transactions (Note 6)
Net proceeds from shares sold		15,845,790			27,560,793
Net asset value of shares issued for reinvested dividends and distributions		—			37,788,552
Cost of shares redeemed		(46,934,590	)		(107,012,560	)
Decrease in net assets from Fund share transactions		(31,088,800	)		(41,663,215	)
Net increase (decrease) in net assets		(15,814,490	)		6,659,340
Net Assets (Note 1)
Beginning of period		611,624,807			604,965,467
End of period	$	595,810,317		$	611,624,807
Accumulated net investment income (loss)	$	235,238		$	(3,493,990	)

_{SIX-MONTHS ENDED}_{JUNE 30, 2013}

_{FOR YEAR ENDED DECEMBER 31,}

₍_unaudited₎

₂₀₁₂

₂₀₁₁

₂₀₁₀

₂₀₀₉

₂₀₀₈

Selected data for a share of beneficial interest

outstanding throughout each period is presented below:*

Net asset value,
beginning of period ($)

28.26

26.23

28.89

24.65

20.80

29.56

Income (loss) from investment operations:

Net investment income ($)

0.18

0.22

0.24

0.13

0.20

0.43

Net realized and unrealized
gains (losses) on investments

0.50

3.64

–2.06

4.59

4.02

–6.02

Total income (loss) from
investment operations

0.68

3.86

–1.82

4.72

4.22

–5.59

Less distributions:

Dividends from net
investment income ($)

—

–0.22

–0.35

–0.48

–0.12

–0.35

Distributions from
capital gains

—

–1.61

–0.49

—

–0.25

–2.82

Total distributions

—

–1.83

–0.84

–0.48

–0.37

–3.17

Net asset value,
end of period ($)

28.94

28.26

26.23

28.89

24.65

20.80

Total Return (%)

2.41

^(a)

14.83

–6.30

19.17

20.25

–18.82

Ratios and supplemental data

Net assets, end of period
(thousands) ($)

595,810

611,625

604,965

619,644

484,171

279,671

Ratio of operating expenses
to average net assets
including earnings credits (%)^(c)

1.26

^(b)

1.26

1.25

1.31

1.28

1.32

Ratio of net investment
income to average net assets
including earnings credits (%)^(d)

1.22

^(b)

0.79

0.82

0.51

0.89

1.60

Portfolio turnover rate (%)

9.27

^(a)

10.11

17.48

13.38

9.51

9.09

Note 1 — Significant Accounting Policies

First Eagle Variable Funds (the "Trust") is an open-end, diversified management investment company registered under the Investment Company Act of 1940, as amended ("1940 Act"). The Trust consists of one portfolio, First Eagle Overseas Variable Fund (the "Fund"). The Trust is a Delaware statutory trust and was until March 31, 2004 a Maryland Corporation operating under the name First Eagle Variable Funds, Inc. The First Eagle Overseas Variable Fund seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations.

First Eagle Investment Management, LLC (the "Adviser"), a subsidiary of Arnhold and S. Bleichroeder Holdings, Inc. ("ASB Holdings"), manages the Fund.

The following is a summary of significant accounting policies adhered to by the Fund and are in conformity with U.S. generally accepted accounting principles ("GAAP").

a) Investment valuation — The Fund computes its net asset value once daily as of the close of trading on each day the New York Stock Exchange ("NYSE") is open for trading. The net asset value per share is computed by dividing the total current value of the assets of the Fund, less its liabilities, by the total number of shares outstanding at the time of such computation.

A portfolio security, other than a bond, which is traded on a U.S. national securities exchange or a securities exchange abroad is normally valued at the price of the last sale on the exchange as of the close of business on the date on which assets are valued. If there are no sales on such date, such portfolio investment will be valued at the mean between the closing bid and asked prices (and if there is only a bid or only an asked price on such date, valuation will be at such bid or asked price for long or short positions, respectively). Securities, other than bonds, traded in the over-the-counter market are valued at the mean between the last bid and asked prices prior to the time of valuation (and if there is only a bid or only an asked price on such date, valuation will be at such bid or asked price for long or short positions, respectively), except if such unlisted security traded on the NASDAQ in which case it is valued at its last sale price (or, if available, the NASDAQ Official Closing Price).

All bonds, whether listed on an exchange or traded in the over-the-counter market (and except for short-term investments as described in the next sentence), for which market quotations are readily available are valued at the mean between the last bid and asked prices received from dealers in the over-the-counter market in the United States or abroad, except that when no asked price is available, bonds are valued at the last bid price alone. Broker-Dealers or pricing services use multiple valuation techniques to determine value. In instances where sufficient market activity exists, dealers or pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the dealers or pricing services also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining value and/or market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon-rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair values. Short-term investments maturing in sixty days or less are valued at cost plus interest earned (or discount amortized, as the case may be), which is deemed to approximate value.

Commodities (such as physical metals) are valued at the spot price at the time trading on the New York Stock Exchange closes (normally 4:00 p.m. E.S.T.).

Forward contracts are valued at the current cost of covering or offsetting such contracts at the time NYSE closes (normally 4:00 p.m. E.S.T.).

Effective March 1, 2013, the 4:00 p.m. E.S.T. exchange rates are used to convert foreign security prices into U.S. dollars. Any security that is listed or traded on more than one exchange (or traded in multiple markets) is valued at the relevant quotation on the exchange or market deemed to be the primary trading venue for that security. In the absence of such a quotation, a quotation from the exchange or market deemed by the Adviser to be the secondary trading venue for the particular security shall be used. The Fund uses pricing services to identify the market prices of publicly traded securities in its portfolio. When market prices are determined to be "stale" as a result of limited market activity for a particular holding, or in other circumstances when market prices are unavailable, such as for private placements, or

determined to be unreliable for a particular holding, such holdings may be "fair valued" in accordance with procedures approved by the Board of Trustees ("Board"). Additionally, with respect to foreign holdings, specifically in circumstances leading the Adviser to believe that significant events occurring after the close of a foreign market have materially affected the value of the Fund's holdings in that market, such holdings may be fair valued to reflect the events in accordance with procedures approved by the Board. The determination of whether a particular foreign investment should be fair valued will be based on review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets and security-specific events. The values assigned to a Fund's holdings therefore may differ on occasion from reported market values.

The Fund has adopted procedures under which movements in the prices for U.S. securities (beyond specified thresholds) occurring after the close of a foreign market may require fair valuation of securities traded in that foreign market. The values assigned to the Fund's holdings therefore may differ on occasion from reported market values. The Trust and the Adviser believe relying on the procedures as just described will result in prices that are more reflective of the actual market value of portfolio securities held by the Fund as of 4:00 p.m. E.S.T.

The Fund adopted provisions surrounding fair value measurements and disclosures that define fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. This applies to fair value measurements that are already required or permitted by other accounting standards and is intended to increase consistency of those measurements and applies broadly to securities and other types of assets and liabilities.

The Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs or assumptions to valuation techniques used to measure fair value. These inputs are used in determining the value of the Fund's investments and are summarized in the following fair value hierarchy:

Level 1 — Quoted prices in active markets for identical securities.

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — Other significant unobservable inputs (including the Fund's own assumption in determining the fair value of investments).

The following is a summary of the Fund's inputs used to value the Fund's investments as of June 30, 2013:

First Eagle Overseas Variable Fund
_DESCRIPTION	_{LEVEL 1}		_{LEVEL 2}^_(a)		_{LEVEL 3}		_TOTAL
Assets:†
International Common Stocks	$	448,101,610	$	2,576,684	$	—	$	450,678,294
International Preferred Stock		1,508,617		—		—		1,508,617
Commodity*		25,333,076		—		—		25,333,076
International Corporate Bond		—		1,341,548		—		1,341,548
International Commercial Paper		—		47,324,231		—		47,324,231
U.S. Commercial Paper		—		66,865,388		—		66,865,388
Foreign Currency Contracts**		—		4,462,581		—		4,462,581
Total	$	474,943,303	$	122,570,432	$	—	$	597,513,735
Liabilities:
Foreign Currency Contracts**	$	—	$	769,330	$	—	$	769,330
Total	$	—	$	769,330	$	—	$	769,330

b) Investment transactions and income — Investment transactions are accounted for on a trade date basis. The specific identification method is used in determining realized gains and losses from investment transactions. Dividend income is recorded on the ex-dividend date. Interest income is recorded daily on the accrual basis. In computing investment income, the Fund accretes discounts and amortizes premiums on debt obligations using the effective yield method. Payments received from certain investments held by the Fund may be comprised of dividends, capital gains and return of capital. The Fund originally estimates the expected classification of such payments. The amounts may subsequently be reclassified upon receipt of information from the issuer.

c) Expenses — Certain expenses are shared with the First Eagle Funds, an affiliated fund group. Such costs are generally allocated using the ratio of the Fund's average daily net assets relative to the total average daily net assets of First Eagle Funds. Earnings credits may reduce shareholder servicing agent fees by the amount of interest earned on balances with such service provider.

d) Foreign currency translation — The books and records of the Fund are maintained in U.S. dollars. The market values of securities which are not traded in U.S. 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 the Fund are presented at the foreign exchange rates and market values at the close of the period. The Fund does not isolate that portion of gains and losses on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the securities. Accordingly, such foreign currency gains (losses) are included in the reported net realized and unrealized gains (losses) on investment transactions on the Statement of Operations. However, for federal income tax purposes the Fund does isolate the effect of changes in foreign exchange rates from the changes in market prices for realized gains and losses on debt obligations.

e) Forward currency contracts — In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Fund has entered into forward currency contracts. The Fund enters into foreign exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. The Fund's currency transactions include portfolio hedging on portfolio positions. Portfolio hedging is the use of a forward contract (or other cash management position) with respect to one or more portfolio security positions denominated or quoted in a particular currency. Currency exchange transactions involve currencies of the different countries that the Fund invests in and serves as hedges against possible variations in the exchange rates between the currencies and U.S. dollar. The Fund engages in portfolio hedging with respect to the currency of a particular country in amounts approximating actual or anticipated positions in securities denominated in that currency. Hedging can reduce exposure to currency exchange movements, but cannot eliminate that exposure. It is possible to lose money under a hedge.

The Fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the Fund is unable to enter into a closing position. Forward currency contracts outstanding at period end, if any, are listed after the Fund's portfolio. Outstanding contracts at period end are indicative of the volume of activity during the period.

The Fund adopted provisions surrounding disclosures and derivative instruments and hedging activities which require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about currency-risk-related contingent features in derivative agreements.

In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral

posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting) including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

At June 30, 2013, the Fund had the following foreign forward currency contracts grouped into appropriate risk categories illustrated below on a gross basis:

					_{GAIN OR (LOSS) ON DERIVATIVES}_{RECOGNIZED IN INCOME}
_{RISK TYPE}	_ASSET_DERIVATIVE_{FAIR VALUE}^₁		_LIABILITY_DERIVATIVE_{FAIR VALUE}^₂		_REALIZED_GAIN^₃		_{CHANGE IN}_DEPRECIATION^₄
Foreign currency	$	4,462,581	$	769,330	$	12,489,134	$	(1,543,591	)

Forward Currency Contracts Assets and Collateral Held by Counterparty as of June 30, 2013:

_COUNTERPARTY	_{GROSS AMOUNT}_{OF ASSETS}_{PRESENTED IN}_{STATEMENT OF}_{ASSETS AND}_LIABILITIES		_FINANCIAL_INSTRUMENT			_COLLATERAL_RECEIVED		_{NET AMOUNT}_{(NOT LESS THAN $0)}
BNY Mellon	$	991,376	$	(11,789	)	$	—	$	979,587
Goldman Sachs Capital Markets LP		639,306		—			—		639,306
HSBC Bank USA		441,978		—			—		441,978
JPMorgan Chase Bank N.A.		2,145,553		(757,541	)		—		1,388,012
UBS AG		244,368		—			—		244,368
	$	4,462,581	$	(769,330	)	$	—	$	3,693,251

Forward Currency Contracts Liabilities and Collateral Pledged as of June 30, 2013:

_COUNTERPARTY	_{GROSS AMOUNT}_{OF LIABILITIES}_{PRESENTED IN}_{STATEMENT OF}_{ASSETS AND}_LIABILITIES		_FINANCIAL_INSTRUMENT			_COLLATERAL_PLEDGED		_{NET AMOUNT}_{(NOT LESS THAN $0)}
BNY Mellon	$	11,789	$	(11,789	)	$	—	$	—
JPMorgan Chase Bank N.A.		757,541		(757,541	)		—		—
	$	769,330	$	(769,330	)	$	—	$	—

f) Treasury Inflation-Protected Securities — The Fund may invest in Treasury Inflation-Protected Securities ("TIPS") which are specially structured bonds in which the principal amount is adjusted to keep pace with inflation. The inflation (deflation) adjustment is applied to the principal of each bond on a monthly basis and is accounted for as interest income on the Statement of Operations. TIPS are subject to interest rate risk.

g) Restricted Securities — The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of the Fund's Schedule of Investments.

h) United States income taxes — No provision has been made for U.S. federal income taxes since it is the intention of the Fund to distribute to shareholders all taxable net investment income and net realized gains on

investments, if any, within the allowable time limit, and to comply with the provisions of the Code for a Regulated Investment Company. The Fund declares and pays such income and capital gains on an annual basis.

The Fund adopted provisions surrounding income taxes, which require the tax effects of certain tax positions to be recognized. These tax positions must meet a "more likely than not" standard that based on their technical merits, have a more than 50% likelihood of being sustained upon examination. Management of the Trust has analyzed the Fund's tax positions taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund's financial statements.

i) Use of estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

j) Foreign Taxes — The Fund may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Note 2 — Investment Advisory, Custody and Administration Agreements; Transactions with Related Persons

For its services, the Adviser receives, pursuant to an Investment Advisory Agreement between the Fund and the Adviser (the "Advisory Agreement") an annual advisory fee at an annual rate of 0.75% of the average daily net assets of the Fund.

The Adviser also performs certain administrative, accounting, operations, compliance and other services on behalf of the Fund, and in accordance with its agreement with them, the Fund reimburses the Adviser for costs (including personnel, related overhead and other costs) related to those services. For the six-month period ended June 30, 2013, the Fund reimbursed the Adviser $28,625 and had payable to the Adviser $24,189.

The Fund has entered into a Custody Agreement with State Street Bank and Trust Company ("SSB"). The Custody Agreement provides for an annual fee based on the amount of assets under custody plus transaction charges. SSB serves as custodian of the Fund's portfolio securities and other assets. SSB has directly entered into a sub-custodial agreement to maintain the custody of gold bullion in the Fund. Under the terms of the Custody Agreement between the Fund and SSB, SSB maintains and deposits in separate accounts, cash, securities and other assets of the Fund. SSB is also required, upon the order of the Fund, to deliver securities held by SSB and the sub-custodian, and to make payments for securities purchased by the Fund. SSB has also entered into sub-custodian agreements with a number of foreign banks and clearing agencies, pursuant to which portfolio securities purchased outside the United States are maintained in the custody of these entities.

The Fund has also entered into an Administration Agreement with SSB, pursuant to which SSB provides certain financial reporting and other administrative services. SSB, as the Fund's Administrator, receives annual fees separate from and in addition to the fees it receives for its services as the Fund's custodian.

Included on the accompanying Statement of Assets and Liabilities of the Fund are fees that are payable to the Trustees in the amount of $917. The Trust adopted a Trustee Deferred Compensation Plan (the "Plan") which allows the eligible independent Trustees to defer the receipt of all or a portion of compensation related to performance of their duties as a Trustee. The deferred fees are invested in various First Eagle Funds until distribution in accordance with the Plan.

Note 3 — Plans of Distribution

Under the terms of the Distribution Plans and Agreements (the "Plans") with FEF Distributors, LLC (the "Distributor"), pursuant to the provisions of Rule 12b-1 under the 1940 Act, the Fund may pay monthly, a distribution related fee at an annual rate of up to 0.25% of the Fund's average daily net assets. Under the Plans, the Distributor will use amounts payable by the Fund in their entirety for payment to insurance companies which are the issuers of variable contracts invested in shares of the Fund, in order to pay or reimburse such insurance companies for distribution and shareholder servicing-related expenses incurred or paid by such insurance companies. For the six-month period ended June 30, 2013 the distribution fees incurred by the Fund was $763,685.

Note 4 — Purchases and Sales of Securities

During the six-month period ended June 30, 2013, the cost of purchases of investments and proceeds from sales of investments, excluding U.S. Government and short-term securities, totaled $47,109,016 and $102,127,489, respectively.

There were no purchases or sales of U.S. Government securities during the six-month period ended June 30, 2013.

Note 5 — Line of Credit

At a meeting on September 12, 2012, the Board of Trustees approved continuing a $300 million committed, unsecured line of credit (the "Credit Facility") with State Street Bank and Trust Company for the Fund and First Eagle Funds, to be utilized for temporarily financing the purchase or sale of securities for prompt delivery in the ordinary course of business or for temporarily financing the redemption of shares of the Fund or the First Eagle Funds at the request of shareholders and other temporary or emergency purposes. Under the Credit Facility arrangement, the Fund has agreed to pay an annual commitment fee on the unused balance, allocated pro rata with the First Eagle Funds, based on the relative asset size of the Fund. A portion of the commitment fees related to the line of credit are paid by the Fund and are included in miscellaneous expenses in the Statement of Operations. During the six-month period ended June 30, 2013, the Fund had no borrowings under the agreement.

Note 6 — Capital Stock

Transactions in shares of capital stock were as follows:

	_SIX-MONTH_{PERIOD ENDED}_{JUNE 30, 2013}			_{YEAR ENDED}_{DECEMBER 31, 2012}
Shares sold		540,860			1,025,964
Shares issued for reinvested dividends		—			1,362,732
Shares redeemed		(1,599,062	)		(3,806,876	)
Net decrease		(1,058,202	)		(1,418,180	)

Note 7 — Indemnification and Investment Risk

In the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would

involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote. The Fund may have elements of risk not typically associated with investments in the United States of America due to its investments in foreign countries or regions. Such foreign investments may subject the Fund to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities. The securities markets in many emerging-market countries are substantially smaller, less developed, less liquid and more volatile than the securities markets of developed countries.

The Fund is subject to interest rate and credit risk. The value of debt securities may decline as interest rates increase. The Fund could lose money if the issuer of a fixed income security is unable to pay interest or repay principal when it is due. The ability of the issuers of debt to meet their obligations may be affected by the economic and political developments in a specific industry or region.

The Fund enters into derivatives which may represent off-balance sheet risk. Off-balance sheet risk exists when the maximum potential loss on a particular investment is greater than the value of such investment as reflected in the Statement of Assets and Liabilities.

The shares of the Fund may be purchased only by the separate accounts of insurance companies for the purpose of funding variable life insurance policies and variable annuity contracts. At June 30, 2013, the Fund is offered as an investment option by two insurance companies and accordingly a decision by any insurance company to withdraw its participation may have a negative impact on the Fund.

Note 8 — Subsequent Events

In accordance with the provision surrounding Subsequent Events adopted by the Fund, management has evaluated the possibility of subsequent events existing in the Fund's financial statements. Management has determined that there are no material events that would require disclosures in the Fund's financial statements.

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including advisory fees; distribution fees (12b-1) and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This Example is based on an investment of $1,000 invested on January 1, 2013 and held for the six-months ended June 30, 2013.

Actual Expenses

The table below titled "Based on Actual Total Return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

Based on Actual Total Return¹

				_ACTUAL_TOTAL_RETURN^₂				_BEGINNING_ACCOUNT_VALUE				_ENDING_ACCOUNT_VALUE				_ANNUALIZED_EXPENSE_RATIO				_EXPENSES_PAID_{DURING THE}_PERIOD^₃
First Eagle Overseas Variable Fund					2.41	%		$	1,000.00			$	1,024.10				1.26	%		$	6.32

Hypothetical Example for Comparison Purposes

The table below titled "Based on Hypothetical Total Return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5% hypothetical example relating to the Fund with the 5% hypothetical examples that appear in the shareholder reports of other funds.

This Example is based on an investment of $1,000 invested on January 1, 2013 and held for the six-months ended June 30, 2013.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or back-end sales charges (loads). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Based on Hypothetical Total Return¹

				_HYPOTHETICAL_ANNUALIZED_TOTAL_RETURN				_BEGINNING_ACCOUNT_VALUE				_ENDING_ACCOUNT_VALUE				_ANNUALIZED_EXPENSE_RATIO				_EXPENSES_PAID_{DURING THE}_PERIOD^₂
First Eagle Overseas Variable Fund					5.00	%		$	1,000.00			$	1,018.55				1.26	%		$	6.31

Trustees

Lisa Anderson

John P. Arnhold

Candace K. Beinecke (Chair)

Jean-Marie Eveillard

Jean D. Hamilton

James E. Jordan

William M. Kelly

Paul J. Lawler

Officers

John P. Arnhold

President

Robert Bruno

Senior Vice President

Joseph T. Malone

Chief Financial Officer

Mark D. Goldstein

Chief Compliance Officer

Suzan J. Afifi

Secretary & Vice President

Philip Santopadre

Treasurer

Michael Luzzatto

Vice President

Meng Lam

Assistant Treasurer

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer. Copies of the code of ethics may be requested free of charge by calling 1-800-334-2143 (toll free).

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual report.

Item 4. Principal Accountant Fees and Services

Not applicable to this semi-annual report.

Item 5. Audit Committee of Listed Registrants

Not applicable at this time.

Item 6. Schedule of Investments.

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable at this time.

Item 8. Purchases of Equity Securities by Close-End Management Investment Company and Affiliated Purchasers.

Not applicable at this time.

Item 9. Submission of Matters to a Vote of Security Holders.

Not applicable at this time.

Item 10. Controls and Procedures.

(a) In the opinion of the principal executive officer and principal financial officer, based on their evaluation, the registrant’s disclosure controls and procedures are adequately designed and are operating effectively to ensure (i) that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared; and (ii) that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	First Eagle Variable Funds

By (Signature and Title)*	/s/ John P. Arnhold

	John P. Arnhold, President

Date: August 20, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ John P. Arnhold

	John P. Arnhold, Principal Executive Officer

Date: August 20, 2013

By (Signature and Title)*	/s/ Joseph T. Malone

	Joseph T. Malone, Principal Financial Officer

Date: August 20, 2013

* Print the name and title of each signing officer under his or her signature.

Letter from the President					4
Management's Discussion of Fund Performance					6
Fund Overview					10
Schedule of Investments					12
Statement of Assets and Liabilities					22
Statement of Operations					24
Statements of Changes in Net Assets					25
Financial Highlights					26
Notes to Financial Statements					28
Fund Expenses					42
General Information					44

	_ONE-YEAR			_FIVE-YEARS			_TEN-YEARS
First Eagle Overseas Variable Fund		13.03	%		5.78	%		13.16	%
MSCI EAFE Index		18.62			–0.63			7.67
Consumer Price Index		1.75			1.31			2.43

Gross unrealized appreciation	$	117,391,280
Gross unrealized depreciation		(42,409,376	)
Net unrealized appreciation	$	74,981,904