PHILADELPHIA, June 13, 2022 /PRNewswire/ — FS Investments, a leading alternative investment manager, announced that FS Multi-Strategy Alternatives Fund (the “Fund,” I share: FSMSX), a liquid alternative, multi-strategy solution sub-advised by Wilshire Associates, has reached its five-year anniversary. The Fund is built to generate absolute, low-correlated returns over a market cycle by investing across stocks, bonds, commodities, and currencies through a unique combination of active hedge fund managers and alternative beta strategies.
“Geopolitical tensions, rising interest rates, high inflation and uncertainty surrounding the ultimate course of the Fed’s current tightening cycle are creating significant challenges for investors today,” said Mike Kelly, Co-President and Chief Investment Officer at FS Investments. “In this environment of heightened volatility, FS Multi-Strategy Alternatives Fund can serve as a timely multi-asset solution that draws on FS Investment’s expertise in constructing and managing alternative beta strategies to build a balanced portfolio that seeks to outperform in challenging market environments and Wilshire’s hedge fund manager research.”
Over the last five years the Fund has generated returns with low correlation and beta to traditional stocks and bonds. The Fund returned 13.96% in 2021. Year-to-date, the Fund has returned 2.04%, while a 60/40 portfolio1 has lost -10.97%, through May 31, the worst year-to-date performance for a 60/40 portfolio since 2008. As of March 31, 2022, the Fund’s 1-year performance was 7.65% and performance since inception (May 16, 2017) was 3.32%.
Total annual fund operating expenses, Class I: 2.38%. Total annual fund operating expenses after expense reductions, Class I: 1.72%.2 Total annual fund operating expenses after expense reductions, excluding dividend and interest expenses, Class I: 1.50%.2 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be higher or lower. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Performance for periods less than one year is cumulative. The Fund’s other share classes may have different performance characteristics. Please call 877-924- 4766 or visit our website at www.fsinvestments.com for performance data current to the most recent month-end.
About FS Investments
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth, and focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Leawood, KS. Visit www.fsinvestments.com to learn more.
About Wilshire Associates
Wilshire is a global investment advisory company specializing in investment products, consulting services and technology solutions. They are leaders in helping institutions build multi-strategy portfolios that blend active hedge fund managers with passive rules-based strategies. Visit https://www.wilshire.com/ to learn more.
1. The 60/40 portfolio refers to a 60% allocation to equities (growth) and 40% to traditional bonds (income).
2. FS Fund Advisor, LLC has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep total annual fund operating expenses (not including excluded expenses) from exceeding 0.25% of the average daily net assets of the Fund’s Class I shares until April 11, 2024.
To determine if the Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk, charges and expenses. This and other information can be found in the Fund (full and summary) prospectus, which can be obtained by calling 877-924-4766 or by visiting www.fsinvestments.com. Please read the prospectus carefully before investing.
Investing in the Fund involves risk, including the risk that a shareholder may receive little or no return on their investment or that a shareholder may lose part or all of their investment. The strategies used by the Adviser, Underlying Managers, and Alternative Beta Providers may not be successful on an ongoing basis or could contain errors, omissions, imperfections, or malfunctions. These errors may result in, among other things, execution and allocation failures and failures to properly gather and organize large amounts of data from third parties and other external sources. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. The stability and liquidity of many derivative transactions depend in large part on the creditworthiness of the parties to the transactions. If a counterparty to such a transaction defaults, exercising contractual rights may involve delays or costs for the Fund. The Fund may seek to profit from the occurrence of specific corporate or other events. A delay in the timing of these events, or the failure of these events to occur at all, may have a significant negative effect on the Fund’s performance. A short sale of a security involves the theoretical risk of unlimited loss because of increases in the market price of the security sold short. The Fund’s use of short sales, in certain circumstances, can result in significant losses. If there is a perception that a proposed merger, exchange offer, or cash tender offer transaction will not be consummated or will be delayed, the market price of the security may decline sharply negatively affecting the fund. In addition to the normal risks associated with investing, international and emerging markets may involve the risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. The Fund is subject to interest rate risk and will decline in value as interest rates rise. Investments in commodities are subject to higher volatility than more traditional investments. The Fund may engage in leveraging and other speculative investment practices that may increase the risk of loss of investment, and accelerate the velocity of potential losses. The Fund is classified as a “non-diversified” investment company, which means that the percentage of its assets that may be invested in the securities of a single issuer is not limited by the 1940 Act.
FS Multi-Strategy Alternatives Fund is distributed by SEI Investments Distribution Co. (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with FS Investment Solutions, LLC, Wilshire Associates, MidOcean Partners, Chilton Investment Co., or Crabel Capital Mgmt.
SOURCE FS Investments