PHILADELPHIA CREAM, June 13, 2022 /PRNewswire/ — FS Investments, a leading alternative investment manager, has announced that FS Multi-Strategy Alternatives Fund (the “Fund”, which I share: FSMSX), a multi-strategy liquid alternative solution under advised by Wilshire Associates, has reached its fifth anniversary. The Fund is designed to generate uncorrelated absolute returns over a market cycle by investing in 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 current Fed tightening cycle create significant challenges for investors today,” said Mike Kelly, Co-Chairman 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 leverages FS Investment’s expertise in constructing and managing alternative beta strategies to build a balanced portfolio that seeks to outperform in difficult market environments and Wilshire’s research on hedge fund managers.”
Over the past five years, the Fund has generated returns with low correlation and beta to traditional stocks and bonds. The Fund generated a return of 13.96% in 2021. Year-to-date, the Fund generated a return of 2.04%, while a 60/40 portfolio1 lost -10.97%, through May 31stthe worst year-to-date performance for a 60/40 portfolio since 2008. March 31, 2022the performance of the Fund over 1 year was 7.65% and the performance since its creation (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 net of expenses, excluding dividends and interest expense, Class I: 1.50%.2 Past performance does not guarantee future results. Performance data quoted represents past performance and current returns may be higher or lower. Investment returns and the 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 other share classes of the Fund may have different performance characteristics. Please call 877-924-4766 or visit our website at www.fsinvestments.com for up-to-date performance data through the end of the most recent month.
About FS Investments
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions build better portfolios. The company provides access to alternative sources of revenue and growth, and is focused 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 firm specializing in investment products, advisory services and technology solutions. They are leaders in helping institutions build multi-strategy portfolios that combine active hedge fund managers with passive rules-based strategies.. Visit https://www.wilshire.com/ to learn more.
1. The 60/40 portfolio refers to an allocation of 60% 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 so that the total annual operating expenses of the fund (excluding excluded expenses) do not exceed 0.25% of the average daily net assets of the Class I Shares of the Fund up to April 11, 2024.
To determine if the Fund is a suitable investment for you, carefully consider the Fund’s investment objectives, risk, charges and expenses. This and other information can be found in the Fund’s prospectus (full and summary), which can be obtained by calling 877-924-4766 or visiting www.fsinvestments.com. Please read the prospectus carefully before investing.
Investing in the Fund involves risks, including the risk that a shareholder will receive little or no return on their investment or that a shareholder will lose some or all of their investment. The strategies employed by the Advisor, Underlying Managers and Alternative Beta Providers may not be consistently successful or may contain errors, omissions, imperfections or malfunctions. These errors can lead to, among other things, runtime and allocation failures and failures to properly collect 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 derivatives transactions largely depends on the creditworthiness of the parties to the transactions. If a counterparty to such a transaction defaults, the exercise of the contractual rights may cause 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 complete absence of these events, may have a material adverse effect on the performance of the Fund. A short sale of a security involves the theoretical risk of unlimited loss due to increases in the market price of the security sold short. The Fund’s use of short selling, in certain circumstances, may result in material losses. If there is a perception that a proposed merger, exchange offer or cash tender offer will not be completed or will be delayed, the market price of the security may fall sharply, which will have a negative impact on the fund. In addition to the normal risks associated with investing, international and emerging markets may involve the risk of loss of capital due to adverse fluctuations in currency values, differences in generally accepted accounting principles or social, economic or politics in other countries. The Fund is subject to interest rate risk and its value will decline as interest rates rise. Investments in commodities are subject to higher volatility than more traditional investments. The Fund may employ leverage and other speculative investment practices which may increase the risk of investment loss and accelerate the rate of potential losses. The Fund is classified as a “non-diversified” investment company, which means that the percentage of its assets which may be invested in the securities of the same issuer is not limited by the law of 1940.
FS Multi-Strategy Alternatives Fund is distributed by SEI Investments Distribution Co. (SIDCO), 1 Freedom Valley Drive, Oaks, Pennsylvania [19456SIDNotaffiliatedwithFSInvestmentSolutionsLLCWilshireAssociatesMidOceanPartnersChiltonInvestmentCoouCrabelCapitalMgmt[19456SIDCOn’estpasaffiliéàFSInvestmentSolutionsLLCWilshireAssociatesMidOceanPartnersChiltonInvestmentCoouCrabelCapitalMgmt
SOURCE FS Investments