FS Credit Income Fund–A

FCREX

Fund:

Closed-end interval fund

Investment objective

Provide attractive total returns, including current income and capital appreciation

Overview

FS Credit Income Fund is a continuously offered, non-diversified, closed-end investment management company operating as an interval fund.

Adviser

FS Credit Income Advisor, LLC
An affiliate of FS Investments

Sub-adviser

GoldenTree Asset Management Credit Advisor LLC


Fund information updated xx/xx/xxxx

Daily NAV 1 2 -
Daily NAV change ($) -
Daily NAV change (%) -
Distribution rate (at NAV) -

Fund materials

Prospectus
SEC filings

View Pricing Disclosure For Footnotes 12
1FS Credit Income Fund’s NAV per common share as of the date indicated is the NAV determined by FS Credit Income Fund for purposes of complying with the requirements of Section 23(b) of the Investment Company Act of 1940, as amended, and has not been approved by FS Credit Income Fund’s board of trustees. FS Credit Income Fund’s NAV per common share may increase or decrease in the future, and any such change may be material.

The performance data quoted represents past performance. Past performance does not guarantee future results. 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 their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 877-628-8575 or visit our website at www.fsinvestments.com.
2The public ofering price for Class A shares of FS Credit Income Fund is equal to NAV plus an upfront sales load of up to 5.75% of the public offering price for Class A shares. Class A shares are also subject to a monthly shareholder servicing fee at an annual rate of up to 0.25% of the average daily net assets of FS Credit Income Fund attributable to the Class A shares. See FS Credit Income Fund’s prospectus for additional information regarding applicable fees and expenses.

Key facts

Ticker FCREX
Min. initial investment amount 2 Non-qualified $2,500
Qualified $1,000
Total assets -
Distributions 5 Quarterly
CUSIP 30300R104
Sponsor commitment 3 -
Net expense ratio 4 2.94%
Share repurchase program 6 Quarterly; no less than 5% of shares outstanding
Gross expense ratio 1 4.90%
View key facts disclosure for Footnotes 123456
1Calculated as a percentage of average net assets attributable for the first year of the fund's operations. The fund’s actual expenses may be different than the estimate above.
2Any minimum initial investment requirement may be waived in FS Credit Income Fund’s sole discretion.
3The sponsor commitment represents the aggregate investments in FS Credit Income Fund made by individuals and entities affiliated with FS Investments and GoldenTree Asset Management LP, including members of FS Credit Income Fund’s board of trustees.
4Calculated as a percentage of average net assets attributable to shares for year 1. The fund’s actual expenses may be different than the estimate above. The calculation also takes into account the fee waiver and/or expense reimbursement during such time period. FS Credit Income Advisor, LLC, the Fund’s adviser, has entered into an expense limitation agreement with the Fund under which it has agreed to pay or absorb the “ordinary operating expenses” (exclusive of (1) investment advisory fees, (2) portfolio transaction and other investment-related costs, (3) interest expense and other financing costs, (4) taxes, (5) distribution or shareholder servicing fees and (6) extraordinary expenses) of the fund attributable to a share class to the extent that such expenses exceed 0.00% per annum of the Fund’s average daily net assets attributable to the applicable share class until at least September 27, 2018. The Fund may terminate the expense limitation agreement at any time. The expense limitation agreement permits the adviser to recoup the amounts it has paid or absorbed pursuant to the agreement in the future, subject to certain limitations. The expense limitation may be different in future years.
5The payment of distributions on FS Credit Income Fund’s common shares is subject to the discretion of FS Credit Income Fund’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such distributions.
6No secondary market is expected to develop for the Fund’s common shares; liquidity for the common shares will be provided only through quarterly repurchase offers for no less than 5% and no more than 25% of the common shares at net asset value, and there is no guarantee that an investor will be able to sell all the common shares that the investor desires to sell in the repurchase offer. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity.
View risk factors disclosure

Investing in the Fund involves risks, 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 its investment. Below is a summary of some of the principal risks of investing in the Fund. The following is only a summary of certain risks of investing in the Fund. For a more complete discussion of the risks of investment in the Fund, see the Fund’s prospectus, including the risk factors set forth under the heading entitled “Types of Investments and Related Risks,” before deciding to invest in the Fund.

Risks related to the Fund’s investments include risks relating to:

  • The value of the Fund’s financial instruments, and the financial markets in general, which may be extremely volatile; 
  • The Fund’s investment focus on credit-related financial instruments, which may increase the volatility of investment results over time and create the potential that market movements that impact only specific asset classes or a loss in any such position could have a material adverse impact on the Fund’s financial instruments;
  • The Fund’s expectation that most of its investments will be in securities that are rated below investment grade or would be rated below investment grade if they were rated. Below investment grade instruments (commonly referred to as “high yield” securities or “junk bonds”) may be particularly susceptible to economic downturns, which could cause losses;
  • The use of short sales, options, leverage, futures, swaps and other derivative instruments and other investment techniques, which may create special risks and substantially increase the impact of adverse price movements on the Fund’s portfolio;
  • The Fund’s investments in distressed assets and/or positions that are illiquid, the realization and/or disposition of which may not occur for an extended period of time;
  • Investments in non-U.S. securities and securities denominated in foreign currencies;
  • Market disruption and geopolitical events, economic events and market events, and government intervention in the financial markets; 
  • and Inflation, deflation and interest rate risks.

Other risks relating to the Fund include risks resulting from:

  • The Fund’s lack of operating history and FS Credit Income Advisor’s prior investment adviser experience;
  • The Fund’s long-term investment horizon, management and dependence on key personnel;
  • The liquidity risks associated with the Fund’s closed-end interval fund structure and the fact that the shares of the Fund will not be listed on any national securities exchange at this time, if ever;
  • The anti-takeover provisions in the Fund’s declaration of trust and bylaws;
  • The Fund’s status as a non-diversified investment company; and
  • The Fund’s status as a RIC for U.S. federal income tax purposes.

Accordingly, the Fund should be considered a speculative, long-term investment of limited liquidity that entails substantial risks, and prospective investors should invest in the Fund only if they can sustain a complete loss of their investments.


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