FS Energy Total Return Fund–I



Closed-end interval fund

Investment objectives

Generate an attractive total return consisting of current income and capital appreciation


FS Energy Total Return Fund is a continuously offered, non-traded closed-end fund operating as an interval fund.


FS Energy Advisor, LLC
An affiliate of FS Investments


Magnetar Asset Management, LLC

Fund information updated 7/12/2019

Daily NAV 1 $11.37
Daily NAV change ($) $0.00
Daily NAV change (%) 0.00%
Distribution rate (at NAV) 2 5.50%

View Pricing Disclosure For Footnotes 12

FS Energy Total Return Fund’s NAV per common share as of the date indicated is the NAV determined by FS Energy Total Return 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 Energy Total Return Fund's board of trustees. FS Energy Total Return 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 annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the most recent quarterly cash distribution per share as of the date indicated, without compounding), divided by the fund’s net asset value (“NAV”) per share of the applicable share class as of the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions on the fund’s common shares is subject to the discretion of the 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 future distributions. For the year ended October 31, 2018, 50% of the fund's distributions were funded through net investment income and 50% were funded through return of capital. The determination of the tax attributes of the fund’s distributions is made annually at the end of the calendar year, and a determination made on an interim basis may not be representative of the actual tax attributes of the fund’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

Key facts

Ticker XFEYX
Min. initial investment 2 $1 million
Total assets (as of 12/31/2018) $42.7 million
Distributions 5 Quarterly
CUSIP 302682109
Sponsor commitment
(as of 3/31/2019) 3
$16.8 million
Net expense ratio, excluding estimated interest expense associated with expected use of leverage 4 1.75%
Share class inception date 3/15/2017
Share repurchase program 1 Quarterly; no less than 5% of shares outstanding

Upcoming repurchase offer 6

Repurchase period notice 3/15/2019
Repurchase request deadline 4/17/2019
Repurchasing pricing date 4/17/2019
Payment by 4/24/2019
View key facts disclosure for Footnotes 123456
1No secondary market is expected to develop for the Fund's common shares; liquidity for the common shares will be provided only through quarterly repurchase ofers 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.
2Any minimum initial investment requirement may be waived in FS Energy Total Return Fund's sole discretion.
3The sponsor commitment represents the aggregate investments in FS Energy Total Return Fund made by individuals and entities affiliated with FS Investments and Magnetar Capital Partners LP, including members of FS Energy Total Return Fund's board of trustees.
4Calculated as a percentage of average net assets attributable to shares for the twelve months ended February 28, 2019. If the estimated interest expense associated with the fund's use of leverage is included, the net expense ratio is expected to be 2.74%. 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 Energy Advisor, LLC, FS Energy Total Return Fund's investment adviser, has entered into an expense limitation agreement with the fund under which it has agreed to pay or waive 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 (a) 0.00% per annum of the fund's average daily net assets attributable to the applicable share class until March 8, 2018 and (b) 0.25% per annum of the fund's average daily net assets attributable to the applicable share class thereafter. The expense limitation agreement will continue indefinitely until terminated by the Board on written notice to FS Energy Advisor. The expense limitation agreement permits the adviser to recoup the amounts it has paid or waived pursuant to the agreement in the future, subject to certain limitations.
5The payment of distributions on FS Energy Total Return Fund's common shares is subject to the discretion of FS Energy Total Return 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.
6Dates are subject to change. Each repurchase offer is subject to the terms and conditions set forth in the applicable repurchase offer notice. Repurchase period notice: the date on which the repurchase offer period notification will be sent to shareholders via email and/or mail. Investors who have elected electronic delivery will receive their documentation via email. All other investors will receive physical copies in the mail. Advisors will receive an email notification with a way to access copies of the repurchase offer documentation sent to investors for their reference. Repurchase request deadline: the date the quarterly repurchase offers are scheduled to expire. The Fund must receive all repurchase requests in response to the repurchase offer or withdrawals/modifications of previously submitted repurchase requests for such repurchase offer from shareholders by this date. Repurchase pricing date: the date on which the Fund determines the net asset value applicable to the repurchase of the Fund's common shares. Payment by: the date by which the Fund must pay shareholders for any common shares repurchased. Proceeds sent to brokerage accounts may take 7 to 10 days to appear in accounts. Checks are sent via USPS and usually arrive within 7 to 10 days after mailing for registered shareholders. Proceeds sent via ACH to a bank account are typically credited to the bank account in 3 to 5 days for registered shareholders.
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:

  • Investments in natural resource companies, master limited partnerships (MLPs), royalty trusts, equity securities (including dividend-paying securities, private investment in public equity transactions and securities of smaller capitalization companies), debt instruments, high yield instruments and U.S. government debt securities;
  • Energy commodity prices and the volume of, and demand for, energy commodities;
  • The highly cyclical nature of the natural resource and energy sectors;
  • The depletion of commodity reserves or overstatement of the quantities of Natural Resource Company reserves;
  • Changes in the regulatory environment that affect the profitability of Natural Resource Companies;
  • Fluctuations of interest rates and the economic impact on the Fund's fixed income investments;
  • Investments in illiquid and restricted securities;
  • Predicting future commodity prices;
  • The Fund's use of derivative transactions that have economic leverage embedded in them and/or leverage;
  • 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 and deflation risk.

Other risks relating to the Fund include risks resulting from:

  • The Fund's lack of operating history;
  • The recently established relationship between FS Energy Advisor and Magnetar, as well as each entity's limited experience in advising or sub-advising a registered investment company (RIC);
  • 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;
  • Risks related to regulatory changes impacting investments in commodities and derivatives;
  • 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 investment 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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