FS Energy Total Return Fund–I

FSEYX

Fund:

Mutual fund

Investment objectives

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

Overview

FS Energy Total Return Fund is a mutual fund that offers total return through investing in energy and energy infrastructure.

Adviser

FS Energy Advisor, LLC
An affiliate of FS Investments

Sub-adviser

Magnetar Asset Management, LLC


Fund information updated 6/5/2020

Daily NAV 1 $7.82
Daily NAV change (%) 2.49%
Daily NAV change ($) $0.19


View Pricing Disclosure For Footnote 1
1

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.

Performance – returns


TOTAL RETURNS As of 6/5/2020 MTD QTD YTD 1 YR 3 YRS SINCE INCEPTION 3/15/2017
FSEYX (Class I at NAV) 7.94% 49.48% -23.48% -23.29% -7.36% -8.00%
Performance data quoted is past performance and is no guarantee of future results. Returns less than one year are cumulative; all others are annualized. QTD and YTD information is provided on a calendar-year basis. Total return figures reflect changes in share price and reinvestment of dividend and capital gain distributions. The investment return and principal value of an Investment will fluctuate so that a n 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. The benchmarks are shown for illustrative purposes only. An investment cannot be made directly in an Index. The Fund's actual Investments and performance may differ substantially from those of the indices presented.

Key facts

Ticker FSEYX
Min. initial investment 1 $1 million
Distributions 4 Monthly
CUSIP 302691811
Net expense ratio 2 3 1.25%
Gross expense ratio 2 2.35%
Share class inception date 3/15/2017
Liquidity Daily
View key facts disclosure for Footnotes 1234
1Class I Shares minimum initial investment ranges from $2,500 (eligible accounts through certain intermediary institutions) to $1 million. Any minimum initial investment requirement may be waived in the fund’s sole discretion.
2FS Energy Total Return Fund previously operated as a closed-end interval fund (the “Predecessor Fund”) and was reorganized into the Fund immediately prior to the opening of business on May 4, 2020. The gross and net expense ratio calculations are each a percentage of average net assets for year 1. The Fund’s actual expense ratio may be different than the estimates listed.
3The Adviser has entered into an expense limitation agreement with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits “total annual fund operating expenses” (exclusive of management fees, distribution or servicing fees, interest, taxes, brokerage fees and commissions, dividends and interest paid on short positions, acquired fund fees and expenses and extraordinary expenses (as determined in the sole discretion of the Adviser)) to not more than 0.25% of the average daily net assets for the Fund until at least the date that is one year from the effective date of the Fund’s prospectus. The Fund may terminate the expense limitation agreement at any time. The expense limitation agreement permits the Adviser to recoup waived or reimbursed amounts within the three-year period from the date of the waiver after the Adviser bears the expense, provided total expenses, including such recoupment, do not exceed the annual expense limit in effect at the time of such waiver and reimbursement or recoupment. The Adviser may recoup amounts previously waived for the Predecessor Fund prior to the reorganization subject to the above-referenced limitations.
4The 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.
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 their 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;
  • 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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