Generate current income and, to a lesser extent, long-term capital appreciation
FSIC III is a business development company (BDC) designed to provide a high level of current income. The fund primarily invests in floating rate, senior secured loans of private U.S. middle market companies.
FSIC III Advisor, LLC
An affiliate of FS Investments
Stockholder Returns (Without Sales Charge) are the total returns an investor received for the highlighted period taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at FSIC III’s public offering price, excluding selling commissions and dealer manager fees, at the beginning of the applicable period and reinvested all cash distributions pursuant to FSIC III’s distribution reinvestment plan ("DRP"). Valuation as of the end of each period is the redemption price pursuant to FSIC III’s share repurchase program on such date. Stockholder Returns (Without Sales Charge) do not include selling commissions and dealer manager fees, which could total up to 10% of FSIC III’s public offering price. Had such selling commissions and dealer manager fees been included, performance would be lower. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.
FSIC III closed its offering to new investors investing through independent broker-dealers in February 2016, but continues to offer shares to new investors through the institutional channel at the institutional offering price. FSIC III’s shares are no longer subject to a sales load, but are still subject to offering expenses of up to 1.5% of the gross proceeds received in its offering. FSIC III’s ratio of total operating expenses, together with excise taxes, to average net assets was 5.89% for the year ended December 31, 2015.
Asset: As of September 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Includes investments held by FSIC III and the assets underlying FSIC III’s total return swap (TRS) financing arrangement with Citibank, N.A. Excluding investments held under the TRS, FSIC III’s investment portfolio and investment allocations were 64% first lien senior secured loans, 9% second lien senior secured loans, 3% senior secured bonds, 19% subordinated debt, <1% collateralized securities and 5% equity/other.
Industry: As of September 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Does not include assets underlying FSIC III's TRS financing arrangement with Citibank, N.A.
Top 10 holdings: As of September 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Securities may be an obligation of one or more entities affiliated with the named company. Percentages shown are net of unfunded commitment amounts. Does not include assets underlying FSIC III’s TRS financing arrangement with Citibank, N.A.
Investing in FSIC III may be considered speculative and involves a high level of risk, including the risk of a substantial loss of investment. The following are some of the risks an investment in FSIC III’s common stock involves; however, you should carefully consider all of the information found in the section of FSIC III’s prospectus entitled “Risk Factors” before deciding to invest in shares of FSIC III’s common stock.
FSIC III is only available for new investment through the RIA channel.