FS Credit Income Fund

A differentiated way to invest beyond traditional fixed income.

Learn how the fund has been delivering performance since inception.

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Giving your fixed income portfolio enough thought?

When it comes to your future income potential, the choices you make today matter. Yields on traditional fixed income (or core) investments remain low by historical standards, but the recent rise may give investors pause.

See how our fund seeks to take you beyond the core.

The Fund is suitable only for investors who can bear the risks associated with the Fund’s limited liquidity and should be viewed as a long-term investment. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as a return of capital, borrowings or expense reimbursements and waivers. Carefully review these and other risks at the end of the video.

Accessing a $6.5 trillion opportunity1

Trillions of dollars of debt exist beyond the core in assets like high yield bondsHigh yield bonds have the potential to pay a higher yield and are rated lower than investment grade corporate and municipal bonds., structured productsStructured products are investment vehicles that invest in a wide range of income-producing assets that raise money by issuing debt and equity securities backed by a pool of assets., senior secured loansSenior secured loans are issued by companies to finance their operations, support growth or refinance existing debt. Senior secured loans are first to be paid in the event of a default. and emerging market debtEmerging market debt includes investment in the debt of developing economies and the corporations within them.. Adding these to your fixed income portfolio may help provide differentiated sources of income.2

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  • $1,849BEmerging market government debt
  • $969BEmerging market corporate debt
  • $1,310BU.S. high yield bonds
  • $955BU.S. loans
  • $302BEuropean high yield bonds
  • $139BEuropean loans
  • $51BU.S. distressed high yield bonds
  • $928BAsset-backed securities

Diversification does not protect an investor from market risk and does not ensure a profit. Investing in non-core asset classes may carry increased risks as compared to core fixed income assets, including credit risk and liquidity risk.

Going beyond the core

Investors have traditionally relied on a mix of Treasuries, municipal bonds, corporate bonds and mortgage-backed securities to generate income. Low yields are driving many to seek income in harder-to-access assets beyond core fixed income.3

See the comparison

CURRENT YIELD AS OF DECEMBER 31, 2017

  • Traditional core3
  • Differentiated sources of income2
Bar chart comparing yield percentage between Government, Corporate and Asset-backed securities. 0% 1% 2% 3% 4% 5% 6% GOVERNMENT CORPORATE ASSET-BACKED SECURITIES U.S. Treasuries Municipal bonds Emerging market government debt U.S. corporate bonds U.S. loans Emerging market corporate debt U.S. high yield bonds Mortgage- backed securities Structured products 2.5% 2.5% 3.5% 2.9% 4.8% 5.2% 5.7% 5.9% 3.9%

Past performance is not a guarantee of future results. The benchmarks are shown for illustrative purposes only. An investment cannot be made directly in an index.

FS Credit Income Fund's actual investments and performance may differ substantially from those of the indices presented. Differentiated sources of income refers to income generated by non-core fixed income investments (including, but not limited to, emerging market government debt, high yield bonds, emerging markets corporate debt and structured products). The yields of these investments may be higher than those of core fixed income investments (including, but not limited to, U.S. Treasuries, investment grade corporate bonds and U.S. municipal bonds). Investing in non-core assets may carry a variety of risks, including credit risk and liquidity risk.

U.S. Treasuries are represented by the Bank of America Merrill Lynch U.S. Treasury Index. Municipal bonds are represented by the Bank of America Merrill Lynch U.S. Municipal Securities Index. Municipal bonds may be subject to interest rate risk. Emerging market government debt is represented by the JPMorgan EMBI Global Index. Emerging market government debt may be subject to higher degree of currency, default and political risk. U.S. corporate bonds are represented by the Bank of America Merrill Lynch U.S. Corporate Index. U.S. corporate bonds may be subject to default and interest rate risk. U.S. loans are represented by the S&P/LSTA Leveraged Loan Index. U.S. loans may be subject to default risk. Emerging Market corporate debt is represented by the JPMorgan CEMBI Broad Index. Emerging Market corporate debt may be subject to higher degree of currency, default and political risk. U.S. high yield bonds are represented by the ICE Bank of America Merrill Lynch U.S. High Yield Index. U.S. high yield bonds may be subject to higher degree of default risk compared to investment grade bonds. Mortgage-backed securities are represented by the Bank of America Merrill Lynch U.S. ABS and CMBS Index. Mortgage-backed securities may be subject to default risk. Structured products are represented by the JPM CLOIE Index and Clarity Solutions Group, LLC. Structured products may be subject to higher degree of default and liquidity risk.

FS Credit Income Fund broadly invests across global credit markets and seeks to generate attractive total returns, including current income and capital appreciation.

Focusing on select assets

FS Credit Income Fund is a non-diversified, closed-end multi-sector alternative income fund solution within an interval fund structure. Its flexible strategy is designed to provide diversification and differentiated sources of income by investing in harder-to-access credit market assets.3,4

60%

To pursue potentially higher returns, the fund invests in high yield bonds – rated lower than investment grade corporate bonds.

21%

The fund allows investors to easily access derivatives through structured products, where returns are based upon correctly anticipating the movement of an asset’s price.

16%

Rather than investing in equity, or in a company’s stock, the fund invests in debt, mostly in the form of business loans.

3%

The fund invests in corporate and government debt in developing economies to pursue attractive yields.

As of 9/30/2018

Percentages are rounded to the nearest full point; therefore, they may not add to 100%. Holdings and allocations are subject to change.

Managers with extensive credit experience

Together, FS Investments and GoldenTree bring extensive experience in credit investing and designing and managing institutional-quality funds for the broader investing public.

Read more about our partnership with GoldenTree

GoldenTree Asset Management is an employee-owned asset management firm that specializes in opportunities across the credit universe.

Managing risk sensibly

With all investments comes risk. FS Credit Income Fund is designed to navigate three key risks of fixed income investing – interest rate risk, credit risk and liquidity risk. We explain our plan for managing each one below.