Managing volatility with absolute returns

Managing volatility with absolute returns

FS Multi-Strategy Alternatives Fund (FSMSX) is designed to weather the volatility and provide absolute returns across a full market cycle. 

FS Multi-Strategy Alternatives Fund seeks to deliver:

  • Preservation through falling markets
  • Participation and complementary growth in rising markets
  • Performance when markets lack direction

Recent performance

Since fund inception, investors experienced outsized equity growth with low volatility up until the fourth quarter of 2018. Since that time, and as we face today’s market uncertainty, FS Multi-Strategy Alternatives Fund has continued to preserve value during market corrections and participate in recovery – all with lower volatility than the S&P 500.

GROWTH OF $100,000 (10/1/20186/30/2020)

Past performance is not indicative of future results. The benchmarks shown are 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 index presented.

All portfolio data is as of June 30, 2020. The expense ratios for Class I Shares are 3.30% total annual fund operating expenses,1 1.97% total annual fund operating expenses (after expense reductions)2 and 1.50% total annual fund operating expenses after expense reductions, excluding dividend and interest expenses.2,3 Data reflects period from October 1, 2018 to June 30, 2020. Based on Class I Shares of the fund.

Performance from October 1, 2018–June 30, 2020

FSMSXS&P 500
Growth of $100,000$101,998$110,207
Annualized returns1.14%5.96%
Volatility4.11%20.77%
Beta to S&P 5000.11

Past performance is not indicative of future results. The benchmarks shown are 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 index presented.


Case study on absolute returns

The return to volatility in the fourth quarter of 2018 provided a great test environment for a liquid alternative. The one-year period that followed the return of volatility, from October 1, 2018 through September 30, 2019 provides a great case study for how FS Multi-Strategy is designed to preserve, participate and perform over a complete market cycle.

GROWTH OF $100,000 FROM OCTOBER 1, 2018–SEPTEMBER 30, 2019

Past performance is not indicative of future results. The benchmarks shown are 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 index presented.

All portfolio data is as of September 30, 2019. The expense ratios for Class I Shares are 3.52% total annual fund operating expenses,1 1.86% total annual fund operating expenses (after expense reductions)2 and 1.50% total annual fund operating expenses after expense reductions, excluding dividend and interest expenses.2,3 Data reflects period from October 1, 2018 to September 30, 2019. Based on Class I Shares of the fund.

Performance from October 1, 2018–September 30, 2019

FSMSXS&P 500
Growth of $100,000$108,440$104,254
Annualized returns8.44%4.25%
Volatility3.89%16.62%
Beta to S&P 5000.11

Past performance is not indicative of future results. The benchmarks shown are 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 index presented.


Learn more

Read about FS Multi-Strategy Alternatives Fund performance and how it delivers on absolute returns.

Performance data quoted represents past performance and is no guarantee of future results. All portfolio data is as of September 30, 2019 or June 30, 2020, as noted above. The expense ratios for Class I shares are 3.30% total annual fund operating expenses,1 1.97% total annual fund operating expenses (after expense reductions)2 and 1.50% total annual fund operating expenses after expense reductions, excluding dividend and interest expenses.2,3 Based on Class I shares of the fund. 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. Please call 877-628-8575 or visit our website at www.fsinvestments.com for performance data current to the most recent month end.

  • The total annual fund operating expenses ratio calculation is a percentage of average net assets for the year ended December 31, 2019.

  • The total annual fund operating expenses after expense reductions, excluding dividend and interest expenses and total operating expenses (after expense reduction) ratios, are a percentage of average net assets for the year ended December 31, 2019 and are based on the expense limitation for such period. The expense limitation may be different in future years. The 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 ordinary 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 at least until April 30, 2021. 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/reimbursement or recoupment.

  • The total annual fund operating expenses after expense reductions, excluding dividend and interest expenses ratio, does not include dividend expense on short sales of 0.19% and interest, commitment fees and other borrowing costs of 0.28%.

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