FS Credit Income Fund

FS Credit Income Fund takes an active approach to investing beyond core fixed income

See how the fund has performed against its goals

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Giving your fixed income portfolio enough thought?

See how our fund seeks to take you beyond the core in order to provide:

  • Access: Expand an investor’s opportunity set
  • Income: Seek to generate an attractive level of current income
  • Diversification: Complement a traditional fixed income portfolio

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

There is a $6.5T investment opportunity beyond core fixed income, including bondsBonds are issued by companies that typically carry a credit rating below investment grade., loansLoans are issued by companies to finance their operations, support growth or refinance existing debt., 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. and emerging market debtEmerging market debt includes investing in the debt of developing countries and the corporations within them.. Adding these to your fixed income portfolio may help provide differentiated sources of income and diversification as well as help manage the impact of changing interest rates.2

  • $1,715BEmerging market government debt
  • $945BEmerging market corporate debt
  • $1,113BU.S. high yield bonds
  • $1,151BU.S. loans
  • $272BEuropean high yield bonds
  • $316BEuropean loans
  • $48BU.S. distressed high yield bonds
  • $937BAsset-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 and corporate bonds to generate income. Less-liquid, harder-to-access areas of the credit market may provide an income premium over traditional fixed income investments.3

See the comparison

CURRENT YIELD AS OF SEPTEMBER 30, 2019

  • Traditional core3
  • Differentiated sources of income2
Bar chart comparing yield percentage between Government, Corporate and Asset-backed securities. 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 1.7% 2.9% 3.0% 2.4% 5.2% 6.6% 5.0% 6.4% 4.2%

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 indexes 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 market 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 ICE BofAML U.S. Treasury Index. Municipal bonds are represented by the ICE BofAML U.S. Municipal Securities Index. Municipal bonds may be subject to interest rate risk. Emerging market government debt is represented by the J.P. Morgan EMBI Global Index. Emerging market government debt may be subject to a higher degree of currency, default and political risk. U.S. corporate bonds are represented by the ICE BofAML 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 J.P. Morgan 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 BofAML 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 ICE BofAML U.S. ABS and CMBS Index. Mortgage-backed securities may be subject to default risk. Structured products are represented by the J.P. Morgan 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 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

57%

Bonds are issued by companies that typically carry a credit rating below investment grade.

13%

Loans are issued by companies to finance their operations, support growth or refinance existing debt.

28%

Structured 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.

1%

Emerging market debt includes investing in the debt of developing countries and the corporations within them.

As of 9/30/2019

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 Asset Management bring over 30 years of experience designing and managing institutional-quality credit funds for institutions and 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.