FS Credit Income Fund, an alternative credit strategy sponsored by FS Investments and sub-advised by GoldenTree Asset Management, announced an increase to the monthly distribution amount for all share classes.
FS Credit Income Fund says the increase will be effective with the payment of the monthly distribution around August 31, 2023.
The annualized distribution rate for Class I shares will increase to 8.15% based on the NAV per Class I share as of July 31, 2023, representing an approximate 10.45% increase to the distribution rate for Class I shares.
This is the fund’s second distribution rate increase of 2023, and the total increase year-to-date is approximately 29%. The fund changed its distribution schedule from quarterly to monthly, effective with the July distribution.
“FS Credit Income Fund’s strong performance since inception highlights the benefits of the Fund’s dynamic strategy investing across public and private markets,” said Michael Forman, chairman and chief executive officer of FS Investments. “Since our founding, FS Investments has strived to deliver innovative alternative solutions to address the challenges in building diversified portfolios. We are pleased to deliver enhanced income to our shareholders and access to areas of the credit market that are typically outside the reach of many traditional credit funds.”
The annualized distribution rate for Class A shares will increase to 7.92% as of July 31, 2023, representing an approximate 10.82% increase.
The annualized distribution rate for Class T shares will increase to 7.66% as of July 31, 2023, representing an approximate 11.21% increase.
The annualized distribution rate for Class U shares will increase to 7.43% as of July 31, 2023, representing an approximate 11.63% increase.
The annualized distribution rate for Class U-2 shares will increase to 7.37% as of July 31, 2023, representing an approximate 11.64% increase.
FS Credit Income Fund invests across a broad universe of high-yielding asset classes, sectors and capital structures to capture the best relative value opportunities in event-driven and opportunistic credit to seek to generate an attractive level of income and capital appreciation.
[Editor’s note: the above article has been updated as of August 16, 2023.]