FS Investments, a leading alternative asset manager and sponsor of non-traded direct investment programs, has launched its first open-end mutual fund, FS Multi-Strategy Alternatives Fund (Tickers: FSMSX (Class I), FSMMX (Class A)).
The fund plans to allocate its assets across a spectrum of alternative investment strategies. The fund’s portfolio may include equity securities, fixed income and floating rate securities, mortgage-backed and other mortgage-related securities, as well as currencies.
“FS Investments always looks for differentiated ways to help investors access alternative sources of returns,” said Michael Forman, chairman and chief executive officer of FS Investments. “FS Multi-Strategy Alternatives Fund was created to provide exposure to an investment approach employed by some of the most successful institutional investors. We are excited to bring this solution to the broader investing public and do so in a daily liquid, transparent fund.”
FS Fund Advisor LLC serves as the fund’s investment adviser, while Wilshire Associates Incorporated will serve as the primary sub-adviser. Wilshire is a diversified global financial services firm that provides institutional investors with portfolios, analytics, research and investment consulting. The firm has more than $1 trillion in advisory assets under management.
The fund will offer two share classes, Class A and Class I shares. Class A shares can generally be purchased through financial intermediaries and retirement platforms, while Class I shares may be purchased directly from the fund by certain institutional investors.
The public offering price is the per share NAV determined after a request for purchase is received in good order by the fund or its agents, plus any applicable initial sales charge for Class A shares.
Class A shares have a maximum sales load of 5.75 percent, a 1.25 percent annual management fee and a 0.25 percent distribution fee. The minimum initial investment for Class A shares is $2,500.
Class I shares have no sales load, but include a 1.25 percent annual management fee. Class I shares have a $1 million minimum investment.
The adviser has agreed to waive its management fee until gross proceeds exceed $150 million or one year from the effective date of the fund’s registration statement, whichever is earlier. The fund was declared effective by the SEC on April 27, 2017.
The adviser has also agreed to waive or reduce its fees and to assume other expenses of the fund, if necessary, in an amount that limits certain operating expenses to no more than 0.25 percent of the average daily net assets, for at least one year from the effective date.
Basso Capital and MidOcean Credit Partners are the underlying managers and sub-advisers for the fund, and ALPS Distributors serves as the distributor.
FS Investments is headquartered in Philadelphia, PA with offices in Orlando, FL and Washington, DC. The firm had more than $20 billion in assets under management as of June 30, 2017.