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FS Chiron Real Development Fund

mutual fund
FARLX
Payout Change
Pending
Price as of:
$13.43 +0.04 +0.3%
primary theme
N/A
share class
FARLX (Mutual Fund)

FS Chiron Real Development Fund

Payout Change
Pending
Price as of:
$13.43 +0.04 +0.3%
primary theme
N/A
share class
FARLX (Mutual Fund)

FS Chiron Real Development Fund

Payout Change
Pending
Price as of:
$13.43 +0.04 +0.3%
primary theme
N/A
share class

Name

As of 12/03/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$13.43

$55.3 M

1.03%

$0.14

1.67%

Vitals

YTD Return

19.3%

1 yr return

23.7%

3 Yr Avg Return

5.1%

5 Yr Avg Return

8.0%

Net Assets

$55.3 M

Holdings in Top 10

53.6%

52 WEEK LOW AND HIGH

$13.4
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 1.67%

SALES FEES

Front Load 5.75%

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A


Min Investment

Standard (Taxable)

$2,500

IRA

N/A


Fund Classification

Fund Type

Open End Mutual Fund


Name

As of 12/03/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$13.43

$55.3 M

1.03%

$0.14

1.67%

FARLX - Profile

Distributions

  • YTD Total Return 19.3%
  • 3 Yr Annualized Total Return 5.1%
  • 5 Yr Annualized Total Return 8.0%
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio -0.11%
DIVIDENDS
  • Dividend Yield 1.0%
  • Dividend Distribution Frequency Annual

Fund Details

  • Legal Name
    FS Chiron Real Development Fund
  • Fund Family Name
    FS Investments
  • Inception Date
    Dec 31, 2018
  • Shares Outstanding
    2499
  • Share Class
    A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Scott Burr

Fund Description

The Fund seeks to achieve its objective by investing in (a) traditional and “next generation” real assets, (b) securities of traditional and next generation real asset companies, and (c) instruments with economic characteristics similar to the foregoing.

Real assets are defined broadly by the Fund. Traditional real assets include goods with physical properties, such as energy and natural resources, real estate, basic materials, equipment, utilities, infrastructure, automobiles, consumer durables and staples, health care equipment and facilities, life science tools and products and office and lab space, technology hardware and equipment (including semiconductors), telecommunication networks and towers, data centers, commodities and inflation-indexed securities that can generate returns in inflationary environments. Traditional real asset companies commit significant resources, as determined by FS and

Chiron Investment Management, LLC, a co-adviser to the Fund, (“Chiron” and together with FS with respect to the FS Chiron Real Development Fund only, the “Adviser”), to “developing” (which includes operating, extracting, transporting, producing, managing logistics for and manufacturing), maintaining or owning traditional real assets.

“Next generation” real asset companies and assets are generally tied to accelerating adoption of technology by businesses and consumers, an aging population driving changes in health care and consumer trends, a global transition to clean energy and resource scarcity as nations and companies seek to redraw supply chains and strengthen their physical and digital security. These companies are often in sectors and subsectors that fall outside of the traditional definition of real assets discussed above. Next generation real asset companies commit significant resources, as determined by the Adviser, to developing, maintaining or financing next generation real assets and the world’s digital infrastructure and social infrastructure and may include digital assets, such as Bitcoin. The Adviser considers digital infrastructure to be physical and virtual infrastructure based on technologies, including Bitcoin-related investments (defined below), artificial intelligence, cloud computing, digital network infrastructure, network hardware, semi-conductors, semi-conductor capital equipment and data analytics. The Adviser considers social infrastructure to be areas of the economy helping to improve quality of life for individuals across the globe, such as health care, life sciences, access to 5G mobile networks, clean energy, and electric vehicles. Next generation real asset companies also finance traditional real assets companies.

The Fund’s assets will typically be invested in equities, debt, commodities and cash or cash equivalents; the Fund’s goal is to hold a portfolio of securities and other investments that, over time, seek to provide protection against the impact of inflation. In selecting investments, the Adviser seeks investments in markets across the globe that are expected to outperform the overall market during periods of high or rising inflation.

The Fund utilizes a “quantamental” approach, which combines quantitative and fundamental research. The quantitative process identifies opportunities for growth with the fundamental approach identifying changes not captured by the quantitative research, such as regulatory environment and industry dynamics. As markets are not static and go through various stages, the Fund seeks to identify the current stage in each market in which it invests and

makes investment decisions accordingly, in order to capitalize on the underlying factors driving that particular market stage. The Fund aims to reduce volatility and risk through diversifying its investment choices across a range of industries.

Companies involved in activities related to real assets may produce cash flows and subsequent valuations that increase when the overall price level in the economy is rising. The Fund may also seek companies whose revenue and earnings are expected to rise if the prices of certain real assets rise during a period of general inflation.

Equity securities in which the Fund may invest include common stock issued by companies of any market capitalization (including initial public offerings (“IPOs”)), American Depositary Receipts (“ADRs”), ETFs and securities of real estate investment trusts (“REITs”).

The Fund will not invest in Bitcoin directly. Instead, the Fund may gain indirect exposure to Bitcoin by investing up to 15% of its net assets in Bitcoin futures contracts or exchange-traded funds (“ETFs”) that provide exposure to Bitcoin. For purposes of this 15% limit, these investments are measured at notional value. The Bitcoin futures in which the Fund may invest are exchange-traded and cash settled. The Fund may make such investments either directly or indirectly through a Subsidiary (as defined below). Bitcoins are a digital commodity that are not issued by a government, bank or central organization. Bitcoins exist on an online, peer-to-peer computer network (the “Bitcoin Network”) that hosts a public transaction ledger where Bitcoin transfers are recorded (the “Blockchain”). Bitcoins have no physical presence beyond the record of transactions on the Blockchain. The Fund also may invest in other “Bitcoin-related investments” such as Bitcoin trading platforms, miners, custodians, digital wallet providers, companies that facilitate payments in bitcoin, and companies that provide other technology, equipment or services to companies operating in the bitcoin ecosystem.

Other than with respect to the limitation on investments in Bitcoin futures contracts and ETFs that provide exposure to Bitcoin, there is no limit on the amount of the Fund’s exposures to any one or more specific sectors, and the Fund may at times have significant exposure to a single sector of the economy comprised of real assets (up to 100% of the Fund’s non-cash related exposure). The Fund may invest without limit in investments tied to any one or more foreign countries, including emerging market countries, and investments denominated in foreign currencies. The Fund may invest in A-Shares of companies based in the People’s Republic of China (“PRC”) that

trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the Shanghai – Hong Kong and Shenzhen – Hong Kong Stock Connect programs (“Stock Connect”). Stock Connect is a mutual stock market access program designed to, among other things, enable foreign investments in the PRC.

The Adviser may allocate a portion of the assets of the Fund among one or more alternative beta providers (“Alternative Beta Providers”) that offer the Fund exposure to the returns of particular investment strategies (“Alternative Beta Strategies”). An Alternative Beta Provider is a financial institution that serves as a counterparty to the Fund in a total return swap that offers exposure to the returns of a specified underlying asset. In a typical total return swap transaction with an Alternative Beta Provider, the Fund agrees to pay a fixed or variable interest rate to the Alternative Beta Provider in exchange for return earned on a specified underlying asset. Alternative Beta Providers are swap counterparties, not sub-advisers. Alternative Beta Providers in particular may offer cost advantages over traditional alternative asset managers. The strategies employed by the use of Alternative Beta Providers are referred to in this prospectus as “Alternative Investment Strategies.” In general, Alternative Beta Strategies seek to identify and capitalize upon market inefficiencies and market behavioral biases (or risk premia). Alternative Beta Strategies typically have less correlation to traditional equity and fixed income markets than traditional investment strategies. In this regard, when the performance of traditional markets improves, Alternative Beta Strategies my decline or improve to a greater or lesser degree. Conversely, when traditional markets decline, Alternative Beta Strategies my improve or decline to a greater or lesser degree.

The Fund generally seeks to obtain exposure to Alternative Investment Strategies in a cost-efficient manner, particularly as compared to private investment vehicles that have historically been used to access alternative investment strategies. Alternative Beta Strategies may include historical trend (seeking to benefit from the historical tendency of securities with certain characteristics to outperform others), carry and curve (investing in assets with high carry and selling assets with low carry), low beta (seeking to capture outperformance of assets with low beta over those with high beta), value (investing in undervalued and selling overvalued assets) and volatility premium (monetizing the concept that implied volatility tends to be higher than realized volatility) and momentum strategies (which emphasize investing in securities that have better recent

performance compared to other securities). The Adviser may also manage all or a portion of the Fund’s assets directly. The Adviser and Alternative Beta Providers may use investment programs that are fundamentally dependent on proprietary or licensed technology through such manager’s use of, among other things, certain hardware, software, model-based strategies, data gathering systems, order execution, and trade allocation systems, and/or risk management systems.

The Fund may invest directly in debt instruments. Fixed income investments in which the Fund may invest consist of (i) securities or other income-producing instruments issued or guaranteed by the U.S. Government, its agencies, instrumentalities or sponsored corporations (including inflation-protected securities); (ii) short-term investments, such as commercial paper, repurchase agreements and money market funds; and (iii) various types of loans, consisting of collateral loan obligations and bank loans, including those that are part of highly leveraged transactions where the borrower already has a high level of debt and/or a poor credit rating.

Under normal circumstances, the Fund’s portfolio of fixed income investments is expected to include primarily fixed income and other income-producing instruments rated investment grade and unrated securities considered by the Adviser to be of comparable credit quality. The Fund may, however, invest in fixed income and other income producing instruments rated below investment grade (known as “junk bonds”) and those that are unrated but determined by the Adviser to be of comparable credit quality.

The Fund may invest in privately placed and other securities or instruments exempt from Securities and Exchange Commission (“SEC”) registration (collectively, “private placements”). The Fund may engage in short sales, either to earn additional return or to hedge existing investments.

The Fund may enter into derivatives transactions of any kind for hedging purposes or otherwise to gain, or reduce, long or short exposure to one or more asset classes or issuers. A derivative is a financial contract whose value depends on changes in the value of one or more underlying assets, reference rates, or indexes. These instruments include, among others, options, futures contracts, forward currency contracts, swap agreements and similar instruments. The Fund may use derivatives transactions with the purpose or effect of creating investment leverage. Although the Fund reserves the right to invest in derivatives of any kind, it

currently expects that it may use the following types of derivatives: futures contracts and options on futures contracts, in order to gain efficient long or short investment exposures as an alternative to cash investments or to hedge against portfolio exposures; interest rate swaps, to gain indirect long or short exposures to interest rates, issuers, or currencies, or to hedge against portfolio exposures; and total and excess return swaps and credit derivatives (such as credit default swaps), put and call options, and exchange-traded and structured notes, to take indirect long or short positions on indexes, commodities, securities, currencies, or other indicators of value. Any use of derivatives strategies entails the risks of investing directly in the securities or instruments underlying the derivatives strategies, as well as the risks of using derivatives generally, and in some cases the risks of leverage, described in this prospectus and in the Fund’s Statement of Additional Information.

The Fund may invest in a variety of instruments, such as total and excess return swaps (which are contracts in which one party agrees to make periodic payments to another party based on the change in market value of the assets of the underlying contract), exchange traded products, including ETFs, common or preferred stocks of subsidiaries of the Fund that invest directly or indirectly in commodities, and other investments intended to provide long or short exposure to one or more commodities.

The Fund expects that many of the instruments in which it will invest will involve leverage.

The Fund may make investments through one or more offshore, wholly-owned subsidiaries organized under the laws of the Cayman Islands (each, a “Subsidiary” and collectively, the “Subsidiaries”) and may invest up to 25% of its total assets in the Subsidiaries. Generally, each Subsidiary will invest primarily in commodity futures, forwards and swaps, but it may also invest in financial futures, option and swap contracts, fixed income securities, pooled investment vehicles, including those that are not registered pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), and other investments intended to serve as margin or collateral for the Subsidiary’s derivative positions. The Fund will invest in each Subsidiary in order to gain direct or indirect exposure to the commodities markets and/or indirect exposure to Bitcoin through investments in ETFs that provide exposure to Bitcoin and Bitcoin futures contracts within the limitations of the federal tax laws, rules and regulations that apply to registered investment companies. Unlike the Fund, each Subsidiary may invest without limitation in

commodity-linked derivative instruments, however, each Subsidiary will comply with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Fund’s transactions in derivatives. In addition, the Fund and each Subsidiary will be subject to the same fundamental investment restrictions on a consolidated basis and, to the extent applicable to the investment activities of each Subsidiary, each Subsidiary will follow the same compliance policies and procedures as the Fund. Additionally, the Subsidiary and the Fund in the aggregate will comply with the 15% Bitcoin limits described above. Unlike the Fund, each Subsidiary will not seek to qualify as a RIC under Subchapter M of the Code. The Fund is the sole shareholder of each Subsidiary and does not expect shares of a Subsidiary to be offered or sold to other investors. To the extent the Fund invests in instruments that provide exposure to the commodity markets and Bitcoin futures contracts and ETFs that provide exposure to Bitcoin directly, it will seek to restrict its income from instruments that do not generate qualifying income to a maximum of 10% of its gross income (when combined with its other investments that produce non-qualifying income) to comply with certain qualifying income tests necessary for the Fund to qualify as a RIC under Subchapter M of the Code.

The Adviser may engage in active and frequent trading of the Fund’s portfolio investments. To the extent that it does so, the Fund may incur greater transaction costs and may make greater distributions of income and gains, which will be taxable to shareholders who do not hold their shares through a tax-advantaged or tax-deferred account.

Any percentage limitation and requirement as to investments will apply only at the time of an investment to which the limitation or requirement is applicable and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of such investment. Accordingly, any later increase or decrease resulting from a change in values, net assets or other circumstances will not be considered in determining whether any investment complies with the Fund’s limitation or requirement, except as otherwise provided herein. Portfolio investments may be sold at any time. By way of example, sales may occur when the Fund’s portfolio manager determines to take advantage of what the portfolio manager considers to be a better investment opportunity, when the portfolio manager believes the portfolio investments no longer represent relatively attractive investment opportunities,

when the portfolio manager perceives deterioration in the credit fundamentals of the issuer, or when the individual security has reached the portfolio manager’s sell target.

Except with respect to the Bitcoin exposure described above, the Fund may access the strategies and instruments described above either through direct investments or Alternative Beta Providers. As described above, the Fund may gain exposure to Bitcoin indirectly through futures contracts and ETFs. Neither the Fund nor the Subsidiary will invest directly in Bitcoin.

Although a portion of the Fund’s assets may be invested in instruments the performance of which is based on an index, the Fund’s overall portfolio is not designed to replicate the performance of any index. The Fund’s performance will deviate, potentially significantly, from the performance of any index used by the Fund. The Fund retains the flexibility to allocate as little as none or as much as all of its capital to particular Alternative Beta Providers. The Fund is considered non-diversified, which means that the percentage of its assets that may be invested in the securities of a single issuer is not limited by the 1940 Act.

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FARLX - Performance

Return Ranking - Trailing

Period FARLX Return Category Return Low Category Return High Rank in Category (%)
YTD 19.3% -23.7% 16.4% 16.74%
1 Yr 23.7% -8.9% 48.3% 16.31%
3 Yr 5.1%* -2.2% 16.4% 12.92%
5 Yr 8.0%* -0.7% 13.4% N/A
10 Yr N/A* 0.9% 11.8% N/A

* Annualized

Return Ranking - Calendar

Period FARLX Return Category Return Low Category Return High Rank in Category (%)
2023 4.3% -40.8% 20.6% 10.20%
2022 -11.3% -21.0% 24.5% 46.70%
2021 13.7% -24.2% 27.8% 97.20%
2020 4.4% -23.1% 11.7% N/A
2019 2.6% -100.0% 20.6% N/A

Total Return Ranking - Trailing

Period FARLX Return Category Return Low Category Return High Rank in Category (%)
YTD 19.3% -23.7% 16.4% 16.52%
1 Yr 23.7% -12.8% 48.3% 35.81%
3 Yr 5.1%* -3.4% 16.4% 33.41%
5 Yr 8.0%* -1.1% 13.4% N/A
10 Yr N/A* 0.9% 11.8% N/A

* Annualized

Total Return Ranking - Calendar

Period FARLX Return Category Return Low Category Return High Rank in Category (%)
2023 5.5% -40.8% 20.6% 10.20%
2022 -10.9% -21.0% 24.5% 46.70%
2021 17.7% -24.2% 27.8% 97.20%
2020 7.7% -23.1% 11.7% N/A
2019 9.9% -2.9% 23.1% N/A

NAV & Total Return History


FARLX - Holdings

Concentration Analysis

FARLX Category Low Category High FARLX % Rank
Net Assets 55.3 M 1.12 M 110 B 93.30%
Number of Holdings 83 2 10961 72.03%
Net Assets in Top 10 41.8 M -31.7 M 22 B 87.89%
Weighting of Top 10 53.59% 10.8% 100.0% 32.15%

Top 10 Holdings

  1. GOLD 100 OZ FUTR DEC24 PHYSICAL COMMODITY FUTURE. 9.89%
  2. BROWN BROTHERS HARRIMAN SWEEP INTEREST 8.03%
  3. BROWN BROTHERS HARRIMAN SWEEP INTEREST 7.79%
  4. NVIDIA CORP COMMON STOCK 5.03%
  5. JPN YEN CURR FUT DEC24 CURRENCY FUTURE. 4.85%
  6. SILVER FUTURE DEC24 PHYSICAL COMMODITY FUTURE. 4.04%
  7. BARRICK GOLD CORP COMMON STOCK 3.62%
  8. AGNICO EAGLE MINES LTD COMMON STOCK 3.57%
  9. NEWMONT CORP COMMON STOCK 3.46%
  10. SERVICENOW INC COMMON STOCK 3.32%

Asset Allocation

Weighting Return Low Return High FARLX % Rank
Stocks
82.57% -45.72% 98.42% 51.98%
Other
19.74% -1.25% 197.12% 16.08%
Cash
17.27% -97.12% 185.58% 16.28%
Preferred Stocks
0.00% -0.03% 14.00% 83.09%
Convertible Bonds
0.00% 0.00% 25.49% 88.31%
Bonds
0.00% -39.76% 93.84% 74.11%

Stock Sector Breakdown

Weighting Return Low Return High FARLX % Rank
Basic Materials
17.71% 0.00% 60.23% 4.46%
Energy
15.01% 0.00% 38.61% 14.86%
Financial Services
13.59% 0.00% 30.34% 61.57%
Technology
11.29% 0.00% 39.48% 75.37%
Real Estate
10.88% 0.00% 90.14% 23.78%
Industrials
9.35% 0.09% 32.39% 69.85%
Consumer Cyclical
8.14% 0.00% 20.84% 51.59%
Consumer Defense
7.14% 0.00% 31.85% 33.55%
Communication Services
2.69% 0.00% 28.59% 82.38%
Healthcare
2.60% 0.00% 30.30% 85.56%
Utilities
1.61% 0.00% 40.29% 80.47%

Stock Geographic Breakdown

Weighting Return Low Return High FARLX % Rank
US
69.81% -4.82% 95.75% 48.23%
Non US
12.76% -46.69% 57.06% 49.90%

FARLX - Expenses

Operational Fees

FARLX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.67% 0.16% 2.71% 25.68%
Management Fee 0.95% 0.00% 1.70% 94.22%
12b-1 Fee 0.25% 0.00% 1.00% 37.05%
Administrative Fee N/A 0.01% 0.70% N/A

Sales Fees

FARLX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load 5.75% 0.00% 5.75% 17.24%
Deferred Load N/A 1.00% 5.50% N/A

Trading Fees

FARLX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 2.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

FARLX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A 0.00% 441.00% N/A

FARLX - Distributions

Dividend Yield Analysis

FARLX Category Low Category High FARLX % Rank
Dividend Yield 1.03% 0.00% 10.92% 10.19%

Dividend Distribution Analysis

FARLX Category Low Category High Category Mod
Dividend Distribution Frequency Annual Annually Monthly Monthly

Net Income Ratio Analysis

FARLX Category Low Category High FARLX % Rank
Net Income Ratio -0.11% -5.20% 6.33% 94.12%

Capital Gain Distribution Analysis

FARLX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

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FARLX - Fund Manager Analysis

Managers

Scott Burr


Start Date

Tenure

Tenure Rank

Dec 31, 2018

3.42

3.4%

Scott Burr serves as a Portfolio Manager in the Investment Management group at FS Investments, where he is responsible for sub-adviser oversight, portfolio research and management of the firm’s liquid alternative fund offerings. Previously, Mr. Burr was a Principal at Investcorp where he was head of factor due diligence for risk premia and alternative beta strategies, portfolio manager for funds and customized model portfolios, and trader.

Peter Bianco


Start Date

Tenure

Tenure Rank

Sep 01, 2021

0.75

0.8%

2021 – Present: Portfolio Manager, Chiron 2015 – Present: Head of Trading, Chiron 2011 – 2015: Head of Trading, Caxton Associates

Brian Cho


Start Date

Tenure

Tenure Rank

Sep 01, 2021

0.75

0.8%

Mr. Cho is a fundamental portfolio manager at Causeway. He joined the firm in September 2013 and has been a portfolio member since January 2021. His current responsibilities include coverage of companies in the technology and communication services sectors. From 2011 to 2013, Mr. Cho was a vice president at BofA-ML Equity Research, covering the IT hardware and supply chain sector. From 2007 to 2011, he worked as an associate at Goldman Sachs Equity Research covering the same sector. From 2006 to 2007, he worked as an analyst at Morgan Stanley Equity Research covering the internet and interactive software sector. Prior to that, he worked as an analyst at PA Consulting Group in the financial services practice. Mr. Cho earned a BSc in management science from Massachusetts Institute of Technology.

Ryan Caldwell


Start Date

Tenure

Tenure Rank

Mar 14, 2022

0.21

0.2%

Ryan Caldwell serves as partner ,CIO and lead portfolio manager since 2015 at Chiron. Mr. Caldwell joined WRIMCO in July 2000 as an economic analyst. In January 2003 he was appointed an investment analyst, and in June 2005 was named assistant portfolio manager for the Fund, as well as two other funds managed by WRIMCO or IICO. Mr. Caldwell is Senior Vice President of IICO and WRIMCO, Vice President of the Trust, and Vice President of and portfolio manager for other investment companies for which WRIMCO serves as investment manager.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.03 30.27 6.52 9.25