06/28/2022 | Press release | Distributed by Public on 06/28/2022 15:05
THE ADVISORS' INNER CIRCLE FUND III
FS Multi-Strategy Alternatives Fund
FS Chiron Real Asset Fund
FS Managed Futures Fund
(each, a "Fund" and together, the "Funds")
Supplement dated June 28, 2022
to the Funds'
Prospectus (the "Prospectus") dated April 12, 2022, as supplemented.
This supplement provides new and additional information beyond that contained in the Prospectus, and should be read in conjunction with the Prospectus.
I. Effective immediately, the Prospectus is hereby amended and supplemented as follows in connection with the FS Multi-Strategy Alternatives Fund's and the FS Managed Futures Fund's investments in money market funds:
1. | In the "FS Multi-Strategy Alternatives Fund - Fund Fees and Expenses" section of the Prospectus, the "Annual Fund Operating Expenses" table and the "Example" are deleted and replaced with the following: |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Class I | Class A | ||||
Management Fees | 1.25% | 1.25% | |||
Distribution and Service (12b-1) Fees | 0.00% | 0.25% | |||
Total Other Expenses | 1.13% | 1.12% | |||
Other Expenses Not Including Dividend or Interest on Expense on Securities Sold Short1,2 | 0.91% | 0.90% | |||
Dividend and Interest Expense on Securities Sold Short | 0.22% | 0.22% | |||
Acquired Fund Fees and Expenses1 | 0.07% | 0.07% | |||
Total Annual Fund Operating Expenses | 2.45% | 2.69% | |||
Less Fee Reductions and/or Expense Reimbursements3 | (0.66)% | (0.66)% | |||
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements4 | 1.79% | 2.03% |
1 | Restated to reflect expenses expected to be incurred for the current fiscal year. |
2 | The costs of investing in swaps are estimated to be between approximately 0.20% to 0.50% of the Fund's average daily net assets. Such costs are indirect expenses of the Fund that are variable in nature and are not included in the fee table or expense example. |
3 |
FS Fund Advisor, LLC (the "Adviser" or "FS") has entered into a contractual agreement (the "Expense Limitation Agreement") pursuant to which it has agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding management fees, distribution or servicing fees, interest, taxes, brokerage fees and commissions and other costs and expenses relating to the securities that are purchased and sold by the Fund, dividends and interest paid on short positions, acquired fund fees and expenses, fees and expenses incurred in connection with tax reclaim recovery services, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses (as determined in the sole discretion of the Adviser) (collectively, "excluded expenses")) from exceeding 0.25% of the average daily net assets of each of the Fund's share classes until April 11, 2024(the "expense cap"). |
4 | Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements, excluding Dividend and Interest Expenses on Securities Sold Short, are 1.57% for Class I shares and 1.81% for Class A shares. |
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses (including one year of capped expenses) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year | 3 Years | 5 Years | 10 Years | |
Class I | $182 | $645 | $1,193 | $2,692 |
Class A | $769 | $1,251 | $1,814 | $3,337 |
2. | In the "FS Managed Futures Fund - Fund Fees and Expenses" section of the Prospectus, the "Annual Fund Operating Expenses" table and the "Example" are deleted and replaced with the following: |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Class I | Class A | |
Management Fees | 1.15% | 1.15% |
Distribution and Service (12b-1) Fees | 0.00% | 0.25% |
Other Expenses1,2 | 7.27% | 7.27% |
Acquired Fund Fees and Expenses1 | 0.12% | 0.12% |
Total Annual Fund Operating Expenses | 8.54% | 8.79% |
Less Fee Reductions and/or Expense Reimbursements3 | (7.02)% | (7.02)% |
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements | 1.52% | 1.77% |
1 | Restated to reflect expenses expected to be incurred for the current fiscal year. |
2
2 | The costs of investing in swaps are estimated to be between approximately 0.20% to 0.50% of the Fund's average daily net assets. Such costs are indirect expenses of the Fund that are variable in nature and are not included in the fee table or expense example. |
3 |
FS Fund Advisor, LLC (the "Adviser" or "FS") has entered into a contractual agreement (the "Expense Limitation Agreement") pursuant to which it has agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding management fees, distribution or servicing fees, interest, taxes, brokerage fees and commissions and other costs and expenses relating to the securities that are purchased and sold by the Fund, dividends and interest paid on short positions, acquired fund fees and expenses, fees and expenses incurred in connection with tax reclaim recovery services, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses (as determined in the sole discretion of the Adviser) (collectively, "excluded expenses")) from exceeding 0.25% of the average daily net assets of each of the Fund's share classes until April 11, 2024(the "expense cap"). |
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses (including one year of capped expenses) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year | 3 Years | 5 Years | 10 Years | |
Class I | $155 | $1,324 | $3,007 | $6,721 |
Class A | $745 | $1,890 | $3,506 | $7,041 |
II. Effective immediately, the Prospectus is hereby amended and supplemented as follows:
1. The following disclosure is hereby added to the "FS Chiron Real Asset Fund - Principal Risks" section:
Shareholder Concentration Risk - A large percentage of the Fund's shares are held by a small number of shareholders, including persons and entities related to the Adviser. A large redemption by one or more of these shareholders could materially increase the Fund's transaction costs, which would negatively impact the Fund's performance and could cause adverse tax consequences for the remaining shareholders of the Fund.
2. The following disclosure is hereby added to the "More Information about Principal Risks" section of the Prospectus:
Shareholder Concentration Risk (FS Chiron Real Asset Fund) - A large percentage of the Fund's shares are held by a small number of shareholders, including persons and entities related to the Adviser. A large redemption by one or more of these shareholders could materially increase the Fund's transaction costs, which would negatively impact the Fund's performance and could cause adverse tax consequences for the remaining shareholders of the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
CHI-SK-020-0100
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