PURCHASED EUR / SOLD USD

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Industry	Number of Shares		Cost		Fair Value^(c)
Real Estate Funds—40.7%
Blackstone Property Partners, LP	Real Estate		2,894	$	3,972	$	4,053
Brookfield Premier Real Estate Partners	Real Estate		1,635		2,104		2,277
CBRE U.S. Core Partners, LP	Real Estate		1,508,990		2,116		2,247
Clarion Lion Properties Fund	Real Estate		2,743		4,080		4,325
JPMorgan U.S. Real Estate Core Mezzanine Debt Fund	Real Estate		12,094		1,223		1,253
RREEF Core Plus Industrial Fund	Real Estate		11,887		1,505		1,634
Total Real Estate Funds				$	15,000	$	15,789

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Senior Secured Loans—First Lien—9.3%
Academy, Ltd., L+400, 1.0% Floor, 7/1/22	(d) (e)	Retail	$	26	$	12	$	23
Accuride Corp., L+525, 1.0% Floor, 11/17/23	(e)	Auto Parts & Equipment		323		309		220
Advantage Sales & Marketing, Inc., L+325, 1.0% Floor, 7/23/21	(d) (e)	Advertising		154		136		147
AHP Health Partners, Inc., L+450, 1.0% Floor, 6/30/25	(d) (e)	Healthcare-Services		148		146		148
Algoma Steel, Inc., L+850, 1.5% Floor, 12/1/25	(d) (e)	Iron/Steel		68		68		52
Amneal Pharmaceuticals, LLC, L+350, 5/4/25	(d) (e)	Pharmaceuticals		30		28		28
Apergy Corp., L+500, 1.0% Floor, 6/3/27	(d) (e)	Oil & Gas		280		265		277
Belk, Inc., L+675, 1.0% Floor, 7/31/25	(e)	Retail		585		528		255
California Resources Corp., L+475, 12/31/22	(d) (e) (f) (g) (h)	Oil & Gas		209		194		81
Cornerstone OnDemand, Inc., L+425, 4/22/27	(d) (e)	Software		45		44		45
CSM Bakery Solutions LLC, L+625, 1.0% Floor, 1/4/22	(e)	Food		161		147		151
Dex Media, Inc., L+900, 1.0% Floor, 12/29/23	(d) (e) (f)	Software		211		206		198
Digicel International Finance Limited, L+325, 5/28/24	(d) (e)	Telecommunications		65		53		56
DynCorp International, Inc., L+600, 1.0% Floor, 8/18/25	(d) (e)	Commercial Services		67		65		65
EIF Van Hook Holdings, LLC, L+525, 9/5/24	(e)	Pipelines		378		373		242
Endo Luxembourg Finance Co. I S.a r.l., L+425, 0.8% Floor, 4/29/24	(d) (e)	Pharmaceuticals		69		64		67
Green Energy Partners/Stonewall LLC, L+550, 1.0% Floor, 11/12/21	(d) (e)	Electric		110		90		97
Hummel Station, LLC, L+375, 4/27/22	(d) (e)	Oil & Gas		56		50		52
Hummel Station, LLC, L+600, 1.0% Floor, 10/27/22	(d) (e)	Oil & Gas		5		4		4
Hummel Station, LLC, L+600, 1.0% Floor, 10/27/22	(d) (e)	Oil & Gas		12		11		11
Hummel Station, LLC, L+375, 4/27/22	(d) (e) (i)	Oil & Gas		5		4		4
Hummel Station, LLC, L+375, 4/27/22	(d) (e) (i)	Oil & Gas		4		3		3
Hummel Station, LLC, L+375, 4/27/22	(d) (e)	Oil & Gas		2		2		2
Illuminate Buyer, LLC, L+400, 6/30/27	(d) (e)	Chemicals		25		24		25
Jo-Ann Stores, Inc., L+500, 1.0% Floor, 10/20/23	(e)	Retail		36		35		27
Lightstone Holdco, LLC, L+375, 1.0% Floor, 1/30/24	(d) (e) (f)	Electric		266		220		227
Lightstone Holdco, LLC, L+375, 1.0% Floor, 1/30/24	(d) (e) (f)	Electric		15		12		13
Mileage Plus Holdings LLC, L+525, 1.0% Floor, 6/21/27	(d) (e)	Airlines		30		29		30
Montreign Resort Casino, L+225, 3/22/21	(d) (e)	Entertainment		40		38		37
Northwest Fiber, LLC, L+550, 4/30/27	(d) (e)	Internet		175		166		174
Patterson Medical Holdings, Inc., L+475, 1.0% Floor, 8/29/22	(d) (e)	Pharmaceuticals		71		70		65
Playtika Holding Corp., L+600, 1.0% Floor, 12/10/24	(d) (e)	Entertainment		63		62		64
Quorum Health Corp., L+825, 1.0% Floor, 4/29/25	(d) (e)	Healthcare-Services		49		47		46
Rent-A-Center, Inc., L+450, 8/5/26	(d) (e)	Commercial Services		69		69		68
Seadrill Partners Finco LLC, L+600, 1.0% Floor, 2/21/21	(d) (e)	Oil & Gas		172		164		26

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost			Fair Value^(c)
SGS Cayman, L.P., L+538, 1.0% Floor, 4/23/21	(e)	Commercial Services	$	82	$	81		$	70
Summer (BC) Lux Consolidator S.C.A., L+475, 12/4/26	(d) (e)	Advertising		7		6			7
Sutherland Global Services, Inc., L+538, 1.0% Floor, 4/23/21	(e)	Computers		352		347			302
Syncsort, Inc., L+625, 8/16/24	(d) (e)	Software		32		32			32
Tibco Software Inc., L+375, 6/30/26	(d) (e)	Software		13		13			13
TopGolf International, Inc., L+550, 2/8/26	(d) (e)	Leisure Time		79		78			75
UTEX Industries Inc., P+500, 5/22/21	(d) (e) (g) (h)	Miscellaneous Manufacturer		232		228			65
Verscend Holding Corp., L+450, 8/27/25	(d) (e)	Commercial Services		15		13			15
Total Senior Secured Loans—First Lien					$	4,536		$	3,609
Unfunded Loan Commitments						(7	)		(7	)
Net Total Senior Secured Loans—First Lien					$	4,529		$	3,602
Senior Secured Loans—Second Lien—0.4%
Comet Acquisition, Inc., L+750, 10/26/26	(e)	Healthcare-Services	$	44	$	43		$	39
Emerald Performance Materials, LLC, L+675, 1.0% Floor, 8/1/22	(e)	Chemicals		46		46			45
Metro-Goldwyn-Mayer Inc., L+450, 1.0% Floor, 7/3/26	(d) (e)	Media Entertainment		25		23			24
NeuStar, Inc., L+800, 1.0% Floor, 8/8/25	(d) (e)	Computers		20		19			16
UTEX Industries Inc., L+725, 1.0% Floor, 5/22/22	(d) (e) (g) (h)	Miscellaneous Manufacturer		170		169			22
Total Senior Secured Loans—Second Lien					$	300		$	146
Senior Secured Bonds—9.6%
1011778 BC ULC / New Red Finance Inc., 5.0%, 10/15/25	(d) (j) (k)	Retail	$	76	$	78		$	78
Altice France Holding SA, 8.0%, 5/15/27	(d)	Telecommunications	€	200		242			254
Altice France SA, 5.5%, 1/15/28	(d) (k)	Telecommunications	$	200		200			211
Altice France SA, 3.4%, 1/15/28	(d) (j)	Telecommunications	€	245		251			283
BCD Acquisition, Inc., 9.6%, 9/15/23	(d) (j) (k)	Auto Manufacturers	$	103		106			101
Builders FirstSource, Inc., 6.8%, 6/1/27	(d) (j) (k)	Building Materials		8		7			9
Burlington Coat Factory Warehouse Corp., 6.3%, 4/15/25	(d) (j) (k)	Retail		49		51			53
California Resources Corp., 8.0%, 12/15/22	(d) (g) (h) (j) (k)	Oil & Gas		215		9			4
California Resources Corp., 8.0%, 12/15/22	(d) (g) (h) (j)	Oil & Gas		4		—			—
Calpine Corp., 5.3%, 6/1/26	(d) (j) (k)	Electric		17		17			18
Carnival Corp., 10.5%, 2/1/26	(d) (k)	Leisure Time		57		57			59
Colt Merger Sub, Inc., 6.3%, 7/1/25	(d) (j) (k)	Entertainment		40		40			42
CSI Compressco LP/CSI Compressco Finance, Inc., 7.5%, 4/1/25	(d) (j) (k)	Oil & Gas Services		68		69			58
Dell International LLC/EMC Corp., 8.1%, 7/15/36	(d) (j) (k)	Computers		30		38			41
Dell International LLC/EMC Corp., 4.9%, 10/1/26	(d) (j) (k)	Computers		19		20			21
Dell International LLC/EMC Corp., 6.1%, 7/15/27	(d) (j) (k)	Computers		29		29			34
Denbury Resources, Inc., 7.8%, 2/15/24	(d) (g) (h) (k)	Oil & Gas		23		18			10
Denbury Resources, Inc., 9.3%, 3/31/22	(d) (g) (h) (k)	Oil & Gas		155		156			66
Digicel International Finance Ltd./Digicel Holdings Bermuda Ltd., 8.8%, 5/25/24	(d) (k)	Telecommunications		200		200			202
Endo Dac / Endo Finance LLC / Endo Finco, Inc., 9.5%, 7/31/27	(d) (j) (k)	Pharmaceuticals		39		40			42
Frontier Communications Corp., 8.0%, 4/1/27	(d) (g) (h) (j) (k)	Telecommunications		48		49			50

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Frontier Communications Corp., 8.5%, 4/1/26	(d) (g) (h) (j) (k)	Telecommunications	$	251	$	236	$	248
Gateway Casinos & Entertainment Ltd., 8.3%, 3/1/24	(d) (j) (k)	Entertainment		24		25		19
Hudbay Minerals, Inc., 7.6%, 1/15/25	(d) (j) (k)	Mining		75		76		76
JW Aluminum Continuous Cast Co., 10.3%, 6/1/26	(d) (j) (k)	Mining		91		92		95
L Brands, Inc., 6.9%, 7/1/25	(d) (j) (k)	Retail		68		68		73
L Brands, Inc., 6.9%, 11/1/35	(d) (j)	Retail		47		42		45
L Brands, Inc., 6.8%, 7/1/36	(d) (j)	Retail		60		50		58
Live Nation Entertainment, Inc., 6.5%, 5/15/27	(d) (j) (k)	Entertainment		121		123		130
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd., 6.5%, 6/20/27	(d) (j) (k)	Airlines		79		78		82
Navistar International Corp., 9.5%, 5/1/25	(d) (k)	Auto Manufacturers		35		35		40
Northern Oil and Gas, Inc., 8.5%, 5/15/23 (8.5% Cash + 1.0% PIK)	(d)	Oil & Gas		3		3		3
Pacific Drilling SA, 8.4%, 10/1/23	(d) (j) (k)	Oil & Gas		58		52		13
Par Pharmaceutical, Inc., 7.5%, 4/1/27	(d) (k)	Pharmaceuticals		88		78		94
Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co-Issuer, 7.5%, 6/1/25	(d) (j) (k)	Real Estate Investment Trusts		114		114		122
Prime Security Services Borrower LLC / Prime Finance, Inc., 6.3%, 1/15/28	(d) (j) (k)	Commercial Services		28		28		29
QVC, Inc., 4.4%, 3/15/23	(d) (j)	Retail		24		22		25
QVC, Inc., 4.5%, 2/15/25	(d) (j)	Retail		23		21		24
QVC, Inc., 4.8%, 2/15/27	(d) (j)	Retail		12		10		12
Royal Caribbean Cruises Ltd., 10.9%, 6/1/23	(d) (j) (k)	Leisure Time		26		26		28
Royal Caribbean Cruises Ltd., 11.5%, 6/1/25	(d) (j) (k)	Leisure Time		110		108		121
Solocal Group, 8.0%, 3/15/22 (3 mo. EURIBOR + 7.0%)	(d) (l)	Internet	€	174		196		141
Summer (BC) Holdco B S.a r.l., 5.8%, 10/31/26	(d)	Advertising		100		110		114
Talen Energy Supply LLC, 6.6%, 1/15/28	(d) (j) (k)	Electric	$	74		73		75
Talen Energy Supply LLC, 7.6%, 6/1/28	(d) (k)	Electric		14		14		15
Teekay Corp., 9.3%, 11/15/22	(d) (j) (k)	Transportation		92		92		90
Unique Pub Finance Co. Plc, 5.7%, 6/30/27	(d)	Real Estate	£	10		14		13
Urban One, Inc., 7.4%, 4/15/22	(d) (j) (k)	Media Entertainment	$	55		54		49
Vantage Drilling International, 9.3%, 11/15/23	(d) (j) (k)	Oil & Gas		186		183		121
Viking Cruises Ltd., 13.0%, 5/15/25	(d) (j) (k)	Leisure Time		67		65		73
Wyndham Destinations, Inc., 4.6%, 3/1/30	(d) (j) (k)	Lodging		51		51		47
Total Senior Secured Bonds					$	3,816	$	3,711
Unsecured Bonds—19.2%
Accor SA, 4.4% 1/30/24 (fixed, converts to FRN on 1/30/24)	(d) (j) (l) (m)	Lodging	$	100	$	102	$	113
AG Merger Sub II, Inc., 10.8%, 8/1/27	(d) (j) (k)	Diversified Financial Services		28		28		29
AHP Health Partners, Inc., 9.8%, 7/15/26	(d) (j) (k)	Healthcare-Services		78		73		83
Albertsons Companies, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 4.6%, 1/15/27	(d) (j) (k)	Food		29		27		31
ArcelorMittal SA, 7.3%, 10/15/39	(d) (j)	Iron/Steel		23		27		30
Aruba Investments, Inc., 8.8%, 2/15/23	(d) (j) (k)	Chemicals		152		153		157
Ball Corp., 4.0%, 11/15/23	(d) (j)	Packaging & Containers		15		16		16
Bausch Health Companies, Inc., 7.0%, 1/15/28	(d) (j) (k)	Pharmaceuticals		18		18		20
Bausch Health Companies, Inc., 5.0%, 1/30/28	(d) (j) (k)	Pharmaceuticals		45		45		45
Bausch Health Companies, Inc., 6.3%, 2/15/29	(d) (j) (k)	Pharmaceuticals		111		111		118
Bausch Health Companies, Inc., 7.3%, 5/30/29	(d) (j) (k)	Pharmaceuticals		33		37		36
Bausch Health Companies, Inc., 5.3%, 1/30/30	(d) (j) (k)	Pharmaceuticals		29		29		30
Boardwalk Pipelines LP, 4.5%, 7/15/27	(d) (j)	Pipelines		16		16		17

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Boardwalk Pipelines LP, 4.8%, 5/3/29	(d) (j)	Pipelines	$	20	$	21	$	22
Buckeye Partners LP, 4.2%, 7/1/23	(d) (j)	Pipelines		3		3		3
Buckeye Partners LP, 4.4%, 10/15/24	(d) (j)	Pipelines		11		10		11
Buckeye Partners LP, 4.1%, 3/1/25	(d) (j) (k)	Pipelines		10		9		10
Buckeye Partners LP, 4.0%, 12/1/26	(d) (j)	Pipelines		62		55		62
Buckeye Partners LP, 4.1%, 12/1/27	(d) (j)	Pipelines		8		7		8
Buckeye Partners LP, 4.5%, 3/1/28	(d) (j) (k)	Pipelines		9		8		9
California Resources Corp., 5.5%, 9/15/21	(d) (g) (h) (j)	Oil & Gas		18		1		1
California Resources Corp., 6.0%, 11/15/24	(d) (g) (h) (j)	Oil & Gas		6		—		—
CCO Holdings LLC / CCO Holdings Capital Corp., 5.5%, 5/1/26	(d) (j) (k)	Media Entertainment		51		53		54
CCO Holdings LLC/CCO Holdings Capital Corp., 5.4%, 6/1/29	(d) (j) (k)	Media Entertainment		145		154		159
CDK Global, Inc., 5.3%, 5/15/29	(d) (j) (k)	Software		12		12		13
Centene Corp., 5.4%, 6/1/26	(d) (j) (k)	Healthcare-Services		27		29		29
Central Garden & Pet Co., 5.1%, 2/1/28	(d) (j)	Household Products/Wares		44		44		47
Cheniere Energy Partners LP, 5.6%, 10/1/26	(d) (j)	Pipelines		103		102		109
Cheniere Energy Partners LP, 4.5%, 10/1/29	(d)	Pipelines		25		18		26
Colt Merger Sub, Inc., 8.1%, 7/1/27	(d) (j) (k)	Entertainment		48		48		49
EIG Investors Corp., 10.9%, 2/1/24	(d) (j)	Internet		27		27		28
Endeavor Energy Resources LP / EER Finance, Inc., 6.6%, 7/15/25	(d) (j) (k)	Oil & Gas		30		30		32
Endeavor Energy Resources LP / EER Finance, Inc., 5.5%, 1/30/26	(d) (j) (k)	Oil & Gas		86		84		87
Endeavor Energy Resources LP / EER Finance, Inc., 5.8%, 1/30/28	(d) (j) (k)	Oil & Gas		5		4		5
ESH Hospitality, Inc., 4.6%, 10/1/27	(d) (j) (k)	Real Estate Investment Trusts		42		40		40
Fidelity & Guaranty Life Holdings, Inc., 5.5%, 5/1/25	(d) (j) (k)	Insurance		36		40		40
Ford Motor Credit Co. LLC, 4.3%, 1/9/27	(d) (j)	Auto Manufacturers		200		177		204
Freeport-McMoRan, Inc., 4.1%, 3/1/28	(d) (j)	Mining		17		17		18
Freeport-McMoRan, Inc., 4.4%, 8/1/28	(d)	Mining		10		10		11
Freeport-McMoRan, Inc., 4.3%, 3/1/30	(d) (j)	Mining		14		14		15
Freeport-McMoRan, Inc., 4.6%, 8/1/30	(d)	Mining		10		10		11
Frontier Communications Corp., 10.5%, 9/15/22	(d) (g) (h) (j)	Telecommunications		278		164		98
Frontier North, Inc., 6.7%, 2/15/28	(d) (g) (h) (j)	Telecommunications		550		508		491
Genesis Energy LP / Genesis Energy Finance Corp., 6.5%, 10/1/25	(d) (j)	Pipelines		4		3		4
Genesis Energy LP / Genesis Energy Finance Corp., 6.3%, 5/15/26	(d) (j)	Pipelines		58		50		55
Genesis Energy LP / Genesis Energy Finance Corp., 7.8%, 2/1/28	(d) (j)	Pipelines		142		138		137
HCA, Inc., 5.6%, 9/1/28	(d) (j)	Healthcare-Services		35		39		42
HCA, Inc., 5.9%, 2/1/29	(d) (j)	Healthcare-Services		33		36		40
Herbalife Nutrition Ltd. / HLF Financing, Inc., 7.9%, 9/1/25	(d) (j) (k)	Pharmaceuticals		100		101		109
Hexion, Inc., 7.9%, 7/15/27	(d) (j) (k)	Chemicals		99		94		97
Hilton Domestic Operating Co., Inc., 5.4%, 5/1/25	(d) (j) (k)	Lodging		21		21		22
Hilton Domestic Operating Co., Inc., 5.8%, 5/1/28	(d) (j) (k)	Lodging		44		45		47
HLF Financing Sarl LLC/Herbalife International, Inc., 7.3%, 8/15/26	(d) (j) (k)	Pharmaceuticals		58		59		61
Hyatt Hotels Corp., 5.4%, 4/23/25	(d) (j)	Lodging		16		16		17
Hyatt Hotels Corp., 5.8%, 4/23/30	(d) (j)	Lodging		24		25		27

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Illuminate Buyer LLC / Illuminate Holdings IV, Inc., 9.0%, 7/1/28	(d) (j) (k)	Chemicals	$	104	$	104	$	112
JPMorgan Chase & Co., 5.0% 8/1/24 (fixed, converts to FRN on 8/01/24)	(d) (j) (l) (m)	Commercial Banks		45		37		45
JPMorgan Chase & Co., 4.6% 2/1/25 (fixed, converts to FRN on 2/01/25)	(d) (j) (l) (m)	Commercial Banks		27		24		26
Kraft Heinz Foods Co., 3.9%, 5/15/27	(d) (j) (k)	Food		31		31		33
Kraft Heinz Foods Co., 4.3%, 3/1/31	(d) (j) (k)	Food		35		35		39
Kraft Heinz Foods Co., 5.0%, 6/4/42	(d) (j)	Food		47		43		53
L Brands, Inc., 9.4%, 7/1/25	(d) (k)	Retail		31		31		35
L Brands, Inc., 6.7%, 1/15/27	(d) (j)	Retail		16		14		16
Liberty Interactive LLC, 4.0%, 11/15/29	(d) (j)	Media Entertainment		251		181		179
Marriott Ownership Resorts, Inc., 4.8%, 1/15/28	(d) (k)	Lodging		54		55		50
MEDNAX, Inc., 6.3%, 1/15/27	(d) (j) (k)	Healthcare-Services		59		61		62
Methanex Corp., 5.3%, 12/15/29	(d) (j)	Chemicals		218		208		211
MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc., 4.6%, 6/15/25	(d) (j) (k)	Real Estate Investment Trusts		8		8		8
MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc., 5.8%, 2/1/27	(d) (j)	Real Estate Investment Trusts		166		176		180
Michaels Stores, Inc., 8.0%, 7/15/27	(d) (j) (k)	Retail		61		59		57
Natural Resource Partners LP/NRP Finance Corp., 9.1%, 6/30/25	(d) (j) (k)	Coal		182		180		154
Navient Corp., 5.6%, 8/1/33	(d) (j)	Diversified Financial Services		81		67		69
Nine Energy Service, Inc., 8.8%, 11/1/23	(d) (j) (k)	Oil & Gas Services		33		33		15
Noble Energy, Inc., 5.1%, 11/15/44	(d) (j)	Oil & Gas		18		13		24
NOVA Chemicals Corp., 5.3%, 6/1/27	(d) (j) (k)	Chemicals		86		86		81
NuStar Logistics LP, 5.6%, 4/28/27	(d) (j)	Pipelines		15		14		15
Occidental Petroleum Corp., 2.7%, 2/15/23	(d) (j)	Oil & Gas		23		19		22
Occidental Petroleum Corp., 3.5%, 6/15/25	(d) (j)	Oil & Gas		30		22		28
Occidental Petroleum Corp., 3.4%, 4/15/26	(d) (j)	Oil & Gas		66		49		60
Occidental Petroleum Corp., 3.2%, 8/15/26	(d) (j)	Oil & Gas		27		19		25
Occidental Petroleum Corp., 3.0%, 2/15/27	(d) (j)	Oil & Gas		80		58		71
Occidental Petroleum Corp., 8.5%, 7/15/27	(d) (j)	Oil & Gas		29		29		32
Occidental Petroleum Corp., 3.5%, 8/15/29	(d) (j)	Oil & Gas		65		51		58
OneMain Finance Corp., 7.1%, 3/15/26	(d) (j)	Diversified Financial Services		39		41		46
OneMain Finance Corp., 6.6%, 1/15/28	(d) (j)	Diversified Financial Services		12		12		14
Parsley Energy LLC/Parsley Finance Corp., 5.4%, 1/15/25	(d) (j) (k)	Oil & Gas		14		13		14
Parsley Energy LLC/Parsley Finance Corp., 5.3%, 8/15/25	(d) (j) (k)	Oil & Gas		16		14		16
Parsley Energy LLC/Parsley Finance Corp., 5.6%, 10/15/27	(d) (j) (k)	Oil & Gas		72		60		76
Post Holdings, Inc., 5.5%, 12/15/29	(d) (j) (k)	Food		86		91		94
PTC, Inc., 4.0%, 2/15/28	(d) (j) (k)	Software		33		33		35
Puerto Rico Commonwealth Aqueduct & Sewer Auth., 6.2%, 7/1/38	(d) (j)	Municipal		5		4		5
Puerto Rico Electric Power Authority, 5.4%, 1/1/18	(d) (g) (h) (j)	Municipal		5		4		3
Puerto Rico Electric Power Authority, 0.0%, 7/1/18	(d) (g) (h) (n)	Municipal		5		3		3
Puerto Rico Electric Power Authority, 0.0%, 7/1/20	(d) (g) (h) (n)	Municipal		15		11		9
Puerto Rico Electric Power Authority, 10.0%, 1/1/21	(d) (g) (h)	Municipal		8		8		6
Puerto Rico Electric Power Authority, 10.0%, 7/1/21	(d) (g) (h)	Municipal		8		8		6
Puerto Rico Electric Power Authority, 5.5%, 7/1/21	(d) (g) (h) (j)	Municipal		5		4		3

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Puerto Rico Electric Power Authority, 10.0%, 1/1/22	(d) (g) (h)	Municipal	$	2	$	2	$	2
Puerto Rico Electric Power Authority, 10.0%, 7/1/22	(d) (g) (h)	Municipal		2		2		2
Puerto Rico Electric Power Authority, 5.0%, 7/1/25	(d) (g) (h) (j)	Municipal		5		4		3
Puerto Rico Electric Power Authority, 5.0%, 7/1/27	(d) (g) (h) (j)	Municipal		5		4		3
Puerto Rico Electric Power Authority, 5.3%, 7/1/27	(d) (g) (h)	Municipal		145		91		100
Puerto Rico Electric Power Authority, 5.0%, 7/1/28	(d) (g) (h) (j)	Municipal		5		4		3
Puerto Rico Electric Power Authority, 5.3%, 7/1/28	(d) (g) (h)	Municipal		5		3		3
Puerto Rico Electric Power Authority, 5.0%, 7/1/29	(d) (g) (h)	Municipal		130		81		89
Puerto Rico Electric Power Authority, 0.9%, 7/1/31 (3 mo. USD LIBOR + 0.7%)	(d) (g) (h) (l)	Municipal		15		11		9
Puerto Rico Electric Power Authority, 5.3%, 7/1/33	(d) (g) (h) (j)	Municipal		50		39		35
Puerto Rico Electric Power Authority, 6.8%, 7/1/36	(d) (g) (h) (j)	Municipal		15		12		11
Puerto Rico Electric Power Authority, 5.3%, 7/1/40	(d) (g) (h) (j)	Municipal		10		7		7
Puerto Rico Public Buildings Auth., 5.3%, 7/1/42	(d) (g) (h) (j)	Municipal		55		39		38
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 4.3%, 7/1/40	(d) (j)	Municipal		106		105		111
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 0.0%, 7/1/46	(d) (j) (n)	Municipal		374		90		109
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 0.0%, 7/1/51	(d) (j) (n)	Municipal		84		17		18
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 4.8%, 7/1/53	(d) (j)	Municipal		24		22		26
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 4.8%, 7/1/53	(d) (j)	Municipal		3		2		3
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., 4.5%, 7/1/53	(d) (j)	Municipal		7		6		7
Quicken Loans, Inc., 5.3%, 1/15/28	(d) (j) (k)	Diversified Financial Services		76		78		82
Science Applications International Corp., 4.9%, 4/1/28	(d) (j) (k)	Computers		37		37		39
SES GLOBAL Americas Holdings GP, 5.3%, 3/25/44	(d) (j) (k)	Telecommunications		12		11		13
SES SA, 5.3%, 4/4/43	(d) (j) (k)	Telecommunications		7		7		7
SESI LLC, 7.1%, 12/15/21	(d) (k)	Oil & Gas Services		117		106		47
Shelf Drill Holdings Ltd., 8.3%, 2/15/25	(d) (j) (k)	Oil & Gas		173		154		66
Sinclair Television Group, Inc., 5.9%, 3/15/26	(d) (j) (k)	Media Entertainment		7		7		7
Sinclair Television Group, Inc., 5.1%, 2/15/27	(d) (j) (k)	Media Entertainment		43		40		42
Sirius XM Radio, Inc., 5.0%, 8/1/27	(d) (j) (k)	Media Entertainment		33		34		35
Sirius XM Radio, Inc., 5.5%, 7/1/29	(d) (j) (k)	Media Entertainment		2		2		2
Southern California Edison Co., 6.3% 2/1/22 (fixed, converts to FRN on 2/1/22)	(d) (j) (l) (m)	Electric		60		60		60
Sprint Capital Corp., 6.9%, 11/15/28	(d) (j)	Telecommunications		32		37		42
Sprint Corp., 7.6%, 3/1/26	(d) (j)	Telecommunications		34		40		43
SRC Energy, Inc., 6.3%, 12/1/25	(d)	Oil & Gas		83		81		75
Standard Industries, Inc., 4.8%, 1/15/28	(d) (j) (k)	Building Materials		4		4		4
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., 7.5%, 6/15/25	(d) (j) (k)	Coal		67		67		62
Tapestry, Inc., 4.3%, 4/1/25	(d) (j)	Apparel		54		47		55
Tapestry, Inc., 4.1%, 7/15/27	(d) (j)	Apparel		46		38		44
Teck Resources Ltd., 6.3%, 7/15/41	(d) (j)	Mining		26		28		29
Teva Pharmaceutical Finance Netherlands II B.V., 4.5%, 3/1/25	(d) (j)	Pharmaceuticals	€	100		105		119
TransDigm, Inc., 5.5%, 11/15/27	(d)	Aerospace/Defense	$	72		53		68
UniCredit SpA, 5.5%, 6/30/35 (fixed, converts to FRN on 6/30/35)	(d) (j) (k) (l)	Commercial Banks		200		200		206
Vail Resorts, Inc., 6.3%, 5/15/25	(d) (j) (k)	Entertainment		33		33		36
Valaris Plc, 7.4%, 6/15/25	(d) (g) (h) (j)	Oil & Gas		6		3		1

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Valaris Plc, 7.8%, 2/1/26	(d)	Oil & Gas	$	23	$	22	$	1
Viking Cruises Ltd., 5.9%, 9/15/27	(d) (j) (k)	Leisure Time		29		29		19
Vistra Operations Co. LLC, 5.5%, 9/1/26	(d) (j) (k)	Electric		13		13		14
Vistra Operations Co. LLC, 5.6%, 2/15/27	(d) (j) (k)	Electric		40		42		43
Vistra Operations Co. LLC, 5.0%, 7/31/27	(d) (j) (k)	Electric		59		61		63
Western Midstream Operating LP, 4.1%, 2/1/25	(d) (j)	Pipelines		34		28		34
Western Midstream Operating LP, 4.7%, 7/1/26	(d) (j)	Pipelines		28		23		29
Western Midstream Operating LP, 4.5%, 3/1/28	(d) (j)	Pipelines		18		14		18
Western Midstream Operating LP, 4.8%, 8/15/28	(d) (j)	Pipelines		3		2		3
Western Midstream Operating LP, 5.1%, 2/1/30	(d) (j)	Pipelines		48		37		49
Williams Companies, Inc., 6.3%, 4/15/40	(d) (j)	Pipelines		101		107		131
Williams Companies, Inc., 5.4%, 3/4/44	(d) (j)	Pipelines		4		3		5
WPX Energy, Inc., 5.8%, 6/1/26	(d) (j)	Oil & Gas		8		5		8
WPX Energy, Inc., 5.3%, 10/15/27	(d) (j)	Oil & Gas		19		14		19
WPX Energy, Inc., 4.5%, 1/15/30	(d) (j)	Oil & Gas		30		16		28
XPO CNW, Inc., 6.7%, 5/1/34	(d) (j)	Transportation		42		41		44
XPO Logistics, Inc., 6.3%, 5/1/25	(d) (j) (k)	Transportation		27		29		29
Total Unsecured Bonds					$	7,320	$	7,465
Collateralized Loan Obligation (CLO) / Structured Credit—8.8%
Accunia European CLO I B.V., 2.7%, 7/15/30 (3 mo. EURIBOR + 2.7%)	(d) (k) (l)	EUR CLO	€	250	$	284	$	292
Accunia European CLO III DAC, 3.1%, 1/20/31 (3 mo. EURIBOR + 3.1%)	(d) (l)	EUR CLO		100		108		109
AlbaCore EURO CLO I DAC, 3.9%, 7/18/31 (3 mo. EURIBOR + 3.9%)	(d) (k) (l)	EUR CLO		250		275		293
Ares XXXVII CLO Ltd., 2.9%, 10/15/30 (3 mo. USD LIBOR + 2.7%)	(d) (k) (l)	USD CLO	$	250		247		226
Ares XXXVR CLO Ltd., 3.3%, 7/15/30 (3 mo. USD LIBOR + 3.0%)	(d) (k) (l)	USD CLO		250		250		230
Avoca CLO XX DAC, 3.9%, 7/15/32 (3 mo. EURIBOR + 3.9%)	(d) (l)	USD CLO	€	100		110		114
Black Diamond CLO 2014-1 Ltd., 5.6%, 10/17/26 (3 mo. USD LIBOR + 5.3%)	(d) (j) (l)	USD CLO	$	250		249		207
CVP Cascade CLO-2 Ltd., 4.1%, 7/18/26 (3 mo. USD LIBOR + 3.8%)	(d) (k) (l)	USD CLO		250		250		238
Erna Srl, 2.3%, 7/25/31 (3 mo. EURIBOR + 2.3%)	(d) (l)	EUR CLO	€	191		213		224
Euro-Galaxy VII CLO DAC, 4.0%, 4/25/32 (3 mo. EURIBOR + 4.0%)	(d) (l)	EUR CLO		100		110		115
Jubilee CLO 2017-XVIII B.V., 3.1%, 1/15/30 (3 mo. EURIBOR + 3.1%)	(d) (l)	EUR CLO		100		114		110
Man GLG US CLO 2018-2 Ltd., 3.8%, 10/15/28 (3 mo. USD LIBOR + 3.5%)	(d) (k) (l)	USD CLO	$	250		249		228
Preferred Term Securities XXI Ltd./Preferred Term Securities XXI, Inc., 0.7%, 3/22/38 (3 mo. USD LIBOR + 0.4%)	(d) (k) (l)	USD CDO		205		167		144
Preferred Term Securities XXVI Ltd./Preferred Term Securities XXVI, Inc., 0.7%, 9/22/37 (3 mo. USD LIBOR + 0.4%)	(d) (k) (l)	USD CDO		93		75		58
Sudbury Mill CLO Ltd., 3.8%, 1/17/26 (3 mo. USD LIBOR + 3.5%)	(d) (k) (l)	USD CLO		250		249		241
Trinitas CLO VII Ltd., 3.7%, 1/25/31 (3 mo. USD LIBOR + 3.5%)	(d) (k) (l)	USD CLO		250		229		223
Tymon Park CLO DAC, 6.8%, 1/21/29 (3 mo. EURIBOR + 6.8%)	(d) (l)	EUR CLO	€	100		113		105

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
WhiteHorse VIII Ltd., 2.6%, 5/1/26 (3 mo. USD LIBOR + 2.0%)	(d) (k) (l)	USD CLO	$	250	$	231	$	243
Total Collateralized Loan Obligation / Structured Credit					$	3,523	$	3,400

Portfolio Company^(a)	Footnotes	Industry	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Emerging Markets Debt—0.4%
Petroleos Mexicanos, 6.5%, 1/23/27	(d) (j)	Oil & Gas	$	154	$	142	$	147
Petroleos Mexicanos, 6.8%, 1/23/30	(d) (j)	Oil & Gas		30		27		28
Total Emerging Markets Debt					$	169	$	175

Portfolio Company^(a)	Footnotes	Industry	Number of Shares		Cost^(b)		Fair Value^(c)

Convertible Preferred Stocks—0.0%
Northern Oil and Gas, Inc., 6.5%	(d) (k) (m)	Oil & Gas		234	$	24	$	11
Total Convertible Preferred Stocks					$	24	$	11

Common Equity—0.3%
Hexion Holdings Corp., Class B	(d) (g)	Chemicals		2,691	$	35	$	18
Hexion Holdings Corp., Warrants	(d) (g)	Chemicals		2,976		42		21
Quorum Health Corp.	(d) (g)	Healthcare-Services		6,237		63		62
Total Common Equity					$	140	$	101

Portfolio Company^(a)	Footnotes	Yield		Number of Shares		Cost^(b)		Fair Value^(c)
Short-Term Investments—5.4%
State Street Institutional Treasury Plus Money Market Fund - Premier Class	(o)	0.11	%		2,082,000	$	2,082	$	2,082
Total Short-Term Investments						$	2,082	$	2,082
TOTAL INVESTMENTS—94.1%						$	36,903	$	36,482
OTHER ASSETS IN EXCESS OF LIABILITIES—5.9%^(p)									2,310
NET ASSETS—100.0%								$	38,792

Shares outstanding at period end (Class A)									848,659
Net asset value per common share at period end (Class A)								$	11.94
Shares outstanding at period end (Class I)									2,403,511
Net asset value per common share at period end (Class I)								$	11.93

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

Forward Foreign Currency Exchange Contracts

Counterparty	Contract Settlement Date	Currency to be Received	Value		Currency to be Delivered	Value		Unrealized Appreciation		Unrealized Depreciation
Bank of America, N.A.	12/16/20	USD		10	EUR		9	$	—	$	1
Bank of America, N.A.	12/16/20	USD		4	EUR		4		—		—
JPMorgan Chase Bank, N.A.	12/16/20	USD		96	EUR		86		—		5
JPMorgan Chase Bank, N.A.	12/16/20	USD		112	EUR		100		—		6
JPMorgan Chase Bank, N.A.	12/16/20	USD		38	EUR		34		—		2
State Street Bank and Trust Company	12/16/20	USD		19	EUR		16		—		—
State Street Bank and Trust Company	12/16/20	USD		40	EUR		34		—		1
State Street Bank and Trust Company	12/16/20	GBP		66	USD		82		5		—
State Street Bank and Trust Company	12/16/20	EUR		64	USD		72		3		—
State Street Bank and Trust Company	12/16/20	EUR		63	USD		71		3		—
State Street Bank and Trust Company	12/16/20	EUR		230	USD		263		9		—
State Street Bank and Trust Company	12/16/20	USD		239	EUR		213		—		13
State Street Bank and Trust Company	12/16/20	USD		98	EUR		87		—		5
State Street Bank and Trust Company	12/16/20	USD		44	EUR		39		—		2
State Street Bank and Trust Company	12/16/20	USD		103	GBP		82		—		4
State Street Bank and Trust Company	12/16/20	USD		90	EUR		80		—		4
State Street Bank and Trust Company	12/16/20	USD		286	EUR		250		—		9
State Street Bank and Trust Company	12/16/20	USD		208	EUR		181		—		6
Total Forward Foreign Currency Exchange Contracts								$	20	$	58

Futures Contracts

Description	Number of Contracts		Position		Expiration Date	Notional Amount		Unrealized Appreciation		Unrealized Depreciation
Interest Rate Futures
U.S 10-Year Treasury Note		1		Short	9/21/20	$	139	$	—	$	1
Total Interest Rate Futures Contracts								$	—	$	1

Cross-Currency Swaps
Counterparty	Fund Pays	Fund Receives	Notional Amount of Currency Delivered	Notional Amount of Currency Received	Expiration Date	Periodic Payment Frequency	Fair Value^(c)			Unrealized Appreciation		Unrealized Depreciation
JPMorgan Chase Bank, N.A.	3 Month EURIBOR plus a spread of (0.10375%)	3 Month USD LIBOR	EUR 116	USD131	3/29/21	Quarterly	$	(4	)	$	—	$	4
JPMorgan Chase Bank, N.A.	3 Month EURIBOR plus a spread of (0.176%)	3 Month USD LIBOR	EUR 275	USD310	7/12/21	Quarterly		(14	)		—		14
JPMorgan Chase Bank, N.A.	3 Month EURIBOR plus a spread of (0.1435%)	3 Month USD LIBOR	EUR 900	USD1,024	12/3/23	Quarterly		(35	)		—		35
Total Cross-Currency Swaps							$	(53	)	$	—	$	53

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands, except share and per share amounts)

(a)	Security may be an obligation of one or more entities affiliated with the named company.

(b)	Denominated in U.S. dollars unless otherwise noted.

(c)	Fair value is determined by the board of trustees of FS Multi-Alternative Income (the “Fund”). For information on the Fund’s policy regarding valuation of investments, fair value hierarchy levels and other significant accounting policies, please refer to the Fund’s most recent audited financial statements.

(d)	Security held in Fund’s wholly-owned subsidiary, FS Multi Alternative Credit LLC.

(e)	Certain variable rate securities in the Fund’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of July 31, 2020, the one-month, three-month and six-month London Interbank Offered Rate (“LIBOR” or “L”) was 0.15%, 0.25% and 0.31%, respectively, the three-month Euro Interbank Offered Rate (“EURIBOR” or “E”) was (0.46)%, and the U.S. Prime Lending Rate (“Prime” or “P”) was 3.25%.

(f)	Position or portion thereof unsettled as of July 31, 2020.

(g)	Security is non-income producing.

(h)	Security is in default.

(i)	Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding.

(j)	Security or portion thereof is pledged as collateral supporting the amounts outstanding under the prime brokerage facility with BNP Paribas Prime Brokerage International, Ltd. (“BNP”). Securities may be rehypothecated from time to time as permitted under Rule 15c-1(a)(1) promulgated under the Securities Exchange Act of 1934, as amended, subject to terms and conditions governing the prime brokerage facility with BNP. As of July 31, 2020, there were no securities rehypothecated by BNP.

(k)	Exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Such securities may be deemed liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounts to $8,275, which represents approximately 21.3% of net assets as of July 31, 2020.

(l)	Variable rate security. The stated interest rate represents the rate in effect at July 31, 2020.

(m)	The security has a perpetual maturity; the date displayed is the next call date.

(n)	Issued with a zero coupon. Income is recognized through the accretion of discount.

(o)	Rate represents the seven-day yield as of July 31, 2020.

(p)	Includes the effect of forward foreign currency exchange contracts, futures contracts and swap contracts.

CDO	- Collateralized Debt Obligation
EUR	- Euro
EURIBOR	- Euro Interbank Offered Rate
FRN	- Floating Rate Note
GBP	- British Pound
LIBOR	- London Interbank Offered Rate
PIK	- Payment In Kind
USD	- U.S. Dollar

See notes to unaudited consolidated schedule of investments.

FS Multi-Alternative Income Fund

Notes to Unaudited Consolidated Schedule of Investments

As of July 31, 2020 (in thousands)

Investment Portfolio

The information contained in this section should be read in conjunction with the Fund’s audited financial statements contained in its annual report for the fiscal year ended October 31, 2019.

The following table summarizes the composition of the Fund’s investment portfolio at cost and fair value as of July 31, 2020:

	Amortized Cost⁽¹⁾		Fair Value		Percentage of Portfolio
Real Estate Funds	$	15,000	$	15,789		43%
Senior Secured Loans—First Lien		4,529		3,602		10%
Senior Secured Loans—Second Lien		300		146		1%
Senior Secured Bonds		3,816		3,711		10%
Unsecured Bonds		7,320		7,465		20%
Collateralized Loan Obligation (CLO) / Structured Credit		3,523		3,400		9%
Emerging Markets Debt		169		175		1%
Convertible Preferred Stocks		24		11		0%
Common Equity		140		101		0%
Short-Term Investments		2,082		2,082		6%
Total	$	36,903	$	36,482		100%

(1)

Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.

In general, under the 1940 Act, a Fund would be presumed to “control” a portfolio company if it owned more than 25% of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities.

As of July 31, 2020, the Fund did not “control” any of its portfolio companies and was not an “affiliated person” of any of its portfolio companies, each as defined in the 1940 Act. As of July 31, 2020, the Fund had unfunded commitments of $7.

The Fund’s investment portfolio may contain loans and other unfunded arrangements that are in the form of lines of credit or revolving credit facilities, or other investments, which require the Fund to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. The Fund maintains sufficient cash on hand, available borrowings and liquid securities to fund any unfunded commitments should the need arise.

FS Multi-Alternative Income Fund

Notes to Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands)

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of July 31, 2020:

Industry Classification	Fair Value		Percentage of Portfolio
Real Estate	$	16,152		44%
Telecommunications		1,998		6%
USD CLO		1,950		5%
Oil & Gas		1,605		4%
EUR CLO		1,248		3%
Pipelines		999		3%
Pharmaceuticals		834		2%
Retail		781		2%
Chemicals		767		2%
Electric		625		2%
Municipal		614		2%
Healthcare-Services		551		2%
Media Entertainment		527		1%
Computers		453		1%
Food		401		1%
Entertainment		377		1%
Leisure Time		375		1%
Other		4,143		12%
Short-Term Investments		2,082		6%
Total	$	36,482		100%

Under existing accounting guidance, fair value is defined as the price that the Fund would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. This accounting guidance emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Fund. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The Fund classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets.

Level 3: Inputs that are unobservable for an asset or liability.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

FS Multi-Alternative Income Fund

Notes to Unaudited Consolidated Schedule of Investments (continued)

As of July 31, 2020 (in thousands)

As of July 31, 2020, the Fund’s investments and derivatives were categorized as follows in the fair value hierarchy:

Asset Description	Level 1			Level 2			Level 3		Total
Senior Secured Loans—First Lien	$	—		$	3,602		$	—	$	3,602
Senior Secured Loans—Second Lien		—			146			—		146
Senior Secured Bonds		—			3,711			—		3,711
Unsecured Bonds		—			7,465			—		7,465
CLO/Structured Credit		—			3,400			—		3,400
Emerging Markets Debt		—			175			—		175
Convertible Preferred Stocks		11			—					11
Common Equity		101			—			—		101
Short-Term Investments		2,082			—			—		2,082
Subtotal		2,194			18,499			—		20,693
Real Estate Funds		—			—			—		15,789
Total Investments		2,194			18,499			—		36,482
Forward Foreign Currency Exchange Contracts		—			20			—		20
Total Assets	$	2,194		$	18,519			—	$	36,502

Liability Description
Forward Foreign Currency Exchange Contracts	$	—		$	(58	)		—	$	(58	)
Future Contracts		(1	)		—			—		(1	)
Cross-Currency Swaps		—			(53	)		—		(53	)
Total Liabilities	$	(1	)	$	(111	)		—	$	(112	)

In accordance with ASC 820, private real estate funds are measured at estimated net asset value as a practical expedient and not included in the fair value hierarchy.