UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-23368

1WS Credit Income Fund

(Exact name of registrant as specified in charter)

299 Park Avenue, 25^th Floor

New York, New York 10171

(Address of principal executive offices)

Kurt A. Locher

Chief Executive Officer

c/o 1WS Credit Income Fund

299 Park Avenue, 25^th Floor

New York, New York 10171

(Name and Address of Agent for Service)

Registrant’s telephone number, including area code: (212) 377-4810

Date of fiscal year end: October 31

Date of reporting period: November 1, 2025 – April 30, 2026

Item 1. Reports to Stockholders.

(a)

Table of Contents

April 30, 2026 (Unaudited)

The 1WS Credit Income Fund (the “Fund”) is a closed-end interval fund launched in March 2019. As of April 30, 2026, the Fund has gross assets under management of approximately $1.24 billion (approximately $854 million net assets). The Fund is a non-diversified, closed-end investment management company. Its investment objective is to seek attractive risk-adjusted total returns through generating income and capital appreciation by investing primarily in a wide array of predominantly structured credit and securitized debt instruments.

Overview:

2026 began with a consensus view that the economic outlook presented a positive backdrop for risk assets to continue to outperform. The U.S. economy remained resilient, with robust activity; inflation and unemployment were expected to remain range-bound, if not improve; and the market was pricing in ~50 basis points (bps) of rate cuts from the Federal Reserve by year-end. However, as the first half unfolded, skepticism about the economic outlook has emerged, driving a revaluation of risk assets. The conflict in the Middle East and the uncertainty around how breakthroughs in artificial intelligence (AI) capabilities will ultimately affect corporate profitability, the labor market, and the economy at large, have driven equity multiples to compress, and credit spreads wider.

The conflict in the Middle East has effectively brought ~25% of the global seaborne oil trade to a near standstill, as commercial traffic through the Strait of Hormuz remains severely disrupted, according to the UN Conference on Trade and Development. This disruption has tightened global crude supply and pushed oil prices materially higher. As the likelihood of a prolonged conflict increases, so too does uncertainty around the outlook for global growth and inflation.

Furthermore, questions about whether AI themes will be able to deliver on lofty expectations quickly transitioned into the view that AI has closed in on the ability to replicate cognitive, non-redundant workflows, potentially changing the workforce as we know it, and, in turn, disrupting the economy. Anthropic, the creator of the AI assistant Claude, rolled out new AI tools over the course of the first half of the year, and each day seemed to mark the demise of a different industry. Paired with AI-doomsday articles going viral, risk assets repriced lower. This spurred concerns around software as a service (SaaS) obsolescence and called into question the valuation of enterprise software firms, as well as the businesses that have funded them.

While a prolonged war in the Middle East raises the risk of a material economic slowdown, which could eventually weigh on consumers and, in turn, securitized products, we believe the current repricing in enterprise software is largely unique to sectors exposed to corporate fundamentals.

Net Return Performance as of April 30, 2026*

Source: Bloomberg, Finance L.P., Bank of America, OWS

Past performance is not indicative of future returns.

Management Fee under the Advisory Agreement is calculated at an annual rate of 1.50% of the daily gross assets of the Fund. "Gross Assets" means the total assets of the Fund prior to deducting liabilities. Derivatives will be valued at market value for purposes of determining "Gross Assets" in the calculation of management fees. Because the Management Fee is based on the Fund's daily gross assets, the Fund's use of leverage, if any, will increase the Management Fee paid to the Adviser. For the initial year of the Fund, the Adviser voluntarily agreed to reduce the Management Fee to 0.75%. For the one-year period beginning on March 1, 2019, and continuing through the present, the Adviser has voluntarily agreed to reduce the Management Fee to 1.25% of the Fund’s daily gross assets. The Adviser is under no obligation to continue the fee waiver but may continue to do so.

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Performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling (833) 834-4923 or visiting www.1wscapital.com. Investors cannot invest directly in an index. All performance shown assumes reinvestment of dividends and capital gains distribution in percent value. Dividends are not guaranteed and will constitute a return of capital if dividend distributions exceed current-year earnings. Please refer to the Fund’s most recent Section 19(a) notice for an estimate of the composition of the Fund’s most recent distribution, available at www.1WSCapital.com.

Comparison of the Change in Value of a $10,000 Investment

The chart above assumes an initial hypothetical investment of $10,000 made in Class I shares of the Fund on March 4, 2019 (commencement of operations). Returns shown include the reinvestment of all dividends. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or share repurchases. In the absence of fee waivers and reimbursements, which can be necessary to keep expenses at the expense cap ,total return would be reduced.

2	www.1wscapital.com

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Portfolio Composition¹ and Net Return Attribution²

Portfolio Activity:

Our ABS portfolio has been among our strongest-performing sector strategies in 2026, led by our subprime auto ABS exposures. In a reversal of the weakness exhibited across the sector late last year, subprime auto ABS performed well so far this year. While it remains true that, in aggregate, subprime auto ABS delinquencies are at all-time highs, defaults are not and remain near pre-COVID levels. Furthermore, when looking at subprime auto ABS roll rates of borrowers who are 60 days delinquent, we see that transitions into 90 days delinquent (i.e., serious delinquency) have been steadily trending downward, while the share remaining 60 days delinquent has been trending upward. We believe this indicates that, while borrowers may be finding them-selves stretched and incapable of fully catching up on payments to current, they are still making payments and avoiding the worst-case scenario of default and repossession of their vehicles.

Our residential credit portfolio has been our strongest-performing sector strategy this year. Exposures to home equity lines of credit/loans (HELOC/HELOANS) performed well. We continued to identify what we believe are attractive new-issue opportunities within the sector, as HELOC issuance has continued to grow meaningfully year to date (YTD) versus 2025 YTD issuance and making HELOCs the second-largest product issued in RMBS. Elevated home prices, coupled with persistently high mortgage rates, have reinforced borrowers’ preference to remain in their current homes, driving HELOC issuance.

Our commercial real estate exposures were consistent performers. Single-asset single-borrower (SASB) exposures backed by hospitality and office properties were among the strongest-performing sector strategies in our CMBS portfolio, as were seasoned conduit exposures. We continue to believe the office sector presents attractive investment opportunities, largely as a function of the elevated uncertainty that persists across the space. Delinquency rates for office properties remain among the highest in the CMBS market relative to other property types, according to Trepp, a provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. While this may lead other investors to avoid the sector altogether, we believe the headline data mask substantial dispersion in underlying performance.

We continued to identify attractive opportunities across European ABS and RMBS. We were active in the ABS market, presently favoring exposures to unsecured consumer debt ABS. We were generally selling across our RMBS portfolio, looking to reduce exposure to names that we felt had richened meaningfully over the course of this year. We also reduced longer-duration RMBS exposures in favor of shorter-duration profiles as we sought to reduce our sensitivity to a potential prolonged conflict in the Middle East.

We intentionally maintained an underweight position in CLOs to limit both fundamental credit beta and mark-to-market risk within the portfolio. Although corporate earnings have remained robust, we think concerns about growth and inflation, along with lingering fears around software exposure, will continue to lead investors to scrutinize the riskiest tranches of the CLO capital structure more closely. We presently view the convexity profile of CLOs as less compelling than that of other sectors in which we invest. In our view, risks within CLOs remain skewed to the downside, and the sector generally appears rich relative to other opportunities across securitized credit. While benchmark CLOs offer spread pickup over comparable unsecured corporate credit on an absolute basis, we believe the assets underlying CLOs continue to skew toward lower-quality credits.

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Outlook:

Looking ahead, we believe both absolute and relative returns are likely to favor investors with the expertise to identify value in sectors marked by wide performance dispersion. We continue to find what we believe are some of the most attractive opportunities in structured credit, where diversity in collateral, underlying fundamentals, and deal structures give rise to differentiated risk-return profiles. We believe investors with deep fundamental and structural underwriting expertise will be well positioned to identify security-specific opportunities and capture differentiated risk-adjusted returns.

The overall health of the consumer remains of key concern, particularly given the potential headwinds that inflationary pressures and an economic slowdown stemming from a prolonged war in the Middle East would present, especially for lower-end consumers. Overall, we believe consumer fundamentals remain resilient on an aggregate basis, even though idiosyncratic risks have become more pronounced.

In our view, disciplined risk management remains essential given the potential for macroeconomic shocks. Economic and geo-political risks could unsettle market sentiment, revive fundamental uncertainty, widen risk premia, and increase volatility. Central to this uncertainty are the health of the U.S. economy, the outlook for growth, and the path of credit fundamentals.

Investing in the Fund may be considered speculative and involves a high degree of risk, including the risk of possible substantial loss of your investment.

Prior to investing, Investors should carefully consider the investment objectives, risks, charges and expenses of the 1WS Credit Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (833) 834-4923 or visiting www.1wscapital.com. The prospectus should be read carefully before investing.

1WS Credit Income Fund is distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with 1WS Capital Advisors, LLC or One William Street Capital Management, L.P.

Net performance data are pre-tax, fund-level, net of operating expenses, management fees, and any applicable shareholder servicing and distribution fees charged to investors. ITD Net return is a linked monthly return. Actual returns experienced by an investor may vary due to these factors, among others.

RISK DISCLOSURES

Past performance is not a guarantee of future results. There is no assurance that the Fund will meet its investment objective.

Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire to sell in a quarterly repurchase offer. The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. The Fund’s investments may be negatively affected by the broad investment environment in the real estate market, the debt market and/ or the equity securities market. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. The Fund is “non-diversified” under the Investment Company Act of 1940 and, thus, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Fund’s net asset value than in a “diversified” fund. Diversification does not eliminate the risk of experiencing investment losses. The Fund is not intended to be a complete investment program. The Fund expects most of its investments to be in securities that are rated below investment grade or would be rated below investment grade if they were rated. Below investment grade instruments or “junk securities” are particularly susceptible to economic downturns compared to higher rated investments. While the Fund may employ hedging techniques to seek to minimize interest rate risk, there can be no assurance that it will engage in such techniques at any given time or that such techniques would be successful. As such, the Fund is subject to interest rate risk and may decline in value as interest rates rise. The Fund may use leverage to achieve its investment objective, which involves risks, including the increased likelihood of net asset value volatility and the increased risk that fluctuations in interest rates on borrowings will reduce the return to investors. In addition to the normal risks associated with investing, investing in international and emerging markets involves risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles or from social, economic or political instability in other nations. The Fund may employ hedging techniques to seek to minimize foreign currency risk. There can be no assurance that it will engage in such techniques at any given time or that such techniques would be successful. The Fund may invest in derivatives, which, depending on market conditions and the type of derivative, are more volatile than other investments and could magnify the Fund’s gains or losses. An investment in shares should be considered only by investors who can assess and bear the illiquidity and other risks associated with such an investment.

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Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Mortgage-backed and asset-backed securities are affected by interest rates, financial health of issuers/originators, creditworthiness of entities providing credit enhancements and the value of underlying assets. Fixed-income securities present issuer default risk. Prepayment and extension risk exists because a loan, bond or other investment may be called, prepaid or redeemed before maturity and similar yielding investments may not be available for purchase. Structured finance securities may present risks similar to those of the other types of debt obligations in which the Fund may invest and, in fact, such risks may be of greater significance in the case of structured finance securities. Investing in structured finance securities may be affected by a variety of factors, including priority in the capital structure of the issuer thereof, the availability of any credit enhancement, and the level and timing of payments and recoveries on and the characteristics of the underlying receivables, loans or other assets that are being securitized, among others. Market or other (e.g., interest rate) environments may adversely affect the liquidity of Fund investments, negatively impacting their price. Generally, the less liquid the market at the time the Fund sells a holding, the greater the risk of loss or decline of value to the Fund. See the Fund’s prospectus for information on these and other risks.

There can be no assurance that the Fund will achieve its investment objective. Many of the Fund’s investments may be considered speculative and subject to increased risk. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations or investment selections will be effective in achieving the Fund’s investment objective or delivering positive returns.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the portfolio manager disclaims any responsibility to update such views. The views expressed in this report reflect the current views of the portfolio manager as of April 30th, 2026.

There are limitations when comparing the 1WS Credit Income Fund to indices. Many open-end funds which track these indices offer daily liquidity, while closed-end interval funds offer liquidity on a periodic basis. Deteriorating general market conditions will reduce the value of stock securities. When interest rates rise, the value of bond securities tends to fall. Investing in lower-rated securities involves special risks in addition to the risks associated with investments in investment grade securities, including a high degree of credit risk. Lower-rated securities may be regarded as predominately speculative with respect to the issuer’s continuing ability to meet principal and interest payments. Analysis of the creditworthiness of issuers/ issues of lower-rated securities may be more complex than for issuers/issues of higher quality debt securities. There is a risk that issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Assets and securities contained within indices are different than the assets and securities contained in the 1WS Credit Income Fund and will therefore have different risk and reward profiles. An investment cannot be made in an index, which is unmanaged and has returns that do not reflect any trading, management or other costs. Please see definitions for a description of the investment indexes selected.

DEFINITIONS

Aaa Corporate: The Bloomberg Aaa Corporate Index measures the Aaa-rated, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

Aa Corporate: The Bloomberg Aa Corporate Index measures the Aa-rated, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

A Corporate: The Bloomberg A Corporate Index measures the A-rated, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

ABS: Asset-Backed Securities are instruments secured by financial, physical, and/or intangible assets (e.g., receivables or pools of receivables), and investments in any assets/instruments underlying the foregoing structured/secured obligations.

Baa Corporate: The Bloomberg Baa Corporate Index measures the Baa-rated, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

Ba U.S. High Yield: The Bloomberg Ba US High Yield Index measures the USD-denominated, Ba-rated, fixed-rate high-yield corporate bond market. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded.

B U.S. High Yield: The Bloomberg B US High Yield Index measures the USD-denominated, B-rated, fixed-rate high-yield corporate bond market. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded.

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Basis Points (bps): A basis point is a common unit of measurement for interest rates and credit spreads and is equal to one hundredth of one percent.

Bloomberg Barclays U.S. Aggregate Bond Index: The Bloomberg USAgg Index measures the USD-denominated, investment grade, fixed-rate taxable bond market performance. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). Investors cannot invest directly in an index.

Buy-to-Let (BTL): Buy-to-let mortgages are for landlords who want to buy property to rent it out.

Caa U.S. High Yield: The Bloomberg Caa US High Yield Index measures the USD-denominated, Caa-rated, fixed-rate high-yield corporate bond market. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded.

Capitalization Rate: The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of return that is expected to be generated on a real estate investment property.

CLO: Collateralized Loan Obligations are instruments that represent debt and equity tranches of collateralized loan obligations and collateralized debt obligations.

CMBS: Commercial Mortgage-Backed Securities are fixed income instruments that are secured by mortgage loans on commercial real property.

CMBX: CMBX indices are synthetic tradable indices referencing a basket of 25 commercial mortgage-backed securities (CMBS).

Convexity: Convexity is a measure of the curvature, or the degree of the curve, in the relationship between bond prices and bond yields.

Credit Enhancement: Credit enhancement is a risk-reduction technique that provides protection, in the form of financial support, to cover losses under stressed scenarios.

Credit Risk Transfer (CRT) Securities: CRT securities effectively transfer a portion of the risk associated with credit losses within pools of residential mortgage loans to investors.

Debt Service Ratio: The household debt service ratio (DSR) is the ratio of total required household debt payments to total disposable income.

Duration-Adjusted: Duration-adjusted or excess return is a measure of pure credit performance for fixed-rate bonds by adjusting for movements in benchmark interest rates.

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Euro Auto Mezzanine (A-rated): European Auto Mezzanine A-rated is representative of an A-rated mezzanine tranche of a Non-Dollar Asset-Backed Securities Index, specifically auto loans or leases.

EURO STOXX 50: The index covers 50 of the leading blue-chip stocks from 11 Eurozone countries.

FICO: The Fico Score is used by lenders to help make accurate, reliable, and fast credit risk decisions across the customer lifecycle.

Financial Obligation Ratio: The financial obligation ratio is the ratio of required household debt payments to total disposable income and includes rent payments on tenant-occupied property, auto lease payments, homeowners’ insurance, and property tax payments

Floating-Rate Loans: A floating rate loan has an interest rate which changes periodically based on an underlying index plus a spread.

Forbearance: The temporary suspension of loan repayments due to demonstrated financial hardship on the part of the borrower.

ICE BofA MOVE Index: This is a yield curve weighted index of the normalized implied volatility on 1-month Treasury options. It is the weighted average of volatilities on the CT2, CT5, CT10, and CT30. (weighted average of 1m2y, 1m5y, 1m10y and 1m30y Treasury implied vols with weights 0.2/0.2/0.4/0.2, respectively).

ICE BofAML US High Yield Index: The index tracks the performance of US dollar denominated below investment grade rated corporate debt publically issued in the US domestic market. Investors cannot invest directly in an index.

Interest Rate Hedges: Interest rate hedges include a variety of different products to help protect against interest rate risk. In principle, interest rate hedging products provide greater certainty over future loan repayments.

iTraxx Crossover: An equally weighted index comprised of 75 credit default swaps on the most liquid non-investment grade European corporates.

iTraxx Main: An equally weighted index comprised of 125 credit default swaps on investment grade European corporates.

Loan-to-Value (LTV): Loan-to-value is a measure of the size of a loan relative to the value of an asset.

Mezzanine Tranche: A mezzanine tranche within a securitization lies in the middle of the capital structure, below the senior tranche and above the junior tranche (typically an unrated equity tranche).

Morningstar LSTA US Leveraged Loan Index: A market value weighted index designed to measure the performance of the US leveraged loan market that tracks the performance of more than 1,400 USD denominated loans.

Nasdaq-100 Index: A modified capitalization-weighted index of the 100 largest and most active non-financial equities listed on the NASDAQ.

Non-Dollar ABS: Non-Dollar Asset-Backed Securities are instruments secured by financial, physical, and/or intangible assets (e.g., receivables or pools of receivables), and investments in any assets/instruments underlying the foregoing structured/secured obligations outside of the U.S. Non-Dollar Asset-Backed Securities are denominated in currencies other than the U.S. Dollar.

Non-Dollar RMBS: Non-Dollar Residential Mortgage-Backed Securities are securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property outside of the U.S. Non-Dollar Residential Mortgage-Backed Securities are denominated in currencies other than the U.S. Dollar.

Non-Performing Loans (NPL): Mortgage loans that are subject to late repayment (i.e., 90 days have passed without the borrower paying the agreed instalments) or are unlikely to be repaid by the borrower.

Non Qualified Mortgages (Non-QM): A non-qualified mortgage — or non-QM — is a home loan that is not required to meet agency-standard documentation requirements as outlined by the Consumer Financial Protection Bureau (CFPB).

Real Capital Analytics (RCA) Property Price Index: The RCA Property Price Indices are transaction based indices that measure property prices at a national level.

Re-performing Loans (RPL): Mortgage loans that were once delinquent but has since returned to performing status.

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Residential Transitional Loans (RTL): Mortgage loans, specifically real estate investment loans, that are usually short duration financing for investors pursuing construction, renovation, and other rehabilitation projects on a property.

RMBS: Residential Mortgage-Backed Securities are securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property.

Risk-Adjusted: A risk-adjusted return is a calculation of the profit or potential profit from an investment that takes into account the degree of risk that must be accepted in order to achieve it. The risk is measured in comparison to that of a risk-free investment, usually U.S. Treasuries.

Risk Premia: Risk Premia is the investment return an asset is expected to yield in excess of the risk -free rate of return.

SASB: Single Asset Single Borrower (SASB) CMBS transactions involve the securitization of a single loan (SA) or collateralized by a group of assets all owned by the same borrower (SB).

S&P 500 Index: An index that includes 500 leading companies and covers approximately 80% of available market capitalization.

S&P CoreLogic Case-Shiller U.S. National Home Price Index: The index tracks the value of single-family housing within the United States.

Subprime Auto ABS: Auto asset-backed securities (auto ABS) are structured finance securities that are collateralized by auto loans or leases, specifically subprime (poor credit standing) borrowers.

Tranche: Tranches are segments created from a pool of assets - usually debt instruments such as bonds or mortgages - that are divvied up by risk, time to maturity, or other characteristics in order to be marketable to different investors.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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See Notes to Consolidated Financial Statements.

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