An alternative mutual fund for investors seeking diversification

Symbol:
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Why Blackstone Alternative Multi‑Strategy Fund

A core alternative solution providing a diversified blend of alternative strategies and managers in a single daily liquid mutual fund.

Reasons to Invest

In pursuing its investment objective of capital appreciation,
Blackstone Alternative Multi-Strategy Fund seeks to deliver:

Diversification

Invests in a variety of alternative strategies in an effort to provide diversified exposures that are less dependent on market movements.

Volatility Mitigation

Seeks to mitigate volatility through exposure to diversifying assets.

Risk-Adjusted Returns

Seeks to deliver steady growth with a focus on maximizing risk-adjusted returns over a full market cycle.

There can be no assurance that the Fund will achieve its goals or avoid losses.

Why Blackstone?

Blackstone Alternative Asset Management (BAAM) has partnered
with some of the world’s leading investors since 1995.

Position

World’s largest discretionary investor in hedge funds1 with $74 billion in AUM2

People

Over 100 investment professionals with experience across all of the key investment strategies

Process

Disciplined investment and operational due diligence; proprietary risk management and technology

Partnership

Deep, differentiated relationships with hedge fund talent

Check the background of this firm on FINRA’s BrokerCheck.

1. Source: InvestHedge Billion Dollar Club (as of December 31, 2019) based on AUM.
2. AUM as of March 31, 2020.

Why Multi-Manager

Aims to ease the burden on financial advisors and investors of
evaluating and allocating to multiple single-strategy funds

Diversification

Diversification is critical in investing and helps reduce risk in a portfolio. The Fund’s multi-manager structure provides built-in diversification for investors who seek to avoid single manager risk.


Access to Specialists

Specialists with expertise in specific alternative strategies are combined in one solution. Given the complexity of many of these strategies, it is unlikely that a single manager has expertise across all of them.


Dynamic Allocation

Dynamic allocation allows Blackstone to rotate into more attractive sectors, strategies and managers as markets evolve.

Equity

ManagerStrategySub-Strategy
HealthCorEquity HedgeEquity Long Short
EndeavourEquity HedgeEquity Market Neutral
Two Sigma AdvisersEquity HedgeEquity Market Neutral

Classification

Equity

Credit

Manager StrategySub-Strategy
BayviewRelative ValueFixed Income – Asset Backed
BRESSA1Relative ValueFixed Income – Asset Backed
Good HillRelative ValueFixed Income – Asset Backed
GSO DFM1Relative ValueFixed Income – Asset Backed
CaspianEvent DrivenDistressed/Restructuring

Classification

Credit

Multi-Asset

ManagerStrategySub-Strategy
Sage RockEvent-DrivenMulti Strategy
Magnetar1Event-DrivenRisk Arbitrage
EmsoMacroDiscretionary Thematic
NWIMacroDiscretionary Thematic
D.E. ShawMulti-StrategyN/A
BAIA-Direct2Multi-StrategyN/A
LuminusMacroCommodity Energy
Bayforest-G10Multi-StrategyN/A
TrailstoneMacroCommodity-Energy

Classification

Multi-Asset

Inactive Managers<sup>3</sup>

ManagerStrategySub-Strategy
CerberusRelative ValueFixed Income – Asset Backed
WaterfallRelative ValueFixed Income – Asset Backed
NephilaEvent DrivenReinsurance
IPMMacroSystematic Diversified
Shelter GrowthRelative ValueFixed Income–Asset Backed

Classification

Inactive

Data as of October 31, 2020

Why Alternative Strategies

We are focused on the pursuit of alpha, which we believe
requires a differentiated approach to alternative investing

Identifying Managers
with Moats

These managers typically have a defensible edge that thwarts others from directly competing with them. It would be difficult for a competitor to catch up and build a comparable franchise in a short period of time. For example, a large-scale, quantitative hedge fund manager that sources, parses and consumes massive data sets might have a competitive edge.

Focusing on
Non-Economic Actors

Some market participants have political or social motivations that may not be economically rational. This dynamic allows private investors to assume potentially attractive risk that only exists because of non-economic decision-making. One example is the U.S. government mandating that Fannie Mae and Freddie Mac reduce their credit risk to stay solvent with the objective of ensuring their ability to continue issuing mortgages for the greater good of the economy

Sourcing Direct
Investments

Blackstone is one of the world’s largest alternative investment firms with a dynamic ecosystem fueled by ideas and deep resources, which we believe is a strong competitive advantage. We partner with hedge fund managers, banks, corporations and even governments to source, underwrite and structure investments. Our size and robust underwriting may allow us to negotiate attractive terms, and we seek to pay fees only for alpha, not beta.

Reflects the opinions and views of BAIA as of October 31, 2020 and is not intended to be a prediction of how any financial markets will perform in the future. Nothing contained herein should be relied upon as a promise or representation as to past or future performance of a fund or any other entity, transaction, or investment.

Asset Allocation

A natural complement to a traditional allocation.

The charts above represent illustrative examples. There can be no assurance that the Fund will achieve its goals or avoid losses.

Allocating to the Blackstone Alternative Multi-Strategy Fund from a combination of existing equity and fixed income sleeves may mitigate overall portfolio volatility while maintaining exposure to growth assets.

The charts above represent illustrative examples. There can be no assurance that the Fund will achieve its goals or avoid losses.

Blackstone Alternative Multi‑Strategy Fund represents a core allocation that is designed to stand on its own or provide a complement to other alternative allocations.

Portfolio Characteristics

BXMIX includes multiple alternatives strategies and investment
styles with the aim of capturing opportunities across asset classes
and geographies.

Portfolio Allocations

Asset Class Exposure

Data as of October 31, 2020

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Please see important Disclosure Regarding Exposure at the end of this presentation. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

LONG SHORT NET
Asia general 0.41% (0.78%) (0.37%)
China/HK/Taiwan 5.60% (0.55%) 5.05%
Core Europe 8.53% (4.32%) 4.21%
Japan 0.12% (0.66%) (0.54%)
Lat. Am./Caribbean 17.26% (0.4%) 16.86%
Middle East/Africa 8.15% (0.64%) 7.51%
Peripheral Europe 2.23% (0.76%) 1.47%
US/Canada 86.40% (29.97%) 56.43%
Total 128.70% (38.08%) 90.62%

Data as of October 31, 2020

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Please see important Disclosure Regarding Exposure at the end of this presentation. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

LONG SHORT NET
Asia general 0.09% (0.21%) (0.11%)
China/HK/Taiwan 0.04% 0.00% 0.04%
Core Europe 0.35% (1.26%) (0.92%)
Japan 0.02% (0.61%) (0.59%)
Lat. Am./Caribbean 1.90% 1.90%
Middle East/Africa 1.42% (0.05%) 1.37%
Peripheral Europe 0.01% (0.55%) (0.54%)
US/Canada 0.04% (0.03%) 0.01%
Total 3.86% (2.71%) 1.15%

Data as of October 31, 2020

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

Reflects exposure to currency‐related derivative instruments. The market value of these instruments will change based on fluctuations in currency exchange rates. Typically, the Fund has other holdings that are also sensitive to currency exchange rates (e.g., physical currency and/or equity and fixed investments that are denominated in a currency). As the value of these other holdings are not reflected in the above exposure figures, the table does not reflect the Fund’s total currency exposure.

LONG SHORT NET
Consumer Discretionary 2.54% (2.11%) 0.43%
Consumer Staples 1.09% (0.54%) 0.55%
Energy 0.54% (0.28%) 0.26%
Financials 4.99% (3.93%) 1.07%
Health Care 5.50% (2.24%) 3.26%
Industrials 0.70% (0.93%) (0.23%)
Information Technology 3.66% (2.58%) 1.08%
Materials 0.13% (0.24%) (0.11%)
Real Estate 0.72% (0.31%) 0.41%
Communication Services 0.94% (0.47%) 0.48%
Utilities 0.80% (0.06%) 0.74%
Index* 5.75% (5.04%) 0.72%
Unclassified** 14.89% -0.00% 14.89%
Total 42.25% (18.72%) 23.54%

Data as of October 31, 2020

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

**Comprised of index futures, options on index futures, ETFs, and ETF options

***Do not have a GICS sector assign

Data as of October 31, 2020

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Positions of unknown type (if any) are excluded from exposure data. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

Ratings are presented as an equally weighted composite of rating provided by the following rating agencies: Standard & Poor’s (“S&P”), Moody’s Investor Service, Fitch, Kroll Bond Rating Agency, and Morningstar. Please note that other ratings agencies may offer ratings that vary from those for securities currently represented as “Investment Grade” or “Non‐Investment Grade.” Investment grade is a rating of a bond that has a relatively low risk of default. For S&P, “Investment Grade” bonds are those rated above BBB‐ and “Non‐Investment Grade” bonds are rated below Investment grade to D. “Not Rated” securities generally include securitizations where the issuer did not request a rating. “Non Ratable” securities includes index products and select government instruments.

Portfolio Managers

Blackstone seeks to add value through top-down strategy
selection and bottom-up manager evaluation.

Literature and Multimedia Content

BXMIX Highlights
Fact Card
Monthly Exposure Reports
Quarterly Commentary

BXMIX Sub-Adviser Profiles
BXMIX June Fund Update
BXMIX September Fund Update
BXMIX Areas of Opportunity

Fund Documents and Public Filings

Investor Material

Summary Prospectus
Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Annual Proxy Voting Report
SEC Filings
Information Statements
2020 Year-End Distribution Notice
2019 Year-End Distribution
Form 5500

Corporate Governance

Privacy Notice
Whistleblower Policy
Audit Committee
Nominating Committee Charter

Important Risks

This page is not an offer to sell the Fund’s securities and is not soliciting an offer to buy the Fund’s securities. All investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. All investors are urged to carefully read the prospectus and summary prospectus in their entirety before investing.

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All returns include dividend and capital gain distributions. The price information contained herein is estimated and unaudited and subject to change.

There can be no assurance the Fund will achieve its objectives or avoid significant losses. You can receive additional information about the Fund by calling 855-890-7725 or by contacting your BAAM representative.

An investment in BXMIX, should be considered a speculative investment that entails substantial risks; you may lose part or all of your investment or your investment may not perform as well as other investments. BXMIX’s investments involve special risks including, but not limited to, loss of all or a significant portion of the investment due to leveraging, short-selling, or other speculative practices, lack of liquidity and volatility of returns. The following is a summary description of certain additional principal risks of investing in BXMIX: Allocation Risk – Blackstone’s judgment about the attractiveness, value or market trends affecting a particular asset class, investment style, sub-adviser or security may be incorrect and this may have a negative impact upon performance. Derivatives Risk – the use of derivatives involves the risk that their value may not move as expected relative to the value of the relevant underlying assets, rates, or indices. Derivatives can be subject to counterparty credit risk and may entail investment exposure greater than their notional amount. Distressed Securities Risk – investments in securities of business enterprises involved in workouts, liquidations, reorganizations, bankruptcies and similar situations involve a high degree of risk of loss since there is typically substantial uncertainty concerning the outcome of such situations. Event-Driven Trading Risk – involves the risk that the specific event identified may not occur as anticipated and that this may have a negative impact upon the market price of the securities involved. Foreign Investments/ Emerging Markets Risk – involves special risks caused by foreign political, social and economic factors, including exposure to currency fluctuations, less liquidity, less developed and less efficient trading markets, political instability and less developed legal and auditing standards. High Portfolio Turnover Risk – active trading of securities can increase transaction costs (thus lowering performance) and taxable distributions. Model and Technology Risk – involves the risk that model-based strategies, data gathering systems, order execution and trade allocation systems and risk management systems may not be successful on an ongoing basis or could contains errors, omissions, imperfections or malfunctions. Multi-Manager Risk – managers may make investment decisions which conflict with each other and as a result, the Fund could incur transaction costs without accomplishing any net investment result. Leverage Risk – borrowing money or engaging in transactions that create investment leverage can produce volatility and may exaggerate changes in the net asset value of Fund shares. Conflicts of Interest Risk: Blackstone and the Sub-Advisers have conflicts of interest that could interfere with their management of the Fund. These conflicts, which are disclosed in the Fund’s Statement of Additional Information, include, without limitation:

The foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice. If you are an individual retirement investor, contact your financial advisor or other fiduciary unrelated to BAIA about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.


References to BAAM refers to Blackstone Alternative Asset Management L.P., the largest (by AUM) investment manager in Blackstone’s Hedge Fund Solutions Group. Blackstone Alternative Investment Advisors LLC (“BAIA”), the investment manager for BXMIX, shares employees, facilities and processes with BAAM.

Important Disclosures Regarding Index Comparisons: Indices are provided for illustrative purposes only and have not been selected to represent benchmarks for the Fund, but rather are disclosed to allow for comparison of the Fund’s performance to that of well-known and widely recognized indices. The indices may include holdings that are substantially different than investments held by the Fund and do not reflect the strategy of the Fund. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics that may differ from the Fund. The indices do not reflect the deduction of fees or expenses and you cannot invest directly into an index. In the case of equity indices, performance of the indices reflects the reinvestment of dividends. Index data is obtained from unaffiliated third parties and is subject to subsequent adjustments. Blackstone makes no assurances as to the accuracy or completeness thereof.

Market indices obtained through Bloomberg, HFR Asset Management, MSCI and Morngingstar, as applicable. Bloomberg Barclays Global Aggregate Bond Index: a flagship measure of global investment grade debt from twenty‐four local currency markets. This multi‐currency benchmark includes treasury, government‐related, corporate and securitized fixed‐rate bonds from both developed and emerging markets issuers. HFRX Global Hedge Fund Index: is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies falling within four principal strategies: equity hedge, event driven, macro/CTA, and relative value arbitrage. Strategies are asset weighted based on the distribution of assets in the hedge fund industry. MSCI World TR Index: a market capitalization weighted index designed to provide a broad measure of large and mid‐cap equity performance across 23 developed markets countries. Morningstar Multialternative Category: represents the average performance of mutual funds categorized as “multialternative” funds by Morningstar, Inc. These funds use a combination of alternative strategies such as taking long and short positions in equity and debt, trading futures, or using convertible arbitrage, among others.

Prepared by Blackstone Securities Partners L.P., a member of FINRA and an affiliate of Blackstone Alternative Investment Advisors LLC, the investment adviser of the Fund.