Blackstone Inc. · NYSE:BX
Blackstone — Investor Presentation (June 2018)
13 slides from Blackstone's investor presentation, Jun 28, 2018
Slide 1: A floating-rate portfolio that seeks to deliver attractive income
A floating-rate portfolio that seeks to deliver attractive income An investor should consider the investment objective, risks, and charges and expenses of the Fund carefully before investing. The prospectus contain this and other information about the Fund and may be obtained by visiting www.bgfrei.
Slide 2: Why BGFREI?
Why BGFREI? An income-oriented strategy targeting floating rate senior loans with demonstrated low sensitivity to rising rates Income Generation Resilient to Rising Interest Rates ● BGFREI seeks to provide income primarily from floating ● Given their floating rate nature, senior loans typically
Slide 3: Income with Low Sensitivity to Rising Rates
Income with Low Sensitivity to Rising Rates Floating rate senior loans may provide attractive yields with little or no duration 1 FLOATING RATE SENIOR LOANS VS. SELECT FIXED INCOME ASSET CLASSES Yield and Duration • Floating rate senior loans, unlike traditional fixed income investments, typically h
Slide 4: In periods of rising rates, floating rate senior loans outperformed traditional fixed income
In periods of rising rates, floating rate senior loans outperformed traditional fixed income FLOATING RATE SENIOR LOANS PROVED MORE RESILIENT IN PERIODS OF RISING RATES THAN TRADITIONAL FIXED INCOME1 Returns and Risk for Senior Loans and Traditional fixed income Trailing 25 Years as of December 31,
Slide 5: Why Floating Rate Senior Loans?
Why Floating Rate Senior Loans? Floating rate senior loans are generally defensive as they occupy the senior-most position in a company’s capital structure Senior Secured Debt (Floating Rate Senior Loans) Senior loans (also referred to as leveraged loans or bank loans) are so named because they sit
Slide 6: Portfolio Diversifier
Portfolio Diversifier Floating rate senior loans have low correlation to traditional fixed income CORRELATION TO BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX Trailing 20 Years as of December 31, 2017 • The relatively low correlation of floating rate senior loans to traditional fixed income investmen
Slide 7: Incorporating floating rate senior loans may create a more efficient fixed income portfolio
Incorporating floating rate senior loans may create a more efficient fixed income portfolio ENHANCING RETURN PROFILE BY INCLUSION OF FLOATING RATE SENIOR LOANS Hypothetical Portfolio: Trailing 15 Years Ending December 31, 2017 • With low correlation to most traditional debt securities, and a high co
Slide 8: Why Interval Funds?
Why Interval Funds? An interval fund is a type of investment company that periodically offers to repurchase its shares from shareholders A structure that aligns better with the underlying Interval Funds may offer benefits relative to mutual liquidity of the asset fund and closed-end structures DAYS
Slide 9: Why Blackstone / GSO?
Why Blackstone / GSO? Blackstone is one of the leading alternative investment firms, and GSO is one of the world’s largest credit managers $107B In below-investment grade AUM1 Customized Credit Alternative Strategies (Long Only) Investment Funds $40B $67B ~1,000 Compelling synergies below-investment
Slide 10: Same people, same process
Same people, same process Scale + Insight + Investment Expertise Breadth Focus Investment expertise and market insight across Solely dedicated to below investment public and private, large and small companies, grade corporate credit senior and subordinated debt ~ 340 20 Professionals globally1 Years
Slide 11: Key Terms
Key Terms BGFREI is an interval fund focused on providing attractive current income with low sensitivity to rising rates. The Fund expects to invest at Product least 80% in floating rate loans, notes, or bonds, which is anticipated to be primarily senior loans Class T: BGFTX Symbol Class D: BGFDX Cl
Slide 12: Important Information and Risk Factors
Important Information and Risk Factors There can be no assurance that the Fund will achieve its investment objectives. Investment Strategies: Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in floating rate instruments. “Managed Assets” means net assets plus t
Slide 13: Important Information and Risk Factors (Cont’d)
Important Information and Risk Factors (Cont’d) In general, the secondary trading market for Loans is not fully-developed. No active trading market may exist for certain Loans, which may make it difficult to value them. Illiquidity and adverse market conditions may mean that the Fund may not be able