Blackstone plans to close a fund that exposes investors to a variety of hedge funds and trading strategies after assets fell almost 90% in four years, the Financial Times reported on Tuesday.

The US.-based asset manager told investors that Blackstone Diversified Multi-Strategy fund will close at the end of the year, the newspaper reported, citing Blackstone.

The fund reported a 2% decline in returns from the beginning of 2020 until the end of last month, the report said, quoting investor documents.

"This is a small, legacy fund. We are in talks with clients to move their capital to newer strategies that offer greater flexibility than the current structure allows," FT quoted Blackstone as saying.

Blackstone did not immediately respond to a Reuters request for comment.

(Reporting by Anirudh Saligrama in Bengaluru; Editing by Dhanya Ann Thoppil)