BGF Systematic Global Equity High Income Fund | BlackRock

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A new approach to income

BlackRock Systematic Global Equity High Income Fund

IMPORTANT INFORMATION:

i. BlackRock Systematic Global Equity High Income Fund seeks to generate a high level of income. The Fund invests globally, with no prescribed country or regional limits, at least 70% of its total assets in equity securities.

IMPORTANT INFORMATION:

i. BlackRock Systematic Global Equity High Income Fund seeks to generate a high level of income. The Fund invests globally, with no prescribed country or regional limits, at least 70% of its total assets in equity securities.

ii. The Fund’s investments in equities could incur significant losses due to higher fluctuation of equity values. The Fund’s income - generating investment strategy may reduce the potential for capital growth and future income of the Fund.

iii. The Fund is subject to currency risk, emerging market risk, foreign investments restrictions risk, small-cap companies’ volatility and liquidity risks and currency conversion risk including Renminbi denominated Classes.

iv. Class 5(G) Shares pay dividends gross of expenses. Class 6 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Class 11 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Dividends may exceed the share class’s realized total return and can be paid wholly or substantially out of capital, effectively returning part of the investor’s original investment. Class 8 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion and include interest rate differentials arising from share class currency hedging. Negative interest rate differentials may decrease the dividends paid. Paying dividends gross of expenses may result in more income being available for distribution; however these shares may effectively pay dividends from capital – may amount to a partial return or withdrawal of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.

v. The Fund may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The Fund may suffer losses from its derivatives usage. Investment in covered call options may limit potential gains on the underlying assets, which may adversely affect the Fund’s value.

vi. The value of the Fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.

vii. Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors.

Why invest in the BlackRock Systematic Global Equity High Income Fund?

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Targets high and consistent income

Access high-income potential from a blend of quality dividend-paying stocks and premiums from covered calls.

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Harnesses the power of AI

Uncover smarter investment ideas from a systematic approach that combines AI, big data and human intellect for greater insights.

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Manages for lower risk

Add resilience with a Fund that delivers lower volatility than its peers¹ and takes advantage of market shifts.

Consistency. Technology. A world of opportunity. In today’s uncertain markets, it’s time to think smarter about income.

When markets fluctuate, income strategies may offer a steadier stream of returns - helping to smooth the ride and keep your portfolio on course.

When most investors hear “income” they think of bonds, but dividend-paying equities can be a powerful alternative - especially during periods of volatility.

The challenge is identifying the right dividend payers and timing them. Payouts vary widely across companies, industries and countries. But this seasonality creates opportunity, and here’s where smarter income comes in.

Our systematic approach harnesses forms of artificial intelligence and big data to evaluate a global universe of over 3000 stocks – analysing thousands of predictive signals to score companies on dimensions such as quality and sentiment. We dynamically rotate across securities to align with regional dividend seasons, aiming to capture the highest payouts available.

In times of uncertainty, don’t let volatility be your guide. Stay invested with a systematic diversified global equity approach, capturing income opportunities that others might miss.

Why now for smarter income?

Anthony Kruger, Senior Investment Strategist, shares how BlackRock’s systematic equity income strategy harnesses AI and big data to uncover global dividend opportunities.

An award-winning solution

BlackRock has been recognized as Highly Commended - Income Equity² for the BlackRock Systematic Global Equity High Income Fund

Fund performance Fund performance

Transforming how we see the world

Just think about how much data is out there and how it escalates rapidly. In 2024, Amazon.com saw 2.57 billion visits on average per month, while Alibaba generated over US$74billion in e-commerce sales. And every minute of every day, we have about 97 million WhatsApp messages, and 500 hours of new videos on YouTube. And it goes on.

The funny thing is, we don’t just want data or information. Instead, we want to know what it all means, why it matters to us, and to be able to use the insights we have to predict outcomes

At BlackRock, our systematic investing platform has been doing this for over 35 years with a track record of innovation, creativity and reinvention. Our diverse team of 200+ financial professionals, academics and data scientists, blends the best of humans and machines to unlock new ways to generate differentiated outcomes

They harness cutting-edge technology such as AI and machine learning to review 800-plus data signals, assessing the fundamentals, sentiment, macro, and ESG characteristics of thousands of securities, at scale, and on a daily basis. They can then analyze and combine traditional inputs along with unconventional data sources in faster and more effective ways than any human could ever do.

So, how does this work in the real world?

Since 2007, we have been using natural language processing techniques to capture local text in the form of regulatory filings, news articles, broker reports, social media updates, and other sources to gather timely, nuanced views about a company’s outlook at scale

For example, our model can identify early investment signals by using sentiment analysis, tracking the number of positive and negative words included in a document, and assigning an overall sentiment score based on word counts.

Our approach also constantly evolves. We now apply transformer-based large language models like ChatGPT. These can process long sequences of elements – such as words in a sentence – accounting for the relationship between each individual word with other words, and focusing on the most important points.

And language is not a barrier as we can read text with 7 major languages, which allows us to get local context.

Another source of AI-led alpha might come from the physical world. Here, we can use AI as a tool to compile and analyze location-specific data – such as GPS signals from cell phones, and more to track consumer traffic. Or we can track trucking routes across a country, based on a view that heightened traffic may be a proxy for increased company fundamentals like future sales.

AI and data availability also allow us to better understand corporate intentions and macro dynamics. For example, in the US we tracked millions of online job postings to gauge the health of a company or to target future growth areas based on the skill-sets in demand. The rate of hiring can also be a proxy for activity at the company, industry, or country level.

Yet despite this outlook, machines will not take over. Human input and analysis is a critical component, and fundamental and classic information still have a major role to play. We call this a human-machine-team approach to investing.

Investing evolved

Harness systematic investing for a new approach to income

Systematic investing, or quantitative investing, combines insights from huge quantities of data, human expertise, and advanced computer modelling. By using a systematic approach, we can evaluate companies and their profitability more effectively and forecast stock and income returns more accurately.

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