TAP INTO INCOME

BlackRock Systematic Global Equity High Income Fund

Seeks better outcomes, powered by AI and human expertise

The big question we have been hearing from clients is, ‘How can AI help us invest?’

Hi, I’m Rui Zhao, a portfolio manager within BlackRock’s Systematic Active Equity team.

With so many stocks in the global market, it’s extremely difficult for human investors to analyze all the information available from a multitude of sources on their own, and then extract useful insights of all the companies such as the company’s products, profitability, and growth prospects. That is where the benefit of AI come in, and why we have been using it across our systematic platform.

We began using AI back in 2008 - building infrastructure that accumulate all the big data, and train machines to analyze the data.

We assess a universe of five thousand securities every day, constantly advancing our machine learning technique and evolving the signals that we use to generate alpha more effectively.

These signals can help us identify trending products among consumers, such as products recommended by online influencers, and assess investor sentiment from social media posts across different platforms and languages. We can also spot early red flags in company documents exchanged with regulators, which may indicate a potential negative impact on shareholder value.

So by using AI in our investment process, we can strive to better forecast returns and generate consistent income for our clients.

We assess over 3,000 securities every day, constantly advancing our machine learning techniques and evolving the signals we use to identify potential for income and outperformance.

Rui Zhao
Portfolio Manager, Systematic Active Equity, BlackRock
  • 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, securities lending counterparty risk 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 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.

    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?

Paragraph-1
Paragraph-2
Paragraph-3

Achieve consistent income

  • 10+ year record delivering income
  • Analyses huge quantities of alternative and traditional data to forecast stock returns, income returns and dividends more accurately

percent logo

Recent dividend: 7.2% p.a. (A6 USD share class as of 9/30/2024)

(A6 share class aims to pay a dividend on a monthly basis. Dividend Payment is not guaranteed. The Fund may effectively pay dividend from capital. See important information iv)1

Latest 6 months dividend table – A6 USD share class1

Month Annualized yield
9/30/2024 7.16%
8/30/2024 6.95%
7/31/2024 7.13%
6/28/2024 7.12%
5/31/2024 7.28%
4/30/2024 7.46%

Use artificial intelligence (AI) to select stocks more effectively

Technology breakthrough

  • Evaluates 800+ signals to identify income and outperformance opportunities
  • Combines real-time data, AI and human insight to select stocks and invest in higher income, lower risk stocks

Protect returns during market change 

Direction logo

  • Team of 200+ professionals constantly evolve investment approach
  • Uses innovative strategies to take advantage of increased market volatility to earn higher income

An award-winning solution

BlackRock has been recognised as Best Fund Provider - Equity Income2 for the BlackRock Systematic Global Equity High Income Fund

2025 Asian Private Banker Award 2025 Best Fund Provider Income Equity

Using systematic investing to tap into 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.

Powered by AI, the BlackRock Systematic Global Equity High Income Fund aims to deliver low volatility and consistent income for investors.

Transforming how we see the world

Just think about how much data is out there and how it escalates rapidly. In 2022, Amazon.com saw 3.16 billion visits on average per month, while Alibaba generated over US$94 billion 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

Transforming how we see the world

Just think about how much data is out there and how it escalates rapidly. In 2022, Amazon.com saw 3.16 billion visits on average per month, while Alibaba generated over US$94 billion 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

To find out more, please speak to our distribution partners below:

 

The Bank of East Asia Limited China Citic Bank Intl Ltd Dah Sing Bank/ Nom
DBS HK Fubon Bank (HK) Ltd ICBC
iFAST Financial (HK) Limited Nanyang Commercial Bank Ltd OCBC Wing Hang Bank Limited
OnePlatform Asset Management Shanghai Commercial Bank - HK

By clicking on the link provided above, you will enter an independent third-party website which is not owned or endorsed by BlackRock. Any link you make to or from a third-party website will be at your own risk. Any use of the third-party website will be subject to and governed by the terms and conditions of the third-party website before accessing. BlackRock is not responsible or liable for the content or your use of such information on any third-party website. BlackRock does not undertake any liability, responsibility or warrant for the accuracy, legality, or content of a third-party website or for that of subsequent links. In addition, BlackRock disclaims liability for any loss, damage and any other consequence resulting directly or indirectly from or relating to your access to a third-party website.