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Think Differently About Income

As we enter a new market regime, investors are faced with unprecedented challenges. Investors and asset managers alike need to think differently about how they are investing for income.

Three investor challenges in their search for income

Low-cost-tag
Likely turn in Fed policy in 2024
“Risk-free” cash trade has a risk: reinvestment risk. For investors facing near-term obligations or with cash flow needs, it is critical to secure sources of liquidity.
volatile volcano
Greater macro and market volatility
Greater dispersion of returns call for an active approach to managing portfolios
momentum
Markets are constantly changing
One-and-done strategies may no longer work in the future

Thinking Differently About Income

We therefore need to think differently about how we are investing for income.
Ratio Percentage
Focus on generating higher income
low votality
Use volatility to your advantage
choice-arrows
Stay nimble and be diversified
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Why Global FI

01

Yields at decade highs with opportunities across the board

Nearly 75% of fixed income markets yield above 4% vs. less than a quarter at start of 2022.

02

Flexibility to adapt to changing markets

Active sector and security selection allows investors to take advantage of attractive income opportunities.

03

Portfolio protection

Global investment grade bonds provide investors with high quality exposure which may protect total portfolio returns during volatile markets.

Why equity income

01

Economic normalization, returns are expected to broaden out

Global equity exposure provides an opportunity to capture returns across global markets

02

Flexibility to navigate changing market dynamics

A systematic approach remaining nimble in harnessing alpha opportunities and managing risk

03

Reaching for yield

Systematic global equity high income strategy is well positioned to capture income opportunities amidst heightened volatility

Featured funds

BlackRock Systematic Global Equity High Income Fund
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Multi-asset income

01

Being overly defensive can be costly

There are significant opportunity costs to being too defensive. Income plus total return potential exists across many markets today.

02

Rate hiking cycle is expected ending

Many yield assets lagged in 2023, namely dividend stocks and quality bonds, but a Fed on hold could provide an additional boost to income markets.

03

Manage risks through diversification

Diversifying across a broad range of asset classes can help manage volatility. Multi-Asset Income could help balance upside/downside risks while providing competitive income.