Why now for the
Multi-Asset Income Fund?

Insights from the portfolio manager’s office

May 24, 2017 / by Michael Fredericks

May 18, 2017

Michael Fredericks discusses outlook for income generating assets and why now may be the time to consider a globally diversified income strategy that carefully balances the trade-offs between yield and risk.

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    Question: Why now for the Multi-Asset Income Fund?

    Michael Frederick: While a lot has changed over the course of the last nine months, the challenges facing investors have not. Interest rates remain low, and global growth continues to be challenged. A low return environment coupled with reflation being observed throughout the world is an ideal environment for the Multi-Asset Income Fund. Our portfolio is globally diversified and derives the majority of its return from income-paying asset classes. Therefore, we are not as reliant on changes in price to make money for clients.

     

    Question: What is your outlook for the markets and income generating asset classes?

    Michael Frederick: We are optimistic about the improving fundamentals of the global economy. However, there is no doubt that geopolitical risks loom. Given the current landscape, we think income paying assets are well-positioned to contribute meaningfully to portfolios. We are however concerned about how much optimism is priced into the market today. Finding cheap assets continues to be a challenge. As we’ve always done, we will be very careful and tactical about where we invest client assets.

     

Michael Fredericks
Head of Income Investing for BlackRock Multi-Asset Strategies group
Managing Director, Head of Income Investing for the BlackRock Multi-Asset Strategies group and lead portfolio manager for the Multi-Asset Income product suite.