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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

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Higher inflation can eat away at your savings
Inflation in the OECD rises to 10.3% in June 2022 as food and energy prices continue to pick up.1
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Elevated uncertainty is leading to more volatility
CBOE VIX Volatility index’s average closing price in 2022 is up 30.4% from 2021.2 This implies that market views will change more regularly or get more granular.
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Markets are constantly changing
The return of traditional 60/40 portfolios in 2022 was down 15.85%.3 What worked in the past, may not work in the future.

Think Differently About Income

We therefore need to think differently about how we are investing for income.
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Focus on generating higher income
low votality
Use volatility to your advantage
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Stay nimble and be diversified
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Why Asian Bonds

01

Relatively attractive yields

Asian credit continue to generate higher risk-adjusted yields than global counterparts.4

02

Relatively stable macro-economic fundamentals in Asia

Macroeconomic fundamentals remain encouragingly resilient in Asian credit with an improving upgrade-to-downgrade ratio and a moderating default rate.5

03

China is fast-tracking a return to economic normalcy

The combination of reopening plus more supportive policy means China is likely to enjoy a growth spurt this year6.

BlackRock China Bond Fund

Unleash the potential of China bonds
Unleash the potential of China bonds BlackRock China Bond Fund

Why Multi-Asset

01

Broadens opportunity set to find compelling income

With the challenging market events in recent months, tapping into multiple sources can help deliver income.

02

Manage risks through diversification

Diversifying across a broad range of asset classes can help manage volatility.

03

Flexibility to adapt to changing markets

Investors must be ready to adapt to ongoing inflationary pressures, growth concerns, and market volatility.

BlackRock Dynamic High Income Fund

Consistently seeking high income in an inconsistent world
Rainbow colored threads through needle eyelet, symbolizing diverse income sources

Why Global Bonds

01

Structural demand for income persists

Fixed income yields have bounced back after two decades of lows, with the most attractive income opportunities lying in high-quality credits such as Euro and US investment grade corporates7.

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

Beneficiaries of higher rates

With higher interest rates likely in the short and medium term, we see attractive dividend payers whose business models directly benefit from higher interest rates, such as financials.

02

Focus on quality businesses

Our equity income strategies focus on quality dividend paying companies with attractive valuations to deliver attractive and reliable dividend yield. Incorporating valuation has historically led to superior returns, with the top 20% of the HOLT quality universe recording 15.4% annualized return.8

03

Resilience dividend payers

Dividend-paying companies have historically weathered diverse market conditions better over the long term, returning 10.9% vs 7.4% for non-dividend payers since 1978.9

BlackRock Systematic Global Equity High Income Fund

Targeting a high income at lower volatility versus traditional global equity portfolios
Rainbow colored threads through needle eyelet, symbolizing diverse income sources

Why Real Assets

01

Diversifying returns

Diversify portfolio returns, with traditional real estate and infrastructure delivering liquidity, immediate exposure and inflation-hedging potential.

02

Megatrends driving real asset space

We see technology, urbanization and climate change as powerful, transformative forces that impact the global economy, business and society – influencing our investment decisions.

03

Fast growing alternative investment

Real estate investments are physical assets such as offices, data centres and self-storage spaces with clearly defined earnings and income.

Our recent accolades

It’s our honour to be awarded across asset classes and strategies in service to your investing needs

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Why BlackRock for Income?

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Breadth of Expertise
Our market access and scale extend across regions, asset classes and investment styles, enabling you to achieve your optimal income allocation.
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Flexible Implementation
We seek to deliver income in various forms. Our funds can fit as a core, satellite or tactical allocation into your portfolio, preferences and investment goals.
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Focus on Risk Management
Our in-house technology and dedicated risk and quantitative analytics teams help mitigate unwanted surprises.

To find out more, speak to any of our partners

 

CIMB Bank Citibank DBS
DollarDEX FSM HSBC
Maybank OCBCbank PhilipsCapital
POSB Standard Chartered SAXO Capital Markets
UOB UOB Kayhian

Please approach your financial advisor for the relevant fund materials, as they may or may not distribute all of the above BGF & BSF Fund(s).