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DIFFERENT BY DESIGN

Systematic investing

By combining the power of big data, data science, and deep human expertise to modernize the way we invest, systematic investing is unlocking new ways to seek consistent portfolio outcomes amidst a world of unpredictability.

Systematic Investing

In today’s uncertain markets, we all need more predictable investment outcomes.

By combining the power of data-driven insights, investment science, and disciplined portfolio construction to modernize the way we invest, systematic investing is unlocking new ways to seek consistent outcomes amidst a world of unpredictability.

Systematic investing begins with data-driven insights. 

In the digital age, we have access to vast amounts of data, from traditional sources like company financial statements and economic reports to more complex unstructured sources like company news stories, web traffic, social media sentiment, consumer geo-location data and even satellite imagery.

By harnessing highly sophisticated analytics techniques like machine learning and artificial intelligence, we transform this sea of raw data into useful investment information—providing insights faster, at greater scale, and with more granularity than traditional methods.

Next, we deploy rigorous scientific testing to learn if these investment insights actually have the potential to help forecast future returns.

This process includes a comprehensive examination of empirical evidence by seasoned investment experts—testing different combinations of variables and comparing the results to known outcomes. This ability to validate insights means portfolio decisions are firmly evidence-based and not dependent on human conviction alone.

Finally, when an insight is shown to be valuable, we employ a disciplined portfolio construction process to implement it. Our investment experts use computers to model the many complex trade-offs involved—finding a balance between expected return, risk, correlation and cost—to guide any allocation decisions.

At every step, the systematic process is designed to help deliver more targeted investment outcomes

Whether it’s seeking risk-managed growth through equities… generating income and maintaining ballast with bonds… integrating sustainability and ESG insights into portfolios… or accessing new sources of diversification and return with alternative strategies…

Systematic investing is unlocking new ways to navigate a world of uncertainty. 

What is systematic investing?

Systematic investing, often called quantitative investing, is an investment approach that emphasizes data-driven insights, scientific testing of investment ideas, and advanced computer modelling techniques to construct portfolios.

Different by design

The quantitively-driven process of systematic investing expands what is possible when investing—from searching for investment insights, constructing portfolios, seeking to ultimately delivering more targeted outcomes to investors.
Tech breakthrough
Human X Machine
Fundamentally sound investment ideas are validated by quantitative testing—amplifying human decision making but keeping behavioral bias in check.
Choice
Engineered for Scale
Technology-driven process helps scale investment insights across vast sets of securities—creating highly diverse portfolios while minimizing hidden concentration risks.
Risk management
Robust risk management
Employing our own innovations and technology in seeking to manage risk and generate consistent results over the long term.

BlackRock Systematic Global Equity High Income Fund

Targeting a high income at lower volatility versus traditional global equity portfolios

Your investment portfolio is like your body – you need to build up your muscle endurance to cope with challenges that the market or life may throw at you.  Many investors face three major market challenges:

low interest rates across bond markets, making it hard to find attractive income; rising inflation eroding real returns; and increased market volatility making asset allocation more challenging.

BlackRock Systematic Global Equity High Income Fund combines the power of big data and deep human expertise to enhance your portfolio in three different ways: increase income opportunities; use systematic active approach in stock selection; effective risk management to reduce volatility

We look to deliver income from quality dividend paying global equities and earning premium through our index option overwriting strategy.  There’s also the potential to capture capital growth as global economy recovers.

By using big data, our proprietary systematic active approach can analyze more than 3,000 global equities on a daily basis, incorporating innovative signals into the investment process to provide insights and predict returns. 

We also use machine learning and artificial intelligence to analyze rich sets of information, including companies’ earnings announcements and social media feeds, helping us assess market sentiment and in predicting long-term shifts in company fundamentals.

We seek to find a good balance between return, risk, cost, yield, and volatility and will continue to review and optimize the Fund’s portfolio to identify new investment opportunities.

Risk management is at the heart of what we do and our proprietary risk management tools have helped the Fund deliver lower volatility than its peers over 1, 2, 3 and 5 years.

By bringing all three of these together, BlackRock Systematic Global Equity High Income Fund aims to help enhance your portfolio with potential higher income and capital growth throughout market cycles.

Income icon
Targeting to deliver a high income
Sources income from equity dividends and an index options covered call strategy.
Human and machine icon
Integrating human insights, big data and machine learning
Stocks are selected using a research-driven, technology-led approach designed to better predict future stock returns and dividends.
Voltality icon
Low volatility through flexible management of beta
Seeks to deliver a higher yield at a lower volatility relative to global equities with the potential to achieve capital upside.

Why BlackRock?

01

Empowered by data and technology

We use vast datasets and technological innovation to find investment insights amidst market complexity.

02

Guided by science

We vigorously test and validate ideas through a deliberate scientific method to continuously refine and redefine our approach.

03

Enlightened by experience

We draw on 35 years of experience, augmented by intellectual curiosity and diverse thought, to inform our investment process every step of the way.

To find out more, speak to any of our partners