A new approach to income
BlackRock Asian Multi-Asset Income Fund
Broader perspectives, built with precision
The big question that clients are asking me today is, “How do multi-asset strategies weather market volatility?”
Hi, I'm Justin Christofel, portfolio manager and Co-Head of the Multi-Asset Income team here at BlackRock.
2025 has started out in a much more volatile and uncertain fashion and now we're seeing investors look more toward diversifying multi-asset strategies to help them navigate these uncertain times.
A multi-asset approach has the dual benefit of being able to invest across a broad global opportunity set, while also being able to dynamically adjust its asset allocation as the opportunity set and risk landscape evolves.
So putting this in today's context, U.S. assets have struggled amidst this market turmoil. With growth likely to be weaker and inflation higher than the consensus expected at the start of the year, we think investors need to reconsider their asset allocation.
This includes emphasizing quality dividend payers, shifting more exposure into non-U.S. equities, staying cautious on long-term interest rates, and leaning into select credit exposures where yields are relatively more attractive.
Ultimately, this market environment can leave investors feeling paralyzed. However, we think a diversified opportunity set and willingness to adapt provide multi-asset investors the right toolkit to navigate today's market
Moreover, having a portfolio that derives a greater portion of the total return from income may insulate investors from the harshest price swings that may be a feature of the investment landscape this year.
How do multi-asset strategies weather market volatility?
Portfolio Manager Justin Christofel shares how dynamic, income-focused multi-asset strategies may offer the flexibility needed for today’s market turbulence and uncertainty.
Why Asia?
Asia is emerging as a bright spot in a complex global landscape. Amid market turbulence, Asian assets have shown resilience – supported by a favorable macroeconomic backdrop, policy divergence from developed markets, attractive valuations, and strong earnings potential across asset classes.
4.5%
GDP growth forecast for Asia ex-Japan in 2025
Compared to just 1.5% in the U.S. and 1.3% in developed markets, Asia’s growth trajectory offers a compelling long-term story.1
14.3
P/E ratio for Asia ex-Japan equities
This compares to 22.6 in the U.S., highlighting Asia’s relative value and upside potential.2
13%
Earnings growth forecast for Asia ex-Japan stocks
A strong signal of corporate health and forward momentum.3
9.5%
Yield for Asian High Yield bonds
Higher than the 7.1% yield offered by U.S. High Yield bonds, making Asia a compelling destination for income-seeking investors.4
4.2
Years
Average duration for Asian Investment Grade credit
Average duration for Asian Investment Grade credit
For a similar level of yield, this compares favorably to 6.6 years for U.S. corporate IG debt, offering reduced interest rate sensitivity.5
Seize the flexibility of multi-asset investing for a new approach to income
Multi-Asset income strategies can adapt to fast-moving markets by dynamically flexing across asset classes to capture emerging opportunities and navigate changing conditions with confidence.
By including an options overlay, funds such as the BlackRock Asian Multi-Asset Income Fund seek to deliver higher-income potential while weathering difficult markets.
