BONDS / FIXED INCOME

Multi-Asset Income

Jan 15, 2023

A go-anywhere income solution

Improve your income potential with a tactical, unconstrained strategy that sources opportunities across geographies and asset classes. BlackRock Multi-Asset Income Fund takes a risk-first approach while seeking to deliver a consistently attractive yield.

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Performance and positioning update

  • Strong employment and resilient growth data sparked concerns the U.S. Federal Reserve (“Fed”) may need to maintain tighter policy for longer, weighing on markets. The fund delivered a negative return.
  • We modestly reduced risk during the month. The rally seen earlier in the quarter left risk positioning exposed to potential downside, in our view, and we wanted to close the year with more conservative positioning. We reduced exposure to U.S. equities, covered calls, and high yield bonds. We tactically increased duration given the back up in yields offered diversification benefits.

View fund commentary

 

The fund has delivered higher yield than global stocks or bonds

mai monthly

Source: Morningstar. Data as of 12/31/22 since strategy inception (11/28/11). Fund data based on Institutional share class. Other share classes will vary. Average fund yield shown is 30-day SEC yield as of 12/31/2022: 5.91% (subsidized); 5.80% (unsubsidized). Core bonds represented by Bloomberg U.S. Aggregate Bond Index. Global equities represented by MSCI World Index. Past performance is no guarantee of future results. Index performance shown for illustrative purposes. It is not possible to invest directly in an index. Must be preceded or accompanied by a prospectus.

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Michael Fredericks
Head of Income Investing for BlackRock Multi-Asset Strategies & Solutions
Michael Fredericks, Managing Director, is head of Income Investing for the BlackRock Multi-Asset Strategies & Solutions group and lead portfolio manager for a global ...

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Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to blackrock.com for most recent month-end performance.

To obtain more information on the fund, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit Multi-Asset Income Fund.

The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.