SINGAPORE (Oct 29): Concerns about rising interest rates and slowing growth have taken a toll on global equity markets this year. And, amid the turmoil, funds with non-traditional investing strategies are gaining a higher profile. 

Among them are BlackRock’s BGF Dynamic High Income Fund A6 SGD Hedged and BGF Global Multi-Asset Income Fund A6 SGD Hedged. Both funds seek to generate high levels of income from a variety of asset classes, including covered call writings, floating rate loans and mortgaged-backed securities (MBS). As at September, the former’s portfolio comprised equities at 6%, covered call writing at 25%, floating rate loans at 7% and MBS at 8%, while the latter’s portfolio comprised equities at 15%, covered call writing at 15%, floating rate loans at 9% and MBS at 10%.

The biggest exposure for both funds by asset type is fixed-income assets, largely in the US. These fixed-income assets mainly have a credit rating within the range of BBB/BB/B. In terms of biggest exposure by geography, North America is the largest at 59%, followed by Europe at 22% and emerging markets at 12%.

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