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“3 Things You Need to Know + 1 You Don’t!”
The 3+1 Active Investors Series is BlackRock’s weekly investor video franchise, created to start your week with insights from the voices shaping markets. Featuring the firm’s leading active investors, each episode highlights three perspectives on what’s driving markets today.

BlackRock | 3+1 Series
FC2 062226
Episode 109B: James Turner

Mmm. The seagull has babies outside. It has babies.

Good morning. I'm James Turner, head of global fixed income for EMEA at BlackRock. It's the
week of June the 29th. Here are three things you need to know. And one, you don't.

First up.
We haven't seen rates like this for decades in Europe. For a long time, you had to take almost
excessive risks to find the right type of yield. Now we're in a position where we have higher
rates that exceed inflation, and that's generating real income for investors. If you look at bonds
in the 3 to 5 year range, that's where we see most value. We don't have the volatility you get
from taking duration because of the European fiscal deficit in many of the countries.

Number two.
The dispersion in that credit market leads to opportunities, because not all sectors and
companies are performing equally. For example, the banking sector has some very positive
dynamics at the moment. So certainly a sector that we like to invest in. But it doesn't mean all
companies within that sector are going to be companies that we're happy with. It's a matter of
being very careful with our credit selection and picking those best in class companies within the
sectors. And it's that kind of deep research that leads to being able to generate alpha in our
portfolios.

Which brings us to...
The AI expansion we've certainly seen some issuance into the European credit markets in
European currencies to fund some of this CapEx. The other element of the AI expansion is the
fixed income market. It’s the effect that this use of technology will have on companies that
aren't necessarily technology companies, but they’re users of AI to make their businesses
more productive and more efficient.

And the one thing you don't need to know…
I've always been a huge rugby enthusiast ever since I started playing at school. This is the
shirt that I still have from it in 1992. [Hot Take:] Rugby is the ultimate team sport. To win and
lose as a team, you need to do TCUP, a very British phrase, that stands for thinking clearly
under pressure. And that's not dissimilar to investment management, where you're having to
make those right decisions continually under pressure.

To get more 3+1 and stay up on everything you need to know, and some things you don't,
make sure to follow us on LinkedIn and YouTube. We'll see you next week.

3+1 Episode 9: James Turner

In this episode of 3+1, James Turner, Head of Global Fixed Income for EMEA, shares what he's watching across European fixed income markets. He discusses the return of real income opportunities, why dispersion in credit markets is creating opportunities for active investors and how AI could drive productivity gains across industries.

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BlackRock | 3+1 Series 
Transcript: FC2 061726 
Episode 108: Rich Mathieson

Alright!

Good morning, everyone. I'm Rich Mathieson, portfolio manager for BlackRock’s systematic equity business. It’s the week of June 22nd. And here are three things you need to know and one you don’t.

First Up. We have a definite divergence between the AI trade beneficiaries— the build out of data centers, semiconductors, energy transmission networks, versus consumer expenditure. When we look across the consumer complex we see evidence of declining real spending power. We see the outlook on both defensive and discretionary securities, being a lot more of a challenge than any areas that are exposed to the themes of the AI trade.

Next Up. Deep analysis of data that gives us a sense for customer, supplier, competitor relationships, has enabled us to position portfolios for the broadening of the AI trade further down the supply chain, and moving from US to global equity markets. Some of the best contributors to performance on our global portfolios this year, tech names in areas like Europe, Japan, Taiwan and Korea. Those linkage insights have enabled us to capture the beneficiaries of that rotation. 

Which brings us to. In the world where bonds and equities are often moving together, we can generate a return stream that is uncorrelated to traditional asset classes. Whether equity markets are going up or down, as long as the long side of our portfolio is doing better than the short side and outperforming, we should expect a positive return. Any capability that can produce a genuinely diversifying return stream is going to be very, very valuable in client portfolios.

And the one thing you don't need to know. Basketball was my main sport. We had a very very good school team. So obviously embracing American sport. I did offer my services to the local team here, but in 2016 they definitely did have a very very good point guard by the name of Mr. Curry. So they declined and that was why I’ve been doing systematic investing here in San Francisco for the last 10 years 
To get more 3+1 and stay up on everything you need to know, and some things you don’t… Make sure to follow us on LinkedIn & YouTube. We’ll see you next week.

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BlackRock | 3+1 Series 
Transcript: FC2 061726 
Episode 108: Rich Mathieson

Alright!

Good morning, everyone. I'm Rich Mathieson, portfolio manager for BlackRock’s systematic equity business. It’s the week of June 22nd. And here are three things you need to know and one you don’t.

First Up. We have a definite divergence between the AI trade beneficiaries— the build out of data centers, semiconductors, energy transmission networks, versus consumer expenditure. When we look across the consumer complex we see evidence of declining real spending power. We see the outlook on both defensive and discretionary securities, being a lot more of a challenge than any areas that are exposed to the themes of the AI trade.

Next Up. Deep analysis of data that gives us a sense for customer, supplier, competitor relationships, has enabled us to position portfolios for the broadening of the AI trade further down the supply chain, and moving from US to global equity markets. Some of the best contributors to performance on our global portfolios this year, tech names in areas like Europe, Japan, Taiwan and Korea. Those linkage insights have enabled us to capture the beneficiaries of that rotation. 

Which brings us to. In the world where bonds and equities are often moving together, we can generate a return stream that is uncorrelated to traditional asset classes. Whether equity markets are going up or down, as long as the long side of our portfolio is doing better than the short side and outperforming, we should expect a positive return. Any capability that can produce a genuinely diversifying return stream is going to be very, very valuable in client portfolios.

And the one thing you don't need to know. Basketball was my main sport. We had a very very good school team. So obviously embracing American sport. I did offer my services to the local team here, but in 2016 they definitely did have a very very good point guard by the name of Mr. Curry. So they declined and that was why I’ve been doing systematic investing here in San Francisco for the last 10 years 
To get more 3+1 and stay up on everything you need to know, and some things you don’t… Make sure to follow us on LinkedIn & YouTube. We’ll see you next week.