BlackRock CEO says investors seeking diversification, global approach

By Jennifer Lanning Drey

Portland, Ore., Dec. 9 - BlackRock Inc. chief executive officer Laurence Fink said Wednesday that he believes investors are looking for increased diversification and more multi-asset product strategies, due in part to their need for higher returns to offset shortfalls in retirement savings.

Speaking at the Goldman Sachs Financial Services Conference in New York, Fink said as a result, investors will be getting increasingly more global.

"If you are going to try to get above U.S. returns, you're going to have to have a high concentration of investing outside the U.S.," he said.

"I think investors are going to have to have a much more global, comprehensive portfolio," he later added.

With many of the hedge funds that previously carried excessive risk having been washed out, Fink said he believes there is once again a "big role" for alternatives.

"We're having more dialogue now with clients on the alternative space than we've had in two years," he said.

Fink also noted that until consumers feel more comfortable with the stability of their jobs, he believes flows in the United States are likely to continue to be into the fixed-income arena, demonstrating a continued conservative approach.

BlackRock is an investment management firm based in New York.

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