By Iain Withers
LONDON (Reuters) – BlackRock chief executive Larry Fink has told investors that “protectionism has returned with force” just days before a fresh round of tariffs from U.S. President Donald Trump are set to be unleashed on the global economy.
Fink wrote in his annual letter to shareholders in the world’s biggest asset manager that too many people are currently missing out on prosperity in twin-speed economies, where the wealthy build more wealth and others face deeper hardship.
“Capitalism did work — just for too few people,” Fink wrote in his letter published on Monday, adding the divide had helped fuel a rise in protectionist policies, whilst not mentioning Trump once in a letter running to some 10,000 words.
Trump has promised to unveil a massive tariff plan on Wednesday, which he has dubbed “Liberation Day.” He has already imposed tariffs on aluminum, steel and autos, along with increased tariffs on all goods from China.
Fink said nearly every client, leader and person he spoke to was more anxious about the economy than at “any time in recent memory”, but he said markets tended to perform in the long run.
The BlackRock boss’ main argument to resolve these problems was to further “democratize” markets, partly by helping a greater number of consumers access potentially higher returns in private markets such as infrastructure and private credit – investment areas into which BlackRock has expanded heavily recently as it tries to diversify its business.
BlackRock, which became the world’s biggest money manager thanks mainly to the popularity of low-cost passive index-tracking funds, went on a buying spree last year to add infrastructure specialist Global Infrastructure Partners, private credit provider HPS and private data firm Preqin.
Private assets, unlike publicly-traded stocks and bonds, are typically not listed, are traded less frequently and their pricing can be opaque, raising potential risks for retail investors.
(Reporting by Iain Withers; Editing by Tommy Reggiori Wilkes and Chizu Nomiyama)
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