Larry Fink, chief executive of the world’s largest asset manager, BlackRock, warned that financial market volatility will continue until the Federal Reserve clarifies monetary policy.

His comments came after BlackRock posted a decline in assets under management and in profits in the third quarter, when sliding global stock markets overwhelmed new money coming in from clients.

Its assets under management at the end of last month were $4.5 trillion (€3.9 trillion), down from $4.7 trillion at the end of June, despite $50 billion of inflows.

“There is so much uncertainty in the world and that is leading to more volatility,” Mr Fink said, blaming the conflicting signals from Fed governors on the timing of an interest rate rise.

“Some of the official authorities are guilty of, instead of being a calming influence, through their mixed messages, inflaming the markets.”

Global stock markets fell 9 per cent between June and September, partly on concern that a slowdown in China might drag the world into recession, something the Fed alluded to in its September decision to keep US interest rates at zero.

The company recorded positive net flows across most of the business in the third quarter, although clients in the Asia-Pacific region withdrew a net $7.5 billion.

Mr Fink said that the International Monetary Fund gathering in Lima had made him more optimistic about the trajectory of the global economy and that the Chinese authorities were less likely to devalue their currency, but market volatility would be a fact of life for investors for several years.

“We do not have a world where the tide is rising for everybody,” he said. “We are in a new paradigm where there will be big winners and big losers. Countries still focusing on the paradigm of cheap labour and commodities are going to have a harder time.”

BlackRock’s net income in the third quarter was $843 million, down 8 per cent from the same period last year. Revenues were up 2 per cent to $2.9 billion. The figures came in ahead of Wall Street forecasts that had been reduced as the quarter progressed.