BlackRock's Fink says markets hurt money managers

"This (volatility) is not a good short-term trend for the asset management business," Fink said, speaking in New York at a Barclays Capital conference on Monday.

Fink said that BlackRock, which oversees more than $3.6 trillion, will seek to maintain its profit margin by being "even more disciplined" on expenses.

Most large investors continue to shun equities and other relatively risky assets and favor fixed-income securities, Fink said.

The trend may be appropriate in the short term but not over the long term, Fink said.

For long-term investors "it makes no sense to have a portfolio of bonds other than being frightened of the world," Fink said. "Right now, maybe being frightened of the world is a good position to be in."

Shares of New York-based BlackRock dropped $1.32, or 0.9 percent, to $149.75 in afternoon trading on the New York Stock Exchange. The shares have fallen 19 percent over the past three months, almost double the decline of the Standard & Poor's 500 Index.

(Reporting by Aaron Pressman; Editing by Steve Orlofsky)