BlackRock Chairman and CEO Larry Fink says investors should expect just 4 percent returns over the next 10 years with a balanced portfolio of stocks and bonds over 10 years.

"There are going to be some times where you're going to have a market setback," Fink told CNBC.

"We're talking about a balanced portfolio. We're talking about over a 10-year horizon," Fink said.

"Obviously, this year we are making far better because of the equity market return," he added, but warned some years could be much worse.

"There are going to be some times where you're going to have a market setback where you could lose 20, 30, to 40 percent of the market."

Fink also said the global economy is starting to flourish.

"We're in our eighth year from the Great Recession," he said. "We're seeing Japan and China accelerating. Japan may grow 2½ percent over the next quarter."

BlackRock is the world's biggest money manager with nearly $6 trillion in assets under management, CNBC explained.

In a wide ranging interview, Fink said:

• The global economy is starting to see acceleration.
• “We are in an upswing economy.”
• Much of market rally based on global growth.
• Lack of retirement savings a “big problem.”

Meawhile, there apparently is a global search for higher investment yield.

Saudi Arabia’s sovereign wealth fund is seeking to boost returns from its investments as it helps the kingdom reduce reliance on revenue from oil exports, Bloomberg reported.

“We benchmarked ourselves, we went to all the endowments, we went to all the sovereign wealth funds for long-term investments,” Public Investment Fund Managing Director Yasir Alrumayyan said on Tuesday at the Future Investment Initiative, a three-day conference in Riyadh that has gathered some of the finance world’s most influential people. “We are targeting between 8 to 9 percent but in 2025 till 2030.”

Saudi Arabia is stepping up plans to turn its sovereign wealth fund into a global giant. The PIF is central to the government’s effort to diversify its economy away from oil. The kingdom plans to transfer ownership of state-owned oil company Saudi Aramco, to the fund, which could eventually control more than $2 trillion, according to Crown Prince Mohammed Bin Salman.

(Newsmax wire services and Reuters contributed to this report).

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