BlackRock Inc., the world’s largest asset manager, does not expect markets to return to low volatile, highly liquid conditions that characterised markets before 2008.

“Portfolios today must be more dynamic and more diverse than ever before,” says Michael McCorry, head of BlackRock’s Australian scientific active equities business in a statement.

“It is unlikely we will see a return to the highly liquid, low volatility market conditions experienced before the global financial crises.”

Volatility in markets was extremely low in 2005, 2006 and the early part of 2007, McCorry says.

BlackRock manages about US$3.68 trillion globally. It employs 200 people in Australia where it manages $45.8 billion.