"We want to make things easier to understand, so investors aren’t just looking at a risk and return profile," he said. "Volatility means different things to different people."
He urged the industry to get behind ongoing regulation, but said it shouldn't neglect investors who are often confused by the complexities of the changes.
"There has been a tsunami of regulatory change and any regulatory change is challenging – it affects all firms. Regulation does need to be updated and the likes of RDR, FATCA and MiFID are all a big challenge for the industry, but they create uncertainty in the eyes of very scared clients. It’s important not to get too tied up in these projects, as this industry has a habit of being too internally focused," he added.
"The financial services industry needs to work increasingly together. It’s getting too siloed. We want to put clients’ needs at heart and address what implications that has on us and how we are as an industry."
Stenning points out that cash no longer protects investors in the long-term and that those approaching retirement have a long investment horizon to provide for.
"We’re all bankers in the eyes of the man on the street, so it’s incumbent on us all to improve the industry, as the savings gap is getting bigger. A healthy 65-year-old retiring can expect to live to 92, that’s a long investment horizon, and learning to adapt to that won’t happen overnight. One solution we’re looking at is equity income," Stenning continued.
Last year, BlackRock launched a range of income funds, including Global Income, Absolute Return Bond and World Resources Income.
"We want to help investors deal with longevity. Our focus at the moment is on equity income or outcome-orientated alternative funds, especially in the lead-up to RDR. We’ve launched these funds so that investors can think about sustaining," he explained.
Talking about the removal of Mark Lyttleton from BlackRock’s £448m UK fund, Stenning said the manager will now be able to focus more on BlackRock UK Absolute Alpha.
"It had a tough time last year but it’s a fund focused on stock picking, especially using pair trading. The portfolio is well positioned and has had a good start to 2012."
Stenning also points out that BlackRock’s Europe ex UK fund is getting a lot of traction, in spite of the problems in the region.
"The market has come back a long way from where it was last year. All that needs to happen for the market to do well this year is for the world not to end. There will be volatility this year. It’s important to bear that in mind, but we do think markets will go up overall," he finished.