The world's biggest fund manager, BlackRock, has told investors to be ready for more pain from large cap stocks.

BlackRock's new Australian fund, BlackRock Concentrated Industrial Share Fund, is avoiding resources, the big four banks and Telstra.

BlackRock's head of Australian active equities Charles Lanchester, who used to work at rival fund manager Perpetual, told the ABC that the fund invests in around 29 Australian companies, including mid and small caps.

Mr Lanchester said the aim of the fund was to provide diversity for mum and dad investors, many of whom already had shares in the biggest companies like Telstra, BHP Billiton and the big banks.

He said resources stocks were not included in the fund because they were too volatile and made just a 2 per cent return each year from 1985 to 2015.

"We've looked at returns over a very long period of time, over 30 years," he explained.

In the Australian market, resources have been much more volatile, much riskier, and they've actually had lower returns over that long period.

Mr Lanchester said the fund was investing in a wide range of stocks, including industrials, healthcare stocks and consumer stocks.

"We'd rather focus on the industrials and dividend yields which can grow over time," he said.

The fund has made a 10 per cent return since it started in December. So far in 2016, the All Ordinaries index has risen 2.7 per cent.

'Only thing certain is uncertainty' in 2016

BlackRock Asia-Pacific chief investment officer Belinda Boa said 2016 was shaping up as "a spectacular anti-establishment year" amid Brexit, further interest rate rises in the US, terrorism and the rise of Islamic State in the Middle East.

"The only thing that is certain is uncertainty," Ms Boa told a briefing for journalists about the firm's mid-year Global Investment Outlook.

Ms Boa said she expected more action from central banks to stimulate economic growth.

BlackRock also said there were bright spots in emerging markets, such as China and India, but low returns and volatility were set to stay for some time in the developed world.

BlackRock said it was "cautious" on commodities, including iron ore and coal, with more "adjustment" in prices still happening.

BlackRock Australia investment strategist Stephen Miller also observed that 70 per cent of government bonds in advanced economies had yields of less than 1 per cent.

Of those bonds, one-third were delivering below zero returns.