BlackRock chief Larry Fink told investors he was advising clients to begin adding risk to their portfolios and has started positioning the fund manager to take advantage of current market conditions.

Fink, speaking yesterday at the Goldman Sachs Financial Conference, said he believes that markets may have priced in much of the fallout from the ongoing credit crunch. He said: "There is so much fear now that the marketplace is starting to see this and anticipate it. I think we've seen a large extent of the decline already."