Protecting against risk: risk management is more important than ever

Let's begin our risk management journey with the Canadian stock market. The Toronto Stock Exchange (TSE) 300 composite index is in jeopardy of becoming an increasingly marginal index. With the surge in the share prices of Nortel Networks and BCE Inc., and given BCE's proposed spin-off of i...

Full description

Saved in:
Bibliographic Details
Published inBenefits Canada Vol. 24; no. 4; p. 13
Main Author McInerney, Barry
Format Magazine Article
LanguageEnglish
Published Montreal Groupe Contex Inc 01.04.2000
Subjects
Equity
Investment policy
Investments
Pension funds
Pension plans
Risk management
Securities markets
Stock exchanges
Online AccessGet full text

Cover

More Information
Summary:Let's begin our risk management journey with the Canadian stock market. The Toronto Stock Exchange (TSE) 300 composite index is in jeopardy of becoming an increasingly marginal index. With the surge in the share prices of Nortel Networks and BCE Inc., and given BCE's proposed spin-off of its stake in Nortel by mid-year, Nortel will comprise a staggering 30% of the TSE 300. Continuing with our theme of risk management, what about active vs. passive management? The majority of the literature on this topic comprises an ongoing debate on the merits of one or the other as the preferred investment strategy. Should we not now look beyond the tired arguments of active vs. passive and, instead, devote our attention to the more productive exercise of defining the proportionate role of both within a portfolio? Let's end the debate and instead view passive management as an additional risk management tool available to Canadian investors.
ISSN:0703-7732