Help define, manage risk for clients

As part of Financial Literacy Month, IIROC has developed a new investor bulletin to help educate investors about the concept of risk.

The bulletin, which is called Risk and its impact on your investments, offers questions that investors can review when gauging their comfort level with risk. It also outlines the steps they should take to help manage and minimize risk in their portfolios.

Read: Why bond yields will be low for the next decade

How you can help

One way to manage risk in portfolios is to focus on quality during recessions and on momentum during bull periods, according to Unigestion portfolio manager and investment director Bruno Taillardat. He spoke to Advisor Group content editor Jessica Bruno about his four-factor strategy for stable returns.

On the topic of choosing stocks, he explained how he and his team sort through prospective investments:

We start with volatility and correlation: we favour stocks with low volatility and low correlation to each other. We want to have stocks with different performance cycles. Then, we look at a broad spectrum of risks. We look at company fundamentals.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.