Part of the reason for these changes relates to some of the horror stories such as the Asian economic crisis and the 1994 bond crash were managers sustained heavy losses.
A company like BT, which brands itself as a manager which takes on risk, has taken a proactive role in managing risk by appointing, just over a year ago, Bev Durston to the position of risk manager.
While many investors are wary of risk, Durston says it is a positive force for an active manager.
"We’re paid to take risk, so we need to measure and understand it, make sure the risks are intentional and that they reflect the strength of the (company) view".
BT Funds managing director Myles Baron-Hay says it is important for the company to be more conscious of the risk it has in portfolios.
Part of the risk manager's job involves eliminating risks that may have been unintentional, such as an over-exposure to one part of a market.
Baron-Hay says while BT is better managing its portfolio risk the investment style hasn't changed, and performance remains above benchmark.
For instance the its International Share Fund did 26 per cent against 17.5 per cent for the MSCI World Accumulation Index in calendar 1999.
"We haven't lost our appetite for risk," he says.
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