The Big Question: Should investors be following the herd in 2013?

Andy Brown, investment director at Prudential’s Portfolio Management Group   Risk budget he governing point is the extent to which your risk budget allows you to rotate out of bonds and into equities.   Some funds will not be able to because they may be impacted by a move across the tax threshold. For our Managed Defensive fund, for example, moving from bonds into equities across the 60% barrier would change the tax status of the fund.   Additionally, some funds will not be able to participate in the ‘great rotation’ because they are already at their maximum risk budget in equ...