Scottish Independence- Chronology of Events




·         The vote on Scottish Independence will be on 18th Sept 2014

·         EU and Commonwealth citizens resident in Scotland are entitled to vote

·          A simple majority of votes cast will be enough to secure independence

·         In the event the vote is a “Yes” the independence is planned for March 2016

·         Scotland will be able to apply to join UN, NATO and EU




·         Terms of secession ?

·         Scotland’s future currency?

·         UK General Election in May 2015?

·         Political and Economic Risk for Scotland?



Impact on Investment Environment


·         Political uncertainty in UK until March 2016

·         High Volatility in UK Markets in Short term

·         Defence would face policy uncertainty

·         Short term impact on UK Credit

·         Downward pressure on GBP

·         Possible change in the behaviour of investors with preference of overseas equities over the domestic equities


Our Investment Strategy


The focus of our capital investment strategy has been to maintain Global Equity Exposure across International, Asian and Emerging markets. We have had limited single country (UK) equities exposure in our portfolios.


The recent geopolitical developments has caused downward pressure on the Sterling thereby validating our long held view of overweight on USD. The GBP/USD at current levels of 1.62 has been a very positive influence on our portfolios as the strategy in our Sterling portfolios has been overweight USD.