Ahead of the Scottish Independence Referendum, wealth managers are divided on whether investors need to take action to protect their portfolios.
Nick Hungerford, the chief executive officer of online investment management service Nutmeg believes two key phenomena will affect portfolios in the event of a Yes vote. First, a Yes vote will lead to weakness in sterling, which will negatively impact returns from assets that are denominated in this currency. Second, an independent Scotland would require operational changes for many UK companies. These, when they occur, will cause a negative productivity shock, with medium-sized firms likely the worst hit.
He recommends investors take three precautionary steps.