“If we stay or leave the fundamentals of the economy will be relatively unmoved,” Woodford said in a video posted on his site where he discussed the findings of a report by Capital Economics. “I think there’s a chance the currency will be weaker if we leave.”
Woodford Investment Management commissioned the consultancy to write the report looking at the likely impact of a Brexit on the UK from an economic perspective.
The political implications, both domestic and global, will be much more significant than the economic factors, according to Woodford. He believes the political effects would be significant for a period of time, which will be reflected in sterling, but that will be relatively temporary.
“If the currency is weaker for a period, that is going to be partially stimulative for the economy so it might actually work out to be quite good news, particularly for British exporters that need all the help they can get at the moment, and the manufacturing industry,” added Woodford.
Meanwhile, Woodford said his portfolio strategy remains the same regardless of the looming referendum, due to its low interaction with the UK economy. Instead it is a global outlook that drives the overall strategy, he explained.