Woodford: Brexit may weaken sterling, but good news for investors

Neil Woodford

A temporarily weaker sterling could benefit investors if the UK decides to leave the European Union, says Neil Woodford.

In a video blog on Woodford Investment Management’s website, the star fund manager says: “In the event of a Brexit, there is a chance the currency will weaken.

“Funny enough, if the currency is weak for a period that is going to be harshly stimulative for the economy so that might be quite good news certainly for British exporters which need all the help at the moment in the manufacturing industry.”

Whether the UK decides to leave the EU or not, the fundamentals of the economy will be “relatively unmoved”, he says.

But he adds: “If there is a vote to leave, politically it will be a significant event, not just domestically but also certainly globally for some time.”

The fund manager says he will not change his investment strategy in the event of a Brexit.

He says: “The UK economy is important but not it is not the dominant factor by any means in terms of determining my strategy for the portfolio.

“The big companies I invest in have little interaction with the slings and arrows of the UK economy. Brexit does have influence in the margin of some parts of the portfolio but it is the global perspective that drives the strategy.”