The Henley-based fund manager said that while markets are clearly shocked, the decision is not as negative a development as the initial reaction appears to imply.
“We have been clear in our thinking on the economic implications of Brexit for some time,” he said. “The independent report that we commissioned on the subject concluded that Britain’s long-term economic future would be largely unaffected by a decision to leave the European Union. We stand by these conclusions.”
Woodford acknowledged that there will be challenges in the near-term however. “We now face a period of uncertainty as the exact terms of Britain’s exit from Europe are negotiated,” he noted. “Financial markets loathe uncertainty as amply demonstrated by this morning’s reaction across all asset classes.”
The fund manager also made a point of reminding his clients of what he said were important things to remember.
He noted that on the 20 February when David Cameron announced that the EU referendum would take place, the FTSE 100 was at 5950, the 10 year Gilt yield stood at 1.41% and the sterling / dollar exchange rate was 1.44.
He added that the long-term opportunity in UK equities continues to remain attractive in his view.
