Standard Life Investments UK Smaller Companies Fund manager Harry Nimmo believes his fund will ride out any post-Brexit headwinds due to its international exposure and the strength of UK businesses.
Nimmo says that 54 per cent of profits for companies in the fund come from outside the UK, which will help shield it from any economic shocks.
He says: “They might be described as smaller listed companies but many of the firms in the fund have big international businesses either based outside the UK or they export.
“We suspect that if Brexit is bad for the UK economy our companies will continue to grow and come out the other side.”
After the vote to leave the EU the value of fund initially dipped following the sell off in UK smaller companies, but it has since recovered.
There are fears failure to reach a Brexit deal could result in costly barriers to trade which could hit growth.
However, Nimmo still has faith in British companies and says the City and a vibrant stockmarket will continue to encourage growth.
Nimmo says: “Since the Brexit vote there has been a move to diversify away from the UK, but we think it is still a great place for finding smaller companies because of the dynamic business environment.
“For smaller companies in particular, the Aim market is very important as it encourages business formation, entrepreneurship and job creation.
“Nearly a third our funds are invested in Aim listed stocks and there is nothing quite like it around the world.”
Read next week’s Money Marketing for a full interview with the Standard Life smaller companies chief