"The impact of potential currency movements on the SCM Long-Term Return GBP portfolio would be mitigated by a holding of 36.3 per cent of the overall portfolio in UK bonds and equities, and 16.2 per cent in overseas bonds and equities hedged back to sterling."
However, it is not straight forward as many of the UK’s largest stocks derive large revenues outside the UK.
SCM estimates, based on an analysis of the FTSE 100 largest 20 stocks, that on average 81 per cent of its revenues are outside the UK, and therefore it would benefit significantly from falls in sterling.
"This would not be the case for UK small or mid cap stocks that tend to be more UK focused."
Guy Stephens, technical investment director at Rowan Dartington, said: "It is difficult to envisage a new negative that hasn’t already been thought of in the UK, bearing in mind the obsession with the Brexit turmoil."