Invesco Perpetual's Mark Barnett has said the initial impact of a Brexit will be negative for markets but believes in the long term, "the UK can adapt to whatever is thrown at us".
During an Invesco Perpetual Brexit online debate, the manager of the £5.8bn Invesco Perpetual Income fund, said investors must try to understand what could happen in the case of a Brexit on both a short-term and long-term scale.
He said: "In the short term, there is likely to be an economic pause or interruption because it will create a level of uncertainty which we have not seen before. We would be in unchartered waters.
"But over the long term, I think the UK can cope with whatever outcome we are presented with because we have a dynamic economy, which has adapted to change before and can adapt to whatever is thrown at us now."
Commenting on the impact of a vote to 'leave' on UK equities, Barnett (pictured) said companies need to have a plan in place for both outcomes.
"Depending on where they are located and the regulatory red tape they may be subject to, they have to think about adjusting their business models accordingly," he said.
"The best businesses will be able to cope with change. The challenges are not insurmountable."
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Over the lead up to the referendum, which takes place on 23 June, the manager has been adding small amounts to his domestic holdings, including real estate, which have seen a fall in share prices.
But he has questioned whether the weakness of these stocks is attributable to the looming vote or because the economy has been performing slowly in recent years.
He listed the discussion around US interest rate policy, the direction of the US dollar and the increase in commodity prices as a few other events that could also be impacting markets.
But Barnett does not think there will be much impact on stockmarkets outside of the UK following the referendum.
He said: "There may be a little impact in the eurozone more than anywhere else but it will be limited.
"If we leave, the ECB and other EU authorities will be nervous about a domino effect, which may have already started to reflect in equity prices but the key impact has been domestic."
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In the three years to 15 June, the Invesco Perpetual Income fund has returned 23.8% versus its IA UK All Companies sector average which returned 14.5% during the same period, according to FE.
