An orderly Brexit could be the catalyst for UK equities and boost the pound, according to Waverton Investment Management.
William Dinning, CIO at Waverton, said that if an agreement is reached between the UK and the EU, it could remove the fear over the pound falling.
"Sterling recovered in the spring before going sideways since April, admittedly with some occasional bouts of volatility. The UK and the EU are coming to the deadline for reaching an agreement on how the UK will leave the EU. We are optimistic that an agreement will be reached," he said.
"This may remove one fear that has kept investors away from UK assets which is worry that a chaotic Brexit will produce a much weaker sterling."
Dinning said that as there was no statistically significant relationship between movements in sterling and the stockmarket it was possible to imagine a scenario where all UK assets rose together if there was a shift in sentiment.
The CIO continued: "UK plc has underperformed the world by 43% since the end of 2000. If the UK market was a fund it would have been closed down or merged with another fund by now.
"The biggest beneficiary of a more measured view of the UK may be the depressed UK stockmarket."
Global stockmarkets suffered heavy losses in March in response to the coronavirus pandemic.
The FTSE 100 has been one of the worst-performing European stock indices this year, with losses of 23%.
While it has bounced back since then there are fears that if Britain leaves the EU at the end of the year without a deal it could have a potentially bigger impact than coronavirus.
The UK is currently engaged in talks with the EU, but while both sides have spoken of progress in the recent weeks, they remain at loggerheads on fishing rights and state subsidies for businesses.