Fidelity's Clark: Why politics could weigh heavy on investors

ON UK INCOME

While the UK economy is healing, some noises from Westminster could be worrying for investors, explains Fidelity income manager Michael Clark.

Although the economy seems to be slowly healing, the political environment is something of a concern in my view. In 18 months' time, we will have a general election in the UK. Labour has promised a price freeze on the utilities and will look at breaking up the big six generators. This could be destabilising for some of these investments. If the Conservatives win, we will have a referendum on whether to remain part of the European Union. If the UK were to withdraw, the consequences for the investment environment would be incalculable, but it is hard to see a positive outcome. Nev...