Brexit fears spook investors

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Brexit fears spook investors

Advisers’ clients could be hit by the spectre of Britain exiting the EU as fears around this stifle investment into the UK, fund manager Neil Woodford has warned.

Mr Woodford, head of investment for Woodford Investment Management, said questions over the UK’s future in the EU could spook investors.

He said: “The likelihood of a referendum will put a brake on external investment and international investment in the UK.

“It will create uncertainty in the same way a Scottish referendum created uncertainty.”

But Mr Woodford told the BBC’s Hardtalk television news programme the UK would have to decide where it stood in relation to the eurozone.

He said: “Ultimately this country will have to make a choice on whether it is a fully signed-up member of a eurozone project.”

Mr Woodford added: “Pretending that Greece was Germany was a fundamental error. Pretending Portugal was Germany was a fundamental error.”

Adviser view

Mike Pendergast, director of Chester-based Zen Financial Services, said: “In the months and weeks coming up to a referendum, any uncertainty around the results could have an effect on the stock market.”