A pension fund client asked us to investigate how political uncertainties might affect the outlook for the UK economy and its financial markets. Guided by our proprietary global economic model, GESAM, we examined the potential consequences for UK growth, UK inflation and UK asset prices of a number of alternative Brexit scenarios. We also addressed the issue of an early general election. We outlined how investors might react to a Labour government led by Jeremy Corbyn, and how this might affect the value of assets held by the scheme.
Our findings were discussed by the scheme’s Investment Committee when it next met.