case studies | Portfolio review
Portfolio review forecasting the effects of a potential Labour government and no-deal Brexit for a sovereign wealth fund
Overview
A multi-billion-dollar sovereign wealth fund was concerned about the potential negative effects of a possible Labour government and no-deal Brexit on their UK equity assets. GC provided a deep-dive assessment into the likely impacts these events would have on their portfolio and potential mitigants.
Work
As this was prior to the release of Labour’s election manifesto and before the Brexit settlement, GC used our trade policy and UK political expertise plus numerous stakeholder interviews to forecast over 100 likely policy actions under a Labour government, as well as the expected trade exposures in the case of a no-deal Brexit settlement. These were tested against the client’s UK portfolio to provide an asset-by-asset review of risks and mitigants.
Impact
GC developed a detailed assessment of the likely effects of a Labour government on each portfolio company and how they would be likely impacted, positively or negatively, by proposals. An actionable executive summary with a list of critical mitigants was presented to the executive team. GC’s report highlighted where the sovereign wealth fund faced both risks and opportunities, helping the portfolio management teams to position their assets in a way that better protected themselves from downside risk and simultaneously took advantage of potential policy-driven opportunities.