A Labour council has been warned to invest some its pension fund offshore to protect against the risks of a Jeremy Corbyn government.
Camden Council, led by Georgia Gould, was advised by fund manager London CIV that moving cash overseas would shield the authority against ‘political risks’.
It highlighted Brexit and a change in Government as particular threats to the pension fund.
The report warned Mr Corbyn taking power could mean a ‘sharp repricing of assets due to concerns over renationalisation’.
Camden Council, led by Georgia Gould, was advised by fund manager London CIV that moving cash overseas would shield the authority against ‘political risks’
A report warned councillors that Mr Corbyn taking power could mean a ‘sharp repricing of assets due to concerns over renationalisation’
London CIV is chaired by Bob Kerslake, the former head of the civil service, and was set up to manage £5.6billion of pension funds across the capital.
A spokesman for London CIV told the Guardian, which revealed the report: ‘London CIV is responsible for investing significant sums on behalf of the boroughs and therefore has a duty to consider all potential risks.
‘In carrying out this duty, we are in discussions with all boroughs as to consider all risks which might potentially impact on infrastructure.
‘These discussions are ongoing and the London CIV is continuing to debate with its members the shape of its infrastructure strategy. No decisions on this strategy have been made.’
The advice to Camden Council comes after businesses were told Theresa May is ‘hanging by a thread’ and they should prepared for a Corbyn Government.
The advice was issued by an influential city trading firm that warned Labour taking power would be a ‘nightmare scenario’ for the pound.
London CIV is chaired by Bob Kerslake, the former head of the civil service, and was set up to manage £5.6billion of pension funds across the capital
CME Group, an American financial market company with a major office in the City of London, issued the warnings in a briefing last month at the height of the harassment scandal sweeping Westminster.
In the CME paper, Erik Norland, the group’s executive director and a senior economist, describes how the Government was ‘taking the brunt’ of ‘allegations of inappropriate conduct within Parliament’.
‘Since losing its parliamentary majority in June 2017, British Prime Minister Theresa May’s Conservative Party has been hanging by a thread, propped up by coalition partner, the Democratic Unionist Party of Northern Ireland,’ he said.
‘Given the fragility of the current government, markets should probably be thinking carefully about the next Prime Minister and the potential impact on the UK economy and currency.
‘The Labour Party has moved into a small but consistent polling lead since the June election.
‘When new elections take place, they could easily produce a Labour majority or a hung parliament.’