Investors say they like to, and want to, focus on the long term, but they often don’t know how to change their practices to orient their governance and investments to do so. Now, finally, a guide has been developed for investors to use as benchmark for implementing strategies for long-term investment.
The guide is an output of the Focusing Capital on the Long Term initiative, which has input from 20 investment professionals from managers and asset owners including CPPIB, OTPP, PGGM, New Zealand Super and Washington State Investment Board, all of which contributed to the guide with case studies of long-term “ideas in action”.
For any asset owner wishing to put in place an effective set of implementation strategies and tools to help realise their aspiration to be long term, this is a must read.
The guide focuses on areas where asset owners and managers have the ability to act immediately, and outlines examples of that in practice through case studies of institutional investors.
The areas of focus in the guide are investment beliefs, risk appetite, benchmarking process, evaluations and incentives, and investment mandates.
The Long-Term Portfolio Guide is an output of the Focusing Capital on the Long Term (FCLT) initiative. Its development was led by Anuradha Gurung with co-editor Colin Carlton and a working group, co-led by Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board. The working group was comprised of more than 20 experienced investment professionals from BlackRock, Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board, Capital Group, GIC, New Zealand Superannuation Fund, Ontario Teachers’ Pension Plan, PGGM, and Washington State Investment Board.
To read the paper click below or go to www.fclt.org