A new framework for value metrics
Ideas about how businesses generate value and which groups benefit continue to evolve. The Thinking Ahead Group argues there are four sets of stakeholders, and has metrics in mind for each.
In the final part of a column series exploring a new risk management framework, 'risk 2.0', WTW global head of portfolio strategy Jeff Chee outlines what investment professionals of the future need to understand about the commonalities of risk events and the resulting benefits of an interconnected risk mindset.
Ideas about how businesses generate value and which groups benefit continue to evolve. The Thinking Ahead Group argues there are four sets of stakeholders, and has metrics in mind for each.
A long-term investor has an advantage that lies in the skill to identify divergences between price and value in markets, and the willingness to wait for a convergence to take place.
A more meaningful way of keeping defined contribution savers informed and engaged could be through communication in relation to their contribution rates.
A body of research demonstrates that a shift in mindset towards asset owners working together, while still maintaining genuinely productive competition, pays off for all stakeholders.
When the Thinking Ahead Group looked into whether investors could be reasonably certain of a long-horizon premium, they found builders of value and savings whose costs are worth it.
A study from the Thinking Ahead Institute finds the premium for long-horizon investing is up to 1.5 per cent a year and identifies eight strategies for reaching that target.
Opinion