The concept of short- and long-term markets is not new. Managers, economists and investors have long struggled with how to weigh the immediate financial pressures against objectives many years into the future. We believe this balance is skewed toward investors and companies hitting near-term targets at the expense of long-term value creation. To safeguard the future needs of individual savers and their communities, something had to change.
Focusing Capital on the Long Term began in 2013 as an initiative of the Canada Pension Plan Investment Board and McKinsey & Company whose leaders at the time, Mark Wiseman and Dominic Barton, observed undue short-term pressure on the investors and CEOs with whom they worked. Together with their teams, the Focusing Capital on the Long Term initiative leaders sought to test their observations both through research and through conversations with other business leaders.
The initiative’s message caused the financial world to take notice, and, above all, set the tone that those who participate in the capital markets are uniquely positioned to fix their faults. It was in this spirit that the Canada Pension Plan Investment Board and McKinsey, together with BlackRock, The Dow Chemical Company and Tata Sons established FCLTGlobal and recruited the inaugural Member organizations from across the investment value chain to launch a shift in global markets.
As an independent not-for-profit organization, FCLTGlobal works to encourage a longer-term focus in business and investment decision-making. It does so by developing practical tools and real-world approaches to that can help encourage such behaviors. The Board of Directors, Strategic Advisors, Members, and full-time staff are working together to rewire capital markets and the relationships among the organizations that operate within them, to better meet long-term goals.
At the heart of this work is a focus on the financial needs and ambitions of everyday savers, whose own long-term goals – whether saving for a home, an education, or retirement – too often are lost in the complexity of the financial markets. By working across the investment value chain, emphasizing the practical nudges and initiatives that all market participants can take, FCLTGlobal can, with your help, make long-term practices the norm, not the exception.
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