• Investment Horizons
  • Asset Flows
  • Investment Horizon Gaps
  • Investment Horizons by Country
  • Corporate Use of Capital
  • Investment Horizons

    The total length of time an investor expects to hold a security, portfolio, or other asset (in years, 2009-2018). Assigning year-based horizons to the investment value chain allows for a direct comparison between the outlooks of savers, asset classes, and public companies.

    14 12 10 8 6 4 2 0
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    13 years, 1 month Savers

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    5 years Asset Classes

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    5 years, 7 months Public Companies


    Asset Flows

    The transfer of savers' funds, via various asset classes, to companies as a source of capital (in USD Billions, 2018). Tracking these asset flows on a global scale provides a snapshot of how capital allocations have shifted over time.

    Savers

    Allocations of Capital

    Public Company
    Sources of Capital

    Public Company
    Uses of Capital

    *Other Investments includes the following assets: Private Equity, Investment fund shares/units, mutual funds and unit trust, Alternatives, Hedge Funds, Commodities, Private Debt, Securities, and others.

    Savers and allocations of capital calculated as of 12/31/2018. Public company sources of capital and uses of capital calculated on an annual basis for 2018.

    To see more asset flows, download the full 2020 FCLTCompass Report.

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    Investment Horizon Gaps

    Savers' average intended investment horizons vs. actual investment horizons (in years, 2018). A significant gap exists between savers’ intended investment horizons and the actual time frames of their investments.

    Companies' average investment horizon vs. holding period of funding sources (in years, 2009-2018). Similarly, companies have long-term intentions for their investments, but their sources of capital carry much shorter-term investment horizons.

    • Average Investment Horizon of a Public Company
    • Average Holding Period of Primary Funding Sources

    Investment Horizons by Country

    Measuring regional asset flows and investment horizons on an annual basis (in years and USD Billions, 2009-2018). Economies in every region experience cycles and volatility, and the financial futures of savers all over the world are tied to these shifts. The benefits of long-term financial decisions affect companies, investors, and savers worldwide.

    Brazil
    5.77 Years Average
    Investment Years
    Households 5.83
    Pensions 4.73
    Insurance
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Canada
    5.49 Years Average
    Investment Years
    Households 5.28
    Pensions 6.29
    Insurance 7.13
    Sovereign Wealth Funds
    Endowments
    Download PDF
    China (including SARs)
    4.22 Years Average
    Investment Years
    Households 4.22
    Pensions 3.66
    Insurance
    Sovereign Wealth Funds 4.33
    Endowments
    Download PDF
    France
    5.30 Years Average
    Investment Years
    Households 5.66
    Pensions 3.61
    Insurance 3.48
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Germany
    5.01 Years Average
    Investment Years
    Households 5.29
    Pensions 3.67
    Insurance 3.16
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Italy
    5.16 Years Average
    Investment Years
    Households 5.49
    Pensions 3.47
    Insurance 3.59
    Sovereign Wealth Funds
    Endowments
    Download PDF
    India
    5.82 Years Average
    Investment Years
    Households 5.92
    Pensions
    Insurance 4.41
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Japan
    3.89 Years Average
    Investment Years
    Households 3.82
    Pensions 4.12
    Insurance 4.41
    Sovereign Wealth Funds
    Endowments
    Download PDF
    United Kingdom
    5.92 Years Average
    Investment Years
    Households 5.39
    Pensions 9.12
    Insurance
    Sovereign Wealth Funds
    Endowments
    Download PDF
    United States
    5.38 Years Average
    Investment Years
    Households 5.37
    Pensions 5.51
    Insurance 5.31
    Sovereign Wealth Funds
    Endowments 4.33
    Download PDF

    Corporate Use of Capital

    Tracking corporate uses of capital (as percentage of total spending, 2009-2018). The evolution of companies toward asset-light business models has resulted in declining corporate investment horizons.

    • Capital Expenditures
    • Intangibles
    • Dividends
    • Buybacks (gross)
    • Acquisitions
    • Income Taxes
    • Interest Expense
    • R&D
    • Change in Retained Earnings
    Download PDF

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