Investment Horizons

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

  • Savers
  • Asset Classes
  • Public Companies
  • Hover over 2021 horizons for more info on changes over time.
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9
10
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14
Expected Time Horizon in Years
2021
10.83
Savers' horizon down 14.5% from 2020, down 20.8% from 2011.
5.25
Asset classes' horizon down 1.5% from 2020, down 1.5% from 2011.
5.33
Public companies' horizon down 11.2% from 2020, down 13.6% from 2011.
2020
12.67
5.33
6
2019
12.75
5.5
5.58
2018
13.08
5
5.58
2017
12.58
5.33
5.92
2016
13
4.92
5.83
2015
13.33
5.08
6.08
2014
13.42
5.08
6.17
2013
13.42
4.92
6.42
2012
13.58
5.17
6.67
2011
13.67
5.33
6.17
2010
13.83
4.83
6.17
2009
13.83
4.67
6.5

Global Investment Horizons

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

  • Norway

    11.1%

  • South Korea

    10.4%

  • New Zealand

    9.3%

  • Australia

    6.9%

  • Sweden

    6.8%

  • Malaysia

    5.5%

  • China

    3.3%

  • Italy

    3.1%

  • Japan

    3.1%

  • Canada

    2.7%

  • Germany

    1.8%

  • Spain

    1.6%

  • United Arab Emirates

    1.6%

  • India

    1.2%

  • Mexico

    0.5%

  • France

    -0.3%

  • Singapore

    -1.2%

  • South Africa

    -1.2%

  • Chile

    -2.5%

  • Switzerland

    -3.4%

  • United Kingdom

    -8.0%

  • United States

    -8.1%

  • Netherlands

    -9.5%

  • Brazil

    -9.9%

Norway
– Years Average (11.1%)
Investment Years
Households 5.09
Pensions 4.01
Insurance 4.42
Sovereign Wealth Funds 3.76
Endowments
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South Korea
– Years Average (10.4%)
Investment Years
Households 5.01
Pensions 3.61
Insurance 5.61
Sovereign Wealth Funds 4.7
Endowments
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New Zealand
– Years Average (9.3%)
Investment Years
Households 5.40
Pensions 4.23
Insurance 4.03
Sovereign Wealth Funds 4.19
Endowments
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Australia
– Years Average (6.9%)
Investment Years
Households 5.62
Pensions 3.51
Insurance 4.20
Sovereign Wealth Funds 3.81
Endowments
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Sweden
– Years Average (6.8%)
Investment Years
Households 4.36
Pensions 4.42
Insurance 4.42
Sovereign Wealth Funds
Endowments
Download PDF
Malaysia
– Years Average (5.5%)
Investment Years
Households 5.83
Pensions 3.81
Insurance
Sovereign Wealth Funds 3.71
Endowments
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China
4.77 Years Average (3.3%)
Investment Years
Households 4.82
Pensions 3.21
Insurance 3.74
Sovereign Wealth Funds 4.61
Endowments
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Italy
5.25 Years Average (3.1%)
Investment Years
Households 5.33
Pensions 3.84
Insurance 4.51
Sovereign Wealth Funds
Endowments
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Japan
3.58 Years Average (3.1%)
Investment Years
Households 3.23
Pensions 6.08
Insurance 4.9
Sovereign Wealth Funds
Endowments
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Canada
4.62 Years Average (2.7%)
Investment Years
Households 4.43
Pensions 5.14
Insurance 6.59
Sovereign Wealth Funds 4.95
Endowments
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Germany
4.96 Years Average (1.8%)
Investment Years
Households 5.08
Pensions 4.10
Insurance 4.15
Sovereign Wealth Funds
Endowments
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Spain
– Years Average (1.6%)
Investment Years
Households 5.46
Pensions 2.84
Insurance 3.05
Sovereign Wealth Funds
Endowments
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United Arab Emirates
– Years Average (1.6%)
Investment Years
Households 4.09
Pensions
Insurance
Sovereign Wealth Funds 4.18
Endowments
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India
5.21 Years Average (1.2%)
Investment Years
Households 5.3
Pensions 4.46
Insurance 3.09
Sovereign Wealth Funds
Endowments
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Mexico
– Years Average (0.5%)
Investment Years
Households 5.72
Pensions 4.36
Insurance 4.15
Sovereign Wealth Funds
Endowments
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France
5.03 Years Average (-0.3%)
Investment Years
Households 5.17
Pensions 3.88
Insurance 4.33
Sovereign Wealth Funds
Endowments
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Singapore
– Years Average (-1.2%)
Investment Years
Households 4.64
Pensions
Insurance 4.33
Sovereign Wealth Funds 4.6
Endowments
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South Africa
5.36 Years Average (-1.2%)
Investment Years
Households 4.88
Pensions 3.93
Insurance 3.41
Sovereign Wealth Funds
Endowments
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Chile
– Years Average (-2.5%)
Investment Years
Households 5.34
Pensions 4.20
Insurance 4.06
Sovereign Wealth Funds 4.35
Endowments
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Switzerland
4.73 Years Average (-3.4%)
Investment Years
Households 4.89
Pensions 4.29
Insurance 4.32
Sovereign Wealth Funds
Endowments
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United Kingdom
5.09 Years Average (-8.0%)
Investment Years
Households 5.25
Pensions 4.21
Insurance 5.24
Sovereign Wealth Funds
Endowments
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United States
6 Years Average (-8.1%)
Investment Years
Households 5.98
Pensions 6.29
Insurance 5.92
Sovereign Wealth Funds 6.06
Endowments 4.38
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Netherlands
– Years Average (-9.5%)
Investment Years
Households 5.42
Pensions 3.94
Insurance 4.26
Sovereign Wealth Funds
Endowments
Download PDF
Brazil
5.00 Years Average (-9.9%)
Investment Years
Households 5.05
Pensions 4.27
Insurance 4.45
Sovereign Wealth Funds
Endowments
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Asset Flows

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

*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 12/31/2021. Public company sources of capital and uses of capital calculated on an annual basis for 2021.

Note: Figures may not equal total due to rounding.

Savers

Allocations of Capital

Public Company
Sources of Capital

Public Company
Uses of Capital

Corporate Uses of Capital & Horizon Gaps

Companies' average investment horizon vs. holding period of funding sources (in years). Similarly, companies have long-term intentions for their investments, but their sources of capital carry much shorter-term investment horizons. Tracking corporate uses of capital (as percentage of total spending). The evolution of companies toward asset-light business models has resulted in declining corporate investment horizons.

  • Average Investment Horizon of a Public Company
  • Average Holding Period of Primary Funding Sources
  • Capital Expenditures
  • Positive Intangibles
  • Dividends
  • Raw Buybacks
  • Acquisitions
  • Income Taxes
  • Interest Expense
  • R&D
  • Positive Incremental Retained Earnings

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