• Investment Horizons
  • Asset Flows
  • Investment Horizons by Country
  • Corporate Uses of Capital & Horizon Gaps
  • FCLTCompass Resources
  • Investment Horizons

    The total length of time an investor expects to hold a security, portfolio, or other asset (in years, 2009-2020). 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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    12 years, 8 months Savers

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    5 years, 4 months Asset Classes

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    6 years Public Companies


    Asset Flows

    The transfer of savers' funds, via various asset classes, to companies as a source of capital (in USD Billions, 2020). 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 12/31/2020. Public company sources of capital and uses of capital calculated on an annual basis for 2020.

    Note: Figures may not equal total due to rounding.

    Investment Horizons by Country

    Measuring regional asset flows and investment horizons on an annual basis (in years, year-over-year 2019-2020). 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.*

    Australia
    5.70 Years Average (0.7%)
    Investment Years
    Households 5.97
    Pensions 4.44
    Insurance 4.13
    Sovereign Wealth Funds 4.26
    Endowments
    Download PDF
    Brazil
    5.56 Years Average (-5.7%)
    Investment Years
    Households 5.56
    Pensions
    Insurance
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Canada
    5.42 Years Average (-1.2%)
    Investment Years
    Households 5.30
    Pensions 5.88
    Insurance 6.61
    Sovereign Wealth Funds
    Endowments
    Download PDF
    China
    4.87 Years Average (-2.6%)
    Investment Years
    Households 4.84
    Pensions 4.38
    Insurance 6.88
    Sovereign Wealth Funds 4.72
    Endowments
    Download PDF
    France
    5.34 Years Average (-2.2%)
    Investment Years
    Households 5.57
    Pensions 4.31
    Insurance 4.26
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Germany
    5.17 Years Average (-0.2%)
    Investment Years
    Households 5.35
    Pensions 4.13
    Insurance 3.94
    Sovereign Wealth Funds
    Endowments
    Download PDF
    India
    5.81 Years Average (-7.1%)
    Investment Years
    Households 5.81
    Pensions
    Insurance
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Italy
    5.28 Years Average (-2.7%)
    Investment Years
    Households 5.35
    Pensions 4.65
    Insurance 4.47
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Japan
    3.94 Years Average (0.8%)
    Investment Years
    Households 3.76
    Pensions 5.79
    Insurance 4.61
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Netherlands
    5.18 Years Average (-1.9%)
    Investment Years
    Households 5.44
    Pensions 4.59
    Insurance 4.33
    Sovereign Wealth Funds
    Endowments
    Download PDF
    New Zealand
    4.88 Years Average (2.5%)
    Investment Years
    Households 4.96
    Pensions 3.84
    Insurance 3.96
    Sovereign Wealth Funds 3.83
    Endowments
    Download PDF
    Norway
    5.08 Years Average (1.9%)
    Investment Years
    Households 5.75
    Pensions 4.40
    Insurance 4.23
    Sovereign Wealth Funds 4.33
    Endowments
    Download PDF
    Singapore
    4.81 Years Average (-0.6%)
    Investment Years
    Households 4.72
    Pensions 4.80
    Insurance 5.19
    Sovereign Wealth Funds
    Endowments
    Download PDF
    South Korea
    5.36 Years Average (0.8%)
    Investment Years
    Households 5.36
    Pensions 3.85
    Insurance 5.63
    Sovereign Wealth Funds
    Endowments
    Download PDF
    Switzerland
    4.73 Years Average (0.6%)
    Investment Years
    Households 4.79
    Pensions 4.78
    Insurance 4.21
    Sovereign Wealth Funds
    Endowments
    Download PDF
    United Kingdom
    5.97 Years Average (-5.8%)
    Investment Years
    Households 5.32
    Pensions 9.65
    Insurance
    Sovereign Wealth Funds
    Endowments
    Download PDF
    United States
    5.81 Years Average (-2.2%)
    Investment Years
    Households 5.71
    Pensions 6.44
    Insurance 6.12
    Sovereign Wealth Funds 5.70
    Endowments 4.79
    Download PDF
    Year-over-year change in time horizon
    *0.01 years = 3.65 days.

    Corporate Uses of Capital & Horizon Gaps

    Companies' average investment horizon vs. holding period of funding sources (in years, 2009-2020). 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

    Tracking corporate uses of capital (as percentage of total spending, 2009-2020). 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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    To see more asset flows, download the full 2021 FCLTCompass Report.

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