Long-term Tools

FCLTGlobal develops practical tools & research that can encourage a longer-term focus in business and investment decision-making.

Stewardship banner Copy

Stewardship codes can be a vital tool for promoting long-term thinking across the value chain. Our focus is to ensure that stewardship codes around the world are targeted to advance long-term thinking in financial markets. To advance this goal of improving long-term value creation, FCLTGlobal has assembled a suite of materials for investors, investees, and regulators.
Time Viz Thumb

This digital dashboard will assess how your Board of Directors spends its time during full board meetings. It will also compare your board's time allocation to that of other industry peers and successful long-term organizations. Use these results to ensure an appropriate balance of agenda items that matter for the long-term success of the business moving forward.

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A well-functioning corporate board of directors wields the power to meaningfully influence the purpose, culture, and direction of an organization. Is your board taking the steps necessary to help companies maximize their long-term potential?

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A long-term roadmap cuts through the noise by presenting a company’s core drivers of growth and competitive advantages, long-term objectives, the strategic plan to achieving those objectives, capital allocation priorities, and a handful of KPIs that allow investors to track progress. 

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To facilitate discussions about managing portfolios to both meet long-term objectives and weather short-term risks, FCLTGlobal, with input from its members, has developed this Risk Conversation Guide for boards and staff. We have provided illustrative answers to these questions, but these are not intended to be exhaustive or comprehensive. 
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To address the issue of managing portfolios to both meet long-term objectives and weather short-term risks, FCLTGlobal, with input from its members, has developed practical tools for managing multi-horizon risks. We have provided illustrative examples to these tools, but they are not intended to be prescriptive or exhaustive

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Corporate CEOs and their long-term shareholders benefit from a frank exchange of views about long-term strategy. But, such strategic engagement can be challenging to establish in most publicly traded markets. Corporate boards and management teams often hear the perspective of the “noisy” short-term players—whether shareholders or non-shareholders—in the investment community. On the other hand, long-term investors are typically quiet publicly, and many do not share their perspectives with the company privately either, creating an imbalance of pressure to focus on the short-term, even at the expense of long-term value creation.
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We are exploring the most effective ways for corporations to communicate their long-term plan and prospects to the investment community. Investors are among a company’s most valued stakeholders and the primary audience for forward looking statements so we want to know what you consider important information when evaluating a company’s long-term prospects.

LT quiz thumb

This questionnaire explores the incentives, institutions and behaviors that give rise to short-termism. Answers reveal the practical levers managers can pull to take a longer-term approach in business and investment decisions. The following questions and answers were originally presented at the 2018 Focusing Capital on the Long Term Summit.
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Research from FCLTGlobal confirms that long-term companies outperform others on financial metrics, including revenues, profitability and stock price, as well as non-financial ones, such as job creation. It is also clear that resisting the short-term pressures of capital markets is an ongoing challenge. Despite the pressure, some companies are able to follow their long-term strategies while others succumb to chasing short-term performance – often at the expense of future growth.

Mandate top 10 thumb

The terms and conditions that asset managers and asset owners use can drive long-term or short-term behavior. Based on a series of working groups with leading asset owners and asset managers from around the world, we offer this list of questions to anchor investment mandate negotiations in a long-term direction.
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Using longer-term investment contract provisions can support asset owners’ and asset managers’ stated desire to focus on the long term, and their long-term behavior can translate across the investment value chain to influence corporations’ business and capital allocation decisions. In addition to monitoring performance, long-term asset owners monitor the way that asset managers manage portfolios and their businesses. Specifying KPIs that may be leading indicators of performance can provide structure for that monitoring.