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Governance Matters podcast: Getting directors on board to tackle climate crisis

3 August 2022 - This episode of the Governance Matters podcast looks at changing board attitudes toward climate change and what investors are looking for from directors in terms of climate-related skills and knowledge.

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Strategy | Article

Dear Global Corporate Executive – Stay the Course

2 August 2022 - FCLTGlobal reminds companies and their leaders that, despite the chop your ships are weathering, those who stay the course through uncertainty will be the ones ultimately rewarded. Looking at data from past market downturns, including amid global crises, businesses are likely to steer to calmer waters, even treasure, over the long term.

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In the News

What long-term looks like: Tips for structuring mandates

2 August 2022 - The third edition of FCLTGlobal’s report, Institutional Investment Mandates: Anchors for Long-Term Performance provides a toolkit for mandate processes and behaviours to reorient towards the long term, including a rethink of KPIs that asset owners can use to evaluate their managers. The report demonstrates these concepts in reality by giving examples of asset owners and managers using them to good effect in practice.

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Article

Investing Capital in Communities Drives Long-Term Value for All Stakeholders

28 July 2022 - Communities are an important stakeholder for many companies and play a key role in their operations. FCLTGlobal recently hosted a discussion to gain a sense of how corporations and investors can better invest in their communities to create value for all their stakeholders.

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In the News

Mandates model from FCLTGlobal helps investors address long/short-term conflict

27 July 2022 - FCLTGlobal’s latest report provides a starting point for mandate negotiations that emphasise long-term provisions, rather than short-term incentives which it said are common in today’s investment contracts.

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Investor-Corporate Engagement | Article

What Investors Can Learn from a Company’s Shareholder Composition

25 July 2022 - For companies, cultivating a base of longer-term shareholders allows managers to refocus their strategy on the future. As expected, evidence shows having the support of long-term shareholders provides a buffer against being derailed by short-term shareholders and activists.

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In the News

The Contract Provisions Allocators Can Use to Keep Their Managers Focused on the Long Term

20 July 2022 - FCLTGlobal suggests incorporating loyalty fee discounts, making changes to performance reporting, and integrating net-zero commitments. FCLTGlobal, a nonprofit that promotes long-term investing, has provided new guidance to help asset owners and managers make longtermism a more concrete part of their investment relationships — by putting it in their contracts.

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Press Release

FCLTGlobal Updates Asset Owner Guidelines For Hiring Investment Managers

19 July 2022 - New report expands “Long-term Model for Institutional Investment Mandates”

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Long-term Model Mandate

Incentive Alignment | Toolkit

Long-Term Model for Institutional Investment Mandates

19 July 2022 - This matrix provides a menu of key contract provisions for mandates. We compare typical provisions, which tend to reflect a short-term mindset, to those promoting a longer-term approach, and offer ideas for exploratory provisions. The provisions are relevant for separately managed accounts and commingled funds, with unique provisions described for the latter.

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Incentive Alignment | Report

Institutional Investment Mandates: Anchors for Long-Term Performance

19 July 2022 - FCLTGlobal has conducted research since 2015 to facilitate the creation of mandates that align asset owners and asset managers long-term goals.

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Incentive Alignment | Toolkit

Aligning Expectations for Long-Term Success: Onboarding Checklist

19 July 2022 - Grouped among key areas of governance, incentives, metrics, and engagement, the onboarding checklist allows for effective communication between the asset owner and manager and sets parameters for the relationship to function transparently.

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Incentive Alignment | Toolkit

Trust but Verify: Manager Scorecard

19 July 2022 - While a meeting schedule is typically agreed at the start of a relationship, the manager scorecard can be completed at any point during the relationship. The scorecard can help focus attention on areas of importance and objectives beyond short-term financial performance.

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