Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Investor Risk and Responsibilities | Article
4 March 2021 - By Ariel Babcock There is ample evidence that taking a long-term approach delivers superior value for companies over time. From 2001 to 2014, the revenue of long-term firms cumulatively grew, on average, 47 percent more than the revenue of other firms, with less volatility, and added nearly 12,000 more jobs on average than other firms over that same timeframe. Long-term-oriented companies bounce back quicker from a downturn and create 9 percent more return on their invested capital, too. Despite the many benefits of taking a longer-term approach...
Investor Risk and Responsibilities | Article
2 March 2021 - Focusing capital on long-term climate solutions via investment portfolio construction
Investor Risk and Responsibilities | Article
25 February 2021 - Evaluating whether market reactions reflect the value of a corporate net-zero commitment in the short, medium, and long term
Article
24 February 2021 - Retirement is one of the key long-term financial compacts we make as a society. It requires coordination among three major groups of stakeholders – governments, businesses, and individual savers – and a dedication to a true long-horizon perspective, saving for a future that is often decades away.
Investor Risk and Responsibilities | Article
1 February 2021 - Through the second phase of our risk research, FCLTGlobal hopes to learn from members why implementation is not happening, what is needed to increase it, as well as to draft a list of hypothetical tools to change behavior.
Investor-Corporate Engagement | Article
28 January 2021 - Recent, real-world cases illustrate how external expectations can shape and alter investors' responsibilities
Investor Risk and Responsibilities | Article
25 January 2021 - In a decade-long low interest rate environment, riskier asset classes have seen accelerated asset gathering as savers chase yield.
Article
11 January 2021 - By Allen He As noted in Funding the Future: Investing in Long-Horizon Innovation, it can sometimes be shrewd for investors to consider their portfolio companies’ research and development (R&D) pipelines as a series of options. Doing so can provide an alternative way of valuing a company and may help reveal a differentiated view of a company’s potential upside from R&D investment. R&D pipelines share several similarities with call options, chief among them their value pertaining to volatility and time to maturity. A chronic problem discussed in Funding...
Governance | Article
5 January 2021 - Recent research, including The Long-term Habits of a Highly Effective Corporate Board (2019), shows that diversity at the board level adds meaningful long-term value for companies and their stakeholders. Evidence on the increased effectiveness of diverse boards recently led Nasdaq to announce a proposed rule requiring listed companies have one woman and one other diverse board member – or explain why they weren’t complying.
Governance | Article
18 December 2020 - The U.S. Securities and Exchange Commission has proposed an amendment requiring Nasdaq listed companies to adopt rules intended to promote board diversity.
Metrics | Article
7 December 2020 - To the IFRS Foundation: FCLTGlobal is a 501(c)3 not-for-profit research organization that develops research and tools that encourage long-term business and investment decision-making across the global investment value chain. Focusing Capital on the Long Term began in 2013 as an initiative of CPP Investments and McKinsey & Company, which together with BlackRock, Dow, and Tata Sons founded FCLTGlobal in July 2016. In addition to our Founders, today our 50+ Member organizations span the investment value chain, including asset owners, asset managers and corporations, and are committed...
Investor Risk and Responsibilities, Stakeholder Capitalism | Article
4 December 2020 - Around the world, investors are facing an array of potential responsibilities. These potential responsibilities extend beyond an investor’s fiduciary duty or stewardship requirements and are evolving rapidly. They may include considering the comprehensive well-being of constituents, the entity’s license to operate, or the health of markets, society, or the planet.