Long-term investing has received fresh attention in light of the global economic crisis. Discussion has focused on how long-term investors – pension funds, sovereign wealth funds, foundations, endowments, insurers and family offices – are helping to stabilize financial markets, impact the time horizon of corporate managers and fund important long-term projects such as infrastructure and the development of a low-carbon economy. Yet the capacity of investors for long-term investing and their ability to play these critical economic roles has diminished in recent years. 

The Forum’s report, The Future of Long-term Investing, defines long-term investing and identifies long-term investors and the key constraints they face in making long-term investments. In addition, it explores the impact of long-term investing on investors, corporations and society and the outlook for long-term investing. 

The Forum’s subsequent report, Measurement, Governance and Long-term Investing, explores the impact of constraints on long-term investors related to measurement and governance: how challenges in measuring long-term investment values and returns, risks and liabilities intersect with the governance of long-term investors themselves. The report argues that, without effective governance, measurement schemes can distort decision-making around which investments are chosen and the time frame over which they are held. Yet the lack of meaningful, intuitive measurements for performance and risk over long time horizons adds more complexity to long-term investing and the governance of such efforts. 

For further information, please contact:
Irwin Mendelssohn, Associate Director, Investors Industries: irwin.mendelssohn@weforum.org