The Future of Long-term Investing
The ability to make long-term investments is diminishing at a time when the need for long-term capital is significantly increasing, contends The Future of Long-term Investing, a report prepared by the World Economic Forum in collaboration with Oliver Wyman. In 2009, long-term institutional asset owners held slightly under half of the world’s professionally managed assets – approximately US$ 27 trillion out of US$ 65 trillion. The report finds that long-term investors as a whole have been able to allocate only 25% of their capital to long-term investments, and this figure is likely to fall as a result of the economic crisis and increasing regulation.