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19 May 2018 - Hiromichi Mizuno, chief investment officer of Japan’s ¥162.8 trillion ($1.5 trillion) Government Pension Investment Fund, has made hiring external managers for a full market cycle a cornerstone of GPIF’s efforts to craft fee arrangements better aimed at promoting long-term approaches to investing. Mr. Mizuno, speaking on a panel May 15 at the CFA annual conference in Hong Kong, painted GPIF’s decision to make multiyear commitments to managers — while taking “short-term performance … totally out of the evaluation methodology” — as his response to managers’ criticism...
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14 May 2018 - The NZ$38 billion ($26.9 billion) fund, which established a team last year to make sizable direct investments domestically, said last week it will seek to lead a consortium to design, build and operate a planned NZ$6 billion light rail system for the city of Auckland.
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19 April 2018 - Sarah Williamson is the CEO of FCLTGlobal (formerly Focusing Capital on the Long Term), an organization cofounded in 2016 by BlackRock, CPPIB, Dow Chemical, McKinsey, and Tata Sons to encourage a longer-term focus in business and investment decision making. According to Williamson, a current concern among many institutional investors as well as corporations is that companies don’t get credit for long-term investments in R&D. This is both because the resulting knowledge might walk out the door, as employees join other firms or start their own,...
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13 April 2018 -
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18 March 2018 - Sarah Williamson, head of the Focusing Capital on the Long Term (FCLT), said the not-for-profit organisation was developing “some sort of scorecard” that would show whether the world was shifting its gaze beyond the short term. “We want to see more capital moving to a long-term view but how do we know if we’re moving the dial?” Williamson said.
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7 March 2018 - More than 150 corporate, investment and regulatory leaders last week issued a call to action intended to help the markets take a less short-term perspective. The gathering in New York, which included BlackRock CEO Larry Fink, Unilever CEO Paul Polman, McKinsey & Co CEO Dominic Barton and SEC chair Jay Clayton, featured discussions on how investors and issuers can work together to protect long-term shareholder value creation.
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22 February 2018 - The call itself followed the standard format of these highly scripted events. Vincent A. Forlenza, Chairman and Chief Executive Officer, started the call by presenting an executive overview, which included an affirmation of the company’s long-term strategy, before delving into highlights from the quarter. He was followed by Christopher Reidy, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer who discussed the company’s financial performance and provided a financial guidance update.
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14 February 2018 - But CPPIB still has about 10 per cent of its assets handled by external managers in public market exposures. This style of investment management is not typically associated with the long term, so how the board works with those managers is important to maintaining a consistent long-horizon framework.
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10 December 2017 - The Focusing Capital on the Long Term (FCLT) Global report released last week says the mandate rewrite would update a range of standard terms and conditions including fees, benchmarks and reporting to better align the relationship between asset owners and fund managers.
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7 December 2017 - In a new report, FCLT Global, which advocates a long-term investment approach by pension funds and asset managers, provided 10 recommendations for setting up long-term investment mandates. The recommendations included replacing directly terminable contracts with five-year arrangements linked to a fee discount. Currently, the fee discount is often subject to the scale of the mandate. FCLT Global’s list also addressed the use of benchmarks that focused on the long term as a standard for absolute return funds.
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6 December 2017 - The not-for-profit organization’s stated goal is to encourage investors, such as pension plans, to look at allocations through a longer-term lens. It brought together working groups of global institutional investors and asset managers to discuss what strategies are working, and ways to tailor investment mandates to bolster long-term success.