Article
16 June 2021 - By Allen He, CFA As the global economy rebounds, companies are preparing to launch a record wave of buybacks. Buybacks have become a global phenomenon over the past 20 years, with many companies viewing them as an attractive alternative to dividends in returning capital to shareholders. They are flexible, recycle excess cash to the economy, and provide tax advantages in certain jurisdictions. While buybacks can indeed be an effective way to distribute capital under certain circumstances – and can be used to signal to investors that their...
Stakeholder Capitalism, Climate | Article
27 May 2021 - Expectations placed on investors are ever-changing, can emerge from any of the institution’s many constituents, and extend beyond matters of law, regulation, or contracts.
Metrics, Climate | Article
19 May 2021 - On 19 May 2021, five global data providers released a joint statement in support of the creation of a core set of metrics for all companies regardless of sector, geography, or size.
Climate | Article
13 May 2021 - On 28 April 2021, FCLTGlobal hosted an info session on the topic of quantifying the market value of corporate net-zero commitments. This conversation served as an opportunity to share our preliminary research with a diverse group of attendees from global corporate and investment communities.
Policy and Geopolitics | Article
10 May 2021 - Most retirement systems have failed to grow and safeguard the savings of men and women equally. But there are a number of strategies that can solve the problem.
Risk and Resilience, Climate | Article
29 April 2021 - Commitments to net-zero objectives are taking hold across the investment value chain and present substantial opportunities. But are these initiatives likely to infuse capital into actual climate solutions, or do we risk creating structures that prioritize individual carbon neutrality while delivering less actual impact? Our conversation with investors and companies highlighted the importance of leadership in capital allocation and asset management approaches that produce measurable, long-term improvements in climate sustainability, rather than simply shifting assets to the next owner. Discussion Leaders Debby Blakey Chief Executive Officer, HESTA Ken Mackenzie Chairman,...
Governance | Article
20 April 2021 - For public companies, more diverse boards of directors are correlated with significant long-term value. The same can be true for private companies. What role can GPs and LPs play in driving change?
Article
13 April 2021 - In rethinking retirement for the 21st century, there is a critical need to provide a simple way for individuals to succeed at building retirement savings, particularly in light of the challenges posed by aging populations.
Risk and Resilience | Article
30 March 2021 - On March 24th, 2021, FCLTGlobal led a risk focus group alongside Alison Taylor and Brian Harward, a team of behavioral scientists from Ethical Systems, an in-house think tank at NYU’s Stern School of Business. The conversation brought together subject matter experts and decision makers with the aim of both understanding why long-term investors default to short-term measurement methods and identifying barriers that prevent them from better aligning risk with their investment horizons.
Article
23 March 2021 - Data from FCLTCompass shows that savers in China have among the shortest-term allocations in the world
Risk and Resilience | 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...
Climate | Article
2 March 2021 - Focusing capital on long-term climate solutions via investment portfolio construction