Written by Ian Goldin
FundForum International is delighted to have Ian Goldin speaking at the event this June
When asset managers invest in a particular company or asset, they do so in anticipation that the asset will enjoy positive performance over the coming years or indeed decades. It is therefore inherently in asset managers’ interest to build a bridge from the short to long term, for it is the long-term evolution of the markets that will determine the redemption value of investments.
The Oxford Martin Commission for Future Generations, convened by the Oxford Martin School at the University of Oxford, brought together a group of international leaders concerned about the increasing short-termism which pervades governments and business cultures. Our report, Now for the Long Term, was launched in October 2013 and outlines a number of recommendations to advance the interests of future generations and promote resilient, inclusive, and sustainable growth. One of our key messages is that it is not only governments that need to take the longer-term view; the corporate sector, too, must shoulder greater responsibility. The Commission calls for investors and regulators to give greater priority to long-term ‘health’ and look beyond daily or quarterly reporting cycles; ultimately, this will require smarter regulation, remuneration tied to long-term performance, and voting structures that reward long-term growth.
Some prominent pension funds are leading the way in calling for the prioritisation of the long term, as are individuals such as Dominic Barton, Managing Director of McKinsey & Company, and Mark Wiseman, President and CEO of Canada Pension Plan Investment Board. The asset management community has a particularly important role to play in the pursuit of long-term thinking; not only do asset managers possess a fundamental interest in looking ahead, but businesses alone do not have the power to lobby against the mark-to-market accounting, quarterly earnings, and short-term incentive bonuses that currently exist. Given that the underlying interests of much of asset management are inherently long term, asset managers could play a more significant role in championing longer term thinking and investment across the corporate sector, revaluing the future for the benefit of all.
You can hear more from Ian next month at FundForum International Download the latest agenda today for a good overview of what’s on offer at FundForum this year, or visit the website for more information.
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