Focusing Capital on the Long Term Global (FCLTGlobal) is a not-for-profit member-based organisation that works to encourage a longer-term focus in business and investment decision-making. They develop practical tools and methods to support long-term behaviours among global asset owners, asset managers, and corporations.

FCLT Global began in 2013 as an initiative of the Canada Pension Plan Investment Board and McKinsey & Company, which together with BlackRock, The Dow Chemical Company, and Tata Sons founded FCLTGlobal in July 2016. It was launched based on observations of the short-term pressure on the investors and CEOs with whom they worked with, and around. They sought to test their observations with other business leaders through the use of research and conversations.

The “long term” is based on the mindset of investing in an asset for a prolonged period. More concretely, the long-term is considered to be the time it would take to successfully build a profitable new business, which is generally 5-7 years. This time frame can vary depending on the industry.

FCLTGlobal works to generate measurable change in capital market behaviour among savers, investors, corporations and other stakeholders by:

• Originating evidence-based research
• Engaging the global investment value chain to problem-solve and test strategies that create long-term value
• Developing tools and processes that help investment professionals put long-term strategies into action.

Their research reports include, Building long term value: A blueprint for CFOs, Institutional investment mandates: Anchors for long term performance, and Predicting long-term success for corporations and investors worldwide.

Executives have overwhelmingly expressed the increasing pressure they face to make short-term decisions. In fact, more than half of executives and directors at companies without a strong long-term culture say their company would delay a new project to hit quarterly targets, even if it sacrificed value. While it’s important to manage both immediate and longer-term demands, research suggests an over-emphasis on the short term has cost investments in employees, new jobs, new plants or equipment and spending on research and development. This makes it harder for economies to innovate and reduces the quality of life for people around the world.

FCLTGlobal develops practical tools and conducts original research to provide information on short-termism and to provide a practical solution in a longer-term focus in business and investment decision-making. FCLTGlobal is looking to rewire capital markets and the relationships among the organisations that operate within them, to better meet the long-term goals.

Our organisation is dedicated to rebalancing investment and business decision-making towards the long-term objectives of funding economic growth and creating future savings. FCLTGlobal works to generate measurable change in capital market behavior among savers, investors, corporations and other stakeholders by:

• Originating evidence-based research
• Engaging the global investment value chain to problem-solve and test strategies that create long-term value
• Developing tools and processes that help investment professionals put long-term strategies into action.

Their members are typically representatives of the asset owners, asset managers, and corporations that make up the global investment value chain. Members make a multiyear financial commitment.

Members include:

• Barclays
• BlackRock
• Bloomberg
• Bridgewater Associates
• CPP Investment Board
• CISCO
• EY
• HSBC
• McKinsey & Company
• Unilever

Find out more