Pension Funds

Long-term investing for large institutions - the best white papers

What does it mean to invest for the long-term?

Many investors believe that taking a long-term approach to investment will bring rewards; potentially not just for investment portfolios, but for society as a whole. In practice, there are countless different approaches and angles to "long-term investing", as research on the Savvy Investor platform demonstrates.

The papers below examine a number of different considerations relating to long-term investing: covering topics as diverse as the structure of the investment organization, pension fund governance, investment horizons, risk appetite and risk measurement, investment mandates and benchmarking, climate change and global demography.

City of London large institutions white paper

Alternatives and Long-Term Investing: Asset Allocation for Large Investors (BCG)
This report by The Boston Consulting Group provides guidance for large institutional investors on strategic asset allocation to alternative assets and thinking long-term. It examines the recent investment strategies and management practices of leading institutional investors around the world.

Long-Term Investing - Portfolio Guide (FCLT, 2015)
This 60-page report investigates a variety of approaches that may be taken by institutional investors in order to find new long-term investment strategies.

Long-term thinking: Investing in a changing world (LGIM, 2017)
How should investors navigate structural changes that are transforming the global economy? A long-term perspective of demographics, technology and energy is the key to success.

Long-Term Value Begins at the Board: Active Asset Stewardship (SSGA, 2017)
This is a speech delivered by John L. Weinberg of State Street at the 2017 Corporate Governance Symposium at the University of Delaware in March 2017.

Bridging the Gap: Adding Factors to Passive and Active Allocations (MSCI)
One increasingly popular way of enhancing long-term returns is for a board of trustees to adopts a factor investing program with the goal of harvesting long-term risk premia, from stock characteristics associated with superior performance.

The Benefits of Real Assets Diversification in DC Plans (Cohen & Steers, 2017)
With stocks and bonds facing the prospect of subdued returns, many DC plan fiduciaries are considering diversification options for portfolios. This paper makes the case for liquid real assets.

Long-term return forecasts 2017 - the top white papers
Below we have listed some of the top papers, all published in 2017, which provide long-term return forecasts; plus another paper which aims to unlock the holy grail of assessing fair value in equity markets.

The Divergence of High- and Low-Frequency estimation
This paper is a collaborative effort between State Street Global Exchange and Windham Capital Management. It provides findings that are important to asset allocators looking at long-term asset allocation goals. 

ESG Institutional Investor Survey: Performing for the Future (SSGA, 2017)
This 24-page paper examines the challenges that inhibit greater ESG adoption. It describes the pathways that are evolving to facilitate ESG integration into the investment process.

Effective Pension Fund Governance? Do Pension Funds Invest for the Long-Term?
This study is part of a collection of pension fund governance research projects looking back over a period of 20 years. It explores how asset owners and asset managers can better run their organizations with a view to the long term.

The Investment Implications of Global Warming (Newton IM, 2017)
The author of this paper, Victoria Barron, RI Analyst at Newton Investment Management, discusses some of the investment implications of global warming.

Designing an Investment Organization for Long-Term Investing
This paper discusses how investment management firms might be built to successfully pursue long-term investing by addressing four building blocks: organizational; incentives; investment approach; and discretion over trading.

Long Term Investing: What Determines Investment Horizon?
This paper, a collaboration with Australia's Future Fund, reviews the literature on the topic of the investment horizon, in order to improve how institutional investors' understanding of potential influences on long-term investing.

Opportunities From Climate Change: Playbook for the long-term (Cambridge Associates)
How should fiduciaries, pension funds and managers of globally diversified funds approach the subject of climate risk? How should this question impact upon portfolio management? This paper explores the risks and opportunities.

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