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FCLTGlobal

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FCLTGlobal
Founded2016
TypeNon-profit organization
FocusLong-term investment, Corporate governance
Location
  • Boston, Massachusetts, United States
Key people
Sarah Keohane Williamson (CEO)
Websitefcltglobal.org

FCLTGlobal is a non-profit organization that conducts research and develops frameworks related to extending investment time horizons and corporate planning periods. The organization was established in 2016 to study what it characterizes as short-term pressures in capital markets and corporate decision-making. FCLTGlobal operates through a membership model that includes pension funds, asset management firms, and multinational corporations. Its research is made publicly available through reports and white papers.

History

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FCLTGlobal originated from an initiative by CPP Investments (formerly CPPIB) and McKinsey & Company.[1][2][3][4] In 2013, these organizations collaborated on a research project titled "Focusing Capital on the Long Term" to address concerns about short-termism in global financial markets. From that initiative, FCLTGlobal was formally established in 2016 as an independent non-profit organization by CPP Investments, McKinsey, BlackRock, Dow Chemical, and Tata Sons.[5][6][7][8] Since its inception, the organization has grown to include member companies from across the globe, including major asset owners, asset managers, and multinational corporations. It has 501(c)3 status in the United States.[9]

Activities and Research

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FCLTGlobal conducts research on a range of issues related to long-term investing, corporate governance, and strategic decision-making.[10][11][12] Its reports and frameworks are designed to address problems that the organization claims stem from short-termism, such as quarterly earnings pressures, investor activism, and market volatility.[13][14][15][16][17]

The organization's 2017 report, The Corporate Horizon Index, attempts to measure a company’s short-term focus by looking at how much it invests, whether it uses accounting tactics to boost quarterly earnings, whether it engages in share buy-backs to boost earnings per share," among other criteria.[18][19][20] The report claims that if all other firms had appreciated as fast as the "long-term" firms, “U.S. public equity markets could have added more than $1 trillion in incremental asset value from 2001 to 2014.” [21]

The organization has also developed tools like the FCLT Gold Standard, which provides guidelines for management teams to adopt long-term practices.[22] The organization hosts events, including the annual FCLT Summit, which brings together corporate leaders, investors, and policymakers to discuss long-term value creation.[23]

Membership

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As of May 2025, FCLTGlobal's membership is composed of 64 companies and institutional investors from around the world. The members include asset owners, asset managers, and corporate entities. FCLTGlobal collaborates with these organizations to produce research and host events.[24] Members include:

Governance

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FCLTGlobal's board is composed of leaders from its member organizations. Current board members include Lei Zhang (Hillhouse Investment), Bob Sternfels (McKinsey) João Schmidt (Votorantim) and Carine Smith Ihenacho (Norges Bank Investment Management); past board members include Adena Friedman, Mark Wiseman, Peter Harrison, and Mark Machin.[35][36][37] Sarah Keohane Williamson has served as the CEO of FCLTGlobal since its founding in 2016.[5] Williamson is a former partner at Wellington Management and has frequently spoken about long-term thinking in corporate governance and investing.[38] In 2024, FCLTGlobal appointed Eduard van Gelderen, former CEO of APG Asset Management and CIO of PSP Investments, as Senior Managing Director and Head of Research.[39][40]

References

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  1. ^ "Launching FCLT Global: Combating short-termism around the world". CPP Investments. Retrieved 2025-05-21.
  2. ^ "Canada's CPPIB Leads New Effort to Promote Long-term Investing | Institutional Investor". www.institutionalinvestor.com. Retrieved 2025-05-22.
  3. ^ Wells, Jennifer (2016-01-22). "Canadian-led thinking filters through at Davos: Wells". Toronto Star. Retrieved 2025-05-22.
  4. ^ "CPPIB urges investors to look to companies with long-term vision". The Globe and Mail. 2016-01-21. Retrieved 2025-05-22.
  5. ^ a b "Long-termism goes global". www.mckinsey.com. Retrieved 2025-05-21.
  6. ^ Williams2016-01-21T13:46:00+00:00, Jonathan. "ATP, PGGM part of €650bn consortium backing S&P long-term index". IPE. Retrieved 2025-05-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  7. ^ "Push for quick profits 'destroying value,' executives warn". The Globe and Mail. 2016-09-29. Retrieved 2025-05-22.
  8. ^ Mair, Vibeka (2016-09-29). "Leading investors and companies join forces in long-term capital initiative". Responsible Investor. Retrieved 2025-05-22.
  9. ^ Roberts, Andrea Suozzo, Alec Glassford, Ash Ngu, Brandon (2013-05-09). "Fclt Co - Nonprofit Explorer". ProPublica. Retrieved 2025-05-21.{{cite web}}: CS1 maint: multiple names: authors list (link)
  10. ^ Peterson, Becky. "The managing director of a nonprofit founded by BlackRock and McKinsey explains the one thing companies can do to be more like Amazon". Business Insider. Retrieved 2025-05-22.
  11. ^ Flood, Chris (2017-10-26). "Fidelity says fund companies need to 'fundamentally rethink' fees". Financial Times. Retrieved 2025-05-22.
  12. ^ He, Allen; Pollock, Jessica (2024-08-26). "The Sustainability J-Curve". The Harvard Law School Forum on Corporate Governance. Retrieved 2025-05-22.
  13. ^ "Corporate short-termism is a frustratingly slippery idea". The Economist. ISSN 0013-0613. Retrieved 2025-05-22.
  14. ^ Whelan, Tensie (2018-08-23). "Trump is right: Quarterly earnings reports should go". CNNMoney. Retrieved 2025-05-22.
  15. ^ Posner, Michael. "Why Quarterly Reporting From Business Makes Sense". Forbes. Retrieved 2025-05-22.
  16. ^ Authers, John (2018-08-17). "Trump is right to push debate on quarterly reporting". Financial Times. Retrieved 2025-05-22.
  17. ^ Zweig, Jason (2018-08-17). "The End of Quarterly Reporting? Not Much to Cheer About". Wall Street Journal. ISSN 0099-9660. Retrieved 2025-05-22.
  18. ^ "Where companies with a long-term view outperform their peers | McKinsey". www.mckinsey.com. Retrieved 2025-05-22.
  19. ^ Murray, Alan. "Long-Term Thinking Is Best, New Study Shows". Fortune. Retrieved 2025-05-22.
  20. ^ Authers, John (2017-02-08). "A long-term view helps companies reach beyond targets". Financial Times. Retrieved 2025-05-22.
  21. ^ "The Case Against Corporate Short-Termism". Milken Institute Review. Retrieved 2025-05-22.
  22. ^ "An Enduring Path: Long-termism & the FCLT Gold Standard | Portfolio for the Future | CAIA". caia.org. Retrieved 2025-05-22.
  23. ^ a b "Driving Partnerships for Change". Temasek Corporate Website English. Archived from the original on 2025-02-12. Retrieved 2025-05-22.
  24. ^ "Institutional Investors Tackle Short-Termism, One Meeting at a Time | Institutional Investor". www.institutionalinvestor.com. Retrieved 2025-05-22.
  25. ^ "BlackRock's Fink: Long-term thinking essential in today's environment". Pensions & Investments. 2016-09-28. Retrieved 2025-05-22.
  26. ^ Capital, Bain. "Bain Capital Joins Long-Term Investing Group FCLTGlobal | Bain Capital". www.baincapital.com. Retrieved 2025-05-22.
  27. ^ "Sustainable Investing and Stewardship" (PDF). Fidelity Investments. Retrieved May 22, 2025.
  28. ^ "Mastercard partners with FCLTGlobal". www.mastercard.com. Archived from the original on 2025-04-22. Retrieved 2025-05-22.
  29. ^ "[Document Title]" (PDF). State Investment Board of Washington. 2024. Retrieved May 22, 2025.
  30. ^ "Letter to Shareholders" (PDF). Kering. March 2022. Retrieved May 22, 2025.
  31. ^ "Sweden : EQT joins FCLTGlobal and the movement to - ProQuest". www.proquest.com. Retrieved 2025-05-22.
  32. ^ a b Rust2021-01-21T15:55:00+00:00, Susanna. "Long-termism non-profit gains investment giants APG, NBIM [updated]". IPE. Retrieved 2025-05-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  33. ^ "FCLT Global Announces Board of Directors, Global Membership and Transformation into Independent Entity". www.otpp.com. Retrieved 2025-05-22.
  34. ^ "GIC Contributes to FCLTGlobal's Long-term Model for Institutional Investment Mandates | GIC Newsroom". GIC. Retrieved 2025-05-22.
  35. ^ "Bob Sternfels | McKinsey & Company". www.mckinsey.com. Retrieved 2025-05-22.
  36. ^ Staff2023-07-13T08:00:00+01:00, I. P. E. "People moves: Newton creates new head of product advocacy role". IPE. Retrieved 2025-05-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
  37. ^ "Wiseman Steps Down From FCLTGlobal Following BlackRock Termination | Institutional Investor". www.institutionalinvestor.com. Retrieved 2025-05-21.
  38. ^ "Meet FCLT Global CEO Sarah Williamson, the Future Fund's long-term thinker". Australian Financial Review. 2018-04-12. Retrieved 2025-05-22.
  39. ^ "Eduard van Gelderen Appointed Head of Research at FCLTGlobal". Chief Investment Officer. 2024-11-11. Retrieved 2025-05-21.
  40. ^ Staff2024-11-14T09:00:00+00:00, I. P. E. "People moves: DWS Group combines three units under new global CIO". IPE. Retrieved 2025-05-22.{{cite web}}: CS1 maint: numeric names: authors list (link)
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