Pension Funds Push G20 Leaders to Regulate and Reform With Long-Term Investing in Mind

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Pension funds and other investors participating in the Fiduciary Investors Symposium at Harvard University have written a letter to Australian Prime Minister Tony Abbott encouraging him and other G20 leaders to implement regulations and reforms that encourage long-term investing.

[The letter can be read at the bottom of this post.]

Australia is hosting the 2014 G20 summit.

From the letter:

There was a request to alert you to this support from the industry and to request action from G20 leaders on the following:

1. That we acknowledge the OECD’s definition of long-term capital in terms of being patient, engaged and productive.

2. That investor voices can play an important role in the discussion of those factors that are fundamental to the development of a sustainable financial system that delivers benefits to the economy, our societies and the planet, now and into the future.

3. That asset owners, including pension funds, sovereign funds and endowments have an interest to ensure that, in order to provide strong financial returns, and effective stewardship of assets as well as value creation, all the stakeholders in funds management need to be well informed about and active in pursuing a long term investment horizon. This requires a commitment to stronger direct engagement with companies and changes in reporting cycles and greater transparency.

4. That regulation can be enabling of long-term investment and we want to ensure that regulation does not inhibit long-term investment. We therefore encourage a deeper level of engagement between asset owners and investment managers with policy makers that relate to the evolving global financial, economic and social processes as they become more integrated and more complex and help design a regulatory framework that helps and does not hinder long-term investment.

Read the entire letter here, or below.


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