OECD project on long-term investment

The increasingly short supply of long-term capital since the 2008 financial crisis has profound implications for growth and financial stability. Launched in 2012, this project aims to facilitate long-term investment by institutional investors such as pension funds, insurance companies, and sovereign wealth funds, addressing both potential regulatory obstacles and market failures.

Why is long-term investment important?

Patient capital allows investors to access illiquidity premia, lowers turnover, encourages less pro-cyclical investment strategies and therefore higher net investment rate of returns and greater financial stability.
 
Engaged capital encourages active voting policies, leading to better corporate governance.
 
Productive capital supports infrastructure development, green growth initiatives, SME finance, etc., leading to sustainable growth.

OECD  long-term investment contributions to G20

• G20/OECD Guidance Note on Diversification of Financial Instruments for Infrastructure and SMEs | Support Note

• G20-OECD High-level Principles of Long-term Investment Financing by Institutional Investors

• G20-OECD work on long-term financing

• OECD@G20 website

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Survey of Large Pension Funds and Public Pension Reserve Funds

Breaking silos: Actions to develop infrastructure as an asset class and address the information gap

Contacts

Raffaele Della Croce (tel: +33 1 4524 1411 | raffaele.dellacroce@oecd.org)

Joel Paula (tel: +33 1 4524 1930 | joel.paula@oecd.org)

Lucie Amour (tel: +33 1 8555 60 48 | lucie.amour@oecd.org) 

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www.oecd.org/finance/lti