Long-term Investing in a Short-term World
Mercer's Global Investment Forums provide the setting for stimulating and informative discussions on the economy, institutional investments, pension plan management, and more. Over the years, we've had hundreds of institutional investors, asset and fund managers and, Mercer investment professionals come together to connect, learn, and share.
Today’s investment environment often resembles an echo chamber in which competing views around economic data and policies appear to dominate discussions. While we recognize the need to be aware of “the noise of the market”, we encourage our clients to take a long-term perspective. How should investors do that and how should they behave in such a hyper-active, hyper-connected world?
The challenge is not new – Keynes stated in 1936 that “investment based on genuine long-term expectation is so difficult ... as to be scarcely practicable” – many would say the same today.
While a truly long-term approach may not be a goal for all clients, for example plans with a finite and reducing time horizon, the provision of wealth and retirement assets is most usually undertaken with a focus on the long term accumulation of assets. A client's governance structure, philosophy and decision-making process should be designed to encourage long-term decision-making which we believe provides material advantages not available to all market participants.
In 2016, the Forums will focus on how institutional investors can take a long-term perspective and add further value. We will look at how innovation continues to assist and disrupt the investing landscape, how market participants are changing, and how our clients can navigate an ongoing low-return environment. Our aim is to be visionary and practical and acknowledge the short-term pressures and constraints our clients face while also helping them to stay focused on their longer-term objectives.
We look forward to seeing you at the Forums.