G20/OECD High-Level Principles of Long-Term Investment Financing by Institutional Investors

One of the greatest threats to future global prosperity is a lack of key infrastructure in both emerging and developed economies. In response, Oliver Wyman’s Global Risk Center is participating in the Organisation for Economic Cooperation and Development’s “Institutional Investors and Long-Term Investment” project.

This research effort is exploring how best to stimulate long-term infrastructure investment by institutional investors such as pension funds, insurance companies, and sovereign wealth funds.

G20/OECD High-Level Principles of Long-Term Investment Financing by Institutional Investors is one of the outputs aligned to this project. The document identifies eight principles that address regulatory and institutional impediments to long-term investment by institutional investors, from the preconditions to long-term investment, through tax and regulatory regimes, to governance and educational issues. These principles aim to help policy makers design a policy and regulatory framework that encourages institutional investors to act in line with their investment horizon and risk-return objectives, enhancing their capacity to provide a stable source of capital for the economy and facilitating the flow of capital into long-term investments.