Singapore G20/OECD Task Force on Institutional Investors and Long-Term Investment
Co-organised by the G20 Australian Presidency and the OECD, and hosted by Singapore Ministry of Finance, this Roundtable on 4 June 2014 brought together government officials and business leaders to discuss steps to boost infrastructure investment, one of the key priorities of the G20 agenda.
Discussions focused on how policy makers and investors can facilitate private sector infrastructure financing, as well as issues related to governance for institutional investors and the accounting treatment for long-term investment. Members of the G20/OECD Task Force on Long Term Investment and G20 Investment & Infrastructure Working Group joined this event as observers.
The OECD-led Task Force on Institutional Investors and Long-Term Financing, is open to G20, FSB, APEC members and relevant international organisations, and works on developing high-level principles intended to help governments facilitate and promote long-term investment by institutional investors, particularly among institutions such as pension funds, insurers and sovereign wealth funds, that typically have long duration liabilities and consequently can consider investments over a long period.
The Singapore G20/OECD Task Force members met to endorse these principles and further develop High-level principles principles on Long-Term Investment Financing by Institutional Investors for consideration at the previous G20 Summits.
This event is part of the OECD Project on Institutional Investors and Long-Term Investment:
About the project
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., leadng to sustainable growth
G20/OECD Taskforce on Long-term Investment
Long-term investment is a key contributor to growth, job creation and stability. It contributes to OECD member priorities, including fostering inclusive growth and environmental sustainability, and is a part of the Programme of Work of both the OECD Committee on Financial Markets and the OECD Insurance and Private Pensions Committee. It is also a key element of G20, G7 and APEC work streams and priorities. The OECD supports the G20’s agenda on long-term investment through the G20/OECD Task Force on Long Term Investment.
The Task Force is open to governmental experts from OECD and G20, FSB and APEC governmental members. While the Task Force initially focussed on institutional investors and long-term financing, it now deals with issues beyond institutional investors (such as corporates, banks and Multilateral Banks) and beyond finance (such as taxation and development of financial markets, technologies, governance, environment, development, transport, connectivity and structural reforms reflecting the complex and interrelated nature of long-term investment).
Long-term investment is a key contributor to growth, job creation and stability. It contributes to OECD member priorities, including fostering inclusive growth and environmental sustainability, and is a part of the OECD Programme of Work, for both the Committee on Financial Markets and the Insurance and Private Pensions Committee. It is also a key element of G20, G7 and APEC work streams and priorities. As such, it is an important component of several Key Partners’ policies.
The OECD/LTI Network on Institutional Investors and Long-term Investment
The OECD has established a large network of investors engaged in the business of long-term investment, including a database with over 3,000 contacts, with a view to engaging in consultation and dialogue. The network includes investors (such as pension funds, insurance companies, asset managers, and Sovereign Wealth Funds), industry experts, academics, multilaterals and policy agencies involved in areas related to long-term investment.
Network members are regularly invited to provide comments on and contribute to OECD and related G20 and APEC work and are kept informed of relevant developments. The network constantly provides inputs to the agenda of the G20/OECD Task Force. This faciliates the monitoring of recently introduced financial market-based and governmental innovations that are addressing major societal challenges.