The Members of the Long-term Investors Club have agreed on the following key principles, which shall characterize their actions as long-term investors :

  • We believe that long-term investors’ ability to adopt a long-term horizon in investment strategies is a defining characteristic among investors in the global economy.
  • We believe that long-term investors have been playing and will go on playing a positive role in the global economy by supporting sustainable economic growth :
    • In periods of crisis through a stable investor behavior that allows value creation over the long-term,
    • In periods of growth through financing long-term projects that are less profitable in the short term than short-term investments but more profitable to the national and global economies in the long-term.
  • We believe in and support the establishment of an international philosophy of long-term investment organizations and we will work for that purpose in close cooperation with the main international financial, economical, and political governance bodies.
  • We believe that long-term investment must support social and environmental improvement ; therefore we will invest in accordance with the internationally recognized social and environmental responsibility policies.
  • We share a common identity as long-term investors, although our organizations cover a wide range of financial institutions such as pension funds, sovereign wealth funds, public investment institutions, reserve funds, endowment funds, development banks, and/or pension benefit guarantee schemes.
  • We believe that Environmental, Social and Governance issues can affect the performance of investors’ portfolios in a long-term perspective and that taking these issues into account may better align investors with broader objectives of society.
  • We believe that our diversity makes our commitments stronger and our unity as long-term investors more meaningful.
  • D20-LTIC Charter and Rules - revised version April 2019 pdfD20-LTIC - Charter and Rules (2019-04-26 Tokyo).pdf

Partnerships concluded by some members of the Club with think tanks, organizations and other institutions:

 

ELTI LOGO 72 dpi

 

 

 

 

 

 

ELTI 

Launched after the publication of the European Commission Green Paper on the Long-Term financing of the European Economy, in July 2013, the European Long-Term Investors (ELTI) association gathers 27 European long-term financial institutions. With a combined balance sheet of 2.3 trillion euros, ELTI's goal is to promote long-term investment in close alignment with the objectives and initiatives developed by the European Union to foster sustainable, smart and inclusive growth and job creation.

 

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OECD

The mission of the Organisation for Economic Co-operation and Development is to promote policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. OECD works with governments to understand what drives economic, social and environmental change. OECD analyses and compares data to predict future trends.

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WEF

The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

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Eurofi

Eurofi is a European think tank dedicated to financial services, with the aim of helping to build a fluid, efficient and secure EU Single Capital Market. Eurofi addresses prospective regulatory or industry driven subjects, as well as contentious issues which are currently debated at EU level or are of particular interest to EU industry players. Eurofi acts as a catalyst for the market and as a neutral go-between between industry players and EU Institutions.

G20 Germany Hamburg 2017

 

 

 

 

 

 

 

G20

The G20 has an ambitious growth agenda but governments cannot deliver this in isolation. Germany's host year will see the G20 continue to work closely with business and other groups.

 

 

 

 

 

 

 

 

What are the features of long-term investors ?

Long-Term Investors are characterized by a low reliance on short-term market liquidity thanks to stable resources, often made of regulated or guaranteed deposits, long term savings products (insurers, pension funds) or long term borrowing. They usually have a robust capital base, stemming mainly from reserve accumulation, that enables them to absorb short-term fluctuations in financial markets (drawing on reserves in bad years and feeding them in good years).

As such :

  • they have the ability to retain their assets longer than other market players, even in crisis periods, which can play a counter-cyclical role on financial markets ;
  • they can invest in - often illiquid - capital or debt instruments that yield a profitable return in the long run such as those issued by companies operating in sectors like general interest utilities, infrastructures, innovation projects, renewable energies and the like ;
  • their liabilities differ in quality from the ones of other financial investors ;
  • their investments are typically carried out with performance and risk targets calculated on a long term basis.

Long-Term Investors comprise major financial institutions financing economic development, sovereign wealth funds, pension funds, public retirement funds, insurance funds.

In the future there will be a growing demand for long-term investment both in the advanced and in the emerging countries. In mature countries, there is a pressing need to finance infrastructure, innovation, environmental programs, as well as to prepare for the consequences of an ageing population. In developing countries, the income per capita catching up process is requiring vast investment in infrastructure (transportation, TLC, energy, urbanization).  An intense and positive competition for long term finance, therefore, will characterize the world in the coming years. There is a general need to enlarge the worldwide share of financing for long-term capital investment  at the expense of the short termism and speculation. 

In 2009 Caisse des Dépots, Cassa Depositi e Prestiti, the European Investment Bank and Kreditanstalt für Wiederaufbau created the Long-Term Investors Club (LTIC) with the aim of bringing together major worldwide institutions to emphasis common identity as long-term investors, to encourage cooperation and to foster the right conditions for long-term investments in promoting growth. Today the D20 Long-Term Investors Club gathers 18 major financial institutions and institutional investors from all over the world mainly from G20 countries, representing a combined balance sheet total of USD 5.4 trillion.

The D20 LTIC has done much progress since its foundation to foster long-term investment not only in the EU but globally.  Cooperation among members has developed sensibly and policy makers, at the European and G20 level, are increasingly aware of the role LTIs can play. We believe that a long-term vision of finance and economy represents a real change of paradigm to get a strong, sustainable and balanced growth in global economy

 

Mission and Vision Statement:

“Comprising the leading financial institutions with a public mandate from the world's largest economies, the Long-Term Investors Club (“D20-LTIC”) aims to promote the role of long-term finance in driving economic development and sustainable growth around the world.
 

The D20-LTIC looks to partner with the G20 and other relevant multilateral formats through the provision of deep expert insight, thought leadership and best practice. Through D20-LTIC, members actively network and share valuable knowledge and insights around their specific topics of interest.”

 
 
President Dr Werner Hoyer intervention during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting on 13 October 2021
 
 
The 2021 annual Steering Committee meeting and D20 conference took place in Rome on 23+24 September, kindly hosted by our member Cassa Depositi e Prestiti (CDP)  in line with the Italian G20 presidency in 2021.
 
Statements:
 
 
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High-Level International Conference: FINANCING INFRASTRUCTURE FOR THE RECOVERY

The role of public-private cooperation to ensure a long-term sustainable growth

The D20-LTIC High-Level International Conference, promoted by the D20 Long-Term Investors Club, Cassa Depositi e Prestiti and the Italian G20 Presidency, in collaboration with B20 and T20 took place in Rome on 24 September 2021

On the occasion of the Italian G20 Presidency, the 21 members of the D20 Long-Term Investors Club provided recommendations for the G20 agenda on sustainable finance and public-private partnerships for long-term investment in infrastructure, key to the post-pandemic economic recovery.

 

 

Who are we ?

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Caisse des Dépots et Consignations The China Development Bank
Caisse de dépôt et placement du Québec Cassa depositi e prestiti
Caisse de Dépôt et de Gestion Development Bank of Japan (DBJ)
European Investment Bank Instituto de Crédito Oficial (ICO)
Japan Bank for International Cooperation Kreditanstalt fur Wiederaufbau
LTIIA Ontario Municipal Employees Retirement System
Turkiye Sınai Kalkınma Bankası newVEBlogo
Polish Development Fund - Polski Fundusz Rozwoju Global Infrastructure Basel Foundation
Saudi Industrial Development Fund  

Member access

LTIC Members may register for extranet access by sending a request to : LTIC-Secretary-General@eib.org