Long term investing is the key to a more productive form of capitalism…the ultimate ‘win-win’ formula
INTERVIEW - Meet the editorial board: Keith Ambachtsheer
Anna Grebenchtchikova invites Keith Ambachtsheer as the next participant in this ‘relay interview’. Her reason: ‘He is the founding father of long-term investing, and I wonder how he is implementing the movement from theory to practice.’
What is your personal motivation to SHIFT TO?
'Long-term investing is the key to a more productive form of capitalism…the ultimate ‘win-win’ formula.'
How does this fit into your professional ambitions?
'Through my own writings and through the organisations I am affiliated with, I am in a position to advocate, encourage, and persuade people and organisations to adopt the ‘long-termism’ philosophy.'
In your opinion, where should the financial industry be in seven years’ time?
'The next seven years could be transformative if we can create ‘tipping point’ conditions'.
Who should we definitely hear from in this newsroom?
'I suggest Rob Bauer, Professor at Maastricht University and Director of the International Centre for Pension Management.'
Which issue is most urgent in your view/field of work?
'I am creating a workshop for those organisations that want to promote and foster ‘long-termism’, in which they compare notes to see how they can best work together. The rationale for doing this is set out in the January 2017 issue of the Ambachtsheer Letter (see below).'
Extra question from Anna Grebenchtchikova: How can a small (pension) fund contribute to and achieve a shift towards long term investing?
'Scale is an important driver of the cost-effective delivery of pension investment and benefit administration services, as is good governance. So what can a small pension fund with good governance do? The first thing the Board should ask itself is how to best outsource its investments and benefit administration functions so that they can benefit from scale economies. Regarding the investment side, a key outsourcing question becomes whether or not the investment services provider understands and employs investment processes underpinned by long-termism.'
Keith Ambachtsheer invites: Dominic Barton as the next participant of this 'relay-interview'. Reason:
'He, along with Mark Wiseman, is the cofounder of the FCLT (Focusing Capital on the Long Term) initiative which is now set up as a sustainable organisation to promote and implement sustainable ‘long-termism’ actions around the world on both the corporate and institutional investor fronts.'
And adds one question:
'How can the growing number of international agencies/collaborations promoting/fostering long-termism in investing (eg FCLT, UNPRI, CFA Institute, ICPM, 300Club, WEF, OECD, FSB, SASB, IIRC) best collaborate to create a tipping point that accelerates the adoption of long-termism in investing?'
The Ambachtsheer letter, January 2017
The members of the editorial board of SHIFT TO all have professional but also very personal reasons to join this initiative. In a ‘relay interview’ we learn more about their motivations as they ask each other: ‘Why do you want to SHIFT TO?’