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APG, TIAA and Abu Dhabi’s Mubadala no longer members of Long-Term Investors Club

Attention turns to the new FCLT Global initiative

It’s emerged that APG, the €433bn Dutch pension asset management firm owned by the civil service fund ABP, is among several leading investors that are no longer members of the Long-Term Investors Club (LTIC).

Abu Dhabi’s state-owned Mubadala Development Co. and TIAA, the $889bn US financial service provider formerly known as TIAACREF, are also no longer with the LTIC.

LTIC was set up in 2009 by a group of European institutions comprising France’s Caisse des Dépôts, Italy’s Cassa Depositi e Prestiti, the European Investment Bank and KfW Bankengruppe of Germany to encourage long-term investment thinking. Dominique de Crayencour, secretary-general of the Long-Term Investors Club, confirmed that three investors were no longer part of the club, but declined to provide any further details.

An APG spokesman said the group was now a member of the Focusing Capital on the Long-Term (FCLT) initiative which was formed in 2013 by the Canada Pension Plan Investment Board (CPPIB) and McKinsey & Company and which recently became formalized as FCLT Global.

“We cannot focus our efforts on too many things, and that’s why we have focused on the FCLT initiative,” the spokesman said.

“The FCLT comprises other like-minded pension fund investors – and we have been involved with this initiative for two years now,” he added.TIAA and Mubadala did not respond to requests for comment.

The new FCLT Global was formed last month as an independent not-for-profit organisation dedicated to encouraging long-termism in business and investment decision-making.

Founders include BlackRock, CPPIB, The Dow Chemical Company, McKinsey & Company, and Tata Sons.

Larry Fink, chairman and CEO of BlackRock, will serve as a strategic advisor to FCLT Global, while the global chair of FCLT Global is Mark Wiseman, the global head of active equities and chairman of BlackRock Alternative Investors who until recently was CEO at CPPIB.

In addition to the founders, FCLT Global involves member organisations, from nine countries, and include ATP, BP, Caisse de dépôt et placement du Québec, Edelman, GIC, Hillhouse Capital Group, Kempen Capital Management, New Zealand Super Fund, Ontario Teachers’ Pension Plan, PGGM, Piramal Enterprises Limited, Russell Reynolds Associates and State Street Global Advisors.
At the time of its rebranding into a not for profit organisation at the end of September, FCLT Global’s Chief Executive Officer, Sarah Keohane Williamson, said: “Short-termism is an issue that is costly to many countries and regions around the world, and we have a lot to accomplish.”