The Long-Term Investors Club (LTIC), a group of 18 investors and financial institutions, has rebranded itself as the D20-LTIC following its annual meeting held last week in Tokyo.
The D20 is an informal grouping of development finance institutions from G20 countries, which has collaborated closely with LTIC in the past. Both organisations have significant membership overlap, although not all LTIC members are from G20 countries.
The LTIC acronym has been maintained due to its long association with the organisation.
Members of the newly-monikered D20-LTIC have also voted to extend the term of the presidency, from two years to three years, to ensure “long-term continuity” according to an organisation spokesperson.
The European Investment Bank (EIB) President, Werner Hoyer, and Banco de Inversión y Comercio Exterior (BICE) – the Argentinian-state owned development bank – President Francisco Carbera have been re-elected President and co-President of the D20-LTIC.
In his opening remarks, Hoyer outlined a renewed organisational focus on mobilising capital for sustainable infrastructure, particularly from the private sector.
According to Hoyer, investors such as pension funds, insurance companies and sovereign wealth funds currently hold only 0.7% of Emerging Markets and Developing Economies infrastructure investments.
This dovetails with ongoing work by the G20 to promote infrastructure as an asset class to meet the Sustainable Development Goals (SDGs) by 2030. A key project is the Infrastructure Data Initiative (IDI), a “one-stop shop for infrastructure data”, aimed at countering high risk perceptions and restrictive regulatory frameworks of investing in EM.
Hoyer also called for D20-LTIC members to carry out a “proper assessment of the (climate) vulnerability of the current stock of assets”. Scenario analysis is a key plank of the Task Force for Climate-related Financial Disclosures (TCFD) recommendations and is emerging as a priority for investors as best practices continue to be developed in the area.
Despite previously enjoying a prominent profile in the responsible investment space, LTIC had not made any significant announcements in recent years and has seen a number of high profile exits including Dutch pension fund manager APG, Abu Dhabi’s state-owned Mubadala Development Co. and TIAA, the $1trn US financial service provider. APG cited its desire to focus on another, similar initiative – Focusing Capital on the Long Term – while the others did not provide a reason for leaving the group.The group was founded by the four major European development institutions – France’s Caisse des Depots, Italy’s Cassa depositi e prestiti, the European Investment Bank (EIB) and Germany’s KfW – in 2009.
President Hoyer called for members to carry out a “proper assessment of the (climate) vulnerability of the current stock of assets”.
According to the group’s current key principles, long-term investors play a key market role by supporting value creation through periods of market upheaval and through the financing of long-term projects which are less profitable in the short term.
Members of D20-LTIC
- Banco de Inversión y Comercio Exterior S.A. (BICE)
- Banco Nacional de Desenvolvimento Econômico e Social (BNDES)
- Long-Term Infrastructure Investors Association (LTIIA)
- Turkiye Sinai Kalkinma Bankasi (TSKB)
- Ontario Municipal Employees Retirement Systems (OMERS)
- Kreditanstalt Fur Wiederaufbau (KfW)
- Japan Bank for International Cooperation (JBIC)
- Latin American Association of Development Financing Institutions (ALIDE)
- Instituto de Crédito Oficial (ICO)
- Development bank of Japan Inc. (DBJ)
- European Investment Bank (EIB)
- Caisse de Dépôt et de Gestion (CDG)
- Cassa Depositi e Prestiti (CDP)
- Caisse de dépôt et placement du Québec (CDPQ)
- China Development Bank (CDB)
- Caisse des Dépôts (CDC)