Amundi Pension Funds Letter n°5

Building the long-term alignment

After several decades driven by short-termism, we have observed since the Global Financial Crisis the rising of a “long-term awareness”, the perception that we are facing long-term challenges and that long-term investment needs are expending.

The world can today observe some preliminary impacts of long-term materialising challenges on the society and the planet, such as climate changes or demography dynamics, having investors rethink the valuation of stock prices to include long-term trends not yet captured by financial markets. In addition, while life expectancy is increasing all over the world, the investment horizons are expanding and liability duration is increasing. 

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