16 Nov 2014 - In their Brisbane Summit communiqué, G20 leaders prioritised work to "facilitate long-term financing from institutional investors". Contributions by the G20/OECD Task Force on Institutional Investors and Long-term Financing included:
G20 leaders have highlighted the importance of long-term financing, focusing on infrastructure investment, to foster long-term growth. The OECD, within the framework of its project on Institutional Investors and Long-Term Investment, is participating in this work.
The OECD-G20 Mexican Presidency Seminar on Green Growth held in Paris on 22 May 2012 included a session on institutional investment and infrastructure. This led to the drafting of a G20/OECD Policy Note on Pension Fund Financing for Green Infrastructure and Initiatives for the G20 Los Cabos summit in June 2012.
The OECD report on the Role of Banks, Equity Markets and Institutional Investors in Long-Term Financing for Growth and Development was presented at the G20 meeting in Moscow on 15-16 February 2013. At this meeting, G20 leaders established a Study Group on Financing for Investment with the co-operation of international organisations to analyse obstacles and limitations delaying long-term financing and determine a work plan for the G20. Since then, the study group has been upgraded to a Working Group on Investment and Infrastructure. This reflects the high priority the 2014 G20 Australian Presidency places on this issue.
Prepared by an OECD task force working together with G20 members, the G20/OECD High-Level Principles on Long-Term Investment Financing by Institutional Investors were endorsed at the G20 Saint Petersburg summit in September 2013. G20 Leaders called on the OECD and other interested participants to identify approaches for their implementation by the next summit.
The OECD prepared a Survey of Large Pension Funds and Public Pension Reserve Funds Investments, which was presented at the G20 Finance Ministers and Central Bank Governors meeting in Washington on 10-11 October 2013. The survey is designed to illuminate the role that large institutional investors can play in providing a source of stable long-term capital, consistent with the objectives and directions as set down in the February 2013 communiqué from G20 Finance Ministers and Central Bank Governors.
The G20 also asked the OECD and other relevant international organisations to provide an analysis of government and market-based intruments and incentives for stimulating the financing of long-term investment. This report is scheduled for delivery at the November 2014 summit in Brisbane.
DOCUMENTS AND LINKS
Report to G20 on Pooling of institutional investors capital
– Selected case studies in unlisted equity infrastructure,
Annual Survey of Large Pension Funds
Angel Gurría speaks to G20 Leaders at their summit in Washington DC, 11 October 2013
Leaders endorse new G20/OECD principles on long-term investment financing, September 2013
G20/OECD High-level Principles of Long-term Investment Financing by Institutional Investors
The role of banks, equity markets and institutional investors in long-term financing for growth and development
Policy note on pension fund financing for green infrastructure and initiatives
G20-OECD High-level roundtable on institutional investors and long-term investment, Paris, 28 May 2013
G20 news, communiqués and documents