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Investing for sustainable growth

The prevalence of short-termism in financial markets can have significant systemic repercussions for public policy. By identifying investment strategies that take into account long-term factors, both economic and public policies will be more beneficial and sustainable for longer.

Short-termism often prevails over long-term strategies in financial markets. This can undermine long-term investments such as new business ventures, infrastructure and retirement income for consumers. Actuaries’ training instils an understanding of the importance of long-term investment horizons, whether that is in the context of pension fund investment or the future of infrastructure development.  

By drawing upon their expertise in long-term modelling, actuaries are well placed to help highlight how investors can and should consider the long term effects of their investment decisions. Spanning issues from encouraging infrastructure investment to more sustainably invested pension funds, this work provides numerous means for investors to secure sustainable social, economic, and governance systems.

Other challenges in this area include how to communicate complex investment information to consumers, how to measure non-financial investment returns, and engaging with stewardship and fiduciary issues.

Contact Details

For further information, please contact the Policy Team at

Policy@actuaries.org.uk