While the long-term matters, so does the cascade of shorter time horizons that feed into the decisions of those responsible for the management of pools of institutional assets. If there is a misalignment between the time horizon of those making decisions and the time horizon those who are monitoring the outcomes of those decisions, then disappointment is likely to follow.

In this Viewpoint, we expand on this idea—that there are multiple horizons to consider—and describe some of the main time horizons that matter to institutional investors. Recognizing that there are multiple horizons can help investors avoid defining either success or risk too narrowly. This, in turn, can lead to better decision-making and progress evaluation.

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