World Economic Forum and consultancy firm Oliver Wyman's report finds long-term institutional investing to shrink and will affect company strategy.

The amount investors can allocate to long-term investing is expected to shrink over time as a result of the economic crisis and increasing regulation putting pressure on companies to act more for short-term profit than invest for the future.

The Switzerland-based non-profit World Economic Forum and consultancy firm Oliver Wyman in their report, The Future of Long-term Investing, said that in 2009 long-term institutional asset owners held $27 trillion, which was less than half of the world’s professionally managed…