Institutional Investors Take Greater U.S. Corporate Control

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This article appears courtesy of Institutional Investor
Source: InstitutionalInvestor.com

Declines in the stock market have not dampened institutional investors' enthusiasm for acquiring equity ownership control of U.S. markets, according to The Conference Board.

In its latest Institutional Investor Report, the board says institutional investor corporate investment has bounced back in 2003 to 1999 levels, after dipping during the Internet bubble burst of 2000-2002.

The report found that U.S. institutional investors control about 20% of corporate assets, down from a record 22.5% in 1999. Of the total figure of $19.634 trillion that institutional investors control pension funds accounting for 40.7%, followed by insurance companies (23.3%), bank and trust companies (11.7%) and foundations (2.4%).

Fastest-growing holders are investment companies and mutual funds which together rose from 2.6% in 1980 to 22% in 2003.