Institutional investor

An institutional investor is a professional money manager whose job it is to put money into shares and other assets on behalf of private investors who entrust them with money via their pension and life insurance funds. Institutional investors also manage pooled investments such as Unit Trusts and Investment Trusts.

So in other words institutional investors exist to gather together and manage the savings of individuals like you and me!

In return for our money they offer us pensions insurance and stockmarket-related investments. Even if you dont own any shares directly yourself the chances are that your pension or your endowment policy does!

Some of the biggest managers of money or institutional investors in the UK are companies such as Prudential The Pru to you and me! Barclays HSBC and Merrill Lynch.

You may ask which institutional investors are the best at managing money Well theyre usually all good at something and quite often perform badly at something else!

See Also Online share dealing service Stockmarket Centre

2009-02-17 00:00:00 © Moneyextra.com