Monday, August 8, 2011

Institutional Investors

Who are Institutional Investors?

• Institutional Investors manage funds invested by individuals.
• They are the biggest investors in many stock markets.
• They can wield great power over the companies in which they invest.
• Examples are: Pension funds, insurance companies, investment and unit trusts.



Ways of exercising institutional investors’ influence:

1. One-to-one meeting – discussion with chairman, directors or auditors.

2. Voting – Propose resolutions in AGM or EGM, not to re-elect directors.

3. Focus list – putting companies names on a list of underperforming companies

4. Contributing to corporate governance voting systems that measures the corporate governance performance indicators

5. Complain to regulators


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