The Conference Board’s annual Institutional Investment Report provides analysis of the asset growth and portfolio composition of institutional investors operating in the United States. The 2009 edition is structured as follows: Part I examines historical trends regarding the investment in US financial markets by institutional investors as a group and by individual types of institutions, including pension funds, investment companies, insurance companies, savings institutions, and foundations. The section features information on overall asset growth as well as asset allocations across institutions. Parts II through V expand on the general analysis of Part I by providing a closer snapshot of institutional investments in single asset classes, such as equity (Part II: US Equity Markets), debt securities (Part III: US Bond Markets), alternative instruments including hedge funds (Part IV: Hedge Funds and Alternative Instruments), and foreign securities (Part V: Foreign Financial Markets). This edition focuses on the wide-ranging implications of the most recent economic recession and stock market declines on institutional asset value and investment decisions.
Selected findings from the report include:
Losses in 2008 alone erase years of steady growth: At the end of 2008, when measured as a percentage of outstanding U.S. financial assets, institutional assets had reached their lowest level since 1980: 15.8%. The investment industry reported substantial losses across virtually all asset classes, with total institutional assets plunging 21.3% to $22,251.7 billion, a level similar to what was recorded in 2004
The recession did not alter the institutional landscape: Declines in capitalization occurred fairly evenly across the institutional investor spectrum, without significant changes to the share of total institutional assets held by type of institution. At the end of 2008, pension funds were still the leading category, holding 38.6% of total institutional assets.
This report is available to London Business School students, faculty, staff and alumni from Conference Board Online which can be found on the A-Z list of library databases via Portal.
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