How the institutions wield their power

Article Abstract:

Long-term institutional investors hold approximately 70% of the equity of UK corporations, giving investors enormous power. Due to the increased competition for institutional funds, fund managers must maximize returns for institutional investors, leading to a portfolio management strategy that emphasizes short-term returns. Institutions seek to maximize the return for their pensioners and policy holders and do not take an interest in actively influencing the policy formation of UK corporations to promote the long-term economic health of the UK. An analysis of institutional performance shows that in the long-term, many funds underperform the market. This phenomenon highlights the need for institutional investors to take a more active interest in the long-term performance of UK corporations and to strike a balance between short- and long-term investment strategies.

Methods, Analysis, Investments, Accounting, Institutional investments, Great Britain

---

Investment and unit trust PEPs

Article Abstract:

Current rules permit the transfer of up to 6,000 pounds sterling from personal equity plan (PEP) funds to investment trusts and unit trusts that have portfolios that are at least 50% made up of British equities. Moreover, under the provisions of the 1991 budget, the Inland Revenue is preparing new rules that will allow up the transfer of up to 3,000 pounds sterling from PEP funds to investment trusts and unit trusts that are at least 50% made up of European Community equities. These rules, both current and proposed, on PEP funds transfer have made investment trusts and unit trusts extremely attractive to individual investors, as the wide range of portfolios available in the trusts market allows investment risk to be effectively reduced.

Finance, taxation, & monetary policy, Management investment, open-end, Europe, Laws, regulations and rules, Securities, Mutual funds, United Kingdom. Board of Inland Revenue, Corporations, European

---

Similar abstracts:

• Abstracts: A long view of short termism. Large oaks help acorn grow. Widening non-executives' perspectives
• Abstracts: Replacing property that is converted can defer taxable gains. Selling a residence: current opportunities for deferring or eliminating tax on gain
• Abstracts: The structure of spot rates and immunization. Are Investors Rational? Choices among Index Funds. Explaining the rate spread on corporate bonds
• Abstracts: A concern about crime. Workplace solutions to private problems. City crimewave: who can stop the tide?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.