Oct
01
2011
Institutional Investors
Managers of the funds of financial entities manage those funds to meet specified investment objectives. For many institutional investors (insurance companies, pension funds, investment companies, depository institutions, and endowments and foundations), those objectives are dictated by the nature of their liabilities. It is within the context of the asset/liability problem faced by managers of institutional funds that investment vehicles and investment strategies make any sense. Therefore, we provide an overview of the investment objectives of institutional investors and the constraints imposed on managers of the funds of these entities.