U.S. institutional investors continue to increase their equity ownership of American markets, according to a report by the Conference Board.
At the end of 2005, institutional investors—defined as pension funds, investment companies, insurance companies, banks and foundations—suffered a brief hiatus in the trend of steadily increasing ownership during the market break of 2000-2002, but have since rebounded robustly to control US$24.1 trillion in assets in 2005, up from a low of $17.3 trillion in 2002.
They held a record 61.2% of U.S. equities, up from 51.4% in 2000.
Institutional ownership of the 1,000 largest U.S. corporations was 69.4% in 2005, down slightly from 69.4% in 2004, but higher than 61.4% in 2000.
“The rise in the institutional share of U.S. equity markets means that the economic power and clout of U.S. institutional investors—including the activist state and local pension funds—continues,” says Dr. Carolyn Kay Brancato, senior fellow and director emeritus of The Conference Board Governance Center.
To view a related chart from the Conference Board’s website, click here.
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