Institutional investors: activist investors seen boosting ownership.

• Author: Marshall, Jeffrey
• Position: BusinessBRIEFS - Brief Article

Despite aggregate stock market declines in the last few years, institutional investors have boosted their equity ownership control of U.S. markets, according to The Conference Board in its Institutional Investment Report. Data show that U.S. institutional investors controlled $19.63 trillion in assets in 2003, nearly matching their 1999 peak of $19.66 trillion. That was before the market shakeout in 2000-02, when total institutional investor assets dropped to $17.5 trillion.

"These investors tend to be the most activist in demanding corporate governance reforms and will continue to have a profound impact on every company not only in the U.S. but also in global markets, since U.S. investors have tended to be out in front of global shareholder activism," says Carolyn Kay Brancato, director of The Conference Board's Global Corporate Governance Research Center.

U.S. institutional investors have continued to hold 19 to 20 percent of total equity assets, down slightly from their 22.5 percent peak in 1999. The relative decline in share is attributed to...