An institutional investor is a company that will invest funds on its members’ behalf. These include institutions like life insurance companies, pension funds, commercial banks and hedge funds. The great thing about institutional funds is that they face fewer protective regulations and this benefits members as they fund in its collective wisdom is knowledgeable enough to safeguard their interests.
For example…
Superannuation funds are institutional investors and if you look at companies like Russell Investments, they will usually outline the areas and markets they invest in, provide members with detailed reports of their investments and have dedicated teams to ensure the best possible financial result for itself and its members.
