One of the most important recent developments in financial markets is the institutionalisation of saving associated with the growth of pension funds, life insurance companies, and mutual funds. An increasing proportion of household saving is now managed by professional portfolio managers instead of being directly invested in the securities markets or held in the form of bank deposits. With the ageing of the population and its adverse impact on public pension systems, the shift of individual savings to institutional investors is likely to become even more marked in the coming years. This book provides a comprehensive economic assessment of institutional investment. It charts the development and performance of the asset management industry and analyses the implications of rising institutionalised saving for the development of the securities trading industry, the financial sector as a whole and the wider economy. The book draws extensively on international experience, particularly in the United States, Western Europe and Japan.

Author Biography

E. Philip Davis is Professor of Economics and Finance at Brunel University and Visiting Fellow at the National Institute of Economic and Social Research, London. Benn Steil is Andre Meyer Senior Fellow and Director of International Economics at the Council on Foreign Relations and Editor of the journal International Finance.