Chapter 8 The Rise of Institutional Investors
Several different types of institutional investors have come to dominate our capital markets. Here we loosely break them into their legal forms, and then the investment types in which they participate, to try to make them and the pressures they face understandable.
Mutual Fund Development
To trace the origin of the pooled investment vehicle we call the mutual fund we again look to the Dutch Republic. The first known such fund was formed in 1773, by Amsterdam-based businessman Abraham van Ketwich who created a trust named Eendragt Maakt Magt (“unity creates strength”). His aim was to provide small investors with an opportunity to diversify, which continues to be an important advantage provided by mutual ...