resources, which is expressed in the fact that at the disposal of the financial
intermediary there are always available free resources for contractual obligations that
can and should be used to stimulate the investment process [21].
The institutional investors are affected by both internal and external factors.
Internal factors include the features of the institutional investors’ structure, as well as
the efficiency and quality of the services they provide. External factors include the
formation of the demand of the financial institutions and the population for services
provided by the institutional investors. At the same time, it is possible to distinguish
groups of factors of influence on the development of the institutional investors [22, p.
77]:
-
financial and economic - sustainable economic growth, development of the
financial market infrastructure, growth of real incomes, reduction of inflation rates;
-
regulatory - the existence of a developed system of regulation of joint
investment institutions, including legislative provision, the development of self-
regulation of the industry, favorable tax regimes;
-
social - raising the financial and investment culture of the population, the
mutual trust of the population, power and business, and the promotion of the
institutional investors by the state authorities and local self-government bodies.
Thus, the author's interpretation of the essence of the investment investors and the
distinctive features of their activity are characterized by distinguishing specific
institutions of the financial market that form an institutional investment system.
However, it should be noted beforehand that there is no consensus on the
composition of the institutional investors in foreign and domestic researchers.
Unanimity among scientists is traced only to the classification of the institutional
investors of insurance companies, non-state pension funds (NPFs) and joint investment
institutions (JIIs). This is explained by the fact that it is in the very nature of its
operation that these investors carry out the accumulation of investment resources of the
individual and corporate investors, as well as their further investment in various
investment objects.
Thus, the Law of Ukraine “On Securities and the Stock Market” stipulates that
the institutional investors include joint investment institutions (unit and corporate
investment funds), investment funds, mutual funds of investment companies, non-state
pension funds, banking management funds, insurance companies, other financial
institutions that carry out transactions with financial assets in the interests of third
parties at their own expense or at the expense of these persons, and in cases provided
for by law - also at the expense of the involvement of other financial assets of the
persons for profit or preservation of the real value of the financial assets. [23]
The NPF, JII, insurance corporations carry out investment activity in accordance
with the legislation which determines the peculiarities of their activity. Thus, the funds
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