Since pension funds as institutional investors are an important investor class, their behavior affects the markets for financial assets, including their pricing.
Each investor trades in the market to hedge the risk to his endowment and to speculate on future security payoffs using his private information.
By contrast, a changing investor ratio, driven by profit motives, will lead to asset dependency.
In such cases, the customers could be financial investors, typically private equity funds, specialized in high-risk investments.
At the same time, there was implicit recognition of the major coordination challenges facing private investors in smallholder agriculture.
These included granting firms and investors full exemption for customs import duties on plant, machinery, equipment and accessories required for the enterprises.
And the risks were not merely those that any investor might have expected in the uncertain years of early modern times.
Therefore, only the last three institutional investors mentioned above are significant as final demand for private securities.
