Are Your Investor Engagement Efforts Falling on Deaf Ears?

Research Suggests That Many Actively-Managed Institutional Investors Are Effectively Indexed to the S&P 500.

If your management team is doing great things, investors need to know. Sharing your strategy with portfolio managers at institutions known for active management should theoretically be a great way to get your story heard and ultimately get you credit for the steps your company is taking to drive value for shareholders. But our recent research suggests that, depending on the investors you’re targeting, some of your communications efforts could be in vain.

Just how much active management is really happening in the institutional investment universe? Maybe less than you think.

Have you ever wondered just how different actively-managed portfolios really are compared to their passively-managed counterparts? We decided to find out. And the answer is, not much.

We analyzed 150 U.S. institutional investor portfolios.

Our analysis included the 100 largest actively-managed U.S. institutional portfolios, as well as the top-50 small- and mid-cap U.S. investors, i.e., the institutions with the highest concentration of ownership in stocks with market capitalizations less than $5 billion. Collectively, these 150 institutions manage about $15 trillion in U.S. equity assets under management (EAUM). Depending on the benchmark, this amount could represent upwards of 50% of all U.S. EAUM.

Download our full research report below to see what we uncovered during our initial investigation along with our take on how these findings should factor into your targeting and engagement strategies.