Supplier of Fund

Profile of Investors and the

Relative Influence
CHOLIE S. MONSANTO
 Supplier of Fund
Personal Section
Institutional Investors
Other Supplier of Funds-Bank Finance
Official and Specialist Supplier of Finance
Dwellings 65125
Land and other buildings 13339
Consumer durables 14195
Trade assets 5529
All physical assets 98188
Quoted government stocks 2740
Quoted company equities 24185
 trusts 2082 Overseas companies 1969
Unquoted U.K. government 4707
 Other government securities 1416
 Other U .K. company stocks 6314
 Cash and bank deposits 11864
Savings bank deposits 4686
Other deposits 15671
 Life policies 17563
 Loans and debtors 12703
All financial assets 105900
All assets 204088
Less liabilities 30199
Net wealth 173889
Source: Royal Commission on the Distribution of Wealth, Report No. 1, Cmnd. 6171 (London: H.M.S.O. 1975) table 33.
 Institutional Investors
Features which distinguish institution al investors are:
(I) that they are intermediaries, that is they invest on behalf of others:
(2) that they generally have much larger sums at their disposal for
investment than individual shareholders;
(3) there are comparatively few of them, and they can more easily act
in concert;
and (4) particularly in the case of insurance companies and pension
funds, they tend to have a net inflow of funds available for investment.
 Official and other
supplier of Finance
First we will look at a few government or government-backed sources
of finance. It is perhaps a debatable point whether government grants
form part of the capital market, but they are a source of supply of funds
and thus have a bearing on the cost of funds in the market generally.
During the period 1966-70 grants were made by the Board of Trade
towards the cost of plant and machinery and certain other assets.
Regional Development Grants were introduced in the Industry Act of
1972 but are confined to investment by firms within areas of high
unemployment, namely Special Development Areas and Development
Areas, at present at the rate of 22 and 20 per cent of cost respectively.