and ownership engagement by Serdar Çelik and Mats Isaksson* This article provides a framework for analysing the character and degree of ownership engagement by institutional investors. It argues that the general term “institutional investor ” in itself doesn’t say very much about the quality or degree of ownership engagement. It is therefore an evasive “shorthand ” for policy discussions about ownership engagement. The reason is that there are large differences in ownership engagement between different categories of institutional investors. There are also differences in ownership engagement within the same category of institutional investors such as hedge funds, investment funds, etc. These differences arise from the fact that the degree of ownership engagement is determined by a number of different features and choices that together make up the institutional investor’s “business model”.When ownership engagement is not a central part of the business model, public policies and voluntary standards aiming to improve the quality of ownership engagement among institutional investors are likely to have limited effect. Based on an empirical overview of the relative size of different categories of institutional investors, the article identifies a set of 7 features and 19 choices that in different combinations define the institutional investor’s business model. These features and choices are then used to establish a taxonomy for identifying different degrees of ownership engagement ranging from “no engagement ” to “inside engagement”.
Nuevo Leon plans more than US$1 billion for infrastructure upgrading, with ample opportunities for foreign investment. Monterrey and Nuevo Leon already offer excellent infrastructure, with good highway and rail connections to the U.S. market and impressive urban development. Now investments of up to US$2 billion will provide a new Metro (subway) line, highway upgrades, improved health facilities and a major expansion of the water supply, with significant opportunities for Mexican and international companies. Adapted from the source document.