Which type of institutional investor is the most active in monitoring the firm?

Question

Quizplus · Accepted Answer

Pension funds have a fiduciary duty to monitor the companies in which they invest, as they are managing the retirement funds of their participants. They are actively involved in monitoring the firm's performance and making recommendations to management if they perceive issues. Mutual funds, insurance companies, and bank trusts also monitor companies, but pension funds are typically considered the most active in this regard. Venture capitalists are not institutional investors but rather provide funding to startups and emerging companies.

Which Type of Institutional Investor Is the Most Active in Monitoring