Object of research: institutional investors system. Purpose of research: development of scientific and con-ceptual fundamentals of institutional investors' forming and functioning process as specific financing system of modern market economy, determination the place of such institutional investors in the system. Methods of re-search: system, comparative, historical analysis, induc-tion, deduction, generalization, analysis, synthesis, eco-nomic and mathematical methods, grouping, forecasting, transfer of quantitative changes into qualitative ones, eco-nomic processes' schemes and models design methods. Results: methodologically grounded new statement that institutional investors are self-organizing system of finan-cial institutions and their functioning based on the princi-ple of "collective individualism"; author's conception of institutional investors system structuring was proposed. The concept includes six basic forms of organizational institutions: pension funds, insurance companies, invest-ment funds, charitable funds, financial companies and deposit institutions; factors that cause institutional inves-tors' forming and functioning mechanisms were defined. In particular were defined: basic principles of activity, specificity of financial organization, national specificities, state regulation methods; stages of institutional assets management process were defined; was revealed the key role of institutional investors in solution of production and economic problems, including following: economic agents' financing, State's economic development level growth, participation in companies' merge and devour-ment processes, corporative management, participation in privatization processes, financing new research and devel-opment works, forming personnel potential; connection between institutionalization process and world financial system development was established; degree of institu-tional investor's participation in the solution of some so-cial problems. Amongst them there are encouragement in creating the system of social security, charitable activity and forming effective methods of accumulating the peo-ple's savings; revealed basic peculiarities of Ukrainian system of institutional investors forming and functioning, where leading role belongs to commercial banks and non-bank financial sector just start to develop; factors that stimulate dynamic development of institutional investors in Ukraine were determined and prospects of their further development were considered as well. Novelty: revealed the essence of new economic notions "system of institu-tional investors" and "system of institutional investment"; methodologically grounded notion that institutional in-vestors are the self-organizing system that includes units that interact as with each other as with environment, i.e. individual investors, financial managers, stock markets, State structures; author's conception of determining the stages of institutional investors system evolution con-nected to the development of world stock exchange mar-kets was proposed; role of institutional investors in solu-tion basic production and economy, finance and invest-ment and social problems was defined; at the first time the degree of institutionalization of stock markets was ana-lyzed. It characterizes the domination level of institutional investors at stock market; holistic system of common problems as for all institutional investors as for particular institutions was depicted. Main directions of their future development in Ukraine were defined as well. Field of use: republican.
