2 Feb 2012
State Street Global Markets, the investment research and trading arm of State Street Corporation, has released the results of the State Street Investor Confidence Index® (ICI) for January 2012.
Globally, the ICI fell to 92.4, down 2.1 points from December’s revised level of 94.5. In North America, institutional investors currently exhibit the most risk aversion, evidenced by the decline of 0.1 to 89.8 from December’s revised reading of 89.9. Sentiment in Europe declined to 10.1 points to 91.6, from the revised December level of 101.7, as European institutional investors reallocated away from core equity positions. Asian investors, however, added to their equity holdings, with sentiment increasing 3.3 points from December’s revised reading of 93.6 to 96.9.
The State Street Investor Confidence Index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
Globally, the ICI fell to 92.4, down 2.1 points from December’s revised level of 94.5. In North America, institutional investors currently exhibit the most risk aversion, evidenced by the decline of 0.1 to 89.8 from December’s revised reading of 89.9. Sentiment in Europe declined to 10.1 points to 91.6, from the revised December level of 101.7, as European institutional investors reallocated away from core equity positions. Asian investors, however, added to their equity holdings, with sentiment increasing 3.3 points from December’s revised reading of 93.6 to 96.9.
“Notwithstanding this most recent rally in January, world equity prices remain about 10% below their April 2011 short-term high,” said Paul O’Connell of State Street Associates. “It is clear from the significant decline in the European ICI that questions about the resolution of the European sovereign debt crisis remain uppermost in investors’ minds. A look at the underlying data reveals that investors did commit some new funds to emerging markets equities in January. It remains to be seen whether these flows will translate into wider commitments across more markets as we go through the quarter.”
The State Street Investor Confidence Index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
