Wed, Jul 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Investor Confidence Index drops from 99.4 to 88.2 in May - State Street Global markets

Tuesday, May 25, 2010
Opalesque Industry Updates - State Street Global Markets, the investment research and trading arm of State Street Corporation released the results of the State Street Investor Confidence Index for May 2010. Globally, Investor Confidence fell 11.2 points to 88.2 from April's revised reading of 99.4.

Declines in sentiment in North America were a key contributor, with institutional investor confidence falling 5.0 points from 103.3 to 98.3. Among European investors, too, confidence was lower, falling 3.5 points from 95.7 to 92.2. In Asia, by contrast, confidence was robust, rising 6.8 points to reach 101.0.

Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Paul O’Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher is risk appetite or confidence It is based on actual trades rather than survey data, and as a result it captures the sentiment of institutional investors with unique precision.

“This month we saw institutional investors continue on the course they set last month, leading to substantial cuts in risk allocations,” commented Froot. “As was true at the onset of the sub-prime credit crisis in 2007, institutions were prescient with the cutback in risk that they instituted in March, even as markets continued to rise. The continued de-leveraging that we see this month signals that there is considerable uncertainty around euro-region deficit levels, and their knock-on implications globally.”

"Looking at the underlying data in more depth, it is fair to say that uncertainty around the outcome of the British elections played a role early in this month’s declines, as did the market volatility exhibited by US exchanges on May sixth,” added O’Connell. “The only optimistic note was struck by Asian institutional investors, though here too, investors were selective, favoring commodity-producing countries, but shying away from Europe and the US.”

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner