BOSTON, February 28, 2017 — State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for February 2017.
The Global ICI decreased to 92.9, down 1.6 points from January’s revised reading of 94.5. The decline in sentiment was driven by the 9.3 point decrease in the European ICI to 83.3 along with the 4.0 point decline in the Asian ICI to 104.0. By contrast, the North American ICI rose 3.8 points from 90.9 to 94.7.
The Investor Confidence Index was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business. It measures investor confidence or risk appetite quantitatively 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 risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
“In February, global institutional investors continued to shy away from risk despite the ongoing uptrend in risky asset prices,” commented Ken Froot. “Interestingly, we note a striking disparity in risk tolerance between North American investors and other regions. It remains unclear whether this disparity stems from the relative dynamism of the US economy in the developed world, or from unrealistic Trumpian optimism on earnings and growth instead.”
“Given the improving economic outlook across most regions, we would assume that the sharply weaker confidence captured by our regional index in Europe was driven by growing political concerns ahead of the upcoming elections in The Netherlands, France and Germany,” commented Michael Metcalfe, senior managing director and head of Global Macro Strategy, State Street Global Markets.
About the State Street Investor Confidence Index®
The index is released globally at 10 a.m. Eastern time in Boston on the last Tuesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/ideas/investor-confidence-index.html.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $29 trillion in assets under custody and administration and $2 trillion* in assets under management as of December 31, 2016, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
* Assets under management were $2.47 trillion as of December 31, 2016. AUM reflects approximately $30.62 billion (as of December 31, 2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.
The views expressed in this material are the views of State Street through the period ended February 28, 2017 and are subject to change based on market and other conditions.
This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those set forth in State Street's 2015 annual report and subsequent SEC filings. State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, February 28, 2017 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.
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Expiration Date: 02/28/2018