BOSTON, March 28, 2017 — State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for March 2017. The Global ICI increased to 95.4, up 4.2 points from February’s revised reading of 91.2. Confidence among the European investors improved with the European ICI rising 11.9 points to 95, up from February’s revised reading of 83.1. The Asian ICI also rose from 104.3 to 109.6. Meanwhile, the North American ICI declined by 0.3 points from 91.9 to 91.6.
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 the US, significant skepticism remains given the strong run in stocks year-to-date,” commented Froot. “Exiting historically low rates is a policy withdrawal investors have not experienced before; therefore it is natural that such an extreme policy is being questioned.”
“The pull back in European investor confidence last month reversed course in March, with the index gaining 11.9 points,” commented Rajeev Bhargava, managing director and head of Investor Behavior Research, at State Street Associates. “Easing of political tensions in the region post the Dutch elections, as well as sustained economic momentum on the back of a series of positive economic surprises, seems to have contributed to the more constructive tone from investors.”
About State Street
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.
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
The views expressed in this material are the views of State Street through the period ended March 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, March 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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