Investor Confidence Declined in June by 1.6 points to 101.0

Tuesday, June 27, 2017 11:04 am EDT

Dateline:

BOSTON

Public Company Information:

NYSE:
STT
"May's note of optimism after months of de-risking did not strengthen in June, with the Global ICI numbers hovering over the neutral 100-level mark"

BOSTON, June 27, 2017 — State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for June 2017.


The Global Investor Confidence Index declined slightly in June. The Index now stands at 101.0, down from May’s revised reading of 102.6.  Confidence among both Asian and North American investors declined, with the Asian ICI falling 4.4 points to 97.1, and the North American ICI falling 2.0 points to 102.2. Meanwhile, the European ICI increased by 1.7 points, from 96.8 to 98.5.


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.


"May's note of optimism after months of de-risking did not strengthen in June, with the Global ICI numbers hovering over the neutral 100-level mark,” commented Ken Froot.  “Even in North America, while the index remains in a ‘risk-on’ territory, the decline in investor confidence was likely driven by intensified concerns around overvaluation, oil prices and the US energy policy, as the Fed delivered its second rate hike in 2017.”


“Sentiment remains rather subdued across regions as investors do not appear to enthusiastically endorse the steady climb of risky asset valuations,” added Timothy Graf, head of Macro Strategy, EMEA, State Street Global Markets. “The neutral read on investor behavior disproves the notion of market complacency in the face of many latent risks." 


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 the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $29.83 trillion in assets under custody and administration and over $2 trillion* in assets under management as of March 31, 2017, State Street operates globally in more than 100 geographic markets and employs 34,817 worldwide. For more information, visit State Street's website at www.statestreet.com.
AUM reflects approx. $33.33 billion (as of March 31, 2017) with respect to State Street Global Advisors Funds Distributors, LLC (SSGA FD) which serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.


The views expressed in this material are the views of State Street through the period ended June 27, 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, June 27, 2017 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.
State Street Corporation One Lincoln Street, Boston, MA 02111-2900.
© 2017 State Street Corporation - All Rights Reserved


Expiration Date: 07/31/2018
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Contact:

Kerri Doherty
+1 617 664 1898
KCDoherty@statestreet.com
@StateStreet

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