Investor Confidence Rose in February by 1.5 Points to 70.9

Wednesday, February 27, 2019 11:23 am EST

Dateline:

BOSTON

Public Company Information:

NYSE:
STT
"Institutional investors remained cautious in February, continuing to show hesitance toward riskier assets"

BOSTON, February 27, 2019 — State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for February  2019.

The Global Investor Confidence Index increased to 70.9, up 1.5 points from January’s revised reading of 69.4. Confidence among North American investors showed a slight uptick, with the North American ICI rising from 65.7 to 66.3. The European ICI rose by 6.1 points to 96.0 and the Asia ICI decreased by 3.5 points to 96.4.

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.

“Institutional investors remained cautious in February, continuing to show hesitance toward riskier assets,” said Kenneth Froot. “With lingering growth and trade policy uncertainty, it appears that the more dovish Fed and the hopes for progress on the US-China trade front are not enough to tip the scales – related to risk aversion.”

“Global institutional investor confidence has exhibited little signs of recovery following last month’s sharp decline in the ICI. Although cross-asset volatility has tempered, the crude memories of Q4’s market decline, along with increasing  growth concerns in Europe and China, place headwinds on investor confidence,” commented Rajeev Bhargava, managing director and head of Investor Behavior Research, State Street Associates.

The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/ideas/investor-confidence-index.htm.

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 $31.62 trillion in assets under custody and administration and $2.51 trillion* in assets under management as of December 31, 2018, 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.

*This figure is presented as of December 31, 2018 and includes approximately $32.44 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

Investing involves risk including the risk of loss of principal.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.  You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
The views expressed in this material are the views of State Street through the period ended February 27, 2019 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 27, 2019 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: 2/27/2020

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