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Investor Confidence Drops 6.6 Points in April

04/27/2022

BOSTON, April 27, 2022 — State Street Global Markets today released the results of the State Street Investor Confidence Index® (ICI) for April 2022.

The Global Investor Confidence Index decreased to 92.9, down 6.6 points from March’s revised reading of 99.5. The decrease was led by an 8.0 drop in North American ICI to 95.2 as well as a 6.7 drop in European ICI to 76.2. Meanwhile, Asian ICI rose 2.4 points to 92.0.

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners. 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.

“Risk Appetite continued to contract in April as the Global ICI fell just over 6 points, retracing almost all of its gains since the beginning of 2022,” commented Rajeev Bhargava, head of Investor Behavior Research, State Street Associates. ”The increasingly hawkish stance from the Fed in the face of surging inflation coupled with dampened global growth expectations likely drove aggregate risk sentiment lower. Interestingly, Asia was the only region that witnessed gains this month. However, with COVID infection rates soaring in some regional markets and the resultant lockdowns impacting economic activity, it remains to be seen if this constructive path persists.”

The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday of each So 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

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 $41.7 trillion in assets under custody and/or administration and $4.0 trillion* in assets under management as of March 31, 2022, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of March 31, 2022 includes approximately $73 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.

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The views expressed in this material are the views of State Street through the period ended April 27, 2022 and are subject to change based on market and other conditions.

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