Investor Confidence Index Rises to 84.5 in JuneState Street Investor Confidence Index(SM): June 2005 (Graphic: Business Wire)
June 21 2005 - 10:00AM
Business Wire
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), released today the
results of the State Street Investor Confidence Index(SM) for June
2005. According to the June index, investor confidence increased by
3.1 points from May's revised reading of 81.4. Developed by Harvard
University professor Ken Froot and Paul O'Connell of State Street
Associates, the research unit of State Street Global Markets, the
index measures investor confidence on a quantitative basis,
analyzing actual buying and selling patterns of institutional
investors. The index is based on the financial theory that assigns
precise meaning to changes in investor risk sentiment, or the
willingness of investors to hold proportionally more or less of
their portfolio in higher-risk investments. "Investor confidence
moved upward this month, with U.S. investors feeling a notable
increase in their risk appetite for risky investments around the
world," commented Froot. "Confidence remains below the levels seen
earlier this year. Nevertheless, after two consecutive months of
substantial institutional winnowing, investors now seem willing to
take on additional risk at prices they now find relatively
attractive." "Investors around the world are now buying U.S.
equities at a consistent, though measured, rate," added O'Connell.
"This upward move in institutions' willingness to take risk across
their portfolios - especially in the U.S. -- is probably more due
to investor sentiment than to actual improvements in fundamentals.
In the U.S., for example, we have seen interest rates and inflation
remain low, but activity measures in the major developed economies
have slowed slightly." Since its launch in September of 2003, the
State Street Investor Confidence Index(SM) has become a key
economic indicator for asset owners, investment managers and
central banks. As the only index providing a quantitative measure
tracking the common buying patterns of institutional investors
around the world, the State Street Investor Confidence Index(SM)
offers a unique look into the investment behavior and decisions of
thousands of professional investors and their investment decisions.
About State Street Global Markets: State Street Global Markets
provides specialized investment research and trading in foreign
exchange, equities, fixed income and derivatives. Its goal is to
enhance and preserve portfolio values for asset managers and asset
owners. From its unique position at the crossroads of the global
markets, it creates and unlocks value for its clients with original
flow-based research, innovative portfolio strategies, trade process
optimization, and global connectivity across multiple asset classes
and markets. About State Street Associates: Founded in 1999 in
Cambridge, Mass., State Street Associates develops portfolio and
flow research, currency management, asset allocation services and
designs strategy tools to support the needs of global portfolio
managers. About the State Street Investor Confidence Index(SM): The
index is released globally at 10 a.m. Eastern time in Boston on the
second to last Tuesday of each month. More information on the State
Street Investor Confidence Index, and the calendar of release
dates, is available at
http://www.statestreet.com/investorconfidenceindex. The previous
month's calculations for the index are revised to account for
trading activity through the end of the reporting period. About
State Street: State Street Corporation (NYSE: STT) is the world's
leading specialist in providing institutional investors with
investment servicing, investment management and investment research
and trading. With $9.5 trillion in assets under custody and $1.4
trillion in assets under management as of March 31, 2005, State
Street operates in 25 countries and more than 100 markets
worldwide. For more information, visit State Street's Web site at
www.statestreet.com. 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
related to the pace at which State Street adds new clients or at
which existing clients use additional services, the value of global
and regional financial markets, the pace of cross-border investment
activity, changes in interest rates, the pace of worldwide economic
growth and rates of inflation, the extent of volatility in currency
markets, consolidations among clients and competitors, State
Street's business mix, the dynamics of markets State Street serves,
and State Street's success at integrating and converting
acquisitions into its business. Other important factors that could
cause actual results to differ materially from those indicated by
any forward-looking statements are set forth in State Street's 2004
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 21, 2005, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
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