State Street Investor Confidence Index Rises to 82.3 in AprilState Street Investor Confidence Index: April 2006
April 18 2006 - 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(R) for April
2006. According to the April index, investor confidence increased
to 82.3 from March's revised reading of 81.9. Looking regionally,
the confidence of North American institutional investors fell
slightly to 91.1 from a revised level of 91.5 in March, and the
confidence of Asian investors also fell by 0.4 to 77.5 from March's
revised reading of 77.9. For the fourth month in succession, the
confidence of European investors improved, with the Index
increasing to 97.9 from March's revised level of 94.4. Developed
through State Street Global Markets' research partnership, State
Street Associates (SSA), by Harvard University professor Ken Froot
and SSA Director Paul O'Connell, the State Street Investor
Confidence Index(R) measures investor confidence on a quantitative
basis, analyzing actual buying and selling patterns of
institutional investors. The index is based on 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 equities. The more of their portfolio that
institutional investors are willing to devote to equities, the
greater their risk appetite or confidence. "This month, investors
continued the pattern established last month, increasing their
allocations to risky assets in three of the last four weeks,"
commented Froot. "While certainly below the benchmark highs
achieved in 2003, confidence has nevertheless recovered from the
very low levels seen in early 2006, and re-established itself in a
more normal range. On a global level, economic growth appears
reasonably solid, and while some moderation will occur in the U.S.
as monetary tightening runs its course and the housing market
cools, demand remains robust in other regions." "Looking
regionally, we see that European investors continue to reallocate
toward risky investments, leaving confidence well above the
low-water mark established in December of last year," added
O'Connell. "The allocations we observe are reasonably diversified,
too, which is encouraging. Elsewhere, investors in North American
and Asia remain somewhat cautious." Since its launch in September
of 2003, the State Street Investor Confidence Index(R) 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(R)
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. State Street Global Markets' research team of leading
academic and industry experts are committed to continually
advancing the science, including theory and application of its
proprietary investor behavior research and innovative portfolio
& risk management technologies to help its clients challenge
conventional thinking, shape ideas, make more informed investment
decisions and deliver measurable results. About the State Street
Investor Confidence Index(R): 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, including frequently asked questions and a 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 services. With $10.7 trillion in assets under custody
and $1.5 trillion in assets under management (as of March 31,
2006), State Street operates in 26 countries and more than 100
geographic 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 2005 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, April 18, 2006, and the company will
not undertake efforts to revise those forward-looking statements to
reflect events after this date.
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