Investor Confidence Index Declines to 80.8 In SeptemberState Street Investor Confidence Index: September 2006. (Graphic: Busines
September 19 2006 - 10:21AM
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
September 2006. According to the September index, investor
confidence decreased by 2.7, to 80.8 from August's revised reading
of 83.5. Looking regionally, the confidence of North American
institutional investors fell from 96.0 to 92.8. The confidence of
Asian investors increased to 90.6 from 86.6, and the confidence of
European investors rose from 88.4 to 89.1. Developed through State
Street Global Markets' research partnership, State Street
Associates, by Harvard University professor Ken Froot and State
Street Associates 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. "Investors are trying to
balance news of a slowing property market and weaker inventories
against the fall in commodity prices and its likely consequences
for consumer spending," said Froot. "The net result is a
continuation in the global downward trend in risk appetite that
began in June, but with some regional differences. European
investors remain cautiously optimistic, and Asian investor
confidence reached a 19-month high." "Consistent with a diminished
appetite for risk-taking, coupled with a more favorable environment
for consumers, global investors have recently favored defensive
sectors - consumer staples, telecoms and utilities," added
O'Connell. "This has been especially the case amongst U.S.
investors." 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 is 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 $10.9 trillion in assets under custody
and $1.5 trillion in assets under management at June 30, 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, September 19, 2006, and
the company will not undertake efforts to revise those
forward-looking statements to reflect events after this date.
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