Investor Confidence Index Falls to 85.0 in JanuaryState Street Investor Confidence Index January 2007 (Graphic: Business Wire)
January 23 2007 - 10:02AM
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� for January
2007. Global Investor Confidence decreased by three points to 85.0
from December�s revised reading of 88.0. Looking regionally, the
confidence of North American institutional investors fell slightly
from 98.2 to 96.1. The confidence of European investors decreased
from 97.0 to 92.0, while the confidence of Asian investors fell
from 90.1 to 86.8. 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�
measures investor confidence on a quantitative basis by analyzing
the actual buying and selling patterns of institutional investors.
The index is based on financial theory that assigns precise meaning
to changes in investor risk appetite, or the willingness of
investors to allocate their portfolios to equities. The more of
their portfolio that institutional investors are willing to devote
to equities, the greater their risk appetite or confidence.
�Globally, investor confidence has settled into a somewhat narrower
range, comfortably above the levels seen at the start of 2006, but
below the levels of 2004 and 2005,� said Froot. �Giving investors
pause this month is a perception that growth will ease in 2007,
particularly in the G3 countries, as the effects of the US housing
slowdown, Japanese monetary tightening and European fiscal
restraint are felt.� �This month, all three regional indices
declined, the first time since December 2005 that this has
occurred,� added O�Connell. �The confidence of both European and
Asian institutional investors had reached all-time highs toward the
end of 2006, so some pullback there is perhaps not surprising.�
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�: 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 is the world�s leading
specialist in providing institutional investors with investment
servicing, investment management and investment research and
trading services. With $11.9 trillion in assets under custody and
$1.7 trillion in assets under management as of December 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, January 23, 2007, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
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