Investor Confidence Index Falls to 87.0 from 97.7 in July(Graphic: Business Wire)
July 24 2007 - 10:00AM
Business Wire
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), today released the
results of the State Street Investor Confidence Index� for July
2007. Global Investor Confidence fell by 10 points to a level of
87.0. Leading the decline were North American institutional
investors, whose confidence fell sharply from 107.0 to 95.8. The
decrease was mirrored in Europe, where confidence declined from
98.1 to 90.4. Asian investors, however, maintained their risk
appetite at recent levels, and as a result the Index for that
region showed only a modest decline from 84.0 to 83.5. 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. �After the relatively
strong readings we have recorded in recent months, it is perhaps
not surprising to see something of a reversal this month,�
commented Froot. �Even as the macroeconomic growth picture has
crystallized, the conflicting signals being sent by individual
earnings announcements, coupled with the likelihood of tighter
monetary conditions than previously expected, have resulted in a
more cautious pattern of investor behavior this month.� �Confidence
among Asian investors has run somewhat below that exhibited among
their European and North American counterparts for much of 2007,�
added O�Connell. �As a result, Asian investors have displayed less
susceptibility to the turmoil in the sub-prime and credit markets.�
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 (NYSE: STT) is the world's
leading provider of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $13.0 trillion in assets
under custody and $1.9 trillion in assets under management at June
30, 2007, 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 2006 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, July 24, 2007, and the company will not
undertake efforts to revise those forward-looking statements to
reflect events after this date.
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