Investor Confidence Index Declines from 84.0 to 77.2 in August
August 19 2008 - 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 August
2008. Global Investor Confidence decreased by 6.8 points to 77.2
from a revised July level of 84.0. This month it was North American
investors who drove the move, with confidence in that region
declining from 85.8 to 77.7. European investors also felt less
optimistic, as evidenced by a three-point decline in their
confidence from 80.3 to 77.3. Asian investors saw a modest
improvement in their risk appetite for the second month, and their
benchmark rose from a revised level of 85.3 to 88.9. 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. �Renewed concerns around
credit and the likelihood that growth can be sustained in both
Europe and Asia create the fundamental backdrop for this month�s
decline in confidence,� commented Froot. �There appears to have
been a cycle of risk appetite declines rippling across the major
regions over the last two months,� added O�Connell. �North American
investors took a more pessimistic view in June and European
investors followed suit. The buoyancy of Asian confidence over the
last two months was not sufficient to outweigh this increased
pessimism.� August Results Global 77.2 N. America 77.7 Europe 77.3
Asia-Pacific 88.9 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 $15.3 trillion in assets
under custody and $1.9 trillion in assets under management at June
30, 2008, State Street operates in 26 countries and more than 100
geographic markets worldwide and employs 28,700 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 2007
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, August 19, 2008, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
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