BOSTON--(BUSINESS WIRE)--Dec. 21, 2004--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(SM) for December 2004.
According to the December index, investor confidence increased by
3.5 points from November's revised reading of 85.5.
Developed by Harvard University professor Ken Froot and Paul
O'Connell of State Street Associates, the research unit of State
Street Global Markets, the index shows that investor confidence has
risen from its 2004 lows.
"Professional investors have acted to step up the risk in their
portfolios as oil prices reversed course, dollar depreciation abated,
and foreign central banks displayed renewed interest in purchasing
U.S. Treasuries," commented Froot. "With long-term interest rates at
such low levels and a renewed assurance that the U.S. Federal Reserve
is managing to increase short-term rates without disruption, greater
risk and leverage have become more attractive."
"This year, the story for investor confidence has been one of
caution," added O'Connell. "Relative to previous years and relative to
other equity markets in 2004, such as Japan, interest in U.S. stocks
has been relatively muted. Add to this recent global reallocations
toward defensive sectors, such as utilities, and away from cyclical
sectors, and the picture that emerges is one of improving confidence,
but only after some hesitation."
Since its launch in September of 2003, the State Street Investor
Confidence Index(SM) 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(SM) 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 services. 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.
About State Street Associates:
Founded in 1999 in Cambridge, Mass., State Street Associates
develops portfolio and flow research, currency management, asset
allocation services and designs strategy tools to support the needs of
global portfolio managers.
About the State Street Investor Confidence Index(SM):
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, and the 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.
With $9.0 trillion in assets under custody and $1.2 trillion in assets
under management (as of September 30, 2004), State Street operates in
24 countries and more than 100 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 2003 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, December 21, 2004, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4788746
CONTACT: State Street CorporationHannah Grove, 617-664-3377
or
State Street CorporationCarolyn Cichon, 617-664-8672
SOURCE: State Street Corporation