BOSTON--(BUSINESS WIRE)--Feb. 15, 2005--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 February 2005.
According to the February index, investor confidence decreased by
1.8 points from January's revised reading of 89.8.
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 measures portfolio-wide purchases of
risky securities to gauge the risk appetite of institutional
investors.
"This month's downward step shows that institutional investors
have become less willing to hold risk in their portfolios," commented
O'Connell. "And when looking across investors regionally, it appears
that it was U.S. investors who led the way. Their tolerance for risk
fell rapidly during late January and early February, bringing down the
overall worldwide index value. Both European and Asian investors
actually were willing to bear more, not less, risk."
"These numbers suggest that the recent rally in equity markets may
be limited," added Froot. "During that time, interest rate increases
and downward growth revisions have set a more conservative tone for
U.S. investors. Meanwhile, Asia enjoys rapid credit growth which is
likely to continue until Japan moves to increase interest rates. For
now, investor sentiment around the world dovetails closely with local
growth prospects."
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. 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 $9.5 trillion in assets under custody and $1.4 trillion in assets
under management, as of December 31, 2004, State Street operates in 25
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, February 15, 2005, 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=4822952
CONTACT: State Street CorporationHannah Grove, 617-664-3377
Carolyn Cichon, 617-664-8672
SOURCE: State Street Corporation