BOSTON--(BUSINESS WIRE)--Aug. 23, 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(R) for August 2005.
According to the August index, investor confidence increased by 2
points from July's revised reading of 82.8.
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 investor confidence on a
quantitative basis, analyzing actual buying and selling patterns of
institutional investors. The index is based on the financial theory
that assigns precise meaning to changes in investor risk sentiment, or
the willingness of investors to hold proportionally more or less of
their portfolio in higher-risk investments.
"Institutional investors have been willing to add to the risk of
their portfolios over the last month, as U.S. longer term interest
rates continue to show resilience to short term rate increases by the
Federal Reserve," commented O'Connell. "Nevertheless, this increase is
muted; confidence remains at relatively low levels, and investors
clearly have reservations about becoming too extended."
"While U.S. investors were adding to their portfolio wide risks,
this month's big increase in risk appetite comes from European
investors," added Froot. "Europeans seemed to have been unusually
pessimistic in the last few months, and now have begun adding to risky
positions broadly across their portfolios. However, this doesn't
change the fact that Europeans exhibit a level of confidence that
remains substantially below that of Asian and North American
institutional investors."
Since its launch in September of 2003, the State Street Investor
Confidence Index(R) 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(R) 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 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.
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(R):
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 $9.6 trillion in assets under custody and $1.4 trillion in assets
under management (as of June 30, 2005), State Street operates in 25
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 2004 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 23, 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=4957896
CONTACT: State Street CorporationCarolyn Cichon, 617-664-8672
SOURCE: State Street Corporation