BOSTON--(BUSINESS WIRE)--Nov. 22, 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 November 2005.
According to the November index, investor confidence increased to
86.9 from October's reading of 78.6. Looking regionally, the
confidence of North American institutional investors rose from a
revised reading of 94.0 in October to 103.4 in November. European and
Asian investors displayed slightly lower confidence, with the European
Index falling from 70.6 to 69.9, and the Asian Index declining from
85.4 to 83.3.
Developed through State Street Global Markets' research
partnership, State Street Associates (SSA), by Harvard University
professor Ken Froot and SSA Director Paul O'Connell, the State Street
Investor Confidence Index(R) measures investor confidence on a
quantitative basis, analyzing actual buying and selling patterns of
institutional investors. The index is based on 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 equities. The more of their portfolio that institutional
investors are willing to devote to equities, the greater their risk
appetite or confidence.
"We have seen that institutional investors have concurred with
market prices and with consumers about higher confidence. For our
institutional investors, this translates to acquisitions of risky
assets across their diversified portfolios," said Froot. "Some of the
macroeconomic touch points in the U.S., such as inflation, appear to
be under better control than previously thought, as the Fed shifts to
inflation targeting, as energy prices decline, and as the end to Fed
rate increases draws near. By contrast, the European central bank may
have choked off this salutary effect by making noise about beginning
to raise rates only once the inflationary threat seems poised to
recede."
"It's clear that today's increase in investor confidence is driven
entirely by improved sentiment in the U.S.," added O'Connell. European
levels of confidence are very low and remain broadly unchanged this
month, and Asian confidence, which has been more robust in the past,
has fallen again. It is helpful that the recent conservatism of U.S.
investors in taking risk is being reversed. We are still waiting for a
meaningful upward change in confidence levels to take hold in the rest
of the world."
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.
State Street Global Markets' research team of leading academic and
industry experts are committed to continually advancing the science,
including theory and application of its proprietary investor behavior
research and innovative portfolio & risk management technologies to
helps its clients challenge conventional thinking, shape ideas, make
more informed investment decisions and deliver measurable results.
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, 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
specialist in providing institutional investors with investment
servicing, investment management and investment research and trading.
With $9.8 trillion in assets under custody and $1.4 trillion in assets
under management (as of September 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, November 22, 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=5026142
CONTACT: State Street Corporation
MEDIA CONTACT:
Carolyn Cichon, 617-664-8672
SOURCE: State Street Corporation