BOSTON--(BUSINESS WIRE)--July 18, 2006--
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 July
2006.
According to the July index, investor confidence decreased by 6.2
points to 84.3 from June's revised reading of 90.5. Looking
regionally, the confidence of North American institutional investors
fell from 106.7 to 99.1. The confidence of Asian investors increased
slightly to 81.5 from 80.2, and the confidence of European investors
decreased to 85.4 from 86.5.
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(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.
"Over the last several months, investor confidence has rebounded
off new lows set early in the year," commented Froot. "But this is a
long way from saying that confidence is strong. Professional investors
seemed to have taken the opportunity in the last month, as markets
became relatively less turbulent, to take risk away from their
portfolios. The selling has not been dramatic, but is a reminder that
an improvement in sentiment alone is unlikely to reverse the decline
in equity prices we have seen this year."
"This month, it is clear that most of the action is coming from a
decline in the confidence of North American institutional investors,
expressed in buying and selling decisions," commented O'Connell. "The
confidence of Asian and European investors remains virtually
unchanged. U.S. investors have had to contend with widely varying
views of how the Fed and the U.S. economy will proceed, and this is
expressed in the recent volatility of their confidence levels."
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 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(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
services. With $10.9 trillion in assets under custody and $1.5
trillion in assets under management at June 30, 2006, State Street
operates in 26 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 2005 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, July 18, 2006, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
Source: State Street Corporation