BOSTON--(BUSINESS WIRE)--
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), today released the results
of the State Street Investor Confidence Index(R) for October 2008.
Global Investor Confidence decreased by 17.5 points to 58.2 from a
revised September level of 75.7. Confidence among North American
investors fell particularly sharply from a revised level of 75.1 to
50.8. Elsewhere, the declines were less dramatic, with European
confidence falling just 1.5 points to 79.6, and Asian confidence
declining 0.6 points from 87.1 to 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 measures investor confidence on
a quantitative basis by analyzing the actual buying and selling
patterns of institutional investors. The index is based on financial
theory that assigns precise meaning to changes in investor risk
appetite, or the willingness of investors to allocate their portfolios
to equities. The more of their portfolio that institutional investors
are willing to devote to equities, the greater their risk appetite or
confidence.
"This month we saw a dramatic and unprecedented decline in
investor confidence to a new record low, led by investors in North
America," commented Froot. "We saw broad and important reductions of
risk across investor portfolios previously at times like the Asian
Crisis in 1997 and the Russian-LTCM crisis in 1998. However, even the
strong broad-based selling of risk we saw during those events appears
small compared with the current outflows. The combination of financial
crisis along with truly global macroeconomic risk of deep recession
has been causing a complete re-evaluation of risk across a wide
investment community centered on US institutional investors."
"When you remember that this measure of investor confidence is not
a survey, but rather is based on the actual trades of institutional
investors, the readings are particularly striking," added O'Connell.
"The period over which this reallocation was measured in investor
portfolios, September 17 to October 15, saw the largest single
reallocation away from risky assets that we have witnessed in the data
since it first became available in 1994."
October Results
Global 58.2
N. America 50.8
Europe 79.6
Asia-Pacific 86.5
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
provider of financial services to institutional investors, including
investment servicing, investment management and investment research
and trading. With $14 trillion in assets under custody and $1.7
trillion in assets under management at September 30, 2008, 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 2007 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, October 21, 2008, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
Source: State Street Corporation
Contact: State Street Corporation
Marie McGehee, 617 664 1898