Institutional investors are more confident this month, according to the State Street Investor Confidence Index.
Its index has risen by 13 points to a level of 99.3. Leading the way were North American institutional investors, whose risk appetite rose by a full 21 points to 116.5.
In Europe, investors consolidated the pullback they began last month, and confidence fell four points to 86.4. Asian investors remained in a holding pattern, and their confidence level only exhibited a small increase to 84.1 from 83.5.
“It is interesting to note that North American investors were net sellers of equities in early July,” says State Street Associates director Paul O’Connell. “Their allocation decisions in August have allowed them to reacquire assets at much more attractive prices than those which prevailed in July.”
“Indeed, State Street’s measures of equity flows show that institutional investors have been steady buyers of equities since July 23, when the market turbulence began.”
The index measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The more institutional investors are willing to devote to equities in their portfolio, the greater their confidence.
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