Global institutional investor sentiment falls

1 March 2012
| By Milana Pokrajac |
image
image
expand image

Institutional investors continued the pattern established late last year of reducing allocations to equities, with the sentiment falling by six percentage points in February.

This is according to State Street's Investor Confidence Index, which measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.

The decline was most pronounced among North American investors, whose confidence fell 9.5 points to 80.5, according to Harvard University professor Kenneth Froot, who developed the index with Paul O'Connell of State Street Associates.

"Across the regions there was a significant divergence this month," said O'Connell.

"The latest round of policy developments in Europe went some way towards lowering the risk of a catastrophic 'tail event' crisis, and this improved the mood of European investors."

Asian investors held their outlook constant, though O'Connell did note that net purchases of Pacific (ex-Japan) equities by all global investors were relatively robust.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

3 hours ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

21 hours 26 minutes ago

In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities....

22 hours 31 minutes ago