POWERED BY MOMENTUM MEDIA
Investor slump continues
Investor confidence has slipped for the second consecutive month and remains at depressed levels despite a slight uptick in March, according to State Street Corporation.
The index fell a further 0.7 points in May from 87.1 to 86.4, compounding a fall of 3.9 points in April. While the plummet in April occurred mainly via a lack of confidence among Asian investors, State Street said May produced a notable increase in confidence among Asian investors who made up 2.3 points.
"But given that that region is coming off a record low, it is not in itself a strong signal of optimism," said State Street director, Paul O'Connell.
O'Connell also said stresses from the euro-region continue to make investors cautious and increase the attractiveness of cash and fixed income over equity investments.
The global ICI fell slightly from 87.1 to 86.4, with European investors the most pessimistic - falling 2.2 points from 100.2 to 98.0 in May.
"To some extent, recent market movements have vindicated the pessimistic stance adopted by global institutional investors this year," Harvard University Professor and index co-developer, Kenneth Froot said.
He said all regions were below the neutral index for confidence.
"When we look at the pattern of recent investor equity flows - which favours the United States, Japan, Scandinavia and core Europe over peripheral Europe - it is clearly a defensive one with respect to further deterioration in euro-region prospects," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
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.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
