POWERED BY MOMENTUM MEDIA
European sentiment lifts investor confidence index
The State Street Global Investor Confidence Index (ICI) increased by 3.8 points to 81.4 in March, up from 77.6 in February.
The growth was largely driven by an 11-point rise in European ICI to 117.5, followed by a 0.9 increase in North American ICI to 73.9. Asian confidence decreased by 6.3 points to 91.9.
“In the face of heightened stress in the US banking sector, institutional investors continued to take a defensive stance with the Global ICI posting at 81.4 in March, well under the risk neutral level of 100,” said Rajeev Bhargava, head of investor behaviour research at State Street Associates.
“While the aggregate sentiment remained weak, it is important to report that investor confidence did not deteriorate further in March but actually firmed a touch, with our global measure gaining around 4 points.
“The North American ICI remained steady through March albeit at weak levels, possibly
supported by talks that the Federal Deposit Insurance Corporation (FDIC) will extend insurance to all deposits.”
Bhargava noted while Europe investor optimism climbed sharply, Asia was the only region that experienced a decline in sentiment.
Overall, the behaviour of institutions this month exhibited some resilience to market volatility.
The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners.
It measured investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.
A reading of 100 would be neutral; it would be the level at which investors were neither increasing nor decreasing their long-term allocations to risky assets.
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
Recommended for you
Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum.
Institutional investors have entered November with their largest pre-election equity allocation in two decades, according to new data.
The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update.
Australia is becoming increasingly recognised as an attractive investment opportunity against global counterparts, recent analysis has found.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
