POWERED BY MOMENTUM MEDIA
Investor confidence up in December
Investors’ confidence rose at the end of 2020, with the State Street Investor Confidence index (ICI) going up in December by 13.3 points to 104.1 compared to 90.8 in November, thanks to the release of COVID-19 vaccines, prospects of a fresh stimulus package out of the US and post-election certainty.
The North American ICI rose 15.9 points to 103.5 and the Asian ICI increased 17.4 points to 112.6 while the European ICI fell for the fourth straight month, down 4.6 points to 87.2.
“As an overwhelming 2020 finally drew to a close, investors ended the year on more optimistic footing with the Global ICI recording its highest reading in over two years,” commented Rajeev Bhargava, head of Investor Behaviour Research for State Street Associates.
“However, as COVID cases continue to surge globally, we will need to see if the momentum persists into the new year as more data becomes available on the vaccines’ overall effectiveness, but certainly December’s reading of global sentiment is a good supporting datapoint that we may be heading in the right direction.”
The ICI, developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners, measured investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.
A reading of 100 was neutral and indicated the level at which investors were neither increasing nor decreasing their long-term allocations to risky assets.
Recommended for you
Services and software companies are set to reap the benefits of the AI boom in 2025, according to a market professional.
Despite ongoing tariff concerns, the State Street Risk Appetite Index rose to 0.36 in January, signalling a return to risk-seeking behaviour after a pause in December.
The yellow metal is riding a perfect storm of macroeconomic and political conditions, setting the commodity up for further growth this year.
While investors remain bullish on the US dollar and equities, they are bearish on just about everything else, Bank of America has found.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
