POWERED BY MOMENTUM MEDIA
Investor confidence sees sixth consecutive rise in 14 years
The State Street Global Investor Confidence Index (ICI) has risen for the sixth consecutive month.
The global reading increased by 6.1 points to 95.8 from May’s revised reading of 89.7.
This was led by a 4.9 point rise in the North American ICI thanks to a resolution of the US debt ceiling debate and a 5 point rise in the European ICI. However, the Asian ICI fell by 4.3 points to 96.7 as China encountered its reopening post the COVID-19 lockdown.
Marvin Loh, senior global market strategist at State Street Global Markets, said: “Investor confidence was once again stronger in June, with the Global ICI improving for the sixth consecutive month, a streak that has only been replicated once (in 2009) in the 25 years since the creation of the index.”
He noted that despite the rally, the ICI remains a neutral reading of 100 that signals a continued defensiveness.
“While confidence has rallied smartly since the start of the year, it remains below neutral, signaling a continued defensiveness towards overall risk allocations,” Loh said.
“The North America ICI reading continued to improve as the resolution of the debt ceiling debate removed a significant market risk from the radar. The Europe ICI was also stronger on the month, returning to risk seeking territory as it records the highest reading among the regions we track. Finally, Asia investor confidence deteriorated back below neutral as China continues to experience a bumpy post COVID-19 recovery.”
The Investor Confidence Index was developed at State Street Associates, State Street Global Markets research and advisory services business.
It measures 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
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
As market volatility persists, some super funds are pivoting defensively, while others are strategically positioning to capitalise on emerging opportunities.
New data has shown a progressive deterioration in risk appetite among instos even prior to Donald Trump’s latest round of tariffs.
UniSuper has reached “peak investment” in US assets and is now preparing to reassess its exposures amid ongoing sharemarket volatility.
Investors have slashed their US equity allocations to the lowest level on record, according to new data from Bank of America.
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(%)
