POWERED BY MOMENTUM MEDIA
Investors’ risk appetite grows in March
Investors across all regions experienced increased appetite for risk in March, with the State Street Investor Confidence Index (ICI) increasing to 111.9 last month, up 4.8 points from February.
The Index, which measures investor confidence quantitively the buying and selling patterns of institutional investors, showed that investors globally were more willing to expose themselves to risk than they were earlier in the year.
The North American ICI rose 5.8 points from February to March, hitting 109.8. The European ICI grew 1.6 points to 102.1 and the Asian ICI jumped 1.3 points to 109.6.
A reading of 100 is neutral, meaning that investors are neither increasing nor decreasing their long-term allocations to risky assets.
“After a volatile February, institutions seemed to have re-embraced risk in March, with the ICI rising across all the regions we track,” Kenneth Froot, co-creator of the index, said.
The State Street Global Exchange warned that the growth in appetite for risk may not be sustained though.
“Increasing rhetoric over protectionist policies and fears over a potential trade war are still festering and have the potential to impact confidence,” Froot warned.
“Although the global ICI increased this month, it will be interesting to see if continued Federal Reserve tightening and recent money market stress … will impact investor sentiment going forward,” State Street Associate’s managing director and head of investor behaviour research, Rajeev Bhargava said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
