Investors in every region have an increased enthusiasm for risk, according to the March 2016 State Street Investor Confidence Index.
The global investor confidence index (ICI) rose by 8.0 points to 114.6, the North American ICI increased from 109.4 to 123.6, the European ICI from 90.2 to 95.3, and the Asian ICI from 111.5 to 112.2.
The index, which was developed by Kenneth Froot and Paul O’Connell of State Street Associates, measures investor confidence and risk appetite quantitatively by analysing the equity buying and selling patterns of institutional investors. A score of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their allocations.
Executive vice president and chief innovation officer at State Street Global Exchange Jessica Donohue attributed the rebound to the oil price rally and subsiding market volatility. The reversal follows one of the worst starts to the year since the index was launched.
State Street manages assets of $2.45 trillion (€2.16 trillion).
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