Investor confidence Index - 10:50AM

Investor Confidence Index Rises from 115.8 to 119.4 in July Boston, July 28, 2009 – State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), today released the results of the State Street Investor Confidence Index® for July 2009. Global Investor Confidence rose by 3.6 points to 119.4 from a revised June level of 115.8. Across the regions, the confidence of North American institutional investors increased significantly from 113.8 to 120.5 while European investor confidence rose even more swiftly from 95.9 to 104.6. The confidence of Asian investors rose as well, but only by 1.9 points to 94.2. Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Director Paul O’Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk appetite, or the willingness of investors to allocate their portfolios to equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence. “The index results strongly reflect increasing investor strategies designed with a view that the global recession will wane more rapidly than many had feared,” commented Froot. “Investors are now adding risk to their portfolios at an impressive rate, faster than we have seen in several years. In fact, this is the highest level the ICI Global index has reached since mid 2004. That is an impressive turnaround over last October, when the ICI Global reached its lowest-ever-recorded level of 82.1. Note the marked contrast with Consumer Confidence, which remains more focused on lagging unemployment.” “European confidence is much stronger this month, partly because of the concerns around the US seeming to abate, but also because the contagion that might have brought down their own financial institutions seems to be dissipating fast,” added O’Connell. “Asia has seen less variation in expected growth rates than the West and confidence there continues to strengthen, although there was never such an Asian wholesale fear of risk. Full report here