Confidence among institutional investors may be breaking down according to State Street's index which fell to a very weak 86.5 in February and reflects easing demand for equities. The North American sample shows the greatest weakness, at 80.5 for its lowest reading in more than three years. Europe is at 95.2 with Asia at 96.3. A reading below 100 indicates demand for safety.
The State Street Investor Confidence Index measures confidence by looking at actual levels of risk in investment portfolios. This is not an attitude survey. The State Street Investor Confidence Index measures confidence directly by assessing the changes in investor holdings of equities. The more of their portfolio that institutional investors are willing to invest in equities, the greater their confidence. The report's main index is global and is based on activity in 45 countries. The report tracks more than 22 million transactions annually. There are three published components: North America, Europe and Asia-Pacific. The separate weightings of the three components vary month to month based on investment activity and are not published. Also included in the global index, but also not published, is activity in South America and the Middle East.
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