The Global Investor Confidence Index (ICI) has dropped by 1.5 points to 92.7 in April, compared to March’s revised reading of 94.2, and was driven by decreases in the North American and the Asian ICIs, which fell to 92.2 from 94.8 and to 91.8 from 92.9, respectively.
At the same time, the European ICI saw a three point uptick to 94.3.
According to Rajeev Bhargava, head of investor behaviour research, State Street Associates, investor risk appetite remained largely in a holding pattern in April with the Global index declining just over one point, which represented the smallest change we have seen in more than six months.
“While investor confidence in the US and Asia contracted slightly, this was largely offset by a rise in sentiment from European Investors, where improving vaccine procurement numbers and more timely member state vaccination rollout targets may have fuelled some much-needed optimism in the region,” he said.
The ICI, developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners, measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.
A reading of 100 is neutral, meaning the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.