POWERED BY MOMENTUM MEDIA
Investor confidence boosted by European sentiment
The State Street Global Investor Confidence Index has increased by 5.1 points in August to 107.3, up from 102.2 in the previous month.
This was led by a 20-point jump in Europe and a smaller 2.1-point jump in North America. The Asian index fell by 0.9 points.
Rajeev Bhargava, head of investor behaviour research at State Street, said: “Despite the many potential headwinds, including rising inflation concerns and energy security facing the European economy, interestingly, European investors have moved from a risk averse posture to a more neutral posture over the past month as markets rallied through much of August.
“Even after the selloff over the past week, net flows by European investors have been from developed to emerging market stocks, which has driven up the confidence score. However, it is going to be important to monitor whether the enthusiasm persists given recent heightened volatility in equity markets on the back of increasingly hawkish Fed speak.”
The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners.
It measured investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.
A reading of 100 would be neutral; it would be the level at which investors were neither increasing nor decreasing their long-term allocations to risky assets.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
While Australia’s largest super funds are increasingly bringing investment management in-house, Brighter Super is charting a different course as it continues to grow.
As local regulators warn of emerging risks tied to investors’ growing participation in private markets, a Queensland-based fund has described the segment as “crucial” for portfolio resilience.
MLC is leaning on its asset allocation and diversification expertise to navigate rising global uncertainty and seize opportunities amid the chaos.
Super funds are recalibrating their strategies in response to evolving geopolitical dynamics and economic policy risks, with major players placing renewed emphasis on research, resilience, and diversification.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
5
Plato Global Alpha A
28.83 3 y p.a(%)
