Investor slump continues
Investor confidence has slipped for the second consecutive month and remains at depressed levels despite a slight uptick in March, according to State Street Corporation.
The index fell a further 0.7 points in May from 87.1 to 86.4, compounding a fall of 3.9 points in April. While the plummet in April occurred mainly via a lack of confidence among Asian investors, State Street said May produced a notable increase in confidence among Asian investors who made up 2.3 points.
"But given that that region is coming off a record low, it is not in itself a strong signal of optimism," said State Street director, Paul O'Connell.
O'Connell also said stresses from the euro-region continue to make investors cautious and increase the attractiveness of cash and fixed income over equity investments.
The global ICI fell slightly from 87.1 to 86.4, with European investors the most pessimistic - falling 2.2 points from 100.2 to 98.0 in May.
"To some extent, recent market movements have vindicated the pessimistic stance adopted by global institutional investors this year," Harvard University Professor and index co-developer, Kenneth Froot said.
He said all regions were below the neutral index for confidence.
"When we look at the pattern of recent investor equity flows - which favours the United States, Japan, Scandinavia and core Europe over peripheral Europe - it is clearly a defensive one with respect to further deterioration in euro-region prospects," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
