POWERED BY MOMENTUM MEDIA
North American investor sentiment remains cautious
North American institutional investors are continuing to exhibit caution around geopolitical events, according to the latest State Street Investors Confidence Index.
The index, for September 2017, tells a story of divergent attitudes amongst institutional investors with the caution being exhibited in North America offset by the comparative optimism of those in Asia and Europe.
The Global Investor Confidence Index decreased to 104.4, down 2.4 points from August’s revised reading of 106.8, with the decline in sentiment driven by a 6.3 point drop in the North American ICI to 105.6.
State Street noted that, by contrast, the European ICI rose by 4.7 points to 93.7 along with the 3.7 increase in the Asian ICI to 102.8.
Commenting on the findings, State Street’s Kenneth Froot noted the divergent views between North America, Europe, and Asia.
“Confidence has strengthened in Europe and Asia on the back of optimistic economic conditions. However, it has weakened in North America with renewed geopolitical concerns and the Federal Open Market Committee’s pivotal decision to gradually trim its $4.5 trillion portfolio," he said.
State Street Associates managing director and head of investor behaviour research, Rajeev Bhargava said the risk appetite narrative of recent months had been revolving around monetary policy rhetoric from major central banks.
“While global equity markets appeared to be unnerved by the Fed’s announcements of balance sheet reductions, overall investor sentiment has declined,” he said.
Recommended for you
BlackRock has reduced its exposure to Australian and European equities in favour of emerging markets.
Equity markets have surged ahead of fundamentals as institutional investors fall behind, according to Ten Cap Alpha Plus.
Local investors are leading the region in plans to boost private market exposure, as demand grows for innovative fund structures, resilient investments, and a more selective approach to alternatives.
Research shows institutional investors are increasingly turning to private credit, but the APAC region’s relatively small market size remains a key constraint.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
