The State Street Institutional Investor Indicators provide investors, policymakers, and the public with insights into the aggregated and anonymized positioning, risk appetite, and portfolio carbon exposures of thousands of institutional investors around the world, representing trillions of dollars in assets.
The Risk Appetite Indicator quantifies the degree to which the trading patterns of institutional investors are risk seeking or averse, on a scale of -100% (most risk averse) to 100% (most risk seeking).
- The Institutional Investor Risk Appetite Indicator measures the buying and selling of risky assets across 22 dimensions of risk
- These range across asset classes: equities, fixed-income, cash, and foreign exchange
- Key dimensions include stock versus cash allocations, cyclical versus defensive equities, high-yield versus investment-grade corporate bonds, and US Dollar currency flows
- Released monthly
Holdings
The State Street Holdings Indicators showed that long-term investor allocations to equities fell sharply from close to their highest level in sixteen and a half years. Cash holdings were the main beneficiary of the move out of equities, rising by close to 0.5%, while fixed income holdings were flat over the month.
RiskAppetite
The State Street Risk Appetite Index fell back to 0 in February, as investors’ run of four consecutive months of risk seeking activity came to an abrupt end.