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 slightly increased, remaining at the highest level in sixteen and a half years.Cash holdings declined 3bps, entirely driven by a 5bps inflow into equities. This was offset by an outflow of fixed income of 1.3bps into cash.
RiskAppetite
The State Street Risk Appetite Index rose to 0.36 in January, resuming the risk seeking activity seen previously before the pause in December.