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 show that long-term investor allocations to equities rose anew in May to levels last seen on the cusp of the Liberation Day announcement in early April. During May, exposure to equities rose by 0.9% relative to a 0.8% fall in bond holdings.
RiskAppetite
The State Street Risk Appetite Index rose to 0.36 at end-May, as investors moved back towards risk taking in the latter part of the month following deferral on the implementation of trade tariffs