The State Street Investor Confidence Index fell 2.5 points from February’s revised level of 122.7, with the European index falling 1.5 points to 108.6.
Risk sentiment remained steady in North America while Asian investor confidence actually increased, with the index rising 7.4 points from its February reading of 106.9 up to 114.3.
The index gauges investor confidence by analysing the buying and selling patterns of institutional investors.
A larger allocation to equities indicates increased confidence or risk appetite.
Harvard Business School Professor Kenneth Froot said despite a 1.5 point decline in Europe, geopolitical risk in the Ukraine, Turkey and other emerging markets has “yet to have a significant impact on institutional investor behaviour”.
“Institutions have largely maintained their allocations to equities on a global basis,” said Mr Froot.
“With no major negative news appearing on the economic front, sentiment remained unaffected during the period.”
State Street Global Exchange head of research and advisory services Jessica Donohue said although Asian institutional investors are facing growing policy pressures the data suggests institutions are continuing to add risk.
“The People’s Bank of China’s recent move to double the Yuan trading band to allow for greater currency fluctuation, however, reflects policymakers’ commitment to financial liberalisation reform,” said Ms Donohue.
