Confidence among institutional investors rose sharply in July, according to the State Street Index.

Confidence among institutional investors rose sharply in July, according to the State Street Index.

The State Street Index, which measures institutional investor confidence by looking at l levels of risk in their portfolios, climbed 3.6 points to 119.4 for a five-year high.

State Street said: "Investors are now adding risk to their portfolios at an impressive rate, faster than we have seen in several years. In fact, this is the highest level the ICI Global index has reached since mid 2004. That is an impressive turnaround over last October, when the ICI Global reached its lowest-ever-recorded level of 82.1. Note the marked contrast with Consumer Confidence, which remains more focused on lagging unemployment.

'The more of their portfolios that professional investors are willing to devote to riskier as opposed to safer investments, the greater their risk appetite or confidence."