The State Street Investor Confidence Index, while remaining below neutral territory of 100, rose 6.5 points in March to 98.3. In March 2010, however, it stood at 107.4.

In North America, confidence rose 10.5 points to 103.0. In Asia, confidence increased by 8.7 points to 100.2, but in Europe, the risk appetite declines 15.0 points to 64.3.

“After the declines in February, March saw something of a rebound in confidence and institutional investors were comfortable adding to equity holdings after the pullback in prices that took place between March 3 and March 16,” said Harvard University Professor Kenneth Froot, who developed the Confidence Index with State Street Associates.

“The one dissenting opinion came from European investors, who adopted a much more cautious stance. The ongoing uncertainty around the size and form of the ‘Pact for Euro,’ which is part of the comprehensive package to address the sovereign debt crisis as well as electoral uncertainty in Germany, may well have held European investors back relative to their global institutional peers.”