The S&P Global Investment Manager Index Risk Appetite Index fell to -20% in August 2025 from +12% in July, marking the lowest reading since April and signaling a return to risk aversion amid heightened macro and political concerns.

• Valuations remained the largest drag on equities, while concerns over the US and global macro environment intensified due to higher tariffs and trade uncertainty.
• Near-term US equity return expectations fell to the lowest since April, though earnings expectations have improved since last quarter.
• Financials remained the most favored sector, followed by communication services and IT, though bullish sentiment toward both financials and IT moderated; utilities and consumer staples gained defensively.
• Consumer discretionary remained the least favored sector, with bearish sentiment deepening from July.
• ESG issues saw reduced importance overall, with diversity, climate, and labor standards losing influence on investment decisions.