LONDON, Aug 25 (Reuters) - Global investor confidence rose for an eighth month in a row in August, hitting a five-year high thanks to a more bullish mood in Europe, U.S. financial services firm State Street said on Tuesday.
The global State Street Investor Confidence Index hit 122.9 this month, up from 119.4 in July.
The index has been above 100 -- the level considered to be neutral -- for five consecutive months, coinciding with a stock market rally that began in March.
It has also increased every month since December and is now at a level not seen since May 2004.
"This month's increase ... places the risk appetite of institutional investors firmly in the range that is associated with accumulation of risk exposures," said Harvard Professor Ken Froot, a co-developer of the index.
"At the same time, the rate of increase in the index has moderated relative to some months ago, suggesting that institutions are being somewhat selective in their allocations."
Regionally, the confidence of North American institutional investors declined slightly by to 118.4 from 120.6. Asian investor confidence also slipped, to 91.8 from 94.1.
By contrast, European institutional investors displayed increased risk appetite with their index rising to 109.2 from 104.9 last month.
The data is extrapolated from movements in around $16.4 trillion of assets State Street holds as custodian and administrator for institutional investors. (Editing by Stephen Nisbet)