The latest version of the State Street Investor Confidence Index for April finds that investor confidence increased slightly to 82.3 from March’s revised reading of 81.9. But the gain came primarily from European investors.

For the fourth month in succession, the confidence of European investors improved, with the index increasing to 97.9 from March’s revised level of 94.4. The confidence of North American institutional investors fell slightly to 91.1 from a revised level of 91.5 in March, and the confidence of Asian investors also fell by 0.4 to 77.5 from March’s revised reading of 77.9.

“This month, investors continued the pattern established last month, increasing their allocations to risky assets in three of the last four weeks,” commented Harvard University professor Ken Froot, co-developer of the index with SSA director Paul O’Connell.

“While certainly below the benchmark highs achieved in 2003, confidence has nevertheless recovered from the very low levels seen in early 2006, and re-established itself in a more normal range,” Froot said. “On a global level, economic growth appears reasonably solid, and while some moderation will occur in the U.S. as monetary tightening runs its course and the housing market cools, demand remains robust in other regions.”

“Looking regionally, we see that European investors continue to reallocate toward risky investments, leaving confidence well above the low-water mark established in December of last year,” added O’Connell. “The allocations we observe are reasonably diversified, too, which is encouraging. Elsewhere, investors in North American and Asia remain somewhat cautious.”