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Johannesburg - The Maxim-ETM Investor Confidence Index rose in the first quarter to 107.3 from a moderately upwardly revised 105.7 (105.4) in the fourth quarter of 2010. According to economist from ETM, George Glynos, the index level indicates neither particularly bullish nor particularly bearish investor sentiment.
After suffering a down-weighting by local funds in the fourth quarter of 2010, bond allocations rose to their highest levels since the fourth quarter of 2003.
?Asset managers may as a whole not be too worried about inflation risks despite rising CPI,? said Glynos.
The index revealed that equity allocation fell slightly in Q1, which Glynos says ?gives little credence to any views that equity sentiment among local fund managers is improving?.
Late 2010 and early 2011 saw many large funds increase offshore asset allocation, and this would likely have dampened local equity sentiment.
Overall the Volatility Index remained reasonably flat during Q1 2011 and therefore did not exert undue pressure on SA investor confidence levels, according to the analysts.
After suffering a down-weighting by local funds in the fourth quarter of 2010, bond allocations rose to their highest levels since the fourth quarter of 2003.
?Asset managers may as a whole not be too worried about inflation risks despite rising CPI,? said Glynos.
The index revealed that equity allocation fell slightly in Q1, which Glynos says ?gives little credence to any views that equity sentiment among local fund managers is improving?.
Late 2010 and early 2011 saw many large funds increase offshore asset allocation, and this would likely have dampened local equity sentiment.
Overall the Volatility Index remained reasonably flat during Q1 2011 and therefore did not exert undue pressure on SA investor confidence levels, according to the analysts.
