• The Maxim-ETM Investor Confidence Index (ICI) fell in Q2 2010 to 92.0 from a revised 106.7 in Q1 2010 (prev 105.9).  The index remained around 16 index points, or 21.3%, higher than a year earlier when it recorded a reading of 75.9 in Q2 2009.
• The latest ICI reading was driven lower almost exclusively by offshore risk factors pertaining to the European sovereign debt crisis and the rise in global investor risk aversion.
• The local asset rotation into equities that began in Q2 2009 reversed in Q2 2010, highlighting subdued confidence levels among local investors.  The rotation away from equities saw funds moved into bonds and back into cash in roughly equal proportion.
• Fixed income asset allocation remained strongly on the up in line with previous quarters as funds continued to take advantage of improving real yields, better government finances, and healthy offshore demand.   

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