Media Release - Issued 7th October, 2002

Australian Investors Association and Adviser Ratings

INVESTMENT SENTIMENT INDICES - OCTOBER 2002

Investors much more worried by Share market direction than their Advisers

The indices continue to show a considerable difference between Investor sentiment and Financial Adviser sentiment, despite the fact that advisers are at last beginning to show some nervousness about the direction of the share market over the next six months.

Since the September survey bullish advisers have reduced by a third however most have only retreated as far as a neutral position. Investors have moved in droves to a bearish position with investor bears doubling since last month.

Investors are 3 times as bearish as Advisers and still only 11% of Advisers are taking a bearish view.

Interestingly despite significant moves in sentiment for both investors and advisers we are yet to see any major movements in asset allocation for either group, which suggests that neither investors or advisers see current investment sentiment as being a significant influence on structuring investment portfolios.

The surveys were conducted between 28th September and 2nd October 2002.
Attached are Charts including Asset Allocation
The Sentiment Surveys will be conducted every month.

For more information regarding Adviser Ratings or the Australian Investors' Association,

CONTACT

Bob Andrew AIA President	David Child AIA Director and CEO Adviser Ratings
Email: randrew@bigpond.net.au Phone: 07 3892 5529	Email: dachild@fuzion.com.au Phone: 07 3374.1175 Mobile: 0407 035 823

Investors more cautious regarding the share market than financial advisers.

Investors appear to have less faith in international equities than advisers.

The most significant movement has been in the number of investors adopting a bearish position. This has come from those previously neutral and bullish.

Whilst advisers seem to be in agreement, softening their previous bullish approach.

As noted last month, changes in both Investor and Adviser Sentiment regarding market direction are not causing either group to make any major changes in their Asset Allocations.