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INVESTORS DUMP ENVIRONMENTAL FUNDS

 INVESTORS DUMP ENVIRONMENTAL FUNDS
 /ADVANCE/ NEW YORK, June 7 /PRNewswire/ -- While 178 world leaders


were making plans to attend this week's much-heralded Earth Summit in Rio de Janeiro, small investors were pulling millions of dollars out of environmental mutual funds, according to data gathered for Money magazine's Small Investor Index.
 Chief reason for the withdrawals: The funds, which hold shares in companies that clean up the environment, have performed poorly since mid-1990, when enthusiasm for the 20th anniversary of Earth Day was high and six of the seven green funds were launched.
 Lipper Analytical Services reports that environmental funds have lost an average of 15.1 percent since July 1990, compared with a gain of 19.8 percent for the average stock fund. In the past five months alone, green funds have declined 4.4 percent, while the typical stock fund is about even.
 In a search for higher returns, small investors have been yanking money out of the funds since Jan. 1. For example, the $56 million Kemper Environmental Services Fund, down 8.3 percent so far this year, had net redemptions of $5 million through May. Similarly, investors in the $62 million Fidelity Select Environmental Fund, down 5.9 percent, have withdrawn $5.2 million.
 Still, many analysts who cover environmental stocks think investors may be acting too hastily. "There's no question that the commitment to solve environmental problems will grow enormously in the 1990s," says Mindy Lubber, president of Green Century Capital Management, a Boston environmental fund management company. "Billions of dollars will be spent to clean up pollution, which would be positive for these stocks."
 Last week, the Small Investor Index rose $12 to a record $46,139. Stocks lost $29, while bonds gained $27. Certificates of deposit and money funds contributed $14.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 102.58 102.56 94.06 +0.03% +9.06%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.47 -0.75% +11.10%
 ASE/OTC 105.18 +1.34 +16.96
 Equity funds 104.16 +0.59 +11.58
 Bonds:
 Taxable bonds 101.67 +0.22 +12.25
 Municipals 102.63 +0.08 +10.43
 Bond funds 102.32 +0.48 +11.92
 Short-term assets:
 CDs 101.96 +0.08 +5.21
 Cash 101.69 +0.07 +4.44
 Other:
 Real estate 98.24 -0.01 -5.14
 Gold 93.45 -0.26 -9.81
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 22.13% 21.87% Bond funds 5.51% 4.40%
 ASE/OTC 6.99 6.91 CDs 15.97 19.27
 Equity funds 5.32 4.08 Cash 23.24 21.97
 Taxable bonds 12.68 13.11 Real estate 0.76 0.77
 Municipals 6.90 7.07 Gold 0.51 0.56
 Sources: Bank Rate Monitor, IBC/Donoghue's Money Fund Report, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 6/8/92 R
 /NOTE TO EDITORS: This material is also available in printable form from AP GraphicsNet and Access services for graphics and tables (under the file name MoneyIndex) and from PR Newswire for full text/
 /CONTACT: Jordan Goodman of MONEY, 212-522-3618, or Patti Straus of MONEY public relations, 212-522-2695/ CO: ST: IN: SU: ECO


GK -- NY054 -- 7662 06/05/92 21:12 EDT
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Date:Jun 5, 1992
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