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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE PROFITS ON REAL ESTATE

 /ADVANCE/ NEW YORK, Nov. 28 /PRNewswire/ -- With interest rates rising and real estate stock prices slipping, investors have pulled millions of dollars out of mutual funds that specialize in such shares, according to data gathered for Money magazine's Small Investor Index.
 The funds hold shares of real estate investment trusts (REITs), which invest in office and apartment buildings and other properties. This year, REITs performed well until mid-October, returning 24 percent from Jan. 1; funds investing in them showed similar gains. Since then, long-term interest rates have risen more than half a percentage point, knocking down the average REIT's share price by about 8 percent. (REITs, now yielding an average of 6.7 percent, are less attractive when yields climb on other investments.)
 As fund returns dropped -- by 4.5 percent this month -- investors began bailing out. The funds have had net withdrawals of $36.6 million so far in November, according to AMG Data Services in Arcata, Calif. By contrast, the funds gained a net $80.4 million in September and $26.5 million in October. The $120 million Evergreen Global Real Estate Fund, for example, attracted $60 million in September and October, but had net withdrawals of $8 million during the first three weeks of November.
 Analysts say it may be a mistake to flee the funds. "REITs could have double-digit returns next year," says Ken Campbell, a Radnor, Pa., money manager who specializes in real estate, "because the commercial real estate market seems to have bottomed out in much of the country."
 Last week, the Money Small Investor Index, which tracks the typical individual's holdings, fell $258 to $50,031. Stocks lost $134, while bonds declined $133. CDs and money-market funds added $9.
 This Last Year % Change from a
 Week Week Ago Week Ago Year ago
 106.67 107.22 98.76 -0.51% +8.01%
 Latest Changes For Each Asset
 % change from a
 Category Index Week Ago Year Ago
 Stocks
 NYSE 108.51 -0.53% +10.42%
 ASE/OTC 110.32 -1.00 +15.19
 Equity funds 110.38 -0.64 +12.39
 Bonds
 Taxable Bonds 108.59 -0.18 +9.80
 Municipals 106.42 -2.55 +7.08
 Bond funds 107.90 -1.36 +9.21
 Cash
 CDs 103.13 +0.06 +3.49
 MONEY FUNDS 102.21 +0.04 +2.46
 Other
 Real estate 99.70 -0.21 -0.05
 Gold 166.05 +0.23 +71.11
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 25.31% 26.34% Bond funds 7.60% 6.27%
 ASE/OTC 7.99 8.32 CDs 13.66 15.36
 Equity funds 8.29 6.04 Money funds 23.69 23.48
 Taxable bonds 5.96 6.82 Real estate 0.87 0.76
 Municipals 5.92 6.16 Gold 0.70 0.45
 Sources: Bank Rate Monitor, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Money Fund Report, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 11/29/93
 /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/


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Publication:PR Newswire
Date:Nov 24, 1993
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