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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS CASH OUT OF JAPAN

 /ADVANCE/ NEW YORK, June 27 /PRNewswire/ -- As the upheaval in Japan's ruling political party roiled the Tokyo stock market and battered the yen, U.S. investors quickly pulled millions of dollars out of investments centered on Japan, according to data gathered for Money Magazine's Small Investor Index.
 Since June 14, when it became clear that the Liberal Democratic Party was losing its nearly 40-year-old grip on Japan's parliament, most of the half-dozen U.S. mutual funds that invest primarily in Japan experienced major cash outflows. Investors yanked $20.3 million out of the $563 million Japan Fund, for example, after having put in $6.1 million during the previous two weeks. Over the same period, U.S. mutual funds specializing in Japanese shares plunged 8.3% in value, after having soared 39% during the first five months of the year.
 Gavin Quill, vice president of marketing with Scudder, Stevens & Clark, the New York City investment management firm that runs the Japan Fund, speculates that many small investors are taking profits rung up earlier in the year. But international market analysts say that Japanese stocks still have potential despite Tokyo's current political turmoil. "The breakup of the Liberal Democratic Party is just what's needed to bring Japan's politics up to speed with its economy," says George Foot, a partner at the New York City investment firm Newgate International. "Over the next 18 months, we could see the Japanese stock market rise by more than 50%."
 Last week, the Money Small Investor Index, adjusted for the latest Federal Reserve data, lost $33 to $46,473. The typical individual investor's stockholdings dropped $86, while bonds gained $30. Certificates of deposit and money-market funds contributed $10.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 103.60 103.67 94.22 -0.07% +9.73%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.94 -0.38% +14.06%
 ASE/OTC 101.74 -1.04 +25.63
 Equity funds 103.78 -0.45 +14.32
 Bonds:
 Taxable bonds 106.19 +0.33 +11.25
 Municipals 105.99 +0.29 +11.26
 Bond funds 106.00 +0.14 +10.01
 Cash:
 CDs 101.71 +0.07 +3.71
 Money funds 101.20 +0.05 +2.68
 Other:
 Real estate 101.97 +0.30 -0.52
 Gold 149.14 +3.99 +31.31
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 21.49% 20.88% Bond funds 7.22% 6.19%
 ASE/OTC 6.78 6.59 CDs 13.61 16.57
 Equity funds 7.30 5.76 Money funds 24.90 24.49
 Taxable bonds 9.84 10.52 Real estate 0.84 0.81
 Municipals 7.36 7.65 Gold 0.67 0.54
 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- 6/28/93
 /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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GK -- NY036 -- 5831 06/25/93 15:15 EDT
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Date:Jun 25, 1993
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