The DEM Index Fund, which is based on an index that tracks minority-owned companies, is facing liquidation after attracting only $212,391 in assets since it was introduced March 23, 1999, according to a proxy filed Feb. 20 with the Securities and Exchange Commission.

The fund was created to track the performance of the DEM Index, an index developed by Chapman Capital Management of Baltimore, the fund's investment advisor. The index is comprised of thirty U.S. companies that are controlled by African-Americans, Asian-Americans, Hispanic-Americans or women. To be included in the index, at least 10 percent of a company's shares must be owned by members of one or more of these groups, and at least one of the company's top three executive officers must represent one of the groups, according to the fund's prospectus.

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