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FSA to review investment tools in MMF portfolio.

TOKYO, Jan. 16 Kyodo

Financial Services Minister Hakuo Yanagisawa on Wednesday expressed willingness to review the types of financial instruments brokerage houses can use to invest money management funds (MMFs), government officials said.

''The Financial Services Agency is contemplating reviewing the types of assets that could be put into the portfolios of MMFs, since ordinary people perceive MMFs as a type of investment tool for which repayments of invested principal are guaranteed,'' Yanagisawa was quoted as saying.

Yanagisawa made the remark at a Wednesday meeting of cabinet ministers in charge of economic policy and top policymakers from the ruling coalition.

Some MMFs that incorporated Euroyen bonds floated by U.S. energy giant Enron Corp. fell below par value in late November, when the financial market was rocked by news that Enron was on the verge of collapse. Enron filed for court protection from creditors on Dec. 2.

MMFs, the equivalent of money market funds in the United States, invest more than 50% of the collected funds in bonds, with the remainder invested in short-term financial instruments such as certificates of deposit.
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Comment:FSA to review investment tools in MMF portfolio.
Publication:Japan Weekly Monitor
Geographic Code:1USA
Date:Jan 21, 2002
Words:181
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