MMFs fall below par value due to inclusion of Enron bonds.
Money management funds (MMFs) offered by four Japanese asset management companies have fallen below their par value of 10,000 yen due to the inclusion of euroyen bonds issued by Enron Corp., a U.S. energy giant deep into management trouble, the Investment Trusts Association of Japan said Thursday.
The four companies are Nikko Asset Management Co., UFJ Partners Asset Management Co., Japan Investment Trust Management Co. and Sumisei Global Investment Trust Management Co., the association said.
While the four companies have net assets worth a total of some 3.3 trillion yen in the MMFs, Enron bonds account for about 40 billion yen.
The four companies have halted sales of funds incorporating Enron bonds, although investors are free to cancel these funds.
MMFs sold by 12 other asset management companies do not include Enron bonds.
The association also said two asset management companies, including Daiwa Asset Management Co., have sold bond investment trusts holding Enron bonds. The industry group will continue to probe whether other funds are exposed to the bonds.
MMFs, equivalent to money market funds in the United States, have drawn individual investors seeking a stable investment. The latest development ''has shaken the myth of safety attached to savings-oriented MMFs,'' a major brokerage house official said.
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|Comment:||MMFs fall below par value due to inclusion of Enron bonds.|
|Publication:||Japan Weekly Monitor|
|Date:||Dec 3, 2001|
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