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Nikko Asset Management to sue Enron over MMFs.

TOKYO, March 5 Kyodo

Nikko Asset Management Co. said Tuesday it will join a U.S. class action suit against collapsed energy giant Enron Corp. and its auditor Arthur Andersen for damage to money management funds (MMFs) incorporating Enron bonds.

''We are considering joining the class action suit in the United States, but we have yet to decide on anything specific,'' a spokesman for Nikko Asset Management said.

He said details, such as when the Japanese company will join in the class action, the amount of damages it will seek, and how customers will be compensated, have yet to be worked out.

Nikko Asset's MMFs -- the equivalent of money market funds in the U.S., have fallen below par value because the bonds issued by Enron have become worthless.

UFJ Partners Asset Management Co., Japan Investment Trust Management Co. and Sumisei Global Investment Trust Management Co., whose MMFs also dropped below par in November, are also considering joining in the class action suit, company officials said.

Nikko Asset had more than 3.9 trillion yen worth of outstanding MMFs at the end of October, but the amount had shrunk to around 173 billion yen by the end of February due to a barrage of cancellations.
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Comment:Nikko Asset Management to sue Enron over MMFs.
Publication:Japan Weekly Monitor
Geographic Code:1USA
Date:Mar 11, 2002
Words:205
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