Printer Friendly

Nikko Asset to redeem MMFs that have fallen below par value.

TOKYO, May 7 Kyodo

Nikko Asset Management Co., an arm of the Nikko Cordial Corp. Group., said Tuesday it will on June 7 redeem Nikko money management funds (MMFs) that have fallen below par value due to the failure of Enron Corp. of the United States.

The planned redemption date for the MMFs, whose remaining combined asset value totals 74.6 billion yen, has been brought forward because there is little chance they will recover their value, company officials said.

The MMFs, which incorporate euroyen bonds floated by U.S. energy giant Enron, fell below par value when financial markets were rocked by the news that Enron was on the verge of collapse.

MMFs, the equivalent of money market funds in the United States, invest more than 50% of collected funds in bonds and the remainder in short-term financial instruments such as certificates of deposit.

Nikko Asset's ''Nikko MMFs'' have been under substantial termination pressure and have suffered fund outflows triggered by the bankruptcy of Enron.

Nikko Cordial Corp. is the holding company which covers Nikko Cordial Securities Inc. and other Nikko Cordial Group companies.
COPYRIGHT 2002 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Comment:Nikko Asset to redeem MMFs that have fallen below par value.
Publication:Japan Weekly Monitor
Geographic Code:1USA
Date:May 13, 2002
Words:185
Previous Article:Ex-rugby player, TV Asahi reach settlement on rape report.
Next Article:Dollar boxed in around lower 127 yen in early Tokyo trading.
Topics:


Related Articles
MMFs fall below par value due to inclusion of Enron bonds.
Balance of current accounts at BOJ is over 14 tril. yen.
Investors cancel Enron-exposed MMFs worth over 1 tril. yen.
Cancellation of Enron-exposed MMFs tops 2 tril. yen.
Moody's may downgrade 2 Nikko Cordial firms over MMF fall.
Nikko Asset head to resign over MMF cancellations.
Nikko Cordial buys bonds to help Nikko Asset repay investors.
MMF cancellations to reduce Nikko revenues by 200 mil. yen.
FSA to review investment tools in MMF portfolio.
Nikko Asset Management to sue Enron over MMFs.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters