Nikko Asset to redeem MMFs that have fallen below par value.
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.
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|Comment:||Nikko Asset to redeem MMFs that have fallen below par value.|
|Publication:||Japan Weekly Monitor|
|Date:||May 13, 2002|
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