Title: Japanese money market funds to close as returns prove elusive -  Nikkei Asia
Headings: Japanese money market funds to close as returns prove elusive
Japanese money market funds to close as returns prove elusive
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Content: As money market fund returns sank to a record low of around 0.02%, asset management companies decided that returning customers' money before the funds fall below par value would be safest. All 11 companies have stopped accepting new investments into money market funds. Nomura Asset Management and Daiwa Asset Management intend to repay investors by August and October, respectively. Mitsubishi UFJ Kokusai Asset Management is preparing to do so in April or May. Five other companies, including Nikko Asset Management, had announced plans as of Monday to return customers' money. Money market funds were introduced in Japan in May 1992. Retail investors were drawn to their safety and higher returns compared with bank deposits. Total assets in money market funds peaked at 21 trillion yen in May 2000. But their popularity waned after the 2001 collapse of U.S. energy company Enron, which caused the money market funds holding its debt to drop below par value. The impact of negative interest rates is spreading to other financial products. Returns have sunk below 0.02% for money reserve funds, mutual funds similar to money market funds with assets totaling more than 10 trillion yen.