- Nikkei reported 11 Japan asset managers will close funds
- Negative rates are hampering $14 billion money-fund industry
Nomura Holdings Inc. said it hasn’t made a decision to close its money-market fund, following a report it was among Japanese asset managers returning cash to investors amid a plunge in yields.
All 11 of the country’s managers running such funds plan to shut them rather than risk their value falling below par following pressure from the Bank of Japan’s negative interest-rate policy, the Nikkei newspaper reported. Nomura Asset Management Co. plans to repay investors in August and Daiwa Asset Management Co. will do so in October, Nikkei said.
“It’s not true we have decided to make redemptions in August,” Nomura spokesman Kazumasa Hironaka said by phone. “We have not announced anything.”
Daiwa said in a statement on its website that it wasn’t the source of the article, and it doesn’t plan to comment further.
Japan’s money-market industry is grappling with the fallout from the central bank’s surprise decision on Jan. 29 to charge interest on some deposits it holds for financial institutions. All 11 companies previously stopped accepting new investments into money-market funds, citing low rates resulting from BOJ stimulus.
Nomura’s money-management fund is yielding 0.017 percent, according to its website. Japanese government bonds with maturities out to a decade are below zero.
There were 13 funds with combined net assets of 1.6 trillion yen ($14.2 billion) at the end of January, according to the latest data from the Investment Trusts Association of Japan.