Japan mutual fund industry tallies MMF lessons

The collapse of Japan''s managed money fund industry has given the mutual fund industry a black eye, and investors a lesson about risk.

The last thing Japan's struggling mutual fund industry needed was a scandal, but that's what it got The trigger came as a surprise: the collapse of US energy trader Enron But it struck at an area long known to be vulnerable by the industry and regulators: managed money funds (MMFs), unregulated portfolios widely believed by investors and many asset management companies to be as safe as bank deposits

But there's no such thing as a free lunch Japanese investors, both retail and institutional, enthusiastically poured money into MMFs, eager to reap the higher yield while everyone - investors, regulators, industry organizations, distributors and fund managers - revelled in the delusion that such returns could come...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222