Kazuyoshi Kimura, president of Nikko Asset Management Co., will resign to take responsibility for massive cancellations of its money management funds following their price plunge, the company said Monday.
Executive Managing Director Masafumi Hikima, 46, will replace Kimura, who will become chairman with no right to represent the company, the investment arm of Nikko Cordial Securities Inc.
The appointment will be formalized at an extraordinary meeting of shareholders in January, Nikko Asset said.
The prices of MMFs at Nikko and other asset management companies have fallen below their face value since the failure of U.S. energy giant Enron Corp. The funds included bonds issued by Enron.
The outstanding balance of MMFs managed by Nikko Asset plunged to 300 billion yen from 4 trillion yen following Enron's bankruptcy.
MMFs, equivalent to money market funds in the United States, primarily invest in bonds and short-term financial instruments and had drawn brisk orders from individual investors.