Japanese mutual funds are headed for record declines this year as assets across the board have suffered losses from a combination of a global recession, plummeting interest rates and a surging yen.

Funds lost approximately $313 billion through the end of November—about 35% lower than the end of 2007, according to the country's Investment Trusts Association. This drop is even steeper than Japan's asset burst of 1990, when prices fell 22%.

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