(Reuters) - BlackRock Inc, the world's largest money manager, will close or consolidate some money-market funds as the company responds to recent regulatory reforms, the Wall Street Journal reported.
BlackRock is considering changing its fund lineup to comply with rules adopted by the U.S. Securities and Exchange Commission in July, the company said in a letter to clients on Monday, according to the report. (on.wsj.com/1DcZbse)
The SEC adopted reforms requiring "prime" money funds used by institutional investors to float their values, instead of letting them maintain a stable value at $1 per share.
The goal is to prevent investors from getting spooked by the prospect of funds breaking the buck, or their net asset value falling below $1 per share.