BlackRock Inc., the world's largest asset manager, said it wouldchange its lineup of money-market mutual funds to make them complywith new federal regulations.

In an April 6 letter to investors, BlackRock said it would offerfunds that invest solely in government securities and others withfloating net asset values that would invest in corporate debt. Thecompany said it would have funds that limit holdings to securitieswith maturities of seven days or less. The firm also said it willoffer separately managed accounts and private funds on a “limitedbasis.”

BlackRock joins companies such as Fidelity Investments andFederated Investors Inc. in making changes to its lineup after theU.S. Securities and Exchange Commission last year wrote new rulesfor how non-government and institutional money market funds shouldoperate. Under the new system, which takes effect in October 2016,institutional funds that invest in non-government securities willhave to have a floating share price and impose redemption fees andgates in times of market stress.

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