Wells Fargo to change U.S. money market funds

NEW YORK (Reuters) – Wells Fargo’s fund unit said on Thursday it will make changes to its U.S. money market funds, marking the latest fund operator to adopt moves to comply with regulatory changes for the $2.6 trillion industry.

These changes will become effective on or before Oct. 14, 2016, the San Francisco-based Well Fargo Advantage Funds said in a statement.

One of the major changes is that its institutional prime and municipal funds will abandon its stable $1 a share net asset value (NAV) and move to a floating NAV.

These funds will also be subject to liquidity fees and/or redemption gates if the weekly liquid assets fell below 30 percent, the company said.

Well Fargo Advantage Funds oversee $110.5 billion in money market assets at the end of the first quarter.

(Reporting by Richard Leong Editing by W Simon)

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