The Wall Street Journal writes "World’​s Largest Money-​Market Fund Will Lower Its Returns, Shed Risk," which says, "The manager of the world'​s largest money-​market fund said it would take steps to reduce risk in its investments and lower the lofty yields that have helped draw a flood of cash into the fund over the past year. Tianhong Asset Management Co., a Beijing-​based company that manages a money-​market fund with more than $​200 billion in assets, is making changes to comply with liquidity rules imposed recently by Chinese regulators, according to Wang Dengfeng, general manager of Tianhong'​s fixed-​income department. "We will step up efforts to adhere to the original function of money-​market funds as a cash management tool that carries low risk, low yield and high liquidity," Mr. Wang said in an interview with The Wall Street Journal. The result will be a gradual slide in the fund'​s investment yields, he added." The piece explains, "The giant fund, called Yu'​e Bao, recently saw its seven-​day investment yield top 4% on an annualized basis, up from 2.​3% a year earlier. Its yield is in line with that of other Chinese money-​market funds but dwarfs interest rates on short-​term Chinese government debt and bank deposits, as well as returns on money-​market funds in the U.​S. and Europe."

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