Fidelity to Change Largest Money Fund to Buy Government Debt

Fidelity Investments plans to convert its largest money fund into one that almost only buys securities issued or backed by the U.S. government after regulators imposed restrictions last year.

Fidelity is proposing that the $111.5 billion Fidelity Cash Reserves fund invest at least 99.5 percent of total assets in cash, government securities or repurchase agreements that are fully collateralized, according to a regulatory filing.