Money market fund managers continue to launch "D&I" share classes, the latest trend in the ESG money fund space, according to a recent trio of announcements. The most recent moves comes from SSGA, which announced new "Opportunity" share classes, and BlackRock, which went live with its new Bancroft and Cabrera classes. The first press release, entitled, "State Street Global Advisors Introduces I&D Focused Share Class within Cash Management Suite," tells us, "State Street Global Advisors, the asset management business of State Street Corporation (STT), announced the launch of a new money market fund share class, the Opportunity Class, which will benefit philanthropic organizations whose values align with State Street's commitment to racial equity and social justice. With the launch of the new Opportunity Class shares within State Street Global Advisors' existing money market fund suite, the firm is answering the call from clients who are increasingly interested in supporting I&D initiatives with their strategic cash investments."
Kim Hochfeld, SSGA's Global Head of Cash, comments, "As one of the world's largest fiduciary managers who is deeply committed to ESG-focused asset stewardship, we see it as our responsibility to offer our clients an opportunity to have a positive impact within their cash investment strategy.... Our clients are more interested than ever in a holistic, action-oriented approach to inclusion and diversity initiatives."
The release explains, "The State Street money market funds' investment adviser, SSGA Funds Management, Inc., will donate out of its own assets at least 20% of its annual net management fee received from assets invested in the Opportunity Class shares to charitable organizations that align with State Street's 10 Actions Addressing Racism and Inequality. Leveraging the grantmaking guidelines and methodology of State Street Foundation, State Street's charitable arm, State Street Global Advisors identifies recipient philanthropic organizations to support."
State Street Foundation President Joe McGrail adds, "The State Street Foundation is pleased to partner with the cash business in identifying recipient organizations whose focus aligns with the objectives of the Opportunity Class shares.... The State Street Foundation seeks to bring communities lasting economic benefits, with primary strategic focus areas of education and workforce development. Our grantmaking guidelines explicitly incorporate racial equity and social justice criteria, including diversity across dimensions of population served, organizational leadership, staff, and board of directors."
SSGA money funds that will offer Opportunity Class shares include: State Street Institutional U.S. Government Money Market Fund (OPGXX), State Street Institutional Treasury Plus Money Market Fund (OPTXX), State Street Institutional Treasury Money Market Fund (OPRXX), State Street Institutional Liquid Reserves Fund (OPIXX) and State Street ESG Liquid Reserves Fund (OPEXX).
Another release, "Bancroft Capital Announces New Share Classes of BlackRock Money Market Funds," states, "Bancroft Capital (a certified Service-Disabled Veteran Broker Dealer) is pleased to announce the launch of new dedicated share classes of certain BlackRock money market funds exclusively for clients of Bancroft Capital and its affiliates. Starting on Veterans' Day 2021, dedicated share classes will be offered in BlackRock's Liquid Federal Trust Fund ... and BlackRock's Liquid Environmentally Aware Fund (LEAF).... These offerings will help bring sustainable investment principles to our institutional clients to help meet their cash & liquidity needs while seeking to create more positive social outcomes for our nation's diverse youth. This partnership will merge the powers of BlackRock's cash management expertise with Bancroft's commitment to serving clients, our country, and our veterans who have sacrificed on our behalf."
CEO Cauldon Quinn comments, "Bancroft Capital is proud to partner with BlackRock, the world's largest asset manager, in the creation of the Bancroft suite of money market funds. The credibility of this partnership and quality of the strategies we are providing to clients will allow us to grow our current cash and investment offering as we set the standard for excellence in this arena."
BlackRock Cash Management Head Tom Callahan adds, "BlackRock's and Bancroft's shared success amplifies our ability to drive positive social and environmental outcomes through cash management solutions.... We are honored to have been able to contribute to the business growth of diverse, women-owned and veteran owned broker-dealers for the past decade -- and even prouder to work in partnership with Bancroft to provide this expanded suite of unique liquidity strategies to our mutual clients."
Finally, a third release, "Cabrera Capital Markets and BlackRock Partner to Announce Dedicated Cash Management Share Classes," says, "Cabrera Capital Markets ('CCM') announced today three new Cabrera Capital Markets Share Classes on money market funds offered by BlackRock Global Cash Management, expanding our cash management solutions offerings for our institutional clients. The share classes, backed by BlackRock's leading cash management platform, are BlackRock Liquid Federal Trust Fund (CCMXX), BlackRock Liquid Environmentally Aware Fund (CCLXX) and TempFund (CCPXX).... Through this partnership, Cabrera's institutional clients now have access to expanded offerings of cash management solutions which emphasize environmental considerations (through the BlackRock Liquid Environmentally Aware Fund) and positive social outcomes through education (through the BlackRock Liquid Federal Trust Fund), all while seeking to conserve principal and liquidity."
Callahan states in this release, "BlackRock has long-standing relationships with diverse, women-owned and veteran-owned broker-dealers, and we're proud to have been able to contribute to the business growth of this community over the past ten years.... Now, both Cabrera Capital Markets and BlackRock will be working side by side to drive positive outcomes through the distribution of our unique fund suite, while providing world class liquidity solutions for our mutual clients."
The release adds, "The Cabrera Capital Markets Share Classes bring together the sustainable investment principles and cash solutions expertise of BlackRock coupled with the opportunity to invest with a certified minority-owned business (MBE) with deep history such as Cabrera."
Martin Cabrera, CEO & Founder, states, "This partnership with BlackRock serves to expand the long relationship of our firms with each other and grow into the cash solutions space together.... As a result, our clients will benefit with access to cash solutions that balance ESG considerations, impact through investment in a minority-owned firm and the scale and expertise of BlackRock's cash management business."
Crane Data currently tracks 26 Social, ESG, Minority or Veteran-affiliated MMFs with $71.1 billion (as of 10/31/21), representing 1.5% of the total $4.89 trillion in taxable MMFs. Social or "Impact" MMFs (all Govt MMFs) total $27.5 billion and include: Dreyfus Govt Sec Cash Instit (DIPXX, $4.3B), Federated Hermes Govt Ob Tax-M IS (GOTXX, $7.0B), Goldman Sachs FS Fed Instr Inst (FIRXX, $2.9B) and Morgan Stanley Inst Liq Govt Sec Inst (MUIXX, $17.6B). ESG MMFs (All Prime) total $9.0B and include: BlackRock LEAF Direct (LEDXX, $1.1B), BlackRock Wealth LEAF Inv (PINXX, $1.5B), DWS ESG Liquidity Inst (ESGXX, $619M), Morgan Stanley Inst Liq ESG MMP I (MPUXX, $3.6B), State Street ESG Liq Res Prem (ELRXX, $1.4B) and UBS Select ESG Prime Inst Fund (SGIXX, $783M).
Social and Veteran-Affiliated MMF Share Classes (Prime and Govt) total $34.7B and include: BlackRock Lq FedFund Mischler (HUAXX, $1.6B), Goldman Sachs FS Govt Drexel Hamilton (VETXX, $4.8B), Goldman Sachs FS Prm Ob Drexel Hamilton (VTNXX, $31M), Invesco Govt & Agency Cavu (CVGXX, $3.7B), Invesco Liquid Assets Cavu (CVPXX, $1M), Invesco Treasury Cavu (CVTXX, $1.1B), JPMorgan 100% US Trs MM Academy (JACXX, $119M), JPMorgan Prime MM Academy (JPAXX, $921M), JPMorgan Prime MM Empower (EJPXX, $15M), JPMorgan US Govt MM Academy (JGAXX, $6.7B), JPMorgan US Govt MM Empower (EJGXX, $3.3B), JPMorgan US Trs Plus MM Academy (JPCXX, $1M), JPMorgan US Trs Plus MM Empower (EJUXX, $140M), Morgan Stanley Inst Liq ESG MMP CastleOak (OAKXX, $255M), Morgan Stanley Inst Liq Govt CastleOak (COSXX, $372M) and Northern Instit Govt Select SWS (WCGXX, $11.6B). (Some other funds are pending, including: HSBC ESG Prime and Goldman's Loop Capital shares.)
For more on ESG and "Social" MMFs, see these Crane Data News pieces: "More D&I: State Street Files for Blaylock Van Shares; WSJ Hits Tether" (10/27/21); "BlackRock Expands ESG Lineup; Files for New Bancroft, Cabrera Shares" (8/19/21); "Northern Renames Diversity Shares Siebert Williams; Safened Platform" (4/20/21); "Morgan Stanley Files for CastleOak Shares; Bond Fund Symposium Today" (3/25/21); "JP Morgan Launches "Empower" Share Class to Support Minority Banks" (2/24/21); "Invesco Files for Cavu Secs Class" (12/18/20); "ESG and Social MMF Update: Mischler News, Green Deposits, Reg Debate" (12/4/20); "Goldman Launches Social Class; Tiedemann Adds FICA; CS Green ABCP" (1/24/20); "Mischler Financial Joins "Impact" or Social Money Market Investing Wave" (12/5/19); and "Dreyfus Launches "Impact" or Diversity Government Money Market Fund" (11/21/19). Click here to see the Federal Home Loan Bank Office of Finance's list of D&I or diversity and inclusion, dealers.
