A press release entitled, "Northern Trust Asset Management Announces Renaming of Fund Share Class Utilized in Diversity Efforts," explains, "Northern Trust Asset Management (NTAM) announced the re-naming of a share class which provides institutional investors with a money market solution offered as part of NTAM's well-established partnership with a leading minority- and women-owned business. The change became effective April 1 and reflects the merger of Siebert Cisneros Shank & Co. and The Williams Capital Group; the combined company operates under the name Siebert Williams Shank & Co. (SWS)." Northern's Williams class was one of the first "ESG" or "Social" money fund options partnered with a minority-owned businesses available. (Note: Please join us for our free "ESG & Social Money Fund Update," which takes place Thursday, April 22 from 2-3pm EDT.)
Northern continues, "The Siebert Williams Shank Shares class (WCGXX) (formerly The Williams Capital Shares class) of the Northern Institutional Funds (NIF) U.S. Government Select (Money Market) Portfolio (Fund) was first offered more than six years ago and represents a longstanding collaboration between Northern Trust Asset Management (NTAM), a leading global asset manager with $1.1 trillion in assets under management, and Siebert Williams Shank & Co., LLC (SWS), a leading minority- and women-owned independent, non-bank financial services firm in the United States."
Sheri Hawkins, global head of product at NTAM is quoted, "We greatly value our long-time relationship with Siebert Williams Shank and are pleased to continue partnering with them.... We believe that partnering with diverse organizations can meet the shared goal of delivering better outcomes for investors and the communities we serve."
The release explains, "Since the inception of the Fund share class on September 15, 2014, it has grown to $5.0 billion, representing more than twelve percent (12%) of the NIF U.S. Government Select Portfolio's overall $41.4 billion net assets, as of March 31, 2021. Partnering with minority-owned firms is just one way that NTAM has been putting its values into action over the years. For decades, NTAM has been driving change by developing innovative investment programs and investing in the communities it serves."
It adds, "In 2007, NTAM established its Minority Brokerage Program and has been engaging with diverse managers through its Multi-Manager Program since 1979. NTAM recently raised its Minority Brokerage Program's execution target to 15 percent for equity security trading commissions in certain other NTAM commingled funds, while continuing to meet our best execution standards. SWS is a participant firm in the Minority Brokerage Program, which is another way that NTAM and SWS have collaborated." See an earlier Prospectus Supplement filing.
Crane Data currently tracks 22 Social, ESG, Minority or Veteran-affiliated MMFs with $53.3 billion (as of 3/31/21). Social or "Impact" MMFs (all Govt MMFs) total $26.9 billion and include: Federated Hermes Govt Ob Tax-M IS (GOTXX, $7.9B), Dreyfus Govt Sec Cash Instit (DIPXX, $4.5B), Goldman Sachs FS Fed Instr Inst (FIRXX, $3.0B) and Morgan Stanley Inst Liq Govt Sec Inst (MUIXX, $11.5B). ESG MMFs (All Prime) total $8.9B and include: BlackRock LEAF Direct (LEDXX, $1.2B), BlackRock Wealth LEAF Inv (PINXX, $2.3B), DWS ESG Liquidity Inst (ESGXX, $539M), Morgan Stanley Inst Liq ESG MMP I (MPUXX, $3.1B), State Street ESG Liq Res Prem (ELRXX, $1.1B) and UBS Select ESG Prime Inst Fund (SGIXX, $546M).
Social and Veteran-Affiliated MMF Share Classes (Prime and Govt) total $17.5B and include: Goldman Sachs FS Govt Drexel Hamilton (VETXX, $5.1B), Goldman Sachs FS Prm Ob Drexel Hamilton (VTNXX, $66M), Invesco Govt & Agency Cavu (CVGXX, $79M), Invesco Liquid Assets Cavu (CVPXX, $1M), Invesco Treasury Cavu (CVTXX, $1M), JPMorgan 100% US Trs MM Academy (JACXX, $128), JPMorgan Prime MM Academy (JPAXX, $1.2B), JPMorgan Prime MM Empower (EJPXX, $1M), JPMorgan US Govt MM Academy (JGAXX, $5.0B), JPMorgan US Govt MM Empower (EJGXX, $1.0B), JPMorgan US Trs Plus MM Academy (JPCXX, $18M) and Northern Instit Govt Select SWS (WCGXX, $5.0B). (Several other funds are pending, including: HSBC ESG Prime.)
For more on ESG and "Social" MMFs, see these Crane Data News pieces: "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).
In other news, another release, entitled, "Safened US, Inc. launches next generation deposit platform for US Corporates," explains, "Safened today announced the launch of its Global Liquidity Platform, seamlessly connecting high quality commercial banks with their corporate customers. The platform enables banks to cost effectively attract Basel III friendly deposits, expand their funding sources and diversify their deposit base. By customizing their deposit offerings, banks can meet their funding needs and their regulatory requirements by setting LCR friendly terms. The various deposit instruments offered by Safened's network empower banks to design and attract balance sheet optimized funding."
Safened tells us, "Corporate clients are able to choose from a very competitive and robust set of deposit options. Safened's partner banks are among the highest rated institutions in the U.S. and around the world. Our novel use of "evergreen" and "notice" terms takes the hassle out of rollovers and reinvestments." Graeme Henderson, Safened's Head of Sales, comments, "Our innovative deposit product suite and optimization tools are ideal, whether you're a corporate treasurer managing a short-term portfolio, or a banker sourcing deposits. We put the entire market at your command."
Finally, a third press release, "FICC Sponsored Cleared Repo Now Available via BNY Mellon's LiquidityDirect, " announces that, "Institutional clients are now able to seamlessly invest cash in cleared repo through LiquidityDirect, BNY Mellon's market-leading short-end investment portal." It says, "The addition of cleared repo represents the next step in BNY Mellon's continuing plans to enhance the LiquidityDirect platform and its services to enable clients to invest in a wide variety of short-end investment products."
BNY explains, "Cleared repo through the Fixed Income Clearing Corporation (FICC) has emerged as an important short-term investment option for liquidity providers, particularly since 2017 when changes in entry requirements increased the community of investors eligible to utilize the product, many of whom use LiquidityDirect today. Sponsored membership enables sponsoring firms like BNY Mellon to provide cleared repo to end users that would otherwise be ineligible to access the FICC clearing house, enabling clients to invest and raise cash in cleared repo without the financial obligations of full clearing house membership."
They continue, "Since BNY Mellon launched its sponsored member program at FICC in June 2017, the sponsored cleared repo sector has enjoyed strong growth, climbing from approximately $30 billion in daily volume in early 2017 to peak at over $525 billion in March 2019. Daily volumes have remained consistently above $200 billion in recent months. The addition of cleared repo to LiquidityDirect broadens the range of short-term investments on the platform to include a secured, centrally cleared alternative that provides counterparty diversity and potentially enhances yields."
George Maganas comments, "LiquidityDirect is one of the world's largest digital portals for investing in money market funds. With the addition of cleared repo -- and with other vehicles still to come -- we are demonstrating our ambition to build the venue into the market's leading short-end investment platform.... Today, clients are looking for a single point of contact that both grants access to a wide variety of investment instruments as well as collateral management, treasury services and asset servicing capabilities. LiquidityDirect is that access point, and we are committed to connecting the dots for clients." (See too the April issue of our Money Fund Intelligence, which features a profile of Maganas and LiquidityDirect.)
