A press release entitled, "Loop Capital and Goldman Sachs Announce Cash Management Solution to Advance Racial Equity and Build Diverse Talent," tells us, "Clients of Black-led financial services firm Loop Capital and Goldman Sachs will have access to new money market fund share classes that will help fund scholarships for Black women; Google made a $500 million catalytic seed investment and played a foundational role in developing the fund." (See last week's Crane Data's Sept. 15 News, "BlackRock Converts Fed Trust to Social MMF; CastleOak Expands Team.")
It explains, "Loop Capital Markets, a Black-led investment bank, brokerage and advisory firm, and Goldman Sachs announced today a partnership to offer cash management solutions that will allow companies to advance racial equity by creating economic opportunity within diverse communities and providing funding for educational and career development for Black women in science, technology, engineering, mathematics (STEM) and related fields."
The release explains, "The two money market fund share class offerings will be available exclusively to clients of Loop Capital and Goldman Sachs and a portion of the revenue from the share classes will go to causes that have an impact on increasing racial equity. The Loop Capital share classes will be offered as part of the Goldman Sachs Financial Square Government Fund (LEIXX) and Goldman Sachs Financial Square Treasury Instruments Fund (LDIXX), which are Goldman Sachs Asset Management's two largest US money market funds. Google has made a $500 million catalytic seed investment in the funds and played a foundational role in developing the fund."
Kourtney Gibson, President of Loop Capital Markets, says, "We are delighted to have partnered with Goldman Sachs and Google on this important initiative. This launch creates a partnership for corporations to use the cash on their balance sheets to further opportunities for Black women and have a real, lasting impact on communities far and wide."
Goldman's statement continues, "The partnership will ensure the products play a role in promoting racial equity in financial services and beyond as part of Goldman Sachs' One Million Black Women initiative, a $10 billion investment strategy alongside $100 million in philanthropic support to help narrow opportunity gaps and positively impact the lives of at least one million Black women over the next decade."
Margaret Anadu, Global Head of Sustainability and Impact for Goldman Sachs Asset Management, comments, "This launch with Google demonstrates our shared commitment to both partner with organizations like Loop Capital that are led by Black women and to create commercial solutions to advance racial equity. Rooted in our belief that diversity is foundational to success, this partnership will create opportunities for young Black women pursuing careers in STEM and related fields, aligning directly with our One Million Black Women initiative."
The release adds, "Loop Capital and Goldman Sachs will make an annual donation from the net revenue they earn from the share classes to fund organizations creating opportunities for Black women, including funding educational and career development. Scholarship recipients will also be provided with access to comprehensive training, networking opportunities, career coaching and mentoring."
Juan Rajlin, Corporate Treasurer for Alphabet and Google states, "We're proud to be at the forefront of incorporating responsible investing into the money market fund ecosystem, translating our racial equity commitments into lasting and meaningful change. This share class, distributed by Loop Capital, will create economic opportunity within diverse communities and promote educational and career development for Black women in STEM. We hope to inspire other corporates to invest in these types of opportunities to make a positive impact."
The release also says, "The new share classes build upon Goldman Sachs' commitment to furthering its relationship with diverse broker-dealers, including veteran- and female-led firms, most recently R. Seelaus as well as Drexel Hamilton. In 2018, Goldman Sachs Asset Management became the first investment manager to offer a money market fund with a trading strategy that seeks to place purchase orders for portfolio transactions with women-, minority- and veteran-owned broker-dealers, subject to Goldman Sachs' duty to seek best execution for fund orders."
Finally, they write, "Google is committed to helping create sustainable equity and economic opportunity for all. This investment builds upon more than $320 million it has committed to organizations working to address racial inequities, including Google's partnership with Opportunity Finance Network to support CDFIs, and prior investments in money market funds distributed by diverse-led CDFIs and minority depository institutions (MDIs)."
For more on ESG and Social MMFs, see these recent Crane Data News stories: "BlackRock Converts Fed Trust to Social MMF; CastleOak Expands Team (9/15/21), "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). (Let us know if you'd like to see our listing of ESG and Social money market funds too.)
