After 2-month pause following the release of the SEC's Money Fund Reform Proposals, the D&I and ESG money market fund space appears to be heating up again. A new press release entitled, "Dreyfus launches BOLD shares supporting Howard University," tells us, "Dreyfus Cash Investment Strategies (Dreyfus), BNY Mellon Investment Management's affiliated liquidity manager, ... announced a partnership with Howard University to help support its students in their educational journey with the launch of a new BOLD share class for the Dreyfus Government Cash Management fund. Offered through Dreyfus' largest money market fund, 10% of the BOLD shares net revenue, with a minimum of $300,000, will be donated to Howard's Graduation Retention Access to Continued Excellence (GRACE) Grant annually."
It continues, "Howard University, a leading Historically Black College and University (HBCU), was specifically chosen due to its unwavering commitment to underrepresented minorities and dedication to affordable education. The BOLD shares, which stands for Black Opportunity for Learning and Development, is designed for institutional investors and offered exclusively through BNY Mellon, including LiquidityDirect." (LiquidityDirect is BNY Mellon's online money market fund trading "portal".)
Dreyfus CIO John Tobin tells us, "Investors can make a significant impact with their cash investments and support Howard University, one of the most distinguished universities in the country.... Partnering with Howard University to help empower the next generation of leaders is an honor. This initiative is just the first step in a long journey with Howard and their graduates."
The press release says, "Howard's GRACE Grant was created in 2014 by Howard University President Dr. Wayne A.I. Frederick to provide additional funding for students who receive the maximum Federal Pell Grant. Distributed based on student need, the program provides a 100% match for Federal Pell Grant students and additional funding for students with no expected family contribution to their education. Since its inception, GRACE recipients saw an average 15% increase in retention and an average four-year graduation rate of 78%, a 32% increase compared to students who did not receive GRACE funds."
Howard President Dr. Wayne A.I. Frederick comments, "We are very excited to partner with Dreyfus on this innovative approach to social impact. Through this partnership in support of the GRACE Grant, investors will make a significant impact in the lives of Howard students who are dedicated to succeeding in higher education and in their respective fields but face financial barriers to completing their education."
The release also states, "Dreyfus is pleased to share the following firms are among the inaugural investors in the BOLD share class, supporting today's launch: Aon PLC, Genworth Financial, Inc., IBM, Jefferies, Macquarie Group, Protective Life Corporation, Raytheon Technologies, Paramount and UPMC for You."
It quotes Laide Majiyagbe, head of financing & liquidity for BNY Mellon Markets, "Investors are increasingly seeking opportunities to make a social impact with their investment decisions.... Share classes like BOLD enable investors to pursue their financial objectives while also making a real difference in improving the lives and education of promising young people."
Finally, Dreyfus states, "With nearly 50 years of serving investors' cash management needs, the launch of the BOLD shares builds upon the firm's deep history of innovation to create an opportunity for clients to invest in a better future. More information on this announcement is available here."
Crane Data currently tracks 35 Social, ESG, Minority or Veteran-affiliated MMFs with $85.9 billion (as of 1/31/22), representing 1.7% of the total $5.043 trillion in taxable MMFs. (The Social & ESG MMF total is down from $87.8 billion as of 12/31/21.) Social or "Impact" MMFs (all Govt MMFs) total $32.9 billion and include: Dreyfus Govt Sec Cash Instit (DIPXX, $4.6B), Federated Hermes Govt Ob Tax-M IS (GOTXX, $7.0B), Goldman Sachs FS Fed Instr Inst (FIRXX, $3.0B) and Morgan Stanley Inst Liq Govt Sec Inst (MUIXX, $18.3B). ESG MMFs (All Prime) total $9.6B and include: BlackRock LEAF Direct (LEDXX, $1.1B), BlackRock Wealth LEAF Inv (PINXX, $1.5B), DWS ESG Liquidity Inst (ESGXX, $608M), Morgan Stanley Inst Liq ESG MMP I (MPUXX, $4.0B), State Street ESG Liq Res Prem (ELRXX, $1.4B) and UBS Select ESG Prime Inst Fund (SGIXX, $1.0B).
Social and Veteran-Affiliated MMF Share Classes (Prime and Govt) total $43.3B and include: BlackRock Lq FedFund Mischler (HUAXX, $1.6B), Goldman Sachs FS Govt Drexel Hamilton (VETXX, $6.3B), Goldman Sachs FS Prm Ob Drexel Hamilton (VTNXX, $31M), Invesco Govt & Agency Cavu (CVGXX, $4.3B), Invesco Liquid Assets Cavu (CVPXX, $1M), Invesco Treasury Cavu (CVTXX, $588M), JPMorgan 100% US Trs MM Academy (JACXX, $102M), JPMorgan 100% US Trs MM Empower (EJTXX, $138M), JPMorgan Prime MM Academy (JPAXX, $937M), JPMorgan Prime MM Empower (EJPXX, $565M), JPMorgan US Govt MM Academy (JGAXX, $10.8B), JPMorgan US Govt MM Empower (EJGXX, $4.1B), JPMorgan US Trs Plus MM Academy (JPCXX, $1M), JPMorgan US Trs Plus MM Empower (EJUXX, $220M), Morgan Stanley Inst Liq ESG MMP CastleOak (OAKXX, $255M), Morgan Stanley Inst Liq Govt CastleOak (COSXX, $182M) and Northern Instit Govt Select SWS (WCGXX, $12.8B). (State Street also has Opportunity, Bancroft, Blaylock and Cabrera shares, but these have minimal assets to date.)
For more on ESG and "Social" MMFs, see these Crane Data News pieces: "SSGA Debuts Opportunity Class; BlackRock Bancroft, Cabrera Shares Live" (11/17/21); "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); "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.
