Global leaders in technology, financial services and consumer goods will pioneer growth of socially aware money market fund
BlackRock announced it will partner with the Thurgood Marshall College Fund (“TMCF”) to support students of Historically Black Colleges and Universities (“HBCUs”) and Predominantly Black Institutions (“PBIs”) in their journey to college and into upwardly-mobile careers. TMCF, the largest organization exclusively representing the Black College Community, will receive an annual contribution from BlackRock, which will represent a portion of net revenue from BlackRock’s management fee for the BlackRock Liquid Federal Trust Fund (“BLFT”). BLFT is a government money market fund designed for investors seeking to further positive social outcomes through their cash management. Several notable firms have committed as investors or distributors of BLFT, including Bank of America, BNY Mellon, Capital One, The Coca-Cola Company, Google, Jefferies, Lyft, and Verizon.
Dr. Harry L. Williams, President and CEO of TMCF, said: “We are proud to partner with an industry leader like BlackRock and applaud them for this initiative. The funding from this partnership will enable more talented minority students to gain access to life-changing opportunities: from financial support for a premier college education, to unparalleled leadership guidance and career development.”
TMCF has a history of success supporting nearly 300,000 students that attend HBCUs and PBIs, and creating pathways to economic mobility through degree attainment and lucrative careers. Since its founding in 1987, TMCF has awarded over $500 million in scholarships for students and boasts a 97% graduation rate for students in its programs. BlackRock’s annual contribution to TMCF is one of a series of initiatives planned for the partnership.
As previously announced BLFT is now seeking to place a portion of the aggregate dollar volume of purchase orders for its portfolio securities with diverse broker-dealers, subject to best execution requirements, and is seeking to establish dedicated share classes for certain minority-owned firms.
Eion D’Anjou, Portfolio Manager in BlackRock’s Cash Management Group for BLFT, said, “BlackRock’s support of TMCF will help break down structural barriers to high-potential careers for students of HBCUs and PBIs, while BLFT’s partnerships with minority, women, and/or disabled veteran owned broker-dealers will help strengthen those businesses. We are pleased to play a part in helping transform the futures of diverse students, business owners, and our community.”
Enhancing social outcomes through minority-owned broker-dealer programs
BlackRock believes BLFT’s commitment to diverse broker-dealers will help accelerate the growth of this segment. Mischler Financial Group, the securities industry’s first minority-certified broker-dealer owned and operated by Service-Disabled Veterans (SDVs), is among the dealers for whom BLFT is seeking to establish dedicated share classes, and will also be a participant in the fund’s diverse broker-dealer program.
“Mischler Financial is proud to partner with BlackRock on this socially-aware initiative that seeks to bring together the institutional relationships of Mischler and the investment experience of BlackRock Cash Management,” said La-Yona Rauls, Managing Director and Head of Corporate Cash Strategies, Mischler Financial Group. “Through BlackRock’s targeted support for HBCU and PBI students, this partnership has the potential to transform lives through education and career development opportunities.”
Premier global cash clients leading the way
BLFT’s AUM has grown by over 25% since the announcement of its socially aware goals, thanks to the strong engagement of prestigious investors and partners. Commenting on their participation, the firms highlighted how their investment objectives and principles are closely aligned with those of the fund:
- By making this fund available to Bank of America institutional clients, this effort complements the company’s $1.25 billion commitment to advancing racial equality and economic opportunity. Institutional clients can invest in the fund through the company’s Global Liquidity Investment Solutions (BofA Securities, Inc.) or Global Custody platforms.
- As part of its commitment to promoting diversity, inclusion and helping clients accomplish their ESG goals, BNY Mellon is pleased to offer institutional investors access to BLFT via LiquidityDirect, one of the market’s largest short-term investment platforms, giving clients the opportunity to invest in accordance with their social and ethical values.
- Capital One's participation in the fund reflects the company's efforts to embed diversity, inclusion and belonging into every business practice and corporate priority.
- Diversity, equity and inclusion is a top priority of The Coca-Cola Company. The company’s involvement aligns with this priority, furthering the mission of the Thurgood Marshall College Fund for the benefit of its students and their success.
- Google continues to promote educational and career development for students from the Black community because racial equity is inextricably linked to economic opportunity. Google’s participation in BLFT builds upon a number of significant commitments and major investments in this area, including Google’s existing work with the Thurgood Marshall College Fund.
- Jefferies enthusiastically joins BlackRock’s efforts to partner with the Thurgood Marshall College Fund through BLFT to support education and career opportunities for underrepresented groups. Jefferies is committed to supporting the advancement of minorities to achieve the equal treatment they so fully deserve.
- Lyft has many social initiatives — including a long-standing commitment to racial equity — and strives to meet its business needs in purpose-driven ways. BlackRock’s partnership with the Thurgood Marshall College Fund made Lyft's participation a natural fit.
- BlackRock’s partnership with TMCF through BLFT aligns with the goals of Verizon’s responsible business plan, Citizen Verizon. Through this initiative, Verizon is driving economic, environmental, and social progress for all.
Tom Callahan, Global Head of BlackRock’s Cash Management Business said, “BLFT represents an opportunity for our clients to do more with their cash by advancing positive social outcomes. We’re honored that some of the world’s largest cash investors have entrusted BlackRock Cash Management as their partner – not only to manage their liquidity needs, but also to share in our commitment to support our nation’s diverse youth.”
For more information on BLFT, please visit BlackRock.com/cash.
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About the Thurgood Marshall College Fund
Established in 1987, the Thurgood Marshall College Fund (“TMCF”) is the nation’s largest organization exclusively representing the Black College Community. TMCF member-schools include the publicly-supported Historically Black Colleges and Universities and Predominantly Black Institutions, enrolling nearly 80% of all students attending black colleges and universities. Through scholarships, capacity building and research initiatives, innovative programs, and strategic partnerships, TMCF is a vital resource in the K-12 and higher education space. The organization is also the source of top employers seeking top talent for competitive internships and good jobs.
TMCF is a 501(c)(3) tax-exempt, charitable organization. For more information about TMCF, visit www.tmcf.org.
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You should consider the investment objectives, risks and expenses of BLFT (the “Fund”) carefully before investing. The Fund’s prospectus and, if available summary prospectus, contain this and other information about the Fund and are available by calling our Client Service Center at 800-441-7450 or by visiting www.blackrock.com/cash. Please read the prospectus carefully before investing.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
BlackRock or its affiliates will use at least 5% of BlackRock’s net revenue from its management fee from the Fund to further educational initiatives. BlackRock will make a contribution to an educational initiative at least annually, with BlackRock maintaining the option to increase, decrease or terminate this contribution in its sole discretion at any time.
The information in the prospectus and Statement of Additional Information for the Fund’s Mischler Financial Group Shares is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus and Statement of Additional Information for the Fund’s Mischler Financial Group Shares are not an offer to sell these securities and are not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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