Retail Money Market Fund to Focus on
Environmental Criteria
Increasing Access to Environmentally Aware
Investing by Making Cash More Green
BlackRock Cash Management has filed an amendment to the
registration statement for the BlackRock Money Market Portfolio to
convert it to the BlackRock Wealth Liquid Environmentally Aware
Fund (“WeLEAF” or “the Fund”), the first environmentally aware
money market product dedicated for the U.S. wealth market. WeLEAF
will expand BlackRock’s nearly $8 billion1 suite of environmentally
aware cash products, offering retail clients the option to align
their cash investments with their sustainability objectives.
WeLEAF, a retail prime money market fund, will seek to invest,
under normal market conditions, at least 80% of the value of its
net assets, plus the amount of any borrowings for investment
purposes, in securities whose issuer or guarantor, in the opinion
of BlackRock, at the time of purchase, meets the Fund’s
environmental criteria. Under the Fund’s investment policies, an
issuer or guarantor may meet such criteria if it, at the time of
the Fund’s investment, has better than average performance in
environmental practices. The Fund may also invest in green bonds
where, in the opinion of BlackRock, the use of proceeds from their
sale will be used to finance projects intended to generate an
environmental benefit. WeLEAF will not invest in securities issued
or guaranteed by entities that derive more than 5% of their revenue
from fossil fuels mining, exploration or refinement, or from
thermal coal or nuclear energy-based power generation.
“We have received overwhelming support from clients large and
small since the launch of our Liquid Environmentally Aware Fund
(“LEAF”) series of sustainable money funds,” said Thomas Callahan,
Head of Global Cash Management at BlackRock. “Client interest in
our LEAF series has revealed tremendous demand for sustainable
liquidity management. WeLEAF was designed to answer the call of our
Private Wealth distribution partners, who are seeking a money
market fund product that appeals to the growing segment of their
clients that care deeply about sustainability and climate
risk.”
In 2019, BlackRock launched the industry’s first
environmentally-focused cash management strategy, the LEAF series,
for institutional clients in the U.S. Today, the LEAF series, which
includes funds that incorporate environmental, social and
governance considerations, comprises nearly $8 billion1 in assets
managed by BlackRock.
In addition to using at least 5% of its net revenue from
management fees it earns through WeLEAF to purchase and retire
carbon credits either directly or through a third-party
organization, BlackRock also has a licensing agreement with World
Wildlife Fund (WWF), a leading environmental nonprofit dedicated to
environmental and wildlife protection. As part of the agreement,
BlackRock contributes annually to WWF to help further its global
conservation efforts. With respect to BlackRock’s purchase of
carbon credits, such purchases will be made at least annually, with
BlackRock maintaining the option to increase, decrease or terminate
these purchases in its sole discretion at any time. With respect to
BlackRock’s licensing agreement with WWF, (i) BlackRock will make a
payment to WWF in 2020; (ii) WeLEAF and its underlying investments
are not endorsed by WWF; and (iii) WWF has no responsibility for,
or role in managing or administering, WeLEAF or choosing any of
WeLEAF’s investments.
Expanding LEAF is part of BlackRock’s commitment to clients to
increase access to sustainable investing for all types of investors
and make sustainability integral to how the firm manages risk,
constructs portfolios and designs products.
BlackRock manages approximately $546 billion of cash assets
globally as of December 31, 2019. To bring the environmentally
aware strategy to retail clients, the Board of Trustees of
BlackRock Funds℠, on behalf of the $3.2 billion2 BlackRock Money
Market Portfolio (PINXX), has approved changes to BlackRock Money
Market Portfolio’s existing name, investment objective, investment
strategies and risks.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, our clients turn to us for the
solutions they need when planning for their most important goals.
As of December 31, 2019, the firm managed approximately $7.43
trillion in assets on behalf of investors worldwide. For additional
information on BlackRock, please visit www.blackrock.com/corporate
| Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock.
This material is provided for educational purposes only and
is not intended to be relied upon as a forecast, research or
investment advice, and is not a recommendation, offer or
solicitation to buy or sell any securities or to adopt any
investment strategy.
An investor should consider the investment objectives, risks
and expenses of the Fund carefully before investing. The Fund’s
prospectuses 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.
The information in WeLEAF’s prospectuses and Statement of
Additional Information is not complete and may be changed. WeLEAF
may not sell its securities until the registration statement filed
with the Securities and Exchange Commission is effective. WeLEAF’s
prospectuses and Statement of Additional Information are not an
offer to sell WeLEAF’s securities and are not soliciting an offer
to buy such securities in any state where the offer or sale is not
permitted.
Risk is inherent in all investing. You could lose money by
investing in WeLEAF. Although WeLEAF seeks to preserve the value of
your investment at $1.00 per share, it cannot guarantee it will do
so. WeLEAF may impose a fee upon the sale of your shares or may
temporarily suspend your ability to sell shares if WeLEAF’s
liquidity falls below required minimums because of market
conditions or other factors. An investment in WeLEAF is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. WeLEAF’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 WeLEAF at any
time.
Prepared by BlackRock Investments, LLC, member FINRA.
© 2020 BlackRock, Inc. All rights reserved. BLACKROCK®,
is a registered trademark of BlackRock, Inc., or its subsidiaries
in the United States and elsewhere.
All other marks are the property of their respective owners.
________________________________ 1 As of December 31, 2019 2 As
of March 4, 2020
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version on businesswire.com: https://www.businesswire.com/news/home/20200311005382/en/
Media Farrell Denby (212) 810-8034
farrell.denby@blackrock.com
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