State Street Global Advisors (SSGA), the third largest investment manager in the world announced, announced today the launch of Opportunity Class, a new class of money market funds aimed at enabling clients to support inclusion and diversity (I&D) initiatives with their cash investments.
Kim Hochfeld, Global Head of Cash at SSGA, said that the new initiative comes as the firm’s clients “are more interested than ever in a holistic, action-oriented approach to inclusion and diversity initiatives.” Hochfeld added:
“As one of the world’s largest fiduciary managers who is deeply committed to ESG-focused asset stewardship, we see it as our responsibility to offer our clients an opportunity to have a positive impact within their cash investment strategy.”
State Street has been an active voice in the investment management community on integrating racial equity and social justice issues into investment and engagement activities. Last year, the firm sent a letter to board chairs informing them that the asset manager will begin asking companies in its investment portfolio to articulate their risks, goals and strategy relating to racial and ethnic diversity, and to make relevant disclosure available to shareholders. SSGA has also made racial ethnic and diversity a key priority area for its stewardship initiatives.
For the new money market share class, SSGA will donate at least 20% of its annual net management fee to charitable and philanthropic organizations that align with State Street’s racial equity and social justice values, as outlined in the firm’s 10 Actions Addressing Racism and Inequality.
Opportunity Class shares will be offered for money market funds including State Street Institutional U.S. Government Money Market Fund (OPGXX), State Street Institutional Treasury Plus Money Market Fund (OPTXX), State Street Institutional Treasury Money Market Fund (OPRXX), State Street Institutional Liquid Reserves Fund (OPIXX), and State Street ESG Liquid Reserves Fund (OPEXX).
Joe McGrail, President of the firm’s charitable arm, State Street Foundation, said:
“The State Street Foundation is pleased to partner with the cash business in identifying recipient organizations whose focus aligns with the objectives of the Opportunity Class shares. The State Street Foundation seeks to bring communities lasting economic benefits, with primary strategic focus areas of education and workforce development. Our grantmaking guidelines explicitly incorporate racial equity and social justice criteria, including diversity across dimensions of population served, organizational leadership, staff, and board of directors.”