State Street Launches New Money Market Fund Share Class to Benefit Philanthropic Organizations

Strategic Insights -

State Street Global Advisors, the asset management business of State Street Corporation, has announced the launch of a new money market fund share class called the Opportunity Class. This new share class is designed to benefit philanthropic organizations whose values align with State Street's commitment to racial equity and social justice. The Opportunity Class shares will be offered within State Street Global Advisors' existing money market fund suite, catering to clients interested in supporting inclusion and diversity (I&D) initiatives through their strategic cash investments.

Key Takeaways:

  • The Opportunity Class share class is designed to benefit philanthropic organizations that align with State Street's commitment to racial equity and social justice.
  • State Street Global Advisors will donate at least 20% of the annual net management fee received from assets invested in the Opportunity Class shares to charitable organizations that align with State Street's 10 Actions Addressing Racism and Inequality.
  • State Street's charitable arm, the State Street Foundation, will partner with the cash business to identify recipient philanthropic organizations.
  • The Opportunity Class shares are available in the following State Street money market funds: 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).
  • State Street Global Advisors has a long history of serving governments, institutions, and financial advisors, and has been a pioneer in index, ETF, and ESG investing.

Statistics:

  • State Street Global Advisors has approximately $3.9 trillion under its care as of September 30, 2021.
  • The Opportunity Class shares are designed to offer a positive impact within clients' cash investment strategies.
  • At least 20% of the net management fee received from assets invested in the Opportunity Class shares will be donated to charitable organizations that align with State Street's 10 Actions Addressing Racism and Inequality.

Sources:

  • State Street Corporation news release, November 15 (no author mentioned).
  • SSGA Funds Management, Inc. (OPGXX, OPTXX, OPRXX, OPIXX, and OPEXX fund prospectuses).
  • State Street Foundation's grantmaking guidelines and methodology (available on the State Street Corporation website).