The new environment for cash investing
Research shows that 79% of the general population is interested in sustainable investing,1 yet limited product offerings exist that allow cash investors to prioritize their environmental impact. BlackRock is seeking to change that with a sustainable investment option for environmentally-focused cash investors.
The BlackRock Liquid Environmentally Aware Fund (“LEAF®” or the “Fund”) seeks to provide investors an opportunity to achieve the stability, liquidity, and yield potential of a 2a-72 money market fund through investment in securities issued or guaranteed by entities that meet the Fund’s environmental criteria.
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- Securities that derive more than 5% of their revenue from fossil fuels mining, exploration, or refinement
- Securities that derive more than 5% of their revenue from thermal coal or nuclear energy based power generation
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- “Green” bonds,3 where the use of proceeds from the sale of these bonds will be used to finance projects intended to generate an environmental benefit4
- Securities issued by institutions that have a commitment to support sustainable palm oil
In order to seek to achieve LEAF’s environmental goals, BlackRock will consider environmental risk metrics in addition to our standard credit risk assessment process. In evaluating performance in environmental practices, BlackRock will use data or other environmental, social, or governance risk metrics including ratings provided by independent research vendors in determining whether to invest (or continue to invest) in securities issued or guaranteed by a particular entity.
Key Features
Rule 2a-7 prime money market fund
LEAF seeks to pursue as high a level of current income as is consistent with liquidity and preservation of capital while giving consideration to select environmental criteria.
LEAF’s environmental impact
In addition to LEAF’s environmentally-focused investment strategy, at least 5% of the net revenue from BlackRock’s management fee from the Fund will be used to purchase and retire carbon credits.
Supporting World Wildlife Fund’s (“WWF”) conservation effort
BlackRock is pleased to make an annual contribution of $185,000 to World Wildlife Fund,5 a leading environmental non-profit organization with recognized expertise and experience in environmental protection. Through its global climate programs, WWF is working to shape a climate-resilient and zero carbon world, powered by renewable energy.
Want to know more?
If you are interested in LEAF, please reach out to your relationship manager or contact us to learn more!