NEW YORK--(BUSINESS WIRE)--BlackRock Cash Management has filed an initial registration statement for the BlackRock Liquid Environmentally Aware Fund (“LEAF”), a series of the BlackRock FundsSM, with the U.S. Securities and Exchange Commission. LEAF is a prime money market fund that will seek to provide clients with as high a level of current income as is consistent with liquidity and preservation of capital, while giving consideration to select environmental criteria.
LEAF will seek to invest in a broad range of money market instruments whose issuer or guarantor, in the opinion of BlackRock, at the time of investment has better than average performance in environmental practices. BlackRock will use data from independent ESG ratings vendors and may employ the use of its own models. The Fund will also prohibit any investments in companies that earn significant revenue from the mining, exploration or refinement of fossil fuels or from thermal coal or nuclear energy-based power generation.
In addition to LEAF’s environmentally-focused investment strategy, 5% of the net revenue from BlackRock’s management fee from the Fund will be used to purchase and retire carbon offsets either directly or through a third-party organization.
BlackRock has also entered into an agreement with World Wildlife Fund (WWF), a leading environmental non-profit with recognized expertise and experience in environmental protection. As part of this agreement, BlackRock will make an annual payment to help further the global conservation efforts of WWF.
LEAF is subject to risks, including the risk that LEAF’s environmental criteria exclude securities of certain issuers causing LEAF to forego some market opportunities available to other funds. LEAF is also subject to credit risk, interest rate risk and market risk among other risks.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. The information in the registration statement is not complete and may be changed. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy these securities in any State in which such offer, solicitation or sale is not permitted.
Managing a $448.6 billion platform on behalf of its clients, BlackRock Cash Management is committed to providing innovative products that meet the rising demand from clients for investment solutions that align with their views on climate risks and environmental issues. This effort is part of BlackRock’s broader commitment to provide greater sustainable investing options to our clients. BlackRock currently manages a broad suite of dedicated sustainable investment solutions across asset classes, and is investing in building these capabilities based on the belief that sustainability-related issues are increasingly relevant to traditional investment processes.
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of December 31, 2018, the firm managed approximately $5.98 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | 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. Please read the prospectus carefully before investing.
Risk is inherent in all investing. You could lose money by investing in LEAF. Because the share price of LEAF will fluctuate, when you sell your shares, they may be worth more or less than what you originally paid for them. LEAF may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if LEAF’s liquidity falls below required minimums because of market conditions or other factors. An investment in LEAF is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. LEAF’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 LEAF at any time.
Prepared by BlackRock Investments, LLC, member FINRA.
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