The Thurgood Marshall College Fund (TMCF) will receive an annual contribution from a government money market fund designed for investors “seeking to further positive social outcomes through their cash management.”
TMCF will receive an annual contribution of at least 5% of net revenue from BlackRock’s management fee for the BlackRock Liquid Federal Trust Fund (BLFT). As the fund continues to grow, so will the contribution to TMCF as it’s not capped at any level, according to a TMCF spokesperson. It’s one of a series of initiatives planned for the partnership.
Established in 1987, Washington, D.C.-based TMCF is the nation’s largest organization exclusively representing the Black college community. It reported almost $22 million in total revenue for the fiscal year ending 2019, the most recent IRS tax form available. Member schools include the publicly-supported Historically Black Colleges and Universities (HBCU) and Predominantly Black Institutions (PBIs), enrolling nearly 80% of all students attending black colleges and universities.
“The funding from this partnership will enable more talented minority students to gain access to life-changing opportunities: from financial support for a premier college education, to unparalleled leadership guidance and career development,” Harry L. Williams, president and CEO of TMCF, said via a statement.
TMCF has a history of success supporting nearly 300,000 students who attend HBCUs and PBIs, and creating pathways to economic mobility through degree attainment and lucrative careers. Since its founding in 1987, TMCF has awarded more than $500 million in scholarships for students and boasts a 97% graduation rate for students in its programs.
As previously announced, BLFT is now seeking to place a portion of the aggregate dollar volume of purchase orders for its portfolio securities with diverse broker-dealers, subject to best execution requirements, and is seeking to establish dedicated share classes for certain minority-owned firms.
BLFT’s commitment to diverse broker-dealers will help accelerate the growth of this segment, according to BlackRock. Mischler Financial Group, the securities industry’s first minority-certified broker-dealer owned and operated by Service-Disabled Veterans (SDVs), is among the dealers for whom BLFT is seeking to establish dedicated share classes. It will also be a participant in the fund’s diverse broker-dealer program.
Assets under management (AUM) by BLFT have grown by more than 25% since the announcement of its socially aware goals thanks to the engagement of investors and partners. Committed as investors or distributors of BLFT are Bank of America, BNY Mellon, Capital One, The Coca-Cola Company, Google, Jefferies, Lyft, and Verizon.
“BLFT represents an opportunity for our clients to do more with their cash by advancing positive social outcomes,” Tom Callahan, Global Head of BlackRock’s Cash Management Business, said via a statement.
For more information on BLFT, visit www.BlackRock.com/cash