BlackRock colors a money fund green

The asset manager’s $3 billion Money Market Portfolio will focus on issuers that meet its environmental criteria

Investment giant BlackRock Inc. is changing the name, investment objective and strategies of its $3 billion Money Market Portfolio to make the fund more environmentally sensitive.

Effective May 11, the fund will be labeled the BlackRock Wealth Liquid Environmentally Aware Fund. It will continue to invest in liquid, short-term instruments and aim for a high level of current income, but it will do so “while giving consideration to select environmental criteria,” the company said in a release.

“Under normal conditions, the fund will invest at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in securities whose issuer or guarantor, in the opinion of BlackRock, at the time of purchase, meets the fund’s environmental criteria,” the company said.

[More: How to spot greenwashing]

BlackRock is looking for issuers who have “better than average” performance in environmental practice. In evaluating their environmental practices, BlackRock said it will use data or other environmental, social, or governance risk metrics, including ratings provided by independent research vendors.

[More: ESG funds ride ‘perfect storm’ to record inflows in 2019]