J.P. Morgan Asset Management aims to donate $1 million to programs designed to assist underserved minority students and single mothers attending college as part of its overall strategy of community development and easing the wealth gap.
Specifically, the commitments will be made by the Empower Community Development Fund, a donor-advised fund established by J.P. Morgan — and administered by the Chicago Community Trust, a Chicago-based community foundation — to the United Negro College Fund, which provides scholarships and financial support to minority students, and Youth Guidance, which implements school-based programs to help kids succeed inside and outside of school, JPMAM noted.
Single mothers will be helped by donations to students at Kingsborough Community College in Brooklyn, N.Y. and Lee College in Baytown, Texas, through an entity called Women on the Move Hardship Fund.
A spokesman for JPMAM said the $1 million will not be distributed evenly, but the exact split is confidential.
These measures are part of a broader program called Empowering Change that J.P. Morgan Asset Management announced in February 2021 whereby the asset manager would donate 12.5% of annual gross revenues received from the management fees on its Empower money market share class assets to the Empower Community Development Fund to support community development.
The Empower share class, which is offered across JPMAM's money market funds and exceeded $6 billion in assets under management as of July 20, was established for exclusive distribution by minority depository institutions and diverse-led community development financial institutions.
"We launched Empowering Change in 2021 to connect institutional investors and diverse financial institutions to drive systemic change within underserved communities, and we're incredibly proud to be committing $1 million as the program's first annual donation to further this mission in collaboration with these long-standing partner organizations," said Paula Stibbe, head of global liquidity, client at JPMAM, in an August news release.
"By expanding the number of MDI partners we're working with, we've also ensured that the program is reaching more underserved communities across the country,," added Ms. Stibbe.