SAN FRANCISCO--(BUSINESS WIRE)--Engine No. 1, an investment firm that drives performance by tying companies’ social and environmental actions to economic outcomes, today launched a new platform that discloses how it votes on every proposal at every company in the Engine No. 1 Transform 500 ETF (ticker: VOTE) portfolio. Engine No. 1 believes that a company’s ability to create long-term shareholder value depends on the investments it makes in its employees, customers, communities, and the environment, and it now allows all its investors to see how the ETF’s votes have been cast to strengthen those investments.
Many of the largest mutual funds and ETFs continue to vote against a majority of ESG proposals and then only disclose their votes to their investors a long time after being cast. Engine No. 1 is providing an extraordinary level of transparency for investors who are increasingly focused on how asset managers are voting on critical ESG proposals. VOTE supported more than 90% of ESG proposals submitted by shareholders, while the average fund supported less than 35%.1
“Let’s not forget that investors, through active ownership, have the power to drive long-term value,” said Jennifer Grancio, Chief Executive Officer of Engine No. 1. “We seek to give investors a voice in the boardroom to support companies in creating value over the long-term on behalf of all stakeholders.”
In addition to real-time vote disclosure, Engine No. 1 also released case studies on several of the votes it cast in 2021, including on racial equity at Tesla, lobbying oversight at FedEx, and deforestation at P&G.2 The firm announced that its voting policy for 2022 would once again aim to increase transparency, accountability, and a focus on long-term investments in companies’ stakeholders, and it specifically highlighted climate change and workforce investments as areas of special focus.
Michael O’Leary, Managing Director at Engine No. 1, said: “Each year, there are thousands of votes on who will lead our largest public companies. There are thousands of votes on what those companies will report and what they will spend. Investors deserve to know – in real time - how their votes are being cast by the mutual funds and ETFs they own. We built VOTE to harness the power of these investors and are excited about all we’ll be able to accomplish together in 2022, which we believe will be another watershed year for shareholder voting.”
The firm launched VOTE, a market cap index fund of the 500 largest US public equities, to challenge the prevailing notion that ESG funds should be defined by what companies or sectors they exclude. Instead, VOTE gives investors a voice in the boardroom through the votes it casts and the engagements it runs. With an expense ratio of 0.05%, the fund has attracted more than $275 million of capital from a broad range of institutional and retail investors since its launch last June.
As the 2022 proxy season approaches, please visit our website to learn more about Engine No. 1’s proxy voting guidelines and for additional information and case studies on proposals Engine No. 1 has voted on.
About Engine No. 1
Engine No. 1 is an investment firm that is driving long-term value by tying social and environmental commitments to economic outcomes. The firm was founded on the shared belief that a company’s ability to create long-term shareholder value depends on the investments it makes in its employees, customers, communities, and the environment. For more information, please visit: www.engine1.com.
IMPORTANT INFORMATION
- https://www.sullcrom.com/files/upload/sc-publication-2021-Proxy-Season-Review-Part-1-Rule14a-8.pdf
- Visit our website for VOTE Top 10 Holdings
Before investing you should carefully consider the investment objectives, risks, charges and expenses of the Engine No. 1 Transform 500 ETF (the Fund). This and other information will be included in a prospectus for the Fund, a copy of which may be obtained, when available, by emailing ETF@Engine1.com or by referring to this website, ETF.Engine1.com. Please read this prospectus carefully before you invest.
ESG investing includes utilizing environmental, social, and governance (ESG) criteria as a set of standards for a company’s operations that certain investors, including socially conscious investors, use to screen potential investments.
Some or all investment programs may not be suitable for certain investors. An investment in securities is speculative and involves substantial risk, including the possible loss of all or a substantial amount of the money you invest. An investment strategy utilizing the Total Value Framework discussed in this video may not be suitable for all investors, and potential investors must make an independent assessment of the appropriateness of any investment strategy in light of their own objectives and circumstances, including the possible risk and benefits of entering into an investment or purchasing securities or other financial instruments utilizing such investment strategy.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Key Risks: The Fund is not actively managed, and the investment adviser, Fund Management at Engine No. 1 LLC, generally does not attempt to take defensive positions under any market conditions, including declining markets. The Fund may be subject to tracking error, which is the divergence of the Fund’s performance from that of the Underlying Index. Large-capitalization companies may be less able than smaller capitalization companies to adapt to changing market conditions. The Fund can have exposure to derivate instruments. Please see the prospectus for a full list of fund risks. When the Fund engages in activism, such activities may not be successful, or even if successful, the Fund’s investment may lose value. Additionally, engaging in activism may cause the Fund to incur additional expenses that another similar index fund may not experience. In addition, while Engine No. 1 intends to seek opportunities to employ its active ownership beliefs, regulatory restrictions may limit the nature and extent of engagement in certain circumstances.
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