SAN FRANCISCO–(BUSINESS WIRE)–Engine #1an investment firm that drives performance by linking corporate social and environmental actions to economic results, today launched a new platform that reveals how it votes on every proposal at every company in the world. Engine #1 Transform 500 ETF (ticker: VOTE) wallet. 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 empowers all of its investors to see how ETF votes were cast. to strengthen these investments.
Many of the largest mutual funds and ETFs continue to vote against the majority of ESG proposals and then only disclose their votes to their investors long after they are cast. Engine #1 offers an extraordinary level of transparency to investors who are increasingly focused on how asset managers vote on critical ESG proposals. VOTE supported over 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 create long-term value,” said Jennifer Grancio, President and CEO of Engine No. 1. investors a voice in the boardroom to support companies in creating long-term value for all stakeholders.
In addition to the real-time vote disclosure, Engine No. 1 also released case studies on many of the votes it cast in 2021, including racial equity at Tesla, lobbying oversight at FedEx, and deforestation at P&G.2 The company announced that its 2022 voting policy will again aim to increase transparency, accountability and a focus on long-term investments in business stakeholders, and it specifically highlighted climate change and investments. in the workforce as areas of special interest.
Michael O’Leary, Managing Director of Engine No. 1, said: “Each year there are thousands of votes to determine who will lead our greatest public companies. There are thousands of votes on what these 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 created VOTE to harness the power of these investors and are excited for all we can accomplish together in 2022, which we believe will be another breakthrough year for shareholder voting.
The company launched VOTE, a market capitalization index fund of the 500 largest U.S. public stocks, to challenge the prevailing notion that ESG funds should be defined by the companies or sectors they exclude. Instead, VOTE gives investors a voice in the boardroom through the votes it casts and the engagements it manages. With an expense ratio of 0.05%, the fund has attracted more than $275 million in capital from a wide 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 the proposals Engine No. 1 has voted on.
About Engine #1
Engine No. 1 is an investment company that generates long-term value by linking social and environmental commitments to economic results. The company 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.
- Visit our website for VOTE Top 10 holdings
Before investing, you should carefully consider the investment objectives, risks, charges and expenses of Engine No. 1 Transform 500 ETF (the Fund). This and other information will be included in a prospectus of the Fund, a copy of which may be obtained, when available, by emailing [email protected] or by referring to this website, ETF. Engine1.com. Please read this prospectus carefully before investing.
ESG investing includes the use of environmental, social and governance (ESG) criteria as a set of standards for a company’s operations that some investors, including socially responsible investors, use to screen potential investments.
Some or all of the investment programs may not be suitable for certain investors. Investing in securities is speculative and involves substantial risks, including the possible loss of all or a substantial part of the money you invest. An investment strategy using the Total Value Framework described in this video may not be suitable for all investors, and potential investors should make an independent assessment of the suitability of any investment strategy in light of their own objectives and circumstances, including possible risks and benefits. enter into an investment or purchase securities or other financial instruments using such an investment strategy.
Investing involves risk, including possible loss of principal. Shares of any ETF are bought and sold at market price (not net asset value), may trade at a discount or premium to net asset value, and are not individually redeemed by 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, does not generally attempt to take defensive positions in all market conditions, including falling markets. The Fund may be subject to tracking error, which is the difference between the performance of the Fund and that of the underlying index. Large capitalization companies may be less able than small capitalization companies to adapt to changing market conditions. The Fund may be exposed to derivative instruments. Please see the prospectus for a full list of fund risks. When the Fund engages in activism, these activities may fail, 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 might not incur. Additionally, while Engine No. 1 intends to seek opportunities to use its active ownership beliefs, regulatory restrictions may limit the nature and extent of engagement in certain circumstances.
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