Yasmin Dahya Bilger, Head of ETFs, Yusuf George, Managing Director, Active Ownership, and Eddie Hsieh, Senior Analyst, Mobility and Agriculture at Engine No. 1 discuss their revolutionary approach to active ownership and driving long-term change.
Engine No. 1 is an investment firm that aims to transform the economy by creating value through the advancement of positive social outcomes. The firm was founded on the understanding that a company’s ability to create value depends on the investments it makes in jobs, workers, communities, and the environment.
In December 2020, Engine No. 1 made headlines with its campaign against energy giant ExxonMobil, citing unsustainable operations and emissions practices. Engine No. 1 rallied together many of Exxon’s major shareholders and made the case that climate risk is financial risk. As a result, with the support of BlackRock, Vanguard, and State Street, and large pension funds including CalPERS, calSTRS, and the New York State Common Fund, Engine No. 1 was able to win three board seats at Exxon and now effectively controls Exxon Mobil’s board.
Engine No. 1’s candidates winning out over Exxon’s suggests that shareholders are re-evaluating the role of oil in an economy that’s shifting away from fossil fuels. Engine No. 1 seeks to force Exxon to accelerate plans to abandon fossil fuels, and the high profile nature of the firm’s fight against Exxon proves how important environmental and social issues have become to investors.
In June, 2021, Engine No. 1 launched VOTE, a passively-managed ETF that tracks a market-cap-weighted index of 500 of the largest stocks of US companies from any sector. The fund intends to encourage transformation in companies through the activism of shareholders by applying proxy voting guidelines and taking part in dialogue with management. This February, Engine No. 1 launched NETZ, an actively managed ETF designed to invest in companies that are driving and benefiting from the energy transition. Leveraging a data-driven approach, NETZ is constructed with long-term, high-conviction positions in the industries that most need to decarbonize, including agriculture, energy, and transportation.
Engine No. 1’s executive team brings to the table decades of experience in private equity, activism, environmentalism, and technology. The firm plans to invest in both public and private companies. Engine No. 1 is proving itself to be a powerful leader in the investment sphere, as it continues to be successful at promoting positive outcomes, socially and financially.
To learn more, register and watch Engine No. 1’s webcast: The Power of Active Ownership.
Join our live webinar to learn more about our work as active owners to hold companies’ accountable on climate change and other environmental, social, and governance issues. We’ll cover recent engagements and case studies of companies that are making progress on the path to net zero.
Before investing you should carefully consider the investment objectives, risks, charges and expenses of each of the Engine No. 1 Transform 500 ETF and Engine No. 1 Climate ETF. This and other information will be included in a prospectus for each fund, a copy of which may be obtained by referring to ETF.Engine1.com. Please read this prospectus carefully before you invest.
This webinar is for informational purposes only. The webinar is not intended to be and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, financial instruments, investments, or other services from Engine No 1. or any of its affiliated entities. Any offer to buy an interest in any investment vehicle managed by Engine No. 1 will be made pursuant to the investment vehicle’s applicable offering documents which will only be furnished to qualified investors. No information in this presentation should be construed or relied upon as investment, legal, accounting, tax or other professional advice or in connection with any offer or sale of securities.
Investing involves risk and the potential loss of principal. References to other securities is not a recommendation to buy or sell. The Engine No. 1 ETFs are advised by Fund Management at Engine No. 1 LLC and distributed by Foreside Financial Service, LLC.
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.
Engine No. 1 Transform 500 ETF (VOTE) is not actively managed, and Fund Management at Engine No. 1 LLC (the Adviser) generally does not attempt to take defensive positions under any market conditions, including declining markets. This Fund may be subject to tracking error, which is defined as the divergence of the Fund’s performance from that of the underlying index. At any given time, the Fund can have exposure to derivative instruments. A strategy or emphasis on environmental, social and governance factors (“ESG”) may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG investment focus. Please see the prospectus for a full list of Fund risks.
Engine No. 1 Transform Climate ETF (NETZ) is actively managed and may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Funds’ investments more than the market as a whole, to the extent that the Funds’ investments are concentrated in the securities of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector or asset class. Shares are subject to the risks of an investment in a portfolio of equity securities in an industry or group of industries in which each Fund invests. Investments in emerging market countries may be subject to greater risks than investments in developed countries. The Funds may purchase and write put and call options on futures contracts that are traded on an exchange as a hedge against changes in value of its portfolio securities, or in anticipation of the purchase of securities, and may enter into closing transactions with respect to such options to terminate existing positions. There is no guarantee that such closing transactions can be effected.
The description of Engine No. 1’s investment process and strategy are intended to be representative but may be changed from time to time by Engine No. 1, and Engine No. 1 may alter the information at its discretion. Engine No. 1 intends to be focused and directed in the selection of opportunities to actively engage with portfolio companies. Engine No. 1 intends to measure the investment made by companies in their employees, communities, customers and the environment, including through the use of financial, operational, and environmental, social and governance (“ESG”) metrics. 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. Additionally, in the event that Engine No. 1 were to engage in active ownership, such activities may not be successful or, even if successful, an investment may still lose value or incur additional costs when engaging in active ownership.
When Engine No. 1 engages in activism, such activities may not be successful or, even if successful, the Fund may incur additional costs or its investment may still lose value. In addition, while Engine No. 1 intends to seek opportunities to employ its active ownership beliefs, restrictions, corporate policies, regulatory and fiduciary concerns may limit the nature and extent of engagement under certain circumstances and such activities may not be successful.
For Institutional Use Only. Not For Use With The Retail Public.
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