Energy News Today

Activist investment firm Engine No. 1 to launch US$100mln exchange traded fund

Having forced its way to getting three seats on the Exxon board, the firm said the ETF will invest in 500 of the largest US companies in an effort to “instigate positive change for employees, customers, communities, and the environment”

Engine No. 1, the activist investment firm that managed to get three of its directors onto Exxon Mobil Corp’s board despite holding just 0.02% of the oil giant, is launching a US$100mln exchange traded fund (ETF).

The new ETF – The Transform 500 ETF – will have the ticker ‘VOTE”.

The fund, whose motto is “you have to engage to effect change”, will invest in 500 of the largest US companies and track the Morningstar US Large Cap Select Index, in an effort to “instigate positive change for employees, customers, communities, and the environment”.

Engine No. 1, which launched last December, is looking to tap into retail investors’ frustration that their main stock portfolios often don’t address ESG concerns, Reuters reported.

The activist investment firm describes itself as “purpose-built to create long-term value by harnessing the power of capitalism”…”we believe that over time the interests of Main Street and Wall Street align, and we can engage as active owners to create value by focusing on this alignment”.

Earlier this month the environmental activist fund saw its third nominee appointed to Exxon’s 12-member board.

While it holds only a small number of Exxon shares it has proved influential with the largest US oil company’s pension fund shareholders, including which holds a 6.6% stake.

Engine No.1 is trying to force the hydrocarbons behemoth to move away from fossil fuels.

Read More: Activist investment firm Engine No. 1 to launch US$100mln exchange traded fund

2021-06-23 06:28:00

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy
%d bloggers like this: