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Fund Complex: Oppenheimer Funds

Management Company:  OFI Advisors, LLC

Funds Affected: (1) Oppenheimer ESG Revenue ETF and (2) Oppenheimer Global ESG Revenue ETF

Sustainable Investing Strategy:  Exclusions, ESG Integration

Summary:
(1) The underlying index is constructed using a rules based methodology to select companies from within the S&P 500 Index that have strong environmental, social and governance (“ESG”) practices which are then re-weighted according to the revenue earned, subject to a maximum 5% per company weighting. The underlying index is constructed using a scoring system established by Sustainalytics, a third party research provider, to measure the strength of each pillar of environmental, social, and governance practices for each company. Based on that scoring, the top half of companies with an ESG score, excluding those with a detrimental score for controversies, are selected for inclusion in the underlying index, and those that are selected are then re-weighted according to revenue earned.

(2) The underlying index is constructed using a rules-based methodology to select companies from within the MSCI All Country World Index that have strong environmental, social and governance (“ESG”) practices, as identified by MSCI ESG Research, Inc. These companies are then re-weighted according to the revenue earned, subject to a maximum 5% per company weighting.  Companies are selected on the basis of a scoring system established by MSCI ESG Research, Inc. to measure the strength of each pillar of environmental, social, and governance practices for each company in the index.  Based on that scoring, the top half of companies with ESG score are selected for inclusion and those that are selected are then re-weighted according to revenue earned.

 

 

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Research

Research and analysis to keep sustainable investors up to-date on a broad range of topics that include trends and developments in sustainable investing and sustainable finance, regulatory updates, performance results and considerations, investing through index funds and actively managed portfolios, asset allocation updates, expenses, ESG ratings and data, company and product news, green, social and sustainable bonds, green bond funds as well as reporting and disclosure practices, to name just a few.

A continuously updated Funds Directory is also available to investors.  This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.

Getting started

Many questions have surfaced in recent years regarding sustainable and ESG investing.  Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation.  While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories:  Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration.  In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices.  That said, sustainable investing approaches will continue to evolve.

In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.

Inesting ideas

Thoughts and ideas targeting sustainable investing strategies executed through various registered and non-registered sustainable investment funds and products such as mutual funds, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), closed-end funds, Real Estate Investment Trusts (REITs) and Unit Investment Trusts (UITs). Coverage extends to investment management firms as well as fund groups. 

Independent source for sustainable investment management company research, analysis, opinions and sustainable fund disclosure assessments