About the Fund
What is the Free Enterprise Action Fund?The Free Enterprise Action Fund is a shareholder activist mutual fund (Ticker: FEAOX) that seeks long-term capital appreciation while aggressively challenging CEOs who use shareholder assets to advance the liberal political agenda which threatens long-term shareholder value, the free enterprise system and individual liberty.
Why does the FEAOX engage in shareholder activism?Because corporations frequently influence the resolution of major public policy issues, CEOs who promote the liberal agenda can use corporate resources to overwhelm efforts to advance the cause of individual liberty and limited government. In addition, CEOs who base business strategies on government mandates, and appeasing social and political activists put future profitability at risk.
Investing in the FEAOX provides a unique opportunity for individuals to bring their values to the boardroom while having an opportunity to make a return on their investment.
The FEAOX confronts CEOs who participate in the “liberal-industrial complex” -- the alliance of Left-wing investors and corporate managers, special interest groups and politicians -- who collaborate to advance the liberal agenda.
A recent Wall Street Journal commentary by Paul Gigot described the interplay of these forces in the Fannie Mae and Freddie Mac bailout:
The abiding lesson here is what happens when you combine private profit with government power. You create political monsters that are protected both by journalists on the left and pseudo-capitalists on Wall Street, by liberal Democrats and country-club Republicans.Other Examples:
- Global Warming: Liberal activists and politicians are working with CEOs to construct a massive regulatory scheme that will likely lead to a massive growth in government, higher energy prices for consumers and reduced corporate profitability.
- Social Security Reform: Union pension funds convinced CEOs not to support efforts to reform social security. Entitlement reform is not likely to succeed without the financial backing of business.
- Health Care: Although businesses played a key role in defeating so-called HillaryCare during the Clinton administration, liberal CEOs are supporting universal government funded health care.
What sort of advocacy efforts does the FEAOX undertake?The FEAOX pursues its advocacy objectives by:
- Engaging corporate management through correspondence, direct dialogue, attending shareholder meetings and filing shareholder proposals.
- Working with the media to inform investors and the general public about CEO actions that threaten the cause of individual liberty, limited government and future profitability.
Examples of recent actions.So far in 2008, the FEAOX challenged:
- ConocoPhillips, General Electric, Exelon, PepsiCo, Duke Energy and other corporations for working with environmental activist groups like Environmental Defense and Natural Resources Defense Council in pursuit of federal regulation of greenhouse gas emissions;
- General Electric for selling infrastructure equipment to Iran;
- Walt Disney Company for refusing to sell the DVD of the ABC TV’s miniseries “The Path to 9/11”;
- Citigroup for denying loans to developing nations because of the environmentalist-supported Equator Principles.
What does the FEAOX invest in?The FEAOX invests primarily in the stock of S&P 500 companies.
Invest in the Free Enterprise Action Fund – a shareholder activist mutual fund that aggressively challenges liberal CEOs who threaten conservative and libertarian values.
An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Free Enterprise Action Fund can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-766-3960. Please read the prospectus carefully before investing.
Mutual fund investing involves risk, including loss of principal.
The Free Enterprise Action Fund is advised by Action Fund Management, LLC., which receives a fee for its services, and is distributed by Northern Lights Distributors LLC, which is not affiliated with Action Fund Management, LLC.