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Free Enterprise Action Fund Uses Shareholder Advocacy to Demand Debate on Global Warming

For more info contact: Steve Milloy, 301-258-2852,

Washington DC, April 19, 2007 - The Free Enterprise Action Fund (Ticker: FEAOX), a publicly traded mutual fund, announced today that it engages in shareholder advocacy to confront companies that are fueling alarmism over global warming.

By investing in the FEAOX (, individuals can participate in the global warming debate while having an opportunity to earn a financial return through ownership of a large-cap mutual fund. With a minimum investment of $2,500, individuals can join the FEAOX's effort to make CEOs re- think their positions on global warming.

In contrast to Al Gore, the United Nations and many Hollywood celebrities, the FEAOX takes the position that the scientific facts about whether humans are harming global climate are far from settled -- that is, the debate is not over despite proclamations to the contrary by global warming alarmists. In the FEAOX's view, the economic cost of higher energy prices resulting from global warming regulations could devastate economic growth and jeopardize the earnings of companies in the FEAOX's diversified portfolio without having any discernible impact on global temperatures.

Despite the likely negative impact on economic growth and negligible influence on global warming of global warming regulations, some corporations are fueling global warming hysteria by supporting activist environmental organizations and lobbying for government regulations.

The FEAOX is aggressively pursing its core pro-free enterprise mission through shareholder advocacy, the goal of which is to enable investors to determine if CEOs and corporate boards have conducted their due diligence and fully contemplated the financial consequences to shareholders of global warming regulations.

The FEAOX, for example, recently filed a global warming-related shareholder proposal with the General Electric Company (NYSE: GE) that will be presented and voted on at GE's 2007 general meeting on April 25, 2007. As an institutional shareholder, the FEAOX is demanding that GE disclose to shareholders why the company believes that economy-harming global warming regulations are good for its business.

Global warming alarmism may already be harming GE's business in the following ways:

  • There is a worldwide movement to ban the incandescent light bulb because it uses more energy than fluorescent light bulbs. GE is a leading manufacturer of incandescent light bulbs.
  • There is a movement to ban construction of coal-fired energy plants, which would jeopardize GE's investment in advanced coal technologies, like integrated gasification combined cycle (IGCC).
  • The GE plastic unit's earnings suffered from the consequences of high energy costs, according to GE's 2006 annual report. Petroleum-based raw materials have driven up plastic prices, which GE has not been able to pass on to its consumers. GE is now looking to sell its plastic business.

Despite these negative financial impacts, GE is part of the U.S. Climate Action Partnership (USCAP) -- a coalition of companies and environmental activist organizations seeking federal regulation of greenhouse gases. Company participation in advocacy coalitions greatly enhances the prospects of damaging economic global warming regulations.

To increase its impact, the FEAOX needs additional shareholders.

The FEAOX aims to increase shareholder value by advancing free-market principles in the companies it owns. FEAOX is available exclusively through BISYS Fund Services Limited Partnership (applications may be obtained at, and through E*Trade Financial and HSBC.

FEAOX Performance
  As of 3-31-07 As of 12-31-06
  One Month 0.98% 0.79%
  Three Months 0.18% 5.01%
  Year-to-date 0.18% 10.88%
  Annualized, Since Inception (3-1-05) 6.34% 7.12%
  Annualized, 1-year 8.01% 10.88%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit or call 1-800-766-3960.

Performance represents share value at NAV, which includes a gross expense ratio of 5.79% (as of 12-31-06). These total return figures reflect the contractual waiver of a portion of the Fund's advisory fees for the period ending 12-31-06. Without such a waiver of fees, the total returns would have been lower. The net expenses paid by investors (after the contractual waiver) for the period ending 12-31-06 is 1.82%. Net expenses are currently capped at 1.75%. The advisory fee waiver will remain in effect until gross expense ratio declines to below the net expense ratio.

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 or visit 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 BISYS Fund Services Limited Partnership, which is not affiliated with Action Fund Management, LLC.

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Copyright 2005 Free Enterprise Action Fund