GE Loses Bid to Block Global Warming Shareholder Resolution; Mutual Fund Calls On GE to Stop Advocating Global Warming Regulation
For more info contact: Steve Milloy, 301-258-2852, steve@feafund.com
Washington DC (PR WEB) February 1, 2006 – In the wake of General Electric’s failure to block a shareholder resolution requesting that GE justify its support for global warming regulation, Action Fund Management LLC (AFM), investment adviser to the Free Enterprise Action Fund (www.FreeEnterpriseActionFund.com), called on the GE to stop advocating global warming regulation.
On January 17, 2006, the U.S. Securities and Exchange Commission denied GE’s request to exclude a resolution filed by AFM principal Thomas Borelli requesting GE “to report to shareholders on the scientific and economic analyses relevant to GE’s climate change policy [announced in May 2005].” (1-2)
“We persuaded the SEC staff to reject all of GE’s arguments for excluding our proposal from its 2006 proxy materials, said Borelli. “Now GE shareholders will have the opportunity to request that GE justify its global warming policy in scientific and economic terms, added Borelli.
“Our opposition to global warming alarmism is based on three points,” said AFM’s Steve Milloy. (3) “First, we don’t believe the available scientific data indicate that human activity is measurably changing global climate – history shows that natural climate change can be far more significant than any slight change in climate that may have occurred over the last 200 years.”
“Second, even if human activity is altering global climate to some extent, such climate change might actually be beneficial – historically, civilization has fared better in warmer climatic conditions as opposed to cooler climatic conditions.”
“Third, even if humans are undesirably affecting global climate, the best path forward may be adaptation to that climate change rather than harming the global economy through the expenditure of hundreds of billion dollars under the questionable rationale that greenhouse gas regulation can act as some sort of global thermostat.”
“The bottom line is that we believe GE’s support of, and advocacy for, global warming regulation may harm GE shareholders in the long run,” Borelli pointed out. “GE’s policies should be based on sound science and economics not public relations campaigns or capitulation to pressure from environmental activists. GE’s future is tied to a growing global economy that depends on the availability of affordable energy. Global warming regulation, we believe, will make energy less available and more expensive, thereby harming the economy and ultimately GE’s business prospects,” explained Borelli.
“We’re not sure GE’s management performed the necessary due diligence before embracing the global warming hypothesis,” said Milloy. “We asked management for its global warming assessment but management never responded to our request. We hope shareholders will take advantage of our resolution and send GE CEO Jeff Immelt the message that company policy on global warming must be supported by factual analysis, not executive bias.” (4)
The Free Enterprise Action Fund (FEAF) is a mutual fund seeking to provide investors with financial returns while defending and advocating for the American system of free enterprise. The FEAF owns less than one percent of the outstanding shares of GE.
The Free Enterprise Action Fund seeks long-term capital appreciation through investment and advocacy that promote the American system of free enterprise. 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 www.FreeEnterpriseActionFund.com. Please read the prospectus carefully before investing.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. The Free Enterprise Action Fund is a new fund with limited investment history and there is no guarantee that it will achieve its investment objectives.
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.
References:
- Letter from U.S. Securities and Exchange Commission, Office of Chief Counsel to Ronald O. Mueller, Gibson, Dunn & Crutcher LLP, Re: General Electric Company, Incoming Letter Dated December 9, 2005 (January 17, 2006).
- Free Enterprise Action Fund, “GE Urged to Stop Opposing Shareholder Resolution on Global Warming Science, PR Web (January 12, 2005), http://www.freeenterpriseactionfund.com/release011206.htm.
- Id.
- Free Enterprise Action Fund, “Free Enterprise Action Fund Questions GE Decision To Side With Global Warming Activists,” PR Web (September 14, 2005), http://www.freeenterpriseactionfund.com/release091405.htm.
The Free Enterprise Action Fund seeks long-term capital appreciation through investment and advocacy that promote the American system of free enterprise.
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 click here. 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, LP, which is not affiliated with Action Fund Management, LLC.
