Free Enterprise Action Fund (Ticker: FEAOX) Supports Lord Browne’s Resignation from Goldman Sachs (Ticker: GS)
For more info contact: Steve Milloy, 301-258-2852, steve@feafund.com
Washington DC, May 14, 2007 - Action Fund Management, LLC (AFM), investment advisor to the Free Enterprise Action Fund (Ticker: FEAOX), a publicly traded mutual fund, announced today that it fully supports Lord John Browne’s resignation from the board of directors of the Goldman Sachs Group (Ticker: GS).
For the past two years, the FEAOX (http://www.FEAOX.com) opposed Browne’s election to Goldman Sachs’ board of directors. “Making false statements to a court raises serious character issues that automatically disqualify Browne from running Goldman’s audit committee,” said Tom Borelli of AFM.
We previously withheld our Goldman board votes for Browne because his apparent obsession with global warming diverted management time and money from BP’s core oil business, leading to a deadly refinery explosion and a major pipeline leak in Alaska. Browne’s failed leadership cost people their lives and BP shareholders billions of dollars. We did not want to see his mistakes harming Goldman Sachs,” added Borelli.
“It’s unfortunate it took Goldman Sachs so long to understand what’s been clearly visible to us for some time. Former Goldman Sachs CEO and now Treasury Secretary Hank Paulson once inexplicably called Browne ‘one of the all time great CEOs,’” said Steve Milloy of AFM. “Time has proven us right; we only hope Browne properly conducted his responsibilities as head of Goldman’s audit committee,” added Milloy.
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 http://www.FEAOX.com/how.html), and through E*Trade Financial and HSBC.
| As of 4-30-07 | As of 3-31-06 | |
| One Month | 4.16% | 0.98% |
| Three Months | 3.06% | 0.18% |
| Year-to-date | 4.34% | 0.18% |
| Annualized, Since Inception (3-1-05) | 8.11% | 6.34% |
| Annualized, 1-year | 11.54% | 8.01% |
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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.
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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.
