Free Enterprise Action Fund (Ticker: FEAOX) Calls for Warning Labels on Mercury-Containing Compact Fluorescent Light Bulbs
For more info contact: Steve Milloy, 301-258-2852, email@example.com
Washington DC, May 21, 2007 - Action Fund Management, LLC (AFM), the investment advisor to the Free Enterprise Action Fund (Ticker: FEAOX), announced today that it petitioned the Consumer Product Safety Commission (CPSC) to issue consumer warning labels on mercury- containing compact florescent light bulbs (CFLs).
The FEAOX (http://www.FEAOX.com) is seeking warning labels for CFLs to alert consumers that accidental breakage and disposal of CFL debris poses a serious risk to human health and environment, according to federal and state regulators. Through this action, FEAOX seeks to protect its investment in companies that manufacture and sell CFLs from potential future liability from inadequate warning claims.
The CPSC has previously warned the public about health hazards associated with exposure to mercury vapor. CFLs contain a potentially hazardous amount of mercury that may be released into the environment if the bulbs break. According to a recent report in The Ellsworth American (April 12), the clean- up of debris from a single CFL could cost as much as $2,000.
"In their haste 'go green,' companies like General Electric, Wal-Mart, Home Depot, Target, Lowes and others may be exposing themselves to significant reputational and litigation risk over mercury exposure and clean-up. Wal- Mart's goal of selling CFLs in 100 million homes potentially translates to enormous litigation risk. Hopefully, warning consumers of the risk from CFLs will reduce the companies' litigation exposure," said Steve Milloy of AFM.
"GE's CEO Jeff Immelt's coziness with Al Gore has blinded him to the realities of today's business environment. It's very disturbing that GE apparently hasn't used its 'ecomagination' to realize that the potential for mercury contamination of millions of homes may result in expensive litigation," said AFM's Tom Borelli.
"After more than a decade of controversy surrounding GE's ongoing $500 million clean-up of PCB pollution in the Hudson River, you would think that GE executives would learn from its past experience with toxic waste. Without warning labels, CFLs are chum for trial lawyers," added Borelli.
- In its petition to CSPC, AFM requests a rulemaking to require that the
retail packaging of CFLs carry:
- A prominent warning label alerting consumers to the potential health hazards from mercury in the event of CFL breakage; and
- Prominent instructions for the safe and proper clean-up and disposal of CFLs, including the notification of appropriate state/local authorities in the event proper clean-up methods cannot be implemented.
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|
|Annualized, Since Inception (3-1-05)||8.11%||6.34%|
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 http://www.feaox.com 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 http://www.FEAOX.com. 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.