Procter & Gamble (Ticker: PG ) refuses to publicly acknowledge need for debate over sustainable development; Free Enterprise Action Fund (Ticker: FEAOX) to raise issue with CEO at annual shareholder meeting
For more info contact: Steve Milloy, 301-258-2852, steve@feafund.com
Washington DC, May 29, 2007 - Action Fund Management, LLC (AFM), the investment advisor to the Free Enterprise Action Fund (Ticker: FEAOX), announced today that negotiations over the FEAOX’s shareholder proposal filed with Procter & Gamble (Ticker: PG) have broken down over PG’s refusal to acknowledge that company employees should be exposed to both sides of the debate over sustainable development.
“We wanted Procter & Gamble to show its managers and employees the new documentary “Mine Your Own Business: The Dark Side of Environmentalism” (http://www.mineyourownbusiness.org) and to publicly acknowledge the need to hear from both sides of the sustainable development debate,” said Steve Milloy of AFM. “While Procter & Gamble said it was willing to distribute 100 copies of the film to its employees, the company refused to publicly acknowledge the value of debate,” added Milloy.
“Without the requested public acknowledgment, we doubt that Procter & Gamble is really sincere about showing its employees ‘Mine Your Own Business,’ or educating its employees about what many view as the dark side of environmentalism,” said AFM’s Tom Borelli. “Procter & Gamble’s stakeholder engagement on sustainability apparently is limited only to the voice of environmental activists. ‘Mine Your Own Business’ spotlights the human cost of blind adherence to sustainability – a message company management needs to hear,” added Borelli.
Negotiations between AFM and PG began after AFM filed a shareholder proposal with PG requesting a report to shareholders on the actions the company is taking to promote the general business environment.
“Procter & Gamble touts its sustainable development activities on its web site, but says little if anything about what it’s doing to promote business, capitalism and free enterprise,” said Milloy. “The company offered to meet with us about our concerns, but our position was that employee-viewing of “Mine Your Own Business” would be a more productive use of everyone’s time.
“We’re obviously disappointed, but not surprised,” said Borelli. “Companies like Procter & Gamble have been so intimidated by anti-business environmental and social activists that they’re afraid to be seen as considering alternative points of view,” Borelli said.
“I suppose we’ll have to look forward to discussing this issue with Procter & Gamble CEO Alan G. Lafley at the annual shareholder meeting this fall,” Milloy concluded.
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% |
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.
