Free Enterprise Action Fund Calls on Citigroup to Diversify the Bank’s ‘Environment Partners’ Program

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Mutual fund urges Citigroup to include pro-free enterprise/free market think tanks and organizations in 'stakeholder' meetings

Washington DC (PRWEB) September 22, 2005 – Action Fund Management LLC (AFM), investment advisor to the Free Enterprise Action Fund, called on Citigroup Inc. to diversify the bank’s “Environment Partners” program by including pro-free enterprise/free market think tanks and organizations.

“We believe that Citigroup’s current Environment Partners program is philosophically imbalanced and appears to be restricted to policy organizations with anti-business social and political agendas, said Steve Milloy of AFM.

“One of Citigroup’s partners is the Rainforest Action Network (RAN), an organization that has personally attacked Citigroup officers,” Milloy pointed out. In an August 2002 attack on Citigroup Chairman Sanford Weill, for example, RAN purchased a full-page ad in the International Herald Tribune featuring Weill’s photo while he was visiting his grandchildren in Europe.(1) The ad’s headline blared: “Put a Face on Global Warming and Forest Destruction.”

The Free Enterprise Action Fund (FEAF) is a mutual fund seeking to provide investors with financial returns while persuading companies to focus on increasing shareholder value and profits rather than appeasing outside activists. The FEAF owns less than one percent of the outstanding shares of Citigroup.

“The Rainforest Action Network is not concerned, in our view, with Citigroup’s share price, earnings or employees” said AFM’s Tom Borelli. “We’re amazed that a company would select RAN as a “partner” over free market organizations whose mission is to build a stronger economy that would directly benefit Citigroup and its shareholders,” Borelli added.

In addition to broadening the environmental partners program, AFM also urged Citigroup to establish an “Economics Partners” program, noting that it would be in Citigroup’s business interests to partner with organizations that have experience and expertise in addressing the nation’s most challenging issues like healthcare, social security and taxes.

“Citigroup’s shareholders would be better served if the company worked with organizations who are dedicated to improving the national economy. We would rather have Citigroup’s management working with Steve Forbes to establish a national flat tax than partnering with RAN to implement the environmental activist agenda,” said Borelli.

The public policy groups recommended by AFM include the American Enterprise Institute, Cato Institute, Competitive Enterprise Institute, Heartland Institute, Heritage Foundation, Manhattan Institute, the National Center for Policy Analysis, the National Center for Public Policy Research, the Pacific Research Institute.

“We look forward to helping Citigroup make business decisions that are based on sound science and sound economics,” said Milloy. “Oiling the squeaky wheel of environmental activism is not part of a sound business plan in our view,” said Milloy.

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 http://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:

1. Los Angeles Times, “Laws of the Jungle: 1) Don't Harm the Rain Forest 2) Don't Ignore the Rainforest Action Network 3) Don't Underestimate Randy Hayes (August 8, 2004).

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Steven Milloy
Action Fund Management, LLC
301-258-2852
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