Free Enterprise Action Fund Requests Audit Committee Review of JP Morgan Chase Capitulation to Social Activist Demands
Action Fund Management, LLC, the investment adviser to the Free Enterprise Action Fund, called for the Audit Committee review.
Washington, D.C. (PRWEB via PR Web
Direct) April 26, 2005 -- Action Fund Management, LLC, the investment
adviser to the Free Enterprise Action Fund (http://www.FreeEnterpriseActionFund.com), called for an Audit
Committee review of J.P. Morgan Chase & Co.'s decision to adopt lending
policies advocated by anti-business activists.
The Free Enterprise Action
Fund (FEAF), a shareholder of J.P. Morgan Chase & Co. (JPM), was launched on
March 1, 2005. The FEAF is a pioneering mutual fund seeking to provide investors
with a financial return while educating and persuading companies to focus on
increasing shareholder value and profits rather than trying to appease outside
activists. The FEAF owns less than one percent of the outstanding shares of
JPM.
On March 17, 2005, Action Fund Management (AFM) requested that bank
management conduct a bona fide analysis of the costs and benefits to
shareholders, employees and customers – particularly those in the developing
world – of implementing the demands of the anti-business activist group
Rainforest Action Network concerning lending policies for energy and land-use
projects.
"JPM didn't provide or otherwise indicate to AFM that any such
analysis had been conducted," said Steve Milloy, AFM's lead portfolio manager
for the Free Enterprise Action Fund.
JPM said it "carefully considered
the viewpoints of various constituents" in devising the new policy, according to
its media release. The constituents listed in the media release, however, are
mostly anti-business activist groups, led by the Rainforest Action
Network.
We request that JPM's Audit Committee (1) undertake this
analysis – particularly with respect to the role of outside activist groups in
determining bank lending practices; (2) report the results to its shareholders;
and (3) review the new policy according to the results of the analysis as soon
as possible.
"We'd like to see the Audit Committee complete this review
before the new policy impacts JPM's shareholders, employees and customers –
especially those in the developing world who desperately need financing from the
developed world to escape poverty," 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.
The Free Enterprise Action Fund
is distributed by BISYS Fund Services, LP.
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. Common stocks, and funds investing in common stocks, generally provide
greater return potential when compared with other types of
investments.
The FEAF's top ten holdings as of April 26, 2005 are:
General Electric (3.18%); ExxonMobil Corp. (2.72%); Microsoft Corp (2.36%);
Citigroup, Inc. (2.04%); Wal-Mart Stores (1.68%); Johnson & Johnson (1.64%);
Bank of America Corp. (1.52%); Pfizer, Inc. (1.48%); IBM (1.19%); American
International Group (1.17%).
For more info contact:
Steve
Milloy
301-258-2852
e-mail protected from spam bots
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Source : http://www.prweb.com/releases/2005/4/prweb233691.htm