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Appleseed Fund One-Year Return Tops Morningstar Rankings in Socially Responsible, Midcap Value Mutual Fund Categories Through June 30, 2009 CHICAGO, IL--(Marketwire - 07/21/09) - The Appleseed Fund (NASDAQ:APPLX - News), a no-load
mutual fund investing in sustainable, undervalued companies, has once again
been ranked by Morningstar as the # 1 best-returning U.S. midcap value fund
among 399 funds for the twelve months ended June 30, 2009, and the
best-returning Socially Responsible Investing (SRI) domestic equity fund
for the same period out of 222 funds. Appleseed returned 7.5% for the year
through June 30, 2009, compared with a -26.2% return for the S&P 500 Index.
Appleseed was the only midcap value fund with a positive one-year return,
beating the category average by 33.0%. Due to Appleseed's strong performance and its unique investment approach, Morningstar recently added the Appleseed Fund to the Morningstar 500, a list of the 500 best and most notable mutual funds. In the July 2009 note explaining Morningstar's decision, Morningstar analyst Russel Kinnel said, "Few socially responsible investing funds run a value strategy, so this one is a welcome addition. The basic strategy is to seek out companies with strong balance sheets and good returns on capital." Adam Strauss, one of the Fund's portfolio managers, said, "We identified a number of excellent opportunities to make investments in undervalued companies at compelling prices during the first quarter, and those investments generated an attractive return during the second quarter." Strauss continued, "We continue to focus our research efforts on uncovering well-managed companies with healthy free cash flow yields and strong, transparent balance sheets which are priced at a significant discount to our estimates of intrinsic value." In the Appleseed Fund's most recent shareholder letter, Strauss noted that from December 1, 2008 through May 31, 2009 (the Fund's fiscal six months), Appleseed's performance was primarily driven by a group of existing holdings that generated internal rates of return of 25% or more. This group included Female Health Company, Invacare, Schering Plough, Wellpoint, Avon Products, OfficeMax, Radio One, Teradata, Sealed Air, and Miller Industries. In addition, several portfolio companies generated internal rates of return for the Fund of 100% or more, including ICT Group and Powerwave Technologies. The Fund recently initiated a position in PDI Inc., a provider of outsourced sales force solutions for both large pharmaceutical companies and start-up biotech companies. Strauss explained, "In order for healthcare to become more affordable, pharmaceutical companies need to figure out how to operate more efficiently while passing the cost savings onto patients. PDI enables pharmaceutical companies to reduce their sales force cost structures. We are also excited by the company's new CEO, Nancy Lurker, who brings great energy and experience to PDI. Importantly, we purchased PDI for less than the value of the cash on the company's balance sheet." As a result of increasing investor interest, the Appleseed Fund is now available on the No Transaction Fee platforms of Charles Schwab, Fidelity, Pershing, and TD Ameritrade. Strauss concluded, "A disciplined value investing culture helps us greatly in our ongoing efforts to generate superior investment returns. Also, unlike many mutual funds, we make absolutely no effort to own a portfolio that mimics a market index, to the great benefit of Appleseed Fund investors since the Fund's inception." The Appleseed Fund is a no-load mutual fund that seeks to generate market-beating returns by investing in sustainable, undervalued companies. Since the fund's inception in 2006, returns have outpaced the S&P 500 Index by over 14% per year through June 30 2009. The Fund is managed by Pekin Singer Strauss, a Chicago-based value-oriented investment firm established in 1990. The Appleseed Fund's portfolio managers share risk and reward with investors by making significant personal investments in the Fund. Fund performance was +7.5% during the twelve months through 6/30/09, and fund performance was +0.6% per annum since inception. Three year, five year, and ten year performance is not applicable; fund inception date was 12/09/06. You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund's prospectus by calling 1-800-470-1029. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN 46208. (Member FINRA) Contact:
Source: Pekin Singer Strauss
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