Our basic screens are the following:

Investment Formula

There is no commitment to a specific formula in selecting investments, such as favoring growth or value or any technical system.

The Fund's Advisor selects securities for purchase or sale by subjective concern to the areas of interest and concentration. The Advisor assesses the perceived risk of the investment at a particular price.

Attention is given to the perceived prospects for the company selected and its industry, with concern for economic, political and social conditions at the time.

The Fund seeks to invest according to the following principles:

The Fund invests in companies that prevent or reduce air and water pollution as well as those which use fewer chemical pesticides. We seek to provide alternatives to clear cutting forests and to promote recycling.

The Fund's goal is to invest 25% or more of assets in companies involved in alternative energy. That percentage may not always be achieved. There are presently a limited number of likely cost competitive companies from which to choose.

The greater the use of alternative energy, our advisors believe, the more competitive it will be. Hydrocarbon fuels are still required. Of these fuels, we prefer natural gas, which is the cleanest hydrocarbon, and we invest in it. Natural gas is the most used fuel for fuel cells at this time.

Money awaiting investment in stocks is generally kept in US Treasury Bills. The Fund maintains modest amounts in socially concerned (federally insured) banks that are committed to serving community needs.

We Expect to Do Well
Our advisors believe that come what may to the economy, the areas in which we invest such as clean water and clean air will continue to present opportunities. The Fund officers believe that the need for cost-effective clean energy will surely stay with us and grow.

Alternative Energy is not like oil. Oil is a finite resource. Oil reserves will diminish. Our advisors believe that alternative energy can only grow, become less expensive, and more widely used as the technology improves.

The path is not continuous. There will be many bumps in the road.

Shareholder Input
We solicit and use information and opinions of our shareholders, many of whom are knowledgeable about the technologies in which we invest. We equally invite the opinions of shareholders about the propriety of the companies in which we invest.

The Fund Managers:
The managers subscribe to a number of general and financial publications as well as ones relating to the Fund's area of interest. The managers review annual reports (Form 10K) and quarterly reports (Form 10Q) of companies as filed with the SEC, as well as various analyst reports, studies of sales and purchases of shares by company officers. The managers review news daily about every company in which the Fund invests.