UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-06351
Green Century Funds
114 State Street
Suite 200
Boston, MA 02109
(Address of principal executive offices)
Green Century Capital Management, Inc.
114 State Street
Suite 200
Boston, MA 02109
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 482-0800
Date of fiscal year end: July 31
Date of reporting period: January 31, 2011
Item 1. Reports to Stockholders
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
SEMI-ANNUAL REPORT Green Century Balanced Fund Green Century Equity Fund January 31, 2011 | ||
An investment for your future.® | 114 State Street, Boston, Massachusetts 02109 |
For information on the Green Century Funds®, call 1-800-93-GREEN. For information on how to open an account and account services, call 1-800-221-5519 8:00 am to 6:00 pm Eastern Time, Monday through Friday. For share price and account information, call 1-800-221-5519, twenty-four hours a day.
Dear Green Century Funds Shareholder:
In the twenty years I have been with Green Century—since a partnership of the non-profit Public Interest Research Groups (PIRGs) founded the Green Century Funds in 1991—we have often written our shareholders about the benefits of environmentally responsible investing. As the tragic nuclear disaster unfolds in Japan, I am now writing why I believe environmentally responsible investing is essential.
The disaster at the Fukushima Daiichi nuclear power plant serves as a stark reminder that nuclear power poses unacceptable risks for our environment, our health, and our financial future. As I write this letter, just a week after the earthquake and tsunami hit Japan in mid-March, events in Japan continue to unfold. Experts are predicting that the disaster could take weeks, months, or even years to fully resolve. While it is still too early to know what the final impact of this tragedy might be, it is past time for society to acknowledge and address the dangers posed by nuclear energy.
The Green Century Funds have never knowingly invested in companies that produce nuclear power or manufacture equipment used to produce nuclear power. The Funds’ very first Prospectus—and every Prospectus since—stated that our environmental principles prohibit investments in nuclear power companies given Green Century’s belief that nuclear energy is unacceptably threatening. We recognized the risks that nuclear energy poses to the environment and to the people in the communities near nuclear plants (and, potentially, to shareholder value) and determined that those risks were not ones that we could countenance—or ask you to take.
For nearly twenty years Green Century has withheld its shareholders’ dollars from nuclear power companies. The PIRGs—for over thirty-five years—have staunchly opposed nuclear power plants and public policies that support the nuclear industry.
Looking ahead, Green Century will continue to direct our shareholders’ dollars toward safer and more sustainable energy solutions. We will continue to support our PIRG partners in their ongoing work to minimize the risks from existing nuclear power plants and stop construction of any new plants.
I understand that many thoughtful and caring people, as well as the Obama administration, believe that nuclear energy is a path to mitigating global warming and the other hazards of fossil fuel energy production. However, Green Century continues to believe investments in nuclear technology and production are financially and environmentally irresponsible. We believe that investors and government should instead direct capital toward safe and sustainable 21st century energy solutions.
Shareholder Advocacy Campaigns Green Century is building on the successful shareholder campaign we helped launch last year to press oil and gas companies to disclose their plans for managing water pollution,
litigation and regulatory risks that are increasingly associated with the ever-expanding natural gas hydraulic fracturing operations (also known as “fracking”). This year, Green Century re-filed a shareholder resolution asking Ultra Petroleum Corporation1 to disclose its policies and strategies for reducing environmental and financial risks from chemicals use, water impacts and a host of other issues. The resolution also requests adoption of best management practices, such as recycling and reusing waste waters, reducing the volumes and toxicity of chemicals, disclosing the chemicals used in fracturing operations and assuring the integrity of well cementing through pressure testing and other methods.
This resolution builds on the success investors had in the 2010 proxy season when similar shareholder proposals received around 30 percent of the vote. Green Century’s 2010 proposal at Williams Companies Inc.1 received the highest vote, with approval from 42% of voting shareholders, one of the highest votes on record for a first-year environmental proposal.2
In the wake of the Citizens United Supreme Court ruling which removed all but a handful of restraints on corporate political spending, Green Century believes it is more important than ever for companies to be transparent and accountable for their political contributions—shareholders need assurances that corporate funds are not being used in a way that may harm the environment or the long-term interests of the company.
Green Century is now engaging several companies on various political spending issues, including corporate support for controversial state initiatives such as the failed Proposition 23 in California, which would have repealed the state’s landmark global warming law. We are also challenging companies over their membership on the Board of Directors of the U.S. Chamber of Commerce, which is aggressively lobbying against strong policies that will aid our transition to a more sustainable economy.
Green Century’s advocacy team released a report last fall evaluating companies’ performance on addressing the problem of BPA in packaging. We surveyed 26 companies in the food, beverage and retail sectors on their performance in adapting to growing consumer concern about use of the chemical BPA in can linings. BPA, currently used in the epoxy linings of many canned foods and beverages on the market as well as in many hard plastic products and thermal receipt paper, has been the focus of growing public attention as an increasing number of scientific studies link the chemical to harmful health impacts, including heart disease, cancer, impotence and developmental problems. Green Century has encouraged companies to eliminate BPA from product packaging where feasible substitutes exist, increase investments in testing new packaging options, improve public and financial disclosures on BPA, and collaborate more effectively as an industry to find and implement reliable substitutes.
We thank you for your continued investment in the Green Century Funds as we all work toward a healthier, more sustainable future.
Kristina Curtis
President, Green Century Funds
For more regular updates on Green Century and our advocacy efforts, please consider signing up for our e-newsletter. Go to: www.greencentury.com/news/signup, email info@greencentury.com or call 1-800-93-GREEN.
2
THE GREEN CENTURY BALANCED FUND
The Green Century Balanced Fund seeks capital growth and income from a diversified portfolio of stocks and bonds that meet Green Century’s standards for corporate environmental performance. The portfolio managers of the Balanced Fund aim to invest in companies that are in the business of solving environmental problems or that are committed to reducing their environmental impact.
AVERAGE ANNUAL RETURN* Total expense ratio: 1.38% | Six Months | One Year | Five Years | Ten Years | ||||||||||||||
December 31, 2010 | Green Century Balanced Fund | 13.29% | 8.76% | 1.84% | 0.13% | |||||||||||||
Lipper Balanced Fund Index3 | 14.95% | 11.90% | 3.91% | 3.71% | ||||||||||||||
January 31, 2011 | Green Century Balanced Fund | 10.08% | 12.86% | 2.09% | –0.80% | |||||||||||||
Lipper Balanced Fund Index3 | 11.17% | 15.44% | 3.71% | 3.64% |
* The performance data quoted represents past performance and is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information as of the most recent month-end, call 1-800-93-GREEN. Performance includes the reinvestment of income dividends and capital gain distributions. Performance shown does not reflect the deduction of taxes that a shareholder might pay on Fund distributions or the redemption of Fund shares. A redemption fee of 2.00% may be imposed on redemptions or exchanges of shares you have owned for 60 days or less.
During the six month periods ended December 31, 2010 and January 31, 2011, the Balanced Fund’s performance lagged the Lipper Balanced Fund Index, though both the Fund and that Index were up significantly. For the six months ended January 31, 2011, the Fund returned 10.08%, while the Lipper Balanced Fund Index returned 11.17%.
Over the past twelve months, investors appear to have vacillated between believing that growth is strengthening with inflation around the corner and believing that the economy is about to sink into a second, “double-dip” recession. After the Federal Reserve announced a second round of Quantitative Easing that involves more stimulative monetary policy, the overall stock market staged a strong rally. The Balanced Fund’s portfolio managers believe that the strong-growth sentiment now dominates investor thinking, and cyclical sectors such as energy, industrials, and materials have led stock market returns.
As the Balanced Fund is managed to be free of fossil fuel company holdings, the Fund does not have any holdings in the energy sector, and
GREEN CENTURY BALANCED FUND
INVESTMENT BY INDUSTRY
3
thus did not participate in the strong energy sector returns of the six months ended January 31, 2011. On the other hand, stocks in the clean energy/clean technology/conservation sector that the Fund was invested in performed well. International Rectifier1 and Polypore International1 each increased by more than 40% in the six month period. In combination with more stimulative monetary policy and the stronger stock market, longer-term interest rates rose, leading to modest losses in the bonds held in the Balanced Fund.
The Fund’s equity holdings which positively contributed to its performance during the six months ended January 31, 2011 included: Apple1 and United Health Group1, while poor performers included Medtronic Inc. 1 and Barclays PLC1.
The Balanced Fund’s portfolio managers believe the Fund is positioned to benefit from the moderate economic growth expected in 2011. The Fund’s equity holdings are slightly weighted toward more cyclical sectors such as materials stocks, and the Fund’s bond holdings are weighted toward short to intermediate maturity and high quality bonds.
The Green Century Balanced Fund invests in the stocks and bonds of environmentally responsible corporations of various sizes, including small, medium, and large companies. The value of the stocks held in the Balanced Fund will fluctuate in response to factors that may affect a single issuer, industry, or sector of the economy or may affect the market as a whole. Bonds are subject to a variety of risks including interest rate, credit, and inflation risk.
THE GREEN CENTURY EQUITY FUND
The Green Century Equity Fund invests essentially all of its assets in the stocks which make up the MSCI KLD 400 Social Index (the “Index”), comprised of 400 primarily large capitalization U.S. companies selected based on a comprehensive range of social and environmental sustainability criteria. The Equity Fund seeks to provide shareholders with a long-term total return that matches that of the Index.
AVERAGE ANNUAL RETURN* Total expense ratio: 0.95% | Six Months | One Year | Five Years | Ten Years | ||||||||||||||
December 31, 2010 | Green Century Equity Fund | 20.02% | 10.89% | 1.44% | 0.24% | |||||||||||||
S&P 500® Index4 | 23.27% | 15.06% | 2.29% | 1.41% | ||||||||||||||
January 31, 2011 | Green Century Equity Fund | 14.98% | 16.88% | 1.36% | –0.02% | |||||||||||||
S&P 500® Index4 | 17.93% | 22.19% | 2.24% | 1.30% |
* The performance data quoted represents past performance and is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information as of the most recent month-end, call 1-800-93-GREEN. Performance includes the reinvestment of income dividends and capital gain distributions. Performance shown does not reflect the deduction of taxes that a shareholder might pay on Fund distributions or the redemption of Fund shares. A redemption fee of 2.00% may be imposed on redemptions or exchanges of shares you have owned for 60 days or less.
The Green Century Equity Fund underperformed the S&P 500® Index for the six-month and one year periods ended December 31, 2010 and January 31, 2011. For the six month period ended January 31, 2011, the Equity Fund’s return was 14.98%, while the S&P 500® Index was up 17.93%.
4
For the period commencing November 29, 2010 (when Northern Trust Investments, Inc. became the Equity Fund’s investment subadvisor) through January 31, 2011, the Equity Fund’s return was positive 7.58%, underperforming the S&P 500® Index which was up 9.20% for the period. The performance of the Equity Fund was hurt, relative to the S&P 500® Index, due to its underweighting in the energy and financial sectors, which posted the largest gains for the period. Companies in the industrial sector also posted positive gains for that period; the Fund’s underweight to that sector negatively impacted the performance of the Fund. The Equity Fund was overweighted in information technology stocks and health care stocks which overall had positive returns for the period.
The Equity Fund, like other mutual funds invested primarily in stocks, carries the risk of investing in the stock market. The large companies in which the Equity Fund is invested may perform worse than the stock market as a whole. The Equity Fund will not shift concentration from one industry to another or from stocks to bonds or cash, in order to defend against a falling stock market.
GREEN CENTURY EQUITY FUND
INVESTMENT BY INDUSTRY
5
The Green Century Funds’ proxy voting guidelines and a record of the Funds’ proxy votes for the year ended June 30, 2010 are available without charge, upon request, (i) at www.greencentury.com, (ii) by calling 1-800-93-GREEN, (iii) sending an e-mail to info@greencentury.com, and (iv) on the Securities and Exchange Commission’s website at www.sec.gov.
The Green Century Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of the year on Form N-Q. The Green Century Funds’ Forms N-Q are available on the EDGAR database on the SEC’s website at www.sec.gov. These Forms may also be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q may also be obtained by calling 1-800-93-GREEN, or by e-mailing a request to info@greencentury.com.
1 As of January 31, 2011, the following companies comprised the listed percentages of each of the Green Century Funds:
Portfolio Holding | GREEN CENTURY BALANCED FUND | GREEN CENTURY EQUITY FUND | ||||||
Ultra Petroleum Corporation | 0.00 | % | 0.13 | % | ||||
Williams Companies, Inc. | 0.00 | % | 0.28 | % | ||||
International Rectifier Corporation | 1.16 | % | 0.00 | % | ||||
Polypore International, Inc. | 0.44 | % | 0.00 | % | ||||
Apple, Inc. | 1.77 | % | 0.00 | % | ||||
UnitedHealth Group, Inc. | 1.70 | % | 0.00 | % | ||||
Medtronic, Inc. | 0.00 | % | 0.73 | % | ||||
Barclays PLC American Depositary Receipt | 1.05 | % | 0.00 | % |
Portfolio composition will change due to ongoing management of the Funds. Please refer to the Green Century Funds website for current information regarding the Funds’ portfolio holdings. These holdings are subject to risk as described in the Funds’ Summary Prospectus and Prospectus. References to specific investments should not be construed as a recommendation of the securities by the Funds, their administrator, or their distributor.
2 Calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support and against the proposal. Abstentions and broker non-votes were not included in the calculation.
3 Lipper Analytical Services, Inc. (“Lipper”) is a respected mutual fund reporting service. The Lipper Balanced Fund Index includes the 30 largest funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds. Typically the stock/bond ratio ranges around 60%/40%.
4 The S&P 500® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The S&P 500® Index is heavily weighted toward stocks with large market capitalization and represents approximately two-thirds of the total market value of all domestic stocks. It is not possible to invest directly in the S&P 500® Index.
This material must be preceded or accompanied by a current Summary Prospectus or Prospectus.
Distributor: UMB Distribution Services, LLC, 3/11
The Green Century Equity Fund (the “Fund”) is not sponsored, endorsed, or promoted by MSCI, its affiliates, information providers or any other third party involved in, or related to, compiling, computing or creating the MSCI indices (the “MSCI Parties”), and the MSCI Parties bear no liability with respect to the Fund or any index on which the Fund is based. The MSCI Parties are not sponsors of the Fund and are not affiliated with the Fund in any way. The Statement of Additional Information contains a more detailed description of the limited relationship the MSCI Parties have with Green Century Capital Management and the Fund.
6
GREEN CENTURY FUNDS EXPENSE EXAMPLE
For the six months ended January 31, 2011 (unaudited)
As a shareholder of the Green Century Funds (the “Funds”), you incur two types of costs: (1) transaction costs, including redemption fees on certain redemptions; and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2010 to January 31, 2011 (the “period”).
Actual Expenses The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the actual return of either of the Funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees on shares held for 60 days or less. Therefore, the second line of the table is useful in comparing the ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.
BEGINNING ACCOUNT VALUE AUGUST 1, 2010 | ENDING ACCOUNT VALUE JANUARY 31, 2011 | EXPENSES PAID DURING THE PERIOD1 | ||||||||||
Balanced Fund | ||||||||||||
Actual Expenses | $ | 1,000.00 | $ | 1,100.80 | $ | 7.31 | ||||||
Hypothetical Example, assuming a 5% return before expenses | 1,000.00 | 1,018.04 | 7.02 | |||||||||
Equity Fund | ||||||||||||
Actual Expenses | 1,000.00 | 1,149.80 | 5.15 | |||||||||
Hypothetical Example, assuming a 5% return before expenses | 1,000.00 | 1,020.21 | 4.84 |
1 Expenses are equal to the Funds’ annualized expense ratios (1.38% for the Balanced Fund and 0.95% for the Equity Fund), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
7
GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) |
COMMON STOCKS — 65.7% | ||||||||
SHARES | VALUE | |||||||
Insurance — 6.1% | ||||||||
Aflac, Inc. | 7,037 | $ | 405,191 | |||||
Chubb Corporation | 17,212 | 997,091 | ||||||
HCC Insurance Holdings, Inc. | 26,436 | 800,482 | ||||||
Horace Mann Educators Corporation | 25,562 | 441,711 | ||||||
Progressive Corporation (The) | 45,328 | 897,948 | ||||||
3,542,423 | ||||||||
Renewable Energy & Energy Efficiency — 5.4% |
| |||||||
American Superconductor Corporation (a) | 8,282 | 225,850 | ||||||
Applied Materials, Inc. | 14,106 | 221,323 | ||||||
Cree, Inc. (a) | 4,421 | 223,216 | ||||||
First Solar, Inc. (a) | 2,187 | 338,066 | ||||||
International Rectifier Corporation (a) | 21,000 | 672,630 | ||||||
Itron, Inc. (a) | 4,026 | 233,589 | ||||||
Johnson Controls, Inc. | 15,916 | 611,015 | ||||||
OM Group, Inc. (a) | 8,600 | 311,148 | ||||||
Suntech Power Holdings Company Ltd. American Depository Receipt (a)(b) | 32,793 | 278,413 | ||||||
3,115,250 | ||||||||
Software & Services — 5.3% | ||||||||
International Business Machines Corporation | 7,059 | 1,143,558 | ||||||
MasterCard, Inc., Class A | 926 | 219,008 | ||||||
Microsoft Corporation | 13,040 | 361,534 | ||||||
Oracle Corporation | 34,113 | 1,092,639 | ||||||
Telvent GIT S.A. (a)(b) | 7,917 | 227,535 | ||||||
3,044,274 | ||||||||
Technology Hardware & Equipment — 4.3% |
| |||||||
Apple, Inc. (a) | 3,038 | 1,030,854 | ||||||
EMC Corporation (a) | 23,608 | 587,603 | ||||||
Hewlett-Packard Company | 14,977 | 684,299 | ||||||
QUALCOMM, Inc. | 3,817 | 206,615 | ||||||
2,509,371 | ||||||||
Healthcare Equipment & Services — 4.2% |
| |||||||
Becton, Dickinson and Company | 4,718 | 391,358 | ||||||
Fresenius Medical Care AG & Company KGaA American Depositary Receipt (b) | 9,866 | 577,753 |
SHARES | VALUE | |||||||
Healthcare Equipment & Services — (continued) |
| |||||||
Hologic, Inc. (a) | 13,544 | $ | 269,796 | |||||
St. Jude Medical, Inc. (a) | 5,323 | 215,582 | ||||||
UnitedHealth Group, Inc. | 24,099 | 989,264 | ||||||
2,443,753 | ||||||||
Pharmaceuticals & Biotechnology — 4.0% |
| |||||||
Amgen, Inc. (a) | 6,317 | 347,940 | ||||||
Endo Pharmaceuticals Holdings, Inc. (a) | 27,438 | 911,490 | ||||||
Novo Nordisk A/S American Depositary Receipt (b) | 2,199 | 248,773 | ||||||
Waters Corporation (a) | 10,719 | 818,825 | ||||||
2,327,028 | ||||||||
Capital Goods — 4.0% | ||||||||
ABB Ltd. American Depositary Receipt (a)(b) | 14,341 | 339,451 | ||||||
Donaldson Company, Inc. | 8,268 | 484,505 | ||||||
Emerson Electric Company | 4,450 | 262,016 | ||||||
Lincoln Electric Holdings, Inc. | 4,604 | 311,783 | ||||||
Polypore International, Inc. (a) | 5,297 | 255,051 | ||||||
Quanta Services, Inc. (a) | 9,600 | 227,808 | ||||||
Thomas & Betts Corporation (a) | 8,574 | 440,618 | ||||||
2,321,232 | ||||||||
Transportation — 3.7% | ||||||||
Canadian Pacific Railway Ltd. | 13,709 | 920,285 | ||||||
Expeditors International of Washington, Inc. | 4,971 | 251,881 | ||||||
United Parcel Service, Inc., Class B | 13,799 | 988,284 | ||||||
2,160,450 | ||||||||
Semiconductors — 3.2% | ||||||||
Altera Corporation | 9,540 | 358,418 | ||||||
Analog Devices, Inc. | 14,277 | 554,376 | ||||||
Intel Corporation | 45,129 | 968,468 | ||||||
1,881,262 | ||||||||
Banks — 3.2% | ||||||||
Barclays PLC American Depositary Receipt (b) | 32,566 | 612,241 | ||||||
Fifth Third Bancorp | 24,338 | 361,906 | ||||||
Wells Fargo & Company | 27,948 | 906,074 | ||||||
1,880,221 | ||||||||
8
GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
SHARES | VALUE | |||||||
Materials — 3.2% | ||||||||
Air Products & Chemicals, Inc. | 11,253 | $ | 981,824 | |||||
Minerals Technologies, Inc. | 10,056 | 633,729 | ||||||
STR Holdings, Inc. (a) | 12,957 | 236,854 | ||||||
1,852,407 | ||||||||
Telecommunication Services — 3.1% |
| |||||||
AT&T, Inc. | 35,750 | 983,840 | ||||||
BT Group PLC American Depositary Receipt (b) | 8,664 | 245,191 | ||||||
Telefonica S.A. American Depositary Receipt (b) | 12,240 | 307,591 | ||||||
Vodafone Group PLC American Depositary Receipt (b) | 8,710 | 247,016 | ||||||
1,783,638 | ||||||||
Diversified Financials — 3.1% | ||||||||
American Express Company | 17,035 | 738,978 | ||||||
Bank of America Corporation | 1,558 | 21,391 | ||||||
JPMorgan Chase & Company | 22,755 | 1,022,610 | ||||||
1,782,979 | ||||||||
Consumer Durables & Apparel — 2.4% |
| |||||||
Deckers Outdoor Corporation (a) | 2,356 | 172,907 | ||||||
Jarden Corporation | 27,895 | 945,640 | ||||||
Timberland Company (The), Class A (a) | 11,000 | 294,030 | ||||||
1,412,577 | ||||||||
Consumer Services — 2.1% | ||||||||
Starbucks Corporation | 31,175 | 982,948 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 4,157 | 245,138 | ||||||
1,228,086 | ||||||||
Food & Beverage — 2.0% | ||||||||
General Mills, Inc. | 5,252 | 182,665 | ||||||
J. M. Smucker Company (The) | 15,672 | 974,171 | ||||||
1,156,836 | ||||||||
Healthy Living — 2.0% | ||||||||
United Natural Foods, Inc. (a) | 5,233 | 193,621 | ||||||
Whole Foods Market, Inc. | 18,201 | 941,174 | ||||||
1,134,795 | ||||||||
SHARES | VALUE | |||||||
Food & Staples Retailing — 1.8% |
| |||||||
Costco Wholesale Corporation | 14,603 | $ | 1,049,079 | |||||
Sysco Corporation | 447 | 13,026 | ||||||
1,062,105 | ||||||||
Retailing — 1.0% |
| |||||||
Advance Auto Parts, Inc. | 4,049 | 258,893 | ||||||
Nordstrom, Inc. | 7,237 | 298,020 | ||||||
556,913 | ||||||||
Commercial & Professional Services — 0.5% |
| |||||||
Interface, Inc., Class A | 19,220 | 312,325 | ||||||
Household & Personal Products — 0.5% |
| |||||||
Church & Dwight Company, Inc. | 4,331 | 298,016 | ||||||
Media — 0.3% |
| |||||||
John Wiley & Sons, Inc., Class A | 4,149 | 190,647 | ||||||
Automobiles & Components — 0.3% |
| |||||||
Tesla Motors, Inc. (a) | 7,476 | 180,172 | ||||||
Total Common Stocks | 38,176,760 | |||||||
PRINCIPAL AMOUNT | ||||||||
CORPORATE BONDS & NOTES — 18.5% |
| |||||||
Diversified Financials — 4.5% |
| |||||||
Bank of New York Mellon Corporation (The) | ||||||||
4.30%, due 5/15/14 | $ | 500,000 | 540,037 | |||||
Goldman Sachs Group, Inc. (The) | ||||||||
6.60%, due 1/15/12 | 500,000 | 528,070 | ||||||
JPMorgan Chase & Company | ||||||||
4.50%, due 1/15/12 | 500,000 | 518,549 | ||||||
JPMorgan Chase & Company | ||||||||
5.125%, due 9/15/14 | 500,000 | 537,959 | ||||||
UBS A.G. | ||||||||
3.00%, due 8/4/15 (b)(c) | 500,000 | 493,574 | ||||||
2,618,189 | ||||||||
Renewable Energy & Energy Efficiency — 3.6% |
| |||||||
International Bank for Reconstruction & Development | ||||||||
2.00%, due 10/20/16 (b) | 500,000 | 497,561 | ||||||
International Finance Corporation | ||||||||
2.25%, due 4/28/14 | 1,000,000 | 1,028,605 |
9
GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
PRINCIPAL AMOUNT | VALUE | |||||||
Renewable Energy & Energy Efficiency — (continued) |
| |||||||
Johnson Controls, Inc. | ||||||||
5.50%, due 1/15/16 | $ | 500,000 | $ | 551,889 | ||||
2,078,055 | ||||||||
Pharmaceuticals & Biotechnology — 2.9% |
| |||||||
Abbott Laboratories | ||||||||
5.60%, due 11/30/17 | 500,000 | 572,672 | ||||||
Amgen, Inc. | ||||||||
4.85%, due 11/18/14 | 500,000 | 552,603 | ||||||
Wyeth | ||||||||
5.50%, due 3/15/13 (c) | 500,000 | 545,748 | ||||||
1,671,023 | ||||||||
Telecommunication Services — 2.7% |
| |||||||
AT&T, Inc. | ||||||||
2.50%, due 8/15/15 | 500,000 | 499,572 | ||||||
BellSouth Corporation | ||||||||
4.75%, due 11/15/12 | 500,000 | 532,638 | ||||||
Verizon Communications, Inc. | ||||||||
5.25%, due 4/15/13 | 500,000 | 543,885 | ||||||
1,576,095 | ||||||||
Software & Services — 2.6% |
| |||||||
International Business Machines Corporation | ||||||||
2.00%, due 1/5/16 | 500,000 | 489,501 | ||||||
Microsoft Corporation | ||||||||
1.625%, due 9/25/15 | 500,000 | 488,778 | ||||||
Oracle Corporation | ||||||||
3.75%, due 7/8/14 | 500,000 | 533,272 | ||||||
1,511,551 | ||||||||
Technology Hardware & Equipment — 1.8% |
| |||||||
Dell, Inc. | ||||||||
2.30%, due 9/10/15 | 500,000 | 490,222 | ||||||
Hewlett-Packard Company | ||||||||
4.75%, due 6/2/14 | 500,000 | 548,899 | ||||||
1,039,121 | ||||||||
Healthcare Equipment & Services — 0.4% |
| |||||||
UnitedHealth Group, Inc. | ||||||||
4.875%, due 4/1/13 | 250,000 | 268,177 | ||||||
Total Corporate Bonds & Notes | 10,762,211 | |||||||
PRINCIPAL AMOUNT | VALUE | |||||||
U.S. Government Agencies — 10.9% |
| |||||||
Fannie Mae Pool | ||||||||
5.50%, due 3/1/12 | $ | 36,704 | $ | 37,353 | ||||
Federal Agricultural Mortgage Corporation | ||||||||
2.57%, due 12/30/15 | 500,000 | 500,378 | ||||||
Federal Farm Credit Bank | ||||||||
5.125%, due 8/25/16 | 500,000 | 567,716 | ||||||
Federal Home Loan Bank | ||||||||
3.125%, due 12/13/13 | 550,000 | 580,728 | ||||||
Federal Home Loan Bank | ||||||||
5.625%, due 6/13/16 | 1,000,000 | 1,091,545 | ||||||
Federal Home Loan Bank | ||||||||
3.875%, due 12/14/18 | 550,000 | 568,757 | ||||||
Federal Home Loan Banks | ||||||||
2.00%, due 11/26/18 (c) | 500,000 | 495,732 | ||||||
Federal Home Loan Banks | ||||||||
3.40%, due 8/5/20 | 500,000 | 478,794 | ||||||
Federal Home Loan Mortgage Corporation | ||||||||
2.25%, due 12/15/17 (c) | 500,000 | 498,386 | ||||||
Federal Home Loan Mortgage Corporation | ||||||||
3.75%, due 3/27/19 | 500,000 | 517,578 | ||||||
Federal National Mortgage Association | ||||||||
3.00%, due 4/15/15 | 500,000 | 503,133 | ||||||
Federal National Mortgage Association | ||||||||
1.50%, due 12/21/15 (c) | 500,000 | 497,197 | ||||||
Total U.S. Government Agencies | 6,337,297 | |||||||
CERTIFICATES OF DEPOSIT — 0.3% |
| |||||||
Self Help Credit Union Environmental Certificate of Deposit | ||||||||
2.00%, due 8/8/12 | 95,000 | 95,000 | ||||||
Shorebank Pacific Time Deposit Receipt | ||||||||
3.75%, due 8/8/11 | 95,000 | 95,000 | ||||||
Total Certificates Of Deposit | 190,000 | |||||||
10
GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | concluded |
SHORT-TERM OBLIGATION — 4.4% | VALUE | |||
Repurchase Agreement— | $ | 2,554,684 | ||
TOTAL INVESTMENTS (d) — 99.8% | ||||
(Cost $51,158,486) | 58,020,952 | |||
Other Assets Less Liabilities — 0.2% | 97,526 | |||
NET ASSETS — 100.0% | $ | 58,118,478 | ||
(a) | Non-income producing security. |
(b) | Securities whose values are determined or significantly influenced by trading in markets other than the United States or Canada. |
(c) | Step rate bond. Rate shown is currently in effect at January 31, 2011. |
(d) | The cost of investments for federal income tax purposes is $51,161,740 resulting in gross unrealized appreciation and depreciation of $7,775,739 and $916,527 respectively, or net unrealized appreciation of $6,859,212. |
See Notes to Financial Statements
11
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) |
COMMON STOCKS — 99.5% |
| |||||||
SHARES | VALUE | |||||||
Software & Services — 13.2% |
| |||||||
Adobe Systems, Inc. (a) | 4,905 | $ | 162,110 | |||||
Advent Software, Inc. (a) | 340 | 10,050 | ||||||
Autodesk, Inc. (a) | 2,158 | 87,787 | ||||||
Automatic Data Processing, Inc. | 4,687 | 224,507 | ||||||
BMC Software, Inc. (a) | 1,700 | 81,090 | ||||||
Compuware Corporation (a) | 2,208 | 23,670 | ||||||
Convergys Corporation (a) | 1,100 | 15,664 | ||||||
eBay, Inc. (a) | 11,108 | 337,239 | ||||||
Electronic Arts, Inc. (a) | 3,008 | 46,895 | ||||||
Factset Research Systems, Inc. | 410 | 41,328 | ||||||
Google, Inc., Class A (a) | 2,329 | 1,398,239 | ||||||
International Business Machines Corporation | 11,915 | 1,930,230 | ||||||
Microsoft Corporation | 73,593 | 2,040,366 | ||||||
Monster Worldwide, Inc. (a) | 1,150 | 19,148 | ||||||
Novell, Inc. (a) | 3,000 | 18,060 | ||||||
Paychex, Inc. | 3,071 | 98,272 | ||||||
Red Hat, Inc. (a) | 1,739 | 71,856 | ||||||
Salesforce.com, Inc. (a) | 1,106 | 142,829 | ||||||
Symantec Corporation (a) | 7,489 | 131,881 | ||||||
Yahoo!, Inc. (a) | 12,020 | 193,762 | ||||||
7,074,983 | ||||||||
Pharmaceuticals & Biotechnology — 10.4% |
| |||||||
Abbott Laboratories | 14,573 | 658,117 | ||||||
Affymetrix, Inc. (a) | 500 | 2,425 | ||||||
Allergan, Inc. | 2,939 | 207,523 | ||||||
Amgen, Inc. (a) | 9,089 | 500,622 | ||||||
Amylin Pharmaceuticals, Inc. (a) | 1,421 | 22,992 | ||||||
Biogen Idec, Inc. (a) | 2,261 | 148,028 | ||||||
Bristol-Myers Squibb Company | 16,227 | 408,596 | ||||||
Cubist Pharmaceuticals, Inc. (a) | 653 | 14,327 | ||||||
Dionex Corporation (a) | 150 | 17,697 | ||||||
Endo Pharmaceuticals Holdings, Inc. (a) | 1,101 | 36,575 | ||||||
Genzyme Corporation (a) | 2,386 | 175,013 | ||||||
Gilead Sciences, Inc. (a) | 7,883 | 302,550 | ||||||
Hospira, Inc. (a) | 1,597 | 88,202 | ||||||
Illumina, Inc. (a) | 1,206 | 83,624 | ||||||
Johnson & Johnson | 26,010 | 1,554,618 | ||||||
Life Technologies Corporation (a) | 1,700 | 92,293 | ||||||
Merck & Company, Inc. | 29,032 | 962,991 | ||||||
Techne Corporation | 350 | 24,132 |
SHARES | VALUE | |||||||
Pharmaceuticals & Biotechnology — (continued) |
| |||||||
Thermo Fisher Scientific, Inc. (a) | 3,846 | $ | 220,260 | |||||
Waters Corporation (a) | 895 | 68,369 | ||||||
5,588,954 | ||||||||
Technology Hardware & Equipment — 8.5% |
| |||||||
Arrow Electronics, Inc. (a) | 1,050 | 39,690 | ||||||
Cisco Systems, Inc. (a) | 53,973 | 1,141,529 | ||||||
Corning, Inc. | 14,815 | 329,041 | ||||||
Dell, Inc. (a) | 16,582 | 218,219 | ||||||
Echelon Corporation (a) | 282 | 2,566 | ||||||
EMC Corporation (a) | 19,382 | 482,418 | ||||||
Hewlett-Packard Company | 22,067 | 1,008,242 | ||||||
Imation Corporation (a) | 300 | 3,030 | ||||||
Lexmark International, Inc. (a) | 700 | 24,388 | ||||||
Molex, Inc. | 493 | 12,892 | ||||||
NetApp, Inc. (a) | 3,352 | 183,455 | ||||||
Plantronics, Inc. | 400 | 14,160 | ||||||
Polycom, Inc. (a) | 800 | 35,080 | ||||||
QUALCOMM, Inc. | 15,162 | 820,719 | ||||||
Seagate Technology plc (a) | 4,447 | 62,258 | ||||||
Tellabs, Inc. | 3,763 | 19,944 | ||||||
Xerox Corporation | 13,068 | 138,782 | ||||||
4,536,413 | ||||||||
Banks — 6.3% |
| |||||||
Bank of Hawaii Corporation | 431 | 20,201 | ||||||
BB&T Corporation | 6,620 | 182,977 | ||||||
Cathay General Bancorp | 595 | 10,299 | ||||||
Comerica, Inc. | 1,661 | 63,450 | ||||||
Fifth Third Bancorp | 8,669 | 128,908 | ||||||
First Horizon National Corporation (a) | 2,443 | 27,679 | ||||||
Heartland Financial USA, Inc. | 100 | 1,691 | ||||||
Hudson City Bancorp, Inc. | 4,525 | 49,685 | ||||||
Keycorp | 8,118 | 72,250 | ||||||
M&T Bank Corporation | 808 | 69,868 | ||||||
New York Community Bancorp, Inc. | 3,850 | 70,532 | ||||||
NewAlliance Bancshares, Inc. | 1,000 | 14,950 | ||||||
People’s United Financial, Inc. | 3,441 | 44,423 | ||||||
PNC Financial Services Group, Inc. | 4,996 | 299,760 | ||||||
Popular, Inc. (a) | 9,285 | 29,805 | ||||||
Regions Financial Corporation | 12,163 | 86,357 | ||||||
SunTrust Banks, Inc. | 4,655 | 141,652 | ||||||
Synovus Financial Corporation | 7,482 | 19,753 |
12
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
SHARES | VALUE | |||||||
Banks — (continued) |
| |||||||
U.S. Bancorp | 18,079 | $ | 488,133 | |||||
Umpqua Holdings Corporation | 988 | 10,838 | ||||||
Wells Fargo & Company | 46,935 | 1,521,633 | ||||||
3,354,844 | ||||||||
Capital Goods — 5.7% |
| |||||||
3M Company | 6,401 | 562,776 | ||||||
A.O. Smith Corporation | 378 | 16,182 | ||||||
AMETEK, Inc. | 1,557 | 63,494 | ||||||
Apogee Enterprises, Inc. | 300 | 3,837 | ||||||
Brady Corporation, Class A | 450 | 14,738 | ||||||
Broadwind Energy, Inc. (a) | 488 | 898 | ||||||
CLARCOR, Inc. | 450 | 19,431 | ||||||
Cooper Industries Ltd., Class A | 1,552 | 95,076 | ||||||
Cummins, Inc. | 1,788 | 189,313 | ||||||
Deere & Company | 3,997 | 363,327 | ||||||
Donaldson Company, Inc. | 712 | 41,723 | ||||||
EMCOR Group, Inc. (a) | 600 | 18,168 | ||||||
Emerson Electric Company | 7,109 | 418,578 | ||||||
Fastenal Company | 1,247 | 72,401 | ||||||
Gardner Denver, Inc. | 464 | 33,473 | ||||||
General Cable Corporation (a) | 450 | 16,654 | ||||||
Graco, Inc. | 554 | 23,534 | ||||||
Granite Construction, Inc. | 429 | 11,085 | ||||||
Hubbell, Inc., Class B | 500 | 30,620 | ||||||
Illinois Tool Works, Inc. | 4,040 | 216,100 | ||||||
Ingersoll-Rand PLC | 3,049 | 143,913 | ||||||
Kadant, Inc. (a) | 100 | 2,116 | ||||||
Lincoln Electric Holdings, Inc. | 421 | 28,510 | ||||||
Lindsay Corporation | 110 | 7,159 | ||||||
Masco Corporation | 3,300 | 43,956 | ||||||
Nordson Corporation | 325 | 30,001 | ||||||
Owens Corning (a) | 1,094 | 36,616 | ||||||
Pall Corporation | 1,050 | 58,180 | ||||||
Pentair, Inc. | 936 | 33,855 | ||||||
Quanta Services, Inc. (a) | 2,092 | 49,643 | ||||||
Rockwell Automation, Inc. | 1,369 | 110,903 | ||||||
Simpson Manufacturing Company, Inc. | 300 | 8,925 | ||||||
Snap-On, Inc. | 595 | 33,695 | ||||||
Spirit Aerosystems Holdings, Inc. (a) | 1,026 | 24,234 | ||||||
SPX Corporation | 490 | 38,406 | ||||||
Tennant Company | 150 | 6,051 | ||||||
Thomas & Betts Corporation (a) | 521 | 26,774 |
SHARES | VALUE | |||||||
Capital Goods — (continued) |
| |||||||
Timken Company | 789 | $ | 37,099 | |||||
W.W. Grainger, Inc. | 585 | 76,910 | ||||||
WABCO Holdings, Inc. (a) | 607 | 35,449 | ||||||
Westinghouse Air Brake Technologies Corporation | 429 | 23,252 | ||||||
3,067,055 | ||||||||
Energy — 5.6% |
| |||||||
Apache Corporation | 3,599 | 429,577 | ||||||
Cameron International Corporation (a) | 2,295 | 122,324 | ||||||
Chesapeake Energy Corporation | 6,204 | 183,204 | ||||||
Clean Energy Fuels Corporation (a) | 566 | 6,718 | ||||||
Devon Energy Corporation | 3,894 | 345,359 | ||||||
Diamond Offshore Drilling, Inc. | 655 | 46,970 | ||||||
EOG Resources, Inc. | 2,371 | 252,251 | ||||||
EQT Corporation | 1,374 | 66,213 | ||||||
Hess Corporation | 2,855 | 240,163 | ||||||
National Oilwell Varco, Inc. | 3,983 | 294,344 | ||||||
Newfield Exploration Company (a) | 1,301 | 95,194 | ||||||
Noble Corporation | 2,399 | 91,762 | ||||||
Noble Energy, Inc. | 1,662 | 151,408 | ||||||
Pioneer Natural Resources Company | 1,100 | 104,676 | ||||||
Quicksilver Resources, Inc. (a) | 1,087 | 16,316 | ||||||
Range Resources Corporation | 1,512 | 75,403 | ||||||
Southwestern Energy Company (a) | 3,210 | 126,795 | ||||||
Spectra Energy Corporation | 6,032 | 158,219 | ||||||
Ultra Petroleum Corporation (a) | 1,481 | 70,688 | ||||||
Williams Companies, Inc. | 5,593 | 150,955 | ||||||
3,028,539 | ||||||||
Retailing — 5.1% |
| |||||||
AutoZone, Inc. (a) | 267 | 67,692 | ||||||
Bed Bath & Beyond, Inc. (a) | 2,548 | 122,304 | ||||||
Best Buy Company, Inc. | 3,293 | 111,962 | ||||||
Carmax, Inc. (a) | 2,119 | 69,185 | ||||||
Charming Shoppes, Inc. (a) | 800 | 2,488 | ||||||
Foot Locker, Inc. | 1,568 | 28,004 | ||||||
Gap, Inc. (The) | 4,239 | 81,686 | ||||||
Genuine Parts Company | 1,491 | 77,159 | ||||||
Home Depot, Inc. | 15,860 | 583,172 | ||||||
J.C. Penney Company, Inc. | 2,012 | 64,525 | ||||||
Kohl’s Corporation (a) | 2,747 | 139,493 | ||||||
Limited Brands, Inc. | 2,596 | 75,907 |
13
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
SHARES | VALUE | |||||||
Retailing — (continued) |
| |||||||
Lowe’s Companies, Inc. | 13,223 | $ | 327,930 | |||||
Men’s Wearhouse, Inc. (The) | 500 | 13,105 | ||||||
Netflix, Inc. (a) | 420 | 89,914 | ||||||
Nordstrom, Inc. | 1,670 | 68,771 | ||||||
Office Depot, Inc. (a) | 2,500 | 13,125 | ||||||
Pep Boys — Manny, Moe & Jack (The) | 699 | 9,744 | ||||||
RadioShack Corporation | 1,200 | 18,180 | ||||||
Staples, Inc. | 6,820 | 152,154 | ||||||
Target Corporation | 6,462 | 354,311 | ||||||
Tiffany & Company | 1,197 | 69,582 | ||||||
TJX Companies, Inc. | 3,881 | 183,921 | ||||||
2,724,314 | ||||||||
Household & Personal Products — 5.0% |
| |||||||
Alberto-Culver Company | 860 | 32,035 | ||||||
Avon Products, Inc. | 3,991 | 112,985 | ||||||
Church & Dwight Company, Inc. | 711 | 48,924 | ||||||
Clorox Company | 1,290 | 81,128 | ||||||
Colgate-Palmolive Company | 4,606 | 353,603 | ||||||
Estee Lauder Companies, Inc. (The), Class A | 1,099 | 88,469 | ||||||
Kimberly-Clark Corporation | 3,879 | 251,088 | ||||||
Nu Skin Enterprises, Inc., Class A | 500 | 15,040 | ||||||
Procter & Gamble Company | 26,798 | 1,691,758 | ||||||
WD-40 Company | 103 | 4,055 | ||||||
2,679,085 | ||||||||
Healthcare Equipment & Services — 4.8% |
| |||||||
Baxter International, Inc. | 5,477 | 265,580 | ||||||
Beckman Coulter, Inc. | 636 | 45,798 | ||||||
Becton, Dickinson and Company | 2,165 | 179,587 | ||||||
Cerner Corporation (a) | 664 | 65,636 | ||||||
CIGNA Corporation | 2,671 | 112,235 | ||||||
Cross Country Healthcare, Inc. (a) | 200 | 1,440 | ||||||
Edwards Lifesciences Corporation (a) | 1,052 | 88,673 | ||||||
Gen-Probe, Inc. (a) | 491 | 30,879 | ||||||
Health Management Associates, Inc., Class A (a) | 2,200 | 20,020 | ||||||
Henry Schein, Inc. (a) | 863 | 56,665 | ||||||
Hill-Rom Holdings, Inc. | 600 | 24,282 | ||||||
Humana, Inc. (a) | 1,584 | 91,824 | ||||||
Idexx Laboratories, Inc. (a) | 538 | 38,575 | ||||||
Intuitive Surgical, Inc. (a) | 368 | 118,831 |
SHARES | VALUE | |||||||
Healthcare Equipment & Services — (continued) |
| |||||||
Invacare Corporation | 300 | $ | 8,292 | |||||
McKesson Corporation | 2,451 | 184,242 | ||||||
Medtronic, Inc. | 10,271 | 393,585 | ||||||
Molina Healthcare, Inc. (a) | 96 | 2,943 | ||||||
Patterson Companies, Inc. | 889 | 29,390 | ||||||
Quest Diagnostics, Inc. | 1,453 | 82,748 | ||||||
St. Jude Medical, Inc. (a) | 3,236 | 131,058 | ||||||
Stryker Corporation | 2,772 | 159,556 | ||||||
Varian Medical Systems, Inc. (a) | 1,147 | 77,503 | ||||||
WellPoint, Inc. (a) | 3,754 | 233,199 | ||||||
Zimmer Holdings, Inc. (a) | 1,879 | 111,162 | ||||||
2,553,703 | ||||||||
Diversified Financials — 4.6% |
| |||||||
American Express Company | 10,212 | 442,997 | ||||||
Bank of New York Mellon Corporation (The) | 11,474 | 358,333 | ||||||
BlackRock, Inc. | 833 | 164,951 | ||||||
Capital One Financial Corporation | 4,353 | 209,641 | ||||||
Charles Schwab Corporation (The) | 9,611 | 173,479 | ||||||
CME Group, Inc. | 633 | 195,319 | ||||||
Franklin Resources, Inc. | 1,493 | 180,130 | ||||||
Invesco Ltd. | 4,358 | 107,817 | ||||||
Legg Mason, Inc. | 1,419 | 47,011 | ||||||
Northern Trust Corporation | 2,045 | 106,299 | ||||||
NYSE Euronext | 2,456 | 78,125 | ||||||
PHH Corporation (a) | 500 | 11,945 | ||||||
State Street Corporation | 4,781 | 223,368 | ||||||
T. Rowe Price Group, Inc. | 2,398 | 158,076 | ||||||
TradeStation Group, Inc. (a) | 200 | 1,394 | ||||||
2,458,885 | ||||||||
Food & Beverage — 4.3% |
| |||||||
Campbell Soup Company | 1,952 | 66,641 | ||||||
Darling International, Inc. (a) | 969 | 13,130 | ||||||
Dean Foods Company (a) | 1,664 | 16,890 | ||||||
Flowers Foods, Inc. | 766 | 19,326 | ||||||
General Mills, Inc. | 6,045 | 210,245 | ||||||
Green Mountain Coffee Roasters, Inc. (a) | 1,077 | 36,166 | ||||||
H.J. Heinz Company | 2,999 | 142,453 | ||||||
J. M. Smucker Company (The) | 1,133 | 70,427 | ||||||
Kellogg Company | 2,503 | 125,901 | ||||||
Kraft Foods, Inc., Class A | 16,495 | 504,252 | ||||||
McCormick & Company, Inc. | 1,150 | 50,830 |
14
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
SHARES | VALUE | |||||||
Food & Beverage — (continued) |
| |||||||
PepsiCo, Inc. | 15,054 | $ | 968,123 | |||||
Sara Lee Corporation | 6,022 | 102,193 | ||||||
Tootsie Roll Industries, Inc. | 224 | 6,196 | ||||||
2,332,773 | ||||||||
Semiconductors — 3.7% |
| |||||||
Advanced Micro Devices, Inc. (a) | 5,447 | 42,650 | ||||||
Analog Devices, Inc. | 2,774 | 107,714 | ||||||
Entegris, Inc. (a) | 1,572 | 12,026 | ||||||
Intel Corporation | 52,536 | 1,127,422 | ||||||
Lam Research Corporation (a) | 1,215 | 60,616 | ||||||
LSI Corporation (a) | 6,138 | 37,994 | ||||||
Micron Technology, Inc. (a) | 8,481 | 89,390 | ||||||
National Semiconductor Corporation | 2,219 | 33,640 | ||||||
Novellus Systems, Inc. (a) | 900 | 32,463 | ||||||
Texas Instruments, Inc. | 11,216 | 380,335 | ||||||
Xilinx, Inc. | 2,483 | 79,953 | ||||||
2,004,203 | ||||||||
Transportation — 3.0% |
| |||||||
AMR Corporation (a) | 974 | 6,867 | ||||||
Arkansas Best Corporation | 200 | 5,110 | ||||||
C.H. Robinson Worldwide, Inc. | 1,552 | 119,644 | ||||||
CSX Corporation | 3,566 | 251,760 | ||||||
Expeditors International of Washington, Inc. | 2,014 | 102,049 | ||||||
FedEx Corporation | 2,823 | 254,973 | ||||||
Genesee & Wyoming, Inc., Class A (a) | 330 | 17,077 | ||||||
J.B. Hunt Transport Services, Inc. | 907 | 37,187 | ||||||
Kansas City Southern (a) | 953 | 47,631 | ||||||
Norfolk Southern Corporation | 3,516 | 215,144 | ||||||
Ryder System, Inc. | 500 | 24,040 | ||||||
Southwest Airlines Company | 1,829 | 21,674 | ||||||
United Parcel Service, Inc., Class B | 6,836 | 489,594 | ||||||
1,592,750 | ||||||||
Materials — 2.7% |
| |||||||
Air Products & Chemicals, Inc. | 2,012 | 175,547 | ||||||
Airgas, Inc. | 732 | 45,875 | ||||||
Alcoa, Inc. | 9,684 | 160,464 | ||||||
Bemis Company, Inc. | 1,066 | 34,698 | ||||||
Calgon Carbon Corporation (a) | 400 | 5,704 | ||||||
Celanese Corporation, Class A | 1,525 | 63,272 |
SHARES | VALUE | |||||||
Materials — (continued) |
| |||||||
Domtar Corporation | 408 | $ | 35,875 | |||||
Ecolab, Inc. | 2,202 | 109,417 | ||||||
H.B. Fuller Company | 400 | 9,116 | ||||||
Horsehead Holding Corporation (a) | 313 | 3,978 | ||||||
Lubrizol Corporation | 642 | 68,989 | ||||||
MeadWestvaco Corporation | 1,550 | 44,377 | ||||||
Minerals Technologies, Inc. | 150 | 9,453 | ||||||
Nalco Holding Company | 1,300 | 39,598 | ||||||
Nucor Corporation | 3,007 | 138,051 | ||||||
Praxair, Inc. | 2,895 | 269,351 | ||||||
Rock-Tenn Company, Class A | 382 | 25,499 | ||||||
Schnitzer Steel Industries, Inc., Class A | 192 | 11,846 | ||||||
Sealed Air Corporation | 1,615 | 43,104 | ||||||
Sigma-Aldrich Corporation | 1,129 | 71,861 | ||||||
Sonoco Products Company | 901 | 32,031 | ||||||
Valspar Corporation | 900 | 33,633 | ||||||
Wausau Paper Corporation | 442 | 3,788 | ||||||
Worthington Industries, Inc. | 588 | 11,172 | ||||||
1,446,699 | ||||||||
Food & Staples Retailing — 2.5% |
| |||||||
Costco Wholesale Corporation | 4,144 | 297,705 | ||||||
CVS Caremark Corporation | 12,849 | 439,436 | ||||||
Safeway, Inc. | 3,532 | 73,077 | ||||||
Sysco Corporation | 5,512 | 160,619 | ||||||
Walgreen Company | 9,152 | 370,107 | ||||||
1,340,944 | ||||||||
Insurance — 2.2% |
| |||||||
Aflac, Inc. | 4,472 | 257,498 | ||||||
Chubb Corporation | 2,979 | 172,573 | ||||||
Cincinnati Financial Corporation | 1,470 | 47,099 | ||||||
Erie Indemnity Company | 302 | 20,059 | ||||||
Hartford Financial Services Group, Inc. (The) | 3,995 | 110,981 | ||||||
Lincoln National Corporation | 2,999 | 86,491 | ||||||
Phoenix Companies, Inc. (The) (a) | 1,000 | 2,560 | ||||||
Principal Financial Group, Inc. | 2,976 | 97,524 | ||||||
Progressive Corporation (The) | 5,971 | 118,286 | ||||||
StanCorp Financial Group, Inc. | 420 | 18,736 | ||||||
Travelers Companies, Inc. (The) | 4,421 | 248,725 | ||||||
Wesco Financial Corporation | 10 | 3,758 | ||||||
1,184,290 | ||||||||
15
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | continued |
SHARES | VALUE | |||||||
Consumer Services — 2.1% |
| |||||||
Capella Education Company (a) | 128 | $ | 7,328 | |||||
Chipotle Mexican Grill, Inc. (a) | 290 | 63,487 | ||||||
Choice Hotels International, Inc. | 314 | 11,910 | ||||||
Darden Restaurants, Inc. | 1,216 | 57,286 | ||||||
DeVry, Inc. | 616 | 32,100 | ||||||
Jack in the Box, Inc. (a) | 521 | 11,431 | ||||||
McDonald’s Corporation | 10,060 | 741,120 | ||||||
Peet’s Coffee & Tea, Inc. (a) | 122 | 4,655 | ||||||
Starbucks Corporation | 6,983 | 220,174 | ||||||
1,149,491 | ||||||||
Consumer Durables & Apparel — 1.9% |
| |||||||
Coach, Inc. | 2,826 | 152,858 | ||||||
Deckers Outdoor Corporation (a) | 372 | 27,301 | ||||||
Eastman Kodak Company (a) | 2,434 | 8,909 | ||||||
Garmin Ltd. | 1,164 | 35,886 | ||||||
Harman International Industries, Inc. (a) | 627 | 27,162 | ||||||
KB Home | 941 | 13,965 | ||||||
Leggett & Platt, Inc. | 1,400 | 31,542 | ||||||
Liz Claiborne, Inc. (a) | 900 | 4,446 | ||||||
Mattel, Inc. | 3,362 | 79,612 | ||||||
NIKE, Inc., Class B | 3,494 | 288,185 | ||||||
Phillips-Van Heusen Corporation | 620 | 36,189 | ||||||
Pulte Homes, Inc. (a) | 3,535 | 27,891 | ||||||
Stanley Black & Decker, Inc. | 1,471 | 106,912 | ||||||
Timberland Company (The), Class A (a) | 400 | 10,692 | ||||||
Tupperware Brands Corporation | 600 | 27,450 | ||||||
Under Armour, Inc., Class A (a) | 334 | 19,993 | ||||||
VF Corporation | 843 | 69,733 | ||||||
Whirlpool Corporation | 712 | 60,876 | ||||||
1,029,602 | ||||||||
Media — 1.8% |
| |||||||
Discovery Communications, Inc., Class A (a) | 1,273 | 49,647 | ||||||
John Wiley & Sons, Inc., Class A | 436 | 20,034 | ||||||
New York Times Company (The), Class A (a) | 1,313 | 13,274 | ||||||
Omnicom Group, Inc. | 2,860 | 128,357 | ||||||
Scholastic Corporation | 200 | 5,946 | ||||||
Virgin Media, Inc. | 2,966 | 74,625 | ||||||
Walt Disney Company (The) | 17,174 | 667,553 | ||||||
Washington Post Company (The), Class B | 53 | 22,703 | ||||||
982,139 | ||||||||
SHARES | VALUE | |||||||
Utilities — 1.4% |
| |||||||
AGL Resources, Inc. | 700 | $ | 25,690 | |||||
Alliant Energy Corporation | 1,000 | 37,160 | ||||||
Atmos Energy Corporation | 800 | 26,080 | ||||||
Avista Corporation | 500 | 11,325 | ||||||
CenterPoint Energy, Inc. | 3,867 | 62,452 | ||||||
Cleco Corporation | 500 | 15,630 | ||||||
Consolidated Edison, Inc. | 2,682 | 133,859 | ||||||
IDACORP, Inc. | 400 | 14,948 | ||||||
MGE Energy, Inc. | 201 | 8,181 | ||||||
National Fuel Gas Company | 680 | 46,471 | ||||||
New Jersey Resources Corporation | 400 | 16,784 | ||||||
Nicor, Inc. | 400 | 20,188 | ||||||
NiSource, Inc. | 2,794 | 52,024 | ||||||
Northeast Utilities | 1,619 | 53,297 | ||||||
Northwest Natural Gas Company | 243 | 10,828 | ||||||
NSTAR | 978 | 42,426 | ||||||
OGE Energy Corporation | 948 | 43,504 | ||||||
Pepco Holdings, Inc. | 2,228 | 41,374 | ||||||
Piedmont Natural Gas Company, Inc. | 630 | 17,678 | ||||||
Portland General Electric Company | 815 | 18,207 | ||||||
Questar Corporation | 1,559 | 27,173 | ||||||
UGI Corporation | 974 | 30,535 | ||||||
WGL Holdings, Inc. | 450 | 16,227 | ||||||
772,041 | ||||||||
Renewable Energy & Energy Efficiency — 1.3% |
| |||||||
American Superconductor Corporation (a) | 520 | 14,180 | ||||||
Applied Materials, Inc. | 12,675 | 198,871 | ||||||
Calpine Corporation (a) | 3,298 | 47,062 | ||||||
Cree, Inc. (a) | 985 | 49,733 | ||||||
Energy Conversion Devices, Inc. (a) | 450 | 1,836 | ||||||
First Solar, Inc. (a) | 523 | 80,845 | ||||||
Fuel Systems Solutions, Inc. (a) | 190 | 4,946 | ||||||
ITC Holdings Corporation | 525 | 34,492 | ||||||
Itron, Inc. (a) | 411 | 23,846 | ||||||
Johnson Controls, Inc. | 6,304 | 242,011 | ||||||
Ormat Technologies, Inc. | 164 | 5,045 | ||||||
SunPower Corporation, Class A (a) | 538 | 7,231 | ||||||
Zoltek Companies, Inc. (a) | 250 | 2,795 | ||||||
712,893 | ||||||||
16
GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS January 31, 2011 (unaudited) | concluded |
SHARES | VALUE | |||||||
Telecommunication Services — 1.1% |
| |||||||
American Tower Corporation, Class A (a) | 3,816 | $ | 194,082 | |||||
Frontier Communications Corporation | 9,180 | 84,181 | ||||||
Leap Wireless International, Inc. (a) | 482 | 6,738 | ||||||
MetroPCS Communications, Inc. (a) | 2,210 | 28,575 | ||||||
Qwest Communications International, Inc. | 14,917 | 106,358 | ||||||
Sprint Nextel Corporation (a) | 27,581 | 124,666 | ||||||
Windstream Corporation | 4,642 | 59,464 | ||||||
604,064 | ||||||||
Real Estate — 1.1% |
| |||||||
AMB Property Corporation | 1,611 | 54,049 | ||||||
Boston Properties, Inc. | 1,285 | 121,266 | ||||||
CB Richard Ellis Group, Inc., Class A (a) | 2,702 | 59,957 | ||||||
Forest City Enterprises, Inc., Class A (a) | 1,011 | 17,096 | ||||||
Jones Lang LaSalle, Inc. | 422 | 37,406 | ||||||
Liberty Property Trust | 1,110 | 38,595 | ||||||
ProLogis | 5,362 | 80,001 | ||||||
Regency Centers Corporation | 809 | 34,876 | ||||||
Vornado Realty Trust | 1,538 | 135,482 | ||||||
578,728 | ||||||||
Commercial & Professional Services — 0.7% |
| |||||||
Avery Dennison Corporation | 885 | 37,250 | ||||||
Deluxe Corporation | 450 | 11,002 | ||||||
Herman Miller, Inc. | 500 | 12,065 | ||||||
HNI Corporation | 400 | 12,136 | ||||||
Interface, Inc., Class A | 400 | 6,500 | ||||||
Kelly Services, Inc. (a) | 200 | 3,935 | ||||||
Knoll, Inc. | 420 | 7,031 | ||||||
Manpower, Inc. | 811 | 52,366 | ||||||
Pitney Bowes, Inc. | 2,050 | 49,774 | ||||||
R.R. Donnelley & Sons Company | 2,000 | 35,440 | ||||||
Robert Half International, Inc. | 1,400 | 43,904 | ||||||
Steelcase, Inc. | 1,031 | 10,537 | ||||||
Stericycle, Inc. (a) | 766 | 60,123 | ||||||
Team, Inc. (a) | 100 | 2,556 | ||||||
Tetra Tech, Inc. (a) | 552 | 12,776 | ||||||
357,395 | ||||||||
SHARES | VALUE | |||||||
Automobiles & Components — 0.3% |
| |||||||
BorgWarner, Inc. (a) | 1,048 | $ | 70,635 | |||||
Harley-Davidson, Inc. | 2,166 | 85,882 | ||||||
Modine Manufacturing Company (a) | 549 | 9,059 | ||||||
165,576 | ||||||||
Healthy Living — 0.2% |
| |||||||
Hain Celestial Group, Inc. (The) (a) | 350 | 9,320 | ||||||
United Natural Foods, Inc. (a) | 400 | 14,800 | ||||||
Whole Foods Market, Inc. | 1,381 | 71,412 | ||||||
95,532 | ||||||||
Total Securities | ||||||||
(Cost $47,977,234) | 53,415,895 | |||||||
SHORT-TERM OBLIGATION — 0.4% |
| |||||||
Repurchase Agreement— | 207,672 | |||||||
TOTAL INVESTMENTS (b) — 99.9% |
| |||||||
(Cost $48,184,906) | 53,623,567 | |||||||
Other Assets Less Liabilities — 0.1% | 36,730 | |||||||
NET ASSETS — 100.0% | $ | 53,660,297 | ||||||
(a) | Non-income producing security. |
(b) | The cost of investments for federal income tax purposes is $49,639,856 resulting in gross unrealized appreciation and depreciation of $8,711,448 and $4,727,737 respectively, or net unrealized appreciation of $3,983,711. |
See Notes to Financial Statements
17
GREEN CENTURY FUNDS STATEMENTS OF ASSETS AND LIABILITIES
January 31, 2011
(unaudited)
BALANCED FUND | EQUITY FUND | |||||||
ASSETS: | ||||||||
Investments, at value (cost $51,158,486 and $48,184,906, respectively) | $ | 58,020,952 | $ | 53,623,567 | ||||
Receivables for: | ||||||||
Securities sold | 2,081,734 | 25,400 | ||||||
Capital stock sold | 36,431 | 14,774 | ||||||
Interest | 150,490 | — | ||||||
Dividends | 50,798 | 51,030 | ||||||
Total assets | 60,340,405 | 53,714,771 | ||||||
LIABILITIES: | ||||||||
Payable for securities purchased | 2,143,063 | — | ||||||
Payable for capital stock repurchased | 10,840 | 11,289 | ||||||
Accrued expenses | 68,024 | 43,185 | ||||||
Total liabilities | 2,221,927 | 54,474 | ||||||
NET ASSETS | $ | 58,118,478 | $ | 53,660,297 | ||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 65,559,003 | $ | 55,491,419 | ||||
Undistributed net investment income | 19,342 | 13,944 | ||||||
Accumulated net realized losses on investments | (14,322,328 | ) | (7,283,727 | ) | ||||
Net unrealized appreciation on investments | 6,862,461 | 5,438,661 | ||||||
NET ASSETS | $ | 58,118,478 | $ | 53,660,297 | ||||
SHARES OUTSTANDING | 3,365,975 | 2,691,449 | ||||||
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE | $ | 17.27 | $ | 19.94 | ||||
GREEN CENTURY FUNDS STATEMENTS OF OPERATIONS
For the six months ended January 31, 2011
(unaudited)
BALANCED FUND | EQUITY FUND | |||||||
INVESTMENT INCOME: | ||||||||
Interest income | $ | 318,583 | $ | 7 | ||||
Dividend and other income (net of $2,434 and $0 foreign withholding taxes, respectively) | 294,663 | 472,584 | ||||||
Total investment income | 613,246 | 472,591 | ||||||
EXPENSES: | ||||||||
Administrative services fee | 204,424 | 176,536 | ||||||
Investment advisory fee | 178,971 | 61,969 | ||||||
Total expenses | 383,395 | 238,505 | ||||||
NET INVESTMENT INCOME | 229,851 | 234,086 | ||||||
NET REALIZED AND UNREALIZED GAIN: | ||||||||
Net realized gain on investments | 496,957 | 31,140 | ||||||
Change in net unrealized appreciation on investments | 4,550,319 | 6,711,328 | ||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 5,047,276 | 6,742,468 | ||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 5,277,127 | $ | 6,976,554 | ||||
See Notes to Financial Statements
18
GREEN CENTURY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
BALANCED FUND | EQUITY FUND | |||||||||||||||
FOR THE SIX MONTHS ENDED JANUARY 31, 2011 (UNAUDITED) | FOR THE YEAR ENDED JULY 31, 2010 (AUDITED) | FOR THE SIX MONTHS ENDED JANUARY 31, 2011 (UNAUDITED) | FOR THE YEAR ENDED JULY 31, 2010 (AUDITED) | |||||||||||||
INCREASE IN NET ASSETS: | ||||||||||||||||
From operations: | ||||||||||||||||
Net investment income | $ | 229,851 | $ | 577,111 | $ | 234,086 | $ | 454,853 | ||||||||
Net realized gain (loss) on investments | 496,957 | 474,363 | 31,140 | (1,148,396 | ) | |||||||||||
Change in net unrealized appreciation on Investments | 4,550,319 | 2,779,864 | 6,711,328 | 5,950,275 | ||||||||||||
Net increase in net assets resulting from operations | 5,277,127 | 3,831,338 | 6,976,554 | 5,256,732 | ||||||||||||
Dividends and distributions to shareholders: | ||||||||||||||||
From net investment income | (259,224 | ) | (582,906 | ) | (295,771 | ) | (395,226 | ) | ||||||||
Capital share transactions: | ||||||||||||||||
Proceeds from sales of shares | 2,201,182 | 4,650,484 | 2,450,119 | 7,260,794 | ||||||||||||
Reinvestment of dividends and distributions | 252,616 | 570,188 | 289,779 | 390,087 | ||||||||||||
Payments for shares redeemed | (2,113,884 | ) | (3,812,967 | ) | (2,351,149 | ) | (6,580,289 | ) | ||||||||
Net increase in net assets resulting from capital share transactions | 339,914 | 1,407,705 | 388,749 | 1,070,592 | ||||||||||||
Total increase in net assets | 5,357,817 | 4,656,137 | 7,069,532 | 5,932,098 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 52,760,661 | 48,104,524 | 46,590,765 | 40,658,667 | ||||||||||||
End of period | $ | 58,118,478 | $ | 52,760,661 | $ | 53,660,297 | $ | 46,590,765 | ||||||||
Undistributed net investment income | 19,342 | 48,715 | 13,944 | 75,629 |
See Notes to Financial Statements
19
GREEN CENTURY BALANCED FUND FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED JANUARY 31, 2011 | FOR THE YEARS ENDED JULY 31, | |||||||||||||||||||||||
(UNAUDITED) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net Asset Value, beginning of period | $ | 15.76 | $ | 14.75 | $ | 16.52 | $ | 17.78 | $ | 16.29 | $ | 16.52 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.18 | 0.27 | 0.28 | 0.22 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.52 | 1.01 | (1.77 | ) | (1.27 | ) | 1.48 | (0.23 | ) | |||||||||||||||
Total increase (decrease) from investment operations | 1.59 | 1.19 | (1.50 | ) | (0.99 | ) | 1.70 | (0.20 | ) | |||||||||||||||
Less dividends: | ||||||||||||||||||||||||
Dividends from net investment income | (0.08 | ) | (0.18 | ) | (0.27 | ) | (0.27 | ) | (0.21 | ) | (0.03 | ) | ||||||||||||
Net Asset Value, end of period | $ | 17.27 | $ | 15.76 | $ | 14.75 | $ | 16.52 | $ | 17.78 | $ | 16.29 | ||||||||||||
Total return | 10.08 | %(a) | 8.07 | % | (8.88 | )% | (5.62 | )% | 10.40 | % | (1.22 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in 000’s) | $ | 58,118 | $ | 52,761 | $ | 48,105 | $ | 52,703 | $ | 51,754 | $ | 50,230 | ||||||||||||
Ratio of expenses to average net assets | 1.38 | %(b) | 1.38 | % | 1.38 | % | 1.38 | % | 1.44 | % | 2.39 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.83 | %(b) | 1.13 | % | 1.97 | % | 1.50 | % | 1.24 | % | 0.15 | % | ||||||||||||
Portfolio turnover | 37 | %(a) | 48 | % | 33 | % | 44 | % | 35 | % | 110 | % |
(a) | Not annualized. |
(b) | Annualized. |
GREEN CENTURY EQUITY FUND FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED JANUARY 31, 2011 | FOR THE YEARS ENDED JULY 31, | |||||||||||||||||||||||
(UNAUDITED) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net Asset Value, beginning of period | $ | 17.44 | $ | 15.65 | $ | 18.83 | $ | 22.66 | $ | 19.91 | $ | 19.91 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.21 | 0.18 | 0.19 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.52 | 1.77 | (3.17 | ) | (2.81 | ) | 2.75 | (0.01 | ) | |||||||||||||||
Total increase (decrease) from investment operations | 2.61 | 1.94 | (2.96 | ) | (2.63 | ) | 2.94 | 0.03 | ||||||||||||||||
Less dividends: | ||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.15 | ) | (0.22 | ) | (0.19 | ) | (0.19 | ) | (0.03 | ) | ||||||||||||
Distributions from net realized gains | — | — | — | (c) | (1.01 | ) | — | — | ||||||||||||||||
Total decrease from dividends | (0.11 | ) | (0.15 | ) | (0.22 | ) | (1.20 | ) | (0.19 | ) | (0.03 | ) | ||||||||||||
Net Asset Value, end of period | $ | 19.94 | $ | 17.44 | $ | 15.65 | $ | 18.83 | $ | 22.66 | $ | 19.91 | ||||||||||||
Total return | 14.98 | %(a) | 12.39 | % | (15.58 | )% | (12.28 | )% | 14.76 | % | 0.16 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in 000’s) | $ | 53,660 | $ | 46,591 | $ | 40,659 | $ | 50,123 | $ | 42,232 | $ | 32,938 | ||||||||||||
Ratio of expenses to average net assets | 0.95 | %(b) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 1.50 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.93 | %(b) | 0.97 | % | 1.38 | % | 0.98 | % | 0.89 | % | 0.20 | % | ||||||||||||
Portfolio turnover | 6 | %(a) | 13 | % | 23 | % | 6 | % | 8 | %(d) | 12 | %(e) |
(a) | Not annualized. |
(b) | Annualized. |
(c) | Amount represents less than 0.005 per share. |
(d) | Represents portfolio turnover for the Equity Fund from November 28, 2006 to July 31, 2007. Porfolio turnover for the Domini Trust from August 1, 2006 to November 27, 2006 was 1%. For further information regarding the withdrawal of the Equity Fund’s investment in the Domini Trust, please see the notes to the financial statements. |
(e) | Represents portfolio turnover for the Domini Social Equity Trust (“Domini Trust”) for the year ended 2006. |
See Notes to Financial Statements
20
GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) |
NOTE 1 — Organization and Significant Accounting Policies
Green Century Funds (the “Trust”) is a Massachusetts business trust which offers two separate series, the Green Century Balanced Fund (the “Balanced Fund”) and the Green Century Equity Fund (the “Equity Fund”), collectively, the “Funds”. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust accounts separately for the assets, liabilities and operations of each series. The Balanced Fund commenced operations on March 18, 1992 and the Equity Fund commenced operations on September 13, 1995.
Through November 27, 2006, the Equity Fund invested substantially all of its assets in the Domini Social Equity Trust (the “Domini Trust”), an open-end, diversified management investment company which had the same investment objective as the Fund. The Equity Fund accounted for its investment in the Domini Trust as a partnership investment and recorded its share of the Domini Trust income, expenses and realized and unrealized gains and losses daily. The value of such investment reflected the Fund’s proportionate interest in the net assets of the Domini Trust (2.57% at November 27, 2006). Effective November 28, 2006, the Equity Fund withdrew its investment from the Domini Trust and directly invested in the securities of the companies included in the MSCI KLD 400 Social Index, formerly the Domini 400 SocialSM Index (the “Index”).
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of the Funds’ significant accounting policies:
(A) | Investment Valuation: Equity securities listed on national securities exchanges other than NASDAQ are valued at last sale price. If a last sale price is not available, securities listed on national exchanges other than NASDAQ are valued at the mean between the closing bid and closing ask prices. NASDAQ National Market® and SmallCapSM securities are valued at the NASDAQ Official Closing Price (“NOCP”). The NOCP is based on the last traded price if it falls within the concurrent best bid and ask prices and is normalized pursuant to NASDAQ’s published procedures if it falls outside this range. If a NOCP is not available for any such security, the security is valued at the last sale price, or, if there have been no sales that day, at the mean between the closing bid and closing ask prices. Unlisted equity securities are valued at last sale price, or when last sale prices are not available, at the last quoted bid price. Debt securities (other than certificates of deposit and short-term obligations maturing in sixty days or less) are valued on the basis of valuations furnished by a pricing service which takes into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, and other market data, without exclusive reliance on quoted prices or exchange or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of the securities. Securities, if any, for which there are no such valuations or quotations available, or for which the market quotation is not reliable, are valued at fair value by management as determined in good faith under guidelines established by the Trustees. Certificates of deposit are valued at cost plus accrued interest. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. |
21
GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) | continued |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 — quoted prices for active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Quoted prices for identical or similar assets in markets that are not active. Inputs that are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.
Level 3 — significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Balanced Fund’s net assets as of January 31, 2011:
LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||
COMMON STOCKS* | $38,176,760 | $ — | $ — | $38,176,760 | ||||||||||||
CORPORATE BONDS & NOTES | — | 10,762,211 | — | 10,762,211 | ||||||||||||
U.S. GOVERNMENT AGENCIES | — | 6,337,297 | — | 6,337,297 | ||||||||||||
CERTIFICATES OF DEPOSIT | — | 190,000 | — | 190,000 | ||||||||||||
SHORT-TERM OBLIGATION | — | 2,554,684 | — | 2,554,684 | ||||||||||||
TOTAL | $38,176,760 | $19,844,192 | $ — | $58,020,952 | ||||||||||||
* All sub-categories within common stocks represent level 1 evaluation status.
The following is a summary of the inputs used to value the Equity Fund’s net assets as of January 31, 2011:
LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||
COMMON STOCKS* | $53,415,895 | $ — | $ — | $53,415,895 | ||||||||||||
SHORT-TERM OBLIGATION | — | 207,672 | — | 207,672 | ||||||||||||
TOTAL | $53,415,895 | $207,672 | $ — | $53,623,567 | ||||||||||||
* All sub-categories within common stocks represent level 1 evaluation status.
The Funds did not have any significant transfers into or out of Level 1 and 2 or hold any Level 3 securities during the six months ended January 31, 2011.
(B) | Securities Transactions and Investment Income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are determined using the identified cost basis. Interest income, including amortization of premiums and accretion of discounts on bonds, is recognized on the accrual basis and dividend income is recorded on ex-dividend date. |
22
GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) | continued |
(C) | Options Transactions: The Balanced Fund may utilize options to hedge or protect from adverse movements in the market values of its portfolio securities and to enhance return. The Equity Fund is authorized to utilize options to hedge against possible increases in the value of securities which are expected to be purchased by the Equity Fund or possible declines in the value of securities which are expected to be sold by the Equity Fund. The use of options involves risk such as the possibility of illiquid markets or imperfect correlation between the value of the option and the underlying securities. The Funds are also authorized to write put and call options. Premiums received upon writing put or call options are recorded as an asset with a corresponding liability which is subsequently adjusted to the current market value of the option. Changes between the initial premiums received and the current market value of the options are recorded as unrealized gains or losses. When an option is closed, expired or exercised, a gain or loss is realized and the liability is eliminated. The Funds continue to bear the risk of adverse movements in the price of the underlying assets during the period of the option, although any potential loss during the period would be reduced by the amount of the option premium received. As required by the Act, liquid securities are designated as collateral in an amount equal to the market value of open options contracts. In the six months ended January 31, 2011, neither the Balanced Fund nor the Equity Fund utilized options or wrote put or call options. |
(D) | Repurchase Agreements: The Funds enter into repurchase agreements with selected banks or broker-dealers that are deemed by the Funds’ adviser to be creditworthy pursuant to guidelines established by the Board of Trustees. Each repurchase agreement is recorded at cost, which approximates fair value. The Funds require that the market value of collateral, represented by securities (primarily U.S. Government securities), be sufficient to cover payments of interest and principal and that the collateral be maintained in a segregated account with a custodian bank in a manner sufficient to enable the Funds to obtain those securities in the event of a default of the counterparty. In the event of default or bankruptcy by the counterparty to the repurchase agreement, retention of the collateral may be subject to legal proceedings. |
(E) | Distributions: Distributions to shareholders are recorded on the ex-dividend date. The Funds declare and pay dividends of net investment income, if any, semi-annually and distribute net realized capital gains, if any, annually. The amount and character of income and net realized gains to be distributed are determined in accordance with Federal income tax rules and regulations, which may differ from U.S. generally accepted accounting principles. To the extent that these differences are attributable to permanent book and tax accounting differences, the components of net assets have been adjusted. |
(F) | Federal Taxes: Each series of the Trust is treated as a separate entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provisions for Federal income or excise tax are necessary. |
In July 2006, the Financial Accounting Standards Board (FASB) issued Accounting for Uncertainty in Income Taxes. This interpretation addresses the accounting for uncertainty in income taxes and establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction). The Funds recognize tax benefits only if it is more likely than not that a tax position (including the Funds’ assertion that their income is exempt from tax) will be sustained upon examination. The Funds adopted Accounting for Uncertainty in Income Taxes in fiscal year 2008. The Funds had no material uncertain tax positions and have not recorded a liability for unrecognized tax benefits as of January 31, 2011. Also, the Funds had recognized no interest and penalties related to uncertain tax benefits through January 31, 2011. At January 31, 2011, the tax years 2007 through 2010 remain open to examination by the Internal Revenue Service.
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GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) | continued |
(G) | Redemption Fee: A 2.00% redemption fee is retained by the Funds to offset the effect of transaction costs and other expenses associated with short-term investing. The fee is imposed on redemptions or exchanges of shares held 60 days or less from their purchase date. For the six months ended January 31, 2011, the Balanced Fund and Equity Fund received $582 and $42, respectively, in redemption fees. Redemption fees are recorded as an adjustment to paid-in capital. |
NOTE 2 — Transactions With Affiliates
(A) | Investment Adviser: Green Century Capital Management, Inc. (“Green Century”) is the adviser (“the Adviser”) for the Funds. Green Century is owned by Paradigm Partners. Green Century oversees the portfolio management of the Funds on a day-to-day basis. The Balanced Fund pays Green Century a fee, accrued daily and paid monthly, at an annual rate equal to 0.65% of the Balanced Fund’s average daily net assets. The Equity Fund pays Green Century a fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Equity Fund’s average daily net assets up to but not including $100 million, 0.22% of average daily net assets including $100 million up to but not including $500 million, 0.17% of average daily net assets including $500 million up to but not including $1 billion and 0.12% of average daily net assets equal to or in excess of $1 billion. |
(B) | Subadvisers: Trillium Asset Management Corporation (“Trillium”) is the subadviser for the Balanced Fund. Trillium is paid a fee by the Adviser at an annual rate of 0.40% on the first $30 million of average daily net assets and 0.35% on average daily net assets in excess of $30 million for its services. For the six months ended January 31, 2011, Green Century accrued fees of $103,931 to Trillium. Mellon Capital Management Corporation (“Mellon”) was the subadviser for the Equity Fund through November 28, 2010. Mellon was paid a fee by the Adviser the greater of $50,000 or 0.08% of the value of the average daily net assets of the Fund up to but not including $100 million, 0.05% of the average daily net assets of the Fund from and including $100 million up to but not including $500 million, 0.02% of the average daily net assets of the Fund from and including $500 million up to but not including $1 billion and 0.01% of the average daily net assets of the Fund equal to or in excess of $1 billion for its services. For the period of August 1, 2010 to November 28, 2010, Green Century accrued fees of $16,438 to Mellon. At a November 5, 2010 Board meeting, effective November 29th, the Board terminated Mellon as the subadvisor to the Equity Fund and approved Northern Trust Investments, Inc. (“Northern Trust”) as the Equity Fund’s subadviser, subject to the approval of the Equity Fund’s shareholders. At a Special Meeting of the Equity Fund’s shareholders on March 22, 2011, the Fund’s shareholders voted to approve an Investment Subadvisory Agreement with Northern Trust. For the period November 29, 2010 through January 31, 2011 Northern Trust was paid a fee by the Adviser equal to the Mellon fee schedule detailed above. During this period Green Century accrued fees of $8,767 to Northern Trust. |
(C) | Administrator: Green Century is the administrator (“the Administrator”) of the Green Century Funds. Pursuant to the Administrative Services Agreement, Green Century pays all the expenses of each Fund other than the investment advisory fees; interest; taxes; brokerage costs and other capital expenses; expenses of non-interested trustees (including counsel fees) and any extraordinary expenses. The Balanced Fund pays Green Century a fee at a rate such that immediately following any payment to the Administrator, the total operating expenses of the Fund, on an annual basis, do not exceed 1.38% of the Fund’s average daily net assets. The Equity Fund pays Green Century a fee at a rate such that immediately following any payment to the Administrator, the total operating expenses of the Fund, on an annual basis, do not exceed 0.95% of the Fund’s average daily net assets. |
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GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) | continued |
(D) | Subadministrator: Pursuant to a Subadministrative Services Agreement with the Administrator, UMB Fund Services, Inc. (“UMBFS”) as Subadministrator, is responsible for conducting certain day-to-day administration of the Trust subject to the supervision and direction of the Administrator. For the six months ended January 31, 2011, Green Century accrued fees of $45,858 and $45,858 to UMBFS related to services performed on behalf of the Balanced Fund and the Equity Fund, respectively. |
(E) | Index Agreement: The Equity Fund invests in the securities of the companies included in the Index. The Index is owned and maintained byMSCI ESG Research. For the use of the Index, MSCI is paid a fee by the Adviser the greater of $50,000 or at an annual rate of 0.10% on the first $500 million of average daily net assets, 0.075% on average daily net assets on the next $500 million, and 0.05% on average daily net assets in excess of $1 billion. For the six months ended January 31, 2011, Green Century accrued fees of $25,205 to MSCI. |
NOTE 3 — Investment Transactions
The Balanced Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $19,242,782 and $19,875,609, respectively, for the six months ended January 31, 2011. The Equity Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $3,305,219 and $3,100,419, respectively.
NOTE 4 — Federal Income Tax Information
The tax basis of the components of distributable net earnings (deficit) at July 31, 2010 were as follows:
BALANCED FUND | EQUITY FUND | |||||||
Undistributed ordinary income | $ | 49,250 | $ | 72,930 | ||||
Undistributed long-term capital gains | — | — | ||||||
Tax accumulated earnings | 49,250 | 72,930 | ||||||
Accumulated capital and other losses | (14,636,091 | ) | (5,828,380 | ) | ||||
Unrealized appreciation (depreciation) | 2,128,413 | (2,756,455 | ) | |||||
Distributable net earnings (deficit) | $ | (12,458,428 | ) | $ | (8,511,905 | ) | ||
The Balanced Fund and the Equity Fund had accumulated capital loss carryforwards of $14,635,556 and $5,184,505, respectively, of which $9,370,230 and $0, respectively, expire in the year 2011, $1,866,519 and $1,484,742, respectively, expire in the year 2017 and $3,398,807 and $3,699,763, respectively, expire in the year 2018. To the extent that a Fund realizes future net capital gains, those gains will be offset by any unused capital loss carryforwards.
The Balanced Fund had losses expiring during the fiscal year ended July 31, 2010, in the amount of $2,323,170.
At July 31, 2010, the Balanced and Equity Fund had net realized capital losses from transactions between November 1, 2009 and July 31, 2010 of $0 and $643,875, respectively, which for tax purposes, are deferred and will be recognized in fiscal year 2011.
The Balanced Fund had realized currency losses from transactions between November 1, 2009 and July 31, 2010 of $535, which for tax purposes, are deferred and will be recognized in fiscal year 2011.
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GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) | concluded |
The tax character of distributions paid during the fiscal years ended July 31, 2010 and July 31, 2009 were as follows:
BALANCED FUND | EQUITY FUND | |||||||||||||||
YEAR ENDED JULY 31, 2010 | YEAR ENDED JULY 31, 2009 | YEAR ENDED JULY 31, 2010 | YEAR ENDED JULY 31, 2009 | |||||||||||||
Ordinary income | $ | 582,906 | $ | 871,482 | $ | 395,226 | $ | 563,381 | ||||||||
Long-term capital gains | — | — | — | 763 |
NOTE 5 — Capital Share Transactions
Capital Share transactions for the Balanced Fund and the Equity Fund were as follows:
BALANCED FUND | EQUITY FUND | |||||||||||||||
SIX MONTHS ENDED JANUARY 31, 2011 | YEAR ENDED JULY 31, 2010 | SIX MONTHS ENDED JANUARY 31, 2011 | YEAR ENDED JULY 31, 2010 | |||||||||||||
Shares sold | 131,363 | 293,961 | 130,812 | 423,116 | ||||||||||||
Reinvestment of dividends | 14,825 | 36,590 | 14,755 | 22,494 | ||||||||||||
Shares redeemed | (127,931 | ) | (243,270 | ) | (125,442 | ) | (372,127 | ) | ||||||||
18,257 | 87,281 | 20,125 | 73,483 | |||||||||||||
BOARD OF TRUSTEES’ CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS
The Board of Trustees of the Green Century Funds considered and approved, either initially or as a continuance for an additional period, five advisory and subadvisory agreements during the six months ended January 31, 2011.
INVESTMENT ADVISORY AGREEMENTS WITH GREEN CENTURY CAPITAL MANAGEMENT, INC.
The Board, including the Independent Trustees, approved the continuance of the Investment Advisory Agreements (the “Advisory Agreements”) between the Trust, on behalf of the Balanced Fund and the Equity Fund (the “Funds” and each a “Fund”), and Green Century Capital Management (“Green Century” or the “Adviser”), at a meeting on November 5, 2010. In connection with their deliberations at the meeting, and in separate executive session of the Independent Trustees, the Trustees considered, among other things, information provided by Green Century regarding the investment performance of each Fund; the expenses of each Fund and the advisory fee to be paid to Green Century by each Fund; and the profitability to Green Century of its proposed advisory relationship to each Fund. The Independent Trustees were assisted by independent counsel in considering these materials and the approval and continuance of the Advisory Agreements. The Trustees considered all the information provided to them by Green Century, including information provided throughout the year. In approving the Advisory Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Matters considered in connection with their approval of the Advisory Agreements included the following.
Nature, Quality, and Extent of Services Performed. The Trustees considered the scope and quality of the services to be performed for each of the Funds by the Adviser, including the resources to be dedicated by the Adviser. With respect to the Equity Fund, these services included monitoring the Equity Fund’s performance and tracking error relative to the MSCI KLD 400 Social Index (the “Index”); implementing the environmental policies of the Trust by voting the Equity
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Fund’s shareholder proxies; and overall compliance oversight provided by the Adviser. With respect to the Balanced Fund, the services performed included the oversight and monitoring of the portfolio management and performance of the Balanced Fund; monitoring the implementation of the Balanced Fund’s environmental screens; implementing the environmental policies of the Trust by voting the Balanced Fund’s shareholder proxies; and overall compliance oversight provided by the Adviser. In addition, the Trustees considered the administrative services provided by the Adviser to both Funds under a separate agreement, including the coordination of the activities of all of the Funds’ other service providers.
Based on its review of all of the services provided, the Trustees concluded that the nature, quality and extent of services provided by the Adviser supported the continuance of the Advisory Agreements with respect to the Equity Fund and the Balanced Fund.
Investment Performance. With respect to the Equity Fund, the Trustees considered that due to the Equity Fund’s passive investment strategy, the principal concern with regard to investment performance was the extent to which the Equity Fund tracked the Index and noted that the Equity Fund’s performance closely followed that of the Index for the period ended September 30, 2010. After considering all the factors deemed appropriate, the Trustees, including the Independent Trustees, concluded that the performance of the Equity Fund supported the continuance of the Advisory Agreement with respect to the Equity Fund.
With respect to the Balanced Fund, the Trustees reviewed and considered information regarding the investment performance of the Balanced Fund and comparative data with respect to the performance of other funds designated by Morningstar to have similar investment objectives as well as the Balanced Fund’s performance measured against the Lipper Balanced Fund Index, a broad-based balanced fund market index. The Trustees noted that as of the period ended September 30, 2010, the Balanced Fund’s one-, three-, five- and ten-year average annual returns had underperformed the benchmark. The Trustees also considered the performance information they had been provided throughout the year. After weighing all the factors deemed appropriate, including the environmental screens applied to the Fund’s investment process and the decrease in the volatility of the Fund in recent years, the Trustees, including the Independent Trustees, concluded that the performance of the Balanced Fund supported the continuance of the Advisory Agreement with respect to the Balanced Fund.
The Costs of Services Provided and Profitability. The Trustees considered the costs of the services provided to the Funds and the profitability and fall-out benefits to the Adviser from its arrangements with the Funds.
The Trustees reviewed and considered an analysis of the advisory fees and total expenses ratios of each Fund and comparative data for multiple categories of mutual funds included in and as defined by Morningstar’s mutual fund database of over 7,000 mutual funds. For the Equity Fund, the Trustees noted that, based on the information provided, the Fund’s advisory fee was lower than the average advisory fee for socially conscious funds by 33 basis points and lower than that of the average growth and income funds by 21 basis points. The Trustees also noted that the total expense ratio of the Equity Fund of 0.95% was lower than that of the average of socially responsible funds by 31 basis points and lower than that of the average of all growth and income funds by 2 basis points. The Trustees considered that the Equity Fund is an index fund, whereas many of the funds in the comparison groups are actively managed. For the Balanced Fund, the Trustees noted that, based on the information provided, the Fund’s advisory fee was higher than the average advisory fee for socially conscious funds (by 7 basis points), socially conscious balanced Funds (by 20 basis points), all balanced funds (by 19 basis points) and balanced funds which have under $100 million in assets (by 10 basis points). The Trustees considered that Green Century had reduced its advisory fee by 10 basis points in 2006. The Trustees also noted that the total expense ratio of the Balanced Fund was capped at 1.38% and that the total expense ratio was higher than that of the average of socially responsible funds by 12 basis points, higher than that of the average of all balanced funds by 31 basis points, and higher than that of the average of balanced funds with assets less than $100 million by 35 basis points.
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Green Century provided the Trustees with information relating to the profitability to Green Century of its advisory relationships to the Funds. The Trustees noted that based on information provided by Green Century, the relationship was not profitable. In that regard, the Trustees considered the subadvisory fees and the other expenses incurred by the Adviser in providing advisory services to the Funds. The Trustees also considered the fee received by Green Century for providing administrative services to the Funds and the expenses incurred in providing those services. In considering the cost allocation methodology used by Green Century, the Trustees took into consideration that the Adviser does not provide advisory or administrative services to other mutual funds or non-mutual fund clients. The Trustees also considered Green Century’s non-profit ownership structure, its cost structure and personnel needs, and its investment in shareholder advocacy to further the Funds’ stated intention to promote greater corporate environmental accountability. After reviewing the information described above, the Independent Trustees concluded that the fees specified in the Advisory Agreements, taking into account the costs of the services provided by the Adviser and the profitability to the Adviser of its relationships with the Funds, supported the continuance of the Advisory Agreements with respect to the Equity Fund and the Balanced Fund.
Other Benefits. With respect to fall-out benefits, the Trustees considered that neither Green Century nor any affiliate of Green Century receives any brokerage fees, soft dollar benefits, liquidity rebates from electronic communications networks or payments for order flow from the trades executed for either Fund. The Trustees noted that Green Century does potentially benefit from its relationship with the Funds due to the Funds’ reputation as the first family of no-load environmentally responsible mutual funds. Further, pursuant to the Advisory Agreements, Green Century has reserved for itself the rights to the names “Green Century Funds” and any similar names; thus, Green Century may benefit in the future from developing other funds or investment products with the Green Century brand. The Trustees concluded that the fall-out benefits to be realized by Green Century were appropriate and supported the continuance of the Advisory Agreements with respect to the Equity Fund and the Balanced Fund.
Economies of Scale. The Trustees also considered whether economies of scale could be realized by the Adviser as the Funds grew in asset size and the extent to which such economies of scale were reflected in the level of fees charged. They noted the relatively small size of each Fund and the resultant difficulty of achieving meaningful economies of scale. They considered that if the assets were to increase, the Funds could have the opportunity to experience economies of scale as fixed costs would become a smaller percentage of the Funds’ assets and some of the Funds’ service providers’ fees, as a percentage of the Funds’ assets, could decrease. The Trustees noted that the subadvisory fee structure for the Equity Fund included break-points and that the Equity Fund’s advisory fee would decrease as assets increased. The Trustees concluded that economies of scale could be realized as the Funds grew and that if assets increased significantly the Trustees would have opportunities to negotiate decreases in fees with the Adviser.
Based on a review of all factors deemed relevant, the Trustees, including the Independent Trustees, concluded that the Advisory Agreements with respect to the Balanced Fund and the Equity Fund should be continued for an additional one-year period.
INVESTMENT SUBADVISORY AGREEMENT WITH TRILLIUM ASSET MANAGEMENT CORPORATION RELATING TO THE BALANCED FUND
At the meeting on November 5, 2010, the Board of Trustees of the Balanced Fund, including a majority of the Independent Trustees, considered the continuance of the subadvisory agreement between the Trust, on behalf of the Balanced Fund, Green Century, and Trillium Asset Management Corporation (“Trillium”) (the “Subadvisory Agreement”). In connection with their deliberations at the meeting, and in separate executive session of the Independent Trustees, the Trustees considered, among other things, information provided by Trillium regarding the investment performance of the Balanced Fund, the subadvisory fees paid to Trillium, and the profitability to Trillium of its subadvisory relationship to the Balanced Fund. The Independent Trustees were assisted by independent counsel in considering these materials and the continuance of the Subadvisory Agreement. The Trustees considered all the
28
information provided to them by Trillium, including information provided throughout the year. In approving the continuance of the Subadvisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as determinative. Matters considered in connection with their approval of the Subadvisory Agreement included the following.
Nature, Quality, and Extent of Services Performed. The Trustees noted that under the terms of the Subadvisory Agreement, Trillium provided the day-to-day portfolio management of the Balanced Fund, including determining asset and sector allocation; conducting securities selection and discovery; researching and analyzing environmental policies and practices of companies and implementing the Balanced Fund’s environmental screening criteria; managing volatility, risk, and portfolio turnover; and investing the portfolio consistent with the Balanced Fund’s investment objective and policies. The Trustees considered the professional expertise, tenure, and qualifications of the portfolio management team and noted that Trillium was devoted exclusively to environmentally and socially responsible investing and managed approximately $900 million in assets. The Trustees also considered Trillium’s compliance record as well as the professional experience and responsiveness of Trillium’s compliance staff. The Trustees also considered Trillium’s leadership in social and environmental responsibility, including its shareholder advocacy efforts.
Based on its review of all of the services provided and to be provided, the Trustees concluded that the nature, quality and extent of services provided by Trillium supported the continuance of the Subadvisory Agreement.
Investment Performance. The Trustees reviewed and considered information regarding the investment performance of the Balanced Fund and comparative data with respect to the performance of mutual funds with similar investment objectives as well as other broad-based market indexes. The Trustees noted that as of the period ended September 30, 2010, the Balanced Fund’s one-, three-, five- and ten-year return had underperformed the Lipper Balanced Fund Index. Trillium became the Balanced Fund’s subadviser on November 28, 2005. The Trustees also considered the Balanced Fund’s decrease in volatility in the nearly five years since Trillium became the Balanced Fund’s subadviser. After considering all the factors deemed appropriate, the Trustees concluded that the performance of the Balanced Fund, together with Trillium’s investment process, philosophies and experience in environmentally and socially responsible investing, supported the continuance of the Subadvisory Agreement.
Costs of Services Provided and Profitability. The Trustees considered that the subadvisory fees paid by Green Century to Trillium under the Subadvisory Agreement were 0.40% of the value of the average daily net assets of the Balanced Fund up to $30 million, and 0.35% of the value of the average daily net assets of the Balanced Fund in excess of $30 million. The Trustees reviewed the subadvisory fees against comparative data for multiple categories of mutual funds presented in various categories: socially conscious funds, all balanced funds, and balanced funds of under $100 million in assets. The Trustees noted that, based on the information provided, the subadvisory fees were four basis points lower than the average subadvisory fees for all socially conscious funds, six basis points higher than the average of all balanced funds and 12 basis points higher than the average of balanced funds of under $100 million in assets. The Trustees also noted that the subadvisory fees are paid by Green Century, and are not in addition to the advisory fees paid to Green Century by the Balanced Fund.
In evaluating the profitability of the Subadvisory Agreement to Trillium, the Trustees noted that based on information provided by Trillium, the relationship was not profitable. The Trustees noted that Trillium stated that it would not realize a level of profitability similar to that of its other advisory clients on the management of the Balanced Fund until assets approach $100 million. The Trustees considered the financial resources Trillium dedicated and the other expenses Trillium incurred in providing subadvisory services to the Balanced Fund, including startup costs relating to the relationship, and additional personnel, legal, trading analysis and compliance costs required in the context of providing subadvisory services to a mutual fund. In considering the cost allocation methodology used by Trillium, the Trustees took under consideration that Trillium does not provide advisory or subadvisory services to other mutual fund clients.
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The Trustees also considered Trillium’s fee structure and noted, based on the information provided, that the subadvisory fees were lower than the fees Trillium charges its institutional separate account clients.
After reviewing the information described above, the Trustees concluded that the fees specified in the Subadvisory Agreement, taking into account the nature and quality of services provided and the costs of the services provided by Trillium, supported the continuance of the Subadvisory Agreement.
Other Benefits. The Trustees evaluated potential other benefits Trillium may realize from its relationship with the Balanced Fund. The Trustees considered the brokerage practices of Trillium, including the soft dollar commissions that were generated with respect to the Balanced Fund’s portfolio transactions. The Trustees considered that Trillium was not affiliated with a broker/dealer and therefore no benefit would be realized by Trillium through transactions with affiliated brokers. The Trustees also considered the reputational and other advantages Trillium may gain from its relationship with the Balanced Fund. The Trustees concluded that the benefits received by Trillium were reasonable in the context of the relationship between Trillium and the Balanced Fund, and supported the continuance of the Subadvisory Agreement.
Economies of Scale. The Trustees also considered whether economies of scale would be realized by Trillium as the Balanced Fund grew in asset size and the extent to which such economies of scale might be reflected in the subadvisory fees. They noted the relatively small size of the Balanced Fund and considered that if the assets were to increase, Trillium could have the opportunity to experience economies of scale. They also noted that pursuant to the Subadvisory Agreement, the subadvisory fees paid to Trillium by Green Century include a breakpoint at $30 million, so that fees as a percentage of net assets decrease as assets in the Balanced Fund increase. The Trustees concluded that economies of scale could be realized as the Fund grew, and that the fee schedule as specified was appropriate, and supported the continuance of the Subadvisory Agreement.
Based on a review of all factors deemed relevant, the Trustees, including the Independent Trustees, concluded that the Subadvisory Agreement should be continued for an additional one-year period.
INVESTMENT SUBADVISORY AGREEMENT WITH MELLON CAPITAL MANAGEMENT RELATING TO THE EQUITY FUND
Also at the meeting on November 5, 2010, the Board of Trustees of the Equity Fund, including a majority of the Independent Trustees, considered the continuance of the subadvisory agreement between the Trust, on behalf of the Equity Fund, Green Century, and Mellon Capital Management (“Mellon”) (the “Subadvisory Agreement”) through November 28, 2010. In connection with their deliberations at the meeting, and in separate executive session of the Independent Trustees, the Trustees considered, among other things, information provided by Mellon regarding the investment performance of the Equity Fund, including the success with which the Fund tracked the Index, the subadvisory fees paid to Mellon, and the profitability to Mellon of its subadvisory relationship to the Equity Fund. The Independent Trustees were advised by independent counsel in considering these materials and the continuance of the Subadvisory Agreement. The Trustees considered all the information provided to them by Mellon, including information provided throughout the year. In approving the continuance of the Subadvisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as determinative. Matters considered in connection with their approval of the Subadvisory Agreement included the following.
Nature, Quality, and Extent of Services Performed. The Trustees noted that under the terms of the Subadvisory Agreement, Mellon provided the day-to-day portfolio management of the Equity Fund, making purchases and sales of portfolio securities consistent with the Equity Fund’s investment objective and policies and with changes to the Index. The Trustees considered the professional expertise, tenure, and qualification of the portfolio management team for the Equity Fund, as well as the team’s experience in passive management. The Trustees also considered Mellon’s handling of daily inflows and outflows, transaction costs, tracking error, and the portfolio turnover rates for the Equity Fund. The
30
Trustees also considered Mellon’s compliance record as well as the professional experience and responsiveness of Mellon’s compliance staff.
Based on its review of all of the services provided, and taking into account that continuance of the Subadvisory Agreement was only being proposed through November 28, 2010, the Trustees concluded that the nature, quality and extent of services provided by Mellon supported the continuance of the Subadvisory Agreement.
Investment Performance. The Trustees considered that the Equity Fund follows a passive investment strategy designed to track the Index and therefore the analysis of its investment performance should be based on the extent to which the Equity Fund successfully tracked the Index. The Trustees reviewed the performance of the Equity Fund, exclusive of the expenses of the fund, as compared to that of the Index for the periods ended September 30, 2010. After considering all the factors deemed appropriate, the Trustees concluded that the performance of the Equity Fund together with Mellon’s investment process and experience in passive portfolio management supported the continuance of the Subadvisory Agreement, taking into account that continuance of the Subadvisory Agreement was only being proposed through November 28, 2010.
Costs of Services Provided and Profitability. The Trustees considered that the subadvisory fees paid by Green Century to Mellon were 0.08% of the value of the average daily net assets of the Equity Fund up to $100 million, 0.05% of the value of the average daily net assets of the Equity Fund from $100 to $500 million, 0.02% of the value of the average daily net assets of the Equity Fund from $500 million to $1 billion, and 0.01% of the value of the average daily net assets of the Equity Fund in excess of $1 billion, subject to a minimum fee of $50,000 per year. The Trustees reviewed and considered an analysis of the subadvisory fees against comparative data for multiple categories of mutual funds. The Trustees noted that, based on the information provided, the subadvisory fees paid to Mellon were lower than the average subadvisory fees paid to subadvisers of socially conscious funds, socially conscious growth and income funds, all growth and income funds and growth and income funds under $100 million in assets. The Trustees considered that the Equity Fund is an index fund, whereas many of the funds in the comparison groups are actively managed. The Trustees also noted that the subadvisory fees are paid by Green Century, and are not in addition to the advisory fees paid to Green Century by shareholders.
Green Century provided the Trustees with information prepared by Mellon related to the profitability of the Subadvisory Agreement. The Trustees considered the subadvisory fees and the financial resources Mellon dedicates and the other expenses it incurs in providing subadvisory services to the Equity Fund. In considering the cost allocation methodology used by Mellon, the Trustees noted that Mellon allocated its costs to all its clients equally although Mellon stated that passively managed accounts are less expensive to service than actively managed accounts. The Trustees noted that based on the information provided by Mellon, the relationship was not profitable to Mellon.
After reviewing the information described above, and considering that continuance of the Subadvisory Agreement was only being proposed through November 28, 2010, the Trustees concluded that the fees specified in the Subadvisory Agreement, taking into account the costs of the services provided by Mellon, supported the continuance of the Subadvisory Agreement. The Trustees also concluded that the fees specified in the Subadvisory Agreement were fair and reasonable in light of the usual and customary charges made by others for services of the same nature and quality.
Other Benefits. The Trustees evaluated other potential benefits Mellon may realize from its relationship with the Equity Fund. The Trustees considered the brokerage practices of Mellon, including Mellon’s policy that it does not execute transactions for client portfolios through any affiliated broker/dealer and thus no benefit would be realized by Mellon through transactions with affiliated brokers. The Trustees also considered that Mellon does not use trades for index portfolios for the generation of soft dollars, nor does Mellon receive liquidity rebates or payment for order flow from electronic communications networks associated with Equity Fund trades. The Trustees further considered the
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reputational and other advantages Mellon may gain from its relationship with the Equity Fund. The Trustees concluded that the benefits expected to be received by Mellon were reasonable in the context of the relationship between Mellon and the Equity Fund, and supported the continuance of the Subadvisory Agreement, taking into account that continuance of the Subadvisory Agreement was only being proposed through November 28, 2010,.
Economies of Scale. The Trustees also considered whether economies of scale would be realized by Mellon as the Equity Fund grew in assets and the extent to which such economies of scale might be reflected in the specified fee schedule. They noted the relatively small size of the Equity Fund and considered that if the assets were to increase, Mellon could have had the opportunity to experience economies of scale had Mellon continued as the subadvisor to the Equity Fund after November 28, 2010. They also noted that pursuant to the Subadvisory Agreement, the subadvisory fees specified paid to Mellon by Green Century include breakpoints at $100 million, $500 million, and $1 billion.
Based on the foregoing considerations, the Trustees, including the Independent Trustees, determined that the Subadvisory Agreement should be continued through November 28, 2010.
INVESTMENT SUBADVISORY AGREEMENT WITH NORTHERN TRUST INVESTMENTS, INC. RELATING TO THE EQUITY FUND
Also at the meeting on November 5, 2010, the Board of Trustees of the Equity Fund, including a majority of the Independent Trustees, considered the approval of the subadvisory agreement between the Trust, on behalf of the Equity Fund, Green Century, and Northern Trust Investments, Inc., (“Northern Trust”) (the “Subadvisory Agreement”), with an effective date of November 29, 2010. The Trustees had previously met on September 24, 2011 to consider preliminary information regarding appointment of Northern Trust, at which meeting they had the opportunity to interview representatives of Northern Trust and to request additional information.
In connection with their deliberations at the meeting, and in separate executive session of the Independent Trustees, the Trustees considered, among other things, information provided by Northern Trust regarding the nature, quality and extent of the services proposed to be provided by Northern Trust to the Fund; expenses of the Fund and the subadvisory fee proposed to be paid to Northern Trust; and the prospective profitability to Northern Trust of its proposed subadvisory relationship to the Equity Fund. The Independent Trustees were advised by independent counsel in considering these materials and the approval of the Subadvisory Agreement. The Trustees considered all the information provided to them by Northern Trust. The Trustees had previously been provided with a memorandum prepared by their independent counsel with respect to the applicable legal standards, including the factors to be considered, in connection with the Trustees’ review of the Subadvisory Agreement. In approving the Subadvisory Agreement at the meeting held on November 5, 2010, the Board, including the Independent Trustees, did not identify any single factor as determinative. Matters considered in connection with their approval of the Subadvisory Agreement included the following.
Nature, Quality, and Extent of Services To Be Performed. The Trustees noted that under the terms of the proposed Subadvisory Agreement, Northern Trust would provide day-to-day portfolio management of the Equity Fund, making purchases and sales of portfolio securities consistent with the Equity Fund’s investment objective and policies and with changes to the Index. The Trustees reviewed the terms of the Northern Trust Subadvisory Agreement and noted that, except for the parties and the fees, the terms and conditions were substantially the same in all material respects as the terms and conditions of the subadvisory agreement between the Trust, on behalf of the Equity Fund, Green Century, and Mellon (the “Mellon Subadvisory Agreement”). The Trustees considered Northern Trust’s professional expertise, tenure, and qualification of the portfolio management team for the Equity Fund, as well as the team’s experience in passive management. The Trustees also considered Northern Trust’s compliance policies and procedures and compliance record as well as the professional experience and responsiveness of Northern Trust’s compliance staff.
Based on their review of all the services proposed to be provided, the Trustees concluded that Northern Trust had the capabilities, resources and personnel necessary to provide subadvisory services to the Equity Fund, and concluded that
32
the nature, quality and extent of services to be provided by Northern Trust supported the approval of the Subadvisory Agreement.
Investment Performance. The Trustees considered that the Equity Fund follows a passive investment strategy designed to track the Index and therefore the analysis of its prospective investment performance should be based on the Trustees’ analysis of the extent to which Northern Trust will be able to manage the Equity Fund to successfully track the Index. The Trustees reviewed information provided by Northern Trust, including performance information on other portfolios managed by Northern Trust which track established indexes. The Trustees noted that such other portfolios closely tracked their respective indexes. After considering all the factors deemed appropriate, the Trustees concluded that Northern Trust’s experience in managing portfolios with passive investment strategies supported the approval of the Subadvisory Agreement.
Costs of Services To Be Provided and Profitability. The Trustees considered the proposed subadvisory fees to be paid to Northern Trust by Green Century and the prospective profitability and fall-out benefits to Northern Trust from the proposed arrangement with the Equity Fund. The Trustees reviewed and considered an analysis of the proposed subadvisory fee compared to the subadvisory fees paid by other mutual funds with similar investment objectives and strategies as the Equity Fund. The Trustees noted that, based on the information provided, the proposed subadvisory fees to be paid to Northern Trust were lower than the average subadvisory fees paid by other socially responsible mutual funds, lower than the average subadvisory fees paid by growth and income funds, and higher than the average subadvisory fees paid by growth and income index funds. The Trustees noted that the fees proposed in the Agreement were subject to a minimum annual amount at current asset levels, and that at higher asset levels the subadvisory fee would be comparable with the average subadvisory fees paid by growth and income index funds. The Trustees also considered that the proposed subadvisory fee would be paid by Green Century and not by the Equity Fund.
The Trustees also compared the proposed subadvisory fees to be paid by Green Century to Northern Trust against the subadvisory fees paid by Green Century to Mellon. The Trustees noted that the fee schedule in both the Northern Trust Subadvisory Agreement and the Mellon Subadvisory Agreement included breakpoints and reduced fee rates above certain asset levels, and that the fees payable under each agreement were subject to a minimum annual amount at current asset levels. The Trustees considered that the fees to be paid to Northern Trust would be higher than the fees paid to Mellon at current asset levels and at asset levels over $500 million, but lower than fees paid to Mellon at asset levels between $100 million and $500 million.
Northern Trust provided the Trustees with information regarding the prospective profitability of the Northern Trust Subadvisory Agreement to Northern Trust. In that regard, the Trustees considered information regarding the expenses that would be incurred by Northern Trust in providing subadvisory services to the Equity Fund. The Trustees considered that Northern Trust projected a profit after incurring direct costs only though not necessarily after allocating indirect costs at current asset levels of the Equity Fund. The Trustees also considered Northern Trust’s fee structure and reviewed data to compare the proposed subadvisory fee to the subadvisory fees paid by other mutual funds subadvised by Northern Trust with similar investment objectives and strategies as the Equity Fund. The Trustees noted that the proposed subadvisory fees to be paid to Northern Trust were within the range of fees paid by such funds to Northern Trust.
After reviewing the information described above, the Trustees concluded that the fees proposed in the Subadvisory Agreement, taking into account the costs of the services provided by Northern Trust and the profitability to Northern Trust of its proposed relationship with the Equity Fund, supported the approval of the Subadvisory Agreement. The Trustees also concluded that the fees proposed in the Subadvisory Agreement were fair and reasonable in light of the usual and customary charges made by others for services of the same nature and quality.
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Other Benefits. The Trustees evaluated potential other benefits Northern Trust may realize from its relationship with the Equity Fund. The Trustees considered the brokerage practices of Northern Trust, including Northern Trust’s policy that it does not execute transactions for client portfolios through its affiliated broker/dealer unless directed to do so by a client. Green Century advised the Board that it will not direct that any Equity Fund transactions be executed through a Northern Trust affiliated broker/dealer; thus neither Northern Trust nor its affiliates would receive brokerage fees due to its relationship with the Equity Fund. The Trustees also considered that Northern Trust does not use trades for index portfolios for the generation of soft dollar benefits, nor does Northern Trust receive liquity rebates or payment for order flow from electronic communications networks associated with Equity Fund trades. The Trustees further considered the reputational and other advantages Northern Trust may gain from its relationship with the Equity Fund. The Trustees concluded that the benefits expected to be received by Northern Trust were reasonable in the context of the proposed relationship between Northern Trust and the Equity Fund, and supported the approval of the Subadvisory Agreement.
Economies of Scale. The Trustees also considered whether economies of scale would be realized by Northern Trust as the Equity Fund grew in assets and the extent to which such economies of scale might be reflected in the proposed fee schedule. They noted the relatively small size of the Equity Fund and considered that if the assets were to increase, Northern Trust could have the opportunity to experience economies of scale. They also noted that pursuant to the proposed Subadvisory Agreement, the subadvisory fees proposed to be paid to Northern Trust by Green Century include breakpoints at $50 million and $100 million. The Trustees concluded that the fee schedule as proposed was appropriate at the present time, in light of the Fund’s current size, and supported the approval of the Subadvisory Agreement.
Based on the foregoing considerations, the Trustees, including a majority of the Independent Trustees, determined that the Subadvisory Agreement should be approved and submitted to the Equity Fund’s shareholders for approval. The Trustees also noted that they would consider continuance of the Subadvisory Agreement prior to expiration of its initial two-year term and annually thereafter.
RESULTS OF THE SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of shareholders of the Green Century Equity Fund was held on March 22, 2011 to consider the proposal below. The proposal was approved. Shareholders of record as of January 14, 2011 were entitled to vote. The results of the vote at the meeting were as follows:
1. | To approve an Investment Subadvisory Agreement with Northern Trust Investments, Inc. |
AFFIRMATIVE | AGAINST | ABSTAIN | TOTAL | |||||||||||||
1,358,453 | 17,063 | 46,557 | 1,422,073 |
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PRIVACY POLICY
The Green Century Funds respect the privacy of our shareholders and customers. Our policy is to safeguard the personal information you have entrusted to us.
We collect nonpublic personal and financial information from you for the purpose of opening and maintaining a Green Century Funds shareholder account. The information we collect may include your name, address, Social Security Number, birth date, telephone number, email address, and/or bank account number. This information may come from your request for Green Century literature, your account registration forms, transactions in your account and other correspondence.
We do not sell any information about our current or former customers to third parties. Green Century may share your personal and financial information with third parties only:
• | When authorized by you. |
• | As required or otherwise permitted by law. |
• | To process transactions and service your account. |
The third parties with whom we may share your personal and financial information, as described above, may include:
• | Affiliated and non-affiliated service providers (for example, the Funds’ Transfer Agent and printing and mailing providers who process transactions and service your account); |
• | Government agencies, other regulatory bodies and law enforcement officials (for example, for tax purposes or for reporting suspicious transactions); and, |
• | Other organizations, as permitted by law (for example, for fraud prevention). |
Our contracts with service providers require them to maintain the confidentiality of your information.
Green Century restricts access to nonpublic personal and financial information about you to those employees who need to know that information in order to provide products or services to you. We require our employees to guard the confidentiality of your information and we maintain policies and procedures to safeguard your nonpublic personal and financial information.
Privacy Online. Just as we protect your personal and financial information collected on account registration forms and other correspondence, we also employ security measures to protect your information while you view your account or conduct transactions online. Our online account access website provides a secure platform to prevent unauthorized access to your information. Your Internet browser provides additional security by allowing us to use Secure Socket Layer (SSL) encryption up to 128-bit length encryption (the most secure system currently available) when transmitting your information. In an effort to provide the highest degree of security for your information, we strongly recommend the use of 128-bit encryption browsers. Versions of Mozilla 2.0 and higher, and Microsoft Internet Explorer 6.0 and higher provide this level of security.
Encryption is the process for scrambling your identification and account information as it passes between our system and your computer. The encryption process is built into most Internet browsers. The larger the number of bits for encryption (e.g. 40 or 128) the more difficult (exponentially) it is for an unauthorized person to unscramble the transmission. The highest level of encryption commercially available is 128-bit and is what we recommend to access your information.
Notice. Green Century will provide you notice of our Privacy Policy annually, as long as you maintain an account with us. Green Century reserves the right to make changes to this policy. We will notify you in writing before we make changes that affect the way we collect and share your information. If you have chosen to receive Green Century documents electronically, we will provide notification to you via email. We will notify you through periodic updates of our Privacy Policy online when we make changes that affect the security measures we employ to protect your information while viewing your account information or conducting transactions online.
Should you have questions, please telephone us at 1-800-93-GREEN.
This Privacy Policy applies to the Green Century Funds and Green Century Capital Management, Inc. (7/09)
The Green Century Funds Privacy Policy is not a part of the Semi-Annual Report.
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Semi-Annual Report
INVESTMENT ADVISER AND ADMINISTRATOR
Green Century Capital Management, Inc.
114 State Street
Boston, MA 02109
1-800-93-GREEN
www.greencentury.com
info@greencentury.com
INVESTMENT SUBADVISER (Balanced Fund)
Trillium Asset Management Corporation
711 Atlantic Avenue
Boston, MA 02111
INVESTMENT SUBADVISER (Equity Fund)
Northern Trust Investments, Inc.
50 South LaSalle Street
Chicago, IL 60603
SUBADMINISTRATOR and DISTRIBUTOR
UMB Fund Services, Inc. (Subadministrator)
UMB Distribution Services, LLC (Distributor)
803 West Michigan Street, Suite A
Milwaukee, WI 53233
CUSTODIAN
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
Huntington Asset Services, Inc.
2960 North Meridian Street, Suite 300
Indianapolis, IN 46208
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
Two Financial Center
60 South Street
Boston, MA 02111
January 31, 2011
Balanced
Fund
An investment for your future.
Printed on recycled paper with soy-based ink. |
| Equity Fund |
|
Item 2. Code of Ethics
Not applicable to semi-annual reports.
Item 3. Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4. Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Included as part of the report to shareholders filed under item 1 of this Form N-CSR
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures
(a) | Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended, the “Disclosure Controls”) as of a |
date within 90 days of the filing date (the “Filing Date”) of this Form N-CSR (the “Report”), the registrant’s principal executive officer and principal financial officer have concluded that the Disclosure Controls are effectively designed to ensure that information that is required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant’s management, including the registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures. |
(b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30 a-3(d) under the Investment Company Act of 1940) that occurred during the fiscal period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits
(a)(1) | Not applicable. | |
(2) | Certifications for each principal executive and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, (17 CFR 270.30a-2(a)) are filed herewith. | |
(b) | Certifications required by Rule 30a-2 (b) under the Investment Company Act of 1940, as amended, (17 CFR 270.30a-2 (b)) are filed herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Green Century Funds
/s/ Kristina A. Curtis
Kristina A. Curtis
President and Principal Executive Officer
April 8, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Kristina A. Curtis
Kristina A. Curtis
President and Principal Executive Officer
April 8, 2011
/s/ Kristina A. Curtis
Kristina A. Curtis
Treasurer and Principal Financial Officer
April 8, 2011