N-CSR 1 d449692dncsr.htm GREEN CENTURY FUNDS Green Century Funds

 

 

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: July 31, 2017

 

 

 

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).

 

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ANNUAL REPORT

Green Century Balanced Fund

Green Century Equity Fund

Green Century International Index Fund

July 31, 2017

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:

The responsible investing movement that Green Century helped start over 25 years ago has grown significantly. One out of every five dollars of professionally managed assets in the U.S. is now invested with consideration of environmental, social and governance factors, according to the U.S. Forum for Sustainable and Responsible Investment (US SIF).1

Whether you are a long-time investor with Green Century or have recently started investing in our Funds, you are part of a movement that is being joined by investors around the globe every day. All of you have chosen to use the power of investing to create change and we are proud to be your partners in this endeavor.

Green Century’s three-pronged approach to sustainable investing offers you a way to make a difference in a way that no other environmentally or socially responsible mutual fund family can. In this Annual Report, we share some highlights from the past year on how you make a difference through your investments with Green Century.

Investing with Your Values

All of Green Century’s mutual funds avoid the most environmentally dangerous corporations and instead invest in companies with outstanding ratings on environmental, social and governance factors. Our newest Fund, the Green Century MSCI International Index Fund, extends our fossil fuel free offerings and provides a way for shareholders to invest in international environmental leaders, such as Vestas Wind Systems,2 the only global energy company dedicated exclusively to wind power. Vestas Wind System turbines account for 16% of global wind production, making it a worldwide leader in the effort to move away from dirty fossil fuels and adopt renewable energy sources for a safer and more sustainable future.

The Green Century International Index Fund provides shareholders the opportunity to invest in companies such as Vestas while diversifying your portfolio by choosing a Fund that invests in companies outside the U.S. The Fund will invest in companies chosen for their outstanding environmental, social and governance ratings in about 22 developed countries. Its ticker symbols are GCINX for the Fund’s Individual Investor Share Class and GCIFX for the Fund’s Institutional Share Class.

Leading Shareholder Advocacy Program

Even corporate sustainability leaders have room for improvement, which is why Green Century works with dozens of companies each year to improve their environmental policies, including the policies of companies in their supply chains. We believe that when companies protect the environment, the communities in which they operate, and public health, they may avoid brand and reputational damage, which can protect shareholder interests. Also, given the current rollback and attacks on our environmental laws, advances in company practices are a powerful force for positive change.

Through our Forest Protection Campaign, we are reducing carbon emissions, protecting habitats of endangered species and promoting sustainable agricultural practices in the growing of palm oil, soy and other key commodities. Green Century began this campaign five years ago and has helped transform the palm oil industry by working with the world’s largest palm oil producers and traders to stop burning down rainforests to create palm oil plantations. This summer, one of Green Century’s shareholder advocates, Kate Kroll, traveled to Jakarta to represent Green Century, the only U.S. investor invited to meet with the world’s biggest palm oil producers to ensure that their zero-deforestation agreements are being implemented in Southeast Asia. Kate is pictured below on a tour of a palm oil plantation owned by Wilmar,2 the world’s largest palm oil trader. Wilmar’s zero-deforestation palm oil policy will keep 1.5 gigatons of carbon pollution out of the air by 2020.

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Supporting Environmental and Public Health Organizations

100 percent of the profits Green Century Capital Management earns managing our Funds support non-profit environmental and public health advocacy organizations. We do that through our unique ownership structure—Green Century Capital Management is the only mutual fund company founded and owned by

 

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environmental non-profit organizations. Most recently these organizations, the Public Interest Research Groups, have been working to protect the effectiveness of life-saving antibiotics by convincing Subway2 and KFC2 to serve antibiotic free chicken.

Thank you for using your investments to make a difference and for choosing Green Century. We appreciate your support and are always here to answer your questions.

We also want to share more of the ways you are making an impact through our free online newsletter. You can sign up by visiting www.greencentury.com, emailing us at info@greencentury.com or calling us at 1-800-934-7336.

Respectfully,

Leslie Samuelrich, President

Green Century Capital Management

 

Green Century on the Web

E-News.     For more regular updates on the Green Century Funds and on our advocacy efforts, please consider signing up for our e-newsletter. Call 1-800-934-7336, visit www.greencentury.com, or email info@greencentury.com.

Online Access.    Information on your account is available on our website at www.greencentury.com. From the home page, click on Access My Account. Shareholders may also perform online transactions on the site. While there, please consider registering for e-delivery of your statements and other fund documents.

Twitter.    Green Century is on Twitter. Follow us at Twitter.com/Green__Century for a sustainable investor’s perspective on critical issues.

 

The Green Century Funds’ proxy voting guidelines and a record of the Funds’ proxy votes for the year ended June 30, 2017 are available without charge, upon request, (i) at www.greencentury.com, (ii) by calling 1-800-934-7336, (iii) by 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 us at 1-800-934-7336, or by e-mailing a request to info@greencentury.com.

 

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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE GREEN CENTURY MSCI INTERNATIONAL INDEX FUND

Investment Objective    The Green Century MSCI International Index Fund (the International Fund or the Fund) seeks to achieve long-term total return that matches the performance of an index comprised of the stocks of foreign companies selected based on environmental, social and governance criteria.

Portfolio Orientation    The Fund seeks to achieve its objective by investing in the stocks included in the MSCI World ex USA SRI ex Fossil Fuels Index3 (the Index), a custom index calculated by MSCI, Inc. The Index is comprised of the common stocks of the approximately 239 companies in the MSCI World ex USA SRI Index,4 minus the stocks of the companies that explore for, extract, process, refine or distribute coal, oil or gas. The Index also does not include companies that produce or transmit electricity derived from fossil fuels, transmit natural gas, or own carbon reserves.

The International Fund is the only responsible, diversified fossil fuel free international index fund available in the U.S. The Fund is also broadly diversified and responsibly screened. Like other index funds, the International Fund is not actively managed in the traditional investment sense, but rather seeks to be nearly fully invested at all times in a broad and diverse portfolio of stocks which meet certain environmental, social and governance criteria.

The Fund invests in the stocks of companies selected for inclusion in the Index based on a thorough review of environmental, social, and governance factors and includes those companies believed to have the best overall sustainability records. Green Century believes that certain industries impose unique and onerous risks and/or costs on society. Companies involved in these industries are evaluated based on their level of involvement as well as the impact of that involvement on society. Therefore, companies that derive significant revenues from the manufacture of tobacco products,

 

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND

INVESTMENT BY COUNTRY (unaudited)

 

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alcoholic beverages, genetically modified organisms (GMOs), or the operation of gambling enterprises; or have a significant direct ownership share in, operate or design nuclear power plants are not eligible for the Index. Major military contractors and firearms manufacturers are also ineligible. The Index excludes all companies that explore for, extract, produce, manufacture, or refine coal, oil or gas. The Index also does not include companies that produce or transmit electricity derived from fossil fuels, transmit natural gas, or own carbon reserves.

Investment Strategy and Performance    Green Century believes that companies that minimize their negative social and environmental impact and follow governance standards could enjoy competitive advantages and be less likely to incur certain legal liabilities that may be assessed when a product or service is determined to be harmful. Green Century also believes that such investments may, over the long term, provide investors with a return that is competitive with enterprises that do not exhibit such social and environmental awareness.

The International Fund’s total return for the calendar year to date ended July 31, 2017 was 17.75% for the individual share class and 17.91% for the institutional share class, while the MSCI World ex USA Index returned 16.18% for the same period. Additional results for various time periods are below:*

 

          CUMULATIVE RETURN*  
         Inception Date:
September  30, 2016		  

Green Century MSCI International Fund

Total expense ratio: 1.28% for Individual Share Class and 0.98% for Institutional Share Class

  

Calendar

Year to
Date

     Since
Inception		  
June 30, 2017   Green Century MSCI International Index Fund — Individual Share Class     14.11%       10.65%  
    Green Century MSCI International Index Fund — Institutional Share Class     14.26%       10.83%  
    MSCI World ex USA Index     12.82%       12.41%  
July 31, 2017   Green Century MSCI International Index Fund — Individual Share Class     17.75%       14.18%  
    Green Century MSCI International Index Fund — Institutional Share Class     17.91%       14.36%  
    MSCI World ex USA Index     16.18%       15.76%  

* 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 Fund prices and performance information as of the most recent month-end, call 1-800-93-GREEN/1-800-934-7336. Performance includes the reinvestment of income dividends and capital gains 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. Please see the prospectus for more information.

For the fiscal period ended July 31, 2017, the International Fund’s performance relative to the MSCI World ex USA Index was hindered by stock selection in the Consumer Discretionary and Industrials sectors. The Fund also had relatively lower exposure to the stronger performing Materials and Information Technology sectors. In addition, the Fund was hurt by exposure to companies in France and the Netherlands.

The Fund’s performance was helped relative to the MSCI World ex USA Index because of its lower exposure to the Telecommunication Services and Health Care sectors, which were among the worst-performing sectors of the MSCI World ex USA Index during the period. The Fund was also helped by exposure to companies in Denmark, Singapore, and Switzerland.

For the calendar year to date period ended July 31, 2017, both share classes of the International Fund performed above the MSCI World ex USA Index, outperforming by more than 1.5%. As the MSCI World ex USA SRI ex Fossil Fuels Index does not include all of the stocks in the MSCI World ex USA Index, the

 

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performance of the Fund can be expected to differ from the performance of its benchmark. The difference in performance of the International Fund relative to the Index was largely due to differences in sector allocation and stock selection criteria between the Fund and the Index.

According to the Fund’s subadvisor, global equity returns have remained strong during the first part of 2017, with growth oriented securities outpacing value securities. The economies within the global developed markets continue to improve with advances in German manufacturing production and Japanese industrial production and vehicle sales. To date, the economic improvements have not led to a significant increase in inflation or interest rates. These positive factors suggest the global economy is improving, which has lifted investor sentiment.

The International Fund, like many other mutual funds invested primarily in stocks, carries the risk of investing in the stock market. The large companies in which the International Fund is invested may perform worse than the stock market as a whole. The developed ex-U.S. equities in which the International Fund is invested may also perform worse than the stock market as a whole. Foreign securities are subject to additional risks such as currency fluctuations, regional economic and political conditions, differences in accounting methods, and other unique risks compared to investing in securities of U.S. issuers. The International 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. The Fund’s environmental criteria limit the investments available to the Fund compared to mutual funds that do not use environmental criteria.

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The MSCI World ex USA Index is a custom index calculated by MSCI Inc. The MSCI World ex USA Index includes large and mid-cap stocks across 22 of 23 Developed Markets (DM) countries and excludes the United States. With 1,023 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI World ex USA Index is a free float-adjusted market capitalization index. Unlike the Fund, the MSCI World ex USA Index’s performance does not include management and other operating expenses. It is not possible to invest directly in an index.

 

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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

GREEN CENTURY EQUITY FUND

Investment Objective    The Green Century Equity Fund (the Equity Fund or the Fund) seeks to achieve long-term total return that matches the performance of an index comprised of the stocks of companies selected based on environmental, social and governance criteria.

Portfolio Orientation    The Fund seeks to achieve its objective by investing in the stocks which make up the MSCI KLD 400 Social ex Fossil Fuels Index5 (the KLD400 ex Fossil Fuels Index or the Index), a custom index calculated by MSCI, Inc. The KLD400 ex Fossil Fuels Index is comprised of the common stocks of the approximately 400 companies in the MSCI KLD 400 Social Index (the KLD400 Index), minus the stocks of the companies that explore for, extract, produce, manufacture, or refine coal, oil or gas that are included in

the KLD400 Index. The Index also does not include companies that produce or transmit electricity derived from fossil fuels, transmit natural gas, or own carbon reserves.

The KLD400 Index, formerly named the Domini 400 Social Index, is the longest-running socially responsible index. Like other index funds, the Equity Fund is not actively managed in the traditional investment sense, but rather seeks to be nearly fully invested at all times in a broad and diverse portfolio of stocks which meet certain environmental, social and governance criteria. The Equity Fund, like many 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 Fund’s environmental criteria limit the investments available to the Fund compared to mutual funds that do not use environmental criteria.

The Fund invests in the stocks of companies selected for inclusion in

 

GREEN CENTURY EQUITY FUND

INVESTMENT BY INDUSTRY (unaudited)

 

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the Index based on a thorough review of environmental, social, and governance factors and includes those companies believed to have the best overall sustainability records. Green Century believes that certain industries impose unique and onerous risks and/or costs on society. Companies involved in these industries are evaluated based on their level of involvement as well as the impact of that involvement on society. Therefore, companies that derive significant revenues from the manufacture of tobacco products, alcoholic beverages, genetically modified organisms (GMOs), or the operation of gambling enterprises; or have a significant direct ownership share in, operate or design nuclear power plants are not eligible for the Index. Major military contractors and firearms manufacturers are also ineligible. The Index excludes all companies that explore for, extract, produce, manufacture, or refine coal, oil or gas. The Index also does not include companies that produce or transmit electricity derived from fossil fuels, transmit natural gas, or own carbon reserves.

Investment Strategy and Performance    Green Century believes that companies that minimize their negative social and environmental impact and follow governance standards could enjoy competitive advantages and be less likely to incur certain legal liabilities that may be assessed when a product or service is determined to be harmful. Green Century also believes that such investments may, over the long term, provide investors with a return that is competitive with enterprises that do not exhibit such social and environmental awareness.

The Equity Fund’s total return calendar year to date for the period ended July 31, 2017 was 12.92%, while the S&P 500® Index6 returned 11.59% for the same period. Additional results for various time periods are below:*

 

Green Century Equity Fund

Total expense ratio: 1.25%

   CUMULATIVE
RETURN*		     AVERAGE ANNUAL RETURN*  
 

Calendar

Year to Date

     One Year     Five Years     Ten Years  
June 30, 2017   Green Century Equity Fund     10.51%       17.94%       14.10%       6.57%  
    S&P 500® Index     9.34%       17.90%       14.63%       7.18%  
July 31, 2017   Green Century Equity Fund     12.92%       15.42%       14.45%       7.12%  
    S&P 500® Index     11.59%       16.04%       14.78%       7.74%  

* 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 Fund prices and performance information as of the most recent month-end, call 1-800-93-GREEN/1-800-934-7336. Performance includes the reinvestment of income dividends and capital gains 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. Please see the prospectus for more information. As of April 1, 2014, the Equity Fund invests in the common stocks which make up the MSCI KLD 400 Social ex Fossil Fuels Index; prior to April 1, 2014, the Fund invested in the common stocks which made up the MSCI KLD 400 Social Index.

For the year ended July 31, 2017, the performance of the Fund, relative to the S&P 500® Index, was most helped by not owning the low performing Energy sector. The relative performance of the Fund was also helped by the Fund’s stock selection within the Consumer Discretionary and Industrials sectors as well as its low exposure to the Utilities sector, owning only one water utility.

The strongest performing sectors in the Equity Fund and the S&P 500® Index for the year ended July 31, 2017 were Financials, Information Technology, and Industrials. The worst performing sectors in the Equity

 

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Fund were Telecommunication Services, Real Estate, and Consumer Staples. In the S&P 500® Index, the Energy sector underperformed the Consumer Staples sector.

For the calendar year to date period ended July 31, 2017, the Equity Fund outperformed the S&P 500® Index by more than one percent. As the MSCI KLD 400 Social ex Fossil Fuels Index does not include all of the stocks in the S&P 500® Index and includes some stocks not included in the S&P 500® Index, the performance of the Fund can be expected to differ from the performance of the broader benchmark.

According to the Fund’s subadvisor, in the U.S., the first part of 2017 saw the S&P 500® Index reach all-time highs. Investors remained positive on the market despite numerous concerns: legislation delays on health care and tax overhaul bills, weak first quarter GDP (gross domestic product) numbers, and a 0.25% increase in interest rates. The Federal Reserve increased short-term rates by 25 basis points late in June, from 1.00% to 1.25%. The Federal Reserve’s projections still call for additional rate hikes in 2017 and 2018. Overall, economic data supported the market increases as industrial production continues to improve, inflation remains low, and unemployment declined to 4.3%.

 

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The S&P 500® Index is an unmanaged index of 500 stocks. Similar to the Equity Fund, the S&P 500® Index’s performance reflects reinvestment of dividends and distributions. Unlike the Fund, however, the S&P 500® Index’s performance does not include management and other operating expenses. It is not possible to invest directly in an index.

 

 

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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

GREEN CENTURY BALANCED FUND

Investment Objective    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 responsibility.

Portfolio Orientation    As of the fiscal year ended July 31, 2017, the Green Century Balanced Fund (the Balanced Fund or the Fund) was diversified in a number of ways. Equity holdings represented 63.3% and bonds constituted 32.0% of the Fund’s net asset value. The Fund also held 0.1% of its net assets in community investment certificates of deposit and had 4.6% invested in cash, cash equivalents, and other assets, less liabilities. The Fund’s portfolio managers view equities as the primary source of potential long-term growth, while emphasizing the importance of diversification in seeking to lower volatility. The Fund’s equity holdings were diversified across 81 equity holdings at fiscal year-end, none of which

represented more than 2.6% of total net assets. Generally, larger, less-volatile companies constitute larger positions in the Fund’s portfolio than smaller companies. The portfolio managers seek to mitigate risk by investing primarily in companies they believe have demonstrated records of profitability, above-average growth prospects and reasonable valuations.

As of July 31st, the stocks held by the Balanced Fund were also diversified by industry, with (as a percent of total net assets) Software & Services (9.7%), Healthcare Equipment & Services (5.9%), and Banks (5.2%) as the largest sectors.

In line with its environmental mandate, the Fund had exposure to what Green Century considers environmental leaders in a number of industries including Healthy Living, Capital Goods and Transportation. Green Century’s environmental screens keep the Fund out of

 

GREEN CENTURY BALANCED FUND

INVESTMENT BY INDUSTRY (unaudited)

 

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traditional Energy and Utility companies, while the Fund has broad exposure to Information Technology, Health Care, Financial, Consumer, and Industrial companies.

In addition to its equity exposure to environmental leaders, the Fund invests in designated Green Bonds. The issuers of Green Bonds have indicated that the proceeds from the bonds will be used for such environmentally positive goals as greenhouse gas reduction, climate adaptation, and climate change mitigation. As of July 31st, 18.6% of the total portfolio and 58.2% of the market value of the bonds held in the Fund were designated Green and Sustainability Bonds.

Higher quality, intermediate maturity bonds can typically lower volatility and provide a stable source of income. At fiscal year end, the Balanced Fund held 56 bonds diversified across corporate and government agency issuers. In an effort to dampen volatility, the weighted average maturity (3.85 years) and duration (3.35 years) remained in the intermediate-range. The weighted average yield to maturity was 2.08%. The Fund’s portfolio managers deem two of the current fixed income holdings, a Symantec2 4.2% bond due 9/15/2020 and an EMC2 1.875% bond due 6/1/2018 (now a subsidiary of Dell Corp.2), to be below investment grade, although both were above investment grade at the time of purchase. These two bonds comprised 1.00% of total portfolio assets as of July 31, 2017, and at this time the portfolio managers are comfortable continuing to hold them until maturity. All other fixed income holdings are either rated BBB- or higher by S&P, are backed by the U.S. government, or are issued by supra-national agencies with AAA equivalent ratings.

Economic Environment.    According to the Fund’s subadvisor, eight years into the economic recovery following the financial crisis, the U.S. economy struggles to maintain growth over 2.5%. Inflation rates remain persistently below the Federal Reserve’s policy target of 2%. The unemployment rate has dropped to 4.3%, indicating that there is limited labor market slack. The November 2016 Presidential election led to widespread business and consumer expectations that the Trump administration would follow very pro-growth policies, including cutting taxes and reducing regulations. As a result, measures of both consumer confidence and business confidence increased, and the stock market rallied on the expectation of lower taxes and a faster-growing economy. While those expectations remain high, economic growth, consumer spending, and business investment have yet to expand, leaving economic growth below 2.5% and building in downside risk for the equity markets. The Fund’s portfolio managers anticipate that the Federal Reserve will continue to increase interest rates gradually, balancing its response to address both persistently low inflation rates and a tightening labor market. In this rising-rate environment, current valuations for U.S. stocks look more attractive than either bonds or cash. At the same time, stocks appear expensive relative to the persistently slow outlook for economic growth, and the Fund’s portfolio managers believe that current stock market valuations also present significant risks.

Investment Strategy and Performance.    Green Century believes that strong environmental, social, and governance practices may enhance corporate profitability and reduce certain types of risks. We specifically avoid risks associated with exposure to fossil fuels. Green Century believes that companies with strong balance sheets, strategic leadership in their products and markets, and strong environmental, social, and governance policies will have the financial flexibility and leadership wisdom to navigate choppy and volatile economic conditions.

 

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The Balanced Fund holds a number of stocks which the portfolio managers believe have attractive environmental, social, and financial characteristics. New holdings over the period include American Water Works,2 the largest and most geographically diverse publicly traded water and wastewater utility company in the U.S., as measured by both operating revenues and population served. The company provides drinking water, wastewater, and other related services to an estimated 15 million people in 47 states, D.C., and Ontario, Canada. Federal Realty Trust2 is a REIT (real estate investment trust) that was also added to the Balanced Fund. It has created a program focused on increased environmental sustainability called “Green Box,” designed to incorporate sustainable building practices into the redevelopments of existing properties as well as new construction projects.

The Fund holds over $41 million in Green and Sustainability Bonds and Notes, including notes issued by Bank of America,2 Export Import Bank of Korea,2 International Finance Corp.,2 International Bank for Reconstruction and Development (World Bank),2 Regency Centers LP,2 Vornado Realty,2 and Overseas Private Investment Corp.2

For the year ending July 31, 2017, the Balanced Fund’s return was 9.07%, slightly underperforming the 9.41% return for its Custom Balanced Index.7 The slight underperformance reflects the allocation of the Fund between stocks, bonds, and cash. In late September of 2016, the Fund’s portfolio managers moved to a slightly more cautious positioning, reflecting their belief that the level of risk in the equity market had risen. As a result, the Fund had a somewhat lower exposure to stocks at the time of the Presidential election, and did not fully participate in the sharp run-up in equity prices after the election. In the view of the Fund’s portfolio managers, valuations in the stock market continue to be high, and are not fully supported by underlying economic conditions; thus the portfolio managers have not increased the percentage allocation to stocks.

For the calendar year to date period ending July 31, 2017, the Balanced Fund’s returns were 8.19%, slightly outperforming the 7.40% of the Custom Balanced Index,7 an index comprised of the S&P 1500 Index8 (60% weighting) and of the BofA Merrill Lynch 1-10 Year US Corporate and Government Index9 (40% weighting).

 

Green Century Balanced Fund

Total expense ratio: 1.48%

   CUMULATIVE
RETURN*		     AVERAGE ANNUAL RETURN*  
  Calendar
Year to Date		     One Year     Five Years     Ten Years  
June 30, 2017    Green Century Balanced Fund     7.22%       12.45%       9.23%       5.09%  
     Custom Balanced Index     5.98%       10.52%       9.51%       6.26%  
July 31, 2017    Green Century Balanced Fund     8.19%       9.07%       9.55%       5.47%  
     Custom Balanced Index     7.40%       9.41%       9.56%       6.58%  

* 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 Fund prices and performance information as of the most recent month-end, call 1-800-93-GREEN/1-800-934-7336. 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. Please see the prospectus for more information.

 

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A comparison of the Fund’s equity holdings to the S&P 1500 Supercomposite Index (the S&P 1500), which like the Fund includes stocks across a range of capitalizations, provides some insight into relative performance. For the fiscal year ended July 31, 2017, on a gross-of-fee basis, the stocks held by the Balanced Fund outperformed those included in the S&P 1500, 16.75% versus 16.00%.

The Fund’s outperformance relative to the equity market, as represented by the S&P 1500 Index returns, is primarily based on positioning the portfolio toward a slow to moderate growth economy with rising interest rates. During the past twelve months, performance attribution analysis provided by the Fund’s portfolio manager indicates that the Fund’s equity investments in the Financials and Health Care sectors were the largest contributors to the Fund’s outperformance relative to the S&P 1500. The Fund’s avoidance of fossil fuel energy investments also improved the Funds’ performance relative to the S&P 1500 Index returns.

The companies held in the portfolio that contributed most toward the Fund’s equity performance relative to the S&P 1500 included Autodesk,2 PNC Financial,2 KeyCorp,2 PayPal,2 and Lincoln National Corporation.2 Companies the Fund held that detracted most from performance relative to the S&P 1500 included Tractor Supply Company,2 Zimmer Biomet Holdings,2 United Natural Foods,2 Target,2 T J Maxx,2 and Acuity Brands.2

The fixed income portion of the portfolio continued to be managed with the goal of seeking to reduce risk and generating income for the Fund. For the one year ended July 31, 2017 gross of fees, the fixed income portion of the Fund’s portfolio returned 0.22%, above the Bank of America Merrill Lynch 1-10 Year U.S. Corporate Government Index return of 0.03% and the Barclays Government/Credit Intermediate Bond Index return of –0.03%.

 

LOGO

The S&P 500® Index and the S&P Supercomposite 1500 Index (the S&P 1500 Index) are unmanaged indexes of 500 and 1500 stocks, respectively. The Custom Balanced Index is comprised of a 60% weighting in the S&P 1500 Index and a 40% weighting in the BofA Merrill Lynch 1-10 Year US Corporate & Government Index (the BofA Merrill Lynch Index). The BofA Merrill Lynch Index tracks the performance of U.S. dollar-denominated investment grade government and corporate public debt issued in the U.S. domestic bond market with at least 1 year and less than 10 years remaining maturity, including U.S. Treasury, U.S. Agency, foreign government, supranational and corporate securities. Similar to the Balanced Fund, the performance of the S&P 500® Index and the S&P 1500 Index, the Custom Balanced Index and the BofA Merrill Lynch Index reflect reinvestment of dividends and distributions. Unlike the Fund, however, the performance of the S&P 500® Index, the S&P 1500 Index, the Custom Balanced Index and the BofA Merrill Lynch Index does not include management and other operating expenses. It is not possible to invest directly in an index.

 

13

The Fund’s portfolio managers do not anticipate any significant changes in investment strategy for the Fund, believing that the investment environment may be favorable to the Fund’s core holdings in what the portfolio managers consider high-quality, environmentally responsible companies with strong growth prospects and reasonable valuations. In addition, the Fund’s portfolio managers anticipate that the U.S. will experience a rising interest-rate environment for at least the next twelve months, with short-term interest rates likely to rise slightly more than intermediate-term interest rates. In response, the Fund’s portfolio managers have slightly shortened the average maturity and duration of the portfolio, but do not anticipate shortening further at this time.

The Balanced Fund consistently includes stocks and bonds of what Green Century believes to be 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 the 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 Funds’ environmental criteria limit the investments available to the Funds compared to mutual funds that do not use environmental criteria.

 

 

1 http://www.ussif.org/sribasics

2 As of July 31, 2017, the following companies comprised the listed percentages of each of the Green Century Funds:

 

Portfolio Holdings   GREEN
CENTURY
INTERNATIONAL
INDEX FUND		     GREEN
CENTURY
BALANCED
FUND		     GREEN
CENTURY
EQUITY
FUND		  

Vestas Wind Systems

     0.69 %      0.00 %      0.00 % 

Symantec Corporation

     0.00 %      0.70 %      0.21 % 

Dell Technologies, Inc.

     0.00 %      0.00 %      0.15 % 

American Water Works Company, Inc.

     0.00 %      0.86 %      0.16 % 

Federal Realty Investment Trust

     0.00 %      0.57 %      0.11 % 

Bank of America Corporation

     0.00 %      0.78 %      0.00 % 

Export-Import Bank of Korea

     0.00 %      0.44 %      0.00 % 

International Finance Corporation

     0.00 %      0.22 %      0.00 % 

International Bank for Reconstruction and Development

     0.00 %      0.87 %      0.00 % 

Regency Centers LP

     0.00 %      0.91 %      0.00 % 

Vornado Realty LP

     0.00 %      0.89 %      0.15 % 
Portfolio Holdings   GREEN
CENTURY
INTERNATIONAL
INDEX FUND		     GREEN
CENTURY
BALANCED
FUND		     GREEN
CENTURY
EQUITY
FUND		  

Overseas Private Investment Corporation

     0.00 %      0.58 %      0.00 % 

Autodesk, Inc.

     0.00 %      1.18 %      0.24 % 

PNC Financial Services Group, Inc.

     0.00 %      1.24 %      0.68 % 

KeyCorp

     0.00 %      1.07 %      0.21 % 

PayPal Holdings, Inc.

     0.00 %      1.31 %      0.00 % 

Lincoln National Corporation

     0.00 %      0.87 %      0.00 % 

Tractor Supply Company

     0.00 %      0.66 %      0.08 % 

Zimmer Biomet Holdings, Inc.

     0.00 %      0.62 %      0.00 % 

United Natural Foods, Inc.

     0.00 %      0.47 %      0.02 % 

Target Corporation

     0.00 %      0.53 %      0.00 % 

TJX Companies, Inc.

     0.00 %      0.80 %      0.00 % 

Acuity Brands, Inc.

     0.00 %      0.43 %      0.10 % 
 

 

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. Note that some of the holdings discussed above may not have been held by any Fund during the fiscal year ended July 31, 2017, or may have been held by a Fund for a portion of the fiscal year, or may have been held by a Fund for the entire fiscal year. These holdings are subject to risk as described in the Funds’ prospectus. References to specific investments should not be construed as a recommendation of the securities by the Funds, their administrator, or their distributor.

 

14

3 The World ex USA SRI ex Fossil Fuels Index is a custom index calculated by MSCI Inc. The World ex USA SRI ex Fossil Fuels Index is comprised of the common stocks of the companies in the MSCI World ex USA SRI Index (the World ex USA SRI Index), minus the stocks of the companies that explore for, extract, produce, manufacture or refine coal, oil or gas or produce or transmit electricity derived from fossil fuels or transmit natural gas or have carbon reserves that are included in the World ex USA SRI (Socially Responsible Investment) Index. The World ex USA SRI Index includes large and mid-cap stocks from approximately 22 developed markets countries (excluding the U.S.). The World ex USA SRI Index is a capitalization weighted index that provides exposure to companies with what MSCI calculates to have outstanding Environmental, Social and Governance (ESG) ratings and excludes companies whose products have negative social or environmental impacts. It is not possible to invest directly in an index.

4 The MSCI World ex USA Index is a custom index calculated by MSCI Inc. The MSCI World ex USA Index includes large and mid-cap stocks across 22 of 23 Developed Markets (DM) countries and excludes the United States. With 1,023 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI World ex USA Index is a free float-adjusted market capitalization index. It is not possible to invest directly in the MSCI World ex USA Index.

5 The MSCI KLD 400 Social ex Fossil Fuels Index (the KLD400 ex Fossil Fuels Index) is a custom index calculated by MSCI Inc. The KLD400 ex Fossil Fuels Index is comprised of the common stocks of the approximately 400 companies in the MSCI KLD 400 Social Index (the KLD400 Index), minus the stocks of the companies that explore for, extract, produce, manufacture, or refine coal, oil or gas or produce or transmit electricity derived from fossil fuels or transmit natural gas or have carbon reserves that are included in the KLD400 Index. The KLD400 Index is a free float-adjusted market capitalization index designed to provide exposure to U.S. companies that have positive ESG characteristics and consists of approximately 400 companies selected from the MSCI USA Investable Market Index. It is not possible to invest directly in an index.

6 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.

7 The Custom Balanced Index is comprised of a 60% weighting in the S&P 1500 Index and a 40% weighting in the BofA Merrill Lynch 1-10 Year US Corporate & Government Index (the BofA Merrill Lynch Index).

8 The S&P Supercomposite 1500 Index is an unmanaged broad-based capitalization-weighted index comprising 1500 stocks of large-cap, mid-cap, and small-cap U.S. companies. It is not possible to invest directly in the S&P Supercomposite 1500 Index.

9 The BofA Merrill Lynch Index tracks the performance of U.S. dollar-denominated investment grade government and corporate public debt issued in the U.S. domestic bond market with at least 1 year and less than 10 years remaining maturity, including U.S. treasury, U.S. agency, foreign government, supranational and corporate securities. It is not possible to invest directly in the BofA Merrill Lynch Index.

Stocks will fluctuate in response to factors that may affect a single company, industry, sector, country, region or the market as a whole and may perform worse than the market. Foreign securities are subject to additional risks such as currency fluctuations, regional economic and political conditions, differences in accounting methods, and other unique risks compared to investing in securities of U.S. issuers. Bonds are subject to risks including interest rate, credit, and inflation. The Funds’ environmental criteria limit the investments available to the Funds compared to mutual funds that do not use environmental criteria.

This material must be preceded or accompanied by a current prospectus.

Distributor: UMB Distribution Services, LLC 9/17

Neither the Green Century Equity Fund nor the Green Century MSCI International Index Fund (each a “Fund” and together the “Funds”) is 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 a Fund or any index on which a Fund is based. The MSCI Parties are not sponsors of either of the Funds and are not affiliated with the Funds 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 Funds.

 

15

GREEN CENTURY FUNDS EXPENSE EXAMPLE

For the six months ended July 31, 2017 (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 February 1, 2017 to July 31, 2017 (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
FEBRUARY 1, 2017		     ENDING
ACCOUNT VALUE
JULY 31, 2017		     EXPENSES
PAID DURING
THE PERIOD1		  

Balanced Fund

      

Actual Expenses

   $ 1,000.00     $ 1,067.50     $ 7.59  

Hypothetical Example, assuming a 5% return before expenses

     1,000.00       1,017.66       7.40  

Equity Fund

      

Actual Expenses

     1,000.00       1,099.90       6.51  

Hypothetical Example, assuming a 5% return before expenses

     1,000.00       1,018.80       6.26  

 

16

     BEGINNING
ACCOUNT VALUE
FEBRUARY 1, 2017		      ENDING
ACCOUNT VALUE
JULY 31, 2017		      EXPENSES
PAID DURING
THE PERIOD1		  

International Index Fund

         

Actual Expenses — Individual Investor Class

    $ 1,000.00      $ 1,146.70      $ 6.81  

Actual Expenses — Institutional Class

      1,000.00        1,148.20        5.22  

Hypothetical Example, assuming a 5% return before expenses
— Individual Investor Class

      1,000.00        1,018.65        6.41  

Hypothetical Example, assuming a 5% return before expenses
— Institutional Class

      1,000.00        1,020.14        4.91  

1 Expenses are equal to the Funds’ annualized expense ratios (1.48% for the Balanced Fund, 1.25% for the Equity Fund, 1.28% for the International Index Fund Individual Investor Class and 0.98% for the International Index Fund Institutional Class), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

 

17

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

  

 

COMMON STOCKS — 63.3%

      
     SHARES      VALUE  

Software & Services — 9.7%

 

   

Adobe Systems, Inc. (a)

      6,573      $ 962,879  

Alphabet, Inc., Class A (a)

      6,261        5,919,775  

ANSYS, Inc. (a)

      19,510        2,527,521  

Autodesk, Inc. (a)

      24,032        2,662,505  

Facebook, Inc., Class A (a)

      9,840        1,665,420  

MasterCard, Inc., Class A

      19,606        2,505,647  

Microsoft Corporation

      37,870        2,753,149  

PayPal Holdings, Inc. (a)

      50,348        2,947,875  
     

 

 

  
     21,944,771  
     

 

 

  

Healthcare Equipment & Services — 5.9%

 

Cardinal Health, Inc.

      18,034        1,393,307  

Cigna Corporation

      22,049        3,826,824  

Edwards Lifesciences Corporation (a)

      13,372        1,540,187  

Hologic, Inc. (a)

      53,946        2,384,953  

Medtronic PLC (b)

      14,550        1,221,764  

Quest Diagnostics, Inc.

      13,466        1,458,502  

Zimmer Biomet Holdings, Inc.

      11,441        1,388,022  
     

 

 

  
     13,213,559  
     

 

 

  

Banks — 5.2%

      

East West Bancorp, Inc.

      22,236        1,267,007  

Fifth Third Bancorp

      57,295        1,529,777  

First Republic Bank

      22,973        2,304,881  

KeyCorp

      133,909        2,415,718  

PNC Financial Services Group, Inc. (The)

      21,808        2,808,871  

Umpqua Holdings Corporation

      71,619        1,327,816  
     

 

 

  
     11,654,070  
     

 

 

  

Capital Goods — 4.8%

      

A.O. Smith Corporation

      25,088        1,343,463  

Hexcel Corporation

      37,314        1,909,357  

Illinois Tool Works, Inc.

      19,517        2,746,237  

Middleby Corporation (The) (a)

      7,137        932,663  

Wabtec Corporation

      27,176        2,047,983  

Xylem, Inc.

      33,464        1,898,413  
     

 

 

  
     10,878,116  
     

 

 

  

Insurance — 3.9%

      

Aflac, Inc.

      28,391        2,264,182  

Chubb Ltd. (b)

      15,375        2,251,823  

Lincoln National Corporation

      26,948        1,968,821  

Reinsurance Group of America, Inc.

      16,034        2,247,967  
     

 

 

  
     8,732,793  
     

 

 

  
     SHARES      VALUE  

Retailing — 3.8%

      

Home Depot, Inc. (The)

      13,443      $ 2,011,073  

Priceline Group, Inc. (The) (a)

      968        1,963,588  

Target Corporation

      21,122        1,196,984  

TJX Companies, Inc. (The)

      25,802        1,814,138  

Tractor Supply Company

      26,359        1,479,267  
     

 

 

  
     8,465,050  
     

 

 

  

Pharmaceuticals & Biotechnology — 3.5%

 

Biogen, Inc. (a)

      3,742        1,083,646  

Celgene Corporation (a)

      10,135        1,372,380  

Merck & Company, Inc.

      55,816        3,565,526  

Novartis A.G. American Depositary Receipt (b)

      22,065        1,879,938  
     

 

 

  
        7,901,490  
     

 

 

  

Renewable Energy & Energy Efficiency — 3.3%

 

8point3 Energy Partners LP

      96,278        1,420,101  

Acuity Brands, Inc.

      4,829        978,597  

EnerNOC, Inc. (a)

      45,945        351,479  

First Solar, Inc. (a)

      16,509        814,059  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      53,040        1,233,180  

Johnson Controls International, PLC

      28,702        1,117,943  

Ormat Technologies, Inc.

      26,328        1,561,250  
     

 

 

  
        7,476,609  
     

 

 

  

Real Estate — 3.2%

      

AvalonBay Communities, Inc.

      10,785        2,074,495  

Federal Realty Investment Trust

      9,754        1,293,673  

Forest City Realty Trust, Inc., Class A

      42,047        1,025,106  

HCP, Inc.

      48,042        1,520,529  

SBA Communications Corporation, Class A (a)

      9,695        1,333,547  
     

 

 

  
        7,247,350  
     

 

 

  

Semiconductors — 3.2%

      

Analog Devices, Inc.

      28,893        2,282,836  

ASML Holding NV (b)

      10,141        1,524,496  

NXP Semiconductors NV (a)(b)

      11,145        1,229,628  

Xilinx, Inc.

      34,708        2,195,628  
     

 

 

  
        7,232,588  
     

 

 

  
 

 

18

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     SHARES      VALUE  

Technology Hardware & Equipment — 2.4%

 

Cisco Systems, Inc.

      66,227      $ 2,082,839  

F5 Networks, Inc. (a)

      12,973        1,566,490  

Palo Alto Networks, Inc. (a)

      13,944        1,837,540  
     

 

 

  
        5,486,869  
     

 

 

  

Food & Beverage — 2.3%

      

General Mills, Inc.

      300        16,698  

McCormick & Company, Inc.

      16,261        1,549,673  

Unilever NV (b)

      62,545        3,638,243  
     

 

 

  
        5,204,614  
     

 

 

  

Consumer Durables & Apparel — 1.8%

 

   

Newell Brands, Inc.

      33,175        1,748,986  

NIKE, Inc., Class B

      19,253        1,136,890  

VF Corporation

      19,571        1,217,120  
     

 

 

  
        4,102,996  
     

 

 

  

Food & Staples Retailing — 1.7%

 

   

Costco Wholesale Corporation

      15,608        2,474,024  

CVS Health Corporation

      17,093        1,366,244  
     

 

 

  
        3,840,268  
     

 

 

  

Materials — 1.5%

      

Ball Corporation

      25,182        1,055,126  

International Flavors & Fragrances, Inc.

      9,107        1,212,870  

Sealed Air Corporation

      27,148        1,181,210  
     

 

 

  
        3,449,206  
     

 

 

  

Transportation — 1.3%

      

J.B. Hunt Transport Services, Inc.

      15,309        1,388,679  

United Parcel Service, Inc., Class B

      14,085        1,553,435  
     

 

 

  
        2,942,114  
     

 

 

  

Healthy Living — 1.1%

      

United Natural Foods, Inc. (a)

      27,516        1,060,191  

Whole Foods Market, Inc.

      35,284        1,473,460  
     

 

 

  
        2,533,651  
     

 

 

  

Utilities — 0.9%

      

American Water Works Company, Inc.

      23,952        1,942,507  
     

 

 

  

Diversified Financials — 0.7%

 

   

Charles Schwab Corporation (The)

      38,304        1,643,242  
     

 

 

  
     SHARES      VALUE  

Telecommunication Services — 0.7%

 

Verizon Communications, Inc.

      31,835      $ 1,540,814  
     

 

 

  

Household & Personal Products — 0.7%

 

Church & Dwight Company, Inc.

      28,772        1,534,986  
     

 

 

  

Automobiles & Components — 0.6%

 

   

BorgWarner, Inc.

      29,100        1,360,134  
     

 

 

  

Consumer Services — 0.6%

 

   

Starbucks Corporation

      24,912        1,344,750  
     

 

 

  

Media — 0.5%

      

Omnicom Group, Inc.

      15,070        1,186,612  
     

 

 

  

Total Common Stocks
(Cost $108,516,579)

         142,859,159  
     

 

 

  
     PRINCIPAL
AMOUNT		         

BONDS & NOTES — 32.0%

 

   

Green and Sustainability Bonds, Renewable Energy & Energy Efficiency — 18.6%

 

Apple, Inc.
2.85%, due 2/23/23

    $ 2,000,000        2,052,284  

Apple, Inc.
3.00%, due 6/20/27

      1,000,000        997,801  

Asian Development Bank
2.125%, due 3/19/25 (b)

      1,000,000        987,232  

Bank of America Corporation
2.151%, due 11/9/20

      1,750,000        1,749,667  

Digital Realty Trust LP
3.95%, due 7/1/22

      2,000,000        2,111,508  

European Bank for Reconstruction & Development
0.875%, due 7/22/19 (b)

      1,500,000        1,476,444  

European Investment Bank
2.50%, due 10/15/24 (b)

      2,000,000        2,031,010  

European Investment Bank
2.125%, due 4/13/26 (b)

      500,000        488,668  

Export-Import Bank of Korea
1.75%, due 2/27/18 (b)

      1,000,000        999,667  

International Bank for Reconstruction & Development
2.125%, due 3/3/25 (b)

      2,000,000        1,972,766  

International Finance Corporation
2.125%, due 4/7/26 (b)

      500,000        489,406  
 

 

19

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     PRINCIPAL
AMOUNT		      VALUE  

Green and Sustainability Bonds, Renewable Energy & Energy Efficiency — (continued)

 

Kommunalbanken AS
1.375%, due 10/26/20 (b)(c)

    $ 2,000,000      $ 1,974,358  

Kommuninvest I Sverige AB
1.50%, due 4/23/19 (b)(c)

      1,000,000        999,531  

Korea Development Bank (The)
2.027%, due 7/6/22 (b)(d)

      1,250,000        1,249,975  

Kreditanstalt fuer Wiederaufbau
1.75%, due 10/15/19 (b)

      3,000,000        3,012,396  

Kreditanstalt fuer Wiederaufbau
2.00%, due 11/30/21 (b)

      1,000,000        1,004,187  

Local Initiatives Support Corporation
3.782%, due 3/1/27

      2,000,000        2,046,568  

Morgan Stanley
2.20%, due 12/7/18

      3,000,000        3,017,106  

Nederlandse Waterschapsbank NV
2.375%, due 3/24/26 (b)(c)

      1,000,000        985,038  

Nordic Investment Bank
2.25%, due 9/30/21 (b)

      1,500,000        1,521,633  

Overseas Private Investment Corporation
3.28%, due 9/15/29

      797,046        818,551  

Overseas Private Investment Corporation
3.33%, due 5/15/33

      234,742        239,176  

Overseas Private Investment Corporation
3.43%, due 6/1/33

      236,412        243,090  

Regency Centers LP
3.75%, due 6/15/24

      2,000,000        2,046,434  

Starbucks Corporation
2.45%, due 6/15/26

      2,000,000        1,934,638  

Sumitomo Mitsui Banking Corporation
2.45%, due 10/20/20 (b)

      2,000,000        2,012,984  

Svensk Exportkredit AB
1.875%, due 6/23/20 (b)

      1,500,000        1,506,318  

Vornado Realty LP
2.50%, due 6/30/19

      2,000,000        2,019,078  
     

 

 

  
        41,987,514  
     

 

 

  
     PRINCIPAL
AMOUNT		      VALUE  

U.S. Government Agencies — 3.7%

 

   

Fannie Mae Pool
1.76%, due 7/1/23

    $ 460,342      $ 459,395  

Federal Farm Credit Bank
1.80%, due 6/15/20

      200,000        201,251  

Federal Farm Credit Bank
2.26%, due 11/13/24

      500,000        488,159  

Federal Home Loan Bank
3.875%, due 12/14/18

      550,000        569,087  

Federal Home Loan Bank
1.25%, due 1/16/19

      3,000,000        2,996,430  

Federal Home Loan Mortgage Corporation
3.75%, due 3/27/19

      500,000        519,586  

Federal Home Loan Mortgage Corporation
0.00%, due 11/29/19

      200,000        192,019  

Federal National Mortgage Association
1.70%, due 1/27/20

      3,000,000        3,000,024  
     

 

 

  
        8,425,951  
     

 

 

  

Software & Services — 3.4%

 

   

International Business Machines Corporation
8.375%, due 11/1/19

      500,000        572,607  

Microsoft Corporation
1.10%, due 8/8/19

      3,000,000        2,976,528  

Oracle Corporation
1.20%, due 10/15/17

      500,000        499,827  

Oracle Corporation
5.00%, due 7/8/19

      1,000,000        1,064,792  

Oracle Corporation
2.50%, due 5/15/22

      1,000,000        1,014,698  

Symantec Corporation
4.20%, due 9/15/20

      1,500,000        1,586,250  
     

 

 

  
        7,714,702  
     

 

 

  

Banks — 2.8%

      

HSBC Bank USA N.A.
6.00%, due 8/9/17

      500,000        500,387  

HSBC Holdings PLC
5.10%, due 4/5/21 (b)

      1,500,000        1,639,741  

JPMorgan Chase & Company
4.40%, due 7/22/20

      1,000,000        1,066,913  

U.S. Bancorp
1.95%, due 11/15/18

      3,000,000        3,016,770  
     

 

 

  
        6,223,811  
     

 

 

  
 

 

20

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   concluded

 

     PRINCIPAL
AMOUNT		      VALUE  

Pharmaceuticals & Biotechnology — 0.8%

 

Amgen, Inc.
5.70%, due 2/1/19

    $ 1,250,000      $ 1,323,925  

Thermo Fisher Scientific, Inc.
2.40%, due 2/1/19

      500,000        504,244  
     

 

 

  
        1,828,169  
     

 

 

  

Diversified Financials — 0.5%

 

   

Bank of New York Mellon Corporation (The)
3.55%, due 9/23/21

      1,000,000        1,049,962  
     

 

 

  

Real Estate — 0.5%

      

HCP, Inc.
3.875%, due 8/15/24

      1,000,000        1,035,426  
     

 

 

  

Telecommunication Services — 0.4%

 

   

America Movil SAB de C.V.
5.00%, due 10/16/19 (b)

      750,000        804,538  
     

 

 

  

Media — 0.3%

      

Discovery Communications LLC
5.625%, due 8/15/19

      705,000        752,987  
     

 

 

  

Technology Hardware & Equipment — 0.3%

 

EMC Corporation
1.875%, due 6/1/18

      700,000        697,591  
     

 

 

  

Healthy Living — 0.3%

      

Whole Foods Market, Inc.
5.20%, due 12/3/25 (c)

      500,000        576,554  
     

 

 

  

Food & Staples Retailing — 0.2%

 

   

CVS Health Corporation
2.25%, due 12/5/18

      500,000        503,555  
     

 

 

  

Healthcare Equipment & Services — 0.2%

 

Stryker Corporation
1.30%, due 4/1/18

      500,000        499,289  
     

 

 

  

Total Bonds & Notes
(Cost $71,476,874)

         72,100,049  
     

 

 

  

CERTIFICATES OF DEPOSIT — 0.1%

 

   

Self-Help Credit Union
1.30%, due 6/21/19

      95,000        94,272  

Self-Help Federal Credit Union
1.40%, due 3/17/20

      240,000        237,791  
     

 

 

  

Total Certificates Of Deposit
(Cost $335,000)

         332,063  
     

 

 

  

SHORT-TERM INVESTMENT — 4.6%

 

            VALUE  

UMB Money Market Fiduciary
Account , 0.01% (e)
(Cost $10,401,526)

       $ 10,401,526  
     

 

 

  

Total Short-term Investments
(Cost $10,401,526)

         10,401,526  
     

 

 

  

TOTAL INVESTMENTS (f) — 100.0%

 

(Cost $190,729,979)

         225,692,797  

Liabilities Less Other Assets — 0.0%

         (22,868 ) 
     

 

 

  

NET ASSETS — 100.0%

       $ 225,669,929  
     

 

 

  

 

(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) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $4,535,481.
(d) Floating rate bond. Rate shown is currently in effect at July 31, 2017.
(e) The rate quoted is the annualized seven-day yield of the fund at the period end.
(f) The cost of investments for federal income tax purposes is $190,373,269 resulting in gross unrealized appreciation and depreciation of $38,963,251 and $3,643,723 respectively, or net unrealized appreciation of $35,319,528.
 

 

See Notes to Financial Statements

 

21

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

  

 

COMMON STOCKS — 99.6%

 

     SHARES      VALUE  

Software & Services — 20.5%

 

Accenture PLC, Class A (a)

      14,082      $ 1,814,043  

Adobe Systems, Inc. (b)

      11,171        1,636,440  

Alphabet, Inc., Class A (b)

      6,720        6,353,760  

Alphabet, Inc., Class C (b)

      7,062        6,571,191  

ANSYS, Inc. (b)

      1,913        247,829  

Autodesk, Inc. (b)

      4,540        502,987  

Automatic Data Processing, Inc.

      10,156        1,207,650  

CA, Inc.

      7,152        221,998  

Cadence Design Systems, Inc. (b)

      6,379        235,385  

Citrix Systems, Inc. (b)

      3,557        280,932  

Cognizant Technology Solutions Corporation, Class A

      13,723        951,278  

Convergys Corporation

      2,036        48,803  

Dell Technologies, Inc. Class V (b)

      4,858        312,224  

FleetCor Technologies, Inc. (b)

      2,063        313,700  

Fortinet, Inc. (b)

      3,379        124,719  

International Business Machines Corporation

      20,429        2,955,463  

Intuit, Inc.

      5,507        755,615  

Microsoft Corporation

      166,022        12,069,799  

Oracle Corporation

      69,588        3,474,529  

salesforce.com, Inc. (b)

      14,975        1,359,730  

Symantec Corporation

      14,014        434,294  

Teradata Corporation (b)

      2,941        93,583  

Western Union Company (The)

      11,032        217,882  

Workday, Inc., Class A (b)

      2,811        287,031  
     

 

 

  
     42,470,865  
     

 

 

  

Pharmaceuticals & Biotechnology — 9.1%

 

Agilent Technologies, Inc.

      7,289        435,809  

Amgen, Inc.

      16,654        2,906,289  

Bio-Techne Corporation

      860        99,683  

Biogen, Inc. (b)

      4,883        1,414,068  

BioMarin Pharmaceutical, Inc. (b)

      3,930        344,779  

Bristol-Myers Squibb Company

      37,834        2,152,755  

Celgene Corporation (b)

      17,585        2,381,185  

Gilead Sciences, Inc.

      29,559        2,249,144  

Jazz Pharmaceuticals PLC (a)(b)

      1,360        208,910  

Merck & Company, Inc.

      62,349        3,982,854  

Mettler-Toledo International, Inc. (b)

      582        333,532  

PAREXEL International Corporation (b)

      1,162        101,698  

Quintiles IMS Holdings, Inc. (b)

      3,212        290,847  

Vertex Pharmaceuticals, Inc. (b)

      5,630        854,747  
     SHARES      VALUE  

Pharmaceuticals & Biotechnology — (continued)

 

Waters Corporation (b)

      1,795      $ 311,325  

Zoetis, Inc.

      11,158        697,598  
     

 

 

  
     18,765,223  
     

 

 

  

Capital Goods — 7.0%

 

3M Company

      13,470        2,709,760  

A.O. Smith Corporation

      3,385        181,267  

AGCO Corporation

      1,456        105,036  

Air Lease Corporation

      2,223        87,986  

Allegion PLC (a)

      2,195        178,322  

Applied Industrial Technologies, Inc.

      892        50,398  

Builders FirstSource, Inc. (b)

      2,174        34,067  

Caterpillar, Inc.

      13,262        1,511,205  

Cummins, Inc.

      3,622        608,134  

Deere & Company

      6,107        783,406  

Dover Corporation

      3,552        298,368  

Eaton Corporation PLC

      10,158        794,863  

EMCOR Group, Inc.

      1,349        91,058  

Fastenal Company

      6,476        278,209  

Flowserve Corporation

      2,910        119,688  

Fortive Corporation

      7,062        457,194  

Fortune Brands Home & Security, Inc.

      3,507        230,305  

Graco, Inc.

      1,276        148,067  

Granite Construction, Inc.

      946        46,373  

H&E Equipment Services, Inc.

      681        15,370  

Illinois Tool Works, Inc.

      7,050        992,005  

Ingersoll-Rand PLC

      5,868        515,680  

Lincoln Electric Holdings, Inc.

      1,343        117,190  

Masco Corporation

      7,210        274,917  

Meritor, Inc. (b)

      1,997        34,508  

Middleby Corporation (The) (b)

      1,292        168,839  

Owens Corning

      2,524        169,234  

Parker Hannifin Corporation

      3,020        501,260  

Quanta Services, Inc. (b)

      3,464        116,841  

Rockwell Automation, Inc.

      2,916        481,227  

Roper Technologies, Inc.

      2,303        535,355  

Sensata Technologies Holding NV (b)

      3,850        173,712  

Snap-on, Inc.

      1,328        204,778  

Stanley Black & Decker, Inc.

      3,452        485,662  

Tennant Company

      363        27,425  

Timken Company (The)

      1,610        73,255  

United Rentals, Inc. (b)

      1,928        229,355  

W.W. Grainger, Inc.

      1,270        211,760  
 

 

22

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     SHARES      VALUE  

Capital Goods — (continued)

 

WABCO Holdings, Inc. (b)

      1,164      $ 160,131  

Wabtec Corporation

      1,965        148,082  

Wesco Aircraft Holdings, Inc. (b)

      1,261        13,682  

Xylem, Inc.

      4,091        232,082  
     

 

 

  
        14,596,056  
     

 

 

  

Diversified Financials — 5.4%

 

Ally Financial, Inc.

      10,695        242,135  

American Express Company

      17,306        1,474,990  

Ameriprise Financial, Inc.

      3,489        505,486  

Bank of New York Mellon Corporation (The)

      23,467        1,244,455  

BlackRock, Inc.

      2,738        1,167,839  

Charles Schwab Corporation (The)

      27,171        1,165,636  

CME Group, Inc.

      7,687        942,580  

FactSet Research Systems, Inc.

      890        148,826  

Franklin Resources, Inc.

      7,727        346,015  

Invesco Ltd.

      9,189        319,502  

Legg Mason, Inc.

      2,008        80,340  

Moody’s Corporation

      3,895        512,699  

Northern Trust Corporation

      4,734        414,272  

S&P Global, Inc.

      5,841        897,119  

State Street Corporation

      8,650        806,439  

T. Rowe Price Group, Inc.

      5,523        456,863  

TD Ameritrade Holding Corporation

      5,933        271,316  

Voya Financial, Inc.

      4,304        168,889  
     

 

 

  
        11,165,401  
     

 

 

  

Semiconductors — 5.3%

      

Advanced Micro Devices, Inc. (b)

      18,798        255,841  

Analog Devices, Inc.

      8,215        649,067  

Applied Materials, Inc.

      24,424        1,082,227  

Intel Corporation

      106,944        3,793,304  

Lam Research Corporation

      3,680        586,813  

Microchip Technology, Inc.

      4,899        392,116  

NVIDIA Corporation

      12,190        1,980,997  

Skyworks Solutions, Inc.

      4,185        438,881  

Texas Instruments, Inc.

      22,620        1,840,815  
     

 

 

  
        11,020,061  
     

 

 

  

Food & Beverage — 5.1%

 

Archer-Daniels-Midland Company

      12,907        544,417  

Bunge Ltd.

      3,133        245,596  
     SHARES      VALUE  

Food & Beverage — (continued)

 

Campbell Soup Company

      4,212      $ 222,520  

Coca-Cola Company (The)

      92,220        4,227,365  

Darling Ingredients, Inc. (b)

      3,820        62,151  

Dr. Pepper Snapple Group, Inc.

      4,152        378,496  

General Mills, Inc.

      13,062        727,031  

Hormel Foods Corporation

      6,634        226,684  

Ingredion, Inc.

      1,651        203,601  

JM Smucker Company (The)

      2,608        317,915  

Kellogg Company

      5,971        406,028  

Kraft Heinz Company (The)

      13,763        1,203,712  

McCormick & Company, Inc.

      2,556        243,587  

Mondelez International, Inc., Class A

      34,527        1,519,879  
     

 

 

  
        10,528,982  
     

 

 

  

Real Estate — 4.7%

 

American Tower Corporation

      9,660        1,316,948  

AvalonBay Communities, Inc.

      3,095        595,323  

Boston Properties, Inc.

      3,485        421,371  

CBRE Group, Inc., Class A (b)

      6,812        258,788  

Corporate Office Properties Trust

      2,215        73,737  

Digital Realty Trust, Inc.

      3,597        414,878  

Duke Realty Corporation

      7,958        227,519  

Equinix, Inc.

      1,742        785,172  

Equity Residential

      8,279        563,469  

Federal Realty Investment Trust

      1,642        217,779  

Forest City Realty Trust, Inc., Class A

      4,555        111,051  

HCP, Inc.

      10,659        337,357  

Host Hotels & Resorts, Inc.

      16,914        315,615  

Iron Mountain, Inc.

      5,769        210,165  

Jones Lang LaSalle, Inc.

      1,056        134,344  

Liberty Property Trust

      3,334        140,095  

Macerich Company (The)

      2,745        157,536  

Potlatch Corporation

      860        41,151  

Prologis, Inc.

      11,944        726,315  

Realogy Holdings Corporation

      3,114        103,385  

SBA Communications Corporation, Class A (b)

      2,745        377,575  

Simon Property Group, Inc.

      7,237        1,147,065  

UDR, Inc.

      6,012        235,009  

Vornado Realty Trust

      3,881        307,957  

Weyerhaeuser Company

      16,951        559,722  
     

 

 

  
        9,779,326  
     

 

 

  
 

 

23

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     SHARES      VALUE  

Healthcare Equipment & Services — 4.4%

 

Align Technology, Inc. (b)

      1,720      $ 287,636  

AmerisourceBergen Corporation

      3,696        346,759  

Becton, Dickinson and Company

      5,112        1,029,557  

Cardinal Health, Inc.

      7,120        550,091  

Centene Corporation (b)

      3,865        306,958  

Cerner Corporation (b)

      6,736        433,596  

Cigna Corporation

      5,812        1,008,731  

Cooper Companies, Inc. (The)

      1,111        270,940  

Dentsply Sirona, Inc.

      5,264        326,526  

Edwards Lifesciences Corporation (b)

      4,797        552,518  

Envision Healthcare Holdings, Inc. (b)

      2,643        149,145  

HCA Holdings, Inc. (b)

      6,717        539,644  

Henry Schein, Inc. (b)

      1,804        328,707  

Hologic, Inc. (b)

      6,333        279,982  

Humana, Inc.

      3,366        778,219  

IDEXX Laboratories, Inc. (b)

      2,005        333,752  

Laboratory Corporation of America Holdings (b)

      2,325        369,466  

MEDNAX, Inc. (b)

      2,083        97,859  

Patterson Companies, Inc.

      1,893        78,976  

Quest Diagnostics, Inc.

      3,078        333,378  

ResMed, Inc.

      3,176        244,933  

Select Medical Holdings Corporation (b)

      2,541        41,164  

Varian Medical Systems, Inc. (b)

      2,086        202,592  

VCA, Inc. (b)

      1,843        170,625  
     

 

 

  
        9,061,754  
     

 

 

  

Media — 4.3%

      

Charter Communications, Inc., Class A (b)

      4,866        1,907,034  

Discovery Communications, Inc., Class A (b)

      3,410        83,886  

Discovery Communications, Inc., Class C (b)

      5,006        115,789  

John Wiley & Sons, Inc., Class A

      1,008        55,692  

Liberty Global PLC LiLAC, Class A (a)(b)

      1,064        27,366  

Liberty Global PLC LiLAC, Class C (a)(b)

      2,675        68,266  

Liberty Global PLC, Class A (a)(b)

      5,477        185,451  

Liberty Global PLC, Series C (a)(b)

      13,578        444,951  

New York Times Company (The), Class A

      2,785        52,915  
     SHARES      VALUE  

Media — (continued)

      

Scholastic Corporation

      689      $ 28,545  

Scripps Networks Interactive, Inc., Class A

      1,979        172,985  

Time Warner, Inc.

      17,497        1,792,043  

Walt Disney Company (The)

      35,756        3,930,657  
     

 

 

  
        8,865,580  
     

 

 

  

Household & Personal Products — 4.1%

 

Avon Products, Inc. (a)(b)

      9,248        33,663  

Clorox Company (The)

      2,918        389,524  

Colgate-Palmolive Company

      18,975        1,369,995  

Estee Lauder Companies, Inc. (The), Class A

      5,039        498,811  

Kimberly-Clark Corporation

      8,047        991,068  

Procter & Gamble Company (The)

      57,797        5,249,123  
     

 

 

  
        8,532,184  
     

 

 

  

Retailing — 4.1%

      

AutoNation, Inc. (b)

      1,516        64,248  

Best Buy Company, Inc.

      6,412        374,076  

Buckle, Inc. (The)

      624        10,670  

Caleres Inc.

      927        25,289  

CarMax, Inc. (b)

      4,300        284,875  

Foot Locker, Inc.

      3,028        142,891  

GameStop Corporation, Class A

      2,214        48,022  

Gap, Inc. (The)

      5,458        130,064  

HSN, Inc.

      723        28,667  

Kohl’s Corporation

      4,012        165,896  

LKQ Corporation (b)

      7,151        247,139  

Lowe’s Companies, Inc.

      19,662        1,521,839  

Netflix, Inc. (b)

      9,735        1,768,460  

Nordstrom, Inc.

      2,825        137,210  

Nutrisystem, Inc.

      634        35,346  

Office Depot, Inc.

      11,972        70,276  

Pier 1 Imports, Inc.

      1,662        7,662  

Pool Corporation

      902        97,524  

Priceline Group, Inc. (The) (b)

      1,112        2,255,692  

Shutterfly, Inc. (b)

      661        32,415  

Signet Jewelers Ltd.

      1,387        84,829  

Staples, Inc.

      14,776        149,976  

Tiffany & Company

      2,840        271,248  

Tractor Supply Company

      2,985        167,518  

Ulta Beauty, Inc. (b)

      1,341        336,873  

Weyco Group, Inc.

      142        3,959  
     

 

 

  
        8,462,664  
     

 

 

  
 

 

24

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     SHARES      VALUE  

Insurance — 3.9%

      

Aflac, Inc.

      9,066      $ 723,013  

Allstate Corporation (The)

      8,270        752,570  

Chubb Ltd. (a)

      10,526        1,541,638  

Hartford Financial Services Group, Inc. (The)

      8,364        460,020  

Loews Corporation

      6,542        318,465  

Marsh & McLennan Companies, Inc.

      11,652        908,506  

Principal Financial Group, Inc.

      6,546        436,946  

Progressive Corporation (The)

      13,102        617,497  

Prudential Financial, Inc.

      9,723        1,100,935  

Travelers Companies, Inc. (The)

      6,302        807,223  

Willis Towers Watson PLC (a)

      2,935        436,963  
     

 

 

  
        8,103,776  
     

 

 

  

Technology Hardware & Equipment — 3.5%

 

Calix, Inc. (b)

      982        6,727  

Cisco Systems, Inc.

      113,282        3,562,719  

Corning, Inc.

      21,014        612,348  

F5 Networks, Inc. (b)

      1,489        179,797  

Flex Ltd. (b)

      11,970        191,400  

Hewlett Packard Enterprise Company

      37,565        657,763  

HP, Inc.

      38,319        731,893  

Motorola Solutions, Inc.

      3,701        335,607  

Plantronics, Inc.

      709        32,032  

Super Micro Computer, Inc. (b)

      833        22,366  

TE Connectivity Ltd. (a)

      8,045        646,737  

Trimble, Inc. (b)

      5,698        213,276  

Xerox Corporation

      4,904        150,406  
     

 

 

  
        7,343,071  
     

 

 

  

Consumer Services — 3.5%

      

Aramark

      5,572        222,100  

Choice Hotels International, Inc.

      858        55,470  

Darden Restaurants, Inc.

      2,856        239,561  

Domino’s Pizza, Inc.

      1,096        204,404  

Hilton Worldwide Holdings, Inc.

      4,501        281,447  

Jack in the Box, Inc.

      694        64,375  

Marriott International, Inc., Class A

      7,345        765,276  

McDonald’s Corporation

      18,769        2,911,823  

Royal Caribbean Cruises Ltd.

      3,884        439,164  

Starbucks Corporation

      32,951        1,778,695  

Vail Resorts, Inc.

      908        191,370  
     

 

 

  
        7,153,685  
     

 

 

  
     SHARES      VALUE  

Materials — 2.8%

      

Air Products & Chemicals, Inc.

      4,912      $ 698,241  

Albemarle Corporation

      2,554        295,753  

Avery Dennison Corporation

      2,000        185,860  

Axalta Coating Systems Ltd. (b)

      4,871        153,437  

Ball Corporation

      7,561        316,806  

Compass Minerals International, Inc.

      794        54,826  

Domtar Corporation

      1,466        57,262  

Ecolab, Inc.

      5,947        783,041  

H.B. Fuller Company

      1,102        56,775  

International Flavors & Fragrances, Inc.

      1,809        240,923  

Minerals Technologies, Inc.

      809        57,277  

Mosaic Company (The)

      7,506        181,195  

PPG Industries, Inc.

      5,814        611,923  

Praxair, Inc.

      6,464        841,354  

Schnitzer Steel Industries, Inc., Class A

      531        13,700  

Sealed Air Corporation

      4,428        192,662  

Sherwin-Williams Company (The)

      1,891        637,778  

Sonoco Products Company

      2,230        108,110  

WestRock Company

      5,621        322,758  
     

 

 

  
        5,809,681  
     

 

 

  

Telecommunication Services — 2.6%

 

CenturyLink, Inc.

      12,290        285,988  

Cincinnati Bell, Inc. (b)

      821        15,312  

Level 3 Communications, Inc. (b)

      6,980        409,586  

Sprint Corporation (b)

      18,000        143,640  

Verizon Communications, Inc.

      92,221        4,463,497  
     

 

 

  
        5,318,023  
     

 

 

  

Transportation — 2.3%

      

ArcBest Corporation

      526        14,623  

Avis Budget Group, Inc. (b)

      1,727        53,157  

C.H. Robinson Worldwide, Inc.

      3,184        208,870  

CSX Corporation

      20,945        1,033,426  

Delta Air Lines, Inc.

      4,146        204,647  

Echo Global Logistics, Inc. (b)

      579        7,903  

Expeditors International of Washington, Inc.

      4,098        241,290  

Genesee & Wyoming, Inc., Class A (b)

      1,408        91,745  

Hertz Global Holdings, Inc. (b)

      1,088        14,873  

Kansas City Southern

      2,425        250,236  
 

 

25

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   continued

 

     SHARES      VALUE  

Transportation — (continued)

 

   

Norfolk Southern Corporation

      6,587      $ 741,565  

Ryder System, Inc.

      1,183        86,075  

Southwest Airlines Company

      3,483        193,341  

United Parcel Service, Inc., Class B

      15,585        1,718,870  
     

 

 

  
        4,860,621  
     

 

 

  

Consumer Durables & Apparel — 2.3%

 

Callaway Golf Company

      2,022        25,740  

Columbia Sportswear Company

      605        36,651  

CSS Industries, Inc.

      200        5,354  

Deckers Outdoor Corporation (b)

      738        47,867  

Ethan Allen Interiors, Inc.

      534        17,115  

Garmin Ltd. (a)

      2,935        147,308  

Hanesbrands, Inc.

      8,464        193,995  

Hasbro, Inc.

      2,515        266,288  

La-Z-Boy, Inc.

      1,044        35,287  

Mattel, Inc.

      7,809        156,336  

Meritage Homes Corporation (b)

      818        33,333  

Michael Kors Holdings Ltd. (a)(b)

      3,725        135,739  

Mohawk Industries, Inc. (b)

      1,432        356,554  

Newell Brands, Inc.

      10,890        574,121  

NIKE, Inc., Class B

      29,969        1,769,669  

PVH Corporation

      1,782        212,575  

Tupperware Brands Corporation

      1,142        69,331  

Under Armour, Inc., Class A (b)

      4,076        81,601  

Under Armour, Inc., Class A (b)

      4,274        77,402  

VF Corporation

      8,056        501,003  

Wolverine World Wide, Inc.

      2,141        60,376  
     

 

 

  
        4,803,645  
     

 

 

  

Banks — 2.0%

      

Bank of Hawaii Corporation

      968        80,993  

Cathay General Bancorp

      1,613        60,407  

CIT Group, Inc.

      3,293        156,912  

Citizens Financial Group, Inc.

      11,587        406,472  

Comerica, Inc.

      3,982        287,938  

Heartland Financial USA, Inc.

      474        22,325  

International Bancshares Corporation

      1,199        42,445  

KeyCorp

      24,436        440,826  

M&T Bank Corporation

      3,161        515,717  

New York Community Bancorp, Inc.

      11,009        144,548  

Old National Bancorp

      3,156        51,443  

People’s United Financial, Inc.

      7,630        133,067  
     SHARES      VALUE  

Banks — (continued)

      

PNC Financial Services Group, Inc. (The)

      10,960      $ 1,411,648  

Signature Bank (b)

      1,261        174,749  

SVB Financial Group (b)

      1,201        214,306  

Umpqua Holdings Corporation

      4,939        91,569  
     

 

 

  
        4,235,365  
     

 

 

  

Renewable Energy & Energy Efficiency — 1.0%

 

Acuity Brands, Inc.

      998        202,245  

Itron, Inc. (b)

      769        56,137  

Johnson Controls International, PLC

      21,176        824,810  

Ormat Technologies, Inc.

      868        51,472  

SunPower Corporation (b)

      1,332        14,838  

Tesla Motors, Inc. (b)

      2,911        941,621  
     

 

 

  
        2,091,123  
     

 

 

  

Commercial & Professional Services — 0.7%

 

ACCO Brands Corporation (b)

      2,275        26,504  

Copart, Inc. (b)

      4,617        145,389  

Deluxe Corporation

      1,042        75,232  

Dun & Bradstreet Corporation (The)

      853        94,478  

Essendant, Inc.

      801        9,996  

Exponent, Inc.

      556        36,251  

Heidrick & Struggles International, Inc.

      327        5,919  

HNI Corporation

      941        35,523  

ICF International, Inc. (b)

      392        17,738  

IHS Markit Ltd. (a)(b)

      8,425        393,026  

Interface, Inc.

      1,400        26,530  

Kelly Services, Inc.

      596        13,273  

Knoll, Inc.

      1,049        20,309  

ManpowerGroup, Inc.

      1,550        166,082  

Navigant Consulting, Inc. (b)

      1,017        17,218  

On Assignment, Inc. (b)

      1,119        55,111  

R.R. Donnelley & Sons Company

      1,494        18,466  

Resources Connection, Inc.

      605        8,077  

Robert Half International, Inc.

      2,944        133,216  

RPX Corporation (b)

      998        13,643  

Steelcase, Inc.

      1,843        25,157  

Team, Inc. (b)

      585        8,395  

Tetra Tech, Inc.

      1,334        63,298  

TrueBlue, Inc. (b)

      911        23,276  
     

 

 

  
        1,432,107  
     

 

 

  
 

 

26

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

   concluded

 

     SHARES      VALUE  

Automobiles & Components — 0.3%

 

Autoliv, Inc. (a)

      2,021      $ 219,056  

BorgWarner, Inc.

      4,769        222,903  

Harley-Davidson, Inc.

      4,029        196,092  
     

 

 

  
        638,051  
     

 

 

  

Food & Staples Retailing — 0.3%

 

Sysco Corporation

      11,601        610,445  
     

 

 

  

Healthy Living — 0.2%

      

Hain Celestial Group, Inc. (The) (b)

      2,291        102,431  

United Natural Foods, Inc. (b)

      1,194        46,005  

Whole Foods Market, Inc.

      7,173        299,544  
     

 

 

  
        447,980  
     

 

 

  

Utilities — 0.2%

      

American Water Works Company, Inc.

      4,040        327,644  
     

 

 

  

Total Common Stocks
(Cost $141,532,232)

         206,423,313  
     

 

 

  

SHORT-TERM INVESTMENT — 0.1%

 

     SHARES      VALUE  

UMB Money Market Fiduciary
Account, 0.01% (c)
(Cost $304,548)

       $ 304,548  
     

 

 

  

Total Short-term Investments
(Cost $304,548)

         304,548  
     

 

 

  

TOTAL INVESTMENTS (d) — 99.7%

 

(Cost $141,836,780)

         206,727,861  

Other Assets Less Liabilities — 0.3%

         554,219  
     

 

 

  

NET ASSETS — 100.0%

       $ 207,282,080  
     

 

 

  

 

(a) Securities whose values are determined or significantly influenced by trading in markets other than the United States or Canada.
(b) Non-income producing security.
(c) The rate quoted is the annualized seven-day yield of the fund at the period end.
(d) The cost of investments for federal income tax purposes is $145,058,879 resulting in gross unrealized appreciation and depreciation of $65,026,302 and $3,357,320 respectively, or net unrealized appreciation of $61,668,982.
 

 

See Notes to Financial Statements

 

27

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2017

  

 

COMMON STOCKS — 98.2%

 

     SHARES      VALUE  

Japan — 20.0%

      

Aeon Company, Ltd.

      9,200      $ 138,626  

Ajinomoto Company, Inc.

      5,100        102,575  

Asahi Kasei Corporation

      11,000        125,619  

Astellas Pharma, Inc.

      16,200        206,316  

Daikin Industries Ltd.

      1,800        190,572  

Daiwa House Industry Company, Ltd.

      5,400        188,359  

Denso Corporation

      3,500        168,089  

East Japan Railway Company

      2,700        253,212  

Eisai Company, Ltd.

      3,600        192,930  

FUJIFILM Holdings Corporation

      3,300        121,303  

Fujitsu Ltd.

      16,000        119,148  

Honda Motor Company, Ltd.

      10,900        305,111  

KDDI Corporation

      12,300        325,913  

Komatsu Ltd.

      6,500        174,314  

Kubota Corporation

      7,700        133,711  

Kyocera Corporation

      2,600        157,950  

Murata Manufacturing Company, Ltd.

      1,200        186,683  

Nissan Motor Company, Ltd.

      15,800        156,882  

Nitto Denko Corporation

      1,500        133,754  

NTT DOCOMO, Inc.

      9,600        222,931  

Panasonic Corporation

      15,000        206,599  

Sekisui House Ltd.

      6,900        119,440  

Sompo Holdings, Inc.

      2,500        98,056  

Sony Corporation

      8,300        341,000  

Sumitomo Metal Mining Company, Ltd.

      6,000        90,616  

Sumitomo Mitsui Trust Holdings, Inc.

      2,200        80,791  

Sysmex Corporation

      1,200        68,694  

Toray Industries, Inc.

      14,500        130,934  
     

 

 

  
     4,740,128  
     

 

 

  

France — 11.0%

      

Air Liquide SA

      2,617        320,894  

AXA SA

      12,787        377,661  

Danone SA

      4,163        310,658  

Essilor International SA

      1,608        203,592  

Kering

      523        182,808  

L’Oreal SA

      1,677        347,457  

Legrand SA

      2,719        187,830  

Schneider Electric SE (a)

      3,696        290,087  

Unibail-Rodamco SE

      896        224,103  

Vivendi SA

      7,129        164,786  
     

 

 

  
     2,609,876  
     

 

 

  
     SHARES      VALUE  

United Kingdom — 10.9%

      

Barratt Developments PLC

      13,094      $ 106,348  

Ferguson PLC

      2,842        169,694  

Kingfisher PLC

      19,925        77,326  

Legal & General Group PLC

      61,601        218,119  

Marks & Spencer Group PLC

      19,278        81,935  

Old Mutual PLC

      38,349        99,467  

RELX PLC

      12,490        272,056  

Standard Chartered PLC (a)

      21,976        245,659  

Unilever PLC

      8,429        480,742  

Vodafone Group PLC

      180,471        529,031  

Whitbread PLC

      2,083        105,778  

WPP PLC

      9,457        192,870  
     

 

 

  
     2,579,025  
     

 

 

  

Germany — 10.1%

      

adidas AG

      1,248        285,049  

Allianz SE

      3,225        687,465  

Deutsche Boerse AG

      1,511        157,781  

Henkel AG & Company KGaA

      1,830        259,227  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

      1,439        309,110  

SAP SE

      6,440        681,931  
     

 

 

  
     2,380,563  
     

 

 

  

Canada — 8.8%

      

Agnico Eagle Mines Ltd.

      1,830        85,438  

Bank of Montreal

      4,949        375,343  

Bank of Nova Scotia (The)

      8,511        530,197  

Canadian Imperial Bank of Commerce

      3,356        291,295  

Canadian National Railway Company

      5,954        470,475  

Potash Corporation of Saskatchewan, Inc.

      7,181        128,438  

Rogers Communications, Inc., Class B

      3,970        206,428  
     

 

 

  
     2,087,614  
     

 

 

  

Australia — 7.9%

      

AMP Ltd.

      38,119        164,330  

Brambles Ltd.

      13,548        100,171  

Goodman Group

      26,662        169,909  

National Australia Bank Ltd.

      17,569        421,178  

Ramsay Health Care Ltd.

      2,117        119,539  

Stockland

      40,541        136,309  

Transurban Group

      22,112        201,939  

Westpac Banking Corporation

      21,451        546,789  
     

 

 

  
     1,860,164  
     

 

 

  
 

 

28

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF  INVESTMENTS

July 31, 2017

   concluded

 

     SHARES      VALUE  

Switzerland — 6.9%

      

Givaudan SA

      85      $ 169,108  

Lonza Group AG (a)

      676        160,660  

Roche Holding AG

      4,243        1,074,142  

SGS SA

      103        227,637  
     

 

 

  
     1,631,547  
     

 

 

  

Netherlands — 6.6%

      

Akzo Nobel NV

      1,709        154,729  

ASML Holding NV

      2,408        363,145  

Koninklijke Philips NV

      6,829        260,989  

RELX NV

      9,263        194,572  

Unilever NV

      10,309        600,811  
     

 

 

  
     1,574,246  
     

 

 

  

Denmark — 3.7%

      

Novo Nordisk A/S, Class B

      11,842        503,630  

Novozymes A/S

      2,503        115,576  

Pandora A/S

      765        88,042  

Vestas Wind Systems A/S

      1,678        163,993  
     

 

 

  
     871,241  
     

 

 

  

Spain — 3.0%

      

Banco Bilbao Vizcaya Argentaria SA

      41,877        378,905  

Industria de Diseno Textil SA

      8,543        339,124  
     

 

 

  
     718,029  
     

 

 

  

Sweden — 2.0%

      

Assa Abloy AB, Class B

      9,702        207,845  

Boliden AB

      2,835        89,002  

Essity AB, Class B (a)

      5,872        170,259  
     

 

 

  
     467,106  
     

 

 

  

Italy — 1.9%

      

Assicurazioni Generali SpA

      9,031        163,813  

Intesa Sanpaolo SpA

      80,854        278,342  
     

 

 

  
     442,155  
     

 

 

  

Hong Kong — 1.6%

      

BOC Hong Kong Holdings Ltd.

      30,000        147,494  

Hang Seng Bank Ltd.

      10,617        230,820  
     

 

 

  
     378,314  
     

 

 

  

Ireland — 1.0%

      

CRH PLC

      6,881        241,540  
     

 

 

  
     SHARES      VALUE  

Singapore — 1.0%

      

DBS Group Holdings Ltd.

      14,449      $ 230,506  
     

 

 

  

Belgium — 0.6%

      

KBC Group NV

      1,809        149,564  
     

 

 

  

Finland — 0.5%

      

UPM-Kymmene OYJ

      4,447        121,067  
     

 

 

  

Norway — 0.5%

      

Orkla ASA

      10,754        110,777  
     

 

 

  

New Zealand — 0.2%

      

Fletcher Building Ltd.

      9,301        55,832  
     

 

 

  

Total Common Stocks
(Cost $21,372,003)

         23,249,294  
     

 

 

  

SHORT-TERM INVESTMENT — 0.4%

 

UMB Money Market Fiduciary
Account , 0.01% (b)
(Cost $89,006)

         89,006  
     

 

 

  

Total Short-term Investments
(Cost $89,006)

         89,006  
     

 

 

  

TOTAL INVESTMENTS (c) — 98.6%

 

   

(Cost $21,461,009)

         23,338,300  

Other Assets Less Liabilities — 1.4%

         322,685  
     

 

 

  

NET ASSETS — 100.0%

 

    $ 23,660,985  
     

 

 

  

 

(a) Non-income producing security.
(b) The rate quoted is the annualized seven-day yield of the fund at the period end.
(c) The cost of investments for federal income tax purposes is $21,512,089 resulting in gross unrealized appreciation and depreciation of $2,057,574 and $231,363 respectively, or net unrealized appreciation of $1,826,211.
 

 

See Notes to Financial Statements

 

29

GREEN CENTURY FUNDS STATEMENTS OF ASSETS AND LIABILITIES

July 31, 2017

 

 

     BALANCED FUND      EQUITY FUND     INTERNATIONAL INDEX
FUND		  

ASSETS:

        

Investments, at value (cost $190,729,979, $141,836,780 and $21,461,009, respectively)

    $ 225,692,797      $ 206,727,861     $ 23,338,300  

Foreign cash, at value (cost $61,535)

      —          —         62,604  
Receivables for:        

Securities sold

      —          3,385       —    

Capital stock sold

      121,111        634,488       269,543  

Interest

      462,875        7       2  

Dividends

      68,055        221,898       50,818  
  

 

 

     

 

 

    

 

 

  

Total assets

      226,344,838        207,587,639       23,721,267  
  

 

 

     

 

 

    

 

 

  

LIABILITIES:

        

Payable for investment securities purchased

      —          —         37,755  

Payable for capital stock repurchased

      392,237        87,953       2,386  

Accrued expenses

      282,672        217,606       20,141  
  

 

 

     

 

 

    

 

 

  

Total liabilities

      674,909        305,559       60,282  
  

 

 

     

 

 

    

 

 

  

NET ASSETS

    $ 225,669,929      $ 207,282,080     $ 23,660,985  
  

 

 

     

 

 

    

 

 

  

NET ASSETS CONSIST OF:

        

Paid-in capital

    $ 187,483,790      $ 144,404,271     $ 21,719,449  

Undistributed net investment income/accumulated net investment loss

      59,796        80,431       (2,540 ) 

Accumulated net realized gains/(losses) on investments and foreign currency transactions

      3,163,525        (2,093,703 )      64,517  
Net unrealized appreciation on:        

Investments

      34,962,818        64,891,081       1,877,291  

Foreign currency translations

      —          —         2,268  
  

 

 

     

 

 

    

 

 

  

NET ASSETS

    $ 225,669,929      $ 207,282,080     $ 23,660,985  
  

 

 

     

 

 

    

 

 

  

NET ASSET VALUE PER SHARE PER CLASS:

        
Individual Investor Class Shares:        

Net assets applicable to shares outstanding

    $ 225,669,929      $ 207,282,080     $ 8,086,631  

Shares of beneficial interest issued and outstanding

      8,833,117        5,447,748       715,260  

Net asset value per share

    $ 25.55      $ 38.05     $ 11.31  
  

 

 

     

 

 

    

 

 

  
Institutional Class Shares:        

Net assets applicable to shares outstanding

    $ —        $ —       $ 15,574,354  

Shares of beneficial interest issued and outstanding

      —          —         1,377,315  

Net asset value per share

    $ —        $ —       $ 11.31  
  

 

 

     

 

 

    

 

 

  

 

 

See Notes to Financial Statements

 

30

GREEN CENTURY FUNDS STATEMENTS OF OPERATIONS

 

     FOR THE
YEAR ENDED
JULY 31, 2017		      FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2017		  
     BALANCED FUND      EQUITY FUND      INTERNATIONAL INDEX
FUND		  

INVESTMENT INCOME:

         

Interest income (net of $282, $0 and $0 foreign withholding taxes, respectively)

    $ 1,428,135      $ 74      $ 16  

Dividend and other income (net of $20,391, $0 and $30,188 foreign withholding taxes, respectively)

      2,278,870        3,761,545        298,346  
  

 

 

     

 

 

     

 

 

  

Total investment income

      3,707,005        3,761,619        298,362  
  

 

 

     

 

 

     

 

 

  

EXPENSES:

         

Administrative services fee

      1,715,606        1,895,645        77,645  

Investment advisory fee

      1,343,546        441,303        27,207  
  

 

 

     

 

 

     

 

 

  

Total expenses

      3,059,152        2,336,948        104,852  
  

 

 

     

 

 

     

 

 

  

NET INVESTMENT INCOME

      647,853        1,424,671        193,510  
  

 

 

     

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS):

         
Net realized gain (loss) on:         

Investments

      3,776,773        1,436,238        64,517  

Foreign currency transactions

      —          —          (4,358 ) 
Change in net unrealized appreciation on:         

Investments

      13,909,438        23,990,608        1,877,291  

Foreign currency translations

      —          —          2,268  
  

 

 

     

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS

      17,686,211        25,426,846        1,939,718  
  

 

 

     

 

 

     

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 18,334,064      $ 26,851,517      $ 2,133,228  
  

 

 

     

 

 

     

 

 

  

 

See Notes to Financial Statements

 

31

GREEN CENTURY FUNDS STATEMENTS OF CHANGES IN NET ASSETS

 

    BALANCED FUND     EQUITY FUND     INTERNATIONAL INDEX
FUND		  
    FOR THE
YEAR ENDED
JULY 31, 2017		     FOR THE
YEAR ENDED
JULY 31, 2016		     FOR THE
YEAR ENDED
JULY 31, 2017		     FOR THE
YEAR ENDED
JULY 31, 2016		     FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2017		  

INCREASE (DECREASE) IN NET ASSETS:

          
From operations:          

Net investment income

   $ 647,853     $ 172,822     $ 1,424,671     $ 1,328,839     $ 193,510  

Net realized gain on investments and foreign currency transactions

     3,776,773       2,879,774       1,436,238       432,901       60,159  

Change in net unrealized appreciation (depreciation) on investments and foreign currency translations

     13,909,438       (5,590,572 )      23,990,608       7,175,126       1,879,559  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     18,334,064       (2,537,976 )      26,851,517       8,936,866       2,133,228  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Dividends and distributions to shareholders:          

From net investment income

          

Individual Investor Class

     (284,607 )      —         (1,131,540 )      (1,224,322 )      (56,292 ) 

Institutional Class

     —         —         —         —         (135,400 ) 

From net realized gains

          

Individual Investor Class

     (3,916,901 )      (5,191,912 )      (2,567,630 )      (1,678,100 )      —    

Institutional Class

     —         —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions

     (4,201,508 )      (5,191,912 )      (3,699,170 )      (2,902,422 )      (191,692 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Capital share transactions:          

Proceeds from sales of shares

          

Individual Investor Class

     43,679,879       52,916,098       53,553,039       49,302,683       10,129,789  

Institutional Class

     —         —         —         —         15,819,621  

Reinvestment of dividends and distributions

          

Individual Investor Class

     4,074,147       5,058,188       3,611,454       2,834,260       55,005  

Institutional Class

     —         —         —         —         135,400  

Payments for shares redeemed

          

Individual Investor Class1

     (30,021,602 )      (36,153,833 )      (46,519,786 )      (23,089,037 )      (2,850,001 ) 

Institutional Class2

     —         —         —         —         (1,570,365 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from capital share transactions

     17,732,424       21,820,453       10,644,707       29,047,906       21,719,449  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase in net assets

     31,864,980       14,090,565       33,797,054       35,082,350       23,660,985  

NET ASSETS:

          

Beginning of year

     193,804,949       179,714,384       173,485,026       138,402,676       —    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $ 225,669,929     $ 193,804,949     $ 207,282,080     $ 173,485,026     $ 23,660,985  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed net investment income/accumulated net investment loss at end of period

     59,796       —         80,431       20,271       (2,540 ) 

 

1 

Net of redemption fee proceeds of $7,443, $13,790, $5,463, $2,898 and $514, respectively.

2 

Net of redemption fee proceeds of $0, $0, $0, $0 and $243, respectively.

 

See Notes to Financial Statements

 

32

GREEN CENTURY BALANCED FUND FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS ENDED JULY 31,  
     2017     2016     2015     2014     2013  

Net Asset Value, beginning of year

    $ 23.93     $ 25.07     $ 23.74     $ 21.43     $ 18.06  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Income (loss) from investment operations:           

Net investment income

      0.08       0.02       0.01       0.09       0.13  

Net realized and unrealized gain (loss) on investments

      2.05       (0.48 )      2.51       2.31       3.37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) from investment operations

      2.13       (0.46 )      2.52       2.40       3.50  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Less dividends:           

Dividends from net investment income

      (0.03 )      —         (0.02 )      (0.09 )      (0.13 ) 

Distributions from net realized gains

      (0.48 )      (0.68 )      (1.17 )      —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total decrease from dividends

      (0.51 )      (0.68 )      (1.19 )      (0.09 )      (0.13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, end of year

    $ 25.55     $ 23.93     $ 25.07     $ 23.74     $ 21.43  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      9.07 %      (1.73 )%      10.84 %      11.20 %      19.44 % 
Ratios/Supplemental data:           

Net assets, end of year (in 000’s)

    $ 225,670     $ 193,805     $ 179,714     $ 121,907     $ 85,650  

Ratio of expenses to average net assets

      1.48 %      1.48 %      1.48 %      1.48 %      1.48 % 

Ratio of net investment income to average net assets

      0.31 %      0.10 %      0.03 %      0.44 %      0.66 % 

Portfolio turnover

      26 %      24 %      30 %      42 %      31 % 

 

GREEN CENTURY EQUITY FUND FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS ENDED JULY 31,  
     2017     2016     2015     2014     2013  

Net Asset Value, beginning of year

    $ 33.65     $ 32.73     $ 30.11     $ 26.30     $ 20.81  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Income from investment operations:           

Net investment income

      0.27       0.27       0.20       0.19       0.21  

Net realized and unrealized gain on investments

      4.84       1.27       2.96       3.79       5.48  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase from investment operations

      5.11       1.54       3.16       3.98       5.69  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Less dividends:           

Dividends from net investment income

      (0.22 )      (0.25 )      (0.19 )      (0.17 )      (0.20 ) 

Distributions from net realized gains

      (0.49 )      (0.37 )      (0.35 )      —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total decrease from dividends

      (0.71 )      (0.62 )      (0.54 )      (0.17 )      (0.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, end of year

    $ 38.05     $ 33.65     $ 32.73     $ 30.11     $ 26.30  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      15.42 %      4.83 %      10.54 %      15.16 %      27.49 % 
Ratios/Supplemental data:           

Net assets, end of year (in 000’s)

    $ 207,282     $ 173,485     $ 138,403     $ 95,358     $ 66,809  

Ratio of expenses to average net assets

      1.25 %      1.25 %      1.25 %      1.25 %      1.25 % 

Ratio of net investment income to average net assets

      0.76 %      0.89 %      0.68 %      0.72 %      0.92 % 

Portfolio turnover

      17 %      19 %      13 %      32 %      17 % 

 

See Notes to Financial Statements

 

33

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2017		  

Net Asset Value, beginning of period

    $ 10.00  
  

 

 

  
Income from investment operations:   

Net investment income

      0.10  

Net realized and unrealized gain on investments

      1.31  
  

 

 

  

Total increase from investment operations

      1.41  
  

 

 

  
Less dividends:   

Dividends from net investment income

      (0.10 ) 

Distributions from net realized gains

      —    
  

 

 

  

Total decrease from dividends

      (0.10 ) 
  

 

 

  

Net Asset Value, end of period

    $ 11.31  
  

 

 

  

Total return

      14.18 %(a) 
Ratios/Supplemental data:   

Net assets, end of period (in 000’s)

    $ 8,087  

Ratio of expenses to average net assets

      1.28 %(b) 

Ratio of net investment income to average net assets

      1.79 %(b) 

Portfolio turnover

      13 %(a) 

 

(a) Not annualized.
(b) Annualized.

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INSTITUTIONAL CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2017		  

Net Asset Value, beginning of period

    $ 10.00  
  

 

 

  
Income from investment operations:   

Net investment income

      0.12  

Net realized and unrealized gain on investments

      1.31  
  

 

 

  

Total increase from investment operations

      1.43  
  

 

 

  
Less dividends:   

Dividends from net investment income

      (0.12 ) 

Distributions from net realized gains

      —    
  

 

 

  

Total decrease from dividends

      (0.12 ) 
  

 

 

  

Net Asset Value, end of period

    $ 11.31  
  

 

 

  

Total return

      14.36 %(a) 
Ratios/Supplemental data:   

Net assets, end of period (in 000’s)

    $ 15,574  

Ratio of expenses to average net assets

      0.98 %(b) 

Ratio of net investment income to average net assets

      2.09 %(b) 

Portfolio turnover

      13 %(a) 

 

(a) Not annualized.
(b) Annualized.

 

See Notes to Financial Statements

 

34

   GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

  

 

NOTE 1 — Organization and Signif 1/2    icant Accounting Policies

Green Century Funds (the “Trust”) is a Massachusetts business trust which offers three separate series, the Green Century Balanced Fund (the “Balanced Fund”), the Green Century Equity Fund (the “Equity Fund”) and the Green Century MSCI International Index Fund (the “Inte       rnational Index Fund”), each a “Fund” and collectively, the “Funds”. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end, diversified 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, the Equity Fund commenced operations on September 13, 1995 and the International Index Fund commenced operations on September 30, 2016.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) 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.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (the “FASB”) Accounting Standard Codification Topic 946 “Financial Services—Investment Companies”.

The following is a summary of the Funds’ significant accounting policies:

 

  (A)

Investment Valuation:    Equity securities listed on U.S. national securities exchanges other than NASDAQ are valued at last sale price. If a last sale price is not available, securities listed on U.S. 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 U.S. 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. Securities, if any, for which there are no such valuations or quotations available, or for which the market quotation or valuation provided by a pricing service is deemed 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, and short-term obligations maturing in sixty days or less are valued at amortized cost, both of which approximate market value.

For non-U.S. securities traded in foreign markets, the International Index Fund uses a fair value model developed by an independent pricing service to assist in valuing those securities. If an event occurs after the time at which the market for foreign securities held by the Fund closes but before the time that the Fund’s next

 

35

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

NAV is calculated, such event may cause the closing price on the foreign exchange to not represent the readily available reliable market value quotation for such securities at the time the Fund determines its NAV. In such a case, the Fund will use the fair value of such securities as determined under the Fund’s valuation procedures. Events after the close of trading on a foreign market that could require a Fund to fair value some or all of its foreign securities include, among others, securities trading in the U.S. and other markets, corporate announcements, natural and other disasters, and political and other events. Among other elements of analysis in the determination of a security’s fair value, the Board has authorized the use of one or more independent research services to assist with such determinations. An independent research service may use statistical analyses and quantitative models to help determine fair value as of the time the Fund calculates its NAV. There can be no assurance that such models accurately reflect the behavior of the applicable markets or the effect of the behavior of such markets on the fair value of securities, or that such markets will continue to behave in a fashion that is consistent with such models. Unlike the closing price of a security on an exchange, fair value determinations employ elements of judgment. Consequently, the fair value assigned to a security may not represent the actual value that the Fund could obtain if it were to sell the security at the time of the close of the NYSE. Pursuant to procedures adopted by the Board, the Fund is not obligated to use the fair valuations suggested by any research service, and valuation recommendations provided by such research services may be overridden if other events have occurred or if other fair valuations are determined in good faith to be more accurate. Unless an event is such that it causes the Fund to determine that the closing prices for one or more securities do not represent readily available reliable market value quotations at the time the Fund determines its NAV, events that occur between the time of the close of the foreign market on which they are traded and the close of regular trading on the NYSE will not be reflected in the Fund’s NAV.

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. Investments valued at amortized cost. 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 July 31, 2017:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

COMMON STOCKS

      $142,859,159        $            —          $          —          $142,859,159  

BONDS & NOTES

      —          72,100,049        —          72,100,049  

CERTIFICATES OF DEPOSIT

      —          332,063        —          332,063  

SHORT-TERM OBLIGATIONS

      —          10,401,526        —          10,401,526  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $142,859,159        $82,833,638        $          —          $225,692,797  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

36

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

The following is a summary of the inputs used to value the Equity Fund’s net assets as of July 31, 2017:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

COMMON STOCKS

      $206,423,313        $       —          $          —          $206,423,313  

SHORT-TERM OBLIGATIONS

      —          304,548        —          304,548  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $206,423,313        $304,548        $          —          $206,727,861  
  

 

 

     

 

 

     

 

 

     

 

 

  

The following is a summary of the inputs used to value the International Index Fund’s net assets as of July 31, 2017:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  
COMMON STOCKS            

JAPAN

      $          —          $4,740,128        $          —          $4,740,128  

FRANCE

      —          2,609,876        —          2,609,876  

UNITED KINGDOM

      —          2,579,025        —          2,579,025  

GERMANY

      —          2,380,563        —          2,380,563  

CANADA

      2,087,614        —          —          2,087,614  

AUSTRALIA

      —          1,860,164        —          1,860,164  

SWITZERLAND

      —          1,631,547        —          1,631,547  

NETHERLANDS

      —          1,574,246        —          1,574,246  

DENMARK

      —          871,241        —          871,241  

SPAIN

      —          718,029        —          718,029  

SWEDEN

      170,259        296,847        —          467,106  

ITALY

      —          442,155        —          442,155  

HONG KONG

      —          378,314        —          378,314  

IRELAND

      —          241,540        —          241,540  

SINGAPORE

      —          230,506        —          230,506  

BELGIUM

      —          149,564        —          149,564  

FINLAND

      —          121,067        —          121,067  

NORWAY

      —          110,777        —          110,777  

NEW ZEALAND

      —          55,832        —          55,832  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL COMMONS STOCKS

      2,257,873        20,991,421        —          23,249,294  
  

 

 

     

 

 

     

 

 

     

 

 

  

SHORT-TERM OBLIGATIONS

      —          89,006        —          89,006  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $2,257,873        $21,080,427        $          —          $23,338,300  
  

 

 

     

 

 

     

 

 

     

 

 

  

The Funds adopted the FASB amendments to authoritative guidance which require the Funds to disclose details of transfers in and out of Level 1 and Level 2 measurements and Level 2 and Level 3 measurements and the reasons for the transfers. For the period ended July 31, 2017, there were no transfers in and out of Level 1, Level 2 and Level 3. None of the Funds held any Level 3 securities during the period ended July 31, 2017. It is the Funds’ policy to recognize transfers into and out of all Levels at the end of the reporting period.

  (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. Income, expenses and realized and unrealized gains and losses on investments are allocated to each class of shares in proportion to their relative shares outstanding.

 

37

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   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 and the International Index Fund are 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 the International Index Fund or possible declines in the value of securities which are expected to be sold by the Equity Fund or the International Index 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 period ended July 31, 2017, neither the Balanced Fund, the Equity Fund nor the International Index Fund utilized options or wrote put or call options.
  (D) Repurchase Agreements:    The Funds may 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. As of July 31, 2017, neither the Balanced Fund, the Equity Fund, nor the International Index Fund held repurchase agreements.
  (E) Currency Translation and Contracts:    Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts on the date of valuation. Purchases and sales of securities, and income and expense items denominated in foreign currencies, are translated into U.S. dollar amounts on the respective dates of such transactions. Occasionally, events impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board of Trustees. The Funds do not separately report the effect of fluctuations in foreign exchange rates from changes in market prices on securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in fair value of assets and liabilities other than investments in securities held at the end of the reporting period, resulting from changes in exchange rates. When a Fund purchases or sells foreign securities, it enters into foreign exchange contracts to minimize foreign exchange risk from the trade date to the settlement date of the transactions. A foreign exchange contract is an agreement between two parties to exchange different currencies at an agreed-upon exchange rate on a specified date. The International Index Fund had no open foreign currency spot contracts outstanding as of July 31, 2017.

 

38

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

  (F) 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. GAAP. To the extent that these differences are attributable to permanent book and tax accounting differences, the components of net assets have been adjusted.
  (G) 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 (“RICs”). Accordingly, no provisions for Federal income or excise tax are necessary.

Accounting for Uncertainty in Income Taxes 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 had no material uncertain tax positions and have not recorded a liability for unrecognized tax benefits as of July 31, 2017. Also, the Funds had recognized no interest and penalties related to uncertain tax benefits through July 31, 2017. At July 31, 2017, the tax years 2014 through 2017 remain open to examination by the Internal Revenue Service.

  (H) 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 period ended July 31, 2017, the Balanced Fund, Equity Fund and International Index Fund received $7,443, $5,463 and $757 respectively, in redemption fees. Redemption fees are recorded as an adjustment to paid-in capital.
  (I) Indemnification:     The Funds’ organizational documents provide that trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote. As of July 31, 2017, no liability has been accrued.
  (J) Offsetting of Assets and Liabilities:    As of July 31, 2017, there are no master netting arrangements related to the Funds. The Funds’ Statements of Assets and Liabilities present derivative instruments on a gross basis, if applicable. As of July 31, 2017, no derivative instruments were held by the Funds.

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. The International Index Fund pays Green Century a fee, accrued daily and paid monthly, at an annual rate of 0.28% of the International Index Fund’s average daily net assets.

 

39

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

  (B) Subadvisers:     Trillium Asset Management, LLC (“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 year ended July 31, 2017, Green Century accrued fees of $738,451 to Trillium. Northern Trust Investments, Inc. (“Northern Trust”) is the subadviser for the Equity Fund and International Index Fund. For the Equity Fund, Northern Trust is paid a fee by the Adviser based on Northern Trust’s fee schedule of the greater of $75,000 or 0.10% of the value of the average daily net assets of the Fund up to but not including $50 million, 0.05% of the average daily net assets of the Fund from and including $50 million up to but not including $100 million and 0.03% of the average daily net assets of the Fund equal to or in excess of $100 million for its services. For the International Index Fund, Northern Trust is paid a fee by the Adviser based on Northern Trust’s fee schedule of the greater of $100,000 or 0.17% of the value of the average daily net assets of the Fund up to but not including $50 million, 0.12% of the average daily net assets of the Fund from and including $50 million up to but not including $100 million and 0.08% of the average daily net assets of the Fund equal to or in excess of $100 million for its services. For the year ended July 31, 2017, Green Century accrued fees of $101,087 to Northern Trust for the Equity Fund and for the period ended July 31, 2017, Green Century accrued fees of $83,562 to Northern trust for the International Index Fund.
  (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 1.48% 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 1.25% of the Fund’s average daily net assets. The International Index 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 1.28% of the Fund’s Individual Investor Class average daily net assets, and 0.98% of the Fund’s Institutional Class average daily net assets.
  (D) Subadministrator:     Pursuant to a Subadministrative and Fund Accounting Services Agreement with the Administrator, UMB Fund Services, Inc. (“UMBFS”) as Subadministrator and Fund Accountant, is responsible for conducting fund accounting and certain day-to-day administration of the Trust subject to the supervision and direction of the Administrator. For the year ended July 31, 2017, Green Century accrued fees of $125,102 and $113,255, to UMBFS related to services performed on behalf of the Balanced Fund and the Equity Fund, respectively. For the period ended July 31, 2017, Green Century accrued fees of $75,973 to UMBFS related to services performed on behalf of the International Index Fund.
  (E)

Index Agreements:    The Equity Fund invests in the securities of the companies included in the MSCI KLD 400 Social ex Fossil Fuels Index (the “KLD Index”). The Index is owned and maintained by MSCI ESG Research (“MSCI”). For the use of the KLD Index for the Equity Fund, MSCI is paid by the Adviser an annual license fee of $26,000, plus the greater of $26,000 or at an annual rate of 0.05% on the first $100 million of average daily net assets, 0.04% on the next $100 million of average daily net assets, and 0.03% on average daily net assets in excess of $200 million. The International Index Fund invests in the securities included in the MSCI World ex USA SRI ex Fossil Fuels Index (the “World Index”). The Index is owned and maintained by MSCI. For the use of the World Index for the International Index Fund, MSCI is paid by the Adviser an annual license fee of $16,000, plus the greater of $25,000 or at an annual rate of 0.05% on the first $100 million of average daily net

 

40

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

  assets, 0.04% on the next $100 million of average daily net assets, and 0.03% on average daily net assets in excess of $200 million. For the year ended July 31, 2017, Green Century accrued fees of $110,783 to MSCI for the Equity Fund. For the period ended July 31, 2017, Green Century accrued fees of $22,877 for the International Index Fund.

NOTE 3 — Investment Transactions

For the period ended July 31, 2017, the Balanced Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $59,204,616 and $51,684,948, respectively. The Equity Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $39,691,783 and $31,669,479, respectively. The International Index Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $22,822,067 and $1,515,612, respectively.

NOTE 4 — Federal Income Tax Information

The tax basis of the components of distributable net earnings (deficit) at July 31, 2017 were as follows:

 

     BALANCED FUND      EQUITY FUND      INTERNATIONAL INDEX FUND  

Undistributed ordinary income

    $ 1,399,014      $ 333,532      $ 33,001  

Undistributed long-term capital gains

      1,467,597        875,295        80,056  
  

 

 

     

 

 

     

 

 

  

Tax accumulated earnings

      2,866,611        1,208,827        113,057  
  

 

 

     

 

 

     

 

 

  

Accumulated capital and other losses

      —          —          —    

Unrealized appreciation (depreciation)

      35,319,528        61,668,982        1,826,211  

Foreign currency translations

      —          —          2,268  
  

 

 

     

 

 

     

 

 

  

Distributable net earnings (deficit)

    $ 38,186,139      $ 62,877,809      $ 1,941,536  
  

 

 

     

 

 

     

 

 

  

The tax character of distributions paid during the period ended July 31, 2017 and the fiscal year ended July 31, 2016 were as follows:

 

     BALANCED FUND      EQUITY FUND  
     YEAR ENDED
JULY 31, 2017		      YEAR ENDED
JULY 31, 2016		      YEAR ENDED
JULY 31, 2017		      YEAR ENDED
JULY 31, 2016		  

Ordinary income

    $ 694,269      $ 385,878      $ 1,131,540      $ 1,461,588  

Long-term capital gains

      3,507,239        4,806,034        2,567,630        1,440,834  

 

     INTERNATIONAL INDEX FUND  
    

PERIOD ENDED

JULY 31, 2017

  

Ordinary income

    $ 191,692  

Long-term capital gains

      —    

 

41

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   concluded

 

NOTE 5 — Capital Share Transactions

Capital Share transactions for the Balanced Fund, the Equity Fund and the International Index Fund were as follows:

 

     BALANCED FUND     EQUITY FUND  
     YEAR ENDED
JULY 31, 2017		     YEAR ENDED
JULY 31, 2016		     YEAR ENDED
JULY 31, 2017		     YEAR ENDED
JULY 31, 2016		  

Shares sold

      1,795,775       2,284,256       1,531,879       1,578,127  

Reinvestment of dividends

      171,939       219,635       105,260       88,899  

Shares redeemed

      (1,234,278 )      (1,573,793 )      (1,345,694 )      (739,540 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     733,436       930,098       291,445       927,486  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     INTERNATIONAL INDEX INDIVIDUAL
INVESTOR CLASS		     INTERNATIONAL INDEX
INSTITUTIONAL CLASS		  
    

PERIOD ENDED

JULY 31, 2017

     PERIOD ENDED
JULY 31, 2017		  

Shares sold

      983,656       1,508,010  

Reinvestment of dividends

      5,042       12,463  

Shares redeemed

      (273,438 )      (143,158 ) 
  

 

 

    

 

 

  
     715,260       1,377,315  
  

 

 

    

 

 

  

NOTE 6 — Subsequent Events

Subsequent to July 31, 2017 and through the date on which the financial statements were available for issuance, management has evaluated subsequent events and concluded there were no subsequent events requiring accrual or disclosure.

 

42

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Trustees and Shareholders of

Green Century Funds:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Green Century Balanced Fund, Green Century Equity Fund, and Green Century MSCI International Index Fund (collectively, the “Funds”), each a series of Green Century Funds, as of July 31, 2017, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 2017, by correspondence with custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned Funds as of July 31, 2017, and the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

 

LOGO

Boston, Massachusetts

September 29, 2017

 

43

TAX INFORMATION

For the year ended July 31, 2017, the Balanced Fund and Equity Fund had 77.48% and 100%, respectively, of dividends paid from net investment income qualified for the 70% dividends received deduction available to corporate shareholders. For the period ended July 31, 2017, the International Fund had 0% of dividends paid from net investment income qualified for the 70% dividends received deduction available to corporate shareholders.

For the year ended July 31, 2017, the Balanced Fund and Equity Fund had 87.75% and 100%, respectively, of dividends paid from net investment income, designated as qualified dividend income. For the period ended July 31, 2017, the International Fund had 100% of dividends paid from net investment income, designated as qualified dividend income.

GREEN CENTURY FUNDS TRUSTEES AND OFFICERS

The following table presents information about each Trustee and each Officer of the Trust as of July 31, 2017. Each Trustee and each Officer of the Trust noted as an “interested person” (as defined in the 1940 Act), and noted with an asterisk, is interested by virtue of his or her position with Green Century as described below. The Trust does not hold annual shareholder meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. This means that each Trustee will be elected to hold office until his or her successor is elected or until he or she retires, resigns, dies, or is removed from office.

The Trust’s Registration Statement includes additional information about the Trustees and is available, without charge, upon request by calling the following toll-free number: 1-800-93-GREEN.

 

NAME, ADDRESS AND AGE  

POSITION(S) HELD

WITH THE TRUST

AND LENGTH OF

TIME SERVED

  

PRINCIPAL OCCUPATION(S) DURING

PAST 5 YEARS AND OTHER DIRECTORSHIPS HELD

  

NUMBER OF

PORTFOLIOS

OVERSEEN

BY TRUSTEE

  
Independent Trustees:    

Jonathan Darnell

114 State Street

Suite 200

Boston, MA 02109

Age: 57

   Trustee since 2014   Managing Director, AltEnergy, LLC (since 2016); Managing Director, Pickwick Capital Partners (since 2014); President/Founder, Patolan Partners (since 2011); Vice President, Morgan Stanley, Private Wealth Management Group (2004 to 2011); Advisory Board member, CardioReady LLC (since 2011); Board member, Voices for Progress (since 2014).     3  

Daniel S. Kern

114 State Street

Suite 200

Boston, MA 02109

Age: 56

   Trustee since 2015   Chief Investment Officer, TFC Financial Management (since 2015); President and Chief Investment Officer, Advisor Partners (2011-2015); Managing Director and Portfolio Manager, Charles Schwab Investment Management (2003-2011)     3  

Peter D. Kinder

114 State Street

Suite 200

Boston, MA 02109

Age: 70

   Trustee since 2015   Retired; Director, Trillium Asset Management (2013-2014)     3  

 

44

NAME, ADDRESS AND AGE  

POSITION(S) HELD

WITH THE TRUST

AND LENGTH OF

TIME SERVED

  

PRINCIPAL OCCUPATION(S) DURING

PAST 5 YEARS AND OTHER DIRECTORSHIPS HELD

  

NUMBER OF

PORTFOLIOS

OVERSEEN

BY TRUSTEE

  

Laurie Moskowitz

114 State Street

Suite 200

Boston, MA 02109

Age: 52

   Trustee since 2014   Senior Director, US Campaigns, The ONE Campaign (since 2011); Founder and Principal Partner, FieldWorks (1999 to 2011).     3  

Bancroft R. Poor

114 State Street

Suite 200

Boston, MA 02109

Age: 61

   Trustee since 2014   Vice President for Operations/Chief Financial Officer/Assistant Treasurer, Massachusetts Audubon Society (since 1994); Trustee and Chair of Finance and Administration Committee, the Quebec Labrador Foundation (since 2007); Director and Treasurer of US Offshore Wind Collaborative (2010 to 2013).     3  

Mary Raftery

114 State Street

Suite 200

Boston, MA 02109

Age: 52

   Trustee since 2009   Senior Advisor, Funder Collaborations, ClimateWorks Foundation (since 2014); Organizational Development Consultant, Self-employed (since 2007); Director of Major Donor Development and Special Projects, BlueGreen Alliance (2011 to 2012); Chief Operating Officer, Apollo Alliance (2007 to 2011).     3  

James H. Starr

114 State Street

Suite 200

Boston, MA 02109

Age: 69

   Chairperson since 2009; Trustee since 1991   Consultant, Rainville Petito, PLLC (since 2016); Consultant, Danielson Rainville Attorneys, PLLC (2015); Director and President, Gunnison Valley Housing Foundation (since 2011); Director (since 2011) and President (since 2016), Coal Creek Watershed Coalition; President, Peanut Mine, Inc. (2002 to 2012); Senior Attorney, Starr and Associates, PC (1982-2014).     3  
Interested Trustees:      

Douglas H. Phelps*

114 State Street

Suite 200

Boston, MA 02109

Age: 70

   Trustee since 1997   President (1996 to 2003) and Director (since 1996), Green Century Capital Management, Inc.; President and Executive Director, The Public Interest Network (since 1982); President, U.S. PIRG (since 1983); President, Environment America (since 2007); President, Telefund, Inc. (since 1988); President, Grassroots Campaigns, Inc. (since 2003).     3  

Wendy Wendlandt*

114 State Street

Suite 200

Boston, MA 02109

Age: 55

   Trustee since 1991   President (2006 to 2013) and Director (since 2006), Green Century Capital Management, Inc.; Political Director, The Public Interest Network (since 1989); Senior Staff, Center for Public Interest Research (since 1989); Acting Director, Fair Share (since 2012); President, Environment America Research and Policy Center (since 2007).     3  
Officers:      

Kristina A. Curtis*

114 State Street

Suite 200

Boston, MA 02109

Age: 64

   President since 2005; Treasurer since 2008 and from 1991-2005   Senior Vice President of Finance and Operations (since 2002), Treasurer and Director (since 1991), Senior Vice President (since 1991), Green Century Capital Management, Inc.    
 Not
applicable		  
 

Amy Puffer*

114 State Street

Suite 200

Boston, MA 02109

Age: 58

   Chief Compliance Officer since 2004; Secretary and Assistant Treasurer since 2006   Chief Compliance Officer (since 2004), Clerk and Director (since 2006), Green Century Capital Management, Inc.    
 Not
applicable		  
 

 

45

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, LLC

Two Financial Center

60 South Street, Suite 1100

Boston, MA 02111

INVESTMENT SUBADVISER (Equity Fund and International 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)

235 West Galena Street

Milwaukee, WI 53212

CUSTODIAN

UMB Bank, n.a.

928 Grand Blvd

Kansas City, MO 64106

TRANSFER AGENT

Atlantic Shareholder Services, LLC

Three Canal Plaza

Portland, ME 04101

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

Two Financial Center

60 South Street

Boston, MA 02111

LOGO

July 31, 2017

 

  

Balanced

Fund

Equity

Fund

International

Fund

 

 

LOGO

An investment for your future.

 

Printed on recycled paper with soy-based ink.

  

Item 2. Code of Ethics

 

  (a) The registrant has adopted a Code of Ethics applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer or controller.

 

  (c) During the period covered by this report, there were no amendments to the provisions of the Code of Ethics referred to in Item 2(a) above.

 

  (d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the Code of Ethics referred to in Item 2(a) above.

 

  (e) Not applicable.

 

  (f) The Code of Ethics is filed as an exhibit to this Form N-CSR.

 

Item 3. Audit Committee Financial Expert

The Board of Trustees of the registrant has determined that Bancroft R. Poor, a member of the Board’s audit committee, qualifies as an “audit committee financial expert” as that term is defined in the instructions to Item 3 of Form N-CSR. Mr. Poor is “independent” as that term is defined in the instructions to Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services

 

  (a) Audit Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are as follows.

For the fiscal year ended 7/31/17: $67,800.00

For the fiscal year ended 7/31/16: $43,100.00

 

  (b) Audit-Related Fees. No fees were billed in either of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this item.

 

  (c) Tax Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning are as follows. The services comprising the fees disclosed under this category are tax compliance monitoring and tax filing preparation.

For the fiscal year ended 7/31/17: $13,900.00

For the fiscal year ended 7/31/16: $11,400.00

  (d) All Other Fees. No fees were billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this item.

 

  (e)(1) The Charter of the Audit Committee of the Board requires that the Committee approve (a) all audit and permissible non-audit services to be provided to the Funds and (b) all permissible non-audit services to be provided by the Funds’ independent auditors to the Funds’ investment adviser or administrator or any entity controlling, controlled by, or under common control with the investment adviser or administrator that provides ongoing services to the Funds, if the engagement relates directly to the operations and financial reporting of the Funds. The Audit Committee has the duty to consider whether the non-audit services provided by the Funds’ auditor to the Funds’ investment adviser, administrator, or any adviser affiliate that provides ongoing services to the Funds, which services were not pre-approved by the Audit Committee, are compatible with maintaining the auditor’s independence and to review and approve the fees proposed to be charged to the Funds by the auditors for each audit and non-audit service.

 

  (e)(2) Zero percent of the services described in each of paragraphs (b) through (d) of this Item were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

  (f) Not applicable.

 

  (g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant were the tax compliance, tax advice and tax planning fees listed in paragraph (c) of this Item and are as follows. No non-audit fees were billed by the registrant’s accountant for services rendered to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.

For the fiscal year ended 7/31/17: $13,900.00

For the fiscal year ended 7/31/16: $11,400.00

 

  (h) Not applicable.

 

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 30a-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) Code of Ethics: Incorporated by reference to the Registrant’s Form N-CSR filed on October 7, 2013.

 

     (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

October 10, 2017

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

October 10, 2017

 

/s/ Kristina A. Curtis

Kristina A. Curtis

Treasurer and Principal Financial Officer

October 10, 2017