N-CSR 1 d304896dncsr.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, 2022

 

 

 

Item 1. Reports to Stockholders

 

  (a)

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).

 

  (b)

Not applicable.

 

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ANNUAL REPORT

Green Century Balanced Fund

Green Century Equity Fund

Green Century MSCI International Index Fund

July 31, 2022

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, visit www.greencentury.com.

Dear Shareholder,

More than 30 years ago, the group of environmental and public health nonprofits that founded Green Centuryo decided to help people save for their future without compromising their values. It was a simple concept, but one that was only being used by a handful of pioneers in the socially and environmentally responsible investing space. Since then, Green Century has grown into a leader in the environmentally and socially responsible investing field with more than $1B in Assets Under Management, providing mutual funds for individuals and institutions to keep their money out of the most irresponsible industries.

As we finish celebrating our 30th year of providing individuals a way to align their investments with their values, I wanted to share some Green Century milestones we have been able to accomplish with your support. Green Century has followed a three-pronged approach of values-based investing, shareholder advocacy, and non-profit ownership that work together in a way that lets you align your investments with your values and helps protect the planet at the same time.

Thank you for your investments and support over the last three decades. As we look back, here are a few of our noteworthy accomplishments

Investment Strategy:

 

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In 1992, we created the Green Century Equity Fund and the Green Century Balanced Fund as no-load funds to make them more accessible to everyday investors in an era when funds with “loads” or purchase fees were common.

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In 2009, the Green Century Balanced Fund published the first known carbon footprint report for a U.S. mutual fund, setting the stage for the current focus on how the companies in a portfolio measure and manage their greenhouse gas emissions.

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In 2014, Green Century became the first family of fossil fuel free mutual funds that are environmentally friendly and diversified.

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In 2016, the Green Century MSCI International Fund was launched and became the first environmentally friendly and diversified fossil fuel free international mutual index fund in the U.S.

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In 2022, Green Century joined the Tobacco Free Pledge to encourage other asset owners to stop investing in companies that produce tobacco products responsible for preventable loss of life and environmental damage.

Shareholder Advocacy:

Throughout the years, Green Century has led an award-winning shareholder advocacy program that has helped persuade hundreds of companies to make changes to their environmental policies and practices. Some of our achievements include:

 

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Securing an agreement in 2006 with Whole Foods1 to stop selling polycarbonate baby bottles and children’s sippy cups containing the toxic chemical bisphenol A, more commonly known as BPA

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Winning an Outstanding Achievement award in 2014 for our work that has protected Indonesian tropical forests and endangered species such as the orangutan.

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Convincing Amazon1 to commit to carbon neutrality for half of its package delivery by 2030 in a new “Shipment Zero” program

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Securing an agreement with Royal Caribbean1 to address the growing problem of food waste in 2019

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Filing the highest number of shareholder proposals on environmental issues in 2021 and winning the most majority proxy votes, including one at Costco1, of any firm in the U.S. in 2022.

Non-profit Ownership:

Green Century was founded by environmental and public health organizations. Because of this unique ownership structure, Green Century’s profits belong to our non-profit owners who can use the funds for their critical work. The achievements of these nine Public Interest Research Groups (PIRGs) that work at the state and national level include:

 

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The Stop the Overuse of Antibiotics Campaign helped California and Maryland pass laws banning the routine use of medically important antibiotics on farms operating within those states. The campaign organizes medical professionals to help decision-makers understand the grave public health consequences of antibiotic resistance

  •  

The No Bees, No Food Campaign is working to restore bee populations to healthy levels and save our food supply by working to ban the sale of bee-killing pesticides for our homes, parks, and gardens in 21 states around the country.

  •  

The Beyond Plastic Campaign helped convince Maine, Maryland, Vermont, and Oregon to ban polystyrene foam, a non recyclable product made from fossil fuels that takes hundreds of years to fully degrade.

Thank you for investing in the Green Century Funds.

Sincerely,

Leslie Samuelrich, President

Green Century Funds

° Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds).

 

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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, 2022 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-PORT, Part F. The Green Century Funds’ Forms N-PORT, Part F are available on the EDGAR database on the SEC’s website at www.sec.gov. Copies may be obtained upon payment of a duplicating fee, by writing the SEC’s Public Reference Section, Washington DC 20549-0102 or by electronic request at the following e-mail address: publicinfo@sec.gov. The information on Form N-PORT, Part F 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 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, 2022 the Green Century Balanced Fund (the Balanced Fund or the Fund) was diversified in a number of ways. Equity holdings represented 64.5% and

bonds constituted 33.7% of the Fund’s net asset value. The Fund had 1.8% invested in cash, cash equivalents, and other assets, less liabilities. The 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 71 equity holdings at fiscal year-end, none of which represented more than 4.4% of total net assets. Generally, larger, more established 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 sector, with (as a percent of total net assets) Technology (19.1%), Health Care (8.7%), and Consumer Discretionary (8.0%) 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

 

GREEN CENTURY BALANCED FUND

INVESTMENT BY INDUSTRY (unaudited)

 

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including Healthy Living, Capital Goods, and Transportation. Green Century’s environmental screens prohibit traditional energy and utility companies from being owned, 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 and designated Social Impact Bonds. The issuers of Green Bonds have indicated that the proceeds from the bonds will be used for environmentally positive goals such as greenhouse gas reduction, climate adaptation, and climate change mitigation. Issuers of designated Social Impact Bonds have indicated that the proceeds from the bonds will be used for projects supporting such issues as poverty alleviation, low-income housing, fair trade, and community development. As of July 31st, 26.3% of the total portfolio and 78.1% of the market value of the bonds held in the Fund were designated Green / Sustainable or Social Impact 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 55 bonds diversified across corporate and government agency issuers. In an effort to dampen volatility, the weighted average maturity (4.98 years) and modified duration (4.15 years) remain in the intermediate-range. The weighted average yield to maturity was 1.08%. All fixed income holdings were investment grade at time of purchase and remain investment grade at July 31, 2022.

Economic Environment.    Equity markets witnessed considerable volatility over the last 12-months, with a major pullback in valuation as marked by P/E (Price/Earnings) contraction. During the period, investors grappled with conflicting economic data and signals about the direction of global bank tightening in the face of persistent inflation increases. The portfolio managers now anticipate that a recession is increasingly likely at the end of 2022 or the beginning of 2023. Normally, fiscal and monetary policy tightening act with a significant lag, only leading to declines in demand after 12-18 months. However, the Fed’s interest rate increases in this cycle have been very aggressive. Further, the Fed’s rate hikes are following, rather than leading, other global central bank rate increases, likely shortening that time frame. Leading indicators, such as consumer and business sentiment and surveys of new orders from manufacturers, are falling, predicting declines in economic activity. Immediate, co-incident economic indicators do not yet show declines. The portfolio managers see some slight softening in the labor market, but so far businesses continue to add jobs, and layoffs have only ticked up slightly. Yet, inflation measures continue to be stubbornly high, creating consumer discomfort, and non-food, non-energy consumer spending is softening.

While the portfolio managers now anticipate a recession, and also do not see the obvious economic and financial imbalances that preceded either the Great Financial Crisis or the dot.com collapse, they are concerned about growing labor market inconsistencies, including rapid readjustments in pay scales and changes in labor market participation. In addition, the slow underlying growth of the economy, and the low neutral rate of interest, limit the Fed’s scope for policy, raising the possibility that the Fed may need to push the economy into a deep and persistent recession before inflationary forces recede. This is not the base case, but such a recession would entail a much more tumultuous market. While waiting for, hopefully, a mild recession, both bond and equity markets already show distress, with a significant amount of economic decline already priced in. The S&P 500 dropped more than 20% from its high on January 3, beginning a bear market. Equity market declines have resulted from declines in valuation, or price-to-earnings (P/E) compression in response to higher interest rates. As economic activity slows, the portfolio managers expect

 

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that corporate earnings will decline. They have already seen some early signs of this, with retailers such as Target and Wal-Mart reporting unexpectedly soft consumer spending for more discretionary items. Wider credit spreads, especially for below-investment grade debt, will constrain spending by more leveraged companies. There has already been significant compression in valuation; declines in corporate earnings from here will have a muted effect because the valuation multiples are already reduced.

Deliberately slowing economic growth may ease supply chain disruptions, but it can be a painful remedy. While the Fed intends to slow growth without causing a recession, it has limited control; consumers and businesses make their own decisions about spending and investing based on the information that they have. That information now includes the knowledge that the Fed is determined to raise interest rates to a restrictive level, and that the Fed views the risks to economic growth as skewed to the downside. With rapidly declining consumer and business confidence, there is expectation both consumers and businesses will curtail spending; this will likely translate into reduced corporate earnings, and could reasonably initiate another downturn for equity markets. However, neither a recession nor a bear market means the end of the world, and the underlying strength of the economy means that recovery will happen when the Fed stops raising rates. The portfolio managers also note that recovery from bear markets is usually sudden and sharp, so that attempts to time the market are usually unsuccessful. While they have become more cautious, they believe that they are adequately positioned for more risk-off markets. As always, they will be carefully monitoring economic data and our positioning as these higher interest rates begin to affect economic activity. In a slowing growth environment, the expectation is that focusing on quality, lower-leverage, profitable companies with steadier earnings and revenues will be protective. The portfolio managers continue to avoid positioning for extremes and acknowledge that an environment of high uncertainty means an increased likelihood of rapid rotation, as market participants grasp at informational straws. In such a period, thoughtful analysis of company management, strategies, and prospects assumes added importance.

They remain committed to a long-term focus and investment in high-quality and sustainability centered companies seeking to meet the challenges of this year of recovery and transition, and beyond. In addition, they are seeking out companies that acknowledge the ongoing climate crisis and which are setting their own targets for greenhouse gas reduction. In such challenging and difficult times as these, companies will be increasingly distinguished by the quality and integrity of their management, and by management’s attention to evolving social and environmental considerations. This is all the more true as regulatory frameworks continue to be dismantled. The growing environmental, social, and policy challenges facing the world make it increasingly imperative that we, as shareholders, engage our companies in creating the transition to a lower-carbon economy and recognizing the human rights and dignity of their workers. We expect our companies to act with integrity and purpose, and to take leading roles in creating alternative mechanisms, through legislation or internal policies, to protect the needs and concerns of their employees, communities, and planet.

Investment Strategy and Performance.    The portfolio managers believe that strong environmental, social, and governance practices may enhance corporate profitability and reduce certain types of risks. The Fund specifically avoid risks associated with exposure to fossil fuels. 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 that the portfolio managers believe have attractive environmental, social, and financial characteristics. New holdings over the reporting period include Levi Strauss1, Paycom Software1, Sunrun1, West Pharmaceuticals1, and Wolfspeed1.

At July 31, 2022, the Fund held over $104 million in Green / Sustainability or Social Impact Bonds and Notes. Some holdings include notes issued by Johnson Controls Intl1, NXPI1, and National Community Renaissance Cal1, and POAH1.

For the year ending July 31, 2022, the Balanced Fund’s Institutional Share Class returns were –7.72%, versus –5.10% return for its Custom Balanced Index,2 an index comprised of the S&P 1500 Index3 (60% weighting) and of the BofA Merrill Lynch 1-10 Year US Corporate and Government Index4 (40% weighting).* The Lipper Balanced Index5 returned –8.08% for the same twelve-month period.

The lack of exposure to traditional energy was a primary reason for underperformance in the period, as well as the Fund’s overweight to equities.

The Fund’s high-quality fixed income exposure performed relatively in-line with the benchmark as intentioned, with slight underperformance in the period. 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.

 

Green Century Balanced Fund

Total expense ratio: 1.46% for Individual Share Class and 1.16% for
Institutional Share Class

   CUMULATIVE
RETURN*		     AVERAGE ANNUAL RETURN*  
  Latest
Quarter		     One Year     Five Years     Ten Years  
June 30, 2022   Green Century Balanced Fund — Individual Share Class     –12.43%       –12.11%       6.69%       7.95%  
  Green Century Balanced Fund — Institutional Share Class**     –12.39%       –11.88%       6.79%       8.00%  
    Custom Balanced Index     –10.65%       –9.25%       7.28%       8.39%  
July 31, 2022   Green Century Balanced Fund — Individual Share Class     0.73%       –7.97%       7.98%       8.76%  
  Green Century Balanced Fund — Institutional Share Class**     0.82%       –7.72%       8.09%       8.82%  
    Custom Balanced Index     0.87%       –5.10%       8.29%       8.92%  

* 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.

**Institutional Shares were offered as of November 28, 2020. The Institutional Share Class performance prior to November 28, 2020 reflects the performance of the Fund’s Individual Investor Class.

 

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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.

 

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The S&P 500® Index6 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, 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.

 

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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 Index7 (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 (ESG) 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 the Index based on a thorough review of environmental, social, and governance factors and includes

 

GREEN CENTURY EQUITY FUND

INVESTMENT BY INDUSTRY (unaudited)

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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 for the latest quarter ended July 31, 2022 was –0.63% for the individual share class and –0.58% for the institutional share class, underperforming the S&P 500® Index that returned 0.39% for the same period. Additional results for various time periods are below:*

 

Green Century Equity Fund

Total expense ratio: 1.25% for Individual Share Class and 0.95% for
Institutional Share Class

   CUMULATIVE
RETURN*		     AVERAGE ANNUAL RETURN*  
  Latest
Quarter		     One Year     Five Years     Ten Years  
June 30, 2022   Green Century Equity Index Fund — Individual Share Class     –17.02%       –13.35%       11.09%       12.58%  
  Green Century Equity Fund — Institutional Share Class     –16.95%       –13.09%       11.36%       12.72%  
    S&P 500® Index     –16.10%       –10.62%       11.31%       12.96%  
July 31, 2022   Green Century Equity Index Fund — Individual Share Class     –0.63%       –8.64%       12.44%       13.44%  
  Green Century Equity Fund — Institutional Share Class     –0.58%       –8.38%       12.72%       13.58%  
    S&P 500® Index     0.39%       –4.64%       12.83%       13.80%  

* 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. Institutional shares were offered as of April 30, 2018. The Institutional Share Class performance for periods prior to April 30, 2018 reflects the performance of the Fund’s Individual Investor Class.

 

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For the year ended July 31, 2022, the Equity Fund Institutional and Investor share classes returned –8.38% and –8.64%, respectively, underperforming the S&P 500 Index which returned –4.64%. 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.

The strongest performing sectors in the Equity Fund were Consumer Staples, Utilities, and Health Care which returned 7.58%, –1.05% and –1.89%, respectively. The worst performing sectors were Communication Services and Information Technology, which returned –17.86% and –11.89%, respectively, for the year. Within the

S&P 500 Index, Energy, Utilities and Consumer Staples were the strongest performing sectors, gaining 67.44%, 15.55%, and 7.43%, respectively. The worst performing sectors were Communication Services and Consumer Discretionary, which returned –28.98% and –10.29%, respectively, for the year.

U.S. equities performed exceptionally well and finished 2021 near all-time highs. For the third consecutive year, U.S. equities posted double-digit gains. U.S. equities were flat in the third quarter of 2021 due to concerns on peak growth, inflation, and unwinding stimulus building a wall of worry in September. U.S. equities finished the fourth quarter strong. Investors focused on solid consumer spending and employment data, while digesting stubbornly high inflation figures. The first quarter of 2022 saw the S&P 500 realize its first quarterly decline since the beginning of 2020. Continued high inflation compounded by Russia’s invasion of Ukraine led to a pullback in investor risk appetite. Headwinds for global

 

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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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financial markets continued in the second quarter of 2022, with negative returns in most major asset classes outside of cash. US equities outperformed non-US developed equities as measured by the S&P 500 and MSCI World Ex USA indices8, with 1 year returns of –4.64% and –13.20% respectively.

 

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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 Index9 (the Index), a custom index calculated by MSCI, Inc. The Index is comprised of the common stocks of the approximately 240 companies in the MSCI World ex USA SRI Index, 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 (ESG) 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

 

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND

INVESTMENT BY COUNTRY (unaudited)

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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.

Both share classes of the International Fund underperformed its benchmark for the latest quarter ended July 31, 2022. The Fund’s total return was –3.52% for the individual share class and –3.46% for the institutional share class for this period, while the MSCI World ex USA Index returned –4.12% for the same period. Additional results for various time periods are below:*

 

Green Century MSCI International Fund

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

   CUMULATIVE
RETURN*		     AVERAGE ANNUAL RETURN*  
 

Inception Date:

September 30, 2016

  
  Latest
Quarter		     One Year     Five Years     Since
Inception		  
June 30, 2022  

Green Century MSCI International Index Fund — Individual Share Class

     –15.57%       –21.24%       2.12%       3.65%  
  Green Century MSCI International Index Fund — Institutional Share Class     –15.54%       –21.07%       2.40%       3.93%  
  MSCI World ex USA Index     –14.66%       –16.76%       2.66%       4.42%  
July 31, 2022  

Green Century MSCI International Index Fund — Individual Share Class

     –3.52%       –18.36%       2.59%       4.57%  
  Green Century MSCI International Index Fund — Institutional Share Class     –3.46%       –18.05%       2.91%       4.87%  
  MSCI World ex USA Index     –4.12%       –13.20%       3.06%       5.22%  

* 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.

 

14

The Institutional and Investor share classes of the Green Century MSCI International Index Fund, which closely tracks the MSCI World ex USA SRI ex Fossil Fuels Index, returned –18.05% and –18.36%, respectively, for the one year period ended July 31, 2022, while the MSCI World ex USA Index (Index), returned –13.20% during the same period.

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 International Fund and the Index.

The strongest performing sectors in the International Fund were Communication Services, Health Care, and Financials which returned –3.83%, –7.41% and –10.58%, respectively. The worst performing sectors were Information Technology and Materials, which returned –36.71% and –26.01%, respectively, for the year. Within the MSCI World ex USA Index, Energy, Utilities, and Financials were the strongest performing sectors, returning 33.25%, –7.45%, and –7.90%, respectively. The worst performing sectors were Information Technology and Consumer Discretionary which returned –29.21% and –21.52%, respectively, for the year.

U.S. equities performed exceptionally well and finished 2021 near all-time highs. For the third consecutive year, U.S. equities posted double-digit gains. U.S. equities were flat in the third quarter of 2021 due to concerns on peak growth, inflation, and unwinding stimulus building a wall of worry in September. U.S. equities finished the fourth quarter strong. Investors focused on solid consumer

 

LOGO

 

LOGO

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.

 

15

spending and employment data, while digesting stubbornly high inflation figures. The first quarter of 2022 saw the S&P 500 realize its first quarterly decline since the beginning of 2020. Continued high inflation compounded by Russia’s invasion of Ukraine led to a pullback in investor risk appetite. Headwinds for global financial markets continued in the second quarter of 2022, with negative returns in most major asset classes outside of cash. US equities outperformed non-US developed equities as measured by the S&P 500 and MSCI World Ex USA indices, with 1 year returns of –4.64% and –13.20% respectively.

 

 

1 As of July 31, 2022, the following companies comprised the listed percentages of each of the Green Century Funds:

 

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

Whole Foods

     0.13 %      0.00 %      0.00 % 

Amazon

     0.00 %      0.00 %      0.00 % 

Royal Caribbean

     0.00 %      0.05 %      0.00 % 

Costco

     1.43 %      0.00 %      0.00 % 

Levi Strauss

     0.62 %      0.00 %      0.00 % 

Paycom Software

     0.58 %      0.09 %      0.00 % 

Sunrun

     0.94 %      0.00 %      0.00 % 

West Pharmaceuticals

     0.41 %      0.14 %      0.00 % 

Wolfspeed

     0.60 %      0.00 %      0.00 % 
Portfolio Holdings   GREEN
CENTURY
BALANCED
FUND		     GREEN
CENTURY
EQUITY
FUND		     GREEN
CENTURY
INTERNATIONAL
INDEX FUND		  

Johnson Controls International

     0.43 %      0.21 %      0.00 % 

NXPI

     1.15 %      0.00 %      0.00 % 

National Community Renaissance

     0.88 %      0.00 %      0.00 % 

Preservation of Affordable Housing Inc (POAH)

     0.76 %      0.00 %      0.00 % 
 

 

Portfolio composition will change due to ongoing management of the Funds. Please refer to the Green Century Funds website for current information regarding the Funds’ portfolio holdings. Note that some of the holdings discussed above may not have been held by any Fund during the fiscal year ended July 31, 2022, 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.

2 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). It is not possible to invest directly in the Custom Balanced Index.

3 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.

4 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.

5 The Lipper Balanced Fund Index includes the 30 largest funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds. Typically the stock/bond ratio ranges around 60%/40%. It is not possible to invest directly in the Lipper Balanced Fund 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 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.

8 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 countries and excludes the United States. With 1,023 constituents, the index covers

 

16

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.

9 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 ESG ratings and excludes companies whose products have negative social or environmental impacts. It is not possible to invest directly in an 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 a variety of risks including interest rate, credit, and inflation risk. A sustainable investment strategy which incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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

Distributor: UMB Distribution Services, LLC 9/22

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.

 

17

GREEN CENTURY FUNDS EXPENSE EXAMPLE

For the six months ended July 31, 2022 (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, 2022 to July 31, 2022 (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, 2022		      ENDING
ACCOUNT VALUE
JULY 31, 2022		      EXPENSES
PAID DURING
THE PERIOD1 		 

Balanced Fund

         

Actual Expenses — Individual Investor Class

   $ 1,000.00      $ 926.00      $ 6.98  

Actual Expenses — Institutional Class

     1,000.00        927.30        5.55  

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

     1,000.00        1,017.75        7.31  

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

     1,000.00        1,019.24        5.81  

 

18

    BEGINNING
ACCOUNT VALUE
FEBRUARY 1, 2022		     ENDING
ACCOUNT VALUE
JULY 31, 2022		      EXPENSES
PAID DURING
THE PERIOD1 		 

Equity Fund

       

Actual Expenses — Individual Investor Class

  $ 1,000.00     $ 895.40      $ 5.87  

Actual Expenses — Institutional Class

    1,000.00       896.70        4.47  

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

    1,000.00       1,018.80        6.26  

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

    1,000.00       1,020.29        4.76  
    BEGINNING
ACCOUNT VALUE
FEBRUARY 1, 2022		     ENDING
ACCOUNT VALUE
JULY 31, 2022		      EXPENSES
PAID DURING
THE PERIOD1 		 

MSCI International Index Fund

       

Actual Expenses — Individual Investor Class

  $ 1,000.00     $ 855.40      $ 5.89  

Actual Expenses — Institutional Class

    1,000.00       856.50        4.51  

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 (1.46% for the Balanced Fund Individual Investor Class, 1.16% for the Balanced Fund Institutional Class, 1.25% for the Equity Fund Individual Investor Class, 0.95% for the Equity Fund Institutional Class, 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).

 

19

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

  

 

COMMON STOCKS — 64.5%

 

     SHARES      VALUE  

Software & Services — 8.0%

      

Adobe, Inc. (a)

      6,480      $ 2,657,578  

Autodesk, Inc. (a)

      11,965        2,588,269  

Mastercard, Inc., Class A

      20,267        7,170,262  

Microsoft Corporation

      53,091        14,904,767  

Paycom Software, Inc. (a)

      7,024        2,321,362  

PayPal Holdings, Inc. (a)

      25,725        2,225,984  
     

 

 

  
        31,868,222  
     

 

 

  

Technology Hardware & Equipment — 5.3%

 

Apple, Inc

      108,052        17,559,531  

Palo Alto Networks, Inc. (a)

      6,983        3,485,215  
     

 

 

  
        21,044,746  
     

 

 

  

Capital Goods — 4.8%

      

Deere & Company

      8,719        2,992,187  

Eaton Corporation PLC

      21,989        3,262,948  

Illinois Tool Works, Inc.

      11,220        2,331,067  

Rockwell Automation, Inc.

      8,926        2,278,629  

Trane Technologies PLC

      20,961        3,081,057  

Westinghouse Air Brake Technologies Corporation

      33,630        3,143,396  

Xylem, Inc.

      21,084        1,940,361  
     

 

 

  
        19,029,645  
     

 

 

  

Healthcare Equipment & Services — 4.5%

 

   

Baxter International, Inc.

      28,987        1,700,378  

CVS Health Corp

      31,621        3,025,497  

Elevance Health, Inc.

      14,251        6,799,152  

Medtronic PLC

      22,868        2,115,747  

Stryker Corporation

      12,760        2,740,210  

West Pharmaceutical Services, Inc.

      4,741        1,628,818  
     

 

 

  
        18,009,802  
     

 

 

  

Renewable Energy & Energy Efficiency — 4.3%

 

First Solar, Inc. (a)

      38,872        3,854,936  

Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT

      88,127        3,180,503  

Ormat Technologies, Inc.

      19,664        1,701,723  

SolarEdge Technologies, Inc. (a)

      13,202        4,754,436  

Sunrun, Inc. (a)

      114,058        3,728,556  
     

 

 

  
        17,220,154  
     

 

 

  

Pharmaceuticals & Biotechnology — 4.2%

 

AstraZeneca PLC ADR (b)

      69,516        4,604,045  

IQVIA Holdings, Inc. (a)

      15,895        3,819,092  

Merck & Company, Inc.

      27,300        2,438,982  
     SHARES      VALUE  

Pharmaceuticals & Biotechnology — (continued)

 

Roche Holding AG ADR (b)

      55,382      $ 2,296,691  

Thermo Fisher Scientific, Inc.

      5,889        3,524,036  
     

 

 

  
        16,682,846  
     

 

 

  

Banks — 4.1%

 

East West Bancorp, Inc.

      43,189        3,100,106  

First Republic Bank

      23,150        3,766,736  

KeyCorp

      161,925        2,963,228  

PNC Financial Services Group, Inc. (The)

      22,699        3,766,672  

SVB Financial Group (a)

      6,707        2,706,610  
     

 

 

  
        16,303,352  
     

 

 

  

Media & Entertainment — 4.0%

      

Alphabet, Inc., Class A (a)

      105,940        12,322,941  

Walt Disney Company (The) (a)

      32,150        3,411,115  
     

 

 

  
        15,734,056  
     

 

 

  

Retailing — 3.7%

      

Home Depot, Inc. (The)

      11,443        3,443,656  

Target Corporation

      26,209        4,282,027  

TJX Companies, Inc. (The)

      69,602        4,256,858  

Tractor Supply Company

      14,712        2,817,054  
     

 

 

  
        14,799,595  
     

 

 

  

Semiconductors — 3.6%

      

Analog Devices, Inc.

      19,593        3,369,212  

ASML Holding NV (b)

      5,655        3,248,458  

NVIDIA Corporation

      30,001        5,449,082  

Wolfspeed, Inc. (a)

      28,718        2,392,210  
     

 

 

  
        14,458,962  
     

 

 

  

Consumer Durables & Apparel — 2.5%

 

   

Levi Strauss & Company, Class A

      129,446        2,449,118  

Lululemon Athletica, Inc. (a)

      7,754        2,407,695  

NIKE, Inc., Class B

      26,195        3,010,329  

VF Corporation

      44,341        1,981,156  
     

 

 

  
        9,848,298  
     

 

 

  

Real Estate — 2.4%

 

   

American Tower Corporation REIT

      10,311        2,792,528  

AvalonBay Communities, Inc. REIT

      10,785        2,307,343  

Jones Lang LaSalle, Inc. (a)

      9,787        1,866,087  

Prologis, Inc. REIT

      18,865        2,500,745  
     

 

 

  
        9,466,703  
     

 

 

  
 

 

20

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Food & Staples Retailing — 2.1%

 

   

Costco Wholesale Corporation

      10,528      $ 5,698,806  

Sysco Corporation

      30,845        2,618,741  
     

 

 

  
        8,317,547  
     

 

 

  

Insurance — 1.8%

 

   

Aflac, Inc.

      56,782        3,253,609  

Travelers Companies, Inc. (The)

      25,349        4,022,886  
     

 

 

  
        7,276,495  
     

 

 

  

Materials — 1.6%

 

   

Ball Corporation

      28,637        2,102,529  

Ingevity Corporation (a)

      30,562        2,050,710  

International Flavors & Fragrances, Inc.

      17,903        2,220,867  
     

 

 

  
        6,374,106  
     

 

 

  

Household & Personal Products — 1.5%

 

   

Procter & Gamble Company (The)

      17,374        2,413,422  

Unilever PLC ADR (b)

      74,953        3,647,213  
     

 

 

  
        6,060,635  
     

 

 

  

Consumer Services — 1.4%

 

   

Bright Horizons Family Solutions, Inc. (a)

      25,343        2,373,879  

Starbucks Corporation

      39,204        3,323,715  
     

 

 

  
        5,697,594  
     

 

 

  

Transportation — 1.4%

 

   

J.B. Hunt Transport Services, Inc.

      15,948        2,922,790  

United Parcel Service, Inc., Class B

      14,085        2,745,026  
     

 

 

  
        5,667,816  
     

 

 

  

Utilities — 1.0%

 

   

American Water Works Company, Inc.

      24,572        3,819,472  
     

 

 

  

Diversified Financials — 1.0%

 

   

LPL Financial Holdings, Inc.

      18,194        3,819,284  
     

 

 

  

Food & Beverage — 0.9%

 

   

McCormick & Company, Inc.

      39,734        3,470,765  
     

 

 

  

Automobiles & Components — 0.4%

 

   

Aptiv PLC (a)

      15,823        1,659,674  
     

 

 

  

Total Common Stocks
(Cost $150,638,309)

         256,629,769  
     

 

 

  
     PRINCIPAL
AMOUNT		      VALUE  

BONDS & NOTES — 33.7%

 

Green and Sustainability Bonds — 22.5%

 

Apple, Inc.
2.85%, due 2/23/23 (c)

    $ 3,000,000      $ 2,996,736  

Apple, Inc.
3.00%, due 6/20/27 (c)

      2,000,000        1,998,484  

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

      1,000,000        980,569  

Asian Development Bank
3.125%, due 9/26/28 (b)

      4,000,000        4,061,312  

Bank of America Corporation
2.456% (3-Month USD Libor+87 basis points), due 10/22/25 (c)

      4,000,000        3,845,836  

Bank of Nova Scotia (The)
2.375%, due 1/18/23

      1,845,000        1,840,596  

BlueHub Loan Fund, Inc.
2.89%, due 1/1/27

      2,000,000        1,795,510  

Boston Properties LP
4.50%, due 12/1/28 (c)

      5,000,000        4,984,680  

Bridge Housing Corporation
3.25%, due 7/15/30 (c)

      4,500,000        4,110,102  

Century Housing Corporation
0.60%, due 2/15/24

      2,500,000        2,389,750  

Citigroup, Inc.
1.678% (SOFR Rate+166.7 basis points), due 5/15/24 (c)

      5,000,000        4,921,925  

City & County of San Francisco CA Community Facilities District No. 2014-1
2.75%, due 9/1/23

      650,000        644,628  

City of San Francisco CA Public Utilities Commission Water Revenue
2.806%, due 11/1/23

      2,000,000        1,988,728  

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

      2,000,000        1,981,092  

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

      500,000        486,720  

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

      2,000,000        1,964,174  

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

      500,000        486,879  
 

 

21

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     PRINCIPAL
AMOUNT		      VALUE  

Green and Sustainability Bonds — (continued)

 

Johnson Controls International plc / Tyco Fire & Security Finance SCA
1.75%, due 9/15/30 (b)(c)

    $ 2,000,000      $ 1,691,280  

National Australia Bank Ltd.
3.625%, due 6/20/23 (b)

      2,000,000        2,008,810  

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

      1,000,000        978,810  

New Jersey Infrastructure Bank
3.00%, due 9/1/31

      2,500,000        2,354,558  

NXP BV / NXP Funding LLC / NXP USA, Inc.
5.00%, due 1/15/33 (b)(c)

      4,500,000        4,592,524  

PNC Financial Services Group, Inc. (The)
2.20%, due 11/1/24 (c)

      5,000,000        4,869,310  

Preservation Of Affordable Housing, Inc.
4.479%, due 12/1/32 (c)

      3,000,000        3,008,880  

Prologis LP
1.25%, due 10/15/30 (c)

      4,500,000        3,716,491  

Regency Centers LP
3.75%, due 6/15/24 (c)

      2,000,000        1,988,120  

San Francisco Bay Area Rapid Transit District
2.622%, due 8/1/29

      2,000,000        1,896,832  

Starbucks Corporation
2.45%, due 6/15/26 (c)

      4,500,000        4,354,542  

United States International Development Finance Corporation
3.28%, due 9/15/29

      599,311        595,958  

United States International Development Finance Corporation
3.33%, due 5/15/33

      197,413        195,554  

United States International Development Finance Corporation
3.43%, due 6/1/33

      199,394        197,100  

United States International Development Finance Corporation
3.05%, due 6/15/35

      1,270,950        1,229,597  
     PRINCIPAL
AMOUNT		      VALUE  

Green and Sustainability Bonds — (continued)

 

United States International Development Finance Corporation
2.58%, due 7/15/38

    $ 2,882,115      $ 2,674,516  

Verizon Communications, Inc.
3.875%, due 2/8/29 (c)

      3,500,000        3,497,399  

Visa, Inc.
0.75%, due 8/15/27 (c)

      5,000,000        4,457,535  

Xylem, Inc.
2.25%, due 1/30/31 (c)

      4,500,000        3,880,116  
     

 

 

  
        89,665,653  
     

 

 

  

U.S. Government Agencies — 3.1%

 

Federal Farm Credit Banks Funding Corporation
2.26%, due 11/13/24

      500,000        493,424  

Federal Farm Credit Banks Funding Corporation
1.82%, due 12/18/25

      3,000,000        2,903,049  

Federal Farm Credit Banks Funding Corporation
2.80%, due 11/12/27

      3,000,000        3,001,107  

Federal Home Loan Banks
1.875%, due 12/9/22

      3,000,000        2,989,869  

Federal Home Loan Banks
0.75%, due 12/14/23 (c)

      3,000,000        2,917,998  
     

 

 

  
        12,305,447  
     

 

 

  

Community Development Financial Institutions — 2.9%

 

Capital Impact Partners
2.60%, due 12/15/22

      2,000,000        1,976,306  

Capital Impact Partners
1.00%, due 9/15/25 (c)

      1,500,000        1,372,837  

Enterprise Community Loan Fund, Inc.
4.152%, due 11/1/28 (c)

      3,000,000        2,932,836  

Local Initiatives Support Corporation
1.00%, due 11/15/25

      2,000,000        1,840,372  

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

      2,000,000        1,980,692  

Reinvestment Fund, Inc. (The)
3.78%, due 2/15/26

      1,400,000        1,377,550  
     

 

 

  
        11,480,593  
     

 

 

  
 

 

22

GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   concluded

 

     PRINCIPAL
AMOUNT		      VALUE  

Software & Services — 1.7%

 

Adobe, Inc.
3.25%, due 2/1/25 (c)

    $ 3,500,000      $ 3,516,065  

Salesforce, Inc.
3.70%, due 4/11/28 (c)

      3,000,000        3,074,532  
     

 

 

  
        6,590,597  
     

 

 

  

Real Estate — 0.9%

      

National Community Renaissance of California
3.27%, due 12/1/32 (c)

      4,000,000        3,509,432  
     

 

 

  

Capital Goods — 0.9%

      

Trane Technologies Luxembourg Finance SA
3.80%, due 3/21/29 (c)

      3,500,000        3,385,994  
     

 

 

  

Media & Entertainment — 0.8%

 

Alphabet, Inc.
1.998%, due 8/15/26 (c)

      3,500,000        3,377,294  
     

 

 

  

Diversified Financials — 0.5%

      

State Street Corporation
3.10%, due 5/15/23

      2,000,000        2,004,066  
     

 

 

  

Insurance — 0.3%

      

Travelers Property Casualty Corporation
7.75%, due 4/15/26

      1,000,000        1,145,891  
     

 

 

  

Healthy Living — 0.1%

      

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

      500,000        532,234  
     

 

 

  

Total Bonds & Notes
(Cost $141,261,894)

         133,997,201  
     

 

 

  

SHORT-TERM INVESTMENTS — 1.6%

 

            VALUE  

UMB Money Market Fiduciary Account, 0.01% (e)
(Cost $6,629,153)

       $ 6,629,153  
     

 

 

  

Total Short-term Investments
(Cost $6,629,153)

         6,629,153  
     

 

 

  

TOTAL INVESTMENTS (f) — 99.8%

 

(Cost $298,529,356)

         397,256,123  

Other Assets Less Liabilities — 0.2%

         666,092  
     

 

 

  

NET ASSETS — 100.0%

       $ 397,922,215  
     

 

 

  

 

 

PLC – Public Limited Company

REIT – Real Estate Investment Trusts

ADR – American Depository Receipt

LP – Limited Partnership

LLC – Limited Liability Company

(a)

Non-income producing security.

(b)

Securities whose value are determined or significantly influenced by trading in markets other than the United States or Canada.

(c)

Callable

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. The total value of these securities is $1,511,044.

(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 $298,192,787 resulting in gross unrealized appreciation and depreciation of $113,359,366 and $14,296,030 respectively, or net unrealized appreciation of $99,063,336.

 

 

See Notes to Financial Statements

 

23

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

  

 

COMMON STOCKS — 99.5%

      
     SHARES      VALUE  

Software & Services — 23.0%

      

Accenture PLC, Class A (a)

      17,727      $ 5,429,071  

Adobe, Inc. (b)

      13,232        5,426,708  

ANSYS, Inc. (b)

      2,434        679,062  

Autodesk, Inc. (b)

      6,196        1,340,319  

Automatic Data Processing, Inc.

      11,786        2,841,840  

Cadence Design Systems, Inc. (b).

      7,776        1,446,958  

Citrix Systems, Inc.

      3,504        355,340  

Cognizant Technology Solutions Corporation, Class A

      14,783        1,004,653  

Fortinet, Inc. (b)

      19,255        1,148,561  

International Business Machines Corporation

      25,262        3,304,017  

Intuit, Inc.

      7,559        3,448,189  

Mastercard, Inc., Class A

      24,472        8,657,949  

Microsoft Corporation

      199,759        56,080,342  

NortonLifeLock, Inc

      16,249        398,588  

Okta, Inc., Class A (b)

      4,143        407,878  

Oracle Corporation

      44,900        3,495,016  

Paycom Software, Inc. (b)

      1,426        471,279  

PayPal Holdings, Inc. (b)

      31,106        2,691,602  

salesforce, Inc. (b)

      27,657        5,089,441  

ServiceNow, Inc. (b)

      5,618        2,509,336  

Splunk, Inc. (b)

      4,431        460,425  

Teradata Corporation (b)

      2,946        112,802  

Visa, Inc., Class A

      46,507        9,864,600  

VMware, Inc., Class A

      5,846        679,305  

Western Union Company (The)

      11,037        187,850  

Workday, Inc., Class A (b)

      5,471        848,552  

ZoomInfo Technologies, Inc. (b)

      7,315        277,165  
     

 

 

  
        118,656,848  
     

 

 

  

Media & Entertainment — 9.0%

      

Alphabet, Inc., Class A (b)

      168,700        19,623,184  

Alphabet, Inc., Class C (b)

      159,420        18,594,749  

Electronic Arts, Inc.

      7,922        1,039,604  

John Wiley & Sons, Inc., Class A .

      1,232        64,335  

Liberty Global PLC, Series A (a)(b)

      4,367        95,026  

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

      8,909        203,927  

New York Times Company (The), Class A

      4,670        149,207  

Omnicom Group, Inc.

      5,831        407,237  

Scholastic Corporation

      806        37,938  

Walt Disney Company (The) (b)

      51,119        5,423,726  

Warner Bros Discovery, Inc. (b)

      62,162        932,430  
     

 

 

  
        46,571,363  
     

 

 

  
     SHARES      VALUE  

Semiconductors — 7.1%

      

Advanced Micro Devices, Inc. (b)

      45,880      $ 4,334,284  

Analog Devices, Inc.

      14,693        2,526,608  

Applied Materials, Inc.

      24,827        2,631,165  

Intel Corporation

      114,346        4,151,903  

Lam Research Corporation

      3,923        1,963,501  

Microchip Technology, Inc.

      15,671        1,079,105  

NVIDIA Corporation

      70,127        12,737,167  

NXP Semiconductors NV (a)

      7,391        1,359,057  

ON Semiconductor Corporation (b)

      12,055        805,033  

Skyworks Solutions, Inc.

      4,580        498,670  

Texas Instruments, Inc.

      25,876        4,628,958  
     

 

 

  
        36,715,451  
     

 

 

  

Pharmaceuticals & Biotechnology — 6.8%

 

AbbVie, Inc.

      49,615        7,120,249  

Agilent Technologies, Inc.

      8,466        1,135,291  

Amgen, Inc.

      15,614        3,863,997  

Biogen, Inc. (b)

      4,102        882,176  

BioMarin Pharmaceutical, Inc. (b)

      5,136        441,953  

Bio-Techne Corporation

      1,096        422,267  

Bristol-Myers Squibb Company

      61,207        4,515,852  

Gilead Sciences, Inc.

      35,252        2,106,307  

Illumina, Inc. (b)

      4,383        949,708  

IQVIA Holdings, Inc. (b)

      5,379        1,292,412  

Jazz Pharmaceuticals PLC (a)(b)

      1,719        268,267  

Merck & Company, Inc.

      70,877        6,332,151  

Mettler-Toledo International, Inc. (b)

      637        859,778  

Vertex Pharmaceuticals, Inc. (b)

      7,141        2,002,408  

Waters Corporation (b)

      1,690        615,211  

Zoetis, Inc.

      13,269        2,422,256  
     

 

 

  
        35,230,283  
     

 

 

  

Capital Goods — 5.6%

      

3M Company

      16,055        2,299,718  

A.O. Smith Corporation

      3,644        230,556  

AGCO Corporation

      1,768        192,571  

Air Lease Corporation, Class A

      3,044        112,963  

Allegion PLC (a)

      2,462        260,233  

Applied Industrial Technologies, Inc.

      1,075        108,134  

Builders FirstSource, Inc. (b)

      5,345        363,460  

Carrier Global Corporation

      24,127        977,867  

Caterpillar, Inc.

      15,055        2,984,654  

Cummins, Inc.

      4,019        889,445  
 

 

24

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Capital Goods — (continued)

      

Deere & Company

      8,190      $ 2,810,644  

Dover Corporation

      4,022        537,661  

Eaton Corporation PLC

      11,222        1,665,233  

EMCOR Group, Inc.

      1,462        170,133  

Fastenal Company

      16,238        833,984  

Flowserve Corporation

      3,670        124,193  

Fortive Corporation

      9,507        612,726  

Fortune Brands Home & Security, Inc.

      3,743        260,812  

Graco, Inc.

      4,763        319,883  

Granite Construction, Inc.

      1,318        39,408  

IDEX Corporation

      2,130        444,637  

Illinois Tool Works, Inc.

      8,802        1,828,703  

Lennox International, Inc.

      924        221,326  

Lincoln Electric Holdings, Inc.

      1,548        218,949  

Masco Corporation

      6,694        370,714  

MDU Resources Group, Inc.

      5,730        163,706  

Meritor, Inc. (b)

      1,877        68,360  

Middleby Corporation (The) (b)

      1,473        213,128  

Owens Corning

      2,778        257,632  

PACCAR, Inc.

      9,702        887,927  

Parker-Hannifin Corporation

      3,622        1,047,084  

Quanta Services, Inc.

      4,009        556,169  

Rockwell Automation, Inc.

      3,245        828,384  

Roper Technologies, Inc.

      2,963        1,293,853  

Sensata Technologies Holding NV

      4,396        195,490  

Snap-on, Inc.

      1,491        334,059  

Spirit AeroSystems Holdings, Inc., Class A

      2,932        96,228  

Stanley Black & Decker, Inc.

      4,558        443,630  

Tennant Company

      501        33,582  

Timken Company (The)

      1,903        124,418  

Trane Technologies PLC (a)

      6,518        958,081  

United Rentals, Inc. (b)

      2,027        654,052  

W.W. Grainger, Inc.

      1,283        697,349  

Westinghouse Air Brake Technologies Corporation

      4,912        459,125  

Xylem, Inc.

      5,019        461,899  
     

 

 

  
        28,652,763  
     

 

 

  

Diversified Financials — 5.0%

      

Ally Financial, Inc.

      9,298        307,485  

American Express Company

      18,137        2,793,461  

Ameriprise Financial, Inc.

      3,093        834,863  

Bank of New York Mellon Corporation (The)

      21,336        927,263  
     SHARES      VALUE  

Diversified Financials — (continued)

 

BlackRock, Inc.

      4,273      $ 2,859,406  

Charles Schwab Corporation (The)

      40,725        2,812,061  

CME Group, Inc.

      10,106        2,015,945  

Equitable Holdings, Inc.

      10,867        308,949  

FactSet Research Systems, Inc.

      1,059        455,031  

Franklin Resources, Inc.

      8,373        229,839  

Intercontinental Exchange, Inc.

      15,810        1,612,462  

Invesco Ltd.

      9,639        170,996  

Moody’s Corporation

      4,693        1,456,003  

Morgan Stanley

      37,538        3,164,453  

Northern Trust Corporation

      5,514        550,187  

S&P Global, Inc.

      9,950        3,750,453  

State Street Corporation

      10,219        725,958  

T. Rowe Price Group, Inc.

      6,368        786,257  

Voya Financial, Inc.

      2,958        177,953  
     

 

 

  
        25,939,025  
     

 

 

  

Food & Beverage — 4.8%

      

Archer-Daniels-Midland Company

      15,826        1,309,918  

Bunge Ltd.

      3,937        363,503  

Campbell Soup Company

      5,894        290,869  

Coca-Cola Company (The)

      115,611        7,418,758  

Conagra Brands, Inc.

      13,385        457,901  

Darling Ingredients, Inc. (b)

      4,510        312,453  

General Mills, Inc.

      16,991        1,270,757  

Hormel Foods Corporation

      8,329        410,953  

Ingredion, Inc.

      1,861        169,314  

JM Smucker Company (The)

      3,035        401,591  

Kellogg Company

      7,171        530,080  

Keurig Dr Pepper, Inc.

      21,770        843,370  

Kraft Heinz Company (The)

      20,495        754,831  

Lamb Weston Holdings, Inc.

      4,052        322,782  

McCormick & Company, Inc.

      6,978        609,528  

Mondelez International, Inc., Class A

      39,023        2,499,033  

PepsiCo, Inc.

      38,834        6,794,396  
     

 

 

  
        24,760,037  
     

 

 

  

Healthcare Equipment & Services — 4.7%

 

ABIOMED, Inc. (b)

      1,269        371,830  

Align Technology, Inc. (b)

      2,090        587,227  

AmerisourceBergen Corporation .

      4,381        639,319  

Becton, Dickinson and Company .

      8,007        1,956,190  

Cardinal Health, Inc.

      7,731        460,458  

Centene Corporation (b)

      16,411        1,525,731  
 

 

25

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Healthcare Equipment & Services — (continued)

 

Cigna Corporation

      9,022      $ 2,484,298  

Cooper Cos., Inc. (The)

      1,378        450,606  

DaVita, Inc. (b)

      1,612        135,666  

DENTSPLY SIRONA, Inc.

      6,103        220,684  

DexCom, Inc. (b)

      10,957        899,351  

Edwards Lifesciences Corporation (b)

      17,533        1,762,768  

Elevance Health, Inc.

      6,769        3,229,490  

HCA Healthcare, Inc.

      6,838        1,452,528  

Henry Schein, Inc. (b)

      3,822        301,288  

Hologic, Inc. (b)

      6,981        498,304  

Humana, Inc.

      3,563        1,717,366  

IDEXX Laboratories, Inc. (b)

      2,352        938,871  

Insulet Corporation (b)

      1,938        480,236  

Laboratory Corporation of America Holdings

      2,608        683,792  

Patterson Companies, Inc.

      2,424        75,289  

Pediatrix Medical Group, Inc. (b) .

      2,237        50,690  

Quest Diagnostics, Inc.

      3,336        455,598  

ResMed, Inc.

      4,083        982,043  

Select Medical Holdings Corporation

      3,174        94,014  

STERIS PLC

      2,790        629,564  

Teladoc Health, Inc. (b)

      4,472        164,793  

West Pharmaceutical Services, Inc.

      2,069        710,826  
     

 

 

  
        23,958,820  
     

 

 

  

Renewable Energy & Energy Efficiency — 4.6%

 

Acuity Brands, Inc.

      982        179,117  

Itron, Inc. (b)

      1,270        74,168  

Johnson Controls International, PLC

      19,802        1,067,526  

Ormat Technologies, Inc.

      1,263        109,300  

Tesla, Inc. (b)

      24,649        21,973,351  
     

 

 

  
        23,403,462  
     

 

 

  

Retailing — 4.0%

 

AutoNation, Inc. (b)

      1,118        132,751  

Best Buy Company, Inc.

      6,043        465,251  

Booking Holdings, Inc. (b)

      1,149        2,224,108  

Buckle, Inc. (The)

      813        24,553  

CarMax, Inc. (b)

      4,513        449,224  

Foot Locker, Inc.

      2,518        71,436  

GameStop Corporation, Class A (b)

      7,256        246,777  

Gap, Inc. (The)

      5,660        54,449  
     SHARES      VALUE  

Retailing — (continued)

 

Home Depot, Inc. (The)

      29,308      $ 8,819,949  

Kohl’s Corporation

      3,882        113,121  

LKQ Corporation

      7,555        414,316  

Lowe’s Companies, Inc.

      18,820        3,604,595  

Nordstrom, Inc.

      3,112        73,163  

ODP Corporation (The) (b)

      1,210        43,923  

Pool Corporation

      1,123        401,697  

Signet Jewelers Ltd.

      1,467        89,428  

Target Corporation

      13,472        2,201,055  

Tractor Supply Company

      3,147        602,588  

Ulta Beauty, Inc. (b)

      1,510        587,254  
     

 

 

  
        20,619,638  
     

 

 

  

Real Estate — 3.6%

 

American Tower Corporation REIT

      12,807        3,468,520  

Anywhere Real Estate, Inc. (b)

      3,345        33,216  

AvalonBay Communities, Inc. REIT

      3,899        834,152  

Boston Properties, Inc. REIT

      4,152        378,496  

CBRE Group, Inc., Class A (b)

      9,342        799,862  

Corporate Office Properties Trust REIT

      3,124        87,941  

Digital Realty Trust, Inc. REIT

      7,945        1,052,315  

Duke Realty Corporation REIT

      10,669        667,453  

Equinix, Inc. REIT

      2,552        1,795,944  

Equity Residential REIT

      9,966        781,235  

Federal Realty Investment Trust REIT

      1,988        209,953  

Healthpeak Properties, Inc. REIT .

      15,085        416,798  

Host Hotels & Resorts, Inc. REIT .

      19,905        354,508  

Iron Mountain, Inc. REIT

      8,091        392,333  

Jones Lang LaSalle, Inc. (b)

      1,392        265,413  

Macerich Company (The) REIT

      5,961        63,246  

PotlatchDeltic Corporation REIT .

      1,936        94,922  

Prologis, Inc. REIT

      20,799        2,757,115  

SBA Communications Corporation, Class A REIT

      3,066        1,029,532  

Simon Property Group, Inc. REIT

      9,265        1,006,550  

UDR, Inc. REIT

      8,873        429,453  

Ventas, Inc. REIT

      11,150        599,647  

Welltower, Inc. REIT

      12,605        1,088,316  
     

 

 

  
        18,606,920  
     

 

 

  

Materials — 3.0%

 

Air Products & Chemicals, Inc.

      6,239        1,548,707  
 

 

26

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Materials — (continued)

 

Albemarle Corporation

      3,267      $ 798,161  

Amcor PLC (a)

      42,249        547,125  

Avery Dennison Corporation

      2,300        438,058  

Axalta Coating Systems Ltd. (b)

      6,255        157,751  

Ball Corporation

      8,971        658,651  

Compass Minerals International, Inc.

      974        36,262  

Ecolab, Inc.

      7,270        1,200,786  

H.B. Fuller Company

      1,473        94,567  

International Flavors & Fragrances, Inc.

      7,110        881,995  

Linde PLC (a)

      14,393        4,346,686  

Minerals Technologies, Inc.

      934        62,401  

Mosaic Company (The)

      10,281        541,397  

Newmont Corporation

      22,441        1,016,128  

PPG Industries, Inc.

      6,587        851,633  

Schnitzer Steel Industries, Inc., Class A

      743        26,421  

Sealed Air Corporation

      4,140        253,037  

Sherwin-Williams Company (The)

      6,958        1,683,418  

Sonoco Products Company

      2,761        175,296  
     

 

 

  
        15,318,480  
     

 

 

  

Household & Personal Products — 2.8%

 

Clorox Company (The)

      3,438        487,646  

Colgate-Palmolive Company

      22,393        1,763,225  

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

      6,539        1,785,801  

Kimberly-Clark Corporation

      9,473        1,248,447  

Procter & Gamble Company (The)

      67,205        9,335,446  
     

 

 

  
        14,620,565  
     

 

 

  

Technology Hardware & Equipment — 2.6%

 

Cisco Systems, Inc.

      116,639        5,291,911  

Cognex Corporation

      4,854        247,457  

CommScope Holding Company, Inc. (b)

      5,684        51,326  

Corning, Inc.

      22,433        824,637  

Dell Technologies, Inc., Class C

      8,124        366,067  

F5, Inc. (b)

      1,694        283,508  

Flex Ltd. (b)

      12,990        218,232  

Hewlett Packard Enterprise Company

      36,297        516,869  

HP, Inc.

      29,685        991,182  

Keysight Technologies, Inc. (b)

      5,102        829,585  

Motorola Solutions, Inc.

      4,696        1,120,419  
     SHARES      VALUE  

Technology Hardware & Equipment — (continued)

 

Plantronics, Inc. (b)

      1,192      $ 47,430  

TE Connectivity Ltd. (a)

      9,172        1,226,572  

Trimble, Inc. (b)

      7,011        486,774  

Xerox Holdings Corporation

      3,252        55,707  

Zebra Technologies Corporation, Class A (b)

      1,482        530,097  
     

 

 

  
        13,087,773  
     

 

 

  

Insurance — 2.5%

      

Allstate Corporation (The)

      7,771        908,974  

Arthur J. Gallagher & Company .

      5,822        1,042,080  

Chubb Ltd. (a)

      11,980        2,259,907  

Hartford Financial Services Group, Inc. (The)

      9,257        596,799  

Lincoln National Corporation

      4,568        234,521  

Loews Corporation

      5,876        342,277  

Marsh & McLennan Companies, Inc.

      14,135        2,317,574  

Principal Financial Group, Inc.

      7,290        487,993  

Progressive Corporation (The)

      16,435        1,891,011  

Prudential Financial, Inc.

      10,596        1,059,494  

Travelers Companies, Inc. (The)

      6,803        1,079,636  

Willis Towers Watson PLC (a)

      3,287        680,212  
     

 

 

  
        12,900,478  
     

 

 

  

Consumer Services — 2.4%

      

Aramark

      6,456        215,630  

Choice Hotels International, Inc.

      1,001        120,991  

Darden Restaurants, Inc.

      3,563        443,558  

Domino’s Pizza, Inc.

      1,016        398,384  

Hilton Worldwide Holdings, Inc.

      7,802        999,202  

Jack in the Box, Inc.

      604        41,761  

Marriott International, Inc., Class A

      7,811        1,240,543  

McDonald’s Corporation

      20,878        5,498,639  

Royal Caribbean Cruises Ltd. (b) .

      6,412        248,208  

Starbucks Corporation

      32,331        2,741,022  

Vail Resorts, Inc.

      1,129        267,720  
     

 

 

  
        12,215,658  
     

 

 

  

Transportation — 2.3%

      

AMERCO.

      272        146,086  

ArcBest Corporation

      682        60,425  

Avis Budget Group, Inc. (b)

      903        164,373  

C.H. Robinson Worldwide, Inc.

      3,592        397,634  

CSX Corporation

      61,686        1,994,308  
 

 

27

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Transportation — (continued)

      

Delta Air Lines, Inc. (b)

      4,480      $ 142,464  

Expeditors International of Washington, Inc.

      4,732        502,775  

Ryder System, Inc.

      1,502        117,637  

Southwest Airlines Company (b)

      4,100        156,292  

Union Pacific Corporation

      17,888        4,065,942  

United Parcel Service, Inc., Class B

      20,577        4,010,252  
     

 

 

  
        11,758,188  
     

 

 

  

Banks — 1.8%

      

Bank of Hawaii Corporation

      1,143        91,566  

Cathay General Bancorp

      2,023        84,359  

Citizens Financial Group, Inc.

      13,832        525,201  

Comerica, Inc.

      3,662        284,794  

First Republic Bank

      4,930        802,160  

Heartland Financial USA, Inc.

      1,213        54,464  

Huntington Bancshares, Inc.

      40,138        533,434  

International Bancshares Corporation

      1,580        69,299  

KeyCorp

      25,877        473,549  

M&T Bank Corporation

      5,018        890,444  

New York Community Bancorp, Inc.

      12,946        137,486  

Old National Bancorp

      8,187        142,536  

PNC Financial Services Group, Inc. (The)

      11,769        1,952,948  

Regions Financial Corporation

      26,155        553,963  

SVB Financial Group (b)

      1,640        661,822  

Truist Financial Corporation

      37,360        1,885,559  

Umpqua Holdings Corporation

      5,980        105,308  

Zions Bancorp NA

      4,228        230,637  
     

 

 

  
        9,479,529  
     

 

 

  

Consumer Durables & Apparel — 1.4%

 

Callaway Golf Company (b)

      3,876        88,954  

Capri Holdings Ltd. (a)(b)

      4,152        202,119  

Columbia Sportswear Company

      1,004        74,306  

Deckers Outdoor Corporation (b)

      765        239,606  

Ethan Allen Interiors, Inc.

      674        15,495  

Garmin Ltd. (a)

      4,309        420,645  

Hanesbrands, Inc.

      9,732        108,804  

Hasbro, Inc.

      3,672        289,060  

La-Z-Boy, Inc.

      1,160        32,329  

Mattel, Inc. (b)

      9,824        227,917  

Meritage Homes Corporation (b) .

      1,027        90,684  

Mohawk Industries, Inc. (b)

      1,451        186,424  
     SHARES      VALUE  

Consumer Durables & Apparel — (continued)

 

Newell Brands, Inc.

      11,264      $ 227,645  

NIKE, Inc., Class B

      35,843        4,119,078  

PVH Corporation

      1,971        122,044  

Under Armour, Inc., Class A (b)

      5,187        48,032  

Under Armour, Inc., Class C (b)

      6,115        50,510  

VF Corporation

      9,216        411,771  

Whirlpool Corporation

      1,634        282,470  

Wolverine World Wide, Inc.

      2,352        52,849  
     

 

 

  
        7,290,742  
     

 

 

  

Telecommunication Services — 1.1%

 

Lumen Technologies Inc.

      25,707        279,949  

Verizon Communications, Inc.

      117,847        5,443,353  
     

 

 

  
        5,723,302  
     

 

 

  

Commercial & Professional Services — 0.5%

 

ACCO Brands Corporation

      2,855        20,470  

ASGN, Inc. (b)

      1,453        150,763  

Copart, Inc. (b)

      5,952        762,451  

Deluxe Corporation

      1,142        28,710  

Exponent, Inc.

      1,460        146,715  

Heidrick & Struggles International, Inc.

      506        15,757  

HNI Corporation

      1,237        43,691  

ICF International, Inc.

      513        48,402  

Interface, Inc.

      1,695        24,561  

Kelly Services, Inc., Class A

      951        20,618  

ManpowerGroup, Inc.

      1,483        116,282  

Resources Connection, Inc.

      932        20,001  

Robert Half International, Inc

      3,100        245,334  

Steelcase, Inc., Class A

      2,304        25,643  

Tetra Tech, Inc.

      1,506        230,825  

TransUnion

      5,355        424,277  

TrueBlue, Inc. (b)

      1,021        22,094  
     

 

 

  
        2,346,594  
     

 

 

  

Food & Staples Retailing — 0.4%

 

Kroger Co. (The)

      19,688        914,311  

Sysco Corporation

      14,293        1,213,475  
     

 

 

  
        2,127,786  
     

 

 

  

Automobiles & Components — 0.3%

 

Aptiv PLC (a)(b)

      7,636        800,940  

Autoliv, Inc. (a)

      2,320        199,520  

BorgWarner, Inc

      6,719        258,413  

Harley-Davidson, Inc.

      4,076        154,113  
 

 

28

GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   concluded

 

     SHARES      VALUE  

Automobiles & Components — (continued)

 

Rivian Automotive, Inc., Class A (b)

      5,030      $ 172,529  
     

 

 

  
        1,585,515  
     

 

 

  

Utilities — 0.2%

 

American Water Works Company, Inc.

      5,071        788,236  

Essential Utilities, Inc.

      6,717        348,881  
     

 

 

  
        1,137,117  
     

 

 

  

Healthy Living — 0.0%

 

Hain Celestial Group, Inc. (The) (b)

      2,491        56,670  

United Natural Foods, Inc. (b)

      1,633        69,419  
     

 

 

  
        126,089  
     

 

 

  

Total Common Stocks
(Cost $274,135,413)

         512,832,426  
     

 

 

  

SHORT-TERM INVESTMENTS — 0.5%

 

            VALUE  

UMB Money Market Fiduciary Account, 0.01% (c)
(Cost $2,329,087)

       $ 2,329,087  
     

 

 

  

Total Short-term Investments
(Cost $2,329,087)

         2,329,087  
     

 

 

  

TOTAL INVESTMENTS (d) — 100.0%

 

   

(Cost $276,464,500)

         515,161,513  

Other Assets Less Liabilities — 0.0%

         210,709  
     

 

 

  

NET ASSETS — 100.0%

       $ 515,372,222  
     

 

 

  

 

PLC – Public Limited Company

REIT – Real Estate Investment Trusts

(a)

Securities whose value 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 $282,243,899 resulting in gross unrealized appreciation and depreciation of $249,637,835 and $16,720,221 respectively, or net unrealized appreciation of $232,917,614.

 

 

See Notes to Financial Statements

 

29

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

       

 

COMMON STOCKS — 99.0%

      
     SHARES      VALUE  

Japan — 20.0%

      

Aeon Company, Ltd.

      26,200      $ 528,374  

Ajinomoto Company, Inc.

      18,700        492,109  

Asahi Kasei Corporation

      51,200        410,747  

Astellas Pharma, Inc.

      75,200        1,177,737  

Azbil Corporation

      4,500        135,464  

Daifuku Co., Ltd.

      4,100        261,443  

Dai-ichi Life Holdings, Inc.

      40,700        707,972  

Daiichi Sankyo Company Ltd.

      70,600        1,871,939  

Daikin Industries Ltd.

      10,000        1,753,783  

FANUC Corporation

      7,700        1,327,947  

Fast Retailing Company Ltd.

      2,300        1,392,859  

Fujitsu Ltd.

      7,900        1,059,093  

Hankyu Hanshin Holdings, Inc.

      9,200        266,862  

Hitachi Construction Machinery Company Ltd.

      4,400        97,072  

Hulic Company Ltd.

      15,900        127,520  

Ibiden Company Ltd.

      4,600        135,753  

JFE Holdings, Inc.

      20,200        227,752  

Kao Corp.

      19,000        826,394  

KDDI Corp.

      65,000        2,084,052  

Kikkoman Corporation

      6,000        355,769  

Kubota Corporation

      40,900        679,077  

Kurita Water Industries Ltd.

      4,300        174,406  

Mitsubishi Chemical Group Corporation

      51,300        288,487  

Nitto Denko Corporation

      5,700        367,053  

Nomura Research Institute Ltd.

      13,500        405,598  

Omron Corporation

      7,500        419,460  

Panasonic Holdings Corporation .

      88,500        730,668  

Recruit Holdings Company Ltd.

      58,100        2,171,375  

Sekisui House Ltd.

      24,400        432,158  

SG Holdings Company Ltd.

      11,700        223,289  

SoftBank Corporation

      115,100        1,330,816  

Sompo Holdings, Inc.

      12,400        553,427  

Sony Group Corporation

      50,800        4,309,260  

Sumitomo Chemical Company, Ltd.

      60,400        237,368  

Suntory Beverage & Food Ltd.

      5,900        232,799  

Sysmex Corporation

      6,700        469,079  

Terumo Corporation

      25,800        880,905  

Tokyo Electron Ltd.

      6,000        2,065,161  

Tokyu Corp.

      21,000        257,493  

Toray Industries, Inc.

      55,900        306,183  

Yamaha Corporation

      5,800        247,394  

Yamaha Motor Company Ltd.

      12,300        237,601  
     SHARES      VALUE  

Japan — (continued)

      

Z Holdings Corporation

      107,900      $ 381,344  
     

 

 

  
        32,641,042  
     

 

 

  

Canada — 10.7%

      

Agnico Eagle Mines Ltd.

      18,191        782,131  

Bank of Nova Scotia (The)

      48,737        2,968,900  

FirstService Corporation

      1,580        211,362  

Gildan Activewear, Inc.

      7,494        219,623  

Intact Financial Corporation

      7,088        1,054,953  

Magna International, Inc.

      11,435        730,158  

Metro, Inc.

      9,768        540,878  

National Bank of Canada

      13,628        956,173  

Nutrien Ltd.

      22,241        1,903,841  

Ritchie Bros Auctioneers, Inc.

      4,413        318,070  

Rogers Communications, Inc., Class B

      14,383        661,196  

Shopify, Inc. (a)

      45,794        1,595,245  

TELUS Corporation

      18,538        426,753  

Toromont Industries Ltd.

      3,369        283,731  

Toronto-Dominion Bank (The)

      73,306        4,761,513  
     

 

 

  
        17,414,527  
     

 

 

  

United Kingdom — 9.9%

      

abrdn plc

      88,845        180,113  

Ashtead Group PLC

      17,944        1,010,005  

Barratt Developments PLC

      40,624        249,082  

Berkeley Group Holdings PLC (a)

      4,459        231,068  

British Land Company PLC (The) REIT

      35,294        212,202  

BT Group PLC

      278,154        549,127  

Bunzl PLC

      13,590        510,012  

Burberry Group PLC

      16,200        356,114  

Coca-Cola Europacific Partners PLC

      8,269        447,518  

Croda International PLC

      5,514        504,227  

Informa PLC (a)

      59,504        432,730  

InterContinental Hotels Group PLC

      7,442        441,100  

Intertek Group PLC

      6,549        349,993  

J Sainsbury PLC

      69,677        187,946  

Kingfisher PLC

      81,215        256,937  

Legal & General Group PLC

      241,238        770,364  

Mondi PLC

      19,256        365,404  

Pearson PLC

      27,764        256,949  

RELX PLC

      77,873        2,305,646  

Schroders PLC

      5,336        193,535  
 

 

30

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

United Kingdom — (continued)

      

Segro PLC REIT

      48,747      $ 652,101  

Severn Trent PLC

      10,227        367,659  

St. James’s Place PLC

      21,544        323,595  

Unilever PLC

      103,033        5,017,715  
     

 

 

  
        16,171,142  
     

 

 

  

Switzerland — 9.4%

      

Coca-Cola HBC AG (a)

      8,084        198,949  

Givaudan SA

      368        1,286,298  

Kuehne + Nagel International AG

      2,187        588,975  

Lonza Group AG

      2,988        1,815,867  

Roche Holding AG

      24,571        8,157,254  

SGS SA

      261        636,929  

Sonova Holding AG

      2,167        780,473  

Swiss Life Holding AG

      1,280        678,027  

Swiss Re AG

      12,132        910,299  

Vifor Pharma AG

      1,798        314,116  
     

 

 

  
        15,367,187  
     

 

 

  

Netherlands — 9.2%

      

Akzo Nobel NV

      7,296        491,038  

ASML Holding NV

      15,044        8,646,893  

CNH Industrial NV

      41,024        528,511  

IMCD NV

      2,305        369,153  

Koninklijke DSM NV

      7,019        1,124,117  

NN Group NV

      11,469        538,167  

Prosus NV (a)

      33,389        2,178,188  

Wolters Kluwer NV

      10,537        1,144,373  
     

 

 

  
        15,020,440  
     

 

 

  

France — 8.7%

      

AXA SA

      77,951        1,796,235  

BioMerieux

      1,655        179,138  

Bureau Veritas SA

      11,680        322,150  

Cie Generale des Etablissements Michelin SCA

      27,410        767,077  

Covivio REIT

      1,837        116,182  

Danone SA

      26,183        1,443,747  

EssilorLuxottica SA

      11,578        1,815,275  

Klepierre SA REIT (a)

      8,586        190,787  

L’Oreal SA

      9,698        3,666,497  

Publicis Groupe SA

      9,165        487,732  

Schneider Electric SE

      21,752        3,008,468  

Valeo SA

      8,212        176,398  

Vivendi SA

      28,437        269,968  
     

 

 

  
        14,239,654  
     

 

 

  
     SHARES      VALUE  

Denmark — 7.4%

      

AP Moller - Maersk A/S, Class A

      127      $ 340,230  

AP Moller - Maersk A/S, Class B

      214        584,292  

Coloplast A/S, Class B

      4,763        557,456  

Demant A/S (a)

      4,055        154,478  

Genmab A/S (a)

      2,646        941,500  

GN Store Nord A/S

      5,210        181,434  

Novo Nordisk A/S, Class B

      67,746        7,890,638  

Pandora A/S

      3,883        288,475  

Vestas Wind Systems A/S

      40,230        1,057,395  
     

 

 

  
        11,995,898  
     

 

 

  

Australia — 5.8%

      

ASX Ltd.

      7,811        485,501  

BlueScope Steel Ltd.

      19,422        228,143  

Brambles Ltd.

      56,674        456,160  

Cochlear Ltd.

      2,603        392,350  

Coles Group Ltd.

      54,182        713,611  

Computershare Ltd.

      21,983        388,381  

Dexus REIT

      43,150        289,975  

Evolution Mining Ltd.

      72,371        133,693  

Fortescue Metals Group Ltd.

      67,582        869,703  

Goodman Group

      67,050        981,300  

GPT Group (The) REIT

      80,590        259,282  

Lendlease Corporation Ltd.

      27,168        196,826  

Mineral Resources Ltd.

      6,717        255,951  

Mirvac Group REIT

      162,875        246,759  

Newcrest Mining Ltd.

      36,197        487,810  

Orica Ltd.

      16,640        197,226  

QBE Insurance Group Ltd.

      59,780        483,373  

REA Group Ltd.

      2,203        194,362  

Stockland REIT

      95,373        258,437  

Suncorp Group Ltd.

      51,102        403,574  

Transurban Group

      124,066        1,268,192  

Vicinity Centres REIT

      156,537        229,052  
     

 

 

  
        9,419,661  
     

 

 

  

Germany — 4.7%

      

adidas AG

      7,011        1,212,876  

Allianz SE

      16,428        2,983,505  

Carl Zeiss Meditec AG

      1,590        232,051  

Deutsche Boerse AG

      7,633        1,332,492  

GEA Group AG

      6,059        226,174  

Merck KGaA

      5,154        981,661  

Puma SE

      4,214        284,553  

Telefonica Deutschland Holding AG

      41,847        111,260  
 

 

31

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   continued

 

     SHARES      VALUE  

Germany — (continued)

      

Zalando SE (a)(b)

      9,071      $ 255,383  
     

 

 

  
        7,619,955  
     

 

 

  

Hong Kong — 3.9%

      

AIA Group Ltd.

      486,000        4,882,672  

BOC Hong Kong Holdings Ltd.

      148,000        535,363  

Hang Seng Bank Ltd.

      30,917        498,711  

MTR Corporation Ltd.

      63,667        337,149  

Swire Properties Ltd.

      47,000        111,988  
     

 

 

  
        6,365,883  
     

 

 

  

Ireland — 1.4%

      

CRH PLC.

      31,133        1,194,735  

James Hardie Industries PLC

      17,601        434,696  

Kerry Group PLC, Class A

      6,364        671,746  
     

 

 

  
        2,301,177  
     

 

 

  

Spain — 1.4%

      

Banco Bilbao Vizcaya Argentaria SA

      267,468        1,212,108  

Industria de Diseno Textil SA

      43,935        1,067,076  
     

 

 

  
        2,279,184  
     

 

 

  

Sweden — 1.4%

      

Boliden AB

      11,377        380,207  

Electrolux AB

      9,249        133,406  

Essity AB, Class B

      24,410        621,359  

Husqvarna AB B Shares

      16,304        129,938  

Svenska Cellulosa AB SCA, Class B

      24,533        358,662  

Tele2 AB B Shares

      22,520        257,260  

Telia Company AB

      105,496        389,739  
     

 

 

  
        2,270,571  
     

 

 

  

Italy — 1.0%

      

Amplifon SpA

      4,959        163,989  

Intesa Sanpaolo SpA

      665,286        1,181,454  

Prysmian SpA

      10,349        329,075  
     

 

 

  
        1,674,518  
     

 

 

  

Norway — 0.8%

      

DNB Bank ASA

      37,635        742,379  

Orkla ASA

      29,879        257,924  

Telenor ASA

      27,848        338,190  
     

 

 

  
        1,338,493  
     

 

 

  
     SHARES      VALUE  

Singapore — 0.8%

      

Capitaland Investment Ltd.

      103,511      $ 294,520  

City Developments Ltd.

      17,400        97,757  

United Overseas Bank Ltd.

      47,300        943,699  
     

 

 

  
        1,335,976  
     

 

 

  

Finland — 0.8%

      

Elisa Oyj

      5,690        314,695  

Kesko Oyj B Shares

      10,984        271,677  

Orion Oyj, Class B

      4,393        209,716  

Stora Enso Oyj R Shares

      22,808        352,750  

Wartsila OYJ Abp

      19,184        168,566  
     

 

 

  
        1,317,404  
     

 

 

  

Jersey — 0.7%

      

Ferguson PLC

      8,717        1,096,525  
     

 

 

  

Belgium — 0.5%

      

KBC Group NV

      10,032        525,460  

Umicore SA

      8,506        308,115  
     

 

 

  
        833,575  
     

 

 

  

Israel — 0.4%

      

Bank Leumi Le-Israel BM

      61,869        601,581  
     

 

 

  

New Zealand — 0.1%

      

Meridian Energy Ltd.

      52,789        165,664  
     

 

 

  

Total Common Stocks
(Cost $160,721,229)

         161,470,057  
     

 

 

  

SHORT-TERM INVESTMENTS — 0.3%

 

   

UMB Money Market Fiduciary Account, 0.01% (c)
(Cost $473,689)

         473,689  
     

 

 

  

Total Short-term Investments
(Cost $473,689)

         473,689  
     

 

 

  

TOTAL INVESTMENTS (d) — 99.3%

 

(Cost $161,194,918)

         161,943,746  

Other Assets Less Liabilities — 0.7%

         1,111,221  
     

 

 

  

NET ASSETS — 100.0%

       $ 163,054,967  
     

 

 

  

 

PLC – Public Limited Company

REIT – Real Estate Investment Trusts

(a)

Non-income producing security.

 

 

32

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2022

   concluded

 

(b)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. The total value of these securities is $255,383.

(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 $163,900,237 resulting in gross unrealized appreciation and depreciation of $19,393,532 and $21,350,023 respectively, or net unrealized depreciation of $1,956,491.

 

 

See Notes to Financial Statements

 

33

GREEN CENTURY FUNDS STATEMENTS OF ASSETS AND LIABILITIES

July 31, 2022

 

 

     BALANCED FUND      EQUITY FUND      MSCI INTERNATIONAL
INDEX FUND		  

ASSETS:

         

Investments, at value (cost $298,529,356, $276,464,500 and $161,194,918, respectively)

    $ 397,256,123      $ 515,161,513      $ 161,943,746  

Foreign cash, at value (cost $316,909)

      —          —          322,481  
Receivables for:         

Capital stock sold

      224,843        353,889        281,138  

Interest

      1,011,702        14        4  

Dividends

      136,479        492,613        660,588  
  

 

 

     

 

 

     

 

 

  

Total assets

      398,629,147        516,008,029        163,207,957  
  

 

 

     

 

 

     

 

 

  

LIABILITIES:

         

Payable for capital stock repurchased

      259,264        168,238        12,487  

Accrued expenses

      447,668        467,569        140,503  
  

 

 

     

 

 

     

 

 

  

Total liabilities

      706,932        635,807        152,990  
  

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 397,922,215      $ 515,372,222      $ 163,054,967  
  

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF:

         

Paid-in capital (par value of $0.01 per share with unlimited number of shares authorized)

    $ 293,150,376      $ 281,125,437      $ 167,839,548  

Net distributable earnings (accumulated deficit)

      104,771,839        234,246,785        (4,784,581 ) 
  

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 397,922,215      $ 515,372,222      $ 163,054,967  
  

 

 

     

 

 

     

 

 

  

NET ASSET VALUE PER SHARE PER CLASS:

         
Individual Investor Class Shares:         

Net assets applicable to shares outstanding

    $ 296,604,788      $ 301,667,706      $ 47,434,557  

Shares of beneficial interest issued and outstanding

      9,007,692        4,680,231        4,011,562  

Net asset value per share

    $ 32.93      $ 64.46      $ 11.82  
  

 

 

     

 

 

     

 

 

  
Institutional Class Shares:         

Net assets applicable to shares outstanding

    $ 101,317,427      $ 213,704,516      $ 115,620,410  

Shares of beneficial interest issued and outstanding

      3,064,515        3,332,172        9,814,607  

Net asset value per share

    $ 33.06      $ 64.13      $ 11.78  
  

 

 

     

 

 

     

 

 

  

 

See Notes to Financial Statements

 

34

GREEN CENTURY FUNDS STATEMENTS OF OPERATIONS

For the year ended July 31, 2022

 

 

     BALANCED FUND     EQUITY FUND     MSCI INTERNATIONAL
INDEX FUND		  

INVESTMENT INCOME:

       

Interest income

    $ 2,880,366     $ 152     $ 72  

Dividend and other income (net of $20,070, $1,862 and $588,141 foreign withholding taxes, respectively)

      2,987,863       7,248,710       4,642,671  
  

 

 

    

 

 

    

 

 

  

Total investment income

      5,868,229       7,248,862       4,642,743  
  

 

 

    

 

 

    

 

 

  

EXPENSES:

       

Administrative services fee

      3,120,279       4,850,415       1,293,292  

Investment advisory fee

      2,591,275       1,183,035       458,878  
  

 

 

    

 

 

    

 

 

  

Total expenses

      5,711,554       6,033,450       1,752,170  
  

 

 

    

 

 

    

 

 

  

NET INVESTMENT INCOME

      156,675       1,215,412       2,890,573  
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS):

       
Net realized gain (loss) on:       

Investments

      9,290,056       443,916       (2,334,970 ) 

Foreign currency transactions

      —         —         (120,600 ) 
Change in net unrealized depreciation on:       

Investments

      (43,567,306 )      (49,526,394 )      (33,385,027 ) 

Foreign currency translations

      —         —         (48,578 ) 
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS

      (34,277,250 )      (49,082,478 )      (35,889,175 ) 
  

 

 

    

 

 

    

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (34,120,575 )    $ (47,867,066 )    $ (32,998,602 ) 
  

 

 

    

 

 

    

 

 

  

 

See Notes to Financial Statements

 

35

GREEN CENTURY FUNDS STATEMENTS OF CHANGES IN NET ASSETS

 

 

    BALANCED FUND     EQUITY FUND     MSCI INTERNATIONAL
INDEX FUND		  
    FOR THE
YEAR ENDED
JULY 31, 2022		     FOR THE
YEAR ENDED
JULY 31, 2021		     FOR THE
YEAR ENDED
JULY 31, 2022		     FOR THE
YEAR ENDED
JULY 31, 2021		     FOR THE
YEAR ENDED
JULY 31, 2022		     FOR THE
YEAR ENDED
JULY 31, 2021		  

INCREASE (DECREASE) IN NET ASSETS:

            
From operations:            

Net investment income

   $ 156,675     $ 359,758     $ 1,215,412     $ 987,174     $ 2,890,573     $ 1,220,471  

Net realized gain (loss) on investments and foreign currency transactions

     9,290,056       16,446,802       443,916       7,041,775       (2,455,570 )      2,727,492  

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

     (43,567,306 )      62,893,208       (49,526,394 )      130,962,212       (33,433,605 )      26,484,075  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     (34,120,575 )      79,699,768       (47,867,066 )      138,991,161       (32,998,602 )      30,432,038  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Dividends and distributions to shareholders:            

Distributions

            

Individual Investor Class

     (12,975,872 )      (11,234,235 )      (4,047,069 )      (2,745,220 )      (1,563,064 )      (298,641 ) 

Institutional Class

     (3,990,285 )      (638,469 )      (3,269,110 )      (1,738,639 )      (4,167,887 )      (1,087,148 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions

     (16,966,157 )      (11,872,704 )      (7,316,179 )      (4,483,859 )      (5,730,951 )      (1,385,789 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Capital share transactions:            

Proceeds from sales of shares

            

Individual Investor Class

     44,688,812       51,309,687       37,859,054       36,027,217       17,714,015       14,842,998  

Institutional Class

     30,572,580       82,462,305       87,698,497       57,870,103       45,355,351       44,720,506  

Reinvestment of dividends and distributions

            

Individual Investor Class

     12,593,808       10,913,432       3,952,832       2,678,258       1,547,300       290,831  

Institutional Class

     3,935,619       638,022       2,995,483       1,566,618       4,167,068       1,084,325  

Payments for shares redeemed

            

Individual Investor Class1

     (45,973,093 )      (108,845,151 )      (45,915,443 )      (59,974,244 )      (6,831,449 )      (6,654,168 ) 

Institutional Class2

     (7,146,977 )      (3,838,475 )      (32,166,633 )      (16,528,661 )      (18,677,941 )      (15,500,979 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from capital share transactions

     38,670,749       32,639,820       54,423,790       21,639,291       43,274,344       38,783,513  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

     (12,415,983 )      100,466,884       (759,455 )      156,146,593       4,544,791       67,829,762  

NET ASSETS:

            

Beginning of period

     410,338,198       309,871,314       516,131,677       359,985,084       158,510,176       90,680,414  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period

   $ 397,922,215     $ 410,338,198     $ 515,372,222     $ 516,131,677     $ 163,054,967     $ 158,510,176  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1 

Net of redemption fee received of $9,068, $12,080, $11,556, $8,985, $5,503 and $4,165, respectively.

2 

Net of redemption fee received of $127, $250, $3,488, $960, $3,704 and $1,159, respectively.

 

See Notes to Financial Statements

 

36

GREEN CENTURY BALANCED FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

 

     FOR THE YEARS ENDED JULY 31,  
     2022     2021      2020      2019      2018  

Net Asset Value, beginning of year

    $ 37.21     $ 30.83      $ 29.05      $ 27.05      $ 25.55  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
Income (loss) from investment operations:              

Net investment income (loss)

      (0.01 )      0.02        0.11        0.12        0.07  

Net realized and unrealized gain (loss) on investments

      (2.78 )      7.51        2.25        2.50        1.79  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total increase (decrease) from investment operations

      (2.79 )      7.53        2.36        2.62        1.86  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
Less dividends:              

Dividends from net investment income

      —         (0.02 )       (0.11 )       (0.11 )       (0.05 ) 

Distributions from net realized gains

      (1.49 )      (1.13 )       (0.47 )       (0.51 )       (0.31 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total decrease from dividends

      (1.49 )      (1.15 )       (0.58 )       (0.62 )       (0.36 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, end of year

    $ 32.93     $ 37.21      $ 30.83      $ 29.05      $ 27.05  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total return

      (7.97 )%      24.86 %       8.19 %       10.04 %       7.32 % 
Ratios/Supplemental data:              

Net assets, end of year (in 000’s)

    $ 296,605     $ 323,991      $ 309,871      $ 276,487      $ 247,066  

Ratio of expenses to average net assets

      1.46 %      1.46 %       1.47 %       1.48 %       1.48 % 

Ratio of net investment income to average net assets

      (0.03 )%      0.07 %       0.37 %       0.44 %       0.25 % 

Portfolio turnover(a)

      9 %      17 %       25 %       19 %       18 % 

 

(a)

Calculated at Fund level.

GREEN CENTURY BALANCED FUND INSTITUTIONAL CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS
ENDED
JULY 31, 2022		     FOR THE PERIOD
NOVEMBER 30, 2020
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2021		  

Net Asset Value, beginning of period

    $ 37.27     $ 33.58  
  

 

 

    

 

 

  
Income (loss) from investment operations:     

Net investment income

      0.08       0.08  

Net realized and unrealized gain (loss) on investments .

      (2.78 )      4.78  
  

 

 

    

 

 

  

Total increase (decrease) from investment operations

      (2.70 )      4.86  
  

 

 

    

 

 

  
Less dividends:     

Dividends from net investment income

      (0.02 )      (0.04 ) 

Distributions from net realized gains

      (1.49 )      (1.13 ) 
  

 

 

    

 

 

  

Total decrease from dividends

      (1.51 )      (1.17 ) 
  

 

 

    

 

 

  

Net Asset Value, end of period

    $ 33.06     $ 37.27  
  

 

 

    

 

 

  

Total return

      (7.72 )%      14.89 %(a) 
Ratios/Supplemental data:     

Net assets, end of period (in 000’s)

    $ 101,317     $ 86,347  

Ratio of expenses to average net assets

      1.16 %      1.16 %(b) 

Ratio of net investment income to average net assets

      0.27 %      0.33 %(b) 

Portfolio turnover(c)

      9 %      17 %(a) 

 

(a)

Not annualized.

(b)

Annualized.

(c)

Calculated at Fund level.

 

See Notes to Financial Statements

 

37

GREEN CENTURY EQUITY FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

 

     FOR THE YEARS ENDED JULY 31,  
     2022     2021      2020      2019      2018  

Net Asset Value, beginning of year

    $ 71.35     $ 52.23      $ 46.17      $ 43.16      $ 38.05  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
Income from investment operations:              

Net investment income

      0.09       0.09        0.25        0.25        0.22  

Net realized and unrealized gain (loss) on investments

      (6.11 )      19.60        6.16        3.61        5.28  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total increase (decrease) from investment operations

      (6.02 )      19.69        6.41        3.86        5.50  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
Less dividends:              

Dividends from net investment income

      (0.02 )      (0.06 )       (0.22 )       (0.21 )       (0.20 ) 

Distributions from net realized gains

      (0.85 )      (0.51 )       (0.13 )       (0.64 )       (0.19 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total decrease from dividends

      (0.87 )      (0.57 )       (0.35 )       (0.85 )       (0.39 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, end of year

    $ 64.46     $ 71.35      $ 52.23      $ 46.17      $ 43.16  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total return

      (8.64 )%      37.90 %       13.95 %       9.33 %       14.52 % 
Ratios/Supplemental data:              

Net assets, end of year (in 000’s)

    $ 301,668     $ 338,094      $ 265,946      $ 244,706      $ 232,609  

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

      0.11 %      0.14 %       0.52 %       0.58 %       0.53 % 

Portfolio turnover(a)

      5 %      9 %       10 %       14 %       18 % 

 

(a)

Calculated at Fund level.

GREEN CENTURY EQUITY FUND INSTITUTIONAL CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS ENDED JULY 31,      FOR THE PERIOD
APRIL 30, 2018
(COMMENCEMENT OF
OPERATIONS) TO
JULY 31, 2018		  
     2022      2021      2020      2019         

Net Asset Value, beginning of period

    $ 71.12      $ 52.10      $ 46.11      $ 43.16      $ 40.86  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Income from investment operations:               

Net investment income

      0.31        0.30        0.39        0.39        0.09  

Net realized and unrealized gain (loss) on investments

      (6.13 )       19.54        6.16        3.59        2.35  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total increase (decrease) from investment operations

      (5.82 )       19.84        6.55        3.98        2.44  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Less dividends:               

Dividends from net investment income

      (0.32 )       (0.31 )       (0.43 )       (0.39 )       (0.14 ) 

Distributions from net realized gains

      (0.85 )       (0.51 )       (0.13 )       (0.64 )       —    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total decrease from dividends

      (1.17 )       (0.82 )       (0.56 )       (1.03 )       (0.14 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, end of period

    $ 64.13      $ 71.12      $ 52.10      $ 46.11      $ 43.16  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total return

      (8.38 )%       38.33 %       14.28 %       9.65 %       6.50 %(a) 
Ratios/Supplemental data:               

Net assets, end of period (in 000’s)

    $ 213,705      $ 178,038      $ 94,039      $ 54,850      $ 29,978  

Ratio of expenses to average net assets

      0.95 %       0.95 %       0.95 %       0.95 %       0.95 %(b) 

Ratio of net investment income to average net assets

      0.41 %       0.44 %       0.82 %       0.88 %       0.83 %(b) 

Portfolio turnover(c)

      5 %       9 %       10 %       14 %       18 %(a) 

 

(a)

Not annualized.

(b)

Annualized.

(c)

Calculated at Fund level.

 

See Notes to Financial Statements

 

38

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS ENDED JULY 31,  
     2022     2021      2020      2019     2018  

Net Asset Value, beginning of period

    $ 14.94     $ 11.68      $ 11.07      $ 11.50     $ 11.31  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
Income (loss) from investment operations:             

Net investment income

      0.19       0.09        0.10        0.18       0.17  

Net realized and unrealized gain (loss) on investments

      (2.87 )      3.27        0.59        (0.40 )      0.24  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total increase (decrease) from investment operations

      (2.68 )      3.36        0.69        (0.22 )      0.41  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
Less dividends:             

Dividends from net investment income

      (0.18 )      (0.10 )       (0.08 )       (0.16 )      (0.19 ) 

Distributions from net realized gains

      (0.26 )      —          —          (0.05 )      (0.03 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total decrease from dividends

      (0.44 )      (0.10 )       (0.08 )       (0.21 )      (0.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, end of period

    $ 11.82     $ 14.94      $ 11.68      $ 11.07     $ 11.50  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total return

      (18.36 )%      28.76 %       6.28 %       (1.82 )%      3.62 % 
Ratios/Supplemental data:             

Net assets, end of period (in 000’s)

    $ 47,435     $ 46,508      $ 29,073      $ 22,110     $ 18,744  

Ratio of expenses to average net assets

      1.28 %      1.28 %       1.28 %       1.28 %      1.28 % 

Ratio of net investment income to average net assets

      1.55 %      0.77 %       0.98 %       1.79 %      1.71 % 

Portfolio turnover(a)

      29 %      31 %       20 %       23 %      28 % 

 

(a)

Calculated at Fund level.

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INSTITUTIONAL CLASS FINANCIAL HIGHLIGHTS

 

     FOR THE YEARS ENDED JULY 31,  
     2022     2021      2020      2019     2018  

Net Asset Value, beginning of period

    $ 14.90     $ 11.66      $ 11.07      $ 11.50     $ 11.31  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
Income (loss) from investment operations:             

Net investment income

      0.24       0.13        0.13        0.21       0.21  

Net realized and unrealized gain (loss) on investments

      (2.86 )      3.26        0.59        (0.38 )      0.23  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total increase (decrease) from investment operations

      (2.62 )      3.39        0.72        (0.17 )      0.44  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
Less dividends:             

Dividends from net investment income

      (0.24 )      (0.15 )       (0.13 )       (0.21 )      (0.22 ) 

Distributions from net realized gains

      (0.26 )      —          —          (0.05 )      (0.03 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total decrease from dividends

      (0.50 )      (0.15 )       (0.13 )       (0.26 )      (0.25 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, end of period

    $ 11.78     $ 14.90      $ 11.66      $ 11.07     $ 11.50  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total return

      (18.05 )%      29.09 %       6.51 %       (1.43 )%      3.90 % 
Ratios/Supplemental data:             

Net assets, end of period (in 000’s)

    $ 115,620     $ 112,002      $ 61,608      $ 42,012     $ 31,808  

Ratio of expenses to average net assets

      0.98 %      0.98 %       0.98 %       0.98 %      0.98 % 

Ratio of net investment income to average net assets

      1.85 %      1.07 %       1.28 %       2.09 %      2.01 % 

Portfolio turnover(a)

      29 %      31 %       20 %       23 %      28 % 

 

(a)

Calculated at Fund level.

 

See Notes to Financial Statements

 

39

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

  

 

NOTE 1 — Organization and Significant 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 “MSCI International 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 Investor Share Class commenced operations on March 18, 1992, the Balanced Fund Institutional Share Class commenced operations on November 30, 2020, the Equity Fund Individual Investor Share Class commenced operations on September 13, 1995, the Equity Fund Institutional Share Class commenced operations on April 30, 2018, and the Individual Investor Share Class and Institutional Share Class of the MSCI 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 an independent 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.

 

40

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

For non-U.S. securities traded in foreign markets, the MSCI 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 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.). Examples of level 2 inputs include 1) quoted prices for identical or similar assets in markets that are not active 2) investments valued at amortized cost and 3) investments valued with 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 Funds’ own assumptions in determining the fair value of investments.

In some cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

41

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

The following is a summary of the inputs used to value the Balanced Fund’s net assets as of July 31, 2022:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

COMMON STOCKS

      $256,629,769        $               —          $          —          $256,629,769  

BONDS & NOTES

      —          133,997,201        —          133,997,201  

SHORT-TERM OBLIGATIONS

      6,629,153        —          —          6,629,153  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $263,258,922        $133,997,201        $           —          $397,256,123  
  

 

 

     

 

 

     

 

 

     

 

 

  

The following is a summary of the inputs used to value the Equity Fund’s net assets as of July 31, 2022:

 

      LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

COMMON STOCKS

      $512,832,426        $       —          $       —          $512,832,426  

SHORT-TERM OBLIGATIONS

      2,329,087        —          —          2,329,087  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $515,161,513        $        —          $        —          $515,161,513  
  

 

 

     

 

 

     

 

 

     

 

 

  

The following is a summary of the inputs used to value the MSCI International Index Fund’s net assets as of July 31, 2022:

 

      LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  
COMMON STOCKS            

JAPAN

      $            —          $ 32,641,042        $         —          $ 32,641,042  

CANADA

      17,414,527        —          —          17,414,527  

UNITED KINGDOM

      447,518        15,723,624        —          16,171,142  

SWITZERLAND

      314,116        15,053,071        —          15,367,187  

NETHERLANDS

      —          15,020,440        —          15,020,440  

FRANCE

      —          14,239,654        —          14,239,654  

DENMARK

      —          11,995,898        —          11,995,898  

AUSTRALIA

      —          9,419,661        —          9,419,661  

GERMANY

      —          7,619,955        —          7,619,955  

HONG KONG

 		      —          6,365,883        —          6,365,883  

IRELAND

      —          2,301,177        —          2,301,177  

SPAIN

      —          2,279,184        —          2,279,184  

SWEDEN

      —          2,270,571        —          2,270,571  

ITALY

      —          1,674,518        —          1,674,518  

NORWAY

      —          1,338,493        —          1,338,493  

SINGAPORE

      —          1,335,976        —          1,335,976  

FINLAND

      —          1,317,404        —          1,317,404  

JERSEY

      —          1,096,525        —          1,096,525  

BELGIUM

      —          833,575        —          833,575  

ISRAEL

      —          601,581        —          601,581  

NEW ZEALAND

      —          165,664        —          165,664  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL COMMON STOCKS

      18,176,161        143,293,896        —          161,470,057  
  

 

 

     

 

 

     

 

 

     

 

 

  

SHORT-TERM OBLIGATIONS

      473,689        —          —          473,689  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL

      $18,649,850        $143,293,896        $          —          $161,943,746  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

42

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

There were no transfers into or out of Level 3 during 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.

  (C)

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 MSCI International Index Fund had no open foreign currency spot contracts outstanding as of July 31, 2022.

    

Cash, including cash denominated in foreign currencies, represents cash on hand held at major financial institutions and is subject to credit risk to the extent the balance exceeds applicable Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) limitations.

  (D)

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.

  (E)

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.

    

U.S. GAAP requires that all entities, including pass-through entities such as the Funds, establish 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, 2022. Also, the Funds had recognized no interest and penalties related to uncertain tax benefits through July 31, 2022. At July 31, 2022, the tax years 2019 through 2022 remain open to examination by the Internal Revenue Service.

 

43

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

  (F)

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 year ended July 31, 2022, the Balanced Fund, Equity Fund and MSCI International Index Fund received $9,195, $15,044, and $9,207 respectively, in redemption fees. Redemption fees are recorded as an adjustment to paid-in capital.

  (G)

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, 2022, no liability has been accrued.

  (H)

Offsetting of Assets and Liabilities:    As of July 31, 2022, 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, 2022, 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. Green Century’s investment advisory fee with respect to the Fund shall be equal on an annual basis to 0.65% of the average daily net assets of the Fund up to $250 million and 0.60% of the value of the average daily net assets of the Fund in excess of $250 million, accrued daily and paid monthly. 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 MSCI International Index Fund pays Green Century a fee, accrued daily and paid monthly, at an annual rate of 0.28% of the MSCI International Index Fund’s average daily net assets.

  (B)

Subadvisers:    Trillium Asset Management, LLC (“Trillium”) is the subadviser for the Balanced Fund. Trillium’s investment subadvisory fee with respect to the Fund shall be equal on an annual basis to 0.40% of the value of the average daily net assets of the Fund up to $30 million, 0.35% of the value of the average daily net assets of the Fund in excess of $30 million up to $250 million, and 0.30% of the value of the average daily net assets of the Fund in excess of $250 million. For the year ended July 31, 2022, Green Century accrued fees of $1,373,278. Northern Trust Investments, Inc. (“Northern Trust”) is the subadviser for the Equity Fund and MSCI 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 MSCI 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, 2022, Green Century accrued fees of $204,384 and $196,120 to Northern Trust for the Equity Fund and the MSCI International Index Fund, respectively.

 

44

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

  (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 Individual Investor Class average daily net assets up to and including $250 million and 1.43% of the Fund’s Individual Investor Class average daily net assets in excess of $250 million, and 1.18% of the Fund’s Institutional Class average daily net assets up to and including $250 million and 1.13% of the Fund’s Institutional Class average daily net assets in excess of $250 million. 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 Individual Investor Class average daily net assets, and 0.95% of the Fund’s Institutional Class average daily net assets. The MSCI 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, 2022, Green Century accrued fees of $264,461, $324,554, and $133,693 to UMBFS related to services performed on behalf of the Balanced Fund, the Equity Fund, and the MSCI International Index Fund, respectively.

  (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 $27,370, 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 MSCI 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 MSCI International Index Fund, MSCI is paid by the Adviser an annual license fee of $27,820, plus the greater of $25,000 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. For the year ended July 31, 2022, Green Century accrued fees of $216,754 and $103,380 to MSCI for the Equity Fund and MSCI International Index Fund, respectively.

NOTE 3 — Investment Transactions

For the year ended July 31, 2022, the Balanced Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $58,221,362 and $36,535,412 respectively. The Equity Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $74,336,824 and $27,148,662, respectively. The MSCI International Index Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $87,966,280 and $47,510,608, respectively.

 

45

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

NOTE 4 — Federal Income Tax Information

The tax basis of the components of distributable net earnings (deficit) at July 31, 2022 were as follows:

 

     BALANCED FUND      EQUITY FUND      MSCI INTERNATIONAL
INDEX FUND		  

Undistributed ordinary income

    $ —        $ 38,797      $ —    

Undistributed long-term capital gains

      5,708,503        1,290,374        —    
  

 

 

     

 

 

     

 

 

  

Tax accumulated earnings

      5,708,503        1,329,171        —    
  

 

 

     

 

 

     

 

 

  

Accumulated capital and other losses

      —          —          (2,799,944 ) 

Unrealized appreciation (depreciation)

      99,063,336        232,917,614        (1,956,491 ) 

Foreign currency translations

      —          —          (28,146 ) 
  

 

 

     

 

 

     

 

 

  

Distributable net earnings (deficit)

    $ 104,771,839      $ 234,246,785      $ (4,784,581 ) 
  

 

 

     

 

 

     

 

 

  

Losses incurred after October 31 (“post-October” losses) within the taxable year are deemed to arise on the first day of the Fund’s next taxable year. As of July 31, 2022, the MSCI International Index had $2,799,944 of post-October capital losses which are deferred until August 1, 2022 for tax purposes.

The tax character of distributions paid during the fiscal year ended July 31, 2022 and the year ended July 31, 2021 were as follows:

 

     BALANCED FUND      EQUITY FUND  
     YEAR ENDED
JULY 31, 2022		      YEAR ENDED
JULY 31, 2021		      YEAR ENDED
JULY 31, 2022		      YEAR ENDED
JULY 31, 2021		  

Ordinary income

    $ 2,224,717      $ 670,021      $ 1,971,818      $ 1,620,123  

Long-term capital gains

      14,741,440        11,202,683        5,344,361        2,863,736  
     MSCI INTERNATIONAL
INDEX FUND		                
     YEAR ENDED
JULY 31, 2022		      YEAR ENDED
JULY 31, 2021		                

Ordinary income

    $ 3,753,140      $ 1,385,789        

Long-term capital gains

      1,977,811        —          

NOTE 5 — Capital Share Transactions

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

 

     BALANCED FUND
INDIVIDUAL INVESTOR CLASS		     BALANCED FUND
INDIVIDUAL INVESTOR CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

YEAR ENDED

JULY 31, 2021

  

Shares sold

      1,261,887       1,522,668  

Reinvestment of dividends

      336,823       328,224  

Shares redeemed

      (1,297,432 )      (3,196,079 ) 
  

 

 

    

 

 

  
     301,278       (1,345,187 ) 
  

 

 

    

 

 

  

 

46

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   continued

 

     BALANCED FUND
INSTITUTIONAL CLASS		     BALANCED FUND
INSTITUTIONAL CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

PERIOD ENDED

JULY 31, 2021

  

Shares sold

      848,497       2,406,989  

Reinvestment of dividends

      105,258       19,108  

Shares redeemed

      (206,135 )      (109,202 ) 
  

 

 

    

 

 

  
     747,620       2,316,895  
  

 

 

    

 

 

  
     EQUITY FUND
INDIVIDUAL INVESTOR CLASS		     EQUITY FUND
INDIVIDUAL INVESTOR CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

YEAR ENDED

JULY 31, 2021

  

Shares sold

      538,236       584,672  

Reinvestment of dividends

      51,303       44,915  

Shares redeemed

      (647,575 )      (983,440 ) 
  

 

 

    

 

 

  
     (58,036 )      (353,853 ) 
  

 

 

    

 

 

  
     EQUITY FUND
INSTITUTIONAL CLASS		     EQUITY FUND
INSTITUTIONAL CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

YEAR ENDED

JULY 31, 2021

  

Shares sold

      1,249,076       941,642  

Reinvestment of dividends

      41,391       25,403  

Shares redeemed

      (461,512 )      (268,728 ) 
  

 

 

    

 

 

  
     828,955       698,317  
  

 

 

    

 

 

  
     MSCI INTERNATIONAL INDEX
INDIVIDUAL INVESTOR
CLASS		     MSCI INTERNATIONAL INDEX
INDIVIDUAL INVESTOR
CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

YEAR ENDED

JULY 31, 2021

  

Shares sold

      1,282,266       1,098,251  

Reinvestment of dividends

      112,334       19,664  

Shares redeemed

      (496,937 )      (494,063 ) 
  

 

 

    

 

 

  
     897,663       623,852  
  

 

 

    

 

 

  

 

47

GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

   concluded

 

     MSCI INTERNATIONAL
INDEX INSTITUTIONAL
CLASS		     MSCI INTERNATIONAL
INDEX INSTITUTIONAL
CLASS		  
    

YEAR ENDED

JULY 31, 2022

    

YEAR ENDED

JULY 31, 2021

  

Shares sold

      3,386,081       3,286,981  

Reinvestment of dividends

      309,058       73,909  

Shares redeemed

      (1,395,350 )      (1,130,521 ) 
  

 

 

    

 

 

  
     2,299,789       2,230,369  
  

 

 

    

 

 

  

NOTE 6 — Market Risks and Geopolitical Risks

Certain local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on a security or instrument. In March 2020, a pandemic related to COVID-19 was declared. The pandemic represents a market risk factor including uncertainty in the financial markets. Following Russia’s large-scale invasion of Ukraine, the President of the United States signed an Executive Order in February 2022 prohibiting U.S. persons from entering transactions with the Central Bank of Russia and Executive Orders in March 2022 prohibiting U.S. persons from importing oil and gas from Russia as well as other popular Russian exports, such as diamonds, seafood and vodka. There may also be restrictions on investments in Chinese companies. For example, the President of the United States of America signed an Executive Order in June 2021 affirming and expanding the U.S. policy prohibiting U.S. persons from purchasing or investing in publicly-traded securities of companies identified by the U.S. Government as “Chinese Military-Industrial Complex Companies.” The list of such companies can change from time to time, and as a result of forced selling or an inability to participate in an investment the Adviser otherwise believes is attractive, the Funds may incur losses. The duration of the coronavirus outbreak and the Russian-Ukraine conflict could adversely affect the Funds’ performance, the performance of the securities in which the Fund invests and may lead to losses on your investment. The ultimate impact of COVID-19 and Russia Invasion on the financial performance of the Funds’ investments is not reasonably estimable at this time. Green Century will continue to monitor market conditions as information is available and evaluate the potential impacts, if any, on the value of its investments.

NOTE 7 — Subsequent Events

Subsequent to July 31, 2022 and through the date on which the financial statements were available for issuance, management has evaluated subsequent events requiring disclosure.

There were no events requiring accrual or disclosure.

 

48

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

LOGO   

    KPMG LLP

    Two Financial Center

    60 South Street

    Boston, MA 02111

To the Shareholders and Board of Trustees

Green Century Funds:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Green Century Balanced Fund, Green Century Equity Fund and Green Century MSCI International Index Fund, each a series of Green Century Funds (the Funds), including the portfolios of investments, as of July 31, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of July 31, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the years 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.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of July 31, 2022, by correspondence with custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

 

LOGO

We have served as the auditor of one or more Green Century investment companies since 1995.

Boston, Massachusetts

September 19, 2022

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

 

49

TAX INFORMATION

For the year ended July 31, 2022, the Balanced Fund, Equity Fund and MSCI International Fund, respectively, had 100%, 100% and 0.00% of dividends paid from net investment income qualified for the 70% dividends received deduction available to corporate shareholders.

For the year ended July 31, 2022, the Balanced Fund, Equity Fund and MSCI International Fund, respectively, had 100%, 100% and 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, 2022. 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: 62

   Trustee since 2014   Chief Financial Officer, AltEnergy Acquisition Corp. (since 2021); Member, AltEnergy Acquisition Sponsor (since 2021); Managing Director, AltEnergy, LLC, an investment firm, (since 2016); Managing Director, Pickwick Capital Partners (since 2014); President/Founder, Patolan Partners, an advisory and investment firm (since 2011).     3  

Daniel S. Kern

114 State Street

Suite 200

Boston, MA 02109

Age: 61

   Trustee since 2015   Chief Investment Officer, TFC Financial Management (since 2015); President and Chief Investment Officer, Advisor Partners LLC (2011 to 2015); Board member, Wealthramp (since 2015).     3  

Peter D. Kinder

114 State Street

Suite 200

Boston, MA 02109

Age: 75

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

 

50

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

  

Sanford Pooler

114 State Street

Suite 200

Boston, MA 02109

Age: 65

   Trustee since 2021   Deputy Town Manager/Finance Director, Town of Arlington, MA (since 2016); Finance Director, Town of Amherst, MA (2011-2016).     3  

Mary Raftery

114 State Street

Suite 200

Boston, MA 02109

Age: 57

   Trustee since 2009   Senior Advisor, Funder Collaborations, ClimateWorks Foundation (since 2014); Organizational Development Consultant, Self-employed (since 2007).     3  

James H. Starr

114 State Street

Suite 200

Boston, MA 02109

Age: 74

   Chairperson since 2009; Trustee since 1991   Retired (since 2018); Consultant, Rainville Petito, PLLC (2016 to 2018); Consultant, Danielson Rainville Attorneys, PLLC (2015); Director and President, Gunnison Valley Housing Foundation (since 2010); Director (since 2011) and President (2015-2018), Coal Creek Watershed Coalition.     3  

Thomas Subak

114 State Street

Suite 200

Boston, MA 02109

Age: 58

   Trustee since 2021   Independent Consultant, Tom Subak LLC (since 2020); Independent Consultant and Chief Partnership Officer, Catchafire, a nonprofit organization (2019-2020); Chief Strategy Officer and Assistant to the President, Planned Parenthood Federation of America (2016-2018).     3  
Interested Trustees:      

Douglas H. Phelps*

114 State Street

Suite 200

Boston, MA 02109

Age: 75

   Trustee since 1997   President and Chief Executive Officer, The Public Interest Network (since 1982); Director, Green Century Capital Management, Inc. (since 1996).     3  

Wendy Wendlandt*

114 State Street

Suite 200

Boston, MA 02109

Age: 60

   Trustee since 1991   Director, Green Century Capital Management, Inc. (since 2006); Senior Vice President and Political Director, The Public Interest Network (since 1989); Senior Staff, Fund for Public Interest (since 1989); Acting President, Environment America (since 2020).     3  

 

51

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

  
Officers:      

Leslie Samuelrich*

114 State Street

Suite 200

Boston, MA 02109

Age 58

   President since 2021   President (since 2021), Green Century Capital Management, Inc.    
 Not
applicable		  
 

Matthew Dunlap*

114 State Street

Suite 200

Boston, MA 02109

Age: 49

   Treasurer since 2021   Senior Finance Manager (since 2020) and Treasurer (since 2021), Green Century Capital Management, Inc.; Assistant Vice President, State Street Corporation (2005-2019).    
 Not
applicable		  
 

Jessica Rubinstein*

114 State Street

Suite 200

Boston, MA02109

Age: 46

   Chief Compliance Officer since 2022; Secretary and Assistant Treasurer since 2022   Chief Compliance Officer and Clerk (since 2022), Green Century Capital Management, Inc., Compliance Officer (since 2021), Green Century Capital Management Inc.; Senior Associate (since 2017) Mercer Investments    
 Not
applicable		  
 

 

52

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

 

Annual Report

 

Beginning in March 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Green Century Funds’ shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from Green Century or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Green Century Funds electronically by contacting your financial intermediary or, if you invest directly with the Funds, by contacting Shareholder Services at 1-800-221-5519 or by visiting https://www.greencentury.com/access-my-account/.

You may elect to receive all future reports in paper free of charge. If you invest directly with the Funds, you can inform Green Century that you wish to continue receiving paper copies of your shareholder reports by contacting Green Century at 1-800-221-5519 or via email at info@greencentury.com. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all accounts held in the Green Century Funds.

LOGO

July 31, 2022

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 Sanford Pooler, 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. Pooler 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 7/31/22: $91,850

For the fiscal year ended 7/31/21: $86,500

 

  (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 7/31/22: $20,445

For the fiscal year ended 7/31/21: $19,290

  (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 7/31/22: $20,445

For the fiscal year ended 7/31/21: $19,290

 

  (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. Disclosure of securities lending activities for closed-end management investment companies.

Not applicable.

Item 13. 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.

 

      (3)

Not applicable.

      (4)

There was no change in the registrant’s independent public accountant for the period covered by this report.

 

  (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/ Leslie Samuelrich

Leslie Samuelrich
President and Principal Executive Officer
September 30, 2022

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/ Leslie Samuelrich

Leslie Samuelrich
President and Principal Executive Officer
September 30, 2022

/s/ Matthew Dunlap

Matthew Dunlap
Treasurer and Principal Financial Officer
September 30, 2022