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Green Century Funds

Filed: 6 Oct 20, 7:38am

 

 

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, 2020

 

 

 


Item 1. Reports to Stockholders

The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).


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ANNUAL REPORT

Green Century Balanced Fund

Green Century Equity Fund

Green Century MSCI International Index Fund

July 31, 2020

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 Green Century Funds Shareholder:

I am pleased to report that all three of the Green Century Funds outperformed their benchmarks in the quarter that ended June 30, 2020. You can read more about the Funds’ performance in the attached Annual Report.

As a Green Century investor, you are part of a growing number of individuals interested in environmentally-responsible investing. While responsible investing is increasingly common, Green Century remains unique.

Our three-pronged approach offers investors an unparalleled opportunity to make an environmental impact while seeking competitive financial returns.

What makes us unique?

Green Century invests in sustainable companies

Value-based screens

The Green Century Funds are entirely fossil fuel free. All of the Green Century Funds are prohibited—by prospectus—from investing in companies that explore for, extract, process, refine, and transmit coal, oil, or gas; burn fossil fuels to make electricity; or possess carbon reserves.

As the first family of fossil fuel free, diversified, and responsible mutual funds in the U.S., we have championed fossil fuel divestment since before the divestment movement was launched in 2012.

We continue to play an important role, frequently demonstrating the potential financial benefits—including better performance, lower volatility, and avoidance of stranded assets—of fossil fuel free investing. In April, in commemoration of the 50th anniversary of Earth Day, I was honored to be part of an Environment America web panel on fossil fuel free investing with celebrated environmentalist and author Bill McKibben.

Green Century’s sustainable investment strategy excludes more than just fossil fuel companies, too. We also screen out producers of nuclear energy, nuclear weapons, conventional firearms, GMOs (Genetically Modified Organisms), or tobacco.


Environmental, Social, and Governance (ESG) performance ratings

Since Green Century was founded in 1991, we have sought to invest in environmental leaders and other companies that outperform their peers in addressing the most relevant environmental, supply chain, and corporate governance risks in their industries.

The use of ESG performance ratings may reduce risk and may offer financial advantages, too. It also grants investors the peace of mind to know that they’re only supporting corporate leaders in the effort to address the climate crisis, improve supply chain practices, and implement strong governance structures.

While new ESG products continue to launch, our decades of experience provides investors with an authentic and time-tested approach.

Green Century leverages its status as an investor to produce improved corporate environmental practices

Green Century believes that even corporate sustainability leaders have room for improvement, which is why this year we will work with over 100 companies to adopt stronger environmental practices throughout their operations and supply chains. We believe that companies that protect the environment and public health may avoid brand and reputational damage, which can protect shareholder interests.

Green Century’s shareholder advocacy program directly presses corporations to reduce potential investment risks and deliver tangible results.

Already in 2020, Green Century has:

 

  

Successfully worked with ADM,1 a Fortune 50 corporation, to enhance its efforts to mitigate deforestation in its supply chain;

  

Successfully pressed Tyson Foods,1 the second largest meat processor in the world, to develop and implement a No Deforestation policy that eliminates the destruction of rainforests in their supply chain and protects habitats for endangered species;

  

Commended Vertex Pharmaceuticals1 for meeting and exceeding its company-wide goal to reduce operational greenhouse gas (GHG) emissions by the end of 2019.

Green Century supports our environmental and public health nonprofit owners

Green Century is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations. This means that 100 percent of the profits Green Century Capital Management earns managing our Funds can be used to support their critical work.

This one-of-a-kind ownership structure is integral to our mission and an important way that we help our investors align their investments with their values.

In the last year, Green Century helped fund many of our nonprofit owners’ environmental and public health campaigns—and the campaigns have made real strides.

 

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For example, the Wildlife over Waste campaign, which aims to ban take-out plastic foam cups and containers to spare birds, fish and other wildlife from the harm caused by needless plastic pollution, has helped convince Maine, Maryland, Vermont, and Oregon to ban polystyrene.

The 100% Renewable Energy campaign, recently honored as a finalist in the Fast Company World Changing Ideas Awards, has helped push six states—Hawaii, California, New Mexico, Washington, New York, and Maine—to adopt 100% zero-carbon electricity legislation. And the campaign continues in Massachusetts, New Jersey, Pennsylvania, North Carolina, Florida, Michigan, Illinois, and Minnesota.

Green Century’s many environmental victories are only possible because of our investors, so thank you for choosing to make an impact with us. We appreciate your support and are always here to answer any questions.

I also encourage you to subscribe to our free, online newsletter. You can sign up by visiting www.GreenCentury.com, emailing us at info@greencentury.com, or calling us at 1-800-934-7336.

Sincerely,

Leslie Samuelrich

President

Green Century Capital Management

 

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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, 2020 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, 2020; the Green Century Balanced Fund (the Balanced Fund or the Fund) was diversified in a number of ways. Equity holdings represented 62.9% and

bonds constituted 30.7% of the Fund’s net asset value. The Fund had 6.4% 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 68 equity holdings at fiscal year-end, none of which represented more than 3.4% of total net assets. Generally, larger, less-volatile companies constitute larger positions in the Fund’s portfolio than smaller companies. The portfolio managers seek to mitigate risk by investing primarily in companies they believe have demonstrated records of profitability, above-average growth prospects, and reasonable valuations.

As of July 31, the stocks held by the Balanced Fund were also diversified by sector, with (as a percent of total net assets) Technology (18.6%), Healthcare (9.3%), and Industrials (6.7%) 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

 

GREEN CENTURY BALANCED FUND

INVESTMENT BY INDUSTRY (unaudited)

 

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industries including Healthy Living, Capital Goods, and Transportation. Green Century’s environmental screens keep the Fund out of traditional Energy and Utility companies, while the Fund has broad exposure to Information Technology, Health Care, Financial, Consumer, and Industrial companies.

In addition to its equity exposure to environmental leaders, the Fund invests in designated Green Bonds 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 31, 19.1% of the total portfolio and 62.5% 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 47 bonds diversified across corporate and government agency issuers. In an effort to dampen volatility, the weighted average maturity (5.21 years) and modified duration (4.11 years) remain in the intermediate-range. The weighted average yield to maturity was 0.99%. All fixed income holdings were investment grade at the time of purchase and remained investment grade through the end of the fiscal year.

Economic Environment.    The rapid spread of Covid-19 upended all predictions about the year’s stock and bond market returns. In February and March, first the specter, and then the reality, of worldwide pandemic crushed both equity markets and bond markets, exposing fault lines of illiquidity running throughout and between markets. Disruption in Asian supply chains, followed closely by a dramatic shutdown of activity in Europe, swept away our late-2019 expectations for calm markets and improving economic growth in 2020.

In addition, economic and travel shutdowns cratered the demand for oil, which led Saudi Arabia and Russia, unable to agree on a supply cut, to instead increase supply. The price war, designed to drive marginal oil producers, such as U.S. shale oil producers, out of business, compounded the economic damage. Investors scrambled for safety, but many found that their holdings were immeasurably less liquid than they had believed. Investors who were unable to sell what they wanted to sell then moved on to sell what they could sell, pushing waves of selling from the stock market to corporate credit, U.S. Treasuries, and money markets.

Bond market trading seized up, further exacerbated by the actions of exchange traded funds (ETFs), leveraged ETFs, and hedge funds forced to sell holdings at any price to meet liquidations. Even the U.S. Treasury market, generally thought of as the world’s most liquid market, ground to a halt, exposing orders-of-magnitude less dealer support and market making activity than during the Great Financial Crisis. The U.S. Federal Reserve unleashed massive monetary policy measures to support market liquidity, while the Congress enacted an initial fiscal policy response amounting to over 10% of the 2019 level of GDP, which cushioned the immediate economic damage from enforced shutdowns of economic activity. Markets staged a remarkable comeback between April and July, with many indications of improving economic conditions, particularly in countries and regions that were able to reopen safely.

The big questions are whether reopening will lead to sustained economic activity, to what degree we may have an economic backlash due to job losses and government budget constraints, and if the resurgence in

 

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illness and deaths we are currently seeing continues unabated without mitigation by an effective vaccine. Lastly, the outcome of the upcoming U.S. Presidential election very likely has a profound impact on both the direction and scale of the massive monetary and fiscal policies currently supporting the economic environment.

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

The Balanced Fund holds a number of stocks which the portfolio managers believe have attractive environmental, social, and financial characteristics. New holdings over the reporting period include AstraZeneca1 and salesforce.com.1 AstraZeneca is a leading pharmaceutical company with a focus on oncology, cardiovascular health, and vaccines, including a new partnership with Oxford to develop a coronavirus vaccine. Salesforce.com produces a cloud-based customer relationship management software widely used by a variety of large companies, with a commitment to renewable energy and lower energy use in its datacenters.

The Fund holds over $59 million in Green / Sustainability or Social Impact Bonds and Notes, including notes issued by Apple,1 The Korea Development Bank,1 International Finance Corp.,1 International Bank for Reconstruction and Development (World Bank),1 U.S. International Development Finance Corp. (which until January 2020 was named the Overseas Private Investment Corp. or OPIC),1 Starbucks,1 and Enterprise Community Loan Fund.1

For the year ended July 31, 2020, the Balanced Fund’s returns were 8.19%, underperforming the 9.97% 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 underperformance of the Fund during this time period is primarily reflective of a cash drag in the fixed income portion of the portfolio as bonds rallied.

The Fund’s exposure to payment company PayPal1 for the twelve-month period helped provide strong relative returns in Technology, as did semiconductor equipment exposure from ASML.1 In Communication Services, the Fund saw above market performance from Alphabet1 and the New York Times.1 The Fund’s Financials exposure detracted from relative performance over the year, particularly regional bank KeyCorp,1 as well as insurance company Travelers.1 The Fund’s high-quality fixed income exposure performed relatively in-line with the benchmark as designed, although with some underperformance from the Fund’s lack of exposure to Treasuries.

The 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.

 

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Green Century Balanced Fund

Total expense ratio: 1.47%

 CUMULATIVE
RETURN*
  AVERAGE ANNUAL RETURN* 
 Latest
Quarter
  One Year  Five Years  Ten Years 
June 30, 2020 

Green Century Balanced Fund

Custom Balanced Index

  

14.28%

13.45%

 

 

  

5.31%

7.03%

 

 

  

5.82%

7.76%

 

 

  

8.93%

9.67%

 

 

July 31, 2020 

Green Century Balanced Fund

Custom Balanced Index

  

9.81%

8.54%

 

 

  

8.19%

9.97%

 

 

  

6.49%

8.26%

 

 

  

8.88%

9.57%

 

 

* 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.

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® Index5 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 Index6 (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 those companies believed to have the best overall sustainability records. Green Century believes that certain industries impose unique and

 

GREEN CENTURY EQUITY FUND

INVESTMENT BY INDUSTRY (unaudited)

 

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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, 2020 was 12.86% for the individual share class and 12.91% for the institutional share class, closely tracking the S&P 500® Index, which returned 12.87% 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, 2020 Green Century Equity Index Fund — Individual Share Class  21.21%   11.08%   11.07%   13.20% 
 Green Century Equity Fund — Institutional Share Class  21.32%   11.40%   11.21%   13.27% 
  S&P 500® Index  20.54%   7.51%   10.73%   13.99% 
July 31, 2020 Green Century Equity Index Fund — Individual Share Class  12.86%   13.95%   11.53%   13.05% 
 Green Century Equity Fund — Institutional Share Class  12.91%   14.28%   11.68%   13.12% 
  S&P 500® Index  12.87%   11.96%   11.49%   13.84% 

* 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.

For the year ended July 31, 2020, the Equity Fund institutional and investor share classes returned 14.28% and 13.95%, respectively, outperforming the S&P 500® Index which returned 11.96%. 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 performance of the Fund, relative to the MSCI Index, was boosted by the positive impact of stock selection in the Utilities and Materials sectors and by not holding securities in the Energy sector. The relative performance of the Fund was negatively impacted by stock selection in the Information Technology and Consumer Discretionary sectors.

 

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The strongest performing sectors in the Equity Fund were Information Technology, Utilities and Health Care which returned 27.87%, 22.09% and 21.76%, respectively. The worst performing sectors were Real Estate and Industrials, which returned 3.71% and 5.80%, respectively, for the year. Within the S&P 500

Index, Information Technology, Consumer Discretionary and Health Care were the strongest performing sectors, gaining 38.91%, 21.47%, and 18.75%, respectively. The worst performing sectors were Energy and Financials, which returned –38.26% and –12.81%, respectively, for the year.

Despite a sharp decline of more than 30% in the first quarter of 2020, the S&P 500 Index was up nearly 12% in the year—July was nearing all-time highs reached previously in February. The increased volatility stemmed from investor sentiment around the global response to the spreading pandemic. A swift response on interest rate policy and stimulus by the Federal Reserve helped stem the volatility, with a drastic rate cut to zero and an unprecedented stimulus package announced after a surprise meeting in March. Energy was the worst-performing sector in the index for the year, as crude oil prices dipped to negative prices on the front month contract in April, but has recovered since settling in around $40 per barrel in July. All other sectors fluctuated with the market, but one category, Information Technology, outpaced all others and held up the best throughout the volatility and subsequent recovery.

 

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

 

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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

GREEN CENTURY 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 Index7 (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,8 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.

International markets have continued to perform well recently; both share classes of the International Fund outperformed its benchmark for the latest quarter ended July 31, 2020. The Fund’s total return was 11.35% for the individual share class and 11.46% for the institutional share class for this period, while the MSCI World ex USA Index returned 10.69% 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  Three Years  Since
Inception
 
June 30, 2020 Green Century MSCI International Index Fund — Individual Share Class  15.68%   1.08%   2.67%   4.93% 
 Green Century MSCI International Index Fund — Institutional Share Class  15.79%   1.39%   2.97%   5.22% 
 MSCI World ex USA Index  15.34%   –5.42%   0.84%   3.86% 
July 31, 2020 Green Century MSCI International Index Fund — Individual Share Class  11.35%   6.28%   2.64%   5.65% 
 Green Century MSCI International Index Fund — Institutional Share Class  11.46%   6.51%   2.94%   5.94% 
 MSCI World ex USA Index  10.69%   –1.72%   0.74%   4.49% 

* 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.

 

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For the one year period ended July 31, 2020, 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 6.51% and 6.28%, respectively, while the MSCI World ex USA Index (Index), returned

–1.72% 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 Information Technology, Health Care and Utilities, which returned 39.75%, 34.76% and 9.63%, respectively. The worst performing sectors were Real Estate and Financials, which returned –18.01% and –10.84%, respectively, for the year. Within the MSCI World ex USA Index, Information Technology, Health Care and Utilities were the strongest performing sectors, gaining 25.68%, 21.25%, and 11.54%, respectively. The worst performing sectors were Energy and Real Estate, which returned –33.57% and –17.16%, respectively, for the year.

International equities were down almost 2% for the year ended July 31, 2020. Countries around the world were plagued by the rise of a global pandemic that spread throughout the world beginning in late 2019 and early 2020. The pandemic forced a global economic shutdown as a response to its rapid infection rate in order to prevent additional spreading.

 

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.

 

14


The U.S. Federal Reserve took a proactive stance against the virus, cutting interest rates to zero and announcing unprecedented stimulus in a surprise meeting in March. This development, combined with other nations utilizing similar economic tools, contributed to a swift stock market recovery off of multi-year lows reached in the first quarter of 2020. Technology stocks led other sectors on the year as they performed well during the volatility as well as leading the subsequent recovery.

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

 

 

1 As of July 31, 2020, 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
 

Archer-Daniels-Midland Company (ADM)

  0.00  0.16  0.00

Vertex Pharmaceuticals, Inc.

  0.00  0.48  0.00

AstraZeneca PLC ADR

  1.25  0.00  0.00

salesforce.com, Inc.

  2.01  1.12  0.00

Apple, Inc.

  4.84  0.00  0.00

The Korea Development Bank

  0.41  0.00  0.00

International Finance Corporation

  0.18  0.00  0.00

International Bank for Reconstruction & Development

  0.70  0.00  0.00
Portfolio Holdings GREEN
CENTURY
BALANCED
FUND
  GREEN
CENTURY
EQUITY
FUND
  GREEN
CENTURY
INTERNATIONAL
INDEX FUND
 

U.S. International Development Finance Corporation

  2.02  0.00  0.00

Starbucks Corporation

  1.59  0.61  0.00

Enterprise Community Loan Fund, Inc.

  1.00  0.00  0.00

PayPal Holdings, Inc.

  1.99  1.49  0.00

ASML Holding NV

  0.94  0.00  3.97

Alphabet, Inc., Class A

  2.75  3.04  0.00

The New York Times Company

  0.88  0.04  0.00

KeyCorp

  0.63  0.08  0.00

The Travelers Companies, Inc.

  0.94  0.20  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, 2020, 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.

 

15


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 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.

6 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.

7 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.

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 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.

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 9/20

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.

 

16


GREEN CENTURY FUNDS EXPENSE EXAMPLE

For the six months ended July 31, 2020 (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, 2020 to July 31, 2020 (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, 2020
  ENDING
ACCOUNT VALUE
JULY 31, 2020
  EXPENSES
PAID DURING
THE PERIOD1
 

Balanced Fund

   

Actual Expenses

 $1,000.00  $1,039.00  $7.47 

Hypothetical Example, assuming a 5% return before expenses

  1,000.00   1,017.67   7.39 

 

17


  BEGINNING
ACCOUNT VALUE
FEBRUARY 1, 2020
  ENDING
ACCOUNT VALUE
JULY 31, 2020
   EXPENSES
PAID DURING
THE  PERIOD1
 

Equity Fund

    

Actual Expenses — Individual Investor Class

 $1,000.00  $1,045.00   $6.36 

Actual Expenses — Institutional Class

  1,000.00   1,046.40    4.83 

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

  1,000.00   1,018.79    6.27 

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

  1,000.00   1,020.28    4.77 
  BEGINNING
ACCOUNT VALUE
FEBRUARY 1, 2020
  ENDING
ACCOUNT VALUE
JULY 31, 2020
   EXPENSES
PAID DURING
THE  PERIOD1
 

MSCI International Index Fund

    

Actual Expenses — Individual Investor Class

 $1,000.00  $976.60   $6.29 

Actual Expenses — Institutional Class

  1,000.00   978.40    4.82 

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

  1,000.00   1,018.64    6.42 

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

  1,000.00   1,020.13    4.92 

1 Expenses are equal to the Funds’ annualized expense ratios (1.47% for the Balanced Fund, 1.25% for the Equity Fund Individual Investor Class, 0.95% for the Equity Fund Institutional Class, 1.28% for the MSCI International Index Fund Individual Investor Class and 0.98% for the MSCI International Index Fund Institutional Class), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

 

18


GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 

 

COMMON STOCKS — 62.9%

 

   SHARES   VALUE 

Software & Services — 11.0%

 

Adobe, Inc. (a)

   8,785   $3,903,351 

Autodesk, Inc. (a)

   11,965    2,828,885 

Blackbaud, Inc.

   20,007    1,251,238 

Mastercard, Inc., Class A

   23,949    7,388,985 

Microsoft Corporation

   48,079    9,856,676 

PayPal Holdings, Inc. (a)

   31,386    6,153,853 

salesforce.com, Inc. (a)

   13,615    2,652,882 
    

 

 

 
     34,035,870 
    

 

 

 

Capital Goods — 5.6%

    

A.O. Smith Corporation

   36,108    1,738,239 

Deere & Company

   8,712    1,536,013 

Eaton Corporation PLC

   30,012    2,795,017 

Illinois Tool Works, Inc.

   11,220    2,075,588 

Rockwell Automation, Inc.

   8,926    1,947,118 

Trane Technologies PLC

   33,689    3,768,788 

Westinghouse Air Brake Technologies Corporation

   33,630    2,091,450 

Xylem, Inc.

   21,084    1,538,710 
    

 

 

 
     17,490,923 
    

 

 

 

Pharmaceuticals & Biotechnology — 4.7%

 

  

AstraZeneca PLC ADR (b)

   69,516    3,877,602 

Gilead Sciences, Inc.

   18,304    1,272,677 

Illumina, Inc. (a)

   6,510    2,487,862 

IQVIA Holdings, Inc. (a)

   15,895    2,517,609 

Merck & Company, Inc.

   55,816    4,478,676 
    

 

 

 
     14,634,426 
    

 

 

 

Media & Entertainment — 4.7%

    

Alphabet, Inc., Class A (a)

   5,733    8,530,417 

Facebook, Inc., Class A (a)

   13,120    3,328,151 

New York Times Company (The), Class A

   59,028    2,723,552 
    

 

 

 
     14,582,120 
    

 

 

 

Retailing — 4.7%

    

Booking Holdings, Inc. (a)

   968    1,608,942 

Home Depot, Inc. (The)

   13,443    3,568,982 

Target Corporation

   22,417    2,821,852 

TJX Companies, Inc. (The)

   55,313    2,875,723 

Tractor Supply Company

   25,106    3,583,630 
    

 

 

 
     14,459,129 
    

 

 

 
   SHARES   VALUE 

Healthcare Equipment & Services — 4.6%

 

  

Anthem, Inc.

   9,997   $2,737,178 

Baxter International, Inc.

   28,987    2,503,897 

CVS Health Corp.

   31,621    1,990,226 

Medtronic PLC

   22,868    2,206,305 

Quest Diagnostics, Inc.

   17,247    2,191,576 

Stryker Corporation.

   12,760    2,466,508 
    

 

 

 
     14,095,690 
    

 

 

 

Technology Hardware & Equipment — 4.4%

 

Apple, Inc.

   25,155    10,691,881 

Palo Alto Networks, Inc. (a)

   11,443    2,928,493 
    

 

 

 
     13,620,374 
    

 

 

 

Banks — 2.9%

    

East West Bancorp, Inc.

   48,545    1,682,570 

First Republic Bank

   32,474    3,652,676 

KeyCorp

   161,925    1,944,719 

PNC Financial Services Group, Inc. (The)

   15,006    1,600,690 
    

 

 

 
     8,880,655 
    

 

 

 

Renewable Energy & Energy Efficiency — 2.4%

 

First Solar, Inc. (a)

   46,905    2,793,193 

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

   86,805    3,040,779 

Ormat Technologies, Inc.

   24,340    1,448,230 
    

 

 

 
     7,282,202 
    

 

 

 

Semiconductors — 2.3%

    

Analog Devices, Inc.

   24,092    2,766,966 

ASML Holding NV (b)

   8,209    2,903,688 

Xilinx, Inc.

   13,861    1,487,978 
    

 

 

 
     7,158,632 
    

 

 

 

Materials — 2.0%

    

Ball Corporation

   33,458    2,463,512 

Ingevity Corporation (a)

   43,897    2,567,097 

International Flavors & Fragrances, Inc.

   9,475    1,193,376 
    

 

 

 
     6,223,985 
    

 

 

 

Household & Personal Products — 1.8%

 

  

Procter & Gamble Company (The)

   17,374    2,278,079 

Unilever NV (b)

   56,418    3,330,354 
    

 

 

 
     5,608,433 
    

 

 

 
 

 

19


GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Real Estate — 1.8%

    

American Tower Corporation

   10,311   $2,695,193 

AvalonBay Communities, Inc.

   10,785    1,651,399 

Boston Properties, Inc.

   12,467    1,110,685 
    

 

 

 
     5,457,277 
    

 

 

 

Food & Staples Retailing — 1.6%

    

Costco Wholesale Corporation

   10,528    3,427,180 

Sysco Corporation

   30,845    1,630,158 
    

 

 

 
     5,057,338 
    

 

 

 

Insurance — 1.6%

    

Aflac, Inc.

   56,782    2,019,736 

Travelers Companies, Inc. (The)

   25,349    2,900,432 
    

 

 

 
     4,920,168 
    

 

 

 

Consumer Durables & Apparel — 1.4%

 

  

NIKE, Inc., Class B

   24,970    2,437,321 

VF Corporation

   29,891    1,804,221 
    

 

 

 
     4,241,542 
    

 

 

 

Transportation — 1.0%

    

J.B. Hunt Transport Services, Inc.

   9,336    1,208,078 

United Parcel Service, Inc., Class B

   14,085    2,010,775 
    

 

 

 
     3,218,853 
    

 

 

 

Telecommunication Services — 1.0%

 

  

Verizon Communications, Inc.

   55,645    3,198,475 
    

 

 

 

Utilities — 1.0%

    

American Water Works Company, Inc.

   21,296    3,136,262 
    

 

 

 

Diversified Financials — 1.0%

    

Bank of New York Mellon Corporation (The)

   48,207    1,728,221 

Charles Schwab Corporation (The)

   38,304    1,269,778 
    

 

 

 
     2,997,999 
    

 

 

 

Food & Beverage — 0.9%

    

McCormick & Company, Inc.

   14,991    2,921,746 
    

 

 

 

Consumer Services — 0.5%

    

Starbucks Corporation

   21,537    1,648,227 
    

 

 

 

Total Common Stocks
(Cost $121,936,517)

     194,870,326 
    

 

 

 
   PRINCIPAL
AMOUNT
   VALUE 

BONDS & NOTES — 30.7%

 

Green and Sustainability Bonds, Renewable Energy & Energy Efficiency — 16.3%

 

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

  $3,000,000   $3,181,617 

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

   1,000,000    1,134,409 

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

   1,000,000    1,082,321 

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

   2,000,000    2,026,836 

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

   3,500,000    4,237,520 

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

   650,000    676,598 

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

   2,000,000    2,144,100 

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

   2,000,000    2,123,668 

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

   2,000,000    2,185,332 

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

   500,000    549,094 

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

   2,000,000    2,162,154 

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

   500,000    547,958 

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

   2,000,000    2,004,966 

Korea Development Bank (The)
1.029% (3-Month USD Libor+72.5 basis points), due 7/6/22 (b)(e)

   1,250,000    1,256,146 

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

   1,000,000    1,024,096 

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

   2,000,000    2,179,454 

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

   1,000,000    1,099,268 
 

 

20


GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   PRINCIPAL
AMOUNT
   VALUE 

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

 

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

  $1,500,000   $1,535,101 

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

   2,000,000    2,111,400 

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

   2,000,000    2,171,160 

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

   3,000,000    3,270,267 

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

   2,000,000    2,008,680 

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

   710,796    796,149 

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

   229,355    260,331 

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

   216,156    251,912 

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

   1,420,800    1,601,877 

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

   3,000,000    3,346,020 

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

   3,000,000    3,622,053 
    

 

 

 
     50,590,487 
    

 

 

 

U.S. Government Agencies — 6.4%

 

  

Federal Farm Credit Banks Funding Corporation
1.625%, due 9/17/21

   3,000,000    3,049,623 

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

   500,000    541,236 
   PRINCIPAL
AMOUNT
   VALUE 

U.S. Government Agencies — (continued)

 

  

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

  $3,000,000   $3,218,688 

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

   3,000,000    3,456,825 

Federal Home Loan Banks
0.25%, due 6/3/22

   3,500,000    3,505,684 

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

   3,000,000    3,118,293 

Federal Home Loan Mortgage Corporation
0.45%, due 11/28/23 (c)

   3,000,000    3,003,399 
    

 

 

 
     19,893,748 
    

 

 

 

Community Development Financial Institutions — 2.9%

 

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

   2,000,000    2,056,572 

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

   3,000,000    3,089,742 

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

   2,000,000    2,201,926 

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

   1,400,000    1,482,555 
    

 

 

 
     8,830,795 
    

 

 

 

Software & Services — 2.4%

    

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

   3,500,000    3,924,007 

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

   3,000,000    3,565,800 
    

 

 

 
     7,489,807 
    

 

 

 

Diversified Financials — 1.0%

 

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

   1,000,000    1,033,987 

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

   2,000,000    2,148,470 
    

 

 

 
     3,182,457 
    

 

 

 
 

 

21


GREEN CENTURY BALANCED FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 concluded

 

  PRINCIPAL
AMOUNT
   VALUE 

Capital Goods — 0.8%

   

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

 $2,000,000   $2,329,556 
   

 

 

 

Real Estate — 0.4%

   

Healthpeak Properties Inc
3.875%, due 8/15/24 (c)

  1,000,000    1,110,489 
   

 

 

 

Media & Entertainment — 0.3%

 

  

Oracle Corporation
2.50%, due 5/15/22 (c)

  1,000,000    1,035,453 
   

 

 

 

Healthy Living — 0.2%

   

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

  500,000    590,524 
   

 

 

 

Total Bonds & Notes
(Cost $88,586,260)

    95,053,316 
   

 

 

 

SHORT-TERM INVESTMENTS — 6.3%

 

  

UMB Money Market Fiduciary Account, 0.01% (f)
(Cost $19,559,173)

    19,559,173 
   

 

 

 

Total Short-term Investments
(Cost $19,559,173)

    19,559,173 
   

 

 

 

TOTAL INVESTMENTS (g) — 99.9%

 

(Cost $230,081,950)

    309,482,815 

Other Assets Less Liabilities — 0.1%

    388,499 
   

 

 

 

NET ASSETS — 100.0%

   $309,871,314 
   

 

 

 

 

(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 are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $3,694,758.

(e)

Floating rate bond. Rate shown is currently in effect at July 31, 2020.

(f)

The rate quoted is the annualized seven-day yield of the fund at the period end.

(g)

The cost of investments for federal income tax purposes is $229,855,820 resulting in gross unrealized appreciation and depreciation of $83,276,052 and $3,649,057 respectively, or net unrealized appreciation of $79,626,995.

 

 

See Notes to Financial Statements

 

22


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 

 

COMMON STOCKS — 99.7%

    
   SHARES   VALUE 

Software & Services — 24.4%

 

Accenture PLC, Class A (a)

   15,592   $3,504,770 

Adobe, Inc. (b)

   11,840    5,260,749 

ANSYS, Inc. (b)

   2,107    654,434 

Autodesk, Inc. (b)

   5,408    1,278,613 

Automatic Data Processing, Inc.

   10,620    1,411,504 

Cadence Design Systems, Inc. (b)

   6,862    749,674 

Citrix Systems, Inc.

   2,866    409,150 

Cognizant Technology Solutions Corporation, Class A

   13,444    918,494 

Fortinet, Inc. (b)

   3,612    499,540 

International Business Machines Corporation

   21,809    2,681,198 

Intuit, Inc.

   6,402    1,961,381 

Mastercard, Inc., Class A

   21,977    6,780,564 

Microsoft Corporation

   177,506    36,390,505 

NortonLifeLock, Inc.

   14,067    301,737 

Oracle Corporation

   55,124    3,056,626 

Paycom Software, Inc. (b)

   1,234    350,913 

PayPal Holdings, Inc. (b)

   27,363    5,365,063 

salesforce.com, Inc. (b)

   20,690    4,031,447 

ServiceNow, Inc. (b)

   4,664    2,048,429 

Splunk, Inc. (b)

   3,821    801,722 

Teradata Corporation (b)

   2,680    56,280 

Visa, Inc., Class A

   41,901    7,977,950 

VMware, Inc., Class A (b)

   2,021    283,364 

Western Union Company (The)

   10,200    247,656 

Workday, Inc., Class A (b)

   4,110    743,581 
    

 

 

 
     87,765,344 
    

 

 

 

Media & Entertainment — 12.3%

 

Alphabet, Inc., Class A (b)

   7,366    10,960,240 

Alphabet, Inc., Class C (b)

   7,538    11,178,552 

Discovery, Inc., Class A (b)

   3,821    80,623 

Discovery, Inc., Class C (b)

   8,243    156,205 

Electronic Arts, Inc. (b)

   7,101    1,005,643 

Facebook, Inc., Class A (b)

   59,093    14,990,121 

John Wiley & Sons, Inc., Class A

   1,056    35,724 

Liberty Global PLC, Class A (a)(b)

   3,945    92,333 

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

   10,247    233,222 

New York Times Company (The), Class A

   3,477    160,429 

Omnicom Group, Inc.

   5,315    285,575 

Scholastic Corporation

   689    16,488 

Walt Disney Company (The)

   44,336    5,184,652 
    

 

 

 
     44,379,807 
    

 

 

 
   SHARES   VALUE 

Pharmaceuticals & Biotechnology — 7.2%

 

AbbVie, Inc.

   43,368   $4,116,057 

Agilent Technologies, Inc.

   7,661    737,984 

Amgen, Inc.

   14,482    3,543,311 

Biogen, Inc. (b)

   4,278    1,175,124 

BioMarin Pharmaceutical, Inc. (b)

   4,436    531,477 

Bio-Techne Corporation

   946    260,301 

Bristol-Myers Squibb Company

   55,508    3,256,099 

Gilead Sciences, Inc.

   31,066    2,160,019 

IQVIA Holdings, Inc. (b)

   4,755    753,145 

Jazz Pharmaceuticals PLC (a)(b)

   1,377    149,060 

Merck & Company, Inc.

   62,282    4,997,508 

Mettler-Toledo International, Inc. (b)

   593    554,455 

Vertex Pharmaceuticals, Inc. (b)

   6,371    1,732,912 

Waters Corporation (b)

   1,534    326,972 

Zoetis, Inc.

   11,670    1,770,106 
    

 

 

 
     26,064,530 
    

 

 

 

Semiconductors — 6.0%

 

Advanced Micro Devices, Inc. (b)

   28,761    2,226,964 

Analog Devices, Inc.

   9,045    1,038,818 

Applied Materials, Inc.

   22,573    1,452,121 

Intel Corporation

   105,031    5,013,130 

Lam Research Corporation

   3,575    1,348,347 

Microchip Technology, Inc.

   5,876    597,765 

NVIDIA Corporation

   15,030    6,381,588 

Skyworks Solutions, Inc.

   4,198    611,145 

Texas Instruments, Inc.

   22,929    2,924,594 
    

 

 

 
     21,594,472 
    

 

 

 

Capital Goods — 5.2%

 

3M Company

   14,127    2,125,690 

A.O. Smith Corporation

   3,343    160,932 

AGCO Corporation

   1,553    101,923 

Air Lease Corporation, Class A

   2,626    68,854 

Allegion PLC (a)

   2,282    226,968 

Applied Industrial Technologies, Inc.

   937    59,143 

Builders FirstSource, Inc. (b)

   2,894    68,559 

Caterpillar, Inc.

   13,531    1,797,999 

Cummins, Inc.

   3,681    711,390 

Deere & Company

   7,322    1,290,942 

Dover Corporation

   3,533    363,652 

Eaton Corporation PLC

   10,157    945,921 

EMCOR Group, Inc.

   1,380    94,530 

Fastenal Company

   14,163    666,227 
 

 

23


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Capital Goods — (continued)

 

Flowserve Corporation

   3,223   $89,825 

Fortive Corporation

   7,468    524,179 

Fortune Brands Home & Security, Inc.

   3,426    262,089 

Graco, Inc.

   4,167    221,851 

Granite Construction, Inc.

   1,102    18,690 

H&E Equipment Services, Inc.

   741    13,034 

HD Supply Holdings, Inc. (b)

   4,046    142,015 

Illinois Tool Works, Inc.

   7,838    1,449,952 

Lennox International, Inc.

   846    226,846 

Lincoln Electric Holdings, Inc.

   1,414    127,811 

Masco Corporation

   6,854    391,775 

Meritor, Inc. (b)

   1,757    39,972 

Middleby Corporation (The) (b)

   1,383    114,872 

Owens Corning

   2,664    161,092 

PACCAR, Inc.

   8,542    726,753 

Parker-Hannifin Corporation

   3,168    566,819 

Quanta Services, Inc.

   3,467    138,576 

Rockwell Automation, Inc.

   2,867    625,407 

Roper Technologies, Inc.

   2,609    1,128,262 

Sensata Technologies Holding NV (b)

   3,894    147,894 

Snap-on, Inc.

   1,286    187,589 

Spirit AeroSystems Holdings, Inc., Class A

   2,508    49,082 

Stanley Black & Decker, Inc.

   3,780    579,550 

Tennant Company

   408    27,181 

Timken Company (The)

   1,640    74,882 

Trane Technologies PLC (a)

   5,880    657,796 

United Rentals, Inc. (b)

   1,839    285,725 

W.W. Grainger, Inc.

   1,126    384,563 

Westinghouse Air Brake Technologies Corporation

   4,483    278,798 

Xylem, Inc.

   4,449    324,688 
    

 

 

 
     18,650,298 
    

 

 

 

Food & Beverage — 4.5%

 

Archer-Daniels-Midland Company

   13,691    586,386 

Bunge Ltd.

   3,456    150,129 

Campbell Soup Company

   4,469    221,528 

Coca-Cola Company (The)

   100,086    4,728,063 

Darling Ingredients, Inc. (b)

   4,034    112,670 

General Mills, Inc.

   14,826    938,041 

Hormel Foods Corporation

   7,254    368,938 

Ingredion, Inc.

   1,663    143,849 
   SHARES   VALUE 

Food & Beverage — (continued)

 

JM Smucker Company (The)

   2,815   $307,820 

Kellogg Company

   6,328    436,569 

Kraft Heinz Company (The)

   16,568    569,608 

Lamb Weston Holdings, Inc.

   3,590    215,687 

McCormick & Company, Inc.

   3,048    594,055 

Mondelez International, Inc., Class A

   35,231    1,954,968 

PepsiCo, Inc.

   34,122    4,697,235 
    

 

 

 
     16,025,546 
    

 

 

 

Diversified Financials — 4.3%

 

Ally Financial, Inc.

   9,292    186,769 

American Express Company

   16,896    1,576,735 

Ameriprise Financial, Inc.

   3,036    466,421 

Bank of New York Mellon Corporation (The)

   19,624    703,520 

BlackRock, Inc.

   3,741    2,151,112 

Charles Schwab Corporation (The)

   28,441    942,819 

CME Group, Inc.

   8,814    1,464,711 

E*TRADE Financial Corporation .

   5,459    277,153 

Equitable Holdings, Inc.

   10,287    210,472 

FactSet Research Systems, Inc.

   935    323,790 

Franklin Resources, Inc.

   7,300    153,665 

Intercontinental Exchange, Inc.

   13,600    1,316,208 

Invesco Ltd.

   9,345    93,824 

Legg Mason, Inc.

   2,111    105,529 

Moody’s Corporation

   4,143    1,165,426 

Northern Trust Corporation

   4,904    384,228 

S&P Global, Inc.

   5,995    2,099,749 

State Street Corporation

   8,743    557,716 

T. Rowe Price Group, Inc.

   5,818  �� 803,466 

TD Ameritrade Holding Corporation

   6,621    237,628 

Voya Financial, Inc.

   3,292    162,625 
    

 

 

 
     15,383,566 
    

 

 

 

Healthcare Equipment & Services — 4.2%

 

ABIOMED, Inc. (b)

   1,112    333,533 

Align Technology, Inc. (b)

   1,847    542,686 

AmerisourceBergen Corporation

   3,808    381,524 

Becton, Dickinson and Company

   6,663    1,874,568 

Cardinal Health, Inc.

   7,192    392,827 

Centene Corporation (b)

   14,382    938,425 

Cerner Corporation

   7,699    534,696 

Cigna Corporation

   9,163    1,582,358 

Cooper Cos., Inc. (The)

   1,214    343,477 
 

 

24


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Healthcare Equipment & Services — (continued)

 

DaVita, Inc. (b)

   2,170   $189,636 

DENTSPLY SIRONA, Inc.

   5,468    243,873 

Edwards Lifesciences Corporation (b)

   15,417    1,208,847 

HCA Healthcare, Inc.

   6,634    840,130 

Henry Schein, Inc. (b)

   3,544    243,579 

Hologic, Inc. (b)

   6,497    453,361 

Humana, Inc.

   3,246    1,273,893 

IDEXX Laboratories, Inc. (b)

   2,093    832,491 

Laboratory Corporation of America Holdings (b)

   2,397    462,429 

MEDNAX, Inc. (b)

   2,055    41,059 

Patterson Companies, Inc.

   2,046    54,342 

Quest Diagnostics, Inc.

   3,291    418,187 

ResMed, Inc.

   3,566    722,151 

Select Medical Holdings Corporation (b)

   2,676    50,951 

Teladoc Health, Inc. (b)

   1,735    412,288 

Varian Medical Systems, Inc. (b)

   2,239    319,550 

West Pharmaceutical Services, Inc.

   1,821    489,612 
    

 

 

 
     15,180,473 
    

 

 

 

Retailing — 4.0%

 

AutoNation, Inc. (b)

   1,456    74,751 

Best Buy Company, Inc.

   5,747    572,344 

Booking Holdings, Inc. (b)

   1,008    1,675,427 

Buckle, Inc. (The)

   756    12,119 

CarMax, Inc. (b)

   4,039    391,662 

Foot Locker, Inc.

   2,580    75,826 

GameStop Corporation, Class A (b)

   1,429    5,730 

Gap, Inc. (The)

   5,453    72,907 

Home Depot, Inc. (The)

   26,791    7,112,743 

Kohl’s Corporation

   3,886    73,989 

LKQ Corporation (b)

   7,224    203,645 

Lowe’s Companies, Inc.

   18,816    2,801,890 

Nordstrom, Inc.

   2,587    35,416 

ODP Corporation (The)

   1,322    29,176 

Pool Corporation

   988    312,900 

Signet Jewelers Ltd.

   1,194    12,824 

Tiffany & Company

   2,673    335,087 

Tractor Supply Company

   2,894    413,089 

Ulta Beauty, Inc. (b)

   1,340    258,607 
    

 

 

 
     14,470,132 
    

 

 

 
   SHARES   VALUE 

Household & Personal Products — 3.5%

 

Clorox Company (The)

   3,076   $727,505 

Colgate-Palmolive Company

   19,956    1,540,603 

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

   5,460    1,078,568 

Kimberly-Clark Corporation

   8,395    1,276,376 

Procter & Gamble Company (The)

   60,651    7,952,559 
    

 

 

 
     12,575,611 
    

 

 

 

Real Estate — 3.4%

 

American Tower Corporation

   10,873    2,842,093 

AvalonBay Communities, Inc.

   3,452    528,570 

Boston Properties, Inc.

   3,601    320,813 

CBRE Group, Inc., Class A (b)

   8,202    359,330 

Corporate Office Properties Trust

   2,679    70,940 

Digital Realty Trust, Inc.

   6,439    1,033,717 

Duke Realty Corporation

   9,089    365,287 

Equinix, Inc.

   2,101    1,650,294 

Equity Residential

   9,128    489,535 

Federal Realty Investment Trust

   1,786    136,272 

Healthpeak Properties, Inc.

   12,405    338,532 

Host Hotels & Resorts, Inc.

   17,446    188,068 

Iron Mountain, Inc.

   7,026    198,063 

Jones Lang LaSalle, Inc.

   1,250    123,638 

Macerich Company (The)

   2,842    21,684 

PotlatchDeltic Corporation

   1,610    68,924 

Prologis, Inc.

   18,174    1,915,903 

Realogy Holdings Corporation

   2,621    23,746 

SBA Communications Corporation, Class A

   2,743    854,554 

Simon Property Group, Inc.

   7,574    472,239 

UDR, Inc.

   7,250    262,450 

Vornado Realty Trust

   3,952    136,423 
    

 

 

 
     12,401,075 
    

 

 

 

Materials — 3.2%

 

Air Products & Chemicals, Inc.

   5,424    1,554,681 

Albemarle Corporation

   2,601    214,478 

Amcor PLC (a)

   39,594    407,818 

Avery Dennison Corporation

   2,042    231,440 

Axalta Coating Systems Ltd. (b)

   5,151    114,352 

Ball Corporation

   7,993    588,525 

Compass Minerals International, Inc.

   813    41,414 

Domtar Corporation

   1,420    29,806 

Ecolab, Inc.

   6,269    1,172,805 

H.B. Fuller Company

   1,275    57,809 
 

 

25


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Materials — (continued)

 

International Flavors & Fragrances, Inc.

   2,108   $265,503 

Linde PLC (a)

   13,099    3,210,696 

Minerals Technologies, Inc.

   830    38,910 

Mosaic Company (The)

   8,759    117,984 

Newmont Corporation

   19,832    1,372,374 

PPG Industries, Inc.

   5,786    622,863 

Schnitzer Steel Industries, Inc., Class A

   746    13,726 

Sealed Air Corporation

   3,773    134,621 

Sherwin-Williams Company (The)

   2,039    1,321,109 

Sonoco Products Company

   2,439    126,194 
    

 

 

 
     11,637,108 
    

 

 

 

Technology Hardware & Equipment — 2.7%

 

Cisco Systems, Inc.

   104,140    4,904,994 

Cognex Corporation

   4,251    284,264 

CommScope Holding Company, Inc. (b)

   4,613    42,809 

Corning, Inc.

   18,690    579,390 

Dell Technologies, Inc., Class C (b)

   5,966    356,946 

F5 Networks, Inc. (b)

   1,500    203,850 

Flex Ltd. (b)

   12,406    142,545 

Hewlett Packard Enterprise Company

   31,994    315,781 

HP, Inc.

   35,352    621,488 

Keysight Technologies, Inc. (b)

   4,631    462,591 

Motorola Solutions, Inc.

   4,204    587,719 

Plantronics, Inc.

   821    16,412 

TE Connectivity Ltd. (a)

   8,200    730,374 

Trimble, Inc. (b)

   6,144    273,469 

Xerox Corporation

   4,490    74,758 
    

 

 

 
     9,597,390 
    

 

 

 

Insurance — 2.3%

 

Allstate Corporation (The)

   7,812    737,375 

Arthur J. Gallagher & Company

   4,626    497,249 

Chubb Ltd. (a)

   11,110    1,413,636 

Hartford Financial Services Group, Inc. (The)

   8,844    374,278 

Lincoln National Corporation

   4,832    180,089 

Loews Corporation

   6,406    233,242 

Marsh & McLennan Companies, Inc.

   12,381    1,443,624 

Principal Financial Group, Inc.

   6,794    288,269 

Progressive Corporation (The)

   14,355    1,296,831 
   SHARES   VALUE 

Insurance — (continued)

 

Prudential Financial, Inc.

   9,749   $617,794 

Travelers Companies, Inc. (The)

   6,259    716,155 

Willis Towers Watson PLC (a)

   3,172    666,152 
    

 

 

 
     8,464,694 
    

 

 

 

Transportation — 2.3%

 

AMERCO

   244    77,526 

ArcBest Corporation

   536    16,289 

Avis Budget Group, Inc. (b)

   1,356    35,120 

C.H. Robinson Worldwide, Inc.

   3,331    312,181 

CSX Corporation

   19,035    1,357,957 

Delta Air Lines, Inc.

   3,910    97,633 

Echo Global Logistics, Inc. (b)

   579    14,513 

Expeditors International of Washington, Inc.

   4,193    354,350 

Hertz Global Holdings, Inc. (b)

   0    0 

Kansas City Southern

   2,375    408,144 

Ryder System, Inc.

   1,311    48,022 

Southwest Airlines Company

   3,512    108,486 

Union Pacific Corporation

   16,946    2,937,589 

United Parcel Service, Inc., Class B

   17,270    2,465,465 
    

 

 

 
     8,233,275 
    

 

 

 

Consumer Services — 2.2%

 

Aramark

   5,623    118,758 

Choice Hotels International, Inc.

   893    75,048 

Darden Restaurants, Inc.

   3,167    240,375 

Domino’s Pizza, Inc.

   953    368,439 

Hilton Worldwide Holdings, Inc.

   6,848    513,942 

Jack in the Box, Inc.

   523    42,944 

Marriott International, Inc., Class A

   6,763    566,909 

McDonald’s Corporation

   18,303    3,555,907 

Royal Caribbean Cruises Ltd.

   4,378    213,252 

Starbucks Corporation

   28,806    2,204,523 

Vail Resorts, Inc.

   990    190,110 
    

 

 

 
     8,090,207 
    

 

 

 

Renewable Energy & Energy Efficiency — 1.7%

 

Acuity Brands, Inc.

   955    94,640 

Itron, Inc. (b)

   946    65,804 

Johnson Controls International, PLC

   18,707    719,845 

Ormat Technologies, Inc.

   1,007    59,917 

Tesla, Inc. (b)

   3,622    5,182,213 
    

 

 

 
     6,122,419 
    

 

 

 
 

 

26


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Telecommunication Services — 1.7%

 

CenturyLink, Inc.

   22,906   $221,043 

Verizon Communications, Inc.

   101,569    5,838,186 
    

 

 

 
     6,059,229 
    

 

 

 

Consumer Durables & Apparel — 1.5%

 

Callaway Golf Company

   2,170    41,338 

Capri Holdings Ltd. (a)(b)

   3,433    51,426 

Columbia Sportswear Company

   761    57,714 

Deckers Outdoor Corporation (b)

   693    145,010 

Ethan Allen Interiors, Inc.

   540    6,394 

Garmin Ltd. (a)

   3,534    348,417 

Hanesbrands, Inc.

   8,871    125,347 

Hasbro, Inc.

   3,209    233,487 

La-Z-Boy, Inc.

   1,083    30,822 

Mattel, Inc. (b)

   8,341    92,668 

Meritage Homes Corporation (b)

   915    90,750 

Mohawk Industries, Inc. (b)

   1,484    118,497 

Newell Brands, Inc.

   9,770    160,228 

NIKE, Inc., Class B

   30,499    2,977,007 

PVH Corporation

   1,763    85,788 

Under Armour, Inc., Class A (b)

   4,726    49,718 

Under Armour, Inc., Class C (b)

   4,577    43,436 

VF Corporation

   8,280    499,781 

Whirlpool Corporation

   1,555    253,652 

Wolverine World Wide, Inc.

   1,989    47,816 
    

 

 

 
     5,459,296 
    

 

 

 

Banks — 1.5%

 

Bank of Hawaii Corporation

   987    55,894 

Cathay General Bancorp

   1,817    43,935 

CIT Group, Inc.

   2,343    44,447 

Citizens Financial Group, Inc.

   10,455    259,388 

Comerica, Inc.

   3,437    132,393 

First Republic Bank

   4,216    474,216 

Heartland Financial USA, Inc.

   754    23,555 

International Bancshares Corporation

   1,323    40,246 

KeyCorp.

   23,776    285,550 

M&T Bank Corporation

   3,224    341,583 

New York Community Bancorp, Inc.

   11,307    119,063 

Old National Bancorp

   4,301    60,171 

People’s United Financial, Inc.

   10,830    116,856 

PNC Financial Services Group, Inc. (The)

   10,646    1,135,609 

Regions Financial Corporation

   23,431    254,461 

Signature Bank

   1,320    135,339 
   SHARES   VALUE 

Banks — (continued)

 

SVB Financial Group (b)

   1,272   $285,271 

Truist Financial Corporation

   33,005    1,236,367 

Umpqua Holdings Corporation

   5,329    57,819 

Zions Bancorp NA

   4,015    130,367 
    

 

 

 
     5,232,530 
    

 

 

 

Commercial & Professional Services — 0.7%

 

ACCO Brands Corporation

   2,208    14,396 

ASGN, Inc. (b)

   1,287    88,108 

Copart, Inc. (b)

   5,189    483,874 

Deluxe Corporation

   1,015    28,653 

Exponent, Inc.

   1,251    105,159 

Heidrick & Struggles International, Inc.

   506    10,236 

HNI Corporation

   1,054    31,304 

ICF International, Inc.

   434    29,343 

IHS Markit, Ltd. (a)

   9,304    751,112 

Interface, Inc.

   1,437    11,467 

Kelly Services, Inc., Class A

   787    11,656 

Knoll, Inc.

   1,272    14,895 

ManpowerGroup, Inc.

   1,434    98,645 

Resources Connection, Inc.

   605    6,837 

Robert Half International, Inc.

   2,837    144,318 

Steelcase, Inc., Class A

   2,218    23,799 

Tetra Tech, Inc.

   1,327    117,639 

TransUnion

   4,665    417,844 

TrueBlue, Inc. (b)

   978    15,091 
    

 

 

 
     2,404,376 
    

 

 

 

Food & Staples Retailing — 0.4%

 

Kroger Co. (The)

   19,738    686,685 

Sysco Corporation

   11,913    629,602 
    

 

 

 
     1,316,287 
    

 

 

 

Utilities — 0.3%

 

American Water Works Company, Inc.

   4,457    656,382 

Essential Utilities, Inc.

   5,500    249,425 
    

 

 

 
     905,807 
    

 

 

 

Automobiles & Components — 0.2%

 

Aptiv PLC (a)

   6,260    486,715 

Autoliv, Inc. (a)

   2,027    131,816 

BorgWarner, Inc.

   5,048    184,757 

Harley-Davidson, Inc.

   3,765    98,003 
    

 

 

 
     901,291 
    

 

 

 
 

 

27


GREEN CENTURY EQUITY FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 concluded

 

  SHARES   VALUE 

Healthy Living — 0.0%

 

Hain Celestial Group, Inc. (The) (b)

  2,066   $70,203 

United Natural Foods, Inc. (b)

  1,229    24,395 
   

 

 

 
    94,598 
   

 

 

 

Total Common Stocks
(Cost $201,748,166)

    359,009,361 
   

 

 

 

SHORT-TERM INVESTMENTS — 0.3%

 

UMB Money Market Fiduciary Account, 0.01% (c)
(Cost $873,614)

    873,614 
   

 

 

 

Total Short-term Investments
(Cost $873,614)

    873,614 
   

 

 

 

TOTAL INVESTMENTS (d) — 100.0%

 

  

(Cost $202,621,780)

    359,882,975 

Other Assets Less Liabilities — 0.0%

    102,109 
   

 

 

 

NET ASSETS — 100.0%

   $359,985,084 
   

 

 

 

 

(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 $207,255,706 resulting in gross unrealized appreciation and depreciation of $162,055,505 and $9,428,236 respectively, or net unrealized appreciation of $152,627,269.

 

 

See Notes to Financial Statements

 

28


GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 

 

COMMON STOCKS — 98.6%

    
   SHARES   VALUE 

Japan — 23.5%

    

Aeon Company, Ltd.

   15,400   $364,111 

Ajinomoto Company, Inc.

   11,000    198,656 

Asahi Kasei Corporation

   29,700    213,636 

Astellas Pharma, Inc.

   44,600    695,669 

Benesse Holdings, Inc.

   1,700    44,336 

Daifuku Co., Ltd.

   2,400    218,703 

Dai-ichi Life Holdings, Inc.

   25,500    300,808 

Daiichi Sankyo Company Ltd.

   13,600    1,203,417 

Daikin Industries Ltd.

   5,900    1,038,084 

Daiwa House Industry Company, Ltd.

   13,400    295,701 

Denso Corporation

   10,300    381,024 

Eisai Company, Ltd.

   6,000    484,239 

Fujitsu Ltd.

   4,700    629,307 

Hankyu Hanshin Holdings, Inc .

   5,500    157,521 

Hitachi Metals Ltd.

   5,200    67,877 

Honda Motor Company, Ltd.

   38,900    948,377 

Kansai Paint Company Ltd.

   4,400    84,326 

Kao Corp.

   11,500    834,256 

KDDI Corp.

   39,300    1,249,640 

Keio Corporation

   2,400    119,841 

Kikkoman Corporation

   3,400    159,569 

Kobe Bussan Company Ltd.

   1,500    93,095 

Komatsu Ltd.

   21,000    412,585 

Kyushu Railway Company

   3,500    69,142 

Mitsui Chemicals, Inc.

   4,400    83,739 

Miura Company Ltd.

   2,100    79,849 

MS&AD Insurance Group Holdings, Inc.

   10,600    266,357 

Murata Manufacturing Company, Ltd.

   13,700    879,960 

NGK Insulators Ltd.

   6,300    78,296 

Nikon Corporation

   7,400    51,737 

Nippon Express Company, Ltd.

   1,700    80,817 

Nippon Paint Holdings Company Ltd.

   3,500    239,334 

Nippon Yusen KK

   4,100    53,349 

Nitto Denko Corporation

   3,700    209,718 

Nomura Real Estate Master Fund, Inc.

   102    126,497 

Nomura Research Institute Ltd.

   7,600    200,590 

NTT DOCOMO, Inc.

   27,800    765,365 

Odakyu Electric Railway Company Ltd.

   7,200    150,674 

Omron Corporation

   4,400    316,931 
   SHARES   VALUE 

Japan — (continued)

    

Panasonic Corporation

   52,800   $457,321 

Rakuten, Inc.

   20,300    186,543 

Resona Holdings, Inc.

   49,400    161,947 

SCSK Corporation

   1,300    66,165 

Sekisui Chemical Company, Ltd.

   8,500    115,704 

Sekisui House Ltd.

   14,600    266,651 

SG Holdings Company Ltd.

   3,800    139,455 

Shimizu Corporation

   12,800    91,758 

Shionogi & Company Ltd.

   6,400    380,742 

Sompo Holdings, Inc.

   7,900    260,338 

Sony Corporation

   30,400    2,361,929 

Stanley Electric Company Ltd.

   3,100    74,260 

Sumitomo Chemical Company, Ltd.

   35,700    103,017 

Sumitomo Metal Mining Company, Ltd.

   5,500    165,328 

Sumitomo Mitsui Trust Holdings, Inc.

   8,200    210,528 

Suntory Beverage & Food Ltd.

   3,300    124,563 

Sysmex Corporation

   3,900    299,897 

Teijin Ltd.

   4,200    60,655 

Tokyo Century Corporation

   1,000    56,245 

Tokyo Electron Ltd.

   3,600    996,182 

Tokyu Corp.

   12,100    134,661 

Toray Industries, Inc.

   32,600    141,111 

West Japan Railway Company

   3,900    168,421 

Yamaha Corporation

   3,200    147,541 

Yaskawa Electric Corporation

   5,700    189,510 

Yokogawa Electric Corporation

 �� 5,400    82,945 
    

 

 

 
     21,290,550 
    

 

 

 

Germany — 14.3%

    

adidas AG (a)

   4,525    1,247,939 

Allianz SE

   9,946    2,063,618 

Beiersdorf AG

   2,382    284,435 

Deutsche Boerse AG

   4,505    819,688 

Henkel AG & Company KGaA

   2,544    221,059 

Henkel AG & Company KGaA (b)

   4,197    412,685 

Merck KGaA

   3,038    388,289 

METRO AG.

   4,286    39,104 

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

   3,439    911,622 

SAP SE

   24,875    3,926,751 

Sartorius AG (b)

   842    323,982 

Siemens AG

   18,204    2,319,935 
    

 

 

 
     12,959,107 
    

 

 

 
 

 

29


GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Switzerland — 8.9%

    

Alcon, Inc. (a)

   11,749   $710,063 

Coca-Cola HBC AG (a)

   4,731    123,172 

Givaudan SA

   218    902,846 

Kuehne + Nagel International AG (a)

   1,306    225,125 

Lonza Group AG

   1,771    1,107,409 

Roche Holding AG

   11,115    3,849,543 

Sonova Holding AG (a)

   1,317    297,763 

Swiss Re AG

   7,055    556,674 

Swisscom AG

   626    332,742 
    

 

 

 
     8,105,337 
    

 

 

 

France — 8.5%

    

Accor SA (a)

   4,486    112,928 

Amundi SA (a)(c)

   1,423    108,269 

AXA SA

   46,125    925,472 

Carrefour SA

   14,325    227,675 

Casino Guichard Perrachon SA (a)

   1,145    31,740 

Cie Generale des Etablissements Michelin SCA

   4,004    414,695 

CNP Assurances (a)

   4,135    50,225 

Danone SA

   14,699    983,889 

Gecina SA

   1,117    144,905 

Getlink SE (a)

   10,673    160,587 

JCDecaux SA (a)

   2,285    38,653 

L’Oreal SA

   5,993    2,011,495 

Natixis SA (a)

   22,459    54,937 

Orange SA.

   47,659    558,625 

Schneider Electric SE

   13,159    1,508,915 

SEB SA

   542    89,499 

Unibail-Rodamco-Westfield

   3,277    171,900 

Valeo SA

   5,607    143,894 
    

 

 

 
     7,738,303 
    

 

 

 

Canada — 7.4%

    

Agnico Eagle Mines Ltd.

   5,751    456,688 

Bank of Montreal

   15,242    833,844 

Bank of Nova Scotia (The)

   28,796    1,182,581 

Canadian National Railway Company

   17,006    1,661,116 

Canadian Tire Corp. Ltd., Class A

   1,374    126,670 

CGI, Inc. (a)

   5,684    405,964 

Cronos Group, Inc. (a)

   4,304    28,211 

First Capital Real Estate Investment Trust

   2,206    22,365 

Gildan Activewear, Inc.

   4,549    80,724 
   SHARES   VALUE 

Canada — (continued)

    

Intact Financial Corporation

   3,455   $377,200 

Magna International, Inc.

   6,886    318,262 

Metro, Inc.

   6,136    269,169 

Open Text Corporation

   6,406    288,330 

Ritchie Bros Auctioneers, Inc.

   2,603    120,346 

Rogers Communications, Inc., Class B

   8,448    344,984 

WSP Global, Inc.

   2,669    167,592 
    

 

 

 
     6,684,046 
    

 

 

 

United Kingdom — 6.9%

    

Associated British Foods PLC

   8,437    193,254 

Barratt Developments PLC

   24,004    159,459 

Berkeley Group Holdings PLC

   2,987    173,318 

British Land Company PLC (The)

   21,081    100,606 

Burberry Group PLC

   9,665    157,488 

Coca-Cola European Partners PLC

   4,838    199,180 

Compass Group PLC

   42,656    586,943 

Croda International PLC

   3,124    233,170 

InterContinental Hotels Group PLC

   4,049    186,512 

ITV PLC.

   92,518    68,223 

J Sainsbury PLC

   41,948    102,248 

JD Sports Fashion PLC

   10,447    82,591 

Johnson Matthey PLC

   4,510    131,702 

Kingfisher PLC

   49,766    157,272 

Mondi PLC

   11,580    205,125 

RELX PLC

   46,037    969,230 

Schroders PLC

   2,953    114,054 

Segro PLC

   27,886    353,173 

Taylor Wimpey PLC

   86,278    133,093 

Unilever PLC

   27,910    1,661,991 

Whitbread PLC (a)

   4,709    133,714 

Wm Morrison Supermarkets PLC

   55,767    135,282 
    

 

 

 
     6,237,628 
    

 

 

 

Netherlands — 5.7%

    

Akzo Nobel NV

   4,770    449,468 

ASML Holding NV

   10,134    3,603,157 

Koninklijke DSM NV

   4,087    625,604 

Wolters Kluwer NV

   6,540    515,095 
    

 

 

 
     5,193,324 
    

 

 

 

Denmark — 5.0%

    

Coloplast A/S, Class B

   2,850    486,487 

GN Store Nord A/S

   3,041    187,006 

H Lundbeck A/S

   1,784    65,045 
 

 

30


GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 continued

 

   SHARES   VALUE 

Denmark — (continued)

    

Novo Nordisk A/S, Class B

   42,127   $2,764,062 

Novozymes A/S

   5,088    304,361 

Pandora A/S

   2,347    149,272 

Vestas Wind Systems A/S

   4,731    606,443 
    

 

 

 
     4,562,676 
    

 

 

 

Australia — 4.9%

    

ASX Ltd.

   4,568    269,145 

BlueScope Steel Ltd.

   12,037    96,263 

Brambles Ltd.

   37,214    287,316 

Coca-Cola Amatil Ltd.

   11,454    66,850 

Cochlear Ltd.

   1,528    208,513 

Coles Group Ltd.

   31,405    407,150 

Dexus

   26,025    157,980 

Evolution Mining Ltd.

   38,707    165,353 

Goodman Group

   39,440    479,527 

GPT Group (The)

   45,405    125,646 

Insurance Australia Group Ltd.

   54,678    199,059 

Lendlease Group

   15,694    127,490 

Mirvac Group

   97,822    145,569 

Newcrest Mining Ltd.

   19,059    485,535 

Ramsay Health Care Ltd.

   4,256    188,109 

SEEK Ltd.

   8,075    124,196 

Stockland

   55,882    126,296 

Sydney Airport

   25,620    95,955 

Transurban Group

   65,544    648,318 
    

 

 

 
     4,404,270 
    

 

 

 

Sweden — 2.5%

    

Boliden AB

   6,452    176,192 

Electrolux AB

   5,369    100,903 

Essity AB, Class B (a)

   14,335    472,975 

Husqvarna AB B Shares

   10,024    95,930 

ICA Gruppen AB

   2,360    115,931 

Skandinaviska Enskilda Banken AB, Class A (a)

   38,626    373,710 

Svenska Cellulosa AB SCA, Class B (a)

   14,795    179,683 

Svenska Handelsbanken AB A Shares (a)

   37,391    352,615 

Tele2 AB B Shares

   11,803    167,453 

Telia Company AB

   59,253    230,893 
    

 

 

 
     2,266,285 
    

 

 

 

Hong Kong — 2.4%

    

BOC Hong Kong Holdings Ltd.

   88,500    246,743 
   SHARES   VALUE 

Hong Kong — (continued)

    

Hang Seng Bank Ltd.

   18,117   $285,063 

Hong Kong Exchanges & Clearing Ltd.

   28,520    1,357,927 

MTR Corporation Ltd.

   38,167    189,676 

Swire Pacific Ltd. A Shares

   11,500    56,628 

Swire Properties Ltd.

   26,400    61,010 
    

 

 

 
     2,197,047 
    

 

 

 

Ireland — 1.5%

    

CRH PLC (d)

   51    1,842 

CRH PLC (e)

   18,571    676,169 

DCC PLC

   2,318    206,129 

Kerry Group PLC, Class A

   3,757    497,621 
    

 

 

 
     1,381,761 
    

 

 

 

Spain — 1.3%

    

Banco Bilbao Vizcaya Argentaria SA

   158,668    494,059 

Ferrovial SA

   141    3,453 

Industria de Diseno Textil SA

   26,066    690,720 
    

 

 

 
     1,188,232 
    

 

 

 

Singapore — 1.0%

    

CapitaLand Ltd.

   62,100    125,334 

City Developments Ltd.

   10,600    63,480 

DBS Group Holdings Ltd.

   42,549    614,647 

Singapore Exchange Ltd.

   19,000    113,342 
    

 

 

 
     916,803 
    

 

 

 

Finland — 0.9%

    

Elisa Oyj

   3,329    197,446 

Metso Outotec Oyj

   1    3 

Neles Oyj

   2,385    34,014 

Orion Oyj, Class B

   2,506    109,338 

UPM-Kymmene OYJ

   12,723    339,636 

Wartsila OYJ Abp

   10,128    84,713 
    

 

 

 
     765,150 
    

 

 

 

Italy — 0.8%

    

Intesa Sanpaolo SpA (a)

   352,953    719,460 

Pirelli & C SpA (a)(c)

   9,020    35,723 
    

 

 

 
     755,183 
    

 

 

 

Jersey — 0.8%

    

Ferguson PLC

   5,392    475,349 

WPP PLC.

   29,924    221,937 
    

 

 

 
     697,286 
    

 

 

 
 

 

31


GREEN CENTURY MSCI INTERNATIONAL INDEX FUND PORTFOLIO OF INVESTMENTS

July 31, 2020

 concluded

 

   SHARES   VALUE 

New Zealand — 0.7%

    

Auckland International Airport Ltd.

   29,015   $123,690 

Fisher & Paykel Healthcare Corporation Ltd.

   13,581    325,333 

Meridian Energy Ltd.

   30,365    98,591 

Ryman Healthcare Ltd.

   10,116    89,792 
    

 

 

 
     637,406 
    

 

 

 

Norway — 0.7%

    

Mowi ASA

   10,670    193,779 

Orkla ASA

   17,775    174,831 

Telenor ASA

   17,138    264,931 
    

 

 

 
     633,541 
    

 

 

 

Belgium — 0.6%

    

KBC Group NV

   5,870    334,698 

Umicore SA

   4,652    219,709 
    

 

 

 
     554,407 
    

 

 

 

Austria — 0.2%

    

Erste Group Bank AG (a)

   6,638    148,586 
    

 

 

 

Portugal — 0.1%

    

Jeronimo Martins SGPS SA

   5,876    98,522 
    

 

 

 

Total Common Stocks
(Cost $81,762,305)

     89,415,450 
    

 

 

 

SHORT-TERM INVESTMENTS — 0.6%

 

       VALUE 

UMB Money Market Fiduciary Account, 0.01% (f)
(Cost $522,761)

    $522,761 
    

 

 

 

Total Short-term Investments
(Cost $522,761)

     522,761 
    

 

 

 

TOTAL INVESTMENTS (g) — 99.2%

 

(Cost $82,285,066)

     89,938,211 

Other Assets Less Liabilities — 0.8%

     742,203 
    

 

 

 

NET ASSETS — 100.0%

    $90,680,414 
    

 

 

 

 

(a)

Non-income producing security.

(b)

Preference shares.

(c)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $143,992.

(d)

Shares of this security are traded on the London Stock Exchange.

(e)

Shares of this security are traded on the Irish Stock Exchange.

(f)

The rate quoted is the annualized seven-day yield of the fund at the period end.

(g)

The cost of investments for federal income tax purposes is $83,570,661 resulting in gross unrealized appreciation and depreciation of $13,967,030 and $7,599,480 respectively, or net unrealized appreciation of $6,367,550.

 

 

See Notes to Financial Statements

 

32


GREEN CENTURY FUNDS STATEMENTS OF ASSETS AND LIABILITIES

July 31, 2020

 

 

   BALANCED FUND   EQUITY FUND   MSCI INTERNATIONAL
INDEX FUND
 

ASSETS:

      

Investments, at value (cost $230,081,950, $202,621,780 and $82,285,066, respectively)

  $309,482,815   $359,882,975   $89,938,211 

Foreign cash, at value (cost $353,996)

   —      —      359,267 
Receivables for:      

Capital stock sold

   203,850    249,525    220,753 

Interest

   638,137    5    7 

Dividends

   134,702    345,050    267,184 
  

 

 

   

 

 

   

 

 

 

Total assets

   310,459,504    360,477,555    90,785,422 
  

 

 

   

 

 

   

 

 

 

LIABILITIES:

      

Payable for investment securities purchased

   —      —      4,575 

Payable for capital stock repurchased

   209,043    139,323    19,374 

Accrued expenses

   379,147    353,148    81,059 
  

 

 

   

 

 

   

 

 

 

Total liabilities

   588,190    492,471    105,008 
  

 

 

   

 

 

   

 

 

 

NET ASSETS

  $309,871,314   $359,985,084   $90,680,414 
  

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF:

      

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

  $221,839,807   $205,062,357   $85,814,345 

Net distributable earnings

   88,031,507    154,922,727    4,866,069 
  

 

 

   

 

 

   

 

 

 

NET ASSETS

  $309,871,314   $359,985,084   $90,680,414 
  

 

 

   

 

 

   

 

 

 

NET ASSET VALUE PER SHARE PER CLASS:

      
Individual Investor Class Shares:      

Net assets applicable to shares outstanding

  $309,871,314   $265,946,045   $29,072,581 

Shares of beneficial interest issued and outstanding

   10,051,601    5,092,120    2,490,047 

Net asset value per share

  $30.83   $52.23   $11.68 
  

 

 

   

 

 

   

 

 

 
Institutional Class Shares:      

Net assets applicable to shares outstanding

  $—     $94,039,039   $61,607,833 

Shares of beneficial interest issued and outstanding

   —      1,804,900    5,284,449 

Net asset value per share

  $—     $52.10   $11.66 
  

 

 

   

 

 

   

 

 

 

 

See Notes to Financial Statements

 

33


GREEN CENTURY FUNDS STATEMENTS OF OPERATIONS

For the year ended July 31, 2020

 

 

   BALANCED FUND   EQUITY FUND   MSCI INTERNATIONAL
INDEX FUND
 

INVESTMENT INCOME:

      

Interest income

  $2,368,632   $1,431   $678 

Dividend and other income (net of $18,521, $0 and $201,388 foreign withholding taxes, respectively)

   2,870,447    5,639,648    1,660,080 
  

 

 

   

 

 

   

 

 

 

Total investment income

   5,239,079    5,641,079    1,660,758 
  

 

 

   

 

 

   

 

 

 

EXPENSES:

      

Administrative services fee.

   2,363,082    3,041,215    588,748 

Investment advisory fee

   1,833,251    730,796    205,703 
  

 

 

   

 

 

   

 

 

 

Total expenses

   4,196,333    3,772,011    794,451 
  

 

 

   

 

 

   

 

 

 

NET INVESTMENT INCOME

   1,042,746    1,869,068    866,307 
  

 

 

   

 

 

   

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS):

      
Net realized gain (loss) on:      

Investments

   8,447,551    2,131,393    (1,788,052

Foreign currency transactions

   —      —      (23,108
Change in net unrealized appreciation on:      

Investments

   13,349,692    40,698,197    5,760,867 

Foreign currency translations

   —      —      23,007 
  

 

 

   

 

 

   

 

 

 

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS

   21,797,243    42,829,590    3,972,714 
  

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $22,839,989   $44,698,658   $4,839,021 
  

 

 

   

 

 

   

 

 

 

 

See Notes to Financial Statements

 

34


GREEN CENTURY FUNDS STATEMENTS OF CHANGES IN NET ASSETS

 

  BALANCED FUND  EQUITY FUND  MSCI INTERNATIONAL
INDEX FUND
 
  FOR THE
YEAR ENDED
JULY 31, 2020
  FOR THE
YEAR ENDED
JULY 31, 2019
  FOR THE
YEAR ENDED
JULY 31, 2020
  FOR THE
YEAR ENDED
JULY 31, 2019
  FOR THE
YEAR ENDED
JULY 31, 2020
  FOR THE
YEAR ENDED
JULY 31, 2019
 

INCREASE (DECREASE) IN NET ASSETS:

      
From operations:      

Net investment income

 $1,042,746  $1,118,296  $1,869,068  $1,702,282  $866,307  $1,076,165 

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

  8,447,551   4,497,578   2,131,393   1,315,712   (1,811,160  (903,952

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

  13,349,692   19,024,803   40,698,197   22,554,250   5,783,874   (155,721
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets resulting from operations.

  22,839,989   24,640,677   44,698,658   25,572,244   4,839,021   16,492 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
Dividends and distributions to shareholders:      

Distributions

      

Individual Investor Class

  (5,565,679  (5,652,357  (1,857,385  (4,420,544  (196,685  (395,899

Institutional Class

  —     —     (872,217  (981,555  (616,102  (879,437
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total dividends and distributions

  (5,565,679  (5,652,357  (2,729,602  (5,402,099  (812,787  (1,275,336
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
Capital share transactions:      

Proceeds from sales of shares

      

Individual Investor Class

  51,124,955   38,908,506   37,693,243   35,144,497   11,646,049   7,421,273 

Institutional Class

  —     —     38,785,741   28,005,275   27,776,825   18,903,257 

Reinvestment of dividends and distributions

      

Individual Investor Class

  5,371,066   5,465,985   1,794,741   4,288,487   190,192   381,573 

Institutional Class

  —     —     739,931   773,029   608,601   869,648 

Payments for shares redeemed

      

Individual Investor Class1

  (40,385,990  (33,941,631  (49,460,152  (43,934,103  (6,273,803  (3,802,352

Institutional Class2

  —     —     (11,093,851  (7,478,084  (11,416,187  (8,943,606
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets resulting from capital share transactions

  16,110,031   10,432,860   18,459,653   16,799,101   22,531,677   14,829,793 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total increase in net assets

  33,384,341   29,421,180   60,428,709   36,969,246   26,557,911   13,570,949 

NET ASSETS:

      

Beginning of period.

  276,486,973   247,065,793   299,556,375   262,587,129   64,122,503   50,551,554 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

End of period.

 $309,871,314  $276,486,973  $359,985,084  $299,556,375  $90,680,414  $64,122,503 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

1  

Net of redemption fee received of $44,731, $1,106, $21,573, $4,013, $4,781 and $1,396, respectively.

2 

Net of redemption fee received of $0, $0, $2,691, $0, $7,781 and $1,064, respectively.

 

See Notes to Financial Statements

 

35


GREEN CENTURY BALANCED FUND FINANCIAL HIGHLIGHTS

 

   FOR THE YEARS ENDED JULY 31, 
   2020   2019   2018   2017   2016 

Net Asset Value, beginning of year

  $29.05   $27.05   $25.55   $23.93   $25.07 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Income (loss) from investment operations:          

Net investment income

   0.11    0.12    0.07    0.08    0.02 

Net realized and unrealized gain (loss) on investments

   2.25    2.50    1.79    2.05    (0.48
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total increase (decrease) from investment operations

   2.36    2.62    1.86    2.13    (0.46
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Less dividends:          

Dividends from net investment income

   (0.11   (0.11   (0.05   (0.03   —   

Distributions from net realized gains

   (0.47   (0.51   (0.31   (0.48   (0.68
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total decrease from dividends

   (0.58   (0.62   (0.36   (0.51   (0.68
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value, end of year

  $30.83   $29.05   $27.05   $25.55   $23.93 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

   8.19   10.04   7.32   9.07   (1.73)% 
Ratios/Supplemental data:          

Net assets, end of year (in 000’s)

  $309,871   $276,487   $247,066   $225,670   $193,805 

Ratio of expenses to average net assets

   1.47   1.48   1.48   1.48   1.48

Ratio of net investment income to average net assets

   0.37   0.44   0.25   0.31   0.10

Portfolio turnover

   25   19   18   26   24

 

See Notes to Financial Statements

 

36


GREEN CENTURY EQUITY FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

   FOR THE YEARS ENDED JULY 31, 
   2020   2019   2018   2017   2016 

Net Asset Value, beginning of year

  $46.17   $43.16   $38.05   $33.65   $32.73 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Income from investment operations:          

Net investment income

   0.25    0.25    0.22    0.27    0.27 

Net realized and unrealized gain on investments

   6.16    3.61    5.28    4.84    1.27 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total increase from investment operations

   6.41    3.86    5.50    5.11    1.54 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Less dividends:          

Dividends from net investment income

   (0.22   (0.21   (0.20   (0.22   (0.25

Distributions from net realized gains

   (0.13   (0.64   (0.19   (0.49   (0.37
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total decrease from dividends

   (0.35   (0.85   (0.39   (0.71   (0.62
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value, end of year

  $52.23   $46.17   $43.16   $38.05   $33.65 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

   13.95   9.33   14.52   15.42   4.83
Ratios/Supplemental data:          

Net assets, end of year (in 000’s)

  $265,946   $244,706   $232,609   $207,282   $173,485 

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

   0.52   0.58   0.53   0.76   0.89

Portfolio turnover

   10   14   18   17   19

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
 
   2020   2019     

Net Asset Value, beginning of period

  $46.11   $43.16   $40.86 
  

 

 

   

 

 

   

 

 

 
Income from investment operations:      

Net investment income

   0.39    0.39    0.09 

Net realized and unrealized gain on investments

   6.16    3.59    2.35 
  

 

 

   

 

 

   

 

 

 

Total increase from investment operations

   6.55    3.98    2.44 
  

 

 

   

 

 

   

 

 

 
Less dividends:      

Dividends from net investment income

   (0.43   (0.39   (0.14

Distributions from net realized gains

   (0.13   (0.64   —   
  

 

 

   

 

 

   

 

 

 

Total decrease from dividends

   (0.56   (1.03   (0.14
  

 

 

   

 

 

   

 

 

 

Net Asset Value, end of period

  $52.10   $46.11   $43.16 
  

 

 

   

 

 

   

 

 

 

Total return

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

Net assets, end of period (in 000’s)

  $94,039   $54,850   $29,978 

Ratio of expenses to average net assets

   0.95   0.95   0.95%(b) 

Ratio of net investment income to average net assets

   0.82   0.88   0.83%(b) 

Portfolio turnover

   10   14   18%(a) 

 

(a)

Not annualized.

(b)

Annualized.

 

See Notes to Financial Statements

 

37


GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INDIVIDUAL INVESTOR CLASS FINANCIAL HIGHLIGHTS

 

   FOR THE YEARS ENDED JULY 31,   FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS)  TO
JULY 31, 2017
 
   2020   2019   2018     

Net Asset Value, beginning of period

  $11.07   $11.50   $11.31   $10.00 
  

 

 

   

 

 

   

 

 

   

 

 

 
Income (loss) from investment operations:        

Net investment income

   0.10    0.18    0.17    0.10 

Net realized and unrealized gain (loss) on investments

   0.59    (0.40   0.24    1.31 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total increase (decrease) from investment operations

   0.69    (0.22   0.41    1.41 
  

 

 

   

 

 

   

 

 

   

 

 

 
Less dividends:        

Dividends from net investment income

   (0.08   (0.16   (0.19   (0.10

Distributions from net realized gains

   —      (0.05   (0.03   —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total decrease from dividends

   (0.08   (0.21   (0.22   (0.10
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value, end of period

  $11.68   $11.07   $11.50   $11.31 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total return

   6.28   (1.82)%    3.62   14.18%(a) 
Ratios/Supplemental data:        

Net assets, end of period (in 000’s)

  $29,073   $22,110   $18,744   $8,087 

Ratio of expenses to average net assets

   1.28   1.28   1.28   1.28%(b) 

Ratio of net investment income to average net assets

   0.98   1.79   1.71   1.79%(b) 

Portfolio turnover

   20   23   28   13%(a) 

 

(a)

Not annualized.

(b)

Annualized.

GREEN CENTURY MSCI INTERNATIONAL INDEX FUND INSTITUTIONAL CLASS FINANCIAL HIGHLIGHTS

 

   FOR THE YEARS ENDED JULY 31,   FOR THE PERIOD
SEPTEMBER 30, 2016
(COMMENCEMENT OF
OPERATIONS)  TO
JULY 31, 2017
 
   2020   2019   2018     

Net Asset Value, beginning of period

  $11.07   $11.50   $11.31   $10.00 
  

 

 

   

 

 

   

 

 

   

 

 

 
Income (loss) from investment operations:        

Net investment income

   0.13    0.21    0.21    0.12 

Net realized and unrealized gain (loss) on investments

   0.59    (0.38   0.23    1.31 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total increase (decrease) from investment operations

   0.72    (0.17   0.44    1.43 
  

 

 

   

 

 

   

 

 

   

 

 

 
Less dividends:        

Dividends from net investment income

   (0.13   (0.21   (0.22   (0.12

Distributions from net realized gains

   —      (0.05   (0.03   —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total decrease from dividends

   (0.13   (0.26   (0.25   (0.12
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value, end of period

  $11.66   $11.07   $11.50   $11.31 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total return

   6.51   (1.43)%    3.90   14.36%(a) 
Ratios/Supplemental data:        

Net assets, end of period (in 000’s)

  $61,608   $42,012   $31,808   $15,574 

Ratio of expenses to average net assets

   0.98   0.98   0.98   0.98%(b) 

Ratio of net investment income to average net assets

   1.28   2.09   2.01   2.09%(b) 

Portfolio turnover

   20   23   28   13%(a) 

 

(a)

Not annualized.

(b)

Annualized.

 

See Notes to Financial Statements

 

38


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 commenced operations on March 18, 1992, 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 a pricing service which takes into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, and other market data, without exclusive reliance on quoted prices or exchange or over-the-counter prices. Securities, if any, for which there are no such valuations or quotations available, or for which the market quotation or valuation provided by a pricing service is deemed not reliable, are valued at fair value by management as determined in good faith under guidelines established by the Trustees. Certificates of deposit are valued at cost plus accrued interest, and short-term obligations maturing in sixty days or less are valued at amortized cost, both of which approximate market value.

 

39


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.

 

40


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, 2020:

 

   LEVEL 1   LEVEL 2   LEVEL 3   TOTAL 

COMMON STOCKS

   $194,870,326    $          —      $          —      $194,870,326 

BONDS & NOTES

   —      95,053,316    —      95,053,316 

SHORT-TERM OBLIGATIONS

   19,559,173    —      —      19,559,173 
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

   $214,429,499    $95,053,316    $          —      $309,482,815 
  

 

 

   

 

 

   

 

 

   

 

 

 

The following is a summary of the inputs used to value the Equity Fund’s net assets as of July 31, 2020:

 

   LEVEL 1   LEVEL 2   LEVEL 3   TOTAL 

COMMON STOCKS

   $359,009,361    $       —      $          —      $359,009,361 

SHORT-TERM OBLIGATIONS

   873,614    —      —      873,614 
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

   $359,882,975    $       —      $          —      $359,882,975 
  

 

 

   

 

 

   

 

 

   

 

 

 

The following is a summary of the inputs used to value the MSCI International Index Fund’s net assets as of July 31, 2020:

 

   LEVEL 1   LEVEL 2   LEVEL 3   TOTAL 
COMMON STOCKS        

JAPAN

   $          —      $21,290,550    $          —      $21,290,550 

GERMANY

   —      12,959,107    —      12,959,107 

SWITZERLAND

   —      8,105,337    —      8,105,337 

FRANCE

   —      7,738,303    —      7,738,303 

CANADA

   6,684,046    —      —      6,684,046 

UNITED KINGDOM

   199,180    6,038,448    —      6,237,628 

NETHERLANDS

   515,095    4,678,229    —      5,193,324 

DENMARK

   —      4,562,676    —      4,562,676 

AUSTRALIA

   —      4,404,270    —      4,404,270 

SWEDEN

   —      2,266,285    —      2,266,285 

HONG KONG

   —      2,197,047    —      2,197,047 

IRELAND

   —      1,381,761    —      1,381,761 

SPAIN

   —      1,188,232    —      1,188,232 

SINGAPORE

   —      916,803    —      916,803 

FINLAND

   —      765,150    —      765,150 

ITALY

   —      755,183    —      755,183 

JERSEY

   —      697,286    —      697,286 

NEW ZEALAND

   —      637,406    —      637,406 

NORWAY

   —      633,541    —      633,541 

BELGIUM

   —      554,407    —      554,407 

AUSTRIA

   —      148,586    —      148,586 

PORTUGAL

   —      98,522    —      98,522 
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL COMMONS STOCKS

   7,398,321    82,017,129    —      89,415,450 
  

 

 

   

 

 

   

 

 

   

 

 

 

SHORT-TERM OBLIGATIONS

   522,761    —      —      522,761 
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

   $7,921,082    $82,017,129    $          —      $89,938,211 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

41


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, 2020.

   

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.

   

US 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, 2020. Also, the Funds had recognized no interest and penalties related to uncertain tax benefits through July 31, 2020. At July 31, 2020, the tax years 2017 through 2020 remain open to examination by the Internal Revenue Service.

 

42


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, 2020, the Balanced Fund, Equity Fund and MSCI International Index Fund received $44,731, $24,264 and $12,562 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, 2020, no liability has been accrued.

 (H)

Offsetting of Assets and Liabilities:    As of July 31, 2020, 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, 2020, 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. Effective February 1, 2018, Green Century and the Funds on behalf of the Balanced Fund entered into a contractual investment advisory fee waiver agreement pursuant to which Green Century agreed to waive that portion of the fee to which it is otherwise entitled under the Advisory Agreement between Green Century and the Funds with respect to the Balanced Fund, so that Green Century’s investment advisory fee with respect to the Balanced 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. Effective November 28, 2018, the Balanced Fund’s Advisory Agreement was amended to reflect the same reduction in the advisory fee that was stipulated in the fee waiver agreement. Prior to February 1, 2018, the Balanced Fund paid Green Century a fee, accrued daily and paid monthly, at an annual rate of 0.65% of the average daily net assets of the Fund. 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. Effective February 1, 2018, Green Century, Trillium, and the Funds on behalf of the Balanced Fund entered into a contractual investment subadvisory fee waiver agreement pursuant to which Trillium agreed to waive that portion of the fee to which it is otherwise entitled under the Subadvisory Agreement between Green Century, Trillium and the Funds with respect to the Balanced Fund, so that 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. Effective November 28, 2018, the Balanced Fund’s Subadvisory Agreement was amended to reflect the same reduction in the subadvisory fee that was stipulated in the fee waiver agreement. Prior to February 1, 2018,

 

43


GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

 continued

 

 Trillium was paid a fee by the Adviser at an annual rate of 0.40% on the first $30 million of average daily net assets and 0.35% on average daily net assets in excess of $30 million for its services. For the year ended July 31, 2020, Green Century accrued fees of $994,132 to Trillium. 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, 2020, Green Century accrued fees of $140,563 and $113,153 to Northern Trust for the Equity Fund and the International Index Fund, respectively.
 (C)

Administrator:    Green Century is the administrator (“the Administrator”) of the Green Century Funds. Pursuant to the Administrative Services Agreement, Green Century pays all the expenses of each Fund other than the investment advisory fees; interest; taxes; brokerage costs and other capital expenses; expenses of non-interested trustees (including counsel fees) and any extraordinary expenses. The Balanced Fund pays Green Century a fee at a rate such that immediately following any payment to the Administrator, the total operating expenses of the Fund, on an annual basis, do not exceed 1.48% of the Fund’s average daily net assets up to and including $250 million and 1.43% of the Fund’s 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, 2020, Green Century accrued fees of $168,378, $215,969, and $96,429 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 $26,000, plus the greater of $26,000 or at an annual rate of 0.05% on the first $100 million of average daily net assets, 0.04% on the next $100 million of average daily net assets, and 0.03% on average daily net assets in excess of $200 million. The 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 $16,000, plus the greater of $25,000 or at an annual rate of 0.05% on the first $100 million of average daily net assets, 0.04% on the next $100 million of average daily net assets, and 0.03% on average daily net assets in

 

44


GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

 continued

 

 excess of $200 million. For the year ended July 31, 2020, Green Century accrued fees of $151,563 and $52,731 to MSCI for the Equity Fund and MSCI International Index Fund, respectively.

NOTE 3 — Investment Transactions

For the year ended July 31, 2020, the Balanced Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $67,391,440 and $66,873,518 respectively. The Equity Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $47,677,056 and $30,493,526, respectively. The MSCI International Index Fund’s cost of purchases and proceeds from sales of securities, other than short-term securities, aggregated $36,537,595 and $14,689,630, respectively.

NOTE 4 — Federal Income Tax Information

The tax basis of the components of distributable net earnings (deficit) at July 31, 2020 were as follows:

 

   BALANCED FUND   EQUITY FUND   MSCI INTERNATIONAL
INDEX FUND
 

Undistributed ordinary income

  $110,728   $127,268   $83,896 

Undistributed long-term capital gains

   8,293,784    2,168,190    —   
  

 

 

   

 

 

   

 

 

 

Tax accumulated earnings

   8,404,512    2,295,458    83,896 
  

 

 

   

 

 

   

 

 

 

Accumulated capital and other losses

   —      —      (1,602,445

Unrealized appreciation (depreciation)

   79,626,995    152,627,269    6,367,550 

Foreign currency translations

   —      —      17,068 
  

 

 

   

 

 

   

 

 

 

Distributable net earnings (deficit)

  $88,031,507   $154,922,727   $4,866,069 
  

 

 

   

 

 

   

 

 

 

The tax character of distributions paid during the fiscal year ended July 31, 2020 and the year ended July 31, 2019 were as follows:

 

   BALANCED FUND   EQUITY FUND 
   YEAR ENDED
JULY 31, 2020
   YEAR ENDED
JULY 31, 2019
   YEAR ENDED
JULY 31, 2020
   YEAR ENDED
JULY 31, 2019
 

Ordinary income

  $1,380,364   $1,539,357   $2,051,600   $2,668,893 

Long-term capital gains

   4,185,315    4,113,000    678,002    2,733,206 
   MSCI INTERNATIONAL
INDEX FUND
         
   YEAR ENDED
JULY 31, 2020
   YEAR ENDED
JULY 31, 2019
         

Ordinary income

  $812,787   $1,049,319     

Long-term capital gains

   —      226,017     

 

45


GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

 continued

 

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  BALANCED FUND 
   YEAR ENDED
JULY 31, 2020
  YEAR ENDED
JULY 31, 2019
 

Shares sold

   1,761,134   1,427,521 

Reinvestment of dividends

   180,586   216,309 

Shares redeemed

   (1,408,560  (1,257,843
  

 

 

  

 

 

 
   533,160   385,987 
  

 

 

  

 

 

 
   EQUITY FUND
INDIVIDUAL
INVESTOR CLASS
  EQUITY FUND
INDIVIDUAL
INVESTOR CLASS
 
   YEAR ENDED
JULY 31, 2020
  YEAR ENDED
JULY 31, 2019
 

Shares sold

   805,143   824,614 

Reinvestment of dividends

   36,329   110,775 

Shares redeemed

   (1,049,915  (1,024,527
  

 

 

  

 

 

 
   (208,443  (89,138
  

 

 

  

 

 

 
   EQUITY FUND
INSTITUTIONAL CLASS
  EQUITY FUND
INSTITUTIONAL CLASS
 
   YEAR ENDED
JULY 31, 2020
  YEAR ENDED
JULY 31, 2019
 

Shares sold

   836,576   653,982 

Reinvestment of dividends

   15,047   19,493 

Shares redeemed

   (236,223  (178,554
  

 

 

  

 

 

 
   615,400   494,921 
  

 

 

  

 

 

 
   MSCI INTERNATIONAL
INDEX INDIVIDUAL

INVESTOR CLASS
  MSCI INTERNATIONAL
INDEX INDIVIDUAL

INVESTOR CLASS
 
   YEAR ENDED
JULY 31, 2020
  YEAR ENDED
JULY 31, 2019
 

Shares sold

   1,036,568   687,102 

Reinvestment of dividends

   16,768   35,596 

Shares redeemed

   (560,332  (356,006
  

 

 

  

 

 

 
   493,004   366,692 
  

 

 

  

 

 

 

 

46


GREEN CENTURY FUNDS NOTES TO FINANCIAL STATEMENTS

 concluded

 

   MSCI INTERNATIONAL
INDEX INSTITUTIONAL
CLASS
  MSCI INTERNATIONAL
INDEX INSTITUTIONAL
CLASS
 
   YEAR ENDED
JULY 31, 2020
  YEAR ENDED
JULY 31, 2019
 

Shares sold

   2,490,044   1,775,836 

Reinvestment of dividends

   53,436   80,885 

Shares redeemed

   (1,055,823  (825,444
  

 

 

  

 

 

 
   1,487,657   1,031,277 
  

 

 

  

 

 

 

NOTE 6 — Special Meeting of Shareholders of the Balanced Fund

On June 26, 2020, shareholders of the Balanced Fund approved a new investment subadvisory agreement with Trillium Asset Management LLC, the subadviser to the Balanced Fund. The percentage of shares outstanding and entitled to vote that were present by proxy was 51.11%. The number of shares voted were as follows:

 

For

  

Against

  

Abstain

  

Total

4,550,168  66,308  442,541  5,059,017

Note 7 — Market Risk from COVID-19

In March 2020, a pandemic related to COVID-19 was declared. The pandemic represents a market risk factor including uncertainty in the financial markets. 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 8 — Subsequent Events

Subsequent to July 31, 2020 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.

 

47


BOARD OF TRUSTEES’ CONSIDERATION OF SUBADVISORY AGREEMENT

 

Perpetual Limited (an Australian Asset Manager) (“Perpetual”) acquired Trillium “(the “Transaction”) . The effective date of the Transaction was June 30, 2020.

At a meeting held on March 25, 2020 (the “March 2020 Meeting”), the Board of Trustees of the Trust, including a majority of the Independent Trustees: (i) unanimously approved the New Subadvisory Agreement and the Interim Subadvisory Agreement (collectively the “Subadvisory Agreements”) and (ii) unanimously recommended that Shareholders of the Balanced Fund approve the New Subadvisory Agreement. The Subadvisory Agreements were presented for approval because the Current Subadvisory Agreement would terminate upon completion of the proposed Transaction.

The Trustees considered all of the information provided to them by Trillium in connection with the March 2020 Meeting, as well as information provided over the past year and information provided to them in connection with their meeting on October 4, 2019, which was the meeting in which the Trustees considered and approved the renewal of the Current Subadvisory Agreement for the one-year period ended November 28, 2020 (the “2019 Annual Renewal Meeting”). At the March 2020 Meeting, Trillium affirmed and updated prior information and representations provided to the Trustees, including information and representations provided in connection with the 2019 Annual Renewal Meeting. In relying on information from the 2019 Annual Renewal Meeting (as affirmed and updated in March 2020), the Trustees observed that the term of the New Subadvisory Agreement would run until the same 2020 date as the annual renewal period for the Current Subadvisory Agreement that the Trustees approved at the 2019 Annual Renewal Meeting. In connection with their deliberations at the March 2020 Meeting, and in a separate executive session of the Independent Trustees, the Trustees considered, among other things, information provided by Trillium regarding the investment performance of the Balanced Fund, the subadvisory fees paid to Trillium and the profitability to Trillium of its subadvisory relationship to the Balanced Fund. The Independent Trustees were assisted by independent counsel in considering these materials and the approval of the Subadvisory Agreements. The Trustees also received a memorandum from independent legal counsel advising them of their duties and responsibilities in connection with the contract review and the Transaction. In approving the Subadvisory Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Matters considered in connection with their approval of the Subadvisory Agreements included the following.

Nature, Quality, and Extent of Services Performed.    The Trustees noted that under the terms of the Subadvisory Agreements, Trillium will continue to provide the day-to-day portfolio management of the Balanced Fund, including determining asset and sector allocation; conducting securities selection and discovery; researching and analyzing environmental policies and practices of companies and implementing the Balanced Fund’s environmental screening criteria; managing the volatility, liquidity, risk, and turnover of the portfolio; and investing the portfolio consistent with the Balanced Fund’s investment objective and policies. The Trustees considered the professional expertise, tenure, and qualifications of the portfolio management team and noted that Trillium was devoted exclusively to environmentally and socially responsible investing and managed over $2 billion in assets. The Trustees reviewed information relating to the Transaction, which included materials from Trillium, and the role of current Trillium personnel under the Subadvisory Agreements following the Transaction and placed emphasis on the representations that the role of such personnel would remain unchanged. The Trustees also considered Trillium’s compliance record as well as the professional experience and responsiveness of Trillium’s compliance staff, as reported to them by the Trust’s Chief Compliance Officer. The Trustees also considered Trillium’s leadership in social and environmental responsibility, including its shareholder advocacy efforts. The Trustees observed that, following the Transaction, the operations and leadership of Trillium were expected to continue with a considerable degree of independence from Perpetual, and Trillium would operate under its brand with no changes to its team, investment process, or advocacy initiatives.

 

48


Based on its review of all of the services provided and to be provided, the Trustees concluded that the nature, quality, and extent of services provided by Trillium supported the approval of the Subadvisory Agreements.

Investment Performance.    The Trustees reviewed and considered, at their 2019 Annual Renewal Meeting, information regarding the investment performance of the Balanced Fund and comparative data with respect to the performance of mutual funds with similar investment objectives as well as other broad-based market indexes. The Trustees noted that as of periods ended July 31, 2019, the Balanced Fund’s one-, three-, five- and ten-year average annual returns outperformed the Lipper Balanced Fund Index. The Trustees also noted that as of periods ended July 31, 2019, the Balanced Fund’s one- and three-year average annual returns outperformed a custom balanced index (“Custom Index”) 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 and Government Index and its five- and ten-year average annual returns underperformed the Custom Index. At the March 2020 Meeting, the Trustees received further updated performance information, including information relating to the Balanced Fund’s performance through periods of considerable market volatility as a result of the COVID-19 pandemic during the first part of 2020. After considering all the factors deemed appropriate at the March 2020 Meeting, the Trustees concluded that the performance of the Balanced Fund together with Trillium’s investment process, philosophies and experience in environmentally and socially responsible investing, supported the approval of the Subadvisory Agreements.

Costs of Services Provided and Profitability.    The Trustees considered that the subadvisory fees to be paid by Green Century to Trillium under the Subadvisory Agreements were 0.40% of the value of the average daily net assets of the Balanced Fund up to $30 million, 0.35% of the value of the average daily net assets of the Balanced Fund in excess of $30 million up to $250 million, and 0.30% of the value of the average daily net assets of the Balanced Fund in excess of $250 million. The Trustees noted that the subadvisory fees to be paid under the Subadvisory Agreements would be the same as those paid under the Current Agreement.

In evaluating the profitability of the Current Agreement to Trillium, the Trustees noted that based on information provided by Trillium at the 2019 Annual Renewal Meeting, the relationship was profitable. The Trustees noted that Trillium stated that recent increases in the assets of the Balanced Fund have allowed Trillium to realize what it considers to be a fair entrepreneurial profit on the subadvisory services it provides. The Trustees considered the financial resources Trillium dedicated and the other expenses Trillium incurred in providing subadvisory services to the Balanced Fund, including startup costs relating to the relationship, and additional personnel, legal, trading analysis and compliance costs required in the context of providing subadvisory services to a mutual fund. The Trustees took into account that Trillium is the investment adviser or sub-adviser to other mutual funds. The Trustees also considered Trillium’s fee structure and noted, based on the information provided, that the subadvisory fees were lower than the fees Trillium would receive from an institutional client with separate accounts of similar size as the Balanced Fund.

The Trustees also considered that the subadvisory fees are paid by Green Century, and are not in addition to the advisory fees paid to Green Century by the Balanced Fund, noting that the terms of the Trust’s investment advisory agreement with Green Century were not subject to review, approval or renewal at the March 2020 Meeting.

After reviewing the information described above, the Trustees concluded that the fees specified in the Subadvisory Agreements, taking into account the nature and quality of services provided and the costs of the services provided by and to be provided by Trillium, supported the approval of the Subadvisory Agreements.

Other Benefits.    The Trustees evaluated potential other benefits that Trillium may realize from its relationship with the Balanced Fund. At the 2019 Annual Renewal Meeting, they had considered the brokerage practices of Trillium, including the soft dollar commissions that were generated with respect to the Balanced Fund’s portfolio transactions. The Trustees considered that Trillium was not affiliated with a broker/dealer in the business of executing trades for U.S. mutual funds and therefore no benefit would be realized by Trillium through transactions with affiliated brokers.

 

49


The Trustees further considered the reputational and other advantages that Trillium and, by extension, its new parent Perpetual may gain from its relationship with the Balanced Fund. The Trustees concluded that the expected benefits were reasonable in the context of its relationship with the Balanced Fund.

Economies of Scale.    The Trustees also considered whether economies of scale would be realized by Trillium as the Balanced Fund grows in asset size and the extent to which such economies of scale might be reflected in the subadvisory fees. They noted the relatively small size of the Balanced Fund (compared with similar funds in the industry) and the resultant difficulty of achieving meaningful economies of scale, though they took into account the effects of significant increases in Balanced Fund and Trust assets over the past few years. They considered that if the assets were to increase, Trillium could have the opportunity to experience economies of scale. They also noted that pursuant to the Subadvisory Agreements, the overall subadvisory fees paid to Trillium by Green Century (out of the advisory fee that Green Century receives from the Balanced Fund, which is subject to a breakpoint) include breakpoints at $30 million and $250 million, so that fees as a percentage of net assets decrease modestly (from 40 basis points towards 30 basis points) as assets in the Balanced Fund increase. The Trustees concluded that economies of scale could be realized as the Balanced Fund grows, and that the fee schedules as specified were appropriate, and supported the approval of the Subadvisory Agreements.

Based on a review of all factors deemed relevant, the Trustees, including the Independent Trustees, concluded that the Subadvisory Agreements should be approved.

 

50


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of the Funds 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 (collectively, the Funds), each a series of Green Century Funds, including the portfolios of investments, as of July 31, 2020, 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, 2020, 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, 2020, by correspondence with the custodian and broker, or by other appropriate 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 25, 2020

 

51


TAX INFORMATION

For the year ended July 31, 2020, 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, 2020, 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, 2020. 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: 60

 Trustee since 2014 Managing Director, AltEnergy, LLC (since 2016); Managing Director, Pickwick Capital Partners (since 2014); President/Founder, Patolan Partners (since 2011).  3 

Daniel S. Kern

114 State Street

Suite 200

Boston, MA 02109

Age: 59

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

Peter D. Kinder

114 State Street

Suite 200

Boston, MA 02109

Age: 73

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

 

52


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

 

Mary Raftery

114 State Street

Suite 200

Boston, MA 02109

Age: 55

 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: 72

 Chairperson since 2009; Trustee since 1991 Consultant, Rainville Petito, PLLC (2016 to 2019); Consultant, Danielson Rainville Attorneys, PLLC (2016); Director and President, Gunnison Valley Housing Foundation (since 2011); Director (since 2011) and President (2015-2018), Coal Creek Watershed Coalition; Senior Attorney, Starr and Associates, PC (1982 to 2014).  3 
Interested Trustees:   

Douglas H. Phelps*

114 State Street

Suite 200

Boston, MA 02109

Age: 73

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

Wendy Wendlandt*

114 State Street

Suite 200

Boston, MA 02109

Age: 58

 Trustee since 1991 President (2006 to 2013) and Director (since 2006), Green Century Capital Management, Inc.; Political Director, The Public Interest Network (since 1989); Senior Staff, Fund for Public Interest (since 1989); Director, Fair Share (since 2012); President, Environment America Research and Policy Center (since 2007); Acting President, Environmental America (since 2020).  3 
Officers:   

John Nolan*

114 State Street

Suite 200

Boston, MA 02109

Age: 57

 President and Treasurer since 2018 Senior Vice President and Treasurer (since 2018), Green Century Capital Management, Inc.; Chief Operations Officer, SIFF Capital Management (2016 to 2017); Partner, Kingsbridge National Ice Center (2009 to 2016).  
Not
applicable
 
 

Amy Puffer*

114 State Street

Suite 200

Boston, MA 02109

Age: 61

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

 

53


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

 

 

Printed on recycled paper with soy-based ink.

 

54


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, 2020

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 Jonathan Darnell, 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. Darnell 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 7/31/20: $83,000

For the fiscal year ended 7/31/19: $83,000

 

 (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 7/31/20: $18,540

For the fiscal year ended 7/31/19: $18,540

 

 (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 7/31/20: $18,540

For the fiscal year ended 7/31/19: $18,540

 

 (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/ John R. Nolan

John R. Nolan
President and Principal Executive Officer
October 6, 2020

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/ John R. Nolan

John R. Nolan
President and Principal Executive Officer
October 6, 2020

/s/ John R. Nolan

John R. Nolan
Treasurer and Principal Financial Officer
October 6, 2020