[Green Century Funds Logo appears here]
SEMI-ANNUAL REPORT
Green Century Balanced Fund
December 31, 1995
Green Century Equity Fund
January 31, 1996
An Investment For Your Future. 29 Temple Place, Boston, Massachusetts 02111
For information on the Green Century Funds (R), call 1-800-93-GREEN. For
information on opening an account, details on account services and information
about existing accounts, call 1-800-221-5519. For share price and current yield
information, call 1-800-882-8316 24 hours a day.
- --------------------------------------------------------------------------------
Dear Green Century Funds Shareholder:
The daily dangers posed by oil spills, acid rain, a thinning ozone
layer, and polluted air and waterways reinforce how important it is that we do
what we can to protect the environment. The Green Century Funds and Green
Century Capital Management, Inc. are committed to helping our shareholders make
their investment dollars a strong environmental advocate.
INVESTMENT PERFORMANCE
Calendar Year 1995 and the first weeks of 1996 have brought us very
strong financial markets and both of the Green Century Funds enjoyed strong
returns. While we are pleased with the performance of the Funds, prudence
cautions us to question how long such market strength can be sustained.
Preparing for the inevitable ups and downs of the market means once again
reminding investors of the benefits of investing for the long term and of
making new investments in the market on a regular basis through the dollar cost
averaging strategy.
The Green Century Equity Fund had a total return of 35.09% for the
calendar year ended December 31, 1995, and 13.15% for the six months ended
December 31, 1995. For the six months ended January 31, 1996, the Fund had a
total return of 13.05%. Relative to broad market indices such as the Standard &
Poor's 500 Index (S&P 500), the Equity Fund benefitted from its underexposure
to the automotive industry and its overexposure to the beverage sector. It
suffered from its overexposure to the retail sector and underexposure to the
aerospace sector compared to the S&P 500.
The Equity Fund is an indexed fund invested in a socially screened,
market-capitalization weighted stock index. At all times, the Fund is invested
in all 400 companies on the Domini Social Index which includes a substantial
number of larger capitalization securities that pass multiple, broad-based
social screens. The indexing philosophy results in a broadly diversified
portfolio of stocks.
The Green Century Balanced Fund had a total return of 18.26% for the
calendar year ended December 31, 1995, and 4.78% for the six months ended
December 31, 1995. For the six months ended January 31, 1996, the Fund had a
total return of 1.92%. The Balanced Fund's blend of stocks and bonds is more
conservative than the all-stock Equity Fund and is designed to be less
volatile. Nonetheless, the Balanced Fund's performance in the second half of
1995 suffered relatively, in part due to under-weighting in oils and over-
weighting in technology and telecommunications.
Winslow Management Company, the Balanced Fund's portfolio manager,
has positioned the portfolio in performance driven, environmentally responsible
companies. During the last six months of 1995, Winslow reduced the total number
of equities from more than fifty to thirty-one. The bond portion of the
portfolio was also recast into a blend of treasury, high yield corporate, and
convertible bonds which on a combined basis are producing 90% of the Fund's
cash flow.
<PAGE>
Winslow believes the current portfolio of companies with ecologically
sustainable growth strategies will show 1996 earnings growth greater than that
of the overall market as reflected by the companies in the S&P 500. Superior
earnings growth is key to superior performance. For example, the portfolio now
includes holdings in: Memtec, a water treatment and filtration company, with
Winslow estimated annual earnings growth of +30%; Thermo Electron, a developer
and manufacturer of environmental products, with a Winslow expected growth rate
of +20%; and Whole Foods, a retailer of organic and holistic products with a
Winslow estimated earnings growth rate of +21%.
SHAREHOLDER ACTIVISM
We continue to employ our power as a shareholder to push corporations
to improve their environmental records. In 1992, TIME Warner, Inc. committed to
convert TIME magazine to chlorine-free paper. The Company has not only not done
so, but now is resisting requests to simply report on its plans to convert. The
Green Century Balanced Fund joined as a co-filer in a shareholder resolution
against TIME which asks the Board of Directors to report on its plans to
convert to the use of chlorine-free paper. The Company now has petitioned the
Securities and Exchange Commission (the SEC) to allow it to omit this
resolution from TIME's annual meeting and proxy ballot. Green Century is
working with the other proponents of the resolution to advocate that the SEC
require the proposal to remain on the ballot.
In response to a shareholder resolution filed against Intel
Corporation by the Green Century Balanced Fund, the Jessie Smith Noyes
Foundation and others, Intel has revised its Environmental, Health and Safety
Policy to include sharing information on the Company's environmental and safety
hazards with the public. Further, Intel has agreed that the "communities" with
which it will share information will include all community groups and not just
the elected officials and local advisory panels set up by Intel to which the
Company had limited information in the past. As a result, Noyes, with the
support of Green Century and the other co-filers, withdrew the shareholders
resolution last month. The resolution's proponents and local community
organizations will monitor Intel's implementation of the new policy over the
coming year.
We will continue to report to you on an ongoing basis the status of
our efforts to promote corporate environmental responsibility. Thank you for
your continuing confidence and investment in the Green Century Funds.
With respect,
The Green Century Funds
<TABLE>
<CAPTION>
GREEN CENTURY EQUITY FUND
AVERAGE ANNUAL TOTAL RETURN
---------------------------
<S> <C>
One Year........................ 34.87%
Three Years..................... 12.93%
Five Years...................... 11.62%
Since Inception*................ 10.48%
*August 10, 1990
</TABLE>
<TABLE>
<CAPTION>
GREEN CENTURY BALANCED FUND
AVERAGE ANNUAL TOTAL RETURN
---------------------------
<S> <C>
One Year......................... 16.06%
Three Years...................... 3.97%
Five Years....................... N/A
Since Inception*................. 4.39%
*March 18, 1992
</TABLE>
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. The Green Century Equity Fund, which commenced
investment operations in September 1995, invests all of its assets in an
existing separate registered investment company which has the same investment
objective as the Fund (the "Index Portfolio"). Consistent with regulatory
guidance, performance for the period prior to the Fund's inception reflects the
performance of the Index Portfolio adjusted to reflect the deduction of the
charges and expenses of the Fund. Total returns for the period ending 1/31/96
are historical. This material must be proceeded or accompanied by a current
prospectus.
2
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
<S> <C> <C>
HEALTH CARE--3.8%
Apogee, Inc. (b)........................................... 5,000 $ 46,250
Columbia/HCA Healthcare Corp............................... 1,000 50,750
Vencor Inc. (b)............................................ 5,000 162,500
----------
259,500
----------
PERSONAL CARE PRODUCTS--3.0%
Gillette Company........................................... 4,000 208,500
----------
Total Common Stocks (Cost $3,832,305)................................ 4,245,475
----------
CORPORATE BONDS AND NOTES--23.8%
ENVIRONMENTAL SERVICES--7.1%
ICF Kaiser International 12.00%, due 12/31/03.............. $ 200,000 $ 188,250
Kenetech Corporation 12.75%, due 12/15/02.................. 200,000 86,000
Thermo Optek 5.00%, due 10/15/00........................... 100,000 105,000
U.S. Filter Corporation 6.00%, due 9/15/05, 144A (d)....... 100,000 115,000
----------
494,250
----------
ELECTRIC UTILITIES--4.5%
California Energy 5%, due 7/31/00, convertible............. 100,000 101,375
Midland Funding II, 11.75%, due 7/23/05.................... 200,000 210,514
----------
311,889
----------
FOOD & BEVERAGE--3.0%
Curtis-Burns Foods 12.25%, due 02/01/05.................... 200,000 205,000
----------
PAPER PRODUCTS--2.8%
Repap Wisconsin 9.875%, due 05/01/06....................... 200,000 191,000
----------
HEALTH CARE--2.7%
TheraTx Inc. 8.00%, due 02/01/02 convertible............... 200,000 183,500
----------
COMPUTER SOFTWARE--2.2%
Softkey 5.5%, due 11/1/00, convertible, 144A (d)........... 200,000 150,000
----------
ORGANIC CHEMICALS--1.5%
Thermoquest 5.00%, due 8/15/00............................. 100,000 105,000
----------
Total Corporate Bonds and Notes
(Cost $1,730,125)................................................... 1,640,639
----------
</TABLE>
COMMON STOCKS--61.6%
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ENVIRONMENTAL PRODUCTS & SERVICES--17.0%
Caraustar Industries, Inc.................................... 5,000 $ 100,000
Danka Business Systems, PLC
ADR (c)..................................................... 6,000 222,000
Memtec LTD ADR (c)........................................... 12,000 199,500
Minerals Technologies, Inc................................... 6,000 219,000
Mycogen Corporation (b)...................................... 10,000 170,000
Thermo Electron Corporation.................................. 5,000 260,000
----------
1,170,500
----------
COMMUNICATIONS--13.8%
Colonial Data Technologies (b)............................... 13,000 266,500
Frontier Corporation......................................... 5,000 150,000
Intelcom Group, Inc. (b)..................................... 10,000 123,750
Nokia Corp. ADR (c).......................................... 4,000 155,500
Reuters Holdings PLC ADR (c)................................. 2,000 110,250
Time Warner, Inc............................................. 100 3,788
Viacom Inc. Class B (b)...................................... 3,000 142,125
----------
951,913
----------
TECHNOLOGY--11.6%
Banyan Systems Inc. (b)...................................... 10,000 102,500
Checkpoint Systems, Inc. (b)................................. 5,000 186,875
Hewlett-Packard Co........................................... 1,000 83,750
Intel Corp................................................... 1,400 79,450
MEMC Electronic Materials (b)................................ 5,000 163,125
Teradyne Inc. (b)............................................ 7,500 186,562
----------
802,262
----------
FINANCIAL SERVICES--7.3%
Allamerica Financial Corporation............................. 4,000 108,000
American International Group, Inc............................ 750 69,375
MBIA, Inc.................................................... 700 52,500
Sirrom Capital Corporation................................... 12,000 226,500
State Street Boston Corp..................................... 1,000 45,000
----------
501,375
----------
FOOD & BEVERAGE--5.1%
PepsiCo, Inc................................................. 1,200 67,050
Wholefoods Market Inc. (b)................................... 15,000 208,125
Wholesome & Hearty Foods Inc. (b)............................ 10,000 76,250
----------
351,425
----------
</TABLE>
3
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS--(CONCLUDED)
DECEMBER 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
DESCRIPTION AMOUNT VALUE
<S> <C> <C>
U.S. TREASURY SECURITIES--9.5%
U.S. TREASURY NOTES--5.3%
6.750%, due 5/31/97....................................... $140,000 $ 142,931
7.000%, due 4/15/99....................................... 65,000 68,331
6.875%, due 7/31/99....................................... 150,000 157,500
----------
Total U.S. Treasury Notes (Cost $363,453) .......................... 368,762
----------
U.S. TREASURY BONDS--4.2%
8.000%, due 11/15/21...................................... $ 65,000 $ 81,372
7.250%, due 8/15/22....................................... 70,000 81,069
7.625%, due 11/15/22...................................... 105,000 126,853
----------
Total U.S. Treasury Bonds (Cost $256,799) .......................... 289,294
----------
Total U.S. Treasury Securities (Cost $620,252)...................... 658,056
----------
SHORT-TERM OBLIGATIONS--1.4%
REPURCHASE AGREEMENTS--1.4%
Salomon Brothers, 5.875%, dated 12/29/95, due 1/2/96, proceeds
$97,328 (collateralized by U.S. Treasury Bills with maturities from
06/06/96 through 06/13/96, value $99,467).......................... $ 97,264
----------
TOTAL INVESTMENTS (A)--96.3%
(Cost $6,279,972).................................................. 6,641,434
Other Assets Less Liabilities--3.7%................................. 254,676
----------
NET ASSETS--100.0%.................................................. $6,896,110
==========
</TABLE>
- -------
(a) The cost of securities for federal income tax purposes is $6,279,972
resulting in gross unrealized appreciation and depreciation of $640,983 and
$279,521 respectively, or net unrealized appreciation of $361,462.
(b) Non-income producing security.
(c) Securities whose values are determined or significantly influenced by
trading on exchanges not in the United States or Canada. ADR after the name
of a foreign holding stands for American Depository Receipt representing
foreign securities on deposit with a domestic custodian bank.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See Notes to Financial Statements
4
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments in securities, at value--
(cost $6,279,972) see accompanying portfolio....................... $6,641,434
Receivable for securities sold...................................... 210,717
Interest and dividends receivable................................... 65,095
----------
Total assets..................................................... 6,917,246
----------
LIABILITIES:
Accrued expenses.................................................... 14,518
Other payables...................................................... 6,618
----------
Total liabilities................................................ 21,136
----------
NET ASSETS.......................................................... $6,896,110
==========
NET ASSETS CONSIST OF:
Paid-in capital..................................................... $6,462,875
Distributions in excess of net investment income.................... (11,155)
Accumulated net realized gain on investments........................ 82,928
Net unrealized appreciation on investments.......................... 361,462
----------
NET ASSETS.......................................................... $6,896,110
==========
SHARES OUTSTANDING.................................................. 601,071
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE: ($6,896,110 / 601,071 shares)........ $ 11.47
==========
</TABLE>
GREEN CENTURY BALANCED FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income....................................................... $101,245
Dividend income....................................................... 15,365
--------
Total investment income............................................ 116,610
--------
EXPENSES:
Investment advisory fee (Note 2)...................................... 23,386
Administrative services fee (Note 2).................................. 47,100
Distribution fee (Note 2)............................................. 7,795
--------
Total expenses..................................................... 78,281
--------
NET INVESTMENT INCOME................................................. 38,329
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain, identified cost basis.............................. 194,177
Unrealized appreciation of investments................................ 10,860
--------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 205,037
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $243,366
========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1995 JUNE 30, 1995
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income......................... $ 38,329 $ 29,855
Net realized gain (loss) on investments....... 194,177 (2,054)
Net increase (decrease) in unrealized appreci-
ation (depreciation)......................... 10,860 406,299
---------- ----------
Net increase (decrease) resulting from opera-
tions........................................ 243,366 434,100
---------- ----------
Dividends to Shareholders from Net Investment
Income........................................ (50,630) (28,835)
---------- ----------
Capital Share Transactions:
Proceeds from sales of shares................. 3,760,732 357,873
Reinvestment of dividends from net investment
income....................................... 44,012 27,917
Cost of shares redeemed....................... (391,893) (651,381)
---------- ----------
Net increase (decrease) resulting from capital
share transactions........................... 3,412,851 (265,591)
---------- ----------
Total Increase in Net Assets................... 3,605,587 139,674
NET ASSETS:
Beginning of period........................... 3,290,523 3,150,849
---------- ----------
End of period (including undistributed
(overdistributed) net investment income of
$(11,155) for the period ended December 31,
1995 and $1,146 for the year ended
June 30, 1995)............................... $6,896,110 $3,290,523
========== ==========
</TABLE>
GREEN CENTURY BALANCED FUND FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE MARCH 18, 1992
SIX MONTHS FOR THE YEAR ENDED JUNE 30, (COMMENCEMENT
ENDED ------------------------------ OF OPERATIONS)
DECEMBER 31, 1995 1995 1994 1993 TO JUNE 30, 1992
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of period......... $11.03 $ 9.68 $10.14 $ 9.84 $10.00
Income from investment
operations:
Net investment income.. 0.062 0.100 0.072 0.061 0.019
Net realized and
unrealized gain (loss)
on investments........ 0.463 1.346 (0.459) 0.303 (0.164)
------- ------- -------- ------- --------
Total increase
(decrease) from
investment operations.. 0.525 1.446 (0.387) 0.364 (0.145)
------- ------- -------- ------- --------
Less dividends:
Dividends from net
investment income..... (0.085) (0.096) (0.073) (0.064) (0.015)
------- ------- -------- -------- --------
Net Asset Value, end of
period................. $11.47 $11.03 $ 9.68 $10.14 $ 9.84
======= ======= ======== ======= =======
Total return............ 4.78%(a) 15.00% -3.83% 3.69% -1.45%(a)
Ratios/supplemental data
Net assets, end of pe-
riod (000's).......... $6,896 $3,291 $ 3,151 $ 2,821 $ 547
Ratio of expenses to
average net assets.... 2.50%(b) 2.50% 2.50% 2.50% 2.50%(b)
Ratio of net investment
income to average net
assets................ 1.23%(b) 0.97% 0.74% 0.85% 1.13%(b)
Portfolio Turnover...... 70% 16% 14% 11% 2%
</TABLE>
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
6
<PAGE>
GREEN CENTURY EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in Domini Social Index Portfolio, at value (Note 1)........ $324,498
--------
Total assets....................................................... 324,498
--------
LIABILITIES:
Accrued expenses (Note 2)............................................. 219
--------
Total liabilities.................................................. 219
--------
NET ASSETS............................................................ $324,279
========
NET ASSETS CONSIST OF:
Paid-in capital....................................................... $310,136
Undistributed net investment income................................... 115
Accumulated net realized gain on investment........................... 805
Net unrealized appreciation on investment............................. 13,223
--------
NET ASSETS............................................................ $324,279
========
SHARES OUTSTANDING.................................................... 29,619
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE: ($324,279 / 29,619 shares)............. $ 10.95
========
</TABLE>
GREEN CENTURY EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD SEPTEMBER 13, 1995 (COMMENCEMENT OF OPERATIONS)
TO JANUARY 31,
1996 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME FROM INDEX PORTFOLIO:
Investment income from Index Portfolio................................. $ 885
Expenses from Index Portfolio.......................................... (230)
-------
Net investment income............................................... 655
-------
EXPENSES:
Administrative services fee (Note 2)................................... 446
-------
Total expenses...................................................... 446
-------
NET INVESTMENT INCOME.................................................. 209
-------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT:
Net realized gain...................................................... 805
Unrealized appreciation................................................ 13,223
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT.................. 14,028
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $14,237
=======
</TABLE>
See Notes to Financial Statements
7
<PAGE>
GREEN CENTURY EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 13, 1995
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1996
(UNAUDITED)
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income...................................... $ 209
Net realized gain on investments........................... 805
Net increase in unrealized appreciation.................... 13,223
--------
Net increase resulting from operations..................... 14,237
--------
Dividends to Shareholders from Net Investment Income........ (94)
--------
Capital Share Transactions:
Proceeds from sales of shares.............................. 310,135
Reinvestment of dividends from net investment income....... 91
Cost of shares redeemed.................................... (90)
--------
Net increase (decrease) resulting from capital share trans-
actions................................................... 310,136
--------
Total Increase in Net Assets................................ 324,279
NET ASSETS:
Beginning of period........................................ 0
--------
End of period (including undistributed net investment in-
come of $115 for the period ended
January 31, 1996)......................................... $324,279
========
</TABLE>
GREEN CENTURY EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 13, 1995
(COMMENCEMENT OF
OPERATIONS)
TO JANUARY 31, 1996
(UNAUDITED)
<S> <C>
Net Asset Value, beginning of period........................ $10.00
Income from investment operations:
Net investment income...................................... 0.010
Net realized and unrealized gain (loss) on investments..... 0.946
--------
Total increase (decrease) from investment operations....... 0.956
--------
Less dividends:
Dividends from net investment income....................... (0.006)
Net Asset Value, end of period.............................. $10.95
========
Total return................................................ 9.56%(a)
Ratios/supplemental data
Net assets, end of period (000's).......................... $324
Ratio of expenses to average net assets.................... 1.50%(b)
Ratio of net investment income to average net assets....... 0.46%(b)
</TABLE>
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
8
<PAGE>
GREEN CENTURY BALANCED FUND/DECEMBER 31, 1995
GREEN CENTURY EQUITY FUND/JANUARY 31, 1996
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Green Century Funds (the "Trust") is a Massachusetts business trust which
offers two separate series, the Green Century Equity Fund and the Green Century
Balanced Fund. The Trust is registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management investment company. The
Trust accounts separately for the assets, liabilities and operations of each
series. The Balanced Fund commenced operations on March 18, 1992 and the Equity
Fund commenced operations on September 13, 1995.
The Equity Fund invests substantially all of its assets in the Domini Social
Index Portfolio (the "Index Portfolio"), an open-end, diversified management
investment company having the same investment objective as the Fund. The value
of such investment reflects the Fund's proportionate interest in the net assets
of the Index Portfolio (0.44% at January 31, 1996). The financial statements of
the Index Portfolio are included elsewhere in this report and should be read in
conjunction with the Equity Fund's financial statements.
The following is a summary of the significant accounting policies of the
Trust:
(A) BALANCED FUND INVESTMENT VALUATION : Equity securities listed on
national securities exchanges or reported through the NASDAQ system are
valued at last sale price. Unlisted securities or listed securities for
which last sale prices are not available are valued at the mean between
the closing bid and asked prices if such securities are listed on a
national exchange, and at last quoted bid prices in the case of
securities not listed on a national exchange. Debt securities (other
than short-term obligations maturing in sixty days or less, but
including listed issues) are valued on the basis of valuation furnished
by a pricing service which takes into account appropriate factors such
as institution-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, and other market data,
without exclusive reliance on quoted prices or exchange or over-the-
counter prices, since such valuations are believed to reflect more
accurately the fair value of the securities. Securities, if any, for
which there are no such valuations or quotations available are valued
at fair value as determined in good faith under guidelines established
by the Trustees. Short-term obligations maturing in sixty days or less
are valued at amortized cost, which approximates market value.
EQUITY FUND INVESTMENT VALUATION: Valuation of securities by the Index
Portfolio is discussed in Note 1 of the Index Portfolio's Notes to
Financial Statements which are included elsewhere in this report.
(B) BALANCED FUND 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 is recognized on the accrual basis and
dividend income is recorded on ex-dividend date.
EQUITY FUND SECURITIES TRANSACTIONS AND INVESTMENT INCOME: The Fund earns
income, net of Index Portfolio expenses, daily based on its investment
in the Index Portfolio.
(C) DISTRIBUTIONS: Distributions to shareholders are recorded on ex-
dividend date. 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 generally
accepted accounting principles. These differences are attributable to
permanent book and tax accounting differences. The Funds declare and
pay dividends of net investment income semi-annually and distribute net
realized capital gains, if any, annually.
9
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
(D) FEDERAL TAXES: Each series of the Trust is treated as a separate entity
for Federal income tax purposes. Each Fund's policy is to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies. Accordingly, no provisions for Federal income or
excise tax are necessary.
NOTE 2--TRANSACTIONS WITH AFFILIATES
(A) INVESTMENT ADVISER: Green Century Capital Management, Inc. ("Green
Century") is the Adviser for the Balanced Fund ("the Adviser") and
oversees the portfolio management of the Fund on a day-to-day basis.
For these services, Green Century receives a fee, accrued daily and
paid monthly, at an annual rate equal to 0.75% of the Balanced Fund's
average daily net assets.
(B) SUBADVISER: Winslow Management Company ("Winslow"), a division of Eaton
Vance Management, is the subadviser for the Balanced Fund. For its
services, Winslow is paid a fee at an annual rate equal to 0.40% of the
average daily net assets of the Balanced Fund, subject to an adjustment
up or down of 0.20% annually. For the six months ended December 31,
1995, Green Century accrued fees of $12,472 to Winslow.
(C) ADMINISTRATOR: Green Century Capital Management is 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, fees under the Distribution Plan,
interest, taxes, brokerage costs and other capital expenses, expenses
of non-interested trustees (including counsel fees) and any
extraordinary expenses. For these services, Green Century receives a
fee from the Balanced Fund at an annual rate equal to 1.50% of the
Fund's average daily net assets, and receives a fee from the Equity
Fund at a rate such that immediately following any payment to the
Administrator, the combined total operating expenses of the Fund and
the Index Portfolio (including investment advisory and distribution
fees and any amortization of organization expenses), on an annual
basis, do not exceed 1.50% of the Fund's average daily net assets.
(D) SUBADMINISTRATOR: Pursuant to a Subadministrative Services Agreement
with the Administrator, Signature Broker-Dealer Services, Inc.
("Signature"), as Subadministrator, is responsible for conducting
certain day-to-day administration of the Trust subject to the
supervision and direction of the Administrator. Signature also pays the
salaries of officers of the Trust who are affiliated with Signature.
For the six months ended December 31, 1995, Green Century accrued fees
of $4,677 to Signature relating to services performed on behalf of the
Balanced Fund, and for the period from September 13, 1995 (commencement
of operations) to January 31, 1996, Green Century accrued fees of $68
to Signature relating to services performed on behalf of the Equity
Fund.
(E) DISTRIBUTION PLAN: The Trust has adopted a Distribution Plan (the
"Plan") with respect to the Balanced Fund in accordance with Rule 12b-1
under the Act. The Plan provides that the Balanced Fund will pay a fee
to Signature, as distributor of shares of the Balanced Fund, at an
annual rate not to exceed 0.25% of the Balanced Fund's average daily
net assets. The fee is reimbursement for, or in anticipation of,
expenses incurred for distribution-related activity. For the six months
ended December 31, 1995, the Balanced Fund accrued and paid $7,795 to
Signature for services provided pursuant to the Plan.
10
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)
NOTE 3--INVESTMENT TRANSACTIONS
The Balanced Fund's purchases and sales of securities, other than short-term
securities, aggregated $7,166,286 and $3,725,617, respectively for the six
months ended December 31, 1995. At June 30, 1995 the Balanced Fund had capital
loss carryforwards for federal income tax purposes of $111,249 of which $373
expires in 2001, $85,803 in 2002, and $25,073 in 2003.
Additions and reductions in the Equity Fund's investment in the Index
Portfolio aggregated $310,135 and $318 for the period from September 13, 1995
(commencement of operations) to January 31, 1996.
NOTE 4--CAPITAL SHARE TRANSACTIONS
Capital share transactions for the Balanced Fund and the Equity Fund were as
follows:
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND
------------------------------- -------------------
FOR THE PERIOD
FOR THE SEPTEMBER 13, 1995
SIX MONTHS FOR THE (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS)
DECEMBER 31, 1995 JUNE 30, 1995 TO JANUARY 31, 1996
<S> <C> <C> <C>
Shares sold................. 333,383 35,170 29,619
Reinvestment of dividends... 3,919 2,696 9
Shares redeemed............. (34,673) (64,908) (8)
------- ------- ------
302,629 (27,042) 29,620
======= ======= ======
</TABLE>
11
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1996 (UNAUDITED)
COMMON STOCKS--98.4%
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
APPAREL--0.8%
Brown Group Inc............................................... 400 $ 5,500
Hartmax Corp. (b)............................................. 600 2,325
Lands' End Inc................................................ 800 11,700
Liz Claiborne, Inc............................................ 2,400 66,900
Nike Inc. (Class B)........................................... 4,400 306,900
Oshkosh B'Gosh, Inc........................................... 300 5,100
Phillips-Van Heusen Corp...................................... 600 6,300
Reebok International Ltd...................................... 2,500 67,500
Russell Corp.................................................. 1,400 38,500
Stride Rite Corp.............................................. 1,200 9,900
Timberland Co................................................. 250 4,719
VF Corp....................................................... 1,950 98,475
---------
623,819
---------
COMMERCIAL PRODUCTS & SERVICES--1.7%
Autodesk Inc.................................................. 1,400 42,350
Banta Corp.................................................... 700 29,575
Cintas Corp................................................... 1,400 64,400
Deluxe Corp................................................... 2,600 76,375
Donnelley, R.R. & Sons........................................ 4,800 172,200
Harland (J.H.) Co............................................. 900 19,800
HON Industries Inc............................................ 800 16,600
Kelly Services (Class A)...................................... 1,475 42,775
Miller, (Herman) Inc.......................................... 800 25,600
Moore Corp., Ltd.............................................. 3,300 65,175
National Education Corporation................................ 600 5,400
National Service Industries, Inc.............................. 1,700 59,287
New England Business Services, Inc............................ 300 5,325
Pitney Bowes Inc.............................................. 4,900 221,725
Standard Register Co.......................................... 700 13,475
Xerox Corp.................................................... 3,300 407,962
---------
1,268,024
---------
CONSTRUCTION--0.3%
Centex Corp................................................... 900 29,025
Fleetwood Enterprises, Inc.................................... 1,300 33,150
Graco Inc..................................................... 500 13,875
Kaufman & Broad Home Corp..................................... 800 12,800
Rouse Co...................................................... 1,700 31,662
Sherwin-Williams Co........................................... 2,500 105,313
TJ International Inc.......................................... 400 6,500
---------
232,325
---------
CONSUMER PRODUCTS & SERVICES--0.1%
Avery Dennison Corp........................................... 1,700 90,738
ISCO Inc...................................................... 200 1,850
Tennant Co.................................................... 200 4,750
---------
97,338
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ENERGY--3.7%
Amoco Corp.................................................. 15,600 $ 1,097,850
Anadarko Petroleum Corp..................................... 1,800 90,900
Apache Corp................................................. 2,300 61,812
Atlantic Richfield Co....................................... 5,000 568,125
Consolidated Natural Gas Co................................. 2,900 130,500
ENERGEN Corp................................................ 300 7,463
Enron Corp.................................................. 8,100 299,700
Helmerich & Payne Inc....................................... 900 28,350
Louisiana Land & Exploration Co............................. 1,200 51,600
Oryx Energy Company (b)..................................... 3,100 40,688
Pennzoil Co................................................. 1,600 65,000
Rowan Companies Inc. (b).................................... 2,700 29,363
Santa Fe Energy Resources Inc. (b).......................... 2,500 24,062
Sun Company................................................. 3,000 81,750
Williams Companies Inc. (The)............................... 3,100 146,088
-----------
2,723,251
-----------
FINANCIAL--11.2%
Ahmanson (H.F.) & Co........................................ 4,100 98,400
American Express Co......................................... 15,200 699,200
Banc One Corp............................................... 12,823 485,671
Bank of Boston.............................................. 3,600 164,700
BankAmerica Corp............................................ 11,500 774,813
Bankers Trust (N.Y.) Corp................................... 2,500 162,188
Barnett Banks Inc........................................... 3,100 181,350
Beneficial Corp............................................. 1,600 78,200
Block (H. & R.), Inc........................................ 3,200 118,000
Cincinnati Financial Corp................................... 1,705 106,989
CoreStates Financial Corp................................... 4,300 172,000
Dime Bancorp Inc. (b)....................................... 3,200 37,200
Edwards (A.G.), Inc......................................... 2,225 55,903
Federal National Mortgage Assoc............................. 34,500 1,190,250
Fifth Third Bancorp......................................... 3,300 156,131
First Chicago Corp.......................................... 10,106 392,892
First Fed Financial Corp. (b)............................... 200 2,725
Golden West Financial Corp.................................. 1,900 98,325
Great Western Financial Corp................................ 4,200 100,800
Household International Inc................................. 3,050 197,869
Mellon Bank Corp............................................ 4,400 233,200
Merrill Lynch & Co., Inc.................................... 5,500 312,812
Morgan (J.P.) & Co., Inc.................................... 5,900 479,375
Norwest Corp................................................ 11,000 378,125
PNC Bank Corp............................................... 10,600 318,000
Piper Jaffray Inc........................................... 300 4,125
ReliaStar Financial Corp.................................... 1,100 51,838
Schwab (Charles) Corp....................................... 5,300 132,500
Student Loan Marketing Association.......................... 1,950 143,569
SunTrust Banks Inc.......................................... 3,500 241,938
Transamerica Corp........................................... 2,100 159,862
Value Line Inc.............................................. 300 11,700
Vermont Financial Services Corp............................. 100 3,200
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1996 (UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
FINANCIAL--CONTINUED
Wachovia Corp................................................. 5,300 $ 237,175
Wells Fargo & Co.............................................. 1,400 328,475
Wesco Financial Corp.......................................... 200 34,500
----------
8,344,000
----------
FOODS & BEVERAGES--10.2%
Archer-Daniels-Midland Co..................................... 1 19
Ben & Jerry's (Class A) (b)................................... 100 1,625
CPC International Inc......................................... 4,600 334,650
Campbell Soup Co.............................................. 7,700 487,988
Coca-Cola Company............................................. 39,300 2,962,237
Fleming Cos. Inc.............................................. 1,200 22,800
General Mills, Inc............................................ 5,200 299,000
Heinz (H.J.) Company.......................................... 11,800 405,625
Hershey Foods Corp............................................ 2,500 176,875
Kellogg Co.................................................... 6,700 513,388
Odwalla Inc................................................... 300 5,325
PepsiCo., Inc................................................. 24,700 1,472,737
Quaker Oats Co................................................ 4,100 140,937
Ralston Purina Group.......................................... 3,500 225,313
Smucker (J.M.) Co. (Class A).................................. 1,000 20,750
Super Valu Inc................................................ 2,300 71,300
Sysco Corp.................................................... 5,700 182,400
TCBY Enterprises, Inc......................................... 500 2,000
Tootsie Roll Industries, Inc.................................. 618 24,109
Wrigley, (Wm.) Jr. Co......................................... 3,600 214,200
----------
7,563,278
----------
HEALTH CARE--9.5%
Acuson Corp. (b).............................................. 1,000 14,875
Allergan Inc.................................................. 1,900 63,175
Alza Corp. (b)................................................ 2,800 79,100
Angelica Corp................................................. 300 6,075
Apogee Enterprises, Inc....................................... 300 5,250
Becton Dickinson & Company.................................... 2,000 172,750
Bergen Brunswig Corp. (Class A)............................... 1,245 32,837
Biomet Inc. (b)............................................... 3,800 71,250
Community Psychiatric Centers (b)............................. 1,000 11,500
Forest Laboratories, Inc. (b)................................. 1,500 81,000
Humana Inc. (b)............................................... 5,000 138,125
Johnson & Johnson............................................. 20,300 1,948,800
Manor Care Inc................................................ 2,100 82,425
Medtronic Inc................................................. 7,200 411,300
Merck & Co., Inc.............................................. 38,700 2,718,675
Mylan Laboratories Inc........................................ 3,600 68,400
Oxford Health Plans........................................... 1,100 75,900
Schering-Plough Corp.......................................... 11,400 617,025
St. Jude Medical Inc.......................................... 2,100 92,663
Stryker Corp.................................................. 1,600 89,400
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
HEALTH CARE--CONTINUED
Sunrise Medical Inc. (b)..................................... 600 $ 11,325
US Healthcare Inc............................................ 4,900 237,650
United American Healthcare................................... 200 2,200
----------
7,031,700
----------
HOUSEHOLD GOODS--5.9%
Alberto Culver Co. (Class B)................................. 700 25,200
Avon Products, Inc........................................... 2,100 165,900
Bassett Furniture Industries, Inc............................ 300 7,350
Church & Dwight Co., Inc..................................... 900 17,437
Clorox Co.................................................... 1,600 132,200
Colgate-Palmolive Co......................................... 4,600 340,400
Handleman Co................................................. 700 4,463
Harman International Industries, Inc......................... 630 24,176
Hasbro Inc................................................... 2,800 116,200
Huffy Corp................................................... 300 3,300
Kimberly-Clark Corp.......................................... 8,732 704,018
Leggett & Platt Inc.......................................... 2,500 60,000
Mattel, Inc.................................................. 6,969 224,750
Maytag Co.................................................... 3,400 66,725
Newell Co.................................................... 5,100 134,513
Oneida, Ltd.................................................. 200 3,100
Procter & Gamble Co.......................................... 21,600 1,811,700
Rubbermaid Inc............................................... 5,200 147,550
Shaw Industries.............................................. 4,700 59,337
Snap-On Tools Corp........................................... 1,300 57,038
Springs Industries Inc. (Class A)............................ 600 24,000
Stanhome, Inc................................................ 600 16,050
Stanley Works (The).......................................... 1,400 72,100
Thomas Industries............................................ 200 4,275
Whirlpool Corp............................................... 2,300 125,062
----------
4,346,844
----------
INSURANCE--6.5%
Aetna Life & Casualty Co..................................... 3,600 268,200
Alexander & Alexander Services Inc........................... 1,400 27,125
American General Corp........................................ 6,300 237,825
American International Group, Inc............................ 14,800 1,433,750
Chubb Corp................................................... 2,700 280,125
CIGNA Corp................................................... 2,350 278,769
General Re Corp.............................................. 2,600 397,800
Hartford Steam Boiler........................................ 600 31,350
Jefferson-Pilot Corp......................................... 2,250 112,219
Lincoln National Corp........................................ 3,200 169,200
Marsh & McLennan Companies, Inc.............................. 2,300 209,300
Providian Corp............................................... 3,100 136,012
SAFECO Corp.................................................. 3,800 136,325
St. Paul Companies........................................... 2,700 153,900
Torchmark Corp............................................... 2,200 104,225
Travelers Corp............................................... 9,909 651,517
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1996 (UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
INSURANCE--CONTINUED
UNUM Corp..................................................... 2,300 $ 141,450
USF&G Corp.................................................... 3,400 54,400
USLIFE Corp................................................... 1,125 36,141
----------
4,859,633
----------
MANUFACTURING--2.1%
Applied Materials, Inc. (b)................................... 5,900 218,300
Briggs & Stratton Corp........................................ 800 35,100
Boston Scientific Corp........................................ 5,400 276,750
Cincinnati Milacron........................................... 900 21,487
Clarcor, Inc.................................................. 300 6,188
Deere & Co.................................................... 8,400 315,000
Dionex Corp. (b).............................................. 400 15,000
Fastenal Co................................................... 1,200 40,650
Goulds Pumps, Inc............................................. 600 13,350
Hunt Manufacturing Co......................................... 400 6,400
Illinois Tool Works Inc....................................... 3,600 220,950
James River Corp. of Virginia................................. 2,600 68,250
Lawson Products, Inc.......................................... 300 7,200
Millipore Corp................................................ 1,500 64,125
Nordson Corp.................................................. 500 27,000
Thermo Electron Corp.......................................... 2,700 147,150
Watts Industries Inc. (Class A)............................... 1,000 17,375
Wellman Inc................................................... 1,000 20,000
Zum Industries Inc............................................ 400 8,950
----------
1,529,225
----------
MEDIA--5.5%
BET Holdings Inc. (Class B) (b)............................... 800 19,600
Capital Cities/ABC, Inc....................................... 4,600 591,675
Comcast Corp. (Class A)....................................... 7,700 154,963
Disney (Walt) Company (The)................................... 16,300 1,047,275
Dow Jones & Co. Inc........................................... 3,300 129,112
Frontier Corp................................................. 5,000 148,750
Gannett Co., Inc.............................................. 4,400 279,400
King World Productions Inc. (b)............................... 1,100 47,300
Knight-Ridder Inc............................................. 1,600 106,200
Lee Enterprises, Inc.......................................... 1,400 29,225
McGraw-Hill Inc............................................... 1,500 133,500
Media General Inc. (Class A).................................. 800 26,700
Meredith Corp................................................. 800 36,400
New York Times Co. (The) (Class A)............................ 2,900 84,100
Scholastic Corp............................................... 500 36,500
Tele-Communications, Inc.
(Class A) (b)................................................ 20,000 422,500
Times Mirror Co. (Class A).................................... 3,500 108,500
Turner Broadcasting System Inc.
(Class A).................................................... 5,000 135,000
US West Media Group (b)....................................... 14,900 314,762
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
MEDIA--CONTINUED
Viacom Inc. (b).............................................. 2,500 $ 100,000
Washington Post Co. (The) (Class B).......................... 350 101,325
----------
4,052,787
----------
MISCELLANEOUS--1.9%
Alco Standard Corp........................................... 3,700 145,225
Allwaste, Inc. (b)........................................... 1,200 5,700
American Greetings Corp. (Class A)........................... 2,450 66,762
Avnet, Inc................................................... 1,300 55,738
Bemis Co., Inc............................................... 1,800 50,850
CPI Corp..................................................... 400 5,900
Cross, A.T. Co. (Class A).................................... 500 7,313
DeVRY Inc. (b)............................................... 400 10,900
Fedders Corp................................................. 600 3,600
Fuller (H.B.) Co............................................. 500 18,125
General Signal Corp.......................................... 1,650 55,687
Groundwater Technology, Inc.................................. 200 2,650
Harcourt General Inc......................................... 2,400 93,600
Hillenbrand Industries Inc................................... 2,400 79,800
Ionics Inc. (b).............................................. 400 16,050
Jostens Inc.................................................. 1,400 32,200
KENETECH Corp. (b)........................................... 900 1,125
Marriott International Corp.................................. 3,900 167,213
Omnicom Group, Inc........................................... 2,400 92,700
Polaroid Corporation......................................... 1,350 60,581
Premier Industrial Corp...................................... 2,850 87,637
Sealed Air Corp. (b)......................................... 1,400 41,125
Service Corp. International.................................. 3,900 169,163
Sonoco Products Co........................................... 3,005 80,384
Toro Co. (The)............................................... 300 10,425
Whitman Corp................................................. 3,100 70,525
----------
1,430,978
----------
RESOURCE DEVELOPMENT--2.6%
Air Products & Chemicals, Inc................................ 3,500 186,812
Aluminum Co. of America...................................... 5,600 310,800
ARCO Chemical Company........................................ 3,000 155,625
Battle Mountain Gold Co...................................... 2,400 25,500
Betz Laboratories, Inc....................................... 1,000 41,375
Cabot Corp................................................... 1,200 69,000
Calgon Carbon Corp........................................... 1,200 13,350
Consolidated Papers Inc...................................... 1,600 87,200
Cyprus Amax Minerals Co...................................... 3,000 79,500
Echo Bay Mines Ltd........................................... 3,900 50,213
Inland Steel Industries Inc.................................. 1,500 42,937
Mead Corp.................................................... 1,600 88,400
Morton International Inc..................................... 4,600 170,200
Nalco Chemical Co............................................ 2,300 70,437
Nucor Corp................................................... 2,700 156,938
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1996 (UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
RESOURCE DEVELOPMENT--CONTINUED
Praxair Inc................................................... 4,500 $ 153,000
Sigma-Aldrich Corp............................................ 1,500 78,750
Westvaco Corp................................................. 3,000 87,000
Worthington Industries, Inc................................... 2,700 56,700
----------
1,923,737
----------
RETAIL--9.9%
Albertson's, Inc.............................................. 8,000 273,000
American Stores Co............................................ 4,900 127,400
Bob Evans Farms, Inc.......................................... 1,200 20,100
Charming Shoppes Inc.......................................... 2,500 6,875
Circuit City Stores Inc....................................... 3,100 79,825
Claire's Stores Inc........................................... 500 9,562
Dayton-Hudson Corp............................................ 2,200 164,450
Dillard Department Stores..................................... 3,500 101,500
Dollar General Corp........................................... 1,956 48,655
Egghead Inc. (b).............................................. 300 1,838
Gap, Inc. (The)............................................... 4,400 207,350
Giant Food Inc. (Class A)..................................... 2,100 67,200
Gibson Greetings Inc.......................................... 500 7,750
Great Atlantic & Pacific Tea Co., Inc......................... 1,200 28,200
Hannaford Brothers Co......................................... 1,300 35,263
Hechinger Co. (Class A)....................................... 800 4,600
Home Depot, Inc. (The)........................................ 14,833 682,318
International Dairy Queen, Inc.
(Class A) (b)................................................ 600 13,050
K-Mart Corp................................................... 13,300 78,137
Kroger Co. (b)................................................ 4,000 139,000
Lillian Vernon Corp........................................... 200 2,700
Limited, Inc. (The)........................................... 11,150 186,762
Longs Drug Stores, Inc........................................ 700 31,675
Lowe's Companies, Inc......................................... 4,900 152,513
Luby's Cafeterias, Inc........................................ 1,000 21,000
May Department Stores Co...................................... 7,700 342,650
McDonald's Corp............................................... 22,000 1,105,500
Melville Corp................................................. 3,200 91,200
Mercantile Stores Co., Inc.................................... 1,200 56,550
Morrison Restaurants Inc...................................... 1,000 16,000
Nordstrom Inc................................................. 2,700 105,975
Penney, J.C. Co., Inc......................................... 6,850 335,650
Pep Boys-Manny, Moe & Jack.................................... 2,250 65,250
Petrie Stores Corp............................................ 1,200 2,550
Price/Costco Inc. (b)......................................... 5,865 91,641
Ryan's Family Steakhouse, Inc. (b)............................ 1,300 9,100
Sears Roebuck & Co............................................ 12,200 506,300
Skyline Corp.................................................. 200 4,150
Specs Music Inc. (b).......................................... 200 475
Starbucks Corp................................................ 2,000 33,500
TJX Companies Inc. (The)...................................... 2,600 49,075
Tandy Corp.................................................... 2,000 76,500
Toys "R' Us, Inc. (b)......................................... 8,770 194,036
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
RETAIL--CONTINUED
Wal-Mart Stores, Inc........................................ 71,900 $ 1,464,963
Walgreen Co................................................. 7,700 268,537
Whole Foods Market (b)...................................... 300 4,462
Woolworth (F.W.) Co......................................... 4,000 45,000
-----------
7,359,787
-----------
TECHNOLOGIES--14.1%
Advanced Micro Devices, Inc. (b)............................ 4,100 81,487
Amdahl Corp. (b)............................................ 3,900 28,519
American Power Conversion
Corp. (b) 2,900 25,194
Analog Devices, Inc......................................... 3,600 81,000
Apple Computer, Inc......................................... 3,800 104,975
Automatic Data Processing, Inc.............................. 8,900 354,888
Baldor Electric Co.......................................... 1,050 21,525
Borland International, Inc. (b)............................. 1,200 22,350
Caliber Systems Inc......................................... 1,100 41,800
Cisco Systems, Inc. (b)..................................... 8,700 724,275
Compaq Computer Corp. (b)................................... 8,400 395,850
Computer Assoc. International Inc........................... 7,600 519,650
Cooper Industries Inc....................................... 3,600 135,450
DSC Communications Corp. (b)................................ 3,950 115,044
Digital Equipment Corp. (b)................................. 4,800 347,400
Grainger, (W.W.) Inc........................................ 1,600 107,800
Hewlett-Packard Co.......................................... 16,000 1,356,000
Hubbell Inc. (Class B)...................................... 1,130 75,993
Intel Corp.................................................. 25,700 1,419,522
International Business Machines, Inc........................ 17,800 1,935,750
MCI Communications Corp..................................... 21,400 612,575
Micron Technology, Inc...................................... 6,500 222,625
Molex, Inc.................................................. 3,000 96,750
National Semiconductor Corp................................. 4,200 72,450
Novell Inc. (b)............................................. 11,300 152,550
Perkin-Elmer Corp........................................... 1,400 66,150
Quarterdeck Corp. (b)....................................... 1,000 16,000
Raychem Corp................................................ 1,400 93,625
Shared Medical Systems Corp................................. 800 45,600
Solectron Corp. (b)......................................... 1,500 69,000
Sprint Corp................................................. 10,900 470,062
Stratus Computer Inc. (b)................................... 700 18,550
Sun Microsystems Inc. (b)................................... 5,900 271,400
Tandem Computers Inc. (b)................................... 3,400 31,875
Tektronix, Inc.............................................. 1,000 45,750
Tellabs, Inc. (b)........................................... 2,800 123,200
Thomas & Betts Corp......................................... 600 47,175
Xilinx Inc. (b)............................................. 2,400 92,700
-----------
10,442,509
-----------
TRANSPORTATION--2.2%
AMR Corp. (b)............................................... 2,500 190,000
Airborne Freight Corp....................................... 600 15,975
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1996 (UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
TRANSPORTATION--CONTINUED
Alaska Air Group, Inc. (b)..................................... 300 $ 5,925
CSX Corp....................................................... 6,700 310,712
Conrail Inc.................................................... 2,700 191,025
Consolidated Freightways, Inc.................................. 1,500 34,500
Delta Air Lines, Inc........................................... 1,600 109,400
Federal Express Corp. (b)...................................... 1,900 144,637
GATX Corp...................................................... 600 27,750
Norfolk Southern Corp.......................................... 4,100 323,387
Roadway Services............................................... 550 6,050
Ryder System, Inc.............................................. 2,700 63,113
Southwest Airlines Inc......................................... 4,800 124,800
UAL Corp. (b).................................................. 450 72,450
Yellow Corp.................................................... 600 7,200
---------
1,626,924
---------
UTILITIES--9.6%
American Water Works Co., Inc.................................. 1,200 45,750
Ameritech Corp................................................. 17,300 1,040,163
Atlanta Gas & Light Co......................................... 2,000 40,500
Bell Atlantic Corp............................................. 13,700 943,587
BellSouth Corp................................................. 31,100 1,333,413
Brooklyn Union Gas Company (The)............................... 1,650 46,200
California Energy Co., Inc. (b)................................ 1,700 34,000
Citizens Utilities Co. (Class A) (b)........................... 7,287 88,357
Connecticut Energy Corp........................................ 200 4,200
Eastern Enterprises............................................ 900 31,050
El Paso Natural Gas Co......................................... 1,000 32,375
Equitable Resources Inc........................................ 1,200 34,050
Idaho Power Co................................................. 1,400 43,050
LG & E Energy Corp............................................. 1,100 47,437
MCN Corp....................................................... 2,100 51,712
NICOR Inc...................................................... 1,900 51,775
Noram Energy Corp.............................................. 4,300 37,625
Northwestern Public Service Co................................. 200 5,850
NYNEX.......................................................... 13,500 723,938
Oklahoma Gas & Electric Co..................................... 1,200 50,400
ONEOK Inc...................................................... 700 14,612
Pacific Enterprises............................................ 2,500 69,375
Pacific Telesis Group.......................................... 13,300 392,350
Peoples Energy Corp............................................ 1,200 39,150
Potomac Electric Power Co...................................... 3,600 97,200
Public Service Co. of Colorado................................. 2,100 75,600
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
UTILITIES--CONTINUED
SBC Telecommunications.................................... 19,200 $ 1,087,200
Southern New England Telecom.............................. 2,000 80,000
Telephone & Data Systems.................................. 1,800 73,125
US West Communications Group.............................. 14,700 516,338
Washington Gas Light Co................................... 1,200 26,250
-----------
7,156,632
-----------
VEHICLE COMPONENTS--0.6%
Cooper Tire & Rubber Co................................... 2,550 63,112
Cummins Engine Inc........................................ 1,450 56,006
Dana Corp................................................. 3,100 101,913
Federal-Mogul Corp........................................ 1,100 21,312
Genuine Parts............................................. 3,800 169,100
Modine Manufacturing Co................................... 800 20,200
SPX Corp.................................................. 200 2,950
Smith, A.O................................................ 600 15,075
Spartan Motors Inc. (b)................................... 300 2,887
-----------
452,555
-----------
Total Common Stocks (Cost $56,214,285)........................... 73,065,346
-----------
PREFERRED STOCK--0.6%
FEDERAL SPONSORED CREDIT--0.6%
Federal Home Loan Mortgage Corp........................... 5,600 479,500
-----------
Total Preferred Stocks (Cost $309,353)........................... 479,500
-----------
TOTAL INVESTMENTS (A)--99.0%
(Cost $56,523,638).............................................. 73,544,846
Other Assets Less Liabilities--1.0%.............................. 740,826
-----------
NET ASSETS--100.0%............................................... $74,285,672
===========
</TABLE>
- -------
(a) The aggregate cost for federal income tax purposes is $56,523,637, the
aggregate gross unrealized appreciation is $18,591,743, and the aggregate
gross unrealized depreciation is $1,570,535, resulting in net unrealized
appreciation of $17,021,208.
(b) Non-income producing security.
See Notes to Financial Statements
16
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at value (Cost $56,523,638) (Note 1)................... $73,544,846
Cash............................................................... 991,492
Dividends receivable............................................... 132,636
Deferred organization expenses (Note 1)............................ 3,435
-----------
Total assets.................................................... 74,672,409
-----------
LIABILITIES:
Expenses payable (Note 2).......................................... 104
Payable for securities purchased................................... 386,633
-----------
Total liabilities............................................... 386,737
-----------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS........... $74,285,672
===========
NET ASSETS CONSIST OF:
Paid-in Capital.................................................... $74,285,672
===========
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends........................................................... $ 640,453
EXPENSES (NOTES 1 AND 2):
Investment management fee................................ $ 46,898
Investment advisory fee.................................. 16,200
Administration fee....................................... 16,200
Expense payment fees..................................... 77,540
Amortization of organization expenses.................... 5,222
----------
Total expenses................................................... 162,060
----------
NET INVESTMENT INCOME............................................... 478,393
NET REALIZED GAIN ON INVESTMENTS (NOTE 3):
Proceeds from sales...................................... 1,935,525
Cost of securities sold.................................. 1,600,204
----------
Net realized gain on investments................................. 335,321
NET UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of year........................................ 9,759,028
End of year.............................................. 17,021,208
----------
Net unrealized appreciation of investments....................... 7,262,180
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $8,075,894
==========
</TABLE>
See Notes to Financial Statements
17
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income.......................... $ 478,393 $ 734,456
Net realized gain on investments............... 335,321 405,427
Net change in unrealized appreciation.......... 7,262,180 8,729,434
----------- -----------
Net increase resulting from operations......... 8,075,894 9,869,317
----------- -----------
Transactions in Investors' Beneficial Interests:
Additions...................................... 13,013,750 14,888,452
Reductions..................................... (806,760) (2,076,641)
----------- -----------
Net increase from transactions in investors'
beneficial interests.......................... 12,206,990 12,811,811
----------- -----------
Total Increase in Net Assets.................... 20,282,884 22,681,128
NET ASSETS:
Beginning of period............................ 54,002,788 31,321,660
----------- -----------
End of period.................................. $74,285,672 $54,002,788
=========== ===========
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED FOR THE YEAR ENDED JULY 31, AUGUST 10, 1990(c)
JANUARY 31, 1996 --------------------------------------------- TO JULY 31, 1991
1995 1994 1993 1992
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C> <C>
Ratio of net investment
income to average net
assets................. 1.48%(b) 1.85%(a) 2.13%(a) 1.88%(a) 1.99%(a) 1.85%(a)(b)
Ratio of expenses to av-
erage net assets....... 0.50%(b) 0.43%(a) 0.29%(a) 0.29%(a) 0.29%(a) 0.29%(a)(b)
Portfolio Turnover...... 3% 6% 8% 4% 3% --
</TABLE>
(a) Reflects a voluntary waiver of fees by the Administrator and Adviser of the
Index Portfolio. Due to the limitations set forth in the Expense
Reimbursement Agreement, had the Administrator and Adviser not waived their
fees, the ratios of net investment income and expenses to average net
assets as stated would not have changed for the periods ended July 31,
1993, 1992 and 1991. For the years ended July 31, 1995 and 1994, the ratios
of net investment income and expenses to average net assets would have been
1.75% and 0.53% and 2.00% and 0.42%, respectively. (See Note 2.)
(b) Annualized.
(c) Commencement of operations.
See Notes to Financial Statements
18
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1996
(UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Domini Social Index Portfolio (the "Index Portfolio") is registered under the
Investment Company Act of 1940 (the "Act") as a no-load, diversified, open-end
management investment company which was organized as a trust under the laws of
the State of New York on June 7, 1989. The Index Portfolio intends to correlate
its investment portfolio as closely as is practicable with the Domini Social
Index (the "Index"), which is a common stock index developed and maintained by
Kinder, Lydenberg, Domini & Co., Inc. ("KLD"), the Index Portfolio's Adviser.
The Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Index Portfolio. The Index Portfolio commenced
operations upon effectiveness on August 10, 1990 and began investment
operations on June 3, 1991. The following is a summary of the significant
accounting policies of the Index Portfolio:
(A) VALUATION OF INVESTMENTS: The Index Portfolio values securities at the last
reported sale price, or at the last reported bid price if no sales are
reported.
(B) DIVIDEND INCOME: Dividend income is recorded on the ex-dividend date.
(C) FEDERAL TAXES: The Index Portfolio's policy is to comply with the
applicable provisions of the Internal Revenue Code. Accordingly, no provision
for Federal taxes is necessary.
(D) DEFERRED ORGANIZATION EXPENSE: Expenses incurred by the Index Portfolio in
connection with its organization are being amortized by the Index Portfolio on
a straight-line basis over a five-year period.
(E) OTHER: Investment transactions are accounted for on the trade date. Gains
and losses are determined on the basis of identified cost.
NOTE 2--TRANSACTIONS WITH AFFILIATES
(A) INVESTMENT ADVISORY FEES: The Index Portfolio has retained KLD as the
Investment Adviser of the Index Portfolio. The services provided by KLD consist
of the determination of the stocks to be included in the Index and evaluating,
in accordance with KLD's criteria, debt securities which may be purchased by
the Index Portfolio. For its services under the Investment Advisory Agreement,
KLD receives from the Index Portfolio a fee accrued daily at an annual rate
equal to 0.05% of the Index Portfolio's average daily net assets.
(B) INVESTMENT MANAGEMENT FEES: The Index Portfolio has retained Mellon Equity
Associates ("MEA") as the Investment Manager of the Index Portfolio. MEA does
not determine the composition of the Index. Under the Management Agreement, the
Index Portfolio pays MEA an investment management fee equal on an annual basis
to the following percentages of the Index Portfolio's average daily net assets
for its then-current fiscal year: 0.10% of assets up to $50 million; 0.30% of
assets between $50 million and $100 million; 0.20% of assets between $100
million and $500 million; and 0.15% of assets over $500 million.
(C) ADMINISTRATION FEES: The Index Portfolio has retained Signature Broker-
Dealer Services, Inc. ("Signature") to serve as Administrator of the Index
Portfolio. Certain officers of Signature serve as officers and trustee to the
Index Portfolio. Under the Administrative Services Agreement, Signature
provides management and administrative services necessary for the operations of
the Index Portfolio, furnishes office space and facilities required for
conducting the business of the Index Portfolio and pays the compensation of the
Index Portfolio's officers and Trustee affiliated with Signature. For these
services, Signature receives from the Index Portfolio a fee accrued daily at an
annual rate equal to 0.05% of the Index Portfolio's average daily net assets.
(D) REIMBURSEMENT OF EXPENSES: The Administrator has agreed to pay certain
expenses of the Index Portfolio subject to reimbursement. To accomplish such
reimbursement, the Administrator will receive an expense reimbursement fee from
the Index Portfolio such that after such reimbursement the aggregate expenses
of the Index Portfolio will not exceed 0.50% of the average daily net assets of
the Index Portfolio. The expense reimbursement fee agreement will terminate on
the earlier of April 30, 2000, or the date on which the cumulative
reimbursement fee equals the cumulative payments of the reimbursable expenses
made by the Administrator. For the six months ended January 31, 1996, the
Administrator incurred approximately $56,590 in expenses on behalf of the Index
Portfolio.
NOTE 3--INVESTMENT TRANSACTIONS
Purchase and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $14,086,023 and $1,600,204, respectively.
19
<PAGE>
SEMI-ANNUAL REPORT
- ------------------------------------------------------------------------
INVESTMENT ADVISER (BALANCED FUND) AND ADMINISTRATOR
Green Century Capital Management, Inc.
29 Temple Place
Boston, MA 02111
1-800-93-GREEN
INVESTMENT SUBADVISER (BALANCED FUND)
Winslow Management Company
24 Federal Street
Boston, MA 02110
INVESTMENT ADVISER (INDEX PORTFOLIO)
Kinder, Lydenberg, Domini & Co., Inc.
129 Mt. Auburn Street
Cambridge, MA 02138
PORTFOLIO INVESTMENT MANAGER (INDEX PORTFOLIO)
Mellon Equity Associates
500 Grant Street, Suite 3700
Pittsburgh, PA 15258-0001
COUNSEL TO INDEPENDENT TRUSTEES OF THE FUNDS
Debevoise & Plimpton
555 13th Street, N.W.
Washington, DC 20004
SUBADMINISTRATOR AND DISTRIBUTOR
Signature Broker-Dealer Services, Inc.
6 St. James Avenue
Boston, MA 02116
TRANSFER AGENT AND CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, MA 02111
COUNSEL TO GREEN CENTURY CAPITAL MANAGEMENT, INC.
Goulston & Storrs
400 Atlantic Avenue
Boston, MA 02110
FOR MORE INFORMATION ABOUT
THE GREEN CENTURY FUNDS CALL
1-800-93-GREEN
FOR SPECIFIC INFORMATION
ABOUT YOUR OWN ACCOUNT, CALL
1-800-221-5519
- ------------------------------------------------------------------------
[Green Century Fund LOGO Appears Here]
Printed on recycled paper with soy-based ink.
Semi-Annual Report
[Green Century Fund LOGO Appears Here]
Balanced Fund
December 31, 1995
Equity Fund
January 31, 1996
