SEMI-ANNUAL REPORT
Green Century Balanced Fund December 31, 1996
Green Century Equity Fund January 31, 1997
LOGO
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 Green Century Funds have thrived during Calendar Year 1996 and
the early weeks of 1997. Along with the U.S. stock market overall, both Green
Century Funds delivered strong returns. Our Balanced Fund's performance was
superior: for the 1996 calendar year, the Fund outperformed all forty-five
socially responsible funds tracked by Morningstar. Our Equity Fund's
performance has remained consistently competitive. Assets in both Funds have
grown and we have committed new dollars to several innovative and
environmentally proactive companies.
INVESTMENT PERFORMANCE
The Green Century Balanced Fund's total return for the one year ended
December 31, 1996 was 25.02%. This performance not only placed the Fund first
among the 45 socially responsible funds tracked by Morningstar but also placed
it second among the 277 balanced funds tracked by Lipper Analytical Services,
Inc. In comparison, the average balanced fund tracked by Lipper returned 13.73%
in 1996. For the three years ended December 31, 1996, the Green Century
Balanced Fund's average annual total return was 12.35%, just above the 11.63%
average annual return of the 158 balanced funds tracked by Lipper for that
period.
The Balanced Fund's portfolio manager, Winslow Management Company,
believes that environmentally pro-active companies can enjoy competitive
advantages and improve their profitability by reducing costs associated with
waste, avoiding exposure to environmental liabilities, and participating in
growth markets. In 1996, Winslow focused the equity portion of the Fund in
companies with high earnings growth rates which were selling at moderate price
to earnings ratios. With many of the portfolio's companies implementing
ecologically sustainable growth strategies, the companies' earnings growth
rates, as estimated by Winslow, are superior to that of the overall market by a
factor of three to one.
A recent addition to the Balanced Fund's portfolio is Wild Oats
Markets, Inc., stores which offer organic and holistic products and a company
which Winslow estimates has an earnings growth rate of 30%. Other Balanced Fund
holdings include Philip Environmental, a global leader in industrial waste
recycling, and Thermo Fibergen which processes sludge from recycled paper mills
into reusable fiber and water in a closed loop system. Fibergen's system
diverts sludge from landfills, saving the paper mill disposal costs and
increasing production yield.
The Green Century Equity Fund's total return for the 1996 calendar
year was a strong 21.26%. The Fund's average annual total returns for the three
and five year periods ending December 31, 1996 were 17.44% and 13.76%
respectively. At January 31, 1997, the Equity Fund's one, three, and five year
average annual total returns had climbed to 26.44%, 19.25%, and 15.62%
respectively, reflecting strong market gains in January.
Invested in a portfolio of 400 stocks selected for their positive
contributions to environmental and social responsibility, the Equity Fund is
broadly diversified. Relative to unscreened market indices such as the Standard
& Poor's 500 Index (the S&P 500), the Equity Fund benefitted from its
underexposure to the tobacco, motor vehicle, and electric utility industries
during the six months ended January 31, 1997. During the same period, the
Fund's performance was hurt by its underexposure to the international oil
industry and its overexposure to the retail and telephone industries relative
to the S&P 500.
<PAGE>
SHAREHOLDER ACTIVISM
While all the companies held in the portfolios of the Green Century
Funds must meet our standards for corporate environmental responsibility, some
of the firms could increase their efforts to be better environmental citizens.
Green Century uses our power as a shareholder to advocate for improved
environmental performance.
Last May, Green Century, with other concerned investors, introduced a
shareholder resolution at Time Warner's annual meeting, urging that Time report
on the company's plans to convert to totally chlorine-free paper. The
resolution garnered a yes vote of nearly 18 million shares, or 5.5% of the
votes cast, and persuaded Time Warner CEO Gerald Levin to state that he
welcomed continuing dialogue with the resolution's proponents. Since then we
have continued our efforts to negotiate with the company and persuade
management to move forward. Unfortunately, only minimal progress has been made.
Thus, Green Century has renewed our call for Time Warner to convert to
chlorine-free paper and re-filed the shareholder resolution for Time's
shareholder meeting in May, 1997.
In December, Green Century co-filed a shareholder resolution asking
that Thermo Electron endorse the CERES Principles, a set of comprehensive
public standards for both environmental performance and reporting. Thermo
Electron CEO George Hatsopoulos responded that the company shares our "concern
with the environmental impact of corporate technologies" but does not "believe
that another set of principles is necessary." Green Century disagrees. The
objective in making the request to Thermo Electron is to require standards for
environmental performance and disclosure, set methods for measuring progress
toward these goals, and establish a format for public reporting of progress.
Thus, we are pursuing our request that Thermo Electron endorse the CERES
Principles through the shareholder resolution process.
We are also pleased to report that the Green Century Funds recently
joined the newly formed American Medical Association's (AMA) Coalition of
Tobacco-Free Investments. In doing so, we certified that both Funds are free of
investments in tobacco stocks and bonds and pledged that the Funds will not
trade in tobacco equities and bonds in the future. Since the inception of the
Funds, Green Century has been committed to not investing in a company primarily
engaged in the manufacture of tobacco products, a major contributor to indoor
air pollution and to environmental and other health problems. We applaud the
AMA for joining the call to divest from this unhealthy and environmentally
destructive industry.
Thank you again for your commitment to environmentally responsible
investing and your investment in the Green Century Funds.
With respect,
The Green Century Funds
<TABLE>
<CAPTION>
GREEN CENTURY BALANCED FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF AS OF
12/31/96 1/31/97
-------- -------
<S> <C> <C>
One Year................ 25.02% 27.93%
Three Years............. 12.35% 12.43%
Five Years.............. n/a n/a
Since Inception*........ 8.55% 8.83%
</TABLE>
<TABLE>
<CAPTION>
GREEN CENTURY EQUITY FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF AS OF
12/31/96 1/31/97
-------- -------
<S> <C> <C>
One Year................ 21.26% 26.44%
Three Years............. 17.44% 19.25%
Five Years.............. 13.76% 15.62%
Since Inception**....... 13.80% 15.00%
</TABLE>
* March 18, 1992 ** June 3, 1991
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 "Portfolio"). Consistent with regulatory guidance,
performance for the period prior to the Fund's inception reflects the
performance of the Portfolio adjusted to reflect the deduction of the charges
and expenses of the Fund.
As of December 31, 1996, the above named companies composed the following
percentages of the portfolio of the Balanced Fund: Wild Oats Markets 2.09%;
Philip Environmental 4.16%; Thermo Fibergen 1.86%; Time Warner 0.04%; and
Thermo Electron 4.08%. The holdings of the Balanced Fund may change due to
ongoing management of the Fund.
Lipper Analytical Services, Inc. and Morningstar are respected mutual fund
ranking services. The S&P 500 is an unmanaged index broadly representative of
the U.S. stock market. The American Medical Association does not endorse any
investment vehicle and does not guarantee any rate of return.
This material must be preceded or accompanied by a prospectus. Distributor:
Signature Broker-Dealer Services, Inc. 3/97
2
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
(UNAUDITED)
COMMON STOCKS--74.2%
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ENVIRONMENTAL PRODUCTS & SERVICES--19.3%
Caraustar Industries, Inc. ................................ 3,000 $ 99,750
Galileo Electro--Optics Corp. (b).......................... 16,000 402,000
Memtec LTD ADR (c)......................................... 10,000 328,750
Philip Environmental Inc. (b).............................. 25,000 362,500
Thermo Electron Corp. (b).................................. 9,000 361,125
Thermo Fibergen Inc. (b)................................... 15,000 157,500
----------
1,711,625
----------
FINANCIAL SERVICES--11.7%
American International Group, Inc.......................... 1,500 162,375
Banco Latinoamericano de Export 'E' (c).................... 5,000 253,750
Mutual Risk Management..................................... 5,800 214,600
PMI Group Inc. ............................................ 4,000 221,500
Sirrom Capital Corp. ...................................... 5,000 183,750
----------
1,035,975
----------
TECHNOLOGY--10.4%
Intel Corp................................................. 100 13,100
Metrika Systems Corp. (b).................................. 25,000 187,500
Orbital Sciences Corp...................................... 15,000 258,750
Southwall Technologies Inc. (b)............................ 15,000 93,750
System Software Associates, Inc. (b)....................... 12,000 127,500
Teradyne Inc. (b).......................................... 10,000 243,750
----------
924,350
----------
COMMUNICATIONS--7.8%
Nokia Corp. ADR (c)........................................ 7,000 402,500
Telco Communications Group................................. 7,000 122,500
Time Warner, Inc........................................... 100 3,750
Trescom International, Inc................................. 20,000 160,000
----------
688,750
----------
FOOD & BEVERAGE--4.6%
PepsiCo, Inc............................................... 100 2,938
Twinlab Corp. (ADR) (b) (c)................................ 18,000 218,250
Wild Oats Markets, Inc. (b)................................ 10,000 185,000
----------
406,188
----------
PHARMACEUTICALS--4.5%
Elan Corp. PLC ADR (b) (c)................................. 7,500 249,374
Pharmacopia, Inc. (b) (c).................................. 7,500 145,312
----------
394,686
----------
AGRICULTURE--4.3%
Potash Corp. of Saskatchewan............................... 4,500 382,500
----------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ENERGY--4.2%
Calpine Corp.............................................. 5,000 $ 94,375
USX--Delhi Group.......................................... 17,500 277,813
----------
372,188
----------
HEALTH SERVICES AND HOSPITAL SUPPLIES--3.9%
Sofamor/Danek Group, Inc. (b)............................. 5,000 152,500
Vencor Inc. (b)........................................... 6,000 189,750
----------
342,250
----------
PERSONAL CARE PRODUCTS--3.5%
Gillette Company.......................................... 4,000 308,500
----------
Total Common Stocks
(Cost $5,325,083).................................................. 6,567,012
----------
CORPORATE BONDS AND NOTES--22.8%
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
COMMUNICATIONS--6.8%
Allbritton Comm 9.75%, due 11/30/07....................... $200,000 $ 192,000
IXC Communications, Inc. 12.5%, due 10/1/05............... 200,000 221,000
GST USA, Inc. 13.875%, due 12/15/05....................... 300,000 184,500
----------
597,500
----------
ENERGY--5.0%
Midland Funding II, 11.75%, due 7/23/05................... 200,000 225,000
Trans Texas Gas, 11.50%, due 6/15/02...................... 200,000 217,250
----------
442,250
----------
HEALTH SERVICES AND HOSPITAL SUPPLIES--4.2%
Paracelsus Healthcare 10.00%, due 8/15/06................. 200,000 235,625
Unilab Corporation 11.00%, due 4/01/06.................... 200,000 136,000
----------
371,625
----------
FOOD & BEVERAGE--2.3%
Curtice--Burns Foods 12.25%, due 2/01/05.................. 200,000 207,000
----------
</TABLE>
3
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS--(CONCLUDED)
DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
DESCRIPTION AMOUNT VALUE
<S> <C> <C>
PAPER PRODUCTS--2.3%
Repap Wisconsin 9.875%, due 5/01/06....................... $200,000 $ 205,000
----------
ENVIRONMENTAL SERVICES--2.2%
ICF Kaiser International 13.00%, due 12/31/03............. 200,000 190,000
----------
Total Corporate Bonds and Notes
(Cost $2,037,359).................................................. 2,013,375
----------
U.S. TREASURY NOTE--1.7%
6.875%, due 7/31/99....................................... 150,000 153,094
----------
Total U.S. Treasury Notes
(Cost $149,926).................................................... 153,094
----------
SHORT-TERM OBLIGATIONS--0.9%
REPURCHASE AGREEMENTS
Salomon Brothers, 5.90%, dated 12/31/96, due 1/2/97, proceeds
$79,802 (collateralized by U.S. Treasury Notes with maturities from
8/15/13 through 5/15/18, value $81,526)............................ 79,776
----------
TOTAL INVESTMENTS (A)--99.6%
(Cost $7,592,175).................................................. 8,813,257
Other Assets Less Liabilities--0.4%................................. 31,613
----------
NET ASSETS--100%.................................................... $8,844,870
==========
</TABLE>
- -------
(a) The cost of securities for federal income tax purposes is $7,592,175
resulting in gross unrealized appreciation and depreciation of $1,409,820
and $188,738 respectively, or net unrealized appreciation of $1,221,082.
(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.
See Notes to Financial Statements
4
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value--
(cost $7,592,175) see accompanying portfolio...................... $8,813,257
Receivables for:
Securities sold................................................... 128,261
Interest and dividends............................................ 65,903
----------
Total assets.................................................... 9,007,421
----------
LIABILITIES:
Payable for securities purchased................................... 143,205
Accrued expenses................................................... 19,346
----------
Total liabilities............................................... 162,551
----------
NET ASSETS......................................................... $8,844,870
==========
NET ASSETS CONSIST OF:
Paid-in capital.................................................... $7,724,243
Accumulated net realized gain (loss) on investments and options
written........................................................... (90,458)
Net unrealized appreciation on investments and options written..... 1,221,082
Distributions in excess of net investment income................... (9,997)
----------
NET ASSETS......................................................... $8,844,870
==========
SHARES OUTSTANDING................................................. 699,294
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE: ($8,844,870 / 699,294).............. $ 12.65
==========
</TABLE>
GREEN CENTURY BALANCED FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income....................................................... $117,661
Dividend income (net of foreign withholding tax of $479).............. 13,469
--------
Total investment income............................................ 131,130
--------
EXPENSES (NOTE 2):
Administrative services fee........................................... 63,712
Investment advisory fee............................................... 31,856
Distribution fee...................................................... 10,619
Miscellaneous expenses................................................ 1,076
--------
Total expenses..................................................... 107,263
--------
NET INVESTMENT INCOME................................................. 23,867
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 1):
Net realized gain on investments and options written.................. 17,560
Net increase in unrealized appreciation of investments and options
written.............................................................. 598,951
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS....................... 616,511
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $640,378
========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1996 JUNE 30, 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income......................... $ 23,867 $ 58,102
Net realized gain (loss) on investments and
options written.............................. 17,560 1,045,400
Net increase in unrealized appreciation (de-
preciation) of investments and options writ-
ten.......................................... 598,951 271,529
----------- ----------
Net increase in net assets resulting from op-
erations..................................... 640,378 1,375,031
----------- ----------
Dividends to shareholders (Note 1):
From net investment income.................... (34,479) (58,633)
From net realized gains....................... (1,042,169) 0
----------- ----------
Total dividends and distributions............. (1,076,648) (58,633)
----------- ----------
Capital Share Transactions (Note 4):
Proceeds from sales of shares................. 615,941 4,331,903
Reinvestment of dividends..................... 607,457 50,833
Payments for shares redeemed.................. (157,449) (774,466)
----------- ----------
Net increase in net assets resulting from cap-
ital stock transactions...................... 1,065,949 3,608,270
----------- ----------
Total Increase in Net Assets................... 629,679 4,924,668
NET ASSETS:
Beginning of period........................... 8,215,191 3,290,523
----------- ----------
End of period (including distributions in ex-
cess of net investment income of $9,997 for
the six months ended December 31, 1996 and
undistributed net investment income of $615
for the year ended June 30, 1996)............ $8,844,870 $8,215,191
=========== ==========
</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, 1996 1996 1995 1994 1993 TO JUNE 30, 1992
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of period......... $ 13.34 $ 11.03 $ 9.68 $ 10.14 $ 9.84 $ 10.00
Income from investment
operations:
Net investment income... 0.033 0.095 0.100 0.072 0.061 0.019
Net realized and
unrealized gain (loss)
on investments......... 0.932 2.313 1.346 (0.459) 0.303 (0.164)
------- ------- ------- -------- ------- --------
Total increase
(decrease) from
investment operations.. 0.965 2.408 1.446 (0.387) 0.364 (0.145)
------- ------- ------- -------- ------- --------
Less dividends (Note 1):
Dividends from net
investment income...... (0.053) (0.098) (0.096) (0.073) (0.064) (0.015)
Dividends from net real-
ized gains............. (1.602) 0.000 0.000 0.000 0.000 0.000
-------- ------- ------- ------- ------- -------
Net Asset Value, end of
period................. $ 12.65 $ 13.34 $ 11.03 $ 9.68 $ 10.14 $ 9.84
======== ======== ======== ======== ======== =======
Total return............ 7.39%(a) 21.98% 15.00% (3.83)% 3.69% (1.45)%(a)
Ratios/Supplemental da-
ta:
Net assets, end of pe-
riod (in 000's)........ $ 8,845 $ 8,215 $ 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% 2.50%(b)
Ratio of net investment
income to average net
assets................. 0.56%(b) 0.85% 0.97% 0.74% 0.85% 1.13%(b)
Portfolio Turnover...... 60% 136% 16% 14% 11% 2%
Average commission rate
paid per share......... $ 0.06 $ 0.06 -- -- -- --
</TABLE>
(a) Not annualized
(b) Annualized
See Notes to Financial Statements
6
<PAGE>
GREEN CENTURY EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in Domini Social Index Portfolio, at value (Note 1)...... $1,918,550
----------
Total assets..................................................... 1,918,550
----------
<CAPTION>
LIABILITIES:
<S> <C>
Accrued expenses (Note 2)........................................... 1,569
----------
Total liabilities................................................ 1,569
----------
NET ASSETS.......................................................... $1,916,981
==========
NET ASSETS CONSIST OF:
Paid-in capital..................................................... $1,625,694
Distributions in excess of net investment income.................... (1,405)
Accumulated net realized gain on investment......................... 4,766
Net unrealized appreciation on investment........................... 287,926
----------
NET ASSETS.......................................................... $1,916,981
==========
SHARES OUTSTANDING.................................................. 138,988
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE: ($1,916,981 / 138,988 shares)........ $ 13.79
==========
</TABLE>
GREEN CENTURY EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME FROM INDEX PORTFOLIO:
Investment income from Index Portfolio................................ $ 10,866
Expenses from Index Portfolio......................................... (2,111)
--------
Net income from Index Portfolio.................................... 8,755
--------
EXPENSES:
Administrative services fee (Note 2).................................. 7,613
--------
NET INVESTMENT INCOME................................................. 1,142
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENT:
Net realized gain..................................................... 2,918
Net increase in unrealized appreciation............................... 287,008
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENT........................ 289,926
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $291,068
========
</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
FOR THE (COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
JANUARY 31, 1997 JULY 31, 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income..................... $ 1,142 $ 1,702
Net realized gain on investment........... 2,918 2,672
Net increase in unrealized appreciation... 287,008 918
---------- --------
Net increase resulting from operations.... 291,068 5,292
---------- --------
Dividends to shareholders:
From net investment income................ (2,942) (1,307)
From net realized gains................... (824) 0
---------- --------
Total dividends and distributions......... (3,766) (1,307)
---------- --------
Capital Share Transactions:
Proceeds from sales of shares............. 814,525 927,413
Reinvestment of dividends................. 3,289 1,143
Payments for shares redeemed.............. (67,862) (52,814)
---------- --------
Net increase resulting from capital share
transactions............................. 749,952 875,742
---------- --------
Total Increase in Net Assets............... 1,037,254 879,727
NET ASSETS:
Beginning of period....................... 879,727 0
---------- --------
End of period (including distributions in
excess of net investment income of $1,405
for the six months ended January 31, 1997
and undistributed net investment income
of $395 for the year ended
July 31, 1996)........................... $1,916,981 $879,727
========== ========
</TABLE>
GREEN CENTURY EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 13, 1995
FOR THE (COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
JANUARY 31, 1997 JULY 31, 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
Net Asset Value, beginning of period....... $11.04 $10.00
Income from investment operations:
Net investment income..................... 0.005 0.02
Net realized and unrealized gain on in-
vestment................................. 2.777 1.04
------- ------
Total increase from investment operations. 2.782 1.06
------- ------
Less dividends:
Dividends from net investment income...... (0.025)
Dividends from net realized gains......... (0.007) (0.02)
------- ------
Net Asset Value, end of period............. $13.79 $11.04
======= ======
Total return............................... 25.21%(a) 10.64%(a)
Ratios/supplemental data
Net Assets, end of period (in 000's)...... $1,917 $880
Ratio of expenses to average net assets... 1.50%(b) 1.50%(b)
Ratio of net investment income to average
net assets............................... 0.19%(b) 0.49%(b)
</TABLE>
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
8
<PAGE>
GREEN CENTURY BALANCED FUND/DECEMBER 31, 1996
GREEN CENTURY EQUITY FUND/JANUARY 31, 1997
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Green Century Funds (the "Trust") is a Massachusetts business trust which
offers two separate series, the Green Century Balanced Fund and the Green
Century Equity 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 (1.13% at January 31, 1997). 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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
the Trust's significant accounting policies:
(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 the 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) 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, and is allocated realized and
unrealized gains daily based on its investment in the Index Portfolio.
9
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
(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.
(D) BALANCED FUND OPTIONS WRITTEN: When the Balanced Fund writes a call
option or a put option, an amount equal to the premium received by the
Fund is recorded as a liability, the value of which is marked-to-market
daily. When a written option expires, the Balanced Fund realizes a gain
equal to the amount of the premium originally received. When the
Balanced Fund enters into a closing purchase transaction, the Fund
realizes a gain (or loss if the cost of the closing purchase transaction
exceeds the premium originally received when the option was sold)
without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is eliminated. When a
call option is exercised, the Fund realizes a gain or loss from the sale
of the underlying security and the proceeds from such sale are increased
by the premium originally received. When a put option is exercised, the
amount of the premium originally received will reduce the cost of the
security which the Fund purchased upon exercise.
The risk in writing a call option is that the Balanced Fund may forego
the opportunity for profit if the market price of the underlying security
increases and the option is exercised. The risk in writing a put option is
that the Fund may incur a loss if the market price of the underlying
security decreases and the option is exercised. There is also the risk the
Fund may not be able to enter into a closing transaction because of an
illiquid secondary market. In addition, the Fund could be exposed to risks
if the counterparties to the transaction are unable to meet the terms of
the contracts.
(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. 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 ("the Adviser") for the Balanced Fund and
oversees the portfolio management of the Balanced 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 by the Adviser 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, 1996, Green Century accrued fees of $24,183 to Winslow.
10
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)
(C) ADMINISTRATOR: Green Century Capital Management 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, 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, 1996, Green Century accrued fees of
$6,371 to Signature relating to services performed on behalf of the
Balanced Fund, and for the six months ended January 31, 1997, Green
Century accrued fees of $1,002 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, 1996, the Balanced Fund accrued and paid $10,619 to
Signature for services provided pursuant to the Plan.
NOTE 3--INVESTMENT TRANSACTIONS
The Balanced Fund's purchases and sales of securities, other than short-term
securities, aggregated $5,264,584 and $4,924,384, respectively for the six
months ended December 31, 1996.
Additions and reductions in the Equity Fund's investment in the Index
Portfolio aggregated $817,813 and $78,211 for the six months ended January 31,
1997.
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 SIX MONTHS FOR THE YEAR FOR THE SIX MONTHS FOR THE PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, 1996 JUNE 30, 1996 JANUARY 31, 1997 JULY 31, 1996
<S> <C> <C> <C> <C>
Shares sold............. 46,595 379,384 64,496 84,374
Reinvestment of divi-
dends.................. 48,597 4,436 250 101
Shares redeemed......... (11,858) (66,302) (5,456) (4,777)
------- ------- ------ ------
83,334 317,518 59,290 79,698
======= ======= ====== ======
</TABLE>
11
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
COMMON STOCKS--98.5%
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
APPAREL--1.1%
Brown Group Inc. ......................................... 900 $ 14,850
Hartmarx Corp. (b)........................................ 1,800 10,575
Lands' End Inc. .......................................... 1,700 48,237
Liz Claiborne, Inc. ...................................... 3,900 164,288
Nike Inc. (Class B)....................................... 15,300 1,038,488
Oshkosh B'Gosh, Inc. (Class A)............................ 800 11,000
Phillips-Van Heusen Corp. ................................ 1,400 18,900
Reebok International Ltd. ................................ 3,200 152,000
Russell Corp. ............................................ 2,200 70,950
Stride Rite Corp. ........................................ 2,700 32,400
Timberland Co. (b)........................................ 600 26,625
VF Corp. ................................................. 3,400 226,100
------------
1,814,413
------------
COMMERCIAL PRODUCTS & SERVICES--2.5%
Autodesk Inc. ............................................ 2,400 75,900
Banta Corp. .............................................. 1,850 43,475
Centex Corp. ............................................. 1,600 62,400
Cintas Corp. ............................................. 2,600 148,200
Crown Cork & Seal Inc. ................................... 6,800 391,000
Deluxe Corp. ............................................. 4,700 144,525
DeVRY Inc. (b)............................................ 2,200 57,750
Donnelley, (R.R.) & Sons.................................. 8,100 253,125
Fleetwood Enterprises, Inc. .............................. 1,900 50,825
Fuller (H.B.) Co. ........................................ 800 39,900
Graco Inc. ............................................... 950 30,519
Harland (J.H.) Co. ....................................... 1,600 46,600
HON Industries Inc. ...................................... 1,600 57,200
Ikon Office Solutions Inc. ............................... 7,100 313,288
Kaufman & Broad Home Corp. ............................... 2,100 29,663
Kelly Services (Class A).................................. 1,775 49,700
Miller, (Herman) Inc. .................................... 1,300 75,238
Moore Corp., Ltd. ........................................ 5,300 109,975
National Education Corp. (b).............................. 2,100 31,763
National Service Industries, Inc. ........................ 2,400 92,100
New England Business Services Inc. ....................... 800 16,600
Pitney Bowes Inc. ........................................ 8,000 461,000
Rouse Co. ................................................ 3,000 93,000
Sherwin-Williams Co. ..................................... 4,600 255,300
Sonoco Products Co. ...................................... 4,805 128,534
Standard Register Co. .................................... 1,500 51,750
TJ International Inc. .................................... 3,500 64,750
Xerox Corp. .............................................. 18,100 1,061,113
------------
4,235,193
------------
CONSUMER PRODUCTS & SERVICES--0.2%
American Greetings Corp. (Class A)........................ 4,000 113,250
Avery Dennison Corp. ..................................... 5,700 208,762
ISCO Inc. ................................................ 300 2,550
Tennant Co. .............................................. 500 13,438
------------
338,000
------------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ENERGY--3.7%
Amoco Corp. .............................................. 26,800 $ 2,331,600
Anadarko Petroleum Corp. ................................. 3,200 207,200
Apache Corp. ............................................. 4,800 184,200
Atlantic Richfield Co. ................................... 9,000 1,190,250
Consolidated Natural Gas Co. ............................. 5,100 283,687
ENERGEN Corp. ............................................ 600 18,450
Enron Corp. .............................................. 13,100 540,375
Helmerich & Payne Inc. ................................... 1,300 62,888
Louisiana Land & Exploration Co. ......................... 2,000 112,500
OGE Energy Corp. ......................................... 2,100 89,513
Oryx Energy Co. (b)....................................... 5,600 135,800
Pennzoil Co. ............................................. 2,500 155,938
Rowan Companies Inc. (b).................................. 4,700 118,675
Santa Fe Energy Resources Inc. (b)........................ 4,800 71,400
Sonat Inc. ............................................... 4,700 250,275
Sun Co. .................................................. 3,900 102,862
Williams Companies Inc. .................................. 9,000 361,125
------------
6,216,738
------------
FINANCIAL--13.2%
Ahmanson (H.F.) & Co. .................................... 5,700 213,750
American Express Co. ..................................... 26,200 1,634,225
Banc One Corp. ........................................... 23,095 1,047,935
Bank of Boston............................................ 8,100 577,125
BankAmerica Corp. ........................................ 19,700 2,199,012
Bankers Trust (N.Y.) Corp. ............................... 4,500 382,500
Barnett Banks Inc. ....................................... 10,400 457,600
Beneficial Corp. ......................................... 2,800 188,300
Block (H. & R.), Inc. .................................... 5,500 162,937
Cincinnati Financial Corp. ............................... 2,995 187,188
CoreStates Financial Corp. ............................... 11,700 582,075
Dime Bancorp Inc. (b)..................................... 5,800 90,625
Edwards (A.G.), Inc. ..................................... 3,525 119,409
Federal Home Loan Mortgage
Corp. ................................................... 38,000 1,149,500
Federal National Mortgage Association..................... 58,000 2,291,000
Fifth Third Bancorp....................................... 5,600 433,300
First Chicago Corp. ...................................... 17,206 982,893
First Fed Financial Corp. (b)............................. 600 13,200
Golden West Financial Corp. .............................. 3,100 208,088
Great Western Financial Corp. ............................ 7,100 224,538
Household International Inc. ............................. 5,200 515,450
MBNA Corp. ............................................... 17,700 610,650
Mellon Bank Corp. ........................................ 6,900 514,913
Merrill Lynch & Co., Inc. ................................ 10,400 876,200
Morgan (J.P.) & Co., Inc. ................................ 10,700 1,102,100
Norwest Corp. ............................................ 20,500 976,312
Piper Jaffray Inc. ....................................... 1,000 17,625
PNC Bank Corp. ........................................... 18,300 727,425
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
FINANCIAL--CONTINUED
ReliaStar Financial Corp. ................................ 2,000 $ 111,000
Schwab (Charles) Corp. ................................... 9,300 347,588
Student Loan Marketing Association........................ 2,900 315,738
SunTrust Banks Inc. ...................................... 11,800 590,000
Transamerica Corp. ....................................... 3,600 296,100
Value Line Inc. ......................................... 500 15,125
Vermont Financial Services Corp. ......................... 200 7,925
Wachovia Corp. ........................................... 8,900 512,863
Wells Fargo & Co. ........................................ 4,900 1,493,275
Wesco Financial Corp. .................................... 400 78,000
------------
22,253,489
------------
FOODS & BEVERAGES--9.8%
Ben & Jerry's (Class A) (b)............................... 700 8,225
Campbell Soup Co. ........................................ 12,800 1,062,400
Coca-Cola Co. ............................................ 134,700 7,795,762
CPC International Inc. ................................... 7,700 591,937
Fleming Cos. Inc. ........................................ 2,000 32,250
General Mills, Inc. ...................................... 8,400 569,100
Heinz (H.J.) Co. ......................................... 19,900 800,975
Hershey Foods Corp. ...................................... 8,200 346,450
Kellogg Co. .............................................. 11,700 814,612
Odwalla Inc. (b).......................................... 1,300 16,250
PepsiCo, Inc. ............................................ 86,300 3,009,713
Quaker Oats Co. .......................................... 7,200 276,300
Ralston Purina Group...................................... 5,600 440,300
Smucker (J.M.) Co. (Class A).............................. 1,500 26,250
Super Valu Inc. .......................................... 3,600 111,150
Sysco Corp. .............................................. 9,500 312,313
TCBY Enterprises, Inc. ................................... 1,300 5,525
Tootsie Roll Industries, Inc. ............................ 1,145 43,939
Wrigley, (Wm.) Jr. Co. ................................... 6,200 360,375
------------
16,623,826
------------
HOUSEHOLD GOODS--5.7%
Alberto Culver Co. (Class B).............................. 1,500 78,187
Avon Products, Inc. ...................................... 7,100 445,525
Bassett Furniture Industries, Inc. ....................... 900 20,362
Church & Dwight Co., Inc. ................................ 4,400 112,200
Clorox Co. ............................................... 2,700 320,287
Colgate-Palmolive Co. .................................... 7,800 754,650
Fedders Corp. ............................................ 2,200 13,750
Handleman Co. (b)......................................... 1,900 15,200
Harman International Industries, Inc. .................... 930 43,129
Hasbro Inc. .............................................. 4,600 181,700
Huffy Corp. .............................................. 700 9,975
Kimberly-Clark Corp. ..................................... 15,232 1,485,120
Leggett & Platt Inc. ..................................... 4,900 157,413
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
HOUSEHOLD GOODS--CONTINUED
Mattel, Inc. ............................................. 14,685 $ 413,016
Maytag Co. ............................................... 5,400 110,700
Newell Co. ............................................... 8,400 277,200
Oneida, Ltd. ............................................. 800 13,900
Procter & Gamble Co. ..................................... 36,900 4,261,950
Rubbermaid Inc. .......................................... 8,000 185,000
Shaw Industries........................................... 7,300 101,288
Snap-On Tools Corp. ...................................... 3,550 132,238
Springs Industries Inc. (Class A)......................... 1,100 46,475
Stanhome, Inc. ........................................... 1,100 28,463
Stanley Works............................................. 4,700 178,600
Thomas Industries......................................... 800 17,500
Whirlpool Corp. .......................................... 4,100 208,588
------------
9,612,416
------------
INSURANCE--6.1%
Aetna Inc. ............................................... 7,970 629,630
American General Corp. ................................... 11,300 450,587
American International Group, Inc. ....................... 25,400 3,076,575
Chubb Corp. .............................................. 9,300 506,850
CIGNA Corp. .............................................. 4,200 636,825
General Re Corp. ......................................... 4,400 710,600
Hartford Steam Boiler..................................... 1,100 50,875
Jefferson-Pilot Corp. .................................... 3,800 224,200
Lincoln National Corp. ................................... 5,600 300,300
Marsh & McLennan Companies, Inc. ......................... 3,800 409,450
Providian Corp. .......................................... 5,000 269,375
SAFECO Corp. ............................................. 6,700 254,600
St. Paul Companies........................................ 4,500 281,250
Torchmark Corp. .......................................... 3,800 196,650
Travelers Corp. .......................................... 34,600 1,812,206
UNUM Corp. ............................................... 3,900 294,938
USF&G Corp. .............................................. 6,200 130,975
USLIFE Corp. ............................................. 1,925 78,925
------------
10,314,811
------------
MANUFACTURING--2.0%
Applied Materials, Inc. (b)............................... 9,500 469,062
Boston Scientific Corp. (b)............................... 9,700 662,025
Brady (W.H.) (Class A).................................... 1,400 32,200
Case Corp. ............................................... 4,000 212,000
Cincinnati Milacron....................................... 2,300 52,900
Clarcor, Inc. ............................................ 900 22,387
Deere & Co. .............................................. 14,300 611,325
Dionex Corp. (b).......................................... 800 32,400
Fastenal Co. ............................................. 2,000 75,500
Gerber Scientific......................................... 1,200 17,100
Goulds Pumps, Inc. ....................................... 1,200 28,050
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
MANUFACTURING--CONTINUED
Hunt Manufacturing Co. ................................... 600 $ 10,350
Illinois Tool Works Inc. ................................. 6,600 538,725
James River Corp. of Virginia............................. 4,500 144,563
Lawson Products, Inc. .................................... 800 17,700
Millipore Corp. .......................................... 2,300 98,325
Nordson Corp. ............................................ 1,000 60,750
Thermo Electron Corp. (b)................................. 7,930 270,611
Watts Industries Inc. (Class A)........................... 1,400 34,125
Wellman Inc. ............................................. 1,700 29,963
Zurn Industries Inc. ..................................... 700 16,888
------------
3,436,949
------------
MEDIA--3.7%
BET Holdings Inc. (Class A) (b)........................... 900 23,625
Comcast Corp. (Class A)................................... 17,300 317,888
Disney (Walt) Co. ........................................ 37,100 2,717,575
Dow Jones & Co. Inc. ..................................... 5,300 210,012
Frontier Corp. ........................................... 8,700 190,313
Harcourt General Inc. .................................... 3,900 176,475
King World Productions Inc. (b)........................... 2,000 78,250
Lee Enterprises, Inc. .................................... 2,500 57,500
McGraw-Hill Inc. ......................................... 5,300 263,675
Media General Inc. (Class A).............................. 1,400 44,100
Meredith Corp. ........................................... 1,700 87,338
New York Times Co. (Class A).............................. 5,200 199,550
Scholastic Corp. (b)...................................... 2,200 129,800
Tele-Communications, Inc. (Class A) (b)................... 35,300 469,931
Times Mirror Co. (Class A)................................ 5,600 264,600
US West Media Group (b)................................... 33,200 618,350
Viacom Inc. (Class A) (b)................................. 4,000 136,000
Washington Post Co. (Class B)............................. 600 200,400
------------
6,185,382
------------
MISCELLANEOUS--1.2%
Allwaste, Inc. (b)........................................ 2,000 10,750
Avnet, Inc. .............................................. 2,300 142,312
Bemis Co., Inc. .......................................... 2,800 114,450
CPI Corp. ................................................ 600 11,100
Cross (A.T.) Co. (Class A)................................ 900 10,800
General Signal Corp. ..................................... 2,600 117,650
Hillenbrand Industries Inc. .............................. 3,800 147,250
Ionics Inc. (b)........................................... 900 45,113
Jostens Inc. ............................................. 2,100 43,312
Marriott International Corp. ............................. 7,400 393,125
Omnicom Group, Inc. ...................................... 4,300 209,088
Polaroid Corp. ........................................... 2,500 110,000
Sealed Air Corp. (b)...................................... 2,300 98,325
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
MISCELLANEOUS--CONTINUED
Service Corp. International............................... 12,500 $ 362,500
Toro Co. ................................................. 800 28,100
Whitman Corp. ............................................ 5,600 128,800
------------
1,972,675
------------
PHARMACEUTICALS AND HEALTH CARE--8.5%
Acuson Corp. (b).......................................... 1,500 38,063
Allergan Inc. ............................................ 3,500 123,812
Alza Corp. (b)............................................ 4,500 129,937
Angelica Corp. ........................................... 800 15,300
Apogee Enterprises, Inc. ................................. 700 26,425
Becton Dickinson & Co. ................................... 6,900 339,825
Bergen Brunswig Corp. (Class A)........................... 1,895 56,376
Biomet Inc. (b)........................................... 6,200 96,100
Forest Laboratories, Inc. (b)............................. 2,400 90,600
Humana Inc. (b)........................................... 8,600 163,400
Johnson & Johnson......................................... 72,000 4,149,000
Manor Care Inc. .......................................... 3,700 94,350
Medtronic Inc. ........................................... 12,700 869,950
Merck & Co., Inc. ........................................ 65,800 5,971,350
Mylan Laboratories Inc. .................................. 9,600 157,200
Natures Sunshine Products Inc. ........................... 600 10,650
Oxford Health Plans (b)................................... 4,000 217,500
Schering-Plough Corp. .................................... 20,000 1,512,500
St. Jude Medical Inc. (b)................................. 4,500 170,438
Stryker Corp. ............................................ 5,100 147,900
Sunrise Medical Inc. (b).................................. 1,000 15,500
Transitional Hospitals.................................... 2,384 21,754
United American Healthcare (b)............................ 300 1,425
------------
14,419,355
------------
RESOURCE DEVELOPMENT--2.2%
Air Products & Chemicals, Inc. ........................... 5,900 421,112
Aluminum Co. of America................................... 9,600 662,400
ARCO Chemical Co. ........................................ 5,100 242,887
Battle Mountain Gold Co. ................................. 11,900 77,350
Betz Laboratories, Inc. .................................. 1,500 87,750
Cabot Corp. .............................................. 4,200 100,275
Calgon Carbon Corp. ...................................... 2,200 25,025
Consolidated Papers Inc. ................................. 2,400 114,300
Cyprus Amax Minerals Co. ................................. 4,900 109,638
Echo Bay Mines Ltd. ...................................... 7,400 47,638
Inland Steel Industries Inc. ............................. 2,600 49,725
Marquette Medical Sys. ................................... 1,500 30,938
Mead Corp. ............................................... 2,800 157,500
Morton International Inc. ................................ 7,700 312,813
Nalco Chemical Co. ....................................... 3,600 127,800
Nucor Corp. .............................................. 4,750 247,000
Praxair Inc. ............................................. 8,900 412,738
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
RESOURCE DEVELOPMENT--CONTINUED
Sigma-Aldrich Corp. ...................................... 5,300 $ 168,275
Westvaco Corp. ........................................... 5,400 157,950
Worthington Industries, Inc. ............................. 4,800 93,000
------------
3,646,114
------------
RETAIL--8.6%
Albertson's, Inc. ........................................ 13,400 469,000
American Stores Co. ...................................... 7,700 323,400
Bob Evans Farms, Inc. .................................... 2,300 32,200
Charming Shoppes Inc. (b)................................. 5,600 26,600
Circuit City Stores Inc. ................................. 5,300 186,163
Claire's Stores Inc. ..................................... 2,500 35,625
CVS Corp. ................................................ 6,200 268,150
Dayton-Hudson Corp. ...................................... 11,600 436,450
Dillard Department Stores................................. 6,300 188,213
Dollar General Corp. ..................................... 4,207 130,433
Egghead Inc. (b).......................................... 900 4,838
Gap, Inc. ................................................ 15,000 431,250
Giant Food Inc. (Class A)................................. 3,200 105,600
Gibson Greetings Inc. (b)................................. 900 16,650
Great Atlantic & Pacific Tea Co., Inc. ................... 2,000 62,500
Hannaford Brothers Co. ................................... 2,200 76,175
Hechinger Co. (Class A)................................... 800 1,625
Home Depot, Inc. ......................................... 25,933 1,283,684
International Dairy Queen, Inc. (Class A) (b)............. 1,300 25,675
K-Mart Corp. (b).......................................... 25,900 288,138
Kroger Co. (b)............................................ 7,000 334,250
Lillian Vernon Corp. ..................................... 500 6,500
Limited, Inc. ............................................ 14,400 246,600
Longs Drug Stores, Inc. .................................. 2,400 58,200
Lowe's Companies, Inc. ................................... 9,100 301,438
Luby's Cafeterias, Inc. ................................. 1,300 26,487
May Department Stores Co. ................................ 13,400 596,300
McDonald's Corp. ......................................... 37,700 1,715,350
Mercantile Stores Co., Inc. .............................. 2,000 98,000
Nordstrom Inc. ........................................... 4,300 159,637
Penney, J.C. Co., Inc. ................................... 12,200 577,975
Pep Boys.................................................. 3,300 104,775
Price/Costco Inc. (b)..................................... 11,015 293,274
Ruby Tuesday.............................................. 900 16,088
Ryan's Family Steakhouse, Inc. (b)........................ 2,700 20,925
Sears Roebuck & Co. ...................................... 21,200 1,017,600
Skyline Corp. ............................................ 500 11,688
Specs Music Inc. (b)...................................... 200 125
Starbucks Corp. (b)....................................... 4,100 140,425
Tandy Corp. .............................................. 3,200 144,800
TJX Companies Inc. ....................................... 4,000 159,000
Toys 'R' Us, Inc. (b)..................................... 14,720 368,000
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
RETAIL--CONTINUED
Wal-Mart Stores, Inc. .................................... 123,600 $ 2,935,500
Walgreen Co. ............................................. 13,200 542,850
Whole Foods Market (b).................................... 3,300 59,813
Woolworth (F.W.) Co. (b).................................. 7,200 146,700
------------
14,474,669
------------
TECHNOLOGIES--20.6%
3Com Corp. (b)............................................ 9,000 604,125
Advanced Micro Devices, Inc. (b).......................... 7,300 255,500
Airborne Freight Corp. ................................... 1,200 32,100
Alaska Air Group, Inc. (b)................................ 800 17,300
Amdahl Corp. (b).......................................... 6,400 73,600
American Power Conversion Corp. (b)....................... 5,100 137,381
Analog Devices, Inc. (b).................................. 11,999 346,499
Apple Computer, Inc. ..................................... 6,600 109,725
Automatic Data Processing, Inc. ......................... 15,400 637,175
Baldor Electric Co. ...................................... 1,400 35,875
Borland International, Inc. (b)........................... 1,900 12,112
Cisco Systems, Inc. (b)................................... 35,300 2,462,175
Compaq Computer Corp. (b)................................. 15,200 1,320,500
Computer Assoc. International Inc. ....................... 19,400 880,275
Cooper Industries Inc. ................................... 5,700 245,812
Digital Equipment Corp. (b)............................... 8,300 311,250
DSC Communications Corp. (b).............................. 6,200 139,500
Grainger, (W.W.) Inc. .................................... 2,700 208,575
Hewlett-Packard Co. ...................................... 55,300 2,910,162
Hubbell Inc. (Class B).................................... 3,560 157,530
Intel Corp. .............................................. 44,600 7,236,350
International Business Machines Inc. ..................... 28,700 4,513,075
MCI Communications Corp. ................................. 37,200 1,306,650
Merix Corp. .............................................. 300 5,662
Micron Technology, Inc. .................................. 11,400 396,150
Microsoft Corp. .......................................... 64,500 6,579,000
Molex, Inc. .............................................. 5,400 206,550
National Semiconductor Corp. (b).......................... 7,500 208,125
Novell Inc. (b)........................................... 18,700 236,087
Perkin-Elmer Corp. ....................................... 2,400 167,700
Quarterdeck Corp. (b)..................................... 1,900 9,738
Raychem Corp. ............................................ 2,500 216,563
Shared Medical Systems Corp. ............................. 1,400 66,063
Solectron Corp. (b)....................................... 2,900 174,725
Sprint Corp. ............................................. 23,100 941,325
Stratus Computer Inc. (b)................................. 1,400 44,450
Sun Microsystems Inc. (b)................................. 20,000 635,000
Tandem Computers Inc. (b)................................. 6,400 88,800
Tektronix, Inc. .......................................... 2,000 99,250
Tellabs, Inc. (b)......................................... 10,000 411,875
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
COMMON STOCKS--CONTINUED
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
TECHNOLOGIES--CONTINUED
Thomas & Betts Corp. ..................................... 2,800 $ 131,250
Xilinx Inc. (b)........................................... 4,400 200,200
------------
34,771,759
------------
TRANSPORTATION--1.6%
AMR Corp. (b)............................................. 4,700 378,350
Consolidated Freightways, Inc. ........................... 1,200 10,500
CSX Corp. ................................................ 0 552,900
Delta Air Lines, Inc. .................................... 4,000 316,000
Federal Express Corp. (b)................................. 6,100 312,625
GATX Corp. ............................................... 1,100 53,763
Norfolk Southern Corp. ................................... 6,800 602,650
Roadway Services.......................................... 1,100 22,550
Ryder System, Inc. ....................................... 4,600 131,100
Southwest Airlines Inc. .................................. 8,000 176,000
UAL Corp. (b)............................................. 3,100 175,150
Yellow Corp. (b).......................................... 1,500 25,688
------------
2,757,276
------------
UTILITIES--7.5%
AGL Resources Inc. ....................................... 3,100 64,713
American Water Works Co., Inc. ........................... 4,100 95,325
Ameritech Corp. .......................................... 29,700 1,774,575
Bell Atlantic Corp. ...................................... 23,600 1,587,100
BellSouth Corp. .......................................... 54,200 2,405,125
Brooklyn Union Gas Company................................ 2,600 77,025
California Energy Co., Inc. (b)........................... 3,500 134,312
Citizens Utilities Co. (Class A) (b)...................... 12,535 142,589
Connecticut Energy Corp. ................................. 700 16,013
Eastern Enterprises....................................... 1,100 36,162
El Paso Natural Gas Co. .................................. 3,000 161,625
Equitable Resources Inc. ................................. 1,900 61,750
Idaho Power Co. .......................................... 2,200 68,475
LG & E Energy Corp. ...................................... 3,500 84,875
MCN Corp. ................................................ 3,600 116,550
NICOR Inc. ............................................... 2,700 97,538
Noram Energy Corp. ....................................... 7,300 114,063
Northwestern Public Service Co. .......................... 500 18,937
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
UTILITIES--CONTINUED
NYNEX..................................................... 24,000 $ 1,215,000
ONEOK Inc. ............................................... 1,500 44,438
Pacific Enterprises....................................... 4,400 132,550
Pacific Telesis Group..................................... 23,400 918,450
Peoples Energy Corp. ..................................... 1,900 63,175
Potomac Electric Power Co. ............................... 6,300 155,925
Public Service Co. of Colorado............................ 3,600 140,400
SBC Telecommunications.................................... 32,500 1,783,423
Southern New England Telecom.............................. 3,500 130,375
Telephone & Data Systems.................................. 3,300 125,813
US West Communications Group.............................. 25,300 831,738
Washington Gas Light Co. ................................. 2,300 50,888
------------
12,648,927
------------
VEHICLE COMPONENTS--0.5%
Cooper Tire & Rubber Co. ................................. 4,500 91,125
Cummins Engine Inc. ...................................... 2,100 110,513
Dana Corp. ............................................... 5,400 176,175
Federal-Mogul Corp. ...................................... 1,900 44,650
Genuine Parts............................................. 6,400 282,400
Modine Manufacturing Co. ................................. 1,600 45,600
Smith (A.O.).............................................. 1,200 40,050
Spartan Motors Inc. (b)................................... 700 5,338
SPX Corp. ................................................ 800 32,501
------------
828,352
------------
Total Common Stocks (Cost $121,975,433)........................... 166,550,344
------------
Other Assets Less Liabilities--1.5%............................... 2,553,600
------------
NET ASSETS--100.0%................................................ $169,103,944
============
</TABLE>
- -------
(a) The aggregate cost for federal income tax purposes is $121,975,432, the
aggregate gross unrealized appreciation is $46,017,567, and the aggregate
gross unrealized depreciation is $1,442,656, resulting in net unrealized
appreciation of $44,574,911.
(b) Non-income producing security.
See Notes to Financial Statements
16
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at value (Cost $121,975,433) (Note 1)................. $166,550,344
Cash.............................................................. 2,224,657
Receivable for securities sold.................................... 483,050
Dividends receivable.............................................. 218,065
------------
Total assets................................................... 169,476,116
------------
LIABILITIES:
Payable for securities purchased.................................. 325,563
Sponsorship fee payable (Note 2).................................. 46,609
------------
Total liabilities.............................................. 372,172
------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS.......... $169,103,944
============
NET ASSETS CONSIST OF:
Paid-in capital................................................... $169,103,944
============
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $339)............... $ 1,066,890
EXPENSES (NOTE 2):
Expense payment and sponsorship fees............................. 211,362
-----------
NET INVESTMENT INCOME............................................ 855,528
NET REALIZED GAIN ON INVESTMENTS (NOTE 3):
Proceeds from sales.................................. $ 1,054,315
Cost of securities sold.............................. 795,862
-----------
Net realized gain on investments.............................. 258,453
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of period.................................. 16,620,535
End of period........................................ 44,574,911
-----------
Net change in unrealized appreciation of investments.......... 27,954,376
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $29,068,357
===========
</TABLE>
See Notes to Financial Statements
17
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31, 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income.......................... $ 855,528 $ 1,132,780
Net realized gain on investments............... 258,453 697,337
Net change in unrealized appreciation of in-
vestments..................................... 27,954,376 6,861,507
------------ ------------
Net increase in net assets resulting from oper-
ations........................................ 29,068,357 8,691,624
------------ ------------
Transactions in Investors' Beneficial Interests:
Additions...................................... 49,705,015 52,533,365
Reductions..................................... (10,069,986) (14,827,219)
------------ ------------
Net increase from transactions in investors'
beneficial interests.......................... 39,635,029 37,706,146
------------ ------------
Total Increase in Net Assets.................... 68,703,386 46,397,770
NET ASSETS:
Beginning of period............................ 100,400,558 54,002,788
------------ ------------
End of period.................................. $169,013,944 $100,400,558
============ ============
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE YEAR ENDED JULY 31,
ENDED ------------------------------------------------------
JANUARY 31, 1997 1996 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................. 1.35%(a)(c) 1.48%(a) 1.85%(b) 2.13%(b) 1.88%(b) 1.99%(b)
Ratio of expenses to av-
erage net assets....... 0.33%(a)(c) 0.50%(a) 0.43%(b) 0.29%(b) 0.29%(b) 0.29%(b)
Portfolio Turnover...... 5% 5% 6% 8% 4% 3%
Average commission rate
paid per share......... $0.05 $0.05 -- -- -- --
</TABLE>
(a) Had the Expense Payment Agreement and the Sponsor Agreement not been in
place, the ratios of net investment income and expenses for the six months
ended January 31, 1997 would have been 1.34% and 0.34%, respectively and
for the year ended July 31, 1996 would have been 1.14% and 0.85%,
respectively.
(b) Reflects a voluntary waiver of fees by the Administrator and Adviser. Due
to limitations set forth in the Expense Payment 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 and 1992. 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.)
(c) Annualized.
See Notes to Financial Statements
18
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(UNAUDITED)
NOTE 1--ORGANIZATION AND 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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
the Index Portfolio's significant accounting policies.
(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 deemed necessary.
(D) 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 0.025% of the Index Portfolio's average daily net assets. Prior to
October 4, 1996, KLD received an investment advisory fee accrued daily at an
annual rate equal to 0.050% 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 0.10% of the Index Portfolio's average daily net assets. Prior to October 4,
1996, MEA received a fee based on 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) SPONSOR FEES: Pursuant to a Sponsorship Agreement dated November 6, 1996,
KLD agreed to pay all of the ordinary operating expenses of the Index Portfolio
except the sponsorship fee and excluding brokerage fees and commissions,
interest, taxes and extraordinary expenses. Under this arrangement, KLD
receives sponsorship fees from the Index Portfolio at an annual rate equal to
0.20% of the average daily net assets of the Index Portfolio. From October 4,
1996 to November 5, 1996, the Administrator, Signature Broker-Dealer Services,
Inc. ("Signature"), received expense payment fees from the Index Portfolio at
an annual rate equal to 0.20% of the average daily net assets of the Index
Portfolio, and prior to October 4, 1996, at an annual rate equal to 0.50% of
the average daily net assets of the Index Portfolio. The Sponsorship Agreement
will terminate on December 31, 1999. For the six months ended January 31, 1997,
the Sponsor and Administrator incurred approximately $217,798 in expenses on
behalf of the Index Portfolio.
(D) ADMINISTRATION FEES: Pursuant to an Administrative Services Agreement
between KLD and Signature, Signature serves as Administrator of the Index
Portfolio. Certain officers of Signature serve as officers and trustees to the
Index Portfolio. Under the Administrative Services Agreement, Signature
provides management and administrative services necessary for the operation 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 trustees affiliated with Signature. For these
services, Signature receives from KLD a fee accrued daily at an annual rate
equal to 0.025% of the Index Portfolio's average daily net assets.
NOTE 3--INVESTMENT TRANSACTIONS
Purchase and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $39,763,129 and $1,054,315, respectively.
19
<PAGE>
- --------------------------------------------------------------------------------
Semi-Annual Report
- --------------------------------------------------------------------------------
INVESTMENT ADVISER (BALANCED FUND) AND ADMINISTRATOR
Green Century Capital Management, Inc.
29 Temple Place [LOGO OF GREEN CENTURY FUNDS
Boston, MA 02111 APPEARS HERE]
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
Balanced
Fund
December 31, 1996
- --------------------------------------------------------------------------------
[LOGO OF GREEN CUNTURY FUNDS APPEARS HERE] Equity
Fund
Printed on recycled paper with soy-based ink. January 31, 1997
