<PAGE>
SEMI-ANNUAL REPORT
Green Century Balanced Fund
Green Century Equity Fund
[LOGO OF GREEN CENTURY FUNDS] January 31, 2000
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 how to open an account and account services, call 1-800-221-5519
9:00 am to 5:00 pm Eastern Time, Monday through Friday. For share price and
account information, call 1-800-221-5519, twenty-four hours a day.
- --------------------------------------------------------------------------------
Dear Green Century Funds Shareholder:
The Green Century Funds were founded in 1991 by a partnership of
environmental advocacy organizations. Since that time, the mission of the Funds
has been to seek solid financial returns for environmentally conscious
investors while promoting greater corporate environmental responsibility and
accountability. We are proud to report to our many new investors and our long-
term shareholders our progress toward these goals.
A strong fourth quarter, driven by technology stocks, brought the
stock market to record highs at the end of the 1999 calendar year. The Standard
& Poor's 500 Index (the "S&P 500(R) Index"/1/) returned over 21.04% for
Calendar Year 1999, the fifth consecutive year of total returns above 20%, a
first in stock market history. We are happy to report that in this strong
investment climate, both of the Green Century Funds thrived and delivered
strong returns.* The noteworthy performance of the Balanced Fund captured media
attention in a large variety of financial and other publications, including The
Wall Street Journal, Kiplinger's Personal Finance, Money Magazine and The
Christian Science Monitor.
The Green Century Funds' assets under management grew over 80%, due
to both market appreciation and new investments (see below for specific
performance information), for the year ended January 31, 2000. We welcome our
many new investors and thank our long-term shareholders for your continued
commitment to environmentally responsible investing.
The Green Century Balanced Fund's one-year total return for the 1999
calendar year was 76.39%, far exceeding the 8.98% average annual total return
of balanced funds tracked by Lipper Analytical Services ("Lipper") for the same
period./2/ As of December 31, 1999, the three- and five-year average annual
total returns of the Balanced Fund were 23.57% and 22.78%, respectively, as
compared to the three- and five-year average annual total returns of balanced
funds tracked by Lipper of 14.69% and 16.33% as of the same date. Since
inception on March 18, 1992, the Balanced Fund's average annual total return
was 14.09%.*
For the six months period ended January 31, 2000, the Balanced Fund
was up 75.22% in contrast to the average total return of balanced funds tracked
by Lipper that rose 1.97% for the same time period.* As of January 31, 2000,
the Balanced Fund ranked #1 of the 457 balanced funds ranked by Lipper for the
one-year period and #1 of the 233 balanced funds tracked by Lipper for the
five-year period./2/
According to the Balanced Fund's Portfolio Manager, Jack Robinson,
the recent strong performance of the Fund is largely attributable to three
factors. First, the fixed income portion of the portfolio is in intermediate,
high-yield bonds which have tended to outperform higher quality bonds in
*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.
<PAGE>
periods of rising interest rates. Second, the stock market is rediscovering the
small-to mid-sized companies that presently offer attractive value and exposure
to the "new economy" emerging growth stocks of the
future. The Balanced Fund has emphasized these sectors recently. Lastly, green,
sustainable growth companies, after being overlooked by the market for some
time, are now receiving some recognition. "Healthy Living" companies that
produce goods such as natural foods are being acquired by larger, older
companies and most emerging energy stocks (fuel cells, solar and wind power)
are soaring as they become increasingly cost-competitive with the "old economy"
energy producers.
While we are very pleased with the noteworthy performance of the
Balanced Fund over the past year, we remind our shareholders to remain cautious
in your expectations for 2000. As of February 29, 2000, the Balanced Fund was
up 153.92% for the one-year period and 29.99% for the five-year period.*
Triple-digit and high double-digit returns likely cannot be sustained over the
long-term. In the context of high economic growth and signs of a pickup in
inflation, the Federal Reserve has already moved to rein in growth with
interest rate hikes, which, among other factors, could lead to reduced returns.
The Green Century Equity Fund's total return for the one-year ended
December 31, 1999 was 21.97%, exceeding the S&P 500(R) Index return of 21.04%.
The three-year average annual return was 29.87%, exceeding the three-year
average annual return of 27.56% for the S&P 500(R) Index, and the five-year
average annual total return of the Equity Fund was 29.11%, also exceeding the
S&P 500(R) Index's 28.56% performance for the same period. Since inception on
June 3, 1991, the average annual total return for the Green Century Equity Fund
was 19.17% as of December 31, 1999./3/*
As of January 31, 2000, the Green Century Equity Fund's one-, three-
and five-year average annual returns were, respectively, 8.64%, 24.47%, and
26.89% as compared to the 10.35%, 22.88%, and 26.59% average annual returns of
the S&P 500(R) Index for the same periods. Since inception on June 3, 1991, the
Equity Fund's average annual return was 18.19%.*
The Green Century Equity Fund invests primarily in a portfolio of 400
companies that comprise the Domini Social Index Portfolio (the "Index
Portfolio"), a broadly diversified portfolio that excludes companies with the
worst environmental and social records. As of January 31, 2000, 99.73% of the
net assets of the Fund were invested in the stocks of the 400 companies.
Relative to the unscreened S&P 500(R) Index, the Green Century Equity Fund
benefited from its overexposure to the semiconductor and computer software
industries and its underexposure to the tobacco, drug, defense, and aerospace
industries during the six months ended January 31, 2000. During the same
period, the Fund's performance was hurt relative to the S&P 500(R) Index by its
overexposure to the specialty retail and the food and beverages industries and
its underexposure to the drug industry.
Shareholder advocacy is an important component of the Green Century
Funds' mission of promoting greater corporate environmental responsibility. At
times, one or both of the Green Century Funds will hold a company which does
not meet our environmental standards for the express purpose of enabling the
Funds to advocate for changes in irresponsible corporate behavior. Green
Century utilizes the power of the Green Century Funds' shareholders to advocate
for greater corporate environmental responsibility and to work to hold
companies accountable for the impact of their actions on the environment.
In concert with a national campaign launched by Green Century's
founders, the Public Interest Research Groups (PIRGs), Green Century Capital
Management shareholder advocacy has continued to focus on efforts to preserve
the Coastal Plain of the Arctic National Wildlife Refuge from oil drilling. The
Coastal Plain is the biological heart of the Refuge. It is the only
conservation area in the nation that provides a complete range of Arctic
ecosystems balanced with a wide variety of wildlife including large populations
of caribou, muskoxen, brown, black and polar bears, wolves, Dall sheep, snow
geese and thousands of other
2
<PAGE>
migratory birds. The 125-mile long Coastal Plain is the only section of
Alaska's 1100-mile long North Slope not open for oil drilling.
The Green Century Equity Fund, on behalf of the Index Portfolio, re-
filed a shareholder resolution with Atlantic Richfield Company (ARCO)/4/ in
November of 1999. The resolution presses ARCO to unconditionally cancel any
future plans for oil drilling in the Arctic National Wildlife Refuge and
immediately stop the expenditure of any corporate funds targeted to achieve
this objective. We'll continue to report on our progress with ARCO in future
shareholder updates.
In the coming year, whether the financial markets continue to grow or
slow down, Green Century will continue the work of promoting greater corporate
environmental responsibility. Thank you for your investment in the Green
Century Funds.
Respectfully,
The Green Century Funds
/1/ The S&P 500(R) Index is an unmanaged index of 500 selected common stocks,
most of which are listed on the New York Stock Exchange. The S&P 500(R) Index
is heavily weighted toward stocks with large market capitalizations and
represents approximately two-thirds of the total market value of all domestic
stocks.
/2/ Lipper Analytical Services, Inc. ("Lipper") is a respected mutual fund
ranking service. The Lipper balanced fund category of mutual funds includes
funds whose primary objective is to conserve principal by maintaining at all
times a balanced portfolio of stocks and bonds.
/3/ The Green Century Equity Fund, which commenced investment operations in
September 1995, invests all 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, the 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.
/4/ As of January 31, 2000, ARCO comprised 0.40% of the Index Portfolio in
which the Equity Fund invests. The holdings of the Balanced Fund and the Equity
Fund may change due to ongoing management of the Funds. References to specific
investments should not be construed as a recommendation of the security by the
Funds, the advisor or the distributor.
This material must be preceded or accompanied by a current prospectus.
Distributor: Sunstone Distribution Services, LLC 3/00
3
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
COMMON STOCKS--70.4%
<S> <C> <C>
Telecommunications--20.0%
American Mobile Satellite Corp. (b)........................ 25,000 $ 389,062
Inter-Tel, Inc. ........................................... 25,000 750,000
NetOptix Corp. (b)......................................... 50,000 4,237,500
Texas Instruments Inc. .................................... 5,000 539,375
Time Warner, Inc. ......................................... 200 15,988
-----------
5,931,925
-----------
Healthcare--14.0%
Alkermes, Inc. (b)......................................... 8,000 530,500
Allscripts, Inc. (b)....................................... 7,500 357,187
ChromaVision Medical Systems, Inc. (b)..................... 35,000 514,063
Emisphere Technologies, Inc. (b)........................... 15,000 568,125
MedImmune, Inc. (b)........................................ 3,000 438,000
QLT PhotoTherapeutics Inc. (b)............................. 10,000 690,625
Thermo BioAnalysis Corp. (b)............................... 40,000 1,050,000
-----------
4,148,500
-----------
Internet Products & Services--10.5%
Ask Jeeves, Inc. (b)....................................... 1,700 162,350
eMerge Interactive, Inc. (b)(g)............................ 750 --
Macromedia, Inc. (b)....................................... 4,000 273,750
OneSource Information Services, Inc. (b)................... 20,000 260,000
S1 Corporation (b)......................................... 15,000 1,358,438
Safeguard Scientifics, Inc. (b)............................ 7,500 1,065,000
-----------
3,119,538
-----------
Alternative/Renewable Energy--8.6%
AstroPower, Inc. (b)....................................... 50,000 1,150,000
Evercel, Inc. (b).......................................... 3,300 127,669
Vestas Wind Systems A/S (b)(c)............................. 4,000 930,675
York Research Corp. (b).................................... 100,000 337,500
-----------
2,545,844
-----------
Technology--7.6%
ADE Corp. (b).............................................. 32,500 633,750
Intel Corp. ............................................... 400 39,575
Oak Technology, Inc. (b)................................... 50,000 650,000
Project Software & Development,
Inc. (b).................................................. 20,000 945,000
-----------
2,268,325
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
COMMON STOCKS--continued
<S> <C> <C>
Healthy Living--6.0%
Natrol, Inc. (b)......................................... 100,000 $ 671,880
United Natural Foods, Inc. (b)........................... 61,500 661,125
Whole Foods Market, Inc. (b)............................. 10,000 460,000
-----------
1,793,005
-----------
Capital Goods--2.0%
American Power Conversion
Corp. (b)............................................... 10,000 275,938
Hi-Rise Recycling Systems, Inc. (b)...................... 140,300 315,675
-----------
591,613
-----------
Financials--1.4%
American International Group, Inc........................ 187 19,471
Eaton Vance Corp. ....................................... 10,000 409,375
-----------
428,846
-----------
Consumer Non-Durables--0.3%
Thermo Trilogy Corp. (b)(d)(e)........................... 12,000 99,000
-----------
Basic Industries--0.0%
Champion International Corp. ............................ 100 5,850
-----------
Total Common Stocks
(Cost $11,563,626)...................................... 20,932,446
-----------
CORPORATE BONDS & NOTES--24.3%
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
Telecommunications--16.6%
EchoStar DBS Corp. 9.375%, due 2/01/09 (d)............... $1,000,000 $ 988,750
Level 3 Communications 9.125%, due 5/01/08............... 1,000,000 932,500
Nextel Communications 0%, due 2/15/08 (d)(f)............. 1,000,000 700,000
PSINet Inc.
11.50%, due 11/01/08.................................... 300,000 315,750
RCN Corp.
0%, due 10/15/07 (f).................................... 300,000 210,000
RCN Corp.
0%, due 2/15/08 (f)..................................... 300,000 195,750
Verio Inc.
11.25%, due 12/01/08 (d)................................ 300,000 315,000
Winstar Communications, Inc. 0%, due 10/15/05 (f)........ 1,250,000 1,250,000
-----------
4,907,750
-----------
</TABLE>
4
<PAGE>
GREEN CENTURY BALANCED FUND
PORTFOLIO OF INVESTMENTS--(concluded)
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
CORPORATE BONDS & NOTES--continued
Alternative/Renewable Energy--3.9%
AES Corp. 8.50%, due 11/01/07................... $1,000,000 $ 915,000
Calpine Corp. 8.75%, due 07/15/07............... 250,000 246,562
-----------
1,161,562
-----------
Consumer Goods & Services--2.2%
Frank's Nursery & Crafts 10.25%, due 3/01/08.... 200,000 85,000
Kindercare Learning Centers 9.50%, due 2/15/09.. 250,000 236,875
Nebraska Book Company 8.75%, due 2/15/08........ 200,000 170,000
Nebraska Book Company 0%, due 2/15/09 (f)....... 300,000 160,500
-----------
652,375
-----------
Food & Beverage--1.3%
Homeland Stores, Inc. 10.00%, due 8/01/03....... 250,000 188,750
Sparkling Spring Water 11.50%, due 11/15/07..... 250,000 196,250
-----------
385,000
-----------
Environmental Services--0.3%
ICF Kaiser International 13.00%, due 12/31/03... 200,000 100,500
-----------
Total Corporate Bonds and Notes (Cost
$7,665,331).................................... 7,207,187
-----------
U.S. TREASURY NOTES--1.7%
U.S. Treasury Note 6.125%, due 12/31/01......... 500,000 495,625
-----------
Total U.S. Treasury Notes
(Cost $499,701)................................ 495,625
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
<S> <C>
SHORT-TERM OBLIGATIONS--2.6%
Repurchase Agreements
Salomon Brothers, 4.97%, dated 1/31/00, due 2/1/00, proceeds
$777,527 (collateralized by U.S. Treasury securities with maturity
at 5/15/2004, value $793,198) (cost $777,420)..................... $ 777,420
-----------
TOTAL INVESTMENTS (a)--99.0%
(Cost $20,506,078)................................................ 29,412,678
-----------
Other Assets Less Liabilities--1.0%................................ 309,371
-----------
NET ASSETS--100%................................................... $29,722,049
===========
</TABLE>
- -------
(a) The cost of investments for federal income tax purposes is $20,506,078,
resulting in gross unrealized appreciation and depreciation of $9,712,801
and $806,201 respectively, or net unrealized appreciation of $8,906,600.
(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) Securities that may be resold to "qualified institutional buyers" under
Rule 144a or securities offered pursuant to Section 4(2) of the Securities
Act of 1933, as amended. These securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(e) Restricted Security. Purchased in a private placement transaction; resale
to the public may require registration or sale only to qualified
institutional buyers. Management has determined that its fair value at
January 31, 2000 is equal to cost.
(f) Step bond. Rate shown is currently in effect at January 31, 2000.
(g) Represent rights to purchase shares in an Initial Public Offering; shares
were subsequently purchased on 2/4/00 at a cost of $15.00 each.
See Notes to Financial Statements
5
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000
(unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $20,506,078)........................... $29,412,678
Receivables for:
Securities sold................................................... 984,132
Interest and dividends............................................ 158,418
Capital stock sold................................................ 229,252
-----------
Total assets...................................................... 30,784,480
-----------
LIABILITIES:
Payable for securities purchased................................... 1,005,000
Accrued expenses................................................... 57,431
-----------
Total liabilities................................................. 1,062,431
-----------
NET ASSETS......................................................... $29,722,049
===========
NET ASSETS CONSIST OF:
Paid-in capital.................................................... $18,056,255
Accumulated net realized gain on investments....................... 2,756,730
Net unrealized appreciation on investments......................... 8,906,600
Accumulated undistributed net investment income.................... 2,464
-----------
NET ASSETS......................................................... $29,722,049
===========
SHARES OUTSTANDING................................................. 1,389,650
===========
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE..... $ 21.39
===========
</TABLE>
GREEN CENTURY BALANCED FUND
STATEMENT OF OPERATIONS
For the six months ended January 31, 2000
(unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income.................................................... $ 242,710
Dividend income.................................................... 4,423
Miscellaneous loss................................................. (391)
-----------
Total investment income......................................... 246,742
-----------
EXPENSES (Note 2):
Administrative services fee........................................ 146,552
Investment advisory fee............................................ 73,274
Distribution fee................................................... 24,422
-----------
Total expenses.................................................. 244,248
-----------
NET INVESTMENT INCOME.............................................. 2,494
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 1):
Net realized gain on investments................................... 4,189,895
-----------
Net increase in net unrealized appreciation/depreciation of
investments....................................................... 7,449,258
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................... 11,639,153
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $11,641,647
===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
GREEN CENTURY BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 2000 JULY 31, 1999
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE IN NET ASSETS:
From Operations:
Net investment income.......................... $ 2,494 $ 140,122
Net realized gain (loss) on investments and
options written............................... 4,189,895 (1,400,197)
Net increase in unrealized net
appreciation/depreciation of investments and
options written............................... 7,449,258 1,939,922
----------- -----------
Net increase in net assets resulting from
operations.................................... 11,641,647 679,847
----------- -----------
Dividends and distributions to shareholders
(Note 1):
From net investment income..................... (5,342) (137,787)
From net realized gains........................ -- (1,046,950)
----------- -----------
Total dividends and distributions............... (5,342) (1,184,737)
----------- -----------
Capital share transactions (Note 4):
Proceeds from sales of shares.................. 4,897,377 3,191,755
Reinvestment of dividends and distributions.... 3,804 859,904
Payments for shares redeemed................... (2,084,685) (3,489,320)
----------- -----------
Net increase in net assets resulting from
capital stock transactions.................... 2,816,496 562,339
----------- -----------
Total Increase in Net Assets.................... 14,452,801 57,449
NET ASSETS:
Beginning of Period............................ 15,269,248 15,211,799
----------- -----------
End of Period (including undistributed net
investment income of $2,464 and $5,312 for the
six months ended January 31, 2000, and the
year ended July 31, 1999, respectively.)...... $29,722,049 $15,269,248
=========== ===========
</TABLE>
GREEN CENTURY BALANCED FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED FOR THE ONE MONTH FOR THE YEARS ENDED JUNE 30,
JANUARY 31, 2000 YEAR ENDED ENDED --------------------------------
(UNAUDITED) JULY 31, 1999 JULY 31, 1998 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period...... $ 12.21 $ 12.68 $ 13.79 $ 13.53 $ 13.34 $11.03 $ 9.68
------- ------- ------- ------- ------- ------ ------
Income from investment operations:
Net investment income.................... -- 0.11 -- 0.02 0.12 0.10 0.10
Net realized and unrealized gain (loss)
on investments.......................... 9.18 0.40 (1.11) 1.68 1.77 2.31 1.35
------- ------- ------- ------- ------- ------ ------
Total increase (decrease) from investment
operations............................... 9.18 0.51 (1.11) 1.70 1.89 2.41 1.45
------- ------- ------- ------- ------- ------ ------
Less dividends and distributions (Note 1):
Dividends from net investment income..... -- (0.11) -- (0.09) (0.10) (0.10) (0.10)
Distributions from net realized
gains................................... -- (0.87) -- (1.35) (1.60) -- --
------- ------- ------- ------- ------- ------ ------
Total decrease from dividends and
distributions............................ -- (0.98) -- (1.44) (1.70) (0.10) (0.10)
------- ------- ------- ------- ------- ------ ------
Net Asset Value, end of period............ $ 21.39 $ 12.21 $ 12.68 $ 13.79 $ 13.53 $13.34 $11.03
======= ======= ======= ======= ======= ====== ======
Total return.............................. 75.22%(a) 4.93% (8.05)%(a) 13.13% 15.22% 21.98% 15.00%
Ratios/Supplemental data:
Net assets, end of period (in 000's)..... $29,722 $15,269 $15,212 $16,286 $11,022 $8,215 $3,291
Ratio of expenses to average net assets.. 2.50%(b) 2.50% 2.50%(b) 2.50% 2.50% 2.50% 2.50%
Ratio of net investment income to average
net assets.............................. 0.03%(b) 1.00% 0.22%(b) 0.12% 0.94% 0.85% 0.97%
Portfolio turnover....................... 62%(a) 91% 4%(a) 96% 109% 136% 16%
</TABLE>
(a) Not annualized
(b) Annualized
See Notes to Financial Statements
7
<PAGE>
GREEN CENTURY EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000
(unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in Domini Social Index Portfolio, at value (Note 1)...... $36,229,827
Receivable for capital stock sold................................... 137,239
-----------
Total assets..................................................... 36,367,066
-----------
LIABILITIES:
Accrued expenses (Note 2)........................................... 39,106
-----------
NET ASSETS.......................................................... $36,327,960
===========
NET ASSETS CONSIST OF:
Paid-in capital..................................................... $27,382,620
Accumulated net realized gain on investment......................... 103,869
Net unrealized appreciation on investment........................... 8,841,471
-----------
NET ASSETS.......................................................... $36,327,960
===========
SHARES OUTSTANDING.................................................. 1,384,031
===========
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE...... $ 26.25
===========
</TABLE>
GREEN CENTURY EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended January 31, 2000
(unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME FROM INDEX PORTFOLIO:
Investment income from Index Portfolio............................. $ 155,898
Expenses from Index Portfolio...................................... (34,133)
----------
Net income from Index Portfolio................................. 121,765
----------
EXPENSES:
Administrative services fee (Note 2)............................... 216,682
----------
NET INVESTMENT LOSS................................................ (94,917)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENT:
Net realized gain on investment allocated from Index Portfolio..... 42,955
Net increase in net unrealized appreciation of investment allocated
from Index Portfolio.............................................. 2,253,459
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENT..................... 2,296,414
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $2,201,497
==========
</TABLE>
See Notes to Financial Statements
8
<PAGE>
GREEN CENTURY EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JANUARY 31, 2000 JULY 31, 1999
(UNAUDITED) (AUDITED)
<S> <C> <C>
INCREASE IN NET ASSETS:
From Operations:
Net investment loss............................ $ (94,917) $ (99,179)
Net realized gain on investment allocated from
Index Portfolio............................... 42,955 369,045
Net increase in net unrealized appreciation of
investment allocated from Index Portfolio..... 2,253,459 3,767,345
----------- -----------
Net increase in net assets resulting from
operations.................................... 2,201,497 4,037,211
----------- -----------
Dividends and distributions to shareholders:
From net realized gains........................ (103,620) (179,708)
----------- -----------
Total dividends and distributions.............. (103,620) (179,708)
----------- -----------
Capital Share Transactions (Note 4):
Proceeds from sales of shares.................. 7,001,725 13,046,220
Reinvestment of dividends and distributions.... 99,832 174,395
Payments for shares redeemed................... (2,635,314) (2,789,855)
----------- -----------
Net increase in net assets resulting from
capital share transactions.................... 4,466,243 10,430,760
----------- -----------
Total Increase in Net Assets.................... 6,564,120 14,288,263
NET ASSETS:
Beginning of period............................ 29,763,840 15,475,577
----------- -----------
End of period.................................. $36,327,960 $29,763,840
=========== ===========
GREEN CENTURY EQUITY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEARS SEPTEMBER 13, 1995
MONTHS ENDED ENDED JULY 31, (COMMENCEMENT OF
JANUARY 31, 2000 -------------------------- OPERATIONS) TO
(UNAUDITED) 1999 1998 1997 JULY 31, 1996
<S> <C> <C> <C> <C> <C>
Net Asset Value,
beginning of period.... $ 24.62 $ 20.44 $ 16.86 $11.04 $10.00
------- ------- ------- ------ ------
Income from investment
operations:
Net investment income
(loss)................ (0.07) (0.08) (0.03) 0.02 0.02
Net realized and
unrealized gain on
investment............ 1.78 4.47 3.62 5.84 1.04
------- ------- ------- ------ ------
Total increase from
investment operations. 1.71 4.39 3.59 5.86 1.06
------- ------- ------- ------ ------
Less dividends and
distributions:
Dividends from net
investment income..... -- -- -- (0.03) (0.02)
Distributions from net
realized gains........ (0.08) (0.21) (0.01) (0.01) --
------- ------- ------- ------ ------
Total decrease from
dividends and
distributions.......... (0.08) (0.21) (0.01) (0.04) (0.02)
------- ------- ------- ------ ------
Net Asset Value, end of
period................. $ 26.25 $ 24.62 $ 20.44 $16.86 $11.04
======= ======= ======= ====== ======
Total return............ 6.92%(a) 21.56% 21.32% 53.14% 10.64%(a)
Ratios/Supplemental
data:
Net Assets, end of
period (in 000's)..... $36,328 $29,764 $15,476 $5,275 $ 880
Ratio of expenses to
average net assets.... 1.50%(b) 1.50% 1.50% 1.50% 1.50%(b)
Ratio of net investment
income (loss) to
average net assets.... (0.57)%(b) (0.46)% (0.26)% 0.07% 0.49%(b)
Portfolio turnover (c). 2%(a) 8% 5% 1% n/a
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Represents portfolio turnover for the Index Portfolio.
See Notes to Financial Statements
9
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
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 (the "Balanced
Fund") and the Green Century Equity Fund (the "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 Equity
Fund accounts for its investment in the Index Portfolio as a partnership
investment and records its share of the Index Portfolio's income, expenses and
realized and unrealized gains and losses daily. The value of such investment
reflects the Fund's proportionate interest in the net assets of the Index
Portfolio (2.21% at January 31, 2000). 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 price 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, daily based on its investment in
the Index Portfolio.
10
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(continued)
(C) Distributions: Distributions to shareholders are recorded on the ex-
dividend date. The Funds declare and pay dividends of net investment
income, if any, semi-annually and distribute net realized capital gains,
if any, annually. The amount and character of income and net realized
gains to be distributed are determined in accordance with Federal income
tax rules and regulations, which may differ from generally accepted
accounting principles. These differences are attributable to permanent
book and tax accounting differences. Accordingly, at January 31, 2000
for the Equity Fund, a reclassification was recorded to increase
undistributed net investment income by $94,917, reduce undistributed net
realized gain by $9,831 and reduce paid-in capital by $85,086. No
reclassification was required for the Balanced Fund for the period ended
January 31, 2000.
(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 ("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 Adams,
Harkness, & Hill, Inc., 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
January 31, 2000 Green Century accrued fees of $54,140 to Winslow.
(C) Administrator: Green Century is the administrator ("the Administrator")
of the Green Century Funds. Pursuant to the Administrative Services
Agreement, Green Century pays all the expenses of each Fund other than
the investment advisory fees, 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, Sunstone Financial Group, Inc. ("Sunstone"), as
Subadministrator, is responsible for conducting certain day-to-day
administration of the Trust subject to the supervision and direction of
the Administrator. For the six months ended January 31, 2000, Green
Century accrued fees of $25,137 and $29,188 to Sunstone related to
services performed on behalf of the Balanced Fund and the Equity Fund,
respectively.
11
<PAGE>
GREEN CENTURY BALANCED FUND
GREEN CENTURY EQUITY FUND
NOTES TO FINANCIAL STATEMENTS--(concluded)
(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 pay a fee to
Sunstone Distribution Services, LLC, 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 activities.
For the six months ended January 31, 2000, the Balanced Fund accrued and
paid $24,422 to Sunstone Distribution Services, LLC 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 $14,316,907 and $12,096,358, respectively, for the six
months ended January 31, 2000.
Additions and reductions in the Equity Fund's investment in the Index
Portfolio aggregated $7,101,557 and $2,635,314 for the six months ended January
31, 2000.
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 FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JANUARY 31, 2000 JULY 31, 1999 JANUARY 31, 2000 JULY 31, 1999
<S> <C> <C> <C> <C>
Shares sold............. 279,426 284,115 273,554 572,365
Reinvestment of divi-
dends................... 203 77,885 3,617 7,585
Shares redeemed......... (140,964) (310,445) (101,973) (128,076)
-------- -------- -------- --------
138,665 51,555 175,198 451,874
======== ======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
12
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Basic Materials--1.1%
Air Products & Chemicals, Inc.............................. 57,800 $ 1,712,325
Alcoa, Inc................................................. 92,400 6,439,125
Bemis Company, Inc......................................... 13,100 413,469
Cabot Corporation.......................................... 16,500 396,000
Calgon Carbon Corporation.................................. 9,300 67,425
Caraustar Industries, Inc.................................. 6,400 123,600
Catalytica, Incorporated (b)............................... 9,300 133,106
Consolidated Papers, Inc................................... 22,500 621,563
Echo Bay Mines Ltd. ....................................... 33,400 43,838
Ecolab Inc................................................. 32,400 1,140,075
Fuller (H.B.) Company...................................... 3,500 227,500
IMCO Recycling Inc. ....................................... 3,800 43,225
Mead Corporation........................................... 25,700 957,325
Minerals Technologies Inc.................................. 5,100 230,138
Nucor Corporation.......................................... 21,850 1,087,038
Praxair, Inc............................................... 40,100 1,626,556
RyersonTull, Inc........................................... 6,400 122,000
Sigma-Aldrich Corporation.................................. 25,100 840,850
Sonoco Products Company.................................... 25,345 506,900
Stillwater Mining Company (b).............................. 9,500 338,438
Westvaco Corporation....................................... 25,100 688,681
Worthington Industries, Inc. .............................. 22,100 319,069
-----------
18,078,246
-----------
Capital Goods--2.1%
Ault Incorporated (b)...................................... 500 3,906
Avery Dennison Corporation................................. 28,400 1,924,100
Baldor Electric Company.................................... 9,100 155,269
Brady Corporation.......................................... 5,800 164,938
CLARCOR Inc. .............................................. 5,750 99,906
Cooper Industries, Inc. ................................... 23,500 901,813
Cross (A.T.) Company (b)................................... 4,000 19,500
Crown Cork & Seal Company, Inc............................. 30,200 613,438
Cummins Engine Company, Inc. .............................. 10,400 397,800
Deere & Company............................................ 58,900 2,573,194
Dionex Corporation (b)..................................... 5,400 155,250
Emerson Electric Co. ...................................... 109,600 6,034,850
Fastenal Company (b)....................................... 9,500 415,625
Graco Inc. ................................................ 4,975 152,981
Granite Construction Incorporated.......................... 6,550 130,591
Herman Miller, Inc. ....................................... 19,800 431,888
HON Industries, Inc. ...................................... 14,700 282,975
Hubbell Incorporated....................................... 16,160 419,150
Hunt Corporation........................................... 1,600 16,000
HutchinsonTechnology
Incorporated (b).......................................... 5,700 92,625
Illinois Tool Works Inc. .................................. 75,800 4,434,300
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Capital Goods--continued
Ionics, Inc. (b)........................................... 3,900 $ 115,538
Isco, Inc. (b)............................................. 800 4,300
Lawson Products, Inc. ..................................... 2,300 52,900
Leggett & Platt, Inc. ..................................... 49,500 891,000
Merix Corporation (b)...................................... 1,500 21,000
Milacron Inc. ............................................. 8,600 103,738
Millipore Corporation...................................... 11,400 488,063
Molex Incorporated......................................... 39,537 2,011,445
Moore Corporation.......................................... 21,100 122,644
National Service Industries, Inc. ......................... 10,300 256,213
New England Business Service, Inc. ........................ 3,300 64,969
Nordson Corporation........................................ 4,200 180,600
Osmonics, Inc. (b)......................................... 3,300 28,050
Pitney Bowes Inc........................................... 66,900 3,278,100
Sealed Air Corporation (b)................................. 20,900 1,173,013
Smith (A.O.) Corporation................................... 5,400 106,313
Solectron Corporation (b).................................. 73,900 5,366,988
Spartan Motors, Inc. ...................................... 1,700 6,906
Standard Register Company.................................. 6,700 103,850
Steelcase Inc.............................................. 5,700 64,838
Thomas & Betts Corporation................................. 14,600 444,388
Thomas Industries Inc...................................... 3,800 70,775
Watts Industries, Inc. .................................... 6,300 95,288
-----------
34,471,018
-----------
Communication Services--9.2%
AT&T Corp. ................................................ 805,877 42,510,012
Bell Atlantic Corporation.................................. 391,622 24,256,088
BellSouth Corporation...................................... 474,700 22,340,569
Citizens Utilities Company................................. 65,367 968,249
SBC Communications Inc..................................... 860,328 37,101,645
Sprint Corporation......................................... 219,800 14,218,313
Telephone and Data Systems, Inc. .......................... 15,600 1,622,400
U S West, Inc. ............................................ 127,441 8,474,826
-----------
151,492,102
-----------
Consumer Cyclicals--11.2%
American Greetings Corporation............................. 16,100 356,213
Angelica Corporation....................................... 2,100 19,425
Apogee Enterprises, Inc.................................... 6,700 30,988
AutoZone, Inc. (b)......................................... 36,800 966,000
Bandag, Incorporated....................................... 5,300 126,206
Banta Corporation.......................................... 6,550 124,450
Bassett Furniture Industries............................... 2,900 38,425
Black & Decker Corporation................................. 21,900 877,369
Block (H&R), Inc........................................... 24,500 1,056,563
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Consumer Cyclicals--continued
Brown Shoe Company, Inc ................................... 4,400 $ 45,650
Centex Corporation......................................... 14,800 325,600
Champion Enterprises, Inc. (b)............................. 11,600 89,175
Charming Shoppes, Inc. (b)................................. 25,300 172,356
Cintas Corporation......................................... 27,800 1,302,258
Circuit City Stores, Inc................................... 51,300 1,975,050
Claire's Stores, Inc....................................... 12,300 230,625
Cooper Tire and Rubber Company............................. 19,000 248,188
Costco Wholesale Corporation (b)........................... 111,930 5,477,574
Dana Corporation........................................... 41,100 965,850
Delphi Automotive Systems Corp............................. 142,500 2,467,031
DeVry Inc. (b)............................................. 17,500 322,656
Dillard, Inc............................................... 26,700 512,306
Dollar General Corporation................................. 67,101 1,425,896
Donnelly Corporation....................................... 1,400 18,463
Dow Jones & Company........................................ 22,600 1,401,200
Enesco Group, Inc.......................................... 3,400 33,363
Fedders Corporation........................................ 8,500 44,625
Federal-Mogul Corporation.................................. 18,100 273,763
Fleetwood Enterprises, Inc ................................ 8,500 138,656
Gap, Inc. (The)............................................ 215,987 9,651,919
Genuine Parts Company...................................... 44,500 1,073,563
Gibson Greetings, Inc. (b)................................. 3,800 33,250
Handleman Company (b)...................................... 7,200 75,600
Harcourt General........................................... 17,900 716,000
Harland (John H.) Company.................................. 7,200 120,600
Harman International Industries, Inc....................... 4,230 246,926
Hartmarx Corporation (b)................................... 7,800 23,888
Hillenbrand Industries, Inc................................ 16,500 561,000
Home Depot, Inc............................................ 580,697 32,881,968
Huffy Corporation.......................................... 2,500 14,219
IMS Health Incorporated.................................... 77,300 1,734,419
Interface, Inc............................................. 12,800 62,400
Jostens, Inc............................................... 8,000 187,500
Kaufman & Broad Home Corporation........................... 11,500 249,406
Kmart Corporation (b)...................................... 123,500 1,034,313
Lands' End, Inc. (b)....................................... 7,600 261,725
Lee Enterprises, Inc....................................... 11,200 297,500
Lillian Vernon Corporation................................. 2,200 25,575
Limited, Inc. (The)........................................ 54,200 1,663,263
Liz Claiborne, Inc......................................... 14,800 500,425
Lowe's Companies, Inc...................................... 96,400 4,301,850
Marriott International, Inc................................ 62,700 1,947,619
Mattel, Inc................................................ 105,285 1,098,912
May Department Stores Company.............................. 84,300 2,623,838
Maytag Corporation......................................... 21,600 874,800
McGraw-Hill Companies, Inc................................. 49,500 2,775,094
Media General, Inc......................................... 6,700 348,819
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Consumer Cyclicals--continued
Men's Wearhouse, Inc. (b)............................... 10,500 $ 250,688
Meredith Corporation.................................... 13,000 455,000
Modine Manufacturing Company............................ 7,100 175,725
New York Times Company.................................. 43,100 1,969,131
Nordstrom, Inc.......................................... 34,700 763,400
Omnicom Group Inc ...................................... 44,800 4,197,200
Oshkosh B'Gosh, Inc..................................... 3,800 68,875
Penney (J.C.) Company, Inc.............................. 65,600 1,287,400
Pep Boys--Manny, Moe & Jack............................. 12,600 91,350
Phillips-Van Heusen Corporation......................... 6,600 44,550
Reebok International Ltd. (b)........................... 13,400 98,825
Rouse Company (The)..................................... 18,000 400,500
Russell Corporation..................................... 7,900 118,006
Scholastic Corporation (b).............................. 4,100 264,450
Sears, Roebuck and Co................................... 95,300 2,948,344
Service Corporation International....................... 68,000 310,250
Shaw Industries, Inc.................................... 33,000 447,563
Sherwin-Williams Company (The).......................... 41,800 736,725
Skyline Corporation..................................... 2,200 45,375
Snap-On Incorporated.................................... 16,250 436,719
Springs Industries, Inc................................. 4,300 156,413
SPX Corporation (b)..................................... 7,715 570,910
Stanley Works (The)..................................... 22,600 567,825
Staples,Inc. (b)........................................ 117,100 2,788,444
Stride Rite Corporation................................. 11,200 67,900
Tandy Corporation....................................... 48,800 2,385,100
Target Corporation (b).................................. 111,100 7,339,544
Tennant Company......................................... 2,100 68,250
Timberland Company (The) (b)............................ 5,200 192,400
Times Mirror Company.................................... 17,200 1,018,025
TJX Companies, Inc...................................... 78,500 1,280,530
Toro Company............................................ 3,000 101,810
Toys R'Us, Inc. (b)..................................... 61,220 631,330
Venator Group, Inc. (b)................................. 35,000 210,000
VF Corporation.......................................... 29,500 765,155
Wal-Mart Stores, Inc.................................... 1,122,300 61,445,925
Washington Post Company................................. 2,600 1,430,000
Wellman, Inc............................................ 8,500 147,687
Whirlpool Corporation................................... 18,600 1,083,450
------------
183,813,089
------------
Consumer Staples--13.7%
Alberto-Culver Company.................................. 14,000 343,875
Albertson's, Inc........................................ 106,800 3,270,750
Avon Products, Inc...................................... 64,400 2,048,725
Ben & Jerry's Homemade, Inc. (b)........................ 1,200 27,300
Bergen Brunswig Corporation............................. 33,536 220,080
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Consumer Staples--continued
Bestfoods.................................................. 70,300 $ 3,058,050
Bob Evans Farms, Inc. ..................................... 10,400 165,100
Campbell Soup Company...................................... 107,900 3,392,106
Church & Dwight Co., Inc. ................................. 9,800 216,213
Clorox Company............................................. 59,600 2,845,900
Coca-Cola Company.......................................... 622,900 35,777,819
Colgate-Palmolive Company.................................. 146,900 8,703,825
Comcast Corporation (b).................................... 218,800 10,064,800
CVS Corporation............................................ 98,800 3,451,825
Darden Restaurants, Inc. .................................. 32,800 520,700
Deluxe Corporation......................................... 18,400 492,200
Disney, Walt Company (The)................................. 520,100 18,886,131
Donnelley (R.R.) & Sons Company............................ 31,500 691,031
Fleming Companies, Inc. ................................... 8,900 89,000
Fort James Corporation..................................... 54,700 1,463,225
General Mills Incorporated................................. 76,600 2,388,963
Gillette Company........................................... 270,500 10,177,563
Great Atlantic & Pacific Tea
Company, Inc. ............................................ 9,700 267,963
Hannaford Bros. Co. ....................................... 10,700 750,338
Heinz (H.J.) Company....................................... 90,400 3,361,750
Hershey Foods Corporation.................................. 34,900 1,483,250
Kellogg Company............................................ 102,200 2,478,350
Kelly Services, Inc. ...................................... 9,075 229,144
Kimberly-Clark Corporation................................. 137,264 8,501,789
Kroger Co. (b)............................................. 209,800 3,645,275
Longs Drug Stores Corporation.............................. 9,400 202,100
Luby's, Inc. .............................................. 5,400 59,063
McDonald's Corporation..................................... 341,500 12,699,531
MediaOne Group, Inc. (b)................................... 154,300 12,266,850
Nature's Sunshine Products, Inc. .......................... 3,800 33,250
Newell Rubbermaid Inc...................................... 71,178 2,135,340
Odwalla, Inc. (b).......................................... 500 3,531
Oneida Ltd................................................. 4,000 84,500
PepsiCo, Inc............................................... 367,100 12,527,288
Procter & Gamble Company................................... 331,400 33,429,975
Quaker Oats Company........................................ 33,700 2,000,938
Ralston Purina Company..................................... 81,600 2,289,900
RubyTuesday, Inc. ......................................... 7,400 138,750
Ryan's Family Steakhouse, Inc. (b)......................... 8,400 75,075
Smucker (J.M.) Company..................................... 7,000 122,500
Starbucks Corporation (b).................................. 45,600 1,459,200
SUPERVALU Inc. ............................................ 34,600 622,800
SYSCO Corporation.......................................... 83,100 2,955,244
TCBY Enterprises, Inc...................................... 4,100 13,837
Tootsie Roll Industries, Inc. ............................. 8,320 262,080
Tupperware Corporation..................................... 13,800 225,113
Viacom, Inc. (b)........................................... 34,900 1,947,854
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Consumer Staples--continued
Walgreen Company.......................................... 253,100 $ 6,991,887
Wendy's International, Inc................................ 30,000 564,375
Whitman Corporation....................................... 35,500 445,968
Whole Foods Market, Inc. (b).............................. 6,400 294,400
Wild Oats Markets, Inc. (b)............................... 5,550 91,575
Wrigley (Wm.) Jr. Company................................. 29,200 2,277,600
------------
225,233,564
------------
Energy--0.6%
Anadarko Petroleum Corporation............................ 32,200 1,056,563
Atlantic Richfield Company................................ 81,400 6,267,800
Helmerich & Payne, Inc.................................... 12,500 293,750
Rowan Companies, Inc. (b)................................. 20,800 471,900
Santa Fe Snyder Corporation (b)........................... 45,500 332,719
Sunoco, Inc. ............................................. 22,500 518,906
Union Pacific Resources Group, Inc........................ 63,000 693,000
------------
9,634,638
------------
Financials--13.9%
Aetna, Inc................................................ 39,070 2,080,478
AFLAC Inc................................................. 67,100 2,914,656
American Express Company.................................. 112,900 18,607,331
American General Corporation.............................. 62,362 3,831,365
American International Group, Inc......................... 390,437 40,654,253
Bank One Corporation...................................... 289,285 8,624,310
Capital One Financial Corporation......................... 49,700 2,037,700
Chittenden Corporation.................................... 6,761 191,421
Chubb Corporation......................................... 44,400 2,497,500
CIGNA Corporation......................................... 48,600 3,487,050
Cincinnati Financial Corporation.......................... 41,085 1,181,194
Dime Bancorp, Inc......................................... 28,400 401,150
Edwards (A.G.), Inc. ..................................... 23,387 774,694
Fannie Mae................................................ 258,500 15,493,844
Fifth Third Bancorp....................................... 77,825 5,165,634
First Tennessee National Corporation...................... 32,900 859,513
Firstar Corporation....................................... 247,200 5,901,900
FirstFed Financial Corp. (b).............................. 4,000 52,250
Freddie Mac............................................... 175,300 8,797,869
Golden West Financial..................................... 40,600 1,195,163
Household International, Inc. ............................ 118,546 4,178,747
HSB Group, Inc. .......................................... 7,350 202,584
Jefferson-Pilot Corporation............................... 26,450 1,553,938
Lincoln National Corporation.............................. 49,300 1,821,019
Marsh & McLennan Companies, Inc........................... 67,250 6,321,500
MBIA Inc.................................................. 25,100 1,256,569
MBNA Corporation.......................................... 202,250 5,106,813
Mellon Financial Corp. ................................... 128,300 4,402,294
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Financials--continued
Merrill Lynch & Co., Inc. ................................. 93,500 $ 8,111,125
MGIC Investment Corporation................................ 27,000 1,257,188
Morgan (J.P.) & Co. Incorporated........................... 43,700 5,366,906
National City Corporation.................................. 155,500 3,362,688
Northern Trust Corporation................................. 56,100 3,387,038
PNC Bank Corp. ............................................ 74,800 3,590,400
Progressive Corporation (The).............................. 18,300 1,139,175
Providian Financial Corporation............................ 35,800 3,020,625
ReliaStar Financial Corp. ................................. 22,400 665,000
SAFECO Corporation......................................... 32,500 796,250
Schwab (Charles) Corporation............................... 206,800 7,457,724
SLM Holding Corporation.................................... 40,100 1,561,393
St.Paul Companies, Inc. (The).............................. 57,364 1,731,675
SunTrust Banks, Inc. ...................................... 80,700 4,806,694
Synovus Financial Corp. ................................... 69,950 1,329,050
Torchmark Corporation...................................... 32,900 828,669
U.S. Bancorp............................................... 183,500 4,071,405
UnumProvident Corp. ....................................... 60,500 1,618,375
Value Line, Inc. .......................................... 2,400 88,200
Wachovia Corporation....................................... 51,100 3,273,594
Washington Mutual, Inc. ................................... 145,602 3,694,650
Wells Fargo & Company...................................... 414,200 16,568,000
Wesco Financial Corporation................................ 1,800 477,000
-----------
227,795,563
-----------
Healthcare--7.7%
Acuson Corporation (b)..................................... 6,400 86,400
ADAC Laboratories (b)...................................... 4,900 64,313
Allergan, Inc. ............................................ 33,200 1,892,400
ALZA Corporation (b)....................................... 25,500 910,031
Becton Dickinson and Company............................... 63,100 1,652,431
Biomet, Inc................................................ 28,500 1,134,656
Boston Scientific Corporation (b).......................... 104,600 2,170,450
Forest Laboratories, Inc. (b).............................. 21,100 1,424,250
Guidant Corporation (b).................................... 77,500 4,078,438
Humana Inc. (b)............................................ 41,900 335,200
Johnson & Johnson.......................................... 350,700 30,182,119
Mallinckrodt Inc. ......................................... 17,600 507,100
Manor Care, Inc. (b)....................................... 25,600 340,800
McKesson HBOC, Inc. ....................................... 71,020 1,460,349
Medtronic, Inc. ........................................... 301,500 13,793,625
Merck & Co., Inc. ......................................... 589,500 46,459,969
Mylan Laboratories, Inc. .................................. 32,600 867,975
Oxford Health Plans, Inc. (b).............................. 20,600 292,263
Schering-Plough Corporation................................ 370,500 16,302,000
St. Jude Medical, Inc. (b)................................. 21,000 521,063
Stryker Corporation........................................ 24,500 1,543,500
Sunrise Medical Inc. (b)................................... 5,300 25,175
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Healthcare--continued
United American Healthcare Corporation (b).............. 800 $ 1,000
Watson Pharmaceuticals, Inc. (b)........................ 24,200 975,561
------------
127,021,068
------------
Industrial, Construction & Housing--0.1%
American Power Conversion (b)........................... 48,200 1,330,021
------------
1,330,021
------------
Natural Resources--0.1%
Apache Corporation...................................... 28,800 1,051,200
------------
1,051,200
------------
Technology--36.8%
3Com Corporation (b).................................... 88,100 4,471,075
Adaptec, Inc. (b)....................................... 25,600 1,340,800
ADC Telecommunications, Inc. (b)........................ 37,700 2,485,844
Advanced Micro Devices, Inc. (b)........................ 36,800 1,334,000
Analog Devices, Inc. (b)................................ 44,000 4,114,000
Apple Computer, Inc. (b)................................ 40,600 4,212,250
Applied Materials, Inc. (b)............................. 95,400 13,093,650
Arrow Electronics, Inc. (b)............................. 23,900 501,900
Autodesk, Inc. ......................................... 15,300 467,606
Automatic Data Processing, Inc. ........................ 157,674 7,479,660
Avnet, Inc. ............................................ 10,400 558,350
BMC Software, Inc. (b).................................. 61,100 2,314,163
Ceridian Corporation (b)................................ 36,200 579,200
Cisco Systems, Inc. .................................... 825,000 90,337,500
Compaq Computer Corporation............................. 428,788 11,738,072
Computer Associates
International, Inc..................................... 135,900 9,334,631
Compuware Corporation (b)............................... 90,300 1,913,231
CPI Corp................................................ 2,400 53,550
Dell Computer Corporation (b)........................... 640,800 24,710,850
EMC Corporation (b)..................................... 256,600 27,327,900
Gerber Scientific Inc. ................................. 5,300 98,713
Grainger (W.W.), Inc. .................................. 23,400 1,121,738
Hewlett-Packard Company................................. 257,000 27,820,250
Ikon Office Solutions, Inc. ............................ 37,600 303,150
Inprise Corporation (b)................................. 14,600 178,850
Intel Corporation....................................... 842,600 83,364,738
Lexmark International
Group, Inc. (b)........................................ 32,200 3,034,850
LSI Logic Corporation (b)............................... 37,500 3,065,625
Lucent Technologies, Inc................................ 790,200 43,658,550
Micron Technology, Inc. (b)............................. 68,100 4,234,969
Microsoft Corporation (b)............................... 1,301,400 127,374,525
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS--(Concluded)
January 31, 2000
(unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Technology--continued
National Semiconductor
Corporation (b).......................................... 43,300 $ 2,273,250
Novell, Inc. (b).......................................... 84,000 2,803,500
Paychex, Inc. ............................................ 62,200 2,740,688
PE Corp-PE Biosystems Group (b)........................... 6,550 1,319,416
PeopleSoft, Inc. (b)...................................... 67,700 1,523,250
Polaroid Corporation...................................... 10,600 251,750
QRS Corporation (b)....................................... 3,400 245,650
Qualcomm Inc. (b)......................................... 166,400 21,132,800
Sanmina Corporation (b)................................... 14,700 1,561,875
Scientific-Atlanta, Inc. ................................. 19,800 1,525,838
Shared Medical Systems Corporation........................ 6,700 296,475
Sun Microsystems, Inc. (b)................................ 394,000 30,953,625
Symantec Corporation (b).................................. 14,500 725,906
Tektronix, Inc. .......................................... 11,700 474,581
Tellabs, Inc. (b)......................................... 101,500 5,481,000
Texas Instruments Incorporated............................ 202,300 21,823,113
Xerox Corporation......................................... 167,500 3,496,560
Xilinx, Inc. (b).......................................... 80,400 3,678,300
------------
604,931,767
------------
Transportation--0.8%
Airborne Freight Corporation.............................. 12,300 238,313
Alaska Air Group, Inc. (b)................................ 6,700 213,563
AMR Corporation (b)....................................... 40,900 2,200,931
Consolidated Freightways Corporation (b).................. 4,700 27,319
Delta Air Lines, Inc. .................................... 34,600 1,602,413
FDX Holding Corporation (b)............................... 75,300 2,979,056
GATX Corporation.......................................... 12,400 356,500
Norfolk Southern Corporation.............................. 96,000 1,632,000
Roadway Express, Inc. .................................... 4,700 108,100
Ryder System, Inc. ....................................... 16,800 370,650
Southwest Airlines Co. ................................... 127,175 2,026,852
UAL Corporation (b)....................................... 13,400 765,475
Yellow Corporation (b).................................... 6,000 91,500
------------
12,612,672
------------
Utilities--8.77%
AGL Resources Inc. ....................................... 14,400 246,600
American Water Works, Inc. ............................... 24,000 582,000
Cascade Natural Gas Corporation........................... 2,600 38,513
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
Utilities--continued
Cleco Corporation..................................... 5,500 $ 184,938
Connecticut Energy Corporation........................ 2,500 103,594
Eastern Enterprises (b)............................... 6,800 388,875
El Paso Energy Corporation............................ 57,600 1,857,600
Energen Corporation................................... 6,900 119,025
Enron Corp. .......................................... 180,500 12,172,469
Equitable Resources, Inc. ............................ 8,100 279,450
IDACORP Inc. ......................................... 9,500 318,844
KeySpan Corporation................................... 33,700 789,844
LG&E Energy Corp. .................................... 32,200 547,400
MCN Energy Group, Inc. ............................... 21,300 548,475
National Fuel Gas Company............................. 9,700 432,256
New Century Energies, Inc. ........................... 28,900 836,290
NICOR Inc. ........................................... 11,800 404,150
Northwest Natural Gas Company......................... 5,800 118,900
Northwestern Corporation.............................. 5,300 117,263
OGE Energy Corp. ..................................... 19,400 394,060
Peoples Energy Corporation............................ 8,900 278,125
Potomac Electric Power Company........................ 29,600 714,100
Questar Corporation................................... 20,600 315,425
Washington Gas Light Company.......................... 11,600 291,450
Williams Companies, Inc. ............................. 109,600 4,247,000
--------------
26,326,646
--------------
Total Investments (a) 98.8%................................... $1,623,791,594
Other Assets, less liabilities--1.2%.......................... 20,324,234
--------------
NET ASSETS--100.0%............................................ $1,644,115,828
==============
</TABLE>
- -------
(a) The aggregate cost for book and federal income tax purposes is
$1,184,250,167, the aggregate gross unrealized appreciation is $506,503,389
and the aggregate gross unrealized depreciation is $66,960,960, resulting
in net unrealized appreciation of $439,541,427.
(b) Non-income producing security.
See Notes to Financial Statements
17
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000
(unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $1,184,250,167)...................... $1,623,791,594
Cash............................................................ 17,711,370
Receivable for securities sold.................................. 1,611,720
Dividends receivable............................................ 1,335,971
--------------
Total assets................................................. 1,644,450,655
--------------
LIABILITIES:
Accrued expenses (Note 2)....................................... 334,827
--------------
Total liabilities............................................ 334,827
--------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS........ $1,644,115,828
==============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended January 31, 2000
(unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding tax of $304).............. $ 7,028,645
------------
EXPENSES
Management fee (Note 2)......................................... 1,504,680
Professional fees............................................... 52,157
Custody fees (Note 3)........................................... 165,296
Trustee fees.................................................... 9,308
Miscellaneous................................................... 2,365
------------
Total expenses.................................................. 1,733,806
Fees paid indirectly......................................... (152,700)
Expenses paid and fee waived by manager...................... (47,176)
------------
Net expenses................................................. 1,533,930
------------
NET INVESTMENT INCOME........................................... 5,494,715
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales................................ $ 26,354,461
Cost of securities sold............................ 24,419,372
------------
Net realized gain on investments............................. 1,935,089
NET CHANGES IN UNREALIZED APPRECIATION OF INVESTMENTS
Beginning of period................................ $338,923,398
End of period...................................... 439,541,427
------------
Net change in unrealized appreciation........................ 100,618,029
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $108,047,833
============
</TABLE>
See Notes to Financial Statements
18
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment income........................ $ 5,494,715 $ 7,958,967
Net realized gain on investments............. 1,935,089 15,875,272
Net change in unrealized appreciation of in-
vestments................................... 100,618,029 163,202,630
-------------- --------------
Net Increase in Net Assets Resulting from Op-
erations.................................... 108,047,833 187,036,869
-------------- --------------
Transactions in Investors' Beneficial
Interest:
Additions.................................... 294,103,369 531,746,685
Reductions................................... (105,440,155) (13,614,408)
-------------- --------------
Net Increase in Net Assets from Transactions
in Investors' Beneficial Interests.......... 188,663,214 518,132,277
-------------- --------------
Total Increase in Net Assets.................. 296,711,047 705,169,146
NET ASSETS:
Beginning of period.......................... 1,347,404,781 642,235,635
-------------- --------------
End of period................................ $1,644,115,828 $1,347,404,781
============== ==============
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FOR THE YEARS ENDED JULY 31,
JANUARY 31, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net Assets (000's)...... $1,644,116 $1,347,405 $642,236 $292,359 $100,401
Ratio of net investment
income to average net
assets................. 0.73%(1) 0.84%(1) 1.05%(2) 1.34% 1.48%(4)
Ratio of expenses to
average net assets..... 0.22%(1)(3) 0.24%(1)(3) 0.24%(1)(3) 0.29%(3) 0.59%(3)(4)
Portfolio turnover rate. 2% 8% 5% 1% 5%
</TABLE>
(1) Reflects a voluntary expense reimbursement and fee waiver of 0.01% by the
Manager. Had the manager not waived their fee and reimbursed expenses, the
annualized ratios of net investment income and expense to average net
assets for the six months ended January 31, 2000 would have been 0.72% and
0.23%, respectively, and for the year ended July 31, 1999 would have been
0.83% and 0.25%, respectively.
(2) Reflects a waiver of 0.01% of fees by the Manager due to limitations set
forth in the Management Agreement. Had the Manager not waived their fees,
the ratios of net investment income and expenses to average net assets for
the year ended July 31, 1998 would have been 1.04% and 0.25%, respectively.
(3) Ratio of expenses to average net assets for the years ended July 31, 1999,
1998, 1997 and 1996 include indirectly paid expenses. Excluding indirectly
paid expenses, the expense ratios would have been 0.20% for the six months
ended January 31, 2000 and 0.20%, 0.20%, 0.25% and 0.50% for the years
ended July 31, 1999, 1998, 1997 and 1996, respectively.
(4) Had the Expense Payment Agreement and Sponsor Arrangement not been in
place, the ratios of net investment income and expense for the years ended
July 31, 1996 would have been 1.14% and 0.85% respectively.
(5) Reflects a voluntary waiver of fees by the Administrator and Adviser 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 for the year ended
July 31, 1995 would have been 1.75% and 0.53% respectively.
See Notes to Financial Statements
19
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
January 31, 2000
(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 400
Social Index (the "Index"), which is a common stock index developed and
maintained by Kinder, Lydenberg, Domini & Co., Inc. ("KLD"). 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 reported on the ex-dividend date.
(C) Federal Taxes: The Index Portfolio will be treated as a partnership for
U.S. federal income tax purposes and is therefore not subject to U.S.
federal income tax. As such, each investor in the Index Portfolio will
be taxed on its share of the Index Portfolio's ordinary income and
capital gains. It is intended that the Portfolio will be managed in
such a way that an investor will be able to satisfy the requirements of
the Internal Revenue Code applicable to regulated investment companies.
(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) Manager. Domini Social Investments LLC ("DSIL" or the "Manager") is
registered as an investment adviser under the Investment Advisers Act
of 1940. The services provided by the Manager consist of investment
supervisory services, overall operational support and administrative
services. The administrative services include the provision of general
office facilities and supervising the overall administration of the
Index Portfolio. For its services under the Management Agreement, the
Manager receives from the Index Portfolio a fee accrued daily and paid
monthly at an annual rate equal to 0.20%.
(B) Submanager. Mellon Equity provides investment submanagement services to
the Index Portfolio on a day-to-day basis pursuant to a Submanagement
Agreement with DSIL. Mellon Equity does not determine the composition
of the Domini Social Index.
20
<PAGE>
NOTE 3--Investment Transactions
Cost of purchases and sales of investments, other than U.S. Government
securities and short-term obligations, for the six months ended January 31,
2000 aggregated $189,841,588 and $26,354,461, respectively. Custody fees of the
Portfolio were reduced by $152,700 which was compensation for uninvested cash
left on deposit with the custodian.
21
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
YOUR NOTES
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
YOUR NOTES
<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
[LOGO OF GREEN CENTURY FUNDS]
INVESTMENT SUBADVISER (Balanced Fund)
Winslow Management Company
60 State Street
Boston, MA 02109
INVESTMENT MANAGER (Index Portfolio)
Domini Social Investments LLC
11 West 25th Street
New York, NY 10010
INVESTMENT SUBMANAGER (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
Sunstone Financial Group, Inc. (Subadministrator)
Sunstone Distribution Services, LLC (Distributor)
207 East Buffalo Street, Suite 400
Milwaukee, WI 53202
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
Unified Fund Services, Inc.
431 North Pennsylvania Street
Indianapolis, IN 46204-1806
COUNSEL TO GREEN CENTURY CAPITAL MANAGEMENT, INC.
Goulston & Storrs January 31, 2000
400 Atlantic Avenue
Boston, MA 02110
INDEPENDENT AUDITORS
KPMG LLP
99 High Street
Boston, MA 02110 Balanced Fund
================================================================================
[LOGO OF GREEN CENTURY FUNDS] Equity Fund
An investment for your future.
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