ENVIRONMENTALLY RESPONSIBLE INVESTING
Environmentally responsible investing means aligning your financial goals with your commitment to the environment. Or more simply, investing with your principles and your pocketbook in mind.
The roots of environmentally responsible investing can be traced back centuries to the early Quakers who refused to profit from companies invested in the slave trade. In the 1920's, many U.S. churches chose not to invest in alcohol or tobacco products. And in the 1970's and 1980's, the public outcry to direct capital away from companies that profited from apartheid in South Africa demonstrated the power of social investing.
The environmentalists who founded the Funds in 1991 were inspired by this long tradition. Our founders wanted to offer environmentally conscious investors a way to invest for their future without sacrificing their principles. What environmentalist wants to profit from dioxin, ozone-depleting chemicals or nuclear power?
Traditionally, there are three major strategies of socially and environmentally responsible investing, each of which is exemplified in the Green Century family of funds:
(1) Channel capital toward companies whose products and services contribute to a safe and healthy environment. Investors promote environmental solutions and leadership by investing in well-managed, environmentally responsible companies. By minimizing environmental risks, we believe these companies can enjoy competitive advantages from cost reductions, quality improvements, profitability enhancements and access to expanding and new growth markets. This is the philosophy behind our Balanced Fund.
(2) Divert capital away from environmentally destructive businesses. Companies that pursue the least environmentally sound practices can be at the greatest risk of negative economic consequences; for instance, a company may face liabilities if a business operation or service is determined to be harmful to the environment. By directing investors' dollars away from companies that flout basic standards for environmental responsibility, we demonstrate support for responsible companies and create an incentive for less responsible companies to clean up their acts. This is our Equity Fund's strategy.
(3) Make small investments in less responsible companies to use as leverage to influence corporate behavior. This strategy, known as shareholder advocacy, is a crucial tool for environmentally responsible investors. By filing shareholder resolutions.
THE BALANCED FUND RANKS 1 OUT OF 448 BALANCED FUNDS FOR 1999
Management, Inc. announced today that the Balanced Fund, which had a total return of 76.39% for the one-year period ended December 31, 1999, was the top performer of all 448 balanced funds tracked by Lipper for the same time period.1 The following chart compares the average annual returns of the Green Century Balanced Fund to the average annual total return of balanced funds tracked by Lipper:
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 Balanced Fund is an environmentally responsible no-load mutual fund which primarily invests in the stocks and bonds of select companies that have clean environmental records, many of which also make positive environmental contributions. GCCM believes that well-managed environmentally responsible companies minimize their environmental risks, potentially allowing them to enjoy competitive advantages from cost reductions and access to expanding new growth markets.
"As the performance of the Green Century Balanced Fund demonstrates, 1999 was a watershed year for environmentally responsible investing. This is a bias which we believe may continue into the new millenium," said Jackson Robinson, the Fund's portfolio manager and President of Company, a division of "Our largest holding at year end, NetOptix (OPTX)2 , is a strong financial and environmental performer. OPTX develops and manufactures components that expand bandwidth capacity of existing fiber optic cables, thereby supporting the growth of a paperless society driven by increasing Internet use and telecommuting capabilities."
Founded and wholly owned by environmental advocacy organizations, Management administers two environmentally responsible no-load mutual funds: the Green Century Balanced Fund and the Fund. As a result of GCCM's non-profit ownership, all profits on the fees earned for managing the funds, when realized, will be distributed to a partnership of non-profit advocacy organization founders.
For more complete information, including a free prospectus and details on fees and expenses, The prospectus should be read carefully before investing or sending money.
1 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. The rankings are based on total return.
2 As of December 31, 1999 NetOptix comprised 13.02% of the portfolio of the Fund. The holdings of the Balanced Fund may change due to ongoing management of the Fund and should not be considered a recommendation of the securities by the Fund, the adviser or the distributor.
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