Citing both its returns as compared to the S&P 500 and its 4-star Overall Morningstar Rating (based on risk-adjusted performance against 810 Moderate Allocation Funds as of 12/31/2012),*** the Green Century Balanced Fund stated that these results support its belief that companies that seek to protect the environment may be more profitable in the long-term than companies that damage our water, air and land. The analysis was performed by leading environmental data and analysis firm Trucost and is based on measuring the tons of carbon emissions per million dollars of revenue of the companies held by the Balanced Fund and those of the companies included in the S&P 500 Index.
“Reducing the Balanced Fund’s carbon footprint is a key way that Green Century is working to curb climate change while providing competitive investment options for those who want to green their portfolios,” says Green Century Senior Vice President Leslie Samuelrich. “We believe in avoiding companies whose environmental negligence could threaten our shareholders’ investments and values and investing in companies that pay attention to their environmental impacts.” added Samuelrich.
“Investors are increasingly benefiting from strategies that integrate carbon and broader natural capital considerations within traditional investment analysis. Green Century broke new ground with its first report on the carbon footprint of its flagship Balanced Fund and does so again with this report,” says Divya Mankikar, Vice President, Trucost. “The carbon analysis demonstrates how fund managers can identify hidden natural capital risk in their portfolios and we commend Green Century for its continued commitment and pro-active approach.”
“We are seeing a growing trend of individual and institutional investors who want lower carbon investments,” says Matt Patsky, CEO, Trillium Asset Management, which serves as the subadvisor to Green Century’s Balanced Fund. “Many investors have found that not owning traditional energy companies at all is an appropriate decision and can be incorporated into a portfolio with minimal negative impact on performance over the long-term. Green Century has been on the forefront of clean energy and environmental investing for over two decades and Trillium is proud to work with them on this fossil fuel free investment option.”
Other key findings include:
1. Green Century Balanced Fund’s low carbon intensity is attributable in large part to the Fund’s avoidance of the Utilities, Oil and Gas, and Basic Resources sectors and stock selection within the Insurance sector. In aggregate, the two sectors that have the greatest positive effect on the Fund’s carbon footprint are Oil & Gas and Insurance, which contribute 38.42% of the Fund’s increased carbon efficiency.
2. The total carbon footprint of the Balanced Fund is 122.85 (tCO2e/$mn) compared to the footprint of the S&P 500® Index which is 243.27 (tCO2e/$mn).
Steve Schueth, President of First Affirmative Financial Network, which supports a nationwide network of investment professionals who specialize in serving socially conscious investors, said, “Companies of the future are finding ways to reduce their carbon footprint, sometimes dramatically. We believe that those companies are likely to realize significant competitive advantages in a resource-constrained world, provide superior returns to investors, and help usher in a more sustainable future for us all.” First Affirmative recently added a fossil fuel free investment strategy that includes the Green Century Balanced Fund.
Margie Alt, Executive Director of Environment America, states, “With global warming threatening our climate and the future of the planet as we know it, we must tackle carbon pollution in every way possible. With its fossil free fund, Green Century plays an important role in the shift to a low-carbon future.”
The analysis was performed by Trucost, the world’s leading provider of data and analysis on the carbon impacts of companies. The methodology of Trucost’s carbon audit included calculating the direct and indirect (major supplier) greenhouse gas emissions for each company in the Green Century Balanced Fund portfolio as of January 31, 2013. Each holding’s contribution to the emissions profile of the portfolio is then calculated on an equity ownership basis. The carbon footprint of the Fund is normalized by its value to produce a measure of carbon intensity. The same analysis was also conducted on the S&P 500 Index for the purposes of comparison.
The Balanced Fund is a diversified fund that invests in the stocks and bonds of companies that make positive contributions to the environment. The Balanced Fund invests in companies that demonstrate a commitment to protecting the environment by the products they make or services they provide, including renewable energy, as well as companies that disclose their policies and performance on critical environmental sustainability criteria, such as plans to minimize risks to water, air and public health.
Download: A Green(er) Portfolio
* The S&P 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The S&P 500Index is heavily weighted toward stocks with large market capitalization and represents approximately two-thirds of the total market value of all domestic stocks. It is not possible to invest directly in the S&P 500 Index.
** Performance data
|Average Annual Return
Total expense ratio: 1.48%
|Three Months||One Year||Five Years||Ten Years|
|December 31, 2012||Green Century Balanced Fund
S&P 500® Index
The performance data quoted represents past performance and is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information as of the most recent month-end, call 1-800-93-GREEN. Performance includes the reinvestment of income dividends and capital gain distributions. Performance shown does not reflect the deduction of taxes that a shareholder might pay on Fund distributions or the redemption of Fund shares. A redemption fee of 2.00% may be imposed on redemptions or exchanges of shares you have owned for 60 days or less. Please see the Prospectus for more information.
*** ©2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of 12/31/12, the Green Century Balanced Fund was rated against the following numbers of U.S.-domiciled moderate allocation funds over the following time periods: 810 funds in the last three years, 707 funds in the last five years, and 409 funds in the last ten years. With respect to these moderate allocation funds, the Green Century Balanced Fund received a Morningstar Rating of 3 stars, 3 stars and 4 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.
Stocks will fluctuate in to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. Bonds are subject to risks including interest rate, credit, and inflation. You should carefully consider the Funds’ investment objectives, risks, charges, and expenses before investing. To obtain a prospectus that contains this and other information about the Funds, please email firstname.lastname@example.org, call 1-800-93-GREEN (1,800-934-7336) or visit our website at www.greencentury.com. Please read the Prospectus carefully before investing.
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