News From Green Century Capital Management
10/20/2008 >> Green Century Balanced Fund Portfolio Manager Discusses Green Energy and Clean Tech Investments
The Green Century Balanced Fund's lead portfolio manager, Adam Seitchik, discussed the Fund’s green energy and clean technology investment initiatives at a telenews conference on October 16, 2008. Mr. Seitchik, the chief investment officer of Trillium Asset Management, addressed the power of investing in alternative and renewable energy companies even in the current economic climate.
At the conference, the 500-member Social Investment Forum (SIF), the leading U.S. membership association for socially and environmentally responsible investment professionals and institutions, released findings from a new survey indicating that demand for green energy and clean technology investments is on the rise in the United States. Green Century Capital Management (Green Century) has been a member of SIF since 1992.
From a cross-section of 14 SIF members, including Green Century and its partner firms KLD Research & Analytics and Trillium Asset Management, the survey found:
• 100 percent of the respondents reported "clean energy/tech investing" demand is up among clients.
• 17 mutual funds or other investment opportunities offered by the respondents now focus "exclusively on clean energy/tech investing." The assets reported for these investment vehicles are in excess of a quarter of a billion dollars.
• Nearly two out of three respondents said that it is "very important" to them "that clean energy/tech investment options be combined with shareholder advocacy and activism work to help move company policy and practice towards" better practices.
"As energy prices continue to fluctuate and the need to address climate change becomes ever more urgent, many investors want to blaze a trail for clean energy solutions that meet demand and respond to the impacts of climate change," said Lisa Woll, Chief Executive Officer of the Washington, D.C.-based SIF. "Our new survey confirms that Social Investment Forum members are at the forefront of 'green technology' and clean energy investing, which is rapidly becoming a major element of the mainstream American investment marketplace."
Mr. Seitchik stated: "Clean energy stocks have been crushed this year despite the fact that revenues and profits are growing rapidly. However, we believe that despite the increased risks associated with the credit crisis, the fundamentals of these firms are so strong that they will find necessary financing to continue rapid growth. Among solar stocks we follow, we believe revenues are likely to rise between 60 and 140 percent this year and between 45 and 200 percent next year, and most of the companies are now solidly profitable. Plunging stock prices have improved their valuations dramatically to between 10 and 20 times earnings. Trillium believes that these are extraordinarily attractive valuations for fast-growing companies even if the earnings estimates come down due to slowing economies and the credit crisis."
The Green Century Balanced Fund is an actively managed fund that invests primarily in the stocks and bonds of environmentally responsible and sustainable companies, many of which also make positive, innovative contributions to the environment. Recently, the Fund increased its positions in nine companies in the renewable energy or energy efficiency sectors.
Trillium Asset Management subadvises the Balanced Fund, which invests in the stocks and bonds of environmentally responsible and sustainable companies of various sizes, including small, medium and large companies. Investments in small and mid-cap companies may offer greater opportunities for growth as well as greater risks for price fluctuations than investments in larger, more established companies.
ABOUT THE ONLINE SURVEY: The online survey consisted of 14 questions and was conducted during September-October 2008 among the members of the Social Investment Forum. Of more than two dozen unduplicated responses, 14 were found to be complete on all major questions and used as the basis of this survey. The SIF survey is a membership poll and is not being put forward as a scientific survey that can be projected to include non-respondents.
NOTE: A streaming audio recording of the October 16, 2008 news event is available on-line at the website for the Social Investment Forum (www.socialinvest.org).
You should carefully consider the Green Century Funds’ investment objectives, risks, charges, and expenses before investing. To obtain a prospectus that contains this and other information about the Funds, call 1-800-93-GREEN, visit www.greencentury.com or email info@greencentury.com. Please read the prospectus carefully before you invest or send money.
Distributor: UMB Distribution Services, LLC 10/08
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