Sustainable, responsible and impact (SRI) investing assets now account for one in four dollars in total assets under professional management in the United States, so it’s no surprise that new SRI investment vehicles have been proliferating. In fact, more than 140 environmental, social, and governance (ESG) funds launched in just the last year.
The sheer number of ESG firms makes it even more impressive that the Green Century Equity Fund recently was named one of the Top 10 Socially Conscious Funds in the U.S. by Bloomberg.1
This is the third time in row that the Green Century was included in Bloomberg’s rankings, which are entirely based on performance. Specifically, Bloomberg evaluated Funds’ one-year, three-year and five-year annualized returns, weighted equally.
Green Century achieved this best-in-class performance while offering truly environmentally-responsible Funds.
Unlike some purported ESG funds that justify their investments in ExxonMobil* and other environmentally-reckless companies by arguing that the corporations are less irresponsible than their industry peers, Green Century only invests in environmentally-responsible companies.
As you can see, the methodology of the Green Century Equity Fund index is very clear. The Fund does not invest in corporations that explore for, extract, process, refine, and transmit coal, oil, and gas; burn fossil fuels to make electricity; or possess carbon reserves. The Equity Fund also does not invest in any company that produces nuclear energy, nuclear weapons, civilian firearms, military weapons, tobacco, GMOs (Genetically Modified Organisms), or alcohol. The Equity Fund then uses environmental, social and governance (ESG) ratings to invest in highest rated companies in the remaining sectors of the economy.
Green Century also offers an award-winning and in-house shareholder advocacy program. Unlike some funds, we don’t outsource our shareholder advocacy. And unlike other “sustainable” funds, Green Century doesn’t just vote its proxies and call it a day. This year, we are directly engaging more than 50 companies to reduce food waste, source more renewable energy, protect endangered species, and more.
Additionally, all of the profits Green Century earns from managing its Funds go back to its environmental and public health nonprofit owners. Our owners recently convinced McDonald’s,* the largest beef purchaser in the U.S., to phase out the use of antibiotics in its beef supply chain.
1As of November 27, 2018, the Green Century Equity Fund was rated ninth among the top 10 Socially Conscious Funds by Bloomberg against 47 open-end funds with ESG (Environmental, Social and Governance), Socially Responsible, Religiously Responsible, Environmentally Friendly, Clean Energy, or Climate Change as a general attribute in the fund prospectus, total assets of at least $100 million, an equity allocation greater than 80%, and a five-year history. The Green Century Equity Fund has been included in Bloomberg’s ranking of U.S. responsible funds three times since 2017: as of December 31, 2017 the Equity Fund was ranked in seventh place among U.S. Responsible Funds, rated against 14 open-end funds with ESG (Environmental, Social and Governance) as a general attribute in the fund prospectus, total assets of at least $100 million, and a five-year history; and as of June 30, 2017, the Green Century Equity Fund was ranked in fifth place among 23 open-end funds with ESG (Environmental, Social and Governance) as a general attribute in the fund prospectus, total assets of at least $100 million, and a five-year history. In all three rankings, retail funds were used, either primary or class A shares. Past performance is no guarantee of future results.
*As of September 30, 2018, McDonald’s Corporation comprised 0.00%, 1.16% and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century MSCI International Index Fund, respectively. Other securities mentioned were not held in the portfolios as of September 30, 2018. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation of a security by the Funds, their administrator, or the distributor.
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 click here for more information, email email@example.com or call 1-800-93-GREEN. Please read the Prospectus carefully before investing.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, country, region or the market as a whole and may perform worse than the market. A sustainable investment strategy which incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
This information has been prepared from sources believed to be reliable. The views expressed are as of the date of this writing and are those of the Advisor to the Funds.
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 500® Index 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.
The MSCI KLD 400 Social ex Fossil Fuels Index (the KLD400 ex Fossil Fuels Index) is a custom index calculated by MSCI Inc. and is comprised of the common stocks of the approximately 400 companies in the MSCI KLD 400 Social Index (the KLD400 Index), minus the stocks of the companies that explore for, extract, process or refine coal, oil or gas or produce or transmit electricity derived from fossil fuels or transmit natural gas or have carbon reserves that are included in the KLD400 Index. The KLD400 Index is a free float-adjusted market capitalization index designed to provide exposure to U.S. companies that have positive Environmental, Social and Governance (ESG) characteristics and consists of approximately 400 companies selected from the MSCI USA Investable Market Index. It is not possible to invest directly in an index.
The Green Century Equity Fund (the “Fund”) is not sponsored, endorsed, or promoted by MSCI, its affiliates, information providers or any other third party involved in, or related to, compiling, computing or creating the MSCI indices (the “MSCI Parties”), and the MSCI Parties bear no liability with respect to the Fund or any index on which the Fund is based. The MSCI Parties are not sponsors of the Fund and are not affiliated with the Fund in any way. The Statement of Additional Information contains a more detailed description of the limited relationship the MSCI Parties have with Green Century Capital Management and the Fund.
The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 12/18