Green Century Celebrates 20th Anniversary of the FTSE KLD 400 Social Index
The Green Century Equity Fund is the only mutual fund that offers investors access to the first responsible index
May 13, 2010, Boston, MA – This month the FTSE KLD 400 Social Index (the KLD400)* turns twenty. Green Century is proud to offer the only mutual fund, the Green Century Equity Fund, that tracks this groundbreaking index. Launched in 1990 as the Domini 400 Social Index, the KLD400 remains the cornerstone of the responsible investment field and is the first and most widely recognized index in the nation for investors seeking a portfolio built on environmental, social, and governance (ESG) research.
“The Green Century Equity Fund has tracked the KLD400 since 1995. We are pleased to offer our shareholders the opportunity to invest in the companies included in the first responsible investing index through our partnership with KLD,” said Kristina Curtis, President of the Green Century Funds.
Thomas Kuh, Managing Director of KLD Indexes stated, “The KLD400’s great accomplishment has been to provide comparative historical data on the financial performance of ESG-screened portfolios. ESG research is now understood as an important tool for uncovering investment risk and opportunity, by both social investors and the mainstream financial world. He continued, “This would have surprised many observers in 1990, and it bears repeating today: a portfolio that’s constructed using ESG ratings can, over the long term, deliver competitive risk-adjusted returns.”
The KLD400 is comprised primarily of large-cap stocks and some smaller companies that have strong records on managing the risks and opportunities associated with ESG issues. Companies with significant involvement in alcohol, tobacco, firearms, gambling, nuclear power or military weapons are not eligible for the KLD400.
Given that no company is perfect, Green Century believes shareholder advocacy campaigns designed to change corporate behavior are a critical component of responsible investing. Ms. Curtis said, “Green Century’s commitment to sustainable investing involves both investing in the companies included in the KLD400 and actively engaging with companies to advocate for improved corporate environmental behavior.”
By engaging with companies in widely diversified sectors, Green Century has earned significant victories for shareholders through nearly two decades of hard-nosed advocacy campaigns. Recently, Green Century has brought to light concerns associated with natural gas drilling, specifically hydraulic fracturing - a process where water, chemicals and particles such as sand are injected into the ground under extremely high pressure - to unlock vast reserves previously unavailable. It has been estimated that 60 to 80 percent of new wells will require hydraulic fracturing and investors are concerned that this process carries potentially serious financial and environmental risks.
The Green Century Equity Fund has filed shareholder resolutions in coalition with other active investors at several companies asking for reports on the environmental impact of the companies’ hydraulic fracturing operations and for a discussion of the potential policies the companies could adopt, above and beyond regulatory requirements, to reduce or eliminate hazards to air, water and soil quality from those activities. These companies include EOG Resources**, Chesapeake Energy**, Williams Companies, Inc.** and Ultra Petroleum**.
Green Century Capital Management is an investment advisory firm focused on environmentally responsible investing. Founded by a partnership of non-profit environmental advocacy organizations in 1991, Green Century's mission is to provide people who care about a clean, healthy planet the opportunity to use the clout of their investment dollars to encourage environmentally responsible corporate behavior. Green Century believes that shareholder advocacy is a critical component of responsible investing and actively advocates for greater corporate environmental accountability. Green Century manages two environmentally responsible mutual funds, the Green Century Balanced Fund and the Green Century Equity Fund.
* The FTSE KLD 400 Social Index (the KLD400) is a float-adjusted, market capitalization-weighted, common stock index of U.S. equities. The KLD400 is the first benchmark index constructed using environmental, social and governance (ESG) factors.
**As of March 31, 2010, EOG Resources, Inc. was not held by the Green Century Balanced Fund and comprised0.43% of the Green Century Equity Fund; Chesapeake Energy was not held by the Green Century Balanced Fund and comprised 0.28% of the Green Century Equity Fund; Williams Companies, Inc. was not held by the Green Century Balanced Fund and comprised 0.25% of the Green Century Equity Fund; and Ultra Petroleum was not held by the Green Century Balanced Fund and comprised 0.12% of the Green Century Equity Fund. Portfolio composition will change due to ongoing management of the Funds. Please refer to the Green Century Funds website for current information regarding the Funds' portfolio holdings. These holdings are subject to risk as described in the Funds' prospectus. References to specific investments should not be construed as a recommendation of the securities by the Funds, their administrator, or their distributor.
You should consider the Green Century Funds’ investment objectives, risks, charges, and expenses carefully before investing. For a prospectus that contains this and other information about the Funds, call 1-800-93-GREEN, visit www.greencentury.com or email email@example.com. Please read the prospectus carefully before investing. Investments are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
The Green Century Funds are distributed by UMB Distribution Services, LLC 5/10
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