May 9, 2008

 

INTERNATIONAL PAPER AND RR DONNELLEY CHALLENGED TO ADDRESS CLIMATE CHANGE
Best Buy, Home Depot, Lowe’s, MeadWestvaco, and Procter & Gamble Respond to Dialogue with Domini on Forestry Policies

New York, NY – International Paper and the printing company RR Donnelley face upcoming shareholder votes on climate change resolutions filed by Domini Social Investments. Domini, a leader in the field of sustainable investing, has convinced five other major companies to take steps to preserve forests to address the threat of global climate change.

 

“In addition to providing critical habitat for many species, forests mitigate the effects of climate change by absorbing enormous quantities of carbon,” said Karen Shapiro, a member of Domini’s shareholder advocacy team. “Deforestation is responsible for 20% of global annual emissions of carbon dioxide. Companies can protect long-term shareholder value and address climate change by adopting more responsible forestry practices.”

 

Of the 20 shareholder resolutions that Domini filed with companies for the 2008 proxy season, 6 concerned sustainable forestry and climate change. Four of the six companies targeted — the electronics retailer Best Buy, the home improvement companies Home Depot and Lowe’s, and the paper and packaging company MeadWestvaco — reached agreements with Domini in exchange for withdrawal of the resolutions. In 2007, Domini withdrew a shareholder proposal filed with the consumer products company Procter & Gamble when P&G committed to publish more complete information on its fiber procurement policy and practices.

 

“Our most successful shareholder resolutions are those that never come to a vote,” said Adam Kanzer, head of shareholder activism at Domini Social Investments. “We are very pleased that four of the six companies we approached this season on forestry issues have understood and agreed to take action on our concerns.”

 

Home Depot and Lowe’s agreed to issue reports on their policies for sourcing wood from around the world. Best Buy agreed to work with Domini to develop a sustainable paper purchasing policy and MeadWestvaco agreed to assess the feasibility of phasing out the sale of paper made from wood fiber that is not certified by the Forest Stewardship Council (FSC). The FSC certifies that wood is produced in a way that does not destroy habitat, pollute water, displace indigenous people, or harm wildlife.

 

International Paper and RR Donnelley, in contrast, have not responded to Domini’s concerns about unsustainable wood and paper purchasing practices. Shareholder resolutions on forestry practices will be voted on at their annual meetings on May 12 and May 28, respectively.

 

“Many companies have begun publicly stating a clear preference for buying FSC-certified paper and pulp,” noted Shapiro. “FSC is the fastest growing forest certification system in the world, and is widely accepted as the gold standard for sustainable forestry. Companies that don’t embrace FSC may face shrinking market share relative to their competitors.”

 

These recent advances mark continued progress in Domini’s ongoing efforts to encourage more sustainable forestry policies. In 2006, after discussions with Domini, Kimberly-Clark commissioned a study to evaluate the feasibility of phasing out its use of non-FSC-certified wood fiber and in 2007 the company issued a new policy expressing preference for fiber certified by the Forest Stewardship Council.

 

In 2006, Domini’s engagement with Limited Brands, the parent company of Victoria’s Secret, succeeded in bringing the company to the table to negotiate a sustainable forestry policy with ForestEthics, a nonprofit that had been running a visible campaign against the company. As a result, Limited and ForestEthics announced that the company would use more paper certified by the FSC, increase the recycled content of its paper, and reduce the use of paper in catalogs.

 

Domini was the lead filer for five of the six forestry resolutions filed for the 2008 proxy season. The lead filer for MeadWestvaco was another institutional investor, the Province of St. Joseph of the Capuchin Order, although Domini played a leading role in dialogue with the company.

 

Domini Resolutions on Other Topics Achieve Success

 

Domini achieved success on a number of other shareholder resolutions:

 

·                Domini’s resolution calling on Becton Dickinson to phase out brominated flame retardants received a strong vote of 36% at the company’s annual meeting, the highest ever received for a resolution focused on toxics.

 

·                Domini withdrew a resolution with American Express in exchange for the company’s agreement to begin annual public reporting of its political contributions, including certain payments to trade associations used for political purposes. Domini’s resolution with AT&T on the same topic received a vote of 32% after receiving support from RiskMetrics Group, a leading proxy voting advisory service.

 

·                Domini withdrew a resolution with J.C. Penney when the company agreed to develop a policy on the use of PVC plastic in products and packaging and begin replacing PVC with safer, more sustainable materials. 

 

Details on all of the resolutions filed or co-filed by Domini are available at the Shareholder Activism section of Domini’s website at www.domini.com.

 

About Domini Social Investments

 

Domini Social Investments manages more than $1.3 billion in assets for individual and institutional mutual fund investors seeking to create positive change in society by integrating social and environmental standards into their investment decisions. Two fundamental principles underlie the global investment standards that Domini applies to each of its investment products: the promotion of a society that values human dignity and the enrichment of our natural environment. Domini views these twin goals as crucial to a healthier, wealthier, and more sustainable world.

 

Each investor should consider the Domini Funds’ investment objectives, risks, charges, and expenses carefully before investing. Obtain a copy of each Fund’s current prospectus for more complete information on these and other topics by calling 1-800-762-6814 or at www.domini.com. Please read the prospectus carefully before investing or sending money.

 

DSIL Investment Services LLC, Distributor. 05/08

 

 

May 7, 2008

 

FINAL “PROJECT KALEIDOSCOPE” REPORT RELEASED

Domini, Disney, McDonald’s and Other Investors Took Part in Project Kaleidoscope, Multi-Year Project to Improve Working Conditions in Corporate Supply Chains

 

McDonald's Corporation, The Walt Disney Company, and a group of organizations working to improve working conditions in company supply chains, including Domini Social Investments, announced the release of the final report of Project Kaleidoscope, a multi-year collaborative project designed to promote sustained compliance with labor standards mandated by corporate codes of conduct for manufacturers.

 

The project was piloted at 10 contractor factories in southern China that produce goods for McDonald's restaurants and Disney licensees. This collaborative effort developed and successfully field-tested an alternative approach to promoting and enhancing long-term, sustained code compliance.

 

For many years, McDonald’s and Disney have maintained strict codes of conduct for their licensees and manufacturers. These codes address a range of key labor rights issues including the prohibition of forced and child labor and the setting of requirements in such areas as health and safety, working hours, compensation, and compliance with applicable laws. In addition, both companies report that they have been active in undertaking educational, monitoring, and remediation efforts to promote compliance with these codes at the factories where their products are sourced throughout the world.

 

The project was launched as part of an ongoing effort to strengthen the effectiveness of these labor standards by drawing on the interest and expertise of interested investor organizations and jointly exploring means of promoting “sustained compliance” with labor codes. The project sought to foster the creation and testing of internal systems within factories in order to promote such compliance over time, including enhanced training and education for management, supervisors, and workers, and potential positive compliance incentives. The project also sought methods of encouraging remediation in facilities that demonstrate significant compliance issues, in order to minimize circumstances in which factory termination is the only business alternative.

 

In pursuing the project the group worked with local nongovernmental organizations as well as individual factories with the goal of developing practical implementation approaches, including training and remediation methods and tools. The project’s first Interim Report was published in January 2005.

 

The project grew out of mutual concerns discussed during the extended dialogue among the investor group and the two companies regarding ways to improve conditions in factories on a sustained basis.

 

 

 

April 21, 2008

 

KEY PROXY ADVISOR RECOMMENDS VOTE AGAINST AT&T MANAGEMENT ON POLITICAL CONTRIBUTIONS DISCLOSURE          

CPA and Domini Social Investments Applaud RiskMetrics Group for Support of Shareholder Resolution

 

Washington, D.C. - The Center for Political Accountability (CPA) and Domini Social Investments welcomed the support of RiskMetrics Group (RMG) for Domini's shareholder proposal, which calls on AT&T to publicly disclose and require board oversight of its political contributions. 

 

RMG's recommendation represents an important change. Institutional Shareholder Services, which was acquired by RMG in 2007, had opposed a similar resolution at AT&T for the past three proxy seasons. RMG is a leading proxy voting advisory service and an influential voice on corporate governance. AT&T, one of the largest telecommunications providers in the U.S., will hold its annual meeting on April 25.

 

"RMG's position reflects a growing recognition among corporate governance experts that robust political disclosure is now standard among leading corporations," said CPA executive director Bruce F. Freed.

 

Domini filed the political disclosure proposal at AT&T this year for the fourth time. "We applaud RiskMetrics' decision to support political disclosure at AT&T," said Adam Kanzer, Domini's General Counsel and head of shareholder activism. "Shareholders have a right to know how the companies they own are exerting political influence. This information has been kept from investors - and the broader public - for far too long. If Verizon can disclose this information, why can't AT&T?"

 

Explaining why the resolution "merits shareholder support," RMG's ISS Governance Services said that although "AT&T does provide information regarding its rationale, policies, and oversight mechanisms for corporate political contributions and trade association activities," the company doesn't disclose its political spending.

 

It pointed out that AT&T was not in line with "a number of companies, including Verizon Communications, [that] have substantially enhanced their political contributions disclosure." Verizon agreed to annually report its political contributions last year after Domini filed shareholder resolutions with the company for three successive years.

 

RMG's ISS Governance Services also cited AT&T's record as a significant political donor and its controversial involvement in the National Security Agency warrantless wiretapping case as reasons to support wider political disclosure at the company.

 

"It is in AT&T's best interests to demonstrate to shareholders that its political spending and activity are aboveboard," said Kanzer. "The company and its industry peers have a significant presence on the Hill where they have reportedly been seeking immunity for handing their customers' private information over to the government. We're pleased to have RiskMetrics join us in calling for greater transparency and accountability from this important political actor."

 

Domini Social Investments is part of a nationwide investor campaign of 26 institutional investors and allied groups to bring transparency and accountability to corporate political spending. Initiated by the CPA in 2004, the campaign so far has reached agreements with 43 large companies (including 27% of the S&P 100) to adopt political disclosure policies.

 

AT&T shareholders must cast their votes for the political contribution proposal and other resolutions proposed for the company's April 25 annual meeting by Thursday, April 24.

###

 

ABOUT THE CENTER FOR POLITICAL ACCOUNTABILITY

The Center for Political Accountability is a nonprofit, nonpartisan advocacy group whose mission is to bring transparency and accountability to corporate political spending. Website: www.politicalaccountability.net

 

ABOUT DOMINI SOCIAL INVESTMENTS

Domini Social Investments is built on the fundamental belief that the way you invest matters. Domini offers mutual funds that empower investors to pursue their financial goals while making a difference worldwide. Domini works for change on issues ranging from sweatshop labor to climate change. Website: www.domini.com

 

March 2008

 

Domini Recognized for Proxy Voting Leadership

 

Domini’s leadership in proxy voting was recently recognized by RiskMetrics Group, with the launch of its “Governance Policy Exchange” (registration required), a new section of the company’s website that highlights select institutions’ voting policies. RiskMetrics, which merged in 2007 with CFRA and Institutional Shareholder Services (ISS), provides risk management and corporate governance products and services to financial market participants. (Domini and many other investment managers use RiskMetrics for proxy voting services.)

 

According to RiskMetrics’ press release, “the initial participants … include these leading institutions, known for their views on issues like board accountability, executive compensation, capital restructuring and shareholder rights: TIAA-CREF, Morgan Stanley Investment Management, Domini Social Investments, the California Public Employee Retirement System (CalPERS), and the Connecticut Retirement Plans & Trust Funds.”

 

The RiskMetrics website provides access to each institution’s voting policies, a feature that allows visitors to easily compare policies and audio interviews with Policy Exchange participants.

 

“Domini believes that proxy voting is a powerful and underused tool for corporate accountability,” said Adam Kanzer, managing director and head of shareholder activism at Domini Social Investments. Domini has published its voting guidelines regularly since 1992, and in 1999 became the first mutual fund manager in America to publicly disclose its proxy votes. In 2001, Domini petitioned the SEC for the rule that now requires all mutual funds to publicly disclose its proxy voting policies and actual votes.

 

According to data from FundVotes.com U.S. mutual fund companies continue to overwhelmingly side with management when voting their proxies. The 54 fund groups surveyed supported approximately 90.7% of management proposals during the year ended June 30, 2007, but only 35.2% of shareholder proposals. By contrast, Domini supported 67% of management proposals and 63% of shareholder proposals for the same period, making it one of the most activist fund groups surveyed.

 

 

December 7, 2007

 

DOMINI SOCIAL INVESTMENTS WINS “SOCIAL CAPITALIST” AWARD FROM FAST COMPANY MAGAZINE AND MONITOR GROUP

Mutual Fund Manager Recognized for Encouraging Companies to Embrace Sustainability

 

New York, NY – Fast Company magazine and Monitor Group announced this week that Domini Social Investments, a leader in the field of socially responsible investing, has won one of the magazine’s fifth annual Social Capitalist Awards. This year marked the first time that for-profit companies were eligible for this award.

 

The awards recognize organizations and companies for using the tools of business to solve the world’s most pressing social problems, and for demonstrating a consistent and unusually large impact on society.

 

Describing Domini, the editors wrote, “The pioneering mutual fund manager, with $1.6 billion in assets, invests in businesses that pass rigorous social and environmental standards. Domini also files 15 to 20 shareholder resolutions each year and lobbies portfolio companies to improve environmental and social practices.” The magazine emphasized the influence of Domini’s shareholder activism program, saying that it has convinced companies like Apple, Kimberly-Clark, and Starbucks to commit to more sustainable business strategies. All winners are featured in the December/January 2008 issue of Fast Company, with expanded online coverage at www.fastcompany.com.

“This award is a tribute to the Domini Funds’ thousands of investors, who put their investments to work not only for their families’ future but to build a better future for all of us,” said Amy Domini, founder and CEO of Domini Social Investments. “Our firm is built on the idea that the way you invest matters — that investors, if we harness our power and think beyond next quarter’s profits, can change companies, change Wall Street, and ultimately change the world. In choosing to invest sustainably and responsibly, our shareholders make change happen every day.”

 

Domini was one of only ten for-profit companies — and the only mutual fund manager — to be named Social Capitalists for 2008. The others were Better World Books, Developing World Markets, Equal Exchange, Herman Miller, New Leaf Paper, Organic Valley, Seventh Generation, SustainAbility, and ShoreBank. In addition, the magazine named 45 nonprofit winners.

 

“We are especially delighted to share this honor with a number of organizations with whom Domini has worked closely over the years, and in particular with ShoreBank, the country’s leading community development bank and our partner in offering the Domini Money Market Account,” said Carole Laible, president and COO of Domini Social Investments. “This account offers investors an opportunity to receive competitive cash yields while providing capital to the communities that need it most. ShoreBank does extraordinary work, and is a perfect example of a business that truly makes a difference.”

 

In the selection of the Social Capitalist Award winners, companies and organizations were evaluated according what Fast Company calls “five critical components”: social impact, entrepreneurship, innovation, aspiration and growth, and sustainability. Each applicant provided two years of operating data and audited financial data, a statement of mission and objectives, and answers to questions on strategy and activities. Winners were selected by an independent board of experts on various sectors. 

Domini Social Investments and its founder and CEO Amy Domini have received many other honors in recent years. Earlier in 2007, Plenty magazine honored Domini Social Investments as one of 20 companies that are changing the world. Amy Domini was named to Time magazine’s “Time 100” list of the world’s most influential people in 2005, and was also included in SmartMoney magazine’s “Power 30” list of Wall Street’s thirty most influential people (2004), Money magazine’s “50 Smartest Women in the Money Business” (2000), and Barron’s “All Stars,” a list of 25 of the fund world’s “heaviest hitters” (2000).

 

Call Domini at 1-800-762-6814 or visit www.domini.com to learn more about the Domini Funds or to open an account.

###

 

About Domini Social Investments

Domini Social Investments manages $1.5 billion in assets for individual and institutional mutual fund investors seeking to create positive change in society by integrating social and environmental standards into their investment decisions. Two fundamental principles underlie the global investment standards that Domini applies to each of its investment products: the promotion of a society that values human dignity and the enrichment of our natural environment. Domini views these twin goals as crucial to a healthier, wealthier, and more sustainable world. More information about Domini and the Domini Funds is available at www.domini.com.

 

Domini is the investment advisor of the following mutual funds:

Domini Social Equity Fund (NASDQ: DSEFX)

Domini Social Equity Portfolio (NASDQ: DSEPX)

Domini Institutional Social Equity Fund (NASDQ: DIEQX)

Domini European Social Equity Fund (NASDQ: DEUFX)

Domini European Social Equity Portfolio (NASDQ: DEEPX)

Domini European PacAsia Social Equity Fund (NASDQ: DUPFX)

Domini European PacAsia Social Equity Portfolio (NASDQ: DUPPX)

Domini PacAsia Social Equity Fund (NASDQ: DPAFX)

Domini PacAsia Social Equity Portfolio (NASDQ: DPAPX)

Domini Social Bond Fund (NASDQ: DSBFX)

 

About Fast Company magazine

Founded in 1996 and acquired in 2005 by Mansueto Ventures, LLC, award-winning Fast Company magazine covers the ideas, trends, and visionaries that are sparking change and creating the future of business. With a total paid circulation of 746,161, Fast Company explores the profound innovation, creative breakthroughs, best and “next” practices that are driving the business world.

 

About Monitor Group

Monitor Group is a leading global professional services firm working with corporations, governments, and social-sector organizations to help them drive growth.Employing over 1,500 people in 22 countries worldwide, Monitor offers a blend of advisory, capability building, and capital services.

Each investor should consider the Domini Funds’ investment objectives, risks, charges, and expenses carefully before investing. Obtain a copy of each Fund’s current prospectus for more complete information on these and other topics by calling 1-800-762-6814 or at www.domini.com. Please read the prospectus carefully before investing or sending money.

 

Past performance is no guarantee of future results. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, call 1-800-762-6814 or visit www.domini.com.  A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. See the Fund’s prospectus for further information. The Domini Funds are subject to market risks and are not insured.

 

Unlike a mutual fund, the rate of return for the Domini Money Market Account is determined by ShoreBank and will vary from time to time. Please note that you will be able to access your Domini Money Market Account only through Domini Social Investments. Domini Social Investments will act as your agent for the purpose of making deposits to and withdrawals from your DMMA account and will maintain the records of your account. You will not be able to access your account or obtain balances by contacting ShoreBank directly. The DMMA is subject to certain FDIC insurance limits of $200,000 per depositor.

 

Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. These risks are magnified in emerging markets.

 

The Domini Funds are not affiliated with any bank and are not insured by the FDIC. DSIL Investment Services LLC, and ShoreBank are not affiliated.

 

DSIL Investment Services LLC (DSILD), Distributor. 12/07

 

March 7, 2007

 

DOMINI NAMED TO LIST OF WORLD-CHANGING COMPANIES
Plenty Magazine Cites Domini’s Engagement with Coca-Cola, Dell, and JPMorgan Chase

 

In its February-March issue, Plenty magazine honored Domini Social Investments as one of 20 companies that are “pushing the eco envelope and changing the world.”

 

“Whether it’s because of their reach, their potential, their influence, or the sheer genius of their innovations, we predict that each one will have a hand in changing the world in one way or another—sooner rather than later,” the magazine said in introducing its inaugural “Plenty 20” listing.

 

“At Domini,” the article noted, “analysts don’t just look at the financial performance of the companies they invest in, they take social and environmental factors into account as well. Armed with $1.8 billion in assets, Domini has filed more than 140 shareholder resolutions with more than 60 corporations, actively engaging high-level management on issues ranging from product safety and sweatshop labor to climate change. The company has talked to Coca-Cola about human rights; coached the computer giant Dell on energy conservation; and convinced J.P. Morgan Chase, a $1.1 trillion bank, to adopt a comprehensive environmental policy.” 

 

Launched in 2004, Plenty is a magazine “dedicated to exploring and giving voice to the green revolution that will define the 21st Century.” It claims a paid circulation of more than 100,000 through subscriptions and newsstand sales.

 

Domini often works with non-governmental organizations and other concerned investors in its corporate campaigns. The dialogues at Coca-Cola and J.P. Morgan Chase noted above are led by Christian Brothers Investment Services. Domini has played an active role in both dialogues.

 

Each investor should consider the Domini Funds’ investment objectives, risks, charges, and expenses carefully before investing. Obtain a copy of each Fund’s current prospectus for more complete information on these and other topics by calling 1-800-762-6814 or at www.domini.com. Please read the prospectus carefully before investing or sending money.

 

Past performance is no guarantee of future results. The Domini Funds are subject to market risks and are not insured. Investment return, principal value, and yield will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost. You may lose money. DSIL Investment Services LLC (DSILD), Distributor. 03/07

February 13, 2007

DOMINI LAUNCHES TWO INTERNATIONAL FUNDS, OFFERING INVESTMENT OPPORTUNITIES WITH GLOBAL IMPACT

Investors Who Care About Social and Environmental Issues Can Now Make a Difference in Asia and Europe

New York, NY – With two newly launched international funds, Domini Social Investments continues to provide new ways for U.S. investors to make their voices heard around the world.

The Domini PacAsia Social Equity Fund (NASDQ: DPAFX) and Domini EuroPacific Social Equity Fund(NASDQ: DUPFX), togetherwith Domini’s other equity funds, now offer investors access to global investment opportunities. They also empower shareholders to bring about social and environmental change, drawing companies around the world into dialogue on such issues as global warming, sweatshop labor, and product safety.

Domini is the only investment advisor in the U.S. to offer regional mutual funds that include social and environmental as well as financial standards. The company’s new funds will use the same active management strategy that was pioneered by the Domini European Social Equity Fund(NASDQ: DEUFX) and recently adopted by the company’s flagship U.S. fund, the Domini Social Equity Fund(NASDQ: DSEFX). Domini’s equity funds are managed by a team that combines the strengths of Domini Social Investments and Wellington Management Company, LLP.

The Domini European Social Equity Fund, which launched in October 2005, returned 44.3% for the year ended December 31, 2006, versus 34.4% for the MSCI Europe Index. According to Morningstar, this places the fund in the top 10% of mutual funds in the Europe Stock category, and makes it the highest-ranked diversified large-cap European fund for that one-year period.^*

“Like our European fund, these new funds can help investors gain exposure to expanding economies around the world,” said Amy Domini, Domini’s founder and CEO. “The Domini PacAsia Social Equity Fund builds out our successful regional fund structure, while the Domini EuroPacific Social Equity Fund offers a single international solution for investors who understand the importance and impact of their investment decisions.”

The two new Domini funds commenced operations on December 27, 2006, and are offered in no-load Investor class shares and in an A-share format (NASDQ: DPAPX and DUPPX).

“International investing represents a great opportunity, and a significant challenge, for people who want their investments to make a difference on a global scale,” said Amy Domini. “Europe is leading the world in corporate social responsibility and sustainable business models, and we and our shareholders are excited about being a part of that. Meanwhile, dramatic economic growth in Asiahas often been accompanied by pollution, deforestation, sweatshop labor, and human rights violations. This is a region where conscious, responsible investing is needed, and can really make a difference.”

“Investors in Domini’s new funds will help influence companies in Asia and the Pacific Rim to take social and environmental concerns into account as they build successful businesses,” Domini continued. “We expect to have a positive impact, as we already do in the U.S. and Europe, both by applying standards to our investment choices and, when we can, by engaging companies in direct dialogue, encouraging the best practices and challenging the worst.”

In managing its equity funds, Domini Social Investments uses rigorous internal research to evaluate current and potential holdings against social and environmental standards, assessing the quality of a corporation’s relations with communities, customers, ecosystems, employees, investors, and suppliers. Wellington Management applies financial standards, seeking to add value through a quantitative stock selection approach and managing risk through portfolio construction. On behalf of its shareholders, Domini also strives to be an active and responsible owner of the companies in its funds’ portfolios, seeking to advance fairer and more sustainable business practices.

Call Domini at 1-800-762-6814 or visit www.domini.com for a copy of our Global Investment Standards booklet.

About Domini Social Investments

Domini Social Investments manages $1.6 billion in assets for individual and institutional mutual fund investors seeking to create positive change in society by integrating social and environmental standards into their investment decisions. Two fundamental principles underlie the global investment standards that Domini applies to each of its investment products: the promotion of a society that values human dignity and the enrichment of our natural environment. Domini views these twin goals as crucial to a healthier, wealthier, and more sustainable world.

* Based on total returns for the 12-month period ending 12/31/06 of mutual funds included by Morningstar in the Europe Stock category, the Domini European Social Equity Fund was in the 9th percentile, ranking #8 out of 98 funds. All higher-ranking funds pursue investment strategies focused on small companies, emerging markets, or single countries within Europe. Data for Morningstar percentile rankings provided by Morningstar, Inc.® 2007. All rights reserved. Performance rankings do not consider sales charges, and are subject to change monthly.  The foregoing does not indicate a Morningstar Rating (“star rating”) for the Domini European Social Equity Fund, which currently has less than a three-year performance history. Morningstar provides star ratings for funds with at least a three-year history. 

Each investor should consider the Domini Funds’ investment objectives, risks, charges, and expenses carefully before investing. Obtain a copy of each Fund’s current prospectus for more complete information on these and other topics by calling 1-800-762-6814 or at www.domini.com. Please read the prospectus carefully before investing or sending money.

Past performance is no guarantee of future results. The returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to 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 data quoted. For performance information current to the most recent month-end, call 1-800-762-6814 or visit www.domini.com.  A 2.00% redemption fee is charged on sales or exchanges of shares made less than 60 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee which would reduce the performance quoted. See the Fund’s prospectus for further information. The Domini Funds are subject to market risks and are not insured.

The performance information quoted above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Certain fees payable by the Fund were waived during the period, and the Fund’s average annual total returns would have been lower had these not been waived. The Morgan Stanley Capital International Europe Index (MSCI Europe) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI Europe.

Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. These risks are magnified in emerging markets.

DSIL Investment Services LLC (DSILD), Distributor. 02/07

 

 

November 29, 2006

 

DOMINI EUROPEAN SOCIAL EQUITY FUND OUTPERFORMS IN FIRST YEAR
Socially Responsible Fund Returns 32.5%, Beats Benchmark by 8.7%

 

New York, NY – The Domini European Social Equity Fund(NASDQ: DEUFX) completed its first year of operations on October 3, 2006, with a total return of 32.54%. The MSCI Europe Index returned 23.75% for the same period. The Fund returned 42.64% for the year ended October 31, versus 32.30% for the index.

 

View performance information current to most recent month-end.

 

“In developing the Domini European Social Equity Fund, our goal was to give social investors a way to invest actively in Europe’s dynamic markets, where companies are leading the world in building sustainable businesses,” said Amy Domini, Founder and CEO of Domini Social Investments.

 

“We were confident that our strategy would produce strong investment performance, and that confidence has been borne out by the Fund’s significant outperformance in its first year. European markets have performed well, and we’ve identified companies that are making a real contribution to building a more sustainable future through cleaner technologies, energy efficiency, and a commitment to their employees and communities.”

 

The Fund’s performance is the result of a disciplined active strategy created by Domini Social Investments and Wellington Management Company, LLP, the Fund’s submanager. The Domini European Social Equity Fund, the only socially responsible mutual fund for U.S. investors focused exclusively on the dynamic European region, has grown to $65.9 million in assets during its first year.

 

“The Domini European Social Equity Fund is managed through a two-part process,” said Steven Lydenberg, Domini’s Chief Investment Officer. “Our in-house team of social researchers identifies European companies that meet our social and environmental standards. Wellington Management then selects stocks through an active, quantitative model based on value and momentum, which considers factors such as earnings quality and capital efficiency.” Domini also uses its leverage as a shareholder to encourage stronger corporate governance, social and environmental practices through its proxy votes, and direct dialogue with portfolio companies.

 

Domini and Wellington intend to use this strategy in other geographically focused funds, the Domini PacAsia Social Equity Fund and the Domini EuroPacific Social Equity Fund, set to launch on December 27, 2006, as well as for the Domini Social Equity Fund (NASDQ: DSEFX), which was launched in 1991. The Domini Social Equity Fund’s new active strategy will commence on December 1.

 

As of September 30, 2006, notable companies in the portfolio of the Domini European Social Equity Fund included the Norwegian telecommunications company Telenor, which sponsors a microenterprise program in Bangladesh called Village Phone, and the British retailer Marks & Spencer, which helps the homeless and other disadvantaged people to join the workforce.

 

Call Domini at 1-800-762-6814 for a copy of our Global Investment Standards booklet.

 

About Domini Social Investments

 

Domini Social Investments manages $1.8 billion in assets for individual and institutional mutual fund investors seeking to create positive change in society by integrating social and environmental standards into their investment decisions. Two fundamental principles underlie the global investment standards that Domini applies to each of its investment products: the promotion of a society that values human dignity and the enrichment of our natural environment. Domini views these twin goals as crucial to a healthier, wealthier, and more sustainable world.

 

Each investor should consider the Domini Funds’ investment objectives, risks, charges, and expenses carefully before investing. Obtain a copy of each Fund’s current prospectus for more complete information on these and other topics by calling 1-800-762-6814 or at www.domini.com. Please read the prospectus carefully before investing or sending money.

 

Past performance is no guarantee of future results. The returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to 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 data quoted. For performance information current to the most recent month-end, call 1-800-762-6814 or visit www.domini.com.  A 2.00% redemption fee is charged on sales or exchanges of shares made less than 60 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee which would reduce the performance quoted.  See the Fund’s prospectus for further information. The Domini Funds are subject to market risks and are not insured. As of September 30, 2006, Telenor and Marks & Spencer represented 0.45% and 0.99%, respectively, of the portfolio of the Domini European Social Equity Fund.

 

Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. DSIL Investment Services LLC (DSILD), Distributor. 11/06