July 16, 2010
Safety Last?: BP,
Toyota, and Massey Energy
Domini avoided investments in BP,
Toyota, and Massey Energy: three major companies that have recently experienced
devastating public scandals and catastrophes.
That Domini avoided these three companies demonstrates that social and
environmental standards can make a difference in investment decisions. Such
standards can provide early warning signals for major disasters to come.
A look at these companies underlines the importance of evaluating the
safety record of publicly traded corporations before making the decision to
invest, particularly for energy and transportation companies.
BP
Despite BP’s commitment to alternative energy and its public statements
on the need to address global warming, we have consistently rejected BP for the
Domini Funds based on a pattern of safety and environmental concerns, including
a 2005 explosion at BP’s Texas City refinery that killed 15 employees and an
oil spill and persistent corrosion issues at the company’s Prudhoe Bay pipeline
operations. Several years ago, we informed a BP representative that they would
have to substantially improve their safety record to be approved for our funds.
We have also consistently excluded the two other companies involved in the Deepwater
Horizon disaster, Transocean and Halliburton, for a variety of social
and environmental reasons.
Toyota Motor
The extensive safety
and quality problems that forced Toyota
Motors to make its massive worldwide recalls in 2009 severely damaged the
reputation of a company that had in the past been praised for its quality,
employee, and environmental initiatives. However, our research identified a
number of negative factors that counterbalanced the positive press that the
firm had been receiving. One of our concerns was the company’s consistent
record of major vehicle recalls in Japan (over 1.887 million in 2004, over 1.88
million in 2005, and about 1.3 million in 2006), as well as a pattern of labor
relations problems in the Philippines (anti-union activity) and Japan (abusive
“cosmetic subcontracting”).
Domini was also among the first in the SRI world to uncover Toyota’s
involvement in Burma through a partially owned auto components subsidiary. (See
our second-quarter 2008 Social Impact Update
for the full story). We continue to engage with the company, urging it to end
this relationship. Finally, in
our view, Toyota’s sales of energy-efficient hybrids are largely offset by
sales of light trucks and SUVs, giving it only an average overall record on
fuel efficiency for its fleets.
This pattern of
controversies and relatively weak positives led us to consistently exclude the
firm from our portfolios.
Massey Energy
The decision not to hold Massey Energy was relatively straightforward,
since Domini rarely approves companies that have substantial involvement in
coal mining. Coal emits one of the highest percentages of greenhouse gases per
unit of energy produced among the fossil fuels. In addition, as an industry,
coal mining firms have a long historical pattern of safety challenges. Although
we don’t automatically eliminate all coal companies, we must see an exceptional
record of positive social and environmental initiatives in order for such firms
to qualify for inclusion, a circumstance Domini rarely encounters. Massey
Energy was no exception to this general rule.
Key Performance
Indicators
Integral to our research and standards setting process is the use of “key
performance indicators” For each industry, we identify approximately a half
dozen key business-alignment and stakeholder-relations factors that take
precedence in our decision making. These indicators focus our analysts on the key sustainability challenges each
company faces. For example, safety is a key indicator for us for both the
automotive industry and for energy companies. If a major oil and gas company
has a poor safety record, that factor may well override other positive aspects
of its social and environmental performance. Learn more about how Domini applies
its standards.
Our investment
process by no means guarantees that we will avoid all companies with
controversies. Many companies that we approve have mixed records where we feel
strengths counterbalance concerns. Unanticipated problems and controversies can
occur in others. We do believe, however, that it is important to signal our
concern about safety and environmental issues to major corporations both by
refusing to invest in some and engaging with others, in the hopes that
concerted ongoing efforts by concerned investors like ourselves and our peers
will over time bring about positive change.
You should
consider the Domini Funds' investment objectives, risks, charges and expenses
carefully before investing. View
or order
a copy of the Funds' current prospectus for more complete information on these
and other topics. Please read the prospectus carefully before investing or
sending money.
The
composition of the Funds’ portfolios is subject to change.
DSIL Investment Services, LLC, distributor. 06/10
July 2, 2010
Amy Domini Calls
for an End to “Economically Useless” Investment Vehicles
Amy Domini, founder and CEO of Domini Social Investments, participated
in the high-level OECD Annual Forum in Paris on May 27, and published a new
article in the OECD’s magazine, OECD Observer. This year’s forum was entitled
“Road to Recovery: Innovation, Jobs & Clean Growth.” The Organisation for
Economic Co-operation and Development (OECD) is an organization of 34 developed
countries committed to democracy and the market economy.
Amy participated in a
panel discussion including representatives of both trade unions and private
sector firms regarding how improved business ethics could help to restore
public trust in financial and corporate institutions. Amy spoke of the pivotal
role of finance in achieving more ethical business models: “If finance is
working against the goals of human dignity and ecological sustainability, then
governments and civil society will be incapable of achieving those goals of
restoring trust.”
Concurrent with the
conference, Amy published a call for investors to cease the destructive practice of
diversifying their assets into “economically useless vehicles.”
In “Saving
Capitalism from Futile Diversification,” an article published in the OECD
Observer, Amy argues that Modern
Portfolio Theory, the dominant approach to professional portfolio management,
has promoted the benefits of diversification, yet broad diversification did not
protect investors during the global financial crisis.
In fact, Amy writes, the emphasis on diversification at all costs led
financial firms to create derivative instruments based on the value of real assets
that institutional investors didn’t own and didn’t want. “They found they could
bet on real estate without owning it, they could bet on the interest rate a
mortgage paid versus what a treasury bill paid, they could bet on robust demand
for rice without owning the rice.” Speculation on commodities drove
double-digit increases in the price of staple foods, creating starvation in
some African countries.
“Modern portfolio management gave birth to a healthy idea:
diversification,” Amy concludes. “But that healthy idea has been subverted.
This is not a problem that markets can correct on their own: the strong arm of
government must be utilized before the second wave occurs. Diversification into
assets that produce no goods or services to humankind undermines capitalism.”
Amy Domini was honored by Time
magazine in 2009 as one of 25 “Responsibility
Pioneers,” and in 2005 as one of the 100
most influential people in the world. In 2008, Directorship
magazine included Amy Domini in its Directorship 100, a list of the most
influential people on corporate governance and in the boardroom. In 2010, Investment Advisor magazine listed her
as one of the “30
most influential individuals in and around the planning profession over the
last three decades.” She has received honorary doctorates from the Northeastern
University College of Law and Yale University’s Berkeley Divinity School.
Further Reading:
You should consider the Domini Funds' investment objectives,
risks, charges and expenses carefully before investing. View or order
a copy of the Funds' current prospectus for more complete information on these
and other topics. Please read the prospectus carefully before investing or
sending money.
DSIL Investment Services, LLC, distributor. 06/10
May 26, 2010
Amy Domini Named
One of Thirty Most Influential by Investment Advisor Magazine
Investment Advisor magazine included
Amy Domini, founder and CEO of Domini Social Investments, in its “Thirty
for Thirty” list of the “30 most influential individuals in and around the
planning profession over the last three decades.” The list ran in the magazine’s
May 2010 issue, which also included an interview
with Amy Domini.
“In the last 30 years,” the magazine wrote, “socially
responsible investing has become a force to be reckoned with, and for that you
can thank Amy Domini.” Investment Advisor
noted her involvement in the shareholder activism that helped bring about
peaceful change in South Africa, and her efforts to demonstrate that applying
social and environmental standards need not hurt investment performance.
“Not slowing down at all,” the magazine concluded,
“the founder and CEO of Domini Social Investments most recently wrote Socially Responsible Investing: Making a
Difference and Making Money.”
Amy Domini was honored by Time
magazine in 2009 as one of 25 “Responsibility Pioneers,” and in 2005 as one of the
100
most influential people in the world. In 2008, Directorship
magazine included Amy Domini in its Directorship 100, a list of the most
influential people on corporate governance and in the boardroom. She has
received honorary doctorates from the Northeastern University College of Law
and Yale University’s Berkeley Divinity School.
You should consider the Domini Funds' investment objectives,
risks, charges and expenses carefully before investing. View or order
a copy of the Funds' current prospectus for more complete information on these
and other topics. Please read the prospectus carefully before investing or
sending money.
DSIL Investment Services, LLC, distributor. 05/10
May 25, 2010
Domini Endorses
Forest Footprint Disclosure Project
Domini
Social Investments has endorsed the Forest
Footprint Disclosure Project, a nonprofit organization that helps
investors assess the impact of companies on the world’s forests.
The Forest Footprint Disclosure Project (FFD Project) is a new
initiative supported by the British government and modeled on the Carbon
Disclosure Project, which questions companies on their greenhouse gas
emissions. The FFD sends an annual survey to companies with exposure to five
forest risk commodities: beef or leather, palm, soy, timber and
bio-fuel.
The survey, sent on behalf of investors managing more than $4 trillion, seeks
information about how companies are managing their impact on forests.
"Forest Footprint Disclosure is delighted to receive
support from Domini as another important investor recognizes the significant
influence on climate change mitigation that comes from protecting standing
forests through developing a sustainable supply chain for key commodities,”
said Christoph Harwood on behalf of the FFD Project.
Forests are rapidly
declining at a rate of 55 football fields per minute, according to the United
Nations. Only 20% of the world’s original forests remain undisturbed.
Amy Domini, Founder and CEO of Domini Social Investments, said, “Armed
with data, investors can play a leading role in repairing the unconscionable
damage we’ve done to our planet. Domini is pleased to endorse the work of the
Forest Footprint Disclosure Project and we look forward to working with the FFD
Project to increase the participation of U.S. companies. We strongly encourage
other investors to join us in this effort.”
Domini believes that it is essential for companies with significant
exposure to deforestation to map and mitigate their impact on these critical
ecosystems. Domini has taken a leadership position in
addressing forestry issues with our mutual fund holdings through our investment standards,
direct shareholder
engagement, and proxy
voting. Since 2007, Domini has been a member of the Boreal
Leadership Council, an organization devoted to protecting one of the world’s
largest forest ecosystems.
Deforestation
and Climate Change
The Stern Review on
the Economics of Climate Change states greenhouse gas emissions
from deforestation are greater than emissions from the global
transportation sector. Forests store extensive amounts of carbon, critical to
mitigating the effects of climate change. Forests store the equivalent of 175
years of global fossil fuel emissions and forest loss is responsible for 20% to
25% of total annual carbon dioxide emissions globally. Deforestation has
serious implications for biodiversity and human rights as well.
About the Forest
Footprint Disclosure Project
The Forest Footprint Disclosure Project asks
companies
to disclose how their operations and supply chains are impacting forests
worldwide, and what is being done to manage those impacts responsibly. The
purpose of the survey is to provide companies and investors with a better
understanding of the company’s ecological impact, and how the changing climate
and new regulatory frameworks could affect access to resources and the cost of
doing business in the long term.
The disclosure information will be reported annually,
enabling investors to identify the sustainable businesses of the future as well
as possible risks related to a company’s forest footprint. The Project
published the results of its first global survey in February.
April 27, 2010
Domini
Deposit Account at PNC Bank
The
Domini Money Market Account (DMMA) formerly offered through an arrangement with
ShoreBank, has been changed to the Domini Deposit Account offered through an
arrangement with PNC Bank.
PNC
Bank, National Association, is the country’s fifth largest bank based on
deposits and branches. All DMMA deposits were transferred to PNC Bank on April
27, 2010. There has been no interruption in service, and you can continue to
access your funds and use your Domini Account just as you have before. Your
balance will be reflected on your statements and on our online account access
system as “Domini Deposit Account.” Any future deposits will also be directed
to PNC Bank, including any deposits scheduled through an Automatic Investment
Program.
The
Domini Deposit Account will be subject to a $3 monthly service charge,
effective June 15, 2010. This charge will be automatically withdrawn from your
Account on the 15th of each month (or the next applicable business
day). If you decided to close your Domini Deposit Account prior to June 15,
2010, your Account will not be charged the $3 monthly service charge.
The
Domini Deposit Account offers:
- Federal
insurance. Each depositor is federally insured by the Federal Deposit
Insurance Corporation (FDIC) up to $250,000, subject to FDIC conditions.*
- Annual
Percentage Yield of 0.15%.**
- Check-writing,
with a $500 minimum per check. (Check writing is not available for IRAs.) You
will not need to obtain new checks — your DMMA checks will continue to be
honored.
- Daily
liquidity and easy exchanges between your Domini Deposit Account and any
of the Domini mutual funds.
If you have any questions or concerns, please call us
at 1-800-582-6757, weekdays from 9AM to 5PM Eastern Time. We thank you for
investing with Domini and look forward to continuing to make a difference
together.
*The
Federal Deposit Insurance Corporation has increased the coverage on deposits
from $100,000 to $250,000 per depositor, through December 31, 2013. The amount
that you have on deposit in the Domini Deposit Account at PNC Bank will be
added to any other money you may have on deposit at PNC Bank for purposes of
determining your aggregate insurance limit with PNC Bank. Please review your
Domini Deposit Account balance as the FDIC coverage limit applicable to your
deposit has been changed.
**
Current rate and annual percentage yield (APY) subject to change at any time
without notice. Visit www.domini.com
to review the current rate and APY.
Please note that the
Domini Deposit Account is only available to individuals and certain governmental
units, trusts, and nonprofit organizations.
The Domini Deposit Account
at PNC Bank is a NOW account. Please note that you will only be able to access
your Domini Deposit Account funds through Domini Social Investments. Domini
Social Investments will act as your agent for the purpose of making deposits to
and withdrawals from the Domini Deposit Account and will maintain the records
of your balance and transactions. You will not be able to access your funds in
the Domini Deposit Account or obtain balance information by contacting PNC Bank
directly.
The Domini Deposit
Account is made available through an arrangement with PNC Bank, National
Association, member FDIC. Domini Social Investments LLC and the mutual funds
offered through Domini are not affiliated with any bank and are not FDIC
insured. Domini Social Investments LLC retains the right to replace PNC Bank
with another FDIC member institution at its discretion. Prompt notice regarding
any such change will be provided.
March 25, 2010
Fund Merger
Complete
As of the close of business on
March 19, 2010, the Domini European Social Equity Fund and the Domini PacAsia
Social Equity Fund merged into the Domini
International Social Equity Fund (formerly known as the Domini European
PacAsia Social Equity Fund). The merger was approved by shareholders on March
9.
The Domini European Social Equity
Fund and the Domini PacAsia Social Equity Fund are no longer available for
investment. At the close of business on March 19, shareholders in these funds
received shares of the Domini International Social Equity Fund equal in value
to their holdings in these funds.
The Domini International Social Equity Fund offers a convenient way for
shareholders to gain access to markets around the world, while helping bring
about social and environmental change.
The fund is offered in no-load
Investor class shares (NASDQ: DOMIX) and in
Class A shares (NASDQ: DOMAX). Its CUSIP number is 257132704 (Investor
shares) or 257132886 (Class A shares). Learn
more about the fund or open an account.
The
Domini International Social Equity Fund is not insured and is subject to market
risks. You may lose money.
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.
Although
the Fund’s Investor shares are no-load, certain fees and expenses apply to a
continued investment and are described in the prospectus. The composition of
the Fund’s portfolio is subject to change.
March 3, 2010
New Report: “How
to Read a Corporate Social Responsibility Report”
Domini Chief Investment Officer Steve Lydenberg, in collaboration with
David Wood of the Institute for Responsible Investment, has published How to Read a
Corporate Social Responsibility Report: A User’s Guide (PDF).
Before 1992, corporate reports detailing the company’s impact on society
and ecosystems were relatively unknown. By 2008, however, more than 3,300
companies worldwide were publishing annual “CSR” or “sustainability” reports,
which range from highly detailed reports to slim glossy brochures.
Because these reports are generally produced on a voluntary basis, their
quality remains highly inconsistent. They often contain extremely valuable
information, however, that can help investors, companies, and communities make
better decisions together about our shared future. How to Read a Corporate Social Responsibility Report is a practical
guide for those who want to gain the most benefit from these reports, providing
helpful tips to both reporters and readers.
The guide discusses the dramatic increase in CSR reporting, lists the
many purposes the reports serve, describes and examines the features of a
thorough CSR report, and surveys standards and programs that assess and
recognize CSR initiatives.
“With CSR reports becoming longer, more numerous, and often more
confusing," writes Steve Lydenberg, "this guide can
help identify the issues, data, and interpretations that
are most meaningful.”
February 2, 2010
Special Notice for
Shareholders in Our European and PacAsia Funds
As a shareholder in the Domini European Social Equity Fund or Domini
PacAsia Social Equity Fund, you should have received a proxy statement in the
mail regarding an important proposal that affects your funds. The combined
proxy statement and prospectus can
also be viewed here.
You are being asked to approve a reorganization of the Funds whereby the
Domini International Social Equity Fund will acquire all of the assets and
liabilities of the Domini European Social Equity Fund and the Domini PacAsia Social
Equity Fund.
After the completion of the transaction, the Domini European Social
Equity Fund and the Domini PacAsia Social Equity Fund will be dissolved and
will no longer be available for investment.
The Funds’ Board
of Trustees unanimously recommends that you vote “For” this proposal.
Please review the combined proxy statement and prospectus and cast your vote as follows:
Mail: Complete, sign,
and return the card you received in the mail, or
Phone: Call
1-800-690-6903 and follow the instructions (to speak to a live person, call
1-800-829-6554), or
Online: Visit www.proxyvote.com and follow
the instructions.
Your vote is
important and only takes a few minutes to cast. If you have any
questions or need help, please call 1-800-582-6757.
January 12, 2010
Domini Social Equity
Fund Outperforms S&P 500 by 9% in 2009
Lipper ranks socially responsible fund in top
10% of large cap core equity.
November 6, 2009
How Is Domini
Addressing Healthcare Reform?
Over the years, we’ve
received thousands of emails from fund shareholders asking a wide range of
questions. We thought it would be interesting to share some of our responses to
questions that touch on matters of broad interest.
Recently, a shareholder wrote: “What kind of pressure are you putting on
pharmaceuticals to stop their attack on health care reform. As an investor I am
VERY concerned about this and am considering divesting from all of them!”
In our response we wrote the following:
“We share your concerns about corporate lobbying activity on healthcare
and many other critical issues, and we have worked to address these concerns
through shareholder activism and through the standards we use to select
holdings for our funds.
“We have been an active member of the Center for Political
Accountability, an investor organization seeking to bring greater
transparency to corporate political activity, and have successfully convinced a
number of firms to publicly disclose their political contributions. For
example, we were part of the investor group that convinced Merck to do so. Information
disclosed by Merck is available
online. We also vote our proxies in favor of proposals addressing health
care reform filed by labor unions and religious organizations.
“When reviewing pharmaceutical companies for the Domini Funds, our analysts
focus on three broad areas: access to medicine, the degree to which a company
focuses on patent-protected medicines, and pricing controversies. We favor
firms with a commitment to providing vaccines and preventative care, as opposed
to those focused on ‘lifestyle’ drugs, such as Viagra. We have also excluded
from our funds virtually all managed care organizations, such as Aetna and
Cigna. We have also excluded virtually all for-profit hospitals, as well as
many of the largest pharmaceutical companies, such as Pfizer.
“As I'm sure you're aware, the insurance industry has been active in this
debate as well. Reliable information on corporate lobbying activities can be
difficult to obtain, but we do keep an eye on the issue and have excluded
companies from our portfolios due to concerns in this area. Our exclusion of
United Health, for example, related to its lobbying activities on health care
reform.
“We have not decided to divest from the pharmaceutical or insurance industries,
although we do exclude individual companies that we believe fail to meet our
social and environmental standards. These companies are regularly reviewed
seeking to capture new information and emerging issues. Our Global Investment Standards
are available at our website. To review the full portfolio for each of our
funds, please visit the Domini
Funds section of our website, select a fund, and select
"Portfolio." Full fund portfolios are also disclosed in our Semi-Annual
and Annual Reports to shareholders.”
If you have
questions or comments about the Domini Funds or our investment policies, please
write us using our online
email form.
Past performance is no guarantee of future
results. The Domini Funds
are not insured and are subject to market risks. You may lose money. Certain
fees and expenses apply to a continued investment and are described in the prospectus. The
composition of each fund's portfolio is subject to change,
The social and
environmental standards applied to the Domini Funds are subject to change without
notice, as is Domini’s analysis of any of the companies named above. The
information provided above should not be deemed an offer to sell or a
solicitation of an offer to buy the stock of any of the companies noted, or a
recommendation concerning the merits of any of these companies as an investment.
You should consider the Domini Funds' investment
objectives, risks, charges and expenses carefully before investing. View
or order a copy of the Funds'
current prospectus for more complete information on these and other topics.
Please read the prospectus carefully before investing or sending money.
DSIL Investment
Services LLC, Distributor. 11/09
September 24, 2009
Amy Domini Named
“Responsibility Pioneer” by Time Magazine
Amy Domini, founder
and CEO of Domini Social Investments, has been honored by Time magazine as one of 25 “Responsibility Pioneers” who are
changing the world. The list accompanied the magazine's special section on
community service, "The Responsibility Revolution," in the September
21 issue.
"Amy Domini
started shaking up Wall Street in 1984 with a book she co-wrote, Ethical Investing," wrote Time’s
Jeremy Caplan.
"Since then, she
has used various means — from working with executives to forcing reforms via
shareholder resolutions — to help companies grow a conscience. And she has
proved that principles pay.... Her investing ethos is simple: 'The future of
the planet is as important as an earnings report.'"
Amy Domini has been
honored previously by Time magazine.
In 2005, she was named by the magazine as one of the 100 most influential
people in the world. In 2008, Directorship
magazine included Amy Domini in its Directorship 100, a list of the most
influential people on corporate governance and in the boardroom. She has
received honorary doctorates from the Northeastern University College of Law
and Yale University's Berkeley Divinity School.
You should consider
the Domini Funds' investment objectives, risks, charges, and expenses carefully
before investing. View
or order a copy of the
Funds' current prospectus for more complete information on these and other
topics. Please read the prospectus carefully before investing or sending money.
The Domini Funds are subject to market risks and are
not insured. You may lose money.
