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Domini International Social Equity Fund SM

Fund Information

$7.91
Daily Price (NAV)
as of 10/29/2014
Symbol DOMIX
Daily NAV Change $0.01 (0.13%)

Overview

Investor Shares Overview

The Domini International Social Equity Fund helps you access a world of investment opportunity, while using your investment dollars to encourage corporate responsibility. Investments in companies across Europe, the Asia-Pacific region, and throughout the rest of the world let you take advantage of broad international diversification with the convenience of one mutual fund.

Investment Objective

The Fund seeks to provide its shareholders with long-term total return.

Investment Strategy

The Fund invests primarily in stocks of companies in Europe, the Asia-Pacific region, and throughout the rest of the world that meet Domini Social Investments’ social and environmental standards.

Subject to these standards, Wellington Management Company, LLP, the Fund’s subadvisor, seeks to add value using a diversified quantitative stock selection approach, while managing risk through portfolio construction.  

Management

Investment Advisor and Sponsor: Domini Social Investments LLC.

Subadvisor: Wellington Management Company, LLP.

Shareholder Activism

The Fund seeks to use its position as a shareholder to raise issues of social and environmental performance with corporate management.

Social and Environmental Standards

Domini evaluates the Fund’s potential investments against its social and environmental standards based on the businesses in which they engage, as well as on the quality of their relations with key stakeholders, including communities, customers, ecosystems, employees, investors, and suppliers.

Domini may determine that a security is eligible for investment even if a corporation’s profile reflects a mixture of positive and negative social and environmental characteristics.

Investor Profile

Who Should Invest:

  • Investors seeking long-term growth of capital.
  • Investors committed to the Fund’s socially responsible investment standards.

Who Should Not Invest:

  • Investors unwilling or unable to accept moderate to significant fluctuations in share price.

Performance

Investor Shares Performance

Month-End Returns as of 9/30/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX-1.84%4.15%15.89%7.79%NA0.27%
MSCI EAFE-0.99%4.70%14.16%7.04%NA2.03%
Quarter-End Returns as of 9/30/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX-1.84%4.15%15.89%7.79%NA0.27%
MSCI EAFE-0.99%4.70%14.16%7.04%NA2.03%

Calendar Year Returns
DOMIXMSCI EAFE
201325.77%23.29%
201222.53%17.90%
2011-13.45%-11.73%
201011.25%8.21%
200928.68%32.45%
2008-46.65%-43.06%
20072.22%11.62%

Quarterly Returns
DOMIXMSCI EAFE
3rd Qtr 2014-4.76%-5.83%
2nd Qtr 20142.69%4.34%
1st Qtr 20140.37%0.77%
4th Qtr 20136.11%5.75%
3rd Qtr 201311.29% 11.61%
2nd Qtr 2013-0.86% -0.73%
1st Qtr 20137.42%5.23%

*Average annual total returns.

Annual Expense Ratio: Gross: 1.68% / Net: 1.60%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 1.60% until 11/30/14, subject to earlier modification by the Fund’s Board of Trustees. See prospectus for details. The Funds’ performance would have been lower had these fees not been waived.

Holdings


Ten Largest Holdings as of 9/30/14
COMPANY% OF PORTFOLIO
Novartis AG4.4%
Merck KGaA2.0%
Associated British Foods plc1.9%
AXA S.A.1.9%
Otsuka Holdings Co. Ltd.1.9%
Central Japan Railway Company1.8%
Next plc1.8%
Dai Nippon Printing Co. Ltd.1.7%
InterContinental Hotels Group plc 1.6%
Red Eléctrica Corporación S.A. 1.6%
TOTAL20.6%

Sector Weightings as of 9/30/14
SECTOR% OF PORTFOLIO
Financials29.2%
Industrials13.5%
Consumer Discretionary11.8%
Health Care10.9%
Consumer Staples8.9%
Information Technology6.8%
Materials6.1%
Telecommunication Services5.7%
Energy4.1%
Utilities3.1%
Total100.0%
Country Diversification as of 9/30/14
COUNTRY% OF PORTFOLIO
Japan19.9%
United Kingdom15.2%
France8.8%
Germany7.8%
Switzerland7.3%
Sweden4.9%
Hong Kong4.8%
Spain4.4%
Australia3.9%
Finland3.7%
South Korea3.0%
Brazil2.8%
Denmark2.3%
Netherlands2.2%
South Africa1.4%
Other7.6%
Total100.0%

View the most recent quarterly holdings report filed with the Securities and Exchange Commission.

 

Characteristics

Portfolio Overview

Socially screened, mid- to large-capitalization international equity fund.

 

Investment Style:

Blend

Weighted Average Market Capitalization:

Large

Portfolio Statistics

  DOMIX MSCI EAFE*
Price-to-Earnings Ratio (projected) 12.8 13.2
Price-to-Book Ratio 1.1 1.7
Beta (projected) 1.01 --
R-squared (projected) 0.98 --
Total Number of Holdings 146 --

All data as of 9/30/14.

*The Morgan Stanley Capital International Europe, Australia, and Far East Index (MSCI EAFE) is an unmanaged index of common stocks. Investors cannot invest directly in an index.

Definitions:

The Price/Earnings Ratio is a stock’s current price divided by the company’s trailing 12-month earnings per share. The Price/Book Ratio is used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. The P/E and P/B ratio of a fund is the weighted average of the price/earnings and price/book ratios of the underlying stocks in a fund’s portfolio. 

R-squared measures how a fund’s performance correlates with a benchmark index’s performance and shows what portion of it can be explained by the performance of the overall market/index. R-squared ranges from  0, meaning no correlation, to 1, meaning perfect correlation.

Beta is a measure of the volatility of a fund relative to its benchmark index. A beta greater (less) than 1 is more (less) volatile than the index.

Commentary

Investor Shares Performance Commentary

The Fund is managed through a two-step process designed to capitalize on the strengths of Domini Social Investments and Wellington Management. Domini creates an approved list of companies based on its social, environmental and governance analysis, and Wellington then utilizes a systematic and disciplined process to manage the portfolio. Download Commentary as a PDF.

Total Returns as of September 30, 2014

  July
2014
Aug
2014
Sep
2014
3rd Qtr
2014
YTD One
Year
Three
Year*
Five
Year*
Since Inception
(12/27/06)*†
DOMIX -1.78% 1.33% -4.30% -4.76% -1.84% 4.15% 15.89% 7.79% 0.27%
MSCI EAFE -1.96% -0.15% -3.81% -5.83% -0.99% 4.70% 14.16% 7.04% 2.03%

For the third quarter of 2014, the Fund’s Investor shares returned -4.76%, outperforming the MSCI EAFE Index return of -5.83%.

Relative performance was helped most by strong security selection in the telecommunication services, health care and financials sectors.This was partially offset by weaker security selection in the consumer staples, industrials and materials sectors.

The following portfolio holdings were the top positive contributors to the Fund’s relative performance:

  • Otsuka Holdings, a Japanese pharmaceutical company that returned more than 12% for the quarter, with strong operating results for the first half of the year driven by strong sales momentum for Abilify, a drug used to treat schizophrenia and bipolar disorder, and an improving medium-term outlook on new drug sales in Japan.
  • Fujifilm Holdings, a Japanese photography and imaging company that returned more than 10% for the quarter, with strong quarterly results driven by fixed-cost reductions in Information Solutions and strong performance in Imaging and Document Solutions. The stock rose after news that the influenza drug Favipiravir, owned by Fujifilm subsidiary Toyama Chemical, has emerged as a potential drug to treat Ebola. 
  • Merck KGaA, a German chemical and pharmaceutical company that returned more than 6% for the quarter.

The following portfolio holdings were the largest detractors to the Fund’s relative performance:  

  • Associated British Foods, a UK-based food processing and retailing company’s stock fell nearly 17% over the quarter due to declining sugar profitability in the EU and China. 
  • Seino Holdings, a Japanese logistics company whose stock fell more than 29% over the quarter, as unexpected margin deterioration was driven by lower volumes in the Transportation segment as a result of a consumption tax hike and high labor costs.
  • Continental AG, a German automotive parts manufacturer that declined nearly 18% for the quarter.

Making a Difference

Domini engages in direct dialogue with corporations in our portfolios on a broad range of social, environmental, and corporate governance issues. Shareholder activism — the practice of active ownership — lies at the heart of what we believe responsible investing is all about. Here are a few ways your investment in the Domini Funds has made a difference. For more stories, click here.

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