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Domini International Social Equity Fund SM

Fund Information

$8.18
Daily Price (NAV)
as of 04/24/2014
Symbol DOMIX
Daily NAV Change $-0.01 (-0.12%)

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 3/31/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX0.37%17.51%8.49%17.65%NA0.59%
MSCI EAFE0.77%18.06%7.72%16.56%NA2.43%
Quarter-End Returns as of 3/31/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX0.37%17.51%8.49%17.65%NA0.59%
MSCI EAFE0.77%18.06%7.72%16.56%NA2.43%

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
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 3/31/14
COMPANY% OF PORTFOLIO
Associated British Foods plc2.2%
BT Group plc2.1%
Shire plc2.1%
Next plc1.9%
Merck KGaA1.8%
Deutsche Post AG1.8%
Continental AG1.8%
Société Générale S.A.1.7%
REA Group Ltd1.6%
Orange S.A.1.6%
TOTAL18.5%

Sector Weightings as of 3/31/14
SECTOR% OF PORTFOLIO
Financials29.1%
Industrials15.6%
Consumer Discretionary11.4%
Telecommunication Services8.6%
Health Care8.3%
Consumer Staples7.9%
Information Technology7.5%
Materials5.9%
Energy4.1%
Utilities1.6%
Total100.0%
Country Diversification as of 3/31/14
COUNTRY% OF PORTFOLIO
Japan17.9%
United Kingdom15.9%
France11.8%
Germany8.5%
Switzerland7.5%
Australia6.1%
Sweden4.6%
Netherlands3.9%
Hong Kong2.6%
Spain2.6%
Norway1.9%
China1.8%
South Korea1.8%
Austria1.5%
South Africa1.4%
Other10.2%
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) 11.5 12.5
Price-to-Book Ratio 1.2 1.7
Beta (projected) 1.07 --
R2 (projected) 0.98 --
Total Number of Holdings 155 --

All data as of 3/31/14.

*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. 

R2 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. R2 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 performs social, environmental and governance analysis, and Wellington then utilizes quantitative modeling techniques to manage the portfolio. Download Commentary as a PDF.

Total Returns as of December 31, 2013

  Oct
2013
Nov
2013
Dec
2013
4th Qtr
2013
YTD One
Year
Three
Year*
Five
Year*
Since Inception
(12/27/06)*†
DOMIX 3.84% 0.83% 1.34% 6.11% 25.77% 25.77% 10.07% 13.80% 0.56%
MSCI EAFE 3.36% 0.78% 1.51% 5.75% 23.29% 23.29% 8.66% 12.96% 2.40%

For the 2013 calendar year, the Fund’s Investor shares returned 25.77%, outperforming the MSCI EAFE Index, which returned 23.29%.

International equities closed out 2013 by rising for the sixth consecutive quarter. Generally solid economic data, coupled with continued accommodative monetary policy from central banks around the globe, raised investors’ growth expectations, and despite liquidity concerns in China and tepid economic growth in Europe, investors were emboldened by signs of expansionary traction in the U.S. and Japan.

Throughout the year, developed-market equities remained in a pro-cyclical bull market, with riskier, more cyclically-sensitive stocks outperforming their less volatile counterparts. The Fund benefitted from this, as the discount on these cheaper stocks contracted amid the market’s upbeat sentiment. The Fund also saw positive contributions from stocks that displayed financial discipline, with the market rewarding conservative capital deployment and the return of excess capital to shareholders.

For the fourth quarter of 2013, the Fund’s Investor shares returned 6.11%, outperforming the MSCI EAFE Index return of 5.75%.

Strong security selection in the financials, information technology and consumer discretionary sectors was partially offset by weaker security selection in the energy and telecommunications sectors. The following portfolio holdings were the top positive contributors to the Fund’s performance relative to the MSCI EAFE:

  • Associated British Foods, a U.K.-based multinational food processing and retailing company, which returned nearly 34% for the quarter.
  • Fujifilm, the Japanese multinational photography and imaging holding company, which returned more than 18% for the quarter.  
  • Merck, a German pharmaceutical company and the Fund’s fourth largest holding, which returned nearly 15% for the quarter.

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

  • Neste Oil, a Finnish oil refining and marketing company that lost more than 10% during the quarter due to the U.S. EPA’s proposal to cut its biofuel mandates. The company derives 5% of revenues from biofuels.  
  • Wheelock and Company, a Hong Kong-based financial real estate company that declined more than 13% during the quarter.
  • Fred. Olsen Energy, a Norwegian offshore-drilling contractor, which fell more than 8% during the quarter after reporting disappointing results, with increased operating costs related to the start-up of a new rig, unexpected downtime at another rig due to repair and testing, and an operating loss in the Engineering division.

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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