Domini European Social Equity Fund Outperforms in First YearSocially 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.
“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 a twww.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