Top Performance of European Fund Gets AttentionDomini European Social Equity Fund Is Included in Money, Wall Street Journal’s Lists of Best-Performing Funds
The strong performance of the Domini European Social Equity Fund (NASDQ: DEUFX) last year won it a place on Money magazine’s list of top 25 stock funds for 2006 and the Wall Street Journal’s list of 50 “One-Year Best Performers.”
Domini’s fund was the only diversified large-cap fund focused on the major European markets to make the list in the February issue of Money.
The Domini European Social Equity Fund, which launched in October 2005, returned 44.28% for the year ended December 31, 2006, versus 34.36% for the MSCI Europe Index. According to Money, the average stock fund returned 14.6% in 2006.
This performance also placed the fund in the top 10% of mutual funds in Morningstar’s Europe Stock category. More highly-ranked funds in the category were all focused on single countries, emerging markets, or small capitalization companies.
In creating its European fund, Domini pioneered an active management strategy intended to produce strong financial performance while also contributing to a sustainable future by encouraging companies to pursue cleaner technologies, energy efficiency, and a commitment to their employees and communities. The Fund’s strong early performance reinforces Domini’s belief that investors can achieve their financial goals and make a difference in the world.
The Fund’s active management strategy combines the strengths of Domini Social Investments and the Fund’s submanager, Wellington Management Company, LLP. This strategy was recently adopted byDomini’s flagship U.S. fund, the Domini Social Equity Fund (NASDQ: DSEFX). It is also being used for Domini’s newest funds, the Domini PacAsia Social Equity Fund (NASDQ: DPAFX) and Domini EuroPacific Social Equity Fund (NASDQ: DUPFX).
A Note on Methodology
Money: Performance figures used in “The Fund Score Card” in the February 2007 issue of Moneymagazine are from Lipper Inc. and represent total returns, without regard to sales load, deferred sales load, or redemption charges, for the period January 1 through December 28, 2006 for all stock funds in the Lipper database. The Domini European Social Equity Fund ranked 25th; the Lipper database contained 12,502 stock funds with a performance record for the relevant period (although Money may have filtered the database for duplicate share classes and other items when performing its rankings).
Wall Street Journal: Performance figures used in the Wall Street Journal’s feature “One-Year Best Performers” from the Mutual Funds Quarterly Review dated January 4, 2007, are for the period January 1 through December 29, 2006. Data was gathered or prepared by Lipper Inc., based on total return including capital appreciation and reinvested distributions, without regard to sales load, deferred sales load, or redemption charges. The Domini European Social Equity Fund ranked 36th; the Lipper database contained 12,502 stock funds with a performance record for the relevant period (although the Wall Street Journal may have filtered the database for duplicate share classes and other items when performing its rankings).
Morningstar: 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 in the category 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.
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.
Due to the Fund’s limited operating history, the favorable short-term performance indicated above may not be indicative of the Fund’s ability to continue producing favorable future returns.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.
Certain fees paid during this period were waived, and the Fund’s average annual total return would have been lower had these not been waived. 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 prospectusfor further information. The Domini Funds are subject to market risks and are not insured.
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.
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. 03/07