Domini International Social Equity Fund

We are pleased to announce the Domini International Social Equity Fund Investor Shares has received a five star overall rating from Morningstar.* 

*As of 7/31/15. The Fund was rated against 289 and 255 U.S. domiciled Foreign Large Value funds for the last three and five years, respectively, based on risk-adjusted return. Past performance is no guarantee of future results. View more complete rating and risk information.
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Domini International Social Equity Fund SM

Fund Information

$7.62
Daily Price (NAV)
as of 08/28/2015
Symbol DOMIX
Daily NAV Change $0.00 (0.00%)

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 7/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX9.51%4.65%15.24%10.18%NA1.13%
MSCI EAFE8.08%0.13%12.79%8.49%NA2.33%
Quarter-End Returns as of 6/30/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX7.61%0.99%15.48%11.91%NA0.94%
MSCI EAFE5.88%-3.83%12.45%10.02%NA2.11%

Calendar Year Returns
DOMIXMSCI EAFE
2014-3.27%-4.48%
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
2nd Qtr 20151.68%0.84%
1st Qtr 20155.83%5.00%
4th Qtr 2014-1.46%-3.53%
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: 1.62% / Net: 1.60%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 1.60% until 11/30/15, 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 7/31/15
COMPANY% OF PORTFOLIO
Unilever plc2.0%
Vivendi1.9%
Allianz SE1.9%
Novartis AG1.8%
Marks & Spencer Group plc1.8%
Adecco SA1.8%
ING Groep NV1.7%
AXA SA1.7%
Mondi plc1.6%
Swiss Re AG1.6%
TOTAL17.9%

Sector Weightings as of 6/30/15
SECTOR% OF PORTFOLIO
Financials29.3%
Industrials16.1%
Consumer Discretionary14.1%
Consumer Staples9.2%
Health Care9.1%
Information Technology7.8%
Materials5.2%
Telecommunication Services4.9%
Energy3.0%
Utilities1.4%
Total100.0%
Country Diversification as of 6/30/15
COUNTRY% OF PORTFOLIO
Japan19.2%
United Kingdom16.4%
France10.7%
Germany9.1%
Switzerland7.4%
Hong Kong3.8%
Denmark3.6%
Sweden3.2%
Australia3.1%
Netherlands3.0%
South Korea2.1%
Spain2.1%
Brazil1.9%
South Africa1.8%
Belgium1.5%
Other11.0%
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) 13.7 13.9
Price-to-Book Ratio 1.4 1.7
Beta (projected) 1.03 --
R-squared (projected) 0.98 --
Total Number of Holdings 157 --

All data as of 6/30/15.

*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 June 30, 2015

  April
2015
May
2015
June
2015
2nd Qtr
2015
YTD One
Year
Three
Year*
Five
Year*
Since Inception
(12/27/06)*†
DOMIX 3.33% 0.25% -1.85% 1.68% 7.61% 0.99% 15.48% 11.91% 0.94%
MSCI EAFE 4.16% -0.40% -2.80% 0.84% 5.88% -3.83% 12.45% 10.02% 2.11%

For the second quarter of 2015, the Fund’s Investor shares returned 1.68%, outperforming the MSCI EAFE Index return of 0.84%.

Strong security selection in the consumer discretionary, industrials and consumer staples sectors was partially offset by weaker security selection in telecommunications services.

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

  • Gamesa Corp. Tecnologica, a Spanish holding company active in renewable energy, which returned more than 24% for the quarter after first quarter results beat expectations and management released impressive outlook reports predicting high levels of growth in the company’s key emerging markets and opportunities in the U.S., Northern Europe and Africa.
  • China Travel Intl., a Chinese investment holding company specializing in travel, transportation services, leisure activities and power generation, which returned nearly 48% for the quarter. The company’s shares rose significantly after it executed a share buyback and announced it would distribute a special dividend after selling its majority stake in the Shaanxi Weihe power plant.
  • 3i Group plc, a UK based investment manager whose shares grew nearly 17% for the quarter after strong fiscal year 2015 results. The Fund’s overweight position added to performance. 

The following portfolio holdings were the largest detractors to the Fund’s performance relative to the S&P 500:

  • Merck KGaA, a German pharmaceutical company, saw share prices fell 10.5% after sales of its top performing products were either in-line with or below expectations for the quarter. The Fund’s overweight position hurt performance.
  • Muenchener Rueckvers, a German reinsurance company, whose shares fell more than 14% for the quarter.
  • Spark New Zealand Ltd., a telecommunications company whose shares declined more than 15% during 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.

How Domini Research Helped End Toyota Affiliate's Joint Venture with Burmese Government

After three years of dialogue with investors, Toyota Motor, the world’s largest automaker, took an important step to distance itself from the brutal military regime in Burma. That step was the direct result of investors who care about how they make money...

Promoting Women on Japanese Boards

Domini has a long-standing policy to vote against boards of directors if they do not include at least one woman or minority director. Outside of the United States, this policy is focused on gender diversity. In Japan, very few women rise to the level of director...

Addressing Corporate Tax Avoidance

One of the most important areas of corporate social responsibility has gone largely ignored, until now. The headlines are filled with stories of aggressive strategies by corporations to minimize or eliminate their tax payments, primarily through the use of offshore tax havens. Countries around the world are losing billions in tax revenues, all in the name of shareholder value.

Tax avoidance weakens societies and threatens long-term wealth creation. That is why Domini is taking a lead role in asking corporations to adopt more responsible and transparent tax strategies.