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 5/31/15. The Fund was rated against 303 and 269 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.
Questions?

1-800-582-6757

Monday - Friday
9 a.m. - 6 p.m. EST

Send us an email

Domini International Social Equity Fund SM

Fund Information

$7.89
Daily Price (NAV)
as of 06/29/2015
Symbol DOMIX
Daily NAV Change $-0.23 (-2.83%)

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 5/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX9.63%4.38%18.84%12.28%NA1.17%
MSCI EAFE8.93%-0.06%16.13%10.44%NA2.47%
Quarter-End Returns as of 3/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMIX5.83%2.00%12.24%8.41%NA0.76%
MSCI EAFE5.00%-0.48%9.52%6.64%NA2.07%

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
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 5/31/15
COMPANY% OF PORTFOLIO
Unilever plc2.2%
Novartis AG2.0%
Allianz SE2.0%
Adecco SA2.0%
Vivendi1.9%
Orange1.9%
Central Japan Railway Co.1.8%
Koninklijke Ahold NV1.8%
AXA SA1.8%
Swiss Re AG1.7%
TOTAL19.0%

Sector Weightings as of 3/31/15
SECTOR% OF PORTFOLIO
Financials29.2%
Industrials13.8%
Consumer Discretionary12.9%
Consumer Staples10.7%
Health Care8.0%
Information Technology6.8%
Telecommunication Services6.5%
Materials5.6%
Utilities3.5%
Energy3.0%
Total100.0%
Country Diversification as of 3/31/15
COUNTRY% OF PORTFOLIO
Japan19.7%
United Kingdom15.4%
Germany10.9%
France8.9%
Sweden5.2%
Switzerland4.8%
Hong Kong3.9%
Spain3.6%
Finland3.4%
Netherlands3.4%
Denmark2.4%
Brazil2.2%
South Korea2.2%
Australia2.1%
Singapore2.1%
Other10.1%
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 14.2
Price-to-Book Ratio 1.4 1.8
Beta (projected) 1.0 --
R-squared (projected) 0.98 --
Total Number of Holdings 148 --

All data as of 3/31/15.

*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 March 31, 2015

  Jan
2015
Feb
2015
March
2015
1st Qtr
2015
YTD One
Year
Three
Year*
Five
Year*
Since Inception
(12/27/06)*†
DOMIX 2.44% 5.30% -1.89% 5.83% 5.83% 2.00% 12.24% 8.41% 0.76%
MSCI EAFE 0.50% 5.99% -1.43% 5.00% 5.00% -0.48% 9.52% 6.64% 2.07%

For the first quarter of 2015, the Fund’s Investor shares returned 5.83%, outperforming the MSCI EAFE Index return of 5.00%.

Strong security selection in the industrials, energy and consumer staples sectors was partially offset by weaker security selection in telecommunications services and financials sectors. An underweight to the energy sector also contributed to performance.

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

  • Central Japan Rail, a railway services company which returned more than 20% for the quarter. The company’s stock rose due to reduced market risk as a result of monetary easing, and growing profits, lower depreciation costs and effective cost reduction strategies. Train repairs, which are steadily increasing the average number of seats, provided on its trains, the number of passengers filling them is rising accordingly. Our overweight position in the company contributed to positive performance. 
  • Merck KGaA, a German pharmaceutical company, returned more than 18.33% after strong fourth quarter 2014 results, with sales beating expectations. Our overweight position in the company contributed to positive performance.
  • Asahi Glass Co., a global glass manufacturing company headquartered in Japan whose stock rose nearly 34% for the quarter. 

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

  • Alumina Limited, an Australian aluminum production company whose shares declined nearly 14% during the quarter as a result of a fall in the global price of aluminum as well as a loss from its sale of Jamalco.
  • Enagas SA, a Spanish company operating in the energy sector, which dropped more than 9% for the quarter after investors grew concerned over the company’s 50% acquisition of Swedegas, a Swedish gas transmission operator. Growth stemming from this acquisition is expected to be limited due to grid maturity.
  • Orange SA, a French telecommunications company, fell more than 6% 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.

Responding to the Fukushima Crisis

Domini’s long-standing view on nuclear power has not changed — we believe that its inherent risks dramatically outweigh its benefits. Tragically, many of these risks came to pass in March 2011 when an earthquake hit Japan and triggered a tsunami, leading to the worst nuclear disaster since the Chernobyl accident of 1986...

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...