Domini Sustainable Solutions FundSM
The Domini Sustainable Solutions FundSM offers impact investors an opportunity to help make a difference. Shareholders have access to a global equity portfolio seeking companies providing solutions for a better future. The Domini Sustainable Solutions Fund is designed to help you meet your own personal financial goals and address many of the world’s greatest sustainability challenges.
By investing in companies that develop and provide access to solution-oriented products and services—from renewable energy systems and electric vehicles to breakthrough medical technologies, healthy and organic food, and lending for underserved communities—we believe we can help overcome these challenges. Furthermore, through the identification of well-managed companies supporting the transition to a more sustainable economy, we believe we can also identify investments with long-term growth potential.
We’re proud to be recognized as “Boutique investment manager of the year – Americas”
Read about Domini Impact Investments’ long history in the field and about what makes us different.
Net Assets as of 9/30/24
Fund: $38.1 million
Investor shares: $22.3 million
Daily Price (NAV)
Daily NAV Change
Adviser
Domini Impact Investments LLC
Subadviser
SSGA Funds Management, Inc.
Inception Date
4/1/20
Symbol
CAREX
Portfolio Managers
Annual Expense Ratio2
Gross: 2.05%/Net: 1.40%
Per current prospectus
Front-End Sales Charge (Load)
None
Minimum Initial Investment
$2,500 for standard accounts
$1,500 for retirement accounts, custodial and educational accounts, and standard accounts opened with an automatic investment plan
Investment Strategy
The Domini Sustainable Solutions Fund invests globally in solution-oriented companies in which Domini has strong long-term investment conviction, as determined by our in-depth environmental, social, and financial research and analysis. We seek companies that support the following sustainability themes by developing or providing access to solution-oriented products and services, including, but not limited to:
- Accelerate the transition to a low-carbon future
Examples: Renewable energy, including wind and solar technologies; Distributed generation and off-grid energy solutions; Energy storage; Electric vehicles; High-efficiency semiconductors and other energy-efficient technologies - Contribute to the development of sustainable communities Examples: Safe and affordable housing, Low-carbon transportation systems, Climate-resilient infrastructure; Climate-adaptation services; Sustainable design and engineering services; Smart-city technologies
- Ensure access to clean water for drinking and sanitation
Examples: Affordable water services; Water and wastewater treatment facilities; Water quality and filtration solutions; Water harvesting and conservation; Flow-control and plumbing - Support sustainable food systems
Examples: Healthy, natural, organic, and/or plant-based foods; Consumer nutrition education; Reduction of food waste; Resource-efficient agriculture; Support for local and small-scale farming - Promote societal health and well-being
Examples: Preventative healthcare solutions, including vaccines and health education services; Innovative diagnostics and medicines for priority and neglected diseases; Mobile medical technologies - Broaden financial inclusion
Examples: Affordable lending for underserved or disadvantaged communities; Financial literacy programs; Banking, insurance, and investment products/services; Access to capital for entrepreneurs and small businesses - Bridge the digital divide and expand economic opportunity
Examples: Information and communication technologies; Quality education or training services; Software or services that support the development of small- and medium-enterprises
Domini’s Founder and Chair, Amy Domini, and CEO, Carole Laible, serve as the Fund’s co-portfolio managers. They are supported by a dedicated team of impact-investment research and financial analysts. SSGA Funds Management serves as the Fund’s Subadviser, responsible for implementing Domini’s investment instructions and managing the Fund’s cash needs.
The Fund may change any of the policies described above at any time.
Investor Shares Performance
| Fund | YTD | 1 YR | 3 YR* | 5 YR* | Since Inception¹ |
|---|---|---|---|---|---|
| CAREX | 11.02 | 29.93 | -6.69 | N/A | 12.52 |
| MSCI World EQ WTD NR | 8.79 | 27.17 | 1.78 | N/A | 13.59 |
| MSCI World IMI NR | 15.58 | 33.23 | 5.65 | N/A | 17.47 |
| Fund | YTD | 1 YR | 3 YR* | 5 YR* | Since Inception¹ |
|---|---|---|---|---|---|
| CAREX | 15.83 | 19.13 | -1.95 | N/A | 13.84 |
| MSCI World EQ WTD NR | 12.94 | 25.70 | 4.14 | N/A | 14.81 |
| MSCI World IMI NR | 18.00 | 31.62 | 8.27 | N/A | 18.37 |
| CAREX | MSCI World EQ WTD NR | MSCI World IMI NR | |
|---|---|---|---|
| 2023 | 13.16 | 16.70 | 22.88 |
| 2022 | -27.19 | -16.80 | -18.22 |
| 2021 | -6.51 | 14.88 | 21.04 |
| CAREX | MSCI World EQ WTD NR | MSCI World IMI NR | |
|---|---|---|---|
| Q3 2024 | 4.85 | 10.00 | 6.67 |
| Q2 2024 | 1.49 | -2.19 | 2.06 |
| Q1 2024 | 8.84 | 4.98 | 8.39 |
| Q4 2023 | 11.49 | 11.29 | 11.54 |
| Q3 2023 | -4.87 | -3.83 | -3.56 |
* Average annual total returns
1. CAREX Inception date April 1, 2020
Returns for periods less than one year are not annualized.
2. The Fund’s Adviser has contractually agreed to waive certain fees and/or reimburse certain ordinary operating expenses in order to limit Investor share and Institutional share expenses to 1.40% and 1.15%, respectively. These expense limitations are in effect through November 30, 2024. There can be no assurance that the Adviser will extend the expense limitations beyond such time. While in effect, the arrangement may be terminated for a class only by agreement of the Adviser and the Fund’s Board of Trustees.
Gross/Net Annual Expense Ratio: 2.05%/1.40% Per current prospectus.
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. The returns reflect any applicable expense waivers in effect during the periods shown. Without such waivers, Fund performance would be lower. Investment return, principal value, and yield will fluctuate. Your shares, when redeemed, may be worth more or less than their original cost. See Investor Shares Performance above for more performance information, including returns current to the most recent month-end, which may be lower or higher than the performance data quoted. See the prospectus for further information.
An investment in the Domini Sustainable Solutions Fund is not a bank deposit and is not insured. The Fund is subject to certain risks, including the loss of principal, sustainable investing, portfolio management, information, market, mid- to large-cap companies’ and small-cap companies’ risks. 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. These risks may be heightened in connection with investments in emerging market countries. See the prospectus for more information on risk.
The Adviser’s evaluation of environmental and social factors in its investment selections and the timing of the Subadviser’s implementation of the Adviser’s investment selections will affect the Fund’s exposure to certain issuers, industries, sectors, regions, and countries and may impact the relative financial performance of the Fund depending on whether such investments are in or out of favor. The value of your investment may decrease if the Adviser’s or Subadviser’s judgement about Fund investments does not produce the desired results. The Fund may forego some investment opportunities including investments in certain market sectors that are available to funds that do not consider environmental and social factors in their investment selections. There is a risk that information used by the Adviser to evaluate environmental and social factors, may not be readily available or complete, which could negatively impact the Adviser’s ability to evaluate such factors and Fund performance.
The performance above does not reflect the deduction of fees and taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested.
Although the Domini Sustainable Solutions Fund Investor shares are no-load, certain fees and expenses apply to a continued investment and are described in the prospectus.
The Morgan Stanley Capital International World Equal Weighted Net Total Return USD Index (MSCI World EQ WTD NR) is an equal-weighted index representing the performance of large- and mid- capitalization companies in developed markets. The Morgan Stanley Capital International World Investable Market Net Total Return USD Index (MSCI World IMI NR) is a market-capitalization weighted index representing the performance of large-, mid-, and small-capitalization companies in developed markets. The MSCI World EQ WTD NR and MSCI World IMI NR include the reinvestment of dividends net of withholding tax, but do not reflect other fees, expenses or taxes. Investors cannot invest directly in the MSCI World EQ WTD NR or MSCI World IMI NR.
Effective November 1, 2023, the benchmark against which the Domini Sustainable Solutions Fund measures its performance changed from the MSCI World IMI NR to the MSCI World EQ WTD NR.
Holdings
| Security Name | Weight (%) |
|---|---|
| Palo Alto Networks Inc | 4.3 |
| Schneider Electric SE | 4.3 |
| Muenchener Rueckversicherung | 3.7 |
| Wolters Kluwer | 3.6 |
| Arcadis NV | 3.5 |
| Veralto Corp | 3.5 |
| Nexans SA | 3.3 |
| Hologic Inc | 3.3 |
| Flex Ltd | 3.1 |
| Resona Holdings Inc | 3 |
| Total | 36 |
| Sector | Weight (%) |
|---|---|
| Industrials | 30.1 |
| Information Technology | 24.1 |
| Health Care | 19.3 |
| Financials | 11.1 |
| Consumer Discretionary | 8.9 |
| Consumer Staples | 3.2 |
| Communication Services | 1.8 |
| Utilities | 1.5 |
| Total | 100 |
| Performance | Weight (%) |
|---|---|
| United States | 58.4 |
| Netherlands | 9.2 |
| United Kingdom | 7.4 |
| France | 6.8 |
| Germany | 6.3 |
| Japan | 5.8 |
| Uruguay | 2.4 |
| China | 2.4 |
| Canada | 1.3 |
| Total | 100 |
The composition of the Fund’s portfolio is subject to change. The Domini Funds maintain portfolio holdings disclosure policies that govern the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by Domini Impact Investments. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification nor shall any such party have any liability therefrom.
Portfolio Characteristics
Portfolio Statistics*
| Performance | Fund | |
|---|---|---|
| Number of Holdings | 45 | |
| Annual Turnover (as of July 31, 2024)** | 45% | |
| Weighted-Average Market Cap ($M) | 106,800 | |
| Median Market Cap ($M) | 18,921 | |
| Price/Book Ratio | 4.5x | |
| Price/Earnings Ratio (Trailing 12 Months) | 24.4x | |
| Return on Equity (Trailing 12 Months) | 16.4% |
* Source: Bloomberg Portfolio Risk & Analytics, except as noted by **.
All characteristics are as of June 30, 2024, unless otherwise noted.
Quick Links
Fund Distributions
Dividends
Distributed semi-annually
Capital Gains
Distributed annually
Investor Profile
Who should invest?
- Investors seeking long-term growth of capital
- Investors committed to the Fund’s impact investment standards
Who should not invest?
- Investors unwilling or unable to accept moderate to significant fluctuations in share price
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Definitions
Annual Turnover is the lesser of purchases or sales for the trailing 12 months divided by the portfolio’s average trailing 13-month net asset values.
Price/Book Ratio is the weighted harmonic average of the price/book ratios of the stocks in the portfolio, which are the stocks’ most recent closing prices divided by their book value per share.
Price/Earnings Ratio is the weighted harmonic average of the price/earnings ratios of the stocks in the portfolio, which are the stocks’ most recent closing prices divided by their earnings per share over the trailing 12 months.
Return on Equity is the portfolio’s total net income less cash preferred dividends divided by the portfolio’s total common equity.
Tracking Error is the standard deviation of residual returns, which are the differences between fund’s projected returns and the index’s projected returns. Tracking error measures the degree of dispersion of fund returns around the index. Generally, the higher the tracking risk, the greater the active bets the manager has taken.
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.