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Domini International Social Equity Fund sm

Fund Information

$7.96
Daily Price (NAV)
as of 02/27/2015
Symbol DOMOX
Daily NAV Change $0.01 (0.13%)

Overview

Institutional Shares Overview

Institutional shares are available to qualified endowments, foundations, religious organizations, nonprofit entities, individuals and certain corporate or similar institutions that meet the minimum investment requirements.

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:

  • The Institutional share class of the Domini International Social Equity Fund is available to investors that meet the minimum investment requirements, have been approved by the distributor, and fall within the following categories: endowments, foundations, religious organizations and other nonprofit entities, individuals, retirement plan sponsors, family office clients, private trusts, certain corporate or similar institutions, or omnibus accounts maintained by financial intermediaries.**
  • 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

Institutional Shares Performance

Month-End Returns as of 1/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMOX2.58%3.55%13.07%8.79%NA0.37%
MSCI EAFE0.50%0.01%9.82%6.87%NA1.56%
Quarter-End Returns as of 12/31/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
DOMOX-3.01%-3.01%14.22%7.49%NA0.08%
MSCI EAFE-4.48%-4.48%11.56%5.81%NA1.51%
Calendar Year Returns
DOMOXMSCI EAFE
2014-3.01%-4.48%
201326.35%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
DOMOXMSCI EAFE
4th Qtr 2014-1.44%-3.53%
3rd Qtr 2014-4.63%-5.83%
2nd Qtr 20142.80%4.34%
1st Qtr 20140.37%0.77%
4th Qtr 20136.40%5.75%
3rd Qtr 201311.31%11.61%
2nd Qtr 2013-0.69% -0.73%
1st Qtr 20137.42%5.23%

*Average annual total returns.

Institutional shares were not offered prior to 11/30/12. All performance information for time periods beginning prior to 11/30 is the performance of the Investor shares, which has not been adjusted to reflect the lower expenses of the Institutional shares.

Annual Expense Ratio: Gross: 1.16% / Net: 1.16%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 1.27% 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 1/31/15
COMPANY% OF PORTFOLIO
Novartis AG4.4%
Unilever plc2.5%
Allianz SE2.2%
Central Japan Railway Co.2.1%
Merck KGaA2.0%
Orange2.0%
Shire plc2.0%
Neste Oil OYJ1.9%
Henkel AG & Co. KGaA1.9%
AXA S.A.1.8%
TOTAL22.7%

Sector Weightings as of 12/31/14
SECTOR% OF PORTFOLIO
Financials29.3%
Industrials14.3%
Health Care11.4%
Consumer Discretionary10.4%
Consumer Staples9.1%
Information Technology6.7%
Materials6.3%
Telecommunication Services5.9%
Utilities3.9%
Energy2.7%
Total100.0%
Country Diversification as of 12/31/14
COUNTRY% OF PORTFOLIO
Japan19.9%
United Kingdom16.0%
Germany8.9%
France7.9%
Switzerland7.4%
Hong Kong5.6%
Spain4.6%
Finland3.9%
Sweden3.4%
Denmark2.6%
Netherlands2.5%
South Korea2.4%
Brazil2.1%
Australia1.1%
South Africa0.8%
Other10.9%
Total100.0%

View the most recent quarterly holdings report filed with the Securities and Exchange Commission.

Formerly the Domini European PacAsia Social Equity Fund.

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) 13.6 13.9
Price-to-Book Ratio 1.2 1.7
Beta (projected) 1.0 --
R-squared (projected) 0.98 --
Total Number of Holdings 143 --

All data as of 12/31/14.

*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

Institutional 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 December 31, 2014

  Oct
2014
Nov
2014
Dec
2014
4th Qtr
2014
YTD One
Year
Three
Year*
Five
Year*
Since Inception
(12/27/06)*†
DOMIX -0.12% 1.74% -3.01% -1.44% -3.01% -3.01% 14.22% 7.49% 0.08%
MSCI EAFE -1.45% 1.37% -3.44% -3.53% -4.48% -4.48% 11.56% 5.81% 1.51%

For the 12 months ended December 31, the Fund’s Institutional shares returned -3.01%, outperforming the MSCI EAFE Index return of -4.48%.

Wellington Management uses a multi-factor model to select stocks for the portfolio that have been approved by Domini for investment. In 2014, the standout contributors to the Fund’s performance were Wellington’s capital management and momentum factors. Firms that returned excess capital or invested conservatively were rewarded with higher stock prices. Their counterparts, as with most energy companies recently, were penalized with lower stock prices stemming from the market’s perception of overinvestment and the expectations of subpar returns on capital that are a likely consequence.

For the fourth quarter of 2014, the Fund’s Investor shares returned -1.44%, underperforming the MSCI EAFE Index return of -3.53%.

The Fund’s performance relative to the MSCI EAFE benefited from strong stock selection in the energy, financials and materials sectors, which offset the negative impact of weaker security selection within the information technology sector.

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

  • Neste Oil Oyj, a Finland-based petroleum refining and marketing company returned nearly 18% for the quarter after strong third quarter results that beat consensus estimates. Neste’s Renewable Products segment’s performance was impressive over the course of the year, especially in the U.S., where its additional margin continues to expand. 
  • Central Japan Railway Co., a Japanese railway that returned more than 12% for the quarter.
  • Orange S.A., a French multinational telecommunications corporation that returned more than 15% for the quarter. 

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

  • Subsea 7 S.A., a subsea engineering, construction and services company that declined nearly 28% for the quarter.
  • Otsuka Holdings, a Japanese pharmaceutical holding company that fell nearly 12% over the quarter due to a number of factors. The company was negatively impacted higher U.S. pharma fees stemming from health care reforms and also experienced a fall in stock price as investors anticipated the impending expiration of the company’s patent on Abilify, set to occur in April 2015. In Japan, Otsuka also faced strong competition from generics.
  • Credit Agricole S.A., a French network of banks that provides services to farmers, small businesses, companies and public authorities, declined nearly 14%.

Making a Difference

Domini engages in direct dialogue with corporations in our portfolios and files shareholder proposals 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.

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Promoting Women on Japanese Boards

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