Domini International Social Equity Fund
As of 10/31/15. The Fund was rated against 286 and 253​ 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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Fund Information

Daily Price (NAV)
as of 11/25/2015
Symbol DOMOX
Daily NAV Change $0.03 (0.39%)

Key Documents


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.  


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.


Institutional Shares Performance

Month-End Returns as of 10/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
MSCI EAFE2.53%-0.37%8.48%5.28%NA1.66%
Quarter-End Returns as of 9/30/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (12/27/06)*
MSCI EAFE-4.91%-8.27%6.08%4.45%NA0.80%
Calendar Year Returns

Quarterly Returns
3rd Qtr 2015-7.45%-10.19%
2nd Qtr 20151.71%0.84%
1st Qtr 20156.11%5.00%
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.


Ten Largest Holdings as of 10/31/15
Central Japan Railway Co.2.1%
AXA SA2.0%
ING Groep NV CVA1.9%
Adecco SA1.9%
Marks & Spencer Group plc1.9%
Allianz SE1.9%
Honda Motor Co. Ltd.1.8%
Koninklijke Ahold NV1.8%

Sector Weightings as of 9/30/15
Consumer Discretionary14.9%
Consumer Staples9.7%
Health Care8.9%
Information Technology6.9%
Telecommunication Services4.6%
Country Diversification as of 9/30/15
United Kingdom17.2%
Hong Kong2.8%
South Korea2.2%

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

Formerly the Domini European PacAsia Social Equity Fund.


Portfolio Overview

Socially screened, mid- to large-capitalization international equity fund.


Investment Style:


Weighted Average Market Capitalization:


Portfolio Statistics

Price-to-Earnings Ratio (projected) 13.0 13.0
Price-to-Book Ratio 1.2 1.6
Beta (projected) 1.01 --
R-squared (projected) 0.98 --
Total Number of Holdings 152 --

All data as of 9/30/15.

*The Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE) is an unmanaged index of common stocks. Investors cannot invest directly in an index.


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.


Institutional Shares Performance Commentary

The Fund invests primarily in mid- to large-cap equities across Europe, the Asia-Pacific region, and throughout the rest of the world. It is managed through a two-step process designed to capitalize on the strengths of Domini Social Investments and Wellington Management Company, the Fund’s subadvisor. Domini creates an approved list of companies based on its social, environmental and governance analysis, and Wellington seeks to add value using a diversified stock selection approach, while managing risk through a systematic and disciplined portfolio construction process. Download Commentary as a PDF.

Total Returns as of September 30, 2015

3rd Qtr
Since Inception
DOMOX 1.89% -5.95% -3.43% -7.45% -0.12% -1.56% 9.56% 6.64% 0.01%
MSCI EAFE 2.08% -7.35% -5.04% -10.19% -4.91% -8.27% 6.08% 4.45% 0.80%

Market Overview

The third quarter of 2015 was a challenging one, as fears of a global economic slowdown took hold.  Early in the quarter, Greece dominated financial news as it defaulted on its payment to the International Monetary Fund, increasing worries over its future in the European Union.  This concern abated upon passage of tough austerity measures by Greek parliament, and German lawmakers voted favorably on negotiations of a third bailout package.  However, shortly thereafter, concerns about slowing growth in China began to emerge.  These fears escalated upon China’s surprise devaluation of its currency in August, sparking worries of global disinflation, declining growth expectations, and widespread currency devaluations.  Falling commodity prices and uncertainty surrounding the timing of the first interest-rate hike by the U.S. Federal Reserve Bank in nearly seven years added to these worries.

Amidst this backdrop, equities declined in Europe for the second straight quarter. European economic data was mixed, with the Eurozone economy growing faster than initially estimated, driven by stronger exports and consumer demand. However, the unemployment rate remained higher than expected, and the Eurozone returned to deflation. Stocks in Germany were hit hard by the concerns over China, as they are significant trading partners, and sentiment on Germany’s economy sank. In the UK, the economy grew for the tenth quarter in a row as consumer confidence rose to a 15-year high.

Stock declines were greater in the Asia-Pacific region, where economies are more heavily dependent on exports. In Japan, weaker international demand caused export growth to slow, and machinery orders unexpectedly fell. Economic news was more encouraging in Australia, where employment rose more than expected.

Emerging market equities also dropped significantly in this challenging environment. In Brazil, the largest economy in Latin America, stocks fell amidst political and economic turmoil, including a sovereign debt downgrade.

Fund Performance

The Fund outperformed the MSCI EAFE Index return of -10.2%, with Institutional shares declining 7.5% for the quarter. Relative outperformance was driven by strong security selection, particularly in the industrials, materials, financials, and consumer discretionary sectors. Stock selection was especially strong in Japan and much of Europe, particularly the United Kingdom, Germany, and the Netherlands.

The largest contributor the Fund’s relative outperformance was non-benchmark position Coca-Cola West, one of several bottlers in Japan engaged in the production and sale of Coca-Cola products. The company’s stock rose 7.4% for the quarter, posting surprising second-quarter results, with an operating profit that was down year on year but well above the firm’s projected operating loss. Results were driven by higher-than-projected sales and benefits from cost cuts. The company raised its FY 2015 operating profit guidance to include positive results from the first half of the year and further consolidation of Shikoku Coca-Cola Bottling, which was acquired in May.

Other top contributors this quarter included Italy’s Atlantia, which manages motorways in Italy, Brazil, Chile, India, and Poland, as well as international airports in Rome. Atlantia shares rose 13.0% for the quarter. Dutch international grocery retailer Koninklijke Ahold (Royal Ahold) was another significant contributor to relative performance, returning 3.7% with second-quarter results topping estimates, as the company revamped stores in the U.S. and grew online sales in its domestic market. Ahold is in the midst of a merger with Belgian Delhaize Group. The new company will have more than 4% of the U.S. grocery market, where both companies have been performing well.

Also helping relative performance this quarter was what the Fund did not hold, notably Anglo-Swiss mining and commodity-trading company Glencore and German car manufacturer Volkswagen. Glencore slid 64.9% over the quarter, thrashed by falling commodity prices amid China’s economic slowdown. Meanwhile, Volkswagen plummeted 52.3% after news broke that the company had illegally installed software in its diesel-powered cars to evade emissions standards, and the company was ordered to recall nearly half a million vehicles. Neither Glencore nor Volkswagen, both of which are included in the MSCI EAFE Index, are approved for the Domini Funds. Glencore is ineligible for the Domini Funds due to its involvement in coal mining, and Volkswagen has been historically excluded primarily due to weak governance and a history of ethical scandals.

The largest detractor from relative performance this quarter was the absence from the Fund’s portfolio of benchmark holding Nestlé, the Swiss food-and-beverage company. Nestlé rose 3.8% for the quarter, reporting first-half sales growth that exceeded forecasts. Nestlé is not currently approved for the Domini Funds due to concerns regarding various business operations and related controversies, including concerns relating to the marketing of its breastmilk substitutes.

The Fund’s non-benchmark exposure to emerging markets in Brazil and South Africa also detracted from performance this quarter. Two Brazilian banks, Banco Bradesco and government-owned Banco do Brasil, were among the largest detractors from performance, declining 41.0% and 49.4% respectively, as the country’s economic and political turmoil drove the Brazilian real to record lows against the dollar.  Banco Bradesco announced a $5.2 billion acquisition of HSBC’s Brazilian unit, and Banco do Brasil announced plans to provide as much as $2.6 billion in new loans. Both announcements were met with skepticism from investors, as Brazil continues to sink deeper into recession. The two banks were among thirteen Brazilian financial services firms that had their global scale ratings lowered by Standard & Poor’s after S&P cut the nation’s credit grade to junk.

MTN Group, a South Africa-based mobile telecommunications company was another significant detractor this quarter, declining 31.8% during the period held by the Fund. The Group saw first-half profit decline by 11 percent, as sales declined in Nigeria and South Africa against a challenging macroeconomic backdrop and unfavorable exchange-rate movements. The Fund sold its non-benchmark position in MTN during the quarter. 

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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