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Domini Social Equity Fund ®

Fund Information

Daily Price (NAV)
as of 04/15/2014
Symbol DSEFX
Daily NAV Change $0.23 (0.53%)


Investor Shares Overview

Socially and environmentally concerned investors have social, as well as financial, objectives. The Domini Social Equity Fund seeks to meet these objectives by offering a diversified stock portfolio for long-term capital appreciation that is consistent with social and environmental priorities.

Investment Objective

The Fund seeks to provide its shareholders with long-term total return.

Investment Strategy

The Fund invests primarily in stocks of U.S. companies 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.

Shareholder Activism

The Fund also advances its social and environmental objectives through proxy voting, dialogue with corporations, and the filing of shareholder resolutions

Social and Environmental Standards

Domini evaluates the Fund’s current and 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.


Investor Shares Performance

Month-End Returns as of 3/31/14
YTD1Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
S&P 5001.81%21.86%14.66%21.16%7.42%9.32%

Quarter-End Returns as of 3/31/14
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
S&P 5001.81%21.86%14.66%21.16%7.42%9.32%

Calendar Year Returns

Quarterly Returns
1st Qtr 20142.86%1.81%
4th Qtr 20139.47%10.51%
3rd Qtr 20137.20%5.24%
2nd Qtr 20132.75%2.91%
1st Qtr 201310.19%10.61%

*Average annual total returns.

On 11/30/06, the Fund changed to an active management strategy. Past performance through 11/29/06 represents the former passive investment strategy, and is not indicative of future results.

Annual Expense Ratio: Gross: 1.24% / Net: 1.24%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 1.25% until 11/30/14, 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 3/31/14
Microsoft Corporation4.3%
Eli Lilly and Company3.2%
Apache Corporation2.9%
Oracle Corporation2.8%
The Kroger Co.2.7%
National Oilwell Varco2.7%
Apple Inc.2.3%
The Hartford Financial Services Group Inc.2.3%
Southwest Airlines Co.2.3%

Sector Weightings as of 3/31/14
Information Technology21.3%
Consumer Discretionary14.6%
Health Care11.2%
Consumer Staples8.4%
Telecommunication Services5.6%

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


Portfolio Overview

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


Investment Style:


Weighted Average Market Capitalization:


Portfolio Statistics

  DSEFX S&P 500
Price-to-Earnings Ratio (projected) 13.1 14.2
Price-to-Book Ratio 2.2 2.6
Beta (projected) 1.06 --
R2 (projected) 0.97 --
Market Cap Asset Weighted Avg. (Millions) $61,771 $119,356
Total Number of Holdings 152 500

All data as of 3/31/14 unless otherwise noted.


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. 

R2 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. R2 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.


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 performs social, environmental and governance analysis, and Wellington then utilizes quantitative modeling techniques to manage the portfolio. Download Commentary as a PDF.

Total Returns as of December 31, 2013

4th Qtr
Since Inception
DSEFX 4.41% 3.16% 1.64% 9.47% 32.85% 32.85% 14.22% 18.09% 6.15% 8.56%
S&P 500 4.60% 3.05% 2.53% 10.51% 32.39% 32.39% 16.18% 17.94% 7.40% 9.34%

For the 2013 calendar year, the Fund’s Investor shares returned 32.85%, outperforming the S&P 500, which returned 32.39%.

U.S. equity markets rose for four straight quarters during 2013, reaching another all-time high in December. The S&P 500 finished 2013 with its best return since 1997. Despite political turmoil earlier in the fourth quarter, including a 16-day government shutdown and a possible U.S. government default, stocks continued to climb on the heels of solid corporate earnings and an upward-trending housing market. The year ended on an optimistic tone, with investors responding positively to indications from Fed Chair Janet Yellen during her confirmation hearing that quantitative easing would continue for some time, as well as the removal of the threat of another government shutdown.

Throughout the year, developed-market equities remained in a pro-cyclical bull market, with riskier, more cyclically-sensitive stocks outperforming their less volatile counterparts. The Fund benefitted from this, as the discount on these cheaper stocks contracted amid the market’s upbeat sentiment. The Fund also saw positive contributions from stocks that displayed financial discipline, with the market rewarding conservative capital deployment and the return of excess capital to shareholders.these factors as well.

For the fourth quarter of 2013, the Fund’s Investor shares returned 9.47%, underperforming the S&P 500 Index return of 10.51%.

Relative performance was helped the most by strong security selection in the materials and industrials sectors, as well as an underweight to utilities. However, this was offset by weaker security selection in the energy, consumer staples and telecommunications sectors.

The following portfolio holdings were the top positive contributors to the Fund’s performance relative to the S&P 500:

  • Southwest Airlines, which returned nearly 30% for the quarter after reporting third quarter results that saw revenue growth and improved operating margins.  
  • MasterCard, which returned more than 24% for the quarter following a third quarter fueled by accelerated revenue growth and lower-than-expected Rebates & Incentives. The company also announced a robust share buyback program of $3.5 billion. 
  • Sealed Air, a packaging solutions company that returned nearly 26% for the quarter.

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

  • Energen, a diversified energy holding company that fell more than 7% after posting disappointing results driven by lower production volume, lower commodity price realization, higher general and administrative costs, and exploration expenses.  
  • Kroger, the grocery retailer, which dipped almost 2% over management’s cautious tone over fourth quarter results, stemming from the unclear impact of cuts to the SNAP food stamp program and the shorter holiday shopping period.  
  • Apache, the Fund’s third largest holding, which returned just over 1% for the quarter. The Fund’s return was hampered by its overweight position to the underperforming energy stock

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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