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Domini Social Equity Fund ®

Fund Information

$26.63
Daily Price (NAV)
as of 05/22/2015
Symbol DIEQX
Daily NAV Change $-0.10 (-0.37%)

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.

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:

  • The Institutional share class of the Domini 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.3
  • 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 4/30/15
YTD1Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
DIEQX1.53%12.30%14.66%13.52%7.49%8.72%
S&P 5001.92%12.98%16.73%14.33%8.32%9.47%

Quarter-End Returns as of 3/31/15
YTD1Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
DIEQX1.18%12.45%14.39%13.82%7.24%8.74%
S&P 5000.95%12.73%16.11%14.47%8.01%9.46%

Calendar Year Returns
DIEQXS&P 500
201414.40%13.69%
201333.46%32.39%
201211.84%16.00%
20111.12%2.11%
201014.25%15.06%
200936.22%26.46%
2008-37.88%-37.00%
20071.46%5.50%
200612.58%15.79%
20052.03%4.91%
20049.26%10.88%
200327.13%28.69%
2002-20.69%-22.10%
2001-12.76%-11.88%
2000-15.05%-9.11%
199922.63%21.04%
199832.99%28.58%
199736.02%33.36%
199621.84%23.07%
199535.17%37.50%
1994-0.36%1.26%
19936.54%10.08%
199212.10%7.68%

Quarterly Returns
DIEQXS&P 500
1st Qtr 20151.18%0.95%
4th Qtr 20143.38%4.93%
3rd Qtr 20141.62%1.13%
2nd Qtr 20145.79%5.23%
1st Qtr 20142.94%1.81%
4th Qtr 20139.57%10.51%
3rd Qtr 20137.33%5.24%
2nd Qtr 20132.85%2.91%
1st Qtr 201310.33%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.

Institutional shares were not offered prior to 11/28/08. All performance information for time periods beginning prior to November 28 is the performance of the Investor shares. This performance has not been adjusted to reflect the lower expenses of the Institutional shares.

Annual Expense Ratio: Gross: 0.81% / Net: 0.80%. Per current prospectus. Domini has contractually agreed to cap Institutional share expenses to not exceed 0.80% until 11/30/15, subject to earlier modification by the Fund’s Board of Trustees. See prospectus for details. The Fund's performance would have been lower had these fees not been waived.

 

Holdings

Ten Largest Holdings as of 4/30/15
COMPANY% OF PORTFOLIO
Apple Inc.5.9%
Microsoft Corp.4.5%
Intel Corp.2.9%
Cummins Inc.2.8%
Merck & Co. Inc.2.7%
Pepsico Inc.2.6%
Consolidated Edison Inc.2.5%
The Kroger Co.2.5%
Metlife Inc.2.4%
FMC Technologies Inc.2.4%
TOTAL31.2%

Sector Weightings as of 3/31/15
SECTOR% OF PORTFOLIO
Information Technology22.6%
Financials18.5%
Consumer Discretionary13.7%
Health Care13.2%
Industrials9.0%
Consumer Staples8.3%
Energy4.9%
Telecommunication Services3.8%
Materials3.5%
Utilities2.5%
Total100.0%

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

 

Characteristics

Portfolio Overview

Socially screened, primarily large-cap domestic equity fund.

 

Investment Style:

Blend

Weighted Average Market Capitalization:

Large

Portfolio Statistics

  DSEFX S&P 500
Price-to-Earnings Ratio (projected) 13.4 14.7
Price-to-Book Ratio 2.3 2.9
Beta (projected) 1.03 --
R-squared (projected) 0.97 --
Market Cap Asset Weighted Avg. (Millions) $94,148 $133,331
Total Number of Holdings 146 500

All data as of 3/31/2015 unless otherwise noted.

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 March 31, 2015

  Jan
2015
Feb
2015
March
2015
1st Qtr
2015
YTD One
Year
Three
Year*
Five
Year*
Ten
Year*
Since Inception
(6/3/91)*
DIEQX -2.65% 5.49% -1.47% 1.18% 1.18% 12.45% 14.39% 13.82% 7.24% 8.74%
S&P 500 -3.00% 5.75% -1.58% 0.95% 0.95% 12.73% 16.11% 14.47% 8.01% 9.46%

For the first quarter of 2015, the Fund’s Institutional Shares returned 1.18%, outperforming the S&P 500 Index return of 0.95%.

Relative performance was helped the most by strong security selection in the health care and consumer staples sectors. This was partially offset by weaker security selection in the information technology, energy and telecommunications services sectors.

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

  • Kohl's Corp, the department store retail chain which returned nearly 29% for the quarter. 
  • Kroger, the national supermarket chain and the Fund’s fourth largest holding, which returned more than 19% for the quarter after an impressive fourth quarter in 2014. Kroger’s earnings per share have increased year over year, with higher fuel margins and store sales that surpassed consensus estimates driving performance. Our overweight position in the company benefited performance.
  • Hospira Inc., the U.S.-based global pharmaceutical and medical technology company which returned more than 43% for the quarter. 

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

  • National-Oilwell Inc., an oilfield services company whose shares declined more than 23% for the quarter.
  • Intel Corp, a U.S. manufacturer of semiconductor chips whose shares dropped more than 13% for the quarter after management’s mid-March announcement of a quarter over quarter revenue drop for the first quarter of 2015 due to reduced demand for business desktop PCs, lower inventory levels in the PC supply chain and negative macro and currency trends in Europe. The announcement of Intel’s planned acquisition of Altera also received a mixed response from investors, as the acquisition suggests the company’s current strategy to address eroding processor sales is not working.
  • Centurylink Inc., an integrated communications company which fell more than 11% for the quarter after poor fourth quarter 2014 performance. The company has suffered from lower revenue in strategic business and data hosting as well as increased cash cost pressures.

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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