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Domini Social Equity Fund ®

Fund Information

$9.40
Daily Price (NAV)
as of 07/31/2015
Symbol DSFRX
Daily NAV Change $-0.01 (-0.11%)

Overview

Class R Shares Overview

Class R shares are available for certain qualified retirement plans. Please see the Fund's prospectus for further details, or call 1-800-498-1351.

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.

Performance

Class R Shares Performance


Month-End Returns as of 6/30/15
YTD1Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
DSFRX-0.90%4.02%15.28%15.77%7.22%8.72%
S&P 5001.24%7.43%17.31%17.35%7.89%9.37%

Quarter-End Returns as of 6/30/15
YTD1Yr3 Yr*5 Yr*10 Yr*Since Inception (6/3/91)*
DSFRX-0.90%4.02%15.28%15.77%7.22%8.72%
S&P 5001.24%7.43%17.31%17.35%7.89%9.37%
Calendar Year Returns
DSFRXS&P 500
201414.25%13.69%
201333.30%32.39%
201211.75%16.00%
20110.96%2.11%
201014.36%15.06%
200936.14%26.46%
2008-37.81%-37.00%
20071.87%5.50%
200612.88%15.79%
20052.38%4.91%
20049.62%10.88%
200327.09%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
DSFRXS&P 500
2nd Qtr 2015-2.11%0.28%
1st Qtr 20151.23%0.95%
4th Qtr 20143.33%4.93%
3rd Qtr 20141.58%1.13%
2nd Qtr 20145.79%5.23%
1st Qtr 20142.89%1.81%
4th Qtr 20139.59%10.51%
3rd Qtr 20137.22%5.24%
2nd Qtr 20132.85%2.91%
1st Qtr 201310.30%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. Prior reported periods reflect the performance of the Investor shares prior to November 28, 2003, the date the Class R shares were first offered. This earlier performance has not been adjusted to take into account the lower expenses applicable to Class R shares.

Annual Expense Ratio: Gross: 0.90% / Net: 0.90%. Per current prospectus. Domini has contractually agreed to cap Class R share expenses to not exceed 0.90% 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 6/30/15
COMPANY% OF PORTFOLIO
Apple Inc.6.6%
Microsoft Corp.4.1%
Gilead Sciences Inc.3.1%
Merck & Co. Inc.3.1%
Intel Corp.2.9%
MetLife Inc.2.8%
Cummins Inc.2.7%
The Kroger Co.2.7%
Celgene Corp.2.7%
Pepsico Inc.2.5%
TOTAL33.2%

Sector Weightings as of 6/30/15
SECTOR% OF PORTFOLIO
Information Technology23.7%
Financials18.5%
Health Care13.9%
Consumer Discretionary13.8%
Industrials8.8%
Consumer Staples7.7%
Energy4.6%
Materials3.9%
Telecommunication Services2.6%
Utilities2.5%
Total100.0%

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

Characteristics

Portfolio Overview

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

 

Investment Style:

Blend

Weighted Average Market Capitalization:

Large

Portfolio Statistics

  DSEFX S&P 500
Price-to-Earnings Ratio (projected) 12.9 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) $100,476 $134,576
Total Number of Holdings 135 500

All data as of 6/30/15 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

Class R 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 June 30, 2015

  April
2015
May
2015
June
2015
2nd Qtr
2015
YTD One
Year
Three
Year*
Five
Year*
Ten
Year*
Since Inception
(6/3/91)*
DSFRX 0.32% 0.21% -2.62% -2.11% -0.90% 4.02% 15.28% 15.77% 7.22% 8.72%
S&P 500 0.96% 1.29% -1.94% 0.28% 1.24% 7.43% 17.31% 17.35% 7.89% 9.37%

For the second quarter of 2015, the Fund’s Class R Shares returned -2.11%, underperforming the S&P 500 Index return of 0.28%.

Relative performance was helped most by positive security selection in the energy and information technology sectors. This was more than offset by negative security selection in the consumer discretionary, industrials, financials and telecommunication services sectors.

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

  • Gilead Sciences, a research-focused biopharmaceutical com­pany that returned more than 19% for the quarter after solid first quarter results that saw revenues beating expectations. The Fund’s overweight position positively contributed to performance. 
  • MetLife Inc., an international provider of insurance and employee benefits products, whose shares grew more than 11% for the quarter. 
  • FMC Technologies Inc., an American energy servicing company operating internationally, which returned more than 12% for the quarter. 

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

  • Southwest Airlines shares fell more than 25% for the quarter after seeing a slowdown in demand growth. Performance was hurt by the Fund’s overweight position. 
  • Kohl’s Corp., the specialty department store whose shares fell more than 19% for the quarter after a harsh winter saw an espe­cially sharp decline in sales in the first quarter. Low sales produced doubts as to whether the company can meet full-year expectations, thus driving the stock price down. 
  • Centurylink Inc., an American telecommunications company whose shares declined more than 13% for 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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