UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-5824
DOMINI SOCIAL TRUST
(Exact Name of Registrant as Specified in Charter)
536 Broadway, 7th Floor, New York, New York 10012
(Address of Principal Executive Offices)
Amy Domini Thornton
Domini Social Investments LLC
536 Broadway, 7th Floor
New York, New York 10012
(Name and Address of Agent for Service)
Registrant’s Telephone Number, including Area Code: 212-217-1100
Date of Fiscal Year End: July 31
Date of Reporting Period: January 31, 2008
Item 1. | Reports to Stockholders. |
A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 follows.
| SEMI-ANNUAL REPORT 2007 | JANUARY 31, 2008 |
|
|
| (UNAUDITED) |
|
DOMINI SOCIAL EQUITY TRUST
DOMINI EUROPEAN SOCIAL EQUITY TRUST
DOMINI PACASIA SOCIAL EQUITY TRUST
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
EACH A SERIES OF:
DOMINI SOCIAL TRUST
TABLE OF CONTENTS
| Fund Performance and Holdings | |
2 |
| Domini Social Equity Trust |
8 |
| Domini European Social Equity Trust |
14 |
| Domini PacAsia Social Equity Trust |
22 |
| Domini European PacAsia Social Equity Trust |
31 |
| Expense Example |
33 |
| Financial Statements |
| Domini Social Equity Trust | |
| Domini European Social Equity Trust | |
| Domini PacAsia Social Equity Trust | |
| Domini European PacAsia Social Equity Trust | |
|
| |
47 |
| Proxy Voting Information |
|
| |
47 |
| Quarterly Portfolio Schedule Information |
DOMINI SOCIAL EQUITY TRUST
PERFORMANCE COMMENTARY
For the six months ended January 31, 2008, the Domini Social Equity Trust declined –8.05%, underperforming the S&P 500 Index return of –4.32%.
The Fund’s subadvisor, in selecting stocks for the Fund’s portfolio, utilizes an approach that focuses on indicators of both valuation (how reasonably priced a company’s stock is relative to the value of its businesses) and momentum (the rate at which the company’s profits and/or share price have been increasing). During this period, companies that appeared to have attractive valuations performed more poorly than expected.
In particular, the Fund’s performance relative to the index was hurt by stock selection within the industrial, consumer staples, and information technology sectors, and by positions in the following stocks:
• | The stock of YRC Worldwide declined when analysts turned negative on the freight industry due to increases in fuel and equipment costs. |
• | The Fund’s performance was hurt by its overweight position in the electronics companies Electronic Data Systems and LAM Research, which performed poorly, and by its underweight position in Apple, which had a positive return for the period. |
An overweight position in the financial sector, which was hurt by the collapse of the subprime mortgage market, was also negative for performance. However, stock selection within that sector, including positions in JPMorgan Chase and Goldman Sachs, resulted in a positive contribution to returns. The Fund was also helped by its positions in Energen and Express Scripts, each of which announced profit outlooks that beat the expectations of analysts.
2
The table and bar chart below provide information as of January 31, 2008, about the ten largest holdings of the Domini Social Equity Trust and its portfolio holdings by industry sector:
TEN LARGEST HOLDINGS
SECURITY DESCRIPTION |
| % NET |
JP Morgan Chase & Co |
| 4.2% |
Johnson & Johnson |
| 3.5% |
Verizon Communications |
| 3.4% |
Microsoft |
| 3.3% |
Intl Business Machines Corp |
| 3.2% |
Hewlett-Packard Co | 3.1% | |
Bank of America Corporation |
| 2.7% |
Goldman Sachs Group Inc |
| 2.7% |
AT&T Inc |
| 2.6% |
Travelers Cos Inc/The |
| 2.1% |
PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)
* | Other reflects Repurchase Agreements and Other Assets, less liabilities. |
The holdings mentioned above are described in the Domini Social Equity Trust’s Portfolio of Investments at January 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.
| Performance Commentary | 3 |
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
| Domini Social Equity Fund |
| S&P 500 | ||
|
| 1 Year |
| 1.46 | % |
| 5.50 | % |
As of |
| 5 Year |
| 10.11 | % |
| 12.83 | % |
12-31-07 |
| 10 Year |
| 4.49 | % |
| 5.91 | % |
|
| Since Inception |
| 9.47 | %(1) |
| 10.49 | %(1) |
|
| 1 Year |
| –8.63 | % |
| –2.31 | % |
As of |
| 5 Year |
| 8.92 | % |
| 12.02 | % |
1-31-08 |
| 10 Year |
| 3.43 | % |
| 5.14 | % |
|
| Since Inception |
| 8.87 | %(1) |
| 10.03 | %(1) |
COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI SOCIAL EQUITY FUND INVESTOR SHARES AND S&P 500
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month-end, call 1-800-582-6757 or visit www.domini.com. A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee, which would reduce the performance q uoted. See the Fund’s prospectus for further information.
For the period reported in its current prospectus, the Fund’s gross annual operating expenses totaled 1.24% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.15% of net assets.
The table and the graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return for the Domini Social Equity Fund is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Certain fees payable by the Fund were waived during the period, and the Fund’s average annual total returns would have been lower had these not been waived.
The Standard & Poor’s 500 Index (S&P 500) is an unmanaged index of common stocks. Investors cannot invest directly in the S&P 500.
______________(1) | Since June 3, 1991. |
This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 03/08
4 | Performance Commentary |
DOMINI SOCIAL EQUITY TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
SECURITY |
| SHARES |
| VALUE |
| |
Common Stocks – 99.3% |
|
|
|
|
|
|
Consumer Discretionary – 11.9% |
|
|
|
|
|
|
Amazon.com Inc (a) |
| 119,650 |
| $ | 9,296,805 |
|
American Eagle Outfitters |
| 700 |
|
| 16,121 |
|
Autoliv Inc. |
| 133,700 |
|
| 6,678,315 |
|
AutoZone Inc (a) |
| 54,047 |
|
| 6,533,201 |
|
Best Buy Co Inc. |
| 120,758 |
|
| 5,894,198 |
|
Big Lots Inc (a) |
| 338,000 |
|
| 5,867,680 |
|
Black & Decker Corporation |
| 600 |
|
| 43,524 |
|
CBS Corp, Class B |
| 584,300 |
|
| 14,718,517 |
|
Comcast Corp, Class A (a) |
| 5,550 |
|
| 100,788 |
|
Darden Restaurants Inc. |
| 255,700 |
|
| 7,241,424 |
|
DR Horton Inc. |
| 1,975 |
|
| 34,069 |
|
Gap Inc/The |
| 1,887 |
|
| 36,079 |
|
Home Depot Inc. |
| 3,244 |
|
| 99,493 |
|
J.C. Penney Co Inc. |
| 758 |
|
| 35,937 |
|
Johnson Controls Inc. |
| 1,954 |
|
| 69,113 |
|
Limited Brands |
| 1,668 |
|
| 31,842 |
|
Liz Claiborne Inc. |
| 600 |
|
| 13,134 |
|
Lowe’s Cos Inc. |
| 2,986 |
|
| 78,950 |
|
McDonald’s Corporation |
| 412,574 |
|
| 22,093,338 |
|
McGraw-Hill Companies Inc. |
| 1,212 |
|
| 51,825 |
|
Meredith Corp. |
| 823 |
|
| 38,673 |
|
Nike Inc, Class B |
| 362,988 |
|
| 22,418,139 |
|
Nordstrom Inc. |
| 895 |
|
| 34,816 |
|
Pulte Homes Inc. |
| 2,094 |
|
| 34,216 |
|
Scholastic Corp (a) |
| 722 |
|
| 24,743 |
|
Staples Inc. |
| 2,258 |
|
| 54,057 |
|
Starbucks Corporation (a) |
| 2,578 |
|
| 48,750 |
|
Target Corp. |
| 1,636 |
|
| 90,929 |
|
Time Warner Inc. |
| 7,876 |
|
| 123,968 |
|
VF Corp. |
| 800 |
|
| 61,896 |
|
Viacom Inc – Class B (a) |
| 2,100 |
|
| 81,396 |
|
Walt Disney Co./The |
| 285,137 |
|
| 8,534,150 |
|
Washington Post Co/The, Class B |
| 95 |
|
| 70,680 |
|
Whirlpool Corporation |
| 222,363 |
|
| 18,925,315 |
|
|
|
|
|
| 129,476,081 |
|
Consumer Staples – 10.6% |
|
|
|
|
|
|
Avon Products Inc. |
| 2,406 |
|
| 84,258 |
|
Church & Dwight Co Inc. |
| 124,180 |
|
| 6,608,860 |
|
Coca Cola Co/The |
| 299,384 |
|
| 17,714,551 |
|
Consumer Staples (Continued) |
|
|
|
|
|
|
Coca-Cola Enterprises Inc. |
| 752,400 |
|
| $17,357,868 |
|
Colgate-Palmolive Co. |
| 2,296 |
|
| 176,792 |
|
Costco Wholesale Corp. |
| 53,400 |
|
| 3,627,996 |
|
Hershey Co/The |
| 1,936 |
|
| 70,083 |
|
JM Smucker Co/The – New Common |
| 108,530 |
|
| 5,071,607 |
|
Kimberly-Clark Corp. |
| 125,056 |
|
| 8,209,926 |
|
Kraft Foods Inc, Class A |
| 5,000 |
|
| 146,300 |
|
Kroger Co. |
| 697,377 |
|
| 17,748,245 |
|
Pepsi Bottling Group Inc. |
| 142,000 |
|
| 4,948,700 |
|
PepsiAmericas Inc. |
| 608,600 |
|
| 14,995,904 |
|
PepsiCo Inc. |
| 3,653 |
|
| 249,098 |
|
Procter & Gamble Co. |
| 135,461 |
|
| 8,933,653 |
|
SUPERVALU Inc. |
| 326,300 |
|
| 9,808,578 |
|
Walgreen Co. |
| 3,064 |
|
| 107,577 |
|
|
|
|
|
| 115,859,996 |
|
Energy – 8.2% |
|
|
|
|
|
|
Anadarko Petroleum Corporation |
| 5,418 |
|
| 317,441 |
|
Apache Corporation |
| 162,862 |
|
| 15,543,549 |
|
Chesapeake Energy Corporation |
| 109,500 |
|
| 4,076,685 |
|
Devon Energy Corporation |
| 42,570 |
|
| 3,617,599 |
|
ENSCO International, Inc. |
| 131,300 |
|
| 6,712,056 |
|
EOG Resources Inc. |
| 3,908 |
|
| 341,950 |
|
National Oilwell Varco Inc (a) |
| 67,600 |
|
| 4,071,548 |
|
Noble Corp. |
| 94,200 |
|
| 4,123,134 |
|
Noble Energy Inc. |
| 90,200 |
|
| 6,546,716 |
|
Technip SA |
| 135,390 |
|
| 8,664,960 |
|
Tidewater Inc. |
| 157,400 |
|
| 8,335,904 |
|
Unit Corp (a) |
| 370,750 |
|
| 18,581,989 |
|
XTO Energy Inc. |
| 167,770 |
|
| 8,713,974 |
|
|
|
|
|
| 89,647,505 |
|
Financials – 20.9% |
|
|
|
|
|
|
American Express Co. |
| 3,576 |
|
| 176,368 |
|
American International Group |
| 222,300 |
|
| 12,262,068 |
|
Bank of America Corporation |
| 677,000 |
|
| 30,024,950 |
|
Bank of Ireland ADR |
| 112,890 |
|
| 6,626,643 |
|
Barclays Plc – Spons ADR |
| 274,200 |
|
| 10,345,566 |
|
5
DOMINI SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
SECURITY |
| SHARES |
| VALUE |
| |
Financials (Continued) |
|
|
|
|
|
|
Charles Schwab Corp/The |
| 515,500 |
| $ | 11,495,650 |
|
Citigroup Inc. |
| 10,300 |
|
| 290,666 |
|
Federal National Mortgage Association |
| 2,476 |
|
| 83,837 |
|
Freddie Mac |
| 2,322 |
|
| 70,566 |
|
Goldman Sachs Group Inc. |
| 146,400 |
|
| 29,392,728 |
|
HDFC Bank Ltd – ADR |
| 41,240 |
|
| 4,921,582 |
|
Janus Capital Group Inc. |
| 240,910 |
|
| 6,506,979 |
|
JP Morgan Chase & Co. |
| 974,730 |
|
| 46,348,412 |
|
Lehman Brothers Holdings Inc. |
| 1,400 |
|
| 89,838 |
|
Nationwide Financial Serv, Class A |
| 204,000 |
|
| 9,010,680 |
|
Royal Bank of Scotland Group plc – Spon ADR (a) |
| 1,082,500 |
|
| 8,432,675 |
|
TD Ameritrade Holding Corp (a) |
| 271,200 |
|
| 5,087,712 |
|
Travelers Cos Inc/The |
| 482,852 |
|
| 23,225,181 |
|
US Bancorp |
| 6,463 |
|
| 219,419 |
|
Wachovia Corp. |
| 5,583 |
|
| 217,346 |
|
Washington Mutual Inc. |
| 4,631 |
|
| 92,250 |
|
Wells Fargo & Co. |
| 566,506 |
|
| 19,266,869 |
|
Westpac Banking Corp – SP ADR |
| 42,160 |
|
| 4,901,943 |
|
|
|
|
|
| 229,089,928 |
|
Health Care – 11.2% |
|
|
|
|
|
|
Amgen Inc (a) |
| 150,466 |
|
| 7,010,211 |
|
Baxter International Inc. |
| 205,122 |
|
| 12,459,110 |
|
Becton Dickinson & Company |
| 2,302 |
|
| 199,192 |
|
Express Scripts Inc. – Common (a) |
| 203,800 |
|
| 13,754,462 |
|
Forest Laboratories Inc (a) |
| 199,700 |
|
| 7,942,069 |
|
Genentech Inc (a) |
| 1,600 |
|
| 112,304 |
|
Gilead Sciences Inc (a) |
| 155,210 |
|
| 7,091,545 |
|
Invitrogen Corp (a) |
| 39,500 |
|
| 3,383,965 |
|
Johnson & Johnson |
| 609,324 |
|
| 38,545,836 |
|
Kinetic Concepts Inc (a) |
| 144,500 |
|
| 7,193,210 |
|
Medtronic Inc. |
| 3,655 |
|
| 170,213 |
|
Merck & Co. Inc. |
| 320,202 |
|
| 14,818,949 |
|
Watson Pharmaceuticals Inc (a) |
| 384,300 |
|
| 10,034,073 |
|
|
|
|
|
| 122,715,139 |
|
Industrials – 6.0% |
|
|
|
|
|
|
3M Co. |
| 2,864 |
| $ | 228,118 |
|
Air France-KLM – ADR |
| 121,100 |
|
| 3,375,057 |
|
AMR Corp (a) |
| 1,100 |
|
| 15,334 |
|
Cooper Industries Ltd, Class A |
| 2,286 |
|
| 101,818 |
|
Cummins Inc. |
| 286,464 |
|
| 13,830,481 |
|
Deere & Co. |
| 140,200 |
|
| 12,303,952 |
|
Deluxe Corporation |
| 265,200 |
|
| 6,449,664 |
|
Emerson Electric Company |
| 3,308 |
|
| 168,179 |
|
Illinois Tool Works |
| 3,600 |
|
| 181,440 |
|
Jetblue Airways (a) |
| 5,793 |
|
| 40,030 |
|
PACCAR Inc. |
| 106,350 |
|
| 4,989,942 |
|
RR Donnelley & Sons Co. |
| 128,918 |
|
| 4,497,949 |
|
Southwest Airlines |
| 6,578 |
|
| 77,160 |
|
Teleflex Inc. |
| 107,600 |
|
| 6,361,312 |
|
TNT NV – ADR |
| 172,600 |
|
| 6,394,830 |
|
Tomkins plc – Sponsored ADR |
| 292,800 |
|
| 4,023,072 |
|
Toppan Printing Co Ltd – Unspons ADR |
| 60,650 |
|
| 2,971,850 |
|
United Parcel Service, Class B |
| 3,373 |
|
| 246,769 |
|
|
|
|
|
| 66,256,957 |
|
Information Technology – 20.2% |
|
|
|
|
|
|
Apple Inc (a) |
| 124,282 |
|
| 16,822,812 |
|
Arrow Electronics, Inc (a) |
| 146,900 |
|
| 5,026,918 |
|
Cisco Systems Inc (a) |
| 580,636 |
|
| 14,225,582 |
|
Dell Inc (a) |
| 5,484 |
|
| 109,899 |
|
eBay Inc (a) |
| 2,376 |
|
| 63,891 |
|
EMC Corp/Massachusetts (a) |
| 4,400 |
|
| 69,828 |
|
Google Inc, Class A (a) |
| 4,580 |
|
| 2,584,494 |
|
Hewlett-Packard Co. |
| 764,347 |
|
| 33,440,181 |
|
Intel Corp. |
| 869,909 |
|
| 18,442,071 |
|
Intl Business Machines Corp. |
| 329,000 |
|
| 35,314,860 |
|
Jabil Circuit Inc. |
| 3,100 |
|
| 41,075 |
|
Juniper Networks Inc (a) |
| 128,700 |
|
| 3,494,205 |
|
LAM Research Corp (a) |
| 338,900 |
|
| 13,010,371 |
|
Microsoft Corp. |
| 1,107,352 |
|
| 36,099,675 |
|
Motorola Inc. |
| 7,500 |
|
| 86,475 |
|
Nvidia Corp (a) |
| 156,990 |
|
| 3,860,384 |
|
Oracle Corp (a) |
| 738,200 |
|
| 15,170,010 |
|
QUALCOMM Inc. |
| 4,234 |
|
| 179,606 |
|
6
DOMINI SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
SECURITY |
| SHARES |
| VALUE |
| |
Information Technology (Continued) |
|
|
|
|
|
|
STMicroelectronics NV – NY Shs |
| 458,100 |
| $ | 5,675,859 |
|
Symantec Corp (a) |
| 425,846 |
|
| 7,635,419 |
|
Texas Instruments Inc. |
| 3,928 |
|
| 121,493 |
|
Western Digital Corp (a) |
| 345,080 |
|
| 9,127,366 |
|
Xerox Corporation |
| 5,598 |
|
| 86,209 |
|
|
|
|
|
| 220,688,683 |
|
Materials –1.3% |
|
|
|
|
|
|
International Paper Co. |
| 4,600 |
|
| 148,350 |
|
Lubrizol Corp. |
| 88,200 |
|
| 4,640,202 |
|
MeadWestvaco Corp. |
| 3,466 |
|
| 97,048 |
|
Nucor Corp. |
| 81,916 |
|
| 4,734,745 |
|
Rohm and Haas Co. |
| 2,210 |
|
| 117,904 |
|
United States Steel Corp. |
| 46,200 |
|
| 4,717,482 |
|
|
|
|
|
| 14,455,731 |
|
Telecommunication Services – 6.5% |
|
|
|
|
|
|
AT&T Inc. |
| 748,604 |
|
| 28,813,768 |
|
France Telecom SA – Spons ADR |
| 144,530 |
|
| 5,110,581 |
|
Sprint Nextel Corp. |
| 7,259 |
|
| 76,437 |
|
Verizon Communications Inc. |
| 946,438 |
|
| 36,759,652 |
|
|
|
|
|
| 70,760,438 |
|
|
|
|
|
|
|
|
Utilities – 2.5% |
|
|
|
|
|
|
Energen Corp. |
| 352,677 |
| $ | 22,183,383 |
|
Pepco Holdings Inc. |
| 182,600 |
|
| 4,648,996 |
|
|
|
|
|
| 26,832,379 |
|
Total Common Stocks |
|
|
|
|
|
|
(Cost $1,033,537,347) |
|
|
|
|
|
|
|
|
|
|
| 1,085,782,837 |
|
Repurchase Agreements – 0.6% |
|
|
|
|
|
|
State Street Bank & Trust, dated 1/31/2008, 1.60% due 2/1/2008, maturity amount $6,221,058 (collateralized by U.S. Government Agency Obligations, Freddie Mac, 3.25%, 3/14/2008, market value $6,348,375) |
| 6,220,781 |
|
| 6,220,781 |
|
Total Repurchase Agreements |
|
|
|
| 6,220,781 |
|
Total Investments — 99.9% |
|
|
|
|
|
|
(Cost $1,039,758,128) (b) |
|
|
|
| 1,092,003,618 |
|
Other Assets, less liabilities — 0.1% |
|
|
|
| 967,093 |
|
Net Assets — 100.0% |
|
|
| $ | 1,092,970,711 |
|
(a) | Non-income producing security. |
(b) | The aggregate cost for federal income tax purposes is $1,080,406,528. The aggregate gross unrealized appreciation is $83,814,064 and the aggregate gross unrealized depreciation is $72,216,974, resulting in net unrealized appreciation of $11,597,090. |
ADR – American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS
7
DOMINI EUROPEAN SOCIAL EQUITY TRUST
PERFORMANCE COMMENTARY
For the six months ended January 31, 2008, the Fund declined –13.21%, underperforming the MSCI Europe Index, which declined by –7.31%.
During this period, stock selection — particularly in the financial, materials, and consumer discretionary sectors — was the primary driver of
underperformance:
• | Royal Bank of Scotland was affected by the impact of problems in the U.S. subprime mortgage market on mortgage-related securities that it held. |
• | Trinity Mirror, the U.K.’s largest newspaper publisher, saw its shares drop sharply after it sold its Midlands newspapers for less than expected. |
• | The stock of Rautaruukki, a Finnish manufacturer of galvanized steel products, declined after the company issued a lower-than-expected earnings forecast. |
The Fund’s subadvisor, in selecting stocks for the Fund’s portfolio, uses an approach that considers measures of a company’s valuation (the price of its stock relative to the value of its businesses) and its momentum (the rate at which the company’s profits and/or share price have been increasing). During this period, valuation measures were less effective than momentum measures.
8
The table and bar chart below provide information as of January 31, 2008, about the ten largest holdings of the Domini European Social Equity Trust and its portfolio holdings by industry sector and by country:
TEN LARGEST HOLDINGS
SECURITY DESCRIPTION |
| % NET |
StatoilHydro ASA |
| 3.9% |
Vodafone Group PLC |
| 3.7% |
Sanofi-Aventis |
| 3.7% |
Vivendi SA |
| 3.4% |
Nokia OYJ |
| 3.2% |
France Telecom SA |
| 3.0% |
Swiss Re-Reg |
| 2.9% |
Royal Bank of Scotland Group |
| 2.8% |
Telefonica SA |
| 2.5% |
Unilever PLC |
| 2.5% |
PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)
* | Other reflects Repurchase Agreements and Other Assets, less liabilities. |
PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)
* | Other reflects Portugal, Turkey, Denmark, Poland, Russia, Repurchase Agreements, and Other Assets, less liabilities. |
The holdings mentioned above are described in the Domini European Social Equity Trust’s Portfolio of Investments at January 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.
| Performance Commentary | 9 |
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
| Domini European Social |
| MSCI Europe |
| ||
As of 12-31-07 |
| 1 Year |
| 1.35 | % |
| 14.38 | % |
|
| Since Inception(1) |
| 20.85 | % |
| 22.40 | % |
| |
As of 1-31-08 |
| 1 Year |
| –9.80 | % |
| 1.86 | % |
|
| Since Inception(1) |
| 14.53 | % |
| 15.90 | % |
|
COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI EUROPEAN SOCIAL EQUITY FUND INVESTOR SHARES AND MSCI EUROPE
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month-end, call 1-800-582-6757 or visit www.domini.com. A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee, which would reduce the performance quoted. See the Fund’s prospectus for further information.
For the period reported in its current prospectus, the Fund’s gross annual operating expenses totaled 1.79% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.60% of net assets.
Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity.
The table and the graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return for the Domini European Social Equity Fund is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Certain fees payable by the Fund were waived during the period, and the Fund’s average annual total returns would have been lower had these not been waived.
The Morgan Stanley Capital International Europe (MSCI Europe) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI Europe.
______________(1) | Since October 3, 2005. |
This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 03/08 |
10 | Performance Commentary |
DOMINI EUROPEAN SOCIAL EQUITY TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Common Stocks – 97.8% |
|
|
|
|
|
|
|
Austria – 2.2% |
|
|
|
|
|
|
|
Immofinanz AG |
| Real Estate |
| 107,410 |
| $ | 1,018,008 |
OMV AG |
| Energy |
| 2,399 |
|
| 172,329 |
Voestalpine AG |
| Materials |
| 19,568 |
|
| 1,201,716 |
|
|
|
|
|
|
| 2,392,053 |
Belgium – 1.1% |
|
|
|
|
|
|
|
Delhaize Group |
| Food & Staples Retailing |
| 9,050 |
|
| 690,105 |
KBC Groep NV |
| Banks |
| 3,926 |
|
| 499,168 |
|
|
|
|
|
|
| 1,189,273 |
Denmark – 0.4% |
|
|
|
|
|
|
|
Dampskibsselskabet (d/s) Torm |
| Energy |
| 10,152 |
|
| 325,516 |
H. Lundbeck A/S |
| Pharma, Biotech & Life Sciences |
| 5,300 |
|
| 128,463 |
|
|
|
|
|
|
| 453,979 |
Finland – 4.4% |
|
|
|
|
|
|
|
Nokia OYJ |
| Technology Hardware & Equipment |
| 96,971 |
|
| 3,556,053 |
Orion OYJ/New |
| Pharma, Biotech & Life Sciences |
| 58,484 |
|
| 1,314,449 |
|
|
|
|
|
|
| 4,870,502 |
France – 14.8% |
|
|
|
|
|
|
|
Air France-KLM |
| Transportation |
| 33,873 |
|
| 941,108 |
BNP Paribas |
| Banks |
| 23,573 |
|
| 2,328,712 |
Credit Agricole SA |
| Banks |
| 18,360 |
|
| 562,680 |
France Telecom SA |
| Telecommunication Services |
| 94,621 |
|
| 3,323,389 |
Lafarge SA |
| Materials |
| 1,395 |
|
| 219,562 |
Sanofi-Aventis |
| Pharma, Biotech & Life Sciences |
| 49,881 |
|
| 4,051,006 |
Schneider Electric SA |
| Capital Goods |
| 4,100 |
|
| 472,311 |
Ste Des Ciments Francais – a |
| Materials |
| 3,576 |
|
| 540,566 |
Vallourec |
| Capital Goods |
| 1,525 |
|
| 305,254 |
Vivendi SA |
| Media |
| 94,767 |
|
| 3,803,022 |
|
|
|
|
|
|
| 16,547,610 |
Germany – 10.8% |
|
|
|
|
|
|
|
Allianz SE – Reg |
| Insurance |
| 13,278 |
|
| 2,356,863 |
Altana AG |
| Materials |
| 67,383 |
|
| 1,508,210 |
Deutsche Boerse AG |
| Diversified Financials |
| 1,774 |
|
| 309,136 |
Deutsche Lufthansa AG – Reg |
| Transportation |
| 63,951 |
|
| 1,526,926 |
Deutsche Telekom AG – Reg |
| Telecommunication Services |
| 34,069 |
|
| 694,997 |
Epcos AG |
| Technology Hardware & Equipment |
| 55,076 |
|
| 749,366 |
Fresenius SE |
| Health Care Equipment & Services |
| 28,437 |
|
| 2,260,529 |
Muenchener Rueckver AG – Reg |
| Insurance |
| 11,527 |
|
| 2,062,496 |
Salzgitter AG |
| Materials |
| 3,768 |
|
| 588,514 |
|
|
|
|
|
|
| 12,057,037 |
Greece – 1.8% |
|
|
|
|
|
|
|
National Bank of Greece |
| Banks |
| 18,922 |
|
| 1,151,765 |
Public Power Corp |
| Utilities |
| 18,837 |
|
| 879,720 |
|
|
|
|
|
|
| 2,031,485 |
Ireland – 1.9% |
|
|
|
|
|
|
|
Anglo Irish Bank PLC |
| Banks |
| 27,866 |
|
| 392,428 |
Elan Corporation PLC (a) |
| Pharma, Biotech & Life Sciences |
| 15,167 |
|
| 384,267 |
Kerry Group PLC – A |
| Food & Beverage |
| 47,593 |
|
| 1,275,645 |
|
|
|
|
|
|
| 2,052,340 |
11
DOMINI EUROPEAN SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Italy – 2.8% |
|
|
|
|
|
|
|
Banca Popolare dell’ Emilia |
|
|
|
|
|
|
|
Romagna Scrl |
| Banks |
| 20,412 |
| $ | 453,368 |
Fiat SPA |
| Automobiles & Components |
| 111,050 |
|
| 2,597,176 |
|
|
|
|
|
|
| 3,050,544 |
Netherlands – 8.5% |
|
|
|
|
|
|
|
Fugro NV – CVA |
| Energy |
| 26,164 |
|
| 1,785,971 |
ING Groep NV – CVA |
| Diversified Financials |
| 50,956 |
|
| 1,653,434 |
Koninklijke Ahold NV (a) |
| Food & Staples Retailing |
| 36,992 |
|
| 482,782 |
Koninklijke DSM NV |
| Materials |
| 45,131 |
|
| 1,897,353 |
OCE NV |
| Technology Hardware & Equipment |
| 7,527 |
|
| 150,749 |
SNS Reaal |
| Diversified Financials |
| 49,704 |
|
| 937,739 |
TNT NV |
| Transportation |
| 44,686 |
|
| 1,649,991 |
Unilever NV – CVA |
| Food & Beverage |
| 25,987 |
|
| 843,959 |
|
|
|
|
|
|
| 9,401,978 |
Norway – 5.0% |
|
|
|
|
|
|
|
Norsk Hydro ASA |
| Materials |
| 70,578 |
|
| 840,871 |
Petroleum Geo-Services |
| Energy |
| 16,167 |
|
| 347,625 |
StatoilHydro ASA |
| Energy |
| 166,024 |
|
| 4,346,820 |
|
|
|
|
|
|
| 5,535,316 |
Poland – 0.3% |
|
|
|
|
|
|
|
Polish Oil & Gas |
| Energy |
| 166,817 |
|
| 303,750 |
|
|
|
|
|
|
| 303,750 |
Portugal – 0.7% |
|
|
|
|
|
|
|
Banco Espirito Santo SA – Reg |
| Banks |
| 41,320 |
|
| 724,507 |
|
|
|
|
|
|
| 724,507 |
Russia – 0.3% |
|
|
|
|
|
|
|
Vimpel-Communications – SP |
|
|
|
|
|
|
|
ADR |
| Telecommunication Services |
| 8,500 |
|
| 292,740 |
|
|
|
|
|
|
| 292,740 |
Spain – 6.3% |
|
|
|
|
|
|
|
Banco Santander SA |
| Banks |
| 119,389 |
|
| 2,091,158 |
Corporacion Financiera Alba |
| Diversified Financials |
| 2,343 |
|
| 136,987 |
Gas Natural SDG SA |
| Utilities |
| 35,787 |
|
| 1,967,382 |
Telefonica SA |
| Telecommunication Services |
| 95,438 |
|
| 2,778,547 |
|
|
|
|
|
|
| 6,974,074 |
Sweden – 2.8% |
|
|
|
|
|
|
|
Nordea Bank AB |
| Banks |
| 61,223 |
|
| 830,904 |
Scania AB – B Shs |
| Capital Goods |
| 76,600 |
|
| 1,580,128 |
SSAB Svenskt Stal AB – Ser A |
| Materials |
| 25,450 |
|
| 670,698 |
|
|
|
|
|
|
| 3,081,730 |
Switzerland – 6.6% |
|
|
|
|
|
|
|
Holcim Ltd – Reg |
| Materials |
| 11,206 |
|
| 1,090,620 |
Lonza Group AG – Reg |
| Pharma, Biotech & Life Sciences |
| 6,595 |
|
| 843,434 |
Novartis AG – Reg Shs |
| Pharma, Biotech & Life Sciences |
| 17,797 |
|
| 898,496 |
Rieter Holding AG |
| Automobiles & Components |
| 993 |
|
| 358,590 |
Roche Holding AG |
| Pharma, Biotech & Life Sciences |
| 1,461 |
|
| 264,346 |
Sonova Holding AG |
| Health Care Equipment & Services |
| 1,073 |
|
| 95,584 |
Swiss Reinsurance – Reg |
| Insurance |
| 43,673 |
|
| 3,269,886 |
The Swatch Group AG – Reg |
| Consumer Durables & Apparel |
| 9,901 |
|
| 517,484 |
|
|
|
|
|
|
| 7,338,440 |
12
DOMINI EUROPEAN SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Turkey – 0.4% |
|
|
|
|
|
|
|
Trakya Cam Sanayii AS |
| Capital Goods |
| 148,026 |
| $ | 287,914 |
Turk Sise Ve Cam Fabrikalari |
| Consumer Durables & Apparel |
| 145,580 |
|
| 209,592 |
|
|
|
|
|
|
| 497,506 |
United Kingdom – 26.7% |
|
|
|
|
|
|
|
3i Group PLC |
| Diversified Financials |
| 101,733 |
|
| 1,904,873 |
Aviva PLC |
| Insurance |
| 63,993 |
|
| 802,600 |
Barclays PLC |
| Banks |
| 177,780 |
|
| 1,677,718 |
BG Group PLC |
| Energy |
| 66,028 |
|
| 1,456,320 |
Carphone Warehouse Group PLC |
| Retailing |
| 18,733 |
|
| 123,315 |
Cookson Group New PLC |
| Capital Goods |
| 51,090 |
|
| 567,126 |
CSR PLC (a) |
| Semiconductors & |
|
|
|
|
|
|
| Semiconductor Equipment |
| 20,624 |
|
| 218,814 |
Drax Group PLC |
| Utilities |
| 97,495 |
|
| 982,755 |
Emap PLC |
| Media |
| 53,548 |
|
| 986,567 |
GlaxoSmithKline PLC |
| Pharma, Biotech & Life Sciences |
| 68,834 |
|
| 1,630,949 |
HBOS PLC |
| Banks |
| 93,511 |
|
| 1,302,629 |
Home Retail Group PLC |
| Retailing |
| 198,701 |
|
| 1,125,895 |
HSBC Holdings PLC |
| Banks |
| 65,643 |
|
| 984,604 |
Man Group PLC |
| Diversified Financials |
| 14,754 |
|
| 162,397 |
Old Mutual PLC |
| Insurance |
| 454,546 |
|
| 1,133,676 |
Royal Bank of Scotland Group PLC |
| Banks |
| 403,531 |
|
| 3,110,160 |
Stagecoach Group Ordinary PLC |
| Transportation |
| 470,752 |
|
| 2,269,688 |
Standard Life PLC |
| Insurance |
| 61,536 |
|
| 265,531 |
Unilever PLC |
| Food & Beverage |
| 83,812 |
|
| 2,762,005 |
Vodafone Group PLC |
| Telecommunication Services |
| 1,183,877 |
|
| 4,140,369 |
WM Morrison Supermarkets PLC |
| Food & Staples Retailing |
| 345,419 |
|
| 2,077,731 |
|
|
|
|
|
|
| 29,685,722 |
Total Common Stocks (Cost $118,634,552) |
|
|
|
|
|
| 108,480,586 |
Repurchase Agreements – 0.1% |
|
|
|
|
|
|
|
State Street Bank & Trust, dated 1/31/2008, 1.60% due 2/1/2008, maturity amount $79,687 (collateralized by U.S. Government Agency Obligations, Freddie Mac, 3.25%, 3/14/2008, market value $86,063) |
| Repurchase Agreements |
| 79,683 |
|
| 79,683 |
Total Repurchase Agreements (Cost $79,683) |
|
|
|
|
|
| 79,683 |
Total Investments — 97.9% (Cost $118,714,235) (b) |
|
|
|
|
|
| 108,560,269 |
Other Assets, less liabilities — 2.1% |
|
|
|
|
|
| 2,346,496 |
Net Assets — 100.0% |
|
|
|
|
|
| $110,906,765 |
(a) | Non-income producing security. |
(b) | The aggregate cost for federal income tax purposes is $118,707,448. The aggregate gross unrealized appreciation is $5,566,078 and the aggregate gross unrealized depreciation is $15,713,257, resulting in net unrealized depreciation of $10,147,179. |
ADR – American Depository Receipt
As of the date of this report, certain foreign securities were fair valued by an independent pricing service under the direction of the Board of Trustees or its delegates in accordance with the Trust’s Valuation and Pricing Policies and Procedures.
SEE NOTES TO FINANCIAL STATEMENTS
13
DOMINI PACASIA SOCIAL EQUITY TRUST
PERFORMANCE COMMENTARY
For the six months ended January 31, 2008, the Fund declined –8.16%, underperforming the MSCI All Country Asia Pacific Index, which declined by –7.11%.
The Fund’s performance relative to the index was hurt primarily by sector allocation in the consumer staples and information technology sectors, and by stock selection in the energy and materials sectors. In particular, negative contributions to performance came from positions in companies including the following:
• | Tokyo Steel Manufacturing, which was expected to be affected by higher scrap steel costs and weaker construction demand. |
• | The bank Chuo Mitsui Trust, which experienced significant costs due to nonperforming loans in Japan. |
• | Korea Zinc, whose stock declined dramatically during the period. |
The Fund’s relative performance was helped by stock selection in the consumer discretionary and healthcare sectors, and by positions in the Singaporean motor vehicle company Jardine Cycle and in two Hong Kong real estate companies: Swire Pacific, whose real estate holdings were viewed favorably by analysts, and Wharf Holdings, whose expansion into China was seen as a positive.
14
The table and bar chart below provide information as of January 31, 2008, about the ten largest holdings of the Domini PacAsia Social Equity Trust and its portfolio holdings by industry sector and by country:
TEN LARGEST HOLDINGS
SECURITY DESCRIPTION |
| % NET |
|
Honda Motor Co Ltd |
| 3.0% |
|
Nippon Telegraph & Telephone |
| 2.4% |
|
Sekisui House Limited |
| 2.2% |
|
Orix Corporation |
| 2.1% |
|
Nintendo Company Ltd |
| 2.1% |
|
National Australia Bank Ltd |
| 2.0% |
|
Fuji Film Holdings Corp |
| 1.8% |
|
Toppan Printing Company Ltd |
| 1.8% |
|
Bluescope Steel Ltd |
| 1.7% |
|
Swire Pacific Ltd ‘A’ |
| 1.7% |
|
PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS) |
______________
* | Other reflects Repurchase Agreements and Other Assets, less liabilities. |
PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)
______________
* | Other reflects Thailand, United States, Philippines, Hungary, Repurchase Agreements, and Other Assets, less liabilities. |
The holdings mentioned above are described in the Domini PacAsia Social Equity Trust’s Portfolio of Investments at January 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.
| Performance Commentary | 15 |
AVERAGE ANNUAL TOTAL RETURNS
| Domini PacAsia Social |
| MSCI AC Asia | |||
As of 12-31-07 | 1 Year | 6.15 | % |
| 14.64 | % |
Since Inception(1) | 5.97 | % |
| 15.84 | % | |
As of 1-31-08 | 1 Year | –2.74 | % |
| 4.18 | % |
Since Inception(1) | –2.24 | % |
| 5.11 | % |
COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI PACASIA SOCIAL EQUITY FUND INVESTOR SHARES AND MSCI AC ASIA PACIFIC
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month-end, call 1-800-582-6757 or visit www.domini.com. A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee, which would reduce the performance quoted. See the Fund’s prospectus for further information.
For the period reported in its current prospectus, the Fund’s gross annual operating expenses totaled 3.23% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.60% of net assets.
Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity.
The table and the graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return for the Domini PacAsia Social Equity Fund is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Certain fees payable by the Fund were waived during the period, and the Fund’s average annual total returns would have been lower had these not been waived.
The Morgan Stanley Capital International All Country Asia Pacific (MSCI AC Asia Pacific) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI AC Asia Pacific.
______________(1) | Since December 27, 2006. |
This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 03/08
16 | Performance Commentary |
DOMINI PACASIA SOCIAL EQUITY TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Common Stocks – 99.1% |
|
|
|
|
|
|
|
Australia – 10.8% |
|
|
|
|
|
|
|
Babcock & Brown Ltd |
| Diversified Financials |
| 10,899 |
| $ | 182,039 |
Bluescope Steel Ltd |
| Materials |
| 56,873 |
|
| 524,923 |
CFS Retail Property Trust |
| Real Estate |
| 114,113 |
|
| 217,636 |
Commonwealth Property Office Fund |
| Real Estate |
| 93,843 |
|
| 118,534 |
Computershare Limited |
| Software & Services |
| 19,453 |
|
| 141,085 |
CSL Limited |
| Pharma, Biotech & Life Sciences |
| 9,270 |
|
| 288,968 |
Fairfax Media Ltd |
| Media |
| 31,300 |
|
| 114,863 |
GPT Group |
| Real Estate |
| 8,767 |
|
| 29,833 |
Macquarie Office Trust |
| Real Estate |
| 262,153 |
|
| 269,214 |
National Australia Bank Ltd |
| Banks |
| 19,814 |
|
| 622,894 |
Origin Energy Limited |
| Energy |
| 24,913 |
|
| 195,991 |
Suncorp-Metway Limited |
| Insurance |
| 21,963 |
|
| 304,183 |
Telstra Corp Ltd |
| Telecommunication Services |
| 21,347 |
|
| 83,627 |
Westpac Banking Corporation |
| Banks |
| 8,147 |
|
| 189,196 |
|
|
|
|
|
|
| 3,282,986 |
China – 2.0% |
|
|
|
|
|
|
|
Agile Property Holdings Ltd |
| Real Estate |
| 78,000 |
|
| 87,333 |
Guangzhou R&F Properties Co Ltd |
| Real Estate |
| 40,000 |
|
| 105,894 |
Hopson Development Holdings Ltd |
| Real Estate |
| 62,000 |
|
| 112,105 |
Ping An Insurance Group Co of China Ltd |
| Insurance |
| 16,000 |
|
| 112,945 |
Shimao Property Holdings Ltd |
| Real Estate |
| 21,000 |
|
| 37,380 |
TPV Technology Ltd |
| Technology Hardware & Equipment |
| 254,223 |
|
| 162,614 |
|
|
|
|
|
|
| 618,271 |
Hong Kong – 8.6% |
|
|
|
|
|
|
|
Cathay Pacific Airways Ltd |
| Transportation |
| 24,000 |
|
| 53,613 |
Chinese Estates Holdings Ltd |
| Real Estate |
| 66,239 |
|
| 109,990 |
Esprit Holdings Ltd |
| Retailing |
| 11,500 |
|
| 149,790 |
First Pacific Co |
| Diversified Financials |
| 110,389 |
|
| 78,827 |
Hang Lung Group Ltd |
| Real Estate |
| 20,665 |
|
| 95,921 |
Hang Seng Bank Ltd |
| Banks |
| 2,500 |
|
| 49,651 |
Henderson Investment Ltd |
| Real Estate |
| 503,000 |
|
| 26,915 |
Henderson Land Development Co Ltd |
| Real Estate |
| 13,142 |
|
| 113,521 |
Hong Kong Exchanges and Clearing Ltd |
| Diversified Financials |
| 12,000 |
|
| 250,266 |
Hopewell Highway Infrastructure Ltd |
| Transportation |
| 58,500 |
|
| 45,142 |
Hopewell Holdings |
| Transportation |
| 11,086 |
|
| 48,466 |
Hysan Development Company Ltd |
| Real Estate |
| 22,191 |
|
| 65,694 |
Jardine Matheson Hldgs Ltd |
| Diversified Financials |
| 5,993 |
|
| 152,702 |
Jardine Strategic Holdings Ltd |
| Diversified Financials |
| 9,859 |
|
| 142,956 |
17
DOMINI PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Hong Kong (continued) |
|
|
|
|
|
|
|
Kingboard Chemicals Holdings Ltd |
| Technology Hardware & Equipment |
| 25,728 |
| $ | 107,340 |
Sun Hung Kai Properties Ltd |
| Real Estate |
| 13,000 |
|
| 258,004 |
Swire Pacific Ltd ‘A’ |
| Real Estate |
| 37,164 |
|
| 504,755 |
Wharf Holdings Ltd |
| Real Estate |
| 24,675 |
|
| 132,929 |
Wheelock & Co Ltd |
| Real Estate |
| 75,418 |
|
| 220,609 |
|
|
|
|
|
|
| 2,607,091 |
Hungary – 0.2% |
|
|
|
|
|
|
|
MOL Hungarian Oil and Gas NyRt |
| Energy |
| 464 |
|
| 62,059 |
|
|
|
|
|
|
| 62,059 |
India – 2.5% |
|
|
|
|
|
|
|
Ambuja Cements Limited |
| Materials |
| 58,863 |
|
| 182,609 |
Dr. Reddy’ s Laboratories Ltd |
| Pharma, Biotech & Life Sciences |
| 5,100 |
|
| 68,918 |
Punjab National Bank Ltd |
| Banks |
| 17,000 |
|
| 283,293 |
Satyam Computer Services Ltd |
| Software & Services |
| 4,938 |
|
| 49,563 |
State Bank of India Ltd |
| Banks |
| 2,944 |
|
| 163,748 |
State Bank of India – Rights (a) (c) |
| Banks |
| 588 |
|
| 8,546 |
|
|
|
|
|
|
| 756,677 |
Indonesia – 1.1% |
|
|
|
|
|
|
|
Bank Rakyat Indonesia |
| Banks |
| 157,500 |
|
| 121,810 |
Perusahaan Gas Negara Pt |
| Utilities |
| 51,000 |
|
| 75,720 |
Telekomunikasi Indonesia Tbk PT |
| Telecommunication Services |
| 129,000 |
|
| 131,212 |
|
|
|
|
|
|
| 328,742 |
Japan – 45.6% |
|
|
|
|
|
|
|
Alps Electric Co Ltd |
| Technology Hardware & Equipment |
| 13,451 |
|
| 154,659 |
Amada Co Ltd |
| Capital Goods |
| 16,220 |
|
| 140,623 |
Aoyama Trading Co Ltd |
| Retailing |
| 8,500 |
|
| 193,457 |
Asahi Kasei Corporation |
| Materials |
| 50,640 |
|
| 310,806 |
Astellas Pharma Inc |
| Pharma, Biotech & Life Sciences |
| 6,184 |
|
| 268,295 |
Chuo Mitsui Trust Holdings Inc |
| Banks |
| 66,533 |
|
| 463,845 |
COMSYS Holdings Corp |
| Capital Goods |
| 29,000 |
|
| 250,657 |
Dai Nippon Printing Co Ltd |
| Commercial Services & Supplies |
| 25,399 |
|
| 371,697 |
Eisai Co Ltd |
| Pharma, Biotech & Life Sciences |
| 1,751 |
|
| 72,483 |
Fuji Film Holdings Corp |
| Technology Hardware & Equipment |
| 14,357 |
|
| 557,528 |
Hankyu Hanshin Holdings Inc |
| Capital Goods |
| 10,000 |
|
| 46,425 |
Honda Motor Co Ltd |
| Automobiles & Components |
| 29,903 |
|
| 924,885 |
Kawasaki Kisen Kaisha Ltd |
| Transportation |
| 37,206 |
|
| 363,233 |
Kyocera Corporation |
| Technology Hardware & Equipment |
| 5,527 |
|
| 441,622 |
Makita Corporation |
| Consumer Durables & Apparel |
| 6,000 |
|
| 224,907 |
Mazda Motor Corp |
| Automobiles & Components |
| 46,000 |
|
| 195,640 |
Mitsui Chemicals Inc |
| Materials |
| 64,880 |
|
| 434,255 |
Namco Bandai Holdings Inc |
| Consumer Durables & Apparel |
| 5,000 |
|
| 70,220 |
Nintendo Company Ltd |
| Software & Services |
| 1,248 |
|
| 631,211 |
Nippon Express Co Ltd |
| Transportation |
| 90,000 |
|
| 483,619 |
Nippon Meat Packers Inc |
| Food & Beverage |
| 5,000 |
|
| 56,417 |
Nippon Sheet Glass Co Ltd |
| Capital Goods |
| 82,000 |
|
| 378,635 |
Nippon Telegraph & Telephone Corp |
| Telecommunication Services |
| 152 |
|
| 723,522 |
Nisshin Seifun Group Inc |
| Food & Beverage |
| 20,000 |
|
| 197,748 |
18
DOMINI PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Japan (continued) |
|
|
|
|
|
|
|
Nisshin Steel Co Ltd |
| Materials |
| 105,000 |
| $ | 349,842 |
Nisshinbo Industries Inc |
| Consumer Durables & Apparel |
| 5,400 |
|
| 58,160 |
Nomura Holdings Inc |
| Diversified Financials |
| 17,100 |
|
| 249,973 |
NTT Data Corporation |
| Software & Services |
| 9 |
|
| 40,001 |
ORIX Corporation |
| Diversified Financials |
| 3,693 |
|
| 637,854 |
Ricoh Company Limited |
| Technology Hardware & Equipment |
| 16,503 |
|
| 259,880 |
Sapporo Hokuyo Holdings Inc |
| Banks |
| 4 |
|
| 33,462 |
SBI Holdings Inc |
| Diversified Financials |
| 604 |
|
| 142,124 |
Seiko Epson Corp |
| Technology Hardware & Equipment |
| 10,510 |
|
| 257,047 |
Seino Holdings Co Ltd |
| Transportation |
| 26,800 |
|
| 182,484 |
Sekisui House Limited |
| Consumer Durables & Apparel |
| 59,188 |
|
| 663,440 |
Seven & I Holdings Co Ltd |
| Food & Staples Retailing |
| 7,800 |
|
| 193,304 |
Shinko Securities Co Ltd |
| Diversified Financials |
| 26,000 |
|
| 102,113 |
Sony Corporation |
| Consumer Durables & Apparel |
| 10,478 |
|
| 495,083 |
Sumitomo Bakelite Co Ltd |
| Materials |
| 33,600 |
|
| 178,512 |
Sumitomo Trust & Banking Co Ltd |
| Banks |
| 29,874 |
|
| 192,361 |
Suzuken Company Limited |
| Health Care Equipment & Services |
| 6,900 |
|
| 252,196 |
TDK Corp |
| Technology Hardware & Equipment |
| 6,600 |
|
| 424,279 |
Tokyo Steel Manufacturing Co Ltd |
| Materials |
| 28,800 |
|
| 287,916 |
Toppan Printing Company Ltd |
| Commercial Services & Supplies |
| 53,606 |
|
| 537,649 |
Toyo Seikan Kaisha Limited |
| Materials |
| 21,887 |
|
| 399,847 |
|
|
|
|
|
|
| 13,893,916 |
Malaysia – 2.7% |
|
|
|
|
|
|
|
AMMB Holdings BHD |
| Diversified Financials |
| 38,400 |
|
| 43,926 |
Bumiputra-Commerce Holdings BHD |
| Banks |
| 13,300 |
|
| 42,707 |
POS Malaysia BHD |
| Transportation |
| 178,800 |
|
| 131,547 |
Public Bank BHD-Foreign Market |
| Banks |
| 24,000 |
|
| 85,217 |
Telekom Malaysia BHD |
| Telecommunication Services |
| 48,800 |
|
| 171,947 |
Tenaga Nasional BHD |
| Utilities |
| 31,756 |
|
| 90,487 |
YTL Corporation Berhad |
| Utilities |
| 71,840 |
|
| 173,206 |
YTL Power International BHD |
| Utilities |
| 120,300 |
|
| 94,006 |
|
|
|
|
|
|
| 833,043 |
New Zealand – 2.9% |
|
|
|
|
|
|
|
Fisher & Paykel Appliances |
|
|
|
|
|
|
|
Holdings Ltd |
| Consumer Durables & Apparel |
| 23,684 |
|
| 52,161 |
Kiwi Income Property Trust |
| Real Estate |
| 171,013 |
|
| 174,482 |
Telecom Corp of New Zealand Ltd |
| Telecommunication Services |
| 116,907 |
|
| 366,844 |
Tower Limited |
| Insurance |
| 68,468 |
|
| 116,173 |
Vector Ltd |
| Utilities |
| 100,805 |
|
| 167,225 |
|
|
|
|
|
|
| 876,885 |
Norway – 1.3% |
|
|
|
|
|
|
|
Norsk Hydro ASA |
| Materials |
| 6,200 |
|
| 73,867 |
Petroleum Geo-Services ASA |
| Energy |
| 15,550 |
|
| 334,358 |
|
|
|
|
|
|
| 408,225 |
19
DOMINI PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Philippines – 0.6% |
|
|
|
|
|
|
|
Globe Telecom Inc |
| Telecommunication Services |
| 4,707 |
| $ | 182,587 |
|
|
|
|
|
|
| 182,587 |
Singapore – 2.1% |
|
|
|
|
|
|
|
DBS Group Holdings Ltd. |
| Banks |
| 20,606 |
|
| 257,011 |
Jardine Cycle & Carriage Ltd |
| Retailing |
| 22,662 |
|
| 316,552 |
Oversea-Chinese Banking Corp |
| Banks |
| 14,381 |
|
| 76,573 |
|
|
|
|
|
|
| 650,136 |
South Korea – 9.3% |
|
|
|
|
|
|
|
Cheil Jedang Corporation (a) |
| Capital Goods |
| 819 |
|
| 61,283 |
Daegu Bank |
| Banks |
| 3,910 |
|
| 57,100 |
GS Engineering & Construction |
| Capital Goods |
| 689 |
|
| 83,819 |
GS Holdings Corp |
| Energy |
| 5,069 |
|
| 217,982 |
Hana Financial Group Inc |
| Banks |
| 2,100 |
|
| 103,086 |
Hyundai Securities Co |
| Diversified Financials |
| 3,630 |
|
| 63,367 |
Industrial Bank of Korea |
| Banks |
| 8,995 |
|
| 165,530 |
Kookmin Bank |
| Banks |
| 1,029 |
|
| 67,683 |
Korea Zinc Co Ltd |
| Materials |
| 1,495 |
|
| 173,229 |
KT Corp |
| Telecommunication Services |
| 6,803 |
|
| 364,763 |
KT Freetel (a) |
| Telecommunication Services |
| 3,020 |
|
| 91,766 |
LG Corp |
| Capital Goods |
| 6,206 |
|
| 359,895 |
LG Electronics Inc |
| Consumer Durables & Apparel |
| 3,926 |
|
| 381,054 |
LG.Philips LCD Co Ltd |
| Technology Hardware & Equipment |
| 4,660 |
|
| 201,013 |
Pacific Corp |
| Household & Personal Products |
| 699 |
|
| 95,291 |
Pusan Bank |
| Banks |
| 6,480 |
|
| 89,031 |
Shinhan Financial Group Ltd |
| Banks |
| 3,183 |
|
| 170,385 |
Woori Investment & Securities Co Ltd |
| Diversified Financials |
| 4,540 |
|
| 100,859 |
|
|
|
|
|
|
| 2,847,136 |
Taiwan – 7.6% |
|
|
|
|
|
|
|
Acer Inc |
| Technology Hardware & Equipment |
| 28,000 |
|
| 43,925 |
Asustek Computer Inc |
| Technology Hardware & Equipment |
| 41,492 |
|
| 108,209 |
AU Optronics Corp |
| Technology Hardware & Equipment |
| 301,528 |
|
| 503,395 |
Chi Mei Optoelectronics Corp |
| Technology Hardware & Equipment |
| 168,560 |
|
| 198,742 |
China Steel Corp |
| Materials |
| 238,214 |
|
| 336,979 |
Chunghwa Picture Tubes Ltd (a) |
| Technology Hardware & Equipment |
| 476,000 |
|
| 141,069 |
Chunghwa Telecom Co Ltd |
| Telecommunication Services |
| 81,475 |
|
| 173,418 |
Compal Electronics |
| Technology Hardware & Equipment |
| 355,383 |
|
| 305,968 |
High Tech Computer Corp |
| Technology Hardware & Equipment |
| 7,500 |
|
| 141,403 |
Lite-On Technology Corp |
| Technology Hardware & Equipment |
| 53,000 |
|
| 78,951 |
Powerchip Semiconductor Corp |
| Semiconductors & |
|
|
|
|
|
|
| Semiconductor Equipment |
| 49,322 |
|
| 20,391 |
Siliconware Precision Industries Co |
| Semiconductors & |
|
|
|
|
|
|
| Semiconductor Equipment |
| 368 |
|
| 575 |
Taiwan Cooperative Bank |
| Banks |
| 222,143 |
|
| 167,991 |
United Microelectronics Corp |
| Semiconductors & |
|
|
|
|
|
|
| Semiconductor Equipment |
| 148,000 |
|
| 79,841 |
|
|
|
|
|
|
| 2,300,857 |
20
DOMINI PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Thailand – 0.9% |
|
|
|
|
|
|
|
Bangkok Bank Pub Co – For Reg |
| Banks |
| 52,318 |
| $ | 195,043 |
Siam Cement Pub Co – For Reg |
| Materials |
| 11,800 |
|
| 76,272 |
|
|
|
|
|
|
| 271,315 |
United States – 0.9% |
|
|
|
|
|
|
|
National Oilwell Varco Inc (a) |
| Energy |
| 4,500 |
|
| 271,035 |
|
|
|
|
|
|
| 271,035 |
Total Common Stocks (Cost $32,185,725) |
|
|
|
|
|
| 30,190,961 |
Repurchase Agreements – 0.6% |
|
|
|
|
|
|
|
State Street Bank & Trust, dated |
|
|
|
|
|
|
|
1/31/2008, 1.60% due |
|
|
|
|
|
|
|
2/1/2008, maturity amount |
|
|
|
|
|
|
|
$175,789 (collateralized by |
|
|
|
|
|
|
|
U.S. Government Agency |
|
|
|
|
|
|
|
Obligations, Freddie Mac, |
|
|
|
|
|
|
|
3.25%, 3/14/2008, market |
|
|
|
|
|
|
|
value $182,250) |
| Repurchase Agreements |
| 175,781 |
|
| 175,781 |
Total Repurchase Agreements (Cost $175,781) |
|
|
|
|
|
| 175,781 |
Total Investments — 99.7% (Cost $32,361,506) (b) |
|
|
|
|
|
| 30,366,742 |
Other Assets, less liabilities — 0.3% |
|
|
|
|
|
| 93,389 |
Net Assets — 100.0% |
|
|
|
|
| $ | 30,460,131 |
(a) | Non-income producing security. |
(b) | The aggregate cost for federal income tax purposes is $32,552,076. The aggregate gross unrealized appreciation is $1,212,370 and the aggregate gross unrealized depreciation is $3,397,704, resulting in net unrealized depreciation of $2,185,334. |
(c) | Securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Trust’s Board of Trustees. |
As of the date of this report, certain foreign securities were fair valued by an independent pricing service under the direction of the Board of Trustees or its delegates in accordance with the Trust’s Valuation and Pricing Policies and Procedures.
SEE NOTES TO FINANCIAL STATEMENTS
21
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
PERFORMANCE COMMENTARY
For the six months ended January 31, 2008, the Fund declined –10.00%, underperforming the MSCI EAFE Index, which declined by –7.44%.
During this period, stock selection — particularly in the financial materials, and consumer discretionary sectors — was the primary driver of underperformance:
• | Royal Bank of Scotland was affected by the impact of problems in the U.S. subprime mortgage market on mortgage-related securities that it held. |
• | Trinity Mirror, the U.K.’s largest newspaper publisher, saw its shares drop sharply after it sold its Midlands newspapers for less than expected. |
• | Tokyo Steel Manufacturing was expected to be affected by higher scrap steel costs and weaker construction demand. |
The Fund’s subadvisor, in selecting stocks for the Fund’s portfolio, uses an approach that considers measures of a company’s valuation (the price of its stock relative to the value of its businesses) and its momentum (the rate at which the company’s profits and/or share price have been increasing). During this period, valuation measures were less effective than momentum measures.
The Fund’s performance relative to the index was helped by stock selection in the telecommunications services and healthcare sectors, and by the Fund’s positions in the British telecommunications company Vodafone; the British water utility Kelda Group, which was sought for acquisition; and France Telecom, which surprised analysts with strong performance in its domestic wireline and wireless divisions.
22
The table and bar chart below provide information as of January 31, 2008, about the ten largest holdings of the Domini European PacAsia Social Equity Trust and its portfolio holdings by industry sector and by country:
TEN LARGEST HOLDINGS
SECURITY DESCRIPTION |
| % NET |
Vodafone Group PLC |
| 3.0% |
Nokia OYJ |
| 2.5% |
Unilever PLC |
| 2.3% |
Sanofi-Aventis |
| 2.2% |
Banco Santander SA |
| 2.0% |
Telefonica SA |
| 2.0% |
France Telecom SA |
| 2.0% |
Royal Bank of Scotland Group |
| 1.9% |
StatoilHydro ASA |
| 1.8% |
Vivendi SA |
| 1.7% |
PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)
______________* | Other reflects Repurchase Agreements and Other Liabilities, less assets. |
PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)
______________
* | Other reflects New Zealand, Singapore, Denmark, China, Malaysia, Turkey, Taiwan, Hungary, Portugal, Poland, Repurchase Agreements, and Other Liabilities, less assets. |
The holdings mentioned above are described in the Domini European PacAsia Social Equity Trust’s Portfolio of Investments at January 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.
Performance Commentary 23
AVERAGE ANNUAL TOTAL RETURNS
|
| Domini European PacAsia | MSCI EAFE | ||
As of | 1 Year | 2.22% |
| 11.62% |
|
12-31-07 | Since Inception(1) | 2.09% |
| 12.66% |
|
As of | 1 Year | -7.41% |
| 0.64% |
|
1-31-08 | Since Inception(1) | -6.36% |
| 2.18% |
|
COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI EUROPEAN PACASIA SOCIAL EQUITY FUND INVESTOR SHARES AND MSCI EAFE
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month-end, call 1-800-582-6757 or visit www.domini.com. A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee, which would reduce the performance quoted. See the Fund’s prospectus for further information.
For the period reported in its current prospectus, the Fund’s gross annual operating expenses totaled 5.89% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.60% of net assets.
Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity.
The table and the graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return for the Domini European PacAsia Social Equity Fund is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Certain fees payable by the Fund were waived during the period, and the Fund’s average annual total returns would have been lower had these not been waived.
The Morgan Stanley Capital International Europe Australasia Far East (MSCI EAFE) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI EAFE.
______________(1) | Since December 27, 2006. |
This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 03/08
24 Performance Commentary
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Common Stocks – 98.1% |
|
|
|
|
|
|
|
Australia – 4.0% |
|
|
|
|
|
|
|
AGL Energy Ltd |
| Utilities |
| 4,576 |
| $ | 49,669 |
BlueScope Steel Ltd |
| Materials |
| 4,325 |
|
| 39,919 |
Computershare Limited |
| Software & Services |
| 3,337 |
|
| 24,202 |
CSL Limited |
| Pharma, Biotech & Life Sciences |
| 1,104 |
|
| 34,414 |
Macquarie Office Trust |
| Real Estate |
| 100,723 |
|
| 103,436 |
National Australia Bank Ltd |
| Banks |
| 5,925 |
|
| 186,265 |
Origin Energy Limited |
| Energy |
| 16,577 |
|
| 130,412 |
Sonic Healthcare Ltd |
| Health Care Equipment & Services |
| 4,462 |
|
| 65,636 |
Suncorp-Metway Limited |
| Insurance |
| 2,073 |
|
| 28,711 |
Telstra Corp Ltd |
| Telecommunication Services |
| 9,246 |
|
| 36,221 |
|
|
|
|
|
|
| 698,885 |
Austria – 1.4% |
|
|
|
|
|
|
|
IMMOFINANZ AG |
| Real Estate |
| 9,364 |
|
| 88,750 |
OMV AG |
| Energy |
| 1,098 |
|
| 78,873 |
Voestalpine AG |
| Materials |
| 1,276 |
|
| 78,362 |
|
|
|
|
|
|
| 245,985 |
Belgium – 2.0% |
|
|
|
|
|
|
|
Delhaize Group |
| Food & Staples Retailing |
| 1,514 |
|
| 115,450 |
Dexia SA |
| Banks |
| 1,455 |
|
| 35,181 |
Groupe Bruxelles Lambert SA |
| Diversified Financials |
| 202 |
|
| 23,382 |
KBC Groep NV |
| Banks |
| 1,372 |
|
| 174,442 |
|
|
|
|
|
|
| 348,455 |
China – 0.4% |
|
|
|
|
|
|
|
Hopson Development Holdings Ltd |
| Real Estate |
| 24,000 |
|
| 43,395 |
TPV Technology Ltd |
| Technology Hardware & Equipment |
| 47,775 |
|
| 30,560 |
|
|
|
|
|
|
| 73,955 |
Denmark – 0.5% |
|
|
|
|
|
|
|
Dampskibsselskabet (D/S)Torm |
| Energy |
| 800 |
|
| 25,652 |
H. Lundbeck A/S |
| Pharma, Biotech & Life Sciences |
| 2,545 |
|
| 61,686 |
|
|
|
|
|
|
| 87,338 |
Finland – 3.1% |
|
|
|
|
|
|
|
Nokia OYJ |
| Technology Hardware & Equipment |
| 11,824 |
|
| 433,601 |
Orion OYJ/New |
| Pharma, Biotech & Life Sciences |
| 4,548 |
|
| 102,218 |
|
|
|
|
|
|
| 535,819 |
France – 8.5% |
|
|
|
|
|
|
|
Air France-KLM |
| Transportation |
| 3,701 |
|
| 102,826 |
BNP Paribas |
| Banks |
| 1,936 |
|
| 191,252 |
Credit Agricole SA |
| Banks |
| 1,724 |
|
| 52,836 |
France Telecom SA |
| Telecommunication Services |
| 9,798 |
|
| 344,137 |
Sanofi-Aventis SA |
| Pharma, Biotech & Life Sciences |
| 4,749 |
|
| 385,682 |
Schneider Electric SA |
| Capital Goods |
| 237 |
|
| 27,302 |
Valeo SA |
| Automobiles & Components |
| 739 |
|
| 27,195 |
25
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
France (continued) |
|
|
|
|
|
|
|
Vallourec |
| Capital Goods |
| 251 |
| $ | 50,242 |
Vivendi SA |
| Media |
| 7,398 |
|
| 296,884 |
|
|
|
|
|
|
| 1,478,356 |
Germany – 7.2% |
|
|
|
|
|
|
|
Allianz SE – Reg |
| Insurance |
| 1,245 |
|
| 220,989 |
Altana AG |
| Materials |
| 9,587 |
|
| 214,582 |
Commerzbank AG |
| Banks |
| 1,675 |
|
| 50,671 |
Deutsche Boerse AG |
| Diversified Financials |
| 291 |
|
| 50,709 |
Deutsche Lufthansa AG – Reg |
| Transportation |
| 3,628 |
|
| 86,624 |
Deutsche Telekom AG – Reg |
| Telecommunication Services |
| 1,367 |
|
| 27,887 |
Epcos AG |
| Technology Hardware & Equipment |
| 3,236 |
|
| 44,030 |
Fresenius SE |
| Health Care Equipment & Services |
| 1,589 |
|
| 126,314 |
Hannover Rueckversicherungs AG |
| Insurance |
| 1,449 |
|
| 64,523 |
Muenchener Rueckver AG – Reg |
| Insurance |
| 1,329 |
|
| 237,794 |
Salzgitter AG |
| Materials |
| 818 |
|
| 127,761 |
|
|
|
|
|
|
| 1,251,884 |
Greece – 1.5% |
|
|
|
|
|
|
|
National Bank of Greece SA |
| Banks |
| 2,120 |
|
| 129,043 |
Public Power Corp SA |
| Utilities |
| 2,762 |
|
| 128,990 |
|
|
|
|
|
|
| 258,033 |
Hong Kong – 2.3% |
|
|
|
|
|
|
|
Chinese Estates Holdings Ltd |
| Real Estate |
| 18,269 |
|
| 30,336 |
First Pacific Co |
| Diversified Financials |
| 40,000 |
|
| 28,563 |
Hang Lung Group Ltd |
| Real Estate |
| 4,627 |
|
| 21,477 |
Jardine Matheson Hldgs Ltd |
| Diversified Financials |
| 1,114 |
|
| 28,385 |
Jardine Strategic Holdings Ltd |
| Diversified Financials |
| 2,000 |
|
| 29,000 |
Kingboard Chemicals Holdings Ltd |
| Technology Hardware & Equipment |
| 13,243 |
|
| 55,251 |
Swire Pacific Ltd ‘A’ |
| Real Estate |
| 5,334 |
|
| 72,445 |
Wharf Holdings Ltd |
| Real Estate |
| 8,970 |
|
| 48,323 |
Wheelock & Co Ltd |
| Real Estate |
| 30,250 |
|
| 88,486 |
|
|
|
|
|
|
| 402,266 |
Hungary – 0.3% |
|
|
|
|
|
|
|
MOL Hungarian Oil and Gas |
|
|
|
|
|
|
|
NyRt |
| Energy |
| 387 |
|
| 51,760 |
|
|
|
|
|
|
| 51,760 |
Ireland – 1.4% |
|
|
|
|
|
|
|
Anglo Irish Bank PLC |
| Banks |
| 4,711 |
|
| 66,344 |
Irish Life & Permanent PLC |
| Insurance |
| 3,677 |
|
| 58,689 |
Kerry Group PLC – A |
| Food & Beverage |
| 4,610 |
|
| 123,562 |
|
|
|
|
|
|
| 248,595 |
Italy – 2.0% |
|
|
|
|
|
|
|
Fiat SPA |
| Automobiles & Components |
| 9,923 |
|
| 232,074 |
Terna Rete Elettrica Nazionale |
|
|
|
|
|
|
|
SpA |
| Utilities |
| 28,516 |
|
| 119,203 |
|
|
|
|
|
|
| 351,277 |
26
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Japan – 19.2% |
|
|
|
|
|
|
|
Alps Electric Co Ltd |
| Technology Hardware & Equipment |
| 2,518 |
| $ | 28,952 |
Aoyama Trading Co Ltd |
| Retailing |
| 3,396 |
|
| 77,292 |
Asahi Kasei Corporation |
| Materials |
| 9,000 |
|
| 55,238 |
Astellas Pharma Inc |
| Pharma, Biotech & Life Sciences |
| 2,900 |
|
| 125,817 |
Chuo Mitsui Trust Holdings Inc |
| Banks |
| 19,194 |
|
| 133,814 |
COMSYS Holdings Corp |
| Capital Goods |
| 6,000 |
|
| 51,860 |
Dai Nippon Printing Co Ltd |
| Commercial Services & Supplies |
| 6,828 |
|
| 99,923 |
Fuji Film Holdings Corp |
| Technology Hardware & Equipment |
| 6,405 |
|
| 248,726 |
Honda Motor Co Ltd |
| Automobiles & Components |
| 9,428 |
|
| 291,603 |
Kyocera Corporation |
| Technology Hardware & Equipment |
| 1,179 |
|
| 94,205 |
Makita Corporation |
| Consumer Durables & Apparel |
| 600 |
|
| 22,491 |
Mitsui Chemicals Inc |
| Materials |
| 12,546 |
|
| 83,973 |
Nintendo Company Ltd |
| Software & Services |
| 357 |
|
| 180,563 |
Nippon Express Co Ltd |
| Transportation |
| 31,000 |
|
| 166,580 |
Nippon Sheet Glass Co Ltd |
| Capital Goods |
| 15,000 |
|
| 69,263 |
Nippon Telegraph & Telephone Corp |
| Telecommunication Services |
| 45 |
|
| 214,200 |
Nisshin Steel Co Ltd |
| Materials |
| 7,000 |
|
| 23,323 |
ORIX Corporation |
| Diversified Financials |
| 800 |
|
| 138,176 |
Ricoh Company Limited |
| Technology Hardware & Equipment |
| 4,484 |
|
| 70,612 |
Sapporo Hokuyo Holdings Inc |
| Banks |
| 4 |
|
| 33,462 |
SBI Holdings Inc |
| Diversified Financials |
| 117 |
|
| 27,531 |
Seiko Epson Corp |
| Technology Hardware & Equipment |
| 3,601 |
|
| 88,071 |
Seino Holdings Corp |
| Transportation |
| 10,801 |
|
| 73,545 |
Sekisui House Limited |
| Consumer Durables & Apparel |
| 22,259 |
|
| 249,502 |
Sony Corporation |
| Consumer Durables & Apparel |
| 779 |
|
| 36,808 |
Suzuken Company Limited |
| Health Care Equipment & Services |
| 5,100 |
|
| 186,405 |
TDK Corp |
| Technology Hardware & Equipment |
| 2,000 |
|
| 128,570 |
Tokyo Steel Mfg Co Ltd |
| Materials |
| 10,883 |
|
| 108,798 |
Toppan Printing Company Ltd |
| Commercial Services & Supplies |
| 14,154 |
|
| 141,960 |
Toyo Seikan Kaisha Limited |
| Materials |
| 4,861 |
|
| 88,804 |
|
|
|
|
|
|
| 3,340,067 |
Malaysia – 0.4% |
|
|
|
|
|
|
|
YTL Power International BHD |
| Utilities |
| 85,500 |
|
| 66,812 |
|
|
|
|
|
|
| 66,812 |
Netherlands – 5.3% |
|
|
|
|
|
|
|
Fugro NV – CVA |
| Energy |
| 1,777 |
|
| 121,299 |
ING Groep NV – CVA |
| Diversified Financials |
| 5,946 |
|
| 192,937 |
Koninklijke Ahold NV (a) |
| Food & Staples Retailing |
| 3,696 |
|
| 48,236 |
Koninklijke DSM NV |
| Materials |
| 1,870 |
|
| 78,617 |
SNS Reaal |
| Diversified Financials |
| 10,990 |
|
| 207,343 |
TNT NV |
| Transportation |
| 4,280 |
|
| 158,035 |
Unilever NV – CVA |
| Food & Beverage |
| 3,659 |
|
| 118,830 |
|
|
|
|
|
|
| 925,297 |
New Zealand – 0.8% |
|
|
|
|
|
|
|
Kiwi Income Property Trust |
| Real Estate |
| 57,736 |
|
| 58,907 |
Telecom Corp of New Zealand Ltd |
| Telecommunication Services |
| 25,813 |
|
| 80,999 |
|
|
|
|
|
|
| 139,906 |
27
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Norway – 3.3% |
|
|
|
|
|
|
|
Fred Olsen Energy ASA |
| Energy |
| 501 |
| $ | 24,800 |
Norsk Hydro ASA |
| Materials |
| 10,450 |
|
| 124,502 |
Orkla ASA |
| Capital Goods |
| 4,301 |
|
| 56,617 |
Petroleum Geo-Services ASA |
| Energy |
| 2,262 |
|
| 48,638 |
StatoilHydro ASA |
| Energy |
| 12,258 |
|
| 320,937 |
|
|
|
|
|
|
| 575,494 |
Poland – 0.3% |
|
|
|
|
|
|
|
Polish Oil & Gas |
| Energy |
| 10,712 |
|
| 19,505 |
Telekomunikacja Polska SA |
| Telecommunication Services |
| 3,070 |
|
| 29,305 |
|
|
|
|
|
|
| 48,810 |
Portugal – 0.3% |
|
|
|
|
|
|
|
Banco Espirito Santo SA – Reg |
| Banks |
| 2,888 |
|
| 50,638 |
|
|
|
|
|
|
| 50,638 |
Singapore – 0.8% |
|
|
|
|
|
|
|
DBS Group Holdings Ltd. |
| Banks |
| 3,000 |
|
| 37,418 |
Jardine Cycle & Carriage Ltd |
| Retailing |
| 6,817 |
|
| 95,223 |
|
|
|
|
|
|
| 132,641 |
South Korea – 1.4% |
|
|
|
|
|
|
|
GS Holdings Corp |
| Energy |
| 1,046 |
|
| 44,981 |
Hana Financial Holdings |
| Banks |
| 568 |
|
| 27,882 |
Industrial Bank of Korea |
| Banks |
| 1,377 |
|
| 25,340 |
Korea Zinc Co Ltd |
| Materials |
| 294 |
|
| 34,067 |
KT Corp |
| Telecommunication Services |
| 555 |
|
| 29,758 |
LG Corp |
| Capital Goods |
| 494 |
|
| 28,648 |
LG Electronics Inc |
| Consumer Durables & Apparel |
| 243 |
|
| 23,585 |
Woori Finance Holdings Co Ltd |
| Banks |
| 1,219 |
|
| 22,281 |
|
|
|
|
|
|
| 236,542 |
Spain – 4.9% |
|
|
|
|
|
|
|
Banco Santander SA |
| Banks |
| 19,907 |
|
| 348,681 |
Corporacion Financiera Alba |
| Diversified Financials |
| 386 |
|
| 22,568 |
Gas Natural SDG SA |
| Utilities |
| 2,509 |
|
| 137,932 |
Telefonica SA |
| Telecommunication Services |
| 11,881 |
|
| 345,899 |
|
|
|
|
|
|
| 855,080 |
Sweden – 2.0% |
|
|
|
|
|
|
|
Electrolux AB – Ser B |
| Consumer Durables & Apparel |
| 1,483 |
|
| 23,193 |
Scania AB – B Shs |
| Capital Goods |
| 8,700 |
|
| 179,466 |
SSAB Svenskt Stal AB – Ser A |
| Materials |
| 2,100 |
|
| 55,342 |
SSAB Svenskt Stal AB – Ser B |
| Materials |
| 1,050 |
|
| 25,212 |
TeliaSonera AB |
| Telecommunication Services |
| 7,000 |
|
| 61,852 |
|
|
|
|
|
|
| 345,065 |
Switzerland – 5.3% |
|
|
|
|
|
|
|
Lonza Group AG – Reg |
| Pharma, Biotech & Life Sciences |
| 2,191 |
|
| 280,207 |
Novartis AG – Reg Shs |
| Pharma, Biotech & Life Sciences |
| 2,093 |
|
| 105,667 |
Rieter Holding AG |
| Automobiles & Components |
| 63 |
|
| 22,750 |
Sonova Holding AG |
| Health Care Equipment & Services |
| 1,050 |
|
| 93,535 |
Swiss Reinsurance – Reg |
| Insurance |
| 3,676 |
|
| 275,230 |
The Swatch Group AG – B |
| Consumer Durables & Apparel |
| 430 |
|
| 115,688 |
The Swatch Group AG – Reg |
| Consumer Durables & Apparel |
| 516 |
|
| 26,969 |
|
|
|
|
|
|
| 920,046 |
28
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Taiwan – 0.3% |
|
|
|
|
|
|
|
Chi Mei Optoelectronics Corp |
| Technology Hardware & Equipment |
| 24,000 |
| $ | 28,297 |
China Steel Corp |
| Materials |
| 20,942 |
|
| 29,625 |
|
|
|
|
|
|
| 57,922 |
Turkey – 0.3% |
|
|
|
|
|
|
|
Eregli Demir ve Celik Fabrikalari TAS |
| Materials |
| 3,104 |
|
| 19,635 |
Trakya Cam Sanayii AS |
| Capital Goods |
| 10,171 |
|
| 19,784 |
Turkiye Vakiflar Bankasi T – D |
| Banks |
| 7,424 |
|
| 18,679 |
|
|
|
|
|
|
| 58,098 |
United Kingdom – 18.9% |
|
|
|
|
|
|
|
3i Group PLC |
| Diversified Financials |
| 8,016 |
|
| 150,093 |
Barclays PLC |
| Banks |
| 13,190 |
|
| 124,475 |
BG Group PLC |
| Energy |
| 9,220 |
|
| 203,357 |
Carphone Warehouse Group PLC |
| Retailing |
| 27,698 |
|
| 182,329 |
Collins Stewart PLC |
| Diversified Financials |
| 13,547 |
|
| 37,521 |
Cookson Group PLC |
| Capital Goods |
| 3,082 |
|
| 34,212 |
Drax Group PLC |
| Utilities |
| 5,784 |
|
| 58,303 |
Emap PLC |
| Media |
| 3,655 |
|
| 67,340 |
GlaxoSmithKline PLC |
| Pharma, Biotech & Life Sciences |
| 7,231 |
|
| 171,331 |
HBOS PLC |
| Banks |
| 17,520 |
|
| 244,057 |
Home Retail Group |
| Retailing |
| 29,093 |
|
| 164,849 |
HSBC Holdings PLC |
| Banks |
| 1,616 |
|
| 24,239 |
Man Group PLC |
| Diversified Financials |
| 8,875 |
|
| 97,687 |
Old Mutual PLC |
| Insurance |
| 84,252 |
|
| 210,132 |
Royal Bank of Scotland Group PLC |
| Banks |
| 42,167 |
|
| 324,996 |
Stagecoach Group PLC |
| Transportation |
| 37,103 |
|
| 178,889 |
Standard Life PLC |
| Insurance |
| 11,127 |
|
| 48,014 |
Unilever PLC |
| Food & Beverage |
| 11,963 |
|
| 394,238 |
Vodafone Group PLC |
| Telecommunication Services |
| 148,260 |
|
| 518,509 |
WM Morrison Supermarkets PLC |
| Food & Staples Retailing |
| 10,788 |
|
| 64,891 |
|
|
|
|
|
|
| 3,299,462 |
Total Common Stocks (Cost $18,860,579) |
|
|
|
|
|
| 17,084,488 |
29
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST / PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008 (UNAUDITED)
COUNTRY/ SECURITY |
| INDUSTRY |
| SHARES |
|
| VALUE |
Repurchase Agreements – 2.9% |
|
|
|
|
|
|
|
State Street Bank & Trust, |
|
|
|
|
|
|
|
dated 1/31/2008, 1.60% due |
|
|
|
|
|
|
|
2/1/2008, maturity amount |
|
|
|
|
|
|
|
$511,268 (collateralized by |
|
|
|
|
|
|
|
U.S. Government Agency |
|
|
|
|
|
|
|
Obligations, Freddie Mac, |
|
|
|
|
|
|
|
3.25%, 3/14/2008, market |
|
|
|
|
|
|
|
value $526,500) |
| Repurchase Agreements |
| 511,245 |
| $ | 511,245 |
Total Repurchase Agreements (Cost $511,245) |
|
|
|
|
|
| 511,245 |
Total Investments — 101.0% (Cost $19,371,824) (b) |
|
|
|
|
|
| 17,595,733 |
Other Liabilities, less assets — (1.0%) |
|
|
|
|
|
| (181,984) |
Net Assets — 100.0% |
|
|
|
|
| $ | 17,413,749 |
(a) | Non-income producing security |
(b) | The aggregate cost for federal income tax purposes is $19,463,112. The aggregate gross unrealized appreciation is $391,144 and the aggregate gross unrealized depreciation is $2,258,523, resulting in net unrealized depreciation of $1,867,379. |
As of the date of this report, certain foreign securities were fair valued by an independent pricing service under the direction of the Board of Trustees or its delegates in accordance with the Trust’s Valuation and Pricing Policies and Procedures.
SEE NOTES TO FINANCIAL STATEMENTS
30
DOMINI SOCIAL TRUST
EXPENSE EXAMPLE
As a shareholder of Domini Social Trust, you incur two types of costs:
• | Transaction costs |
• | Ongoing costs, including management fees and other Trust expenses |
This example is intended to help you understand your ongoing costs (in dollars) of investing in the Trust and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on August 1, 2007, and held through January 31, 2008.
Actual Expenses
The line of the table captioned “Actual Expenses” below provides information about actual account value and actual expenses. You may use the information in this line, together with the amount invested, to estimate the expenses that you paid over the period as follows:
• | Divide your account value by $1,000. |
• | Multiply your result in step 1 by the number in the first line under the heading “Expenses Paid During Period” in the table. |
• | The result equals the estimated expenses you paid on your account during the period. |
Hypothetical Expenses
The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on the Trust’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Trust’s return. The hypothetical account values and expenses may not be used to estimate actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Trust and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical example that appears in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
31
Fund Name |
| Expenses |
| Beginning Account |
| Ending |
| Expenses | ||
Domini Social |
| Actual Expenses |
| $1,000.00 |
| $ | 919.50 |
| $1.541 | |
| Hypothetical Expenses |
| $1,000.00 |
| $ | 1,023.53 |
| $1.631 | ||
Domini European |
| Actual Expenses |
| $1,000.00 |
| $ | 867.90 |
| $6.012 | |
| Hypothetical Expenses |
| $1,000.00 |
| $ | 1,018.70 |
| $6.502 | ||
Domini PacAsia |
| Actual Expenses |
| $1,000.00 |
| $ | 918.40 |
| $3.813 | |
| Hypothetical Expenses |
| $1,000.00 |
| $ | 1,021.17 |
| $4.013 | ||
Domini European |
| Actual Expenses |
| $1,000.00 |
| $ | 900.00 |
| $3.734 | |
| Hypothetical Expenses |
| $1,000.00 |
| $ | 1,021.22 |
| $3.964 |
1 | Expenses are equal to the Trust’s annualized expense ratio of 0.32%, multiplied by average account value over the period, multiplied by 184, and divided by 366. |
2 | Expenses are equal to the Trust’s annualized expense ratio of 1.28%, multiplied by average account value over the period, multiplied by 184, and divided by 366. |
3 | Expenses are equal to the Trust’s annualized expense ratio of 0.79%, multiplied by average account value over the period, multiplied by 184, and divided by 366. |
4 | Expenses are equal to the Trust’s annualized expense ratio of 0.78%, multiplied by average account value over the period, multiplied by 184, and divided by 366. |
32 Domini Social Trust — Expense Example
FINANCIAL STATEMENTS
33
DOMINI SOCIAL EQUITY TRUST
DOMINI EUROPEAN SOCIAL EQUITY TRUST
DOMINI PACASIA SOCIAL EQUITY TRUST
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2008 (UNAUDITED)
|
|
ASSETS: |
|
Investments at cost |
|
Investments at value |
|
Foreign currency, at value (cost $0, $0, $53,252, and $1,281, respectively) |
|
Receivable for securities sold |
|
Dividend, interest, and tax reclaim receivables |
|
Total assets |
|
LIABILITIES: |
|
Payable for securities purchased |
|
Management fee payable |
|
Other accrued expenses |
|
Total liabilities |
|
NET ASSETS APPLICABLE TO INVESTORS’ BENEFICIAL INTERESTS |
|
34
|
| Domini Social |
| Domini |
| Domini PacAsia |
| Domini European |
| ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at cost |
| $ | 1,039,758,128 |
| $ | 118,714,235 |
| $ | 32,361,506 |
| $ | 19,371,824 |
|
Investments at value |
| $ | 1,092,003,618 |
| $ | 108,560,269 |
| $ | 30,366,742 |
| $ | 17,595,733 |
|
Foreign currency, at value (cost $0, $0, $53,252, and $1,281, respectively) |
|
| — |
|
| — |
|
| 53,795 |
|
| 1,286 |
|
Receivable for securities sold |
|
| — |
|
| 2,719,486 |
|
| — |
|
| 84,366 |
|
Dividend, interest, and tax reclaim receivables |
|
| 1,362,491 |
|
| 335,107 |
|
| 62,715 |
|
| 32,454 |
|
Total assets |
|
| 1,093,366,109 |
|
| 111,614,862 |
|
| 30,483,252 |
|
| 17,713,839 |
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for securities purchased |
|
| — |
|
| 341,123 |
|
| — |
|
| 287,616 |
|
Management fee payable |
|
| 277,070 |
|
| 72,427 |
|
| 19,485 |
|
| 10,688 |
|
Other accrued expenses |
|
| 118,328 |
|
| 294,547 |
|
| 3,636 |
|
| 1,786 |
|
Total liabilities |
|
| 395,398 |
|
| 708,097 |
|
| 23,121 |
|
| 300,090 |
|
NET ASSETS APPLICABLE TO INVESTORS’ BENEFICIAL INTERESTS |
| $ | 1,092,970,711 |
| $ | 110,906,765 |
| $ | 30,460,131 |
| $ | 17,413,749 |
|
SEE NOTES TO FINANCIAL STATEMENTS
35
DOMINI SOCIAL EQUITY TRUST
DOMINI EUROPEAN SOCIAL EQUITY TRUST
DOMINI PACASIA SOCIAL EQUITY TRUST
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2008 (UNAUDITED)
INVESTMENT INCOME: |
|
Dividends (net of foreign taxes of $0, $61,648, $36,029 and $8,440, respectively) |
|
Interest income |
|
Investment income |
|
EXPENSES: |
|
Management fee |
|
Custody fees |
|
Professional fees |
|
Trustees fees |
|
Shareholder communication |
|
Miscellaneous |
|
Total expenses |
|
Fees waived |
|
Net expenses |
|
NET INVESTMENT INCOME (LOSS) |
|
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY: |
|
NET REALIZED GAIN (LOSS) FROM: |
|
Investments |
|
Foreign currency |
|
Net realized gain (loss) |
|
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
|
Investments |
|
Translation of assets and liabilities in foreign currencies. |
|
Net change in unrealized appreciation (depreciation) |
|
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY |
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
|
36
|
| Domini Social |
| Domini European |
| Domini PacAsia |
| Domini European |
| ||||||||||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Dividends (net of foreign taxes of $0,$61,648, $36,029 and $8,440, respectively) |
| $ | 12,129,984 |
|
| $ | 2,424,748 |
|
| $ | 386,339 |
|
| $ | 290,707 |
|
| ||||
Interest income |
|
| 93,295 |
|
|
| 12,933 |
|
|
| 6,808 |
|
|
| 3,903 |
|
| ||||
Investment income. |
|
| 12,223,279 |
|
|
| 2,437,681 |
|
|
| 393,147 |
|
|
| 294,610 |
|
| ||||
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Management fee . |
|
| 1,857,024 |
|
|
| 483,563 |
|
|
| 112,317 |
|
|
| 62,072 |
|
| ||||
Custody fees |
|
| 102,355 |
|
|
| 183,202 |
|
|
| 70,224 |
|
|
| 62,536 |
|
| ||||
Professional fees |
|
| 21,961 |
|
|
| 77,461 |
|
|
| 11,726 |
|
|
| 11,856 |
|
| ||||
Trustees fees |
|
| 23,832 |
|
|
| 12,728 |
|
|
| 2,340 |
|
|
| 299 |
|
| ||||
Shareholder communication |
|
| 9,564 |
|
|
| 24,984 |
|
|
| 2,846 |
|
|
| 9,456 |
|
| ||||
Miscellaneous |
|
| 2,605 |
|
|
| 40,334 |
|
|
| 300 |
|
|
| 214 |
|
| ||||
Total expenses |
|
| 2,017,341 |
|
|
| 822,272 |
|
|
| 199,753 |
|
|
| 146,433 |
|
| ||||
Fees waived |
|
| (34,734 | ) |
|
| — |
|
|
| (81,608 | ) |
|
| (81,949 | ) |
| ||||
Net expenses . |
|
| 1,982,607 |
|
|
| 822,272 |
|
|
| 118,145 |
|
|
| 64,484 |
|
| ||||
NET INVESTMENT INCOME (LOSS) |
|
| 10,240,672 |
|
|
| 1,615,409 |
|
|
| 275,002 |
|
|
| 230,126 |
|
| ||||
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NET REALIZED GAIN (LOSS) FROM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investments |
|
| (48,118,309 | ) |
|
| 1,669,956 |
|
|
| 191,011 |
|
|
| (508,710 | ) |
| ||||
Foreign currency |
|
| — |
|
|
| (6,392 | ) |
|
| (58,009 | ) |
|
| (33,216 | ) |
| ||||
Net realized gain (loss) |
|
| (48,118,309 | ) |
|
| 1,663,564 |
|
|
| 133,002 |
|
|
| (541,926 | ) |
| ||||
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investments |
|
| (57,651,717 | ) |
|
| (20,585,418 | ) |
|
| (3,108,567 | ) |
|
| (1,463,628 | ) |
| ||||
Translation of assets and liabilities in foreign currencies. |
|
| — |
|
|
| 17,895 |
|
|
| 1,031 |
|
|
| (86 | ) |
| ||||
Net change in unrealized appreciation (depreciation) |
|
| (57,651,717 | ) |
|
| (20,567,523 | ) |
|
| (3,107,536 | ) |
|
| (1,463,714 | ) |
| ||||
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY |
|
| (105,770,026 | ) |
|
| (18,903,959 | ) |
|
| (2,974,534 | ) |
|
| (2,005,640 | ) |
| ||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
| $ | (95,529,354 | ) |
| $ | (17,288,550 | ) |
| $ | (2,699,532 | ) |
| $ | (1,775,514 | ) |
|
SEE NOTES TO FINANCIAL STATEMENTS
37
DOMINI SOCIAL EQUITY TRUST
DOMINI EUROPEAN SOCIAL EQUITY TRUST
DOMINI PACASIA SOCIAL EQUITY TRUST
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
|
| Domini Social Equity Trust |
| ||||
|
| SIX MONTHS ENDED JANUARY 31, 2008 (UNAUDITED) |
| YEAR ENDED JULY 31, 2007 |
| ||
INCREASE IN NET ASSETS: |
|
|
|
|
|
|
|
FROM OPERATIONS: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 10,240,672 |
| $ | 20,214,279 |
|
Net realized gain (loss) |
|
| (48,118,309 | ) |
| 363,584,469 |
|
Net change in unrealized appreciation (depreciation) |
|
| (57,651,717 | ) |
| (171,583,725 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
| (95,529,354 | ) |
| 212,215,023 |
|
TRANSACTIONS IN INVESTORS’ BENEFICIAL INTEREST: |
|
|
|
|
|
|
|
Additions |
|
| 67,455,206 |
|
| 149,773,706 |
|
Reductions |
|
| (175,025,703 | ) |
| (473,539,053 | ) |
Net Increase (Decrease) in Net Assets from Transactions in Investors’ Beneficial Interests |
|
| (107,570,497 | ) |
| (323,765,347 | ) |
Total Increase (Decrease) in Net Assets |
|
| (203,099,851 | ) |
| (111,550,324 | ) |
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of period |
|
| 1,296,070,562 |
|
| 1,407,620,886 |
|
End of period |
| $ | 1,092,970,711 |
| $ | 1,296,070,562 |
|
38
|
| Domini European |
| Domini PacAsia |
| Domini European PacAsia |
| ||||||||||||
|
| SIX MONTHS |
| YEAR ENDED |
| SIX MONTHS |
| FOR THE |
| SIX MONTHS |
| FOR THE |
| ||||||
INCREASE IN NET ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 1,615,409 |
| $ | 3,975,309 |
| $ | 275,002 |
| $ | 147,548 |
| $ | 230,126 |
| $ | 232,992 |
|
Net realized gain (loss) |
|
| 1,663,564 |
|
| 10,025,162 |
|
| 133,002 |
|
| 69,376 |
|
| (541,926 | ) |
| 59,488 |
|
Net change in unrealized appreciation (depreciation) |
|
| (20,567,523 | ) |
| 6,760,180 |
|
| (3,107,536 | ) |
| 1,114,179 |
|
| (1,463,714 | ) |
| (312,841 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
| (17,288,550 | ) |
| 20,760,651 |
|
| (2,699,532 | ) |
| 1,331,103 |
|
| (1,775,514 | ) |
| (20,361 | ) |
TRANSACTIONS IN INVESTORS’ BENEFICIAL INTEREST: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
| 14,926,266 |
|
| 78,695,157 |
|
| 9,140,144 |
|
| 26,495,325 |
|
| 6,506,308 |
|
| 14,712,073 |
|
Reductions |
|
| (20,234,044 | ) |
| (21,885,599 | ) |
| (2,986,730 | ) |
| (820,179 | ) |
| (1,381,957 | ) |
| (626,800 | ) |
Net Increase (Decrease) in Net Assets from Transactions in Investors’ Beneficial Interests |
|
| (5,307,778 | ) |
| 56,809,558 |
|
| 6,153,414 |
|
| 25,675,146 |
|
| 5,124,351 |
|
| 14,085,273 |
|
Total Increase (Decrease) in Net Assets |
|
| (22,596,328 | ) |
| 77,570,209 |
|
| 3,453,882 |
|
| 27,006,249 |
|
| 3,348,837 |
|
| 14,064,912 |
|
NET ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 133,503,093 |
|
| 55,932,884 |
|
| 27,006,249 |
|
| — |
|
| 14,064,912 |
|
| — |
|
End of period |
| $ | 110,906,765 |
| $ | 133,503,093 |
| $ | 30,460,131 |
| $ | 27,006,249 |
| $ | 17,413,749 |
| $ | 14,064,912 |
|
SEE NOTES TO FINANCIAL STATEMENTS
39
FINANCIAL HIGHLIGHTS
DOMINI SOCIAL EQUITY TRUST | |||||||||||||||||||
SIX MONTHS | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
| ||||||||||||||||
|
|
| YEAR ENDED JULY 31, |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| |||||||
Net assets (in millions) |
| $ | 1,093 |
| $ | 1,296 |
| $ | 1,408 |
| $ | 1,612 |
| $ | 1,527 |
| $ | 1,318 |
|
Total return |
|
| (8.05 | )% |
| 16.00 | % |
| 1.46 | % |
| 11.48 | % |
| 12.01 | % |
| 12.13 | % |
Ratio of net investment income (loss) to average net assets (annualized) |
|
| 1.65 | % |
| 1.44 | % |
| 1.48 | % |
| 1.92 | % |
| 1.25 | % |
| 1.32 | % |
Ratio of expenses to average net assets (annualized) |
|
| 0.32 | %(1) |
| 0.30 | %(1)(2) |
| 0.22 | %(2) |
| 0.23 | %(2) |
| 0.24 | %(2) |
| 0.23 | %(1)(2) |
Portfolio turnover rate |
|
| 37 | % |
| 126 | % |
| 12 | % |
| 9 | % |
| 8 | % |
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Reflects an expense reimbursement and fee waiver by the Manager of 0.01% for the six months ended January 31, 2008, 0.01% for the year ended July 31, 2007, and 0.01% for the year ended July 31, 2003. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 0.33% for the six months ended January 31, 2008, 0.31% for the year ended July 31, 2007, and 0.24% for the year ended July 31, 2003. |
(2) | Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratios would have been 0.29%, 0.21%, 0.22%, 0.24%, and 0.23% for the years ended July 31, 2007, 2006, 2005, 2004, and 2003, respectively. |
DOMINI EUROPEAN SOCIAL EQUITY TRUST | ||||||||||
|
| SIX MONTHS |
| YEAR |
| FOR THE PERIOD |
| |||
Net assets (in millions) |
| $ | 111 |
| $ | 134 |
| $ | 56 |
|
Total return |
|
| (13.21 | )% |
| 27.45 | % |
| 25.96 | %* |
Ratio of net investment income (loss) to average net assets (annualized) |
|
| 2.51 | % |
| 3.75 | % |
| 3.92 | % |
Ratio of expenses to average net assets (annualized) |
|
| 1.28 | % |
| 0.88 | %(1)(2) |
| 0.88 | %(1)(2) |
Portfolio turnover rate |
|
| 45 | % |
| 88 | % |
| 69 | %* |
|
|
|
|
|
|
|
|
|
|
|
* | Not Annualized |
(1) | Reflects a fee waiver by the Manager of 0.07% for the year ended July 31, 2007, and 0.47% for the period ended July 31, 2006. Had the Manager not waived its fee, the ratio of expenses to average net assets would have been 0.96% for the year ended July 31, 2007, and 1.35% for the period ended July 31, 2006. |
(2) | Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratios would have been 0.83% for the year ended July 31, 2007, and 0.77% for the period ended July 31, 2006. |
SEE NOTES TO FINANCIAL STATEMENTS
40
FINANCIAL HIGHLIGHTS
DOMINI PACASIA SOCIAL EQUITY TRUST | |||||||
|
| SIX MONTHS |
| FOR THE PERIOD |
| ||
Net assets (in millions) |
| $ | 30 |
| $ | 27 |
|
Total return |
|
| (8.16 | )% |
| 7.14 | %* |
Ratio of net investment income (loss) to average net assets (annualized) |
|
| 1.84 | % |
| 1.30 | % |
Ratio of expenses to average net assets (annualized) |
|
| 0.79 | %(1) |
| 0.89 | %(1)(2) |
Portfolio turnover rate |
|
| 45 | % |
| 41 | %* |
|
|
|
|
|
|
|
|
* | Not Annualized |
(1) | Reflects an expense reimbursement and fee waiver by the Manager of 0.54% for the six months ended January 31, 2008, and 1.19% for the period ended July 31, 2007. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 1.33% for the six months ended January 31, 2008, and 2.08% for the period ended July 31, 2007. |
(2) | Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratio would have been 0.77% for the period ended July 31, 2007. |
DOMINI EUROPEAN PACASIA SOCIAL EQUITY T RUST | |||||||
|
| SIX MONTHS |
| FOR THE PERIOD |
| ||
Net assets (in millions) |
| $ | 17 |
| $ | 14 |
|
Total return |
|
| (10.00 | )% |
| 4.38 | %* |
Ratio of net investment income (loss) to average net assets (annualized) |
|
| 2.78 | % |
| 4.82 | % |
Ratio of expenses to average net assets (annualized) |
|
| 0.78 | %(1) |
| 0.86 | %(1)(2) |
Portfolio turnover rate |
|
| 40 | % |
| 46 | %* |
|
|
|
|
|
|
|
|
* | Not Annualized |
(1) | Reflects an expense reimbursement and fee waiver by the Manager of 0.99% for the six months ended January 31, 2008, and 2.96% for the period ended July 31, 2007. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 1.77% for the six months ended January 31, 2008, and 3.82% for the period ended July 31, 2007. |
(2) | Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratio would have been 0.77% for the period ended July 31, 2007. |
SEE NOTES TO FINANCIAL STATEMENTS
41
DOMINI SOCIAL EQUITY TRUST
DOMINI EUROPEAN SOCIAL EQUITY TRUST
DOMINI PACASIA SOCIAL EQUITY TRUST
DOMINI EUROPEAN PACASIA SOCIAL EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2008 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Domini Social Trust was organized as a trust under the laws of the State of New York on June 7, 1989, and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Domini Social Trust consists of four separate series: Domini Social Equity Trust, Domini European Social Equity Trust, Domini PacAsia Social Equity Trust, and Domini European PacAsia Social Equity Trust (formerly Domini EuroPacific Social Equity Trust) (each a “Trust” and collectively the “Trusts”). The Declaration of Trust permits the Trustees to issue an unlimited number of beneficial interests in the Trusts. Each Trust seeks to provide its shareholders with long-term total return.
The Domini Social Equity Trust was designated as a series of the Domini Social Trust on June 7, 1989, and began investment operations on June 3, 1991. The Trust invests primarily in stocks of U.S. companies that meet Domini’s social and environmental standards.
The Domini European Social Equity Trust was designated as a series of the Domini Social Trust on August 1, 2005, and commenced investment operations on October 3, 2005. The Trust invests primarily in stocks of European companies that meet Domini’s social and environmental standards.
The Domini PacAsia Social Equity Trust was designated as a series of the Domini Social Trust on August 1, 2006, and commenced investment operations on December 27, 2006. The Trust invests primarily in stocks of Asia-Pacific companies that meet Domini’s social and environmental standards.
The Domini European PacAsia Social Equity Trust (formerly Domini EuroPacific Social Equity Trust) was designated as a series of the Domini Social Trust on August 1, 2006, and commenced investment operations on December 27, 2006. The Trust invests primarily in stocks of European and Asia-Pacific companies that meet Domini’s social and environmental standards.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates
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and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the Trusts’ significant accounting policies.
(A) Valuation of Investments. Securities listed or traded on national securities exchanges are valued at the last sale price reported by the security’s primary exchange or, if there have been no sales that day, at the mean of the current bid and ask price that represents the current value of the security. Securities listed on the NASDAQ National Market System are valued using the NASDAQ Official Closing Price (the “NOCP”). If an NOCP is not available for a security listed on the NASDAQ National Market System, the security will be valued at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price.
Securities for which market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the supervision of the Trusts’ Board of Trustees. Securities that are primarily traded on foreign exchanges generally are valued at the closing price of such securities on their respective exchanges, except that if the Trusts’ manager or submanager, as applicable, is of the opinion that such price would result in an inappropriate value for a security, including as a result of an occurrence subsequent to the time a value was so established, then the fair value of those securities may be determined by consideration of other factors (including the use of an independent pricing service) by or under the direction of the Board of Trustees or its delegates.
(B) Repurchase Agreements. The Trusts may enter into repurchase agreements with selected banks or broker-dealers. Each repurchase agreement is recorded at cost, which approximates fair value. The Trusts require that collateral, represented by securities (primarily U.S. government agency securities), in a repurchase transaction be maintained in a segregated account with a custodian bank in a manner sufficient to enable each Trust to obtain those securities in the event of a default of the counterparty. In the event of default or bankruptcy by another party to the repurchase agreement, retention of the collateral may be subject to legal proceedings.
(C) Foreign Currency Translation. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts on the date of valuation. Purchases and sales of securities, and income and expense items denominated in foreign currencies, are translated into U.S. dollar amounts on the respective dates of such transactions. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board of Trustees.
| Notes to Financial Statements | 43 |
The Trusts do not separately report the effect of fluctuations in foreign exchange rates from changes in market prices on securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in fair value of assets and liabilities other than investments in securities held at the end of the reporting period, resulting from changes in exchange rates.
(D) Foreign Currency Contracts. When the Trusts purchase or sell foreign securities they may enter into foreign exchange contracts to minimize foreign exchange risk from the trade date to the settlement date of the transactions. A foreign exchange contract is an agreement between two parties to exchange different currencies at an agreed-upon exchange rate on a specified date.
(E) Investment Transactions and Investment Income. Investment transactions are accounted for on trade date. Realized gains and losses from security transactions are determined on the basis of identified cost. Interest income is recorded on an accrual basis. Dividend income, net of any applicable withholding tax, is recorded on the ex-dividend date or for certain foreign securities, when the information becomes available to the Trusts.
(F) Federal Taxes. The Trusts will be treated as partnerships for U.S. federal income tax purposes and are therefore not subject to U.S. federal income tax. As such, investors in the Trusts will be taxed on their share of the applicable Trust’s ordinary income and capital gains. It is intended that the Trusts will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies.
44 | Notes to Financial Statements |
2. TRANSACTIONS WITH AFFILIATES
(A) Manager. Domini Social Investments LLC (Domini) is registered as an investment advisor under the Investment Advisers Act of 1940. The services provided by Domini consist of investment supervisory services, overall operational support, and administrative services. The administrative services include the provision of general office facilities and supervising the overall administration of the Trusts. For its services under the Management Agreements, Domini receives from each Trust a fee accrued daily and paid monthly at the annual rate below of the respective Trusts’ average daily net assets before any fee waivers:
Domini Social Equity Trust |
| 0.20% of the first $2 billion of net assets managed, |
(prior to November 30, 2006) |
| 0.19% of the next $500 million of net assets managed, and |
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| 0.18% of net assets managed in excess of $2.5 billion |
Domini Social Equity Trust |
| 0.30% of the first $2 billion of net assets managed, |
(effective November 30, 2006) |
| 0.29% of the next $1 billion of net assets managed, and |
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| 0.28% of net assets managed in excess of $3 billion |
Domini European Social Equity Trust, |
| 0.75% of the first $250 million of net assets managed, |
Domini PacAsia Social Equity Trust, and |
| 0.70% of the next $250 million of net assets managed, and |
Domini European PacAsia Social Equity Trust |
| 0.65% of net assets managed in excess of $500 million |
For the six months ended January 31, 2008, Domini voluntarily waived fees and reimbursed expenses as follows:
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| FEES WAIVED |
| EXPENSES |
Domini Social Equity Trust |
| $34,734 |
| — |
Domini European Social Equity Trust |
| — |
| — |
Domini PacAsia Social Equity Trust |
| $81,608 |
| — |
Domini European PacAsia Social Equity Trust |
| $62,072 |
| $19,877 |
(B) Submanager. Wellington Management Company, LLP (Wellington) provides investment submanagement services to the Trusts on a day-to-day basis pursuant to Submanagement Agreements with Domini. Domini pays Wellington from its management fees. Prior to November 30, 2006, SSgA Funds Management, Inc. provided these services to Domini Social Equity Trust.
3. INVESTMENT TRANSACTIONS
For the six months ended January 31, 2008, cost of purchases and proceeds from sales of investments, other than U.S. government securities and short-term obligations, were as follows:
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| PURCHASES |
| SALES |
Domini Social Equity Trust |
| $452,489,335 |
| $549,697,354 |
Domini European Social Equity Trust |
| 57,048,638 |
| 61,598,515 |
Domini PacAsia Social Equity Trust |
| 19,825,513 |
| 13,442,703 |
Domini European PacAsia Social Equity Trust |
| 11,641,698 |
| 6,539,609 |
| Notes to Financial Statements | 45 |
4. OTHER ACCOUNTING PRONOUNCEMENTS
On September 15, 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), “Fair Value Measurements.” The new accounting statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). SFAS No. 157 also stipulates that, as a market-based measurement, fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability, and establishes a fair value hierarchy that distinguishes between (a) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (b) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. As of January 31, 2008, management of the Trusts is currently assessing the impact, if any, that will result from adopting SFAS No. 157.
46 | Notes to Financial Statements |
PROXY VOTING INFORMATION
The Domini Funds have established Proxy Voting Policies and Procedures that the Funds use to determine how to vote proxies relating to portfolio securities. The Domini Funds’ Proxy Voting Policies and Procedures are available, free of charge, by calling 1-800-762-6814, by visiting www.domini.com/shareholder-advocacy/Proxy-Voting/index.htm, or by visiting the EDGAR database on the Securities and Exchange Commission’s (SEC) website at http://www.sec.gov. All proxy votes cast for the Domini Funds are posted to Domini’s website on an ongoing basis over the course of the year. An annual record of all proxy votes cast for the Funds during the most recent 12-month period ended June 30 can be obtained, free of charge, at www.domini.com, and on the EDGAR database on the SEC’s website at http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE INFORMATION
The Domini Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Domini Funds’ Forms N-Q are available on the EDGAR database on the SEC’s website at http://www.sec.gov. These Forms may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is also available to be viewed at www.domini.com.
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DOMINI FUNDS
P.O. Box 9785
Providence, RI 02940-9785
1-800-582-6757
www.domini.com
Investment Manager or Sponsor:
Domini Social Investments LLC
536 Broadway, 7th Floor
New York, NY 10012
Investment Submanagers:
Domini Social Equity Trust
Domini European Social Equity Trust
Domini PacAsia Social Equity Trust
Domini European PacAsia Social Equity Trust
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Distributor:
DSIL Investment Services LLC
536 Broadway, 7th Floor
New York, NY 10012
1-800-762-6814
Transfer Agent and Custodian:
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Independent Registered Public Accounting Firm:
KPMG LLP
99 High Street
Boston, MA 02110
Legal Counsel:
Bingham McCutchen LLP
150 Federal Street
Boston, MA 02110
Item 2. Code of Ethics.
(a) Not applicable to a semi-annual report.
(c) Not applicable.
(d) Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable to a semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable to a semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to the registrant.
Item 6. Schedule of Investments.
The Schedule of Investments is included as part of the report to stockholders filed under Item 1.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may submit recommendations for nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) Within 90 days prior to the filing of this report on Form N-CSR, Amy L. Thornton, the registrant’s President and Principal Executive Officer, and Carole M. Laible, the registrant’s Treasurer and Principal Financial Officer, reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) of the Investment Company Act of 1940) and evaluated their effectiveness. Based on their evaluation, Ms. Thornton and Ms. Laible determined that the disclosure controls and procedures adequately ensure that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods required by the Securities and Exchange Commission’s rules and forms, including ensuring that information required to be disclosed in this report on Form N-CSR is accumulated and communicated to the registrant’s management, including Ms. Thornton and Ms. Laible, as appropriate to allow timely decisions regarding the required disclosures.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable to a semi-annual report.
(a)(2) Separate certifications required by Rule 30a-2(a) under the Investment Company Act of 1940 for each principal executive officer and principal financial officer of the registrant are filed herewith.
(a)(3) Not applicable to the registrant.
(b) A single certification required by Rule 30a-2(b) under the Investment Company Act of 1940, Rule 13a-14b or Rule 15d-14(b) under the Securities Exchange Act of 1934, and Section 1350 of Chapter 63 of Title 18 of the United States Code for the chief executive officer and the chief financial officer of the registrant is filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DOMINI SOCIAL TRUST |
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By: | /s/ Amy L. Thornton |
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| Amy L. Thornton |
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| President |
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Date: April 9, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Amy L. Thornton |
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| Amy L. Thornton |
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| President (Principal Executive Officer) |
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Date: April 9, 2008
By: | /s/ Carole M. Laible |
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| Carole M. Laible |
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| Treasurer (Principal Financial Officer) |
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Date: April 9, 2008