|
Investment Objective
The Domini Social Bond Fund seeks to provide its shareholders with a
high level of current income and total return by investing in bonds and other
debt instruments that meet the Fund's social and environmental standards.
Investment Strategy
The Fund normally invests at least 85% of assets in intermediate-term,
investment-grade fixed-income securities, including government agency,
corporate, mortgage-backed and asset-backed securities, taxable municipal
bonds, and U.S. dollar-denominated bonds issued by non-U.S. entities.
The Fund seeks to invest up to 10% of its assets in debt instruments
and other investments that provide a high level of community impact. These
investments may be illiquid, unrated, and may carry greater credit risks than
its other holdings.
Management
The Fund’s investment manager is Domini Social Investments and its submanager
is Seix Advisors LLC, a wholly-owned subsidiary of RidgeWorth Capital
Management, Inc. Seix Advisors LLC uses a team of investment professionals
supervised by James Keegan to manage the Fund.
|
Social and Environmental Standards
The Fund's holdings are evaluated based on their performance in the
following areas: the environment, diversity, community involvement, employee
relations, and product safety and usefulness. The Fund seeks to
avoid issuers that derive significant revenues by manufacturing tobacco
products, alcoholic beverages, or gambling equipment, or through ownership of
gambling enterprises. The Fund also
seeks to avoid issuers that Domini determines have a significant direct
ownership share in, or operate, nuclear power plants, or are major military
weapons manufacturers. The Fund also
excludes U.S. Treasuries because they finance the purchase of nuclear
weapons. However, the fund does invest in obligations of U.S. government
agencies.
Community Economic Development
The Fund's community economic development focus is in the areas of small
business loans and affordable housing for the economically disadvantaged.
Investor Profile
Who Should Invest
· Investors seeking a high level of current
income and total return
· Investors seeking exposure to the bond
market to diversify their portfolio
· Investors who wish to support the Fund's
socially responsible investment standards and its community development
emphasis
Who Should Not Invest
· Investors unwilling or unable to accept
fluctuations in share price due to risks associated with the bond market
|
|
1Until November 30, 2007, Domini Social Investments LLC has
contractually agreed to waive certain fees and/or reimburse certain expenses,
including management fees, so that the Fund's expenses will not exceed, on a
per annum basis, 0.95% of its average daily net assets.
The Domini Social Bond Fund is not insured
and is subject to market risks, including interest rate and credit risks.
During periods of rising interest rates, bond funds can lose value. The
Domini Social Bond Fund currently holds a large percentage of its portfolio
in mortgage-backed securities. During periods of falling interest rates,
mortgage-backed securities may prepay the principal due, which may lower the
Fund’s return by causing it to reinvest at lower interest rates. Some of the
Domini Social Bond Fund's community development investments may be unrated and
carry greater credit risks than its other investments.
Although
the Domini Social Bond Fund is no-load, certain fees and expenses apply to a
continued investment and are described in the prospectus The
composition of the Fund's portfolio is subject to change.
|
