Domini Impact Bond Fund ℠ - Investor Shares

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as of 11/16/2018

Quick Facts

$10.78

Daily Price (NAV)
Symbol
DSBFX
Daily NAV Change
$0.02 (0.19%)

Manager:

Domini Impact Investments LLC

Submanager:

Wellington Management Company LLP

Symbol:

DSBFX

CUSIP:

257132209

Fund Type:

Investment-grade bond fund subject to Domini’s social and environmental standards.

Inception Date:

6/1/2000

Net Assets:

Fund: $153.6 Million

Investor shares: $140.2 Million

as of 9/30/18

Annual Expense Ratio: 1

Gross: 1.10%

Net: 0.87%

Initial Sales Fee:

None (no-load)

Minimum Initial Investment:

$2,500 for non-retirement accounts

$1,500 for IRAs, custodial accounts and accounts opened with an automatic investment plan

Fund Distributions

Dividends:

Accumulated Daily, Distributed Monthly

Capital Gains:

Distributed Annually

Investor Shares Overview

Investment Objective

The Fund seeks to provide its shareholders with a high level of current income and total return.  

Investment Strategy

As a primary strategy, the Fund’s investment approach incorporates Domini’s social and environmental standards. 

The Fund normally invests at least 80% of its assets in investment-grade fixed-income securities, including government, corporate, mortgage-backed and asset-backed securities, and U.S. dollar-denominated bonds issued by non-U.S. entities.  The Fund maintains an effective duration within two years (plus or minus) of the portfolio duration of the securities comprising the Bloomberg Barclays U.S. Aggregate Bond Index­­.

Domini evaluates potential corporate debt instruments against social and environmental standards based on:

  • the businesses in which the issuer engages
  • the quality of its relations with key stakeholders, including communities, customers, ecosystems, employees, investors, and suppliers

With respect to noncorporate debt instruments, the Fund seeks to focus on three key themes:

  • Increasing access to capital for those historically underserved by the mainstream financial community
  • Creating public goods for those most in need
  • Filling capital gaps left by current financial practice

In particular, the Fund seeks noncorporate debt instruments that support:

  • Affordable housing
  • Small business development
  • Community revitalization
  • Rural Development
  • Education
  • The environment
  • Healthcare

Domini may determine that a security is eligible for investment even if its profile reflects a mixture of positive and negative social and environmental characteristics. Please see Domini’s Impact Investment Standards for further details.

Management

The Fund is managed through a two-step process designed to capitalize on the strengths of Domini Impact Investments and Wellington Management Company. Domini sets social and environmental guidelines and objectives for each asset class, and develops an approved universe of companies, and Wellington utilizes proprietary analytical tools to manage the portfolio. Wellington Management Company has been serving as submanager of the Fund since January 7, 2015.  Campe Goodman, CFA, is primarily responsible for the day-to-day management of the Fund, assisted by other members of Wellington Management's US broad market team.

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 responsible investment standards 

Who Should Not Invest

  • Investors unwilling or unable to accept fluctuations in share price due to risks associated with the bond market

Risks

An investment in the Domini Impact Bond Fund is not a bank deposit and is not insured. You may lose money. An investment in the Fund is also subject to credit, interest rate, liquidity, and market risks.

During periods of rising interest rates, bond funds can lose value. Some of the Fund's community development investments may be unrated and may carry greater credit risks than the Fund’s other holdings. The 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.

The Fund’s investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

The Fund’s investments in TBA (To Be Announced) securities involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation, which can adversely affect the Fund’s results.

The Fund may hold a substantial portion of its assets in the direct obligations of U.S. government agencies and government-sponsored entities, including Fannie Mae and Freddie Mac, and in the mortgage-backed securities of Government National Mortgage Association (Ginnie Mae), Fannie Mae, and Freddie Mac. Ginnie Mae is a wholly owned government corporation that guarantees privately issued securities backed by pools of mortgages insured by the Federal Housing Administration, the Department of Veterans Affairs, and the Department of Agriculture under the Rural Housing Service Program. Fannie Mae and Freddie Mac are government-chartered corporations whose mandate is to enhance liquidity in the secondary mortgage markets. Ginnie Maes are guaranteed by the full faith and credit of the U.S. Treasury as to the timely payment of principal and interest. Freddie Macs and Fannie Maes are backed by their respective issuer only, and are not guaranteed or insured by the U.S. government or the U.S. Treasury.

The reduction or withdrawal of historical financial market support activities by the U.S. Government and Federal Reserve, or other governments/central banks could negatively impact financial markets generally, and increase market, liquidity and interest rate risks which could adversely affect the Fund’s returns.

 

1. Domini has contractually agreed to waive certain fees and/or reimburse certain ordinary operating expenses in order to limit Investor share expenses to 0.87% of its average daily net assets per annum until 11/30/18, absent an earlier modification by the Fund’s Board. See prospectus for details. The Fund’s performance would have been lower had these fees not been waived.

On January 7, 2015, Wellington Management Company LLP replaced Seix Investment Advisers as the subadviser of the Domini Impact Bond Fund.

Investors may meet the minimum initial investment amount by aggregating up to three separate accounts within the Institutional share class of a Fund.

The Fund may change any of the policies described above at any time.

Although the Fund’s Investor shares are no-load, certain fees and expenses apply to a continued investment and are described in the prospectus. 

The Fund's returns, quoted above, represent past performance after all expenses, which is no guarantee of future results. Investment return, principal value, and yield will 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. Each Fund charges a 2.00% redemption fee on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. See the applicable prospectus for further information. 

The performance quoted above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Domini Impact Bond Fund is not a bank deposit and is not insured. You may lose money. An investment in the Fund is subject to market, sector concentration, style, and foreign investing risks. 

Performance

Investor Shares Performance

Month-End Returns as of 10/31/2018
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX -2.60% -2.18% 1.36% 1.37% 3.09%
Bloomberg Barclays U.S. Aggregate -2.38% -2.05% 1.04% 1.83% 3.94%

*Average annual total returns.

Quarter-End Returns as of 9/30/2018
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX -1.70% -1.22% 1.66% 1.67% 2.99%
Bloomberg Barclays U.S. Aggregate -1.60% -1.22% 1.31% 2.16% 3.77%

*Average annual total returns.

Calendar Year Returns
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DSBFX BBUSA
2017 3.85% 3.54%
2016 3.44% 2.65%
2015 -0.46% 0.55%
2014 3.74% 5.97%
2013 -1.97% -2.02%
2012 2.50% 4.21%
2011 5.85% 7.84%
2010 4.74% 6.56%
2009 5.77% 5.93%
2008 5.69% 5.24%
2007 6.00% 6.96%
2006 3.38% 4.33%
2005 1.56% 2.43%
2004 2.81% 4.34%
2003 2.31% 4.11%
2002 8.85% 10.27%
2001 8.34% 8.42%
Quarterly Returns
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DSBFX BBUSA
2nd Qtr 2018 -0.11% -0.16%
1st Qtr 2018 -1.45% -1.46%
4th Qtr 2017 0.48% 0.39%
3rd Qtr 2017 0.90% 0.85%
2nd Qtr 2017 1.61% 1.45%
1st Qtr 2017 0.80% 0.82%
4th Qtr 2016 -3.21% -2.98%
3rd Qtr 2016 1.25% 0.46%
2nd Qtr 2016 2.36% 2.21%
1st Qtr 2016 3.13% 3.03%
4th Qtr 2015 -0.51% -0.57%
3rd Qtr 2015 1.15% 1.23%
2nd Qtr 2015 -2.07% -1.68%
1st Qtr 2015 1.01% 1.61%
4th Qtr 2014 1.08% 1.79%
3rd Qtr 2014 -0.09% 0.17%
2nd Qtr 2014 1.35% 2.04%
1st Qtr 2014 1.36% 1.84%
4th Qtr 2013 -0.39% -0.14%
3rd Qtr 2013 0.68% 0.57%
2nd Qtr 2013 -2.24% -2.32%
1st Qtr 2013 -0.02% -0.12%

*Average annual total returns.

On January 7, 2015, Wellington Management Company LLP replaced Seix Investment Advisers as the subadvisor of the Domini Social Bond Fund.

Institutional shares were not offered prior to 11/30/2011. All performance information for time periods beginning prior to 11/30/2011 is the performance of the Investor shares, which has not been adjusted to reflect the lower expenses of the Institutional shares.

Annual Expense Ratio – Gross: 1.10% / Net: 0.87%. Per current prospectus. Domini has contractually agreed to waive certain fees and/or reimburse certain ordinary operating expenses in order to limit Investor share expenses to 0.87% of its average daily net assets per annum until 11/30/18, absent an earlier modification by the Fund’s Board. See prospectus for details. The Fund’s performance would have been lower had these fees not been waived. 

Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. The returns reflect any applicable expense waivers in effect during the periods shown. Without such waivers, Fund performance would be lower. Investment return, principal value, and yield will fluctuate.  Your shares, when redeemed, may be worth more or less than their original cost. Select the Performance Tab above for more complete performance information, including returns current to the most recent month-end, which may be lower or higher than the performance data quoted. A 2.00% redemption fee applies on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. See the prospectus for further information.   

An investment in the Domini Impact Bond Fund is not a bank deposit and is not insured. You may lose money. An investment in the Domini Impact Bond Fund is subject to credit, interest rate, liquidity, and market risks. Select the Overview tab above or see the prospectus for more information on risk.

The performance above does not reflect the deduction of fees and taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested.

Although the Domini Impact Bond Fund Investor shares are no-load, certain fees and expenses apply to a continued investment and are described in the prospectus. 

The Bloomberg Barclays U.S. Aggregate Index ("BBUSA") is an index representing securities that are U.S. domestic, taxable, and dollar denominated and covering the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities. You cannot invest directly in an index.

Holdings

Ten Largest Holdings as of 9/30/2018
Issuer % of Portfolio
Fannie Mae TBA 30-Yr (3.5% due 10/11/2048) 4.13%
Ginnie Mae II TBA 30-Yr (3.5% due 10/18/2048) 3.06%
Fannie Mae (1.5% due 6/22/2020) 3.03%
Japan Treasury Discount Bill (0% due 10/9/2018) 2.48%
Fannie Mae (5.625% due 7/15/2037) 2.33%
Ginnie Mae II TBA 30-Yr (3% due 10/18/2048) 1.86%
Freddie Mac TBA 30-Yr (4% due 10/11/2048) 1.82%
Freddie Mac Pool G08816 (3.5% due 6/1/2048) 1.72%
Ginnie Mae II TBA 30-Yr (4% due 10/18/2048) 1.30%
Fannie Mae Pool BE4435 (3% due 11/1/2046) 1.22%
Total 22.93%
Sector Weightings as of 9/30/2018
Sector % of Portfolio
Mortgage Backed Securities 43.31%
Investment Grade Credit 26.35%
U.S. Government Agency Obligations 9.25%
Commercial Mortgage Backed Sec 6.72%
Bank Loans 4.73%
Foreign Government Obligations 3.50%
High Yield Credit 3.00%
Tax Exempt Municipal 1.14%
Developed Non-US Dollar Denominated 0.86%
Asset Backed Securities 0.48%
Emerging Market Debt 0.30%
Certificates of Deposit 0.29%
Options 0.06%
Total 100.00%

*Portfolio Holdings as of 6/30/18 excluding cash & cash equivalents, cash offsets, futures, and swaps, with the exception of short-term U.S. Agency Bonds and Certificates of Deposit.

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

Formerly the Domini European PacAsia Social Equity Fund.

View Complete Portfolio Holdings

The composition of the Fund’s portfolio is subject to change.  The Domini Funds maintain portfolio holdings disclosure policies that govern the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds. 

Characteristics

All data as of 6/30/18 unless otherwise noted.

Portfolio Composition by Credit Quality1

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CREDIT-QUALITY RANKING % OF PORTFOLIO
AAA/Aaa 3.76%
AA/Aa 64.45%
A 7.97%
BBB/Baa 19.28%
BB/Ba 6.35%
B 4.83%
CCC/Caa or Lower 0.03%
Not Rated2 3.34%

Portfolio Statistics*

Swipe to view table
 Fund BBUSA3
Total Number of Holdings4 405 10,113
Years to Worst 9.14 8.21
Effective Duration (years) 5.83 5.82

1. Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Credit-quality ratings for each issue are obtained from Moody's Investors Service (Moody's) and Standard & Poor's (S&P). When two bonds receive different ratings from Moody’s and S&P, we take the lower of the two ratings into consideration. Ratings do not apply to the Fund itself or to Fund shares. Ratings may change.

3. Securities that are not rated by either agency are listed as "Not Rated."

4. Bloomberg Barclays U.S. Aggregate Index 5. Excludes currency forwards, currency futures, currency options and cash offsets.

*These statistics are provided by Wellington Management as calculated by its proprietary portfolio management system.

The composition of the Fund’s portfolio is subject to change. View the most current list of the Domini Impact Bond Fund's holdings. The Domini Funds maintain portfolio holdings disclosure policies that govern the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds.

The Bloomberg Barclays U.S. Aggregate Index ("BBUSA") is an index representing securities that are U.S. domestic, taxable, and dollar denominated and covering the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities. You cannot invest directly in an index.

Check the background of DSIL Investment Services LLC and its investment professionals on FINRA's BrokerCheck. Before investing, consider the Domini Funds’ investment objectives, risks, charges, and expenses. View or order a prospectus. Read it carefully.

DSIL Investment Services LLC (DSILD) distributor, Member FINRA.

Domini Impact Investments LLC (Domini) is the Funds’ investment manager. The Funds are subadvised by unaffiliated entities.

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