| Symbol | DSBFX |
| Daily NAV Change | $0.02 (0.18%) |
The Fund seeks to provide its shareholders with a high level of current income and total return.
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:
With respect to noncorporate debt instruments, the Fund seeks to focus on three key themes:
In particular, the Fund seeks noncorporate debt instruments that support:
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.
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.
Who Should Invest
Who Should Not Invest
All data as of 6/30/17 unless otherwise noted.
On January 7, 2015, Wellington Management Company LLP replaced Seix Investment Advisers as the subadvisor of the Domini Social Bond Fund.
1. Until 11/30/17, Domini Impact 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 Fund's performance, quoted above, 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. 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. 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. 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.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.
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 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.
| YTD | 1 Yr | 3 Yr* | 5 Yr* | 10 Yr* | Since Inception (6/1/00)* | |
|---|---|---|---|---|---|---|
| DSBFX | 2.42% | 0.37% | 2.12% | 1.60% | 3.67% | 4.27% |
| Bloomberg Barclays U.S. Aggregate | 2.28% | -0.31% | 2.48% | 2.21% | 4.48% | 5.21% |
| YTD | 1 Yr | 3 Yr* | 5 Yr* | 10 Yr* | Since Inception (6/1/00)* | |
|---|---|---|---|---|---|---|
| DSBFX | 2.42% | 0.37% | 2.12% | 1.60% | 3.67% | 4.27% |
| Bloomberg Barclays U.S. Aggregate | 2.28% | -0.31% | 2.48% | 2.21% | 4.48% | 5.21% |
| DSBFX | BBUSA | |
|---|---|---|
| 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% |
| DSBFX | BBUSA | |
|---|---|---|
| 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.
Annual Expense Ratio: Gross: 1.11% / Net: 0.85%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 0.95% until 11/30/17, subject to earlier modification by the Fund’s Board of Trustees. See prospectus for details. The Funds’ performance would have been lower had these fees not been waived.
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. 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.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.
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 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.
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.
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).
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.
Although the Domini Impact Bond Fund Iinvestor shares are 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.
| ISSUER | % OF PORTFOLIO |
|---|---|
| Fannie Mae TBA 30 YR (3.5% due 8/14/2047) | 5.1% |
| Fannie Mae (1.5% due 6/22/2020) | 3.2% |
| Fannie Mae TBA 30 YR (3.5% due 7/25/2046) | 3.0% |
| Fed Hm Ln PC Pool G08741 (3.0% due 1/1/2047) | 2.4% |
| Ginnie Mae II TBA 30 YR (3.0% due 2/20/2047) | 2.0% |
| Fannie Mae (5.625% due 7/15/2037) | 2.0% |
| Freddie Mac TBA 30 YR (3.5% due 9/15/2046) | 1.6% |
| Fannie Mae TBA 15 YR (3.0%% due 7/18/2032) | 1.6% |
| Ginnie Mae II TBA 30 YR (3.5% due 8/21/2047) | 1.5% |
| Freddie Mac TBA 30 YR (3.5% due 8/14/2047) | 1.5% |
| TOTAL | 23.9% |
| SECTOR | % OF PORTFOLIO |
|---|---|
| Mortgage Backed Securities | 55.1% |
| Investment Grade Credit | 30.7% |
| Commercial Mortgage Backed Securities | 7.1% |
| Bank Loans | 6.7% |
| U.S. Govt Agencies | 6.1% |
| High Yield Credit | 2.5% |
| Developed Non U.S. Dollar Denom. | -0.1% |
| Tax Exempt Municipal | 2.3% |
| Asset Backed Securities | 1.0% |
| Cash & Cash Equivalents | -11.6% |
| Total | 100% |
View the most recent quarterly holdings report filed with the Securities and Exchange Commission.
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. 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. 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. 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.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.
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).
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 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.
All data as of 6/30/17 unless otherwise noted.
| Aaa | 6.12% |
| Aa | 67.97% |
| A | 9.25% |
| Baa | 16.65% |
| Ba | 7.07% |
| B | 1.72% |
| Below B | 0.25% |
| Cash & Cash Offsets2 | -11.59% |
| Not Rated3 | 2.55% |
| DSBFX | BUSA4 | |
|---|---|---|
| Total Number of Holdings5 | 386 | 9,348 |
| Years to Worst | 9.17 | 7.88 |
| Effective Duration (years) | 5.84 | 5.88 |
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. 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. 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. 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.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.
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).
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 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.
*Average annual total returns.
†Bloomberg Barclays U.S. Aggregate Index
Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. 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. 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. 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.
Annual Expense Ratio – Gross: 1.11% / Net: 0.85% (Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 0.95% until 11/30/17, subject to earlier modification by the Fund’s Board of Trustees. Fund performance would have been lower had these fees not been waived. See prospectus for details.)
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.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.
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).
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.
Although the Fund’s Institutional shares are 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. View the most current list of the Domini Impact Bond Fund 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 Bond 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.
This material must be preceded or accompanied by a current prospectus. Please read it carefully before investing.
The Domini Impact Bond seeks to have a positive impact across multiple key themes, including affordable housing, education and climate mitigation. In the second quarter, securities Domini characterizes as “high impact” represented 14.7% of the Fund’s total portfolio.
The Domini Social Bond seeks to have a positive impact across multiple key themes, including affordable housing, education and climate mitigation. In the second quarter, securities Domini characterizes as “high impact” represented 14.7% of the Fund’s total portfolio, including the following two examples, which were added to the portfolio during the quarter.
Although our engagement work has historically focused on corporations, leveraging our rights as shareholders, we are also interested in opportunities to deepen the impact of the Domini Social Bond Fund through engagements with issuers and standard setters. To date, these engagements have focused on green bonds, designed to finance projects and activities that address climate change or serve other environmentally beneficial purposes.
Domini has a longstanding policy to avoid investment in the manufacturers of weapons, including military weapons and civilian firearms. This policy extends to firms that derive a significant percentage of revenues from the sale of firearms. We believe this industry is inherently damaging to society, due to the intersection between a particularly dangerous product and the extraordinary pressures to maximize profits and increase market share—pressures which are exponentially heightened for publicly traded companies.
Fixed-income investments provide an important opportunity to create public goods, address a wide range of economic disparities in our society, and to fill certain capital gaps – funding needs that have often received insufficient attention from investors. We seek to address some of these disparities through the investments of the Domini Social Bond Fund, while simultaneously seeking to achieve competitive returns for our Fund’s investors.
The Domini Impact Bond Fund is not insured and is subject to market risks, including interest rate and credit risks. You may lose money. During periods of rising interest rates, bond funds can lose value. The Domini Impact 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 Impact Bond Fund's community investments may be unrated and carry greater credit risks than its other investments.
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.
Investor Shares Performance Commentary
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.
Dowload Commentary as a PDF.
Total Returns as of March 31, 2017
2017
2017
2017
2017
Year
Year*
Year*
Year*
(6/1/00)*
Market Overview
Global bond markets generated solid gains over the first quarter amid heightened political uncertainty. Robust economic data and continued demand for yield-producing assets supported credit markets, and spreads tightened further. In the US, Republicans’ failure to repeal and replace the Affordable Care Act cast doubt on prospects for other policy agendas, reversing some of the post-election selloff in US Treasuries. The UK took the next step in the Brexit process as Prime Minister May triggered Article 50 – setting the stage for the nation’s departure from the EU – and gilt yields declined. Most currencies strengthened versus the US dollar despite the looming risk of protectionist US trade policies and expectations for additional policy tightening from the Federal Reserve.
Monetary policy developments pointed to continued accommodation outside the US. The Fed hiked rates in March and projected two additional hikes this year. Market participants judged the Fed’s statement after its March meeting as dovish, with one dissenting vote and no mention of tapering mortgage reinvestments. Minutes from the Bank of Japan’s January meeting revealed a commitment to maintain a zero-yield policy on 10-year Japanese government bonds. Meanwhile, the European Central Bank announced its intention to continue the pace of bond purchases at 60 billion euros per month through at least December 2017 and pushed back against the notion of initiating rate hikes prior to the end of quantitative easing.
The US economy demonstrated continued strength with solid employment data and confidence surveys, along with a healthy housing market. European data showed broad-based strength across manufacturing and services sectors despite elevated political uncertainty; the Eurozone’s composite PMI rose to its highest level in nearly six years. In Japan, a weak yen helped export growth, manufacturing expanded, and inflation picked up. China’s economic cycle remains strong, led by construction. Surging imports and stable exports led to the nation’s first trade deficit in three years.
Performance Commentary
The Fund’s Investor shares modestly underperformed the Bloomberg Barclays U.S. Aggregate Bond Index for the first quarter, returning 0.80% vs. the benchmark’s 0.82% performance.
In the first quarter, the Fund’s subadvisor, Wellington Management, held modest opportunistic interest rate positions, which had a positive impact on the Fund’s relative performance. The Fund was positioned for rising inflation expectations as the Fund’s subadvisor continued to believe that the market was underpricing inflation expectations. This positioning was neutral for relative performance, as inflation-protected instruments modestly outperformed nominal Treasuries, as markets balanced continued economic strength with heightened political uncertainty, both domestically and globally.
The Fund had an overall underweight position in investment-grade credit during the quarter, as the submanager believed there were better opportunities in other sectors. Within investment grade corporate bonds, the Fund maintained overweight positions in US financials, particularly large money center banks, and in taxable municipals, both of which contributed positively to relative performance. The investment grade credit sector outperformed on an excess return basis for the quarter, as corporate spreads tightened on expectations for the new administration’s “business-friendly” policy agendas, including deregulation. Overall, credit positioning was a positive contributor to relative results for the quarter.
The Fund held an overweight to agency Mortgage Backed Securities (MBS)—which also contributed positively to relative performance for the quarter—as the subadvisor believed MBS to be more attractively valued than US Treasuries (Domini’s Impact Investment Standards prohibit investment in U.S. Treasuries). However, the subadvisor also believes this view is balanced by higher interest rate volatility and risks of more imminent Fed balance sheet reductions. The Fund maintained an allocation to Collateralized Mortgage Obligation (CMO) and FNMA Delegated Underwriting and Servicing (DUS) bonds, which the subadvisor believes have attractive income and convexity profiles.
The Fund held an overweight to high quality Commercial Mortgage-Backed Securities (CMBS) based on attractive valuations. New issue CMBS spreads broadly tightened, but there were dramatic performance differences that were primarily based on retail exposure, given the steady stream of negative headlines emphasizing poor sales trends and store closures at some retailers. The Fund’s positioning in high quality CMBS was neutral for performance this quarter.
The Fund’s subadvisor continued to favor bank loans based on attractive valuations and low default expectations, and maintained an allocation to BB rated high yield issuances. Additionally, the Fund’s subadvisor used high yield derivatives as a source of liquidity and to manage overall portfolio risk. High yield generated strong gains despite heightened political uncertainty, declining oil prices, and tighter monetary policy. Bank loans also generated a positive total return, benefitting from their floating rate structure amid expectations for additional Fed rate hikes and rising rates in the near term. High yield positioning was beneficial to relative performance overall.
Community & Environmental Impact