Domini Impact Bond Fund ℠ - Investor Shares

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as of 11/26/2021

Quick Facts

$11.90

Daily Price (NAV)
Symbol
DSBFX
Daily NAV Change
$0.08 (0.68%)

Adviser

Domini Impact Investments LLC

Subadviser

Wellington Management Company LLP

CUSIP

257132209

Fund Type

Intermediate, investment-grade fixed income

Fund Objective

Current income and total return

Inception Date

6/1/2000

Net Assets

Fund: $268.9 million
Investor shares: $152.3 million
as of 9/30/21

Annual Expense Ratio 1

Gross: 1.15% / Net: 0.87%
Per current prospectus.

Front-End Sales Charge (Load)

None

Minimum Initial Investment

$2,500 for standard accounts
$1,500 for retirement accounts, custodial accounts, and accounts opened with an automatic investment plan

Fund Distributions

Dividends

Accumulated daily, distributed monthly

Capital Gains

Distributed annually

We’re proud to receive this 2021 fixed income award.


Read more about the history of the fund and its impact in a recent Environmental Finance interview with our CEO, Carole Laible.

Learn more about the details of this award.

Fund Fact Sheet

Overview

Fixed-income investments are particularly well-suited for addressing a wide range of economic disparities in our society. The Domini Impact Bond Fund seeks to help build healthy and vibrant communities by directing capital to where it is needed most, while providing its shareholders with a high level of current income and total return.

Investment Strategy

The Fund normally invests at least 80% of its assets in investment-grade fixed-income securities, including government and agency bonds, corporate debt, mortgage- and other 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.

The Fund is managed through a two-step process. Domini sets social and environmental guidelines and objectives for each asset class and develops an approved universe of securities. Wellington Management Company, the Fund's subadviser, constructs and manages a portfolio of Domini-approved securities using proprietary analytical tools. Wellington Management has served as subadviser 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.

Learn more

Impact Investment Standards

Domini evaluates current and potential corporate debt investments against its social and environmental standards based on the businesses in which their issuers engage, as well as the quality of their relations with key stakeholders, including ecosystems, communities, customers, employees, suppliers, and investors.

With respect to non-corporate debt, Domini seeks to focus its evaluations 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

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.

Learn more

Community Investing

The Domini Impact Bond Fund seeks impact across a broad range of of social and environmental issues that affect communities. The Fund seeks investments that support:

  • Affordable housing, including access to affordable mortgage credit and rental properties, especially in low-income communities.
  • Affordable, high-quality and accessible healthcare across health systems, including support for underserved and aging communities.
  • Economic development and the creation of public goods, including basic infrastructure and transportation systems, nonprofit education facilities, and support for business and job creation and rural agriculture.
  • The transition to a low-carbon future, including energy efficiency, renewable energy, and green infrastructure projects.

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 committed to the Fund's social and environmental 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 insured and is subject to certain risks, including impact investing, portfolio management, style risk, information, market, recent events, interest rate and credit risks. The Adviser’s evaluation of environmental and social factors in its investment selections and the timing of the Subadviser’s implementation of the Adviser’s investment selections will affect the Fund’s exposure to certain issuers, industries, sectors, regions, and countries and may impact the relative financial performance of the Fund depending on whether such investments are in or out of favor. The value of your investment may decrease if the Adviser’s or Subadviser’s judgement about Fund investments does not produce the desired results. There is a risk that information used by the Adviser to evaluate environmental and social factors, may not be readily available or complete, which could negatively impact the Adviser’s ability to evaluate such factors and Fund performance. The market value of Fund investments will fluctuate and you may lose money. The public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The value of your investment will fluctuate with changes in interest rates and could decline if an issuer’s credit rating falls, it goes bankrupt or it fails to pay, or otherwise defaults on payments of interest or principal.

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.

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. Although the U.S. government has provided financial support to Fannie Mae and Freddie Mac, there can be no assurance that it will support these or other government-sponsored enterprises in the future. 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.

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

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

1. The Adviser has contractually agreed to waive certain fees and/or reimburse certain ordinary operating expenses in order to limit Investor share expenses to 0.87% through November 30, 2021, absent an earlier modification approved by the Fund’s Board.

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. See the applicable prospectus for further information.

The performance quoted 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.

Investor Shares Performance

Month-End Returns as of 10/31/2021
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX -0.80% 1.34% 6.63% 3.68% 2.85%
Bloomberg Barclays U.S. Aggregate Bond Index -1.58% -0.48% 5.63% 3.10% 3.00%
Quarter-End Returns as of 9/30/2021
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX -0.81% 0.64% 6.30% 3.48% 2.84%
Bloomberg Barclays U.S. Aggregate Bond Index -1.55% -0.90% 5.36% 2.94% 3.01%
Calendar Year Returns
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DSBFX BBUSA

2020

10.06% 7.51%

2019

9.14% 8.72%

2018

-0.91% 0.01%

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%

Quarterly Returns
DSBFX BBUSA
3rd Qtr 2021 -0.04% 0.05%
2nd Qtr 2021 2.13% 1.83%
1st Qtr 2021 -2.84% -3.37%
4th Qtr 2020 1.46% 0.67%

*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: 1.15% / 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 11/30/21, 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. 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.

Top Ten Portfolio Holdings as of 10/31/2021
Issue Weight
Fannie Mae TBA 30-Yr (2% due 11/10/2051) 9.89%
Fannie Mae TBA 30-Yr (2% due 12/13/2051) 3.92%
Federal Home Loan Banks Discount Note (0.01% due 11/19/2021) 3.72%
Federal Home Loan Banks Discount Note (0.01% due 2/23/2022) 3.72%
Federal Farm Credit Discount Note (0.01% due 1/10/2022) 2.17%
Fannie Mae TBA 30-Yr (4% due 11/10/2051) 1.92%
Fannie Mae TBA 30-Yr (3% due 11/10/2051) 1.87%
Freddie Mac (1.5% due 2/12/2025) 1.77%
Ginnie Mae II TBA 30-Yr (3.5% due 11/19/2050) 1.72%
Ginnie Mae II TBA 30-Yr (2.5% due 11/18/2051) 1.66%
Total 32.37%
Sector Weightings as of 9/30/2021
Sector Weight
Mortgage-Backed Securities 31.90%
Investment-Grade Credit 28.10%
U.S. Government Agency Obligations 23.00%
Commercial Mortgage-Backed Securities 7.60%
High-Yield Credit 3.10%
Bank Loans 2.10%
Developed Non-U.S. Dollar Denominated 1.60%
Emerging Market Debt 1.30%
Tax-Exempt Municipal 0.60%
Convertible Bonds 0.20%
Asset-Backed Securities 0.20%
Preferred Stock 0.20%
Certificates of Deposit 0.10%
Total 100.00%

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

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.

All data as of 9/30/21 unless otherwise noted.

Portfolio Composition by Credit Quality1

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CREDIT-QUALITY RANKING % OF PORTFOLIO
AAA/Aaa 21.9%
AA/Aa 42.0%
A 8.3%
BBB/Baa 15.0%
BB/Ba 5.0%
B 2.2%
CCC/Caa or Lower 0.3%
Not Rated2 5.2%

Portfolio Statistics

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 Fund BUSA Bond Index3
Number of Holdings 476 12,202
Number of Issuers 233 1,040
Effective Duration 5.74 6.1
Yield to Maturity 2.02% 1.46%
Years to Maturity 7.65 8.15
Yield to Worst 1.98% 1.44%
Years to Worst 7.13 8.05
SEC 30-Day Yield (Investor Shares)‡ 0.74% -
SEC 30-Day Yield (Institutional Shares)‡ 1.04% -
SEC 30-Day Yield (Class Y Shares)‡ 0.96% -

1Credit quality ratings are the opinions of Standard & Poor's Rating Services, a division of McGraw-Hill Companies,Inc. (Standard & Poor's), and Moody's Investors Service, Inc. (Moody's) for the underlying securities of the Fund, and typically range from AAA/Aaa (highest) to C/D (lowest). If Standard & Poor's and Moody's assign different ratings, the lower rating is used.

2Securities that are not rated by either agency are listed as "Not Rated." Ratings do not apply to the Fund itself or to Fund shares. Ratings may change.

3Bloomberg U.S. Aggregate Bond Index

† Source: Wellington Management Company LLP, as calculated by its proprietary portfolio management system, except as noted by ‡. All characteristics are as of September 30, 2021.

Definitions

Effective Duration is the market-value-weighted average of the effective duration of all securities, which is a measure of bond price sensitivity to the change in interest rates.

Yield to Maturity is the sum of the total return expected on all securities when held to maturity.

Years to Maturity is the market-value-weighted average of the time until the securities mature.

Yield to Worst is the sum of the total return expected on all securities in a worst-case call scenario.

Years to Worst is the market-value-weighted average of the time until the earliest date the securities can be called.

SEC 30-Day Yield is a current yield calculation for bond funds. It is calculated using an SEC-standardized formula and is based on the maximum offer price per share.

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 U.S. Aggregate Bond Index (“BUSA”) 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.

“Bloomberg®” and the BUSA are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Domini Impact Investments LLC ("Domini"). Bloomberg is not affiliated with Domini, and Bloomberg does not approve, endorse, review, or recommend the Fund. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Fund.


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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