Domini Impact Bond Fund ℠ - Investor Shares

as of 02/22/2019

Quick Facts

$11.01

Daily Price (NAV)
Symbol
DSBFX
Daily NAV Change
$0.03 (0.27%)

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: $130.7 Million
Investor shares: $110.9 Million
as of 12/31/18

Annual Expense Ratio 1

Gross: 1.14% / 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

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 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 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 Fund is not a bank deposit. The Fund is not insured and is subject to credit, interest rate, liquidity, and market risks. Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing security regulations and accounting standards limited public information possible changes in taxation, and periods of illiquidity. You may lose money.

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, 2019, 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. 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. 

Investor Shares Performance

Month-End Returns as of 1/31/2019
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX 1.24% 1.55% 2.06% 1.92% 2.70%
Bloomberg Barclays U.S. Aggregate Bond Index 1.06% 2.25% 1.95% 2.44% 3.68%

*Average annual total returns.

Quarter-End Returns as of 12/31/2018
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YTD 1YR 3 YR* 5 YR* 10 YR*
DSBFX -0.91% -0.91% 2.10% 1.91% 2.62%
Bloomberg Barclays U.S. Aggregate 0.01% 0.01% 2.06% 2.52% 3.48%

*Average annual total returns.

Calendar Year Returns
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DSBFX BBUSA
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%
2010 4.74% 6.56%
2009 5.77% 5.93%
2008 5.69% 5.24%
2007 6.00% 6.96%
Quarterly Returns
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DSBFX BBUSA
4th Qtr 2018 0.80% 1.64%
3rd Qtr 2018 -0.15% 0.02%
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.

Ten Largest Holdings as of 12/31/2018
Issuer % of Portfolio
Ginnie Mae II TBA 30-Yr (3.5% due 1/23/2049) 3.6%
Fannie Mae TBA 30-Yr (3.5% due 1/14/2049) 3.6%
Japan Treasury Discount Bill (0% due 1/15/2019) 3.0%
Fannie Mae (5.625% due 7/15/2037) 2.7%
Ginnie Mae II TBA 30-Yr (3% due 1/23/2049) 2.2%
Freddie Mac TBA 30-Yr (4% due 1/14/2049) 2.1%
Freddie Mac Pool G08816 (3.5% due 6/1/2048) 2.0%
Ginnie Mae II TBA 30-Yr (4% due 1/23/2049) 1.5%
Fannie Mae Pool AN4301 (3.15% due 1/1/2027) 1.4%
Fannie Mae Pool BE4435 (3% due 11/1/2046) 1.4%
Total 23.5%
Sector Weightings as of 12/31/2018
Sector % of Portfolio
Mortgage Backed Securities 47.3%
Investment Grade Credit 25.8%
Commercial Mortgage Backed Sec 7.3%
Bank Loans 5.2%
U.S. Government Agency Obligations 4.9%
High Yield Credit 3.5%
Foreign Government Obligations 3.0%
Tax Exempt Municipal 1.3%
Asset Backed Securities 0.6%
Developed Non-US Dollar Denominated 0.5%
Emerging Market Debt 0.4%
Certificates of Deposit 0.3%
Options 0.0%
Total 100.0%

*Portfolio Holdings as of 12/31/18 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. 

All data as of 12/31/18 unless otherwise noted.

Portfolio Composition by Credit Quality1

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CREDIT-QUALITY RANKING % OF PORTFOLIO
AAA/Aaa 3.9%
AA/Aa 56.1%
A 10.3%
BBB/Baa 17.1%
BB/Ba 5.2%
B 3.5%
CCC/Caa or Lower <0.01%
Not Rated2 4.0%

Portfolio Statistics*

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Fund BBUSA Bond Index3
Number of Holdings4 379 10,249
Number of Issuers 177 962
Effective Duration 5.56 5.69
Yield to Maturity 4.10% 3.28%
Years to Maturity 9.28 8.01
Yield to Worst 4.08% 3.28%
Years to Worst 9.23 7.99
SEC 30-Day Yield (Investor Shares) 2.78% -

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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