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.

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.

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.

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.

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

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).