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Domini Social Bond Fund ®

Fund Information

Daily Price (NAV)
as of 10/02/2015
Symbol DSBIX
Daily NAV Change $0.03 (0.27%)

Key Documents


Institutional Shares Overview​

Institutional shares are available to qualified endowments, foundations, religious organizations, nonprofit entities, individuals and certain corporate or similar institutions that meet the minimum investment requirements.

Investment Objective

The Fund seeks to provide its shareholders with a high level of current income and total return by investing in bonds and other debt instruments that meet the Fund's social and environmental standards.

Investment Strategy

The Fund normally invests at least 85% of assets in intermediate-term, investment-grade fixed-income securities, including government agency, corporate, mortgage-backed and asset-backed securities, taxable municipal bonds, and U.S. dollar-denominated bonds issued by non-U.S. entities.
The Fund seeks to invest up to 10% of its assets in debt instruments and other investments that provide a high level of community impact. These investments may be illiquid, unrated, and may carry greater credit risks than its other holdings.


Investment Advisor and Sponsor: Domini Social Investments LLC
Subadvisor:  Wellington Management Company LLP. 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.

Social and Environmental Standards

To determine which securities are eligible for investment, Domini evaluates the Fund’s current and potential corporate debt instruments against its social and environmental standards based on the businesses in which they engage, as well as on the quality of their relations with key stakeholders, including communities, customers, ecosystems, employees, investors, and suppliers.

For noncorporate issuers, Domini seeks to identify investments with a positive impact on communities.

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.

Community Economic Development

The Fund's community economic development focus is in the areas of small business loans and affordable housing for the economically disadvantaged.

Investor Profile

Who Should Invest

  • The Institutional share class of the Domini Social Bond Fund is available to investors that meet the minimum investment requirements, have been approved by the distributor, and fall within the following categories: endowments, foundations, religious organizations and other nonprofit entities, individuals, retirement plan sponsors, family office clients, private trusts, certain corporate or similar institutions, or omnibus accounts maintained by financial intermediaries.**
  • 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 socially responsible investment standards and its community development emphasis

Who Should Not Invest

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


Institutional Shares Performance

Month-End Returns as of 8/31/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (6/1/00)*
Barclays U.S. Aggregate0.45%1.56%1.53%2.98%4.46%5.51%

Quarter-End Returns as of 6/30/15
YTD1 Yr3 Yr*5 Yr*10 Yr*Since Inception (6/1/00)*
Barclays U.S. Aggregate-0.10%1.86%1.83%3.35%4.44%5.35%

Calendar Year Returns

Quarterly Returns
2nd Qtr 2015-2.00%-0.67%-1.68%
1st Qtr 20151.08%1.32%1.61%
4th Qtr 20141.06%1.20%
3rd Qtr 2014-0.02%0.03%
2nd Qtr 20141.43%1.62%
1st Qtr 20141.36%1.20%
4th Qtr 2013-0.22%-0.14%
3rd Qtr 20130.66% 0.76%
2nd Qtr 2013-2.16%-1.78%
1st Qtr 2013-0.03%0.15%

*Average annual total returns.

Institutional shares were not offered prior to 11/30/11. All performance information for time periods beginning prior to that date 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: 1.02% / Net: 0.65%. Per current prospectus. Domini has contractually agreed to cap Investor share expenses to not exceed 0.65% until 11/30/15, 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


Ten Largest Holdings as of 8/31/15
Fannie Mae TBA 30 YR (3.5% due 9/14/2045)9.1%
Freddie Mac (0.5% due 5/13/2016)5.8%
Fannie Mae (5.625% due 7/15/2037)2.6%
Federal Home Loan Mortgage Cor (3.5% due 9/14/2045)2.5%
Freddie Mac (0.75% due 7/14/2017)2.5%
Ginnie Mae II (3.5% due 9/21/2045)1.8%
Fannie Mae pool AM7067 (3.11% due 1/1/2021)1.6%
Fannie Mae pool 471333 (3.12% due 8/1/2022)1.4%
Fannie Mae pool AM4253 (3.22% due 9/1/2020)1.4%
Fannie Mae pool 469829 (2.72% due 12/1/2018)1.2%
Sector Weightings as of 6/30/15
Mortgage Backed Securities55.7%
Investment Grade Credit Obligations21.7%
U.S. Govt Agencies8.3%
Cash Offsets5.2%
Commercial Mortgage Backed Sec.'s4.8%
High Yield4.4%
Developed Non U.S. Dollar Denom.2.6%
Asset Backed Securities0.8%
Cash & Cash Equivalents-3.4%

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


All data as of 6/30/2015 unless otherwise noted.

Portfolio Composition by Credit Quality1

Aaa 5.14%
Aa 64.40%
A 10.33%
Baa 11.79%
Ba 3.51%
B 0.47%
Below B 0.20%
Cash & Cash Offsets2 1.75%
Not Rated3 2.42%

Portfolio Statistics

Avg. Effective Maturity (Yrs.) 8.09 7.32
Total Number of Holdings5 301 9,455
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.
2. May include Cash, Cash Equivalents (defined as issued with 1 year to maturity), Trade Receivables/Payables as of the trade date (not settlement date), STIF Instruments, and derivative cash offsets.
3. Securities that are not rated by either agency are listed as "Not Rated."
4. Barclays U.S. Aggregate Index
5. Excludes currency forwards, currency futures, currency options and cash offsets.


Institutional Shares Performance Commentary

The Fund is managed through a two-step process designed to capitalize on the strengths of Domini Social 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 June 30, 2015

2nd Qtr
Since Inception
DSBIX -0.46% -0.02% -1.53% -2.00% -0.94% 0.09% 0.76% 1.86% 3.41% 4.40%
BIA -0.01% 0.00% -0.66% -0.67% 0.64% 1.88% 1.73% 2.88% 4.22% 5.21%
BUSA -0.36% -0.24% -1.09% -1.68% -0.10% 1.86% 1.83% 3.35% 4.44% 5.35%

The Fund’s Institutional shares underperformed the Barclays U.S. Aggregate Bond Index for the second quarter, returning -2.00% vs. the benchmark’s -1.68% performance.

Overweight allocations to agency MBS (mortgage-backed securities) and investment grade credit were the most significant detractors from the Fund’s relative underperformance. Weak security selection in FNMA Delegated Underwriting and Servicing bonds (“DUS”) and pass-throughs also detracted, while the portfolio’s short-duration bias and allocation to bank loans were modest positive contributors to the Fund’s performance relative to its benchmark.

Tensions between trends of positive developed market-led economic growth and protective central-bank policies produced high volatility across global markets during the quarter. The increasing likelihood of Greece’s exit from the Eurozone also contributed to high market volatility. Government bond yields rose sharply as the market outlook in the US and Eurozone was positive, fears of deflation around the globe eased and the U.S. Federal Reserve remained on track to increase interest rates later this year. Greece was the central focus of global markets toward the end of the quarter, when it defaulted on its debt to the International Monetary Fund.

Community Impact

The Fund seeks to play a positive role in the economic development of communities, focusing on key themes, including affordable housing, education and climate mitigation. In the second quarter, securities Domini characterizes as “high impact” represented 14.79% of the Fund’s total portfolio, including the following examples.

Municipal Bonds: When identifying appropriate municipal bonds for the Fund, we are seeking to make investments that address unmet needs, and are particularly interested in bonds designed to improve healthcare in underserved areas. One such investment held in the Fund is a hospital revenue bond issued by Ochsner Clinic Foundation, one of the largest fully integrated health care delivery systems in the Gulf South Region, providing healthcare in minority and low-income regions. The Foundation serves communities where 20% of children live in poverty. The Ochsner Clinic remained open during and after hurricane Katrina, serving many uninsured.

The Fund also purchased a bond issued by Los Angeles County, CA Public Works to finance hospital and public building construction and improvements in the distressed areas of LA county, an area suffering from high levels of poverty, unemployment and foreclosure.

Affordable Housing: The Fund has maintained a long-term commitment to affordable housing, which the Fund supports primarily through the purchase of securities backed by pools of mortgages. The Fund also holds a security issued by Community Reinvestment Fund USA (CRF). CRF purchases existing multifamily affordable housing mortgages in order to recapitalize local affordable housing loan funds. CRF requires that the local lending partner reinvest those new funds in affordable housing.

Making a Difference

Local & National Communities

Domini believes that all investments have social and environmental implications. Fixed income investments are no exception. Below, we highlight a few current holdings with a direct impact on communities and the environment. Learn more about how we select investments for the Domini Social Bond Fund’s portfolio.


Municipal Bonds

When identifying appropriate municipal bonds for the Fund, we are seeking to make investments that address unmet needs, and are particularly interested in bonds designed to improve healthcare in underserved areas.

One such investment held in the Fund is a hospital revenue bond issued by New York-Presbyterian Hospital, based in New York City, one of the nation's largest not-for-profit, non-sectarian hospitals, with nearly two million inpatient and outpatient visits each year. In 2013, 32% of the hospital’s patients received Medicare. In 2011 and 2012, provision of healthcare to the Medicare patient population generated annual shortfalls of more than $100 million. Among other important programs to increase access to healthcare for the communities it serves, the hospital operates an Ambulatory Care Network, a community-centered model consisting of thirteen primary care sites and seven school-based health centers providing a wide variety of medical services.

The Fund also purchased a bond issued by the State of California to improve school and recreation facilities, and a water utility, and a bond issued by Puerto Rico designed to fund the Commonwealth Government Employees Retirement System’s pension plan. 

Affordable Housing

The Domini Social Bond Fund has maintained a long-term commitment to affordable housing, which the Fund supports primarily through the purchase of securities backed by pools of mortgages.

The Fund also holds a security issued by Community Reinvestment Fund USA (CRF). CRF purchases existing multifamily affordable housing mortgages in order to recapitalize local affordable housing loan funds. CRF requires that the local lending partner reinvest those new funds in affordable housing.

The security held by the Fund includes loans purchased from Neighborhood Lending Partners (NLP), a Florida nonprofit affordable housing lender. NLP reinvested a portion of the funds from this bond in an 84 unit, family oriented, affordable housing community for farm-worker families. The greatest shortage in affordable housing is affordable housing units for large families. This NLP-funded project features three and four bedroom units, each with two bathrooms. It also includes family-oriented amenities like tot lots, a swimming pool, volleyball courts and classrooms.

Green Buildings

We believe that the real estate industry is in a unique position to reduce greenhouse gas emissions through energy efficiency improvements that are low cost and that create value within the underlying asset. We have therefore purchased several bonds designed to finance green buildings. In particular, we are looking for the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) certification, a comprehensive green building certification program that recognizes best-in-class building strategies and practices.

For example, the Fund holds a bond issued by the Massachusetts Institute of Technology to finance five buildings with strong environmental credentials; four have received LEED Gold certification and one received LEED Silver certification. Another bond, issued by Regency Centers LP, a firm that develops and manages community retail shopping centers throughout the United States, has been used to finance existing properties and properties under development where the company is seeking or has already been awarded LEED certification.