Insights

Domini Social Bond Fund Impact (Q2 2016)

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.

Public Health

In the second quarter, the Fund purchased a bond issued by the Indiana Finance Authority. Proceeds from this bond will finance construction of a new public mental health care facility, the Neuro-Diagnostic Institute and Advance Treatment Center, for medically underserved populations in the state. Within the last 50 years, Indiana’s supply of inpatient psychiatric beds declined significantly from 6,000 to 800 in 13 state-operated facilities for patients with mental health and developmental disabilities. The new facility will be Indiana’s flagship mental health facility for those with mental illness and addictions.

Climate Mitigation

The Fund holds a general obligation green bond issued by the State of Massachusetts. Proceeds from this bond are used for climate adaptation and mitigation, including storm water management, energy efficiency and conservation in state buildings, open space protection, habitat restoration and preservation, and environmental remediation and river revitalization projects throughout Massachusetts. In 2013, Massachusetts became the first state to issue a green bond. The state has provided increasingly transparent reports each year to allow investors to measure the environmental impact of these issuances. 


The Domini Social 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 Social 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 Social 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 Social 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. This commentary should not be considered a recommendation of the financial attractiveness as an investment of any of the companies mentioned.


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.

The Domini Funds are distributed by DSIL Investment Services LLC (DSILD), Member FINRA. Domini Impact Investments LLC (Domini) is the Funds’ investment manager. The Funds are subadvised by Wellington Management Company LLP. DSILD and Domini are not affiliated with Wellington Management Company LLP.

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