Domini's ESG Analysis Avoided Drug Company's Fall

In June, Bloomberg Markets interviewed Domini’s Tessie Petion, VP of Responsible Investment Research & MIS, to discuss how Domini’s ESG (environmental, social and governance) criteria helps their investors avoid volatile companies, such as the drug maker Valeant. Bloomberg noted that Valeant was once a provider of generic drugs and contraceptives in emerging markets and began cutting its research and development budget rapidly acquiring over 100 companies within five years. In the interview, Ms. Petion noted that Valeant’s focus had shifted from the development of lifesaving drugs to a strategy of financial engineering, and therefore no longer aligned with Domini’s investment approach. Domini excluded the company from eligibility for investment in its mutual funds in October 2014 and watched from the sidelines as Valeant stock price subsequently crashed.

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Domini Social Investments LLC and Bloomberg Markets are not affiliated.

Valeant is currently not approved for investment by the Domini Funds. The composition of the Funds’ portfolios is subject to change. View the most current list of the Domini Impact Equity Fund, Domini Impact International Equity Fund and Domini Impact Bond Fund’s holdings.

The Domini Funds are not insured and are subject to market, sector concentration and style risks. Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. You may lose money. This Domini News is provided for informational purposes only, and should not be considered investment advice with respect to any of the companies mentioned.

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Domini Impact Investments LLC (Domini) is the Funds’ investment manager. The Funds are subadvised by unaffiliated entities.

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