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.
As with all of our mutual fund investments, our Impact Investment Standards are a fundamental part of our approach to fixed income. We set social and environmental guidelines and objectives for each asset class. For some asset classes, like housing agency bonds, most securities are generally considered eligible for investment. For others, we consider potential investments on a case-by-case basis at the issuer or security level.
When making any fixed-income investment, it is important to ask two questions:
To whom am I loaning my money? And for what purpose?
We then use key performance indicators to determine if the answers to those questions are aligned with our fundamental goals of universal human dignity and ecological sustainability. For corporate bonds, we generally apply the same standards we apply to our evaluation of corporations.
For non-corporate bonds, we focus on three key goals to build a more sustainable and equitable society:
- 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
These goals stem from our belief that healthy economies must be built on a strong foundation of fairness and opportunity for all.
