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Corporate Social Responsibility
News
7.24.2003 ET
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Domini Social Bond Fund Helps Build Communities
Investors in Unique Bond Fund Can Celebrate Success Stories at Three-Year Anniversary
(CSRwire) NEW YORK -- Marking the third anniversary of the
Domini Social Bond Fund (NASDQ: DSBFX), Founder and CEO Amy Domini of
Domini Social Investments said, "The Domini Social Bond Fund shows how a
conventional financial vehicle, like a bond mutual fund, can be used to do
extraordinary work for underserved communities. The Fund provides a way for
investors to meet their financial goals while making a real difference in
people's lives."
The Domini Social Bond Fund is a highly innovative way for individual
investors to participate in a variety of community development initiatives
across the United States.
"Bond funds are a natural fit for promoting community development," said
Ms. Domini. "By buying CDs with community development banks and credit
unions, the Domini Social Bond Fund is channeling investors' money
directly to where it can be put to work in struggling urban and rural
communities.
"The community development banks and credit unions in our portfolio help
low-income individuals and institutions finance first-time home purchases,
create daycare centers, refurbish churches, and start up and expand family
businesses. In addition, they often provide valuable training and
empowerment to those who have not previously dealt with mainstream
financial institutions."
Domini Social Investments will host a press conference by telephone on
July 31, beginning at 2:00 pm EDT, to discuss the social and financial
performance of the Domini Social Bond Fund. To participate, phone
1-800-569-1949 and enter the participant passcode, 315675. All print,
broadcast, or electronic journalists are welcome to participate.
Self-Help Credit Union, one of the 27 community development financial
institutions (CDFIs) in the Domini Social Bond Fund's portfolio, is
achieving not just one success story but many, as it helps to revitalize
the entire Walltown neighborhood of Durham, North Carolina.
Working with concerned residents and a neighborhood church, Self-Help has
bought and renovated almost 50 rundown mill houses to be sold at
affordable prices to low- and moderate-income first-time homebuyers. Each
house is converted from a two- to a one-family home and is thoroughly
upgraded, from its plumbing and electrical systems to its porches and
yards.
A full profile of Self-Help is available at http://www.domini.com/common/pdf/self_help.pdf.
Profiles of other CDFIs in the Fund's portfolio can be seen at http://www.domini.com/domini-funds/Domini-Social-Bond-Fund/real-life-/
Objective and Performance of the Domini Social Bond Fund Launched in June
2000, the Domini Social Bond Fund is submanaged by ShoreBank of Chicago,
Illinois, the country's first community development bank. "ShoreBank's
experience as a leader in community development made it a good choice for
this fund," said Ms. Domini.
As of June 30, 2003, the Fund had grown to more than 4,200 shareholders
and $48 million in assets.
Average Annual
Total Return
as of June 30, 2003 | Domini Social
Bond Fund | Lehman Brothers
Intermediate
Aggregate
Index | | One
Year | 8.44% | 8.72% | | Three Years | 9.41% | 9.52% | | Since Inception | 9.46% | 9.93% |
The Domini Social Bond Fund is an intermediate-term investment-grade bond
fund that devotes up to 10% of its portfolio to direct investments in
community economic development. But as Steven D. Lydenberg, Domini's Chief
Investment Officer, explains, "The Domini Social Bond Fund's support for
community development goes well beyond its commitment to CDFIs. The Fund
invests in mortgage-backed securities issued by institutions like Fannie
Mae, Freddie Mac, and Ginnie Mae, which play a vital role in providing
liquidity in the secondary mortgage market for affordable housing. The
Fund also invests in bonds issued by corporations that have strong social
stories, and in bonds issued by states and municipalities for a variety of
revitalization efforts."
As of June 30, 2003, approximately 46% of the Fund's portfolio was
invested in direct obligations of U.S. government agencies and
government-sponsored entities, 21% in mortgage-backed securities, 19% in
corporate bonds, 8% in state and municipal bonds, and 7% in community
development investments. Investors can learn more about socially
responsible investing and the Domini Social Bond Fund by visiting http://www.domini.com/,
or by phoning Domini Social Investments at 1-800-762-6814.
About Domini Social Investments:
Domini Social Investments manages more than $1.5 billion in assets for
individual and institutional mutual fund investors seeking to create
positive change in society by integrating social and environmental
criteria into their investment decisions. Its flagship fund, the Domini
Social Equity Fund (NASDQ: DSEFX), was the first socially and
environmentally screened index fund and is the nation's largest socially
responsible index fund. The Fund seeks to include companies with positive
records in community involvement, the environment, diversity and employee
relations, and excludes companies deriving significant revenues from
alcohol, tobacco, gambling, nuclear power, and weapons contracting. In
addition to the Domini Social Equity Fund, the company also offers the
Domini Social Bond Fund (NASDQ: DSBFX) and an FDIC-insured money market
account (in partnership with ShoreBank), both of which focus on community
economic development.
Additional information on Domini Social Investments is available on the
firm's website,
http://www.domini.com/. Domini's eighth annual Proxy Voting Guidelines
& Shareholder Activism booklet is also available free of charge by calling
1-800-762-6814. The Domini Funds are subject to market risks and are not
insured. You may lose money. Some of the Domini Social Bond Fund's
community investments may be unrated and carry greater credit risks than
its other investments. The Domini Social Bond Fund currently holds a large
percentage of its portfolio in mortgage-backed securities. During periods
of falling interest rates these securities may prepay the principal due,
which may lower the Fund's return by causing it to reinvest at lower
interest rates.
As of June 30, 2003, Self-Help Credit Union represented 0.64% of the
Domini Social Bond Fund's portfolio. The Fund's portfolio is subject to
change. The Domini Funds are not affiliated with any bank and are not
insured. Please obtain a prospectus, which contains more information
including fees, expenses, and risks, by calling 1-800-762-6814 or online
at http://www.domini.com/. Read it
carefully before you invest or send money. This release should not be
considered a recommendation of the financial attractiveness as an
investment of any of the issuers mentioned. DSIL Investment Services LLC
(DSILD), Distributor. DSILD and ShoreBank are not affiliated. 7/03
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