Narrative

This company has twin ambitions: 

“Universal Human Dignity — We seek investments that promote universal values of fairness, equality, justice, and respect for human rights. 

“Ecological Sustainability — We seek investments that promote long-term environmental sustainability, including climate change mitigation and adaptation.” 

The company summarizes its strategies as follows:  “As investors, we participate in capital markets by using financial, environmental, and social standards in all of our investment decisions.  As owners, we engage with issuers, civil society organizations, and policymakers to create financial, environmental, and societal value.  As neighbors, we seek to help build strong, sustainable communities by directing capital to where it is needed most.”

Examination of Domini’s shareholder proposals, Shareholder Proposals - Domini, shows that their funds are concerned with all aspects of the ESG standards — addressing climate change is only one of many goals they have.  Details of these goals are given in their online documents. 

Three examples from 2023 are given in the Impact Report:  After a successful negotiation, Domini withdrew a proposal for Huntington Bancshares to end lending and underwriting for coal; Deere & Co. agreed to publish a climate transition plan, following negotiation with Domini and another fund; and a co-filed proposal for Bank of America to transition out of fossil fuel financing got only 8% of the vote.

Two examples from 2022 are given.  Domini filed a proposal with Kraft Heinz for a climate transition plan.  After the company set science-based goals to achieve 50% reductions in greenhouse gases by 2030 and net zero by 2050, Domini and their co-filers withdrew their proposal.  A second example is that with other investment firms they co-filed a shareholder proposal with Bank of America, asking for a phase-out of financing to fossil fuel development; the proposal got 11% of the vote at the annual meeting.

Funds Offered

Domini Funds offers three mutual funds with diverse portfolios, which do not seem to be aligned with any public indexes.

• Domini Impact Equity Fund
• Domini International Opportunities Fund
• Domini Impact International Equity Fund

Domini Funds also offers a fund that concentrates on solution-oriented companies in areas such as energy, health, and lending for underserved communities.

• Domini Sustainable Solutions Fund

Finally, Domini Funds offers a bond fund, in which a portion is for historically underserved communities and those most in need.  In 2021 Domini received the Environmental Finance award as Fund of the Year among fixed income funds.  I am not sure whether this is an award for income or for environmental achievement.

• Domini Impact Bond Fund

Fees and Hassles

A 0.25% fee (a “load”) is charged for each withdrawal, though for owners of Institutional Class shares (balance more than $500,000), the 0.25% fee is not assessed.  Withdrawals can be made by mail, phone or online.  The usual requirement of a medallion signature guarantee, on paper, applies for any withdrawal for a third party.