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SIGNATURE CAROLE LAIBLE
TITLE TREASURER
[LETTERHEAD]
KPMG Peat Marwick LLP
To the Board of Trustees and Shareholders
Domini Social Index
In planning and performing our audit of the financial statements of Domini
Institutional Social Equity Fund (the "Fund") at July 31, 1998 and for the year
then ended, we considered its internal control, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairy presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control component does not reduce to a relatively low level
the risk that that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of July 31, 1998.
This report is intended solely for information and use of management and the
Securities and Exchange Commission.
/s/ KPMG Peat Marwick LLP
Boston, Massachusetts
September 15, 1998
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<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 116,365,805
<RECEIVABLES> 0
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