<PAGE>
Dear Fellow Shareholders,
The past six months have seen a more volatile stock market than investors
have been exposed to in recent years. We are pleased to report that the Domini
Social Equity Fund ("DSEF") kept pace with broad market averages and that for
the six months ended July 31, 1996, total return on the Domini Social Equity
Fund was 1.2%. For the twelve months ended July 31, 1996, it was 14.1%.
In this annual report we review our companies' overseas activities.
International human rights are increasingly at issue and are likely to become
the focus of much debate in coming years. American corporations operating abroad
will, without question, be drawn into this debate and must confront a variety of
issues relating to their practices and policies abroad. How they will respond,
or should respond, is not entirely clear.
Because of the dramatic role that South Africa played in the unfolding of
the social investment movement in the United States, social investors are
particularly attuned to human rights issues. However, integrating human rights
issues into a social investment policy is not a simple undertaking. Apartheid,
lack of democratic rule, and oppression of personal freedom made South Africa
compelling for the social investment movement in the 1980s, but today we face a
far more intricate complex set of issues including international economic trends
in labor, conflicting cultural norms, questionable or unreliable sources of
information, and the burdens of overpopulation.
Within the social investment movement, protests over the abusive policies of
the military dictatorship in Burma have emerged within the past several years,
and strong expressions of concern about the practices of the governments of
China, Indonesia, and Nigeria, among other countries, have been expressed.
Investors are increasingly adopting a policy relating to corporations with
operations in these nations. The policy can call for divestment of such
companies, or for a campaign to force the corporations to take actions to
influence the ruling government and to ameliorate conditions generally in the
country in question. As social investment norms change, the Domini Social Index
will strive to reflect these norms.
Beyond the question of repressive regimes are broader concerns. Four types
of human rights issues are often raised about the operations of U.S. companies
outside the United States. The term human rights often captures many of the more
basic concerns about working conditions and cultural conflicts. These four
issues are:
- - Conflicts with Indigenous Peoples,
- - Use of Forced Labor or Child Labor,
- - Strategic Support for Dictatorships,
and
- - Involvement in Unacceptable Labor
Conditions.
Several factors make these issues extremely difficult to confront and to
evaluate. To begin with, large demographic and economic forces are at work. Huge
pools of cheap labor are now available to provide immediate service. What should
be
<PAGE>
the proper relationship of U.S. corporations with this vast labor force is
difficult to define. Further, accurate information about working conditions in
poorer countries can often be difficult to obtain, particularly for those
companies engaging third party contractors abroad. Moreover, answers are often
<PAGE>
not clear to even such apparently simple questions as what is a living wage in a
given country or region.
For the social investor, human rights issues are played out on two separate,
but interrelated, plains: the national level and the corporate level. The issues
involved at each level differ, as do appropriate corporate responses and the
social investor's ability to screen. We at the DSEF are responding in two ways.
We consistently use our voice as shareholders to support efforts for increased
accountability through voting and co-filing shareholder resolutions. We also
review the impact of a company's operations on human rights abroad when we
select stocks.
Simply ignoring these complicated problems is not a luxury available to U.S.
business, nor to social investors. Formulating a sensible social investment
policy, however, is no simple task. For the time being, the simplest, and
probably the best approach to these issues is to examine carefully a series of
cases where these issues are raised, and to proceed from there to more general
principles.
In this annual report we have chosen to share with our investors profiles of
companies with innovative or responsible approaches to the difficulties of an
ever more global economy. We hope you enjoy reading it. Thank you for your
ongoing support of social investing and for your investment in the Domini Social
Equity Fund.
Sincerely yours,
Amy L. Domini
2
<PAGE>
NON-U.S. OPERATIONS Through both an increasing customer base and a
decreasing cost of labor, the globalization of our economy is providing more and
more opportunities for corporations to improve their bottom line. But what does
this mean for the individuals, communities and environments effected around the
world? There are no simple answers. In fact, since South Africa, which played a
dramatic role in the unfolding of the social investment movement in the United
States, the issues surrounding, and the job of screening, international
operations have become much more complex.
With U.S. corporations operating in diverse countries and cultures that are
half way around the world, we decided to highlight companies with policies and
practices that protect human rights, pay just wages, provide safe working
conditions, ban the use of child and forced labor and protect the environment.
In the face of many challenges, we must hope for the incorporation of
sustainable development, human dignity and social justice into business
decisions everywhere.
All the companies whose stocks are held by the Domini Social Index Portfolio
meet multiple standards for corporate accountability. We avoid companies in the
business of manufacturing alcohol and tobacco products as well as those that
provide gambling services or equipment. We seek to avoid companies that sell
weapons or are in the nuclear power industry. In addition, we evaluate a
company's social profile by weighing both strengths and weaknesses in the areas
of community relations, employee relations, the environment, product safety and
usefulness, non-U.S. operations, and diversity.
The "bellwether" issues Kinder, Lydenberg, Domini & Co., Inc. (KLD),
evaluates to identify strengths and weaknesses within the arena of Non-U.S.
Operations follow.
AREAS OF STRENGTH:
- - The company's non-U.S. Operations have
been praised for their community relations, employee relations,
environmental impact, or product innovation.
<PAGE>
- - The company has established substantial,
innovative charitable giving programs outside the U.S.
AREAS OF CONCERN:
- - The company has operations in Burma.
- - The company's operations in Mexico have had
major recent controversies, especially those related to the treatment of
employees or degradation of the environment.
- - The company's non-U.S. operations have been
the subject of major recent controversies related to community relations,
employee relations, environmental impact, or product safety or quality.
KLD applies its screens to every company in the Domini Social Index, in
which the Domini Social Index Portfolio invests. Below are listed DSEF holdings
that display a strength and no concerns within their Non-U.S. Operations.
APPLE COMPUTER develops and manufactures personal computers under the
Macintosh brand name and personal "digital assistants" under the brand name
Newton. In February 1995, the newsletter Corporate Giving Watch ranked Apple
eighth on its list of the ten largest corporate givers to international affairs.
In 1993, the most recent year when international giving figures were available,
the company donated $1.1 million to overseas programs. In 1995 Apple provided
230 Macintoshes to the NGO Forum on Women in Beijing, China and gave $25,000 to
Laubach Literacy International, an education program for the urban slums of 29
developing countries.
AVON PRODUCTS manufactures and markets beauty products, fashion jewelry,
gift items,
3
<PAGE>
and fragrance products through direct sales by its representatives and through
the sale of fragrance products to retail stores. The company has contributed to
fundraising for breast cancer awareness in the U.K., AIDS awareness in Thailand,
self esteem workshops for women with cancer in Australia, and programs to honor
significant achievements of women in Japan.
DAYTON-HUDSON operates 1,032 stores under the names Target discount
department stores, Mervyn's department stores, and Dayton's, Hudson's, and
Marshall Field's department stores. In 1994, as a result of dialogue with
shareholders proposing a resolution calling on the company to adopt appropriate
standards for overseas suppliers, the company has adopted standards similar to
those developed by Levi Strauss and Wal-Mart. These measures include minimum
health and safety standards, living wages and benefits, reasonable work hours
not to exceed 60 hours a week, commitment to non discrimination, and prohibition
against child labor and forced prison labor.
THE GAP operates approximately 1,500 apparel specialty stores under the
brand names The Gap, GapKids, Banana Republic, and Old Navy Clothing. In
December 1995, The Gap signed an agreement with the National Labor Committee
(NLC) to allow third-party monitoring of its vendors in Central America.
According to the NEW YORK TIMES, the unprecedented agreement says "The Gap and
the NLC feel that it will be helpful to use the Human Rights Ombudsman's offices
in El Salvador and other Central American countries to monitor factory
compliance with the Gap's Sourcing Principles and Guidelines." The Gap has a
formal set of guidelines for working conditions that its vendors in the U.S. and
abroad must sign, and Gap quality inspectors evaluate working conditions at
foreign plants.
The Gap's agreement with the NLC resolved the company's long standing
dispute with unions which erupted most recently over The Gap's use of the
Mandarin International maquiladora plant in El Salvador. Since 1993 several
<PAGE>
retailers, including The Gap, had been involved in disputes with union groups
alleging that vendors in Central America have violated workers' human rights. In
mid-1995, various union groups expressed concern about the use of the Mandarin
International by The Gap and other U.S.-based clothing manufacturers. The unions
alleged that various women at the plant had organized a union at the plant in
early 1995 but had been subsequently fired. They also alleged that the owners of
the plant paid inadequate wages, employed child labor, and had consistently
repressed union organizing activities. The Gap initially said it would withdraw
totally from Mandarin, but under pressure from unions, an agreement that all
parties could agree to was reached, and The Gap agreed to allow third-party
monitoring.
At corporate headquarters, The Gap has a Business Sourcing Committee that
decides if there are countries in which the company will not do business. The
firm currently will not do business in Burma because of human rights abuses by
the government of that country. The Gap has one store in Belfast with
approximately 11 full time employees. Although not a signatory of the MacBride
Principles, the firm complies with their requirements.
HASBRO manufactures and markets toys and related items, including games and
preschool and infant products, such as G.I. Joe, Cabbage Patch Kids, Scrabble,
Twister, Lincoln Logs, and Raggedy Ann. The company supports charitable programs
in five countries in which it has operations and has coordinated these efforts
with programs affiliated with the United Nations. Approximately 17% of the toys
sold by Hasbro in the U.S. are made in China and all of its toys manufactured in
China come from private contractors. CEO Alan G. Hasenfeld has been quoted as
opposing linking human rights to trade, saying, "There's more to gain in a world
where we are communicating." He visits China about once a year and says that the
factories Hasbro uses do not use prison labor. "I'd eat the food and sleep in
the dormitories," he said. Hasbro has told KLD that it checks on the safety of
4
<PAGE>
its overseas manufacturers. It also has guidelines that prohibit child labor for
its subcontractors. Hasbro is a member of Businesses for Social Responsibility,
a trade group which promotes corporate social responsibility.
HEINZ manufactures and markets processed food products including tuna fish
(Star-Kist), baby food, infant formula, pet food (9-Lives), beans, ketchup and
condiments, dietary foods (Weight Watchers), and frozen potato products
(Ore-Ida). It also operates and franchises weight control classes. In February
1996, the company announced its intent to acquire Earth's Best, Inc., a marketer
of organic baby food. Heinz has been notably willing to invest in developing
countries. In 1982 Heinz was the first company to open a joint venture with the
government of Zimbabwe during that country's initial years of independence. In
1988 the firm was among the first multinationals to begin operations in
Botswana. In 1995 Heinz acquired an infant food and milk business in India,
established a baby food factory in Russia, and acquired an infant formula
manufacturer in the Czech Republic. Heinz has had a baby food factory in China
since 1984 and has expanded into manufacturing formula.
HOME DEPOT operates retail do-it-yourself home improvement stores primarily
in the South, the Northeast, the West Coast, and in three provinces in Canada.
The company has written policies and procedures for its U.S. and overseas
vendors which require them to verify that they do not employ child labor or
forced labor. The company has publicly stated that it uses a neutral third-party
to inspect and audit off-shore vendors to ensure compliance. In a May 1994
WASHINGTON POST article, the company's director of importing said the company
carefully checks the factories it purchases from, and will not use those with
government-assigned workers, convicts, or underage labor.
NORDSTROM is a fashion specialty retailer operating approximately 60
department stores. In 1994 Nordstrom introduced a set of "Partnership
Guidelines" governing its relationships with suppliers. The guidelines state
that the company will not do business with firms using child or prison labor,
and that it will favor those adopting progressive environmental policies.
<PAGE>
Company representatives conduct random inspections of overseas facilities to
ensure compliance with the guidelines.
J. C. PENNEY operates 1,233 department stores with catalog departments
selling apparel, shoes, jewelry, accessories, and home furnishings. It also
operates 526 drug stores. In 1993 when labor groups in the U.S. called attention
to violations of labor laws by overseas vendors, the company re-issued its
guidelines for vendors, stating its refusal to accept goods made by prison or
illegal child labor. It also established a procedure for certification of goods
by domestic vendors, identifying the specific factory where the goods were made
and verifying that the guidelines have not been violated. Reebok, Levi Strauss,
and Sears have adopted similar standards.
POLAROID designs, manufactures and markets instant photographic cameras,
films, electronic imaging devices, and polarized filters and lenses. In late
1994, the firm announced plans to re-enter South Africa. It is among a handful
of U.S. companies to respond to the call by the new government of South Africa
for re-investment by foreign firms. In the late 1970s, Polaroid was one of the
first U.S. firms to withdraw from South Africa in response to anti-apartheid
protests. At that time, it was widely praised by activists for this move.
Polaroid will open a sales and marketing office in Johannesburg from which it
plans ultimately to coordinate its marketing efforts throughout sub-Saharan
Africa. In 1993 Polaroid completed a voter registration program for the Mexican
government under which it created photographic voter registration cards for 40
million people.
PROCTER & GAMBLE manufactures and markets laundry and cleaning products,
paper products, beauty care products, food and beverages, and health care
products. In FY 1995, P&G
5
<PAGE>
reports making $7.1 million in international grants. This represents
approximately 12% of its total giving that year. In January 1995, the company
provided $1 million for relief of earthquake victims in Kobe, Japan. The company
is also providing funding for construction and furnishing of 20 schools in rural
areas in Mexico in cooperation with the federal and state governments. The
program is modeled on similar programs initiated by P&G in Venezuela and Africa.
In 1995 Procter & Gamble reacquired the Richardson-Vicks subsidiary it had once
owned in South Africa. The company reports that it guarantees bank loans for
employees at its South African facility who wish to purchase a home. Proctor &
Gamble has operations in Northern Ireland. In 1991 it agreed to abide by the
MacBride Principles for its operations in Northern Ireland. The MacBride
Principles seek to insure fair labor practices and religious tolerance in the
workplace.
REEBOK INTERNATIONAL manufactures and markets footwear and apparel for the
athletic and leisure/fashion markets. Its major brand names include Reebok,
Rockport, AVIA, Weebok, Tinley, and Above The Rim. In 1988 the company entered
into a partnership with Amnesty International. The company donated $10 million,
$2.5 million of which came from the Reebok Foundation, to pay off the
organization's debts and sponsor a fund-raising concert tour. Since 1988 the
firm has sponsored the annual Reebok Human Rights Awards which come with a
$25,000 grant. The 1994 recipients included a Haitian nurse, a Brazilian AIDS
activist, a Nepalese labor rights activist, a Pakistani youth labor rights
activist, and a Liberian human rights advocate. For its manufacturing operations
in developing countries, Reebok has developed its own internal policies outlined
in its "Human Rights Production Standards" guidelines. This statement sets down
the company's principles on nondiscrimination, working hours and overtime,
forced or compulsory labor, fair wages, child labor, and freedom of association.
Virtually all of Reebok's manufacturing is performed by independent
contractors outside the U.S. Like its competitors, Reebok has shifted much of
its manufacturing in recent years from South Korea to Indonesia and China.
Reebok also noted that in 1994 Reebok commissioned Ernst & Young to conduct an
outside audit of its wage and other labor practices in Indonesia. Ernst & Young
<PAGE>
found that 90% of the workers in Reebok's Indonesian factories were saving a
portion of their monthly salaries or contributing to the support of parents
living elsewhere. The company terms this finding "one measure of adequate
wages."
In 1994, Reebok compelled one of its contractors in China to find
alternative housing for its workers who had been housed in unsafe dormitories on
the factory property reportedly under conditions prohibited by local labor
regulations. That same year Reebok became one of the first major U.S. companies
to announce that it would open a subsidiary in that country. This operation,
which will manufacture and sell athletic shoes and apparel, is 45%-owned by
several black South African entrepreneurs. Reebok has announced that it would
not manufacture its products in Burma until human rights conditions in that
country improved.
SEARS, ROEBUCK owns and operates retail merchandising stores and has
interests in computer and communications products, such as the Prodigy
information service. The company has operations in the U.S., Canada, and Mexico.
Sears has adopted a code of conduct for doing business overseas, and has also
pledged to visit the work sites of its Chinese suppliers regularly. In early
1992, the company reached an agreement with the Amalgamated Clothing and
Textiles Workers Union to assure that none of its suppliers in China were using
forced labor.
STARBUCKS purchases, roasts and sells whole coffee beans, along with a
variety of coffee beverages and related items through retail and airport stores.
It also sells whole bean coffees through
6
<PAGE>
specialty sales (including Delta Airlines, Nordstrom, Barnes & Noble) and mail
order. Since 1991 Starbucks has been one of the primary corporate supporters of
CARE, a charitable organization focusing on international giving. The company
makes an annual grant of $100,000 to CARE and channels partial proceeds from
specialty items to the organization. Among its joint-venture projects with CARE
are: a program in Indonesia to promote sustainable farming practices among farms
worked by poor families and an education project in Indonesia to help educate
elementary school children on issues related to agriculture, self-employment,
health, family planning and the environment.
In October 1995, Starbucks became the first major U.S. company involved in
agricultural products to write a code of conduct for its overseas suppliers. It
did so in collaboration with various labor and human rights groups. The code
sets up a preliminary framework for the company's conduct abroad, a framework
the company stresses is a "first step on a long journey." It contains provisions
addressing child labor, wages and benefits, diversity of cultures, and the
environment. The code also specifically states that the company supports
employees' rights "to freely associate with whichever organizations or
individuals they choose." At the same time, Starbucks established a series of
short- and long-term goals for action based on the code. Its initial steps for
1996 include education of all its suppliers about the provisions of the code;
communication with shareholders, employees, and customers about the code; and
further work with CARE on projects that might relate to the code.
TIMBERLAND manufactures and markets footwear and accessories and apparel
under the Timberland brand name. The company is one of few U.S. firms to publish
a formal set of guidelines for its business partners abroad. These principles
state that Timberland will not do business with companies employing child labor
(those under 14 years of age or defined by local laws subject to child labor
provisions); or with companies "where employees are routinely expected to work
more than six consecutive days or 60 hours per week." Timberland purchases
products from a Taiwanese supplier that has facilities in China. The company,
Pouchen, and Timberland have agreed to operate under the highest possible
standards and have established a community fund in China to help support grass
roots education.
<PAGE>
TURNER BROADCASTING SYSTEM operates nationwide cable television
entertainment programming services and Cable News Network and owns the Atlanta
Braves baseball team and the Atlanta Hawks basketball team. In 1986, 1990, and
1994, the company sponsored the Goodwill Games, a series of Olympic-style events
intended to promote international understanding. The 1994 games were held in St.
Petersburg, Russia. Turner established the Goodwill games partly in response to
the U.S. and Soviet boycotts of the 1980 and 1984 Olympic games. Although the
games have been a source of financial losses (approximately $100 million over
the years), Turner plans to continue them.
WAL-MART STORES operates 2,684 general merchandise stores, including 1,990
Wal-Mart discount department stores, 428 Sam's wholesale clubs, and 143
Supercenters. The company's stores are located primarily in the U.S. In early
1993, the company adopted standards of conduct for its vendors governing
compensation, work hours, child labor, and forced labor. Reebok, Levi Strauss,
and Sears have adopted similar standards. In January 1994, Wal-Mart severed its
business relationship with Gitano Group, which had pleaded guilty to federal
charges that it had misrepresented the country of origin of some of its
products. In January 1995, the company's Wal-Mart of Canada stores discontinued
the sale of tobacco products.
7
<PAGE>
COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI SOCIAL EQUITY FUND AND S&P 500+
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DSE FUND* S&P 500
<S> <C> <C>
6/28/91 $10,000.00 $10,000.00
7/31/91 $10,506.86 $10,465.70
8/30/91 $10,749.74 $10,712.93
9/30/91 $10,527.98 $10,533.58
10/31/91 $10,591.34 $10,674.88
11/29/91 $10,221.75 $10,245.94
12/31/91 $11,391.13 $11,415.75
1/31/92 $11,274.24 $11,203.28
2/28/92 $11,454.89 $11,348.31
3/31/92 $11,114.85 $11,127.86
4/30/92 $11,274.24 $11,454.23
5/29/92 $11,433.64 $11,510.24
6/30/92 $11,274.25 $11,339.07
7/31/92 $11,808.06 $11,801.92
8/31/92 $11,637.24 $11,560.82
9/30/92 $11,797.39 $11,696.72
10/30/92 $12,074.97 $11,736.87
11/30/92 $12,523.38 $12,135.41
12/31/92 $12,768.94 $12,284.30
1/29/93 $12,898.02 $12,386.89
2/26/93 $12,951.81 $12,555.65
3/31/93 $13,209.99 $12,820.40
4/30/93 $12,629.09 $12,510.53
5/31/93 $12,994.84 $12,844.36
6/30/93 $13,001.10 $12,881.85
7/30/93 $12,990.28 $12,829.98
8/31/93 $13,477.41 $13,315.72
9/30/93 $13,390.81 $13,213.60
10/29/93 $13,650.61 $13,486.75
11/30/93 $13,488.24 $13,358.20
12/31/93 $13,604.08 $13,519.70
1/31/94 $13,954.30 $13,978.90
2/28/94 $13,691.63 $13,599.83
3/31/94 $13,078.74 $13,008.05
<PAGE>
4/29/94 $13,210.07 $13,174.70
5/31/94 $13,341.41 $13,390.07
6/30/94 $13,029.88 $13,062.40
7/29/94 $13,371.61 $13,491.02
8/31/94 $13,944.84 $14,042.87
9/30/94 $13,603.11 $13,699.75
10/31/94 $13,856.65 $14,007.09
11/30/94 $13,492.87 $13,497.61
12/30/94 $13,555.35 $13,697.56
1/31/95 $13,981.05 $14,052.53
2/28/95 $14,529.99 $14,599.64
3/31/95 $14,854.87 $15,029.76
4/28/95 $15,213.36 $15,472.00
5/31/95 $15,773.50 $16,089.46
6/30/95 $16,233.25 $16,462.52
7/31/95 $16,728.92 $17,008.21
8/31/95 $16,762.71 $17,050.66
9/29/95 $17,404.83 $17,769.83
10/31/95 $17,416.10 $17,706.34
11/30/95 $18,170.87 $18,482.74
12/29/95 $18,323.09 $18,838.76
1/31/96 $18,857.65 $19,479.20
2/29/96 $19,164.74 $19,660.42
3/29/96 $19,164.74 $19,849.71
4/30/96 $19,494.58 $20,142.09
5/31/96 $19,960.90 $20,660.66
6/28/96 $19,992.13 $20,739.43
7/31/96 $19,089.11 $19,823.67
Average Annual
Total Return
1 Year ended
7/31/96 14.10%
5 Years ended
7/31/96 12.70%
Inception (6/3/91)
to 7/31/96 12.30%
Past performance is not predictive of future
performance.
</TABLE>
+ The performance information in this chart represents past performance. The
investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
* The Fund began investing in the stocks comprising the Domini Social Index on
June 3, 1991. The above chart begins on June 30, 1991.
8
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
COMMON STOCKS -- 99.2%
APPAREL -- 1.1%
Brown Group Inc.......... 400 $ 5,450
Hartmarx Corp. (b)....... 600 2,925
Lands' End Inc........... 1,700 34,425
Liz Claiborne, Inc....... 3,200 104,400
Nike Inc. (Class B)...... 6,000 617,250
<PAGE>
Oshkosh B'Gosh, Inc.
(Class A)............... 300 4,725
Phillips-Van Heusen
Corp.................... 600 6,450
Reebok International
Ltd..................... 3,200 112,000
Russell Corp............. 1,600 53,600
Stride Rite Corp......... 1,900 13,775
Timberland Co. (b)....... 550 9,900
VF Corp.................. 2,700 150,862
------------
1,115,762
------------
COMMERCIAL PRODUCTS & SERVICES -- 1.8%
Autodesk Inc............. 2,100 48,431
Banta Corp............... 1,250 27,188
Cintas Corp.............. 1,900 96,900
Deluxe Corp.............. 3,500 129,063
Donnelley, (R.R.) &
Sons.................... 6,200 199,950
Harland (J.H.) Co........ 1,300 31,525
HON Industries Inc....... 1,300 39,000
Kelly Services (Class
A)...................... 1,775 49,700
Miller, (Herman) Inc..... 800 25,650
Moore Corp., Ltd......... 4,300 74,712
National Education Corp.
(b)..................... 1,300 19,662
National Service
Industries, Inc......... 1,900 72,437
New England Business
Services Inc............ 300 5,137
Pitney Bowes Inc......... 6,400 310,400
Standard Register Co..... 1,200 32,400
Xerox Corp............... 13,400 675,025
------------
1,837,180
------------
CONSTRUCTION -- 0.3%
Centex Corp.............. 1,500 43,500
Fleetwood Enterprises,
Inc..................... 1,500 45,563
Graco Inc................ 950 17,931
Kaufman & Broad Home
Corp.................... 1,700 20,188
Rouse Co................. 1,900 47,500
Sherwin-Williams Co...... 3,600 162,900
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
CONSTRUCTION -- CONTINUED
TJ International Inc..... 400 $ 6,400
------------
343,982
------------
CONSUMER PRODUCTS & SERVICES -- 0.1%
Avery Dennison Corp...... 2,200 113,850
ISCO Inc................. 200 1,875
Tennant Co............... 200 5,200
------------
120,925
------------
ENERGY -- 3.7%
Amoco Corp............... 20,800 1,391,000
<PAGE>
Anadarko Petroleum
Corp.................... 2,600 132,925
Apache Corp.............. 3,800 107,825
Atlantic Richfield Co.... 6,700 777,200
Consolidated Natural Gas
Co...................... 3,900 196,463
ENERGEN Corp............. 300 6,788
Enron Corp............... 10,800 425,250
Helmerich & Payne Inc.... 900 31,500
Louisiana Land &
Exploration Co.......... 1,300 70,200
Oryx Energy Co. (b)...... 4,400 69,300
Pennzoil Co.............. 2,200 108,075
Rowan Companies Inc.
(b)..................... 4,000 57,500
Santa Fe Energy Resources
Inc. (b)................ 3,700 42,087
Sun Co................... 3,400 87,975
Williams Companies
Inc..................... 4,500 206,437
------------
3,710,525
------------
FINANCIAL -- 12.8%
Ahmanson (H.F.) & Co..... 4,600 116,150
American Express Co...... 19,900 870,625
Banc One Corp............ 18,595 643,852
Bank of Boston........... 6,400 339,200
BankAmerica Corp......... 15,300 1,220,175
Bankers Trust (N.Y.)
Corp.................... 3,300 237,188
Barnett Banks Inc........ 4,100 251,638
Beneficial Corp.......... 2,100 113,400
Block (H. & R.), Inc..... 4,600 120,175
Cincinnati Financial
Corp.................... 2,195 122,371
CoreStates Financial
Corp.................... 9,200 361,100
Dime Bancorp Inc. (b).... 4,500 55,688
Edwards (A.G.), Inc...... 2,525 69,122
Federal Home Loan
Mortgage Corp........... 7,300 615,025
</TABLE>
9
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- CONTINUED
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
FINANCIAL -- CONTINUED
<S> <C> <C>
Federal National Mortgage
Association............. 45,900 $ 1,457,325
Fifth Third Bancorp...... 4,300 222,525
First Chicago Corp....... 13,506 519,981
First Fed Financial Corp.
(b)..................... 200 3,500
Golden West Financial
Corp.................... 2,400 133,200
Great Western Financial
Corp.................... 5,400 128,250
<PAGE>
Household International
Inc..................... 4,000 298,000
MBNA Corp................ 9,300 259,238
Mellon Bank Corp......... 5,800 305,950
Merrill Lynch & Co.,
Inc..................... 7,200 434,700
Morgan (J.P.) & Co.,
Inc..................... 7,900 679,400
Norwest Corp............. 15,500 550,250
Piper Jaffray Inc........ 600 7,125
PNC Bank Corp............ 14,400 419,400
ReliaStar Financial
Corp.................... 1,500 62,812
Schwab (Charles) Corp.... 7,200 173,700
Student Loan Marketing
Association............. 2,500 182,500
SunTrust Banks Inc....... 9,700 356,475
Transamerica Corp........ 2,800 193,550
Value Line Inc........... 300 9,975
Vermont Financial
Services Corp........... 100 3,150
Wachovia Corp............ 6,900 305,325
Wells Fargo & Co......... 3,950 919,856
Wesco Financial Corp..... 300 49,350
------------
12,811,246
------------
FOODS & BEVERAGES -- 10.9%
Ben & Jerry's (Class A)
(b)..................... 100 1,600
CPC International Inc.... 6,000 401,250
Campbell Soup Co......... 10,400 705,900
Coca-Cola Co............. 104,600 4,903,125
Fleming Cos. Inc......... 1,300 19,663
General Mills, Inc....... 6,700 363,475
Heinz (H.J.) Co.......... 15,300 506,813
Hershey Foods Corp....... 3,300 270,600
Kellogg Co............... 8,800 657,800
Odwalla Inc. (b)......... 300 5,175
PepsiCo, Inc............. 65,600 2,074,600
Quaker Oats Co........... 5,500 176,000
Ralston Purina Group..... 4,600 288,650
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
FOODS & BEVERAGES -- CONTINUED
Smucker (J.M.) Co. (Class
A)...................... 1,100 $ 19,525
Super Valu Inc........... 3,100 86,412
Sysco Corp............... 7,400 214,600
TCBY Enterprises, Inc.... 500 2,062
Tootsie Roll Industries,
Inc..................... 1,145 40,361
Wrigley, (Wm.) Jr. Co.... 4,900 252,962
------------
10,990,573
------------
HEALTH CARE -- 8.5%
Acuson Corp. (b)......... 1,100 14,575
Allergan Inc............. 2,600 105,950
Alza Corp. (b)........... 3,800 94,050
Angelica Corp............ 300 6,563
Apogee Enterprises,
Inc..................... 700 22,750
Becton Dickinson & Co.... 2,700 201,488
<PAGE>
Bergen Brunswig Corp.
(Class A)............... 1,895 49,270
Biomet Inc. (b).......... 5,300 81,488
Community Psychiatric
Centers (b)............. 2,000 16,000
Forest Laboratories, Inc.
(b)..................... 1,700 58,013
Humana Inc. (b).......... 6,800 113,900
Johnson & Johnson........ 55,600 2,654,900
Manor Care Inc........... 2,800 92,400
Medtronic Inc............ 9,700 459,537
Merck & Co., Inc......... 51,000 3,276,750
Mylan Laboratories
Inc..................... 4,700 70,500
Oxford Health Plans
(b)..................... 3,300 113,850
Schering-Plough Corp..... 15,400 848,925
St. Jude Medical Inc.
(b)..................... 3,300 110,962
Stryker Corp............. 4,300 105,686
Sunrise Medical Inc.
(b)..................... 600 9,225
United American
Healthcare (b).......... 200 2,050
------------
8,508,832
------------
HOUSEHOLD GOODS -- 6.0%
Alberto Culver Co. (Class
B)...................... 1,200 51,750
Avon Products, Inc....... 5,600 246,400
Bassett Furniture
Industries, Inc......... 300 6,600
Church & Dwight Co.,
Inc..................... 900 18,675
Clorox Co................ 2,100 190,838
Colgate-Palmolive Co..... 6,200 486,700
</TABLE>
10
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- CONTINUED
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
HOUSEHOLD GOODS -- CONTINUED
<S> <C> <C>
Handleman Co. (b)........ 700 $ 3,238
Harman International
Industries, Inc......... 830 37,246
Hasbro Inc............... 3,500 125,563
Huffy Corp............... 300 3,525
Kimberly-Clark Corp...... 11,832 899,232
Leggett & Platt Inc...... 3,600 93,600
Mattel, Inc.............. 11,585 286,729
Maytag Co................ 4,500 90,000
Newell Co................ 6,700 215,237
Oneida, Ltd.............. 200 3,100
Procter & Gamble Co...... 28,600 2,556,125
Rubbermaid Inc........... 6,400 184,000
Shaw Industries.......... 5,300 72,875
Snap-On Tools Corp....... 1,900 84,312
<PAGE>
Springs Industries Inc.
(Class A)............... 800 36,500
Stanhome, Inc............ 600 15,750
Stanley Works............ 3,900 111,150
Thomas Industries........ 200 3,475
Whirlpool Corp........... 3,200 157,600
------------
5,980,220
------------
INSURANCE -- 6.1%
Aetna Inc................ 6,570 381,885
Alexander & Alexander
Services Inc............ 1,600 26,400
American General Corp.... 8,900 309,275
American International
Group, Inc.............. 19,800 1,863,675
Chubb Corp............... 7,100 296,425
CIGNA Corp............... 3,200 340,800
General Re Corp.......... 3,300 484,275
Hartford Steam Boiler.... 800 34,900
Jefferson-Pilot Corp..... 3,100 162,750
Lincoln National Corp.... 4,200 179,025
Marsh & McLennan
Companies, Inc.......... 3,100 280,937
Providian Corp........... 3,800 150,575
SAFECO Corp.............. 5,300 182,519
St. Paul Companies....... 3,400 175,950
Torchmark Corp........... 3,300 140,662
Travelers Corp........... 19,764 835,008
UNUM Corp................ 3,000 183,000
USF&G Corp............... 5,400 85,725
USLIFE Corp.............. 1,425 42,394
------------
6,156,180
------------
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
MANUFACTURING -- 2.1%
Applied Materials, Inc.
(b)..................... 7,700 $ 183,838
Boston Scientific Corp.
(b)..................... 7,400 353,350
Brady (W.H.) (Class A)... 700 15,225
Briggs & Stratton
Corp.................... 1,200 45,150
Case Corp................ 3,000 132,750
Cincinnati Milacron...... 1,400 27,650
Clarcor, Inc............. 300 5,888
Deere & Co............... 11,100 396,825
Dionex Corp. (b)......... 400 13,900
Fastenal Co.............. 1,700 73,100
Gerber Scientific........ 800 11,800
Goulds Pumps, Inc........ 1,200 26,700
Hunt Manufacturing Co.... 400 5,250
Illinois Tool Works
Inc..................... 5,000 321,875
James River Corp. of
Virginia................ 3,600 90,900
Lawson Products, Inc..... 300 6,675
Marquette Electronics
(Class A) (b)........... 1,500 27,750
Millipore Corp........... 1,700 58,012
Nordson Corp............. 800 40,400
Thermo Electron Corp.
<PAGE>
(b)..................... 6,000 224,250
Watts Industries Inc.
(Class A)............... 1,100 17,737
Wellman Inc.............. 1,600 31,200
Zurn Industries Inc...... 400 8,150
------------
2,118,375
------------
MEDIA -- 3.9%
BET Holdings Inc. (Class
A) (b).................. 800 19,600
Comcast Corp. (Class
A)...................... 9,600 135,600
Disney (Walt) Co......... 28,400 1,579,750
Dow Jones & Co. Inc...... 4,100 160,413
Edmark Corp. (b)......... 500 8,125
Frontier Corp............ 6,700 188,438
King World Productions
Inc. (b)................ 1,600 57,400
Lee Enterprises, Inc..... 1,600 31,800
McGraw-Hill Inc.......... 4,100 159,900
Media General Inc. (Class
A)...................... 1,300 37,212
Meredith Corp............ 1,200 48,750
New York Times Co. (Class
A)...................... 4,300 125,237
</TABLE>
11
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- CONTINUED
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
MEDIA -- CONTINUED
<S> <C> <C>
Scholastic Corp. (b)..... 700 $ 45,675
Tele-Communications, Inc.
(Class A) (b)........... 26,90 383,325
Times Mirror Co. (Class
A)...................... 4,300 177,912
Turner Broadcasting
System Inc. (Class A)... 5,700 146,775
US West Media Group (b).. 19,000 327,750
Viacom Inc. (Class A)
(b)..................... 3,300 113,025
Washington Post Co.
(Class B)............... 450 140,175
------------
3,886,862
------------
MISCELLANEOUS -- 2.0%
Alco Standard Corp....... 5,700 249,375
Allwaste, Inc. (b)....... 1,300 5,688
American Greetings Corp.
(Class A)............... 3,500 84,875
Avnet, Inc............... 1,800 78,525
Bemis Co., Inc........... 2,000 65,250
CPI Corp................. 400 5,750
Cross, (A.T.) Co. (Class
A)...................... 500 6,688
DeVRY Inc. (b)........... 1,100 47,988
<PAGE>
Fedders Corp............. 1,300 7,475
Fuller (H.B.) Co......... 500 17,375
General Signal Corp...... 2,200 86,075
Harcourt General Inc..... 3,000 143,625
Hillenbrand Industries
Inc..................... 3,200 107,200
Ionics Inc. (b).......... 800 33,400
Jostens Inc.............. 1,600 30,600
KENETECH Corp. (b)....... 900 253
Marriott International
Corp.................... 5,300 272,287
Omnicom Group, Inc....... 3,000 121,500
Polaroid Corp............ 1,800 76,050
Sealed Air Corp. (b)..... 1,600 55,600
Service Corp.
International........... 5,000 275,625
Sonoco Products Co....... 4,005 118,147
Toro Co.................. 800 24,300
Whitman Corp............. 4,600 102,925
------------
2,016,576
------------
RESOURCE DEVELOPMENT -- 2.5%
Air Products & Chemicals,
Inc..................... 4,800 256,200
Aluminum Co. of America.. 7,200 417,600
ARCO Chemical Co......... 4,000 199,000
Battle Mountain Gold
Co...................... 10,700 97,638
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
RESOURCE DEVELOPMENT -- CONTINUED
Betz Laboratories,
Inc..................... 1,100 $ 49,913
Cabot Corp............... 3,300 82,913
Calgon Carbon Corp....... 1,300 15,275
Consolidated Papers
Inc..................... 1,800 90,450
Cyprus Amax Minerals
Co...................... 4,000 86,000
Echo Bay Mines Ltd....... 5,400 55,350
Inland Steel Industries
Inc..................... 2,300 39,963
Mead Corp................ 2,100 114,975
Morton International
Inc..................... 6,100 219,600
Nalco Chemical Co........ 3,200 96,000
Nucor Corp............... 3,600 168,750
Praxair Inc.............. 6,500 249,437
Sigma-Aldrich Corp....... 2,000 105,000
Westvaco Corp............ 4,500 127,687
Worthington Industries,
Inc..................... 3,800 72,200
------------
2,543,951
------------
RETAIL -- 10.9%
Albertson's, Inc......... 10,700 438,700
American Stores Co....... 6,400 238,400
Bob Evans Farms, Inc..... 1,900 26,600
Charming Shoppes Inc.
(b)..................... 3,700 23,819
Circuit City Stores
Inc..................... 3,900 122,850
<PAGE>
Claire's Stores Inc...... 1,600 45,800
Dayton-Hudson Corp....... 9,300 281,325
Dillard Department
Stores.................. 4,800 150,600
Dollar General Corp...... 3,308 85,582
Egghead Inc. (b)......... 300 2,775
Gap, Inc................. 12,000 357,000
Giant Food Inc. (Class
A)...................... 2,300 77,338
Gibson Greetings Inc.
(b)..................... 500 6,000
Great Atlantic & Pacific
Tea Co., Inc............ 1,700 46,963
Hannaford Brothers Co.... 2,000 63,000
Hechinger Co. (Class
A)...................... 800 2,800
Home Depot, Inc.......... 20,033 1,011,667
International Dairy
Queen, Inc. (Class A)
(b)..................... 1,300 26,000
K-Mart Corp. (b)......... 20,600 206,000
Kroger Co. (b)........... 5,400 203,850
Lillian Vernon Corp...... 200 2,450
Limited, Inc............. 13,000 250,250
Longs Drug Stores,
Inc..................... 700 27,125
Lowe's Companies, Inc.... 7,200 234,900
Luby's Cafeterias,
Inc..................... 1,100 26,675
May Department Stores
Co...................... 10,500 471,187
</TABLE>
12
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- CONTINUED
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
RETAIL -- CONTINUED
<S> <C> <C>
McDonald's Corp.......... 29,200 $ 1,354,150
Melville Corp............ 4,500 176,062
Mercantile Stores Co.,
Inc..................... 1,600 78,400
Morrison Restaurants
Inc..................... 0 4
Nordstrom Inc............ 3,400 141,100
Penney, (J.C.) Co.,
Inc..................... 9,300 462,675
Pep Boys................. 2,400 72,600
Price/Costco Inc. (b).... 8,315 170,457
Ruby Tuesday............. 500 9,875
Ryan's Family Steakhouse,
Inc. (b)................ 2,400 18,300
Sears Roebuck & Co....... 16,200 664,200
Skyline Corp............. 400 9,700
Specs Music Inc. (b)..... 200 300
Starbucks Corp. (b)...... 3,400 88,400
Tandy Corp............... 2,600 109,850
TJX Companies Inc........ 2,900 87,362
Toys 'R' Us, Inc. (b).... 11,620 306,477
<PAGE>
Wal-Mart Stores, Inc..... 96,400 2,313,600
Walgreen Co.............. 10,000 317,500
Whole Foods Market (b)... 800 25,100
Woolworth (F.W.) Co.
(b)..................... 5,500 105,875
------------
10,941,643
------------
TECHNOLOGIES -- 14.8%
Advanced Micro Devices,
Inc. (b)................ 5,300 64,263
Amdahl Corp. (b)......... 5,300 52,338
American Power Conversion
Corp. (b)............... 4,200 49,350
Analog Devices, Inc.
(b)..................... 4,600 96,025
Apple Computer, Inc.
(b)..................... 5,600 123,200
Automatic Data
Processing, Inc......... 12,100 479,463
Baldor Electric Co....... 1,200 23,850
Borland International,
Inc. (b)................ 1,300 9,750
Cisco Systems, Inc.
(b)..................... 26,700 1,381,725
Compaq Computer Corp.
(b)..................... 11,300 618,675
Computer Assoc.
International Inc....... 15,300 778,388
Cooper Industries Inc.... 4,400 173,250
Digital Equipment Corp.
(b)..................... 6,200 219,325
DSC Communications Corp.
(b)..................... 5,000 150,000
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
TECHNOLOGIES -- CONTINUED
Grainger, (W.W.) Inc..... 2,100 $ 147,525
Hewlett-Packard Co....... 42,900 1,887,600
Hubbell Inc. (Class B)... 1,430 98,134
Intel Corp............... 34,500 2,591,813
International Business
Machines Inc............ 22,500 2,427,188
MCI Communications
Corp.................... 28,700 706,737
Micron Technology,
Inc..................... 8,300 155,625
Molex, Inc............... 4,500 132,750
National Semiconductor
Corp. (b)............... 5,700 80,512
Novell Inc. (b).......... 14,300 152,831
Perkin-Elmer Corp........ 2,000 104,500
Quarterdeck Corp. (b).... 1,100 7,150
Raychem Corp............. 1,800 119,025
Shared Medical Systems
Corp.................... 1,000 55,000
Solectron Corp. (b)...... 2,100 66,150
Sprint Corp.............. 18,400 673,900
Stratus Computer Inc.
(b)..................... 1,100 20,212
Sun Microsystems Inc.
(b)..................... 7,900 431,537
Tandem Computers Inc.
(b)..................... 4,600 48,300
<PAGE>
Tektronix, Inc........... 1,400 53,550
Tellabs, Inc. (b)........ 3,800 227,050
Thomas & Betts Corp...... 1,700 62,050
3Com Corp. (b)........... 6,900 271,688
360 (Degrees)
Communications (b)...... 1 23
Xilinx Inc. (b).......... 3,300 106,837
------------
14,847,289
------------
TRANSPORTATION -- 2.3%
AMR Corp. (b)............ 3,800 299,725
Airborne Freight Corp.... 1,200 25,650
Alaska Air Group, Inc.
(b)..................... 600 14,400
CSX Corp................. 8,900 429,425
Conrail Inc.............. 3,400 222,700
Consolidated Freightways,
Inc..................... 1,700 33,363
Delta Air Lines, Inc..... 3,200 223,600
Federal Express Corp.
(b)..................... 2,300 178,825
GATX Corp................ 900 40,500
Norfolk Southern Corp.... 5,300 428,637
Roadway Services......... 750 10,969
Ryder System, Inc........ 3,700 98,512
Southwest Airlines
Inc..................... 6,000 148,500
</TABLE>
13
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- CONTINUED
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
TRANSPORTATION -- CONTINUED
<S> <C> <C>
UAL Corp. (b)............ 2,400 $ 122,400
Yellow Corp. (b)......... 1,300 16,575
------------
2,293,781
------------
UTILITIES -- 8.8%
AGL Resources Inc........ 2,200 40,150
American Water Works Co.,
Inc..................... 3,600 71,550
Ameritech Corp........... 23,100 1,282,050
Bell Atlantic Corp....... 18,400 1,087,900
BellSouth Corp........... 42,000 1,722,000
Brooklyn Union Gas
Company................. 2,300 57,500
California Energy Co.,
Inc. (b)................ 2,500 65,625
Citizens Utilities Co.
(Class A)(b)............ 8,431 92,745
Connecticut Energy
Corp.................... 200 3,900
Eastern Enterprises...... 900 28,913
El Paso Natural Gas
Co...................... 1,500 58,500
Equitable Resources
Inc..................... 1,300 32,988
Idaho Power Co........... 1,600 47,800
LG & E Energy Corp....... 3,000 67,125
MCN Corp................. 3,200 75,200
NICOR Inc................ 2,100 59,587
Noram Energy Corp........ 5,800 63,075
Northwestern Public
Service Co.............. 200 5,475
NYNEX.................... 18,100 812,237
Oklahoma Gas & Electric
Co...................... 1,700 66,725
ONEOK Inc................ 1,200 31,650
Pacific Enterprises...... 3,400 99,875
Pacific Telesis Group.... 17,600 591,800
Peoples Energy Corp...... 1,300 40,462
Potomac Electric Power
Co...................... 5,000 120,625
Public Service Co. of
Colorado................ 2,900 102,587
SBC Telecommunications... 25,500 1,246,312
Southern New England
Telecom................. 3,200 122,800
<CAPTION>
DESCRIPTION SHARES VALUE
------------------------------ ------- ------------
<S> <C> <C>
UTILITIES -- CONTINUED
Telephone & Data
Systems................. 2,700 $ 104,287
US West Communications
Group................... 19,700 598,387
Washington Gas Light
Co...................... 2,000 41,750
------------
8,841,580
------------
VEHICLE COMPONENTS -- 0.6%
Cooper Tire & Rubber
Co...................... 3,600 67,950
Cummins Engine Inc....... 1,600 59,800
Dana Corp................ 4,400 122,650
Federal-Mogul Corp....... 1,200 20,250
Genuine Parts............ 5,000 211,875
Modine Manufacturing
Co...................... 1,600 42,000
SPX Corp................. 400 9,950
Smith, (A.O.)............ 1,200 26,700
Spartan Motors Inc.
(b)..................... 300 1,987
------------
563,162
------------
Total Common Stocks (Cost,
$83,008,100).................. 99,628,644
------------
PREFERRED STOCK -- 0.0%
Aetna Inc. 6.25%
convertible............. 1 56
------------
Total Preferred Stock (Cost,
$65).......................... 56
------------
TOTAL INVESTMENTS -- 99.2%
(COST, $83,008,165) (A)........... 99,628,700
OTHER ASSETS, LESS LIABILITIES --
0.8%.............................. 771,858
------------
NET ASSETS -- 100.0%............... $100,400,558
------------
------------
</TABLE>
- ------------
(a)The aggregate cost for federal income tax purposes is $83,008,165, the
aggregate gross unrealized appreciation is $18,466,003, and the aggregate
gross unrealized depreciation is $1,845,468, resulting in net unrealized
appreciation of $16,620,535.
(b)Non-income producing security.
See Notes to Financial Statements
14
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $83,008,165)....................... $ 99,628,700
Cash.......................................................... 1,313,323
Dividends receivable.......................................... 175,702
------------
Total assets.............................................. 101,117,725
------------
LIABILITIES:
Payable for securities purchased.............................. 675,937
Expense payment fee payable................................... 41,230
------------
Total liabilities......................................... 717,167
------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS.......... $100,400,558
------------
------------
NET ASSETS CONSIST OF:
Paid in capital............................................... $100,400,558
------------
------------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $268).............. $1,514,033
EXPENSES:
Expense payment fee................................ $ 372,596
Amortization of organization expenses.............. 8,657
-----------
Total expenses................................. 381,253
----------
NET INVESTMENT INCOME............................................... 1,132,780
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales................................ 3,459,916
Cost of securities sold............................ 2,762,579
-----------
Net realized gain on investments............................ 697,337
NET UNREALIZED APPRECIATION OF INVESTMENTS
Beginning of year.................................. 9,759,028
End of year........................................ 16,620,535
-----------
Net change in unrealized appreciation of investments........ 6,861,507
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $8,691,624
----------
----------
</TABLE>
See Notes to Financial Statements
16
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JULY 31, JULY 31,
1996 1995
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income............................ $ 1,132,780 $ 734,456
Net realized gain on investments................. 697,337 405,427
Net change in unrealized appreciation of
investments..................................... 6,861,507 8,729,434
------------ -----------
Net Increase in Net Assets Resulting from
Operations.................................. 8,691,624 9,869,317
------------ -----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Additions........................................ 52,533,365 14,888,452
Reductions....................................... (14,827,219) (2,076,641)
------------ -----------
Net Increase in Net Assets from Transactions
in Investors' Beneficial Interests.......... 37,706,146 12,811,811
------------ -----------
Total Increase in Net Assets............. 46,397,770 22,681,128
NET ASSETS:
Beginning of year................................ 54,002,788 31,321,660
------------ -----------
End of year...................................... $100,400,558 $54,002,788
------------ -----------
------------ -----------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
YEAR ENDED
------------------------------------------------------------------------------
JULY 31, 1996 JULY 31, 1995 JULY 31, 1994 JULY 31, 1993 JULY 31, 1992
-------------- ------------- ------------- ------------- -------------
FINANCIAL HIGHLIGHTS:
<S> <C> <C> <C> <C> <C>
Net investment income to average net
assets............................. 1.48%(1) 1.85%(2) 2.13%(2) 1.88% 1.99%
Expenses to average net assets...... 0.50%(1) 0.43%(2) 0.29%(2) 0.29% 0.29%
Portfolio turnover rate............. 5% 6% 8% 4% 3%
Average commission rate paid per
share.............................. $0.0496 -- -- -- --
</TABLE>
- --------------------------------------------------------------------------------
(1) Had the Expense Payment Agreement not been in place, the ratios of net
investment income and expenses for the year ended July 31,1996 would have
been 1.14% and 0.85% respectively.
(2) Reflects a voluntary waiver of fees by the Administrator and Adviser due to
the limitations set forth in the Expense Reimbursement Agreement. Had the
Administrator and Adviser not waived their fees, for the years ended July
31, 1995 and 1994, the ratios of net investment income and expenses to
average net assets would have been 1.75% and 0.53% and 2.00% and 0.42%
respectively.
See Notes to Financial Statements
17
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. Domini Social Index
Portfolio (the "Index Portfolio") is registered under the Investment Company Act
of 1940 (the "Act") as a no-load, diversified, open-end management investment
company which was organized as a trust under the laws of the State of New York
on June 7, 1989. The Index Portfolio intends to correlate its investment
portfolio as closely as is practicable with the Domini Social Index (the
"Index"), which is a common stock index developed and maintained by Kinder,
Lydenberg, Domini & Co., Inc. ("KLD"), the Index Portfolio's Adviser. The
Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Index Portfolio. The Index Portfolio commenced
operations upon effectiveness on August 10, 1990 and began investment operations
on June 3, 1991.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. The
following is a summary of the Index Portfolio's significant accounting policies.
(A) VALUATION OF INVESTMENTS: The Index Portfolio values securities at the
last reported sale price, or at the last reported bid price if no sales are
reported.
(B) DIVIDEND INCOME: Dividend income is recorded on the ex-dividend date.
(C) FEDERAL TAXES: The Index Portfolio's policy is to comply with the
applicable provisions of the Internal Revenue Code. Accordingly, no provision
for Federal taxes is deemed necessary.
(D) DEFERRED ORGANIZATION EXPENSE: Expenses incurred by the Index
Portfolio in connection with its organization are being amortized by the Index
Portfolio on a straight-line basis over a five-year period.
(E) OTHER: Investment transactions are accounted for on the trade date.
Gains and losses are determined on the basis of identified cost.
2. TRANSACTIONS WITH AFFILIATES.
(A) INVESTMENT ADVISORY FEES: The Index Portfolio has retained KLD as the
Investment Adviser of the Index Portfolio. The services provided by KLD consist
of the determination of the stocks to be included in the Index and evaluating,
in accordance with KLD's criteria, debt securities which may be purchased by the
Index Portfolio. For its services under the Investment Advisory Agreement, KLD
receives from the Index Portfolio a fee accrued daily at an annual rate equal to
0.05% of the Index Portfolio's average daily net assets.
(B) INVESTMENT MANAGEMENT FEES: The Index Portfolio has retained Mellon
Equity Associates ("MEA") as the Investment Manager of the Index Portfolio. MEA
does not determine the composition of the Index. Under the Management Agreement,
the Index Portfolio pays MEA an investment management fee equal on an annual
basis to the following percentages of the Index Portfolio's average daily net
assets for its then-current fiscal year: 0.10% of assets up to $50 million;
0.30% of assets between $50 million and $100 million; 0.20% of assets between
$100 million and $500 million; and 0.15% of assets over $500 million.
(C) ADMINISTRATION FEES: The Index Portfolio has retained Signature
Broker-Dealer Services, Inc. ("Signature") to serve as Administrator of the
Index Portfolio. Certain officers of Signature serve as officers and trustee to
the Index Portfolio. Under the Administrative Services Agreement, Signature
provides management and administrative services necessary for the operations of
the Index Portfolio, furnishes office space and facilities required for
conducting the business of the Index Portfolio and pays the compensation of the
Index Portfolio's officers and Trustee affiliated with Signature. For these
services, Signature receives from the Index Portfolio a fee accrued daily at an
annual rate equal to 0.05% of the Index Portfolio's average daily net assets.
(D) EXPENSE PAYMENT FEES: The Administrator has agreed to pay all of the
operating expenses of the Index Portfolio, including advisory, management and
administration fees, subject to an Expense Payment Arrangement. Under this
arrangement, the Administrator receives expense payment fees from the Index
Portfolio at an annual rate equal to 0.50% of the average daily net assets of
the Index Portfolio. The Expense Payment Arrangement will terminate on December
31, 1999. For the year ended July 31, 1996, the Administrator incurred
approximately $264,025 in expenses on behalf of the Index Portfolio.
3. INVESTMENT TRANSACTIONS. Purchase and sales of investments, other than U.S.
Government securities and short-term obligations, aggregated $41,791,647 and
$3,387,873, respectively.
18
<PAGE>
[LOGO]
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
Domini Social Index Portfolio:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the Domini Social Index Portfolio as of July
31, 1996, and the related statement of operations for the year then ended,
statement of changes in net assets for each of the years in the two-year period
then ended and financial highlights for each of the years in the five-year
period then ended. These financial statements and financial highlights are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned by the
Portfolio as of July 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Domini Social Index Portfolio at July 31, 1996, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended and financial highlights for each of the years in
the five-year period then ended in conformity with generally accepted accounting
principles.
Boston, Massachusetts
August 23, 1996
19
<PAGE>
DOMINI SOCIAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in Domini Social Index Portfolio, at value (Note 1)............ $80,905,578
Receivable for fund shares sold........................................... 67,296
-----------
Total Assets.......................................................... 80,972,874
-----------
LIABILITIES:
Expense payment fee payable (Note 2)...................................... 57,653
-----------
NET ASSETS.................................................................... $80,915,221
-----------
-----------
NET ASSETS CONSIST OF:
Paid-in capital........................................................... $62,848,990
Undistributed net investment income....................................... 74,275
Accumulated net realized gain on investment............................... 578,085
Net unrealized appreciation of investment................................. 17,413,871
-----------
$80,915,221
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
($80,915,221 DIVIDED BY 4,844,260 shares).................................. $ 16.70
-----------
-----------
</TABLE>
See Notes to Financial Statements
20
<PAGE>
DOMINI SOCIAL EQUITY FUND
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO:
Investment income from Portfolio............................................ $1,458,015
Expenses from Portfolio..................................................... (366,901)
----------
Net Income from Portfolio............................................... 1,091,114
EXPENSES (NOTES 1 AND 2):
Expense payment fee.............................................. 339,355
Amortization of organization expenses............................ 13,108
---------
Total Expenses.......................................................... 352,463
----------
NET INVESTMENT INCOME........................................................... 738,651
----------
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized gain from Portfolio............................................ 678,218
Net change in unrealized appreciation from Portfolio........................ 7,655,739
----------
Net realized and unrealized gain from Portfolio............................. 8,333,957
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS...................................... $9,072,608
----------
----------
</TABLE>
See Notes to Financial Statements
21
<PAGE>
DOMINI SOCIAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JULY 31, 1996 JULY 31, 1995
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income......................... $ 738,651 $ 547,376
Net realized gain from Portfolio.............. 678,218 405,386
Net change in unrealized appreciation from
Portfolio.................................... 7,655,739 8,728,561
------------- -------------
Net Increase in Net Assets from
Operations................................. 9,072,608 9,681,323
------------- -------------
FROM DISTRIBUTIONS AND DIVIDENDS:
Dividends to shareholders from net investment
income....................................... (703,445) (596,572)
Distributions to shareholders from net
realized gain................................ (349,085) (224,400)
------------- -------------
Net Decrease in Net Assets from
Distributions and Dividends................ (1,052,530) (820,972)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares.................. 36,711,039 18,000,269
Net asset value of shares issued in
reinvestment of dividends and
distributions................................ 831,237 607,013
Payments for shares redeemed.................. (19,284,669) (4,199,386)
------------- -------------
Net Increase in Net Assets from Capital
Share Transactions......................... 18,257,607 14,407,896
------------- -------------
Total Increase in Net Assets.............. 26,277,685 23,268,247
NET ASSETS:
Beginning of year............................. 54,637,536 31,369,289
------------- -------------
End of year (including undistributed net
investment income of $74,275 and $39,069,
respectively)................................ $ 80,915,221 $54,637,536
------------- -------------
------------- -------------
OTHER INFORMATION
SHARE TRANSACTIONS:
Sold.......................................... 2,236,871 1,368,854
Issued in reinvestment of dividends and
distributions................................ 50,571 47,501
Redeemed...................................... (1,122,922) (322,273)
------------- -------------
Net increase.................................. 1,164,520 1,094,082
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements
22
<PAGE>
DOMINI SOCIAL EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
----------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of year...... $ 14.85 $ 12.13 $ 12.00 $11.06 $ 9.95
---------- ---------- ---------- ------ ------
Income from investment operations:
Net investment income............... 0.163 0.172 0.175 0.137 0.117
Net realized and unrealized gain on
investments........................ 1.927 2.825 0.178 0.968 1.106
---------- ---------- ---------- ------ ------
Total income from investment
operations............................. 2.090 2.997 0.353 1.105 1.223
---------- ---------- ---------- ------ ------
Less distributions and dividends:
Dividends to shareholders from net
investment income.................. (0.158) (0.195) (0.150) (0.150) (0.113)
Distributions to shareholders from
net realized gain.................. (0.082) (0.082) (0.073) (0.015) --
---------- ---------- ---------- ------ ------
Total distributions..................... (0.240) (0.277) (0.223) (0.165) (0.113)
---------- ---------- ---------- ------ ------
Net asset value, end of year............ $ 16.70 $ 14.85 $ 12.13 $12.00 $11.06
---------- ---------- ---------- ------ ------
---------- ---------- ---------- ------ ------
Ratios/supplemental data
Total return........................ 14.11% 25.10% 2.90% 10.00% 12.30%
Net assets, end of year (in
000's)............................. $80,915 $54,638 $31,369 $17,229 $7,174
Ratio of expenses to average net
assets............................. 0.98%(a) 0.90%(b) 0.75%(b) 0.75 (b) 0.75%(b)
Ratio of net investment income to
average net assets................. 1.01%(a) 1.38%(b) 1.67%(b) 1.41 (b) 1.53%(b)
</TABLE>
- --------------------------------------------------------------------------------
(a) Had the Expense Payment Agreement not been in place the ratio of expenses to
average net assets and the ratio of net investment income to average net
assets for the year ended July 31, 1996, would have been 1.07% and 0.92%,
respectively.
(b) Reflects a voluntary waiver of fees by the Administrator and Adviser due to
limitations set forth in the Expense Reimbursement Agreement. Had the
Administrator and Adviser not waived their fees, the ratios of net
investment income and expenses to average net assets for the years ended
July 31, 1995, 1994, 1993 and 1992 would have been 1.13% and 1.15%, 1.39%
and 1.03%, 1.26% and 0.90% and 1.53% and 0.75%, respectively.
See Notes to Financial Statements
23
<PAGE>
DOMINI SOCIAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1996
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES. Domini Social Equity Fund (the "Fund"),
formerly the Domini Social Index Trust is a Massachusetts business trust
registered under the Investment Company Act of 1940 (the "Act"), as an open-end
management investment company. The Fund invests substantially all of its assets
in the Domini Social Index Portfolio (the "Portfolio"), an open-end, diversified
management investment company having the same investment objective as the Fund.
The value of such investment reflects the Fund's proportionate interest in the
net assets of the Portfolio (80.59% at July 31, 1996). The financial statements
of the Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The presentation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
the Funds significant accounting policies.
A. VALUATION OF INVESTMENTS. Valuation of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B. INVESTMENT INCOME AND DIVIDENDS TO SHAREHOLDERS. The Fund earns income
daily, net of Portfolio expenses, on its investment in the Portfolio. Dividends
to shareholders are declared and paid semiannually from net investment income.
Distributions to shareholders of realized capital gains, if any, are made
annually.
C. FEDERAL TAXES. The Fund's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income, including net realized
gains, if any, within the prescribed time periods. Accordingly, no provision for
federal income or excise tax is necessary.
D. DEFERRED ORGANIZATION EXPENSES. Organizational costs are being
amortized on a straight-line basis over a five-year period. The amount paid by
the Fund on any redemption of the Fund's initial shares will be reduced by the
pro rata portion of any unamortized organization expenses which the number of
the initial shares redeemed bears to the total number of initial shares
outstanding immediately prior to such redemption. To the extent that the
proceeds of the redemptions are less than such pro rata portion of any
unamortized organization expenses, Signature Broker-Dealer Services, Inc.
("Signature"), the Administrator and Distributor of the Fund, has agreed to
reimburse the Fund for such difference.
E. OTHER. All net investment income of the Portfolio is allocated pro rata
among the Fund and the other investors in the Portfolio.
2. TRANSACTIONS WITH AFFILIATES.
A. ADMINISTRATION. The Fund has retained Signature to serve as
Administrator and Distributor. Signature provides administrative services
necessary for the operations of the Fund, furnishes office space and facilities
required for conducting the business of the Fund and pays the compensation of
the Fund's officers and Trustee affiliated with Signature. For its services
under the Administrative Services Agreement, Signature receives from the Fund a
fee accrued daily at an annual rate equal to 0.15% of the Fund's average daily
net assets. The Portfolio has entered into a similar agreement with Signature at
a rate of 0.05%.
B. DISTRIBUTION. The Trustees have adopted a Distribution Plan (the
"Plan") in accordance with Rule 12b-1 under the Act. Signature acts as agent of
the Fund and principal underwriter of shares of the Fund pursuant to the Plan.
Under the Plan, Signature may receive a fee from the Fund at an annual rate not
to exceed 0.25% of the Fund's average daily net assets in anticipation of, or as
reimbursement for, costs and expenses incurred in connection with the sale of
shares of the Fund.
C. EXPENSE PAYMENT FEE. The Administrator pays certain expenses of the
Fund and receives a fee from the Fund, computed and paid monthly, such that
after such fee the aggregate expenses will not exceed 0.98% of the fund's
average daily net assets. For the year ended July 31, 1996, Signature incurred
$518,341 in expenses on behalf of the Fund, including the Fund's share of the
Portfolio's expenses. The expense payment agreement will terminate on December
31, 1999 unless sooner terminated on mutual consent of the parties.
3. INVESTMENT TRANSACTIONS. Additions and reductions in the Fund's investment
in the Portfolio aggregated $36,711,039 and $20,664,227, respectively.
24
<PAGE>
[LOGO]
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
Domini Social Equity Fund:
We have audited the accompanying statement of assets and liabilities of the
Domini Social Equity Fund as of July 31, 1996, and the related statement of
operations for the year then ended, statements of changes in net assets for each
of the years in the two-year period then ended and financial highlights for each
of the years in the five-year period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Domini Social Equity Fund at July 31, 1996, the results of its operations for
the year then ended, changes in its net assets for each of the years in the
two-year period then ended and financial highlights for each of the years in the
five-year period then ended in conformity with generally accepted accounting
principles.
Boston, Massachusetts
September 20, 1996
25
<PAGE>
PORTFOLIO INVESTMENT ADVISER
Kinder, Lydenberg, Domini & Co., Inc.
129 Mt. Auburn Street
Cambridge, MA 02138
(617) 547-7479
PORTFOLIO INVESTMENT MANAGER
Mellon Equity Associates
500 Grant Street, Suite 3700
Pittsburgh, PA 15258
ADMINISTRATOR AND DISTRIBUTOR
Signature Broker-Dealer Services, Inc.
6 St. James Avenue
Boston, MA 02116
(800) 762-6814
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, MA 02111
TRANSFER AGENT
Fundamental Shareholder Services, Inc.
90 Washington Street
New York, NY 10006
(800) 782-4165
AUDITORS
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110
LEGAL COUNSEL
Bingham, Dana & Gould
150 Federal Street
Boston, MA 02110
ANNUAL
REPORT
JULY 31, 1996
THOUSANDS OF STARFISH
HAD WASHED ASHORE.
A LITTLE GIRL BEGAN THROWING THEM
IN THE WATER SO THEY WOULDN'T DIE.
"DON'T BOTHER, DEAR" HER MOTHER SAID,
"IT WON'T REALLY MAKE ANY
DIFFERENCE." THE GIRL STOPPED
FOR A MOMENT AND LOOKED AT
THE STARFISH IN HER HAND.
"IT WILL MAKE A DIFFERENCE
TO THIS ONE."
.
M Printed on Recycled Paper
INVESTING FOR GOOD-SM-
- --------------------------------------------------------------------------------
THE DOMINI SOCIAL EQUITY FUND
