RULE 497(e)
FILE NOS. 33-29180
AND 811-05823
SUPPLEMENT
TO
PROSPECTUS DATED DECEMBER 1, 2000
FOR
DOMINI SOCIAL EQUITY FUNDSM
NEW SUBMANAGER
On January 1, 2001 State Street Global Advisors (SSgA), the investment
management division of State Street Bank and Trust Company, replaced Mellon
Equity Associates LLP as the submanager of the Domini Social Index Portfolio.
The Domini Social Equity Fund invests all of its assets in the Portfolio. SSgA
is located at One International Place, Boston, Massachusetts 02110. Domini
Social Investments LLC (DSIL) will continue to be the investment manager of the
Portfolio and will monitor and supervise SSgA. The Fund's objective and
investment strategy will remain unchanged.
As the submanager of the Portfolio, SSgA will implement the daily
transactions necessary to maintain the proper correlation between the Portfolio
and the Domini 400 Social IndexSM (the Index). SSgA will not determine the
composition of the Index. DSIL may terminate SSgA's services as the submanager
to the Portfolio at any time.
Under applicable law, SSgA may not serve as the Portfolio's submanager
after May 31, 2001 without shareholder approval. Shareholders of the Domini
Social Equity Fund will be asked to approve SSgA as the submanager of the
Portfolio at a special meeting of shareholders to be held prior to May 31,
2001.
FUND FEES AND EXPENSES
Effective January 1, 2001, DSIL has lowered the Fund's fees by agreeing to
waive fees and/or reimburse the expenses of the Domini Social Equity Fund so
that the Fund's expenses will not exceed, on a yearly basis, 0.92% of the
Fund's average daily net assets. The table below describes the fees and
expenses that you would pay if you buy and hold shares of the Domini Social
Equity Fund.*
SHAREHOLDER FEES (fees paid directly by you)
Sales Charge (Load) Imposed on Purchases: None
Deferred Sales Charge (Load): None
Redemption Fees
Redemptions by Check: None
Redemptions by Bank Wire: $10**
Exchange Fees: None
ANNUAL FUND OPERATING EXPENSES
(expenses deducted from the Fund's assets)
Management Fees: 0.20%
Distribution (12b-1) Fees: 0.25%
<PAGE>
Other Expenses
Administrative Services and
Sponsorship Fee: 0.50%
Other Expenses: 0.09% 0.59%
Total Annual Fund Operating Expenses: 1.04%
Fee Waiver:+ 0.12%
NET EXPENSES: 0.92%
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*The table reflects the expenses of the Domini Social Equity Fund and the
Domini Social Index Portfolio, the underlying portfolio in which the Fund
invests. The information in the table and the example below is based on
expenses for the fiscal year ending July 31, 2000, as revised to reflect
current fee waivers.
** You may redeem by writing or calling the Fund. If you wish to receive your
redemption proceeds by wire, there is a $10 wire service fee. For additional
information, please refer to the Shareholder Manual, page A-1.
+ For the period ending January 1, 2002, DSIL has contractually agreed to waive
certain fees and/or reimburse certain expenses, including management fees, so
that the Fund's expenses will not exceed, on a per annum basis, 0.92% of its
average daily net assets.
EXAMPLE
The following example is intended to help you compare the cost of
investing in the Domini Social Equity Fund with the cost of investing in other
mutual funds. It illustrates the hypothetical expenses that you would incur if
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your shares at the end of each period. This example assumes that the Fund
provides a return of 5% a year, all dividends and distributions are reinvested,
operating expenses remain constant for the time period indicated and the fee
waiver reflected in the fee table above is in effect for the one-year time
period.
------------------- -------------- ------------ ------------
1 Year 3 Years 5 Years 10 Years
------------------- -------------- ------------ ------------
$94 $325 $576 $1,292
------------------- -------------- ------------ ------------
This example should not be considered to represent actual expenses or
performance from the past or the future. Actual future expenses may be higher
or lower than those shown.
Domini 400 Social IndexSM is a service mark of Kinder, Lydenberg, Domini &
Co., Inc. (KLD) and is used under license. KLD is the owner of the Index but is
not the manager of the Portfolio.
The date of this Supplement is January 1, 2001
Cusip # 257132100
DSEF-Prosp Supp 1/1/01 Printed on recycled paper
<PAGE>
RULE 497(e)
FILE NOS. 33-29180
AND 811-05823
SUPPLEMENT
DATED JANUARY 1, 2001
TO
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 1, 2000
FOR
DOMINI SOCIAL EQUITY FUNDSM
DOMINI SOCIAL BOND FUNDSM
On January 1, 2001 State Street Global Advisors (SSgA), the investment
management division of State Street Bank and Trust Company, became the
submanager of the Domini Social Index Portfolio. State Street Bank and Trust
Company is a wholly owned subsidiary of State Street Corporation, a publicly
held bank holding company. SSgA is located at One International Place, Boston,
Massachusetts 02110.
As the submanager of the Portfolio, SSgA will implement the daily
transactions necessary to maintain the proper correlation between the Portfolio
and the Domini 400 Social IndexSM (the Index). SSgA will not determine the
composition of the Index. Domini Social Investments LLC (DSIL) will continue to
be the investment manager of the Portfolio and will monitor and supervise SSgA.
DSIL may terminate SSgA's services as the submanager to the Portfolio at any
time.
SSgA's management fees are paid by DSIL. SSgA's annual fee is the greater
of $300,000 or the fee based on the following schedule:
0.02% of the first $1 billion of net assets managed
0.01% of the next $1 billion of net assets managed
0.0075% of net assets managed in excess of $2 billion
Under applicable law, SSgA may not serve as the Portfolio's submanager
after May 31, 2001 without shareholder approval. Shareholders of the Domini
Social Equity Fund will be asked to approve SSgA as the submanager of the
Portfolio at a special meeting of shareholders to be held prior to May 31,
2001.
Domini 400 Social IndexSM is a service mark of Kinder, Lydenberg, Domini &
Co., Inc. (KLD) and is used under license. KLD is the owner of the Index but is
not the manager of the Portfolio.
Cusip # 257132100
DSEF-SAI Supp 1/1/01 Printed on recycled paper
