<PAGE>
DEVCAP SHARED RETURN FUND
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JANUARY 31, 1999
- -------------------------------------------------------------------------------
The DEVCAP Shared Return Fund (DEVCAP) commenced operations in October 1995.
DEVCAP is constructed to be a Socially Responsible Mutual Fund that invests in
a Portfolio that is consistent with the Domini Social Index. DEVCAP has
closely tracked the S&P 500 through investments in 400 large-cap stocks, which
were screened to reflect a positive social agenda.
DEVCAP investment results are only part of our story. An even greater part
of our history is portrayed in the charitable support provided by our invest-
ors in fostering small enterprise development to less fortunate people who are
striving to improve their lives and the lives of those around them.
- -------------------------------------------------------------------------------
PRESIDENT'S LETTER TO INVESTORS
- -------------------------------------------------------------------------------
March 25, 1999
Dear Shareholder:
The DEVCAP Shared Return Fund recovered and produced strong results for the
six-month period ended January 31, 1999. We have remained faithful to our two
primary objectives: corresponding to the performance of the socially screened
corporations comprising the Domini 400 Social Index; and enabling our
investors to make a donation in support of economic development of
underprivileged people in developing countries.
Our investment performance over the year ending January 31, 1999 (see table
below) again surpassed our expectations, producing a return of 37.29%. (Almost
five percentage points above the return of the S&P 500 over the same time
period). Of course, 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. In relation to the S&P 500, the Fund
benefited from its increased exposure to the technology sector. In addition,
Morningstar, Inc. gave the Fund its highest rating of 5 stars for the three
year period ending 12/31/98 among 2,802 funds.
Shareholders in the Fund contributed approximately $341,000 from their 1998
investment returns to Development Capital Fund ("DEVCAP Non-Profit"),
which represents a 40% increase over 1997. Changes were made in 1998 that en-
abled shareholders to make their charitable contributions by donating appreci-
ated shares of the Fund; thus allowing many to deduct the full fair market
value of shares on their annual income tax return. So far this year, DEVCAP
Non-Profit contributions have been designated as loan capital for village
banks in Kenya, Bulgaria and El Salvador. In 1998, contributions to DEVCAP
Non-Profit were used by Catholic Relief Services to fund village banks in Nic-
aragua, Senegal, Uganda, Cambodia and Vietnam. We will continue to provide up-
dates on all of these programs through our newsletter, Global Dividends.
We saw a volatile market over this past reporting period and we should be
mindful that volatility might remain ahead. Many of the favorable fundamentals
remain in place that carried us to the strong performance history that our
fund has produced. We recently saw the Dow Jones Industrial Average break
through the milestone 10,000-point level for the first time and we have now
seen the level drop back significantly. Increasing oil prices, shortages in
the workforce, weaknesses in earnings reports in the technology sector, and
concerns that stock prices are overvalued lead us to expect a moderation in
the returns we have enjoyed. There remains instability in Eastern Europe, as
well as continuing weakness in the Asian markets. Should
<PAGE>
inflation begin to raise its head, an accompanying adjustment in interest
rates may also be foreseen.
What does this mean for our shareholders? The main thing to remember in
times of volatility in the market is to stick to your investment strategy and
to take care not to invest more than you will need to cover short-term needs.
Those liquidating holdings during the volatility in the third quarter of 1998
may have suffered unnecessary losses as the market rebounded to new highs in
the fourth quarter. We still believe that investing through an indexed mutual
fund is an appropriate way to spread investment risks and to enjoy the long-
term benefits of a strong economy such as ours. We do encourage caution and a
careful analysis of those assets that can remain at risk in periods of antici-
pated high volatility.
Last Fall we distributed a survey which asked shareholders to rank in terms
of importance to them a range of social screens including human rights, the
environment, diversity, alcohol, tobacco, gambling, military weapons, nuclear
power, and abortion/contraception. Of 720 shareholders surveyed, over 320 re-
sponded. The top four concerns for respondents, listed in order of concern,
were human rights, environment, manufacture of military weapons, and
abortion/contraception. We are examining alternative screening processes,
which may lead to modifying our portfolio and the correspondence with the Do-
mini Social Index. Alternatives will be presented to our Trustees and of
course careful consideration will be given to costs. You will be informed as
to your alternatives and given ample opportunity to react and comment before
any significant change in direction occurs.
We appreciate your continued support of DEVCAP and value the opinions you
expressed to us in the surveys. We believe that this year holds a great deal
of promise for the Fund, and we look forward to continuing our partnership
with you to provide hope to an even greater number of working poor.
Sincerely,
/s/ Joseph N. St. Clair
Joseph N. St. Clair
President
<TABLE>
<CAPTION>
(As of (As of
12/31/98) 1/31/99)
Average Annual Total Return --------- -------
<S> <C> <C>
One Year..................................................... 31.89% 37.29%
Five Years................................................... 22.99% 23.84%
Inception (6/3/91)........................................... 18.18% 18.88%
</TABLE>
The Fund, which commenced investment operation on October 16, 1995, invests
all of its assets in an existing separate registered investment company which
has the same investment objective as the fund ("The Portfolio"). Consistent
with regulatory guidance, performance for the period prior to the Fund's in-
ception reflects the performance of the Portfolio adjusted to reflect the de-
duction of the charges and expenses of the Fund.
* Past performance does not guarantee future results. 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. Morning-
star, Inc. proprietary ratings reflect historical risk-adjusted performance as
of 12/31/98. The top 10% of the funds in an investment category receive 5
stars, the next 22.5% receive 4, and the next 35% receive 3. These ratings may
change monthly and are calculated from the fund's 3, 5 and 10 year average an-
nual returns in excess of 90-day Treasury Bill returns with appropriate fee
adjustment and a risk factor that reflects fund performance below 90-day Trea-
sury Bill returns. Distributor: CBIS Financial Services, Inc.
<PAGE>
COMPARISON OF $10,000 INVESTMENT IN THE
DEVCAP SHARED RETURN FUND /(1)/ AND S&P 500 /(2)/
[PERFORMANCE CHART APPEARS HERE]
----------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
1 Year Ended
1/31/99 37.29%
----------------------------------------------
5 Year Ended
1/31/99 23.84%
----------------------------------------------
Inception (6/3/91)/(3)/
to 1/31/99 18.88%
----------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------
DATE S&P DEVCAP
- ----------------------------------------------------
<S> <C> <C>
6/91 10000 10000
- ----------------------------------------------------
7/91 10465.7 10498.53
- ----------------------------------------------------
10/91 10674.88 10556.57
- ----------------------------------------------------
1/92 11203.28 11205.11
- ----------------------------------------------------
4/92 11454.23 11177.12
- ----------------------------------------------------
7/92 11801.92 11678.43
- ----------------------------------------------------
10/92 11736.87 11912.8
- ----------------------------------------------------
1/93 12386.89 12693.7
- ----------------------------------------------------
4/93 12510.53 12397.75
- ----------------------------------------------------
7/93 12829.98 12720.76
- ----------------------------------------------------
10/93 13486.75 13334.55
- ----------------------------------------------------
1/94 13978.9 13597.4
- ----------------------------------------------------
4/94 13174.7 12839.45
- ----------------------------------------------------
7/94 13491.02 12964.12
- ----------------------------------------------------
10/94 14007.09 13401.2
- ----------------------------------------------------
1/95 14052.53 13487.83
- ----------------------------------------------------
4/95 15472 14646.36
- ----------------------------------------------------
7/95 17008.21 16072.3
- ----------------------------------------------------
10/95 17706.34 16697.44
- ----------------------------------------------------
1/96 19479.2 17998.76
- ----------------------------------------------------
4/96 20142.09 18556.47
- ----------------------------------------------------
7/96 19823.67 18100.17
- ----------------------------------------------------
10/96 21970.19 20043.69
- ----------------------------------------------------
1/97 24607.55 22562.85
- ----------------------------------------------------
4/97 25202.21 23239.2
- ----------------------------------------------------
7/97 30153.87 27433.99
- ----------------------------------------------------
10/97 29055.93 26317.69
- ----------------------------------------------------
1/98 31267.38 28850.25
- ----------------------------------------------------
4/98 35593.97 32354.95
- ----------------------------------------------------
7/98 36012.51 33150.70
- ----------------------------------------------------
10/98 35444.68 32624.10
- ----------------------------------------------------
1/99 41421.82 39606.49
- ----------------------------------------------------
</TABLE>
(1) The DEVCAP Shared Return Fund performance prior to October 19, 1995
(commencement of investment operations) is the investment return of the
Domini Social Index Portfolio adjusted for the expenses of the Fund.
(2) The S&P 500 is an unmanaged index used to portray the pattern of common
stock movement based on the average performance of 500 widely held common
stocks and does not pay expenses.
(3) The Portfolio began investing in the stocks comprising the Domini 400
Social Index on June 3, 1991. The above chart begins on June 30, 1991.
The performance information in this chart represents past performance. The in-
vestment 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 origi-
nal cost.
3
<PAGE>
DEVCAP SHARED RETURN FUND
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in Domini Social Index Portfolio, at value (Note 1) $12,979,884
Receivable from affiliate (Note 2) 6,861
Deferred organization expenses (Note 1) 19,086
Prepaid expenses 42,842
-----------
Total Assets 13,048,673
-----------
LIABILITIES:
Accrued expenses 15,733
-----------
NET ASSETS $13,032,940
===========
NET ASSETS CONSIST OF:
Paid-in capital $ 9,068,476
Accumulated net realized gain from Portfolio 66,526
Net unrealized appreciation from Portfolio 3,897,938
-----------
NET ASSETS $13,032,940
===========
SHARES OUTSTANDING 562,191
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $ 23.18
===========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
DEVCAP SHARED RETURN FUND
STATEMENT OF OPERATIONS
Six months ended January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO:
Investment income from Portfolio $ 62,130
Expenses from Portfolio (10,911)
----------
Net investment income from Portfolio 51,219
EXPENSES (Notes 1 and 2):
Professional fees $19,819
Transfer agent fees 18,270
Administration fees 13,138
Printing 8,949
Registration fees 7,894
Amortization of organization expenses (Note 1) 5,549
Fund accounting fees 4,538
Insurance 3,989
-------
Total Expenses 82,146
----------
NET INVESTMENT LOSS (30,927)
----------
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO
Net realized gain from Portfolio 145,709
Net change in unrealized appreciation from Portfolio 2,022,606
----------
Net realized and unrealized gain from Portfolio 2,168,315
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,137,388
==========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
DEVCAP SHARED RETURN FUND
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
For the six year ended
months ended July 31,
January 31, 1999 1998
---------------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment loss $ (30,927) $ (35,507)
Net realized gain from Portfolio 145,709 71,154
Net change in unrealized appreciation from
Portfolio 2,022,606 1,244,866
----------- -----------
Net increase in net assets resulting from
operations 2,137,388 1,280,513
----------- -----------
Distributions to shareholders from net realized
gain (111,246) (5,944)
----------- -----------
Capital Share Transactions:
Proceeds from sales of shares 709,509 4,505,896
Net asset value of shares issued in
reinvestment of distributions 107,930 5,700
Payments for shares redeemed (174,620) (204,899)
Payment for shares redeemed for DEVCAP Non-
Profit (Note 3) (332,878) (209,974)
----------- -----------
Net increase in net assets from capital share
transactions 309,941 4,096,723
----------- -----------
Total increase in net assets 2,336,083 5,371,292
NET ASSETS:
Beginning of period 10,696,857 5,325,565
----------- -----------
End of period $13,032,940 $10,696,857
=========== ===========
OTHER INFORMATION:
Share Transactions:
Sold 36,750 242,295
Redeemed (9,548) (11,527)
Reinvested 4,947 352
Withdrawal of charitable contributions (Note 3) (16,382) (13,010)
----------- -----------
Net increase 15,767 218,110
=========== ===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
DEVCAP SHARED RETURN FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period
For the six October 19, 1995
months ended For the year ended (commencement
January 31, 1999 --------------------------- of operations) to
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996
---------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value,
beginning of period $ 19.58 $ 16.22 $10.71 $10.00
------- ------- ------ ------
Income from investment
operations:
Net investment loss (0.05) (0.06) (0.03) (0.02)
Net realized and
unrealized gain on
investments 3.85 3.44 5.55 0.73
------- ------- ------ ------
Total income from
investment operations 3.80 3.38 5.52 0.71
------- ------- ------ ------
Less distributions from
net realized gain (0.20) (0.02) (0.01) --
------- ------- ------ ------
Net Asset Value, end of
period $ 23.18 $ 19.58 $16.22 $10.71
======= ======= ====== ======
Ratios/supplemental data
Total return 19.48 %/1/ 20.84 % 51.57 % 7.10 %/1/
Net Assets, end of
period (in 000's) $13,033 $10,697 $5,326 $ 643
Ratio of expenses to
average net assets/2/ 1.67 %/3/ 1.75 % 1.75 % 2.50 %/3/
Ratio of net investment
loss to average net
assets/2/ (0.56)%/3/ (0.51)% (0.21)% (0.54)%/3/
Portfolio turnover/4/ 8 %/1/ 5 % 1 % 5 %/1/
- --------
/1/Not annualized
/2/Reflects the Fund's proportionate share of the Portfolio's expenses as well
as reimbursements by agents of the Fund. If the reimbursements had not been
in place, the ratios of expenses and net investment income to average net
assets would have been as follows:
Ratio of expenses to
average net assets 1.67 %/3/ 2.76 % 5.93 % 26.30 %/3/
Ratio of net investment
loss to average net
assets (0.56)%/3/ (1.52)% (4.39)% (24.34)%/3/
/3/Annualized.
/4/Represents portfolio turnover for the Portfolio.
</TABLE>
See Notes to Financial Statements
7
<PAGE>
DEVCAP SHARED RETURN FUND
NOTES TO FINANCIAL STATEMENTS
For the six months ended January 31, 1999 (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. DEVCAP Shared Return Fund
(the "Fund") is a series of DEVCAP Trust and is registered as an open-end man-
agement investment company under the Investment Company Act of 1940 (the
"Act").
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 (approximately 1.33% at January 31, 1999). 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 Fund became effective on
September 13, 1995, and commenced investment operations on October 19, 1995.
The presentation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclo-
sures of contingent liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Ac-
tual results could differ from those estimates. The following is a summary of
the Fund's 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. Divi-
dends to shareholders are declared and paid annually from net investment in-
come. Distributions to shareholders of net realized capital gains, if any, are
made annually. The amount and character of income and net realized gains to be
distributed are determined in accordance with federal income tax rules and
regulations, which may differ from generally accepted accounting principles.
These differences are attributable to permanent book and tax accounting dif-
ferences. Accordingly, at January 31, 1999, a reclassification was recorded to
increase accumulated net investment income and reduce accumulated net realized
gain by $30,927.
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 dis-
tribute substantially all of its taxable income, including net realized gains,
if any, within the prescribed time periods. Accordingly, no provision for fed-
eral income or excise tax is necessary.
D. Deferred Organization Expenses. Organization 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 ini-
tial 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 organiza-
tion expenses, Development Capital Fund ("DEVCAP Non-Profit"), the Fund's
sponsor, has agreed to reimburse the Fund for such difference.
E. Other. All net investment income and realized and unrealized gains and
losses of the Portfolio are allocated pro rata among the Fund and other in-
vestors in the Portfolio.
8
<PAGE>
DEVCAP SHARED RETURN FUND
NOTES TO FINANCIAL STATEMENTS--Continued
Six months ended January 31, 1999 (unaudited)
2. TRANSACTIONS WITH AFFILIATES.
A. Distribution. The Fund has adopted a Distribution Plan (the "Plan") in
accordance with Rule 12b-1 under the Act. Effective November 25, 1997, CBIS
Financial Services, Inc. ("CBIS") acts as agent of the Fund and principal un-
derwriter of shares of the Fund ("Distributor") pursuant to the Plan. Prior to
November 25, 1997, Signature Broker-Dealer Services, Inc. served as Distribu-
tor. Under the Plan, the Fund may pay the Distributor a fee not to exceed
0.25% per annum of the Fund's average daily net assets in anticipation of, or
in reimbursement for, expenses incurred in connection with the sale of shares
of the Fund.
Such expenses include payments to broker-dealers who advise shareholders re-
garding the purchase, sale or retention of shares of the Fund, payments to em-
ployees of the Distributor, advertising used for sales purposes, expenses of
preparing and printing sales literature and other distribution-related ex-
penses. No expenses were incurred by the Fund in connection with the Plan for
the six months ended January 31, 1999.
B. Reimbursement of Expenses. DEVCAP Non-Profit had agreed to reimburse the
Fund to the extent necessary to maintain the Fund's total operating expenses
(which include expenses of the Fund and Portfolio) at an annual rate of 1.75%
of the Fund's average daily net assets. This agreement expired November 30,
1998.
3. CHARITABLE CONTRIBUTIONS. Shareholders contributed approximately $341,000
and $210,000 to DEVCAP Non-Profit in December 1998 and 1997, respectively, as
described in the Fund's prospectus. Upon a shareholder's initial investment in
the Fund, the shareholder may choose to make an annual donation to DEVCAP Non-
Profit of ten percent, twenty-five percent, fifty percent, seventy-five per-
cent, or all of the Annual Contribution Basis, as defined in the Fund's regis-
tration statement, derived from the shareholder's investment in the Fund.
DEVCAP Non-Profit will direct these shareholder donations to non-profit orga-
nizations (primarily Catholic Relief Services) working to improve the welfare
of underprivileged persons in developing countries.
4. INVESTMENT TRANSACTIONS. Additions and reductions in the Fund's investment
in the Portfolio aggregated $721,168 and $507,499, respectively, for the six
months ended January 31, 1999. Approximately $333,000 of these reductions were
the withdrawal of the charitable contributions to DEVCAP Non-Profit.
9
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Apparel -- 0.2%
Brown Group, Inc. ...................................... 2,500 $ 40,156
Hartmarx Corporation (b)................................ 5,500 27,500
Liz Claiborne, Inc. .................................... 10,400 397,800
Oshkosh B'Gosh.......................................... 2,600 41,275
Phillips-Van Heusen Corporation......................... 4,200 26,513
Reebok International Ltd. (b)........................... 9,000 133,875
Russell Corporation..................................... 5,800 114,188
Springs Industries, Inc. ............................... 2,900 121,075
Stride Rite Corporation................................. 7,400 73,075
Timberland Company (The) (b)............................ 1,800 81,000
V. F. Corporation....................................... 20,000 852,500
------------
1,908,957
------------
Banking -- 5.3%
Banc One Corporation.................................... 197,685 10,353,752
BankBoston Corporation.................................. 49,700 1,835,794
Bankers Trust New York Corporation...................... 15,900 1,383,300
Fifth Third Bancorp..................................... 44,825 3,067,711
Mellon Bank Corporation................................. 43,900 2,941,300
Morgan (J.P.) & Co. Incorporated........................ 29,600 3,122,800
PNC Bank Corp. ......................................... 50,700 2,595,206
SunTrust Banks, Inc. ................................... 53,700 3,782,494
Synovus Financial Corp. ................................ 44,750 1,118,750
US Bancorp.............................................. 122,800 4,136,825
Vermont Financial Services Corp. ....................... 1,800 54,000
Wachovia Corporation.................................... 34,000 3,013,250
Washington Mutual Inc. ................................. 100,202 4,208,484
Wells Fargo & Company................................... 273,000 9,537,938
------------
51,151,604
------------
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Commercial Products & Services -- 1.9%
Angelica Corporation.................................... 1,300 $ 19,581
Avery Dennison Corporation.............................. 19,400 959,088
Bemis Company, Inc. .................................... 8,400 285,600
Cintas Corporation...................................... 17,700 1,346,306
Deluxe Corporation...................................... 13,400 477,375
DeVry Inc. (b).......................................... 11,600 341,475
Donnelley (R.R.) & Sons Company......................... 22,700 855,506
Ecolab Inc. ............................................ 21,500 833,125
Harland (John H.) Company............................... 4,900 68,294
Herman Miller, Inc. .................................... 14,300 270,806
HON Indudstries Inc. ................................... 9,800 199,675
Ikon Office Solutions................................... 22,600 361,600
Interface Inc. ......................................... 8,300 85,594
Kelly Services, Inc. ................................... 6,075 168,581
Moore Corporation....................................... 14,300 165,344
National Service Industries, Inc. ...................... 6,700 229,475
New England Business Service, Inc. ..................... 2,300 76,044
Pitney Bowes Inc. ...................................... 45,800 3,151,613
Sealed Air Corporation.................................. 13,900 737,569
Sonoco Products Company................................. 16,945 472,342
Standard Register Company............................... 4,400 136,950
Tennant Company......................................... 1,400 51,800
Xerox Corporation....................................... 55,400 6,869,600
------------
18,163,343
------------
Construction -- 0.2%
Apogee Enterprises, Inc. ............................... 4,300 44,344
Centex Corporation...................................... 9,600 414,600
Champion Enterprises Inc. (b)........................... 7,700 179,988
Fleetwood Enterprises, Inc. ............................ 5,400 199,800
Granite Construction Incorporated....................... 4,350 140,831
</TABLE>
10
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Construction -- Continued
Kaufman & Broad Home Corporation........................ 8,000 $ 225,500
Osmonics Inc. (b)....................................... 2,100 18,638
Rouse Company........................................... 11,500 271,688
Sherwin-Williams Company................................ 28,800 738,000
Skyline Corporation..................................... 1,400 43,050
TJ International, Inc. ................................. 2,300 55,488
------------
2,331,927
------------
Energy -- 1.3%
Anadarko Petroleum Corporation.......................... 19,800 535,838
Apache Corporation...................................... 15,800 304,150
Atlantic Richfield Company.............................. 54,000 3,098,250
Consolidated Natural Gas Company........................ 16,000 821,000
Enron Corp ............................................. 55,900 3,689,400
Helmerich & Payne, Inc. ................................ 7,800 136,988
Oryx Energy Company (b)................................. 17,700 215,719
Pennzoil Company........................................ 7,400 85,563
Questar Corporation..................................... 13,200 220,275
Rowan Companies, Inc. (b)............................... 13,900 122,494
Santa Fe Energy Resources, Inc. (b)..................... 16,900 98,231
Sun Company, Inc. ...................................... 15,500 544,438
Union Pacific Resources Group, Inc. .................... 41,800 337,013
Williams Companies...................................... 72,200 2,382,600
------------
12,591,959
------------
Financial Services -- 5.5%
American Express Company................................ 76,400 7,859,650
Block (H & R), Inc. .................................... 16,700 732,713
Dime Bancorp............................................ 19,200 465,600
Edwards (A.G.), Inc. ................................... 15,187 514,460
Fannie Mae.............................................. 175,000 12,753,125
Federal Home Loan Mortgage Corporation.................. 114,600 7,105,200
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Financial Services -- Continued
First Tennessee National Corporation.................... 21,300 $ 778,781
FirstFed Financial Corp. (b)............................ 3,400 54,188
Golden West Financial................................... 9,500 891,813
Household International, Inc. .......................... 81,246 3,569,746
MBIA Inc. .............................................. 16,500 1,081,781
MBNA Corporation........................................ 135,450 3,784,135
Merrill Lynch & Co., Inc. .............................. 59,900 4,552,400
Providian Financial Corporation......................... 23,900 2,409,419
Schwab (Charles) Corporation............................ 67,700 4,760,156
Student Loan Marketing Association...................... 27,500 1,211,719
Transamerica Corporation................................ 20,800 1,164,800
Value Line, Inc. ....................................... 1,500 58,125
------------
53,747,811
------------
Foods & Beverages -- 6.1%
Ben & Jerry's Homemade, Inc. (b)........................ 600 14,400
Bestfoods............................................... 48,200 2,425,063
Campbell Soup Company................................... 75,200 3,529,700
Coca-Cola Company....................................... 416,200 27,235,088
Fleming Companies, Inc. ................................ 6,000 53,625
General Mills Incorporated.............................. 25,800 2,165,588
Heinz (H.J.) Company.................................... 61,100 3,440,694
Hershey Foods Corporation............................... 24,200 1,361,250
Kellogg Company......................................... 68,500 2,799,938
Nature's Sunshine Products, Inc. ....................... 2,600 34,613
Odwalla, Incorporated (b)............................... 500 3,375
PepsiCo, Inc............................................ 247,700 9,675,781
Quaker Oats Company..................................... 22,700 1,262,688
Ralston Purina Company.................................. 52,800 1,445,400
Smucker (J.M.) Company.................................. 4,600 115,000
</TABLE>
11
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Foods & Beverages -- Continued
SUPERVALU Inc. ......................................... 20,200 $ 554,238
Sysco Corporation....................................... 56,400 1,536,900
Tootsie Roll Industries, Inc. .......................... 5,054 227,746
Wrigley (Wm.) Jr. Company............................... 19,700 1,844,413
------------
59,725,500
------------
Health Care -- 8.9%
Acuson Corporation (b).................................. 4,400 58,850
ADAC Laboratories (b)................................... 3,000 66,188
Allergan, Inc. ......................................... 10,800 830,250
ALZA Corporation (b).................................... 14,600 738,213
Becton Dickinson and Company............................ 41,600 1,487,200
Bergen Brunswig Corporation............................. 16,336 457,408
Biomet, Inc. (b)........................................ 18,700 684,888
Boston Scientific Corporation (b)....................... 66,400 1,622,650
Forest Laboratories, Inc. (b)........................... 13,300 614,294
Guidant Corp............................................ 50,600 2,982,238
Humana Health Plans, Inc. (b)........................... 27,800 496,925
IMS Health Inc. ........................................ 55,200 2,021,700
Johnson & Johnson....................................... 227,000 19,295,000
Mallinckrodt, Inc. ..................................... 11,500 401,781
McKesson HBOC Inc....................................... 45,820 3,442,228
Medtronic, Inc. ........................................ 82,800 6,598,125
Merck & Co., Inc. ...................................... 201,000 29,496,750
Mylan Laboratories, Inc. ............................... 20,900 637,450
Oxford Health Plans, Inc. (b)........................... 13,400 231,987
Schering-Plough Corporation............................. 248,100 13,521,450
St. Jude Medical Inc. (b)............................... 13,500 351,844
Stryker Corporation..................................... 16,000 742,000
Sunrise Medical Inc. (b)................................ 3,500 27,781
United American Healthcare Corporation (b).............. 800 950
------------
86,808,150
------------
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Household Goods -- 5.5%
Alberto-Culver Company.................................. 8,800 $ 226,600
Avon Products, Inc. .................................... 44,400 1,640,025
Bassett Furniture Industries............................ 1,800 39,937
Black & Decker Corp..................................... 14,900 789,700
Church & Dwight Co., Inc. .............................. 3,000 117,375
Clorox Company.......................................... 17,600 2,202,200
Colgate-Palmolive Company............................... 49,400 3,973,612
Enesco Group, Inc. ..................................... 2,200 44,550
Fedders Corporation..................................... 6,400 33,200
Fort James Corp. ....................................... 37,200 1,334,550
Gillette Company........................................ 187,300 11,003,875
Handleman Company (b)................................... 4,900 59,719
Harman International Industries, Inc. .................. 2,930 123,060
Hasbro, Inc. ........................................... 21,750 808,828
Huffy Corporation....................................... 1,700 24,650
Kimberly-Clark Corporation.............................. 91,464 4,556,050
Leggett & Platt......................................... 32,800 668,300
Mattel, Inc. ........................................... 47,785 1,084,122
Maytag Corporation...................................... 14,700 928,856
Newell Co. ............................................. 27,000 1,122,188
Oneida Ltd. ............................................ 2,300 33,063
Procter & Gamble Company................................ 224,000 20,356,000
Rubbermaid Incorporated................................. 25,100 809,475
Shaw Industries, Inc. .................................. 23,500 497,906
Snap-On Incorporated.................................... 9,850 334,900
Stanley Works........................................... 14,200 357,662
Thomas Industries Inc. ................................. 2,200 40,425
Whirlpool Corporation................................... 12,400 557,225
------------
53,768,053
------------
Insurance -- 4.5%
Aetna, Inc.............................................. 23,870 2,151,284
American General Corporation............................ 42,662 3,042,334
</TABLE>
12
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Insurance -- Continued
American International Group, Inc. (b).................. 208,650 $ 21,477,910
Chubb Corporation....................................... 27,300 1,603,875
CIGNA Corporation....................................... 35,200 2,899,600
Cincinnati Financial Corporation........................ 27,585 908,581
Hartford Steam Boiler Inspection and Insurance.......... 4,550 171,762
Jefferson-Pilot Corporation............................. 17,950 1,359,713
Lincoln National Corp. ................................. 16,900 1,407,981
Marsh & McLennan Companies, Inc. ....................... 43,450 2,731,919
MGIC Investment Corp. .................................. 18,100 662,912
ReliaStar Financial Corporation......................... 15,100 625,706
SAFECO Corporation...................................... 22,600 878,575
St. Paul Companies, Inc. ............................... 38,864 1,141,630
Torchmark Corporation................................... 23,300 764,531
UNUM Corporation........................................ 23,400 1,414,237
Wesco Financial Corporation............................. 1,200 399,600
------------
43,642,150
------------
Media -- 3.7%
Banta Corporation....................................... 4,650 111,019
Comcast Corporation..................................... 62,200 4,228,630
Disney (Walt) Company................................... 345,900 11,414,700
Dow Jones & Company..................................... 15,600 698,100
Harcourt General........................................ 11,600 556,800
King World Productions, Inc. (b)........................ 12,200 333,975
Lee Enterprises, Inc. .................................. 7,200 201,600
McGraw-Hill Companies................................... 16,400 1,773,250
Media General, Inc...................................... 4,200 210,000
MediaOne Group, Inc. (b)................................ 102,500 5,746,406
Meredith Corporation.................................... 8,300 309,175
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Media -- Continued
New York Times Company.................................. 30,400 $ 1,043,100
Scholastic Corporation (b).............................. 2,500 141,563
Tele-Communications, Inc. (b)........................... 90,900 6,232,331
Times Mirror Company.................................... 14,000 770,875
Viacom, Inc. (b)........................................ 11,700 981,337
Washington Post Company................................. 1,700 967,300
------------
35,720,161
------------
Miscellaneous -- 0.8%
American Greetings Corporation.......................... 11,500 454,250
Caraustar Industries, Inc. ............................. 4,000 113,000
Case Corporation........................................ 11,700 221,569
CPI Corp. .............................................. 1,400 37,012
Cross (A.T.) Company.................................... 2,300 14,662
Deere & Company......................................... 40,200 1,309,012
Gibson Greetings, Inc. (b).............................. 2,300 22,856
Hillenbrand Industries, Inc. ........................... 11,000 517,000
Hunt Manufacturing Co. ................................. 1,600 18,300
Ionics, Inc. (b)........................................ 2,300 74,462
Jostens, Inc. .......................................... 5,900 137,544
Marriott International, Inc. ........................... 42,100 1,478,762
Omnicom Group Inc. ..................................... 28,400 1,817,600
Polaroid Corporation.................................... 7,100 121,144
Service Corporation International....................... 45,800 727,075
Toro Company............................................ 1,800 62,550
Vincam Group, Inc. (The)................................ 2,100 38,062
Whitman Corporation..................................... 16,200 315,900
------------
7,480,760
------------
Miscellaneous Manufacturing -- 0.9%
Applied Materials, Inc. (b)............................. 62,300 3,936,581
Brady (W.H.) Co. ....................................... 3,500 95,375
</TABLE>
13
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Miscellaneous Manufacturing -- Continued
CLARCOR Inc. ........................................... 3,850 $ 79,406
Crown Cork & Seal Company, Inc. ........................ 20,400 646,425
Dionex Corporation (b).................................. 3,500 135,187
Fastenal Company........................................ 6,000 231,375
Gerber Scientific Inc. ................................. 3,600 69,075
Graco Inc. ............................................. 3,375 82,687
Illinois Tool Works Inc. ............................... 42,300 2,551,219
Isco, Inc. ............................................. 800 4,700
Lawson Products, Inc. .................................. 1,600 34,800
Milcron Inc. ........................................... 6,200 121,287
Millipore Corporation................................... 7,100 216,994
Nordson Corporation..................................... 2,400 153,000
Watts Industries........................................ 4,200 61,425
Wellman, Inc. .......................................... 4,900 46,856
------------
8,466,392
------------
Resource Development -- 1.2%
Air Products & Chemicals, Inc. ......................... 38,500 1,294,563
Aluminum Company of America............................. 30,900 2,584,013
Battle Mountain Gold Company (b)........................ 37,900 139,756
Cabot Corporation....................................... 11,100 278,888
Calgon Carbon Corporation............................... 6,200 39,525
Catalytica Inc. (b)..................................... 4,500 66,375
Consolidated Papers, Inc. .............................. 14,600 338,538
Cyprus Amax Minerals Company............................ 14,900 142,481
Echo Bay Mines Ltd (b).................................. 23,200 39,150
Fuller (H.B.) Company................................... 2,200 94,600
IMCO Recycling Inc. .................................... 2,300 28,175
Inland Steel Industries, Inc. .......................... 6,400 96,800
Mead Corporation........................................ 17,000 486,625
Morton International, Inc. ............................. 20,600 533,025
Nalco Chemical Company.................................. 10,400 286,000
Nucor Corporation....................................... 14,550 712,950
Praxair, Inc. .......................................... 26,200 846,588
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Resource Development -- Continued
Sigma-Aldrich Corporation............................... 16,700 $ 475,950
Westvaco Corporation.................................... 16,800 370,650
Worthington Industries, Inc. ........................... 15,000 208,125
------------
9,062,777
------------
Retail -- 11.7%
Albertson's, Inc. ...................................... 41,500 2,531,500
American Stores Companies............................... 46,400 1,682,000
Bob Evans Farms, Inc. .................................. 6,700 155,775
Charming Shoppes, Inc. (b).............................. 15,600 57,525
Circuit City Stores, Inc. .............................. 16,700 922,675
Claire's Stores, Inc. .................................. 8,100 159,975
Costco Companies Inc. (b)............................... 36,515 3,026,181
CVS Corporation......................................... 65,500 3,586,125
Dayton Hudson Corporation............................... 74,200 4,730,250
Dillard Department Stores, Inc. ........................ 17,700 439,181
Dollar General Corporation.............................. 34,081 849,895
Egghead, Inc. (b)....................................... 3,800 64,600
Gap, Inc. (The)......................................... 97,725 6,272,724
Great Atlantic & Pacific Tea Company, Inc. ............. 6,100 203,587
Hannaford Bros. Co. .................................... 6,800 320,450
Home Depot, Inc. ....................................... 261,598 15,793,979
Kmart Corporation (b)................................... 82,700 1,452,419
Kroger Co. (b).......................................... 43,100 2,736,850
Lands' End, Inc. (b).................................... 4,700 152,162
Lillian Vernon Corporation.............................. 1,500 22,219
Limited, Inc. (The)..................................... 39,000 1,330,875
Longs Drug Stores Corporation........................... 6,200 237,537
Lowe's Companies, Inc. ................................. 59,500 3,469,594
Luby's Cafeterias, Inc. ................................ 3,700 57,119
May Department Stores Company........................... 39,400 2,378,775
</TABLE>
14
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Retail -- Continued
McDonald's Corporation.................................. 114,300 $ 9,008,269
Men's Wearhouse Inc. (b)................................ 5,000 148,125
Meyer Fred, Inc. (b).................................... 26,000 1,625,000
Nordstrom, Inc.......................................... 24,800 1,032,300
Penney (J.C.) Company, Inc.............................. 42,700 1,673,306
Pep Boys -- Manny, Moe & Jack........................... 10,300 162,225
Ruby Tuesday, Inc. ..................................... 5,200 103,675
Ryan's Family Steakhouse, Inc. (b)...................... 6,300 87,019
Sears, Roebuck and Co. ................................. 64,900 2,604,112
Staples, Inc. (b)....................................... 78,900 2,258,512
Starbucks Corporation (b)............................... 14,900 775,731
Tandy Corporation....................................... 16,400 885,600
TCBY Enterprises, Inc................................... 3,200 19,200
TJX Companies, Inc...................................... 54,500 1,611,156
Toys "R' Us, Inc. (b)................................... 43,520 652,800
Wal-Mart Stores, Inc.................................... 21,800 111,725
Walgreen Company........................................ 84,100 5,256,250
Wal-Mart Stores, Inc.................................... 380,300 32,705,800
Wendys International Inc. .............................. 20,400 485,775
Whole Foods Market, Inc. (b)............................ 4,100 131,456
Wild Oats Markets, Inc. (b)............................. 2,100 50,531
------------
114,022,539
------------
Technology -- 33.2%
3Com Corporation (b).................................... 60,100 2,824,700
Adaptec Inc (b)......................................... 17,700 409,312
Advanced Micro Devices, Inc. (b)........................ 24,100 552,794
AirTouch Communications, Inc. (b)....................... 96,500 9,318,281
American Power Conversion (b)........................... 15,900 812,888
Analog Devices, Inc. (b)................................ 27,000 803,250
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Technology -- Continued
Apple Computer, Inc. (b)................................ 22,400 $ 922,600
AT&T Corporation........................................ 304,900 27,669,675
Ault Inc. (b)........................................... 500 4,062
Autodesk, Inc. ......................................... 7,400 326,987
Automatic Data Processing, Inc.......................... 102,100 4,345,631
Avnet, Inc.............................................. 6,100 274,119
Baldor Electric Company................................. 5,900 116,894
Broderbund Software Inc. (b)............................ 36,400 1,699,425
Ceridian Corp. (b)...................................... 12,000 952,500
Cisco Systems, Inc. (b)................................. 266,650 29,748,141
Citizens Utilities Company.............................. 43,067 336,461
Compaq Computer Corporation............................. 286,988 13,667,804
Computer Associates International, Inc. ................ 92,800 4,698,000
Cooper Industries, Inc.................................. 18,600 770,737
Dell Computer Corp. (b)................................. 215,000 21,500,000
EMC Corp. Mass (b)...................................... 84,700 9,221,712
Emerson Electric Company................................ 74,300 4,323,331
Grainger (W.W.), Inc.................................... 15,900 647,925
Hewlett-Packard Company................................. 175,100 13,723,462
Hubbell Incorporated.................................... 10,660 390,422
Hutchinson Technology (b)............................... 3,100 142,987
Inprise Corp. (b)....................................... 7,900 40,487
Intel Corporation....................................... 281,400 39,659,812
LSI Logic (b)........................................... 23,500 655,062
Lucent Technologies, Inc. .............................. 222,000 24,988,875
Merix Corporation (b)................................... 600 3,619
Micron Technology, Inc. (b)............................. 36,000 2,812,500
Microsoft Corporation (b)............................... 421,000 73,675,000
Molex Incorporated...................................... 25,937 770,005
National Semiconductor Corporation (b).................. 27,600 357,075
</TABLE>
15
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Technology -- Continued
Novell Inc. (b)......................................... 59,100 $ 1,204,162
PeopleSoft, Inc......................................... 39,000 772,687
Perkin-Elmer Corporation................................ 8,400 798,525
QRS Corporation (b)..................................... 1,200 60,000
Raychem Corporation..................................... 13,100 329,137
Scientific Atlanta Inc. ................................ 12,300 382,837
Shared Medical Systems Corporation...................... 4,100 192,700
Solectron Corporation (b)............................... 19,900 1,772,344
Sprint Corporation...................................... 72,700 6,097,712
Sun Microsystems, Inc. (b).............................. 64,200 7,174,350
Symantic Corporation.................................... 9,300 190,069
Tektronix, Inc. ........................................ 7,700 194,906
Tellabs, Inc. (b)....................................... 32,800 2,812,600
Texas Instruments, Inc. ................................ 65,900 6,515,862
Thomas & Betts Corporation.............................. 9,200 406,525
Xilinx, Inc. (b)........................................ 12,000 996,000
------------
323,066,951
------------
Transportation -- 1.1%
Airborne Freight Corporation............................ 7,800 273,000
Alaska Air Group, Inc. (b).............................. 4,100 206,537
AMR Corporation (b)..................................... 30,700 1,803,625
Consolidated Freightways Corporation (b)................ 3,100 49,600
Delta Air Lines, Inc. .................................. 24,800 1,353,150
FDX Holding Corporation (b)............................. 24,900 2,034,019
GATX Corporation........................................ 8,000 297,500
Norfolk Southern Corporation............................ 64,000 1,764,000
Roadway Express, Inc. .................................. 2,800 46,375
Ryder System, Inc. ..................................... 11,500 280,312
Southwest Airlines Co. ................................. 56,850 1,527,844
UAL Corporation (b)..................................... 9,600 597,600
Yellow Corporation (b).................................. 3,700 66,369
------------
10,299,931
------------
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Utilities -- 7.6%
AGL Resources Inc....................................... 9,000 $ 181,125
American Water Works, Inc............................... 13,500 400,781
Ameritech............................................... 186,300 12,132,787
Aquarion Company........................................ 1,100 42,419
Bell Atlantic Corporation............................... 262,022 15,721,320
BellSouth Corporation................................... 330,200 14,735,175
CalEnergy Company, Inc. (b)............................. 9,600 306,000
Cleco Corporation....................................... 3,500 110,250
Connecticut Energy Corporation.......................... 1,500 40,594
Eastern Enterprises..................................... 3,400 136,850
El Paso Energy Corporation.............................. 20,000 660,000
Energen Corporation..................................... 4,600 78,487
Equitable Resources, Inc. .............................. 5,900 153,769
Frontier Corporation.................................... 28,600 1,033,175
Idaho Power Company..................................... 6,000 197,250
KeySpan Energy.......................................... 26,400 714,450
LG&E Energy Corp........................................ 21,700 572,337
MCN Corporation......................................... 12,600 223,650
New Century Energies, Inc. ............................. 19,100 840,400
NICOR Inc. ............................................. 7,800 300,787
Northwest Natural Gas Co. .............................. 3,900 91,650
Northwestern Corp. ..................................... 3,600 95,850
Oklahoma Gas and Electric Company....................... 12,900 326,531
Peoples Energy Corporation.............................. 5,500 189,750
Potomac Electric Power Company.......................... 19,900 463,919
SBC Communications Inc. ................................ 330,258 17,833,932
Sonat Inc. ............................................. 18,300 471,225
Telephone and Data Systems, Inc. ....................... 10,200 543,150
U S West Communications Group (b)....................... 84,741 5,227,459
</TABLE>
16
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (Continued)
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Utilities -- Continued
Washington Gas Light Company............................ 7,500 $ 180,000
------------
74,005,072
------------
Vehicle Components -- 0.4%
Cooper Tire and Rubber Company.......................... 12,400 265,825
Cummins Engine Company, Inc. ........................... 6,900 262,200
Dana Corporation........................................ 27,700 1,139,162
Federal-Mogul Corporation............................... 11,000 651,750
Genuine Parts Company................................... 30,000 956,250
Modine Manufacturing Company............................ 4,600 132,250
Smith (A.O.) Corporation................................ 3,700 88,800
</TABLE>
<TABLE>
<CAPTION>
Issuer Shares Value
- ------ ------ -----
<S> <C> <C>
Vehicle Components -- Continued
Spartan Motors, Inc. (b)................................ 1,700 $ 10,200
SPX Corporation......................................... 4,916 347,779
------------
3,854,216
------------
Total Investments(a) -- 99.7%................................... $969,818,253
Other Assets, less liabilities -- 0.3%.......................... 2,903,137
------------
Net Assets -- 100.0%............................................ $972,721,390
============
</TABLE>
- --------
(a) The aggregate cost for book and federal income tax purposes is
$646,719,849, the aggregate gross unrealized appreciation is $336,191,769,
and the aggregate gross unrealized depreciation is $13,093,365, resulting
in net unrealized appreciation of $323,098,404.
(b) Non-income producing security.
17
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $646,719,849)........................ $969,818,253
Cash............................................................ 9,651,113
Dividends receivable............................................ 860,644
------------
Total assets................................................... 980,330,010
------------
LIABILITIES:
Payable for securities purchased................................ 7,262,726
Accrued expenses (Note 2)....................................... 345,894
------------
Total liabilities.............................................. 7,608,620
------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS.......... $972,721,390
============
</TABLE>
See Notes to Financial Statements
18
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENT OF OPERATIONS
Six months ended January 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding tax of
$192)........................................... $ 4,133,933
------------
EXPENSES:
Management fee (Note 2).......................... 732,324
Professional fees................................ 40,239
Custody fees (Note 3)............................ 151,869
Trustee fees..................................... 2,000
Miscellaneous.................................... 2,365
------------
Total expenses................................... 928,797
Fees paid indirectly........................... (139,159)
Expenses paid and fee waived by manager........ (59,667)
------------
Net expenses................................... 729,971
------------
NET INVESTMENT INCOME.............................. 3,403,962
Net realized gain on investments
Proceeds from sales.............................. $ 56,957,056
Cost of securities sold.......................... 47,479,386
------------
Net realized gain on investments............... 9,477,670
Net changes in unrealized appreciation of
investments
Beginning of period.............................. $175,720,768
End of period.................................... 323,098,404
------------
Net change in unrealized appreciation.......... 147,377,636
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $160,259,268
============
</TABLE>
See Notes to Financial Statements
19
<PAGE>
DOMINI SOCIAL INDEX PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
January 31, 1999 Year Ended
(unaudited) July 31, 1998
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment income......................... $ 3,403,962 $ 4,628,319
Net realized gain on investments.............. 9,477,670 4,836,426
Net change in unrealized appreciation of
investments.................................. 147,377,636 84,559,360
------------ ------------
Net Increase in Net Assets Resulting from
Operations................................. 160,259,268 94,024,105
------------ ------------
Transactions in Investors' Beneficial Interest:
Additions..................................... 176,349,371 267,044,708
Reductions.................................... (6,122,884) (11,192,148)
------------ ------------
Net Increase in Net Assets from Transactions
in Investors' Beneficial Interests......... 170,226,487 255,852,560
------------ ------------
Total Increase in Net Assets.............. 330,485,755 349,876,665
NET ASSETS:
Beginning of period........................... 642,235,635 292,358,970
------------ ------------
End of period................................. $972,721,390 $642,235,635
============ ============
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
January 31, ---------------------------------------------------------------
1999 July 31, July 31, July 31, July 31,
(unaudited) 1998 1997 1996 1995
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
Net Assets (000's)...... $972,721 $642,236 $292,359 $100,401 $54,003
Ratio of net investment
income to average net
assets................. 0.92%(/1/) 1.05%(/2/) 1.34% 1.48%(/4/) 1.85%(/5/)
Ratio of expenses to
average net assets..... 0.23%(/1/)(/3/) 0.24%(/2/)(/3/) 0.29%(/3/) 0.59%(/3/)(/4/) 0.43%(/5/)
Portfolio turnover
rate................... 8% 5% 1% 5% 6%
</TABLE>
- -------------------------------------------------------------------------------
(/1/) Reflects a voluntary expense reimbursement and fee waiver of 0.02% the
Manager. Had the manager not waived their fee and reimbursed expenses,
the annualized ratios of net investment income and expense to average
net assets for the six months ended January 31, 1999 would have been
0.90% and 0.25%, respectively.
(/2/) Reflects a waiver of 0.01% of fees by the Manager due to limitations set
forth in the Management Agreement. Had the Manager not waived their
fees, the ratios of net investment income and expenses to average net
assets for the year ended July 31, 1998 would have been 1.04% and 0.25%,
respectively.
(/3/) Ratio of expenses to average net assets for the years ended July 31,
1998, 1997 and 1996 include indirectly paid expenses. Excluding
indirectly paid expenses, the expense ratios would have been 0.20%,
0.25% and 0.50% for the years ended July 31, 1998, 1997 and 1996,
respectively and 0.20% for the six months ended January 31, 1999.
(/4/) Had the Expense Payment Agreement and Sponsor Arrangement not been in
place, the ratios of net investment income and expense for the years
ended July 31, 1996 would have been 1.14% and 0.85% respectively.
(/5/) 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, the ratios of net
investment income and expenses to average net assets for the year ended
July 31, 1995 would have been 1.75% and 0.53% respectively.
See Notes to Financial Statements
20
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DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
January 31, 1999 (unaudited)
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1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. Domini Social Index Port-
folio (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 port-
folio as closely as is practicable with the Domini 400 Social Index (the "In-
dex"), which is a common stock index developed and maintained by Kinder,
Lydenberg, Domini & Co., Inc. ("KLD"). 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 Au-
gust 10, 1990 and began investment operations on June 3, 1991.
The preparation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclo-
sure of contingent assets and liabilities at the date of the financial state-
ments 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 reported on the ex-dividend date.
(C) Federal Taxes: The Index Portfolio will be treated as a partnership for
U.S. federal income tax purposes and is therefore not subject to U.S. federal
income tax. As such, each investor in the Index Portfolio will be taxed on its
share of the Index Portfolio's ordinary income and capital gains. It is in-
tended that the Portfolio will be managed in such a way that an investor will
be able to satisfy the requirements of the Internal Revenue Code applicable to
regulated investment companies.
(D) 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) Manager. Domini Social Investments LLC ("DSIL" or the "Manager") is reg-
istered as an investment adviser under the Investment Advisers Act of 1940.
The services provided by the Manager consist of investment supervisory servic-
es, overall operational support and administrative services. The administra-
tive services include the provision of general office facilities and supervis-
ing the overall administration of the Index Portfolio. For its services under
the Management Agreement, the Manager receives from the Index Portfolio a fee
accrued daily and paid monthly at an annual rate equal to 0.20%. Currently,
DSIL is waiving its fee to the extent necessary to keep aggregate annual oper-
ating expenses of the Index Portfolio (excluding brokerage fees and commis-
sions, interest, taxes and other extraordinary expenses) at no greater than
0.20% of the average daily net assets of the Index Portfolio. This fee waiver
is voluntary and may be reduced or terminated at any time.
21
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DOMINI SOCIAL INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS -- (Continued)
January 31, 1999 (unaudited)
- -------------------------------------------------------------------------------
(B) Submanager. Mellon Equity provides investment submanagement services to
the Index Portfolio on a day-to-day basis pursuant to a Submanagement Agree-
ment with DSIL. Mellon Equity does not determine the composition of the Domini
Social Index. Under the Submanagement Agreement, DSIL pays Mellon Equity an
investment submanagement fee equal, on an annual basis, to 0.10% of the aver-
age daily net assets of the Portfolio.
(C) Prior Advisory, Management, Sponsorship and Administrative
Agreements. Prior to October 22, 1997, pursuant to an investment advisory
agreement, KLD served as investment adviser to the Index Portfolio and fur-
nished continuously an investment program by determining the stocks to be in-
cluded in the Index. KLD received from the Index Portfolio a fee accrued daily
and paid monthly at an annual rate equal to 0.025% of the Portfolio's average
daily net assets. Additionally, prior to October 22, 1997, pursuant to a man-
agement agreement, Mellon Equity served as investment manager and managed the
assets of the Portfolio on a daily basis. Prior to October 22, 1997, pursuant
to a sponsorship agreement, KLD furnished administrative services for the
Portfolio. KLD received from the Portfolio a fee accrued daily and paid
monthly at an annual rate equal to 0.025% of the average daily net assets of
the Portfolio for administrative services. Prior to November 6, 1996, pursuant
to an administrative services agreement, Signature Broker-Dealer Services,
Inc. served as the administrator of the Portfolio. Prior to October 22, 1997,
management and administration fees with respect to the Portfolio were equal to
0.15% of the Index Portfolio's average daily net assets for its then current
fiscal year.
3. INVESTMENT TRANSACTIONS. Purchase and sales of investments, other than U.S.
Government securities and short-term obligations, for the six months ended
January 31, 1999 aggregated $227,916,978 and $56,957,056, respectively. Cus-
tody fees of the Portfolio were reduced by $139,159 which was compensation for
uninvested cash left on deposit with the custodian. Cash balances could have
been employed to earn additional income for the Portfolio.
22
<PAGE>
DEVCAP
Shared Return Fund
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Changing the Way the World Works
SEMI-ANNUAL REPORT
JANUARY 31, 1999
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Globally Responsible Investments
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