Domini Institutional Trust NCSR Certified annual shareholder report (management investment company)



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM N-CSR


                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES


                  Investment Company Act File Number 811-07599


                           DOMINI INSTITUTIONAL TRUST
               (Exact Name of Registrant as Specified in Charter)


                536 Broadway, 7th Floor, New York, New York 10012
                    (Address of Principal Executive Offices)


                                  Amy L. Domini
                          Domini Social Investments LLC
                             536 Broadway, 7th Floor
                            New York, New York 10012
                     (Name and Address of Agent for Service)



        Registrant's Telephone Number, including Area Code: 212-217-1100

                        Date of Fiscal Year End: July 31

                     Date of Reporting Period: July 31, 2004

ITEM 1. REPORTS TO STOCKHOLDERS.
A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 follows.

Domini Institutional Social Equity Fund^SM

Annual Report
July 31, 2004

The Way You Invest Matters^®

Table of Contents


Letter from the President			1
Performance Commentary			4
Expense Example			7
Social Profiles			9
Domini Social Index Portfolio
Portfolio of Investments			16
Statement of Assets and Liabilities			22
Statement of Operations			23
Statements of Changes in Net Assets			24
Financial Highlights			25
Notes to Financial Statements			26
Report of Independent Registered Public Accounting Firm			28
Domini Institutional Social Equity Fund
Statement of Assets and Liabilities			29
Statement of Operations			30
Statements of Changes in Net Assets			31
Financial Highlights			32
Notes to Financial Statements			33
Report of Independent Registered Public Accounting Firm			36
Trustees and Officers			37
Proxy Voting Information			41
Quarterly Portfolio Schedule Information			41
For More Information			Back cover

Letter from the President

Dear Shareholders:

The past year has been a good one for financial markets. Stock market averages are well above their lows, and despite predictions that interest rates would rise dramatically during the period, they have not. The fundamental building blocks of a good investment environment remain in place. Inflation is relatively low, interest rates are relatively low, and companies are earning more than last year.

In addition to these fundamental building blocks, an investor should also be interested in the general economic situation. Today we see growth versus last year in gross domestic product (GDP) and in jobs. These would generally give investors a lot of confidence. In my opinion, however, today's economic situation requires that you look beyond the top-level statistics and try to understand better what is going on underneath.

Earlier this year, in our Semi-Annual Report, I talked about the continuing problem of underemployment, and how it has been holding back an economy that should, according to other indicators, be doing very well. In this report I will discuss how the wrong kind of spending is also acting as a drag on the economy.

There are two elements to spending that matter to building a healthy economy. The first, which is less important, is sheer volume: how much is being spent. This is reported as the GDP. The second element, more complex and significant, is the multiplier effect. How much benefit did a dollar spent help create?

The multiplier effect lay at the root of much of the economy's ability during the 1990s to allow ordinary Americans to feel that their lives were improving, thereby enhancing their willingness to invest. It also helps explain why so many Americans today feel that they are less well off than they used to be, even though their incomes may have risen.

Let's say that filling your car's tank with gas cost you thirty dollars two years ago and costs you forty dollars today. Two years ago you might have spent the extra ten dollars by stopping at the coffee shop and picking up a cup to go, buying a magazine at the corner, handing a homeless person a dollar, and picking up a roll of stickers to give to that three-year-old in your life. You can see immediately that spending the same amount of money for multiple purchases does far more for the economy than a single purchase of gas.

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Letter from the President

An easy way of thinking about the multiplier effect is to think about how many people are affected by your purchase. Ten dollars spent at the pump helps the pump station and its employees, the oil company, the shipping companies, and so forth. But when that same ten dollars is spread over five separate transactions, the multiple benefits to multiple businesses grow exponentially.

The above example was not random. The cost of gasoline has risen dramatically over the past two years. In my opinion, it has cut deeply into the robustness of the economy by crowding out dozens of small purchases that otherwise would have been made. As a result the coffee shop, the homeless person asking for spare change, and the corner shop with knickknacks are losing ground.

There are only three customers in the economy, and each has had something come along that has crowded out other potential spending. For the consumer, the spoiler is the price of gas. For government, it is the price of war. For business, it is the price of healthcare benefits.

Just as the price of filling up a tank of gas transfers funds from high multipliers to low ones, so too does the price of war. War does not build infrastructure. It is a single large purchase that comes at the cost of dozens of alternative purchases, even when it is managed within a balanced budget. War does not raise the quality of public schools. It doesn't put police on the street, repair sidewalks, or clean our rivers and lakes. But doing those things, from a purely economic point of view, ricochets through the domestic economy and provides a far more robust return than making war does.

Much has been written about what domestic programs could have been purchased with the cost of the current war, but very little attention has been given to how much more effective these domestic programs are in building an economy. The multiplier effect of Head Start programs for young children is enormous. Thousands of schools and agencies reap the increase in funding. Federal funding for first responders like police, firefighters, and emergency medical teams would save lives, sparing the economic waste of tragedy across cities and towns.

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Letter from the President

For business, the spoiler is the price of insurance for healthcare, which has become a disincentive to hire. Corporations are spending money on insurance, a low multiplier item, when they could be allocating funds on developing their employees, providing them with better retirement benefits, and providing customers with better service.

The consumer is estimated to account for about two-thirds of the economy. With consumers spending inefficiently (from an economic perspective), even healthy spending by government and business could have little impact. But this is not to underplay the devastating economic price we are paying for war. The fact that this war is being funded from new money, borrowed from our children, only exaggerates its negative impact on potential growth for the nation.

As socially responsible investors we can make a difference. By making investments that take advantage of the multiplier effect, we help strengthen the economy. When we invest in companies that value their employees and their communities, we help promote the health of the economy as well as the well-being of workers and their families. By directing capital to traditionally underserved markets, we can earn a market rate of return while we help low-income people to buy first homes, create daycare centers, and start small businesses that generate new jobs.

We at Domini Social Investments thank you for your commitment to being a part of the solution, and for your continued support.

Very truly yours,

Amy Domini
amy@domini.com

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Domini Institutional Social Equity Fund

Performance Commentary

Strong performance during the last five months of 2003 accounted for nearly all of the equity market's gains for the 12-month period ended July 31. Responding to indications of a rebounding economy and solid prospects for earnings, investors pushed the S&P 500 to its highest close of the year on December 31 — indeed, its highest close since May 2002. Equity markets began 2004 with a continuation of this uptrend, but in late January a statement by the U.S. Federal Reserve Board forced investors to confront the prospect of higher short-term interest rates later in the year. Equity markets resisted a correction in February, but March brought a dip, spurred by the effects of a weak U.S. job report on March 5 and the train bombing in Spain on March 11.

A host of factors upset financial markets in April, a month that began with a robust U.S. employment report. Unfortunately, the otherwise welcome rebound in job creation reawakened investor fears of rising interest rates. Exacerbating the malaise were escalations of violence in Iraq, Chinese policy actions intended to slow China's overheated economy, and surging oil prices.

U.S. financial markets settled into a narrower range in June, awaiting the decision of the Federal Reserve to hike rates on June 30. Lower than expected inflation figures helped ease worries of aggressive rate hikes, and stocks trended gently higher. In July, however, investors retreated from higher-risk areas like small caps and information technology stocks. Though small caps had dominated for the first half of the year, a plunge in July left the Russell 2000 small-cap index down by 0.4% for the year to date. The S&P 500 fell 3% during the month, leaving it virtually flat for the calendar year.

The performance of the Fund relative to the S&P 500 was hurt in part due to its underweight in the energy and industrials sectors, the two top-performing sectors over the past 12 months. The Fund's relative performance was also hurt by its exclusion of Boeing and Altria.

The relative performance of the Fund was helped in part by an overweight to the consumer discretionary and information technology sectors, particularly to Qualcomm, Microsoft, Yahoo, eBay, Home Depot, Starbucks, McDonald's, and Time Warner.

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Domini Institutional Social Equity Fund — Performance Commentary

The Domini Institutional Social Equity Fund invests in the Domini Social Index Portfolio. The table and the bar chart below provide information as of July 31, 2004, about the ten largest holdings of the Domini Social Index Portfolio and its portfolio holdings by industry sector.

Ten Largest Holdings


Company	% of Net Assets		Company	% of Net Assets
Microsoft Corporation		5.53	Procter & Gamble Company		2.42
American International Group, Inc.		3.32	J.P. Morgan Chase & Co.		2.39
Johnson & Johnson		2.95	Coca-Cola Company		1.92
Intel Corporation		2.84	Verizon Communications		1.92
Cisco Systems, Inc.		2.54	Merck & Co., Inc.		1.81

Portfolio Holdings by Industry Sector (% of Net Assets)

The holdings mentioned above are described in the Domini Social Index Portfolio's (DSIP) Portfolio of Investments at July 31, 2004, included herein. The composition of the DSIP is subject to change.

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Domini Institutional Social Equity Fund — Performance Commentary

Average Annual Total Returns⁽¹⁾


	As of 6-30-04												As of 7-31-04
	1 Year			5 Year			10 Year⁽²⁾			Since Inception⁽²⁾			1 Year			5 Year			10 Year⁽²⁾			Since Inception⁽²⁾
Domini Institutional Social Equity Fund (DISEF)		19.80	%		–2.57	%		12.07	%		10.92	%		11.97	%		–2.78	%		11.33	%		10.51	%
S&P 500		19.10	%		–2.21	%		11.81	%		10.77	%		13.17	%		–2.25	%		11.08	%		10.41	%

Comparison of $10,000 Investment in the
Domini Institutional Social Equity Fund and S&P 500⁽¹⁾⁽²⁾

⁽¹⁾

Past performance is no guarantee of future results. The Fund's returns quoted above represent past performance after all expenses. The table and the graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return for the Domini Institutional Social Equity Fund is based on the Fund's net asset values and assumes all dividends and capital gains were reinvested. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. An investment in the Fund is not a bank deposit and is not insured. You may lose money. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month-end, call 1-800-582-6757 or visit www.domini.com. Certain fees payable by the Fund were waived during the period, and the Fund's average annual total returns would have been lower had these not been waived.


	The Standard & Poor's 500 Index (S&P 500) is an unmanaged index of common stocks. Investors cannot invest directly in the S&P 500.


⁽²⁾	The Domini Institutional Social Equity Fund, which commenced operations on May 30, 1996, invests all of its assets in the Domini Social Index Portfolio (DSIP), which has the same investment objectives as the Fund. The DSIP commenced operations on June 3, 1991. Performance prior to the Fund's commencement of operations is the performance of the DSIP adjusted for expenses of the Fund.

This material must be preceded or accompanied by the Fund's current prospectus. DSIL Investment Services LLC, Distributor. 09/04

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Domini Institutional Social Equity Fund

Expense Example

As a shareholder of the Domini Institutional Social Equity Fund, you incur ongoing costs, including management fees, and other Fund expenses.

This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on February 1, 2004, and held through July 31, 2004.

Actual Expenses

The line of the table captioned "Actual Expenses" below provides information about actual account value and actual expenses. You may use the information in this line, together with the amount invested, to estimate the expenses that you paid over the period as follows:


•	Divide your account value by $1,000.


•	Multiply your result in step 1 by the number in the first line under the heading "Expenses Paid During Period" in the table.


•	The result equals the estimated expenses you paid on your account during the period.

Hypothetical Expenses

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's return. The hypothetical account values and expenses may not be used to estimate actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical example that appears in the shareholder reports of the other funds.

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Domini Institutional Social Equity Fund — Expense Example

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


Domini Institutional Social Equity Fund	Beginning Account Value as of 2/1/2004		Ending Account Value as of 7/31/2004		Expenses Paid During Period* 2/1/2004 – 7/31/2004
Actual Expenses		$1,000.00		$980.07		$1.97
Hypothetical Expenses (5% return before expenses)		$1,000.00		$1,022.87		$2.01


*	Expenses are equal to the Fund's annualized expense ratio of 0.40% multiplied by average account value over the period, multiplied by 182, and divided by 366. The example reflects the aggregate expenses of the Fund and the Domini Social Index Portfolio, the underlying portfolio in which the Fund invests.

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Domini Institutional Social Equity Fund

Social Profiles

Innovative Giving

As a shareholder in the Domini Institutional Social Equity Fund, you are invested in a number of companies that are creating real change through their extraordinary approach to philanthropy. The innovative giving programs developed by these companies go beyond the areas that have traditionally received the lion's share of corporate philanthropy: education, hospitals, social service organizations, and the arts. They work not just to relieve immediate problems but to enable systemic change. Whether providing technology, training, or access to capital, these innovative giving programs help disadvantaged people and communities move toward self-sufficiency and empowerment.

In this year's Annual Report we discuss several companies in the Fund's portfolio that we believe have strong programs in innovative giving. Through their efforts, they have helped to advance literacy, increase AIDS awareness, nurture entrepreneurs in developing countries, support minority journalists, teach leadership skills to recent immigrants, and provide many hours of volunteer service in inner cities.

Dollar General

Dollar General Corporation operates retail merchandise stores that sell basic household items to low-income, middle-income, and fixed-income families, primarily in smaller communities.


Ticker: DG		Website:www.dollargeneral.com
Market Capitalization: $6.4B		Percentage of DSIP*: 0.11
*Domini Social Index Portfolio

In 1939, when J.L. Turner founded Dollar General, he had a third grade education and was functionally illiterate. Turner's life experience helped inspire the company's commitment to promoting literacy.

At any one of the company's more than 6,900 stores, a shopper can get information on learning to read or to speak English. Since 1987, brochures offered in the stores have helped more than 50,000 people contact local literacy

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Domini Institutional Social Equity Fund — Social Profiles

programs. Many of these programs also receive funding from the company. In 2004, the Dollar General Literacy Foundation awarded $1,516,000 in grants to 136 nonprofit literacy organizations across the company's 30-state market area.

Some of Dollar General's stores double as Learning Centers for local residents in overlooked communities. Operating through partnerships with local housing authorities and nonprofit organizations, the Learning Centers provide a 12-week internship program designed to help local residents gain basic job skills. An average of 125 interns take part each year. Training includes adult basic education, preparation for the high-school equivalency test, job placement, and assistance and counseling for continuing education.

In 2004, Dollar General named Kathey Harrell its Student of the Year. When her daughter encouraged her to complete a referral card at the store, Ms. Harrell could read only a few words. She was referred to Literacy Volunteers of Kanawha County in West Virginia, and in May 2002 she began working with a tutor. Within a year she had moved through the first level of literacy training and begun the second. At the same time she used her new skills to help build her own thriving full-time cleaning business.

Estée Lauder

The Estée Lauder Companies, Inc. manufacture and market skin care, makeup, fragrance, and hair care products under the Estée Lauder, Clinique, Aramis, Prescriptives, Origins, MAC, and Aveda brand names.


Ticker: EL		Website:www.elcompanies.com
Market Capitalization: $10.0B		Percentage of DSIP: 0.10

Estée Lauder's MAC brand of cosmetics focuses its charitable giving on a single goal: AIDS awareness. The MAC AIDS Fund has partnered with international organizations such as the United Nations Foundation, whose executive vice president has called it "a model example of a corporation making a significant impact on the world's most challenging issues."

MAC's cofounders Frank Toskan and Frank Angelo launched the AIDS awareness program in 1994 which has raised $32 million, primarily from the sale of Viva Glam lipstick. One hundred percent of Viva Glam sales go to the MAC AIDS Fund,

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Domini Institutional Social Equity Fund — Social Profiles

and are then directed to local HIV/AIDS initiatives. Administrative and operational costs are covered by MAC. According to the company, the sale of one Viva Glam lipstick can provide one month of food, shelter, basic medical care, and school for an African child orphaned by AIDS.

Sales of the provocative MAC Deck of Cards (and recently published MAC Book of Cards) have provided further funding. To produce these playing cards, designs created by celebrities including Todd Oldham, Susan Sarandon, Iggy Pop, and Pink were painted onto the bodies of models, who were then photographed by fashion photographer Richard Lohr.

In 2003, the MAC AIDS Fund and the Elton John Foundation joined forces to create a series of public service announcements aimed at changing high-risk sexual behavior among teens. The ads, featuring Elton John, Mary J. Blige, Shirley Manson, and young people of different races, examine myths and misconceptions regarding AIDS and sex.

Hewlett-Packard

Hewlett-Packard Company provides a variety of computer-related products and services, including personal computers, workstations, handheld computing devices, digital entertainment systems, calculators, software, and products and services for printing and imaging.


Ticker: HPQ		Website:www.hp.com
Market Capitalization: $61.2B		Percentage of DSIP: 1.10

Many corporate giving programs focus only on a company's domestic U.S. operations, or overseas communities where the company has operations. Hewlett-Packard has chosen instead to implement a widespread program of international giving. In its 2004 Global Citizenship Report, the company said that in the previous year it donated about $62.4 million in cash and equipment worldwide. About 33% of this total was given to organizations based outside the U.S.

Hewlett-Packard's "i-communities" are development initiatives, carried out in partnership with local organizations, that use technology to promote goals such as

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Domini Institutional Social Equity Fund — Social Profiles

increasing literacy, creating jobs, promoting entrepreneurship, and providing access to government, healthcare, and education services. The company currently has i-communities in Houston, Texas; Kuppam, India; and Mogalakwena, South Africa.

Mogalakwena is a community of 360,000 citizens that encompasses three towns and 117 villages. According to Hewlett-Packard, 65% of residents live below the South African poverty line, more than half are unemployed, and literacy is well below the national average.

The Mogalakwena i-community helps create jobs and helps local people start their own businesses. The initiative focuses on improving information and communication infrastructure, providing technology training, ensuring cultural preservation, and boosting economic development. During 2003, the company says, more than 1,000 citizens, government officials, and educators received computer training. A center was established where PCs are refurbished and community members provide tech support by phone. A multilingual community website and an Internet-based radio station were established, and an innovative project uses PCs, the Internet, and digital cameras to help the community record cultural information on CD-ROM or the Internet.

The International Chamber of Commerce and the UN Development Program gave Hewlett-Packard their World Business Award for Corporate Support of the Millennium Development Goals for the company's work in Mogalakwena during 2003. South African President Thabo Mbeki has said, "The Mogalakwena HP i-community project serves as a practical intervention to address critically important matters such as education, sustainable economic development, good governance and health, and strives to ensure the success of our efforts to push back the frontiers of poverty and provide enhanced access to a better life for all."

E.W. Scripps

The E.W. Scripps Company publishes 21 daily newspapers in the U.S., operates four national television networks and ten television stations, and markets consumer goods through its Shop At Home division.


Ticker: SSP		Website:www.scripps.com
Market Capitalization: $8.3B		Percentage of DSIP: 0.12

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Domini Institutional Social Equity Fund — Social Profiles

Many charitable programs give money to programs that support minority groups and the disenfranchised. E.W. Scripps does more: It gives these groups a voice and a forum. In so doing, it promotes a diversity of viewpoints in the news media, where diversity is critically important.

E.W. Scripps' philanthropic wing, the Scripps Howard Foundation, has donated $10 million to build a journalism school at Hampton University, a historically black university in Virginia. The gift, which included funding for buildings and scholarships, was intended to promote diversity in the U.S. media industry. The new Scripps Howard School of Journalism and Communications was dedicated in September 2002, with a mission "to create one of the nation's top-ranked journalism and communications programs that organizations will rely on for producing highly skilled and competent graduates." Earl Caldwell, who chronicled some of the most important civil rights events of the past 40 years and was the only reporter present when the Rev. Martin Luther King was assassinated, serves as the Scripps Howard Endowed Professor of Journalism.

Scripps supports the Parity Project of the National Association of Hispanic Journalists, which aims to double the percentage of Latinos in newsrooms by 2008. In December 2003, the company announced the establishment of the Scripps Academy for Hispanic Journalists, a training program for Latino journalists who have an undergraduate degree and are new to the journalistic workforce. The Academy is located at the offices of the Rocky Mountain News in Denver, Colorado.

St. Paul Travelers

The St. Paul Travelers Companies, Inc. provides property and casualty insurance through its global underwriting operations and its reinsurance operation.


Ticker: STA		Website:www.stpaul.com
Market Capitalization: $16.2B		Percentage of DSIP: 0.45

Like many companies, St. Paul Travelers and its private foundations make grants to a variety of organizations in the fields of arts and culture, community development, and education. The company is notable, however, for supporting programs that help shape tomorrow's leaders.

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Domini Institutional Social Equity Fund — Social Profiles

The foundation's Leadership Initiatives in Neighborhoods Program provides grants to neighborhood artists and activists. These grants allow them to spend a year studying and traveling to build the skills they need as cultural and political leaders in their communities. In 2000, for instance, 13 community leaders received a total of $418,000 through the program. Chiakoua Vang received a grant to work with history professors in the Asian Hmong community with the aim of writing books and other materials for Hmong communities in the U.S. Abebeck Mimi Girma, a gallery owner, received a grant to work with refugees and to create a Center for African Arts.

About 60% of the company's giving is focused on the Minneapolis/St. Paul area, where there are large immigrant communities of Hmong people from Southeast Asia and Somalians from East Africa. Hmong adults have been helped to participate in urban teaching programs that enable them to act as role models for Hmong youth. The same initiative is being extended to the Somali community.

Timberland

The Timberland Company designs, develops, engineers, markets and distributes premium-quality footwear, apparel, and accessories.


Ticker: TBL		Website:www.timberland.com
Market Capitalization: $2.0B		Percentage of DSIP: 0.03

"The contributions City Year volunteers make to Rhode Island are unending because they positively impact children," U.S. Senator Jack Reed (D-RI) has said. "By mentoring, tutoring and providing support to children, they make an investment in Rhode Island's future."

The urban youth corps City Year enables young people aged 17 to 24 to engage in a year of community service. In 1988, Timberland began a partnership with City Year that has created an extraordinary culture of service within the company. Impressed with the group's work, Timberland's CEO Jeffrey B. Swartz joined the board of City Year in 1989. (He served as City Year's national chair from 1994 until 2003.) In 1991 Timberland agreed to City Year's request for a donation of work boots. The organization then invited Timberland employees to spend a day of service alongside the City Year members who received the boots.

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Domini Institutional Social Equity Fund — Social Profiles

From 1992 to 2003, Timberland invested approximately $20 million in in-kind services such as uniforms and volunteer time to help the expansion of City Year. As City Year's official outfitter, Timberland supplies members with a full line of clothing and footwear. City Year personnel have provided diversity training for Timberland's employees, and City Year New Hampshire was actually launched in Timberland's offices, with company employees offering the City Year New Hampshire volunteers seminars on resume-building and different career paths.

"At Timberland," Swartz has said, "we act on the belief that doing well and doing good are not separate activities. In fact, our commitment to social justice is a part of how we can earn our living. It's how we provide distinction for our customers. It's how we recruit top talent. Finally, it's how we create real, sustainable change in our communities and choose to compete in the world."

The Fund invests in a portfolio designed to replicate the Domini 400 Social Index.^SM All companies in the Fund's portfolio are measured against multiple standards of corporate accountability. We avoid companies that manufacture alcohol, tobacco, or firearms, provide services to gambling operations, own or operate nuclear power plants, or earn significant revenues from weapons contracting. Before investing in any company, our social research providers at KLD Research & Analytics, Inc. (KLD) evaluate its social profile by weighing both strengths and weaknesses in the areas of community impact, diversity, employee relations, the environment, human rights, and product safety and usefulness. KLD is responsible for maintaining the Domini 400 Social Index and developing and applying its social and environmental standards. Special thanks to KLD for allowing us to reproduce portions of its research in these pages.

For extensive information about how we use social and environmental criteria to choose our investments, including brief social profiles of every company in the Fund's portfolio, visit www.domini.com.

Unlike other mutual funds, the Domini Institutional Social Equity Fund seeks to achieve its investment objective by investing all of its investable assets in a separate portfolio with an identical investment objective called the Domini Social Index Portfolio (DSIP). The companies discussed above can be found in the DSIP's Portfolio of Investments at July 31, 2004, included herein. The composition of the DSIP is subject to change.

The preceding profiles should not be deemed an offer to sell or a solicitation of an offer to buy the stock of any of the companies noted, or a recommendation concerning the merits of any of these companies as an investment.

Domini 400 Social Index^SM is a service mark of KLD Research & Analytics, Inc. (KLD), which is used under license. KLD is the owner of the Domini 400 Social Index. KLD determines the composition of the Index but is not the manager of the Domini Social Index Portfolio, the Domini Social Equity Fund, or the Domini Institutional Social Equity Fund. Certain portions of these social profiles are copyright © 2004 by KLD and are reprinted here by permission. 09/04

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Domini Social Index Portfolio

Portfolio of Investments

July 31, 2004


Issuer	Shares		Value
Consumer Discretionary — 13.8%
American Greetings Corporation (a)		15,700	$	366,124
AutoZone, Inc. (a)		23,331		1,801,153
Bandag, Inc.		2,400		107,160
Bassett Furniture Industries		3,000		57,300
Black & Decker Corp.		20,900		1,461,119
Bob Evans Farms, Inc.		9,300		247,566
Centex Corporation		33,800		1,433,796
Champion Enterprises, Inc. (a)		12,800		124,544
Charming Shoppes, Inc. (a)		29,400		215,796
Circuit City Stores, Inc.		55,400		781,140
Claire's Stores, Inc.		27,000		622,350
Comcast Corporation (a)		374,858		10,271,109
Cooper Tire and Rubber Company		18,800		440,860
Dana Corporation		39,500		761,955
Darden Restaurants, Inc.		44,200		942,786
Delphi Automotive Systems Corporation		152,500		1,450,275
Disney (Walt) Company (The)		562,800		12,995,052
Dollar General Corporation		89,051		1,718,684
Dow Jones & Company		17,400		737,412
eBay Inc. (a)		180,286		14,121,802
Emmis Communications Corporation (a)		15,200		299,744
Family Dollar Stores Inc.		47,000		1,309,420
Fleetwood Enterprises, Inc. (a)		9,300		124,992
Foot Locker, Inc.		39,200		882,000
Gaiam, Inc. (a)		2,200		12,980
Gap Inc.		246,787		5,602,065
Genuine Parts Company		47,600		1,795,948
Harley-Davidson, Inc.		81,600		4,885,392
Harman International Industries, Inc.		18,620		1,596,293
Hartmarx Corporation (a)		8,500		64,090
Home Depot, Inc. (The)		615,406		20,751,490
Horton (D.R.), Inc.		63,600		1,757,268
Interface, Inc. (a)		11,400		94,848
Johnson Controls, Inc.		52,700		2,974,915
KB Home		12,400		794,220
Lee Enterprises, Inc.		9,200	$	428,260
Leggett & Platt, Incorporated		51,500		1,393,075
Limited Brands		130,338		2,664,109
Liz Claiborne, Inc.		30,000		1,085,700
Lowe's Companies, Inc.		214,900		10,469,928
Luby's, Inc. (a)		5,800		37,990
Mattel, Inc.		114,385		2,004,025
May Department Stores Company		80,800		2,143,624
Maytag Corporation		22,600		463,300
McDonald's Corporation		345,100		9,490,250
McGraw-Hill Companies		52,800		3,963,168
Media General, Inc.		6,800		406,368
Men's Wearhouse, Inc. (a)		10,600		280,794
Meredith Corporation		11,700		618,696
Modine Manufacturing Company		8,700		258,042
New York Times Company		41,800		1,738,880
Newell Rubbermaid, Inc.		77,178		1,667,045
Nordstrom, Inc.		38,700		1,698,930
Omnicom Group, Inc.		52,700		3,795,454
Oshkosh B'Gosh, Inc.		2,700		60,561
Penney (J.C.) Company, Inc.		75,900		3,036,000
Pep Boys — Manny, Moe & Jack		14,000		289,800
Phillips-Van Heusen Corporation		7,200		136,584
Pixar (a)		15,700		1,071,368
Pulte Homes, Inc.		35,000		1,912,050
Radio One, Inc. (a)		5,800		89,610
RadioShack Corporation		44,300		1,238,185
Reebok International Ltd.		15,800		538,148
Ruby Tuesday, Inc.		19,200		554,688
Russell Corporation		8,300		146,827
Scholastic Corporation (a)		9,700		266,847
Scripps (E.W.) Company (The)		17,600		1,802,592
Sears, Roebuck and Co.		58,800		2,156,784
Snap-On Incorporated		15,050		483,256
Spartan Motors, Inc.		3,100		37,200
Stanley Works		21,600		915,840

-16-

Domini Social Index Portfolio / Portfolio of Investments (Continued)
July 31, 2004


Issuer	Shares		Value
Consumer Discretionary (Continued)
Staples, Inc.		137,323	$	3,965,888
Starbucks Corporation (a)		109,300		5,132,728
Stride Rite Corporation		10,800		112,320
Target Corporation		251,300		10,956,680
Timberland Company (The) (a)		7,500		435,300
Time Warner, Inc. (a)		1,204,500		20,054,925
TJX Companies, Inc.		135,200		3,173,144
Toys 'R' Us, Inc. (a)		60,520		996,159
Tribune Company		91,056		3,865,327
Tupperware Corporation		15,000		257,550
Univision Communications, Inc. (a)		71,000		2,056,870
Valassis Communications Inc. (a)		13,600		397,664
Value Line, Inc.		2,600		91,364
VF Corporation		30,400		1,520,304
Visteon Corporation		34,000		349,520
Washington Post Company		2,200		1,909,380
Wendy's International, Inc.		32,100		1,148,217
Whirlpool Corporation		18,500		1,155,141
				210,526,107
Consumer Staples — 12.5%
Alberto-Culver Company		24,450		1,139,859
Albertson's, Inc.		102,700		2,504,853
Avon Products, Inc.		131,000		5,634,310
Campbell Soup Company		114,100		2,919,819
Church & Dwight Co., Inc.		11,800		521,324
Clorox Company		58,500		2,911,545
Coca-Cola Company		668,900		29,337,954
Colgate-Palmolive Company		145,700		7,751,240
Costco Wholesale Corporation		126,330		5,136,578
CVS Corporation		108,900		4,559,643
Estée Lauder Companies, Inc. (The)		34,400		1,510,160
General Mills Incorporated		103,900		4,665,110
Gillette Company		275,138		10,724,879
Green Mountain Coffee, Inc. (a)		1,800		33,210
Hain Celestial Group, Inc. (The) (a)		8,700		143,811
Heinz (H.J.) Company		97,600		3,600,464
Hershey Foods Corporation		55,800		2,702,952
Kellogg Company		113,600		4,732,576
Kimberly-Clark Corporation		138,364	$	8,864,981
Kroger Company (a)		200,800		3,172,640
Longs Drug Stores Corporation		9,900		207,900
McCormick & Company, Inc.		33,800		1,209,026
Nature's Sunshine Products, Inc.		4,200		62,496
PepsiAmericas, Inc.		39,000		732,030
PepsiCo, Inc.		468,670		23,433,500
Procter & Gamble Company		710,000		37,026,500
Safeway Inc. (a)		123,000		2,598,990
Smucker (J.M.) Company		14,405		602,273
SUPERVALU, Inc.		36,900		1,053,864
Sysco Corporation		174,900		6,025,305
Tootsie Roll Industries, Inc.		9,649		282,716
United Natural Foods, Inc. (a)		10,000		216,700
Walgreen Company		282,700		10,290,280
Whole Foods Market, Inc.		17,200		1,415,904
Wild Oats Markets, Inc. (a)		6,550		82,530
Wrigley (Wm.) Jr. Company		51,400		3,104,560
				190,912,482
Energy — 1.6%
Anadarko Petroleum Corporation		69,885		4,178,424
Apache Corporation		89,924		4,184,164
Cooper Cameron Corp. (a)		15,600		797,004
Devon Energy Corporation		65,772		4,570,496
EOG Resources, Inc.		31,200		1,982,760
Helmerich & Payne, Inc.		13,000		329,160
Kinder Morgan, Inc.		34,400		2,064,344
Noble Energy, Inc.		16,300		901,553
Pioneer Natural Resources Company		33,100		1,193,255
Rowan Companies, Inc. (a)		29,200		713,064
Sunoco, Inc.		21,100		1,438,387
Williams Companies, Inc.		140,900		1,711,935
				24,064,546
Financials — 23.2%
AFLAC, Inc.		141,300		5,601,132
Allied Capital Corporation		36,100		889,865
AMBAC Financial Group, Inc.		29,900		2,126,189
American Express Company		350,700		17,622,675

-17-

Domini Social Index Portfolio / Portfolio of Investments (Continued)
July 31, 2004


Issuer	Shares		Value
Financials (Continued)
American International Group, Inc.		716,576	$	50,626,095
AmSouth Bancorporation		97,800		2,399,034
Aon Corporation		87,300		2,308,212
Capital One Financial Corporation		66,300		4,595,916
Cathay General Bancorp		6,495		435,230
Charter One Financial, Inc.		62,010		2,753,864
Chittenden Corporation		10,576		359,267
Chubb Corporation		52,100		3,583,438
Cincinnati Financial Corporation		43,274		1,725,767
Comerica Incorporated		47,100		2,753,937
Edwards (A.G.), Inc.		22,887		743,828
Fannie Mae		265,965		18,872,876
Fifth Third Bancorp		155,911		7,695,767
First Horizon National Corporation		34,400		1,491,240
FirstFed Financial Corp. (a)		4,500		203,895
Franklin Resources, Inc.		69,500		3,353,375
Freddie Mac		188,800		12,141,728
GATX Corporation		12,600		321,048
Golden West Financial		42,000		4,490,220
GreenPoint Financial Corporation		36,900		1,499,247
Hartford Financial Services Group (The)		80,300		5,227,530
Heartland Financial USA, Inc.		4,200		75,978
Janus Capital Group Inc.		68,026		902,025
Jefferson-Pilot Corporation		39,325		1,894,679
KeyCorp		113,400		3,422,412
Lincoln National Corporation		49,800		2,176,260
Marsh & McLennan Companies, Inc.		144,700		6,421,786
MBIA, Inc.		39,200		2,116,016
MBNA Corporation		352,575		8,705,077
Medallion Financial Corp.		4,300		30,401
Mellon Financial Corporation		115,600		3,176,688
Merrill Lynch & Co., Inc.		262,760		13,064,427
MGIC Investment Corporation		27,600		1,959,600
Moody's Corporation		41,300		2,812,530
Morgan (J.P.) Chase & Co.		978,712		36,535,319
National City Corporation		189,900		6,931,350
Northern Trust Corporation		61,200		2,455,956
PNC Financial Services Group		76,900	$	3,891,140
Progressive Corporation (The)		59,800		4,581,876
Providian Financial Corporation (a)		82,200		1,137,648
Rouse Company		28,500		1,390,800
SAFECO Corporation		37,600		1,769,456
Schwab (Charles) Corporation		375,500		3,296,890
SLM Corporation		121,400		4,603,488
St. Paul Travelers Companies, Inc. (The)		183,564		6,804,718
State Street Corporation		92,400		3,955,644
SunTrust Banks, Inc.		77,700		5,124,315
Synovus Financial Corporation		84,250		2,145,848
U.S. Bancorp		519,921		14,713,764
UnumProvident Corporation		80,900		1,290,355
Wachovia Corporation		360,743		15,984,522
Washington Mutual, Inc.		239,104		9,277,235
Wells Fargo & Company		463,406		26,604,138
Wesco Financial Corporation		1,900		666,899
				353,740,615
Health Care — 12.8%
Allergan, Inc.		36,305		2,746,110
Amgen, Inc. (a)		349,000		19,851,120
Bard (C.R.), Inc.		28,400		1,567,680
Bausch & Lomb Incorporated		14,000		862,260
Baxter International, Inc.		168,100		5,054,767
Becton Dickinson and Company		70,100		3,310,823
Biogen Idec Inc. (a)		93,950		5,637,000
Biomet, Inc.		71,100		3,127,689
Boston Scientific Corporation (a)		230,900		8,834,234
CIGNA Corporation		39,300		2,436,993
Cross Country Healthcare, Inc. (a)		8,600		128,312
Forest Laboratories, Inc. (a)		101,200		5,089,348
Genzyme Corporation (a)		61,800		3,169,104
Guidant Corporation		85,838		4,748,558
Hillenbrand Industries, Inc.		17,000		965,430
Humana, Inc. (a)		42,900		776,919
IMS Health, Inc.		66,813		1,619,547
Invacare Corporation		7,700		312,235
Invitrogen Corporation (a)		14,500		760,960
Johnson & Johnson		815,470		45,071,027

-18-

Domini Social Index Portfolio / Portfolio of Investments (Continued)
July 31, 2004


Issuer	Shares		Value
Health Care (Continued)
King Pharmaceuticals Inc. (a)		66,200	$	747,398
Manor Care, Inc.		24,700		771,875
McKesson HBOC, Inc.		81,320		2,616,064
MedImmune, Inc. (a)		69,800		1,608,192
Medtronic, Inc.		332,600		16,520,242
Merck & Co., Inc.		610,200		27,672,570
Millipore Corporation (a)		13,700		721,853
Mylan Laboratories, Inc.		75,475		1,118,540
St. Jude Medical, Inc. (a)		47,800		3,256,614
Stryker Corporation		110,500		5,268,640
Synovis Life Technologies, Inc. (a)		2,600		23,816
Thermo Electron Corporation (a)		43,800		1,126,536
UnitedHealth Group Incorporated		183,030		11,512,612
Waters Corporation (a)		33,400		1,465,592
Watson Pharmaceuticals (a)		29,200		736,132
Zimmer Holdings, Inc. (a)		66,900		5,105,139
				196,341,931
Industrials — 6.0%
3M Company		214,600		17,674,456
Alaska Air Group, Inc. (a)		6,900		143,727
American Power Conversion		53,600		809,360
AMR Corporation (a)		44,400		374,292
Apogee Enterprises, Inc.		7,400		77,848
Ault, Inc. (a)		1,200		3,612
Avery Dennison Corporation		30,100		1,823,157
Baldor Electric Company		8,800		201,344
Banta Corporation		6,550		260,101
Brady Corporation		5,500		248,600
Bright Horizons Family Solutions, Inc. (a)		3,200		162,400
CLARCOR, Inc.		6,450		283,800
Cooper Industries, Inc.		26,300		1,495,681
CPI Corporation		2,100		28,182
Cross (A.T.) Company (a)		3,800		19,798
Cummins, Inc.		12,100		840,103
Deere & Company		68,100		4,277,361
Delta Air Lines, Inc. (a)		32,000		166,080
Deluxe Corporation		13,100		577,055
DeVry, Inc. (a)		18,100		420,825
Donaldson Company, Inc.		22,600		601,838
Donnelley (R.R.) & Sons Company		67,200	$	2,132,928
Emerson Electric Company		116,700		7,083,690
Fastenal Company		21,400		1,334,932
FedEx Corporation		82,200		6,730,536
Gerber Scientific, Inc. (a)		5,700		36,936
Graco, Inc.		18,552		584,017
Grainger (W.W.), Inc.		24,500		1,297,275
Granite Construction Incorporated		10,625		189,019
Harland (John H.) Company		7,600		215,156
Herman Miller, Inc.		19,300		517,240
HNI Corporation		15,200		614,840
Hubbell Incorporated		13,060		590,312
Ikon Office Solutions		38,800		460,556
Illinois Tool Works, Inc.		85,200		7,712,304
Ionics, Inc. (a)		6,200		167,648
JetBlue Airways Corporation (a)		27,300		650,013
Kadant Inc. (a)		3,700		74,370
Kansas City Southern Industries, Inc. (a)		15,700		229,534
Kelly Services, Inc.		8,475		229,927
Lawson Products, Inc.		2,500		92,800
Lincoln Electric Holdings, Inc.		11,000		374,110
Masco Corporation		121,100		3,662,064
Milacron, Inc. (a)		8,700		31,320
Nordson Corporation		10,500		439,635
Norfolk Southern Corporation		109,200		2,914,548
Pitney Bowes, Inc.		64,900		2,738,780
Robert Half International, Inc.		48,400		1,346,488
Ryder System, Inc.		18,000		772,200
Smith (A.O.) Corporation		5,200		149,344
Southwest Airlines Co.		219,162		3,171,274
SPX Corporation		20,830		852,989
Standard Register Company		6,000		65,760
Steelcase, Inc.		15,500		202,275
Tennant Company		2,300		84,985
Thomas & Betts Corporation (a)		15,100		397,130
Thomas Industries, Inc.		4,000		124,000
Toro Company		6,400		419,200
Trex Company, Inc. (a)		3,700		165,020

-19-

Domini Social Index Portfolio / Portfolio of Investments (Continued)
July 31, 2004


Issuer	Shares		Value
Industrials (Continued)
United Parcel Service, Inc.		157,933	$	11,364,858
Yellow Roadway Corporation (a)		12,480		543,004
				91,252,637
Information Technology — 21.6%
3Com Corporation (a)		103,000		507,790
Adaptec, Inc. (a)		27,400		205,226
ADC Telecommunications, Inc. (a)		234,000		561,600
Advanced Micro Devices, Inc. (a)		98,300		1,227,767
Advent Software, Inc. (a)		8,500		134,810
Analog Devices, Inc.		103,000		4,089,100
Andrew Corporation (a)		43,800		475,230
Apple Computer, Inc. (a)		103,200		3,337,488
Applied Materials, Inc. (a)		465,200		7,894,444
Arrow Electronics, Inc. (a)		31,600		747,656
Autodesk, Inc.		32,000		1,286,400
Automatic Data Processing, Inc.		162,974		6,841,649
BMC Software, Inc. (a)		60,800		953,344
Borland Software Corporation (a)		21,100		174,497
CDW Corporation		23,400		1,504,620
Ceridian Corporation (a)		39,700		714,600
Cisco Systems, Inc. (a)		1,857,230		38,741,818
Coherent, Inc. (a)		7,700		202,626
Compuware Corporation (a)		109,800		542,412
Dell Inc. (a)		694,800		24,644,556
Dionex Corporation (a)		5,600		264,264
Electronic Arts Inc. (a)		82,700		4,145,751
Electronic Data Systems Corporation		133,700		2,470,776
EMC Corporation (a)		669,100		7,340,027
Entegris, Inc. (a)		19,000		169,100
Hewlett-Packard Company		837,310		16,871,797
Hutchinson Technology Incorporated (a)		6,500		144,755
Imation Corporation		9,100		301,665
Intel Corporation		1,776,700		43,315,946
Lexmark International Group, Inc. (a)		35,600		3,150,600
LSI Logic Corporation (a)		104,200		530,378
Lucent Technologies, Inc. (a)		1,178,092		3,593,181
Merix Corporation (a)		3,750	$	38,475
Micron Technology, Inc. (a)		169,400		2,291,982
Microsoft Corporation		2,966,200		84,418,052
Molex Incorporated		27,646		800,628
National Semiconductor Corporation (a)		99,400		1,704,710
Novell, Inc. (a)		108,100		739,404
Novellus Systems, Inc. (a)		40,800		1,101,600
palmOne, Inc. (a)		13,904		559,219
Paychex, Inc.		104,600		3,212,266
PeopleSoft, Inc. (a)		98,600		1,776,772
Plantronics Inc. (a)		13,400		518,312
QRS Corporation (a)		4,100		27,757
Qualcomm, Inc.		222,300		15,356,484
Red Hat, Inc. (a)		47,200		808,064
Sapient Corporation (a)		32,800		229,272
Scientific-Atlanta, Inc.		42,900		1,319,175
Solectron Corporation (a)		262,000		1,441,000
Sun Microsystems, Inc. (a)		910,500		3,596,475
Symantec Corporation (a)		86,200		4,030,712
Tektronix, Inc.		22,600		687,040
Tellabs, Inc. (a)		114,100		1,016,631
Texas Instruments, Inc.		477,500		10,185,075
Xerox Corporation (a)		220,300		3,053,358
Xilinx, Inc.		95,600		2,813,507
Yahoo! Inc. (a)		369,460		11,379,367
				330,191,210
Materials — 1.6%
Air Products & Chemicals, Inc.		63,100		3,265,425
Airgas, Inc.		21,600		469,800
Bemis Company, Inc.		30,400		804,992
Cabot Corporation		17,900		681,632
Calgon Carbon Corporation		10,100		63,933
Caraustar Industries, Inc. (a)		7,200		100,440
Crown Holdings, Inc. (a)		48,900		495,846
Ecolab, Inc.		71,900		2,192,950
Engelhard Corporation		33,500		984,900
Fuller (H.B.) Company		7,300		195,129
IMCO Recycling, Inc. (a)		3,800		47,120
Lubrizol Corporation		13,300		460,579
MeadWestvaco Corp.		56,712		1,693,420
Minerals Technologies, Inc.		5,300		296,111
Nucor Corporation		21,250		1,777,563

-20-

Domini Social Index Portfolio / Portfolio of Investments (Continued)
July 31, 2004


Issuer	Shares		Value
Materials (Continued)
Praxair, Inc.		90,200	$	3,558,390
Rock-Tenn Company		9,000		127,530
Rohm & Haas Company		60,587		2,375,010
Sealed Air Corporation (a)		23,000		1,091,120
Sigma-Aldrich Corporation		18,600		1,068,384
Sonoco Products Company		25,445		659,280
Valspar Corporation		13,400		656,600
Wausau-Mosinee Paper Corporation		15,700		243,978
Wellman, Inc.		8,200		57,728
Worthington Industries, Inc.		22,200		454,656
				23,822,516
Telecommunication Services — 5.8%
AT&T Corporation		219,216		3,310,162
AT&T Wireless Services, Inc. (a)		747,587		10,795,156
BellSouth Corporation		504,700		13,672,323
Citizens Communications Company (a)		77,367		1,114,085
SBC Communications, Inc.		909,228		23,039,837
Sprint Corp. — FON Group		368,800		6,889,184
Telephone and Data Systems, Inc.		14,500		1,100,550
Verizon Communications		760,722		29,318,226
				89,239,523
Utilities — 0.7%
AGL Resources, Inc.		16,600		490,530
Cascade Natural Gas Corporation		2,900		58,261
Cleco Corporation		12,200	$	210,450
Energen Corporation		9,700		459,295
Equitable Resources, Inc.		16,300		835,864
IDACORP, Inc.		9,700		266,750
KeySpan Corporation		42,900		1,543,971
MGE Energy, Inc.		4,400		138,732
National Fuel Gas Company		21,800		556,772
NICOR, Inc.		11,400		377,454
NiSource, Inc.		73,647		1,524,493
Northwest Natural Gas Company		6,500		190,970
OGE Energy Corporation		22,900		569,981
Peoples Energy Corporation		10,900		425,100
Pepco Holdings, Inc.		47,500		855,000
Questar Corporation		23,100		946,638
Southern Union Company (a)		19,244		383,148
WGL Holdings		12,600		345,744
				10,179,153
Total Investments — 99.6%
(Cost $1,462,322,071)(b)			$	1,520,270,720
Other Assets, less liabilities — 0.4%				6,642,951
Net Assets — 100.0%			$	1,526,913,671


(a)	Non-income producing security.


(b)	The aggregate cost for federal income tax purposes is $1,555,258,565, the aggregate gross unrealized appreciation is $215,610,984, and the aggregate gross unrealized depreciation is $250,598,829, resulting in net unrealized depreciation of $34,987,845.

Copyright in the Domini 400 Social Index^SM is owned by KLD Research & Analytics, Inc., and the Index is reproduced here by permission. No portion of the Index may be reproduced or distributed by any means or in any medium without the express written consent of the copyright owner.

See Notes to Financial Statements

-21-

Domini Social Index Portfolio

Statement of Assets and Liabilities

July 31, 2004


ASSETS:
Investments at value (Cost $1,462,322,071)	$	1,520,270,720
Cash		7,963,233
Receivable for securities sold		8,110,892
Dividends receivable		2,209,215
Total assets		1,538,554,060
LIABILITIES:
Payable for securities purchased		11,249,863
Management fee payable (Note 2)		260,033
Other accrued expenses		130,493
Total liabilities		11,640,389
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS	$	1,526,913,671

See Notes to Financial Statements

-22-

Domini Social Index Portfolio

Statement of Operations

Year Ended July 31, 2004


INVESTMENT INCOME
Dividends				$	21,997,546
EXPENSES
Management fee (Note 2)	$	2,951,753
Custody fees (Note 3)		254,250
Professional fees		150,922
Trustees fees		47,212
Miscellaneous		189,513
Total expenses		3,593,650
Fees paid indirectly (Note 3)		(52,887	)
Net expenses					3,540,763

NET INVESTMENT INCOME					18,456,783
Net realized loss on investments
Proceeds from sales	$	110,460,836
Cost of securities sold		(132,838,984	)
Net realized loss on investments					(22,378,148	)
Net changes in unrealized appreciation/(depreciation) of investments
Beginning of period	$	(104,903,844	)
End of period		57,948,649
Net change in unrealized appreciation					162,852,493
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS				$	158,931,128

See Notes to Financial Statements

-23-

Domini Social Index Portfolio

Statements of Changes in Net Assets


	Year Ended July 31, 2004			Year Ended July 31, 2003
INCREASE IN NET ASSETS
From Operations:
Net investment income	$	18,456,783		$	15,767,885
Net realized loss on investments		(22,378,148	)		(118,701,110	)
Net change in unrealized appreciation of investments		162,852,493			242,621,915
Net Increase in Net Assets Resulting from Operations		158,931,128			139,688,690
Transactions in Investors' Beneficial Interest:
Additions		318,907,730			249,027,799
Reductions		(269,267,844	)		(309,700,811	)
Net Increase/(Decrease) in Net Assets from Transactions in Investors' Beneficial Interests		49,639,886			(60,673,012	)
Total Increase in Net Assets		208,571,014			79,015,678
NET ASSETS:
Beginning of period		1,318,342,657			1,239,326,979
End of period	$	1,526,913,671		$	1,318,342,657

See Notes to Financial Statements

-24-

Domini Social Index Portfolio

Financial Highlights

	Year Ended July 31,
	2004			2003			2002			2001			2000
Net assets (in millions)	$	1,527		$	1,318		$	1,239		$	1,729		$	1,974
Total return		12.01	%		12.13	%		(22.71	)%		(17.28	)%		8.94	%
Ratio of net investment income to average net assets (annualized)		1.25	%		1.32	%		1.02	%		0.78	%		0.70	%
Ratio of expenses to average net assets (annualized)		0.24	%⁽²⁾		0.23	%⁽¹⁾⁽²⁾		0.22	%⁽²⁾		0.22	%⁽²⁾		0.24	%⁽¹⁾⁽²⁾
Portfolio turnover rate		8	%		8	%		13	%		19	%		9	%


⁽¹⁾	Reflects an expense reimbursement and fee waiver by the Manager of 0.01% and 0.002% for the years ended July 31, 2003 and 2000, respectively. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 0.24% and 0.24% for the years ended July 31, 2003 and 2000, respectively.


⁽²⁾	Ratio of expenses to average net assets includes indirectly paid expenses. Excluding indirectly paid expenses, the expense ratios would have been 0.24%, 0.23%, 0.22%, 0.21%, and 0.21%, for the years ended July 31, 2004, 2003, 2002, 2001, and 2000, respectively.

See Notes to Financial Statements

-25-

Domini Social Index Portfolio

Notes to Financial Statements

July 31, 2004

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Domini Social Index Portfolio is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company that was organized as a trust under the laws of the State of New York on June 7, 1989. The Portfolio intends to correlate its investment portfolio as closely as is practicable with the Domini 400 Social Index,^SM which is a common stock index developed and maintained by KLD Research & Analytics, Inc. The Declaration of Trust permits the Trustees to issue an unlimited number of beneficial interests in the Portfolio. The Portfolio commenced operations effective on August 10, 1990, and began investment operations on June 3, 1991.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 Portfolio's significant accounting policies.

(A) Valuation of Investments. The Portfolio values securities listed or traded on national securities exchanges at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price which represents the current value of the security. Securities listed on the NASDAQ National Market System are valued using the NASDAQ Official Closing Price (NOCP). If an NOCP is not available for a security listed on the NASDAQ National Market System, the security will be valued at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price. Portfolio securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Portfolio's Board of Trustees.

(B) Dividend Income. Dividend income is recorded on the ex-dividend date.

-26-

Domini Social Index Portfolio / Notes to Financial Statements (Continued)
July 31, 2004

(C) Federal Taxes. The 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 Portfolio will be taxed on its share of the Portfolio's ordinary income and capital gains. It is intended 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 (Domini) is registered as an investment adviser under the Investment Advisers Act of 1940. The services provided by Domini consist of investment supervisory services, overall operational support, and administrative services. The administrative services include the provision of general office facilities and supervising the overall administration of the Portfolio. For its services under the Management Agreement, Domini receives from the Portfolio a fee accrued daily and paid monthly at an annual rate equal to 0.20% of the Portfolio's average daily net assets.

(B) Submanager. SSgA Funds Management, Inc. (SSgA) provides investment submanagement services to the Portfolio on a day-to-day basis pursuant to a Submanagement Agreement with Domini. SSgA does not determine the composition of the Domini 400 Social Index.^SM The Index's composition is determined by KLD Research & Analytics, Inc.

3. INVESTMENT TRANSACTIONS

For the year ended July 31, 2004, cost of purchases and proceeds from sales of investments, other than U.S. government securities and short-term obligations, aggregated $178,900,308 and $110,460,836, respectively. For the year ended July 31, 2004, custody fees of the Portfolio were reduced by $52,887, which was compensation for uninvested cash left on deposit with the custodian.

-27-

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Investors
Domini Social Index Portfolio:

We have audited the accompanying statement of assets and liabilities of Domini Social Index Portfolio (the "Portfolio"), including the portfolio of investments, as of July 31, 2004, 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 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 auditing standards of the Public Company Accounting Oversight Board (United States). 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 as of July 31, 2004 by correspondence with the custodian. As to securities purchased or sold but not yet received or delivered, we performed other appropriate auditing procedures. 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 Domini Social Index Portfolio as of July 31, 2004, 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 U.S. generally accepted accounting principles.

Boston, Massachusetts
September 3, 2004

-28-

Domini Institutional Social Equity Fund

Statement of Assets and Liabilities

July 31, 2004


ASSETS:
Investments in Domini Social Index Portfolio, at value (Note 1)	$	198,859,212
Total assets		198,859,212
LIABILITIES:
Management fee payable		9,153
Other accrued expenses		29,591
Payable for capital shares		34,000
Total liabilities		72,744
NET ASSETS	$	198,786,468
NET ASSETS CONSIST OF:
Paid-in capital	$	302,079,140
Undistributed net investment income		459,413
Accumulated net realized loss from Portfolio		(44,958,985	)
Net unrealized depreciation from Portfolio		(58,793,100	)
	$	198,786,468
Shares outstanding		12,034,315
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE ($198,786,468 ÷ 12,034,315)	$	16.52

See Notes to Financial Statements

-29-

Domini Institutional Social Equity Fund

Statement of Operations

Year Ended July 31, 2004


INCOME:
Investment income from Portfolio	$	2,894,089
Expenses from Portfolio		(464,810	)
Net investment income from Portfolio		2,429,279
EXPENSES:
Sponsor fee (Note 2)		484,059
Professional fees		36,465
Miscellaneous		24,667
Printing		15,645
Trustees fees		6,469
Accounting fees		9,027
Transfer agent fees		1,915
Total Expenses		578,247
Fees Waived (Note 2)		(329,906	)
Net Expenses		248,341
NET INVESTMENT INCOME		2,180,938
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized loss from Portfolio		(3,021,538	)
Net change in unrealized appreciation from Portfolio		22,878,879
Net realized and unrealized gain from Portfolio		19,857,341
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	22,038,279

See Notes to Financial Statements

-30-

Domini Institutional Social Equity Fund

Statements of Changes in Net Assets


	Year Ended July 31, 2004			Year Ended July 31, 2003
INCREASE/(DECREASE) IN NET ASSETS:
From Operations:
Net investment income	$	2,180,938		$	2,316,161
Net realized loss from Portfolio		(3,021,538	)		(18,311,903	)
Net change in unrealized appreciation from Portfolio		22,878,879			33,382,163
Net Increase in Net Assets Resulting from Operations		22,038,279			17,386,421
Distributions and/or Dividends:
Dividends to shareholders from net investment income		(1,899,672	)		(2,846,370	)
Net Decrease in Net Assets from Dividends and/or Distributions		(1,899,672	)		(2,846,370	)
Capital Share Transactions:
Proceeds from sale of shares		41,269,412			39,217,357
Net asset value of shares issued in reinvestment of dividends and distributions		1,469,111			2,190,828
Payments for shares redeemed		(53,867,535	)		(109,166,276	)
Net Decrease in Net Assets from Capital Share Transactions		(11,129,012	)		(67,758,091	)
Total Increase/(Decrease) in Net Assets		9,009,595			(53,218,040	)
NET ASSETS:
Beginning of period		189,776,873			242,994,913
End of period (including undistributed net investment income of $459,413 and $280,147, respectively)	$	198,786,468		$	189,776,873
OTHER INFORMATION
Share Transactions:
Sold		2,549,303			2,973,589
Issued in reinvestment of dividends and/or distributions		91,218			163,060
Redeemed		(3,339,475	)		(8,395,491	)
Net Decrease		(698,954	)		(5,258,842	)

See Notes to Financial Statements

-31-

Domini Institutional Social Equity Fund

Financial Highlights


	Year Ended July 31,
	2004			2003			2002			2001			2000
For a share outstanding for the period:
Net asset value, beginning of period	$	14.90		$	13.51		$	18.53		$	23.15		$	21.50
Income/(loss) from investment operations:
Net investment income		0.18			0.19			0.17			0.14			0.12
Net realized and unrealized gain/(loss) on investments		1.60			1.41			(4.28	)		(4.14	)		1.79
Total income/(loss) from investment operations		1.78			1.60			(4.11	)		(4.00	)		1.91
Less dividends and distributions:
Dividends to shareholders from net investment income		(0.16	)		(0.21	)		(0.16	)		(0.12	)		(0.12	)
Distributions to shareholders from net realized gain		—			—			(0.75	)		(0.50	)		(0.14	)
Total dividends and distributions		(0.16	)		(0.21	)		(0.91	)		(0.62	)		(0.26	)
Net asset value, end of period	$	16.52		$	14.90		$	13.51		$	18.53		$	23.15
Total return		11.97	%		12.05	%		(23.05	)%		(17.37	)%		8.85	%
Portfolio turnover*		8	%		8	%		13	%		19	%		9	%
Ratio/supplemental data (annualized):
Net assets, end of year (in millions)	$	199		$	190		$	243		$	416		$	463
Ratio of expenses to average net assets		0.37	%⁽¹⁾		0.30	%⁽¹⁾		0.30	%⁽¹⁾		0.30	%⁽¹⁾		0.30	%⁽¹⁾
Ratio of net investment income to average net assets		1.13	%		1.24	%		0.93	%		0.69	%		0.60	%


*	For the Portfolio in which the Fund invests.


⁽¹⁾	Reflects a waiver of fees by the Manager of the Portfolio and the Sponsor of the Fund. Had the Manager and the Sponsor not waived their fees, the ratio of expenses to average net assets would have been 0.54%, 0.53%, 0.50%, 0.50%, and 0.51%, for the years ended July 31, 2004, 2003, 2002, 2001, and 2000, respectively.

See Notes to Financial Statements

-32-

Domini Institutional Social Equity Fund

Notes to Financial Statements

July 31, 2004

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Domini Institutional Social Equity Fund is a series of the Domini Institutional Trust. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940 as an open-end management investment company. The Fund invests substantially all of its assets in the Domini Social Index Portfolio, a diversified, open-end management investment company having the same investment objectives as the Fund. The value of such investment reflects the Fund's proportionate interest in the net assets of the Portfolio (approximately 13.02% at July 31, 2004). 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 commenced operations on May 30, 1996.

(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 investments in the Portfolio. Dividends to shareholders are usually declared and paid quarterly from net investment income. Distributions to shareholders of realized capital gains, if any, are made annually. Distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications have been made to the Fund's components of net assets to reflect income and gains available for distribution (or available capital loss carryovers, as applicable) under income tax regulations.

-33-

Domini Institutional Social Equity Fund / Notes to Financial Statements (Continued)
July 31, 2004

(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 deemed necessary.

(D) Other: All net investment income and realized and unrealized gains and losses of the Portfolio are allocated daily pro rata among the Fund and the other investors in the Portfolio.

2. TRANSACTIONS WITH AFFILIATES

(A) Manager. The Portfolio has retained Domini Social Investments LLC (Domini) to serve as investment manager and administrator. The services provided by Domini consist of investment supervisory services, overall operational support, and administrative services, including the provision of general office facilities and supervising the overall administration of the Portfolio. For its services under the Management Agreement, Domini receives from the Portfolio a fee accrued daily and paid monthly at an annual rate equal to 0.20% of the Portfolio's average daily net assets.

(C) Sponsor. Pursuant to a Sponsorship Agreement, Domini provides the Fund with the administrative personnel and services necessary to operate the Fund. In addition to general administrative services and facilities for the Fund similar to those provided by Domini to the Portfolio under the Management Agreement, Domini answers questions from the general public and the media regarding the composition of the Index and the securities holdings of the Portfolio. For these services and facilities, Domini receives fees computed and paid monthly from the Fund at an annual rate equal to 0.25% of the average daily net assets of the Fund. Domini is contractually waiving its fee to the extent necessary to keep the aggregate annual operating expenses of the Fund (including the Fund's share of the Portfolio's expenses but excluding brokerage

-34-

Domini Institutional Social Equity Fund / Notes to Financial Statements (Continued)
July 31, 2004

fees and commissions, interest, taxes, and other extraordinary expenses), net of waivers and reimbursements, at no greater than 0.40% of the average daily net assets of the Fund until November 30, 2004, absent an earlier modification by the Board of Trustees, which oversees the Fund. A similar fee waiver arrangement was in effect in prior periods. For the year ended July 31, 2004, Domini waived fees totaling $329,906.

3. INVESTMENT TRANSACTIONS

For the year ended July 31, 2004, additions and reductions in the Fund's investment in the Portfolio aggregated $41,269,412 and $54,540,800, respectively.

4. FEDERAL TAX STATUS

The tax basis of the components of net assets at July 31, 2004, is as follows:



Undistributed ordinary income	$	459,413
Accumulated loss carryforwards (ALC)		(54,460,345	)
Unrealized appreciation/(depreciation)		(49,291,740	)
Distributable net earnings/(deficit)	$	(103,292,672	)

The Fund has accumulated capital loss carryforwards of $52,230,177, of which $43,706,987 will expire in the year 2011 and $8,523,190 in the year 2012. To the extent that the Fund realizes future net capital gains, those gains will be offset by any unused capital loss carryforwards.

The Fund's ALC reflects net realized capital losses of $2,230,168 incurred during the period from November 1, 2003, through July 31, 2004. These losses are deferred and will be recognized on August 1, 2004, for tax purposes.

For federal income tax purposes, dividends paid were characterized as follows:


	Year Ended
	2004		2003
Ordinary income	$	1,899,672	$	2,846,370
Long-term capital gain		—		—
Total	$	1,899,672	$	2,846,370

For corporate shareholders, 100% of dividends paid from net investment income were eligible for the corporate dividends received deduction. The Fund intends to designate the maximum amount allowable as qualified dividend income.

-35-

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Domini Institutional Social Equity Fund:

We have audited the accompanying statement of assets and liabilities of Domini Institutional Social Equity Fund (the "Fund") as of July 31, 2004, 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 the standards of the Public Company Oversight Accounting Board (United States). 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 Domini Institutional Social Equity Fund as of July 31, 2004, 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 U.S. generally accepted accounting principles.

Boston, Massachusetts
September 3, 2004

-36-

Trustees and Officers

The following table presents information about each Trustee and each Officer of the Domini Institutional Trust and the Domini Social Index Portfolio as of July 31, 2004. Asterisks indicate that those Trustees and Officers are ‘‘interested persons’’ (as defined in the Investment Company Act of 1940) of the Fund. Each Trustee and each Officer of the Trust and the Portfolio noted as an interested person is interested by virtue of his or her position with Domini Social Investments LLC as described below. Unless otherwise indicated below, the address of each Trustee and each Officer is 536 Broadway, 7^th Floor, New York, NY 10012. Neither the Fund nor the Portfolio holds annual shareholder meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. This means that each Trustee will be elected to hold office until his or her successor is elected or until he or she retires, resigns, dies, or is removed from office. No Trustee or Officer is a director of a public company or a registered investment company other than, with respect to the Trustees, the Domini Funds.


Interested Trustee and Officer

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

Amy L. Domini* (54) Chair, Trustee, and President of the Trust since 1996 and the Portfolio since 1990	President and CEO (since 2002) and Manager (since 1997), Domini Social Investments LLC; Manager, DSIL Investment Services LLC (since 1998); Board Member, Progressive Government Institute (nonprofit education on executive branch of the federal government) (since 2003); Board Member, Financial Markets Center (nonprofit financial markets research and education resources provider) (since 2002); Trustee, New England Quarterly (periodical) (since 1998); Board Member, Social Investment Forum (trade organization) (1995-1999); Trustee, Episcopal Church Pension Fund (since 1994); CEO, Secretary, and Treasurer, KLD Research & Analytics, Inc. (social research provider) (1990-2000); Private Trustee, Loring, Wolcott & Coolidge Office (fiduciary) (since 1987).	4


Disinterested Trustees

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

Julia Elizabeth Harris (56) Trustee of the Trust and the Portfolio since 1999	Director and President, Alpha Global Solutions, LLC (agribusiness) (since 2004); Trustee, Fiduciary Trust Company (financial institution) (since 2001); Director and Treasurer, Boom Times, Inc. (membership organization) (1997-1999); Vice President, UNC Partners, Inc. (financial management) (since 1990).	4

-37-

Trustees and Officers


Disinterested Trustees (Continued)

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

Kirsten S. Moy (57) Trustee of the Trust and the Portfolio since 1999	Board Member, Community Reinvestment Fund (since 2003); Director, Economic Opportunities Program, The Aspen Institute (research and education) (since 2001); Group Leader, Financial Innovations Roundtable (research) (2000-2001); Member, Board of Overseers, Graduate Program in Community Development at Southern New Hampshire University (1999-2002); Consultant on Social Investments, Equitable Life/AXA (1998-2001); Project Director, Community Development Innovation and Infrastructure Initiative (research) (1998-2001).	4

William C. Osborn (60) Trustee of the trust and the Portfolio since 1997	Manager, Massachusetts Green Energy Fund Management 1, LLC (venture capital) (since 2004); Manager, Commons Capital Management LLC (venture capital) (since 2000); Special Partner/Consultant, Arete Corporation (venture capital) (1999-2004); Director, World Power Technologies, Inc. (power equipment production) (since 1999); Director, Investors’ Circle (socially responsible investor network) (since 1999); Principal/Manager, Venture Investment Management Company LLC (venture capital) (1996-1999).	4

Karen Paul (59) Trustee of the Trust and the Portfolio since 1997	Visiting Professor, Escuela Graduado Administración Dirección Empresas, Instituto Tecnológico y de Estudios Superiores de Monterrey (2004); Professor, Catholic University of Bolivia (2003); Fulbright Fellow, U.S. Department of State (2003); Partner, Trinity Industrial Technology (1997-2002); Executive Director, Center for Management in the Americas (1997-2002); Professor of Management and International Business, Florida International University (since 1990).	4

Gregory A. Ratliff (44) Trustee of the Trust and the Portfolio since 1999	Community Investment Consultant (self-employment) (since 2002); Senior Fellow, The Aspen Institute (research and education) (2002); Director, Economic Opportunity, John D. and Catherine T. MacArthur Foundation (1997-2002).	4

-38-

Trustees and Officers


Disinterested Trustees (Continued)

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

John L. Shields (51) Trustee of the Trust and the Portfolio since 2004	Advisory Board Member, Vestmark, Inc. (software company) (since 2003); Managing Principal, Shields Smith & Webber LLC (management consulting firm) (since 2002); President and CEO, Citizens Advisers, Inc. (1998-2002); President and CEO, Citizens Securities, Inc. (1998-2002); President and Trustee, Citizens Funds (1998-2002).	4

Frederick C. Williamson, Sr. (88) Trustee of the Trust since 1997 and the Portfolio since 1990	President’s Advisory Board, Salve Regina University, Newport, R.I. (since 1999); Board Member, Preserve Rhode Island (nonprofit preservation) (since 1999); Board of Directors, Grow Smart Rhode Island (nonprofit state planning) (since 1998); Advisor, National Parks and Conservation Association (1997-2001); Chairman, Rhode Island Historical Preservation and Heritage Commission (state government) (since 1995); Treasurer and Trustee, RIGHA Foundation (charitable foundation supporting healthcare needs) (since 1994); Trustee, National Park Trust (nonprofit land acquisition) (since 1983); Trustee, Rhode Island Black Heritage Society (nonprofit education) (since 1974); State Historic Preservation Officer (state government) (since 1969).	4


Officers

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

Elizabeth L. Belanger* (32) Secretary of the Trust and the Portfolio since 2004	Chief Compliance Officer (since 2004) and Director of Compliance (since 2003), Domini Social Investments LLC; Associate, Bingham McCutchen LLP (law firm) (1997-2003).	N/A

Adam M. Kanzer* (38) Chief Legal Officer of the Trust and the Portfolio since 2003	General Counsel and Director of Shareholder Advocacy, Domini Social Investments LLC (since 1998).	N/A

-39-

Trustees and Officers


Officers (Continued)

Name, Age, Position(s) Held, and Length of Time Served	Principal Occupation(s) During Past 5 Years and Other Directorships Held	Number of Portfolios in the Domini Family of Funds Overseen by Trustee

Carole M. Laible* (40) Treasurer of the Trust and the Portfolio since 1997	Chief Operating Officer (since 2002) and Financial/Compliance Officer (1997-2003), Domini Social Investments LLC; President and CEO (since 2002), Chief Compliance Officer (since 2001), Chief Financial Officer, Secretary, and Treasurer (since 1998), DSIL Investment Services LLC.	N/A

Steven D. Lydenberg* (58) Vice President of the Trust and the Portfolio since 1990	Chief Investment Officer (since 2003) and Member (since 1997), Domini Social Investments LLC; Director (1990-2003) and Director of Research (1990-2001), KLD Research & Analytics, Inc. (social research provider).	N/A

The Fund’s Statement of Information includes additional information about the Trustees and is available without charge, upon request, by calling the following toll-free number: 1-800-582-6757.

-40-

Proxy Voting Information

The Domini Funds’ Proxy Voting Policies and Procedures are available, free of charge, by calling 1-800-762-6814, by visiting www.domini.com/shareholder-advocacy/Proxy-Voting/index.htm, or by visiting the EDGAR database on the Securities and Exchange Commission's (SEC) website at www.sec.gov. All proxy votes cast for the Domini Funds are posted to Domini's website on an ongoing basis over the course of the year. An annual record of all proxy votes cast for the Funds during the most recent 12-month period ended June 30 can be obtained, free of charge, at www.domini.com, and on the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule Information

The Domini Funds will file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Domini Funds' Forms N-Q will be available on the EDGAR database on the SEC's website at www.sec.gov. These Forms may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q will also be available to be viewed at www.domini.com.

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Domini Social Investments LLC

P.O. Box 9785
Providence, RI 02940-9785
1-800-582-6757
www.domini.com


Investment Manager and Sponsor: Domini Social Investments LLC 536 Broadway, 7th Floor New York, NY 10012		Custodian: Investors Bank & Trust Company 200 Clarendon Street Boston, MA 02116
Investment Submanager: SSgA Funds Management, Inc. State Street Financial Center One Lincoln Street Boston, MA 02111		Independent Registered Public Accounting Firm: KPMG LLP 99 High Street Boston, MA 02110
Distributor: DSIL Investment Services LLC 536 Broadway, 7th Floor New York, NY 10012 1-800-582-6757		Legal Counsel: Bingham McCutchen LLP 150 Federal Street Boston, MA 02110
Transfer Agent: PFPC Inc. 760 Moore Road King of Prussia, PA 19406

CUSIP# 257131102

Printed on recycled paper



ITEM 2. CODE OF ETHICS.

(a) As of the end of the period covered by this report on Form N-CSR, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, and principal
accounting officer.

(c) Not applicable.

(d) Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

John L. Shields, a member of the Audit Committee, has been determined by the
Board of Trustees of the registrant in its reasonable business judgment to meet
the definition of "audit committee financial expert" as such term is defined in
the instructions to Form N-CSR. In addition, Mr. Shields is an "independent"
member of the Audit Committee as defined in the instructions to Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees

For the fiscal years ended July 31, 2004, and July 31, 2003, the aggregate audit
fees billed to the registrant by KPMG LLP ("KPMG") for professional services
rendered for the audits of the financial statements, or services that are
normally provided in connection with statutory and regulatory filings or
engagements for those fiscal years, are shown in the table below:

Fund                                               2004               2003
- ----                                               ----               ----

Domini Institutional Social Equity Fund          $12,000            $11,000

(b) Audit-Related Fees

There were no audit-related fees billed by KPMG for services rendered for
assurance and related services to the registrant that were reasonably related to
the performance of the audit or review of the registrant's financial statements,
but not reported as audit fees, for the fiscal years ended July 31, 2004, and
July 31, 2003.

There were no audit-related fees billed by KPMG for the fiscal years ended July
31, 2004, and July 31, 2003, that were required to be approved by the
registrant's Audit Committee for services rendered on behalf of Domini Social
Investments LLC and entities controlling, controlled by, or under common control
with Domini Social Investments LLC (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser) that provide ongoing services to the registrant ("Service
Providers").



(c) Tax Fees

In each of the fiscal years ended July 31, 2004, and July 31, 2003, the
aggregate tax fees billed by KPMG for professional services rendered for tax
compliance, tax advice, and tax planning for the registrant are shown in the
table below:

Fund                                                   2004               2003
- ----                                                   ----               ----

Domini Institutional Social Equity Fund               $4,750             $6,200

There were no tax fees billed by KPMG for the fiscal years ended July 31, 2004
and July 31, 2003, that were required to be approved by the registrant's Audit
Committee for services rendered on behalf of the registrant's Service Providers.

(d) All Other Fees

There were no other fees billed by KPMG for the fiscal years ended July 31,
2004, and July 31, 2003, for other non-audit services rendered to the
registrant.

There were no other fees billed by KPMG for the fiscal years ended July 31,
2004, and July 31, 2003, that were required to be approved by the registrant's
Audit Committee for other non-audit services rendered on behalf of the
registrant's Service Providers.

(e)(1) The registrant's Audit Committee must pre-approve all audit and non-audit
services provided by KPMG relating to the operations or financial reporting of
the registrant and all non-audit services provided by KPMG to the registrant's
Service Providers if the engagement relates directly to the operations and
financial reporting of the registrant. Prior to the commencement of any audit or
non-audit services, the Audit Committee reviews the services to determine
whether they are appropriate and permissible under applicable law.

(e)(2) None, or 0%, of the services relating to the audit-related fees, tax
fees, and all other fees paid by the registrant disclosed above were approved by
the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X (which permits audit committee approval after the start of the
engagement with respect to services other than audit review or attest services,
if certain conditions are satisfied).

(f) According to KPMG for the fiscal year ended July 31, 2004, the percentage of
hours spent on the audit of the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons who are not
full-time, permanent employees of KPMG is as follows:

Fund                                                           2004
- ----                                                           ----
Domini Institutional Social Equity Fund                         0%



(g) There were no non-audit fees billed by KPMG, the registrant's accountant,
for services rendered to the registrant's Service Providers for the last two
fiscal years of the registrant. The aggregate non-audit fees billed by KPMG for
services rendered to the registrant for the fiscal year ended July 31, 2004,
were $4,750, and for the fiscal year ended July 31, 2003, were $6,200.

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. SCHEDULE OF INVESTMENTS.

The Schedule of Investments is included as part of the report to stockholders
filed under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
        COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Board of Trustees of the registrant has adopted procedures by which
shareholders may submit recommendations for nominees to the registrant's Board.
The shareholder must submit any such recommendation in writing to the
registrant, to the attention of the Secretary, at the address of the principal
executive offices of the registrant. A shareholder recommendation must include:
(i) certain identifying information regarding the nominee; (ii) the written and
signed consent of the candidate proposed as a nominee; (iii) the name of the
recommending shareholder; (iv) the number of shares owned beneficially and of
record by the recommending shareholder; and (v) a description of all
arrangements or understandings between the recommending shareholder and the
candidate and any other person or persons (including their names) pursuant to
which the recommendation is being made by the recommending shareholder.

ITEM 10. CONTROLS AND PROCEDURES.

(a) Within 90 days prior to the filing of this report on Form N-CSR, Amy L.
Domini, the registrant's President and Principal Executive Officer, and Carole
M. Laible, the registrant's Treasurer and Principal Financial Officer, reviewed
the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
of the Investment Company Act of 1940) and evaluated their effectiveness. Based
on their evaluation, Ms. Domini and Ms. Laible determined that the disclosure
controls and procedures adequately ensure that information required to be
disclosed



by the registrant in this report on Form N-CSR is recorded, processed,
summarized, and reported within the time periods required by the Securities and
Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
that occurred during the registrant's second fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.

ITEM 11. EXHIBITS.

(a)(1) The Code of Ethics referred to in Item 2 is filed herewith.

(a)(2) Separate certifications required by Rule 30a-2(a) under the Investment
Company Act of 1940 for each principal executive officer and principal financial
officer of the registrant are filed herewith.

(a)(3) Not applicable to the registrant.

(b) A single certification required by Rule 30a-2(b) under the Investment
Company Act of 1940, Rule 13a-14b or Rule 15d-14(b) under the Securities
Exchange Act of 1934, and Section 1350 of Chapter 63 of Title 18 of the United
States Code for the chief executive officer and the chief financial officer of
the registrant is filed herewith.




                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

DOMINI INSTITUTIONAL TRUST

By: /s/ Amy L. Domini
    ------------------------------
    Amy L. Domini
    President

Date: October 6, 2004


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By: /s/ Amy L. Domini
    ------------------------------
    Amy L. Domini
    President (Principal Executive Officer)


Date: October 6, 2004

By: /s/ Carole M. Laible
    ------------------------------
    Carole M. Laible
    Treasurer (Principal Financial Officer)

Date: October 6, 2004

Domini Institutional Trust Inactive N-CSRCertified annual shareholder report (management investment company)