Domini Advisor 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 811-21653

DOMINI ADVISOR TRUST

(Exact Name of Registrant as Specified in Charter)

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

Amy Domini Thornton
Domini Social Investments LLC
536 Broadway, 7^th 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, 2008

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.



ANNUAL REPORT 2008		july 31, 2008

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TABLE OF CONTENTS


2		Letter from the President

4		Domini News

5		The Way You Invest Matters: Energy Efficiency

10		The Way You Invest Matters: Activism

		Fund Performance and Holdings
12		Economic and Market Background
14		Domini Social Equity Portfolio
20		Domini European Social Equity Portfolio
27		Domini PacAsia Social Equity Portfolio
34		Domini European PacAsia Social Equity Portfolio

43		Expense Example

45		Financial Statements
		Domini Social Equity Trust
		Domini European Social Equity Trust
		Domini PacAsia Social Equity Trust
		Domini European PacAsia Social Equity Trust
		Report of Independent Registered Public Accounting Firm

62		Financial Statements
		Domini Social Equity Portfolio
		Domini European Social Equity Portfolio
		Domini PacAsia Social Equity Portfolio
		Domini European PacAsia Social Equity Portfolio
		Report of Independent Registered Public Accounting Firm

80		Board of Trustees’ Approval of Management and Submanagement Agreements

90		Trustees and Officers

95		Proxy Voting Information

95		Quarterly Portfolio Schedule Information

LETTER FROM THE PRESIDENT

Dear Fellow Shareholders:

The year ended July 31 was a difficult one for our nation’s economy, for stock markets around the world, and for millions of Americans. Lives have been torn apart by war, civil liberties have been curtailed, and fuel prices have risen to the point that discretionary purchases are not possible for many.

However, there is room for optimism. Stock markets plummeted over the past twelve months. The definition of a bear market is one that has fallen by 20% from its high. This means that the United States, Japan, China, Europe, and the emerging markets are all in the grip of bear markets. The easiest thing to forget during a market downturn is that markets recover. In the last nine bear markets in the U.S., however, the recovery from the point of the 20% drop has been rapid, returning an average of 17% within the year.

I believe we may be approaching the time for this anticipated recovery. Our consumption habits are changing and we have wrung the excesses out of the pricing of stocks. Americans are ready for dramatic shifts in national policy, placing quality of life at the center. We also face a presidential election that provides us with an historic opportunity to set our country on a new path.

The GDP rose 1.9% during the second quarter of 2008. Corporate earnings have also been strong. When you exclude the big banks and brokerage firms involved in the mortgage business, the Standard & Poor’s 500 gained 8.5% in operating earnings during the second quarter.

Why haven’t we had a better market? Most stock pricing models are based on the anticipated future growth of the underlying earnings of a company. But over the past twelve months the stock market did not rise, despite positive corporate earnings in most sectors. The dramatic drop in earnings at financial service companies overwhelmed the psychology of the market, and investors were discouraged.

Wall Street hates risk and marks prices down for it. The risk of the unknown, the havoc the world has experienced, is factored into investment decisions. The gradual movement of the nation towards a foreign policy that is a bit more moderate should reduce perceived risk and contribute to greater investor confidence generally. Domestic infrastructure projects, including green projects, will also give investors more confidence by creating new jobs and more consumers.

As this report went to print, some of the most dramatic events in our economic history were taking place. Again we are seeing how the excesses of Wall Street — unleashed by deregulation — have contributed significantly to our problems. Once again, it is alarmingly clear that our system of finance cannot continue to operate as if its actions didn’t affect

The Way You Invest Matters

all of our lives. To my ears, recent events echo my firm’s motto: The way you invest matters.

We may be on the verge of a significant restructuring of our capital markets, and of government’s role in those markets. Let us hope that we are entering a new era, where Wall Street must consider its impact on Main Street.

We at Domini Social Investments continue to offer the basic building blocks for a diversified portfolio. Our equity funds are designed to allow you, the shareholder, to designate what part of the world you want to emphasize. Our bond fund is conservatively managed (as demonstrated by the fact that we fared very well during the subprime turbulence).

We know that this market has been frightening and difficult, and we recognize that it may be hard for you to stay calm and implement the plans you have for saving for the future. However, we believe that our investors have the ability to look beyond short-term volatility and focus on long-term value. We thank you for your investments with us and for your ongoing support of responsible investing.

Very truly yours,

Amy Domini
amy@domini.com

Keep in Touch with Domini

If you’re a Domini shareholder, you receive a report like this twice each year. But your dollars are working for change all year long, and now there’s a great way to stay in touch. When you sign up for Domini Updates, here’s what you’ll get:


	•	Our email newsletter Investing Matters, with convenient links to quarterly Social Impact Updates and fund commentaries.

	•	Domini Action Alerts, giving you an opportunity to speak out on issues from child labor to global warming.

To get Domini Updates, visit www.domini.com and sign up on our home page.

The Way You Invest Matters

DOMINI NEWS

Go Paperless — Save Trees, Water, and Fees: Paperless E-Delivery is the fastest, most convenient and least expensive way to receive your Domini documents. It is also a greener alternative. Help us to reduce the environmental impact of the Domini Funds by signing up today.

To reduce the significant costs of printing and mailing paper statements and documents, beginning November 28, 2008, we will begin charging an annual fee of $15 for all accounts less than $10,000 that have not signed up for E-Delivery of statements, prospectuses, and shareholder reports. You can avoid this fee by signing up for E-Delivery today.

It’s easy to sign up for E-Delivery. First, you must establish online account access. Visit www.domini.com, click on Account Access at the top of the page, and click the blue “Register Now” button.

Once you’ve set up your account for online access, follow these simple steps:


	1.	Log on to your account and select E-Delivery from the “Account Maintenance” drop-down menu.

	2.	Select the documents you would like to receive electronically. If you have more than one account, be sure to establish E-Delivery for each account.

You will receive a notice by email when each new document is available. (Please make sure to add help@domini.com to your address book to avoid blocking these notices.) Then log on at your convenience to view, print, or save your document. You will still receive certain documents, such as transaction confirmations, by regular mail.

There is no charge to establish E-Delivery and you may view, cancel, or change your E-Delivery profile at any time. If at any time you wish to receive a document by mail, simply send us an email or call our shareholder services line at 1-800-582-6757 between 9 am and 5 pm, Eastern Time.

The Difference Makers: Sandra Waddock’s new book The Difference Makers (Greenleaf Publishing) profiles 23 “visionary social and institutional entrepreneurs who, together, have had a massive impact on getting decision-makers to incorporate social and environmental criteria in the strategies, practices, and purposes of the modern corporation.”

We are pleased to see two of our own among these 23 exceptional people: our Founder and CEO, Amy Domini, and our Chief Investment Officer, Steven Lydenberg. The Difference Makers tells their stories in detail, and largely in their own words.

The Way You Invest Matters

THE WAY YOU INVEST MATTERS: ENERGY EFFICIENCY

With the price of oil rising and the price of a gallon of gasoline in the U.S. standing at about four dollars this summer, energy efficiency has become a hot-button issue not only for consumers but for governments and corporations. The price of oil has an especially powerful effect on airlines, trucking, shipping, and delivery, and on companies that rely on lengthy supply chains.

But energy efficiency is not just about saving money. It is also about addressing the challenge of global warming. When energy comes from fossil fuels, more energy means more greenhouse gas emissions. As we noted in last year’s Annual Report, whose theme was climate change, “Changing light bulbs, riding bikes, using mass transit or fuel-efficient cars, eating locally grown foods, turning down the heat in the winter or the air conditioning in the summer — all of these, when done by enough of us, can have an impact.”

Domini’s Response

Among the factors we consider when evaluating a company’s impact on climate change, energy efficiency is of particular importance, along with renewable energy and products that empower consumers to reduce their carbon footprint.

Our researchers increasingly see energy efficiency initiatives being undertaken by the companies they evaluate in different industries. Shipping companies are adding hybrid vehicles to their fleet, and investing in software that plots the most efficient routes. Retailers invest in energy-efficient lighting for their stores and sell low-flow shower heads, compact fluorescent lights, and other products to help save energy. Some electric utilities are also promoting energy conservation. Steelmakers are introducing new energy-saving technologies such as electric arc furnaces. Energy-efficient servers help the computer-intensive financial industry reduce energy costs.

Below we examine four areas in which companies are making a difference through energy efficiency. Each of the companies mentioned below has been approved by Domini for inclusion in our mutual fund portfolios, though not all companies were held during the year ended July 31, 2008. For details on companies making strides in energy-efficient transportation, discussed in last year’s Annual Report, please see the Climate Change section of our website.

Energy-Efficient Computing

The U.S. government’s Energy Star program, introduced in 1992 to identify and label the most energy-efficient computers and monitors, has been an important force in green computing. A voluntary program of the U.S. Environmental Protection Agency and the Department of Energy,

The Way You Invest Matters

Energy Star is intended to help consumers save money and protect the environment. Energy Star has been applied to office equipment, major appliances, residential heating and cooling equipment, new homes, and commercial and industrial buildings.

The U.S. computer manufacturer Dell has reportedly been an active partner of Energy Star for more than ten years. The company says that its PowerEdge servers are designed to draw less power and produce less heat than comparable servers through the use of energy-efficient hard drives, advanced fan technology, high-efficiency power supplies, and low-voltage processors. Dell also provides consulting services to improve the energy efficiency of its customers’ data centers.

As part of its Product Stewardship program, IBM reports having developed several energy-saving innovations. Large high-performance servers are cooled with small refrigeration units, which the company says are the most energy-efficient solution. IBM’s BladeCenter servers use technology called CoolBlue, which combines water cooling and a chassis design that improves the flow of cooling air. The System z server uses “virtualization” technology to run multiple operating systems and applications at the same time, making multiple servers unnecessary. One client reportedly reduced energy costs by $300,000 per year in this way. The PowerExecutive hardware/software tool enables customers to monitor power usage in data centers, to cap and monitor power usage by servers, and to minimize the data center’s energy needs.

Solar and Wind Power

A relatively recent development in the growing market for solar energy is the emergence of an increasing number of pure-play solar manufacturers. These companies, devoted entirely to promoting the use of solar power, take a variety of different approaches. Some make silicon solar cells, others produce thin films that can be applied to glass, and still others have developed devices that generate power by concentrating sunlight.

Some of the most prominent of these solar power companies make their homes in Asia and Europe. For example, two large companies with a concentration on solar are Kyocera and Sharp, both in Japan. China is the home of a number of emerging solar energy firms as well, including Suntech Power Holdings. Solarworld and Q-Cells are based in Germany, as is Wacker Chemie, which produces materials used in solar power. All these companies are approved for possible investment by Domini.

Relatively few pure-play wind power companies have appeared, but Vestas Wind Systems (Denmark) is one such company approved for investment by Domini. Reporting a 28% market share and 33,500 wind turbines installed, Vestas is the world’s leading supplier of wind power equipment. In 2008, the company says it received an order for 232 turbines from a division of the China Guangdong Nuclear Group, which has been diversifying away from nuclear power to cleaner sources of electricity.

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6 The Way You Invest Matters: Energy Efficiency

Energy-Efficient Lighting

The average household uses about 12% of its energy for lighting. The distinctive coil of a compact fluorescent light (CFL) has become a symbol of household energy efficiency, yet light-emitting diodes (LEDs) like those found in computers and calculators may soon also have an important role to play. Often used for holiday lights, LEDs use only about 0.04 watts of electricity, compared with 0.45 watts for a mini incandescent bulb and 7 watts for a C-7 incandescent.

The Dutch electronics company Philips makes CFLs, but over the last five years it has also reportedly spent about half of its annual R&D budget of €250 million on LEDs and other energy-efficient lighting products. A new product called organic LEDs or OLEDs consists of glowing films that could be applied to various surfaces. As the company writes, “Imagine ceilings literally glowing with color, glass walls that light up at the flick of a switch, windows that provide subtle illumination after dark.”

Philips reportedly meets with city governments to convince them that the long-term savings of energy-efficient lighting will offset the relatively high initial cost. Philips says that more than 50 cities have begun installing the company’s CosmoPolis street lighting system, reducing energy consumption by 50%.

Energy-Efficient Buildings

According to Environmental Defense, energy use in buildings accounts for 40% of greenhouse gas emissions in the U.S. A recent survey of one million households conducted by the Green Building Council and McGraw-Hill Construction found strong demand for green homes even among lower-income homebuyers. The survey estimated that in the last three years about 30,000 new market-rate homes had been certified by the LEED program (Leadership in Energy and Environmental Design) or another third party.

Energy-Saving Tips

Sometimes a single small change can make a significant difference. According to Environmental Defense, changing just one 75-watt bulb to a compact fluorescent light (CFL) eliminates about 1,300 pounds of global warming pollution. The spiral-shaped bulbs also last up to 15 times as long as the old-fashioned kind, and cut your electric bill.

More energy-savings tips can be found at the websites of Environmental Defense (www.edf.org), the Union of Concerned Scientists (www.ucsusa.org), the U.S. Environmental Protection Agency (www.epa.gov), and the U.S. Department of Energy (www.doe.gov).

The Way You Invest Matters

The Way You Invest Matters: Energy Efficiency 7

ProLogis is a U.S. firm that operates a global network of real estate properties, primarily industrial distribution properties. As of 2007, ProLogis said it planned to develop minimum design standards for new global developments that would meet or exceed the requirements for environmental certification from major global rating systems, including LEED. The company’s headquarters in Denver, completed in 2006, features energy-efficient glass, high-reflectance roofing material, recharging stations for electric vehicles, and an illumination system that harvests sunlight during the day and reduces power consumption.

In Japan, Sekisui House has developed what is called a “CO₂-off” home, which features hydrogen fuel cells, solar panels, LED lights, and an advanced air conditioning system to minimize energy use. And in Australia, the Investa Property Group says it launched a program in 2003 to promote energy-saving practices and systems into new and existing buildings. Investa plans to complete construction of a 21-story “green” building in North Sydney in 2010. Called “Ark,” the building will use external shading and high-tech air conditioning to optimize temperature.

Energy-Efficient Manufacturing

The U.S. furniture company Herman Miller is an example of how a company can seek energy efficiency not just in the products it makes or distributes but in its own operations. An Energy Star partner and a founder of the Green Building Council, Herman Miller received a LEED gold rating in 2003 for two of its facilities, and received the Council’s Green Building Leaders Recognition Award in 2004. A cogeneration plant burns the company’s nonplastic and nontoxic waste, providing heat and air conditioning for its central plant as well as 10% of its electricity. Herman Miller burns the waste of nearby companies, including a competitor, when its own waste cannot meet its energy needs. As of 2006, energy conservation projects in Herman Miller’s North American

Plastic Bags

As the number of plastic shopping bags used each month around the world reaches hard-to-believe heights (reportedly almost 42 billion in a recent month), a movement is now emerging to reduce or eliminate their use.

In 2002, for example, Ireland passed a tax that requires customers to pay 33 cents for each plastic bag they take from the store. In a few weeks, the use of plastic bags dropped 94%, and carrying them is now seen as socially unacceptable. Closer to home, the city of San Francisco banned the bags in 2007 and Seattle plans soon to impose a 20-cent fee for each bag.

Companies too are getting into the act. The British department store Marks & Spencer began charging for plastic bags in 2007. Marks & Spencer donates the profits to charity. The Whole Foods supermarket chain stopped offering plastic bags this year. The British supermarket Tesco, meanwhile, reduced the number of plastic bags given out by 40% over a two-year period by using its in-store points card to reward customers who bring their own bags.

The Way You Invest Matters

8 The Way You Invest Matters: Energy Efficiency

production, office, and warehouse facilities had reportedly reduced energy costs by more than $1 million annually.

SSAB Swedish Steel says that 60% of the steel it produces comes from recycled scrap metal, which can be smelted in electric arc furnaces or mini-mills that are more energy-efficient than traditional blast furnaces. The company’s blast furnaces require coke as fuel, and the company says it uses the gas from coke furnaces as a source of energy for other operations. Other gases generated in steel production are used to generate electric power and to heat homes in neighboring areas.

SSAB devotes much of its output to niche products such as high-strength steel. The use of high-strength steel can reduce the weight of cars by 25%, reducing fuel consumption as well. High-strength steel also reduces weight and energy use in railway cars, containers, and truck beds.

Unlike other mutual funds, the Domini Social Equity Portfolio, Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio seek to achieve their investment objectives by investing all of their investable assets, respectively, in separate portfolios with identical investment objectives called the Domini Social Equity Trust (DSET), Domini European Social Equity Trust (DESET), Domini PacAsia Social Equity Trust (DASET), and Domini European PacAsia Social Equity Trust (DUSET). References to each Domini Fund include the applicable Domini Trust, unless the context otherwise requires.

The holdings discussed above can be found in the portfolios of the Domini Funds, included herein. The composition of the Funds’ portfolios is subject to change.

As of July 31, 2008, the companies discussed above were held in the portfolios of the following Domini Funds: Dell and IBM were held by the Domini Social Equity Portfolio. Vestas Wind Systems was held by the Domini European Social Equity Portfolio. Kyocera was held by the Domini PacAsia Social Equity Portfolio. Kyocera and Vestas Wind Systems were held by the Domini European PacAsia Social Equity Portfolio. The following companies discussed above have been approved for investment, but were not held by any of the Domini Funds on July 31, 2008: Herman Miller, Investa Property Group, Marks & Spencer, Philips, ProLogis, Q-Cells, Sekisui House, Sharp, Solarworld, SSAB Swedish Steel, Suntech Power Holdings, Tesco, Wacker Chemie, and Whole Foods.

Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity.

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.

The Way You Invest Matters

The Way You Invest Matters: Energy Efficiency 9

THE WAY YOU INVEST MATTERS: ACTIVISM

Child Labor in Uzbekistan

For many years, we have worked with companies in our portfolios to improve conditions in the factories that supply their products. In May, we released the final report of Project Kaleidoscope, describing a new approach to improving working conditions that was field-tested in Southern China in collaboration with Walt Disney, McDonald’s, and a group of concerned investors.

Now, we are working to expand our work beyond the factory floor, encouraging companies to address their entire supply chain, from commodity to finished product.

Last year, the International Labor Rights Forum (ILRF) brought an alarming violation of children’s rights to our attention. Every year, the government of Uzbekistan reportedly mobilizes hundreds of thousands of children — many from ten to fifteen years old — to harvest cotton by hand. Uzbekistan is the world’s third largest exporter of cotton, and is ruled by a corrupt and repressive regime.

Can global companies trace the source of their cotton and influence conditions so far down their supply chain? This is a critical question, as forced and child labor is endemic to global cotton production. C&A, Levi Strauss, Limited Brands, Marks & Spencer, Target, Tesco and other companies have already reportedly taken steps to exclude Uzbek cotton from their merchandise. In August, trade associations representing close to 100% of all purchases of cotton products in the United States planned to meet with the Uzbek ambassador to express their deep concerns.

Domini is now working with the ILRF, the As You Sow Foundation, and a coalition of social investment firms and nonprofits to raise awareness and find solutions to Uzbekistan’s bitter harvest. Our immediate goal is to encourage the Uzbek government to invite the International Labor Organization (ILO) into the country for a monitoring and assessment mission. We have met with State Department officials and sent letters on behalf of investors with more than $250 billion in assets to Uzbek President Karimov, the Secretary General of the ILO, and Secretary of State Condoleezza Rice.

Our coalition is also working with a number of major companies to identify ways they can help to end this brutal practice. We have written to more than 100 companies around the world that produce or retail cotton-based products. As a result, companies are asking questions down their supply chain that were not asked before, and they are finding that it is indeed possible to trace the source of their cotton. Visit www.domini.com to read our press release and for links to additional resources.

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FUND PERFORMANCE AND HOLDINGS

ECONOMIC AND MARKET BACKGROUND

U.S. Markets The U.S. stock market experienced a substantial decline during the 12-month period ending July 31, 2008. The S&P 500 Index declined −11.09%. The bond market, meanwhile (measured by the Lehman Brothers Intermediate Aggregate Index, or LBIA) returned 6.33%.

A bear market in stocks was officially pronounced when prices dropped more than 20% between October 2007 and July 2008. This decline was largely related to the three market-related issues discussed in our last report:


•	Employment continued to weaken throughout the year, with unemployment reaching a four-year high of 5.7% in July.

•	The U.S. housing market continued to deteriorate throughout the period. As of June 2008, sales of new homes dropped 33% from the previous year and foreclosures rose 53%. This decline forced many financial services companies to write down vast loan portfolios. The financial industry represented 20% of the S&P 500 on July 31, 2007, and only 15% a year later, reflecting the drop in stock valuations of financial firms caused by this crisis.

•	Oil prices increased relentlessly over the period and stood at $125 a barrel on July 31, 2008, a 59% increase for the year. This dramatic increase has hurt the U.S. economy.

Bond markets fared better during the 12-month period, with increasing demand for higher-quality issues. Yield curves steepened during the year, returning the bond market to a more usual status of rewarding investors for lending over longer periods. The federal government’s strong commitment to stabilizing two large issuers of bonds, Fannie Mae and Freddie Mac, gave investors some comfort.

European Markets European stock markets declined sharply during the 12 months ending July 31, 2008, with the MSCI Europe Index declining by −18.32% in local currency terms. However, the strength of European currencies compared to the dollar offered a counterbalance for much of the year, resulting in a dollar-denominated decline of −11.50% for the period.


•	European inflation picked up as wages rose. It stood at 4%, well over the European Central Bank’s target rate.

•	Mirroring U.S. housing woes, the significant housing downturn in the region curbed inflation and was accompanied by an outsized drop in the valuations of several large firms in the banking sector.


•	Several European countries were predicted to enter, or were in, recession.

As the 12-month period ended, European leaders at the World Trade Organization talks demanded that emerging nations dramatically reduce their industrial tariffs if Europe was to reduce farm output. As world food supplies become a source of increasing tension between developing nations and developed ones, we can expect to hear more about the impact of rising food prices on local and regional economies.

Asian Markets As in Europe, Asian stock markets declined sharply during the 12 months ending July 31, 2008. During that period, the MSCI All Country Asia Pacific Index fell by −17.85% in local currency terms. In dollar terms the index was down by −13.05%.

The decline in Asian economies was linked to several factors. Oil and food prices hit new highs and the global credit crisis also made itself felt. The growth rate of China’s economy slowed somewhat, although growth remained strong at an annual rate of about 10%.


•	Although China’s trade surplus is still extremely robust, the pace of exports was slower than most analysts had anticipated, with Chinese exporters citing the combination of rising domestic costs and softening global demand.

•	Singapore’s economy shrank during the period. Although not technically in recession, the country was suffering high inflation concurrent with slowing growth.

•	Japan was experiencing an economic downturn, with businesses affected by the rise of world commodity prices, low growth in domestic consumer spending, and economic troubles in the U.S. and Europe that could hurt Japanese exports.

As the 12-month period ended, exporters were growing concerned that the appreciating currencies of Asia versus the dollar and the slowing of demand from the United States would hurt Asian businesses. As a result, China had begun to ease controls on smaller businesses. In India, as foreign investments into the country slowed, government reforms were being put in place. These reforms were expected to increase confidence by foreign entities, producing long-term benefits for the Indian economy.

Economic and Market Background 13

Domini Social Equity Portfolio

PERFORMANCE COMMENTARY

For the year ended July 31, 2008, the Domini Social Equity Portfolio (the “Fund”) declined −15.86%, excluding sales charges, compared to the S&P 500’s drop of −11.09%.

The Fund’s stock selection in the financial and consumer discretionary sectors helped its performance, more than overcoming the negative effect of its overweighting to those sectors. The Fund was hurt by its overweighting to telecommunications services and its underweighting to energy, but in both cases the effect was mostly eliminated by strong stock selection within the sectors. The Fund was hurt by stock selection in the consumer staples and industrial sectors.

Among the companies held in the Fund’s portfolio during the year, the Fund’s relative performance was helped the most by the following:


•	The energy company Energen, which benefited from increased production and higher energy prices

•	McDonald’s, which benefited from growth in international demand

•	The healthcare company Johnson & Johnson, which enjoyed steady growth in its Medical Devices and Diagnostics division, and profits from its allergy medicine Zyrtec

The Fund’s relative performance was hurt the most by the following companies in the portfolio:


•	YRC Worldwide, which faced higher fuel and equipment costs, and posted a $715 million loss in the fourth quarter of 2007

•	The check printer Deluxe, which suffered from weakness in its Small Business Services division and higher delivery costs from higher fuel prices

•	Electronic Data Systems, which experienced slow growth and competition from overseas vendors

The Domini Social Equity Portfolio invests in the Domini Social Equity Trust. The table and bar chart below provide information as of July 31, 2008, about the ten largest holdings of the Domini Social Equity Trust and its portfolio holdings by industry sector:

TEN LARGEST HOLDINGS


	% NET
COMPANY	ASSETS

Johnson & Johnson		4.20%
Hewlett-Packard		3.06%
Microsoft		2.99%
IBM		2.98%
Verizon Communications		2.93%
Goldman Sachs		2.68%
McDonald’s		2.48%
AT&T		2.32%
Travelers		2.14%
Apache		2.02%

PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)

* Other reflects Repurchase Agreements and Other Assets, less liabilities.

The holdings mentioned above are described in the Domini Social Equity Trust’s Portfolio of Investments at July 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.

Domini Social Equity Portfolio — Performance Commentary 15

AVERAGE ANNUAL TOTAL RETURNS


		Domini Social Equity
		Portfolio (DSEPX)			Domini Social Equity
		(with 4.75% Maximum			Portfolio (DSEPX)
		Sales Charge)			(without Sales Charge)			S&P 500
As of 6-30-08	1 Year		−23.15	%		−19.31	%		−13.12	%

	5 Year		3.26	%		4.27	%		7.58	%

	10 Year		0.53	%		1.02	%		2.88	%

	Since Inception⁽¹⁾		7.76	%		8.06	%		9.36	%⁽¹⁾

As of 7-31-08	1 Year		−19.85	%		−15.86	%		−11.09	%

	5 Year		2.60	%		3.61	%		7.02	%

	10 Year		0.54	%		1.03	%		2.90	%

	Since Inception⁽¹⁾		7.68	%		7.99	%		9.26	%⁽¹⁾

COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI SOCIAL EQUITY PORTFOLIO (WITH 4.75% MAXIMUM SALES CHARGE) AND S&P 500

Past performance is no guarantee of future results. The Fund’s returns quoted above represent past performance after all expenses. 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. 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. A 2.00% redemption fee is charged on sales or exchanges of shares made less than 30 days after the settlement of purchase or acquisition through exchange, with certain exceptions. Performance data quoted above does not reflect the deduction of this fee, which would reduce the performance quoted. See the Fund’s prospectus for further information.

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 Social Equity Portfolio is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. 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.

For the period reported in its current prospectus, the Fund’s gross annual operating expenses were estimated to total 9.51% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.13% of net assets.


(1)	The Domini Social Equity Portfolio, which commenced operations on May 1, 2005, invests all of its assets in the Domini Social Equity Trust (DSET), which has the same investment objectives as the Fund. The DSET commenced operations on June 3, 1991. Performance prior to the Fund’s commencement of operations is the performance of the DSET adjusted for expenses of the Fund.

This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 09/08

16 Domini Social Equity Portfolio — Performance Commentary

Domini Social Equity Trust

PORTFOLIO OF INVESTMENTS
JULY 31, 2008


SECURITY	SHARES		VALUE

Common Stocks – 99.2%
*Consumer Discretionary* – *11.4%*
American Eagle Outfitters		700		$9,800
Autoliv Inc		133,700		5,219,648
AutoZone Inc (a)		54,047		7,041,784
Best Buy Co Inc		143,558		5,702,124
Big Lots Inc (a)		259,500		7,904,370
Black & Decker Corporation		600		36,012
CBS Corp, Class B		382,900		6,264,244
Comcast Corp, Class A		5,550		114,441
DR Horton Inc		271,075		3,014,354
Expedia Inc (a)		183,100		3,583,267
Gap Inc/The		344,187		5,548,294
Home Depot Inc		3,244		77,305
J.C. Penny Co Inc (Hldg Co)		758		23,369
Johnson Controls Inc		1,954		58,933
Lear Corp (a)		171,100		2,465,551
Limited Brands		1,668		27,505
Liz Claiborne Inc		600		7,842
Lowe’s Cos Inc		2,986		60,676
McDonald’s Corp		399,074		23,860,634
McGraw-Hill Companies Inc		1,212		49,292
Meredith Corp		823		21,036
Nike Inc, Class B		147,388		8,648,728
Nordstrom Inc		895		25,722
Pulte Homes Inc		2,094		25,568
Scholastic Corp		722		18,620
Staples Inc		2,258		50,805
Starbucks Corporation (a)		2,578		37,871
Target Corp		1,636		73,996
The Walt Disney Co.		275,837		8,371,653
Time Warner Inc		7,876		112,784
TJX Companies Inc		217,700		7,338,667
TRW Automotive Holdings Corp (a)		137,300		2,546,915
VF Corp		800		57,264
Viacom Inc (a)		2,100		58,653
Washington Post, Class B		95		58,734
Whirlpool Corporation		143,563		10,867,719

				109,384,180
*Consumer Staples* – *10.7%*
Avon Products Inc		2,406		102,014
Church & Dwight Co Inc		124,180		6,813,757
Coca Cola Co/The		289,684		14,918,726
Coca-Cola Enterprises		329,000		5,569,970
Colgate-Palmolive Co		115,296		8,563,034
Costco Wholesale Corp		1,600		100,288
Estee Lauder Companies, Class A		99,800		4,401,180
Hershey Co/The		1,936		71,187
Kimberly-Clark Corp		2,356		136,247
Kraft Foods Inc, Class A		5,000		159,100
Kroger Co		561,177		15,870,085
Pepsi Bottling Group Inc		235,200		6,550,320
PepsiAmericas Inc		538,900		12,755,763
PepsiCo Inc		3,653		243,144
Procter & Gamble Co		163,361		10,696,878
Supervalu Inc		344,500		8,826,090
Unilever PLC — Sponsored ADR		243,300		6,663,987
Walgreen Co		3,064		105,218

				102,546,988
*Energy* – *9.5%*
Anadarko Petroleum Corporation		67,018		3,881,012
Apache Corporation		173,062		19,412,365
Devon Energy Corporation		80,770		7,664,265
ENSCO International, Inc		131,300		9,078,082
EOG Resources Inc		3,908		392,871
Nexen Inc		115,300		3,648,092
Noble Corp		94,200		4,886,154
Noble Energy Inc		90,200		6,663,074
StatoilHydro ASA		268,000		8,677,840
Talisman Energy Inc		381,200		6,805,882
Tidewater Inc		87,600		5,250,744
Unit Corp (a)		223,750		15,114,313

				91,474,694
*Financials* – *18.5%*
American Express Co		3,576		132,741
Bank of America Corporation		540,100		17,769,290
Bank of Ireland ADR		200,490		6,870,792
Citigroup Inc		10,300		192,507
Fannie Mae		2,476		28,474
Freddie Mac		2,322		18,971
Genworth Financial Inc, Class A		585,400		9,348,838
Goldman Sachs Group Inc		140,100		25,784,004
Hudson City Bancorp Inc		582,900		10,643,754
Huntington Bancshares Inc		759,100		5,328,882
ING Groep N.V. — Sponsored ADR		191,100		6,243,237
IntercontinentalExchange Inc (a)		40,300		4,021,940

Domini Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


SECURITY	SHARES		VALUE

*Financials* (Continued)
JP Morgan Chase & Co.		409,230		$16,627,015
Lehman Brothers Holdings Inc		1,400		24,276
Regions Financial Corp		911,200		8,638,176
Schwab (Charles) Corp		387,200		8,863,008
State Street Corp		127,100		9,105,444
TD Ameritrade Holding Corp (a)		300,500		5,982,955
Travelers Cos Inc/The		467,052		20,606,334
US Bancorp		6,463		197,832
Wachovia Corp		5,583		96,418
Washington Mutual Inc		4,631		24,683
Wells Fargo & Co		548,106		16,591,169
Westpac Banking Corp — SP ADR		42,160		4,276,710

				177,417,450
*Health Care* – *12.5%*
Amgen Inc (a)		150,466		9,423,685
Becton Dickinson & Company		114,402		9,713,874
Forest Laboratories Inc (a)		199,700		7,091,347
Genentech Inc (a)		1,600		152,400
Gilead Sciences Inc (a)		155,210		8,378,236
Invitrogen Corp (a)		138,600		6,146,910
Johnson & Johnson		589,424		40,357,861
King Pharmaceuticals Inc (a)		355,100		4,087,201
McKesson Corp		195,100		10,923,649
Medtronic Inc		89,755		4,741,757
Thermo Fisher Scientific Inc (a)		140,100		8,478,852
Watson Pharmaceuticals Inc (a)		384,300		11,110,113

				120,605,885
*Industrials* – *6.5%*
3M Co.		2,864		201,597
Cooper Industries Ltd, Class A		2,286		96,401
CSX Corporation		271,200		18,327,695
Cummins Inc		137,064		9,092,826
Deere & Co		112,700		7,907,032
Deluxe Corporation		356,500		5,097,950
Emerson Electric Company		3,308		161,100
Graco Inc		173,100		6,271,413
Illinois Tool Works		3,600		168,660
JetBlue Airways (a)		5,793		30,529
Manpower Inc		119,000		5,712,000
RR Donnelley & Sons Co		128,918		3,442,111
Ryder System Inc		84,400		5,567,024
Southwest Airlines		6,578		102,551
United Parcel Service, Class B		3,373		212,769

				62,391,658
*Information Technology* – *19.9%*
Apple Inc (a)		88,682		14,096,004
Arrow Electronics, Inc (a)		146,900		4,733,118
Cisco Systems Inc (a)		10,016		220,252
Dell Inc (a)		5,484		134,742
eBay Inc (a)		218,876		5,509,109
EMC Corporation/Mass (a)		4,400		66,044
Google Inc, Class A (a)		14,280		6,765,150
Hewlett-Packard Co		656,947		29,431,226
Intel Corp		841,609		18,675,304
Intl Business Machines Corp		223,900		28,654,722
Jabil Circuit Inc		3,100		50,406
Juniper Networks Inc (a)		1,500		39,045
Lexmark International Inc (a)		186,400		6,538,912
LSI Corp. (a)		1,583,800		10,991,572
MEMC Electronic Materials (a)		97,300		4,496,233
Microsoft Corp		1,119,852		28,802,593
Motorola Inc		7,500		64,800
Oracle Corp (a)		750,300		16,153,959
QUALCOMM Inc		4,234		234,310
Symantec Corp (a)		425,846		8,972,575
Texas Instruments Inc		3,928		95,765
Western Digital Corp (a)		214,980		6,189,274
Xerox Corporation		5,598		76,357

				190,991,472
*Materials* – *1.6%*
International Paper Co		4,600		127,512
Lubrizol Corp		170,300		8,480,940
Meadwestvaco Corp		3,466		92,923
Nucor Corp		114,116		6,529,718
Rohm and Haas Co		2,210		165,750

				15,396,843
*Telecommunication Services* – *6.1%*
AT&T Inc		724,204		22,312,725
France Telecom SA-Spons ADR		271,430		8,547,331
Sprint Nextel Corp		7,259		59,088
Verizon Communications Inc		827,038		28,152,374

				59,071,518

Domini Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


SECURITY	SHARES		VALUE

*Utilities* – *2.5%*
Energen Corp		228,277		$13,742,275
Integrys Energy Group Inc		88,800		4,534,128
Pepco Holdings Inc		236,400		5,895,816

				24,172,219
Total Common Stocks (Cost $931,961,991)				953,452,907

Repurchase Agreement – 0.7%
State Street Bank & Trust, dated 07/31/08, 0.90% due 08/01/08, maturity amount $6,980,025 (collateralized by U.S. Government Agency Mortgage Securities, Federal Home Loan Banks, 2.606%, 01/23/09, market value $7,121,016)		6,979,850		6,979,850

Total Repurchase Agreement (Cost $6,979,850)				6,979,850

Total Investments — 99.9% (Cost $938,941,841) (b)				960,432,757
Other Assets, Less Liabilities — 0.1%				1,352,300

Net Assets — 100.0%				$961,785,057


(a)		Non-income producing security.

(b)		The aggregate cost for federal income tax purposes is $975,757,568. The aggregate gross unrealized appreciation is $77,752,333 and the aggregate gross unrealized depreciation is $93,077,144, resulting in net unrealized depreciation of $15,324,811.

ADR — American Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS

Domini European Social Equity Portfolio

PERFORMANCE COMMENTARY

For the year ended July 31, 2008, the Domini European Social Equity Portfolio (the “Fund”) declined −18.82%, excluding sales charges, lagging the MSCI Europe index, which returned −11.50%.

The Fund’s relative performance was helped by its stock selection within the energy and telecommunications services sectors, and by its overweighting in the healthcare sector. The Fund was hurt by stock selection in the materials, consumer discretionary, and financial sectors.

Among the companies held in the Fund’s portfolio during the year, the Fund’s relative performance was helped the most by the following:


•	The Norwegian energy company StatoilHydro, which attributed its strong earnings in the first quarter of 2008 to increased oil and gas prices and a favorable currency exchange

•	The Dutch materials company DSM, whose earnings increased largely due to vitamin sales

•	France Telecom, whose domestic wireline and wireless divisions surprised analysts by their strong performance in the third quarter of 2007

The Fund’s relative performance was hurt the most by the following companies in the portfolio:


•	The Finnish technology company Nokia, which was involved in a licensing dispute with Qualcomm over CDMA communication technology

•	Royal Bank of Scotland, which was affected by the impact of problems in the U.S. housing market on mortgage-related securities that it held

•	The Italian automobile company Fiat, which like other European automakers was hurt by the increased price of oil and difficult economic conditions in Europe

The Domini European Social Equity Portfolio invests in the Domini European Social Equity Trust. The table and bar chart below provide information as of July 31, 2008, about the ten largest holdings of the Domini European Social Equity Trust and its portfolio holdings by industry sector and by country:

TEN LARGEST HOLDINGS


	% NET
COMPANY	ASSETS
StatoilHydro		4.58%
BG Group		4.32%
Vivendi		3.82%
France Telecom		3.43%
Vodafone Group		3.22%
Novartis		3.15%
Sanofi-Aventis		3.12%
Koninklijke DSM		2.80%
Banco Santander		2.77%
HSBC Holdings		2.43%

PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)

* Other reflects Repurchase Agreements and Other Assets, less liabilities.

PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)


*	Other reflects Belgium, United States, Greece, Canada, Repurchase Agreements, and Other Assets, less liabilities.

The holdings mentioned above are described in the Domini European Social Equity Trust’s Portfolio of Investments at July 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.

Domini European Social Equity Portfolio — Performance Commentary 21

AVERAGE ANNUAL TOTAL RETURNS


		Domini European Social			Domini European Social
		Equity Portfolio			Equity Portfolio
		(DEEPX) (with 4.75%			(DEEPX) (without Sales
		Maximum Sales Charge)			Charge)			MSCI Europe
As of 6-30-08	1 Year		−23.64	%		−19.83	%		−10.81	%

	Since Inception⁽¹⁾		8.62	%		10.56	%		12.64	%

As of 7-31-08	1 Year		−22.68	%		−18.82	%		−11.50	%

	Since Inception⁽¹⁾		7.39	%		9.26	%		11.09	%

COMPARISON OF $10,000 INVESTMENT IN THE

DOMINI EUROPEAN SOCIAL EQUITY PORTFOLIO (WITH 4.75% MAXIMUM SALES CHARGE) AND MSCI EUROPE

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 European Social Equity Portfolio is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. 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.

For the period reported in its current prospectus, the Fund’s gross annual operating expenses were estimated to total 3.37% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.57% of net assets.

The Morgan Stanley Capital International Europe Index (MSCI Europe) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI Europe.


(1)		Since October 3, 2005.

This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 09/08

22 Domini European Social Equity Portfolio — Performance Commentary

Domini European Social Equity Trust

PORTFOLIO OF INVESTMENTS
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Common Stock – 98.5%
*Austria* – *2.2%*
Immoeast AG (a)	Real Estate		56,071	$	401,436
Immofinanz AG	Real Estate		107,410		972,709
OMV AG	Energy		10,952		754,353

					2,128,498
*Belgium* – *1.0%*
Bekaert NV	Capital Goods		1,692		257,019
Delhaize Group	Food & Staples Retailing		9,050		496,920
Euronav SA	Energy		4,069		181,990

					935,929
*Canada* – *0.2%*
Nexen Inc	Energy		7,600		238,697

					238,697
*Denmark* – *3.3%*
D/S Norden	Transportation		4,175		404,084
H. Lundbeck A/S	Pharma, Biotech & Life Sciences		22,900		580,825
Novo Nordisk A/S-B	Pharma, Biotech & Life Sciences		16,450		1,043,274
Vestas Wind Systems A/S (a)	Capital Goods		8,775		1,144,683

					3,172,866
*Finland* – *1.3%*
Nokian Renkaat Oyj	Automobiles & Components		5,412		233,090
Outokumpu Oyj	Materials		30,111		701,300
TietoEnator Oyj	Software & Services		17,255		351,037

					1,285,427
*France* – *19.4%*
ArcelorMittal	Materials		11,268		997,051
BNP Paribas	Banks		23,573		2,324,476
Casino Guichard Perrachon	Food & Staples Retailing		2,748		274,239
France Telecom SA	Telecommunication Services		105,959		3,351,188
Gdf Suez	Utilities		11,315		708,312
Lafarge SA	Materials		6,394		870,093
Natixis	Banks		46,834		378,781
Peugeot SA	Automobiles & Components		15,181		741,421
Renault SA	Automobiles & Components		3,606		299,417
Sanofi-Aventis	Pharma, Biotech & Life Sciences		43,477		3,052,595
Schneider Electric SA	Capital Goods		4,100		454,105
SCOR SE	Insurance		8,242		195,471
Ste Des Ciments Francais-A	Materials		3,576		496,754
Valeo	Automobiles & Components		8,245		266,487
Vallourec	Capital Goods		2,855		850,319
Vivendi SA	Media		89,366		3,737,400

					18,998,109
*Germany* – *8.9%*
Adidas AG	Consumer Durables & Apparel		2,437		149,229
Allianz SE-Reg	Insurance		7,201		1,221,366
Deutsche Lufthansa – Reg	Transportation		76,956		1,765,993
Deutsche Post AG-Reg	Transportation		11,734		275,425
Deutsche Telekom AG -Reg	Telecommunication Services		54,261		940,800
Epcos AG	Technology Hardware & Equipment		26,372		728,245
Henkel KGaA-Vorzug	Household & Personal Products		26,194		1,045,263

Domini European Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Germany (Continued)
Muenchener Rueckver AG -Reg	Insurance		11,527	$	1,913,912
Salzgitter AG	Materials		3,768		614,900

					8,655,133
*Greece* – *0.4%*
Public Power Corp	Utilities		13,408		414,498

					414,498
*Ireland* – *2.0%*
Anglo Irish Bank PLC	Banks		80,825		642,065
CRH PLC	Materials		8,257		218,648
Irish Life & Permanent PLC	Insurance		23,550		188,886
Kerry Group PLC-A	Food & Beverage		32,336		896,068

					1,945,667
*Italy* – *1.9%*
Banca Popolare Emilia Romagna	Banks		13,928		234,239
Fiat SpA	Automobiles & Components		64,878		1,110,394
Pirelli & Co.	Automobiles & Components		678,696		421,269
Terna SpA	Utilities		32,627		135,441

					1,901,343
*Japan* – *1.1%*
Nippon Mining Holdings Inc	Energy		54,500		327,742
Toyo Seikan Kaisha Limited	Materials		40,900		737,580

					1,065,322
*Netherlands* – *7.5%*
Akzo Nobel	Materials		5,122		292,977
Corporate Express	Commercial Services & Supplies		10,034		142,719
ING Groep NV-CVA	Diversified Financials		64,976		2,119,368
Koninklijke Ahold NV	Food & Staples Retailing		72,012		819,559
Koninklijke DSM NV	Materials		45,131		2,739,116
OCE NV	Technology Hardware & Equipment		21,953		208,616
Randstad Holding NV	Commercial Services & Supplies		6,259		176,970
SNS Reaal	Diversified Financials		49,704		832,060

					7,331,385
*Norway* – *4.6%*
StatoilHydro ASA	Energy		138,374		4,474,135

					4,474,135
*Spain* – *5.2%*
Banco Santander Sa	Banks		139,141		2,709,342
Telefonica SA	Telecommunication Services		90,601		2,351,483

					5,060,825
*Sweden* – *2.6%*
Atlas Copco – B Shs	Capital Goods		13,400		188,267
Ericsson LM-B Shs	Technology Hardware & Equipment		50,400		529,106
Industrivarden AB-C Shs	Diversified Financials		14,900		190,537
Investor AB-B Shs	Diversified Financials		64,200		1,397,376
Nordea AB	Banks		19,623		278,225

					2,583,511
*Switzerland* – *9.0%*
Clariant AG Regular	Materials		18,456		182,485
Holcim Ltd – Reg	Materials		11,206		795,292
Kuoni Reisen Hldg-Reg	Consumer Services		378		163,442

Domini European Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Switzerland (Continued)
Lonza AG-Reg	Pharma, Biotech & Life Sciences		4,706	$	681,720
Novartis AG -Reg Shs	Pharma, Biotech & Life Sciences		51,901		3,079,374
Roche Holding AG	Pharma, Biotech & Life Sciences		11,915		2,200,177
Swiss Life Holdings AG (a)	Insurance		1,375		353,319
Swiss Re-Reg	Insurance		22,078		1,372,163

					8,827,972
*United Kingdom* – *27.0%*
3i Group PLC	Diversified Financials		51,536		915,528
Aggreko PLC	Commercial Services & Supplies		15,192		212,548
Associated British Foods PLC	Food & Beverage		26,465		373,974
Aviva PLC	Insurance		125,640		1,246,007
Barclays PLC	Banks		115,036		780,645
BG Group PLC	Energy		186,869		4,220,605
Centrica Ord Gbp	Utilities		118,381		734,569
Compass Group PLC	Consumer Services		117,044		843,315
Cookson Group New	Capital Goods		51,090		625,628
Drax Group PLC	Utilities		101,359		1,449,664
GlaxoSmithKline PLC	Pharma, Biotech & Life Sciences		68,834		1,603,514
HBOS PLC	Banks		47,054		268,347
HMV Group PLC	Retailing		62,508		148,534
Home Retail Group	Retailing		113,051		483,169
HSBC Holdings PLC	Banks		144,043		2,380,659
ICAP PLC	Diversified Financials		58,797		579,667
Lloyds TSB Group PLC	Banks		63,152		368,015
Man Group PLC	Diversified Financials		14,754		178,102
Morrison (Wm.) Supermarkets	Food & Staples Retailing		203,461		1,037,235
Old Mutual PLC	Insurance		288,343		549,932
Royal Bank of Scotland Group	Banks		448,417		1,859,329
Segro PLC	Real Estate		60,425		487,019
Stagecoach Group Ordinary	Transportation		98,254		550,818
Standard Chartered PLC	Banks		18,529		563,780
Trinity Mirror PLC	Media		76,872		130,521
Unilever PLC	Food & Beverage		16,024		439,053
Vodafone Group PLC	Telecommunication Services		1,176,812		3,150,480
Yell Group PLC	Media		128,790		177,944

					26,358,601
*United States* – *0.9%*
Apache Corporation	Energy		4,400		493,548
United States Steel Corp	Materials		2,700		432,972

					926,520
Total Common Stock (Cost $105,742,279)					96,304,438

Domini European Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Repurchase Agreement – 0.2%
State Street Bank & Trust, dated 07/31/08, 0.90% due 08/01/08, maturity amount $162,003 (collateralized by U.S. Government Agency Mortgage Securities, Federal Home Loan Banks, 2.606%, 01/23/09, market value $169,786)	Repurchase Agreement		161,998	$	161,998

Total Repurchase Agreement (Cost $161,998)					161,998

Total Investments — 98.7% (Cost $105,904,277) (b)					96,466,436
Other Assets, less liabilities — 1.3%					1,303,104

Net Assets — 100.0%				$	97,769,540


(a)		Non-income producing security.

(b)		The aggregate cost for federal income tax purposes is $107,646,786. The aggregate gross unrealized appreciation is $2,636,201 and the aggregate gross unrealized depreciation is $13,816,551, resulting in net unrealized depreciation of $11,180,350.

As of the date of this report, foreign securities were fair valued by an independent pricing service under the direction of the Board of Trustees or its delegates in accordance with the Trust’s Valuation and Pricing Policies and Procedures.

SEE NOTES TO THE FINANCIAL STATEMENTS

Domini PacAsia Social Equity Portfolio

PERFORMANCE COMMENTARY

For the year ended July 31, 2008, the Domini PacAsia Social Equity Portfolio (the “Fund”) declined −15.64%, excluding sales charges, lagging the MSCI All Country Asia Pacific index, which returned −13.05%.

The Fund’s relative performance was helped by its stock selection in the consumer discretionary and industrials sectors, and by its overweighting to telecommunications services. The Fund was hurt by stock selection among financial and materials companies, and by its underweighting to the consumer staples sector. The Fund was also helped by its overweighting to Hong Kong and was hurt by its underweighting to China.

Among the companies held in the Fund’s portfolio during the quarter, the Fund’s relative performance was helped the most by the following companies:


•	The Japanese telecommunications provider Nippon Telephone & Telegraph, whose mobile communications services were especially profitable

•	The Australian company BlueScope Steel, which enjoyed strong domestic and international demand for steel

•	The Singaporean motor vehicle company Jardine Cycle & Carriage, which experienced increased demand for vehicles and higher prices for palm oil, which the company also produces

The Fund’s relative performance was hurt the most by the following three Japanese companies:


•	The financial company Orix, which was hurt by a sharp downturn in Japan’s real estate industry

•	The bank Chuo Mitsui Trust Holdings, which experienced significant costs in the fourth quarter of 2007 due to nonperforming loans

•	The marine transportation company Kawasaki Kisen, whose container ship business was hurt by the increase in fuel prices and weak freight rates for European routes

The Domini PacAsia Social Equity Portfolio invests in the Domini PacAsia Social Equity Trust. The table and bar chart below provide information as of July 31, 2008, about the ten largest holdings of the Domini PacAsia Social Equity Trust and its portfolio holdings by industry sector and by country:

TEN LARGEST HOLDINGS


	% NET
COMPANY	ASSETS

Honda Motor		3.13%
Nippon Telegraph & Telephone		2.98%
Seven & I Holdings		2.14%
Orix		2.07%
Toppan Printing		1.95%
Astellas Pharma		1.90%
National Australia Bank		1.90%
Nissan Motor		1.81%
Telecom Corp. of NZ		1.72%
BlueScope Steel		1.64%

PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)


*		Other reflects Repurchase Agreements and Other Assets, less liabilities.

PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)


*		Other reflects Indonesia, United States, Philippines, Austria, Canada, Repurchase Agreements and Other Assets, less liabilities.

The holdings mentioned above are described in the Domini PacAsia Social Equity Trust’s Portfolio of Investments at July 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.

28 Domini PacAsia Social Equity Portfolio — Performance Commentary

AVERAGE ANNUAL TOTAL RETURNS

Domini PacAsia

Social

Domini PacAsia

Equity Portfolio

Social Equity

(DPAPX) (with

Portfolio (DPAPX)

4.75% Maximum

(without Sales

MSCI AC Asia

Sales Charge)

Charge)

Pacific

As of 6-30-08

1 Year

−16.00

−11.81

−8.43

Since Inception⁽¹⁾

−7.44

−4.41

1.25

As of 7-31-08

1 Year

−19.64

−15.64

−13.05

Since Inception⁽¹⁾

−9.18

−6.37

-0.73

COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI PACASIA SOCIAL EQUITY PORTFOLIO (WITH 4.75% MAXIMUM SALES CHARGE) AND MSCI AC ASIA PACIFIC

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 PacAsia Social Equity Portfolio is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. 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.

For the period reported in its current prospectus, the Fund’s gross annual operating expenses were estimated to total 12.81% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.57% of net assets.

The Morgan Stanley Capital International All Country Asia Pacific Index (MSCI AC Asia Pacific) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI AC Asia Pacific.

(1) Since December 27, 2006.

This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 09/08

Domini PacAsia Social Equity Portfolio — Performance Commentary 29

Domini PacAsia Social Equity Trust

PORTFOLIO OF INVESTMENTS
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Common Stock – 98.9%
*Australia* – *8.8%*
AGL Energy Ltd	Utilities		15,228	$	190,232
Amcor Ltd	Materials		15,024		74,879
Babcock & Brown Ltd	Diversified Financials		10,899		65,965
BlueScope Steel Ltd	Materials		42,846		464,973
Boral Limited	Materials		30,040		156,665
Commonwealth Property Office	Real Estate		94,250		119,196
CSR Limited	Capital Goods		36,000		71,083
GPT Group	Real Estate		35,741		50,583
National Australia Bank Ltd	Banks		23,562		540,284
Origin Energy Limited	Energy		5,885		87,315
Suncorp-Metway Limited	Insurance		33,583		419,269
Telstra Corp Ltd	Telecommunication Services		64,483		271,904

					2,512,348
*Austria* – *0.2%*
OMV AG	Energy		903		62,197

					62,197
*Canada* – *0.1%*
Nexen Inc	Energy		1,300		40,830

					40,830
*China* – *1.5%*
Agile Property Holdings Ltd	Real Estate		40,000		37,243
Chaoda Modern Agriculture	Food & Beverage		106,000		122,420
Hopson Development Holdings	Real Estate		76,000		80,294
Shimao Property Holdings Ltd	Real Estate		33,500		41,308
TPV Technology Ltd	Technology Hardware & Equipment		284,223		145,139

					426,404
*Hong Kong* – *9.9%*
Chinese Estates Hl	Real Estate		117,239		166,256
Esprit Holdings Ltd	Retailing		5,000		53,198
First Pacific Co	Diversified Financials		102,389		58,526
Great Eagle Holdings Ltd	Real Estate		60,874		174,325
Guoco Group Ltd	Diversified Financials		5,000		52,337
Hang Lung Group Ltd	Real Estate		29,665		131,556
Hang Seng Bank Ltd	Banks		2,500		48,923
Henderson Land Development	Real Estate		22,142		137,045
Hongkong Land Holdings Ltd	Real Estate		42,000		173,460
Hopewell Highway Infrastruct	Transportation		57,500		44,033
Hopewell Holdings	Real Estate		11,000		39,457
Hysan Development Company	Real Estate		76,191		216,598
Jardine Matheson Hldgs Ltd	Capital Goods		5,593		176,739
Jardine Strategic Holdings Ltd	Capital Goods		9,859		169,575
MTR Corporation	Transportation		59,500		193,090
New World Development	Real Estate		26,000		48,467
Sun Hung Kai Properties	Real Estate		13,000		192,785
Swire Pacific Ltd ’A’	Real Estate		39,664		423,615
Wharf Holdings Ltd	Real Estate		24,675		109,050
Wheelock & Co Ltd	Real Estate		75,418		204,095

					2,813,130

Domini PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*India* – *3.4%*
Hero Honda Motors Limited (a)	Automobiles & Components		7,379	$	138,330
Punjab National Bank	Banks		22,117		231,963
Satyam Computer Services Ltd	Software & Services		11,970		106,259
State Bank of India	Banks		7,826		258,494
Sun Pharmaceutical Indus Ltd (a)	Pharma, Biotech & Life Sciences		7,118		234,411

					969,457
*Indonesia* – *0.4%*
Bank Rakyat Indonesia	Banks		73,500		48,723
Perusahaan Gas Negara Pt	Utilities		51,000		67,716

					116,439
*Japan* – *48.6%*
Alps Electric Co Ltd	Technology Hardware & Equipment		4,300		44,135
Amada Co Ltd	Capital Goods		33,220		226,484
Aoyama Trading Co Ltd	Retailing		9,900		174,491
Asahi Kasei Corporation	Materials		66,640		340,524
Astellas Pharma Inc	Pharma, Biotech & Life Sciences		12,484		540,303
Brother Industries Ltd	Technology Hardware & Equipment		8,800		110,700
Central Japan Railway Co	Transportation		10		101,523
Chuo Mitsui Trust Holdings Inc	Banks		72,533		450,619
Credit Saison Company Ltd	Diversified Financials		2,100		43,989
Dai Nippon Printing Co Ltd	Commercial Services & Supplies		28,399		390,081
Daiwa House Industry Co Ltd	Real Estate		23,000		217,248
Fuji Film Holdings Corp	Technology Hardware & Equipment		14,357		450,451
Fujikura Ltd	Capital Goods		11,000		49,514
Hakuhodo Dy Holdings Inc	Media		2,230		121,051
Hokuhoku Financial Group Inc	Banks		33,000		84,169
Honda Motor Co Ltd	Automobiles & Components		27,903		889,108
Kawasaki Kisen Kaisha Ltd	Transportation		51,206		405,615
Kyocera Corporation	Technology Hardware & Equipment		5,027		432,153
Mazda Motor Corp	Automobiles & Components		37,000		213,193
Mitsui O.S.K. Lines Ltd	Transportation		35,000		452,420
Nintendo Company Ltd	Software & Services		678		328,347
Nippon Electric Glass Co Ltd	Technology Hardware & Equipment		13,000		190,961
Nippon Express Co Ltd	Transportation		12,000		54,580
Nippon Mining Holdings Inc	Energy		45,000		270,613
Nippon Sheet Glass Co Ltd	Capital Goods		33,000		134,129
Nippon Shokubai Co Ltd	Materials		8,000		55,116
Nippon Telegraph & Telephone	Telecommunication Services		167		846,890
Nissan Motor Company Ltd	Automobiles & Components		67,000		514,830
Nisshin Steel Co Ltd	Materials		105,000		324,403
Nitto Denko Corporation	Materials		6,600		188,604
Nomura Holdings Inc	Diversified Financials		15,800		227,592
NTT Data Corporation	Software & Services		17		69,924
Orix Corporation	Diversified Financials		3,893		588,307
Ricoh Company Limited	Technology Hardware & Equipment		19,503		316,124
Rohm Company Limited	Semiconductors & Semiconductor Equipment		2,900		165,287
Seiko Epson Corp	Technology Hardware & Equipment		8,210		221,132
Seino Holdings Co Ltd	Transportation		34,800		205,641
Seven & I Holdings Co Ltd	Food & Staples Retailing		19,900		607,457
Shinko Securities Co Ltd	Diversified Financials		28,000		91,361
Sony Corporation	Consumer Durables & Apparel		10,478		395,494
Sumitomo Trust & Bkg	Banks		35,874		246,563
Taiyo Yuden Company Limited	Technology Hardware & Equipment		7,000		70,634
Takeda Pharmaceutical Co Ltd	Pharma, Biotech & Life Sciences		4,600		243,782

Domini PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Japan (Continued)
TDK Corp	Technology Hardware & Equipment		4,200	$	250,620
Tokyo Gas Co Ltd	Utilities		50,000		201,020
Tokyo Steel Mfg Co Ltd	Materials		21,300		237,692
Toppan Printing Company Ltd	Commercial Services & Supplies		53,606		555,014
Tosoh Corporation	Materials		27,000		116,511
Toyo Seikan Kaisha Limited	Materials		19,587		353,227

					13,809,626
*Malaysia* – *2.0%*
PPB Group Behard	Food & Beverage		14,500		41,217
Telekom Malaysia BHD	Telecommunication Services		57,600		60,571
Tenaga Nasional BHD	Utilities		43,956		112,768
TM International SDN BHD (a)	Telecommunication Services		104,000		202,826
YTL Corporation Berhad	Utilities		71,840		144,999

					562,381
*New Zealand* – *2.8%*
Kiwi Income Property Trust	Real Estate		171,013		141,473
Telecom Corp of New Zealand	Telecommunication Services		176,217		488,117
Vector Ltd	Utilities		100,805		160,653

					790,243
*Norway* – *0.9%*
StatoilHydro ASA	Energy		7,950		257,052

					257,052
*Philippines* – *0.3%*
Globe Telecom Inc	Telecommunication Services		2,897		73,838

					73,838
*Singapore* – *3.1%*
CapitaCommercial Trust	Real Estate		134,000		186,515
DBS Group Holdings Ltd.	Banks		20,606		286,427
Jardine Cycle & Carriage Ltd	Retailing		22,662		285,986
Singapore Land Ltd	Real Estate		9,000		42,073
Suntec Reit	Real Estate		72,000		81,108

					882,109
*South Korea* – *8.1%*
Daegu Bank	Banks		3,280		40,694
GS Engineering & Construction	Capital Goods		550		54,479
GS Holdings Corp	Energy		5,139		190,557
Hynix Semiconductor Inc (a)	Semiconductors & Semiconductor Equipment		3,810		80,832
Industrial Bank of Korea	Banks		8,835		136,562
Kookmin Bank	Banks		1,755		99,520
Korea Zinc Co Ltd	Materials		1,319		180,544
KT Corp	Telecommunication Services		6,803		280,335
LG Electronics Inc	Consumer Durables & Apparel		3,813		389,549
LG International	Capital Goods		2,080		47,702
LG Philips LCD Co Ltd	Technology Hardware & Equipment		9,900		291,769
LG Telecom Ltd	Telecommunication Services		15,570		134,094
Pacific Corp	Household & Personal Products		699		86,438
Pusan Bank	Banks		3,670		44,559
Shinhan Financial Group Ltd	Banks		2,123		98,944
Woori Finance Holdings Co	Banks		4,410		62,223
Woori Investment & Securities	Diversified Financials		4,450		87,880

					2,306,681

Domini PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*Taiwan* – *7.1%*
Acer Inc	Technology Hardware & Equipment		37,555	$	76,677
Asustek Computer Inc	Technology Hardware & Equipment		67,492		175,669
Au Optronics Corp	Technology Hardware & Equipment		316,603		354,527
Chi Mei Optoelectronics Corp	Technology Hardware & Equipment		257,838		216,953
China Steel Corp	Materials		200,040		284,941
Chunghwa Picture Tubes Ltd (a)	Technology Hardware & Equipment		872,000		198,035
Chunghwa Telecom Co Ltd	Telecommunication Services		25,475		64,480
First Financial Holding Co	Banks		103,000		86,187
HTC Corp	Technology Hardware & Equipment		8,650		135,751
Qisda Corp	Technology Hardware & Equipment		79,920		42,758
Quanta Computer Inc	Technology Hardware & Equipment		133,900		190,017
Siliconware Precision Inds	Semiconductors & Semiconductor Equipment		371		485
Taiwan Cooperative Bank (a)	Banks		222,143		189,092

					2,015,572
*Thailand* – *0.8%*
Bangkok Bank Pub Co — For Reg	Banks		66,718		219,762

					219,762
*United Kingdom* – *0.5%*
BG Group PLC	Energy		5,974		134,928

					134,928
*United States* – *0.4%*
Apache Corporation	Energy		1,000		112,170

					112,170
Total Common Stock (Cost $31,025,717)					28,105,167

Repurchase Agreement – 0.9%
State Street Bank & Trust, dated 07/31/08, 0.90% due 08/01/08, maturity amount $265,369 (collateralized by U.S. Government Agency Mortgage Securities, Federal Home Loan Banks, 2.606%, 01/23/09, market value $274,654)	Repurchase Agreement		265,362		265,362

Total Repurchase Agreement (Cost $265,362)					265,362

Total Investments — 99.8% (Cost $31,291,079) (b)					28,370,529
Other Assets, less liabilities — 0.2%					45,550

Net Assets — 100.0%				$	28,416,079


(a)		Non-income producing security.

(b)		The aggregate cost for federal income tax purposes is $31,585,199. The aggregate gross unrealized appreciation is $827,874 and the aggregate gross unrealized depreciation is $4,042,544, resulting in net unrealized depreciation of $3,214,670.

SEE NOTES TO FINANCIAL STATEMENTS

Domini European PacAsia Social Equity Portfolio

PERFORMANCE COMMENTARY

For the year ended July 31, 2008, the Domini European PacAsia Social Equity Portfolio declined −16.61%, excluding sales charges, lagging the MSCI EAFE index, which returned −11.73%.

The Fund benefited from positive stock selection in telecommunications and industrials, and in the healthcare sector, where the Fund’s overweighting was also a positive factor. The Fund was hurt by stock selection in the consumer discretionary, materials, and financial sectors.

Among the companies held in the Fund’s portfolio during the quarter, the Fund’s relative performance was helped the most by the following:


•	France Telecom, whose domestic wireline and wireless divisions surprised analysts by their strong performance in the third quarter of 2007

•	The Norwegian materials and energy company Norsk Hydro, which benefited from high prices for aluminum and strong demand from China, although higher prices for energy and raw materials caused the company’s profits to drop in the second quarter of 2008

•	The Swiss healthcare company Lonza, which enjoyed strong growth in sales

The Fund’s relative performance was hurt the most by the following companies in the portfolio:


•	The British media company Trinity Mirror, which reported a drop in advertising in the second quarter of 2008

•	Royal Bank of Scotland, which was affected by the impact of problems in the U.S. housing market on mortgage-related securities that the company held

•	Home Retail Group, which reported in the third quarter of 2007 that sales of outdoor furniture and other products were down due to poor summer weather

The Domini European PacAsia Social Equity Portfolio invests in the Domini European PacAsia Social Equity Trust. The table and bar chart below provide information as of July 31, 2008, about the ten largest holdings of the Domini European PacAsia Social Equity Trust and its portfolio holdings by industry sector and by country:

TEN LARGEST HOLDINGS


	% NET
COMPANY	ASSETS

BG Group		2.94%
Novartis		2.55%
Sanofi-Aventis		2.32%
France Telecom		2.21%
StatoilHydro		2.16%
Vivendi		1.94%
ING Groep		1.91%
Vodafone Group		1.87%
Deutsche Telekom		1.79%
Banco Santander		1.72%

PORTFOLIO HOLDINGS BY INDUSTRY SECTOR (% OF NET ASSETS)

* Other reflects Repurchase Agreements and Other Liabilities, less assets.

PORTFOLIO HOLDINGS BY COUNTRY (% OF NET ASSETS)

* Other reflects Ireland, New Zealand, Singapore, South Korea, Taiwan, China, Greece, Poland, Russia, Repurchase Agreements, and Other Liabilities, less assets.

The holdings mentioned above are described in the Domini European PacAsia Social Equity Trust’s Portfolio of Investments at July 31, 2008, included herein. The composition of the Trust’s portfolio is subject to change.

Domini European PacAsia Social Equity Portfolio — Performance Commentary 35

AVERAGE ANNUAL TOTAL RETURNS

Domini European PacAsia

Domini European

Social Equity Portfolio

PacAsia Social Equity

(DUPPX) (with 4.75%

Portfolio (DUPPX)

Maximum Sales

(without Sales

Charge)

MSCI EAFE

As of 6-30-08

1 Year

−20.56

−16.60

−10.15

Since Inception⁽¹⁾

−8.41

−5.41

0.57

As of 7-31-08

1 Year

−20.57

−16.61

−11.73

Since Inception⁽¹⁾

−9.70

−6.91

−1.49

COMPARISON OF $10,000 INVESTMENT IN THE
DOMINI EUROPEAN PACASIA SOCIAL EQUITY PORTFOLIO (WITH 4.75% MAXIMUM SALES CHARGE) AND THE MSCI EAFE

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 European PacAsia Social Equity Portfolio is based on the Fund’s net asset values and assumes all dividends and capital gains were reinvested. An investment in the Fund is not a bank deposit and is not insured. You may lose money. 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.

For the period reported in its current prospectus, the Fund’s gross annual operating expenses were estimated to total 19.27% of net assets. Until November 30, 2008, Domini has contractually agreed to waive fees and reimburse expenses to limit the Fund’s expenses, on a per annum basis, to 1.57% of net assets.

The Morgan Stanley Capital International Europe Australasia Far East Index (MSCI EAFE) is an unmanaged index of common stocks. Investors cannot invest directly in the MSCI EAFE.

(1) Since December 27, 2006.

This material must be preceded or accompanied by the Fund’s current prospectus. DSIL Investment Services LLC, Distributor. 09/08

36 Domini European PacAsia Social Equity Portfolio — Performance Commentary

Domini European PacAsia Social Equity Trust

PORTFOLIO OF INVESTMENTS

JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Common Stock – 99.0%
*Australia* – *3.6%*
AGL Energy Ltd	Utilities		13,864	$	173,191
BlueScope Steel Ltd	Materials		11,181		121,338
Commonwealth Property Office	Real Estate		54,397		68,795
Gpt Group	Real Estate		43,585		61,684
National Australia Bank Ltd	Banks		9,326		213,848
Suncorp-Metway Limited	Insurance		8,290		103,497
Telstra Corp Ltd	Telecommunication Services		18,821		79,362

					821,715
*Austria* – *1.5%*
Immoeast AG (a)	Real Estate		8,363		59,874
Immofinanz AG	Real Estate		9,364		84,801
OMV AG	Energy		2,801		192,928

					337,603
*Belgium* – *1.5%*
Bekaert NV	Capital Goods		817		124,104
Delhaize Group	Food & Staples Retailing		660		36,239
Dexia	Banks		1,797		24,355
Euronav SA	Energy		1,511		67,826
Fortis	Diversified Financials		6,080		85,420

					337,944
*China* – *0.3%*
Hopson Development Holdings	Real Estate		32,000		33,808
TPV Technology Ltd	Technology Hardware & Equipment		73,775		37,673

					71,481
*Denmark* – *2.2%*
D/S Norden	Transportation		900		87,108
H. Lundbeck A/S	Pharma, Biotech & Life Sciences		4,945		125,423
Novo Nordisk A/S-B	Pharma, Biotech & Life Sciences		2,275		144,283
Vestas Wind Systems A/S (a)	Capital Goods		1,100		143,493

					500,307
*Finland* – *1.6%*
Konecranes Oyj	Capital Goods		3,385		134,515
Nokian Renkaat Oyj	Automobiles & Components		845		36,393
Outokumpu Oyj	Materials		5,273		122,811
TietoEnator Oyj	Software & Services		3,466		70,513

					364,232
*France* – *11.0%*
ArcelorMittal	Materials		1,043		92,290
BNP Paribas	Banks		1,936		190,904
Casino Guichard Perrachon	Food & Staples Retailing		373		37,224
Eurazeo	Diversified Financials		967		96,362
France Telecom SA	Telecommunication Services		15,778		499,014
Lafarge SA	Materials		770		104,781
Peugeot SA	Automobiles & Components		2,467		120,485
Sanofi-Aventis	Pharma, Biotech & Life Sciences		7,457		523,569
SCOR SE	Insurance		2,901		68,801
Ste Des Ciments Francais-A	Materials		616		85,571

Domini European PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*France* (Continued)
	Semiconductors & Semiconductor
STMicroelectronics	Equipment		6,009	$	66,496
Valeo	Automobiles & Components		1,662		53,718
Vallourec	Capital Goods		362		107,816
Vivendi SA	Media		10,467		437,742

					2,484,773
*Germany* – *7.2%*
Adidas AG	Consumer Durables & Apparel		1,056		64,664
Allianz SE-Reg	Insurance		1,154		195,731
Bayerische Hypo-und Vereinsb	Banks		577		36,700
Deutsche Lufthansa — Reg	Transportation		9,431		216,423
Deutsche Telekom AG — Reg	Telecommunication Services		23,240		402,944
Epcos AG	Technology Hardware & Equipment		5,096		140,723
Hannover Rueckversicherungs AG	Insurance		1,449		69,004
Henkel KGaA-Vorzug	Household & Personal Products		5,597		223,346
Muenchener Rueckver AG — Reg	Insurance		1,329		220,664
Salzgitter AG	Materials		366		59,728

					1,629,927
*Greece* – *0.3%*
Public Power Corp	Utilities		2,102		64,982

					64,982
*Hong Kong* – *3.0%*
Chinese Estates Hl	Real Estate		40,269		57,105
First Pacific Co	Diversified Financials		56,000		32,010
Great Eagle Holdings Ltd	Real Estate		20,145		57,689
Hang Lung Group Ltd	Real Estate		6,627		29,389
Hongkong Land Holdings Ltd	Real Estate		28,000		115,640
Hysan Development Company	Real Estate		12,000		34,114
Jardine Matheson Hldgs Ltd	Capital Goods		1,514		47,842
Jardine Strategic Holdings Ltd	Capital Goods		2,500		43,000
Swire Pacific Ltd ’A’	Real Estate		11,334		121,048
Wharf Holdings Ltd	Real Estate		6,970		30,804
Wheelock & Co Ltd	Real Estate		38,250		103,512

					672,153
*Ireland* – *1.2%*
Anglo Irish Bank PLC	Banks		14,050		111,612
Elan Corporation PLC (a)	Pharma, Biotech & Life Sciences		1,174		23,923
Irish Life & Permanent PLC	Insurance		5,284		42,381
Kerry Group PLC-A	Food & Beverage		3,351		92,860

					270,776
*Italy* – *2.5%*
Fiat SpA	Automobiles & Components		9,923		169,833
I.F.I. (Istit Fin) Priv (a)	Diversified Financials		1,701		35,530
Pirelli & Co.	Automobiles & Components		192,926		119,750
Terna SpA	Utilities		36,425		151,207
Tiscali SpA (a)	Software & Services		12,441		30,131
Unipol Gruppo Finsnziario SpA	Insurance		22,050		57,339

					563,790

Domini European PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*Japan* – *20.5%*
Alps Electric Co Ltd	Technology Hardware & Equipment		5,500	$	56,452
Amada Co Ltd	Capital Goods		7,000		47,724
Aoyama Trading Co Ltd	Retailing		5,996		105,681
Asahi Kasei Corporation	Materials		23,000		117,528
Astellas Pharma Inc	Pharma, Biotech & Life Sciences		6,200		268,334
Brother Industries Ltd	Technology Hardware & Equipment		3,300		41,513
Central Japan Railway Co	Transportation		13		131,979
Chuo Mitsui Trust Holdings Inc	Banks		28,194		175,158
Dai Nippon Printing Co Ltd	Commercial Services & Supplies		10,828		148,731
Daicel Chemical Industries	Materials		7,000		41,155
Daiwa House Industry Co Ltd	Real Estate		6,000		56,673
Fuji Film Holdings Corp	Technology Hardware & Equipment		7,205		226,057
Hakuhodo Dy Holdings Inc	Media		1,040		56,454
Honda Motor Co Ltd	Automobiles & Components		9,428		300,416
Kawasaki Kisen Kaisha Ltd	Transportation		12,000		95,055
Kyocera Corporation	Technology Hardware & Equipment		1,179		101,354
Mazda Motor Corp	Automobiles & Components		7,000		40,334
Mitsui O.S.K. Lines Ltd	Transportation		10,000		129,263
Nintendo Company Ltd	Software & Services		167		80,876
Nippon Electric Glass Co Ltd	Technology Hardware & Equipment		5,000		73,447
Nippon Mining Holdings Inc	Energy		8,000		48,109
Nippon Telegraph & Telephone	Telecommunication Services		48		243,418
Nissan Motor Company Ltd	Automobiles & Components		14,300		109,882
Nisshin Steel Co Ltd	Materials		27,000		83,418
Nitto Denko Corporation	Materials		1,800		51,438
Orix Corporation	Diversified Financials		1,000		151,119
Ricoh Company Limited	Technology Hardware & Equipment		6,484		105,099
	Semiconductors & Semiconductor
Rohm Company Limited	Equipment		1,100		62,695
Seiko Epson Corp	Technology Hardware & Equipment		3,601		96,991
Seino Holdings Co Ltd	Transportation		10,801		63,826
Seven & I Holdings Co Ltd	Food & Staples Retailing		8,600		262,519
Sony Corporation	Consumer Durables & Apparel		779		29,403
Sumitomo Trust & Bkg	Banks		11,000		75,603
Suzuken Company Limited	Health Care Equipment & Services		1,800		61,752
Taisho Pharmaceutical Co Ltd	Pharma, Biotech & Life Sciences		4,000		82,544
TDK Corp	Technology Hardware & Equipment		1,500		89,507
Tokyo Gas Co Ltd	Utilities		53,000		213,081
Tokyo Steel Mfg Co Ltd	Materials		9,483		105,823
Toppan Printing Company Ltd	Commercial Services & Supplies		23,154		239,727
Tosoh Corporation	Materials		9,000		38,837
Toyo Seikan Kaisha Limited	Materials		7,061		127,336

					4,636,311
*Netherlands* – *5.1%*
Akzo Nobel	Materials		2,851		163,077
ING Groep NV-CVA	Diversified Financials		13,182		429,967
Koninklijke Ahold NV	Food & Staples Retailing		12,340		140,440
Koninklijke DSM NV	Materials		2,962		179,771
OCE NV	Technology Hardware & Equipment		3,294		31,302
Randstad Holding NV	Commercial Services & Supplies		1,125		31,809
SNS Reaal	Diversified Financials		10,990		183,976

					1,160,342

Domini European PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*New Zealand* – *1.0%*
Kiwi Income Property Trust	Real Estate		110,346	$	91,285
Telecom Corp of New Zealand	Telecommunication Services		36,526		101,176
Vector Ltd (a)	Utilities		21,664		34,526

					226,987
*Norway* – *3.3%*
Hafslund ASA-B Shs	Utilities		4,500		89,390
Norsk Hydro ASA	Materials		13,150		164,092
StatoilHydro ASA	Energy		15,058		486,880

					740,362
*Poland* – *0.3%*
Telekomunikacja Polska	Telecommunication Services		5,331		59,161

					59,161
*Russia* – *0.1%*
Vimpel-Communications-SP ADR	Telecommunication Services		1,300		32,799

					32,799
*Singapore* – *0.8%*
CapitaCommercial Trust	Real Estate		21,000		29,230
DBS Group Holdings Ltd.	Banks		3,000		41,701
Jardine Cycle & Carriage Ltd	Retailing		8,817		111,267

					182,198
*South Korea* – *0.6%*
Korea Zinc Co Ltd	Materials		285		39,011
KT Corp	Telecommunication Services		795		32,760
LG Corp	Capital Goods		494		31,550
LG Electronics Inc	Consumer Durables & Apparel		243		24,826

					128,147
*Spain* – *3.3%*
Banco Santander SA	Banks		19,907		387,628
Telefonica SA	Telecommunication Services		13,658		354,483

					742,111
*Sweden* – *2.0%*
Atlas Copco — B Shs	Capital Goods		2,000		28,099
Industrivarden AB-C Shs	Diversified Financials		8,100		103,581
Investor AB-B Shs	Diversified Financials		10,400		226,366
TeliaSonera AB	Telecommunication Services		11,500		87,586

					445,632
*Switzerland* – *6.6%*
Adecco SA-Reg	Commercial Services & Supplies		817		37,398
Clariant AG Regular	Materials		9,058		89,561
Kuoni Reisen Hldg-Reg	Consumer Services		63		27,240
Lonza AG-Reg	Pharma, Biotech & Life Sciences		1,494		216,424
Novartis AG -Reg Shs	Pharma, Biotech & Life Sciences		9,686		574,687
Roche Holding AG	Pharma, Biotech & Life Sciences		1,142		210,877
Schindler Holding — Part Cert	Capital Goods		491		33,506
Swiss Life Holdings AG (a)	Insurance		332		85,311
Swiss Re-Reg	Insurance		3,296		204,849

					1,479,853

Domini European PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

*Taiwan* – *0.4%*
Chi Mei Optoelectronics Corp	Technology Hardware & Equipment		25,200	$	21,204
Chunghwa Picture Tubes Ltd (a)	Technology Hardware & Equipment		127,000		28,842
Quanta Computer Inc	Technology Hardware & Equipment		22,660		32,157

					82,203
*United Kingdom* – *19.1%*
3i Group PLC	Diversified Financials		9,026		160,345
Aggreko PLC	Commercial Services & Supplies		12,148		169,960
Associated British Foods PLC	Food & Beverage		10,120		143,005
Aviva PLC	Insurance		20,179		200,121
BG Group PLC	Energy		29,362		663,167
Bradford and Bingley	Banks		40,698		44,737
Carphone Warehouse Group	Retailing		6,183		23,027
Centrica Ord Gbp	Utilities		24,817		153,993
Cookson Group New	Capital Goods		3,082		37,741
Drax Group PLC	Utilities		14,959		213,948
GlaxoSmithKline PLC	Pharma, Biotech & Life Sciences		14,624		340,672
HMV Group PLC	Retailing		19,150		45,505
Home Retail Group	Retailing		29,093		124,341
HSBC Holdings PLC	Banks		20,416		337,424
ICAP PLC	Diversified Financials		20,774		204,806
Investec PLC	Diversified Financials		11,498		76,417
Lloyds TSB Group PLC	Banks		8,837		51,497
Man Group PLC	Diversified Financials		3,532		42,636
Mondi PLC	Materials		7,888		38,984
Morrison (Wm.) Supermarkets	Food & Staples Retailing		18,725		95,459
Old Mutual PLC	Insurance		94,600		180,422
Royal Bank of Scotland Group	Banks		58,539		242,728
Standard Chartered PLC	Banks		4,587		139,568
Thomas Cook	Consumer Services		19,687		77,977
Vodafone Group PLC	Telecommunication Services		157,425		421,446
WH Smith PLC	Retailing		7,288		51,879
Yell Group PLC	Media		14,240		19,675

					4,301,480
Total Common Stock (Cost $24,425,552)					22,337,269

Domini European PacAsia Social Equity Trust / PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2008


COUNTRY/SECURITY	INDUSTRY	SHARES		VALUE

Repurchase Agreement – 1.5%
State Street Bank & Trust, dated 07/31/08, 0.90% due 08/01/08, maturity amount $335,055 (collateralized by U.S. Government Agency Mortgage Securities, Federal Home Loan Banks, 2.606%, 01/23/09, market value $344,565)	Repurchase Agreement		335,047	$	335,047

Total Repurchase Agreement (Cost $335,047)					335,047

Total Investments — 100.5% (Cost $24,760,599) (b)					22,672,316
Other Liabilities, less assets — (0.5%)					(113,560	)

Net Assets — 100.0%				$	22,558,756


(a)		Non-income producing security.

(b)		The aggregate cost for federal income tax purposes is $24,938,976. The aggregate gross unrealized appreciation is $493,539 and the aggregate gross unrealized depreciation is $2,760,199, resulting in net unrealized depreciation of $2,266,660.

ADR – American Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS

DOMINI FUNDS

EXPENSE EXAMPLE

As a shareholder of the Domini Funds, you incur two types of costs:


•	Transaction costs such as sales charges (loads) on purchases and redemption fees deducted from any redemption or exchange proceeds if you sell or exchange shares of the fund after holding them less than 30 days.

•	Ongoing costs, including management fees, distribution (12b-1) 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, 2008, and held through July 31, 2008.

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 tables 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.

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

these transactional costs were included, your costs would have been higher.

Expenses

Beginning

Ending

Paid During

Account

Period

Value as of

2/01/2008—

Fund Name

Expenses

2/01/2008

7/31/2008

Domini Social
Equity Portfolio

Actual Expenses

$1,000.00

$962.90

$5.51¹

Hypothetical Expenses
(5% return before expenses)

$1,000.00

$1,019.24

$5.67¹

Domini European
Social Equity Portfolio

Actual Expenses

$1,000.00

$936.40

$7.56²

Hypothetical Expenses
(5% return before expenses)

$1,000.00

$1,017.06

$7.87²

Domini PacAsia
Social Equity Portfolio

Actual Expenses

$1,000.00

$922.40

$7.50³

Hypothetical Expenses
(5% return before expenses)

$1,000.00

$1,017.06

$7.87³

Domini European PacAsia Social Equity Portfolio

Actual Expenses

$1,000.00

$931.00

$7.54⁴

Hypothetical Expenses
(5% return before expenses)

$1,000.00

$1,017.06

$7.87⁴


¹	Expenses are equal to the Fund’s annualized expense ratio of 1.13%, 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 Equity Trust, the underlying portfolio in which the Fund invests.

²	Expenses are equal to the Fund’s annualized expense ratio of 1.57%, 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 European Social Equity Trust, the underlying portfolio in which the Fund invests.

³	Expenses are equal to the Fund’s annualized expense ratio of 1.57%, 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 PacAsia Social Equity Trust, the underlying portfolio in which the Fund invests.

⁴	Expenses are equal to the Fund’s annualized expense ratio of 1.57%, 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 European PacAsia Social Equity Trust, the underlying portfolio in which the Fund invests.

44 Domini Funds — Expense Example

FINANCIAL STATEMENTS

Domini Social Equity Trust

Domini European Social Equity Trust

Domini PacAsia Social Equity Trust

Domini European PacAsia Social Equity Trust

STATEMENTS OF ASSETS AND LIABILITIES

JULY 31, 2008


ASSETS:
Investments at cost

Investments at value
Foreign currency, at value (cost $0, $0, $59,522, and $1,884, respectively)
Receivable for securities sold
Dividend, interest and tax reclaim receivables

Total assets

LIABILITIES:
Payable for securities purchased
Management fee payable
Other accrued expenses

Total liabilities
NET ASSETS APPLICABLE TO INVESTORS’ BENEFICIAL INTERESTS


Domini Social		Domini European		Domini PacAsia		Domini European PacAsia
Equity Trust		Social Equity Trust		Social Equity Trust		Social Equity Trust


$	938,941,841	$	105,904,277	$	31,291,079	$	24,760,599


$	960,432,757	$	96,466,436	$	28,370,529	$	22,672,316
	—		—		59,003		1,866
	—		1,286,194		112,712		33,331
	1,693,644		617,904		98,667		78,529

	962,126,401		98,370,534		28,640,911		22,786,042



	—		413,348		200,704		212,442
	242,851		62,447		18,134		14,081
	98,493		125,199		5,994		763

	341,344		600,994		224,832		227,286

$	961,785,057	$	97,769,540	$	28,416,079	$	22,558,756

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Trust

Domini European Social Equity Trust

Domini PacAsia Social Equity Trust

Domini European PacAsia Social Equity Trust

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED JULY 31, 2008


INVESTMENT INCOME:
Dividends (net of foreign taxes of $100,703, $468,070, $77,852 and $63,795, respectively)
Interest Income

Investment Income
EXPENSES:
Management fee
Custody fees
Professional fees
Trustees fees
Miscellaneous
Shareholder communications
Total expenses
Fees waived and expenses reimbursed
Net expenses
NET INVESTMENT INCOME (LOSS)
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY:
NET REALIZED GAIN (LOSS) FROM:
Investments
Foreign currency

Net realized gain (loss)
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments
Translation of assets and liabilities in foreign currencies
Net change in unrealized appreciation (depreciation)
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS


Domini Social			Domini European			Domini PacAsia			Domini European PacAsia
Equity Trust			Social Equity Trust			Social Equity Trust			Social Equity Trust


$	22,716,598		$	5,907,227		$	881,583		$	782,552
	134,030			19,324			7,745			5,670

	22,850,628			5,926,551			889,328			788,222


	3,419,090			887,383			227,068			135,203
	197,209			164,472			165,251			154,677
	61,255			43,595			41,779			38,079
	53,128			5,394			1,339			807
	36,977			33,167			2,351			391
	24,956			17,013			14,481			14,414

	3,792,615			1,151,024			452,269			343,571
	(34,734	)		—			(199,434	)		(203,141	)

	3,757,881			1,151,024			252,835			140,430

	19,092,747			4,775,527			636,493			647,792



	(59,435,388	)		(8,367,255	)		(1,540,218	)		(2,048,618	)
	3,233			(10,103	)		(83,824	)		(71,149	)

	(59,432,155	)		(8,377,358	)		(1,624,042	)		(2,119,767	)

	(88,406,291	)		(19,869,294	)		(4,034,354	)		(1,775,820	)
	—			27,282			(1,684	)		1,611

	(88,406,291	)		(19,842,012	)		(4,036,038	)		(1,774,209	)


	(147,838,446	)		(28,219,370	)		(5,660,080	)		(3,893,976	)

$	(128,745,699	)	$	(23,443,843	)	$	(5,023,587	)	$	(3,246,184	)

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Trust

Domini European Social Equity Trust

Domini PacAsia Social Equity Trust

Domini European PacAsia Social Equity Trust

STATEMENTS OF CHANGES IN NET ASSETS


	Domini Social Equity Trust
	YEAR ENDED			YEAR ENDED
	JULY 31, 2008			JULY 31, 2007
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)	$	19,092,747		$	20,214,279
Net realized gain (loss)		(59,432,155	)		363,584,469
Net change in unrealized appreciation (depreciation)		(88,406,291	)		(171,583,725	)

Net Increase (Decrease) in Net Assets Resulting from Operations		(128,745,699	)		212,215,023

TRANSACTIONS IN INVESTORS’ BENEFICIAL INTEREST:
Additions		134,262,000			149,773,706
Reductions		(339,801,806	)		(473,539,053	)

Net Increase (Decrease) in Net Assets from Transactions in Investors’ Beneficial Interests		(205,539,806	)		(323,765,347	)

Total (Decrease) Increase in Net Assets		(334,285,505	)		(111,550,324	)
NET ASSETS:
Beginning of period		1,296,070,562			1,407,620,886

End of period	$	961,785,057		$	1,296,070,562


						Domini PacAsia						Domini European PacAsia
Domini European Social Equity Trust						Social Equity Trust						Social Equity Trust

									FOR THE PERIOD						FOR THE PERIOD
									DECEMBER 27, 2006						DECEMBER 27, 2006
									(COMMENCEMENT						(COMMENCEMENT
									OF OPERATIONS)						OF OPERATIONS)
YEAR ENDED			YEAR ENDED			YEAR ENDED			THROUGH			YEAR ENDED			THROUGH
JULY 31, 2008			JULY 31, 2007			JULY 31, 2008			JULY 31, 2007			JULY 31, 2008			JULY 31, 2007



$	4,775,527		$	3,975,309		$	636,493		$	147,548		$	647,792		$	232,992
	(8,377,358	)		10,025,162			(1,624,042	)		69,376			(2,119,767	)		59,488
	(19,842,012	)		6,760,180			(4,036,038	)		1,114,179			(1,774,209	)		(312,841	)

	(23,443,843	)		20,760,651			(5,023,587	)		1,331,103			(3,246,184	)		(20,361	)


	21,499,029			78,695,157			11,393,853			26,495,325			14,940,286			14,712,073
	(33,788,739	)		(21,885,599	)		(4,960,436	)		(820,179	)		(3,200,258	)		(626,800	)


	(12,289,710	)		56,809,558			6,433,417			25,675,146			11,740,028			14,085,273

	(35,733,553	)		77,570,209			1,409,830			27,006,249			8,493,844			14,064,912

	133,503,093			55,932,884			27,006,249			—			14,064,912			—

$	97,769,540		$	133,503,093		$	28,416,079		$	27,006,249		$	22,558,756		$	14,064,912

SEE NOTES TO FINANCIAL STATEMENTS

FINANCIAL HIGHLIGHTS

Domini Social Equity Trust


	YEAR ENDED JULY 31,
	2008	2007	2006	2005	2004

Net assets (in millions)	$962	$1,296	$1,408	$1,612	$1,527
Total return	−11.11%	16.00%	1.46%	11.48%	12.01%
Ratio of net investment income (loss) to average net assets (annualized)	1.68%	1.44%	1.48%	1.92%	1.25%
Ratio of expenses to average net assets (annualized)	0.33%⁽¹⁾	0.30%⁽¹⁾⁽²⁾	0.22%⁽²⁾	0.23%⁽²⁾	0.24%⁽²⁾
Portfolio turnover rate	70%	126%	12%	9%	8%


(1)	Reflects an expense reimbursement and fee waiver by the Manager of 0.00% and 0.01% for the years ended July 31, 2008 and 2007, respectively. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 0.33% and 0.31% for the years ended July 31, 2008 and 2007, respectively.

(2)	Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratios would have been 0.29%, 0.21%, 0.22%, and 0.24%, for the years ended July 31, 2007, 2006, 2005, and 2004, respectively.

Domini European Social Equity Trust

FOR THE PERIOD

OCTOBER 3, 2005

(COMMENCEMENT

OF OPERATIONS)

YEAR ENDED

THROUGH

JULY 31, 2008

JULY 31, 2007

JULY 31, 2006

Net assets (in millions)

$98

$134

$56

Total return

−18.20%

27.45%

25.96%*

Ratio of net investment income to average net assets (annualized)

4.04%

3.75%

3.92%

Ratio of expenses to average net assets (annualized)

0.97%

0.88%⁽¹⁾⁽²⁾

Portfolio turnover rate

92%

88%

69%*


*	Not annualized.


(1)	Reflects an expense reimbursement and fee waiver by the Manager of 0.07% for the year ended July 31, 2007, and 0.47% for the period ended July 31, 2006. Had the Manager not waived its fee, the ratio of expenses to average net assets would have been 0.96% for the year ended July 31, 2007, and 1.35% for the period ended July 31, 2006.

(2)	Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratios would have been 0.83% for the year ended July 31, 2007, and 0.77% for the period ended July 31, 2006.

SEE NOTES TO FINANCIAL STATEMENTS

FINANCIAL HIGHLIGHTS

Domini PacAsia Social Equity Trust


			FOR THE PERIOD
			DECEMBER 27, 2006
			(COMMENCEMENT
			OF OPERATIONS)
	YEAR ENDED		THROUGH
	JULY 31, 2008		JULY 31, 2007

Net assets (in millions)		$28		$27
Total return		−15.06%		7.14%*
Ratio of net investment income to average net assets (annualized)		2.10%		1.30%
Ratio of expenses to average net assets (annualized)		0.84%⁽¹⁾		0.89%⁽¹⁾⁽²⁾
Portfolio turnover rate		98%		41%*


*	Not annualized


(1)	Reflects an expense reimbursement and fee waiver of 0.66% for the year ended July 31, 2008, and 1.19% for the period ended July 31, 2007. Had the Manager not waived its fee, the ratio of expenses to average net assets would have been 1.50% for the year ended July 31, 2008, and 2.08% for the period ended July 31, 2007.

(2)	Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratio would have been 0.77% for the period ended July 31, 2007.

Domini European PacAsia Social Equity Trust


			FOR THE PERIOD
			DECEMBER 27, 2006
			(COMMENCEMENT
			OF OPERATIONS)
	YEAR ENDED		THROUGH
	JULY 31, 2008		JULY 31, 2007

Net assets (in millions)		$23		$14
Total return		−15.78%		4.38%*
Ratio of net investment income to average net assets (annualized)		3.59%		4.82%
Ratio of expenses to average net assets (annualized)		0.78%⁽¹⁾		0.86%⁽¹⁾⁽²⁾
Portfolio turnover rate		91%		46%*


*	Not annualized.


(1)	Reflects an expense reimbursement and fee waiver by the Manager of 1.13% for the year ended July 31, 2008, and 2.96% for the period ended July 31, 2007. Had the Manager not waived its fee, the ratio of expenses to average net assets would have been 1.91% for the year ended July 31, 2008, and 3.82% for the period ended July 31, 2007.

(2)	Ratio of expenses to average net assets does not include indirectly paid expenses. Including indirectly paid expenses, the expense ratio would have been 0.77% for the period ended July 31, 2007.

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Trust

Domini European Social Equity Trust

Domini PacAsia Social Equity Trust

Domini European PacAsia Social Equity Trust

NOTES TO FINANCIAL STATEMENTS

JULY 31, 2008

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Domini Social Trust was organized as a trust under the laws of the State of New York on June 7, 1989, and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Domini Social Trust consists of four separate series: Domini Social Equity Trust, Domini European Social Equity Trust, Domini PacAsia Social Equity Trust, and Domini European PacAsia Social Equity Trust (formerly Domini EuroPacific Social Equity Trust) (each a “Trust” and collectively the “Trusts”). The Declaration of Trust permits the Trustees to issue an unlimited number of beneficial interests in the Trusts. Each Trust seeks to provide its shareholders with long-term total return.

The Domini Social Equity Trust was designated as a series of the Domini Social Trust on June 7, 1989, and began investment operations on June 3, 1991. The Trust invests primarily in stocks of U.S. companies that meet Domini’s social and environmental standards.

The Domini European Social Equity Trust was designated as a series of the Domini Social Trust on August 1, 2005, and commenced investment operations on October 3, 2005. The Trust invests primarily in stocks of European companies that meet Domini’s social and environmental standards.

The Domini PacAsia Social Equity Trust was designated as a series of the Domini Social Trust on August 1, 2006, and commenced investment operations on December 27, 2006. The Trust invests primarily in stocks of Asia-Pacific companies that meet Domini’s social and environmental standards.

The Domini European PacAsia Social Equity Trust (formerly Domini EuroPacific Social Equity Trust) was designated as a series of the Domini Social Trust on August 1, 2006, and commenced investment operations on December 27, 2006. The Trust invests primarily in stocks of European and Asia-Pacific companies that meet Domini’s social and environmental standards.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the Trusts’ significant accounting policies.

(A) Valuation of Investments. Securities listed or traded on national securities exchanges are valued at the last sale price reported by the security’s primary exchange or, if there have been no sales that day, at the mean of the current bid and ask price that represents the current value of the security. Securities listed on the NASDAQ National Market System are valued using the NASDAQ Official Closing Price (the “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. Securities for which market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the supervision of the Trusts’ Board of Trustees. Securities that are primarily traded on foreign exchanges generally are valued at the closing price of such securities on their respective exchanges, except that if the Trusts’ manager or submanager, as applicable, is of the opinion that such price would result in an inappropriate value for a security, including as a result of an occurrence subsequent to the time a value was so established, then the fair value of those securities may be determined by consideration of other factors (including the use of an independent pricing service) by or under the direction of the Board of Trustees or its delegates.

(B) Repurchase Agreements. The Trusts may enter into repurchase agreements with selected banks or broker-dealers. Each repurchase agreement is recorded at cost, which approximates fair value. The Trusts require that collateral, represented by securities (primarily U.S. government agency securities), in a repurchase transaction be maintained in a segregated account with a custodian bank in a manner sufficient to enable each Trust to obtain those securities in the event of a default of the counterparty. In the event of default or bankruptcy by another party to the repurchase agreement, retention of the collateral may be subject to legal proceedings.

(C) Foreign Currency Translation. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts on the date of valuation. Purchases and sales of securities, and income and expense items denominated in foreign currencies, are translated into U.S. dollar amounts on the respective dates of such transactions. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar

Notes to Financial Statements 55

equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board of Trustees.

The Trusts do not separately report the effect of fluctuations in foreign exchange rates from changes in market prices on securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in fair value of assets and liabilities other than investments in securities held at the end of the reporting period, resulting from changes in exchange rates.

(D) Foreign Currency Contracts. When the Trusts purchase or sell foreign securities they may enter into foreign exchange contracts to minimize foreign exchange risk from the trade date to the settlement date of the transactions. A foreign exchange contract is an agreement between two parties to exchange different currencies at an agreed-upon exchange rate on a specified date.

(E) Investment Transactions and Investment Income. Investment transactions are accounted for on trade date. Realized gains and losses from security transactions are determined on the basis of identified cost. Interest income is recorded on an accrual basis. Dividend income, net of any applicable withholding tax, is recorded on the ex-dividend date or for certain foreign securities, when the information becomes available to the Trusts.

(F) Federal Taxes. The Trusts will be treated as partnerships for U.S. federal income tax purposes and are therefore not subject to U.S. federal income tax. As such, investors in the Trusts will be taxed on their share of the applicable Trust’s ordinary income and capital gains. It is intended that the Trusts 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.

56 Notes to Financial Statements


2.	TRANSACTIONS WITH AFFILIATES

(A) Manager. Domini Social Investments LLC (Domini) is registered as an investment advisor 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 Trusts. For its services under the Management Agreements, Domini receives from each Trust a fee accrued daily and paid monthly at the annual rate below of the respective Trusts’ average daily net assets before any fee waivers:


Domini Social Equity Trust		0.20% of the first $2 billion of net assets managed,
(prior to November 30, 2006)		0.19% of the next $500 million of net assets managed, and
		0.18% of net assets managed in excess of $2.5 billion
Domini Social Equity Trust		0.30% of the first $2 billion of net assets managed,
(effective November 30, 2006)		0.29% of the next $1 billion of net assets managed, and
		0.28% of net assets managed in excess of $3 billion
Domini European Social Equity Trust,		0.75% of the first $250 million of net assets managed,
Domini PacAsia Social Equity Trust, and		0.70% of the next $250 million of net assets managed, and
Domini European PacAsia Social Equity Trust		0.65% of net assets managed in excess of $500 million

For the year ended July 31, 2008, Domini voluntarily waived fees and reimbursed expenses as follows:


	FEES		EXPENSES
	WAIVED		REIMBURSED

Domini Social Equity Trust		—	$	34,734
Domini European Social Equity Trust		—		—
Domini PacAsia Social Equity Trust		—		199,434
Domini European PacAsia Social Equity Trust		—		203,141

(B) Submanager. Wellington Management Company, LLP (Wellington) provides investment submanagement services to the Trusts on a day-to-day basis pursuant to Submanagement Agreements with Domini. Domini pays Wellington from its management fees. Prior to November 30, 2006, SSgA Funds Management, Inc. provided these services to Domini Social Equity Trust.


3.	INVESTMENT TRANSACTIONS

For the year ended July 31, 2008, cost of purchases and proceeds from sales of investments, other than U.S. government securities and short-term obligations, were as follows:


	PURCHASES		SALES

Domini Social Equity Trust	$	791,141,766	$	978,286,818
Domini European Social Equity Trust		109,158,465		116,563,404
Domini PacAsia Social Equity Trust		36,303,390		29,349,359
Domini European PacAsia Social Equity Trust		28,492,554		16,285,583

Notes to Financial Statements 57


4.	OTHER ACCOUNTING PRONOUNCEMENTS

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 was required for fiscal years beginning after December 15, 2006, and was applied to all open tax years as of the effective date. FIN 48 does not have a material effect on the Funds’ financial statements. As of July 31, 2008, tax years 2005 through 2008 remain subject to examination by the Funds’ major tax jurisdictions, which include the United States of America, the Commonwealth of Massachusetts and New York State.

On September 15, 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), “Fair Value Measurements.” The new accounting statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). SFAS No. 157 also stipulates that, as a market-based measurement, fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability, and establishes a fair value hierarchy that distinguishes between (a) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (b) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. As of July 31, 2008, management of the Fund is currently assessing the impact, if any, that will result from adopting SFAS No. 157.

In March 2008, the Financial Accounting Standards Board (“FASB”) issued State of Financial Accounting Standards (“SFAS”) No. 161, “Disclosures about Derivative Instruments and Hedging Activities.” This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Funds use derivative instruments, how these activities are accounted for, and

58 Notes to Financial Statements

their effect on the Funds’ financial position, financial performance, and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Funds’ financial statements and related disclosures.

Notes to Financial Statements 59

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Investors
Domini Social Trust:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Domini Social Equity Trust, Domini European Social Equity Trust, Domini PacAsia Social Equity Trust, and Domini European PacAsia Social Equity Trust (formerly Domini EuroPacific Social Equity Trust) (collectively the “Trusts”), each a series of Domini Social Trust, as of July 31, 2008, and the related statements of operations for the year or period then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended, and financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Trusts’ 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, 2008, by correspondence with the custodian and brokers or by 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 the aforementioned Trusts as of July 31, 2008, the results of their operations for the year or period then ended, and the changes in their net assets for each of the years or periods in the two-year period then ended, and financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

September 25, 2008

THIS PAGE INTENTIONALLY LEFT BLANK

Domini Social Equity Portfolio

Domini European Social Equity Portfolio

Domini PacAsia Social Equity Portfolio

Domini European PacAsia Social Equity Portfolio

STATEMENTS OF ASSETS AND LIABILITIES

JULY 31, 2008


ASSETS:
Investment in Portfolio, at value

Total assets

LIABILITIES:
Payable for capital shares
Sponsorship/Management fee payable
Other accrued expenses

Total liabilities

NET ASSETS

NET ASSETS CONSIST OF:
Paid-in capital
Undistributed net investment income (loss)
Accumulated net realized gain (loss) from Portfolio
Net unrealized appreciation (depreciation) from Portfolio

NET ASSETS

NET ASSET VALUE PER SHARE*
Net assets

Outstanding shares of beneficial interest

Net asset value per share

MAXIMUM OFFERING PRICE PER SHARE

(net asset value per share ¸ (1-4.75%))


*	Redemption price is equal to net asset value less any applicable redemption fees retained by the Fund.


Domini Social			Domini European			Domini PacAsia			Domini European PacAsia
Equity Portfolio			Social Equity Portfolio			Social Equity Portfolio			Social Equity Portfolio


$	1,537,349		$	3,936,809		$	997,360		$	1,002,702

	1,537,349			3,936,809			997,360			1,002,702


	—			56,171			—			—
	580			843			212			211
	399			2,644			424			460

	979			59,658			636			671

$	1,536,370		$	3,877,151		$	996,724		$	1,002,031


$	1,905,556		$	4,677,970		$	1,176,398		$	1,226,780
	532			(97	)		677			(1,687	)
	135,906			(419,747	)		(65,718	)		(105,323	)
	(505,624	)		(380,975	)		(114,633	)		(117,739	)

$	1,536,370		$	3,877,151		$	996,724		$	1,002,031


$	1,536,370		$	3,877,151		$	996,724		$	1,002,031

	159,019			364,684			113,327			117,694

$	9.66		$	10.63		$	8.80		$	8.51


$	10.14		$	11.16		$	9.24		$	8.93

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Portfolio

Domini European Social Equity Portfolio

Domini PacAsia Social Equity Portfolio

Domini European PacAsia Social Equity Portfolio

STATEMENTS OF OPERATIONS


INCOME:
Investment income from Portfolio (net of foreign taxes $152, $20,031, $2,843, and $3,507, respectively)
Expenses from Portfolio

Net investment income from Portfolio

EXPENSES:
Sponsor/Management fee
Distribution fees
Registration Fees
Professional fees
Accounting fees
Shareholder communications
Miscellaneous
Transfer agent fees
Trustees fees

Total expenses
Fees waived and expenses reimbursed

Net expenses

NET INVESTMENT INCOME

REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO:

NET REALIZED GAIN (LOSS) FROM PORTFOLIO:
Investments
Foreign Currency

Net realized gain (loss)

NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) FROM PORTFOLIO:
Investments
Translation of assets and liabilities in foreign currencies

Net change in unrealized appreciation (depreciation)

NET REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS


Domini Social			Domini European			Domini PacAsia			Domini European PacAsia
Equity Portfolio			Social Equity Portfolio			Social Equity Portfolio			Social Equity Portfolio

FOR THE			FOR THE			FOR THE			FOR THE
YEAR ENDED			YEAR ENDED			YEAR ENDED			YEAR ENDED
JULY 31, 2008			JULY 31, 2008			JULY 31, 2008			JULY 31, 2008



$	51,183		$	254,488		$	32,066		$	42,658
	(8,827	)		(49,146	)		(9,220	)		(7,459	)

	42,356			205,342			22,846			35,199


	12,154			12,597			2,767			2,395
	6,752			12,597			2,767			2,395
	24,623			31,521			26,055			28,225
	25,287			26,875			25,369			25,048
	18,496			19,222			16,431			16,530
	6,820			11,403			6,193			5,209
	2,414			4,866			2,026			2,087
	5,506			18,704			4,780			3,118
	134			228			50			42

	102,186			138,013			86,438			85,049
	(80,467	)		(107,925	)		(78,279	)		(77,485	)

	21,719			30,088			8,159			7,564

	20,637			175,254			14,687			27,635




	(130,343	)		(351,087	)		(53,171	)		(104,944	)
	5			(467	)		(3,033	)		(3,704	)

	(130,338	)		(351,554	)		(56,204	)		(108,648	)


	(302,896	)		(842,645	)		(153,609	)		(93,601	)
	—			1,196			(79	)		44

	(302,896	)		(841,449	)		(153,688	)		(93,557	)

	(433,234	)		(1,193,003	)		(209,892	)		(202,205	)

$	(412,597	)	$	(1,017,749	)	$	(195,205	)	$	(174,570	)

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Portfolio

Domini European Social Equity Portfolio

Domini PacAsia Social Equity Portfolio

Domini European PacAsia Social Equity Portfolio

STATEMENTS OF CHANGES IN NET ASSETS


	Domini Social Equity Portfolio
	YEAR ENDED			YEAR ENDED
	JULY, 31 2008			JULY 31, 2007

INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)	$	20,637		$	7,378
Net realized gain (loss) from Portfolio		(130,338	)		280,166
Net change in unrealized appreciation (depreciation) from Portfolio		(302,896	)		(204,552	)

Net Increase (Decrease) in Net Assets Resulting from Operations		(412,597	)		82,992

DISTRIBUTIONS AND/OR DIVIDENDS:
Dividends to shareholders from net investment income		(20,208	)		(7,590	)
Distributions to shareholders from net realized gain		—			(3,134	)

Net Decrease in Net Assets from Distributions and/or Dividends		(20,208	)		(10,724	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares		5,217,698			1,522,510
Net asset value of shares issued in reinvestment of distributions and dividends		17,927			10,589
Redemption fees		—			—
Payments for shares redeemed		(5,283,458	)		(67,693	)

Total Decrease (Increase) in Capital Share Transactions		(47,833	)		1,465,406

Total Increase (Decrease) in Net Assets		(480,638	)		1,537,674

NET ASSETS:
Beginning of period		2,017,008			479,334

End of period	$	1,536,370			2,017,008

Undistributed net investment income (loss)	$	532		$	137

CAPITAL SHARE TRANSACTIONS IN SHARES:
Sold		453,811			131,697
Issued in reinvestment of distributions and/or dividends		1,675			906
Redeemed		(470,182	)		(5,853	)

Net Increase (Decrease)		(14,696	)		126,750


Domini European						Domini PacAsia						Domini European PacAsia
Social Equity Portfolio						Social Equity Portfolio						Social Equity Portfolio

									FOR THE PERIOD						FOR THE PERIOD
									DECEMBER 27, 2006						DECEMBER 27, 2006
									(COMMENCEMENT						(COMMENCEMENT
YEAR ENDED			YEAR ENDED			YEAR ENDED			OF OPERATIONS)			YEAR ENDED			OF OPERATIONS)
JULY, 31, 2008			JULY 31, 2007			JULY, 31 2008			THROUGH JULY 31, 2007			JULY, 31 2008			THROUGH JULY 31, 2007



$	175,254		$	125,029		$	14,687		$	2,008		$	27,635		$	11,700
	(351,554	)		516,623			(56,204	)		3,889			(108,648	)		3,468

	(841,449	)		450,105			(153,688	)		39,055			(93,557	)		(24,182	)


	(1,017,749	)		1,091,757			(195,205	)		44,952			(174,570	)		(9,014	)


	(178,739	)		(119,450	)		(14,820	)		(1,280	)		(27,729	)		(9,770	)
	(584,282	)		(16,505	)		(13,321	)		—			(3,734	)		—


	(763,021	)		(135,955	)		(28,141	)		(1,280	)		(31,463	)		(9,770	)


	1,753,381			9,187,524			372,860			1,017,482			542,738			1,069,140

	685,260			121,081			25,618			650			25,431			6,156
	496			1,049			36			—			600			5,134
	(2,255,843	)		(5,389,947	)		(226,818	)		(13,430	)		(165,639	)		(256,712	)

	183,294			3,919,707			171,696			1,004,702			403,130			823,718

	(1,597,476	)		4,875,509			(51,650	)		1,048,374			197,097			804,934


	5,474,627			599,118			1,048,374			—			804,934			—

$	3,877,151		$	5,474,627		$	996,724		$	1,048,374		$	1,002,031		$	804,934

$	(97	)	$	2,210		$	677		$	(621	)	$	(1,687	)	$	70


	129,135			658,514			35,390			99,591			56,051			102,092
	52,445			7,889			2,387			62			2,619			572
	(178,952	)		(353,221	)		(22,804	)		(1,299	)		(17,445	)		(26,195	)

	2,628			313,182			14,973			98,354			41,225			76,469

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Portfolio

FINANCIAL HIGHLIGHTS


										FOR THE PERIOD
										May 1, 2005
										(COMMENCEMENT
										OF OPERATIONS)
	YEAR ENDED JULY 31,									THROUGH
	2008			2007			2006			JULY 31, 2005

For a share outstanding for the period:
Net asset value, beginning of period		$11.61			$10.21			$10.27			$9.50

Income from investment operations:
Net investment income (loss)		0.12			0.06			0.04			0.04
Net realized and unrealized gain (loss) on investments		(1.95	)		1.44			0.02			0.73

Total income from investment operations		(1.83	)		1.50			0.06			0.77

Less dividends and distributions:
Dividends to shareholders from net investment income		(0.12	)		(0.07	)		(0.07	)		—
Distributions to shareholders from net realized gain		—			(0.03	)		(0.06	)		—

Total distributions		(0.12	)		(0.10	)		(0.13	)		—

Redemption fee proceeds		—			—			0.01*			—

Net asset value, end of period		$9.66			$11.61			$10.21			$10.27

Total return⁽²⁾		−15.86%			14.69%			0.51%			8.11%
Portfolio turnover^†		70%			126%			12%			9%
Ratios/supplemental data (annualized):
Net assets, end of period (in thousands)		$1,536			$2,017			$479			$129
Ratio of expenses to average net assets		1.13%	⁽¹⁾		1.09%	⁽¹⁾		0.95%	⁽¹⁾		0.95%	⁽¹⁾
Ratio of net investment income (loss) to average net assets		0.76%			0.59%			0.74%			0.60%


†		For the Portfolio in which the Fund invests.

*		Based on average shares outstanding

(1)		Reflects a waiver of fees by the Manager of the Portfolio, the Sponsor, and the Distributor of the Fund. Had the Manager, the Sponsor, and the Distributor not waived their fees or reimbursed expenses, the ratio of expenses to average net assets would have been 4.11%, 9.47% and 37.78% for the years ended July 31, 2008, 2007, and 2006, respectively, and 135.29% for the period ended July 31, 2005.

(2)		Total Return does not reflect sales commissions and is not annualized for periods less than one year.

SEE NOTES TO FINANCIAL STATEMENTS

Domini European Social Equity Portfolio

FINANCIAL HIGHLIGHTS


							FOR THE PERIOD
							OCTOBER 3, 2005
							(COMMENCEMENT
							OF OPERATIONS)
	YEAR ENDED			YEAR ENDED			THROUGH
	JULY 31, 2008			JULY 31, 2007			JULY 31, 2006

For a share outstanding for the period:
Net asset value, beginning of period		$15.12			$12.26			$10.00

Income from investment operations:
Net investment income (loss)		0.88			0.42			0.19
Net realized and unrealized gain (loss) on investments		(2.95	)		2.88			2.26

Total income from investment operations		(2.07	)		3.30			2.45

Less dividends and/or distributions:
Dividends to shareholders from net investment income		(0.89	)		(0.40	)		(0.20	)
Distributions to shareholders from net realized gain		(1.53	)		(0.04	)		—

Total distributions		(2.42	)		(0.44	)		(0.20	)

Redemption fee proceeds		—	*		—	*		0.01	**

Net asset value, end of period		$10.63			$15.12			$12.26

Total return⁽²⁾		−18.82%			26.82%			24.76%
Portfolio turnover^†		92%			88%			69%
Ratios/supplemental data (annualized):
Net assets, end of period (in thousands)		$3,877			$5,475			$559
Ratio of expenses to average net assets		1.57%	⁽¹⁾		1.58%	⁽¹⁾		1.58%	⁽¹⁾
Ratio of net investment income (loss) to average net assets		3.48%			2.37%			3.98%


*		Amount represents less than 0.005 per share.

**		Based on average shares outstanding.


†		For the Portfolio in which the Fund invests.

(1)		Reflects a waiver of fees by the Manager of the Portfolio and the Manager and Distributor of the Fund. Had the Manager and the Distributor not waived their fees and reimbursed expenses, the ratio of expenses to average net assets would have been 3.71%, and 3.38% for the years ended July 31, 2008 and 2007, respectively, and 30.47% for the period ended July 31, 2006.

(2)		Total Return does not reflect sales commissions and is not annualized for periods less than one year.

SEE NOTES TO FINANCIAL STATEMENTS

Domini PacAsia Social Equity Portfolio

FINANCIAL HIGHLIGHTS


				FOR THE PERIOD
				DECEMBER 27, 2006
				(COMMENCEMENT
				OF OPERATIONS)
	YEAR ENDED			THROUGH
	JULY 31, 2008			JULY 31, 2007

For a share outstanding for the period:
Net asset value, beginning of period		$10.66			$10.00

Income from investment operations:
Net investment income (loss)		0.12			0.02
Net realized and unrealized gain (loss) on investments		(1.75	)		0.65

Total income from investment operations		(1.63	)		0.67

Less dividends and/or distributions:
Dividends to shareholders from net investment income		(0.12	)		(0.01	)
Distributions to shareholders from net realized gain		(0.11	)		—

Total distributions		(0.23	)		(0.01	)

Redemption fee proceeds		—	*		—

Net asset value, end of period		$8.80			$10.66

Total return⁽²⁾		−15.64%			6.73%
Portfolio turnover^†		98%			41%
Ratios/supplemental data (annualized):
Net assets, end of period (in thousands)		$997			$1,048
Ratio of expenses to average net assets		1.57%	⁽¹⁾		1.56%	⁽¹⁾
Ratio of net investment income (loss) to average net assets		1.33%			0.50%


*		Amount represents less than 0.005 per share.

†		For the Portfolio in which the Fund invests.

(1)		Reflects a waiver of fees by the Manager of the Portfolio and the Manager and Distributor of the Fund. Had the Manager and the Distributor not waived their fees and reimbursed expenses, the ratio of expenses to average net assets would have been 9.30% for the year ended July 31, 2008 and 12.80% for the period ended July 31, 2007.

(2)		Total Return does not reflect sales commissions and is not annualized for periods less than one year.

SEE NOTES TO FINANCIAL STATEMENTS

Domini European PacAsia Social Equity Portfolio

FINANCIAL HIGHLIGHTS


				FOR THE PERIOD
				DECEMBER 27, 2006
				(COMMENCEMENT
	YEAR ENDED			OF OPERATIONS)
	JULY 31,			THROUGH
	2008			JULY 31, 2007

For a share outstanding for the period:
Net asset value, beginning of period		$10.53			$10.00

Income from investment operations:
Net investment income (loss)		0.27			0.20
Net realized and unrealized gain (loss) on investments		(1.99	)		0.38

Total income from investment operations		(1.72	)		0.58

Less dividends and/or distributions:
Dividends to shareholders from net investment income		(0.27	)		(0.17	)
Distributions to shareholders from net realized gain		(0.04	)		—

Total distributions		(0.31	)		(0.17	)

Redemption fee proceeds		0.01	**		0.12	**

Net asset value, end of period		$8.51			$10.53

Total return⁽²⁾		−16.61%			6.99%
Portfolio turnover^†		91%			46%
Ratios/supplemental data (annualized):
Net assets, end of period (in thousands)		$1,002			$805
Ratio of expenses to average net assets		1.57%	⁽¹⁾		1.55%	⁽¹⁾
Ratio of net investment income (loss) to average net assets		2.88%			4.16%


**		Based on average shares outstanding.


†		For the Portfolio in which the Fund invests.

(1)		Reflects a waiver of fees by the Manager of the Portfolio and the Manager and Distributor of the Fund. Had the Manager and the Distributor not waived their fees and reimbursed expenses, the ratio of expenses to average net assets would have been 10.79% for the year ended July 31, 2008 and 19.25% for the period ended July 31, 2007.

(2)		Total Return does not reflect sales commissions and is not annualized for periods less than one year.

SEE NOTES TO FINANCIAL STATEMENTS

Domini Social Equity Portfolio

Domini European Social Equity Portfolio

Domini PacAsia Social Equity Portfolio

Domini European PacAsia Social Equity Portfolio

NOTES TO FINANCIAL STATEMENTS

JULY 31, 2008

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Domini Advisor Trust is a Massachusetts business trust registered under the Investment Company Act of 1940 as an open-end management investment company. The Trust comprises four separate series: the Domini Social Equity Portfolio, Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio (each the “Fund,” collectively the “Funds”). Each Fund invests substantially all of its assets in the Domini Social Equity Trust, Domini European Social Equity Trust, Domini PacAsia Social Equity Trust, and Domini European PacAsia Social Equity Trust, respectively (the “Trusts”). The Trusts are diversified, open-end management investment companies having the same investment objectives as the respective Funds. The Trusts are each a series of Domini Social Trust. The values of such investments reflect the Funds’ proportionate interest in the net assets of the Trusts (approximately 0.2% of Domini Social Equity Trust, 4.0% of Domini European Social Equity Trust, 3.5% of Domini PacAsia Social Equity Trust, and 4.4% of Domini European PacAsia Social Equity Trust, respectively, at July 31, 2008). The financial statements of the Trusts are included elsewhere in this report and should be read in conjunction with the Funds’ financial statements.

Shares of the Funds are sold with a front-end sales charge (load) of up to 4.75%.

(A) Valuation of Investments: Valuation of securities by the Trusts is discussed in Note 1 of the Trusts’ Notes to Financial Statements, which are included elsewhere in this report.

(B) Investment Income and Dividends to Shareholders: The Funds earn income daily, net of Trust expenses, on their investments in the Trusts. Dividends to shareholders are usually declared and paid semi-annually

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 Funds’ components of net assets to reflect income and gains available for distribution (or available capital loss carryovers, as applicable) under income tax regulations.

(C) Federal Taxes: Each 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 Trusts are allocated daily pro rata among the Funds and the other investors in the Trusts.

(E) Redemption Fees: Redemptions and exchanges of Fund shares held less than 30 days may be subject to the Funds’ redemption fee, which is 2% of the amount redeemed. Such fees are retained by the Funds and are recorded as an adjustment to paid-in capital.

2. TRANSACTIONS WITH AFFILIATES

(A) Manager. The Trusts have retained Domini Social Investments LLC (Domini) to serve as investment manager and administrator. The services provided by and fees paid to Domini under the Management Agreements are discussed in Note 2(A) of the Trusts’ Notes to Financial Statements, which are included elsewhere in this Report.

(B) Submanager. Wellington Management Company, LLP (Wellington) provides investment submanagement services to the Trusts on a day-to-day basis pursuant to Submanagement Agreements with Domini. Prior to November 30, 2006, SSgA Funds Management, Inc. was the submanager for the Domini Social Equity Trust.

(C) Sponsor/Manager. Pursuant to a Sponsorship Agreement (with respect to the Domini Social Equity Portfolio) and a Management Agreement (with respect to the Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio), Domini provides the Funds with the administrative personnel and services necessary to operate the Funds. In addition to general administrative services and facilities for the Funds similar to those provided by Domini to the Trusts under the Management Agreements, Domini answers questions from the general public and the media regarding the securities holdings of the Trusts. For these services and facilities, Domini receives fees accrued daily and paid monthly from the

Notes to Financial Statements 73

Funds at the annual rate below of the respective Funds’ average daily net assets before any fee waivers:


Domini Social Equity Portfolio		0.50% of net assets managed
(prior to November 30, 2006)
Domini Social Equity Portfolio		0.45% of the first $2 billion of net assets managed,
(effective November 30, 2006)		0.44% of the next $1 billion of net assets managed, and
		0.43% of net assets managed in excess of $3 billion
Domini European Social Equity Portfolio		0.25% of the first $250 million of net assets managed,
Domini PacAsia Social Equity Portfolio, and		0.24% of the next $250 million of net assets managed, and
Domini European PacAsia Social Equity Portfolio		0.23% of net assets managed in excess of $500 million

Effective November 30, 2007, Domini has reduced its fees and reimbursed expenses to the extent necessary to keep the aggregate annual operating expenses of the Domini Social Equity Portfolio at no greater than 1.13% of the average daily net assets and the Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio and Domini European PacAsia Social Equity Portfolio at no greater than 1.57% of the average daily net assets. For the period prior to November 30, 2007, similar arrangements were in effect. The waivers currently in effect are contractual and in effect until November 30, 2008, absent an earlier modification by the Board of Trustees, which oversees the Funds. For the year ended July 31, 2008, Domini waived fees and reimbursed expenses as follows:


	FEES		EXPENSES
	WAIVED		REIMBURSED

Domini Social Equity Portfolio	$	—	$	73,715
Domini European Social Equity Portfolio		—		95,328
Domini PacAsia Social Equity Portfolio		—		75,512
Domini European PacAsia Social Equity Portfolio		—		75,090

(D) Distributor. The Board of Trustees of the Funds has adopted a Distribution Plan in accordance with Rule 12b-1 under the Act. DSIL Investment Services LLC (DSILD), a wholly owned subsidiary of Domini, acts as agent of the Funds in connection with the offering of shares of the Funds pursuant to a Distribution Agreement. Under the Distribution Plan, the Funds pay expenses incurred in connection with the sale of Fund shares and pay DSILD a distribution fee at an aggregate annual rate not to exceed 0.25% of the average daily net assets. For the year ended July 31, 2008, fees waived were $6,752, $12,597, $2,767, and $2,395 for the Domini Social Equity Portfolio, Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio, respectively.

DSIL Investment Services, LLC, (DSIL) the Funds’ Distributor, has received commissions related to the sale of fund shares. For the year ended July 31, 2008, DSIL received $6,516, $4,015, $697, and $3,466 from the Domini Social Equity Portfolio, Domini European Social Equity

74 Notes to Financial Statements

Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio, respectively.

3. INVESTMENT TRANSACTIONS

For the year ended July 31, 2008, additions and reductions in the Funds’ investment in the Trusts were as follows:


	ADDITIONS		REDUCTIONS

Domini Social Equity Portfolio	$	5,225,318	$	5,307,968
Domini European Social Equity Portfolio		1,761,607		2,318,110
Domini PacAsia Social Equity Portfolio		370,885		237,618
Domini European PacAsia Social Equity Portfolio		543,338		179,107

4. FEDERAL TAX STATUS

The tax bases of the components of net assets for the Funds at July 31, 2008, are as follows:


										DOMINI
				DOMINI			DOMINI			EUROPEAN
	DOMINI			EUROPEAN			PACASIA			PACASIA
	SOCIAL			SOCIAL			SOCIAL			SOCIAL
	EQUITY			EQUITY			EQUITY			EQUITY
	PORTFOLIO			PORTFOLIO			PORTFOLIO			PORTFOLIO

Undistributed ordinary income	$	532		$	—		$	4,373		$	—
Capital losses, other losses and other temporary differences		22,729			(349,670	)		(58,583	)		(98,538	)
Unrealized appreciation/(depreciation)		(392,447	)		(451,149	)		(125,464	)		(126,211	)

Distributable net earnings/(deficit)	$	(369,186	)	$	(800,819	)	$	(179,674	)	$	(224,749	)

The difference between components of Distributable Earnings on a tax basis and the amounts reflected in the statement of assets and liabilities are primarily due to differences in book and tax policies and capital loss carryovers.

During the period from November 1, 2007, through July 31, 2008, the Funds’ net realized capital losses were as follows:


Domini Social Equity Portfolio	$	265,019
Domini European Social Equity Portfolio		311,102
Domini PacAsia Social Equity Portfolio		65,561
Domini European PacAsia Social Equity Portfolio		92,772

These losses are deferred and will be recognized on August 1, 2008, for tax purposes.

Notes to Financial Statements 75

The Funds have accumulated capital loss carryforwards that will expire in the year 2016 as follows:


Domini Social Equity Portfolio	$	68,847
Domini European Social Equity Portfolio		—
Domini PacAsia Social Equity Portfolio		—
Domini European PacAsia Social Equity Portfolio		17,025

To the extent that the Funds realize future net capital gains, those gains will be offset by any unused capital loss carryforwards.

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


													DOMINI
									DOMINI				EUROPEAN PACASIA
					DOMINI				PACASIA				SOCIAL
	DOMINI SOCIAL				EUROPEAN SOCIAL				SOCIAL				EQUITY
	EQUITY PORTFOLIO				EQUITY PORTFOLIO				EQUITY PORTFOLIO				PORTFOLIO
	YEAR		YEAR		YEAR		YEAR		YEAR		YEAR		YEAR		YEAR
	ENDED		ENDED		ENDED		ENDED		ENDED		ENDED		ENDED		ENDED
	JULY 31,		JULY 31,		JULY 31,		JULY 31,		JULY 31,		JULY 31,		JULY 31,		JULY 31,
	2008		2007		2008		2007		2008		2007		2008		2007

Ordinary income	$	20,208	$	7,742	$	520,437	$	135,778	$	28,141	$	1,280	$	31,463	$	9,770
Long-term capital gain		—		2,982		242,584		177		—		—		—		—

Total	$	20,208	$	10,724	$	763,021	$	135,955	$	28,141	$	1,280	$	31,463	$	9,770

5. OTHER ACCOUNTING PRONOUNCEMENTS

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006, and was applied to all open tax years as of the effective date. FIN 48 does not have a material effect on the Funds’ financial statements.

6. SUBSEQUENT EVENT

On September 3, 2008, the Board of Trustees (“Board”) of the Funds approved an Agreement and Plan of Reorganization relating to the reorganization (the “Reorganization”) of shares of the Funds into newly created Class A shares of a corresponding fund of the Domini Social Investment Trust (each, an “Acquiring Fund”). Each Fund and its corresponding Acquiring Fund currently invest all of their respective assets in the same Trust and consequently indirectly invest in the same

76 Notes to Financial Statements

portfolio of securities. Upon the consummation of the Reorganization, Fund shareholders will receive class A shares of the corresponding Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of their shares of the applicable Fund at the time of the Reorganization. The Reorganization is scheduled to take place on November 28, 2008, after the close of business.

The gross expenses paid by shareholders will not increase as a result of the Reorganization. No costs of the Reorganization will be paid by the Funds or the Acquiring Funds. Each Reorganization is expected to be a tax-free transaction for federal income tax purposes and will not trigger any redemption fees.

Notes to Financial Statements 77

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Domini Advisor Trust:

We have audited the accompanying statement of assets and liabilities of Domini Social Equity Portfolio, Domini European Social Equity Portfolio, Domini PacAsia Social Equity Portfolio, and Domini European PacAsia Social Equity Portfolio (formerly Domini EuroPacific Social Equity Portfolio) (collectively the “Funds”), each a series of Domini Advisor Trust, as of July 31, 2008, and the related statements of operations for the year or period then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended, and financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ 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 the investment owned in the Trusts as of July 31, 2008, by correspondence with the record keeper for the Trusts. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned Funds as of July 31, 2008, the results of their operations for the year or period then ended, and the changes in their net assets for each of the years or periods in the two-year period then ended, and financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

September 25, 2008

THE DOMINI FUNDS
TAX INFORMATION (UNAUDITED)
FOR THE YEAR ENDED JULY 31, 2008

The amount of long-term capital gains paid for the year ended July 31, 2008 was as follows:


Domini Social Equity Portfolio		—
Domini European Social Equity Portfolio	$	242,584
Domini PacAsia Social Equity Portfolio		—
Domini European PacAsia Social Equity Portfolio		—

For dividends paid from net investment income during the year ended July 31, 2008, the Funds designated the following as Qualified Dividend Income:


Domini Social Equity Portfolio	$	20,208
Domini European Social Equity Portfolio		189,899
Domini PacAsia Social Equity Portfolio		14,820
Domini European PacAsia Social Equity Portfolio		29,058

For corporate shareholders, 100% of dividends paid from net investment income for the Domini Social Equity Portfolio were eligible for the corporate dividends received deduction.


	FOREIGN TAX PAID				FOREIGN SOURCE INCOME
	TOTAL		PER SHARE		TOTAL		PER SHARE

Domini European Social Equity Portfolio	$	20,017	$	0.05	$	256,924	$	0.70
Domini PacAsia Social Equity Portfolio		2,755		0.02		33,666		0.30
Domini European PacAsia Social Equity Portfolio		3,465		0.03		37,578		0.32

The foreign taxes paid or withheld per share represent taxes incurred by the Funds on interest and dividends received by the Fund from foreign sources. Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. Consult your tax advisor regarding the appropriate treatment of foreign taxes paid.

BOARD OF TRUSTEES’ APPROVAL OF MANAGEMENT AND
SUBMANAGEMENT AGREEMENTS (UNAUDITED)

Domini manages the assets of the Domini Social Equity Trust (the “Equity Trust”); the Domini European Social Equity Trust (the “European Trust”) and each of its feeder funds, the Domini European Social Equity Fund and Domini European Social Equity Portfolio (together with the European Trust, the “European Funds”); the Domini PacAsia Social Equity Trust (the “PacAsia Trust”) and each of its feeder funds, the Domini PacAsia Social Equity Fund and the Domini PacAsia Social Equity Portfolio (together, with the PacAsia Trust, the “PacAsia Funds”); the Domini European PacAsia Social Equity Trust (the “European PacAsia Trust”) and each of its feeder funds, the Domini European PacAsia Social Equity Fund and Domini European PacAsia Social Equity Portfolio (together with the European PacAsia Trust, the “European PacAsia Funds”). Wellington Management Company LLP (“Wellington Management”) is the submanager of the Equity Trust, European Trust, PacAsia Trust and European PacAsia Trust. Set forth below is a discussion of the Board of Trustees’ considerations and determinations with respect to the management and submanagement agreements for the Equity Trust, European Funds, PacAsia Funds and the European PacAsia Funds.

* * *

At a meeting held on April 25, 2008, the Trustees approved the continuance of the management and submanagement agreements for the Equity Trust, European Funds, PacAsia Funds and the European PacAsia Funds. In connection with that meeting, the Trustees reviewed extensive information provided by Domini and Wellington Management regarding, among other things: the nature and quality of services provided; legal, regulatory and compliance matters; the fees to be paid to Domini; the fees to be paid by Domini to Wellington Management; comparable fees paid by other funds; and certain other information.

In reaching their determination to approve the above-referenced agreements, the Trustees considered a variety of factors they believed relevant and balanced a number of considerations. The Trustees did not identify any particular information or factor that was all-important or controlling. The primary factors considered and the conclusions reached are described below.

Equity Trust:

Nature, Quality, and Extent of Services Provided. The Trustees noted that pursuant to the Equity Trust’s management agreement, Domini, subject to the direction of the Board, is responsible for providing advice and guidance with respect to the Equity Trust and for managing the investment of the assets of the Equity Trust, which it does by engaging and overseeing the activities of Wellington Management. They considered

that under the management agreement, Domini is responsible for applying social and environmental screens to a universe of securities. The Trustees considered the scope and quality of the services provided by Wellington Management, such as the provision of the day-to-day portfolio management of the Equity Trust, including making purchases and sales of socially screened portfolio securities consistent with the Equity Trust’s investment objective and policies.

The Trustees considered the professional experience, tenure and qualifications of the portfolio management team and the other senior personnel at Domini and Wellington Management. They also considered Domini’s capabilities and experience in the development and application of social and environmental standards and its reputation and leadership in the socially responsible investment community. In addition, they considered the compliance policies, procedures and record of Domini and Wellington Management. The Trustees concluded that Domini and Wellington Management had the necessary capabilities, resources, and personnel to continue providing services under the management and submanagement agreements.

Investment Results. The Trustees reviewed information provided to them by Domini regarding the investment returns of the Equity Trust for the 6-month, and 1-, 3- and 5-year periods ended February 29, 2008 and December 31, 2007, as well as cumulative performance from inception through February 29, 2008 and December 31, 2007. They considered the performance of the S&P 500 Index, the benchmark for the Equity Trust for the same period, as well as the performance of the peer group. The Trustees noted that the Equity Trust had underperformed the S&P 500 for the relevant periods. The Trustees noted that the Equity Trust had recently transitioned from an index to an active strategy. The Trustees considered the information provided regarding the submanager’s quantitative model and the short tenure of the current submanager. In light of the foregoing, the Trustees concluded that such performance was sufficient to warrant continuance of the management and submanagement agreements.

Fees and Other Expenses. The Trustees considered the management and submanagement fees paid to Domini and Wellington Management with respect to the Equity Trust. The Trustees considered the fees that each of Domini and Wellington Management charges its other clients with similar investment objectives. The Trustees considered that Domini (and not the Equity Trust) pays Wellington Management from its advisory fee. The Trustees considered that the subadvisory fees Wellington Management receives with respect to the Equity Trust were within the general range of the fees it receives with respect to the management of the assets of its other clients. The Trustees reviewed the total expense ratios of the Equity Trust versus the advisory and administrative fees of similar funds, taking into account the agreed-upon waiver of advisory fees, and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment, including the compensation to be paid. Noting that

the total expense ratios of the Equity Trust were slightly higher than the median total expense ratio of a relevant peer group, the Trustees concluded that the management and submanagement fees payable with respect to the Equity Trust were reasonable and supported continuance of the management and submanagement agreements.

Costs of Services Provided and Profitability. The Trustees reviewed information provided to them by Domini concerning the costs borne by and profitability of Domini with respect to the advisory services provided, along with a description of the methodology used by Domini in preparing the profitability information. The Trustees concluded that they were satisfied that Domini’s level of profitability with respect to the Equity Trust was reasonable in view of the nature, quality and extent of services to be provided.

The Trustees also reviewed Wellington Management’s consolidated balance sheet at December 31, 2006 and its pro-forma income statement for the year ended December 31, 2006, which reflected partnership income as if the firm was in corporate form. The pro-forma statement identified the revenues generated by the Equity Trust as a separate item and reflected assumptions and estimates regarding operating expenses. Based on the information provided, the Trustees concluded that they were satisfied that Wellington Management’s level of profitability with respect to the Equity Trust was not excessive in view of the nature, quality and extent of services provided to the Equity Trust.

Economies of Scale. The Trustees also considered whether economies of scale would be realized by Domini and Wellington Management as assets grew and the extent to which economies of scale were reflected in the fees charged under the management and submanagement agreements. The Trustees noted that there were breakpoints in the fees charged under the management and submanagement agreements, and also considered the fee waivers proposed by Domini. They concluded that breakpoints were an effective way to share economies of scale with shareholders and that this was a positive factor in support of approval of the continuance of the management and submanagement agreements.

Other Benefits. The Trustees considered the other benefits that Domini, Wellington Management and their respective affiliates receive from their relationship with the Equity Trust. The Trustees reviewed the character and amount of payments received by Domini and its affiliates in connection with the Equity Trust and the other feeder funds investing in the Equity Trust, including sponsorship fees. The Trustees considered that Domini’s profitability would be lower if the benefits related to distribution fees and sales charges were not received. The Trustees considered the brokerage practices of Domini and Wellington Management, including their use of soft dollar arrangements. The Trustees also considered the intangible benefits that would continue to accrue to Domini, Wellington Management and each of their respective affiliates by virtue of their relationship with Equity Trust and the other Domini funds. The Trustees concluded that the benefits received by

Domini, Wellington Management and their respective affiliates were reasonable and supported the approval of the continuance of the management and submanagement agreements.

European Funds:

Nature, Quality, and Extent of Services Provided. The Trustees noted that pursuant to the European Funds’ management agreements, Domini, subject to the direction of the Board, is responsible for providing advice and guidance with respect to each European Fund and for managing the investment of the assets of the European Trust, which it does by engaging and overseeing the activities of Wellington Management. They considered that under the management agreements, Domini is responsible for applying social and environmental screens to a universe of securities. The Trustees considered the scope and quality of the services provided by Wellington Management, such as the provision of the day-to-day portfolio management of the European Trust, including making purchases and sales of socially screened portfolio securities consistent with the European Trust’s investment objective and policies.

The Trustees considered the professional experience, tenure and qualifications of each of the portfolio management teams and the other senior personnel at Domini and Wellington Management. They also considered Domini’s capabilities and experience in the development and application of social and environmental standards and its reputation and leadership in the socially responsible investment community. In addition, they considered the compliance policies, procedures and record of Domini and Wellington Management. The Trustees concluded that Domini and Wellington Management had the necessary capabilities, resources, and personnel to continue providing services under the management and submanagement agreements.

Investment Results. The Trustees reviewed information provided to them by Domini regarding the investment returns of the European Funds for the 6-month and 1-year periods ended February 29, 2008 and December 31, 2007, as well as cumulative performance from inception and through December 31, 2007 and February 29, 2008. They considered the performance of the MSCI Europe Index, the benchmark for the European Funds, and other relevant benchmarks for the same period, as well as the performance of the peer group. The Trustees noted that the European Funds had underperformed the MSCI Europe Index for the relevant periods except since inception. The Trustees considered the information provided regarding the submanager’s quantitative model and the short tenure of the submanager. In light of the foregoing, the Trustees concluded that such performance was sufficient to warrant continuance of the management and submanagement agreements.

Fees and Other Expenses. The Trustees considered the management and submanagement fees paid to Domini and Wellington Management with respect to the European Funds. The Trustees considered the fees that each

of Domini and Wellington Management charges its other clients with similar investment objectives. The Trustees considered that Domini (and not the European Trust) pays Wellington Management from its advisory fee. The Trustees considered that the subadvisory fees Wellington Management receives with respect to the European Trust were within the general range of the fees it receives with respect to the management of the assets of its other clients. The Trustees reviewed the total expense ratios of each of the European Funds versus the advisory and administrative fees of similar funds, taking into account the agreed-upon waiver of advisory fees, and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment, including the compensation to be paid. Noting that the total expense ratios of the European Funds were lower than the median total expense ratio of a relevant peer group, the Trustees concluded that the management and submanagement fees payable with respect to the European Funds were reasonable and supported continuance of the management and submanagement agreements.

Costs of Services Provided and Profitability. The Trustees reviewed information provided to them by Domini concerning the costs borne by and profitability of Domini with respect to the advisory services provided, along with a description of the methodology used by Domini in preparing the profitability information. The Trustees concluded that they were satisfied that Domini’s level of profitability with respect to the European Funds was reasonable in view of the nature, quality and extent of services to be provided.

The Trustees also reviewed Wellington Management’s consolidated balance sheet at December 31, 2006 and its pro-forma income statement for the year ended December 31, 2006, which reflected partnership income as if the firm was in corporate form. The pro-forma statement identified the revenues generated by the European Trust as a separate item and reflected assumptions and estimates regarding operating expenses. Based on the information provided, the Trustees concluded that they were satisfied that Wellington Management’s level of profitability with respect to the European Trust was not excessive in view of the nature, quality and extent of services provided to the European Trust.

Other Benefits. The Trustees considered the other benefits that Domini, Wellington Management and their respective affiliates receive from their

relationship with the European Funds. The Trustees reviewed the character and amount of payments received by Domini and its affiliates in connection with the European Funds and the other Domini funds. The Trustees considered that Domini’s profitability would be lower if the benefits related to distribution fees and sales charges were not received. The Trustees considered the brokerage practices of Domini and Wellington Management, including their use of soft dollar arrangements. The Trustees also considered the intangible benefits that would continue to accrue to Domini, Wellington Management and each of their respective affiliates by virtue of their relationship with the European Funds and the other Domini funds. The Trustees concluded that the benefits received by Domini, Wellington Management and their respective affiliates were reasonable and supported the approval of the continuance of the management and submanagement agreements.

PacAsia Funds:

Nature, Quality, and Extent of Services Provided. The Trustees noted that pursuant to the PacAsia Funds’ management agreements, Domini, subject to the direction of the Board, is responsible for providing advice and guidance with respect to each PacAsia Fund and for managing the investment of the assets of the PacAsia Trust, which it does by engaging and overseeing the activities of Wellington Management. They considered that under the management agreements, Domini is responsible for applying social and environmental screens to a universe of securities. The Trustees considered the scope and quality of the services provided by Wellington Management, such as the provision of the day-to-day portfolio management of the PacAsia Trust, including making purchases and sales of socially screened portfolio securities consistent with the PacAsia Trust’s investment objective and policies.

Investment Results. The Trustees reviewed information provided to them by Domini regarding the investment returns of the PacAsia Funds for the 6-month and 1-year periods ended February 29, 2008 and December 31, 2007, as well as cumulative performance from inception and through December 31, 2007 and February 29, 2008. They considered the performance of the MSCI AC Asia Pacific Index, the benchmark for the PacAsia Funds, and other relevant benchmarks for the same period, as

well as the performance of the peer group. The Trustees noted that the PacAsia Funds had underperformed the MSCI AC Asia Pacific Index for the relevant periods. The Trustees considered the information provided regarding the submanager’s quantitative model and the short tenure of the submanager. In light of the foregoing, the Trustees concluded that such performance was sufficient to warrant continuance of the management and submanagement agreements.

Fees and Other Expenses. The Trustees considered the management and submanagement fees paid to Domini and Wellington Management with respect to the PacAsia Funds. The Trustees considered the fees that each of Domini and Wellington Management charges its other clients with similar investment objectives. The Trustees considered that Domini (and not the PacAsia Trust) pays Wellington Management from its advisory fee. The Trustees considered that the subadvisory fees Wellington Management receives with respect to the PacAsia Trust were within the general range of the fees it receives with respect to the management of the assets of its other clients. The Trustees reviewed the total expense ratios of each of the PacAsia Funds versus the advisory and administrative fees of similar funds, taking into account the agreed-upon waiver of advisory fees, and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment, including the compensation to be paid. Noting that the total expense ratios of the PacAsia Funds were lower than the median total expense ratio of a relevant peer group, the Trustees concluded that the management and submanagement fees payable with respect to the PacAsia Funds were reasonable and supported continuance of the management and submanagement agreements.

Costs of Services Provided and Profitability. The Trustees reviewed information provided to them by Domini concerning the costs borne by and profitability of Domini with respect to the advisory services provided, along with a description of the methodology used by Domini in preparing the profitability information. The Trustees concluded that they were satisfied that Domini’s level of profitability with respect to the PacAsia Funds was reasonable in view of the nature, quality and extent of services to be provided.

The Trustees also reviewed Wellington Management’s consolidated balance sheet at December 31, 2006 and its pro-forma income statement for the year ended December 31, 2006, which reflected partnership income as if the firm was in corporate form. The pro-forma statement identified the revenues generated by the PacAsia Trust as a separate item and reflected assumptions and estimates regarding operating expenses. Based on the information provided, the Trustees concluded that they were satisfied that Wellington Management’s level of profitability with respect to the PacAsia Trust was not excessive in view of the nature, quality and extent of services provided to the PacAsia Trust.

charged under the management and submanagement agreements. The Trustees noted that there were breakpoints in the fees charged under the management and submanagement agreements, and also considered the fee waivers proposed by Domini. They concluded that breakpoints were an effective way to share economies of scale with shareholders and that this was a positive factor in support of approval of the continuance of the management and submanagement agreements.

Other Benefits. The Trustees considered the other benefits that Domini, Wellington Management and their respective affiliates receive from their relationship with the PacAsia Funds. The Trustees reviewed the character and amount of payments received by Domini and its affiliates in connection with the PacAsia Funds and the other Domini funds. The Trustees considered that Domini’s profitability would be lower if the benefits related to distribution fees and sales charges were not received. The Trustees considered the brokerage practices of Domini and Wellington Management, including their use of soft dollar arrangements. The Trustees also considered the intangible benefits that would continue to accrue to Domini, Wellington Management and each of their respective affiliates by virtue of their relationship with PacAsia Funds and the other Domini funds. The Trustees concluded that the benefits received by Domini, Wellington Management and their respective affiliates were reasonable and supported the approval of the continuance of the management and submanagement agreements.

European PacAsia Funds:

Nature, Quality, and Extent of Services Provided. The Trustees noted that pursuant to the European PacAsia Funds’ management agreements, Domini, subject to the direction of the Board, is responsible for providing advice and guidance with respect to each European PacAsia Fund and for managing the investment of the assets of the European PacAsia Trust, which it does by engaging and overseeing the activities of Wellington Management. They considered that under the management agreements, Domini is responsible for applying social and environmental screens to a universe of securities. The Trustees considered the scope and quality of the services provided by Wellington Management, such as the provision of the day-to-day portfolio management of the European PacAsia Trust, including making purchases and sales of socially screened portfolio securities consistent with the European PacAsia Trust’s investment objective and policies.

Wellington Management had the necessary capabilities, resources, and personnel to continue providing services under the management and submanagement agreements.

Investment Results. The Trustees reviewed information provided to them by Domini regarding the investment returns of the European PacAsia Funds for the 6-month and 1-year periods ended February 29, 2008 and December 31, 2007, as well as cumulative performance from inception and through December 31, 2007 and February 29, 2008. They considered the performance of the MSCI EAFE Index, the benchmark for the European PacAsia Funds, and other relevant benchmarks for the same period, as well as the performance of the peer group. The Trustees noted that the European PacAsia Funds had underperformed the MSCI EAFE Index for the relevant periods. The Trustees considered the information provided regarding the submanager’s quantitative model and the short tenure of the submanager. In light of the foregoing, the Trustees concluded that such performance was sufficient to warrant continuance of the management and submanagement agreements.

Fees and Other Expenses. The Trustees considered the management and submanagement fees paid to Domini and Wellington Management with respect to the European PacAsia Funds. The Trustees considered the fees that each of Domini and Wellington Management charges its other clients with similar investment objectives. The Trustees considered that Domini (and not the European PacAsia Trust) pays Wellington Management from its advisory fee. The Trustees considered that the subadvisory fees Wellington Management receives with respect to the European PacAsia Trust were within the general range of the fees it receives with respect to the management of the assets of its other clients. The Trustees reviewed the total expense ratios of each of the European PacAsia Funds versus the advisory and administrative fees of similar funds, taking into account the agreed-upon waiver of advisory fees, and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment, including the compensation to be paid. Noting that the total expense ratios of the European PacAsia Funds were lower than the median total expense ratio of a relevant peer group, the Trustees concluded that the management and submanagement fees payable with respect to the European PacAsia Funds were reasonable and supported continuance of the management and submanagement agreements.

Costs of Services Provided and Profitability. The Trustees reviewed information provided to them by Domini concerning the costs borne by and profitability of Domini with respect to the advisory services provided, along with a description of the methodology used by Domini in preparing the profitability information. The Trustees concluded that they were satisfied that Domini’s level of profitability with respect to the European PacAsia Funds was reasonable in view of the nature, quality and extent of services to be provided.

The Trustees also reviewed Wellington Management’s consolidated balance sheet at December 31, 2006 and its pro-forma income statement

for the year ended December 31, 2006, which reflected partnership income as if the firm was in corporate form. The pro-forma statement identified the revenues generated by the European PacAsia Trust as a separate item and reflected assumptions and estimates regarding operating expenses. Based on the information provided, the Trustees concluded that they were satisfied that Wellington Management’s level of profitability with respect to the European PacAsia Trust was not excessive in view of the nature, quality and extent of services provided to the European PacAsia Trust.

Other Benefits. The Trustees considered the other benefits that Domini, Wellington Management and their respective affiliates receive from their relationship with the European PacAsia Funds. The Trustees reviewed the character and amount of payments received by Domini and its affiliates in connection with the European PacAsia Funds and the other Domini funds. The Trustees considered that Domini’s profitability would be lower if the benefits related to distribution fees and sales charges were not received. The Trustees considered the brokerage practices of Domini and Wellington Management, including their use of soft dollar arrangements. The Trustees also considered the intangible benefits that would continue to accrue to Domini, Wellington Management and each of their respective affiliates by virtue of their relationship with European PacAsia Funds and the other Domini funds. The Trustees concluded that the benefits received by Domini, Wellington Management and their respective affiliates were reasonable and supported the approval of the continuance of the management and submanagement agreements.

TRUSTEES AND OFFICERS

The following table presents information about each Trustee and each Officer of the Domini Advisor Trust (the “Trust”) and Domini Social Trust (the “Master Trust”) as of July 31, 2008. Asterisks indicate that those Trustees and Officers are “interested persons” (as defined in the Investment Company Act of 1940) of the Trust and Master Trust. Each Trustee and each Officer of the Trust and the Master Trust 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, 7th Floor, New York, NY 10012. Neither the Funds nor the Trusts 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


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



Amy L. Domini* (58) Chair, Trustee, and President of the Trust since 2004 and the Master Trust since 1990	CEO (since 2002), President (2002-2005), and Manager (since 1997), Domini Social Investments LLC; Manager, DSIL Investment Services LLC (since 1998); Manager, Domini Holdings LLC (holding company) (since 2002); Director, Tom’s of Maine, Inc. (natural care products) (2004); Board Member, Progressive Government Institute (nonprofit education on executive branch of the federal government) (2003-2005); Board Member, Financial Markets Center (nonprofit financial markets research and education resources provider) (2002-2004); Trustee, New England Quarterly (periodical) (since 1998); Trustee, Episcopal Church Pension Fund (1994-2006); Private Trustee, Loring, Wolcott & Coolidge Office (fiduciary) (since 1987); Partners for the Common Good (community development nonprofit) (since 2005)		14

Disinterested Trustees


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

Julia Elizabeth Harris (60) Trustee of the Trust since 2004 and the Master Trust since 1999	Director and President, Alpha Global Solutions, LLC (agribusiness) (since 2004); Trustee, Fiduciary Trust Company (financial institution) (2001-2005); Executive Vice President, UNC Partners, Inc. (financial management) (since 1990).		14

Kirsten S. Moy (61) Trustee of the Trust since 2004 and the Master Trust since 1999	Board Member, Community Reinvestment Fund (since 2003); Director, Economic Opportunities Program, The Aspen Institute (research and education) (since 2001); Director, NCB Capital Impact (since 2006).		14

William C. Osborn (64) Trustee of the Trust since 2004 and the Master Trust since 1997	Manager, Massachusetts Green Energy Fund Management 1, LLC (venture capital) (since 2004); Manager, Commons Capital Management LLC (venture capital) (since 2000); Director, Porogen, Inc. (biotechnology) (since 2008); Director, Bandgap Engineering, Inc. (renewable energy technology) (since 2008); Director, GreenTech Media, Inc. (online media) (since 2008); Special Partner/Consultant, Arete Corporation (venture capital) (1999-2007); Director, CTP Hydrogen, Inc. (hydrogen generation technology) (since 2005); Director, World Power Technologies, Inc. (power equipment production) (1999-2004); Director, Investors’ Circle (socially responsible investor network) (1999-2004).		14

Karen Paul (63) Trustee of the Trust since 2004 and the Master Trust since 1997	Visiting Professor, Escuela Graduado Administracion Direccion Empresas, Instituto Tecnologico 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).		14

Disinterested Trustees (continued)


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

Gregory A. Ratliff (48) Trustee of the Trust since 2004 and the Master Trust since 1999	Senior Program Officer, Bill and Melinda Gates Foundation (since 2007); Community Investment Consultant (self-employment) (since 2002).		14

John L. Shields (55) Trustee of the Trust and the Master Trust since 2004	Principal, MainStay Consulting Group LLC (management consulting firm) (since 2006); Director, Adverplex, Inc. (technology company) (since 2008); Advisory Board Member, Vestmark, Inc. (software company) (since 2003); CEO, Open Investing, Inc. (investment advisor) (2006-2007); CEO, Harris Insight Funds Trust (mutual funds) (2005-2006); Managing Director, Navigant Consulting, Inc. (management consulting firm) (2004-2006); Managing Principal, Shields Smith & Webber LLC (management consulting firm) (2002-2004).		14

Officers


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

Megan L. Dunphy* (38) Secretary of the Trust and the Master Trust since 2005	Mutual Fund Counsel, Domini Social Investments LLC (since 2005); Secretary, Domini Funds (since 2005); Counsel, ING (formerly Aetna Financial Services) (financial services) (1999-2004).		N/A

Adam M. Kanzer* (42) Chief Legal Officer of the Trust since 2004 and the Master Trust since 2003 Vice President of the Trust and Master Trust since 2007	Managing Director (since 2007), General Counsel and Director of Shareholder Advocacy (since 1998) and Chief Compliance Officer (April 2005-May 2005), Domini Social Investments LLC; Chief Legal Officer (since 2003), Chief Compliance Officer (April 2005-July 2005), Vice President (since 2007), Domini Funds.		N/A

Officers (continued)


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

Carole M. Laible* (44) Treasurer of the Trust since 2004 and the Master Trust since 1997 Vice President of the Trust and Master Trust since 2007	President (since 2005), Member (since 2006), 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; Treasurer (since 1997), Vice President (since 2007), Domini Funds.	N/A

Douglas Lowe* (52) Assistant Secretary of the Trust and the Master Trust since 2007	Senior Compliance Manager and Counsel, Domini Social Investments LLC (since 2006); Assistant Secretary, Domini Funds (since 2007); Executive Director, Morgan Stanley (2002-2005).	N/A

Steven D. Lydenberg* (62) Vice President of the Trust since 2004 and the Master Trust since 1990	Chief Investment Officer (since 2003) and Member (since 1997), Domini Social Investments LLC; Vice President, Domini Funds (since 1990); Director (1990-2003), KLD Research & Analytics, Inc. (social research provider).	N/A

Meaghan T. O’Rourke* (28) Assistant Secretary of the Trust and the Master Trust since 2007	Compliance Associate (since 2005), Institutional Client Relationships Associate (2004-2005), Administrative Assistant (2002-2004), Domini Social Investments LLC; Assistant Secretary, Domini Funds (since 2007).	N/A

Christina Povall* (38) Assistant Treasurer of the Trust and the Master Trust since 2007	Director of Finance, Domini Social Investments LLC (since 2004); Assistant Treasurer, Domini Funds (since 2007); Senior Manager, PricewaterhouseCoopers LLP (independent registered public accounting firm) (1999-2004).	N/A

Officers (continued)


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


Maurizio Tallini* (34) Chief Compliance Officer of the Trust and the Master Trust since 2005 Vice President of the Trust and Master Trust since 2007	Member (since August 2007), Managing Director (since 2007), Chief Compliance Officer (since 2005), Domini Social Investments LLC; Vice President (since 2007), Chief Compliance Officer (since 2005), Domini Funds; Venture Capital Controller, Rho Capital Partners (venture capital) (2001-2005).	N/A

The Funds’ Statement of Additional Information includes additional information about the Trustees and is available without charge, upon request, by calling the following toll-free number: 1-800-217-0017.

PROXY VOTING INFORMATION

The Domini Funds have established Proxy Voting Policies and Procedures that the Funds use to determine how to vote proxies relating to portfolio securities. 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 http://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 http://www.sec.gov.

QUARTERLY PORTFOLIO SCHEDULE INFORMATION

The Domini Funds 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 are available on the EDGAR database on the SEC’s website at http://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 is also available to be viewed at www.domini.com.

P.O. Box 9785 | Providence, RI 02940
1-800-498-1351 | www.domini.com

Domini Social Equity Portfolio^SMClass A
CUSIP 257130104 | DSEPX

Domini European Social Equity Portfolio^SM Class A
CUSIP 257130203 | DEEPX

Domini PacAsia Social Equity Portfolio^SM Class A
CUSIP 257130302 | DPAPX

Domini European PacAsia Social Equity Portfolio^SM Class A
CUSIP 257130401 | DUPPX

100% recycled, 40% post-consumer waste, processed chlorine free, printed with soy-based inks

DOMINI FUNDS

P.O. Box 9785

Providence, RI 02940-9785

1-800-582-6757

www.domini.com

Investment Manager and/or Sponsor:

Domini Social Investments LLC

536 Broadway, 7th Floor

New York, NY 10012

Investment Submanager:

Domini Social Equity Trust

Domini European Social Equity Trust

Domini PacAsia Social Equity Trust

Domini European PacAsia Social Equity Trust

Wellington Management Company, LLP

75 State Street

Boston, MA 02109

Distributor:

DSIL Investment Services LLC

536 Broadway, 7th Floor

New York, NY 10012

1-800-762-6814

Transfer Agent:

PNC Global Investment Servicing

(formerly PFPC Inc.)

760 Moore Road

King of Prussia, PA 19406

Custodian:

State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

Independent Registered Public Accounting Firm:

KPMG LLP

99 High Street

Boston, MA 02110

Legal Counsel:

Bingham McCutchen LLP

One Federal Street

Boston, MA 02110

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.

(d) Not applicable.

(e) Not applicable.

(f) Registrant is filing its code of ethics with this report.

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 year ended July 31, 2008 and July 31, 2007, the aggregate audit fees billed to the registrant by KPMG LLP (“KPMG”) for professional services rendered for the audit 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	2008		2007

Domini Social Equity Portfolio	$	15,600	$	14,700
Domini European Social Equity Portfolio	$	15,600	$	14,700
Domini European PacAsia Social Equity Portfolio	$	15,600	$	14,700
Domini PacAsia Social Equity Portfolio	$	15,600	$	14,700

(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, 2008, and July 31, 2007.

There were no audit-related fees billed by KPMG for the fiscal years ended July 31, 2008, and July 31, 2007 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”).

For the fiscal year ended July 31, 2008, and July 31, 2007, 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	2008		2007

Domini Social Equity Portfolio	$	4,450	$	4,200
Domini European Social Equity Portfolio	$	4,450	$	4,200
Domini European PacAsia Social Equity Portfolio	$	4,450	$	4,200
Domini PacAsia Social Equity Portfolio	$	4,450	$	4,200

There were no tax fees billed by KPMG for the fiscal years ended July 31, 2008, and July 31, 2007 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, 2008, and July 31, 2007, for other non-audit services rendered to the registrant.

There were no other fees billed by KPMG for the fiscal years ended July 31, 2008, and July 31, 2007 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) Audit Committee Preapproval Policy: The Registrant’s Audit Committee Preapproval Policy is set forth below:

1. Statement of Principles

The Audit Committee is required to preapprove audit and non-audit services performed for each series of the Domini Social Trust, the Domini Social Investment Trust, the Domini Institutional Trust and the Domini Advisor Trust (each such series, a “Fund” and collectively, the “Funds”) by the independent registered public accountant in order to assure that the provision of such services does not impair the accountant’s independence. The Audit Committee also is required to preapprove non-audit services performed by the Funds’ independent registered public accountant for the Funds’ investment adviser, and certain of the adviser’s affiliates that provide ongoing services to the Funds, if the services to be provided by the accountant relate directly to the operations and financial reporting of the Funds. The preapproval of these services also is intended to assure that the provision of the services does not impair the accountant’s independence.

Unless a type of service to be provided by the independent registered public accountant has received preapproval, it will require separate preapproval by the Audit Committee. Also, any proposed services exceeding preapproved cost levels will require separate preapproval by the Audit Committee. When considering services for preapproval the Audit Committee will take into account such matters as it deems appropriate or advisable, including applicable rules regarding auditor independence.

The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services for the Funds, that have the preapproval of the Audit Committee. The term of any preapproval is 12 months from the date of preapproval, unless the Audit Committee specifically provides for a different period. The Audit Committee will periodically revise the list of preapproved services based on subsequent determinations.

Notwithstanding any provision of this Policy, the Audit Committee is not required to preapprove services for which preapproval is not required by applicable law, including de minimis and grandfathered services.

2. Delegation

The Audit Committee may delegate preapproval authority to one or more of its members. The member or members to whom such authority is delegated shall report any preapproval decisions to the Audit Committee at its next scheduled meeting. By adopting this Policy the Audit Committee does not delegate to management the Audit Committee’s responsibilities to preapprove services performed by the independent auditor.

3. Audit Services

The annual Audit services engagement terms and fees for the Funds will be subject to the preapproval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope or other matters.

In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant preapproval for other Audit services, which are those services that only the independent registered public accountant reasonably can provide. The Audit Committee

has preapproved the Audit services listed in Appendix A. All Audit services not listed in Appendix A must be separately preapproved by the Audit Committee.

4. Audit-Related Services

Audit-related services are assurance and related services for the Funds that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent registered public accountant. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the accountant, and has preapproved the Audit-related services listed in Appendix B. All Audit-related services not listed in Appendix B must be separately preapproved by the Audit Committee.

5. Tax Services

The Audit Committee believes that the independent registered public accountant can provide Tax services to the Funds such as tax compliance, tax planning and tax advice without impairing the accountant’s independence. However, the Audit Committee will not permit the retention of the independent registered public accountant in connection with a transaction initially recommended by the independent registered public accountant, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has preapproved the Tax services listed in Appendix C. All Tax services not listed in Appendix C must be separately preapproved by the Audit Committee.

6. All Other Services

The Audit Committee may grant preapproval to those permissible non-audit services for the Funds classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the accountant. The Audit Committee has preapproved the All Other services listed in Appendix D. Permissible All Other services not listed in Appendix D must be separately preapproved by the Audit Committee.

A list of the SEC’s prohibited non-audit services is attached to this policy as Exhibit 1. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these services and the applicability of exceptions to certain of the prohibitions.

7. Preapproval Fee Levels

Preapproval fee levels for all services to be provided by the independent registered public accountant to the Funds, and applicable non-audit services to be provided by the accountant to the Funds’ investment adviser and its affiliates, will be established periodically by the Audit Committee. Any proposed services exceeding these levels will require specific preapproval by the Audit Committee.

8. Supporting Documentation

With respect to each service that is separately preapproved, the independent auditor will provide detailed back-up documentation, which will be provided to the Audit Committee, regarding the specific services to be provided.

9. Procedures

Requests or applications to provide services that require separate approval by the Audit Committee will be submitted to the Audit Committee by both the independent registered public accountant and the Funds’ treasurer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

Management will promptly report to the Chair of the Audit Committee any violation of this Policy of which it becomes aware.

Appendix A — Audit Committee Preapproval Policy

Preapproved Audit Services
for
October 26, 2007 through October 31, 2008


Service		Fee Range
Statutory audits or financial audits (including tax services associated with non-audit services)		As presented to Audit Committee in a separate engagement letter¹

Services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., consents), and assistance in responding to SEC comment letters		Not to exceed $9,000 per filing

Appendix B — Audit Committee Preapproval Policy

Preapproved Audit-Related Services
for
October 26, 2007 through October 31, 2008


Service		Fee Range
Consultations by Fund management with respect to the accounting or disclosure treatment of securities, transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies		Not to exceed $5,000 per occurrence during the Pre-Approval Period


Service		Fee Range
Review of Funds’ semi-annual financial statements		Not to exceed $2,000 per set of financial statements per fund

Regulatory compliance assistance		Not to exceed $5,000 per quarter

Training Courses		Not to exceed $5,000 per course

Appendix C — Audit Committee Preapproval Policy

Preapproved Tax Services
for
October 26, 2007 through October 31, 2008


Service		Fee Range
Review of federal and state income tax returns and federal excise tax returns for the Funds including assistance and review with excise tax distributions.		As presented to Audit Committee in a separate engagement letter¹

Tax assistance and advice regarding statutory, regulatory or administrative developments		Not to exceed $5,000 for the Funds’ or for the Funds’ investment adviser during the Pre-Approval period

Assistance with custom tax audits and related matters		Not to exceed $15,000 per Fund during the Pre-Approval Period

Tax Training Courses		Not to exceed $5,000 per course during the Pre-Approval Period

M & A tax due diligence services associated with Fund mergers including: review of the target fund’s historical tax filings, review of the target fund’s tax audit examination history, and hold discussions with target management and external tax advisors. Advice regarding the target fund’s overall tax posture and historical and future tax exposures.		Not to exceed $8,000 per merger during the Pre-Approval Period

Tax services related to the preparation of annual PFIC statements and annual Form 5471 (Controlled Foreign Corporation for structured finance vehicles)		Not to exceed $20,000 during the Pre-Approval Period

Appendix D — Audit Committee Preapproval Policy

Preapproved All Other Services
for
October 26, 2007 through October 31, 2008


Service		Fee Range
No other services for the Pre-Approval Period have been specifically preapproved by the Audit Committee.		N/A

Exhibit 1 — Audit Committee Preapproval Policy

Prohibited Non-Audit Services

•

Bookkeeping or other services related to the accounting records or financial statements of the audit client

•

Financial information systems design and implementation

•

Appraisal or valuation services, fairness opinions or contribution-in-kind reports

•

Actuarial services

•

Internal audit outsourcing services

•

Management functions

•

Human resources

•

Broker-dealer, investment adviser or investment banking services

•

Legal services

•

Expert services unrelated to the audit


¹		For new funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing funds, pro-rated in accordance with inception dates as provided in the auditors’ proposal or any engagement letter covering the period at issue. Fees in the engagement letter will be controlling.

(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, 2008, 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 other than KPMG’s full-time, permanent employees is as follows:


Fund	2008

Domini Social Equity Portfolio		0	%
Domini European Social Equity Portfolio		0	%
Domini European PacAsia Social Equity Portfolio		0	%
Domini PacAsia Social Equity Portfolio		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, 2008, were $17,800, and for the fiscal year ended July 31, 2007, were $16,800.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable to the registrant.

Item 6. Schedule of Investments.

(a)

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

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may submit recommendations for nominee to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) Within 90 days prior to the filing of this report on Form N-CSR, Amy L. Thornton, 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. Thornton 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, including ensuring that information required to be disclosed in this report on Form N-CSR is accumulated and communicated to the registrant’s management, including the Ms. Thornton and Ms. Laible, as appropriate to allow timely decisions regarding required disclosures.

(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. 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 ADVISOR TRUST
By:	/s/ Amy L. Thornton
	Amy L. Thornton
	President

Date: October 8, 2008

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. Thornton
	Amy L. Thornton
	President (Principal Executive Officer)

Date: October 8, 2008


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

Date: October 8, 2008

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