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 811-5824 DOMINI SOCIAL INDEX PORTFOLIO (Exact Name of Registrant as Specified in Charter) 536 Broadway, 7th Floor, New York, New York 10012 (Address of Principal Executive Offices) Amy L. Domini Domini Social Investments LLC 536 Broadway, 7th Floor New York, New York 10012 (Name and Address of Agent for Service) Registrant's Telephone Number, including Area Code: 212-217-1100 Date of Fiscal Year End: July 31 Date of Reporting Period: January 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 follows. DOMINI SOCIAL INDEX PORTFOLIO PORTFOLIO OF INVESTMENTS JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE CONSUMER DISCRETIONARY 14.9% American Greetings Corporation, Class A....... 19,100 $ 461,074 AutoZone, Inc. (a) ........... 23,331 2,082,292 Bandag, Inc. ................ 2,400 116,160 Bassett Furniture Industries ................ 3,000 56,550 Black & Decker Corp. ......... 22,400 1,845,760 Bed Bath & Beyond Inc. (a) .................. 81,900 3,299,751 Bob Evans Farms, Inc. ........ 9,300 226,548 Centex Corporation ........... 35,200 2,158,112 Champion Enterprises, Inc. (a) .................. 23,300 251,407 Charming Shoppes, Inc. (a) .................. 29,400 244,020 Circuit City Stores, Inc...... 60,900 872,088 Claire's Stores, Inc. ........ 27,000 557,010 Comcast Corporation, Class A (a) ............... 374,958 12,069,898 Cooper Tire and Rubber Company ................... 22,500 486,225 Dana Corporation ............ 39,500 626,865 Darden Restaurants, Inc. ...................... 44,200 1,306,552 Delphi Automotive Systems Corporation........ 152,500 1,157,475 Disney (Walt) Company (The) ..................... 571,900 16,373,497 Dollar General Corporation .............. 94,451 1,908,855 Dow Jones & Company........... 17,400 663,288 eBay Inc. (a) ................ 184,486 15,035,609 Emmis Communications Corporation, Class A (a) ............... 15,200 267,064 Family Dollar Stores Inc...... 47,000 1,572,150 Fleetwood Enterprises, Inc. (a) .................. 17,400 152,772 Foot Locker, Inc. ........... 39,200 1,055,264 Gaiam, Inc. (a) .............. 2,200 12,166 Gap Inc. ..................... 251,587 5,537,430 Genuine Parts Company ................... 49,600 2,099,568 Harley-Davidson, Inc. ....... 83,200 5,001,152 Harman International Industries, Inc. .......... 18,620 2,265,123 Hartmarx Corporation (a) .......... 8,500 72,675 Home Depot, Inc. (The)........ 620,006 25,581,448 Horton (D.R.), Inc. .......... 66,200 2,633,436 SECURITY SHARES VALUE CONSUMER DISCRETIONARY (Continued) Interface, Inc., Class A (a) ............... 11,400 $ 107,502 Johnson Controls, Inc. ....... 52,700 3,117,732 KB Home ...................... 13,300 1,445,045 Lee Enterprises, Inc. ........ 11,000 490,050 Leggett & Platt, Incorporated .............. 54,700 1,558,950 Limited Brands .............. 109,530 2,595,861 Liz Claiborne, Inc. .......... 30,000 1,258,200 Lowe's Companies, Inc......... 217,300 12,383,927 Mattel, Inc. ................. 114,385 2,224,788 May Department Stores Company ................... 80,800 2,739,120 Maytag Corporation ........... 22,600 355,046 McDonald's Corporation .............. 348,000 11,271,720 McGraw-Hill Companies ................. 54,000 4,887,000 Media General, Inc., Class A ................... 6,800 434,996 Men's Wearhouse, Inc. (a) .................. 10,600 352,662 Meredith Corporation ......... 11,700 561,951 Modine Manufacturing Company ................... 8,700 274,311 New York Times Company, Class A .......... 41,800 1,625,184 Newell Rubbermaid, Inc. ...................... 77,178 1,660,871 Nordstrom, Inc. .............. 38,700 1,867,275 Omnicom Group, Inc. .......... 52,700 4,473,703 Oshkosh B'Gosh, Inc., Class A ................... 2,700 52,515 Penney (J.C.) Company, Inc. ...................... 78,700 3,362,064 Pep Boys -- Manny, Moe & Jack .................... 14,000 241,080 Phillips-Van Heusen Corporation .............. 7,200 195,912 Pixar (a) .................... 15,700 1,368,569 Pulte Homes, Inc. ............ 35,000 2,312,800 Radio One, Inc. (a) .......... 5,800 90,480 RadioShack Corporation .............. 44,300 1,467,216 Reebok International Ltd. ...................... 15,800 703,574 Ruby Tuesday, Inc. ........... 19,200 488,448 Russell Corporation ......... 8,300 149,400 Scholastic Corporation (a) .......... 9,700 332,225 1 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE CONSUMER DISCRETIONARY (Continued) Scripps (E.W.) Company (The), Class A........... 35,200 $ 1,631,872 Sears, Roebuck and Co....... 58,800 2,954,700 Snap-On Incorporated........ 15,050 498,306 Spartan Motors, Inc. ....... 3,100 34,286 Stanley Works .............. 23,600 1,122,416 Staples, Inc. ............. 140,323 4,594,175 Starbucks Corporation (a) ........ 111,200 6,004,800 Stride Rite Corporation..... 10,800 132,192 Target Corporation ........ 252,500 12,819,425 Timberland Company (The) (a) ............... 8,800 578,512 Time Warner, Inc. (a) ..... 1,227,900 22,102,200 TJX Companies, Inc. ........ 142,300 3,563,192 Toys 'R' Us, Inc. (a) ...... 60,520 1,298,154 Tribune Company ........... 88,656 3,544,467 Tupperware Corporation ............ 15,000 301,650 Univision Communications, Inc., Class A (a) ....... 71,000 1,939,010 Valassis Communications Inc. (a) ................ 13,600 461,720 Value Line, Inc. .......... 2,600 108,576 Visteon Corporation ........ 34,000 252,280 Washington Post Company, Class B ........ 2,200 2,011,900 Wendy's International, Inc. .................... 32,100 1,258,961 Whirlpool Corporation....... 18,500 1,262,809 ------------ 242,975,064 ------------ CONSUMER STAPLES 12.6% Alberto-Culver Company, Class B ........ 26,050 1,413,213 Albertson's, Inc. .......... 102,700 2,349,776 Avon Products, Inc. ........ 133,200 5,623,704 Campbell Soup Company ................. 114,100 3,345,412 Church & Dwight Co., Inc. .................... 17,700 609,411 Clorox Company ............. 60,000 3,565,200 Coca-Cola Company .......... 682,000 28,296,180 Colgate-Palmolive Company ................. 148,200 7,786,428 Costco Wholesale Corporation ............ 128,730 6,085,067 CVS Corporation ............ 111,100 5,149,485 Estee Lauder Companies, Inc. (The), Class A........... 34,400 1,552,816 SECURITY SHARES VALUE CONSUMER STAPLES (Continued) General Mills Incorporated ............ 106,300 $ 5,632,837 Gillette Company ........... 277,238 14,061,511 Green Mountain Coffee, Inc. (a) ........ 1,800 44,010 Hain Celestial Group, Inc. (The) (a) .......... 8,700 175,044 Heinz (H.J.) Company ....... 97,600 3,690,256 Hershey Foods Corporation ............ 55,800 3,263,742 Kellogg Company ............ 115,400 5,151,456 Kimberly-Clark Corporation ............ 134,664 8,821,839 Kroger Company (a) ......... 206,100 3,524,310 Longs Drug Stores Corporation ............ 9,900 259,974 McCormick & Company, Inc. ........... 33,800 1,256,346 Nature's Sunshine Products, Inc. .......... 4,200 84,210 PepsiAmericas, Inc. ........ 39,000 828,750 PepsiCo, Inc. .............. 472,570 25,377,009 Procter & Gamble Company ................. 708,800 37,729,424 Safeway Inc. (a) ........... 123,000 2,318,550 Smucker (J.M.) Company ................. 16,805 783,953 SUPERVALU, Inc. ............ 36,900 1,166,409 Sysco Corporation .......... 178,600 6,245,642 Tootsie Roll Industries, Inc. .................... 9,649 310,408 United Natural Foods, Inc. (a) ................ 10,000 316,100 Walgreen Company ........... 283,100 12,062,891 Whole Foods Market, Inc. .................... 17,200 1,538,024 Wild Oats Markets, Inc. (a) ................ 6,550 47,488 Wrigley (Wm.) Jr. Company ................. 51,300 3,611,007 ------------ 204,077,882 ------------ ENERGY 1.8% Anadarko Petroleum Corporation ............ 69,885 4,627,086 Apache Corporation ......... 91,924 5,002,504 Cooper Cameron Corp. (a) ............... 15,600 879,996 Devon Energy Corporation ............ 134,344 5,463,770 EOG Resources, Inc. ........ 32,800 2,435,400 Helmerich & Payne, Inc. .................... 13,000 492,700 2 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE ENERGY (Continued) Kinder Morgan, Inc. ......... 34,400 $2,581,376 Noble Energy, Inc. ......... 16,300 964,471 Pioneer Natural Resources Company......... 40,100 1,539,439 Rowan Companies, Inc. (a) ................. 29,200 822,272 Sunoco, Inc. ................ 21,100 1,846,039 Williams Companies, Inc. ..................... 147,500 2,479,475 ---------- 29,134,528 ---------- FINANCIALS 23.4% AFLAC, Inc. ................. 141,300 5,582,763 Allied Capital Corporation ............. 36,100 924,521 AMBAC Financial Group, Inc. .............. 29,900 2,298,712 American Express Company .................. 353,800 18,875,230 American International Group, Inc. .............. 726,376 48,151,465 AmSouth Bancorporation .......... 97,800 2,439,132 BB&T Corporation ............ 152,900 6,034,963 Capital One Financial Corporation ............. 67,500 5,283,900 Cathay General Bancorp .................. 12,990 471,927 Chittenden Corporation ............. 13,220 358,394 Chubb Corporation .......... 53,600 3,992,128 Cincinnati Financial Corporation ............. 47,274 2,085,729 Comerica Incorporated........ 48,500 2,806,210 Edwards (A.G.), Inc. ....... 22,887 976,359 Fannie Mae .................. 270,165 17,447,256 Fifth Third Bancorp ........ 162,411 7,547,239 First Horizon National Corporation ............. 34,400 1,464,408 FirstFed Financial Corp. (a) ................ 4,500 239,400 Franklin Resources, Inc...... 69,500 4,716,270 Freddie Mac ................. 190,400 12,431,216 GATX Corporation ............ 12,600 375,228 General Growth Properties, Inc. ......... 61,900 1,966,563 Golden West Financial ....... 85,600 5,531,472 Hartford Financial Services Group (The)...... 81,700 5,497,593 Heartland Financial USA, Inc. ................ 4,200 88,494 Janus Capital Group Inc. ..................... 68,026 1,008,826 SECURITY SHARES VALUE FINANCIALS (Continued) Jefferson-Pilot Corporation ............. 39,325 $1,962,318 KeyCorp .................... 113,400 3,789,828 Lincoln National Corporation ............. 49,800 2,297,772 Marsh & McLennan Companies, Inc. .......... 144,700 4,702,750 MBIA, Inc. ................. 40,600 2,425,444 MBNA Corporation ............ 356,675 9,480,422 Medallion Financial Corp. .................... 4,300 39,861 Mellon Financial Corporation ............. 118,600 3,480,910 Merrill Lynch & Co., Inc. ..................... 259,060 15,561,734 MGIC Investment Corporation ............. 27,600 1,763,640 Moody's Corporation ......... 41,300 3,460,114 Morgan (J.P.) Chase & Co. .................... 993,212 37,076,604 National City Corporation ............. 182,800 6,498,540 Northern Trust Corporation ............. 61,200 2,670,768 PNC Financial Services Group .................... 78,700 4,239,569 Progressive Corporation (The) .................... 56,000 4,684,400 Providian Financial Corporation (a) ......... 82,200 1,371,096 SAFECO Corporation .......... 39,500 1,828,850 Schwab (Charles) Corporation ............. 384,400 4,320,656 SLM Corporation ............. 121,400 6,093,066 Sovereign Bancorp, Inc....... 96,000 2,183,040 St. Paul Travelers Companies, Inc. (The) .................... 186,764 7,011,121 State Street Corporation ............. 94,300 4,225,583 SunTrust Banks, Inc. ........ 100,100 7,209,202 Synovus Financial Corporation ............. 87,450 2,372,519 U.S. Bancorp ................ 523,721 15,737,816 UnumProvident Corporation ............. 80,900 1,389,053 Wachovia Corporation......... 447,943 24,569,674 Wainwright Bank & Trust Company .......... 2,500 30,725 Washington Mutual, Inc. ..................... 243,904 9,841,525 Wells Fargo & Company .................. 470,706 28,854,277 3 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE FINANCIALS (Continued) Wesco Financial Corporation .............. 1,900 $ 722,000 ----------- 380,490,275 ----------- HEALTH CARE 12.9% Affymetrix, Inc. (a) ......... 16,700 687,372 Allergan, Inc. ............... 36,105 2,742,175 Amgen, Inc. (a) .............. 353,200 21,983,168 Bard (C.R.), Inc. ............ 28,400 1,925,520 Bausch & Lomb Incorporated .............. 15,300 1,115,217 Baxter International, Inc. ...................... 171,800 5,799,968 Becton Dickinson and Company ................... 70,100 3,971,165 Biogen Idec Inc. (a) ......... 93,250 6,057,520 Biomet, Inc. ................ 71,100 3,020,328 Boston Scientific Corporation (a) .......... 232,500 7,686,450 CIGNA Corporation ............ 39,300 3,153,825 Cross Country Healthcare, Inc. (a) ..... 8,600 142,416 Forest Laboratories, Inc. (a) .................. 103,600 4,302,508 Genzyme Corporation (a) .......... 63,500 3,696,335 Guidant Corporation ......... 88,538 6,418,120 Hillenbrand Industries, Inc. ...................... 17,000 923,610 Humana, Inc. (a) ............ 42,900 1,470,183 IMS Health, Inc. ............. 66,813 1,562,088 Invacare Corporation ........ 7,700 358,358 Invitrogen Corporation (a) .......... 14,500 996,295 Johnson & Johnson ............ 827,370 53,530,839 King Pharmaceuticals Inc. (a) .................. 66,200 695,762 Manor Care, Inc. ............ 24,700 853,385 McKesson HBOC, Inc. .......... 81,320 2,804,727 MedImmune, Inc. (a) ......... 69,800 1,651,119 Medtronic, Inc. .............. 337,100 17,694,379 Merck & Co., Inc. ............ 619,100 17,365,755 Millipore Corporation (a) .......... 13,700 596,361 Mylan Laboratories, Inc....... 75,475 1,255,149 St. Jude Medical, Inc. (a) .................. 98,400 3,865,152 Stryker Corporation .......... 112,800 5,542,992 Synovis Life Technologies, Inc. (a)..... 2,600 26,494 Thermo Electron Corporation (a) .......... 47,100 1,410,174 SECURITY SHARES VALUE HEALTH CARE (Continued) UnitedHealth Group Incorporated .............. 185,230 $16,466,947 Waters Corporation (a)........ 33,400 1,639,272 Watson Pharmaceuticals (a) ....... 29,200 871,035 Zimmer Holdings, Inc. (a) .................. 68,200 5,377,570 ----------- 209,659,733 ----------- INDUSTRIALS 6.2% 3M Company ................... 218,700 18,449,532 Alaska Air Group, Inc. (a) .................. 6,900 205,551 American Power Conversion ................ 57,700 1,227,279 AMR Corporation (a) .......... 44,400 381,840 Apogee Enterprises, Inc....... 7,400 98,938 Ault, Inc. (a) ............... 1,200 3,252 Avery Dennison Corporation .............. 31,500 1,892,835 Baldor Electric Company ................... 8,800 246,664 Banta Corporation ............ 6,550 283,681 Brady Corporation, Class A ................... 11,000 312,290 Bright Horizons Family Solutions, Inc. (a) ...... 3,200 187,520 CLARCOR, Inc. ................ 6,450 351,332 Cooper Industries, Inc., Class A ................... 26,300 1,827,850 Cross (A.T.) Company (a) ............... 3,800 19,798 Cummins, Inc. ................ 12,100 939,807 Deere & Company .............. 69,400 4,818,442 Delta Air Lines, Inc. (a)..... 32,000 172,480 Deluxe Corporation ........... 13,100 501,337 DeVry, Inc. (a) .............. 18,100 321,094 Donaldson Company, Inc. ...................... 25,400 791,972 Donnelley (R.R.) & Sons Company ................... 61,500 2,057,175 Emerson Electric Company ................... 118,000 7,934,320 Fastenal Company ............. 21,400 1,286,782 FedEx Corporation ............ 83,700 8,005,905 Graco, Inc. .................. 18,552 661,379 Grainger (W.W.), Inc. ........ 26,000 1,591,460 Granite Construction Incorporated .............. 10,625 264,563 Harland (John H.) Company ................... 7,600 276,640 Herman Miller, Inc. .......... 19,300 515,696 HNI Corporation .............. 17,100 689,985 4 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE INDUSTRIALS (Continued) Hubbell Incorporated, Class B ................... 15,160 $ 750,723 Ikon Office Solutions ....... 38,800 417,100 Illinois Tool Works, Inc...... 83,400 7,254,132 Ionics, Inc. (a) ............. 6,200 271,932 JetBlue Airways Corporation (a) .......... 27,300 540,267 Kadant Inc. (a) .............. 3,700 71,410 Kansas City Southern Industries, Inc. (a) ...... 15,700 274,122 Kelly Services, Inc. ........ 8,475 246,623 Lawson Products, Inc. ........ 2,500 124,650 Lincoln Electric Holdings, Inc. ............ 11,000 353,650 Masco Corporation ........... 124,300 4,574,240 Milacron, Inc. (a) ........... 12,633 40,047 Monster Worldwide, Inc. (a) .................. 32,900 1,029,441 Nordson Corporation .......... 10,500 395,115 Norfolk Southern Corporation .............. 109,200 3,813,264 Pitney Bowes, Inc. .......... 64,900 2,903,626 Robert Half International, Inc. ....... 48,400 1,468,456 Ryder System, Inc. .......... 18,000 819,900 Smith (A.O.) Corporation .............. 5,200 140,972 Southwest Airlines Co......... 219,162 3,173,466 SPX Corporation .............. 20,830 872,777 Standard Register Company ................... 6,000 74,940 Steelcase, Inc. .............. 15,500 211,110 Tennant Company .............. 2,300 89,033 Thomas & Betts Corporation (a) .......... 15,100 441,071 Thomas Industries, Inc........ 4,000 155,960 Toro Company ................. 6,400 532,800 Trex Company, Inc. (a)........ 3,700 181,484 United Parcel Service, Inc., Class B ............. 159,233 11,891,519 Yellow Roadway Corporation (a) .......... 14,180 802,871 ----------- 100,234,100 ----------- INFORMATION TECHNOLOGY 20.7% 3Com Corporation (a) ......... 103,000 378,010 Adaptec, Inc. (a) ........... 27,400 164,400 ADC Telecommunications, Inc. (a) .................. 234,000 601,380 Advanced Micro Devices, Inc. (a) ........ 98,300 1,553,140 SECURITY SHARES VALUE INFORMATION TECHNOLOGY (Continued) Advent Software, Inc. (a) .................. 8,500 $ 163,625 Analog Devices, Inc. ......... 105,500 3,786,395 Andrew Corporation (a) .......... 43,800 572,028 Apple Computer, Inc. (a) .................. 106,100 8,159,090 Applied Materials, Inc. (a) .................. 472,400 7,511,160 Arrow Electronics, Inc. (a) .................. 31,600 746,076 Autodesk, Inc. ............... 64,000 1,879,680 Automatic Data Processing, Inc. .......... 165,074 7,177,418 BMC Software, Inc. (a)........ 60,800 1,023,264 Borland Software Corporation (a) .......... 21,100 181,038 CDW Corporation .............. 23,400 1,368,900 Ceridian Corporation (a) .......... 39,700 702,690 Cisco Systems, Inc. (a) ...... 1,885,430 34,013,157 Coherent, Inc. (a) ........... 7,700 231,000 Compuware Corporation (a) .......... 109,800 757,620 Convergys Corporation (a) .......... 42,000 600,180 Dell Inc. (a) ................ 703,700 29,386,512 Dionex Corporation (a)........ 5,600 331,464 Electronic Arts Inc. (a) ..... 84,400 5,430,296 Electronic Data Systems Corporation .............. 142,100 3,043,782 EMC Corporation (a) ......... 675,800 8,852,980 Entegris, Inc. (a) ........... 19,000 168,910 Gerber Scientific, Inc. (a) .................. 5,700 41,154 Hewlett-Packard Company ................... 851,110 16,673,245 Hutchinson Technology Incorporated (a) .......... 6,500 229,450 Imation Corporation .......... 9,100 313,859 Intel Corporation ............ 1,788,600 40,154,070 Lexmark International Group, Inc. (a) ........... 35,600 2,967,260 LSI Logic Corporation (a) .......... 104,200 636,662 Lucent Technologies, Inc. (a) .................. 1,206,292 3,932,512 Merix Corporation (a) ........ 3,750 34,575 Micron Technology, Inc. (a) .................. 169,400 1,763,454 Microsoft Corporation......... 3,030,000 79,628,400 Molex Incorporated ........... 27,646 793,993 5 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE INFORMATION TECHNOLOGY (Continued) National Semiconductor Corporation ............... 99,400 $ 1,682,842 Novell, Inc. (a) .............. 108,100 623,737 Novellus Systems, Inc. (a) ................... 38,300 1,001,545 palmOne, Inc. (a) ............. 13,904 359,766 Paychex, Inc. ................. 104,600 3,189,254 Plantronics Inc. .............. 13,400 498,614 Polycom, Inc. (a) ............ 29,400 508,032 Qualcomm, Inc. ................ 454,300 16,918,132 Red Hat, Inc. (a) ............. 53,700 582,645 Sapient Corporation (a)........ 32,800 258,464 Scientific-Atlanta, Inc. ...... 42,900 1,300,299 Solectron Corporation (a) ........... 262,000 1,302,140 Sun Microsystems, Inc. (a) ................... 931,700 4,062,212 Symantec Corporation (a) ........... 176,200 4,114,270 Tektronix, Inc. ............... 26,900 775,258 Tellabs, Inc. (a) ............ 132,700 944,824 Texas Instruments, Inc......... 478,400 11,103,664 Xerox Corporation (a) ......... 266,200 4,227,256 Xilinx, Inc. ................. 98,200 2,866,458 Yahoo! Inc. (a) ............... 379,060 13,346,703 ----------- 335,618,944 ----------- MATERIALS 1.7% Air Products & Chemicals, Inc. ............ 63,100 3,717,221 Airgas, Inc. .................. 21,600 508,032 Aleris International, Inc. (a) ................... 3,800 63,764 Bemis Company, Inc. ........... 30,400 881,600 Cabot Corporation ............. 17,900 626,500 Calgon Carbon Corporation ............... 10,100 92,920 Caraustar Industries, Inc. (a) ................... 7,200 97,200 Crown Holdings, Inc. (a) ................... 48,900 659,661 Ecolab, Inc. .................. 71,900 2,419,435 Engelhard Corporation.......... 33,500 1,006,675 Fuller (H.B.) Company ......... 7,300 194,691 Lubrizol Corporation ......... 18,100 652,143 MeadWestvaco Corp. ............ 56,712 1,638,410 Minerals Technologies, Inc. ....................... 5,300 331,144 Nucor Corporation ............. 44,900 2,521,584 Praxair, Inc. ................. 90,200 3,892,130 Rock-Tenn Company, Class A .................... 9,000 124,830 Rohm & Haas Company............ 62,787 2,777,697 SECURITY SHARES VALUE MATERIALS (Continued) Schnitzer Steel Industries, Inc., Class A .................... 5,800 $ 199,810 Sealed Air Corporation (a) ........... 23,000 1,179,900 Sigma-Aldrich Corporation ............... 19,900 1,250,715 Sonoco Products Company .................... 28,745 746,220 Valspar Corporation ........... 15,000 735,000 Wausau-Mosinee Paper Corporation ............... 15,700 232,674 Wellman, Inc. ................. 8,200 86,100 Worthington Industries, Inc. ....................... 22,200 454,656 ----------- 27,090,712 ----------- TELECOMMUNICATION SERVICES 4.8% AT&T Corporation ............. 219,216 4,206,755 BellSouth Corporation ......... 506,200 13,282,688 Citizens Communications Company .................... 83,867 1,131,366 SBC Communications, Inc. ....................... 923,928 21,952,529 Sprint Corp. - FON Group ...................... 393,600 9,379,488 Telephone and Data Systems, Inc. .............. 14,500 1,193,640 Verizon Communications ............ 772,122 27,479,822 ----------- 78,626,288 ----------- UTILITIES 0.7% AGL Resources, Inc. .......... 19,300 668,745 Cascade Natural Gas Corporation ............... 2,900 59,276 Cleco Corporation ............. 12,200 240,706 Energen Corporation .......... 9,700 568,808 Equitable Resources, Inc. ....................... 17,900 1,021,016 IDACORP, Inc. ................. 9,700 293,813 KeySpan Corporation ........... 45,200 1,784,044 MGE Energy, Inc. .............. 4,400 158,004 National Fuel Gas Company .................... 21,800 614,760 NICOR, Inc. .................. 11,400 420,888 NiSource, Inc. ................ 73,647 1,686,516 Northwest Natural Gas Company .................... 6,500 220,675 OGE Energy Corporation ............... 22,900 598,835 6 DOMINI SOCIAL INDEX PORTFOLIO / PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 2005 (UNAUDITED) SECURITY SHARES VALUE UTILITIES (Continued) Peoples Energy Corporation ............... 10,900 $ 466,847 Pepco Holdings, Inc. ......... 47,500 1,037,875 Questar Corporation .......... 23,100 1,173,480 Southern Union Company (a) ............... 20,206 471,204 WGL Holdings ................. 12,600 382,536 ---------- 11,868,028 ---------- TOTAL INVESTMENTS -- 99.7% (Cost $1,478,253,796)(b) $1,619,775,554 OTHER ASSETS, LESS LIABILITIES -- 0.3% ......... 4,809,083 -------------- NET ASSETS -- 100.0%. $1,624,584,637 ============== - -------------- (a) Non-income producing security. (b) The aggregate cost for federal income tax purposes is $1,575,062,602, the aggregate gross unrealized appreciation is $300,611,847, and the aggregate gross unrealized depreciation is $255,898,895, resulting in net unrealized appreciation of $44,712,952. Copyright in the Domini 400 Social Index(SM) is owned by KLD Research & Analytics, Inc., and the Index is reproduced here by permission. No portion of the Index may be reproduced or distributed by any means or in any medium without the express written consent of the copyright owner. SEE NOTES TO FINANCIAL STATEMENTS 7 DOMINI SOCIAL INDEX PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 2005 (UNAUDITED) ASSETS: Investments at value (Cost $1,478,253,796) ..................... $1,619,775,554 Cash ........................................................... 3,226,984 Dividends receivable ........................................... 2,124,827 -------------- Total assets ................................................... 1,625,127,365 -------------- LIABILITIES: Management fee payable (Note 2) ................................ 281,013 Other accrued expenses ......................................... 261,715 -------------- Total liabilities .............................................. 542,728 -------------- NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS ......... $1,624,584,637 ============== SEE NOTES TO FINANCIAL STATEMENTS 8 DOMINI SOCIAL INDEX PORTFOLIO STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED) INVESTMENT INCOME: Dividends ..................................... $ 21,539,516 EXPENSES: Management fee (Note 2) ....................... $ 1,598,166 Custody fees (Note 3) ......................... 116,811 Professional fees ............................. 22,227 Trustees fees ................................. 51,397 Miscellaneous ................................. 104,533 ----------- Total expenses ................................ 1,893,134 Fees paid indirectly (Note 3) ................. (42,627) ----------- Net expenses .................................. 1,850,507 ------------ NET INVESTMENT INCOME ........................... 19,689,009 NET REALIZED LOSS ON INVESTMENTS: Proceeds from sales ........................... $50,152,058 Cost of securities sold ....................... (52,657,409) ----------- Net realized loss on investments .............. (2,505,351) NET CHANGES IN UNREALIZED APPRECIATION OF INVESTMENTS: Beginning of period ........................... $57,948,649 End of period ................................. 141,521,758 ----------- Net change in unrealized appreciation ......... 83,573,109 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $100,756,767 ============ SEE NOTES TO FINANCIAL STATEMENTS 9 DOMINI SOCIAL INDEX PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED (UNAUDITED) JULY 31, 2004 INCREASE IN NET ASSETS: FROM OPERATIONS: Net investment income .................................... $ 19,689,009 $ 18,456,783 Net realized loss on investments ......................... (2,505,351) (22,378,148) Net change in unrealized appreciation of investments ............................................. 83,573,109 162,852,493 -------------- -------------- Net Increase in Net Assets Resulting from Operations ..... 100,756,767 158,931,128 -------------- -------------- TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST: Additions ................................................ 137,927,127 318,907,730 Reductions ............................................... (141,012,928) (269,267,844) -------------- -------------- Net Increase/(Decrease) in Net Assets from Transactions in Investors' Beneficial Interests ......... (3,085,801) 49,639,886 -------------- -------------- Total Increase in Net Assets ............................. 97,670,966 208,571,014 NET ASSETS: Beginning of period ...................................... 1,526,913,671 1,318,342,657 -------------- -------------- End of period ............................................ $1,624,584,637 $1,526,913,671 ============== ============== SEE NOTES TO FINANCIAL STATEMENTS 10 DOMINI SOCIAL INDEX PORTFOLIO FINANCIAL HIGHLIGHTS SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED JULY 31, (UNAUDITED) 2004 2003 2002 2001 2000 Net assets (in millions) .......... $ 1,625 $ 1,527 $ 1,318 $ 1,239 $ 1,729 $1,974 Total return ...................... 6.56% 12.01% 12.13% (22.71)% (17.28)% 8.94% Ratio of net investment income to average net assets (annualized) ............. 2.46% 1.25% 1.32% 1.02% 0.78% 0.70% Ratio of expenses to average net assets (annualized) ......... 0.23%(2) 0.24%(2) 0.23%(1)(2) 0.22%(2) 0.22%(2) 0.24%(1)(2) Portfolio turnover rate ........... 3% 8% 8% 13% 19% 9% - -------------------------------------------------------------------------------- (1) Reflects an expense reimbursement and fee waiver by the Manager of 0.01% and 0.002% for the years ended July 31, 2003 and 2000, respectively. Had the Manager not waived its fee and reimbursed expenses, the ratio of expenses to average net assets would have been 0.24% and 0.24% for the years ended July 31, 2003 and 2000, respectively. (2) Ratio of expenses to average net assets includes indirectly paid expenses. Excluding indirectly paid expenses, the expense ratios would have been 0.24%, 0.24%, 0.23%, 0.22%, 0.21%, and 0.21%, for the six months ended January 31, 2005, and for the years ended July 31, 2004, 2003, 2002, 2001, and 2000, respectively. SEE NOTES TO FINANCIAL STATEMENTS 11 DOMINI SOCIAL INDEX PORTFOLIO NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2005 (UNAUDITED) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Domini Social Index Portfolio is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company that was organized as a trust under the laws of the State of New York on June 7, 1989. The Portfolio intends to correlate its investment portfolio as closely as is practicable with the Domini 400 Social Index,SM which is a common stock index developed and maintained by KLD Research & Analytics, Inc. The Declaration of Trust permits the Trustees to issue an unlimited number of beneficial interests in the Portfolio. The Portfolio commenced operations effective on August 10, 1990, and began investment operations on June 3, 1991. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the Portfolio's significant accounting policies. (A) VALUATION OF INVESTMENTS. The Portfolio values securities listed or traded on national securities exchanges at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price which represents the current value of the security. Securities listed on the NASDAQ National Market System are valued using the NASDAQ Official Closing Price (NOCP). If an NOCP is not available for a security listed on the NASDAQ National Market System, the security will be valued at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price. Portfolio securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Portfolio's Board of Trustees. (B) DIVIDEND INCOME. Dividend income is recorded on the ex-dividend date. (C) FEDERAL TAXES. The Portfolio will be treated as a partnership for U.S. federal income tax purposes and is therefore not subject to U.S. federal income tax. As such, each investor in the Portfolio will be taxed on its share of the Portfolio's ordinary income and capital gains. It is intended that the Portfolio will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies. 12 (D) OTHER. Investment transactions are accounted for on the trade date. Gains and losses are determined on the basis of identified cost. 2. TRANSACTIONS WITH AFFILIATES (A) MANAGER. Domini Social Investments LLC (Domini) is registered as an investment adviser under the Investment Advisers Act of 1940. The services provided by Domini consist of investment supervisory services, overall operational support, and administrative services. The administrative services include the provision of general office facilities and supervising the overall administration of the Portfolio. For its services under the Management Agreement, Domini receives from the Portfolio a fee accrued daily and paid monthly at an annual rate equal to 0.20% of the Portfolio's average daily net assets. (B) SUBMANAGER. SSgA Funds Management, Inc. (SSgA) provides investment submanagement services to the Portfolio on a day-to-day basis pursuant to a Submanagement Agreement with Domini. SSgA does not determine the composition of the Domini 400 Social Index.(SM) The Index's composition is determined by KLD Research & Analytics, Inc. 3. INVESTMENT TRANSACTIONS For the six months ended January 31, 2005, cost of purchases and proceeds from sales of investments, other than U.S. government securities and short-term obligations, aggregated $68,589,159 and $50,152,058, respectively. For the six months ended January 31, 2005, custody fees of the Portfolio were reduced by $42,627, which was compensation for uninvested cash left on deposit with the custodian. Domini Social Index Portfolio--Notes to Financial Statements 13 PROXY VOTING INFORMATION The Domini Funds' Proxy Voting Policies and Procedures are available, free of charge, by calling 1-800-762-6814, by visiting www.domini.com/shareholder-advocacy/Proxy-Voting/index.htm, or by visiting the EDGAR database on the Securities and Exchange Commission's (SEC) website at www.sec.gov. All proxy votes cast for the Domini Funds are posted to Domini's website on an ongoing basis over the course of the year. An annual record of all proxy votes cast for the Funds during the most recent 12-month period ended June 30 can be obtained, free of charge, at www.domini.com, and on the EDGAR database on the SEC's website at www.sec.gov. QUARTERLY PORTFOLIO SCHEDULE INFORMATION The Domini Funds 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 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. 14 ITEM 2. CODE OF ETHICS. (a) Not applicable to a semi-annual report. (c) Not applicable. (d) Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to a semi-annual report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to a semi-annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to the registrant. ITEM 6. SCHEDULE OF INVESTMENTS. The Schedule of Investments is included as part of the report to stockholders filed under Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 8. 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 nominees 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. Domini, the registrant's President and Principal Executive Officer, and Carole M. Laible, the registrant's Treasurer and Principal Financial Officer, reviewed the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) of the Investment Company Act of 1940) and evaluated their effectiveness. Based on their evaluation, Ms. Domini and Ms. Laible determined that the disclosure controls and procedures adequately ensure that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods required by the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the 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) Not applicable to a semi-annual report. (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. 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 SOCIAL INDEX PORTFOLIO By: /s/ Amy L. Domini -------------------------------------------------------- Amy L. Domini President Date: April 1, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Amy L. Domini ------------------------------------------------------ Amy L. Domini President (Principal Executive Officer) Date: April 1, 2005 By: /s/ Carole M. Laible ---------------------------------------------------- Carole M. Laible Treasurer (Principal Financial Officer) Date: April 1, 2005
Domini Social Trust Inactive
Filed: 1 Apr 05, 12:00am