NOTES TO FINANCIAL STATEMENTS
January 31, 1999 (unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES. Domini Social Equity Fund (the "Fund") is a Massachusetts
business trust registered under the Investment Company Act of 1940 (the "Act") as an open-end management
investment company. The Fund in- vests substantially all of its assets in the Domini Social Index Portfolio (the
"Portfolio"), an open-end, diversified management investment company hav- ing the same investment objectives
as the Fund. The value of such investment reflects the Fund's proportionate interest in the net assets of the
Portfolio (approximately 82.5% at January 31, 1999). The financial statements of the Portfolio are included
elsewhere in this report and should be read in conjunc- tion with the Fund's financial statements.
The preparation of financial statements in conformity with generally ac- cepted accounting principles requires
management to make estimates and assump- tions that affect the reported amounts of assets and liabilities and
disclo- sure of contingent 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 Fund's significant accounting policies.
A. Valuation of Investments. Valuation of securities by the Portfolio is discussed in Note 1 of the Portfolio's
Notes to Financial Statements which are included elsewhere in this report.
B. Investment Income and Dividends to Shareholders. The Fund earns income daily, net of Portfolio expenses,
on its investments in the Portfolio. Divi- dends to shareholders are declared and paid semiannually from net
investment income. Distributions to shareholders of realized capital gains, if any, are made annually.
C. Federal Taxes. The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to
regulated investment companies and to dis- tribute substantially all of its taxable income, including n