[State Street logo] State Street Research
State Street Research
Growth Fund
Semiannual Report [picture: man climbing -- looking
June 30, 1995 at the sky and stars]
WHAT'S INSIDE
New and Improved:
A new design that's
easier to read
Investment Update:
About the Fund,
economy and markets
Fund Information:
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
<PAGE>
State Street Research Growth Fund
Investment Update
Investment Environment
The Economy
(bullet) Most signs point to a slowing economy. Consumer spending has fallen,
home and auto sales are down, and job growth has eased.
(bullet) The Federal Reserve cut interest rates by one-quarter point on July
6, 1995.
(bullet) Inflation remains low, and a slower economy actually reduces the
risk of rising inflation.
The Markets
(bullet) So far, 1995 has been the best year for stocks since 1991. The S&P
500 was up 20.19% through the first six months of 1995.(1) Small-company
stocks started slowly but have come on strong, with the Russell 2000 Index up
14.42%.(1)
(bullet) Bonds have had an outstanding 1995 as well. The Lehman Brothers
Aggregate Bond Index gained 11.44% through the first six months of 1995.(1)
The Fund
Over the past six months
(bullet) Class A shares of the Fund provided a total return of +24.71% (not
including sales charge) for the 6 months ended June 30, 1995.(2) The average
total return for 606 funds in Lipper Analytical Services' growth fund
category was +17.47% over the same time period (does not reflect sales
charge).
(bullet) Frederick R. Kobrick became the Fund's portfolio manager in February
1995.
(bullet) We sharply increased the Fund's position in technology stocks, and
decreased positions in finance and basic industry stocks.
Current strategy
(bullet) Our current focus is on technology stocks, which have led the market
in 1995. Nearly 25% of the Fund's assets are invested in electronics stocks,
particularly stocks tied to semiconductors and telecommunications.
(bullet) Approximately 8% of the portfolio is invested in airline stocks,
which have benefited from improved profitability.
(bullet) We continue to select stocks for the portfolio on an individual
basis. Our emphasis is on large-cap stocks, although the portfolio does
include smaller-capitalization stocks.
1 The Standard & Poor's 500 Composite Index (S&P 500) includes 500 widely
traded common stocks and is a commonly used measure of U.S. stock market
performance. The Russell 2000 Index includes 2,000 small company stocks and
is a commonly used measure of small stock performance. The Lehman Brothers
Aggregate Bond Index is a commonly used measure of bond market performance.
The indices are unmanaged and do not take sales charges into consideration.
Direct investment in the indices is not possible; results are for
illustrative purposes only.
2 +24.22% for Class B shares; +24.86% for Class C shares; +24.22% for Class D
shares.
3 All returns represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment made in
the Fund will fluctuate and shares, when redeemed, may be worth more or less
than their original cost. All returns assume reinvestment of capital gain
distributions and income dividends. During the periods prior to 1993 that
shares of the Fund were not offered to the general public, the Fund was not
subject to the cash inflows or higher redemptions or expenses that have
occurred since 1993, when the Fund commenced a continuous public offering.
4 Performance for a class includes periods prior to the adoption of class
designations in 1993. Performance reflects up to maximum 4.5% front-end or
5% contingent deferred sales charges. "C" shares, offered without a sales
charge, are available only to certain employee benefit plans and
institutions. Performance prior to class designations in 1993 does not
reflect annual 12b-1 fees of .25% for "A" shares and 1% for "B" and "D"
shares, which will reduce subsequent performance.
Fund Information (all data are for periods ended June 30, 1995)
SEC Average Annual Compound
Rates of Return
(at maximum applicable sales charge)(3,4)
<TABLE>
<CAPTION>
10 5
years years 1 year
<S> <C> <C> <C>
Class A +12.66% +8.33% +20.94%
Class B +12.95% +8.60% +20.37%
Class C +13.22% +9.41% +26.63%
Class D +12.96% +8.91% +24.37%
</TABLE>
Cumulative Total Returns
(do not reflect sales charge)(3)
<TABLE>
<CAPTION>
10 5
years years 1 year
<S> <C> <C> <C>
Class A +244.76% +56.22% +26.64%
Class B +237.87% +53.09% +25.37%
Class C +246.00% +56.78% +26.63%
Class D +238.11% +53.20% +25.37%
</TABLE>
Top 10 Stock Positions
(by percentage of net assets)
1 Nokia Cellular phone maker 4.0%
2 AMR Airline 3.5%
3 Intel Semiconductor maker 3.0%
4 Texas Instruments Electronics company 2.8%
5 Abbott Labs Medical equipment supplier 2.6%
6 L.M. Ericsson Cellular phone maker 2.5%
7 Hewlett-Packard Electronics company 2.2%
8 LSI Logic Computer software firm 2.2%
9 UAL Airline 2.1%
10 Circuit City Electronics retailer 2.1%
These securities represent an aggregate of 27.0% of the portfolio. Because of
active management, there is no guarantee that the Fund currently invests, or
will continue to invest, in the securities listed.
Top 5 Industry Positions
(by percentage of net assets)
Electronics 24.7%
Computer software and service 9.3%
Airlines 8.4%
Retail 7.2%
Office equipment 6.2%
Total net assets: 55.8%
1
<PAGE>
Investment Portfolio
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ -------------
<S> <C> <C>
Common Stocks 96.4%
Basic Industries 1.5%
Electrical Equipment 1.4%
General Electric Co. 58,000 $ 3,269,750
-------------
Machinery 0.1%
AGCO Corp.* 8,100 303,750
-------------
Total Basic Industries 3,573,500
-------------
Consumer Cyclical 27.2%
Airline 8.4%
AMR Corp.* 108,100 8,066,963
Delta Airlines, Inc. 48,400 3,569,500
Southwest Airlines 109,300 2,609,537
UAL Corp.* 34,800 4,880,700
-------------
19,126,700
-------------
Automotive 1.7%
Exide Corp. 89,000 3,827,000
-------------
Hotel & Restaurant 2.9%
Doubletree Corp.* 29,800 642,563
Hospitality Franchise System, Inc.* 69,900 2,420,287
La Quinta Inns, Inc. 78,400 2,116,800
Primadonna Resorts, Inc.* 58,500 1,404,000
-------------
6,583,650
-------------
Recreation 3.3%
Anthony Industries, Inc. 34,500 633,938
Gaylord Entertainment Co. Cl. A 49,665 1,254,041
Infinity Broadcasting Corp. Cl. A* 94,500 3,153,937
Time Warner, Inc. 63,600 2,615,550
-------------
7,657,466
-------------
Retail Trade 7.2%
Bed Bath & Beyond, Inc.* 20,900 495,079
Circuit City Stores, Inc. 154,100 4,873,413
General Nutrition Centers, Inc.* 31,800 1,116,975
Home Depot, Inc. 52,900 2,149,062
Kohl's Corp.* 33,900 1,546,688
Petsmart, Inc.* 43,000 1,236,250
Sunglass Hut International, Inc.* 71,500 2,502,500
Toys "R" Us, Inc.* 39,700 1,161,225
Viking Office Products, Inc.* 34,500 1,263,562
-------------
16,344,754
-------------
Textile & Apparel 3.7%
Men's Wearhouse, Inc.* 104,600 2,876,500
Nautica Enterprises, Inc.* 46,800 1,696,500
Tommy Hilfiger Corp.* 143,700 4,023,600
-------------
8,596,600
-------------
Total Consumer Cyclical 62,136,170
-------------
Consumer Staple 16.1%
Business Service 2.8%
First Data Corp. 36,900 2,098,688
Medaphis Corp.* 131,900 2,868,825
Tellabs, Inc.* 30,900 1,487,062
-------------
6,454,575
-------------
Drug 3.4%
Centocor Corp.* 50,000 715,625
Cephalon, Inc.* 130,000 2,405,000
SmithKline Beecham PLC ADR 77,100 3,488,775
Vertex Pharmaceuticals, Inc.* 70,000 1,146,250
-------------
7,755,650
-------------
Food & Beverage 2.1%
Coca-Cola Co. 61,000 3,888,750
Starbucks Corp.* 23,100 822,938
-------------
4,711,688
-------------
Hospital Supply 3.6%
Abbott Laboratories 144,332 5,845,446
Medtronic, Inc. 32,000 2,468,000
-------------
8,313,446
-------------
Personal Care 2.2%
Colgate-Palmolive Co. 30,400 2,223,000
Procter & Gamble Co. 97,100 2,695,312
-------------
4,918,312
-------------
Printing & Publishing 0.5%
News Corp. Ltd. ADR 50,200 1,135,775
-------------
Tobacco 1.5%
Philip Morris Companies, Inc. 45,700 3,398,938
-------------
Total Consumer Staple 36,688,384
-------------
Energy 1.6%
Oil 1.6%
Louisiana Land & Exploration Co. 55,900 2,229,012
Renaissance Energy Ltd.* 65,800 1,359,356
-------------
3,588,368
-------------
Total Energy 3,588,368
-------------
Finance 4.0%
Bank 1.5%
BankAmerica Corp. 63,900 3,362,738
-------------
Financial Service 1.7%
Countrywide Credit Industries, Inc. 55,000 1,155,000
First USA, Inc. 61,700 2,737,937
-------------
3,892,937
-------------
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Value
Shares (Note 1)
------ -------------
Insurance 0.8%
AMBAC, Inc. 47,900 $ 1,921,988
-------------
Total Finance 9,177,663
-------------
Science & Technology 40.8%
Aerospace 0.6%
Boeing Co. 21,500 1,346,438
-------------
Computer Software & Service 9.3%
Broderbund Software, Inc.* 44,600 2,843,250
Cisco Systems, Inc.* 23,600 1,193,275
Computer Associates International, Inc. 29,300 1,985,075
General Motors Corp. Cl. E 64,500 2,805,750
Intuit, Inc.* 16,800 1,276,800
Maxis, Inc.* 7,100 189,038
Microsoft Corp.* 31,800 2,873,925
Parametric Technology Corp.* 30,400 1,512,400
SAP AG ADR*+ 41,900 1,754,562
3Com Corp.* 17,600 1,179,200
Xilinx, Inc.* 39,200 3,684,800
-------------
21,298,075
-------------
Electronic 24.7%
AMP, Inc. 114,400 4,833,400
ASM Lithography Holdings N.V.* 70,500 2,529,188
Analog Devices, Inc. * 76,500 2,601,000
Applied Materials, Inc.* 47,400 4,106,025
Cypress Semiconductor Corp.* 66,300 2,685,150
DSC Communications Corp.* 80,500 3,743,250
L.M. Ericsson Telephone Co. Cl. B ADR* 280,800 5,616,000
Exide Electronics Group, Inc.* 9,800 225,400
Intel Corp.* 109,600 6,939,050
Lam Research Corp.* 42,900 2,745,600
LSI Logic Corp.* 127,200 4,976,700
Micron Technology, Inc. 50,600 2,776,675
Perkin-Elmer Corp. 35,200 1,249,600
Sanmina Holdings, Inc.* 68,400 2,599,200
Silicon Valley Group, Inc.* 68,400 2,479,500
Texas Instruments, Inc. 47,400 6,345,675
-------------
56,451,413
-------------
Office Equipment 6.2%
Digital Equipment Corp.* 61,200 2,493,900
Hewlett-Packard Co. 68,600 5,110,700
International Business Machines Corp. 23,300 2,236,800
Silicon Graphics, Inc.* 57,300 2,284,837
U.S. Robotics Corp.* 18,500 2,016,500
-------------
14,142,737
-------------
Total Science & Technology 93,238,663
-------------
Utility 5.2%
Telephone 5.2%
Nokia Corp. 155,100 9,247,837
Vodafone Group PLC ADR 68,000 2,575,500
-------------
11,823,337
-------------
Total Utility 11,823,337
-------------
Total Common Stocks (Cost $175,080,103) 220,226,085
-------------
</TABLE>
<TABLE>
<CAPTION>
Principal Maturity
Amount Date
--------- -------
<S> <C> <C> <C>
Commercial Paper 5.0%
Associates Corp. of North
America, 6.00% $7,740,000 7/3/1995 7,740,000
Commerical Credit Co., 5.85% 1,700,000 7/3/1995 1,700,000
Ford Motor Credit Co., 5.97% 823,000 7/5/1995 823,000
Ford Motor Credit Co., 5.90% 1,160,000 7/5/1995 1,160,000
-------------
Total Commercial Paper (Cost $11,423,000) 11,423,000
-------------
Total Investments (Cost $186,503,103)--101.4% 231,649,085
Cash and Other Assets, Less Liabilities--(1.4)% (3,232,686)
-------------
Net Assets--100.0% $228,416,399
=============
Federal Income Tax Information:
At June 30, 1995, the net unrealized appreciation of
investments based on cost for Federal income tax
purposes of $184,493,286 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost $ 49,024,349
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value (1,868,550)
-------------
$ 47,155,799
=============
</TABLE>
* Nonincome-producing securities
ADR stands for American Depositary Receipt, representing ownership of foreign
securities.
+ Security restricted in accordance with Rule 144A under the Securities Act
of 1933, which allows for the resale of such securities among certain
qualified institutional buyers. The total cost and market value of Rule 144A
securities owned at June 30, 1995 were $1,534,790 and $1,754,562 (0.77% of
net assets), respectively.
The accompanying notes are in integral part of the financial statements.
3
<PAGE>
Statement of Assets and Liabilities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investments, at value (Cost $186,503,103) (Note 1) $231,649,085
Cash 168
Receivable for securities sold 2,039,389
Dividends and interest receivable 202,034
Receivable for fund shares sold 112,791
Other assets 19,649
-------------
234,023,116
Liabilities
Payable for securities purchased 4,756,401
Dividend payable 629,844
Accrued management fee (Note 2) 94,101
Accrued transfer agent and shareholder services
(Note 2) 20,419
Accrued trustees' fees (Note 2) 13,241
Payable for fund shares redeemed 7,027
Accrued distribution fee (Note 4) 3,912
Other accrued expenses 81,772
-------------
5,606,717
-------------
Net Assets $228,416,399
=============
Net Assets consist of:
Undistributed net investment income $ 94,444
Unrealized appreciation of investments 45,145,982
Accumulated net realized gain 28,752,568
Shares of beneficial interest (Note 5) 154,423,405
-------------
$228,416,399
=============
Net Asset Value and redemption price per share of
Class A shares ($1,164,015 / 132,039 shares of
beneficial interest) $8.82
=============
Maximum Offering Price per share of Class A shares
($8.82 / .955) $9.24
=============
Net Asset Value and offering price per share of
Class B shares ($3,849,040 / 441,276 shares of
beneficial interest)* $8.72
=============
Net Asset Value, offering price and redemption
price per share of Class C shares ($222,463,053 /
25,247,777 shares of beneficial interest) $8.81
=============
Net Asset Value and offering price per share of
Class D shares ($940,291 / 107,877 shares of
beneficial interest)* $8.72
=============
</TABLE>
* Redemption price per share for Class B and Class D is equal to net asset
value less any applicable contingent deferred sales charge.
Statement of Operations
For the six months ended June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Dividends, net of foreign taxes of $20,566 $ 1,343,855
Interest 145,715
-----------
1,489,570
Expenses
Management fee (Note 2) 491,742
Custodian fee 61,082
Transfer agent and shareholder services (Note 2) 35,605
Registration fees 30,614
Audit fee 17,828
Trustees' fees (Note 2) 17,149
Reports to shareholders 15,711
Distribution fee--Class A (Note 4) 1,107
Distribution fee--Class B (Note 4) 11,109
Distribution fee--Class D (Note 4) 2,845
Miscellaneous 15,241
-----------
700,033
-----------
Net investment income 789,537
-----------
Realized and Unrealized Gain on Investments
Net realized gain on investments (Notes 1 and 3) 28,828,928
Net unrealized appreciation of investments 16,358,521
-----------
Net gain on investments 45,187,449
-----------
Net increase in net assets resulting from operations $45,976,986
===========
</TABLE>
The accompanying notes are in integral part of the financial statements.
4
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six months
ended
June 30, Year ended
1995 December 31,
(Unaudited) 1994
------------ ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 789,537 $ 1,769,499
Net realized gain on investments* 28,828,928 25,250,259
Net unrealized appreciation (depreciation)
of investments 16,358,521 (35,361,052)
------------ ----------------
Net increase (decrease) resulting from
operations 45,976,986 (8,341,294)
------------ ----------------
Dividends from net investment income:
Class A (2,898) (4,236)
Class C (756,996) (1,816,088)
------------ ----------------
(759,894) (1,820,324)
------------ ----------------
Distribution from net realized gains:
Class A -- (92,832)
Class B -- (200,276)
Class C -- (25,837,209)
Class D -- (48,227)
------------ ----------------
-- (26,178,544)
------------ ----------------
Net decrease from fund share transactions
(Note 5) (5,555,791) (27,522,240)
------------ ----------------
Total increase (decrease) in net assets 39,661,301 (63,862,402)
Net Assets
Beginning of period 188,755,098 252,617,500
------------ ----------------
End of period (including undistributed net
investment income of $94,444 and $64,801,
respectively) $228,416,399 $188,755,098
============ ================
* Net realized gain for Federal income tax
purposes (Note 1) $ 30,235,877 $ 26,178,544
============ ================
</TABLE>
Notes to Unaudited Financial Statements
Note 1
State Street Research Growth Fund (the "Fund"), is a series of State Street
Research Growth Trust, formerly State Street Growth Trust (the "Trust"),
which is a Massachusetts business trust registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company. The Trust was organized in February, 1989 as a successor to State
Street Growth Fund, Inc., a Massachusetts corporation. The Fund is presently
the only series of the Trust.
The Fund offers four classes of shares. Class A shares are subject to an
initial sales charge of up to 4.50% and pay a service fee equal to 0.25% of
average daily net assets. Class B shares are subject to a contingent deferred
sales charge on certain redemptions made within five years of purchase and
pay annual distribution and service fees of 1.00%. Class B shares
automatically convert into Class A shares (which pay lower ongoing expenses)
at the end of eight years after the issuance of the Class B shares. Class C
shares are only offered to certain employee benefit plans and large
institutions. No sales charge is imposed at the time of purchase or
redemption of Class C shares. Class C shares do not pay any distribution or
service fees. Class D shares are subject to a contingent deferred sales
charge of 1.00% on any shares redeemed within one year of their purchase.
Class D shares also pay annual distribution and service fees of 1.00%. The
Fund's expenses are borne pro-rata by each class, except that each class
bears expenses, and has exclusive voting rights with respect to provisions of
the Plan of Distribution, related specifically to that class. The Trustees
declare separate dividends on each class of shares.
The following significant policies are consistently followed by the Fund in
preparing its financial statements, and such policies are in conformity with
generally accepted accounting principles for investment companies.
A. Investments in Securities
Values for listed securities represent the last sale on national securities
exchanges quoted prior to the close of the New York Stock Exchange.
Over-the-counter securities quoted on the National Association of Securities
Dealers Automated Quotation ("NASDAQ") system are valued at the closing price
supplied through such system. In the absence of recorded sales and for those
over-the-counter securities not quoted on the NASDAQ system, valuations are
at the mean of the closing bid and asked quotations, except for securities
that may be restricted as to public resale, which are valued in accordance
with methods adopted by the Trustees. Security transactions are accounted for
on the trade date (date the order to buy or sell is executed), and dividends
declared but not received are accrued on the ex-dividend date. Interest
income is determined on the accrual basis. Realized gains and losses from
security transactions are reported on the basis of identified cost of
securities delivered.
The accompanying notes are in integral part of the financial statements.
5
<PAGE>
Notes (cont'd)
B. Federal Income Taxes
No provision for Federal income taxes is necessary since the Fund has elected
to qualify under Subchapter M of the Internal Revenue Code and its policy is
to distribute all of its taxable income, including net realized capital
gains, within the prescribed time periods. It is also the intention of the
Fund to distribute an amount sufficient to avoid imposition of any Federal
Excise Tax under Section 4982 of the Internal Revenue Code.
C. Dividends
Dividends from net investment income, if any, are declared and paid or
reinvested semiannually. Net realized capital gains are distributed annually.
Income dividends and capital gain distributions are determined in accordance
with Federal income tax regulations which may differ from generally accepted
accounting principles. The difference is primarily due to differing
treatments for nontaxable redemptions in kind and the disposition of
securities that have different bases for financial reporting and tax
purposes.
Note 2
The Trust and State Street Research & Management Company (the "Adviser"), an
indirect wholly-owned subsidiary of Metropolitan Life Insurance Company
("Metropolitan"), have entered into a contract that provides for an annual
fee equal to 0.475% of the Fund's average daily net assets. In consideration
of these fees, the Adviser furnishes the Fund with management, investment
advisory, statistical and research facilities and services. The Adviser also
pays all salaries, rent and certain other expenses of management. The fees of
the Trustees not currently affiliated with the Adviser amounted to $17,149
during the six months ended June 30, 1995.
State Street Research Shareholder Services, a division of State Street
Research Investment Services, Inc., the Trust's principal underwriter (the
"Distributor"), an indirect wholly-owned subsidiary of Metropolitan, provides
certain shareholder services to the Fund such as responding to inquiries and
instructions from investors with respect to the purchase and redemption of
shares of the Fund. During the six months ended June 30, 1995, the amount of
such expenses was $8,118.
Note 3
For the six months ended June 30, 1995, exclusive of short-term investments
and U.S. Government obligations, purchases and sales of securities aggregated
$200,321,708 and $212,510,494, respectively.
Note 4
The Fund has adopted a Plan of Distribution pursuant to Rule 12b-1 (the
"Plan") under the Investment Company Act of 1940, as amended. Under the Plan,
the Fund pays annual service fees to the Distributor at a rate of 0.25% of
average daily net assets for Class A, Class B and Class D shares. In
addition, the Fund pays annual distribution fees of 0.75% of average daily
net assets for Class B and Class D shares. The Distributor uses such payments
to reimburse securities dealers for distribution and marketing services, to
furnish ongoing assistance to investors and to defray a portion of its
distribution and marketing expenses. For the six months ended June 30, 1995,
fees pursuant to such plan amounted to $1,107, $11,109 and $2,845 for Class
A, Class B and Class D, respectively.
The Fund has been informed that the Distributor and MetLife Securities, Inc.,
a wholly-owned subsidiary of Metropolitan earned initial sales charges
aggregating $330 and $16, respectively, on sales of Class A shares of the
Fund during the six months ended June 30, 1995, and that MetLife Securities,
Inc. earned commissions aggregating $1,176 on sales of Class B shares, and
that the Distributor collected contingent deferred sales charges of $4,077
and $500 on redemptions of Class B and Class D shares, respectively during
the same period.
6
<PAGE>
Notes (cont'd)
Note 5
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
At June 30, 1995, the Adviser owned one share each of Class A, Class B and
Class D of the Fund.
Share transactions were as follows:
<TABLE>
<CAPTION>
Six months ended
June 30, 1995 Year ended
(Unaudited) December 31, 1994
------------------------- ----------------------------
Class A Shares Amount Shares Amount
------------------------------------- ---------- ----------- ---------- --------------
<S> <C> <C> <C> <C>
Shares sold 47,381 $ 376,430 47,443 $ 391,810
Issued upon reinvestment of:
Distribution from net realized gains -- -- 11,437 81,091
Dividends from net investment income 315 2,777 341 2,582
Shares redeemed (17,054) (131,701) (28,715) (237,146)
---------- ----------- ---------- --------------
Net increase 30,642 $ 247,506 30,506 $ 238,337
========== =========== ========== ==============
Class B Shares Amount Shares Amount
------------------------------------- ---------- ----------- ---------- --------------
Shares sold 246,827 $ 2,004,592 95,509 $ 797,077
Issued upon reinvestment of
distribution from net realized gains -- -- 26,274 184,443
Shares redeemed (25,479) (199,181) (18,494) (152,620)
---------- ----------- ---------- --------------
Net increase 221,348 $ 1,805,411 103,289 $ 828,900
========== =========== ========== ==============
Class C Shares Amount Shares Amount
------------------------------------- ---------- ----------- ---------- --------------
Shares sold 8,880 $ 71,877 1,054 $ 8,692
Issued upon reinvestment of:
Distribution from net realized gains -- -- 1,137,980 7,887,572
Dividends from net investment income 12,393 109,179 33,456 250,211
Shares redeemed (1,043,260) (8,222,972) (4,369,713) (36,946,991)
---------- ----------- ---------- --------------
Net decrease (1,021,987) $(8,041,916) (3,197,223) $(28,800,516)
========== =========== ========== ==============
Class D Shares Amount Shares Amount
------------------------------------- ---------- ----------- ---------- --------------
Shares sold 67,468 $ 539,060 22,162 $ 187,612
Issued upon reinvestment of
distribution from net realized gains -- -- 6,869 48,217
Shares redeemed (14,303) (105,852) (3,007) (24,790)
---------- ----------- ---------- --------------
Net increase 53,165 $ 433,208 26,024 $ 211,039
========== =========== ========== ==============
</TABLE>
7
<PAGE>
Financial Highlights
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class A
------------------------------------------
Six months
ended
June 30, Year ended
1995 December 31,
(Unaudited)*** 1994 1993*
------------ -------------- --------
<S> <C> <C> <C>
Net asset value, beginning of period $ 7.09 $ 8.50 $ 9.63
Net investment income (loss) .02 .05 .06
Net realized and unrealized gain
(loss) on investments 1.73 (.38) .37
Dividends from net investment income (.02) (.05) (.08)
Distributions from net realized gains -- (1.03) (1.48)
------------ -------------- --------
Net asset value, end of period $ 8.82 $ 7.09 $ 8.50
============ ============== ========
Total return 24.71%+++ (3.83)%+ 4.52%+++
Net assets at end of period (000s) $1,164 $ 719 $ 602
Ratio of operating expenses to
average net assets 0.91%++ 0.90% 0.96%++
Ratio of net investment income
(loss) to average net assets 0.51%++ 0.54% 0.48%++
Portfolio turnover rate 99.80% 57.18% 68.36%
</TABLE>
<TABLE>
<CAPTION>
Class B
-------------------------------------------
Six months
ended
June 30, Year ended
1995 December 31,
(Unaudited)*** 1994 1993**
------------ -------------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period $ 7.02 $ 8.46 $ 9.56
Net investment income (loss) (.01) (.00) .03
Net realized and unrealized gain
(loss) on investments 1.71 (.41) .42
Dividends from net investment income -- -- (.07)
Distributions from net realized gains -- (1.03) (1.48)
------------ -------------- ---------
Net asset value, end of period $ 8.72 $ 7.02 $ 8.46
============ ============== =========
Total return 24.22%+++ (4.80)%+ 4.64%+++
Net assets at end of period (000s) $3,849 $1,544 $ 986
Ratio of operating expenses to
average net assets 1.66%++ 1.63% 1.71%++
Ratio of net investment income
(loss) to average net assets (0.24)%++ (0.20)% (0.36)%++
Portfolio turnover rate 99.80% 57.18% 68.36%
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
--------------------------------------------------------- -----------------------------------
Year ended December 31
-----------------------------------------
Six months Six months
ended ended
June 30, June 30, Year ended
1995 1995 December 31,
(Unaudited)*** 1994 1993 1992 1991 1990 (Unaudited)*** 1994 1993**
-------------------------- ------------- ----- ----- ----- ----- ----- ------------ ------------ ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 7.08 $ 8.51 $ 9.26 $ 9.14 $ 7.44 $ 8.23 $ 7.02 $ 8.45 $ 9.56
Net investment income
(loss) .03 .07 .09 .14 .17 .20 (.01) (.00) .03
Net realized and
unrealized gain (loss) on
investments (diamond) 1.73 (.40) .74 .15 1.71 (.78) 1.71 (.40) .41
Dividends from net
investment income (.03) (.07) (.10) (.14) (.18) (.21) -- -- (.07)
Distributions from net
realized gains -- (1.03) (1.48) (.03) -- -- -- (1.03) (1.48)
------------ ----- ----- ----- ----- ----- ------------ ------------ ----
Net asset value, end of
period $8.81 $7.08 $8.51 $9.26 $9.14 $7.44 $8.72 $7.02 $8.45
============ ===== ===== ===== ===== ===== ============ ============ ====
Total return 24.86%+++ (3.82)%+ 8.94%+ 5.71%+ 26.77%+ (6.16)%+ 24.22%+++ (4.68)%+ 4.59%+++
Net assets at end of
period (000s) $222,463 $186,108 $250,786 $263,781 $273,607 $234,338 $940 $384 $242
Ratio of operating
expenses to average net
assets 0.66%++ 0.64% 0.66% 0.57% 0.56% 0.55% 1.66%++ 1.63% 1.71%++
Ratio of net investment
income (loss) to average
net assets 0.78%++ 0.78% 0.92% 1.56% 2.02% 2.42% (0.24)%++ (0.20)% (0.34)%++
Portfolio turnover rate 99.80% 57.18% 68.36% 35.60% 31.89% 16.09% 99.80% 57.18% 68.36%
(diamond) After provision for
Federal tax on retained
capital gains at end of
period of -- -- -- $.22 $.12 $.08 -- -- --
</TABLE>
++Annualized
*March 16, 1993 (commencement of share class designations) to December 31,
1993.
**March 18, 1993 (commencement of share class designations) to December 31,
1993.
***Per-share figures have been calculated using the average shares method.
+Total return figures do not reflect any front-end or contingent deferred
sales charges.
+++Represents aggregate return for the period without annualization and does
not reflect any front-end or contingent deferred sales charges.
8
<PAGE>
Fund Information, Officers and Trustees of State Street Research Growth Trust
Fund Information
State Street Research
Growth Fund
One Financial Center
Boston, MA 02111
Investment Adviser
State Street Research &
Management Company
One Financial Center
Boston, MA 02111
Distributor
State Street Research
Investment Services, Inc.
One Financial Center
Boston, MA 02111
Shareholder Services
State Street Research
Shareholder Services
P.O. Box 8408
Boston, MA 02266-8408
1-800-562-0032
Custodian
State Street Bank and
Trust Company
225 Franklin Street
Boston, MA 02110
Legal Counsel
Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.
One Financial Center
Boston, MA 02111
Officers
Ralph F. Verni
Chairman of the Board,
President and
Chief Executive Officer
Peter C. Bennett
Vice President
Frederick R. Kobrick
Vice President
Thomas P. Moore
Vice President
Dudley F. Wade
Vice President
Kennard Woodworth, Jr.
Vice President
Gerard P. Maus
Treasurer
Joseph W. Canavan
Assistant Treasurer
Douglas A. Romich
Assistant Treasurer
Francis J. McNamara, III
Secretary and General Counsel
Darman A. Wing
Assistant Secretary and
Assistant General Counsel
Trustees
Ralph F. Verni
Chairman of the Board,
President, Chief Executive
Officer and Director,
State Street Research &
Management Company
Edward M. Lamont
Formerly in banking
(Morgan Guaranty Trust
Company of New York);
presently engaged in private
investments and civic affairs
Robert A. Lawrence
Partner, Saltonstall & Co.
Dean O. Morton
Retired; formerly Executive
Vice President, Chief
Operating Officer and Director,
Hewlett-Packard Company
Thomas L. Phillips
Retired; formerly Chairman of
the Board and Chief Executive
Officer, Raytheon Company
Toby Rosenblatt
President,
The Glen Ellen Company
Vice President,
Founders Investments Ltd.
Michael S. Scott Morton
Jay W. Forrester Professor of
Management, Sloan School of
Management, Massachusetts
Institute of Technology
Jeptha H. Wade
Retired; formerly Of Counsel,
Choate, Hall & Stewart
9
<PAGE>
State Street Research Growth Fund Bulk Rate
One Financial Center U.S. Postage
Boston, MA 02111 PAID
Brockton, MA
Permit No. 600
Questions? Comments?
Call us at 1-800-562-0032,
or write us at:
State Street Research
Shareholder Services
P.O. Box 8408
Boston, MA 02266-8408
[State Street logo] State Streeet Research
This report is prepared for the general information of current shareholders
only. It is not authorized for use as sales material with prospective
investors.
CONTROL NUMBER: 2511-950821(0996)SSR-LD
Cover Illustration by Dorothy Cullinan
GF-750D-895
