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STATE STREET RESEARCH
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-----------------------------------
GROWTH FUND
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ANNUAL REPORT
December 31, 1999
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WHAT'S INSIDE
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FROM THE CHAIRMAN
Another good year for the
U.S. economy
PORTFOLIO MANAGER'S REVIEW
Another strong year for U.S. stocks
FUND INFORMATION
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
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[DALBAR LOGO]
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For Excellence
[logo] STATE STREET RESEARCH in
Service
<PAGE>
FROM THE CHAIRMAN
[Photo of Ralph F. Verni]
DEAR SHAREHOLDER:
Another good year for the U.S. economy has extended America's cycle of
prosperity to nine consecutive years. Gross domestic product, a measure of goods
and services produced in the U.S., rose at an estimated annual rate of 4.0%.
Personal income has risen and consumer spending has been strong. Inflation
remained relatively low as productivity gains offset wage gains. However, the
Consumer Price Index moved up one full percentage point from 1.6% to 2.6%. The
Federal Reserve Board responded to these indicators of strength by raising
short-term interest rates by 3/4% in three 1/4% steps in the second half of the
year.
STOCKS
The U.S. stock market delivered another year of double-digit gains. The S&P 500
rose 21.0% during the 12-month period ended December 31, 1999.(1) However, S&P
500 technology stocks accounted for a disproportionate share of those gains.
Technology stocks in the S&P 500 gained 74.6%. Non-technology S&P 500 stocks
gained only 4.5%. The technology-heavy Nasdaq gained 85.6% for the year.
BONDS
The bond market was hurt by the Federal Reserve Board's interest-rate hikes
and by factors associated with Y2K. Fears that issuers would go to the
market with their debt issues early in the year drove yields up and bond
prices down. However, those fears were not realized, and the market began
to close the yield gap in the second half of the year. In this environment,
mortgage bonds held up better than government and corporate bonds. High
yield bonds finished the year ahead of other bond sectors, but with modest
single-digit results.
INTERNATIONAL
Economic growth around the globe was better than expected. In Asia and certain
emerging markets, economies rebounded from last year's currency woes faster than
anticipated. Japan has shown the first signs of real progress in revitalizing
its economy in nearly a decade. That was reflected in strong stock market
performance for the year, especially among small Japanese companies. Europe
delivered generally favorable results as did the emerging markets of Latin
America.
OUTLOOK AND OPPORTUNITIES
As we enter the year 2000, many markets are poised for growth. However, there
are also areas, such as the technology sector in the U.S., where extraordinarily
high valuations suggest caution in the months ahead. Now is a good time to
consult your financial professional about the strategies that make sense for
your personal portfolio.
And, as always, we thank you for investing with State Street Research.
Sincerely,
/s/ Ralph F. Verni
Ralph F. Verni
Chairman
December 31, 1999
(1) The S&P 500 (officially the "Standard and Poor's 500 Stock Price Index") is
an unmanaged index of 500 U.S. stocks. The index does not take transaction
charges into consideration. It is not possible to invest directly in the
index.
(2) 38.13% for Class B(1) shares; 38.01% for Class B shares; 38.01% for Class C
shares; 39.46% for Class S shares.
(3) Keep in mind that past performance is no guarantee of future results. The
Fund's share price, yield and return will fluctuate, and you may have a gain
or loss when you sell your shares. All returns assume reinvestment of
capital gains distributions and income dividends at net asset value. During
the periods prior to 1993, when shares of the Fund were not offered to the
general public, the Fund was not subject to the cash inflows and higher
redemptions and expenses that have occurred during the Fund's current,
continuous public offering. Class S shares, offered without a sales charge,
are available through certain employee benefit plans and special programs.
(4) Performance reflects maximum 5.75% Class A share front-end sales charge, or
5% Class B(1) or Class B share or 1% Class C share contingent deferred sales
charges, where applicable. The Fund's returns include performance before the
creation of share classes. If this performance reflected the share classes'
current 12b-1 fees, the Fund's returns may have been lower.
PLEASE NOTE THAT THE DISCUSSION THROUGHOUT THIS SHAREHOLDER REPORT IS DATED AS
INDICATED AND, BECAUSE OF POSSIBLE CHANGES IN VIEWPOINT, DATA AND TRANSACTIONS,
SHOULD NOT BE RELIED UPON AS BEING CURRENT THEREAFTER.
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FUND INFORMATION (all data are for periods ended December 31, 1999)
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Total Value of $10,000 Invested on December 31, 1989(3)
(Class A shares, at maximum applicable sales charge)
12/89 $ 9,452
12/90 8,844
12/91 11,212
12/92 11,852
12/93 12,881
12/94 12,388
12/95 16,423
12/96 18,501
12/97 20,376
12/98 25,654
12/99 35,655
AVERAGE ANNUAL TOTAL RETURN
(at maximum applicable sales charge)(3)(4)
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LIFE OF FUND
(since 3/24/61) 10 YEARS 5 YEARS 1 YEAR
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Class A 10.99% 13.56% 22.09% 30.99%
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Class B(1) 11.01% 13.63% 22.47% 33.13%
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Class B 11.01% 13.62% 22.45% 33.01%
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Class C 11.01% 13.64% 22.64% 37.01%
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Class S 11.20% 14.41% 23.88% 39.46%
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<PAGE>
PORTFOLIO MANAGER'S REVIEW
Growth Fund: Another strong year for U.S. stocks
[Photo of Kennard "Pete" Woodworth]
Portfolio Manager
We spoke with Pete Woodworth, portfolio manager of State Street Research Growth
Fund, about the Fund's performance for the year ended December 31, 1999 and his
views on the period ahead.
Q: HOW DID THE FUND PERFORM LAST YEAR?
A: It was a strong year for the Fund. Class A shares returned 38.98% for the 12
months ended December 31, 1999 [does not reflect sales charge].(2) The Fund
significantly outperformed the S&P 500, which gained 21.03% for the same period.
It outperformed the Lipper Large-Cap Growth Funds Average, which returned
37.96%.
Q: WHAT FACTORS HELPED THE FUND GENERATE SUCH STRONG GAINS?
A: The market environment was favorable for the Fund. Investors favored
fast-growing companies, especially those in the technology sector, and bid their
prices up to premium levels. That's where the Fund had concentrated a good
portion of its assets, and our sector focus as well as our stock selection paid
off with handsome gains. Cisco Systems, i2 Technologies, and Citrix Systems were
the Fund's three best performers. All three are technology companies with high
sales and/or earnings growth. i2 Technologies announced new product
introductions which boosted its stock price. Citrix Systems was helped by its
unique technology.
Q: WHAT INVESTMENTS WERE A DRAG ON THE FUND'S PERFORMANCE?
A: Consumer stocks were a disappointment. They couldn't match the strong
earnings gains of technology. Even brand names such as Safeway and Coca-Cola
had disappointing years. Our investment in Cadence Design Systems was one of our
weakest performers. The company failed to meet both sales and earnings
expectations, and we sold it.
Q: AS THE MARKET'S PREFERENCE FOR TECHNOLOGY STOCKS BECAME APPARENT, DID YOU
SHIFT THE FUND'S STRATEGY?
A: Yes, as technology companies continued to demonstrate their strong future
earnings growth potential and as interest rates rose, we became more aggressive
in our preference for growth during the year. Rising interest rates make it
harder for some sectors to generate higher earnings. In general, we focused on
companies that we believed could do well despite higher rates.
Q: HOW HAVE YOU STRUCTURED THE FUND FOR THE PERIOD AHEAD?
A: The Fund is more aggressive in composition than it was one year ago. In
general, we're emphasizing companies with demonstrated potential for higher
earnings growth, especially those in technology, health care and consumer
discretionary segments of the market. In light of the heightened volatility that
the market experienced in 1999, we have exposure to a good mix of sectors, and
we're paying careful attention to stock selection. We believe this approach
positions the Fund for another good year.
Q: WHAT IS YOUR OUTLOOK FOR THE FUND?
A: The environment for the kind of companies that the Fund has emphasized,
remains attractive -- large companies that can deliver strong earnings growth.
December 31, 1999
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TOP 10 STOCK POSITIONS
(by percentage of net assets)
1 CISCO SYSTEMS Computer network products 6.5%
2 MICROSOFT Computer software & service 5.2%
3 ANALOG DEVICES Electronic components 4.4%
4 AMFM Radio 4.2%
5 EMC Computer software & service 4.1%
6 CITRIX SYSTEMS Application software 4.0%
7 INTEL Electronic components 3.9%
8 I2 TECHNOLOGIES Computer software & service 3.7%
9 NOKIA Telecommunications 3.6%
10 TERADYNE Electronic measurement instruments 3.4%
These securities represent an aggregate of 43.0% 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 in this table or in the text
above.
TOP 5 INDUSTRIES
(by percentage of net assets)
COMPUTER SOFTWARE 14.7%
DRUGS & BIOTECHNOLOGY 12.2%
COMPUTER TECHNOLOGY 9.4%
COMMUNICATIONS TECHNOLOGY 8.7%
ELECTRONICS: SEMICONDUCTORS/COMPONENTS 8.2%
Total: 53.2%
BEST AND WORST CONTRIBUTORS TO PERFORMANCE
(January 1, 1999 through December 31, 1999)
BEST /\
- ------------------------------------------------
CISCO SYSTEMS
Very high sales and earnings growth.
I2 TECHNOLOGIES
Very high growth, new product announcements.
CITRIX SYSTEMS
Accelerating sales and earnings growth; unique technology.
WORST \/
- ------------------------------------------------
SAFEWAY
Market rotation from consumer staples
CADENCE DESIGN SYSTEMS
Failure to meet sales and earnings expectations.
COCA-COLA ENTERPRISES
Disappointing sales and cash flow.
<PAGE>
<TABLE>
STATE STREET RESEARCH GROWTH FUND
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INVESTMENT PORTFOLIO
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December 31, 1999
<CAPTION>
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VALUE
SHARES (NOTE 1)
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<S> <C> <C>
COMMON STOCKS 99.0%
CONSUMER DISCRETIONARY 10.6%
ADVERTISING AGENCIES 1.6%
Omnicom Group Inc. ............................................ 52,000 $ 5,200,000
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COMMERCIAL SERVICES 1.0%
America Online Inc.* .......................................... 44,400 3,349,425
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COMMUNICATIONS, MEDIA & ENTERTAINMENT 4.2%
AMFM Inc.* .................................................... 180,200 14,100,650
------------
CONSUMER SERVICES 0.5%
Apollo Group Inc. Cl. A* ...................................... 91,500 1,835,719
------------
RETAIL 3.3%
Dayton Hudson Corp. ........................................... 75,000 5,507,813
Men's Wearhouse, Inc.* ........................................ 188,100 5,525,437
------------
11,033,250
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Total Consumer Discretionary .................................. 35,519,044
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CONSUMER STAPLES 8.1%
BEVERAGES 2.7%
Anheuser-Busch Companies, Inc. ................................ 50,000 3,543,750
Coca-Cola Co. ................................................. 95,200 5,545,400
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9,089,150
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DRUG & GROCERY STORE CHAINS 2.5%
CVS Corp. ..................................................... 76,200 3,043,238
Safeway Inc.* ................................................. 145,200 5,163,675
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8,206,913
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HOUSEHOLD PRODUCTS 2.9%
Colgate-Palmolive Co. ......................................... 60,000 3,900,000
Procter & Gamble Co. .......................................... 52,000 5,697,250
------------
9,597,250
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Total Consumer Staples ........................................ 26,893,313
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FINANCIAL SERVICES 3.7%
INSURANCE 0.3%
Ace Ltd. ...................................................... 67,800 1,131,412
------------
MISCELLANEOUS FINANCIAL 3.4%
Ambac Financial Group, Inc. ................................... 95,800 4,999,563
Citigroup, Inc. ............................................... 114,975 6,388,298
------------
11,387,861
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Total Financial Services ...................................... 12,519,273
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HEALTH CARE 14.4%
DRUGS & BIOTECHNOLOGY 12.2%
Amgen Inc.* ................................................... 145,200 8,721,075
Baxter International Inc. ..................................... 70,000 4,396,875
Bristol-Myers Squibb Co. ...................................... 74,000 4,749,875
Genentech Inc.* ............................................... 9,000 1,210,500
Johnson & Johnson ............................................. 62,000 5,773,750
Pfizer Inc. ................................................... 120,000 3,892,500
Schering-Plough Corp. ......................................... 151,200 6,378,750
Warner-Lambert Co. ............................................ 67,600 5,538,975
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40,662,300
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HOSPITAL SUPPLY 2.2%
Guidant Corp.* ................................................ 160,800 7,557,600
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Total Health Care ............................................. 48,219,900
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OTHER 6.8%
MULTI-SECTOR 6.8%
General Electric Co. .......................................... 53,000 8,201,750
Honeywell International Inc.* ................................. 85,300 4,920,744
Tyco International Ltd. ....................................... 246,000 9,563,250
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Total Other ................................................... 22,685,744
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OTHER ENERGY 0.5%
OIL & GAS PRODUCERS 0.5%
Ocean Energy Inc.* ............................................ 199,600 1,546,900
------------
Total Other Energy ............................................ 1,546,900
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PRODUCER DURABLES 3.4%
PRODUCTION TECHNOLOGY EQUIPMENT 3.4%
Teradyne Inc.* ................................................ 172,000 11,352,000
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Total Producer Durables ....................................... 11,352,000
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TECHNOLOGY 47.0%
COMMUNICATIONS TECHNOLOGY 8.7%
Cisco Systems Inc.* ........................................... 202,050 21,644,606
Lucent Technologies Inc. ...................................... 100,500 7,518,656
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29,163,262
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COMPUTER SOFTWARE 14.7%
Citrix Systems Inc.* .......................................... 109,700 13,493,100
i2 Technologies Inc.* ......................................... 64,000 12,480,000
Microsoft Corp.* .............................................. 147,400 17,208,950
Red Hat, Inc.* ................................................ 28,000 5,915,000
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49,097,050
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COMPUTER TECHNOLOGY 9.4%
Dell Computer Corp.* .......................................... 139,500 7,114,500
EMC Corp.* .................................................... 125,600 13,721,800
Sun Microsystems Inc.* ........................................ 134,000 10,376,625
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31,212,925
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ELECTRONICS 6.0%
Nokia Corp. ADR ............................................... 63,600 12,084,000
Sanmina Corp.* ................................................ 78,200 7,810,225
------------
19,894,225
------------
ELECTRONICS: SEMI-CONDUCTORS/COMPONENTS 8.2%
Analog Devices Inc.* .......................................... 157,000 14,601,000
Intel Corp. ................................................... 156,800 12,906,600
------------
27,507,600
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Total Technology .............................................. 156,875,062
------------
UTILITIES 4.5%
TELECOMMUNICATIONS 4.5%
MCI WorldCom Inc.* ............................................ 166,950 8,858,785
Voicestream Wireless Corp.* ................................... 43,700 6,219,056
------------
15,077,841
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Total Utilities ............................................... 15,077,841
------------
Total Common Stocks (Cost $162,976,806) ....................... 330,689,077
------------
SHORT-TERM INVESTMENTS 3.6%
AIM Liquid Assets Portfolio ................................... 12,009,468 12,009,468
------------
Total Short-Term Investments (Cost $12,009,468) ............... 12,009,468
------------
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PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- ------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 1.1%
AIG Funding Inc., 4.95% .......................... $ 853,000 1/04/2000 $ 852,648
Associates First Capital Corp., 4.00% ............ 2,836,000 1/03/2000 2,836,000
------------
Total Commercial Paper (Cost $3,688,648) ..................................... 3,688,648
------------
Total Investments (Cost $178,674,922) - 103.7% ............................... 346,387,193
Cash and Other Assets, Less Liabilities - (3.7)% ............................. (12,247,808)
------------
Net Assets - 100.0% .......................................................... $334,139,385
============
Federal Income Tax Information: At December 31, 1999, the net unrealized
appreciation of investments based on cost for Federal income tax purposes of
$178,296,120 was as follows:
Aggregate gross unrealized appreciation for all investments in which there is
an excess of value over tax cost ............................................. $170,406,408
Aggregate gross unrealized depreciation for all investments in which there is
an excess of tax cost over value ............................................. (2,315,335)
------------
$168,091,073
============
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*Non-income-producing securities.
ADR stands for American Depositary Receipt, representing ownership of foreign securities.
The accompanying notes are an integral part of the financial statements.
</TABLE>
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<TABLE>
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STATEMENT OF ASSETS AND LIABILITIES
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December 31, 1999
<S> <C>
ASSETS
Investments, at value (Cost $178,674,922) (Note 1) ................ $346,387,193
Cash .............................................................. 664
Receivable for fund shares sold ................................... 197,823
Dividends and interest receivable ................................. 62,048
Other assets ...................................................... 23,853
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346,671,581
LIABILITIES
Payable for collateral received on securities loaned .............. 12,009,468
Payable for fund shares redeemed .................................. 161,691
Accrued management fee (Note 2) ................................... 130,837
Accrued transfer agent and shareholder services
(Note 2) ........................................................ 33,168
Accrued distribution and service fees (Note 4) .................... 31,668
Accrued trustees' fees (Note 2) ................................... 16,785
Other accrued expenses ............................................ 148,579
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12,532,196
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NET ASSETS ........................................................ $334,139,385
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Net Assets consist of:
Unrealized appreciation of investments .......................... $167,712,271
Accumulated net realized gain ................................... 590,155
Paid-in capital ................................................. 165,836,959
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$334,139,385
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Net Asset Value and redemption price per share of Class A shares
($35,417,982 / 2,986,739 shares) ................................ $11.86
======
Maximum Offering Price per share of Class A shares ($11.86 / .9425) $12.58
======
Net Asset Value and offering price per share of Class B(1) shares
($9,547,932 / 853,261 shares)* .................................. $11.19
======
Net Asset Value and offering price per share of Class B shares
($59,018,600 / 5,278,065 shares)* ............................... $11.18
======
Net Asset Value and offering price per share of Class C shares
($5,967,130 / 533,533 shares)* .................................. $11.18
======
Net Asset Value, offering price and redemption
price per share of Class S shares
($224,187,741 / 18,689,337 shares) .............................. $12.00
======
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* Redemption price per share for Class B(1), Class B and Class C is equal to
net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
STATE STREET RESEARCH GROWTH FUND
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STATEMENT OF OPERATIONS
- ------------------------------------------------------------------------------
For the year ended December 31, 1999
INVESTMENT INCOME
Dividends, net of foreign taxes of $3,996 ................... $ 1,192,119
Interest (Note 1) ........................................... 340,199
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1,532,318
EXPENSES
Management fee (Note 2) ..................................... 1,256,506
Transfer agent and shareholder services (Note 2) ............ 179,744
Custodian fee (Note 2) ...................................... 137,086
Registration fees ........................................... 63,972
Service fee - Class A (Note 4) .............................. 61,273
Distribution and service fees - Class B(1) (Note 4) ......... 46,233
Distribution and service fees - Class B (Note 4) ............ 466,310
Distribution and service fees - Class C (Note 4) ............ 51,818
Audit fee ................................................... 32,499
Legal fee ................................................... 26,892
Reports to shareholders ..................................... 18,576
Trustees' fees (Note 2) ..................................... 16,785
Miscellaneous ............................................... 8,690
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2,366,384
Fees paid indirectly (Note 2) ............................... (21,558)
-----------
2,344,826
-----------
Net investment loss ......................................... (812,508)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments (Notes 1 and 3) ............ 16,242,875
Net unrealized appreciation of investments .................. 78,825,454
-----------
Net gain on investments ..................................... 95,068,329
-----------
Net increase in net assets resulting from operations ........ $94,255,821
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
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STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED DECEMBER 31
----------------------------------------
1998 1999
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss ......................................... $ (741,693) $ (812,508)
Net realized gain on investments ............................ 562,491 16,242,875
Net unrealized appreciation of investments .................. 52,559,818 78,825,454
------------ ------------
Net increase resulting from operations ...................... 52,380,616 94,255,821
------------ ------------
Distributions from net realized gains:
Class A ................................................... (2,465) (1,370,327)
Class B(1) ................................................ -- (405,499)
Class B ................................................... (5,301) (2,393,443)
Class C ................................................... (578) (249,652)
Class S ................................................... (21,173) (8,770,916)
------------ ------------
(29,517) (13,189,837)
------------ ------------
Net increase (decrease) from fund share transactions (Note 5) (27,619,723) 6,179,300
------------ ------------
Total increase in net assets ................................ 24,731,376 87,245,284
NET ASSETS
Beginning of year ........................................... 222,162,725 246,894,101
------------ ------------
End of year ................................................. $246,894,101 $334,139,385
============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
STATE STREET RESEARCH GROWTH FUND
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NOTES TO FINANCIAL STATEMENTS
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December 31, 1999
NOTE 1
State Street Research Growth Fund (the "Fund"), is a series of State Street
Research 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 Fund is presently the only series of
the Trust.
The investment objective of the Fund is to provide long-term growth of
capital. In seeking to achieve its investment objective, the Fund invests
primarily in equity securities believed by the Investment Adviser to have
better than average growth potential over the years.
The Fund offers five classes of shares. Class A shares are subject to an
initial sales charge of up to 5.75% and an annual service fee equal to 0.25%
of average daily net assets. On January 1, 1999, the Fund began offering Class
B(1) shares and continued offering Class B shares but only to current
shareholders through reinvestment of dividends and distributions or through
exchanges from existing Class B accounts of State Street Research funds. Class
B(1) and Class B pay annual distribution and service fees of 1.00% and both
classes automatically convert into Class A shares (which pay lower ongoing
expenses) at the end of eight years. Class B(1) shares are subject to a
contingent deferred sales charge on certain redemptions made within six years
of purchase. Class B shares are subject to a contingent deferred sales charge
on certain redemptions made within five years of purchase. Class C shares are
subject to a contingent deferred sales charge of 1.00% on any shares redeemed
within one year of their purchase. Class C shares also pay annual distribution
and service fees of 1.00%. Class S shares are only offered to certain
retirement accounts, advisory accounts of State Street Research & Management
Company (the "Adviser"), an indirect wholly owned subsidiary of
Metropolitan Life Insurance Company ("Metropolitan"), and special programs. No
sales charge is imposed at the time of purchase or redemption of Class S
shares. Class S shares do not pay any distribution or service fees. 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
plans 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 average cost of securities
delivered.
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 maintains a
policy 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,
unless additional distributions are required for compliance with applicable
tax regulations. For the year ended December 31, 1999, the Fund has designated
as long-term $10,214,623 of the distributions from net realized gains.
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 the disposition of
securities that have different bases for financial reporting and tax purposes.
D. ESTIMATES
The preparation of financial statements in conformity with 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 income and expenses during the reporting period.
Actual results could differ from those estimates.
E. SECURITIES LENDING
The Fund may seek additional income by lending portfolio securities to
qualified institutions. The Fund will receive cash or securities as collateral
in an amount equal to at least 100% of the current market value of any loaned
securities plus accrued interest. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains and
losses. If the borrower fails to return the securities and the value of the
collateral has declined during the term of the loan, the Fund will bear the
loss. At December 31, 1999, the value of the securities loaned and the value
of collateral were $18,198,594 and $18,378,348 (including $12,009,468 of cash
collateral), respectively. During the year ended December 31, 1999, income
from securities lending amounted to $76,852 and is included in interest
income.
NOTE 2
The Trust and the Adviser 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.
During the year ended December 31, 1999, the fees pursuant to such agreement
amounted to $1,256,506.
State Street Research Service Center, 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. In addition, Metropolitan receives a fee for maintenance
of the accounts of certain shareholders who are participants in sponsored
arrangements, employee benefit plans and similar programs or plans, through or
under which shares of the Fund may be purchased. During the year ended
December 31, 1999, the amount of such expenses was $103,543.
The Fund has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances and directed
brokerage commissions, respectively were used to reduce a portion of the
Fund's expenses. During the year ended December 31, 1999 the Fund's transfer
agent and custodian fees were reduced by $9,113 and $12,445, respectively,
under these arrangements.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$16,785 during the year ended December 31, 1999.
NOTE 3
For the year ended December 31, 1999, exclusive of short-term investments and
U.S. Government obligations, purchases and sales of securities aggregated
$110,638,616 and $120,085,475, respectively.
NOTE 4
The Trust has adopted plans of distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended. Under the plans, 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(1), Class B and Class C shares. In addition, the
Fund pays annual distribution fees of 0.75% of average daily net assets for
Class B(1), Class B and Class C shares. The Distributor uses such payments for
personal services and/or the maintenance or servicing of shareholder accounts,
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 year ended December 31, 1999,
fees pursuant to such plans amounted to $61,273, $46,233, $466,310 and $51,818
for Class A, Class B(1), Class B and Class C shares, respectively.
The Fund has been informed that the Distributor and MetLife Securities, Inc.,
a wholly owned subsidiary of Metropolitan, earned initial sales charges
aggregating $34,657 and $93,849, respectively, on sales of Class A shares of
the Fund during the year ended December 31, 1999, and that MetLife Securities,
Inc. earned commissions aggregating $142,110 and $8,938 on sales of Class B(1)
and Class B shares, respectively, and that the Distributor collected
contingent deferred sales charges of $8,624, $79,348 and $20 on redemptions of
Class B(1), Class B and Class C shares, respectively, during the same period.
NOTE 5
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
Share transactions were as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31
----------------------------------------------------------------------
1998 1999
---------------------------------- ------------------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ...................... 849,883 $ 6,572,034 2,741,038 $ 28,281,456
Issued upon reinvestment of
distributions from net realized
gains .......................... 298 2,439 110,672 1,229,570
Shares redeemed .................. (807,885) (6,158,180) (2,236,714) (22,833,534)
---------- ------------- ---------- ------------
Net increase ..................... 42,296 $ 416,293 614,996 $ 6,677,492
========== ============= ========== ============
CLASS B(1)* SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
Shares sold ...................... -- -- 923,432 $ 8,459,936
Issued upon reinvestment of
distributions from net realized
gains .......................... -- -- 38,163 400,328
Shares redeemed .................. -- -- (108,334) (1,120,876)
---------- ------------- ---------- ------------
Net increase ..................... -- -- 853,261 $ 7,739,388
========== ============= ========== ============
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
Shares sold ...................... 1,347,823 $ 9,980,623 1,205,073 $ 11,086,686
Issued upon reinvestment of
distributions from net realized
gains .......................... 634 4,933 210,701 2,208,147
Shares redeemed .................. (1,716,822) (12,469,662) (1,139,138) (10,305,388)
---------- ------------- ---------- ------------
Net increase (decrease) .......... (368,365) $ (2,484,106) 276,636 $ 2,989,445
========== ============= ========== ============
CLASS C SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
Shares sold ...................... 58,325 $ 430,199 184,076 $ 1,710,572
Issued upon reinvestment of
distributions from net realized
gains .......................... 71 557 22,544 236,267
Shares redeemed .................. (172,948) (1,252,401) (231,131) (2,209,393)
---------- ------------- ---------- ------------
Net decrease ..................... (114,552) $ (821,645) (24,511) $ (262,554)
========== ============= ========== ============
CLASS S SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
Shares sold ...................... 53,725 $ 407,083 86,208 $ 800,656
Issued upon reinvestment of
distributions from net realized
gains .......................... 985 8,127 326,292 3,667,519
Shares redeemed .................. (3,290,775) (25,145,475) (1,643,227) (15,432,646)
---------- ------------- ---------- ------------
Net decrease ..................... (3,236,065) $ (24,730,265) (1,230,727) $(10,964,471)
========== ============= ========== ============
- ---------------------------------------------------------------------------------------------------------------
*January 1, 1999 (commencement of share class) to December 31, 1999.
</TABLE>
<PAGE>
<TABLE>
STATE STREET RESEARCH GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a share outstanding throughout each year:
<CAPTION>
CLASS A CLASS B(1)
------------------------------------------------------------------ -------------
YEARS ENDED DECEMBER 31 YEAR ENDED
------------------------------------------------------------------ DECEMBER 31,
1995(a) 1996(a) 1997(a) 1998(a) 1999(a) 1999(a)(c)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 7.09 7.02 7.17 7.07 8.90 8.47
------ ------ ------ ------ ------ ------
Net investment income (loss) ($) 0.01 (0.03) (0.00) (0.03) (0.03) (0.10)
Net realized and unrealized gain
on investments ($) 2.30 0.93 0.68 1.86 3.47 3.30
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ($) 2.31 0.90 0.68 1.83 3.44 3.20
------ ------ ------ ------ ------ ------
Dividend from net investment
income ($) (0.02) -- -- -- -- --
Distributions from capital gains ($) (2.36) (0.75) (0.78) (0.00) (0.48) (0.48)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ($) (2.38) (0.75) (0.78) (0.00) (0.48) (0.48)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 7.02 7.17 7.07 8.90 11.86 11.19
====== ====== ====== ====== ====== ======
Total return (%)(b) 32.57 12.65 10.14 25.90 38.98 38.13
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($
thousands) 2,379 15,181 16,470 21,098 35,418 9,548
Ratio of operating expenses to
average net assets (%) 0.89 0.90 0.93 0.97 0.91 1.66
Ratio of operating expenses to
average net assets after expense
reductions (%) 0.89 0.90 0.93 0.96 0.90 1.65
Ratio of net investment income
(loss) to average net assets (%) 0.12 (0.34) (0.05) (0.37) (0.32) (1.05)
Portfolio turnover rate (%) 234.43 237.85 258.99 39.27 42.19 42.19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
YEARS ENDED DECEMBER 31
--------------------------------------------------------------------
1995(a) 1996(a) 1997(a) 1998(a) 1999(a)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 7.02 6.89 6.96 6.79 8.47
------ ------ ------ ------ ------
Net investment loss ($) (0.06) (0.08) (0.06) (0.08) (0.10)
Net realized and unrealized gain
on investments ($) 2.29 0.90 0.67 1.76 3.29
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ($) 2.23 0.82 0.61 1.68 3.19
------ ------ ------ ------ ------
Distributions from capital gains ($) (2.36) (0.75) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ($) (2.36) (0.75) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 6.89 6.96 6.79 8.47 11.18
====== ====== ====== ====== ======
Total return (%)(b) 31.71 11.73 9.44 24.76 38.01
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($
thousands) 10,684 31,119 36,442 42,379 59,019
Ratio of operating expenses to
average net assets (%) 1.63 1.65 1.68 1.72 1.66
Ratio of operating expenses to
average net assets after expense
reductions (%) 1.63 1.65 1.68 1.71 1.65
Ratio of net investment loss to
average net assets (%) (0.69) (1.07) (0.82) (1.13) (1.07)
Portfolio turnover rate (%) 234.43 237.85 258.99 39.27 42.19
- -----------------------------------------------------------------------------------------------------------
(a) Per-share figures have been calculated using the average shares method.
(b) Does not reflect any front-end or contingent deferred sales charges.
(c) January 1, 1999 (commencement of shares class) to December 31, 1999.
</TABLE>
<PAGE>
<TABLE>
STATE STREET RESEARCH GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS C
---------------------------------------------------------------------
YEARS ENDED DECEMBER 31
---------------------------------------------------------------------
1995(a) 1996(a) 1997(a) 1998(a) 1999(a)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 7.02 6.88 6.95 6.78 8.47
------ ------ ------ ------ ------
Net investment loss ($) (0.06) (0.08) (0.06) (0.08) (0.10)
Net realized and unrealized gain on
investments ($) 2.28 0.90 0.67 1.77 3.29
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ($) 2.22 0.82 0.61 1.69 3.19
------ ------ ------ ------ ------
Distributions from capital gains ($) (2.36) (0.75) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ($) (2.36) (0.75) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 6.88 6.95 6.78 8.47 11.18
====== ====== ====== ====== ======
Total return (%)(b) 31.57 11.89 9.30 24.94 38.01
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($ thousands) 2,117 5,584 4,562 4,727 5,967
Ratio of operating expenses to average
net assets (%) 1.63 1.65 1.68 1.72 1.66
Ratio of operating expenses to average
net assets after expense reductions (%) 1.63 1.65 1.68 1.71 1.65
Ratio of net investment loss to average
net assets (%) (0.67) (1.07) (0.79) (1.13) (1.07)
Portfolio turnover rate (%) 234.43 237.85 258.99 39.27 42.19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS S
----------------------------------------------------------------------
YEARS ENDED DECEMBER 31
-------------------------------------------------------------------
1995(a) 1996(a) 1997(a) 1998(a) 1999(a)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 7.08 7.02 7.18 7.11 8.97
------ ------ ------ ------ ------
Net investment income (loss) ($) 0.04 (0.00) 0.01 (0.01) (0.01)
Net realized and unrealized gain on
investments ($) 2.29 0.92 0.70 1.87 3.52
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ($) 2.33 0.92 0.71 1.86 3.51
------ ------ ------ ------ ------
Dividends from net investment
income ($) (0.03) (0.01) -- -- --
Distributions from capital gains ($) (2.36) (0.75) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ($) (2.39) (0.76) (0.78) (0.00) (0.48)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 7.02 7.18 7.11 8.97 12.00
====== ====== ====== ====== ======
Total return (%)(b) 33.02 12.74 10.54 26.18 39.46
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($ thousands) 186,689 177,147 164,689 178,691 224,188
Ratio of operating expenses to average
net assets (%) 0.64 0.65 0.68 0.72 0.66
Ratio of operating expenses to average
net assets after expense reductions (%) 0.64 0.65 0.68 0.71 0.65
Ratio of net investment income (loss) to
average net assets (%) 0.43 (0.06) 0.19 (0.13) (0.07)
Portfolio turnover rate (%) 234.43 237.85 258.99 39.27 42.19
- ----------------------------------------------------------------------------------------------------------------
(a) Per-share figures have been calculated using the average shares method.
(b) Does not reflect any front-end or contingent deferred sales charges.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE TRUSTEES OF STATE STREET RESEARCH GROWTH TRUST
AND THE SHAREHOLDERS OF STATE STREET RESEARCH GROWTH FUND:
In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in
all material respects, the financial position of State Street Research Growth
Fund (a series of State Street Research Growth Trust, hereafter referred to as
the "Trust") at December 31, 1999, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 11, 2000
<PAGE>
STATE STREET RESEARCH GROWTH FUND
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
It was a good year for State Street Research Growth Fund. Class A shares
returned 38.98% for the 12 months ended December 31, 1999 [does not reflect
sales charge]. The Fund significantly outperformed the S&P 500, which gained
21.03% for the same period. It has also outperformed the Lipper Large-Cap
Growth Funds Average which returned 37.96%.
The Fund has the flexibility to target growth companies of any size and in a
broad range of market sectors.
During the period, the Fund benefited from its emphasis on technology.
Investments in health care, consumer discretionary and consumer staple stocks
were disappointing. As the year progressed, the manager became more
aggressive, increasing the Fund's exposure to technology stocks on the belief
that they offered stronger long-term growth potential going forward. Although
health care and consumer stocks were disappointing, the Fund's position in
these sectors were maintained on the belief that their longer-term outlook
could improve.
December 31, 1999
Keep in mind that past performance 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. Performance reflects a maximum 5.75% Class A share
front-end sales charge, or 5% Class B(1) or Class B share, or 1% Class C share
contingent deferred sales charge, where applicable. Performance for Class B(1)
reflects Class B performance through December 31, 1998. Class B(1) was
introduced on January 1, 1999. The Fund's returns include performance before
the creation of share classes. If this performance reflected the share
classes' current 12b-1 fees, the Fund's returns may have been lower. During
the periods prior to 1993 that shares of the Fund were not available to the
public, the Fund was not subject to the cash inflows and higher redemptions
and expenses that have occurred during the Fund's current continuous public
offering. Class S shares, offered without a sales charge, are available only
through certain employee benefit plans and special programs. The S&P 500
(officially the "Standard and Poor's 500 Stock Price Index") is an unmanaged
index of 500 U.S. stocks. The index does not take sales charges into
consideration. Direct investment in the index is not possible; results are for
illustrative purposes only.
CHANGE IN VALUE OF $10,000
BASED ON THE S&P 500
COMPARED TO CHANGE IN VALUE OF $10,000
INVESTED IN GROWTH FUND
Class A Shares
- --------------------------------------
Average Annual Total Return
1 Year 5 Years 10 Years
- ------ ------- --------
30.99% 22.09% 13.56%
- --------------------------------------
Growth Fund S&P 500
- ------------------------------------
12/88 $ 9,425 $10,000
12/89 9,425 10,000
12/90 8,844 9,689
12/91 11,212 12,635
12/92 11,852 13,596
12/93 12,881 14,963
12/94 12,388 15,160
12/95 16,423 20,850
12/96 18,501 25,634
12/97 20,376 34,183
12/98 25,654 43,959
12/99 35,655 53,205
Class B(1) Shares
- --------------------------------------
Average Annual Total Return
1 Year 5 Years 10 Years
- ------ ------- --------
33.13% 22.47% 13.63%
- --------------------------------------
Growth Fund S&P 500
- --------------------------------------
12/88 $10,000 $10,000
12/89 10,000 10,000
12/90 9,384 9,689
12/91 11,896 12,635
12/92 12,575 13,596
12/93 13,584 14,963
12/94 12,932 15,160
12/95 17,033 20,850
12/96 19,031 25,634
12/97 20,827 34,183
12/98 25,984 43,959
12/99 35,890 53,205
Class B Shares
- --------------------------------------
Average Annual Total Return
1 Year 5 Years 10 Years
- ------ ------- --------
33.01% 22.45% 13.62%
- --------------------------------------
Growth Fund S&P 500
- --------------------------------------
12/88 $10,000 $10,000
12/89 10,000 10,000
12/90 9,384 9,689
12/91 11,896 12,635
12/92 12,575 13,596
12/93 13,584 14,963
12/94 12,932 15,160
12/95 17,033 20,850
12/96 19,031 25,634
12/97 20,827 34,183
12/98 25,984 43,959
12/99 35,860 53,205
Class C Shares
- --------------------------------------
Average Annual Total Return
1 Year 5 Years 10 Years
- ------ ------- --------
37.01% 22.64% 13.64%
- --------------------------------------
Growth Fund S&P 500
- --------------------------------------
12/88 $10,000 $10,000
12/89 10,000 10,000
12/90 9,384 9,689
12/91 11,896 12,635
12/92 12,575 13,596
12/93 13,578 14,963
12/94 12,942 15,160
12/95 17,027 20,850
12/96 19,051 25,634
12/97 20,823 34,183
12/98 26,016 43,959
12/99 35,905 53,205
Class S Shares
- --------------------------------------
Average Annual Total Return
1 Year 5 Years 10 Years
- ------ ------- --------
39.46% 23.88% 14.41%
- --------------------------------------
Growth Fund S&P 500
- --------------------------------------
12/88 $10,000 $10,000
12/89 10,000 10,000
12/90 9,384 9,689
12/91 11,896 12,635
12/92 12,575 13,596
12/93 13,699 14,963
12/94 13,175 15,160
12/95 17,526 20,850
12/96 19,759 25,634
12/97 21,841 34,183
12/98 27,559 43,959
12/99 38,434 53,205
-- Growth Fund -- S&P 500
<PAGE>
<TABLE>
STATE STREET RESEARCH GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------
FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH GROWTH TRUST
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FUND INFORMATION OFFICERS TRUSTEES
STATE STREET RESEARCH RALPH F. VERNI RALPH F. VERNI
GROWTH FUND Chairman of the Board, Chairman of the Board,
One Financial Center President and President, Chief Executive
Boston, MA 02111 Chief Executive Officer Officer and Director,
State Street Research &
INVESTMENT ADVISER PETER C. BENNETT Management Company
State Street Research & Vice President
Management Company
One Financial Center JAMES M. WEISS BRUCE R. BOND
Boston, MA 02111 Vice President Former Chairman of the Board
Chief Executive Officer and
DISTRIBUTOR KENNARD WOODWORTH, JR. President, PictureTel Corporation
State Street Research Vice President
Investment Services, Inc.
One Financial Center GERARD P. MAUS STEVE A. GARBAN
Boston, MA 02111 Treasurer Former Senior Vice President
for Finance and Operations and
SHAREHOLDER SERVICES JOSEPH W. CANAVAN Treasurer, The Pennsylvania
State Street Research Assistant Treasurer State University
Service Center
P.O. Box 8408 DOUGLAS A. ROMICH
Boston, MA 02266-8408 Assistant Treasurer MALCOLM T. HOPKINS
1-800-562-0032 Former Vice Chairman of the
FRANCIS J. MCNAMARA, III Board and Chief Financial
CUSTODIAN Secretary and General Counsel Officer, St. Regis Corp.
State Street Bank and
Trust Company DARMAN A. WING
225 Franklin Street Assistant Secretary and DEAN O. MORTON
Boston, MA 02110 Assistant General Counsel Former Executive Vice President,
Chief Operating Officer and
LEGAL COUNSEL AMY L. SIMMONS Director, Hewlett-Packard
Goodwin, Procter & Hoar LLP Assistant Secretary Company
Exchange Place
Boston, MA 02109
SUSAN M. PHILLIPS
INDEPENDENT ACCOUNTANTS Dean, School of Business and
PricewaterhouseCoopers LLP Public Management, George
160 Federal Street Washington University; former
Boston, MA 02110 Member of the Board of Governors
of the Federal Reserve System and
Chairman and Commissioner of
the Commodity Futures Trading
Commission
TOBY ROSENBLATT
President,
Founders Investments Ltd.
President,
The Glen Ellen Company
MICHAEL S. SCOTT MORTON
Jay W. Forrester Professor of
Management, Sloan School of
Management, Massachusetts
Institute of Technology
</TABLE>
<PAGE>
STATE STREET RESEARCH GROWTH FUND -------------------
One Financial Center U.S. Postage
Boston, MA 02111Bulk Rate PAID
Canton, MA
Permit #313
-------------------
[Graphic Omitted]
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032 or~ [hearing-impaired 1-800-676-7876]
[Chinese and Spanish-speaking 1-888-638-3193]
E-MAIL us at:
[email protected]
INTERNET site:
www.ssrfunds.com
WRITE us at:
State Street Research
Service Center
P.O. Box 8408
Boston, MA 02266-8408
This report is prepared for the general information of current shareholders.
This publication must be preceded or accompanied by a current State Street
Research Growth Fund prospectus.
When used after March 31, 2000, this report must be accompanied by a current
Quarterly Performance Update.
Portfolio changes should not be considered recommendations for action by
individual investors.
The Dalbar awards recognize quality shareholder service and should not be
considered a rating of fund performance. The survey~included mutual fund
complexes that volunteered or were otherwise selected to participate and was not
industry-wide.
CONTROL NUMBER: (exp0201)SSR-LD GF-1221-0200
