[FRONT COVER]
STATE STREET RESEARCH
EXCHANGE FUND
SEMIANNUAL REPORT
June 30, 1997
WHAT'S INSIDE
Investment Update
The Fund, economy
and markets
Fund Information
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
[DALBAR LOGO]
DALBAR KEY HONORS
COMMITMENT TO:
INVESTORS
1996
For Excellence
in
Shareholder Service
STATE STREET RESEARCH FUNDS
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT UPDATE
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INVESTMENT ENVIRONMENT
The Economy
[bullet] The U.S. economy was driven by strong growth with low inflation over
the six months ended June 30, 1997. Consumer spending and confidence
were on the rise, and wages began to accelerate slightly over the
period.
[bullet] A strong dollar helped restrain inflation. The Federal Reserve Board
found no need to raise short-term rates during the second quarter, thus
stimulating the bond market. The Federal Reserve continues to focus on
the strength in consumer demand and wage pressures in the labor market.
[bullet] Capital spending, particularly for computers and related equipment,
continues steadily and producers' durable equipment remains strong.
Production is expected to jump in the auto sector, where inventories
have been lean.
The Markets
[bullet] The first six months of 1997 offered positive overall performance for
both stocks and bonds. Without inflation pressure, bonds appreciated.
The resulting rally drove down the yield of the benchmark 30-year
Treasury bond below 7%.
[bullet] A short-term correction took a substantial bite out of the Dow Jones
Industrial Average,(1) which had topped 7000 in February and continued
to slip until mid-March. By June 30, 1997, the Index had closed at
7672.79, representing a +38.54% gain over the previous 12 months.
[bullet] The quarter ended June 30, 1997 was one of the best in history. For the
second time in nearly 50 years, the S&P 500(1) had doubled in less than
three years. Stock market gains were pronounced in two major areas:
large company stocks and growth stocks.
THE FUND
A Mid-Year Retrospective
[bullet] The Fund outperformed the S&P 500(1) by providing investors with a
+23.14% total return for the six months ended June 30, 1997, versus
+20.62% for the Index.(2) This performance significantly outpaced the
+15.52% average return of the 626 Growth and Income Fund classes
tracked by Lipper Analytical Services.
[bullet] The portfolio's largest and most over-weighted sector, health care
stocks, continues to reward investors. Technology and consumer sectors
also performed well.
Current Strategy
[bullet] We try to keep the risk profile of the portfolio down with lower
volatility stocks. We also seek to minimize realized capital gains.
[bullet] The majority of our long-term growth companies are expected to have
good dividend performance. We continue to emphasize high quality,
relative stability, and an attractive yield for shareholders.
June 30, 1997
(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 Dow Jones Industrial Average includes 30 widely traded common
stocks and is a commonly used measure of stock performance. The indices are
unmanaged. Direct investment in the indices is not possible; results are for
illustrative purposes only.
(2)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.
(3)Cumulative total returns are not annualized.
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 June 30, 1997)
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SEC Average Annual Compound Rates
of Return(2)
Life of Fund
(since 12/17/76) 10 Years 5 Years 1 Year
- ------------------ ---------- --------- --------
+14.57% +14.41% +19.81% +37.85%
Cumulative Total Returns(2),(3)
Life of Fund
(since 12/17/76) 10 Years 5 Years 1 Year
- ------------------ ---------- ---------- --------
+1,536.73% +284.22% +146.84% +37.85%
Top 10 Stock Positions
(by percentage of net assets)
1 Johnson & Johnson Healthcare products 4.7%
2 Coca-Cola Beverage giant 4.2%
3 Microsoft Computer software & service 3.8%
4 Merck Pharmaceutical company 3.6%
5 Gillette Personal care company 3.4%
6 IBM Office equipment 3.2%
7 American Express Financial service 3.2%
8 Exxon Oil company 3.1%
9 Pfizer Pharmaceutical company 3.0%
10 Mobil Oil company 2.9%
These securities represent an aggregate of 35.1% of net assets. Because of
active management, there is no guarantee that the Fund currently invests, or
will continue to invest, in the securities or industries listed in this table or
in the text above.
Top 5 Industries
(by percentage of net assets)
Drug 11.3%
Oil 7.8%
Food and beverage 7.0%
Chemical 6.6%
Electronic equipment 6.3%
Total: 39.0%
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STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT PORTFOLIO
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June 30, 1997 (Unaudited)
Value
Shares (Note 1)
--------- --------------
COMMON STOCKS 99.0%
Basic Industries 12.7%
Chemical 6.6%
Dow Chemical Co. ........................ 60,000 $ 5,227,500
E.I. Du Pont De Nemours & Co. ............ 137,000 8,613,875
Monsanto Co. ........................... 193,500 8,332,594
-------------
22,173,969
-------------
Electrical Equipment 2.2%
General Electric Co. ..................... 64,990 4,248,721
General Signal Corp. ..................... 70,372 3,069,979
-------------
7,318,700
-------------
Forest Product 0.7%
Georgia-Pacific Corp. .................. 26,251 2,241,179
-------------
Machinery 3.2%
Caterpillar Inc. ........................ 58,400 6,270,700
Millipore Corp. ........................ 99,400 4,373,600
-------------
10,644,300
-------------
Total Basic Industries ........................... 42,378,148
-------------
Consumer Cyclical 7.9%
Automotive 1.7%
General Motors Corp. ..................... 100,000 5,568,750
-------------
Recreation 2.7%
Walt Disney Co. ........................ 112,283 9,010,711
-------------
Retail Trade 3.5%
Dayton Hudson Corp. ..................... 150,552 8,007,484
Wal-Mart Stores, Inc. .................. 111,600 3,773,475
-------------
11,780,959
-------------
Total Consumer Cyclical ........................... 26,360,420
-------------
Consumer Staple 32.3%
Drug 11.3%
American Home Products Corp ............ 103,472 7,915,608
Merck & Company, Inc. .................. 117,259 12,136,307
Novartis AG ADR* ........................ 92,692 7,435,636
Pfizer Inc. .............................. 83,800 10,014,100
-------------
37,501,651
-------------
Food & Beverage 7.0%
Anheuser-Busch Companies, Inc ............ 112,600 4,722,163
Coca-Cola Co. ........................... 207,535 14,008,612
General Mills Inc. ..................... 69,200 4,506,650
-------------
23,237,425
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Hospital Supply 5.2%
Columbia/HCA Healthcare Corp. ............ 44,550 $ 1,751,372
Johnson & Johnson ........................ 242,341 15,600,702
-------------
17,352,074
-------------
Personal Care 6.0%
Gillette Co. ........................... 118,200 11,199,450
Procter & Gamble Co. ..................... 61,600 8,701,000
-------------
19,900,450
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Tobacco 2.8%
Philip Morris Companies, Inc. ............ 213,900 9,491,812
-------------
Total Consumer Staple .................. 107,483,412
-------------
Energy 10.7%
Oil 7.8%
Amoco Corp. .............................. 71,032 6,175,345
Exxon Corp. .............................. 170,136 10,463,364
Mobil Corp. .............................. 136,800 9,558,900
-------------
26,197,609
-------------
Oil Service 2.9%
Halliburton Co. ........................ 35,012 2,774,701
Schlumberger Ltd. ........................ 54,619 6,827,375
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9,602,076
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Total Energy .............................. 35,799,685
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Finance 11.5%
Bank 4.7%
Banc One Corp. ........................... 55,902 2,707,753
BankAmerica Corp. ........................ 136,800 8,832,150
Chase Manhattan Corp. .................. 41,576 4,035,471
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15,575,374
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Financial Service 4.6%
American Express Co. ..................... 141,591 10,548,529
Federal National Mortgage Association . 110,400 4,816,200
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15,364,729
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Insurance 2.2%
General Re Corp. ........................ 40,941 7,451,262
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Total Finance ........................... 38,391,365
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Science & Technology 22.9%
Aerospace 4.8%
Boeing Co. .............................. 131,800 6,993,637
Raytheon Co. ........................... 176,165 8,984,415
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15,978,052
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The accompanying notes are an integral part of the financial statements.
2
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STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT PORTFOLIO (cont'd)
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Value
Shares (Note 1)
------ --------
Computer Software & Service 4.7%
First Data Corp. ........................ 65,338 $ 2,870,788
Microsoft Corp.* ........................ 99,500 12,574,313
-------------
15,445,101
-------------
Electronic Components 1.2%
AMP Inc. ................................. 96,000 4,008,000
-------------
Electronic Equipment 6.3%
L.M. Ericsson Telephone
Co. ADR Cl. B* ........................ 152,460 6,003,112
Lucent Technologies Inc.* ............... 90,522 6,523,242
Motorola Inc. ........................... 50,600 3,845,600
Perkin-Elmer Corp. ..................... 58,000 4,614,625
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20,986,579
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Office Equipment 5.9%
Hewlett-Packard Co. ..................... 160,000 8,960,000
International Business Machines Corp. . 119,600 10,786,425
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19,746,425
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Total Science & Technology ........................ 76,164,157
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Utility 1.0%
Telephone 1.0%
AirTouch Communications Inc.* ............ 123,800 3,389,025
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Total Utility .................................... 3,389,025
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Total Common Stocks (Cost $92,717,035) ............ 329,966,212
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Principal Maturity
Amount Date
--------- --------
SHORT-TERM OBLIGATIONS 1.2%
American Express Credit Corp.,
5.50% ..................... $3,955,000 7/01/1997 3,955,000
------------
Total Short-Term Obligations (Cost $3,955,000) ...... 3,955,000
------------
Total Investments (Cost $96,672,035)--100.2% ......... 333,921,212
Cash and Other Assets, Less Liabilities--(0.2)% ...... (638,292)
------------
Net Assets--100.0% ................................. $333,282,920
============
Federal Income Tax Information:
At June 30, 1997, the net unrealized appreciation of
investments based on cost for Federal income tax
purposes of $83,889,247 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost .................................... $250,242,415
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value ....................................... (210,450)
------------
$250,031,965
============
* Nonincome-producing securities
ADR stands for American Depositary Receipt, representing ownership of foreign
securities.
The accompanying notes are an integral part of the financial statements.
3
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STATE STREET RESEARCH EXCHANGE FUND
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STATEMENT OF ASSETS AND LIABILITIES
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June 30, 1997 (Unaudited)
Assets
Investments, at value (Cost $96,672,035) (Note 1) ......... $333,921,212
Cash ...................................................... 44,652
Dividends and interest receivable ........................ 314,973
Other assets ............................................. 1,509
-------------
334,282,346
Liabilities
Dividends payable ....................................... 524,446
Accrued management fee (Note 2) ........................... 389,378
Accrued trustees' fees (Note 2) ........................... 13,590
Accrued transfer agent and shareholder services (Note 2) 6,424
Other accrued expenses .................................... 65,588
-------------
999,426
-------------
Net Assets $333,282,920
=============
Net Assets consist of:
Undistributed net investment income ..................... $ 883,176
Unrealized appreciation of investments .................. 237,249,177
Accumulated net realized gain ........................... 4,980,982
Shares of beneficial interest ........................... 90,169,585
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$333,282,920
=============
Net Asset Value per share
($333,282,920 [divided by] 831,910 shares of beneficial
interest) ............................................... $400.62
=============
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STATEMENT OF OPERATIONS
- -------------------------------------
For the six months ended June 30, 1997 (Unaudited)
Investment Income
Dividends, net of foreign taxes of $35,455 ............... $ 2,814,288
Interest ................................................ 105,999
------------
2,920,287
Expenses
Management fee (Note 2) ................................. 758,874
Custodian fee .......................................... 35,580
Trustees' fees (Note 2) ................................. 15,110
Audit fee ............................................. 12,873
Transfer agent and shareholder services (Note 2) ...... 11,044
Reports to shareholders ................................. 10,867
Legal fees ............................................. 2,313
Miscellaneous .......................................... 8,231
------------
854,892
------------
Net investment income ................................. 2,065,395
------------
Realized and Unrealized Gain on Investments
Net realized gain on investments (Notes 1 and 3) ...... 4,980,982
Net unrealized appreciation of investments ............ 56,494,573
------------
Net gain on investments ................................. 61,475,555
------------
Net increase in net assets resulting from operations ... $63,540,950
============
The accompanying notes are an integral part of the financial statements.
4
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STATE STREET RESEARCH EXCHANGE FUND
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STATEMENT OF CHANGES IN NET ASSETS
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Six months ended
June 30, 1997 Year ended
(Unaudited) December 31, 1996
------------------ ------------------
Increase (Decrease) in Net Assets
Operations:
Net investment income ......... $ 2,065,395 $ 3,490,601
------------ -------------
Net realized gain on
investments .................. 4,980,982 15,724,519
Provision for federal income
tax ........................... -- (2,598,359)
------------ -------------
4,980,982 13,126,160
------------ -------------
Net unrealized appreciation of
investments .................. 56,494,573 40,186,634
------------ -------------
Net increase resulting from
operations .................. 63,540,950 56,803,395
------------ -------------
Dividends from net
investment income ............ (1,259,601) (3,498,914)
------------ -------------
Distribution from net realized
gains ........................ -- (432,035)
------------ -------------
Share transactions:
Net asset value of shares
issued in payment of:
Distribution from net
realized gains ............... -- 130,117
Dividends from net
investment income ............ 88,674 333,745
Cost of shares repurchased ...... (5,811,431) (10,034,082)
------------ -------------
Net decrease from fund share
transactions .................. (5,722,757) (9,570,220)
------------ -------------
Total increase in net assets ... 56,558,592 43,302,226
Net Assets
Beginning of period ............ 276,724,328 233,422,102
------------ -------------
End of period (including
undistributed net
investment income of
$883,176 and $77,382,
respectively) ............... $333,282,920 $ 276,724,328
============ =============
Number of shares:
Issued upon reinvestment of:
Distribution from net
realized gains ............... -- 398
Dividends from net
investment income ............ 262 934
Repurchased ..................... (15,435) (33,611)
------------ -------------
Net decrease in fund shares . (15,173) (32,279)
------------ -------------
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NOTES TO UNAUDITED FINANCIAL STATEMENTS
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June 30, 1997
Note 1
State Street Research Exchange Fund (the "Fund"), is a series of State Street
Research Exchange 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 Exchange Fund, Inc., a Massachusetts corporation. The
Fund is presently the only series of the Trust.
The investment objective of the Fund is to provide long-term growth of capital
and, secondarily, long-term growth of income. In seeking to achieve its
investment objective, the Fund invests primarily in common stocks, or securities
convertible into common stocks, that have long-term growth potential.
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 with respect to net
investment income since the Fund has elected to qualify under Subchapter M of
the Internal Revenue Code and its policy is to distribute substantially all of
such income. 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. The Fund retains and designates as undistributed
gains all of its taxable net long-term capital gains and pays Federal income
taxes thereon on behalf of the shareholders.
C. Dividends
Dividends from net investment income are declared and paid or reinvested
quarterly. Net realized short-term capital gains, if any, are distributed
annually.
The accompanying notes are an integral part of the financial statements.
5
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STATE STREET RESEARCH EXCHANGE FUND
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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. The permanent book and
tax basis difference relating to shareholder distributions will result in
reclassifications to shares of beneficial interest.
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.
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 0.50% 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 six months
ended June 30, 1997, the fees pursuant to such agreement amounted to $758,874.
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, 1997, the amount of
such expenses was $2,991.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$15,110 during the six months ended June 30, 1997.
Note 3
For the six months ended June 30, 1997, exclusive of short-term investments and
U.S. Government obligations, purchases and sales of securities, including
$5,602,100 representing redemptions in kind, aggregated $3,316,978 and
$5,916,456, respectively.
Note 4
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
At June 30, 1997, the Adviser owned 13,766 shares of the Fund.
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FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a share outstanding throughout each period:
Six months ended
June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $326.68
-------
Net investment income 2.47
Net realized and unrealized gain (loss) on investments* 72.97
-------
Total from investment operations 75.44
-----
Dividends from net investment income (1.50)
Distributions from net realized gains --
-------
Total distributions (1.50)
-------
Net asset value, end of year $400.62
=======
Total return 23.14%+
Net assets at end of period (000s) $333,283
Ratio of operating expenses to average net assets 0.56%[dbldag]
Ratio of net investment income to average net assets 1.36%[dbldag]
Portfolio turnover rate 1.11%
Average commission rate@ $0.0201
*After provision for Federal tax on retained capital
gains at end of period of --
<TABLE>
<CAPTION>
Year ended December 31
--------------------------------------------------------------
1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $265.44 $204.13 $205.81 $205.98 $198.84
------- ------- ------- ------- -------
Net investment income 4.09 3.63 3.79 3.47 3.28
Net realized and unrealized gain (loss) on investments* 61.76 61.75 (1.67) (0.24) 7.06
------- ------- ------- ------- -------
Total from investment operations 65.85 65.38 2.12 3.23 10.34
------- ------- ------- ------- -------
Dividends from net investment income (4.10) (3.80) (3.80) (3.40) (3.20)
Distributions from net realized gains (0.51) (0.27) -- -- --
------- ------- ------- ------- -------
Total distributions (4.61) (4.07) (3.80) (3.40) (3.20)
------- ------- ------- ------- -------
Net asset value, end of year $326.68 $265.44 $204.13 $205.81 $205.98
======= ======= ======= ======= =======
Total return 26.06% 34.44% 3.44% 4.88% 6.75%
Net assets at end of period (000s) $276,724 $233,422 $195,150 $206,153 $209,922
Ratio of operating expenses to average net assets 0.57% 0.58% 0.57% 0.62% 0.59%
Ratio of net investment income to average net assets 1.36% 1.49% 1.80% 1.65% 1.63%
Portfolio turnover rate 5.39% 11.67% 16.31% 22.10% 10.68%
Average commission rate@ $0.0298 -- -- -- --
*After provision for Federal tax on retained capital gains at end
of period of $3.07 $4.64 $4.88 $6.79 $2.94
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[dbldag] Annualized
+ Represents aggregate return for the period without annualization.
@ Average commission rate per share paid for security trades beginning
with the fiscal year ended December 31, 1996.
6
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH EXCHANGE TRUST
- --------------------------------------------------------------------------------
Fund Information
State Street Research
Exchange 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
James M. Weiss
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
Amy L. Simmons
Assistant Secretary
Trustees
Ralph F. Verni
Chairman of the Board,
President, Chief Executive
Officer and Director,
State Street Research &
Management Company
Steve A. Garban
Retired; formerly Senior Vice
President for Finance and
Operations and Treasurer, The
Pennsylvania State University
Malcolm T. Hopkins
Former Vice Chairman of the
Board and Chief Financial Officer,
St. Regis Corp.
Edward M. Lamont
Formerly in banking
(Morgan Guaranty Trust
Company of New York);
presently engaged in private
investments and civic affairs
Robert A. Lawrence
Associate, 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
7
<PAGE>
[BACK COVER]
State Street Research Exchange Fund
One Financial Center
Boston, MA 02111
Bulk Rate
U.S. Postage
PAID
Randolph, 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 Research logo]
This report is prepared for the general information of current shareholders.
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: 4100-970821(0998)SSR-LD EX-469E-897IBS
