<PAGE>
- -------------------------------------------------------------------------------
STATE STREET RESEARCH
- -------------------------------------------------------------------------------
EXCHANGE FUND
----------------
SEMIANNUAL REPORT
June 30, 1998
--------------------
WHAT'S INSIDE
--------------------
INVESTMENT UPDATE
About the Fund,
economy and markets
FUND INFORMATION
Facts and figures
PLUS, COMPLETE PORTFOLIO HOLDINGS
AND FINANCIAL STATEMENTS
- ----------------------
DALBAR
HONORS COMMITMENT TO:
INVESTORS
1997
- ----------------------
For Excellence
in
Shareholder Service
STATE STREET RESEARCH FUNDS
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT UPDATE
- --------------------------------------------------------------------------------
INVESTMENT ENVIRONMENT
THE ECONOMY
o The first six months of 1998 provided solid economic growth, marked by low
inflation and good investment returns. Consumer confidence was high,
personal income rose, and interest rates remained stable.
o Favorable economic factors stimulated a boom in the housing market and
strong retail sales. Lower energy costs helped keep inflation in check.
o The economic crisis in Southeast Asia raised concerns about U.S. exports and
profits at companies with sizable foreign markets.
THE MARKETS
o The S&P 500, a broad measure of common stock performance, gained 17.72% for
the six months ended June 30, 1998.(1) Investors preferred large-cap stocks
and were willing to pay a premium for potential earnings stability.
Small-cap stocks delivered modest gains. The Russell 2000 Index, a common
measure of small company stock performance, was up 4.38% over the six-month
period.
o U.S. Treasury bonds rallied as the yield on the 30-year benchmark fell to
5.6%. High- yield bonds continued to deliver relatively strong gains.
THE FUND
OVER THE PAST SIX MONTHS
o For the six months ended June 30, 1998, State Street Research Exchange Fund
returned 18.73%. That was significantly higher than the average growth and
income fund, which returned 12.11%, as reported by Lipper Analytical
Services, Inc.
o Emphasis on technology, utilities, and materials and processing stocks
contributed to the Fund's outperformance.
o The Fund benefited by strong earnings growth among key companies represented
in the portfolio.
CURRENT STRATEGY
o We continue to emphasize larger, quality growth companies where we have a
high level of confidence in earnings growth potential. We believe these
companies continue to offer opportunity in light of the current environment:
slowing economic growth, low inflation, falling interest rates, and strong
technology spending by companies and spending in general, on the part of
consumers.
June 30, 1998
(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)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 gain
distributions and income dividends at net asset value.
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.
- --------------------------------------------------------------------------------
FUND INFORMATION (all data are for periods ended June 30, 1998)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (2)
- --------------------------------------------------------------------------------
LIFE OF FUND
(since 12/17/76) 10 YEARS 5 YEARS 1 YEAR
- --------------------------------------------------------------------------------
15.12% 18.31% 23.19% 26.99%
- --------------------------------------------------------------------------------
TOP 10 STOCK POSITIONS
(by percentage of net assets)
1 PFIZER Pharmaceuticals 4.4%
2 MICROSOFT Computer software & service 4.1%
3 AMERICAN EXPRESS Financial service 3.9%
4 JOHNSON & JOHNSON Healthcare products 3.9%
5 MERCK Pharmaceuticals 3.8%
6 LUCENT TECHNOLOGIES Telecommunications 3.7%
7 DAYTON HUDSON Retail department stores 3.6%
8 IBM Office equipment 3.3%
9 GILLETTE Personal care products 3.3%
10 EXXON Oil 3.0%
These securities represent an aggregate of 37.0%
of net assets. 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)
[GRAPHIC OMITTED]
DRUG 12.7%
OIL 7.0%
ELECTRONIC EQUIPMENT 6.7%
OFFICE EQUIPMENT 6.5%
BANK 6.3%
Total 39.2%
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 94.2%
BASIC INDUSTRIES 10.2%
CHEMICAL 5.7%
Dow Chemical Co. ........................ 60,000 $ 5,801,250
E.I. Du Pont De Nemours & Co. ........... 137,000 10,223,625
Monsanto Co. ............................ 135,000 7,543,125
------------
23,568,000
------------
ELECTRICAL EQUIPMENT 1.8%
General Electric Co. .................... 64,990 5,914,090
General Signal Corp. .................... 35,512 1,278,432
------------
7,192,522
------------
FOREST PRODUCT 0.5%
Georgia Pacific Corp. Timber Group. ..... 26,251 605,414
Georgia-Pacific Corp. ................... 26,251 1,547,168
------------
2,152,582
------------
MACHINERY 2.2%
Caterpillar Inc. ........................ 116,800 6,175,800
Millipore Corp. ......................... 99,400 2,708,650
------------
8,884,450
------------
Total Basic Industries .................. 41,797,554
------------
CONSUMER CYCLICAL 6.8%
AUTOMOTIVE 1.6%
General Motors Corp. .................... 100,000 6,681,250
------------
RETAIL TRADE 5.2%
Dayton Hudson Corp. ..................... 301,104 14,603,544
Wal-Mart Stores, Inc. ................... 111,600 6,779,700
------------
21,383,244
------------
Total Consumer Cyclical ................. 28,064,494
------------
CONSUMER STAPLE 28.8%
DRUG 12.7%
American Home Products Corp. ............ 206,944 10,709,352
Merck & Company, Inc. ................... 117,259 15,683,391
Novartis AG ADR* ........................ 92,692 7,712,049
Pfizer Inc. ............................. 167,600 18,216,025
------------
52,320,817
------------
FOOD & BEVERAGE 4.7%
Anheuser-Busch Companies, Inc. .......... 112,600 5,313,313
Coca-Cola Co. ........................... 107,535 9,194,242
General Mills Inc. ...................... 69,200 4,731,550
------------
19,239,105
------------
HOSPITAL SUPPLY 3.9%
Johnson & Johnson ....................... 215,091 15,862,961
------------
PERSONAL CARE 6.0%
Gillette Co. ............................ 236,400 13,400,925
Procter & Gamble Co. .................... 123,200 11,218,900
------------
24,619,825
------------
TOBACCO 1.5%
Philip Morris Companies, Inc. ........... 160,300 6,311,813
------------
Total Consumer Staple ................... 118,354,521
------------
ENERGY 8.8%
OIL 7.0%
Amoco Corp. ............................. 142,064 5,913,414
Exxon Corp. ............................. 170,136 12,132,823
Mobil Corp. ............................. 136,800 10,482,300
------------
28,528,537
------------
OIL SERVICE 1.8%
Schlumberger Ltd. ....................... 109,238 7,462,321
------------
Total Energy ............................ 35,990,858
------------
FINANCE 14.4%
BANK 6.3%
Banc One Corp. .......................... 138,492 7,729,585
BankAmerica Corp. ....................... 136,800 11,824,650
Chase Manhattan Corp. ................... 83,152 6,277,976
------------
25,832,211
------------
FINANCIAL SERVICE 5.6%
American Express Co. .................... 141,591 16,141,374
Federal National Mortgage Association ... 110,400 6,706,800
------------
22,848,174
------------
INSURANCE 2.5%
General Re Corp. ........................ 40,941 10,378,543
------------
Total Finance ........................... 59,058,928
------------
SCIENCE & TECHNOLOGY 23.4%
AEROSPACE 4.0%
Boeing Co. .............................. 131,800 5,873,337
Raytheon Co. Cl. A* ..................... 6,377 367,475
Raytheon Co. Cl. B* ..................... 176,165 10,415,756
------------
16,656,568
------------
COMPUTER SOFTWARE & SERVICE 5.4%
First Data Corp. ........................ 165,338 5,507,822
Microsoft Corp.* ........................ 156,000 16,906,500
------------
22,414,322
------------
ELECTRONIC COMPONENTS 0.8%
AMP Inc. ................................ 96,000 3,300,000
------------
ELECTRONIC EQUIPMENT 6.7%
L.M. Ericsson Telephone Co. ADR Cl. B* .. 304,920 8,728,335
Lucent Technologies Inc. ................ 181,044 15,060,598
Perkin-Elmer Corp. ...................... 58,000 3,606,875
------------
27,395,808
------------
OFFICE EQUIPMENT 6.5%
Hewlett-Packard Co. ..................... 78,000 4,670,250
International Business Machines Corp. ... 119,600 13,731,575
Xerox Corp. ............................. 80,000 8,130,000
------------
26,531,825
------------
Total Science & Technology .............. 96,298,523
------------
UTILITY 1.8%
TELEPHONE 1.8%
AirTouch Communications Inc.* ........... 123,800 7,234,562
------------
Total Utility ........................... 7,234,562
------------
Total Common Stocks (Cost $99,340,183) .. 386,799,440
------------
<TABLE>
<CAPTION>
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PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 6.0%
<S> <C> <C> <C>
Ford Motor Credit Co., 5.56% ..................... $12,560,000 7/02/1998 $ 12,560,000
General Electric Capital Corp., 5.62% ............ 12,013,000 7/08/1998 12,013,000
--------------
Total Commercial Paper (Cost $24,573,000) ........................................... 24,573,000
--------------
Total Investments (Cost $123,913,183) - 100.2% ...................................... 411,372,440
Cash and Other Assets, Less Liabilities - (0.2%) .................................... (661,578)
--------------
Net Assets - 100.0% ................................................................. $ 410,710,862
==============
</TABLE>
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- --------------------------------------------------------------------------------
Federal Income Tax Information:
At June 30, 1998, the net unrealized appreciation of
investments based on cost for Federal income tax
purposes of $111,910,072 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ........................................ $ 299,462,368
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value ...................................... --
--------------
$ 299,462,368
==============
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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.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
June 30, 1998 (Unaudited)
ASSETS
Investments, at value (Cost $123,913,183) (Note 1) ......... $ 411,372,440
Cash ....................................................... 78,241
Dividends and interest receivable .......................... 376,856
Other assets ............................................... 150
--------------
411,827,687
LIABILITIES
Dividends payable .......................................... 523,765
Accrued management fee (Note 2) ............................ 500,804
Accrued trustees' fees (Note 2) ............................ 19,814
Accrued transfer agent and shareholder services
(Note 2) ................................................. 8,048
Other accrued expenses ..................................... 64,394
--------------
1,116,825
--------------
NET ASSETS $ 410,710,862
==============
Net Assets consist of:
Undistributed net investment income ...................... $ 872,009
Unrealized appreciation of investments ................... 287,459,257
Accumulated net realized gain ............................ 22,533,243
Paid-in capital .......................................... 99,846,353
--------------
$ 410,710,862
==============
Net Asset Value per share
($410,710,862 / 824,028 shares) .......................... $498.42
==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the six months ended June 30, 1998 (Unaudited)
INVESTMENT INCOME
Dividends, net of foreign taxes of $21,744 ................. $ 2,635,919
Interest ................................................... 434,924
---------------
3,070,843
EXPENSES
Management fee (Note 2) .................................... 957,361
Custodian fee .............................................. 41,192
Trustees' fees (Note 2) .................................... 19,814
Audit fee .................................................. 14,889
Legal fees ................................................. 11,555
Transfer agent and shareholder services (Note 2) ........... 9,533
Reports to shareholders .................................... 7,157
Miscellaneous .............................................. 2,162
---------------
1,063,663
---------------
Net investment income ...................................... 2,007,180
---------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments (Notes 1 and 3) ........... 22,533,243
Net unrealized appreciation of investments ................. 40,522,429
---------------
Net gain on investments .................................... 63,055,672
---------------
Net increase in net assets resulting from operations ....... $ 65,062,852
===============
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED JUNE 30, 1998
DECEMBER 31, 1997 (UNAUDITED)
-----------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income .............. $ 3,881,593 $ 2,007,180
------------ ------------
Net realized gain on investments ... 16,583,125 22,533,243
Provision for federal income tax ... (3,472,689) --
------------ ------------
13,110,436 22,533,243
------------ ------------
Net unrealized appreciation of
investments ...................... 66,182,224 40,522,429
------------ ------------
Net increase resulting from
operations ....................... 83,174,253 65,062,852
------------ ------------
Dividends from net investment income (3,864,410) (1,236,268)
------------ ------------
Share transactions:
Net asset value of shares issued
in payment of dividends .......... 297,743 177,771
Cost of shares repurchased ......... (8,041,950) (1,583,457)
------------ ------------
Net decrease from fund share
transactions ..................... (7,744,207) (1,405,686)
------------ ------------
Total increase in net assets ....... 71,565,636 62,420,898
NET ASSETS
Beginning of period ................ 276,724,328 348,289,964
------------ ------------
End of period (including
undistributed net investment
income of $101,097 and
$872,009, respectively) .......... $348,289,964 $410,710,862
============ ============
Number of shares:
Issued upon reinvestment
of dividends ...................... 754 360
Repurchased ........................ (20,727) (3,442)
------------ ------------
Net decrease in fund shares ........ (19,973) (3,082)
------------ ------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
NOTES TO UNAUDITED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 1998
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 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 maintains a policy 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 tax- able 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.
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 paid-in capital.
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. 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. During the six months ended June 30, 1998, there were
no loaned securities.
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, 1998, the fees pursuant to such agreement amounted
to $957,361.
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. During the six months ended June 30, 1998, the amount of
such expenses was $2,724.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$19,814 during the six months ended June 30, 1998.
NOTE 3
For the six months ended June 30, 1998, exclusive of short-term investments
and U.S. Government obligations, purchases and sales of securities, including
$1,138,962 representing redemptions in kind, aggregated $11,553,184 and
$28,293,119, respectively.
NOTE 4
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 per value per share.
At June 30, 1998, the Adviser owned 13,766 shares of the Fund.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31 SIX MONTHS ENDED
---------------------------------------------- JUNE 30, 1998
1993 1994 1995 1996 1997 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD ($) 205.98 205.81 204.13 265.44 326.68 421.09
------ ------ ------ ------ ------ ------
Net investment income ($) 3.47 3.79 3.63 4.09 4.67 2.44
Net realized and unrealized
gain (loss) on investments
($)* (0.24) (1.67) 61.75 61.76 94.39 76.39
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS ($) 3.23 2.12 65.38 65.85 99.06 78.83
------ ------ ------ ------ ------ ------
Dividends from net investment
income ($) (3.40) (3.80) (3.80) (4.10) (4.65) (1.50)
------ ------ ------ ------ ------ ------
Distributions from net realized
gains ($) -- -- (0.27) (0.51) -- --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ($) (3.40) (3.80) (4.07) (4.61) (4.65) (1.50)
------ ------ ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD ($) 205.81 204.13 265.44 326.68 421.09 498.42
====== ====== ====== ====== ====== ======
Total return (%) 4.88 3.44 34.44 26.06 31.71 18.73(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of
period ($ thousands) 206,153 195,150 233,422 276,724 348,290 410,711
Ratio of operating expenses to
average net assets (%) 0.62 0.57 0.58 0.57 0.56 0.56(2)
Ratio of net investment
income to average net assets (%) 1.65 1.80 1.49 1.36 1.19 1.05(2)
Portfolio turnover rate (%) 22.10 16.31 11.67 5.39 2.26 3.14
*After provision for Federal tax
on retained capital gains at
end of period 6.79 4.88 4.64 3.07 4.20 --
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) Not annualized.
(2) Annualized.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
<TABLE>
<CAPTION>
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FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH EXCHANGE TRUST
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FUND INFORMATION OFFICERS TRUSTEES
STATE STREET RESEARCH RALPH F. VERNI RALPH F. VERNI
EXCHANGE 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 STEVE A. GARBAN
One Financial Center JAMES M. WEISS Retired; formerly Senior Vice
Boston, MA 02111 Vice President President for Finance and
Operations and Treasurer, The
DISTRIBUTOR KENNARD WOODWORTH, JR. Pennsylvania State University
State Street Research Vice President
Investment Services, Inc. MALCOLM T. HOPKINS
One Financial Center GERARD P. MAUS Former Vice Chairman of the
Boston, MA 02111 Treasurer Board and Chief Financial
Officer, St. Regis Corp.
SHAREHOLDER SERVICES JOSEPH W. CANAVAN
State Street Research Assistant Treasurer EDWARD M. LAMONT
Service Center Formerly in banking
P.O. Box 8408 DOUGLAS A. ROMICH (with an affiliate of
Boston, MA 02266-8408 Assistant Treasurer J.P. Morgan & Co. in New York);
1-800-562-0032 presently engaged in private
FRANCIS J. MCNAMARA, III investments and civic affairs
CUSTODIAN Secretary and General Counsel
State Street Bank and ROBERT A. LAWRENCE
Trust Company DARMAN A. WING Formerly Partner, Saltonstall & Co.
225 Franklin Street Assistant Secretary and
Boston, MA 02110 Assistant General Counsel DEAN O. MORTON
Retired; formerly Executive
AMY L. SIMMONS Vice President, Chief
Assistant Secretary Operating Officer and Director,
Hewlett-Packard 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
</TABLE>
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND ----------------
One Financial Center Bulk Rate
Boston, MA 02111 U.S. Postage
PAID
Permit #6
Hartford, CT
----------------
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032 or
WRITE us at:
State Street Research
Service Center
P.O. Box 8408
Boston, MA 02266-8408
E-MAIL us at:
[email protected]
INTERNET site:
www.ssrfunds.com
[LOGO] STATE STREET RESEARCH
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: 5186-980818(exp0999)SSR-LD
EX-211F-0898
