<PAGE>
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STATE STREET RESEARCH
- -------------------------------------------------------------------------------
EXCHANGE FUND
----------------
SEMIANNUAL REPORT
June 30, 1999
--------------------
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
[LOGO] STATE STREET RESEARCH
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT UPDATE
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INVESTMENT ENVIRONMENT
THE ECONOMY
o The U.S. economy surprised market watchers with an annualized 6.1% growth rate
in the last quarter of 1998. Growth slowed in the first half of 1999, ending
at an annualized 2.3%.
o Inflation remained low, but spiked its first real advance in more than a year
as the price of crude oil rose more than 40% in the first half of the year.
o Americans earned more -- and spent more. Meanwhile, the nation's savings rate
slipped further into negative territory. It stood at -1.2% at mid-year.
THE MARKETS
o The S&P 500, a broad measure of common stock performance, gained 12.38% for
the six months ended June 30, 1999.(1) The gap between large company growth
stocks and the rest of the market narrowed, the result of growing concern over
their premium valuations plus the Fed's announced predilection for an interest
rate hike -- which it delivered at the end of the period.
o U.S. Treasury bonds lost ground as the yield on the 30-year benchmark rose
above 6.0%. High-yield bonds, which had weakened late in 1998, rebounded in
the first half of 1999.
THE FUND
OVER THE PAST SIX MONTHS
o For the six months ended June 30, 1999, State Street Research Exchange Fund
gained 14.89%. The Fund outperformed the Lipper average growth and income
fund, which returned 10.93%.
o The Fund continued to perform well under changing market conditions. The
diversified, high-quality portfolio includes value-oriented issues and
petrochemical and bank stocks that respond to the business cycle.
CURRENT STRATEGY
o We continue to believe that the U.S. stock market will show low double-digit
returns for 1999, with small- and mid-cap stocks narrowing the performance gap
with large company stocks.
o The strong growth, low inflation environment favoring large companies is
supportive for Exchange Fund.
June 30, 1999
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, 1999)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (2)
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LIFE OF FUND
(since 12/17/76) 10 YEARS 5 YEARS 1 YEAR
- ------------------------------------------------------------------------
15.50% 18.14% 28.40% 23.95%
- ------------------------------------------------------------------------
TOP 10 STOCK POSITIONS
(by percentage of net assets)
(1) IBM Computer systems 6.0%
(2) LUCENT TECHNOLOGIES Telecommunications 5.1%
(3) MICROSOFT Computer software & service 4.1%
(4) DAYTON HUDSON Retail department stores 4.1%
(5) AMERICAN EXPRESS Financial service 3.8%
(6) PFIZER Pharmaceuticals 3.8%
(7) JOHNSON & JOHNSON Healthcare products 3.8%
(8) MERCK Pharmaceuticals 3.4%
(9) MOBIL Oil 2.8%
(10) EXXON Oil 2.7%
These securities represent an aggregate of 39.6%
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)
DRUGS & BIOTECHNOLOGY 15.0%
MULTI-SECTOR COMPANIES 9.7%
INTEGRATED OIL 7.7%
COMPUTER TECNOLOGY 7.6%
COMMUNICATIONS TECHNOLOGY 7.2%
Total: 47.2%
(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.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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INVESTMENT PORTFOLIO
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.2%
AUTOMOBILES & TRANSPORTATION 2.5%
AUTOMOTIVE PARTS 0.4%
Delphi Automotive Systems Corp. .................... 104,840 $ 1,946,083
------------
AUTOMOBILES 2.1%
General Motors Corp. ............................... 150,000 9,900,000
------------
Total Automobiles & Transportation ................. 11,846,083
------------
CONSUMER DISCRETIONARY 8.3%
CONSUMER PRODUCTS 2.0%
Gillette Co. ....................................... 236,400 9,692,400
------------
RETAIL 6.3%
Dayton Hudson Corp. ................................ 301,104 19,571,760
Wal-Mart Stores, Inc. .............................. 223,200 10,769,400
------------
30,341,160
------------
Total Consumer Discretionary ....................... 40,033,560
------------
CONSUMER STAPLES 7.9%
BEVERAGES 3.1%
Anheuser-Busch Companies, Inc. ..................... 112,600 7,987,562
Coca-Cola Co. ...................................... 107,535 6,720,938
------------
14,708,500
------------
FOODS 1.2%
General Mills Inc. ................................. 69,200 5,561,950
------------
HOUSEHOLD PRODUCTS 2.3%
Procter & Gamble Co. ............................... 123,200 10,995,600
------------
TOBACCO 1.3%
Philip Morris Companies, Inc. ...................... 160,300 6,442,056
------------
Total Consumer Staples ............................. 37,708,106
------------
FINANCIAL SERVICES 12.7%
BANKS & SAVINGS & LOAN 5.6%
Bank of America Corp. .............................. 154,802 11,348,922
Bank One Corp. ..................................... 138,492 8,248,930
Chase Manhattan Corp. .............................. 83,152 7,203,042
------------
26,800,894
------------
FINANCIAL DATA PROCESSING SERVICES & SYSTEMS 1.7%
First Data Corp. ................................... 165,338 8,091,228
------------
MISCELLANEOUS FINANCIAL 5.4%
American Express Co. ............................... 141,591 18,424,529
Federal National Mortgage Association .............. 110,400 7,548,600
------------
25,973,129
------------
Total Financial Services ........................... 60,865,251
------------
HEALTH CARE 16.4%
DRUGS & BIOTECHNOLOGY 15.0%
American Home Products Corp. ....................... 206,944 11,899,280
Johnson & Johnson .................................. 187,444 18,369,512
Merck & Company, Inc. .............................. 222,507 16,465,518
Novartis AG ADR .................................... 92,692 6,767,406
Pfizer Inc. ........................................ 167,600 18,394,100
------------
71,895,816
------------
HOSPITAL SUPPLY 1.4%
PE Corp.-Biosystems Group .......................... 58,000 6,655,500
------------
Total Health Care ................................... 78,551,316
------------
INTEGRATED OILS 7.7%
INTEGRATED INTERNATIONAL 7.7%
BP Amoco PLC ADR ................................... 93,999 10,198,891
Exxon Corp. ........................................ 170,136 13,121,739
Mobil Corp. ........................................ 136,800 13,543,200
------------
36,863,830
------------
Total Integrated Oils .............................. 36,863,830
------------
MATERIALS & PROCESSING 4.2%
CHEMICALS 3.5%
Dow Chemical Co. ................................... 60,000 7,612,500
E.I. Du Pont De Nemours & Co. ...................... 137,000 9,358,813
------------
16,971,313
------------
FOREST PRODUCTS 0.7%
Georgia-Pacific Corp. .............................. 52,502 2,487,282
Georgia-Pacific Corp. Timber Group ................. 26,251 662,838
------------
3,150,120
------------
Total Materials & Processing ....................... 20,121,433
------------
OTHER 9.7%
MULTI-SECTOR 9.7%
Berkshire Hathaway Inc. Cl. B* ..................... 4,299 9,627,520
General Electric Co. ............................... 114,990 12,993,870
Monsanto Co. ....................................... 135,000 5,324,062
Raytheon Co. Cl. A ................................. 6,377 439,216
Raytheon Co. Cl. B ................................. 176,165 12,397,612
Tyco International Ltd. ............................ 62,860 5,955,985
------------
46,738,265
------------
Total Other ........................................ 46,738,265
------------
OTHER ENERGY 1.4%
OIL WELL EQUIPMENT & SERVICES 1.4%
Schlumberger Ltd. .................................. 109,238 6,957,095
------------
Total Other Energy ................................. 6,957,095
------------
PRODUCER DURABLES 6.0%
AEROSPACE 1.2%
Boeing Co. ......................................... 131,800 5,823,913
------------
MACHINERY 1.4%
Caterpillar Inc. ................................... 116,800 7,008,000
------------
OFFICE FURNITURE & BUSINESS EQUIPMENT 2.0%
Xerox Corp. ........................................ 160,000 9,450,000
------------
PRODUCTION TECHNOLOGY EQUIPMENT 1.4%
Millipore Corp. .................................... 150,000 6,084,375
PE Corp.-Celera Genomics Group* .................... 29,000 469,437
------------
6,553,812
------------
Total Producer Durables ............................ 28,835,725
------------
TECHNOLOGY 18.9%
COMMUNICATIONS TECHNOLOGY 7.2%
L.M. Ericsson Telephone Co. ADR Cl. B .............. 304,920 10,043,303
Lucent Technologies Inc. ........................... 362,088 24,418,309
------------
34,461,612
------------
COMPUTER SOFTWARE 4.1%
Microsoft Corp.* ................................... 217,279 19,595,850
------------
COMPUTER TECHNOLOGY 7.6%
Hewlett-Packard Co. ................................ 78,000 7,839,000
International Business Machines Corp. .............. 223,725 28,916,456
------------
36,755,456
------------
Total Technology ................................... 90,812,918
------------
UTILITIES 2.5%
TELECOMMUNICATIONS 2.5%
Vodafone AirTouch PLC ADR .......................... 61,900 12,194,300
------------
Total Utilities .................................... 12,194,300
------------
Total Common Stocks (Cost $107,531,363) ............ 471,527,882
------------
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PRINCIPAL MATURITY
AMOUNT DATE
- -------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS 1.7%
American Express Credit Corp., 4.95% $5,900,000 7/01/1999 5,900,000
Ford Motor Credit Co., 5.06% ........ 2,362,000 7/08/1999 2,362,000
------------
Total Short-Term Obligations (Cost $8,262,000) ................. 8,262,000
------------
Total Investments (Cost $115,793,363) - 99.9% .................. 479,789,882
Cash and Other Assets, Less Liabilities - 0.1% ................. 494,689
------------
Net Assets - 100.0% ............................................ $480,284,571
============
Federal Income Tax Information:
At June 30, 1999, the net unrealized appreciation of investments
based on cost for Federal income tax purposes of $104,450,227
was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost .............. $375,339,655
------------
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value .............. --
------------
$375,339,655
============
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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>
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STATEMENT OF ASSETS AND LIABILITIES
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ASSETS
Investments, at value (Cost $115,793,363) (Note 1) ........... $479,789,882
Cash ......................................................... 69,432
Receivable for securities sold ............................... 1,114,200
Dividends and interest receivable ............................ 449,259
Other assets ................................................. 18,235
------------
481,441,008
LIABILITIES
Accrued management fee (Note 2) .............................. 586,653
Dividends payable ............................................ 491,328
Accrued trustees' fees (Note 2) .............................. 20,148
Accrued transfer agent and shareholder services
(Note 2) ................................................... 12,026
Other accrued expenses ....................................... 46,282
------------
1,156,437
------------
NET ASSETS ................................................... $480,284,571
============
Net Assets consist of:
Undistributed net investment income ........................ $ 727,672
Unrealized appreciation of investments ..................... 363,996,519
Accumulated net realized gain .............................. 13,662,410
Paid-in capital ............................................ 101,897,970
------------
$480,284,571
============
Net Asset Value per share ($480,284,571 / 799,504 shares) .... $600.73
=======
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the six months ended June 30, 1999 (Unaudited)
INVESTMENT INCOME
Dividends, net of foreign taxes of $36,841 ................... $ 2,843,433
Interest ..................................................... 223,950
-----------
3,067,383
EXPENSES
Management fee (Note 2) ...................................... 1,127,715
Custodian fee ................................................ 39,113
Trustees' fees (Note 2) ...................................... 20,148
Audit fee .................................................... 13,442
Legal fees ................................................... 12,944
Transfer agent and shareholder services (Note 2) ............. 12,026
Reports to shareholders ...................................... 5,574
Miscellaneous ................................................ 2,307
-----------
1,233,269
Fees paid indirectly (Note 2) ................................ (624)
-----------
1,232,645
-----------
Net investment income ........................................ 1,834,738
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments (Notes 1 and 3) ............. 13,662,410
Net unrealized appreciation of investments ................... 48,023,378
-----------
Net gain on investments ...................................... 61,685,788
-----------
Net increase in net assets resulting from operations ......... $63,520,526
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
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STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED JUNE 30, 1999
DECEMBER 31, 1998 (UNAUDITED)
-----------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income .................. $ 4,113,834 $ 1,834,738
------------ ------------
Net realized gain on investments ....... 23,963,046 13,662,410
Provision for federal income tax ....... (7,994,984) --
------------ ------------
15,968,062 13,662,410
------------ ------------
Net unrealized appreciation of
investments .......................... 69,036,313 48,023,378
------------ ------------
Net increase resulting from
operations ........................... 89,118,209 63,520,526
------------ ------------
Dividends from net investment income ... (4,113,379) (1,208,618)
------------ ------------
Share transactions:
Net asset value of shares issued
in payment of dividends .............. 623,531 212,842
Cost of shares repurchased ............. (2,724,029) (13,434,475)
------------ ------------
Net decrease from fund share
transactions ......................... (2,100,498) (13,221,633)
------------ ------------
Total increase in net assets ........... 82,904,332 49,090,275
NET ASSETS
Beginning of period .................... 348,289,964 431,194,296
------------ ------------
End of period (including undistributed
net investment income of $101,552 and
$727,672, respectively) .............. $431,194,296 $480,284,571
============ ============
Number of shares:
Issued upon reinvestment of dividends 1,261 366
Repurchased ............................ (5,833) (23,400)
------ -------
Net decrease in fund shares ............ (4,572) (23,034)
====== =======
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
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NOTES TO UNAUDITED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 1999
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 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.
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. 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. During the six months ended June 30, 1999, 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, 1999, the fees pursuant to such agreement amounted
to $1,127,715.
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, 1999, the amount of
such expenses was $2,485.
The Fund has entered into an agreement with its transfer agent whereby credits
realized as a result of uninvested cash balances were used to reduce a portion
of the Fund's expense. During the six months ended June 30, 1999 the Fund's
transfer agent fees were reduced by $624 under this agreement.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$20,148 during the six months ended June 30, 1999.
NOTE 3
For the six months ended June 30, 1999, exclusive of short-term investments
and U.S. Government obligations, purchases and sales of securities, including
$13,371,841 representing redemptions in kind, aggregated $4,692,128 and
$14,711,006, respectively.
NOTE 4
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 per value per share.
At June 30, 1999, the Adviser owned 13,766 shares of the Fund.
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
<TABLE>
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FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
For a share outstanding throughout each period:
<CAPTION>
YEARS ENDED DECEMBER 31 SIX MONTHS ENDED
------------------------------------------------------------------------- JUNE 30, 1999
1994 1995 1996 1997 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD ($) 205.81 204.13 265.44 326.68 421.09 524.22
------- ------- ------- ------- ------- -------
Net investment
income ($) .......... 3.79 3.63 4.09 4.67 5.00 2.29
Net realized and
unrealized
gain (loss) on
investments ($)* .... (1.67) 61.75 61.76 94.39 103.13 75.72
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS ($) ........ 2.12 65.38 65.85 99.06 108.13 78.01
------- ------- ------- ------- ------- -------
Dividends from
net investment
income ($) .......... (3.80) (3.80) (4.10) (4.65) (5.00) (1.50)
Distributions from net
realized gains ($) .. -- (0.27) (0.51) -- -- --
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS ($) . (3.80) (4.07) (4.61) (4.65) (5.00) (1.50)
------- ------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD ($) ..... 204.13 265.44 326.68 421.09 524.22 600.73
======= ======= ======= ======= ======= =======
Total return (%) ........ 3.44 34.44 26.06 31.71 28.09 14.89(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end
of period ($
thousands) ............ 195,150 233,422 276,724 348,290 431,194 480,285
Ratio of operating
expenses to average
net assets (%) ........ 0.57 0.58 0.57 0.56 0.56 0.55(b)
Ratio of net investment
income to average net
assets (%) ............ 1.80 1.49 1.36 1.19 1.05 0.81(b)
Portfolio turnover
rate (%) .............. 16.31 11.67 5.39 2.26 4.52 1.05
*After provision
for Federal tax
on retained
capital gains at
end of period ......... 4.88 4.64 3.07 4.20 9.72 --
- ---------------------------------------------------------------------------------------------------------------------------------
(a) Not annualized.
(b) Annualized.
</TABLE>
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
- --------------------------------------------------------------------------------
REPORT ON SPECIAL MEETING OF SHAREHOLDERS
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of State Street Research Exchange Fund
("Fund"), a series of State Street Research Exchange Trust ("Trust"), was
convened on April 6, 1999 ("Meeting"). The results of the Meeting are set
forth below.
VOTES (THOUSANDS OF SHARES)
---------------------------
ACTION ON PROPOSAL FOR WITHHELD
- --------------------------------------------------------------------------------
The following persons were elected as Trustees:
Bruce R. Bond .................................. 467.2 9.3
Steve A. Garban ................................ 467.2 9.3
Malcolm T. Hopkins ............................. 461.2 15.3
Susan M. Phillips .............................. 467.2 9.3
<PAGE>
STATE STREET RESEARCH EXCHANGE FUND
<TABLE>
- ------------------------------------------------------------------------------------------------------------
FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH EXCHANGE TRUST
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
FUND INFORMATION OFFICERS TRUSTEES
<S> <C> <C>
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 BRUCE R. BOND
One Financial Center JAMES M. WEISS Chairman of the Board,
Boston, MA 02111 Vice President Chief Executive Officer and
President,
DISTRIBUTOR KENNARD WOODWORTH, JR. PictureTel Corporation
State Street Research Vice President
Investment Services, Inc. STEVE A. GARBAN
One Financial Center GERARD P. MAUS Retired; formerly Senior Vice
Boston, MA 02111 Treasurer President for Finance and
Operations and Treasurer, The
SHAREHOLDER SERVICES JOSEPH W. CANAVAN Pennsylvania State University
State Street Research Assistant Treasurer
Service Center MALCOLM T. HOPKINS
P.O. Box 8408 DOUGLAS A. ROMICH Former Vice Chairman of the
Boston, MA 02266-8408 Assistant Treasurer Board and Chief Financial
1-800-562-0032 Officer, St. Regis Corp.
FRANCIS J. MCNAMARA, III
CUSTODIAN Secretary and General Counsel DEAN O. MORTON
State Street Bank and Retired; formerly Executive
Trust Company DARMAN A. WING Vice President, Chief
225 Franklin Street Assistant Secretary and Operating Officer and Director,
Boston, MA 02110 Assistant General Counsel Hewlett-Packard Company
LEGAL COUNSEL AMY L. SIMMONS SUSAN M. PHILLIPS
Goodwin, Procter & Hoar LLP Assistant Secretary Dean, School of Business and
Exchange Place Public Management, George
Boston, MA 02109 Washington University; former
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 EXCHANGE FUND ----------------
One Financial Center Bulk Rate
Boston, MA 02111 U.S. Postage
PAID
Permit #6
Hartford, CT
----------------
STATE STREET RESEARCH
[graphic omitted]
LASTING VALUES
--------------
LEADING IDEAS
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032
[hearing-impaired 1-800-676-7876]
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Service Center
P.O. Box 8408
Boston, MA 02266-8408
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INTERNET site:
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[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: (exp0800)SSR-LD
EX-016G-0899
