[Front cover]
[State Street Logo] State Street Research
State Street Research
Money Market Fund
Annual Report
March 31, 1996
[Photo] Person Fishing
What's inside
From the Chairman:
Favorable markets
reward investors
Fund information:
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
[Dalbar Logo}
Dalbar
Honors Commitment To:
Investors
For Excellence
in
Shareholder Service
<PAGE>
State Street Research Money Market Fund
[Photo of Ralph V. Verni]
Dear Shareholder:
Over the past 12 months, the markets continued to reward investors. The
environment was extremely favorable: The economy was growing at a slow but
reasonable pace, corporate earnings were strong, and inflation was low. More
recently, we've seen mounting evidence that the economy is picking up speed.
Job growth and sales of homes and autos have picked up, and consumer
confidence is higher.
Stocks
Over the past 12 months, large-company stocks--the household names we all
recognize--performed best. A stronger economy is generally considered to be
good for the stock market, as it can result in higher profits for
corporations.
Bonds
Bonds provided solid results over the past year. They experienced a slump
over the first three months of 1996, as bonds reacted negatively to a
stronger economy and the Federal Reserve's reluctance to cut interest rates
further.
Looking ahead
Our outlook continues to call for moderate economic growth and low
inflation--which should be positive for both stocks and bonds. We don't
believe the economy will start to overheat. In fact, with interest rates
moving higher recently, the economy could begin to slow down again. Although
there could be short-term bumps in the road for the markets, the prospects
appear favorable for long-term investors.
Sincerely,
/s/ Ralph F. Verni
Ralph F. Verni
Chairman
April 30, 1996
Investment Update
The Market
(bullet) Over the past 12 months, a slowing economy and lower interest rates
drove money market yields downward. Yields on 90-day Treasury bills
dropped from 5.87% on March 31, 1995 to 5.14% on March 31, 1996.
(bullet) In early 1996, economic growth picked up unexpectedly and interest
rates rose. Given the stronger economy, further Federal Reserve rate
cuts seem unlikely in the near future.
(bullet) Money market fund yields won't immediately reflect the recent
interest-rate increases, because they typically lag interest-rate
movements.
The Fund
(bullet) Lower interest rates and the slowing economy caused Money Market
Fund's yield to decline from 5.40% to 4.57% (for Class E shares)
over the past 12 months.
(bullet) The Fund's weighted average maturity was 41 days as of March 31,
1996. This is about 10 days shorter than the industry average. (See
the glossary below for more about weighted average maturity.)
(bullet) Money Market Fund offers low risk and stability of principal. This
was especially beneficial to shareholders in the first quarter of
1996, when turbulent markets caused concern among investors in bond
funds.
An investment in Money Market Fund is neither insured nor guaranteed by the
U.S. government, and there can be no assurance that the portfolio will be
able to maintain a stable net asset value of $1.00 per share.
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 March 31, 1996)
7-Day Yield
Class B 3.57%
- -------- ----
Class C 4.57%
- -------- ----
Class D 3.57%
- -------- ----
Class E 4.57%
Yield is calculated by annualizing the Fund's per share distributions for the
most recent seven days and dividing by the net asset value per share at the
end of the period. Yields shown reflect voluntary reduction of fund fees and
expenses. Without a reduction of Fund fees and expenses, the 7-day yield
would have been 3.37% for Class B shares, 4.37% for Class C shares, 3.37% for
Class D shares, and 4.37% for Class E shares.
Interest Rates
(March 31,1995 to March 31, 1996)
30-Year Treasury Bonds
10-Year Treasury Notes
90-Day Treasury Bills
Money Market Funds
[Line Chart]
5.52 5.85 7.19 7.43
5.53 5.85 7.05 7.33
5.51 5.8 6.28 6.65
5.48 5.56 6.2 6.62
5.36 5.57 6.42 6.84
5.27 5.44 6.29 6.65
5.25 5.41 6.18 6.5
5.22 5.49 6.02 6.33
5.23 5.48 5.75 6.13
5.19 5.07 5.57 5.95
5.05 5.04 5.57 6.02
4.83 5.01 6.1 6.47
4.76 5.14 6.32 6.67
3/95 4/95 5/95 6/95 7/95 8/95 9/95 10/95 11/95 12/95 1/96 2/96 3/96
Sources: Federal Reserve, IBC/Donoghue
Glossary
Yield: The measurement of income paid by an investment. It is stated as a
percentage.
Weighted average maturity: Expressed as a number of days, the WAM is the
average maturity of the debt securities in a money market fund.
Debt securities: These are securities issued by corporations and the U.S.
government as a way to borrow money. Some common types of debt securities
include bonds, notes, bills and commercial paper.
<PAGE>
State Street Research Money Market Fund
Investment Portfolio
March 31, 1996
<TABLE>
<CAPTION>
Principal Maturity Value
Amount Date (Note 1)
- ------------------------------- --------- -------- -------------
<S> <C> <C> <C>
COMMERCIAL PAPER 97.5%
Bank Holding Company 10.9%
Canadian Imperial Holdings
Inc., 5.09% $ 5,000,000 5/31/1996 $ 4,957,583
Canadian Imperial Holdings
Inc., 5.20% 5,000,000 6/11/1996 4,948,722
J.P. Morgan & Co., 5.08% 6,000,000 6/03/1996 5,946,660
J.P. Morgan & Co., 5.07% 5,000,000 6/05/1996 4,954,229
Toronto Dominion Holdings
(U.S.A.), 5.06% 4,000,000 6/07/1996 3,962,331
-----------
24,769,525
-----------
Canadian 13.8%
Canadian Wheat Board, 5.10% 4,000,000 5/01/1996 3,983,000
Canadian Wheat Board, 5.07% 6,000,000 6/03/1996 5,946,765
Ontario Hydro, 5.36% 5,000,000 4/02/1996 4,999,256
Ontario Hydro, 5.34% 5,000,000 4/02/1996 4,999,258
Province of Quebec, 5.27% 11,500,000 6/19/1996 11,367,006
-----------
31,295,285
-----------
Captive Automobile Finance 8.6%
Ford Motor Credit Co., 5.35% 2,749,000 4/04/1996 2,747,774
Ford Motor Credit Co., 5.24% 5,400,000 5/10/1996 5,369,346
General Motors Acceptance
Corp., 5.31% 7,000,000 4/22/1996 6,978,318
General Motors Acceptance
Corp., 5.12% 2,000,000 4/30/1996 1,991,751
General Motors Acceptance
Corp., 5.33% 2,500,000 6/17/1996 2,471,499
-----------
19,558,688
-----------
Captive Finance 7.3%
Pitney Bowes Credit Corp.,
5.12% 5,595,000 5/01/1996 5,571,128
Sears Roebuck Acceptance Corp.,
5.12% 1,000,000 4/30/1996 995,876
Sears Roebuck Acceptance Corp.,
5.10% 10,000,000 5/03/1996 9,954,667
-----------
16,521,671
-----------
Communications 6.4%
Bell Atlantic Network Funding,
5.34% 6,000,000 4/12/1996 5,990,210
BellSouth Telecommunications,
Inc., 5.23% 2,735,000 5/24/1996 2,713,941
Southwestern Bell Telephone
Co., 5.25% 6,000,000 6/27/1996 5,923,875
-----------
14,628,026
-----------
Consumer Finance 8.1%
American Express Credit Corp.,
5.35% $ 7,500,000 4/05/1996 $ 7,495,542
Beneficial Corp., 5.46% 5,000,000 4/01/1996 5,000,000
John Deere Capital Corp. 5.25% 6,000,000 6/28/1996 5,923,000
-----------
18,418,542
-----------
Diversified Finance 15.0%
CIT Group Holdings, Inc.,
5.14% 2,500,000 4/22/1996 2,492,504
CIT Group Holdings, Inc.,
5.18% 4,200,000 6/14/1996 4,155,279
General Electric Capital Corp.,
5.24% 4,000,000 4/25/1996 3,986,187
General Electric Capital Corp.,
5.09% 6,000,000 5/01/1996 5,974,550
J.C. Penney Funding Corp.,
5.13% 6,040,000 4/24/1996 6,020,204
Transamerica Finance Group,
Inc., 5.25% 4,500,000 4/17/1996 4,489,500
Transamerica Finance Group,
Inc., 5.15% 2,000,000 4/18/1996 1,995,136
Transamerica Finance Group,
Inc., 5.03% 5,000,000 5/08/1996 4,974,151
-----------
34,087,511
-----------
Electric 6.0%
Pacific Gas and Electric, 5.20% 2,608,000 4/02/1996 2,607,623
Southern California Edison Co.,
5.26% 4,000,000 4/26/1996 3,985,390
Southern California Edison Co.,
5.08% 7,000,000 5/07/1996 6,964,440
-----------
13,557,453
-----------
Food & Beverage Products 3.9%
Coca-Cola Co., 5.12% 6,000,000 4/25/1996 5,979,520
Philip Morris Companies, Inc.,
5.35% 3,000,000 4/08/1996 2,996,879
-----------
8,976,399
-----------
Grains 4.8%
Cargill, Inc., 5.32% 7,000,000 4/09/1996 6,991,725
Cargill, Inc., 5.02% 4,000,000 5/20/1996 3,972,669
-----------
10,964,394
-----------
Office Equipment 2.4%
Hewlett-Packard Co., 5.23% 5,500,000 4/26/1996 5,480,024
-----------
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
State Street Research Money Market Fund
Investment Portfolio (cont'd)
Plastic Materials 2.0%
E.I. du Pont de Nemours and
Co., 5.23% $4,500,000 5/24/1996 $ 4,465,352
-----------
Printing & Publishing 3.3%
McGraw-Hill, Inc., 5.23% 7,500,000 6/25/1996 7,407,385
-----------
Soap, Detergent 5.0%
Procter & Gamble, 5.03% 8,000,000 5/17/1996 7,948,582
Procter & Gamble, 5.20% 3,500,000 6/17/1996 3,461,072
-----------
11,409,654
-----------
Total Commercial Paper (Cost $221,539,909) 221,539,909
-----------
U.S. GOVERNMENT 2.2%
U.S. Agency Mortgage 2.2%
Federal Home Loan Mortgage
Corp., 5.30% 5,025,000 4/01/1996 5,025,000
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Total U.S. Government (Cost $5,025,000) 5,025,000
-----------
Total Investments (Cost $226,564,909)--99.7% 226,564,909
Cash and Other Assets, Less Liabilities--0.3% 582,224
-----------
Net Assets--100.0% $227,147,133
===========
</TABLE>
Statement of Assets and Liabilities
March 31, 1996
<TABLE>
<S> <C>
Assets
Investments, at value (Cost $226,564,909) (Note 1) $226,564,909
Cash 5,169
Receivable for fund shares sold 2,626,183
Receivable from Distributor (Note 3) 41,252
Other assets 7,664
-----------
229,245,177
Liabilities
Payable for fund shares redeemed 1,447,656
Dividends payable 244,948
Accrued transfer agent and shareholder services (Note 2) 210,881
Accrued management fee (Note 2) 97,617
Accrued distribution and service fees (Note 5) 11,015
Accrued trustees' fees (Note 2) 10,595
Other accrued expenses 75,332
-----------
2,098,044
-----------
Net Assets $227,147,133
===========
Net Assets consist of:
Shares of beneficial interest $227,147,133
===========
Net Asset Value and offering price per share of
Class B shares ($11,883,647 / 11,883,647 shares of
beneficial interest)* $1.00
===========
Net Asset Value, offering price and redemption price per
share of Class C shares ($16,191,218 / 16,191,218
shares of beneficial interest) $1.00
===========
Net Asset Value and offering price per share of
Class D shares ($1,963,536 / 1,963,536 shares of
beneficial interest)* $1.00
===========
Net Asset Value, offering price and redemption price per
share of Class E shares ($197,108,732 / 197,108,732
shares of beneficial interest) $1.00
===========
</TABLE>
* Redemption price per share for Class B and Class D is equal to net asset
value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
State Street Research Money Market Fund
Statement of Operations
For the year ended March 31, 1996
<TABLE>
<S> <C>
Investment Income
Interest $12,348,893
Expenses
Management fee (Note 2) 1,063,955
Transfer agent and shareholder services (Note 2) 820,302
Registration fees 107,702
Custodian fee 105,470
Reports to shareholders 31,654
Trustees' fees (Note 2) 31,434
Distribution and service fees--Class B (Note 5) 111,938
Distribution and service fees--Class D (Note 5) 7,038
Audit fee 23,332
Legal fees 384
Miscellaneous 11,867
----------
2,315,076
Expenses borne by the Distributor (Note 3) (600,157)
----------
1,714,919
----------
Net investment income and net increase in net
assets resulting from operations $10,633,974
==========
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year ended March 31
----------------------------
1996 1995
- ---------------------------- ----------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income and
net increase resulting
from operations $ 10,633,974 $ 7,152,656
--------- -----------
Dividends from net investment
income:
Class B (454,124) (217,870)
Class C (716,481) (256,892)
Class D (28,738) (42,149)
Class E (9,434,631) (6,635,745)
--------- -----------
(10,633,974) (7,152,656)
--------- -----------
Net increase from fund share
transactions (Note 6) 58,605,553 25,424,190
--------- -----------
Total increase in net assets 58,605,553 25,424,190
Net Assets
Beginning of year 168,541,580 143,117,390
--------- -----------
End of year $227,147,133 $168,541,580
========= ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
State Street Research Money Market Fund
Notes to Financial Statements
March 31, 1996
Note 1
State Street Research Money Market Fund, formerly MetLife-State Street
Research Money Market Fund (the "Fund") is a series of State Street Research
Money Market Trust, formerly MetLife-State Street Money Market Trust (the
"Trust"), which was organized as a Massachusetts business trust in April,
1985 and is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company. The Fund commenced operations
in August, 1986. The Fund is presently the only active series of the Trust,
although the Trustees have the authority to create an unlimited number of
series.
The investment objective of the Fund is to seek a high level of current
income consistent with preservation of capital and maintenance of liquidity.
The Fund seeks to achieve its investment objective by investing in securities
issued or guaranteed as to principal and interest by the U.S. Government or
its agencies or instrumentalities as well as high quality, short-term money
market instruments such as bank certificates of deposit, bankers' acceptances
and such short-term corporate debt securities as commercial paper and master
demand notes.
The Fund offers four classes of shares. Class B shares are subject to a
contingent deferred sales charge on certain redemptions made within five
years of purchase and pay annual distribution and service fees of 1.00%.
Class B shares automatically convert into Class E shares (which pay lower
ongoing expenses) at the end of eight years after the issuance of the Class B
shares. Class C shares are only offered to certain employee benefit plans and
large institutions. No sales charge is imposed at the time of purchase or
redemption of Class C shares. Class C shares do not pay any distribution or
service fees. Class D shares are subject to a contingent deferred sales
charge of 1.00% on any shares redeemed within one year of their purchase.
Class D shares also pay annual distribution and service fees of 1.00%. Class
E shares are offered to any individual. Class E shares are not subject to any
initial or contingent deferred sales charges and 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 Plan of Distribution, related specifically to that
class. The Trustees declare separate dividends on each class of shares.
The following significant accounting 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. Investment Valuation
The Fund values securities at amortized cost, pursuant to which the Fund must
adhere to certain conditions. The amortized cost method involves valuing a
portfolio security initially at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium regardless of the effect
of fluctuating interest rates on the market value of the investments.
B. Security Transactions
Security transactions are accounted for on the trade date (date the order to
buy or sell is executed). Realized gains or losses, if any, are reported on
the basis of identified cost of securities delivered.
C. Net Investment Income
Net investment income is determined daily and consists of interest accrued
and discount earned, less amortization of premium and the estimated daily
expenses of the Fund. Interest income is accrued daily as earned.
D. Dividends
Dividends from net investment income are declared daily and paid or
reinvested monthly. Net realized capital gains, if any, are distributed
annually, unless additional distributions are required for compliance with
applicable tax regulations.
E. Federal Income Taxes
No provision for Federal income taxes is necessary because the Fund has
elected to qualify under Subchapter M of the Internal Revenue Code and its
policy is to distribute all of its taxable income, including net realized
capital gains, within the prescribed time periods.
F. 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 an agreement under which the Adviser
earns monthly fees at an annual rate of 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 year ended March 31, 1996, the fees pursuant to
such agreement amounted to $1,063,955.
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 year ended March 31, 1996, the amount of such
expenses was $168,089.
The fees of the Trustees not currently affiliated with the Adviser amounted
to $31,434 during the year ended March 31, 1996.
5
<PAGE>
State Street Research Money Market Fund
Note 3
The Distributor and its affiliates may from time to time and in varying
amounts voluntarily assume some portion of fees or expenses relating to the
Fund. During the year ended March 31, 1996, the amount of such expenses
assumed by the Distributor and its affiliates was $600,157.
Note 4
For the year ended March 31, 1996, purchases and sales, including maturities,
of securities aggregated $2,610,708,140 and $2,565,728,446, respectively.
Note 5
The Trust has adopted a Plan of Distribution Pursuant to Rule 12b-1 (the
"Plan") under the Investment Company Act of 1940. Under the Plan, the Fund
pays annual distribution and service fees to the Distributor at a rate of
0.75% and 0.25%, respectively, of average daily net assets for Class B and
Class D shares. The Distributor uses such payments for personal services
and/or the maintenance 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 March 31, 1996, fees pursuant to such
plan amounted to $111,938 and $7,038 for Class B and Class D shares,
respectively.
The Fund has been informed that MetLife Securities, Inc., a wholly-owned
subsidiary of Metropolitan, earned commissions aggregating $13,749 on sales
of the Fund's Class B shares and that the Distributor collected contingent
deferred sales charges of $226,763 on redemptions of Class B shares during
the year ended March 31, 1996.
Note 6
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
At March 31, 1996, Metropolitan owned 507,232 Class D shares and Metropolitan
and certain of its affiliates held of record 54,004,214 Class E shares of the
Fund. The Adviser owned 21,481 Class E shares and the Distributor owned
19,500,000 Class E shares of the Fund.
<TABLE>
<CAPTION>
Year ended March 31
--------------------------------------------------------------
1996 1995
---------------------------- ------------------------------
Class B Shares Amount Shares Amount
- ------------------------------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Shares sold 25,459,225 $ 25,459,225 23,182,577 $ 23,182,577
Issued upon reinvestment of dividends 310,628 310,628 187,109 187,109
Shares repurchased (23,208,467) (23,208,467) (17,075,600) (17,075,600)
---------- ---------- ---------- ------------
Net increase 2,561,386 $ 2,561,386 6,294,086 $ 6,294,086
========== ========== ========== ============
Class C Shares Amount Shares Amount
- ------------------------------------- ---------- ---------- ---------- ------------
Shares sold 32,210,132 $ 32,210,132 29,413,278 $ 29,413,278
Issued upon reinvestment of dividends 663,095 663,095 136,567 136,567
Shares repurchased (24,568,290) (24,568,290) (23,449,528) (23,449,528)
---------- ---------- ---------- ------------
Net increase 8,304,937 $ 8,304,937 6,100,317 $ 6,100,317
========== ========== ========== ============
Class D Shares Amount Shares Amount
- ------------------------------------- ---------- ---------- ---------- ------------
Shares sold 7,691,536 $ 7,691,536 4,119,869 $ 4,119,869
Issued upon reinvestment of dividends 17,289 17,289 35,281 35,281
Shares repurchased (6,587,059) (6,587,059) (3,487,480) (3,487,480)
---------- ---------- ---------- ------------
Net increase 1,121,766 $ 1,121,766 667,670 $ 667,670
========== ========== ========== ============
Class E Shares Amount Shares Amount
- ------------------------------------- ---------- ---------- ---------- ------------
Shares sold 880,060,476 $ 880,060,476 895,389,466 $ 895,389,466
Issued upon reinvestment of dividends 6,168,315 6,168,315 4,099,011 4,099,011
Shares repurchased (839,611,327) (839,611,327) (887,126,360) (887,126,360)
---------- ---------- ---------- ------------
Net increase 46,617,464 $ 46,617,464 12,362,117 $ 12,362,117
========== ========== ========== ============
</TABLE>
6
<PAGE>
State Street Research Money Market Fund
Financial Highlights
For a share outstanding throughout each year:
<TABLE>
<CAPTION>
Class B Class C Class D
---------------------- -------------------- --------------------
Year ended March 31 Year ended March 31 Year ended March 31
---------------------- -------------------- --------------------
1996 1995 1994** 1996 1995 1994** 1996 1995 1994**
- ----------------------------------- ----- ---- ---- ---- ---- ----- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income* .041 .032 .012 .051 .042 .021 .041 .032 .013
Dividends from net investment
income (.041) (.032) (.012) (.051) (.042) (.021) (.041) (.032) (.013)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of year $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ======
Total return 4.16%+ 3.27%+ 1.27%+++ 5.20%+ 4.31%+ 2.08%+++ 4.16%+ 3.28%+ 1.30 %+++
Net assets at end of year (000s) $11,884 $9,322 $3,028 $16,19 $7,886 $1,786 $1,964 $842 $174
Ratio of operating expenses to
average net assets* 1.75% 1.75% 1.75%++ 0.75% 0.75% 0.75%++ 1.75% 1.75% 1.75%++
Ratio of net investment income to
average net assets* 4.06% 3.53% 1.54%++ 5.03% 4.66% 2.54%++ 4.08% 3.30% 1.54%++
*Reflects voluntary assumption of
fees or expenses per share in
each year (Note 3). $ .003 $ .004 $ .007 $ .003 $ .003 $ .006 $ .003 $ .005 $ .002
</TABLE>
<TABLE>
<CAPTION>
Class E
-------------------------------------------------------
Year ended March 31
-------------------------------------------------------
1996 1995 1994*** 1993 1992
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income* .051 .042 .025 .028 .048
Dividends from net investment income (.051) (.042) (.025) (.028) (.048)
------- ----- ----- ----- -------
Net asset value, end of year $1.000 $1.000 $1.000 $1.000 $1.000
======= ===== ===== ===== =======
Total return 5.20%+ 4.31%+ 2.48%+ 2.88%+ 4.85%+
Net assets at end of year (000s) $197,109 $150,491 $138,129 $149,831 $168,088
Ratio of operating expenses to average net assets* 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to average net
assets* 5.06% 4.26% 2.46% 2.84% 4.77%
*Reflects voluntary assumption of fees or expenses
per share in each year (Note 3). $.003 $.006 $.003 $.001 $.001
</TABLE>
** June 1, 1993 (commencement of share class designations) to March 31, 1994.
++ Annualized.
+ Total return figures do not reflect any front-end or contingent deferred
sales charges. Total return would be lower if the Distributor and its
affiliates had not voluntarily assumed a portion of the Fund's expenses.
++ Represents aggregate return for the period without annualization and does
not reflect any front-end or contingent deferred sales charges. Total
return would be lower if the Distributor and its affiliates had not
voluntarily assumed a portion of the Fund's expenses.
***Effective November 30, 1993, the Fund discontinued offering Class A shares
and any existing Class A shares were redesignated Class E shares. Net
investment income and dividends amounted to $.011 per share for Class A
shares during the period June 1, 1993 (commencement of share class
designations) to November 30, 1993.
7
<PAGE>
Report of Independent Accountants
To the Trustees of State Street Research Money Market Trust and
the Shareholders of State Street Research Money Market 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 Money
Market Fund (formerly MetLife-State Street Research Money Market Fund) (a
series of State Street Research Money Market Trust, hereafter referred to as
the "Trust") at March 31, 1996, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. 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 generally accepted auditing standards 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 March 31, 1996 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
May 10, 1996
8
<PAGE>
State Street Research Money Market Fund
Fund Information, Officers and Trustees of State Street Research Money Market
Trust
Fund Information
State Street Research
Money Market 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
Goodwin, Procter & Hoar
Exchange Place
Boston, MA 02109
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
Officers
Ralph F. Verni
Chairman of the Board,
President and
Chief Executive Officer
JoAnne C. Mulligan
Vice President
Thomas A. Shively
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
Edward M. Lamont
Formerly in banking (Morgan
Guaranty Trust Company of
New York); presently engaged
in private investments and
civic affairs
Robert A. Lawrence
Partner, Saltonstall & Co.
Dean O. Morton
Retired; formerly Executive
Vice President, Chief
Operating Officer and Director,
Hewlett-Packard Company
Thomas L. Phillips
Retired; formerly Chairman of
the Board and Chief Executive
Officer, Raytheon Company
Toby Rosenblatt
President,
The Glen Ellen Company
Vice President,
Founders Investments Ltd.
Michael S. Scott Morton
Jay W. Forrester Professor of
Management, Sloan School of
Management, Massachusetts
Institute of Technology
Jeptha H. Wade
Retired; formerly Of Counsel,
Choate, Hall & Stewart
9
<PAGE>
Back Cover
State Street Research Money Market Fund
One Financial Center
Boston, MA 02111
Bulk Rate
U.S. Postage
PAID
Brockton, MA
Permit No. 600
Questions? Comments?
Call us at 1-800-562-0032,
or write us at:
State Street Research
Shareholder Services
P.O. Box 8408
Boston, MA 02266-8408
[State Street Logo] State Street Research
This report is prepared for the general information of current shareholders
only. It is not authorized for use as sales material with prospective investors.
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: 3150-960523(0697)SSR-LD
Cover Illustration by Dorothy Cullinan MM-572D-596
