<PAGE>
STATE STREET RESEARCH
- -----------------------
MONEY MARKET FUND
- -----------------------
SEMIANNUAL REPORT
September 30, 1997
- -----------------------
WHAT'S INSIDE
- -----------------------
INVESTMENT UPDATE
About the Fund,
economy and markets
FUND INFORMATION
Facts and figures
PLUS, COMPLETE PORTFOLIO HOLDINGS
AND FINANCIAL STATEMENTS
[Graphic Omitted]
For Excellence
in
Shareholder Service STATE STREET RESEARCH FUNDS
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
INVESTMENT ENVIRONMENT
THE ECONOMY
* The economy slowed to a moderate pace in the second and third quarter of 1997,
reducing fears that had been raised by a stronger-than-expected first quarter.
Employment is high, personal income has increased, and Americans are the most
confident they have been in close to 30 years. The consensus of outside
experts is for 1997 growth in real GNP to average around 3% for the year.
* The Federal Reserve Board has kept short term interest rates at 5.50%,
unchanged throughout the past six months.
* Inflation remained low, although it actually picked up after declining through
the middle of the year. The Consumer Price Index, a common measure of
inflation, was up 2.2% (an annualized figure) versus one year ago. Wholesale
prices have declined during the period.
THE MARKET
* Money market rates rose in response to the Federal Reserve Board's 1/4 point
hike in short-term interest rates near the middle of the six-month period.
Then, they stabilized as the Fed declined to take further action. The yield on
the 90-day U.S. Treasury bill fell from 5.33% on March 31, 1997 to 5.10% on
September 30, 1997.
* Long term interest rates fluctuated as inflation concerns continued to plague
investors. After peaking in August at 7.0%, the yield on the 30-year U.S.
Treasury bond ended the quarter at 6.4%.
* The U.S. stock market lost some ground early in the period then turned around
to resume its climb past the 8,000 mark. The S&P 500 rose 26.24%(1) for the
six months ended September 30, 1997.
THE FUND
OVER THE PAST SIX MONTHS
* Class E shares of State Street Research Money Market Fund returned 2.53%(2)
for the six months ended September 30, 1997 (without sales charge). This
return compared favorably to the average money market fund, which returned
2.44%, according to Lipper Analytical Services.
* The Fund's yield rose from 4.69% on March 31, 1997 to 5.01% on September 30,
1997 (for Class E shares), the result of the March increase in short-term
rates.
CURRENT STRATEGY
* The Fund's weighted average maturity was 40 days as of September 30, 1997, 15
days shorter than the industry average and down from 44 days at the beginning
of the period.
September 30, 1997
(1) The Standard & Poor's 500 Composite Index (S&P 500) is a market-value
weighted index composed of 500 widely held common stocks. The index is unmanaged
and does not take sales charges into consideration. Direct investment in the
index is not possible; results are for illustrative purposes only.
(2) +2.02 for Class B;
+2.53% for Class C;
+2.02% for Class D.
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 September 30, 1997)
- -------------------------------------------------------------------------------
7-DAY YIELD
- ------------------------------------------------------------------------------
Class B 4.01%
- ------------------------------------------------------------------------------
Class C 5.01%
- ------------------------------------------------------------------------------
Class D 4.01%
- ------------------------------------------------------------------------------
Class E 5.01%
- ------------------------------------------------------------------------------
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 for the Fund reflect voluntary reduction of
fund fees and expenses. Without subsidization, yields would have been lower.
MONTH-END 7-DAY YIELDS
State Street Research Money Market Fund
Class E Shares
CLASS E
- ---------------------------
Sep. 1996 4.74%
4.70
Nov. 1996 4.69
4.71
Jan. 1997 4.70
4.75
Mar. 1997 4.69
4.93
May 1997 5.00
5.07
Jul. 1997 5.06
5.02
Sep. 1997 5.01
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
- --------------------------------------------------------------------------------
September 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER 101.0%
AUTOMOTIVE 6.3%
Ford Motor Credit Co., 5.59% ....................... $2,000,000 10/21/1997 $ 1,993,867
Ford Motor Credit Co., 5.51% ....................... 605,000 12/01/1997 599,351
Ford Motor Credit Co., 5.49% ....................... 2,000,000 12/08/1997 1,979,260
General Motors Acceptance Corp., 5.61% .............. 3,000,000 10/06/1997 2,997,663
General Motors Acceptance Corp., 5.51% .............. 3,000,000 10/24/1997 2,989,439
General Motors Acceptance Corp., 5.50% .............. 4,000,000 11/26/1997 3,965,778
------------
14,525,358
------------
BANK 10.1%
Canadian Imperial Holdings, Inc., 5.49% ............ 3,800,000 11/13/1997 3,775,082
Canadian Imperial Holdings, Inc., 5.485% ............ 8,000,000 11/14/1997 7,946,369
J.P. Morgan & Co. Inc., 5.53% ...................... 500,000 11/18/1997 496,313
Toronto Dominion Holdings, Inc., 5.57% ............. 5,000,000 10/03/1997 4,998,453
Toronto Dominion Holdings, Inc., 5.50% ............. 1,940,000 11/13/1997 1,927,255
Toronto Dominion Holdings, Inc., 5.55% ............. 4,460,000 1/02/1998 4,396,055
------------
23,539,527
------------
CANADIAN 15.4%
Canadian Wheat Board, 5.53% ........................ 3,000,000 10/10/1997 2,995,853
Canadian Wheat Board, 5.50% ........................ 5,000,000 11/06/1997 4,972,500
Manitoba Hydro Electric Board, 5.52% ............... 6,000,000 10/02/1997 5,999,088
Manitoba Hydro Electric Board, 5.52% ............... 5,000,000 11/20/1997 4,961,667
Province of British Columbia, 5.57% ................ 5,000,000 10/03/1997 4,998,453
Province of British Columbia, 5.55% ................ 4,000,000 10/29/1997 3,982,733
Province of Quebec, 5.50% .......................... 5,200,000 10/07/1997 5,195,233
Province of Quebec, 5.52% .......................... 2,700,000 12/29/1997 2,663,154
------------
35,768,681
------------
CHEMICAL 4.5%
E.I. Du Pont De Nemours & Co., 5.52% ............... 5,500,000 1/12/1998 5,413,136
Monsanto Co., 5.50% ................................. 5,000,000 11/21/1997 4,961,042
10,374,178
------------
CONSUMER GOODS & SERVICES 0.6%
Proctor & Gamble Co., 5.50% ........................ 1,350,000 12/31/1997 1,331,231
------------
DIVERSIFIED 5.1%
Cargill Inc., 5.50% ................................. 9,000,000 10/08/1997 8,990,375
Cargill Inc., 5.49% ................................. 2,800,000 11/18/1997 2,779,504
------------
11,769,879
------------
ELECTRICAL EQUIPMENT 4.9%
General Electric Capital Corp., 5.56% .............. 550,000 10/03/1997 549,830
General Electric Capital Corp., 5.60% .............. 5,000,000 11/18/1997 4,963,200
General Electric Capital Corp., 5.50% .............. 6,000,000 11/21/1997 5,953,250
------------
11,466,280
------------
ELECTRIC UTILITY 5.2%
Southern California Edison Co., 5.50% .............. 6,000,000 10/07/1997 5,994,500
Southern California Edison Co., 5.50% .............. 6,000,000 10/20/1997 5,982,583
------------
11,977,083
------------
FINANCIAL SERVICE 20.2%
American Express Credit Corp., 5.57% ............... $5,000,000 10/31/1997 4,977,125
American Express Credit Corp., 5.50% ............... 5,000,000 11/03/1997 4,974,791
American Express Credit Corp., 5.57% ............... 1,700,000 11/03/1997 1,691,445
Beneficial Corp., 5.48% ............................ 3,360,000 12/01/1997 3,328,800
CIT Group Holdings Inc., 5.47% ..................... 7,900,000 11/07/1997 7,855,587
CIT Group Holdings Inc., 5.51% ..................... 4,000,000 12/08/1997 3,958,369
Merrill Lynch & Company Inc., 5.58% ................ 8,000,000 10/01/1997 8,000,000
Merrill Lynch & Company Inc., 5.58% ................ 400,000 10/31/1997 398,167
Merrill Lynch & Company Inc., 5.57% ................ 3,200,000 1/09/1998 3,150,489
Norwest Financial Inc., 5.53% ...................... 4,000,000 11/20/1997 3,969,278
Norwest Financial Inc., 5.50% ...................... 2,614,000 12/12/1997 2,585,246
Norwest Financial Inc., 5.50% ...................... 2,000,000 12/16/1997 1,976,778
------------
46,866,075
------------
NATURAL GAS 4.2%
Pacific Gas & Electric Co., 5.49% .................. 1,700,000 10/16/1997 1,696,111
Pacific Gas & Electric Co., 5.51% .................. 4,605,000 10/22/1997 4,590,199
Pacific Gas & Electric Co., 5.53% .................. 3,500,000 11/03/1997 3,482,258
9,768,568
------------
OIL 3.0%
Atlantic Richfield Co., 5.55% ...................... 7,000,000 10/10/1997 6,990,288
------------
PRINTING & PUBLISHING 4.7%
McGraw-Hill Inc., 5.49% ............................ 5,000,000 11/25/1997 4,958,062
McGraw-Hill Inc., 5.48% ............................ 6,000,000 12/18/1997 5,928,760
10,886,822
------------
RETAIL TRADE 12.9%
Associates Corp. of North America, 5.50% ............ 7,000,000 12/05/1997 6,930,486
J.C. Penney Funding Corp., 5.50% ................... 7,000,000 12/15/1997 6,919,792
J.C. Penney Funding Corp., 5.51% ................... 4,500,000 12/17/1997 4,446,966
Sears Roebuck Acceptance Corp., 5.50% ............... 5,000,000 10/17/1997 4,987,778
Sears Roebuck Acceptance Corp., 5.50% ............... 6,675,000 12/10/1997 6,603,614
------------
29,888,636
------------
TELEPHONE 3.9%
Ameritech Corp., 5.53% .............................. 3,300,000 10/07/1997 3,296,991
Bell Atlantic Financial Services, Inc., 5.53% ...... 2,426,000 10/03/1997 2,425,259
GTE Corp., 5.55% .................................... 3,390,000 10/30/1997 3,374,844
------------
9,097,094
------------
Total Investments (Cost $234,249,700) -- 101.0% ............................................... 234,249,700
Cash and Other Assets, Less Liabilities -- (1.0%) ............................................. (2,403,572)
------------
Net Assets -- 100.0% .......................................................................... $231,846,128
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------
September 30, 1997 (Unaudited)
ASSETS
Investments, at value (Cost $234,249,700) (Note 1) ....... $234,249,700
Cash ..................................................... 15,917
Receivable for fund shares sold .......................... 2,748,763
Receivable from Distributor (Note 3) ..................... 88,395
Other assets ............................................. 49,062
------------
237,151,837
LIABILITIES
Payable for fund shares redeemed ......................... 4,570,653
Accrued transfer agent and shareholder services (Note 2) 209,862
Accrued management fee (Note 2) .......................... 197,597
Dividends payable ........................................ 192,909
Accrued distribution and service fees (Note 5) ........... 26,408
Accrued trustees' fees (Note 2) .......................... 13,244
Other accrued expenses ................................... 95,036
------------
5,305,709
------------
NET ASSETS $231,846,128
============
Net Assets consist of:
Shares of beneficial interest .......................... $231,846,128
============
Net Asset Value and offering price per share of
Class B shares ($14,308,779 / 14,308,779 shares
of beneficial interest)* ............................... $1.00
=====
Net Asset Value, offering price and redemption price
per share of Class C shares ($13,795,506 / 13,795,506
shares of beneficial interest) ......................... $1.00
=====
Net Asset Value and offering price per share of
Class D shares ($831,273 / 831,273 shares of
beneficial interest)* .................................. $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class E shares
($202,910,570 / 202,910,570 shares o
beneficial interest) ................................... $1.00
=====
- -----------------------------------------------------------------------------
*Redemption price per share for Class B and Class D is equal to
net asset value less any applicable contingent deferred sales charge.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------
For the six months ended September 30, 1997 (Unaudited)
INVESTMENT INCOME
Interest ............................................. $6,628,112
EXPENSES
Management fee (Note 2) .............................. 586,940
Transfer agent and shareholder services (Note 2) ..... 292,319
Custodian fee ........................................ 53,290
Registration fees .................................... 32,033
Reports to shareholders .............................. 19,983
Trustees' fees (Note 2) .............................. 15,336
Audit fee ............................................ 12,819
Distribution and service fees-Class B (Note 5) ....... 76,440
Distribution and service fees-Class D (Note 5) ....... 4,596
Legal fees ........................................... 4,312
Miscellaneous ........................................ 6,898
----------
1,104,966
Expenses borne by the Distributor (Note 3) ........... (260,936)
----------
844,030
----------
Net investment income and net increase in net assets
resulting from operations .......................... $5,784,082
==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income and net
increase resulting from operations ..................... $ 5,784,082 $ 10,662,268
------------ ------------
Dividends from net investment income: ....................
Class B ................................................ (305,134) (492,831)
Class C ................................................ (387,650) (734,560)
Class D ................................................ (18,310) (25,541)
Class E ................................................ (5,072,988) (9,409,336)
------------ ------------
(5,784,082) (10,662,268)
------------ ------------
Net increase (decrease) from fund
share transactions (Note 6) ............................ 7,836,036 (3,137,041)
------------ ------------
Total increase (decrease) in net assets .................. 7,836,036 (3,137,041)
NET ASSETS
Beginning of period ...................................... 224,010,092 227,147,133
------------ ------------
End of period ............................................ $231,846,128 $224,010,092
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -------------------------------------------------------------------------------
NOTES TO UNAUDITED FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
September 30, 1997
NOTE 1
State Street Research Money Market Fund (the "Fund"), is a series of State
Street Research 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 six months ended September 30, 1997, the fees
pursuant to such agreement amounted to $586,940.
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 September 30, 1997, the amount
of such expenses was $52,032.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$15,336 during the six months ended September 30, 1997.
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 six months ended September 30, 1997, the amount of such
expenses assumed by the Distributor and its affiliates was $260,936.
NOTE 4
For the six months ended September 30, 1997, purchases and sales, including
maturities, of securities aggregated $1,078,986,502 and $1,072,982,295,
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 or servicing of shareholder accounts, to reimburse
securities dealers for distribution and marketing services, to furnish ongoing
assistance to investors and to defray a portion of its distribution and
marketing expenses. For the six months ended September 30, 1997, fees pursuant
to such plan amounted to $76,440 and $4,596 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 $7,414 on sales of
the Fund's Class B shares and that the Distributor collected contingent
deferred sales charges aggregating $111,085 and $6,174 on redemptions of Class
B and Class D shares, respectively, during the six months ended September 30,
1997.
NOTE 6
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
At September 30, 1997, Metropolitan and certain of its affiliates held of
record 52,259,580 Class E shares of the Fund.
Share transactions were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
------------------------------------- -------------------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 18,564,218 $ 18,564,218 28,609,585 $ 28,609,585
Issued upon reinvestment
of dividends ............ 259,066 259,066 414,928 414,928
Shares repurchased ...... (20,496,025) (20,496,025) (24,926,640) (24,926,640)
------------ -------------- ----------- --------------
Net increase (decrease) . (1,672,741) $ (1,672,741) 4,097,873 $ 4,097,873
============ ============== =========== ==============
<CAPTION>
CLASS C SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 7,784,716 $ 7,784,716 32,645,556 $ 32,645,556
Issued upon reinvestment
of dividends ............ 367,126 367,126 675,535 675,535
Shares repurchased ...... (9,066,443) (9,066,443) (34,802,202) (34,802,202)
------------ -------------- ----------- --------------
Net decrease ............ (914,601) $ (914,601) (1,481,111) $ (1,481,111)
============ ============== =========== ==============
<CAPTION>
CLASS D SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 6,289,469 $ 6,289,469 29,948,381 $ 29,948,381
Issued upon reinvestment
of dividends ............ 14,767 14,767 15,948 15,948
Shares repurchased ...... (6,431,873) (6,431,873) (30,968,955) (30,968,955)
------------ -------------- ----------- --------------
Net decrease ............ (127,637) $ (127,637) (1,004,626) $ (1,004,626)
============ ============== =========== ==============
<CAPTION>
CLASS E SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 418,888,084 $ 418,888,084 785,239,791 $ 785,239,791
------------ -------------- ----------- --------------
Issued upon reinvestment
of dividends ............ 3,646,403 3,646,403 6,052,998 6,052,998
Shares repurchased ...... (411,983,472) (411,983,472) (796,041,966) (796,041,966)
------------ -------------- ----------- --------------
Net increase (decrease) . 10,551,015 $ 10,551,015 (4,749,177) $ (4,749,177)
============ ============== =========== ==============
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31
SEPTEMBER 30, 1997 -----------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Net investment income* 0.020 0.037 0.041 0.032 0.012
Dividends from net investment income (0.020) (0.037) (0.041) (0.032) (0.012)
------- ------- ------- ------- -------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total return 2.02%++ 3.72%+ 4.16%+ 3.27%+ 1.27%++
Net assets at end of period (000s) $14,309 $15,982 $11,884 $9,322 $3,028
Ratio of operating expenses to
average net assets* 1.65%(+) 1.75% 1.75% 1.75% 1.75%(+)
Ratio of net investment income to
average net assets* 3.99%(+) 3.69% 4.06% 3.53% 1.54%(+)
*Reflects voluntary assumption of
fees or expenses per share
in each period (Note 3) $0.001 $0.002 $0.003 $0.004 $0.007
<CAPTION>
CLASS C
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31
SEPTEMBER 30, 1997 -----------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Net investment income* 0.025 0.047 0.051 0.042 0.021
Dividends from net investment income (0.025) (0.047) (0.051) (0.042) (0.021)
------- ------- ------- ------- -------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total return 2.53%++ 4.78%+ 5.20%+ 4.31%+ 2.08%++
Net assets at end of period (000s) $13,796 $14,710 $16,191 $7,886 $1,786
Ratio of operating expenses to
average net assets* 0.65%(+) 0.75% 0.75% 0.75% 0.75%(+)
Ratio of net investment income to
average net assets* 4.99%(+) 4.69% 5.03% 4.66% 2.54%(+)
*Reflects voluntary assumption of
fees or expenses per share
in each period (Note 3) $0.001 $0.002 $0.003 $0.003 $0.006
- -----------------------------------------------------------------------------------------------------------------------------------
** 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.
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31
SEPTEMBER 30, 1997 -----------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Net investment income* 0.020 0.037 0.041 0.032 0.013
Dividends from net investment income (0.020) (0.037) (0.041) (0.032) (0.013)
------- ------- ------- ------- -------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total return 2.02%++ 3.72%+ 4.16%+ 3.28%+ 1.30%++
Net assets at end of period (000s) $831 $959 $1,964 $842 $174
Ratio of operating expenses to
average net assets* 1.65%(+) 1.75% 1.75% 1.75% 1.75%(+)
Ratio of net investment income to
average net assets* 3.98%(+) 3.68% 4.08% 3.30% 1.54%(+)
*Reflects voluntary assumption of
fees or expenses per share
in each period (Note 3) $0.001 $0.002 $0.003 $0.005 $0.002
<CAPTION>
CLASS E
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31
SEPTEMBER 30, 1997 ----------------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994** 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Net investment income* 0.025 0.047 0.051 0.042 0.025 0.028
Dividends from net
investment income (0.025) (0.047) (0.051) (0.042) (0.025) (0.028)
------- ------- ------- ------- ------- -------
Net asset value, end
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total return 2.53%++ 4.78%+ 5.20%+ 4.31%+ 2.48%+ 2.88%+
Net assets at end of
period (000s) $202,911 $192,360 $197,109 $150,491 $138,129 $149,831
Ratio of operating
expenses to average
net assets* 0.65%(+) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net
investment income to
average net assets* 5.00%(+) 4.69% 5.06% 4.26% 2.46% 2.84%
*Reflects voluntary
assumption of fees or
expenses per share
in each period (Note3) $0.001 $0.002 $0.003 $0.006 $0.003 $0.001
- -----------------------------------------------------------------------------------------------------------------------------------
** June 1, 1993 (commencement of share class designations) to March 31, 1994.
*** 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.
(+) 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.
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH MONEY MARKET TRUST
- ------------------------------------------------------------------------------------------------------------
FUND INFORMATION OFFICERS TRUSTEES
<S> <C> <C>
STATE STREET RESEARCH RALPH F. VERNI RALPH F. VERNI
MONEY MARKET 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 JOHN H. KALLIS Management Company
State Street Research & Vice President
Management Company
One Financial Center JOANNE C. MULLIGAN EDWARD M. LAMONT
Boston, MA 02111 Vice President Formerly in banking (Morgan
Guaranty Trust Company of
DISTRIBUTOR THOMAS A. SHIVELY New York); presently engaged
State Street Research Vice President in private investments and
Investment Services, Inc. civic affairs
One Financial Center GERARD P. MAUS
Boston, MA 02111 Treasurer
ROBERT A. LAWRENCE
SHAREHOLDER SERVICES JOSEPH W. CANAVAN Associate, Saltonstall & Co.
State Street Research Assistant Treasurer
Shareholder Services
P.O. Box 8408 DOUGLAS A. ROMICH DEAN O. MORTON
Boston, MA 02266-8408 Assistant Treasurer Retired; formerly Executive
1-800-562-0032 Vice President, Chief
FRANCIS J. MCNAMARA, III Operating Officer and Director,
CUSTODIAN Secretary and General Counsel Hewlett-Packard Company
State Street Bank and
Trust Company DARMAN A. WING
225 Franklin Street Assistant Secretary and THOMAS L. PHILLIPS
Boston, MA 02110 Assistant General Counsel Retired; formerly Chairman of
the Board and Chief Executive
LEGAL COUNSEL AMY L. SIMMONS Officer, Raytheon Company
Goodwin, Procter & Hoar LLP Assistant Secretary
Exchange Place TOBY ROSENBLATT
Boston, MA 02109 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
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND --------------
One Financial Center Bulk Rate
Boston, MA 02111 U.S. Postage
PAID
Randolph, MA
Permit No. 600
--------------
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032
WRITE us at:
State Street Research
Service Center
P.O. Box 8408
Boston, MA 02266-8408
E-MAIL us at:
[email protected]
[graphic omitted] STATE STREET RESEARCH
This report is prepared for the general information of current shareholders.
When used in the general solicitation of investors, this report must be
accompanied or preceded by a current State Street Research Money Market Fund
prospectus. When used after December 31, 1997, this report must be accompanied
by a current Quarterly Performance Update.
Portfolio changes should not be considered recommendations for action by
individual investors.
The Dalbar awards recognize quality shareholder service and should not be
considered a rating of fund performance. The survey included mutual fund
complexes that volunteered or were otherwise selected to participate and was not
industry-wide.
CONTROL NUMBER: 4468-971119(1298)SSR-LD MM-270D-1197 I B S R N
