[front cover]
[logo] STATE STREET RESEARCH
STATE STREET RESEARCH
MONEY MARKET FUND
ANNUAL REPORT
March 31, 1997
[graphic of person fishing]
WHAT'S INSIDE
From the Chairman:
Positive returns for
many investors
Fund Information
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
[DALBAR box logo]
DALBAR KEY HONORS
COMMITMENT TO:
INVESTORS
1996
For Excellence
in
Shareholder Service
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
[photo of Ralph Verni]
Dear Shareholder:
The past 12 months brought another year of positive returns for many investors.
For a good portion of the year ended March 31, 1997, there were strong profits,
low inflation and slow to moderate economic growth. However, the first quarter
of 1997 saw the economy grow faster than expected. This growth prompted the
Federal Reserve to raise the Federal Funds rate by one-quarter point, the first
such increase since early 1995.
The bond market anticipated and then reacted to the Fed's action by experiencing
negative returns for the first quarter for all sectors but the high-yield area.
The stock market, as measured by the Dow Jones Industrial Average, experienced a
sizable correction as the quarter ended.
The bond market has yields topping 7% at this writing, so investor interest is
likely to increase in this area. We believe the correction in the stock market
is normal and long overdue.
What's the outlook?
The economy remains quite healthy, with unemployment low and job creation
strong. Corporate profitability and consumer confidence also remain high.
Therefore, our outlook remains positive. We also recommend that investors stay
true to their long-term investment goals. In time, the markets tend to recover
from short-term setbacks. If you are concerned about the current market
environment, it is always a good idea to consult your investment professional.
Sincerely,
/s/ Ralph F. Verni
Ralph F. Verni
Chairman
March 31, 1997
INVESTMENT UPDATE
The Market
(bullet) Money market rates held steady throughout 1996 and trended higher early
in 1997, in response to the more restrictive monetary policy recently
implemented by the Federal Reserve Board. The yield on the 90-day U.S.
Treasury bill rose from 5.14% on March 31, 1996 to 5.33% on March 31,
1997.
(bullet) Although longer-term interest rates fluctuated with investors'
expectations of the effects of economic strength on future inflation,
inflation has remained well contained.
(bullet) Money market fund yields typically lag interest rate movements.
Therefore, the Fund's yield won't immediately reflect the recent
increase in short- term interest rates.
The Fund
(bullet) Money Market Fund's yield rose from 4.57% on March 31, 1996 to 4.69% on
March 31, 1997 (for Class E shares) in response to the increase in
short-term interest rates.
(bullet) The Fund's weighted average maturity was 44 days as of March 31, 1997,
approximately 8 days shorter than the industry average. (Please see the
glossary below for more about weighted average maturity.)
(bullet) Money Market Fund offers low credit risk and stability of principal and
can serve as the liquid portion of a well-balanced investment
portfolio.
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, 1997)
7-Day Yield
------------------
Class B 3.69%
- ---------- --------
Class C 4.69%
- ---------- --------
Class D 3.69%
- ---------- --------
Class E 4.69%
- ---------- --------
The Fund's yield is its investment income, less expenses, expressed as a
percentage of assets on an annualized basis for a seven-day 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 3.46% for Class B
shares, 4.46% for Class C shares, 3.46% for Class D shares, and 4.46% for Class
E shares.
Interest Rates
(March 31, 1996 to March 31, 1997)
[line chart]
Money 90-Day 10-Year 30-Year
Market Treasury Treasury Treasury
Funds Bills Bills Bonds
3/96 4.76% 5.14% 6.32% 6.67%
4/96 4.75 5.15 6.68 6.9
5/96 4.74 5.18 6.85 6.99
6/96 4.77 5.15 6.71 6.89
7/96 4.81 5.3 6.79 6.97
8/96 4.82 5.28 6.94 7.16
9/96 4.83 5.03 6.7 6.92
10/96 4.82 5.14 6.34 6.64
11/96 4.84 5.12 6.05 6.36
12/96 4.85 5.19 6.42 6.64
1/97 4.84 5.14 6.5 6.79
2/97 4.82 5.22 6.55 6.8
3/97 4.85 5.31 6.91 7.1
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, 1997
Principal Maturity Value
Amount Date (Note 1)
- ------------------------------------ ------------- ------------ --------------
COMMERCIAL PAPER 99.0%
Automotive 8.7%
Ford Motor Credit Co., 5.32% $ 5,000,000 4/28/1997 $ 4,980,050
Ford Motor Credit Co., 5.32% 3,000,000 5/01/1997 2,986,700
Ford Motor Credit Co., 5.25% 2,700,000 5/21/1997 2,680,312
General Motors Acceptance Corp.,
5.37% 2,000,000 4/14/1997 1,996,122
General Motors Acceptance Corp.,
5.34% 2,500,000 4/24/1997 2,491,471
General Motors Acceptance Corp.,
5.35% 4,500,000 6/09/1997 4,453,856
--------------
19,588,511
--------------
Bank 17.7%
Bank of America FSB, 5.37% 6,000,000 6/16/1997 5,931,980
Bank of America FSB, 5.44% 4,500,000 6/23/1997 4,443,560
Canadian Imperial Holdings, Inc.,
5.33% 5,000,000 4/25/1997 4,982,240
Canadian Imperial Holdings, Inc.,
5.30% 5,000,000 4/29/1997 4,979,389
J.P. Morgan & Co. Inc., 5.33% 3,500,000 4/04/1997 3,498,445
J.P. Morgan & Co. Inc., 5.53% 6,000,000 6/30/1997 5,917,050
Toronto Dominion Holdings, Inc.,
5.32% 3,355,000 4/07/1997 3,352,026
Toronto Dominion Holdings, Inc.,
5.32% 6,580,000 6/11/1997 6,510,961
--------------
39,615,651
--------------
Canadian 12.6%
Canadian Wheat Board, 5.31% 3,865,000 4/24/1997 3,851,888
Canadian Wheat Board, 5.34% 6,000,000 6/09/1997 5,938,590
Ontario Hydro, 5.32% 3,000,000 4/04/1997 2,998,670
Province of British Columbia, 5.31% 1,900,000 4/15/1997 1,896,077
Province of British Columbia, 5.35% 6,000,000 6/12/1997 5,935,800
Province of British Columbia, 5.40% 2,600,000 6/12/1997 2,571,920
Province of Quebec, 5.27% 5,000,000 5/15/1997 4,967,794
--------------
28,160,739
--------------
Chemical 9.3%
E.I. Du Pont De Nemours & Co., 5.28% 6,000,000 5/05/1997 5,970,080
E.I. Du Pont De Nemours & Co., 5.37% 4,500,000 6/17/1997 4,448,314
Monsanto Co., 5.31% 6,000,000 4/01/1997 6,000,000
Monsanto Co., 5.56% 4,500,000 6/06/1997 4,454,130
--------------
20,872,524
--------------
Consumer Goods & Services 2.2%
Proctor & Gamble Co., 5.31% $ 5,000,000 6/13/1997 $ 4,946,162
--------------
Diversified 4.4%
Cargill Inc., 5.55% 10,000,000 6/30/1997 9,861,250
--------------
Electrical Equipment 4.7%
General Electric Capital Corp.,
5.28% 4,500,000 5/14/1997 4,471,620
General Electric Capital Corp.,
5.28% 6,000,000 5/16/1997 5,960,400
--------------
10,432,020
--------------
Electronic Equipment 2.2%
Motorola Inc., 5.52% 5,000,000 6/05/1997 4,950,167
--------------
Financial Service 10.4%
American Express
Credit Corp., 5.25% 6,000,000 5/27/1997 5,951,000
American General Finance Corp.,
5.57% 4,000,000 7/01/1997 3,943,681
Beneficial Corp., 5.32% 4,000,000 4/14/1997 3,992,316
CIT Group Holdings Inc., 5.25% 4,500,000 5/29/1997 4,461,938
Household Finance Corp., 5.30% 5,000,000 5/12/1997 4,969,819
--------------
23,318,754
--------------
Insurance 3.0%
Transamerica Finance Group Inc.,
5.25% 1,500,000 4/11/1997 1,497,812
Transamerica Finance Group Inc.,
5.32% 5,300,000 4/29/1997 5,278,070
--------------
6,775,882
--------------
Machinery 2.2%
John Deere Capital Corp., 5.31% 5,000,000 4/16/1997 4,988,937
--------------
Natural Gas 3.6%
Consolidated Natural Gas Co., 5.52% 825,000 4/01/1997 825,000
Consolidated Natural Gas Co., 5.24% 4,980,000 4/30/1997 4,958,979
Northern Illinois Gas Co., 5.26% 2,360,000 4/01/1997 2,360,000
--------------
8,143,979
--------------
Office Equipment 2.7%
Pitney Bowes Inc., 5.50% 6,000,000 6/23/1997 5,923,917
--------------
Oil 0.6%
Shell Oil Co., 6.25% 1,402,000 4/01/1997 1,402,000
--------------
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
INVESTMENT PORTFOLIO (cont'd)
Principal Maturity Value
Amount Date (Note 1)
- ------------------------------------ ------------- ------------ --------------
Printing & Publishing 2.2%
McGraw-Hill Inc., 5.24% $5,000,000 4/21/1997 $ 4,985,444
--------------
Recreation 0.8%
Walt Disney Co., 5.32% 1,720,000 4/25/1997 1,713,900
--------------
Retail Trade 4.9%
Sears Roebuck Acceptance Corp.,
5.26% 5,000,000 6/02/1997 4,954,705
Sears Roebuck Acceptance Corp.,
5.30% 6,000,000 6/04/1997 5,943,467
--------------
10,898,172
--------------
Telephone 6.1%
Ameritech Corp., 5.23% 1,666,000 4/23/1997 1,660,676
Ameritech Corp., 5.26% 3,300,000 4/24/1997 3,288,910
Bell Atlantic Financial Services,
Inc., 5.29% 2,583,000 4/07/1997 2,580,723
Bell Atlantic Financial Services,
Inc., 5.31% 3,779,000 4/08/1997 3,775,098
Bell Atlantic Financial Services,
Inc., 5.57% 2,321,000 5/02/1997 2,309,867
--------------
13,615,274
--------------
Tobacco 0.7%
Philip Morris Companies, Inc., 5.65% 1,469,000 4/02/1997 1,468,769
--------------
Total Investments (Cost $221,662,052)--99.0% 221,662,052
Cash and Other Assets, Less Liabilities--1.0% 2,348,040
--------------
Net Assets--100.0% $224,010,092
==============
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997
Assets
Investments, at value (Cost $221,662,052) (Note 1) $221,662,052
Cash 2,337
Receivable for fund shares sold 3,526,916
Receivable from Distributor (Note 3) 69,510
Other assets 5,212
---------------
225,266,027
Liabilities
Payable for fund shares redeemed 639,916
Accrued transfer agent and shareholder services (Note 2) 264,163
Dividends payable 156,406
Accrued management fee (Note 2) 92,048
Accrued trustees' fees (Note 2) 12,980
Accrued distribution and service fees (Note 5) 12,635
Other accrued expenses 77,787
---------------
1,255,935
---------------
Net Assets $224,010,092
===============
Net Assets consist of:
Shares of beneficial interest $224,010,092
===============
Net Asset Value and offering price per share of
Class B shares ($15,981,520 / 15,981,520 shares of
beneficial interest)* $1.00
===============
Net Asset Value, offering price and redemption price per
share of Class C shares ($14,710,107 / 14,710,107
shares of beneficial interest) $1.00
===============
Net Asset Value and offering price per share of Class D
shares ($958,910 / 958,910 shares of beneficial
interest)* $1.00
===============
Net Asset Value, offering price and redemption price per
share of Class E shares ($192,359,555 / 192,359,555
shares of 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.
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, 1997
Investment Income
Interest $12,529,971
Expenses
Management fee (Note 2) 1,152,723
Transfer agent and shareholder services (Note 2) 627,932
Custodian fee 100,911
Reports to shareholders 74,110
Registration fees 70,227
Audit fee 29,789
Trustees' fees (Note 2) 28,913
Distribution and service fees--Class B (Note 5) 133,726
Distribution and service fees--Class D (Note 5) 6,949
Legal fees 3,349
Miscellaneous 16,789
--------------
2,245,418
Expenses borne by the Distributor (Note 3) (377,715)
--------------
1,867,703
--------------
Net investment income and net increase in net assets
resulting from operations $10,662,268
==============
STATEMENT OF CHANGES IN NET ASSETS
Year ended March 31
-------------------------------
1997 1996
------------------------------ --------------- ---------------
Increase (Decrease) in Net
Assets
Operations:
Net investment income and net
increase resulting from
operations $ 10,662,268 $ 10,633,974
--------------- ---------------
Dividends from net investment income:
Class B (492,831) (454,124)
Class C (734,560) (716,481)
Class D (25,541) (28,738)
Class E (9,409,336) (9,434,631)
--------------- ---------------
(10,662,268) (10,633,974)
--------------- ---------------
Net increase (decrease) from
fund share transactions
(Note 6) (3,137,041) 58,605,553
--------------- ---------------
Total increase (decrease) in
net assets (3,137,041) 58,605,553
Net Assets
Beginning of year 227,147,133 168,541,580
--------------- ---------------
End of year $224,010,092 $227,147,133
=============== ===============
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, 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 year ended March 31, 1997, the fees pursuant to such agreement
amounted to $1,152,723.
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, 1997, the amount of such
expenses was $123,029.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$28,913 during the year ended March 31, 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 year ended March 31, 1997, the amount of such expenses assumed by the
Distributor and its affiliates was $377,715. Effective April 1, 1997, the Fund's
expenses will be limited to 0.65% of average daily net assets for Class C and
Class E shares and to 1.65% of average daily net assets for Class B and Class D
shares.
5
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
Note 4
For the year ended March 31, 1997, purchases and sales, including maturities, of
securities aggregated $2,031,651,975 and $2,048,839,913, 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 year
ended March 31, 1997, fees pursuant to such plan amounted to $133,726 and $6,949
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 $7,821 on sales of
the Fund's Class B shares and that the Distributor collected contingent deferred
sales charges aggregating $200,580 and $22,159 on redemptions of Class B and
Class D shares, respectively, during the year ended March 31, 1997.
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, 1997, Metropolitan and certain of its affiliates held of record
44,347,455 Class E shares of the Fund.
Share transactions were as follows:
<TABLE>
<CAPTION>
Year ended March 31
--------------------------------------------------------------------
1997 1996
--------------------------------- ---------------------------------
Class B Shares Amount Shares Amount
--------------------------------------------------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Shares sold 28,609,585 $ 28,609,585 25,459,225 $ 25,459,225
Issued upon reinvestment of dividends 414,928 414,928 310,628 310,628
Shares repurchased (24,926,640) (24,926,640) (23,208,467) (23,208,467)
---------------- ---------------- ---------------- ----------------
Net increase 4,097,873 $ 4,097,873 2,561,386 $ 2,561,386
================ ================ ================ ================
Class C Shares Amount Shares Amount
--------------------------------------------------------- ---------------- ---------------- ----------------
Shares sold 32,645,556 $ 32,645,556 32,210,132 $ 32,210,132
Issued upon reinvestment of dividends 675,535 675,535 663,095 663,095
Shares repurchased (34,802,202) (34,802,202) (24,568,290) (24,568,290)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) (1,481,111) $ (1,481,111) 8,304,937 $ 8,304,937
================ ================ ================ ================
Class D Shares Amount Shares Amount
--------------------------------------------------------- ---------------- ---------------- ----------------
Shares sold 29,948,381 $ 29,948,381 7,691,536 $ 7,691,536
Issued upon reinvestment of dividends 15,948 15,948 17,289 17,289
Shares repurchased (30,968,955) (30,968,955) (6,587,059) (6,587,059)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) (1,004,626) $ (1,004,626) 1,121,766 $ 1,121,766
================ ================ ================ ================
Class E Shares Amount Shares Amount
--------------------------------------------------------- ---------------- ---------------- ----------------
Shares sold 785,239,791 $ 785,239,791 880,060,476 $ 880,060,476
Issued upon reinvestment of dividends 6,052,998 6,052,998 6,168,315 6,168,315
Shares repurchased (796,041,966) (796,041,966) (839,611,327) (839,611,327)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) (4,749,177) $ (4,749,177) 46,617,464 $ 46,617,464
================ ================ ================ ================
</TABLE>
6
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
<TABLE>
<CAPTION>
Class B
--------------------------------------------
Year ended March 31
--------------------------------------------
1997 1996 1995 1994**
-------------------------------------------- ---------------------- --------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income* 0.037 0.041 0.032 0.012
Dividends from net investment income (0.037) (0.041) (0.032) (0.012)
---------------------- --------- ----------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
====================== ========= ==========
Total return 3.72%+ 4.16%+ 3.27%+ 1.27%+++
Net assets at end of year (000s) $15,982 $11,884 $ 9,322 $ 3,028
Ratio of operating expenses to average net
assets* 1.75% 1.75% 1.75% 1.75%++
Ratio of net investment income to average
net assets* 3.69% 4.06% 3.53% 1.54%++
*Reflects voluntary assumption of fees or
expenses per share in each year (Note 3). $ 0.002 $ 0.003 $ 0.004 $ 0.007
<CAPTION>
Class C
------------------------------------------
Year ended March 31
------------------------------------------
1997 1996 1995 1994**
-------------------------------------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income* 0.047 0.051 0.042 0.021
Dividends from net investment income (0.047) (0.051) (0.042) (0.021)
--------- --------- --------- ----------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ==========
Total return 4.78%+ 5.20%+ 4.31%+ 2.08%+++
Net assets at end of year (000s) $14,710 $16,191 $ 7,886 $ 1,786
Ratio of operating expenses to average net
assets* 0.75% 0.75% 0.75% 0.75%++
Ratio of net investment income to average
net assets* 4.69% 5.03% 4.66% 2.54%++
*Reflects voluntary assumption of fees or
expenses per share in each year (Note 3). $ 0.002 $ 0.003 $ 0.003 $ 0.006
</TABLE>
<TABLE>
<CAPTION>
Class D
------------------------------------------
Year ended March 31
------------------------------------------
1997 1996 1995 1994**
- ------------------------------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income* 0.037 0.041 0.032 0.013
Dividends from net investment income (0.037) (0.041) (0.032) (0.013)
--------- --------- --------- ----------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ==========
Total return 3.72%+ 4.16%+ 3.28%+ 1.30%+++
Net assets at end of year (000s) $ 959 $ 1,964 $ 842 $ 174
Ratio of operating expenses to
average net assets* 1.75% 1.75% 1.75% 1.75%++
Ratio of net investment income to
average net assets* 3.68% 4.08% 3.30% 1.54%++
*Reflects voluntary assumption of
fees or expenses per share in each
year (Note 3) $ 0.002 $ 0.003 $ 0.005 $ 0.002
<CAPTION>
Class E
---------------------------------------------------------------------
Year ended March 31
---------------------------------------------------------------------
1997 1996 1995 1994*** 1993
- ------------------------------------- ------------- ------------- ------------- ------------- -------------
<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* 0.047 0.051 0.042 0.025 0.028
Dividends from net investment income (0.047) (0.051) (0.042) (0.025) (0.028)
------------- ------------- ------------- ------------- -------------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
============= ============= ============= ============= =============
Total return 4.78%+ 5.20%+ 4.31%+ 2.48%+ 2.88%+
Net assets at end of year (000s) $192,360 $197,109 $150,491 $138,129 $149,831
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* 4.69% 5.06% 4.26% 2.46% 2.84%
*Reflects voluntary assumption of
fees or expenses per share in each
year (Note 3) $ 0.002 $ 0.003 $ 0.006 $ 0.003 $ 0.001
</TABLE>
**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.
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 (a series of State Street Research Money Market Trust, hereafter referred
to as the "Trust") at March 31, 1997, 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, 1997 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
May 9, 1997
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
John H. Kallis
Vice President
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
Associate, Saltonstall & Co.
Dean O. Morton
Retired; formerly Executive
Vice President, Chief
Operating Officer and Director,
Hewlett-Packard Company
Thomas L. Phillips
Retired; formerly Chairman of
the Board and Chief Executive
Officer, Raytheon Company
Toby Rosenblatt
President,
The Glen Ellen Company
Vice President,
Founders Investments Ltd.
Michael S. Scott Morton
Jay W. Forrester Professor of
Management, Sloan School of
Management, Massachusetts
Institute of Technology
Jeptha H. Wade
Retired; formerly Of Counsel,
Choate, Hall & Stewart
9
<PAGE>
[back cover]
State Street Research Money Market Fund
One Financial Center
Boston, MA 02111
[indicia]
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 Research Logo]
This report is prepared for the general information of current shareholders.
When used in the general solicitation of investors, this report must be
accompanied by a current State Street Research Money Market Fund prospectus.
When used after June 30, 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 award recognizes 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: 3907-970521(0698)SSR-LD
Cover Illustration by Dorothy Cullinan MM-572D-597IB
