Supplement No. 2 dated November 1, 1997
(Supplanting Supplement No. 1 dated October 3, 1997)
to
Prospectus dated August 1, 1997
for
STATE STREET RESEARCH MONEY MARKET FUND
a series of State Street Research Money Market Trust
Investment and Other Policy Changes
Subject to shareholder approval as described below, the following policy
changes are expected to be made:
1. The fundamental policy on illiquid securities will be amended to eliminate
the limitation on restricted securities and to change the classification of the
policy from fundamental to nonfundamental to provide greater investment
flexibility to, among other things, invest in Rule 144A and Section 4(2)
securities.
2. The fundamental policy regarding concentration of investments in any one
industry will be amended to provide that the Fund will invest more than 25% of
its total assets in the financial services industry and to allow for changes
over time in the definition of an industry as set forth in the Fund's Prospectus
and Statement of Additional Information.
3. The fundamental policy regarding diversification will be amended so that
the provisions that limit the Fund's investments in any one nongovernmental
issuer to 5% of the Fund's assets and prevent the Fund from investing in more
than 10% of the voting securities of any non-governmental issuer, will apply to
only 75% of the Fund's total assets.
4. The fundamental policy regarding securities lending will be amended to
clarify that lending of portfolio securities up to a maximum value of 33-1/3% of
the Fund's total assets will be permissible.
5. The fundamental policy regarding investments in securities of companies
with less than three (3) years' continuous operations will be eliminated to
provide greater investment flexibility.
6. The Master Trust Agreement will be amended to permit the Trustees of the
Trust to reorganize, merge or liquidate the Fund without prior shareholder
approval.
7. The Master Trust Agreement will be amended to eliminate the specified
maximum time permitted between the record date and any shareholders' meeting.
The above policy changes will be effective upon, and subject to, shareholder
approval at a meeting scheduled for December 1997, or any continued session
thereof. For more detailed information about the changes, obtain a copy of the
related Proxy Statement by calling the State Street Research Service Center at
1-800-562-0032.
Share Class Designations
The Fund has redesignated its share classes to be more consistent with
developing mutual fund industry practice. The changes do not affect sales
charges or any other share class features. Throughout this Prospectus:
Former Redesignated
Class Class
----- -----
Class C is now Class S
Class D is now Class C
The designations for Class B and Class E are unchanged.
<PAGE>
Class S Shares
The sub-caption "Class C Shares -- Institutional; No Sales Charge" is revised
to read "Class S Shares -- Special Programs; No Sales Charge" and the second
paragraph under the caption is revised in its entirety to read as follows:
"In general, Class S shares are available for new investments by certain
large institutions, advisory accounts of the Investment Manager, and employee
benefit plans which acquire shares through programs or products sponsored by
Metropolitan Life Insurance Company ("Metropolitan") and/or its affiliates,
for which Class S shares have been designated. In addition, Class S shares
are available through special programs under which, for example, investors
pay an asset-based fee and/or a transaction fee to intermediaries. Class S
share availability is determined by the Distributor and intermediaries based
on overall direct and indirect costs of a particular program, expected
assets, account sizes and similar considerations. Information on the
availability of Class S shares and further conditions and limitations is
available from the Distributor."
Throughout this Prospectus, references to Class C shares (now redesignated as
Class S) should be read to give effect to the above revisions regarding the
availability of such shares.
