<PAGE>
STATE STREET RESEARCH
--------------------------------------
MONEY MARKET FUND
--------------------------------------
ANNUAL REPORT
March 31, 1998
--------------------------------------
WHAT'S INSIDE
--------------------------------------
FROM THE CHAIRMAN
Another year of solid growth
INVESTMENT UPDATE
About the Fund and the market
FUND INFORMATION
Facts and figures
PLUS, COMPLETE PORTFOLIO HOLDINGS
AND FINANCIAL STATEMENTS
- -------------------
DALBAR LOGO
- -------------------
For Excellence
in
Shareholder Service
STATE STREET RESEARCH FUNDS
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
[Photo of Ralph F. Verni]
DEAR SHAREHOLDER:
Americans have enjoyed another year of solid economic growth, low inflation and
strong investment returns. Unemployment and interest rates remain low, and
consumer confidence continues at near-record highs. Together these favorable
factors have stimulated a boom in the housing market and stronger-than-expected
retail sales. Not even an economic crisis in Southeast Asia could restrain the
financial markets for long.
STOCKS
The stock market delivered a third consecutive year of double-digit gains
despite a volatile year. In October 1997, the Dow Jones Industrial Average
reported its largest one-day drop ever as investors expressed fear that
Southeast Asian economic turmoil could spill over to the United States. Common
stocks dropped again early in the first quarter of 1998, as U.S. companies
released lower earnings forecasts; then rose sharply through the end of the
period. The technology-heavy Nasdaq, Dow Jones Industrial Average and the S&P
500 all set record highs. Investors continued to seek the quality of large,
blue-chip companies. However, smaller stocks with higher earnings growth and
more attractive valuation picked up ground later in the first quarter of 1998.
After falling sharply in the fourth quarter of 1997, Southeast Asian stocks
rallied in the new year. Malaysia, Thailand and Korean markets came back
especially strong. In Europe, many major markets outperformed the U.S.,
bolstered by lower interest rates, low inflation, and a wave of corporate
restructuring that is, by most accounts, just beginning to pick up steam. Japan
had a modest gain during the first quarter of 1998, but hardly enough to offset
three previous weak periods. What's more, the Japanese economy continues to sink
into recession despite defensive efforts by the government to rescue the
debt-laden financial sector.
BONDS
After a fourth quarter rally, bond markets steadied early in 1998. Treasuries
were buoyed by the same energy cost cuts that briefly boosted the stock market.
High-yield bonds were the star performers as investors sought more robust
returns. Mortgage bonds have held steady, and global bond markets continue to
benefit from Asia's economic difficulties.
WHAT'S AHEAD
The combination of moderate economic growth and no significant inflation is
likely to keep short-term interest rates unchanged for the period ahead.
Although it would be imprudent to expect the stock market to continue to
generate double-digit gains, a more modest, positive trend seems likely.
With inflation and government spending under control, bond markets are well
positioned to reap any gains that could accrue from any future interest rate
cut. In fact, the possibility that the U.S. could have its first federal budget
surplus could provide the downward pressure on rates that would be necessary to
lift the bond market.
As always, it makes sense for investors to put the market's short-term
performance in perspective. Maintain a diversified portfolio, and let your
long-term goals lead your investment decisions. Talk to your financial
professional if you have any questions or concerns about the markets. Thank you
for investing with State Street Research.
Sincerely,
/s/ Ralph F. Verni
Ralph F. Verni, Chairman
March 31, 1998
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
THE MARKET
o Money market rates held steady throughout 1997 and trended slightly lower in
early 1998, because of the possibility that the Federal Reserve Board could
implement a less restrictive monetary policy. The yield on the 90-day U.S.
Treasury bill fell from 5.33% on March 31, 1997 to 5.12% on March 31, 1998.
o Although longer-term interest rates fluctuated with investors' expectations of
the effects of economic strength on future inflation, inflation has remained
well contained.
o Money market fund yields typically lag interest rate movements. Therefore, the
Fund's yield won't immediately reflect any recent change in short-term
interest rates.
THE FUND
o Money Market Fund's yield rose from 4.69% on March 31, 1997 to 4.96% on March
31, 1998 (for Class E shares) in response to the increase in the Federal Funds
rate in March 1997.
o The Fund's weighted average maturity was 47 days as of March 31, 1998,
approximately 10 days shorter than the industry average. (Please see the
glossary below for more about weighted average maturity.)
o 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, 1998)
- --------------------------------------------------------------------------------
7-DAY YIELD
- --------------------------------------------------------------------------------
Class B 3.96%
- --------------------------------------------------------------------------------
Class C 3.96%
- --------------------------------------------------------------------------------
Class E 4.96%
- --------------------------------------------------------------------------------
Class S 4.96%
- --------------------------------------------------------------------------------
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 for the Fund are increased by the voluntary reduction of Fund fees and
expenses; without subsidization, performance would have been lower.
Before November 1, 1997 Class C shares were designated Class D, and Class S
shares were designated Class C.
INTEREST RATES
(March 31, 1997 to March 31, 1998)
[graphic omitted]
30-Year 10-Year 90-Day 90-Day
Treasury Bonds Treasury Notes Treasury Bills Commercial Paper
- -------------------------------------------------------------------------------
3/97 7.095% 6.905% 5.307% 5.770%
4/97 6.954% 6.709% 5.238% 5.750%
5/97 6.910% 6.661% 4.934% 5.680%
6/97 6.780% 6.491% 5.172% 5.630%
7/97 6.299% 6.009% 5.227% 5.550%
8/97 6.611% 6.339% 5.215% 5.560%
9/97 6.403% 6.107% 5.094% 5.530%
10/97 6.154% 5.833% 5.194% 5.580%
11/97 6.041% 5.855% 5.194% 5.710%
12/97 5.924% 5.741% 5.342% 5.850%
1/98 5.805% 5.512% 5.183% 5.410%
2/98 5.919% 5.616% 5.308% 5.470%
3/98 5.932% 5.651% 5.125% 5.500%
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>
<TABLE>
STATE STREET RESEARCH MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------
INVESTMENT PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------
March 31, 1998
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER 100.1%
AUTOMOTIVE 7.4%
Ford Motor Credit Co., 5.49% ..................... $ 6,600,000 6/12/1998 $ 6,527,532
General Motors Acceptance Corp., 5.44% ........... 4,100,000 5/01/1998 4,081,413
General Motors Acceptance Corp., 5.44% ........... 3,200,000 5/15/1998 3,178,724
General Motors Acceptance Corp., 5.48% ........... 5,000,000 6/12/1998 4,945,200
------------
18,732,869
------------
BANK 14.8%
Canadian Imperial Holdings, Inc., 5.45% .......... 8,000,000 5/13/1998 7,949,180
Canadian Imperial Holdings, Inc., 5.43% .......... 5,000,000 5/20/1998 4,963,046
J.P. Morgan & Co. Inc., 5.40% .................... 5,000,000 5/15/1998 4,967,000
J.P. Morgan & Co. Inc., 5.43% .................... 3,000,000 5/15/1998 2,980,090
J.P. Morgan & Co. Inc., 5.44% .................... 2,000,000 5/21/1998 1,984,889
J.P. Morgan & Co. Inc., 5.48% .................... 2,300,000 6/15/1998 2,273,742
Toronto Dominion Holdings, Inc., 5.57% ........... 6,200,000 4/07/1998 6,194,244
Toronto Dominion Holdings, Inc., 5.46% ........... 6,000,000 4/09/1998 5,992,720
------------
37,304,911
------------
CANADIAN 7.1%
Canadian Wheat Board, 5.40% ...................... 2,800,000 4/22/1998 2,791,180
Canadian Wheat Board, 5.40% ...................... 6,200,000 4/24/1998 6,178,610
Province of British Columbia, 5.41% .............. 2,900,000 6/01/1998 2,873,416
Province of Quebec, 5.47% ........................ 6,000,000 6/30/1998 5,917,950
------------
17,761,156
------------
CHEMICAL 9.7%
E.I. Du Pont De Nemours & Co., 5.39% ............. 5,000,000 4/27/1998 4,980,536
E.I. Du Pont De Nemours & Co., 5.41% ............. 6,000,000 4/29/1998 5,974,753
Monsanto Co., 5.48% .............................. 1,000,000 4/24/1998 996,550
Monsanto Co., 5.38% .............................. 5,000,000 5/12/1998 4,969,364
Monsanto Co., 5.45% .............................. 5,000,000 5/12/1998 4,968,965
Monsanto Co., 5.38% .............................. 2,630,000 5/13/1998 2,613,493
------------
24,503,661
------------
DIVERSIFIED 4.1%
Cargill Inc., 6.00% .............................. 3,724,000 4/01/1998 3,724,000
Cargill Inc., 5.72% .............................. 6,610,000 4/02/1998 6,608,950
------------
10,332,950
------------
ELECTRIC 2.0%
Florida Power Corp., 5.50% ....................... 5,000,000 5/21/1998 4,961,805
------------
ELECTRICAL EQUIPMENT 5.0%
General Electric Capital Corp., 5.48% ............ 6,900,000 5/22/1998 6,846,433
General Electric Capital Corp., 5.48% ............ 5,700,000 6/01/1998 5,647,072
------------
12,493,505
------------
FINANCIAL SERVICE 30.7%
American General Finance Corp., 5.50% ............ 8,000,000 7/06/1998 7,882,667
American General Finance Corp., 5.50% ............ 4,000,000 7/13/1998 3,937,055
Associates Corp. of North America, 5.49% ......... 5,900,000 6/11/1998 5,836,118
BankAmerica Corp., 5.48% ......................... 6,000,000 4/10/1998 5,991,780
Beneficial Corp., 5.46% .......................... 4,500,000 5/06/1998 4,476,112
Beneficial Corp., 5.50% .......................... 5,000,000 6/26/1998 4,934,306
Beneficial Corp., 5.50% .......................... 3,000,000 7/13/1998 2,952,792
Chevron USA Inc., 5.48% .......................... 10,000,000 6/05/1998 9,901,055
CIT Group Holdings Inc., 5.44% ................... 9,000,000 5/28/1998 8,922,480
Commercial Credit Co., 5.48% ..................... 4,000,000 6/22/1998 3,950,071
Goldman Sachs Group LP, 5.47% .................... 1,000,000 4/06/1998 999,250
Household Finance Corp., 5.68% ................... 5,000,000 4/06/1998 4,996,056
Merrill Lynch & Company Inc., 5.46% .............. 5,000,000 4/09/1998 4,993,933
Merrill Lynch & Company Inc., 5.43% .............. 5,500,000 4/30/1998 5,475,942
Merrill Lynch & Company Inc., 5.45% .............. 1,000,000 5/13/1998 993,642
Merrill Lynch & Company Inc., 5.49% .............. 1,000,000 6/12/1998 989,020
------------
77,232,279
------------
FOOD & BEVERAGE 6.9%
Coca-Cola Co., 5.43% ............................. 12,500,000 4/17/1998 12,470,222
H.J. Heinz Co., 5.45% ............................ 5,000,000 4/14/1998 4,990,160
------------
17,460,382
------------
MACHINERY 4.8%
John Deere Capital Corp., 5.44% .................. 7,500,000 4/30/1998 7,467,133
John Deere Capital Corp., 5.43% .................. 4,700,000 5/18/1998 4,666,681
------------
12,133,814
------------
RETAIL TRADE 7.6%
J.C. Penney Funding Corp., 5.50% ................. 7,000,000 7/01/1998 6,902,681
Sears Roebuck Acceptance Corp., 5.44% ............ 2,000,000 5/06/1998 1,989,422
Sears Roebuck Acceptance Corp., 5.44% ............ 2,000,000 5/13/1998 1,987,307
Sears Roebuck Acceptance Corp., 5.50% ............ 8,300,000 6/19/1998 8,199,823
------------
19,079,233
------------
Total Commercial Paper (Cost $251,996,565) .............................................. 251,996,565
------------
REPURCHASE AGREEMENTS 0.4%
State Street Bank and Trust Co., dated 3/31/98,
4.25%, repurchase proceeds $993,117,
collateralized by, $1,005,000 U.S. Treasury
Note, 5.875%, due 1/31/99, market value
$1,006,256 ..................................... 993,000 4/01/1998 993,000
------------
Total Repurchase Agreements (Cost $993,000) ............................................. 993,000
------------
Total Investments (Cost $252,989,565) - 100.5% .......................................... 252,989,565
Cash and Other Assets, Less Liabilities - (0.5%) ........................................ (1,133,623)
------------
Net Assets - 100.0% ..................................................................... $251,855,942
============
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
March 31, 1998
ASSETS
Investments, at value (Cost $252,989,565) (Note 1) .............. $252,989,565
Cash ............................................................ 134
Receivable for fund shares sold ................................. 3,229,161
Receivable from Distributor (Note 3) ............................ 44,480
Other assets .................................................... 26,519
------------
256,289,859
LIABILITIES
Payable for fund shares redeemed ................................ 3,868,602
Accrued transfer agent and shareholder services (Note 2) ........ 167,076
Dividends payable ............................................... 150,056
Accrued management fee (Note 2) ................................. 105,511
Accrued trustees' fees (Note 2) ................................. 16,326
Accrued distribution and service fees (Note 5) .................. 13,907
Other accrued expenses .......................................... 112,439
------------
4,433,917
------------
NET ASSETS ...................................................... $251,855,942
============
Net Assets consist of:
Paid-in capital ............................................... $251,855,942
============
Net Asset Value and offering price per share of Class B shares
($14,567,090 / 14,567,090 shares)* ............................ $1.00
=====
Net Asset Value and offering price per share of Class C shares
($2,314,026 / 2,314,026 shares)* .............................. $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class E shares
($221,475,031 / 221,475,031 shares) ........................... $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class S shares
($13,499,795 / 13,499,795 shares) ............................. $1.00
=====
- --------------------------------------------------------------------------------
*Redemption price per share for Class B and Class C is equal to net asset
value less any applicable contingent deferred sales charge.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the year ended March 31, 1998
INVESTMENT INCOME
Interest ........................................................ $13,822,338
EXPENSES
Management fee (Note 2) ......................................... 1,219,931
Transfer agent and shareholder services (Note 2) ................ 557,033
Custodian fee ................................................... 107,214
Reports to shareholders ......................................... 40,021
Distribution and service fees-Class B (Note 5) .................. 151,763
Distribution and service fees-Class C (Note 5) .................. 11,029
Registration fees ............................................... 69,977
Trustees' fees (Note 2) ......................................... 30,318
Audit fee ....................................................... 25,595
Legal fees ...................................................... 16,806
Miscellaneous ................................................... 15,433
-----------
2,245,120
Expenses borne by the Distributor (Note 3) ...................... (494,474)
-----------
1,750,646
-----------
Net investment income and net increase in net assets resulting
from operations ............................................... $12,071,692
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
<TABLE>
- ------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED MARCH 31
-------------------------------------
1997 1998
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income and net increase resulting from
operations .............................................. $ 10,662,268 $ 12,071,692
------------ ------------
Dividends from net investment income:
Class B ................................................. (492,831) (608,692)
Class C ................................................. (25,541) (44,252)
Class E ................................................. (9,409,336) (10,636,161)
Class S ................................................. (734,560) (782,587)
------------ ------------
(10,662,268) (12,071,692)
------------ ------------
Net increase (decrease) from fund share transactions
(Note 6) ................................................ (3,137,041) 27,845,850
------------ ------------
Total increase (decrease) in net assets ................... (3,137,041) 27,845,850
NET ASSETS
Beginning of year ......................................... 227,147,133 224,010,092
------------ ------------
End of year ............................................... $224,010,092 $251,855,942
============ ============
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
May 31, 1998
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. Before November 1, 1997, Class C
shares were designated Class D and Class S shares were designated Class C.
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 subject to a contingent
deferred sales charge of 1.00% on any shares redeemed within one year of their
purchase. Class C 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. Class S shares are only offered through certain
retirement accounts, advisory accounts of State Street Research & Management
Company (the "Adviser"), an indirect wholly owned subsidiary of Metropolitan
Life Insurance Company ("Metropolitan"), and special programs. No sales charge
is imposed at the time of purchase or redemption of Class S shares. Class S
shares 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 the Adviser 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, 1998, the fees
pursuant to such agreement amounted to $1,219,931.
State Street Research Service Center, a division of State Street Research
Investment Services, Inc., the Trust's principal underwriter (the
"Distributor"), an indirect wholly owned subsidiary of Metropolitan, provides
certain shareholder services to the Fund such as responding to inquiries and
instructions from investors with respect to the purchase and redemption of
shares of the Fund. In addition, Metropolitan receives a fee for maintenance of
the accounts of certain shareholders who are participants in sponsored
arrangements, employee benefit plans and similar programs or plans, through or
under which shares of the Fund may be purchased. During the year ended March 31,
1998, the amount of such expenses was $106,277.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$30,318 during the year ended March 31, 1998.
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, 1998, the amount of such expenses
assumed by the Distributor and its affiliates was $494,474.
NOTE 4
For the year ended March 31, 1998, purchases and sales, including maturities,
of securities aggregated $2,531,914,011 and $2,514,344,898, 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 C 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, 1998, fees pursuant to such plan amounted to $151,763 and
$11,029 for Class B and Class C shares, respectively.
The Fund has been informed that MetLife Securities, Inc., a wholly-owned
subsidiary of Metropolitan, earned commissions aggregating $10,835 on sales of
the Fund's Class B shares and that the Distributor collected contingent
deferred sales charges aggregating $185,067 and $6,967 on redemptions of Class
B and Class C shares, respectively, during the year ended March 31, 1998.
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, 1998, Metropolitan owned 73,599 Class B shares, 390,722 Class C
shares and 473,126 Class S shares and Metropolitan and certain of its
affiliates held of record 43,148,887 Class E shares of the Fund.
Share transactions were as follows:
<TABLE>
<CAPTION>
YEARS ENDED MARCH 31
----------------------------------------------------------------------------
1997 1998
------------------------------------- -------------------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 28,609,585 $ 28,609,585 38,774,433 $ 38,774,433
Issued upon reinvestment
of dividends .......... 414,928 414,928 522,933 522,933
Shares repurchased ...... (24,926,640) (24,926,640) (40,711,796) (40,711,796)
------------ ------------ ------------ -------------
Net increase (decrease) . 4,097,873 $ 4,097,873 (1,414,430) $ (1,414,430)
============ ============ ============ =============
<CAPTION>
CLASS C (FORMERLY CLASS D) SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 29,948,381 $ 29,948,381 20,294,283 $ 20,294,283
Issued upon reinvestment
of dividends .......... 15,948 15,948 31,087 31,087
Shares repurchased ...... (30,968,955) (30,968,955) (18,970,254) (18,970,254)
------------ ------------ ------------ -------------
Net increase (decrease) . (1,004,626) $ (1,004,626) 1,355,116 $ 1,355,116
============ ============ ============ =============
<CAPTION>
CLASS E SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 785,239,791 $785,239,791 903,590,545 $ 903,590,545
Issued upon reinvestment
of dividends .......... 6,052,998 6,052,998 7,580,531 7,580,531
Shares repurchased ...... (796,041,966) (796,041,966) (882,055,600) (882,055,600)
------------ ------------ ------------ -------------
Net increase (decrease) . (4,749,177) $ (4,749,177) 29,115,476 $ 29,115,476
============ ============ ============ =============
<CAPTION>
CLASS S (FORMERLY CLASS C) SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ............. 32,645,556 $ 32,645,556 39,426,406 $ 39,426,406
Issued upon reinvestment
of dividends .......... 675,535 675,535 670,467 670,467
Shares repurchased ...... (34,802,202) (34,802,202) (41,307,185) (41,307,185)
------------ ------------ ------------ -------------
Net decrease ............ (1,481,111) $ (1,481,111) (1,210,312) $ (1,210,312)
============ ============ ============ =============
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------
For a share outstanding throughout each year:
<CAPTION>
CLASS B
---------------------------------------------------------------------------------
YEARS ENDED MARCH 31
---------------------------------------------------------------------------------
1994(1) 1995 1996 1997 1998
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
----- ----- ----- ----- -----
Net investment income ($)* 0.012 0.032 0.041 0.037 0.040
Dividends from net investment
income ($) (0.012) (0.032) (0.041) (0.037) (0.040)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
===== ===== ===== ===== =====
Total return(2) (%) 1.27(3) 3.27 4.16 3.72 4.09
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($
thousands) 3,028 9,322 11,884 15,982 14,567
Ratio of operating expenses to
average net assets (%)* 1.75(4) 1.75 1.75 1.75 1.65
Ratio of net investment income to
average net assets (%)* 1.54(4) 3.53 4.06 3.69 4.01
*Reflects voluntary assumption of
fees or expenses per share
in each year (Note 3) ($) 0.007 0.004 0.003 0.002 0.002
<CAPTION>
CLASS C (FORMERLY CLASS D)
---------------------------------------------------------------------------------
YEARS ENDED MARCH 31
---------------------------------------------------------------------------------
1994(1) 1995 1996 1997 1998
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
----- ----- ----- ----- -----
Net investment income ($)* 0.013 0.032 0.041 0.037 0.040
Dividends from net investment
income ($) (0.013) (0.032) (0.041) (0.037) (0.040)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
===== ===== ===== ===== =====
Total return(2) (%) 1.30(3) 3.28 4.16 3.72 4.09
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($
thousands) 174 842 1,964 959 2,314
Ratio of operating expenses to
average net assets (%)* 1.75(4) 1.75 1.75 1.75 1.65
Ratio of net investment income to
average net assets (%)* 1.54(4) 3.30 4.08 3.68 4.01
*Reflects voluntary assumption of
fees or expenses per share
in each year (Note 3) ($) 0.002 0.005 0.003 0.002 0.002
- ----------------------------------------------------------------------------------------------------------------------------
(1) June 1, 1993 (commencement of share class designations) to March 31, 1994.
(2) Does not reflect any front-end or contingent deferred sales charges. Total return would be lower if the Distributor
and its affiliates had not voluntarily assumed a portion of the Fund's expenses.
(3) Not annualized.
(4) Annualized.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class E
----------------------------------------------------------------------------------
Years ended March 31
----------------------------------------------------------------------------------
1994(5) 1995 1996 1997 1998
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
----- ----- ----- ----- -----
Net investment income ($)* 0.025 0.042 0.051 0.047 0.050
Dividends from net investment
income ($) (0.025) (0.042) (0.051) (0.047) (0.050)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
===== ===== ===== ===== =====
Total return(2) (%) 2.48 4.31 5.20 4.78 5.12
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
($ thousands) 138,129 150,491 197,109 192,360 221,475
Ratio of operating expenses to
average net assets (%)* 0.75 0.75 0.75 0.75 0.65
Ratio of net investment income to
average net assets (%)* 2.46 4.26 5.06 4.69 5.01
*Reflects voluntary assumption of
fees or expenses per share
in each year (Note 3) ($) 0.003 0.006 0.003 0.002 0.002
<CAPTION>
CLASS S (FORMERLY CLASS C)
------------------------------------------------------------------------------------
YEARS ENDED MARCH 31
------------------------------------------------------------------------------------
1994(1) 1995 1996 1997 1998
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
----- ----- ----- ----- -----
Net investment income ($)* 0.021 0.042 0.051 0.047 0.050
Dividends from net investment
income ($) (0.021) (0.042) (0.051) (0.047) (0.050)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
===== ===== ===== ===== =====
Total return(2) (%) 2.08(3) 4.31 5.20 4.78 5.12
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
($ thousands) 1,786 7,886 16,191 14,710 13,500
Ratio of operating expenses to
average net assets (%)* 0.75(4) 0.75 0.75 0.75 0.65
Ratio of net investment income to
average net assets (%)* 2.54(4) 4.66 5.03 4.69 5.01
*Reflects voluntary assumption of
fees or expenses per share
in each year (Note 3) ($) 0.006 0.003 0.003 0.002 0.002
- ----------------------------------------------------------------------------------------------------------------------------
(1) June 1, 1993 (commencement of share class designations) to March 31, 1994.
(2) 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.
(3) Not annualized.
(4) Annualized.
(5) 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.
</TABLE>
<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, 1998, 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, 1998 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
May 8, 1998
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- -------------------------------------------------------------------------------
REPORT ON SPECIAL MEETING OF SHAREHOLDERS
- -------------------------------------------------------------------------------
A Special Meeting of Shareholders of the State Street Research Money Market
Fund ("Fund"), a series of State Street Research Money Market Trust ("Trust"),
was convened on December 19, 1997 ("Meeting"), and continued thereafter. The
results of the Meeting are set forth below.
VOTES (MILLIONS OF
SHARES)
-----------------------
ACTION ON PROPOSAL FOR WITHHELD
- -------------------------------------------------------------------------
1. The following persons were elected as Trustees:
Steve A. Garban .............................. 137.9 3.7
Malcolm T. Hopkins ........................... 137.9 3.8
Thomas L. Phillips ........................... 137.9 3.8
Toby Rosenblatt .............................. 137.8 3.9
Ralph F. Verni ............................... 137.7 3.9
VOTES (MILLIONS OF SHARES)
----------------------------
ACTION ON PROPOSAL FOR AGAINST ABSTAIN
- --------------------------------------------------------------------------------
2. The Fund's fundamental policy regarding
investments in illiquid securities was
amended and was reclassified from
fundamental to nonfundamental ............ 126.6 5.8 8.7
3. The Fund's fundamental policy regarding
industry concentration was amended ........ 126.8 5.5 8.7
4. The Fund's fundamental policies regarding
diversification of investments were amended 127.7 5.3 8.0
5. The Fund's fundamental policy on lending
was amended to clarify the permissibility
of securities lending ..................... 125.3 7.1 8.6
6. The Fund's policy regarding investments in
securities of companies with less than
three (3) years' continuous operation was
eliminated ................................ 119.8 12.7 8.4
7. The Master Trust Agreement was not amended
to permit the Trustees to reorganize, merge
or liquidate a fund without prior
shareholder approval ...................... 117.2 15.4 8.4
8. The Master Trust Agreement was amended to
eliminate specified time permitted between
the record date and any shareholders
meeting ................................... 123.8 8.2 9.0
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
<TABLE>
- --------------------------------------------------------------------------------------------------------------
FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH MONEY MARKET TRUST
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FUND INFORMATION OFFICERS TRUSTEES
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 DYANN H. COWLING Management Company
State Street Research & Vice President
Management Company STEVE A. GARBAN
One Financial Center JOHN H. KALLIS Retired; formerly Senior Vice
Boston, MA 02111 Vice President President for Finance and
Operations and Treasurer, The
DISTRIBUTOR JOANNE C. MULLIGAN Pennsylvania State University
State Street Research Vice President
Investment Services, Inc. MALCOLM T. HOPKINS
One Financial Center THOMAS A. SHIVELY Former Vice Chairman of the
Boston, MA 02111 Vice President Board and Chief Financial
Officer, St. Regis Corp.
SHAREHOLDER SERVICES GERARD P. MAUS
State Street Research Treasurer EDWARD M. LAMONT
Service Center Formerly in banking (Morgan
P.O. Box 8408 JOSEPH W. CANAVAN Guaranty Trust Company of
Boston, MA 02266-8408 Assistant Treasurer New York); presently engaged
1-800-562-0032 in private investments and
DOUGLAS A. ROMICH civic affairs
CUSTODIAN Assistant Treasurer
State Street Bank and ROBERT A. LAWRENCE
Trust Company FRANCIS J. MCNAMARA, III Associate, Saltonstall & Co.
225 Franklin Street Secretary and General Counsel
Boston, MA 02110 DEAN O. MORTON
DARMAN A. WING Retired; formerly Executive
LEGAL COUNSEL Assistant Secretary and Vice President, Chief
Goodwin, Procter & Hoar LLP Assistant General Counsel Operating Officer and Director,
Exchange Place Hewlett-Packard Company
Boston, MA 02109 AMY L. SIMMONS
Assistant Secretary TOBY ROSENBLATT
INDEPENDENT ACCOUNTANTS President,
Price Waterhouse LLP The Glen Ellen Company
160 Federal Street Vice President,
Boston, MA 02110 Founders Investments Ltd.
MICHAEL S. SCOTT MORTON
Jay W. Forrester Professor of
Management, Sloan School of
Management, Massachusetts
Institute of Technology
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND -------------------
One Financial Center Bulk Rate
Boston, MA 02111 U.S. Postage
PAID
Permit #20
Holliston, MA 01746
-------------------
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032 or
WRITE us at:
State Street Research
Service Center
P.O. Box 8408
Boston, MA 02266-8408
E-MAIL us at:
[email protected]
INTERNET site:
www.ssrfunds.com
[LOGO] 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 June 30, 1998, 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: 4927-980521(0699)SSR-LD
MM-572D-0598
