<PAGE>
- -------------------------------------------------------------------------------
STATE STREET RESEARCH
- -------------------------------------------------------------------------------
MONEY MARKET FUND
----------------------
ANNUAL REPORT
March 31, 1999
--------------------
WHAT'S INSIDE
--------------------
FROM THE CHAIRMAN
Americans benefited from a
healthy economy
INVESTMENT UPDATE
About the Fund,
economy and markets
FUND INFORMATION
Facts and figures
PLUS, COMPLETE PORTFOLIO HOLDINGS
AND FINANCIAL STATEMENTS
STATE STREET RESEARCH
- ---------------------- ---------------------
DALBAR
HONORS COMMITMENT TO: 75 YEARS
INVESTORS
1998 ---------------------
- ---------------------- LASTING VALUES
---------------------
For Excellence LEADING IDEAS
in
Shareholder Service
STATE STREET RESEARCH FUNDS
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
[Photo of Ralph Verni]
DEAR SHAREHOLDER:
In a year marked by market volatility at home and currency upheaval abroad,
Americans continued to reap the benefits of a healthy economy. Inflation
remained low, unemployment hovered around 4%, wages rose, and prices fell at the
gas pump and in the mortgage market. Many Americans took their prosperity to the
mall: The holiday season was strong and retail sales rose. However, the nation's
savings rate fell below zero.
STOCKS
It was a strong 12 months for the U.S. stock market. A correction late in the
summer was short-lived as most segments of the U.S. stock market staged a
comeback in the fourth quarter. The Dow Jones Industrial Average pierced the
10,000 mark in the first quarter of 1999, then fell back to close short of the
new milestone at the end of the period.
Large-company growth stocks and technology stocks were the strongest performers,
led by Internet stocks, which delivered amazing returns. However, gains were
concentrated in a narrow band of stocks. Small and medium-sized company stocks
continued to lag the market, and the gap between growth stocks and value stocks
widened.
BONDS
The bond market benefited from the Federal Reserve Board's three quick interest
rate cuts in the fall as the 30-year U.S. Treasury bond yield hit a low of 5.0%.
After struggling under the weight of a robust economy, this benchmark yield
climbed back up to 5.7% late in the period. Bond prices move in the opposite
direction of yields. As a result, the value of U.S. Treasury bonds fell during
the period. High-yield "junk" bonds had been weak, but bounced back on the
strong economic news to close among the best bond market performers in the first
quarter of 1999.
INTERNATIONAL
Foreign markets delivered mixed returns. Expectations surrounding the debut of
the euro, the new common currency shared by 11 nations, helped European markets
in the first half of this reporting period. But the luster was short-lived. Most
European economies are still suffering from the Asian flu, and most European
markets stumbled in the first quarter of 1999. Asian emerging markets have
started to show some signs of life, while Latin emerging markets remain mired in
currency woes. Once again, economists predicted a comeback for Japan, and once
again, they were disappointed. However, Japan's stock market managed to deliver
a double-digit return, encouraged by corporate restructurings and signs that
Japan's central bank is beginning to take steps that could help get the economy
back on track.
OUTLOOK AND OPPORTUNITIES
As investors, you may have been unsettled by the market's volatility in the past
12 months. But remember, volatility also creates opportunities. Regardless of
the environment, we are confident that our in-depth research can help us uncover
good values in companies and markets, both at home and abroad. As always, we
will exercise diligence in finding new investments and in monitoring those we
already own. Thank you for your confidence in State Street Research.
Sincerely,
/s/ Ralph F. Verni
Ralph F. Verni, Chairman
March 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
THE MARKET
o Money market rates trended downward throughout 1998 and held steady in early
1999, due to easing in monetary policy by the Federal Reserve Board in late
1998. The yield on the 90-day U.S. Treasury Bill fell from 5.12% on March
31, 1998 to 4.48% on March 31, 1999.
o After three cuts of one-quarter-point each in the Federal Funds rate between
September and November triggered economic growth and stock market gains, the
economy remains strong with robust growth , low unemployment and low
inflation.
o Further action by the Federal Reserve Board remains on hold, continuing a
wait-and-see attitude on interest rates.
THE FUND
o Money Market Fund's yield fell from 4.96% on March 31, 1998 to 4.29% on
March 31, 1999 (for Class E shares )in response to three cuts in the Federal
Funds rate during 1998.
o The Fund's weighted average maturity was 51 days as of March 31, 1999,
approximately 9 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 THE FUND IS NOT INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
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, 1999)
- --------------------------------------------------------------------------------
7-DAY YIELD
- ------------------------------------------------------------------------------
Class B(1) 3.29%
- ------------------------------------------------------------------------------
Class B 3.29%
- ------------------------------------------------------------------------------
Class C 3.29%
- ------------------------------------------------------------------------------
Class E 4.29%
- ------------------------------------------------------------------------------
Class S 4.29%
- ------------------------------------------------------------------------------
MetLife Securities Money Fund Class T 4.29%
- ------------------------------------------------------------------------------
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.
INTERESTS RATES
(March 31, 1998 to March 31, 1999)
4/98 5/98 6/98 7/98 8/98 9/98
- --------------------------------------------------------------------------------
30-yr Treasury 5.94% 5.79% 5.75% 5.70% 5.23% 4.95%
10-yr Treasury 6.00 5.87 5.83 5.79 5.41 5.10
90-day Treasury 4.94 5.02 4.97 4.92 4.80 4.43
90-day
Commercial Paper 5.53 5.48 5.50 5.53 5.48 5.15
10/98 11/98 12/98 1/99 2/99 3/99
- --------------------------------------------------------------------------------
30-yr Treasury 5.10% 5.21% 5.09% 5.08% 5.57% 5.62%
10-yr Treasury 4.85% 4.77% 4.69% 4.67% 5.26% 5.14%
90-day Treasury 4.45% 4.47% 4.37% 4.30% 4.53% 4.38%
90-day
Commercial Paper 5.10% 4.99% 4.89% 4.79% 4.86% 4.81%
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, 1999
- -------------------------------------------------------------------------------
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -------------------------------------------------------------------------------
COMMERCIAL PAPER 99.5%
AUTOMOTIVE 13.5%
Chrysler Financial Corp., 4.80% ........ $15,000,000 5/03/1999 $ 14,936,000
Ford Motor Credit Co., 4.82% ........... 4/08/1999 2,098,032
Ford Motor Credit Co., 4.80%............ 3,100,000 4/14/1999 3,094,627
Ford Motor Credit Co., 4.83% ........... 3,800,000 4/22/1999 3,789,293
Ford Motor Credit Co., 4.80% ........... 10,000,000 5/14/1999 9,942,667
General Motors Acceptance Corp., 4.78% . 11,100,000 4/19/1999 11,073,471
General Motors Acceptance Corp., 4.82% . 8,000,000 5/14/1999 7,953,942
--------------
52,888,032
--------------
BANK 8.2%
BankAmerica Corp., 4.83% ............... 10,000,000 7/07/1999 9,869,858
Canadian Imperial Holdings, Inc., 4.81% 15,000,000 7/02/1999 14,815,617
Toronto Dominion Holdings, Inc., 4.84% . 7,500,000 4/05/1999 7,495,967
--------------
32,181,442
--------------
CANADIAN 5.6%
Province of British Columbia, 4.77% .... 6,000,000 5/11/1999 5,968,200
Province of British Columbia, 4.80% .... 6,108,000 7/09/1999 6,027,374
Province of Ontario Hydro, 4.80% ....... 10,000,000 6/15/1999 9,900,000
--------------
21,895,574
--------------
CHEMICAL 4.7%
E.I. Du Pont De Nemours & Co., 4.78% ... 15,000,000 4/12/1999 14,978,092
E.I. Du Pont De Nemours & Co., 4.80% ... 3,300,000 4/14/1999 3,294,280
--------------
18,272,372
--------------
CONSUMER GOODS & SERVICES 1.5%
Procter & Gamble Co., 4.81% ............ 5,839,000 6/18/1999 5,778,148
-------------
DIVERSIFIED 0.5%
Cargill Inc., 5.00% .................... 2,128,000 4/01/1999 2,128,000
--------------
ELECTRIC 4.7%
Southern California Edison Co., 4.75% .. 8,500,000 5/06/1999 8,460,746
Southern California Edison Co., 4.83% .. 4,000,000 6/02/1999 3,966,727
Southern California Edison Co., 4.84% .. 6,000,000 6/08/1999 5,945,147
--------------
18,372,620
--------------
ELECTRICAL EQUIPMENT 4.7%
General Electric Capital Corp., 4.80% .. 3,900,000 4/30/1999 3,884,920
General Electric Capital Corp., 4.82% .. 9,500,000 6/03/1999 9,419,867
General Electric Capital Corp., 4.86% .. 5,000,000 6/17/1999 4,948,025
--------------
18,252,812
--------------
FINANCIAL SERVICE 28.0%
American Express Credit Corp., 4.80%.... 9,500,000 5/25/1999 9,431,600
American Express Credit Corp., 4.81% ... 9,200,000 6/23/1999 9,097,975
American General Finance Corp., 4.80% .. 10,000,000 5/28/1999 9,924,000
Associates Corp. of North America, 5.00% 9,507,000 4/01/1999 9,507,000
Associates Corp. of North America, 4.78% 10,600,000 5/21/1999 10,529,628
Associates Corp. of North America, 4.81% 5,100,000 5/25/1999 5,063,203
Associates Corp. of North America, 4.80% 3,300,000 7/09/1999 3,256,440
19997,858,749Caterpillar Financial
Services NV, 4.84% ................... 5,000,000 5/18/1999 4,968,405
Chevron U.S.A. Inc., 4.80% ............. 10,000,000 5/20/1999 9,934,667
CIT Group Holdings Inc., 4.85% ......... 5,000,000 4/01/1999 5,000,000
CIT Group Holdings Inc., 4.80% ......... 13,000,000 5/18/1999 12,918,533
Commercial Credit Co., 4.83% ........... 8,000,000 4/01/1999 8,000,000
Merrill Lynch & Company Inc., 4.78% .... 9,300,000 4/08/1999 9,291,356
Merrill Lynch & Company Inc., 4.83% .... 400,000 7/22/1999 393,990
NorwestNorwest Financial Inc., 4.78% ... 4/28/1999 9,964,150
Norwest Financial Inc., 4.82% .......... 7,200,000 6/11/1999 7,131,556
--------------
109,509,431
--------------
FOOD & BEVERAGE 3.8%
Coca-Cola Co., 4.80% ................... 6/23/1999 9,889,333
Coca-Cola Co., 4.78% ................... 5,000,000 6/28/1999 4,941,578
--------------
14,830,911
--------------
MACHINERY 8.0%
Caterpillar Financial Services NV,
4.82% ................................ 7,900,000 5/10/1999 7,858,749
Caterpillar Financial Services NV, 4.84% 5,000,000 5/18/1999 4,968,405
John Deere Capital Corp., 4.81% ........ 8,300,000 5/10/1999 8,256,750
John Deere Capital Corp., 4.83% ........ 10,500,000 6/02/1999 10,412,658
--------------
31,496,562
--------------
OIL & GAS 7.1%
Atlantic Richfield Co., ............... 10,000,000 6/08/1999 9,908,578
Atlantic Richfield Co., ............... 8,000,000 6/11/1999 7,923,951
Chevron U.S.A. Inc., 4.80% ............. 10,000,000 5/20/1999 9,934,667
--------------
27,767,196
--------------
PRINTING & PUBLISHING 2.5%
McGraw-Hill Inc., 4.80% ................ 10,185,000 7/30/1999 10,022,040
--------------
RETAIL TRADE 6.7%
J.C. Penney Funding Corp., ............ 7,500,000 4/22/1999 7,478,125
Sears Roebuck Acceptance Corp., 4.85% .. 4,790,000 4/27/1999 4,773,222
Sears Roebuck Acceptance Corp., 5.05% .. 5,000,000 4/27/1999 4,981,764
Sears Roebuck Acceptance Corp., 4.83% .. 2,210,000 5/20/1999 2,195,471
Sears Roebuck Acceptance Corp., 4.88% .. 6,900,000 6/25/1999 6,820,496
--------------
26,249,078
--------------
Total Commercial Paper and Investments
(Cost $389,644,218) - 99.5% .................................. 389,644,218
Cash and Other Assets, Less Liabilities - 0.5% ................. 2,088,165
--------------
Net Assets - 100.0% ............................................ $ 391,732,383
==============
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+ Security restricted in accordance with Rule 144A under the Securities Act of
1933, which allows for the resale of such securities among certain qualified
institutional buyers. The total cost and market value of Rule 144A
securities owned at March 31, 1999 were $25,310,654 and $25,310,654 (6.46%
of net assets), respectively.
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
STATE STREET RESEARCH MONEY MARKET FUND
- -------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------
March 31,1999
<S> <C>
ASSETS
Investments, at value (Cost $389,644,218) (Note 1) ..................... $389,644,218
Cash ................................................................... 1,459
Receivable for fund shares sold ........................................ 5,613,331
Receivable from Distributor (Note 3) ................................... 19,655
Other assets ........................................................... 146,298
------------
395,424,961
LIABILITIES
Payable for fund shares redeemed ....................................... 3,151,969
Dividends payable ...................................................... 174,278
Accrued management fee (Note 2) ........................................ 157,387
Accrued transfer agent and shareholder services (Note 2) ............... 137,591
Accrued distribution and service fees (Note 5) ......................... 28,240
Accrued trustees' fees (Note 2) ........................................ 18,356
Other accrued expenses ................................................. 24,757
Other accrued expenses ................................................. 112,439
------------
3,692,578
------------
NET ASSETS ............................................................. $391,732,383
============
Net Assets consist of:
Paid-in capital ...................................................... $391,732,383
============
Net Asset Value and offering price per share of Class B(1) shares
($731,524 / 731,524 shares)* ......................................... $1.00
=====
Net Asset Value and offering price per share of Class B shares
($30,288,072 / 30,288,072 shares)* .................................. $1.00
=====
Net Asset Value and offering price per share of Class C shares
($2,285,556 / 2,285,556 shares)* ..................................... $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class E shares
($331,094,460 / 331,094,460 shares) .................................. $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class S shares
($26,841,515 / 26,841,515 shares) $1.00 .............................. $1.00
=====
Net Asset Value, offering price and redemption
price per share of Class T shares
($491,256 / 491,256 shares) .......................................... $1.00
=====
- -------------------------------------------------------------------------------------------
* Redemption price per share for Class B(1), Class B and Class C is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------
For the year ended March 31, 1999
<S> <C>
INVESTMENT INCOME
Interest ............................................................... $17,133,607
EXPENSES
Management fee (Note 2) ................................................ 1,589,742
Transfer agent and shareholder services (Note 2) ....................... 520,218
Registration fees ...................................................... 112,673
Custodian fee .......................................................... 112,072
Reports to shareholders ................................................ 41,505
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) ................................................ 29,565
Audit fee .............................................................. 24,365
Legal fees ............................................................. 17,160
Distribution and service fees-Class B(1) (Note 5) ...................... 1,438
Distribution and service fees-Class B (Note 5) ......................... 232,528
Distribution and service fees-Class C (Note 5) ......................... 21,834
Miscellaneous .......................................................... 14,785
-----------
2,717,885
Expenses borne by the Distributor (Note 3) ............................. (364,563)
Fees paid indirectly (Note 2) .......................................... (30,423)
-----------
2,322,899
-----------
Net investment income and net increase in net assets resulting from
operations ........................................................... $14,810,708
===========
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
STATE STREET RESEARCH MONEY MARKET FUND
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STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED MARCH 31
------------------------------------
1998 1999
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income and net increase resulting from
operations .............................................. $ 12,071,692 $ 14,810,708
------------ ------------
Dividends from net investment income:
Class B(1) .............................................. -- (4,888)
Class B ................................................. (608,692) (867,238)
Class C ................................................. (44,252) (81,088)
Class E ................................................. (10,636,161) (12,916,266)
Class S ................................................. (782,587) (924,448)
Class T ................................................. -- (16,780)
------------ ------------
(12,071,692) (14,810,708)
------------ ------------
Net increase from fund share transactions (Note 6) ........ 27,845,850 139,876,441
------------ ------------
Total increase in net assets .............................. 27,845,850 139,876,441
NET ASSETS
Beginning of year ......................................... 224,010,092 251,855,942
------------ ------------
End of year ............................................... $251,855,942 $391,732,383
============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
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NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
March 31, 1999
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 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 six classes of shares. On January 1, 1999, the Fund began
offering Class B(1) shares and continued offering Class B shares but only to
current shareholders. Class B(1) and Class B pay annual distribution and
service fees of 1.00% and both classes automatically convert into Class E
shares (which pay lower ongoing expenses) at the end of eight years. Class B
(1) shares are subject to a contingent deferred sales charge on certain
redemptions made within six years of purchase. Class B shares are subject to a
contingent deferred sales charge on certain redemptions made within five years
of purchase. 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 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. On August 1,
1998, the Fund began offering MetLife Securities Money Fund Class T shares
("Class T"). Class T shares are only offered through Metropolitan and certain
affiliates. Class E, Class S and Class T 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 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, 1999, the fees
pursuant to such agreement amounted to $1,589,742.
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,
1999, the amount of such expenses was $235,808.
The Fund has entered into an arrangement with its transfer agent whereby
credits realized as a result of uninvested cash balances were used to reduce a
portion of the Fund's expense. During the year ended March 31, 1999 the Fund's
transfer agent fees were reduced by $30,423 under this agreement.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$29,565 during the year ended March 31, 1999.
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, 1999, the amount of such expenses
assumed by the Distributor and its affiliates was $364,563.
NOTE 4
For the year ended March 31, 1999, purchases and sales, including maturities,
of securities aggregated $4,432,153,880 and $4,312,153,723, 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
(1), 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, 1999, fees
pursuant to such plan amounted to $232,528 and $21,834 for Class B and Class C
shares, respectively. For the period January 1, 1999 (commencement of share
class) to March 31, 1999, fees pursuant to such plan amounted to $1,438 for
Class B(1) shares.
The Fund has been informed that MetLife Securities, Inc., a wholly-owned
subsidiary of Metropolitan, earned commissions aggregating $19,923 on sales of
the Fund's Class B shares and that the Distributor collected contingent
deferred sales charges aggregating $246,572 and $806 on redemptions of Class B
and Class C shares, respectively, during the year ended March 31, 1999.
MetLife Securities, Inc. earned commissions aggregating $1,490 on sales and
the Distributor collected contingent deferred sales charges aggregating $110
on redemptions of Class B(1) shares during the period January 1, 1999
(commencement of share class) to March 31, 1999.
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 1999, Metropolitan owned 500,000 Class B(1) shares, 73,599 Class
B shares, 390,722 Class C shares and 13,872,402 Class S shares and
Metropolitan and certain of its affiliates held of record 53,333,080 Class E
shares and 473,126 Class T shares of the Fund.
Share transactions were as follows:
<TABLE>
<CAPTION>
YEARS ENDED MARCH 31
-----------------------------------------------------------------------------
1998 1999
--------------------------------- --------------------------------------
CLASS B(1)(a) SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold ..................................... -- $ -- 839,178 $ 839,178
Issued upon
reinvestment of dividends ....................... -- -- 514 514
Shares repurchased .............................. -- -- (108,168) (108,168)
------------ ------------ --------------- ---------------
Net increase .................................... -- $ -- 731,524 $ 731,524
============ ============ =============== ===============
<CAPTION>
CLASS B SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ..................................... 38,774,433 $ 38,774,433 73,241,481 $ 73,241,481
Issued upon reinvestment of dividends ........... 522,933 522,933 753,739 753,739
Shares repurchased .............................. (40,711,796) (40,711,796) (58,274,238) (58,274,238)
------------ ------------ --------------- ---------------
Net increase (decrease) ......................... (1,414,430) $ (1,414,430) 15,720,982 $ 15,720,982
============ ============ =============== ===============
<CAPTION>
CLASS C SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ..................................... 20,294,283 $ 20,294,283 38,269,827 $ 38,269,827
Issued upon reinvestment of dividends ........... 31,087 31,087 49,352 49,352
Shares repurchased .............................. (18,970,254) (18,970,254) (38,347,649) (38,347,649)
------------ ------------ --------------- ---------------
Net increase (decrease) ......................... 1,355,116 $ 1,355,116 (28,470) $ (28,470)
============ ============ =============== ===============
<CAPTION>
CLASS E SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ..................................... 903,590,545 $903,590,545 1,500,181,917 $ 1,500,181,917
Issued upon reinvestment of dividends ........... 7,580,531 7,580,531 10,196,998 10,196,998
Shares repurchased .............................. (882,055,600) (882,055,600) (1,400,759,486) (1,400,759,486)
------------ ------------ --------------- ---------------
Net increase .................................... 29,115,476 $ 29,115,476 109,619,429 $ 109,619,429
============ ============ =============== ===============
<CAPTION>
CLASS S SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ..................................... 39,426,406 $ 39,426,406 60,674,480 $ 60,674,480
Issued upon reinvestment of dividends ........... 670,467 670,467 638,114 638,114
Shares repurchased .............................. (41,307,185) (41,307,185) (47,970,874) (47,970,874)
------------ ------------ --------------- ---------------
Net increase (decrease) ......................... (1,210,312) $ (1,210,312) 13,341,720 $ 13,341,720
============ ============ =============== ===============
<CAPTION>
METLIFE SECURITIES
MONEY FUND CLASS T(b) SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ..................................... -- $ -- 1,006,510 $ 1,006,510
Issued upon reinvestment of dividends ........... -- -- 196 196
Shares repurchased .............................. -- -- (515,450) (515,450)
------------ ------------ --------------- ---------------
Net increase .................................... -- $ -- 491,256 $ 491,256
============ ============ =============== ===============
- -----------------------------------------------------------------------------------------------------------------------------------
(a) January 1, 1999 (commencement of share class) to March 31, 1999.
(b) August 1, 1998 (commencement of share class) to March 31, 1999.
</TABLE>
<PAGE>
<TABLE>
STATE STREET RESEARCH MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a share outstanding throughout each year:
<CAPTION>
CLASS B(1)
----------
1999(a)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ($) 1.000
------
Net investment income ($)* 0.008
Dividends from net investment income ($) (0.008)
------
NET ASSET VALUE, END OF PERIOD ($) 1.000
======
Total return(b) (%) 0.84(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period ($ thousands) 732
Ratio of operating expenses to average net
assets (%)* 1.66(d)
Ratio of net investment income to average net
assets (%)* 3.40(d)
*Reflects voluntary reduction of expenses per
share of these amounts (Note 3) ($) 0.000
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------
YEARS ENDED MARCH 31
-------------------------------------------------------------------------------
1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
------ ------ ------ ------ ------
Net investment income ($)* 0.032 0.041 0.037 0.040 0.038
Dividends from net investment income ($) (0.032) (0.041) (0.037) (0.040) (0.038)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
====== ====== ====== ====== ======
Total return(b) (%) 3.27 4.16 3.72 4.09 3.85
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($ thousands) 9,322 11,884 15,982 14,567 30,288
Ratio of operating expenses to average
net assets (%)* 1.75 1.75 1.75 1.65 1.66
Ratio of net investment income to average
net assets (%)* 3.53 4.06 3.69 4.01 3.73
*Reflects voluntary reduction of expenses
per share of these amounts (Note 3) ($) 0.004 0.003 0.002 0.002 0.001
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------------------------
YEARS ENDED MARCH 31
--------------------------------------------------------------------------------
1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
------ ------ ------ ------ ------
Net investment income ($)* 0.032 0.041 0.037 0.040 0.038
Dividends from net investment
income ($) (0.032) (0.041) (0.037) (0.040) (0.038)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
====== ====== ====== ====== ======
Total return(b) (%) 3.28 4.16 3.72 4.09 3.85
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($
thousands) 842 1,964 959 2,314 2,286
Ratio of operating expenses to
average net assets (%)* 1.75 1.75 1.75 1.65 1.66
Ratio of net investment income to
average net assets (%)* 3.30 4.08 3.68 4.01 3.72
*Reflects voluntary reduction of
expenses per share
in these amounts (Note 3) ($) 0.005 0.003 0.002 0.002 0.001
- ------------------------------------------------------------------------------------------------------------------------------------
(a) January 1, 1999 (commencement of share class) to March 31, 1999.
(b) Does not reflect any front-end or contingent deferred sales charges. Total return would be lower if the Distributor and its
affiliates had not voluntarily reduced a portion of the Fund's expenses.
(c) Not annualized.
(d) Annualized.
</TABLE>
<PAGE>
<TABLE>
STATE STREET RESEARCH MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS E
-------------------------------------------------------------------------------
YEARS ENDED MARCH 31
-------------------------------------------------------------------------------
1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
------ ------ ------ ------ ------
Net investment income ($)* 0.042 0.051 0.047 0.050 0.048
Dividends from net investment income ($) (0.042) (0.051) (0.047) (0.050) (0.048)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
====== ====== ====== ====== ======
Total return(b) (%) 4.31 5.20 4.78 5.12 4.88
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($ thousands) 150,491 197,109 192,360 221,475 331,094
Ratio of operating expenses to average
net assets (%)* 0.75 0.75 0.75 0.65 0.66
Ratio of net investment income to average
net assets (%)* 4.26 5.06 4.69 5.01 4.74
*Reflects voluntary reduction of expenses
per share of these amounts (Note 3) ($) 0.006 0.003 0.002 0.002 0.001
</TABLE>
<TABLE>
<CAPTION>
CLASS S
-------------------------------------------------------------------------------
YEARS ENDED MARCH 31
-------------------------------------------------------------------------------
1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
------ ------ ------ ------ ------
Net investment income ($)* 0.042 0.051 0.047 0.050 0.048
Dividends from net investment income ($) (0.042) (0.051) (0.047) (0.050) (0.048)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ($) 1.000 1.000 1.000 1.000 1.000
====== ====== ====== ====== ======
Total return(b) (%) 4.31 5.20 4.78 5.12 4.88
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year ($ thousands) 7,886 16,191 14,710 13,500 26,842
Ratio of operating expenses to average
net assets (%)* 0.75 0.75 0.75 0.65 0.66
Ratio of net investment income to average
net assets (%)* 4.66 5.03 4.69 5.01 4.77
*Reflects voluntary reduction of expenses
per share of these amounts (Note 3) ($) 0.003 0.003 0.002 0.002 0.001
</TABLE>
<TABLE>
<CAPTION>
METLIFE SECURITIES
MONEY FUND CLASS T
-------------------
1999(e)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ($) 1.000
------
Net investment income ($)* 0.031
Dividends from net investment income ($) (0.031)
------
NET ASSET VALUE, END OF PERIOD ($) 1.000
======
Total return(b) (%) 3.15(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period ($ thousands) 491
Ratio of operating expenses to average net assets (%)* 0.66(d)
Ratio of net investment income to average net assets (%)* 4.65(d)
*Reflects voluntary reduction of expenses per share of these
amounts (Note 3) ($) 0.001
- ------------------------------------------------------------------------------------------------------------------------------------
(a) January 1, 1999 (commencement of share class) to March 31, 1999.
(b) 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 reduced a portion of the Fund's expenses.
(c) Not annualized.
(d) Annualized.
(e) August 1, 1998 (commencement of share class) to March 31, 1999.
</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, 1999, 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, 1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 7, 1999
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
STATE STREET RESEARCH MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION, OFFICERS AND TRUSTEES OF STATE STREET RESEARCH MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<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 JOHN H. KALLIS Management Company
State Street Research & Vice President
Management Company BRUCE R. BOND
One Financial Center DYANN H. KIESSLING Chairman of the Board,
Boston, MA 02111 Vice President Chief Executive Officer
and President,
DISTRIBUTOR THOMAS A. SHIVELY PictureTel Corporation
State Street Research Vice President
Investment Services, Inc. STEVE A. GARBAN
One Financial Center GERARD P. MAUS Former Senior Vice President
Boston, MA 02111 Treasurer for Finance and Operations and
Treasurer, The Pennsylvania
SHAREHOLDER SERVICES JOSEPH W. CANAVAN State University
State Street Research Assistant Treasurer
Service Center MALCOLM T. HOPKINS
P.O. Box 8408 DOUGLAS A. ROMICH Former Vice Chairman of the
Boston, MA 02266-8408 Assistant Treasurer Board and Chief Financial
1-800-562-0032 Officer, St. Regis Corp.
FRANCIS J. MCNAMARA, III
CUSTODIAN Secretary and General Counsel DEAN O. MORTON
State Street Bank and Former Executive Vice President,
Trust Company DARMAN A. WING Chief Operating Officer and
225 Franklin Street Assistant Secretary and Director, Hewlett-Packard Company
Boston, MA 02110 Assistant General Counsel
SUSAN M. PHILLIPS
LEGAL COUNSEL AMY L. SIMMONS Dean, School of Business and
Goodwin, Procter & Hoar LLP Assistant Secretary Public Management, George
Exchange Place Washington University; former
Boston, MA 02109 Member of the Board of Governors
of the Federal Reserve System and
INDEPENDENT ACCOUNTANTS Chairman and Commissioner of
PricewaterhouseCoopers LLP the Commodity Futures Trading
160 Federal Street Commission
Boston, MA 02110
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
</TABLE>
<PAGE>
STATE STREET RESEARCH MONEY MARKET FUND
One Financial Center -------------------
Boston, MA 02111 Bulk Rate
U.S. Postage
PAID
Permit #6
Hartford, CT
-------------------
QUESTIONS? COMMENTS?
CALL us at 1-800-562-0032 or
[hearing-impaired 1-800-676-7876]
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.
This publication must be preceded or accompanied by a current State Street
Research Money Market Fund prospectus. The prospectus contains more complete
information, including sales charges and expenses. Please read the prospectus
carefully before investing.
When used in after June 30, 1999, 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: (exp0500)SSR-LD MM-641F-0599
