Supplement No. 2 dated May 21, 1996
(Supplanting Supplement No. 1 dated September 25, 1995)
to
Prospectus dated August 1, 1995
for
STATE STREET RESEARCH HIGH INCOME FUND
a series of State Street Research Income Trust
Investment and Other Policy Changes
The following changes apply to the Fund:
1. Reclassification of certain investment policies from fundamental
policies to nonfundamental policies to provide greater investment flexibility
as to:
a. investments in securities of companies with less than three (3) years'
continuous operations (broadening the ability of the Fund to invest in
securities of such issuers);
b. investments in warrants and arbitrage transactions (investments of up
to 5% of the Fund's net assets in warrants would be permissible; the
fundamental policy on arbitrage would be eliminated).
2. Amendment of the fundamental policy regarding investing in commodities
and commodity contracts to provide greater investment flexibility (newer
kinds of mixed instruments which involve futures and other commodities would
be permissible, as well as limited investment in physical commodities).
3. Amendment of the fundamental policy regarding securities lending to
provide greater investment flexibility (lending of portfolio securities up to
33-1/3% of the Fund's total assets would be permissible).
4. Amendment of the fundamental policy regarding diversification of
investments to provide greater investment flexibility (diversification
limitations to not invest in a security if the transaction would result in
more than 5% of the Fund's assets being invested in any one non-governmental
issuer or result in the Fund owning more than 10% of the voting securities of
an issuer, would apply to only 75% of the Fund's total assets).
5. Amendment of the fundamental policy regarding concentration of
investments in any one industry to allow for changes over time in the
definition of an industry as set forth in the Fund's Prospectus and Statement
of Additional Information.
6. Amendment of the fundamental policy regarding participation in
underwritings to provide greater investment flexibility (the Fund may be a
selling shareholder in an issuer's public offering).
7. Amendment of the Master Trust Agreement to permit the Trustees of the
Trust to reorganize, merge or liquidate the Fund without prior shareholder
approval.
8. Amendment of the Master Trust Agreement to eliminate the specified time
permitted between the record date and any shareholders meeting.
Each of the above policy changes will be effective upon, and subject to,
shareholder approval at a meeting scheduled for July, 1996, or any continued
session thereof. For more detailed information about the changes, obtain a
copy of the related Proxy Statement by calling Shareholder Services at
1-800-562-0032.
CONTROL NUMBER: 3173-960517(0896)SSR-LD HI-451E-596
<PAGE>
Supplement No. 1 dated May 21, 1996
to
Prospectus dated August 1, 1995
for
STATE STREET RESEARCH MANAGED ASSETS
a series of State Street Research Income Trust
Investment and Other Policy Changes
The following changes apply to the Fund:
1. Reclassification of certain investment policies from fundamental
policies to nonfundamental policies to provide greater investment flexibility
as to:
a. investments in securities of companies with less than three (3) years'
continuous operations (broadening the ability of the Fund to invest in
securities of such issuers);
b. investments in illiquid or restricted securities (investments of up to
15% of the Fund's net assets in illiquid securities and up to 15% in
restricted securities would be permissible).
2. Amendment of the fundamental policy regarding investing in commodities
and commodity contracts to provide greater investment flexibility (newer
kinds of mixed instruments which involve futures and other commodities would
be permissible).
3. Amendment of the fundamental policy regarding diversification of
investments to provide greater investment flexibility (diversification
limitations to not invest in a security if the transaction would result in
more than 5% of the Fund's assets being invested in any one non-governmental
issuer or result in the Fund owning more than 10% of the voting securities of
an issuer, would apply to only 75% of the Fund's total assets).
4. Amendment of the fundamental policy regarding concentration of
investments in any one industry to allow for changes over time in the
definition of an industry as set forth in the Fund's Prospectus and Statement
of Additional Information.
5. Amendment of the Master Trust Agreement to permit the Trustees of the
Trust to reorganize, merge or liquidate the Fund without prior shareholder
approval.
6. Amendment of the Master Trust Agreement to eliminate the specified time
permitted between the record date and any shareholders meeting.
Each of the above policy changes will be effective upon, and subject to,
shareholder approval at a meeting scheduled for July, 1996, or any continued
session thereof. For more detailed information about the changes, obtain a
copy of the related Proxy Statement by calling Shareholder Services at
1-800-562-0032.
CONTROL NUMBER: 3170-960517(0896)SSR-LD MA-450E-596
