[LOGO] STATE STREET RESEARCH
Investment Trust
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Semiannual Report to Shareholders
June 30, 2000
-----------------
In this Report
-----------------
Investment
Update
[PHOTO]
plus
The Fund at a Glance
Fund Portfolio and Financials
<PAGE>
Contents
2 6 Month Review
A look at the fund and its market
environment over the past 6 months
4 The Fund in Detail
Portfolio holdings, financials and notes
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From the Chairman
It would be nice if there were a compass to point investors in the right
direction in a volatile market. But if you have an anchor to keep you grounded,
you won't have to worry about what to do next. Focus on your plan, continue to
invest regularly, and don't let short-term factors derail your long-term goals.
[PHOTO]
Gerard P. Maus
Pay attention to the recent rumblings about inflation, rising interest rates and
concerns about valuation. But consider the opportunities yet to be mined in a
robust economy with prospects for continued innovation in technology,
telecommunications, biotechnology and elsewhere. Read up on how your mutual
funds have performed, what your fund manager thinks and how that affects the
fund's performance. That's what you'll find in these pages. With our new report
format, they are easier to follow. No compass required.
Sincerely,
/s/ Gerard P. Maus
Gerard P. Maus
Chief Executive Officer
State Street Research Funds
[GRAPHIC]
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6 MONTH REVIEW
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How State Street Research
Investment Trust Performed
State Street Research Investment Trust delivered solid performance despite the
volatile stock market. The fund returned 4.92% for the six-month period ended
June 30, 2000.(1) That was significantly better than the S&P 500 Index, which
returned -0.43% for the same period, and the Lipper Growth & Income Funds
Average, which returned -0.47%.(2,3)
Reasons for the Fund's Performance
During the first half of 2000, the fund had good stock selection while remaining
relatively neutral on sector weightings. We chose to emphasize companies with
strong revenue and unit growth prospects, and many of these were solid
performers during the period.
In terms of specific sectors or industries, our investments in health care,
insurance and selected media performed well. Our over-weighted position in
energy and energy service stocks also helped performance.
After a very strong rise in the last 12 months, the Nasdaq had a sharp
correction in the spring, which impacted the price of many technology stocks.
However, we used it as an opportunity to add to our positions in Microsoft, BEA
Systems and Comverse Technology, which recovered later during the period.
Looking Ahead
After a fairly modest return in the first half of the year, we have a more
constructive outlook on the equity market in the second half as we believe
interest rate concerns may ease. We also expect earnings growth to slow modestly
as overall economic activity slows somewhat both in the U.S. and abroad. In this
context, we believe the market leadership may continue to broaden and we
continue to look for opportunities in selected healthcare, broadcast satellite,
energy, energy service and Internet infrastructure areas. As always, we plan to
focus our effort on high-quality leadership companies with strong fundamental
prospects.
Class A Shares(1)
[GRAPHIC]
4.92%
"We used the spring
technology sell-off to
add to our technology
holdings."
[PHOTO]
John Wilson
Portfolio Manager,
State Street Research
Investment Trust
S&P 500(3)
[GRAPHIC]
-0.43%
Because financial markets and mutual fund strategies are constantly evolving,
it's possible that the fund's holdings, market stance, outlook for various
industries or securities, and other matters discussed in this report have
changed since this information was prepared. Portfolio changes should not be
considered recommendations for action by individual investors.
2 State Street Research Investment Trust
<PAGE>
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[GRAPHIC] The Fund at a Glance as of 6/30/00
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State Street Research Investment Trust focuses on long-term growth
of capital.
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Pfizer, Viacom and Ace
Pfizer has strong post-merger prospects with Warner-Lambert. There is also a
continued strong advertising and media environment and improved outlook for
commercial insurance, which generated strong results and raised stock prices.
[GRAPHIC]
Hits
&
Misses
[GRAPHIC]
EDS and Honeywell
Both technology companies reported disappointing earnings, which took a
significant bite out of their stock prices. Both stocks were sold from the
portfolio.
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Total Net Assets: $3.6 billion
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Top 10 Holdings
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Issuer/Security % of fund assets
1 Pfizer 4.4%
2 General Electric 3.6%
3 Microsoft 3.3%
4 Cisco Systems 3.1%
5 Intel 3.1%
6 Viacom 3.0%
7 Citigroup 2.7%
8 Pharmacia 2.6%
9 Tyco International 2.5%
10 Nortel Networks 2.3%
Total 30.6%
See page 7 for more detail.
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Performance
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Fund Average Annual Total Returns as of 6/30/00
(at maximum applicable sales charge) (4,5)
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Life of Fund
Share Class 1 Year 5 Years 10 Years (7/29/24)
Class A 7.20% 22.01% 15.49% 13.32%
Class B(1) 7.98% 22.40% 15.58% 13.33%
Class B 8.37% 22.48% 15.62% 13.34%
Class C 11.94% 22.53% 15.57% 13.33%
Class S 14.04% 23.78% 16.41% 13.44%
Fund Average Annual Total Returns as of 6/30/00
(does not reflect sales charge) (4)
--------------------------------------------------------------------------------
Life of Fund
Share Class 1 Year 5 Years 10 Years (7/29/24)
Class A 13.74% 23.46% 16.18% 13.41%
Class B(1) 12.98% 22.57% 15.58% 13.34%
Class B 13.37% 22.66% 15.62% 13.34%
Class C 12.94% 22.53% 15.57% 13.34%
Class S 14.04% 23.78% 16.41% 13.44%
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Top 5 Industries
--------------------------------------------------------------------------------
% of fund assets
[The following tables were represented as bar charts in the printed material.]
December 31, 1999 June 30, 2000
Multi-Sector 9.1% Drugs &
Biotechnology 11.5%
Drugs &
Biotechnology 8.2% Communications
Technology 8.6%
Communications,
Media & Entertainment 7.4% Computer
Software 7.2%
Miscellaneous
Financial 7.4% Miscellaneous
Financial 7.2%
Computer
Technology 6.1% Multi-Sector 6.2%
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Ticker Symbols
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State Street Research Investment Trust
Class A: SITAX Class B(1): SITPX Class B: SITBX Class C: SITDX
Class S: STSTX
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(1) Does not reflect sales charge.
(2) The Lipper Growth &Income Funds Average represents competitive groups of
mutual funds maintained by Lipper Inc., an independent provider of mutual
fund data. In September 1999, Lipper introduced a new portfolio-based
classification system for all open-end U.S. diversified equity funds.
(3) The S&P 500 (officially the "Standard and Poor's 500 Composite Stock Price
Index") is an unmanaged index of 500 U.S. stocks. The index does not take
transaction charges into consideration. It is not possible to invest
directly in the index.
(4) Keep in mind that past performance is no guarantee of future results. The
fund's share price and return will fluctuate and you may have a gain or
loss when you sell your shares.
(5) Performance reflects a maximum 5.75% Class A front-end sales charge.
3
<PAGE>
[GRAPHIC]
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THE FUND IN DETAIL
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The following pages describe the fund in detail as of the date of this report.
They provide a "snapshot" of the fund's holdings at one moment in time (the
report date), describe the financial dimensions of its operations for the six
months leading up to the report date, and give a summary of operations on a
per-share basis for the past five fiscal years. There's also an overview of the
fund and its business structure, as well as information on the accounting
policies the fund uses in arriving at the figures it presents here.
[PHOTO]
Together, the words and numbers in this section offer a comprehensive picture of
the fund and its recent activities. In fact, the text and notes on pages 5 to 18
are an integral part of the financial statements, which wouldn't be complete
without them.
For more information about the fund's strategies, risks and expenses, check the
fund's prospectus; you'll need to read it before making any investments. The
prospectus also has more details on the fund's share classes and its policies
for shareholder accounts. To get a copy of any State Street Research prospectus,
see the back cover of this report.
Keep in mind that in annual reports, the portfolio holdings and financial
statements are audited, while in semiannual reports they are unaudited.
4 State Street Research Investment Trust
<PAGE>
About the Fund
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Business structure
State Street Research Investment Trust is a mutual fund. A mutual fund allows
shareholders to pool their assets for investment in a portfolio of securities.
This fund is a series of State Street Research Master Investment Trust, a
Massachusetts business trust, and is an open-end management investment company.
Four entities administer the fund's main business functions:
o The board of trustees oversee the fund with its shareholders' interests in
mind and have ultimate responsibility for the fund's activities (see back
pages of report for trustee information).
o The investment manager, State Street Research & Management Company, is
responsible for the fund's investment and business activities, and
receives the management fee as compensation.
o The distributor, State Street Research Investment Services, Inc., sells
shares of the fund, handles investor inquiries and transaction orders, and
provides other shareholder services.
o The custodian, State Street Bank and Trust Company, holds fund securities,
provides data on their market value, and handles related services.
The investment manager and the distributor are subsidiaries of MetLife, Inc.
State Street Bank and Trust Company is not affiliated with MetLife (the
similarity between its name and the names of the investment manager and
distributor is coincidental). A majority of the trustees consists of people who
are not affiliated with MetLife or any of its subsidiaries. The distributor pays
a portion of its fees to MetLife for services it provides, including maintaining
the accounts of some investors who hold shares through their firm's employee
benefit plans and other sponsored arrangements.
Goal and strategy
The fund seeks to provide long-term growth of capital and secondarily, long-term
growth of income. In managing its portfolio, the fund generally attempts to
identify the industries that, over the long term, will grow faster than the
economy as a whole.
Share classes
The fund generally offers four share classes, each with its own sales charge and
expense structure. The fund also offers an additional class of shares (Class B)
but only to current Class B shareholders through reinvestment of dividends and
distributions or through exchanges from existing Class B accounts of other State
Street Research funds.
Class A shares are subject to an initial sales charge of up to 5.75%. From
January 1, 2000 to April 30, 2000, Class A shares paid a service fee equal to
0.25% of average daily net assets. Beginning May 1, 2000, Class A shares pay an
annual distribution and service fee equal to 0.30% of average daily net assets.
Class B(1) shares pay annual distribution and service fees of 1.00% and
automatically convert into Class A shares (which pay lower ongoing expenses) at
the end of eight years. From January 1, 2000 to January 31, 2000, Class B shares
paid an annual distribution and service fee of 0.63%. From February 1, 2000 to
April 30, 2000 Class B shares paid an annual distribution and service fee of
0.43%. Beginning May 1, 2000, Class B shares pay an annual distribution and
service fee of 0.64% and automatically convert into Class A shares at the end of
eight years. Class B(1) and Class B shares are subject to a contingent deferred
sales charge on certain redemptions made within six years and five years of
purchase, respectively. Class C shares are subject to a contingent deferred
sales charge of 1.00% on any shares redeemed within one year of their purchase,
and shares also pay annual distribution and service fees of 1.00%. Class S
shares are only offered through certain retirement accounts, advisory accounts
of the investment manager, 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 text and notes are an integral part of the financial statements.
5
<PAGE>
The Fund's Accounting Policies
--------------------------------------------------------------------------------
In keeping with accounting principles generally accepted in the United States,
the fund has used the following policies in preparing the portfolio holdings and
financial statements in this report:
The fund values all portfolio securities as of the date of this report (or, if
that day wasn't a business day, the most recent business day). The fund uses the
following methods for determining the values of various types of securities:
o Listed securities -- The fund uses the price of the last sale on a
national securities exchange that was quoted before the close of the
New York Stock Exchange.
o Over-the-counter securities -- The fund uses the closing prices
quoted on the Nasdaq system. If a security hasn't traded that day,
or if it is not quoted on the Nasdaq system, the value is set at
halfway between the closing bid and asked quotations.
o Securities maturing within 60 days -- The fund adjusts the value of
these securities daily, moving them closer to the amount due on
maturity as the maturity date approaches.
The fund accounts for each purchase and sale of portfolio securities on the
trade date. In calculating realized gains or losses, the fund takes as its cost
basis the identified cost of securities sold.
The fund records investment income from portfolio securities as follows:
o Interest -- The fund accrues interest daily as it earns it.
o Cash dividends -- The fund accrues these on the ex-dividend date.
The fund may seek additional income by lending portfolio securities to qualified
institutions. The fund will receive cash or securities as collateral in the
amount equal to at least 100% of the current market value of any loaned
securities plus accrued interest. By reinvesting any cash collateral it receives
in these transactions, the fund could realize additional gains or losses. If the
borrower fails to return the securities and the collateral has declined in
value, the fund could lose money. The fund accounts for income from the lending
of its securities by including it in interest income.
The fund distributes its net earnings to its shareholders. The fund calculates
these distributions using federal income tax regulations. As a result, they may
be different than if the fund used generally accepted accounting principles. The
fund distributes its earnings on the following schedule:
o Dividends from net investment income -- The fund ordinarily declares
and pays these annually, if any.
o Net realized capital gains -- The fund distributes these annually,
if any, and may make an additional distribution if tax regulations
make it necessary.
If the fund has no earnings to distribute, it won't make a distribution.
The fund does not intend to pay federal income tax. This is because it has
elected to be exempt from taxes under Subchapter M of the Internal Revenue Code,
in part because it makes distributions as described above.
The fund has used certain estimates and assumptions in preparing this report.
Although they are necessary in order to follow generally accepted accounting
principles, these estimates and assumptions affect several key areas, including
the reported amounts of assets and liabilities, and income and expenses. Actual
results could differ from those estimates.
The fund's securities and investment practices carry certain risks.
The text and notes are an integral part of the financial statements.
6 State Street Research Investment Trust
<PAGE>
Portfolio Holdings June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
The listings that begin on this page detail the fund's investment holdings as of
the report date. We have grouped the holdings by asset class and by smaller
sub-groups as well. For example, we have grouped this fund's stocks by sector of
the economy, and then by specific industry within each sector.
The solid colored circles (1) show the fund's ten largest holdings, with the
number in the circle showing where the holding ranks in the top ten.
--------------------------------------------------------------------------------
Notes about specific elements of the financials are called out in boxes such as
this.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Key to symbols
* Denotes a security which has not paid a dividend during the last year.
o Denotes an American Depositary Receipt, a form of ownership of foreign
securities that is traded in the United States and denominated in U.S.
dollars.
------------------------------------------------------------------------
Market
Issuer Shares Value
------------------------------------------------------------------------
Common Stocks 99.0% of net assets
Automobiles & Transportation
0.9% of net assets
------------------------------------------------------------------------
Miscellaneous Transportation 0.9%
------------------------------------------------------------------------
Harley-Davidson Inc. 876,700 $33,752,950
------------
------------------------------------------------------------------------
Total Automobiles & Transportation 33,752,950
------------
Consumer Discretionary 10.5% of net assets
------------------------------------------------------------------------
Advertising Agencies 1.6%
------------------------------------------------------------------------
Interpublic Group of Companies, Inc. 1,330,700 57,220,100
------------
------------------------------------------------------------------------
Communications, Media & Entertainment 5.3%
------------------------------------------------------------------------
Gemstar Group Ltd.* 292,900 17,999,620
------------------------------------------------------------------------
Time Warner Inc. 199,700 15,177,200
------------------------------------------------------------------------
(6) Viacom Inc. Cl. B* 1,612,366 109,943,207
Media
------------------------------------------------------------------------
Walt Disney Co. 1,201,296 46,625,301
------------
------------------------------------------------------------------------
189,745,328
------------
Retail 3.6%
------------------------------------------------------------------------
Best Buy Company Inc.* 258,500 16,350,125
------------------------------------------------------------------------
Home Depot Inc. 522,250 26,079,859
------------------------------------------------------------------------
Staples Inc.* 1,955,900 30,071,963
------------------------------------------------------------------------
Wal-Mart Stores, Inc. 1,025,700 59,105,962
------------
------------------------------------------------------------------------
131,607,909
------------
Total Consumer Discretionary 378,573,337
------------
Consumer Staples 5.0% of net assets
------------------------------------------------------------------------
Beverages 2.8%
------------------------------------------------------------------------
Anheuser-Busch Companies, Inc. 627,200 46,844,000
------------------------------------------------------------------------
Coca-Cola Co. 929,200 53,370,925
------------
------------------------------------------------------------------------
100,214,925
------------
Drug & Grocery Store Chains 1.4%
------------------------------------------------------------------------
CVS Corp. 1,233,600 49,344,000
------------
------------------------------------------------------------------------
Household Products 0.8%
------------------------------------------------------------------------
Colgate-Palmolive Co. 499,400 29,901,575
------------
------------------------------------------------------------------------
Total Consumer Staples 179,460,500
------------
The text and notes are an integral part of the financial statements.
7
<PAGE>
Portfolio Holdings June 30, 2000 CONTINUED
<TABLE>
<CAPTION>
Market
Issuer Shares Value
-------------------------------------------------------------------------------
<C> <S> <C> <C>
Financial Services 13.7% of net assets
-------------------------------------------------------------------------------
Banks & Savings & Loan 1.3%
-------------------------------------------------------------------------------
Chase Manhattan Corp. 1,033,750 $47,617,109
------------
-------------------------------------------------------------------------------
Financial Data Processing Services & Systems 1.2%
-------------------------------------------------------------------------------
First Data Corp. 869,900 43,168,788
------------
-------------------------------------------------------------------------------
Insurance 4.0%
-------------------------------------------------------------------------------
Ace Ltd. 2,428,500 67,998,000
-------------------------------------------------------------------------------
American International Group Inc. 656,400 77,127,000
------------
-------------------------------------------------------------------------------
145,125,000
------------
Miscellaneous Financial 7.2%
-------------------------------------------------------------------------------
American Express Co. 469,200 24,457,050
-------------------------------------------------------------------------------
American General Corp. 869,342 53,029,862
-------------------------------------------------------------------------------
(7) Citigroup, Inc. 1,612,650 97,162,162
Financial Services
-------------------------------------------------------------------------------
Marsh & McLennan Companies, Inc. 382,900 39,989,119
-------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 547,100 45,546,075
------------
-------------------------------------------------------------------------------
260,184,268
------------
Total Financial Services 496,095,165
------------
Health Care 12.7% of net assets
-------------------------------------------------------------------------------
Drugs & Biotechnology 11.5%
-------------------------------------------------------------------------------
American Home Products Corp. 232,700 13,671,125
-------------------------------------------------------------------------------
Baxter International Inc. 1,072,400 75,403,125
-------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 272,600 15,878,950
-------------------------------------------------------------------------------
Genentech Inc.* 55,800 9,597,600
-------------------------------------------------------------------------------
Johnson & Johnson 452,500 46,098,437
-------------------------------------------------------------------------------
(1) Pfizer Inc. 3,335,525 160,105,200
Pharmaceuticals
-------------------------------------------------------------------------------
(8) Pharmacia Corp. 1,838,800 95,042,975
Pharmaceuticals ------------
-------------------------------------------------------------------------------
415,797,412
------------
Hospital Supply 1.2%
-------------------------------------------------------------------------------
Guidant Corp.* 863,600 42,748,200
------------
-------------------------------------------------------------------------------
Total Health Care 458,545,612
------------
Integrated Oils 4.6% of net assets
-------------------------------------------------------------------------------
Integrated Domestic 0.9%
-------------------------------------------------------------------------------
Conoco Inc. Cl. B 1,393,600 34,230,300
------------
-------------------------------------------------------------------------------
Integrated International 3.7%
-------------------------------------------------------------------------------
Exxon Mobil Corp. 548,900 43,088,650
-------------------------------------------------------------------------------
Shell Transport & Trading PLC 728,400 36,374,475
-------------------------------------------------------------------------------
Total Fina SA o 710,108 54,545,171
------------
-------------------------------------------------------------------------------
134,008,296
------------
Total Integrated Oils 168,238,596
------------
Materials & Processing 0.5% of net assets
-------------------------------------------------------------------------------
Chemicals 0.5%
-------------------------------------------------------------------------------
Dow Chemical Co. 637,000 19,229,438
------------
-------------------------------------------------------------------------------
Total Materials & Processing 19,229,438
------------
Other 6.2% of net assets
-------------------------------------------------------------------------------
Multi-Sector 6.2%
-------------------------------------------------------------------------------
(2) General Electric Co. 2,481,300 131,508,900
Consumer & Industrial Products
-------------------------------------------------------------------------------
Honeywell International Inc.* 124,100 4,180,619
-------------------------------------------------------------------------------
(9) Tyco International Ltd. 1,889,000 89,491,375
Diversified Manufacturer ------------
-------------------------------------------------------------------------------
Total Other 225,180,894
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Other Energy 5.7% of net assets
-------------------------------------------------------------------------------
Gas Pipelines 0.2%
-------------------------------------------------------------------------------
Enron Corp. 122,800 7,920,600
------------
-------------------------------------------------------------------------------
Offshore Drilling 2.1%
-------------------------------------------------------------------------------
R & B Falcon Corp.* 489,200 11,526,775
-------------------------------------------------------------------------------
Transocean Sedco Forex Inc.* 1,185,660 63,358,706
------------
-------------------------------------------------------------------------------
74,885,481
------------
Oil & Gas Producers 0.6%
-------------------------------------------------------------------------------
Ocean Energy Inc.* 1,559,800 22,129,663
------------
-------------------------------------------------------------------------------
Oil Well Equipment & Services 2.8%
-------------------------------------------------------------------------------
AES Corp.* 1,277,200 58,272,250
-------------------------------------------------------------------------------
Schlumberger Ltd. 585,024 43,657,416
------------
-------------------------------------------------------------------------------
101,929,666
------------
Total Other Energy 206,865,410
------------
Producer Durables 4.3% of net assets
-------------------------------------------------------------------------------
Electrical Equipment & Components 2.3%
-------------------------------------------------------------------------------
(10) Nortel Networks Corp 1,217,800 83,114,850
Electrical Equipment & Components
-------------------------------------------------------------------------------
Production Technology Equipment 0.6%
-------------------------------------------------------------------------------
Agilent Technologies Inc.* 163,889 12,086,814
-------------------------------------------------------------------------------
Teradyne Inc.* 127,400 9,363,900
------------
-------------------------------------------------------------------------------
21,450,714
------------
Telecommunications Equipment 1.4%
-------------------------------------------------------------------------------
American Tower Corp. Cl. A* 1,266,900 52,813,894
------------
-------------------------------------------------------------------------------
Total Producer Durables 157,379,458
------------
</TABLE>
The text and notes are an integral part of the financial statements.
8 State Street Research Investment Trust
<PAGE>
Market
Issuer Shares Value
--------------------------------------------------------------------------
Technology 29.3% of net assets
--------------------------------------------------------------------------
Communications Technology 8.6%
--------------------------------------------------------------------------
(4) Cisco Systems Inc.* 1,783,800 $113,382,787
Computer Network Products
--------------------------------------------------------------------------
Comverse Technology Inc.* 490,700 45,635,100
--------------------------------------------------------------------------
Corning Inc. 106,400 28,714,700
--------------------------------------------------------------------------
General Motors Corp. Cl.H* 797,500 69,980,625
--------------------------------------------------------------------------
Lucent Technologies Inc. 466,700 27,651,975
--------------------------------------------------------------------------
Motorola Inc. 921,900 26,792,719
--------------
--------------------------------------------------------------------------
312,157,906
--------------
Computer Software 7.2%
--------------------------------------------------------------------------
Amdocs Ltd.* 336,100 25,795,675
--------------------------------------------------------------------------
Bea Systems Inc.* 563,900 27,877,806
--------------------------------------------------------------------------
Intuit, Inc.* 280,800 11,618,100
--------------------------------------------------------------------------
(3) Microsoft Corp.* 1,487,900 119,032,000
Computer Software
--------------------------------------------------------------------------
Oracle Systems Corp.* 484,200 40,703,063
--------------------------------------------------------------------------
VeriSign Inc.* 142,007 25,064,236
--------------------------------------------------------------------------
Veritas Software Co.* 97,750 11,047,277
--------------
--------------------------------------------------------------------------
261,138,157
--------------
Computer Technology 5.2%
--------------------------------------------------------------------------
Dell Computer Corp.* 1,370,600 67,587,712
--------------------------------------------------------------------------
EMC Corp.* 782,800 60,226,675
--------------------------------------------------------------------------
Hewlett-Packard Co. 264,000 32,967,000
--------------------------------------------------------------------------
International Business Machines Corp. 247,100 27,072,894
--------------
--------------------------------------------------------------------------
187,854,281
--------------
Electronics 3.5%
--------------------------------------------------------------------------
Nokia Corp. o 865,500 43,220,906
--------------------------------------------------------------------------
PE Corp.-Biosystems Group 398,400 26,244,600
--------------------------------------------------------------------------
Solectron Corp.* 1,379,600 57,770,750
--------------
--------------------------------------------------------------------------
127,236,256
--------------
Electronics: Semi-Conductors/Components 4.8%
--------------------------------------------------------------------------
Cree Research Inc. 46,400 6,194,400
--------------------------------------------------------------------------
(5) Intel Corp. 832,500 111,294,844
Semiconductor & Components
--------------------------------------------------------------------------
Texas Instruments Inc. 825,100 56,674,056
--------------
--------------------------------------------------------------------------
174,163,300
--------------
Total Technology 1,062,549,900
--------------
Utilities 5.6% of net assets
--------------------------------------------------------------------------
Electrical 0.2%
--------------------------------------------------------------------------
FPL Group Inc. 172,800 8,553,600
--------------
--------------------------------------------------------------------------
Telecommunications 5.4%
--------------------------------------------------------------------------
Nextel Communications Inc. Cl. A* 705,800 43,186,138
--------------------------------------------------------------------------
Qwest Communications
International Inc.* 1,083,000 53,811,562
--------------------------------------------------------------------------
Sprint Corp.* 706,800 42,054,600
--------------------------------------------------------------------------
Worldcom Inc.* 1,221,800 56,050,075
--------------
--------------------------------------------------------------------------
195,102,375
--------------
Total Utilities 203,655,975
--------------
Total Common Stocks 3,589,527,235
--------------
-------------------------------------------------------------
The fund paid a total of $2,431,165,752 for these securities.
-------------------------------------------------------------
The text and notes are an integral part of the financial statements.
9
<PAGE>
Portfolio Holdings June 30, 2000 CONTINUED
<TABLE>
<CAPTION>
Market
Issuer Shares Value
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Investments 3.9% of net assets
------------------------------------------------------------------------------------------------------------------------
State Street Navigator Securities Lending Prime Portfolio 141,954,384 $141,954,384
--------------
------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments 141,954,384
--------------
-----------------------------------------------------------
The fund paid a total of $141,954,384 for these securities.
-----------------------------------------------------------
<CAPTION>
Coupon Maturity Amount of
Rate Date Principal
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper 2.9% of net assets
------------------------------------------------------------------------------------------------------------------------
American Express Credit Corp. 6.88% 7/03/2000 $48,839,000 $48,839,000
------------------------------------------------------------------------------------------------------------------------
Citicorp. 6.77% 7/05/2000 10,696,000 10,696,000
------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co. 6.60% 7/05/2000 3,569,000 3,569,000
------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co. 6.72% 7/05/2000 11,866,000 11,866,000
------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group LP 6.75% 7/07/2000 30,000,000 29,966,250
--------------
------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 104,936,250
--------------
-----------------------------------------------------------
The fund paid a total of $104,936,250 for these securities.
-----------------------------------------------------------
<CAPTION>
% of
Net Assets
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Summary of Portfolio Assets
------------------------------------------------------------------------------------------------------------------------
Investments 105.8% $3,836,417,869
------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities (5.8%) (212,250,928)
----- --------------
------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,624,166,941
===== ==============
-------------------------------------------------------------
The fund paid a total of $2,678,056,386 for these securities.
-------------------------------------------------------------
</TABLE>
The text and notes are an integral part of the financial statements.
10 State Street Research Investment Trust
<PAGE>
--------------------------------------------------------------------------------
Federal Income Tax Information
At June 30, 2000, the net unrealized appreciation of
investments based on cost for Federal income tax purposes of
$2,676,966,515 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $1,217,351,712
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (57,900,358)
--------------
$1,159,451,354
==============
--------------------------------------------------------------------------------
The text and notes are an integral part of the financial statements.
11
<PAGE>
Statement of
Assets and Liabilities June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
This is the fund's balance sheet as of the report date. It shows the fund's
total assets, its liabilities and, by subtraction, its net assets. It also shows
the share price for each share class as of the report date.
Assets
Investments, at market value $3,836,417,869
-------------------------------------------------------------
The fund paid a total of $2,678,056,386 for these securities.
-------------------------------------------------------------
Receivable for securities sold 8,696,277
Receivable for fund shares sold 4,679,270
Dividends and interest receivable 1,759,413
Other assets 199,734
--------------
3,851,752,563
Liabilities
Payable for collateral received on
securities loaned 141,954,384
Payable for securities purchased 75,255,165
Accrued management fee 4,185,527
Accrued distribution and service fees 2,139,742
Payable for fund shares redeemed 2,091,072
Accrued transfer agent and shareholder services 1,169,438
Payable to custodian 638,556
Other accrued expenses 151,738
--------------
227,585,622
--------------
Net Assets $3,624,166,941
==============
Net Assets consist of:
Unrealized appreciation of investments $1,158,361,483
Accumulated net realized gain 253,820,206
Paid-in capital 2,211,985,252
--------------
$3,624,166,941
==============
--------------------------------------------------------------------------------
Net Asset Value (NAV) of Each Share Class
Except where noted, the NAV is the offering and the redemption price for each
class.
Net Assets / Number of Shares = NAV
A $ 876,315,081 61,136,785 $14.33*
B(1) $ 422,160,166 30,047,972 $14.05**
B $1,044,371,306 74,072,111 $14.10**
C $ 99,345,103 7,049,344 $14.09**
S $1,181,975,285 81,789,237 $14.45
* Maximum offering price per share $15.20 ($14.33 / .9425)
** When you sell Class B(1), Class B or Class C shares, you receive the net
asset value minus deferred sales charge, if any.
--------------------------------------------------------------------------------
The text and notes are an integral part of the financial statements.
12 State Street Research Investment Trust
<PAGE>
Statement of
Operations For the six months ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
This shows what the fund earned and lost over the report period, and what its
expenses were.
Investment Income
Dividends, net of foreign taxes $12,197,897
--------------------------------------------------------------------------------
The fund paid foreign taxes of $278,212.
--------------------------------------------------------------------------------
Interest 3,834,611
--------------------------------------------------------------------------------
Includes $609,466 in income from the lending of portfolio securities. As of the
report date, the fund had a total of $138,194,069 of securities out on loan and
was holding a total of $141,954,384 in collateral related to those loans.
--------------------------------------------------------------------------------
------------
16,032,508
Expenses
Management fee 8,242,902
--------------------------------------------------------------------------------
The management fee is 0.55% of the first $500 million of average net assets,
annually, 0.50% of the next $500 million, and 0.45% of any amount over $1
billion.
--------------------------------------------------------------------------------
Transfer agent and shareholder services 2,725,650
--------------------------------------------------------------------------------
Includes a total of $1,112,248 paid to the distributor for the services it
provided and to MetLife for similar services it provided, including maintaining
the accounts of some investors who hold shares through that firm's employee
benefit plans and other sponsored arrangements.
--------------------------------------------------------------------------------
Distribution and service fees-Class A 1,115,807
Distribution and service fees-Class B(1) 1,790,931
Distribution and service fees-Class B 2,614,062
Distribution and service fees-Class C 476,277
--------------------------------------------------------------------------------
Payments made to the distributor under the fund's 12b-1 plans. The fees cover
personal services and the maintenance of shareholder accounts. The fees also
cover distribution and marketing expenditures for the sale of fund shares.
--------------------------------------------------------------------------------
Custodian fee 210,207
Reports to shareholders 102,841
Registration fees 58,572
Trustees' fees 35,261
--------------------------------------------------------------------------------
Paid only to trustees who aren't currently affiliated with the adviser (the fund
doesn't pay trustees fees to affiliated trustees).
--------------------------------------------------------------------------------
Audit fee 16,738
Legal fees 6,381
Miscellaneous 38,393
------------
17,434,022
Fees paid indirectly (84,878)
--------------------------------------------------------------------------------
Represents transfer agent credits earned from uninvested cash balances and
directed brokerage credits used to reduce the custodian fee.
--------------------------------------------------------------------------------
------------
17,349,144
------------
Net investment loss (1,316,636)
------------
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain on investments 257,826,147
--------------------------------------------------------------------------------
To earn this, the fund sold $1,429,212,409 of securities. During this same
period, the fund also bought $1,521,364,538 worth of securities. These figures
don't include short-term obligations or U.S. government securities.
--------------------------------------------------------------------------------
Net unrealized depreciation of investments (86,577,632)
------------
Net gain on investments 171,248,515
------------
Net increase in net assets resulting
from operations $169,931,879
============
The text and notes are an integral part of the financial statements.
13
<PAGE>
Statement of
Changes in Net Assets
--------------------------------------------------------------------------------
This shows how the fund's size changed over the report period, including changes
that resulted from investment performance as well as those that resulted from
shareholders.
Six months ended
Year ended June 30, 2000
December 31, 1999 (unaudited)
--------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Operations:
Net investment loss $(933,030) $(1,316,636)
Net realized gain on
investments 236,272,357 257,826,147
Net unrealized appreciation
(depreciation) of investments 310,802,825 (86,577,632)
--------------------------------
Net increase resulting
from operations 546,142,152 169,931,879
--------------------------------
Dividend from net
investment income:
Class A (109,725) --
Class S (301,841) --
--------------------------------
(411,566) --
--------------------------------
Dividend in excess of net
investment income:
Class A (515,054) --
Class S (1,837,421) --
--------------------------------
(2,352,475) --
--------------------------------
Distributions from
capital gains:
Class A (39,082,234) (21,817,073)
Class B(1) (12,745,685) (9,532,694)
Class B (54,789,323) (27,993,514)
Class C (4,446,859) (2,552,670)
Class S (58,323,229) (30,566,072)
--------------------------------
(169,387,330) (92,462,023)
--------------------------------
Net increase from fund
share transactions+++ 441,461,838 126,724,530
--------------------------------
Total increase in net assets 815,452,619 204,194,386
--------------------------------
Net Assets
Beginning of period 2,604,519,936 3,419,972,555
--------------------------------
End of period $3,419,972,555 $3,624,166,941
================================
The accompanying notes are an integral part of the financial statements.
14 State Street Research Investment Trust
<PAGE>
--------------------------------------------------------------------------------
+++ These transactions break down by share class as follows:
<TABLE>
<CAPTION>
Six months ended
Year ended June 30, 2000
December 31, 1999 (unaudited)
--------------------------------------------------------------
Class A Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 30,350,365 $396,811,746 9,694,342 $136,142,024*
Issued upon reinvestment of:
Distributions from capital gains 2,885,362 38,137,344 1,421,500 20,837,986
Dividend from net investment income 45,976 589,185 -- --
Shares redeemed (22,501,889) (295,663,490) (7,259,540) (102,024,186)
--------------------------------------------------------------
Net increase 10,779,814 $139,874,785 3,856,302 $54,955,824
==============================================================
<CAPTION>
Class B(1) Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 22,072,928 $285,348,870 9,620,183 $133,198,508**
Issued upon reinvestment of
distributions from capital gains 957,342 12,479,692 647,268 9,363,888
Shares redeemed (1,393,563) (18,427,158) (1,856,186) (25,790,938)***
--------------------------------------------------------------
Net increase 21,636,707 $279,401,404 8,411,265 $116,771,458
==============================================================
<CAPTION>
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 9,428,216 $120,762,829 2,603,802 $36,115,225**
Issued upon reinvestment of
distributions from capital gains 4,061,837 52,887,655 1,871,078 27,000,528
Shares redeemed (12,995,496) (168,334,936) (7,984,379) (111,127,028)***
--------------------------------------------------------------
Net increase (decrease) 494,557 $5,315,548 (3,509,499) ($48,011,275)
==============================================================
<CAPTION>
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 2,912,519 $37,627,923 1,160,849 $16,197,163**
Issued upon reinvestment of
distributions from capital gains 314,928 4,114,905 163,450 2,360,057
Shares redeemed (1,143,963) (14,870,883) (853,930) (11,881,310)****
--------------------------------------------------------------
Net increase 2,083,484 $26,871,945 470,369 $6,675,910
==============================================================
<CAPTION>
Class S Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 3,450,979 $45,865,215 1,515,153 $21,622,551
Issued upon reinvestment of:
Distributions from capital gains 2,595,411 34,528,519 1,247,061 18,421,319
Dividend from net investment income 64,742 848,625 -- --
Shares redeemed (6,926,402) (91,244,203) (3,076,048) (43,711,257)
--------------------------------------------------------------
Net decrease (815,270) ($10,001,844) (313,834) ($3,667,387)
==============================================================
</TABLE>
The trustees have the authority to issue an unlimited number of fund
shares, with a $.001 par value per share.
* Includes $455,165 and $1,281,807 in sales charges collected by the
distributor and MetLife.
** Like all broker-dealers, MetLife received commissions that were calculated
as a percentage of these sales but the commissions of $1,676,032, $10,533
and $3,662 for Class B(1), Class B and Class C were paid by the
distributor, not the fund.
*** Includes $530,527 and $906,993 in deferred sales charges collected by the
distributor for Class B(1) and Class B.
**** Includes $5,984 in deferred sales charges collected by the distributor.
--------------------------------------------------------------------------------
The text and notes are an integral part of the financial statements.
15
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
These provide a summary of each share class's financial performance for the past
five fiscal years.
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------
Years ended December 31 Six months ended
--------------------------------------------------- June 30, 2000
Per Share Data 1995(a) 1996(a) 1997(a) 1998(a) 1999(a) (unaudited)(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 7.74 9.16 9.07 10.41 12.36 14.01
------- ------- ------- ------- ------- -------
Net investment income (loss) ($) 0.14 0.12 0.10 0.07 0.02 (0.00)
Net realized and unrealized gain
on investments ($) 2.39 1.80 2.54 2.89 2.37 0.70
------- ------- ------- ------- ------- -------
Total from investment operations ($) 2.53 1.92 2.64 2.96 2.39 0.70
------- ------- ------- ------- ------- -------
Dividends from net investment income ($) (0.13) (0.13) (0.10) (0.06) (0.00) --
Dividend in excess of net investment income ($) -- -- -- -- (0.01) --
Distributions from capital gains ($) (0.98) (1.87) (1.20) (0.95) (0.73) (0.38)
Distribution in excess of capital gains ($) -- (0.01) -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions ($) (1.11) (2.01) (1.30) (1.01) (0.74) (0.38)
------- ------- ------- ------- ------- -------
Net asset value, end of year ($) 9.16 9.07 10.41 12.36 14.01 14.33
======= ======= ======= ======= ======= =======
Total return (%)(b) 32.85 21.03 28.91 29.12 19.75 4.92(c)
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 135,676 223,868 367,759 574,858 802,359 876,315
Expense ratio (%) 0.78 0.75 0.76 0.85 0.93 0.92(d)
Expense ratio after expense reductions (%) 0.78 0.75 0.76 0.84 0.92 0.92(d)
Ratio of net investment income (loss) to
average net assets (%) 1.54 1.17 0.90 0.63 0.14 (0.00)(d)
Portfolio turnover rate (%) 39.21 73.51 75.21 66.32 71.45 42.06
</TABLE>
<TABLE>
<CAPTION>
Class B(1)
------------------------------------------
Six months ended
Year ended June 30, 2000
Per Share Data December 31, 1999(a)(e) (unaudited)(a)
---------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period ($) 12.25 13.79
------- -------
Net investment loss ($) (0.09) (0.05)
Net realized and unrealized gain
on investments ($) 2.36 0.69
------- -------
Total from investment operations ($) 2.27 0.64
------- -------
Distributions from capital gains ($) (0.73) (0.38)
------- -------
Total distributions ($) (0.73) (0.38)
------- -------
Net asset value, end of period ($) 13.79 14.05
======= =======
Total return (%)(b) 18.91 4.56(c)
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Net assets at end of period ($ thousands) 298,303 422,160
Expense ratio (%) 1.68 1.65(d)
Expense ratio after expense reductions (%) 1.67 1.65(d)
Ratio of net investment loss to
average net assets (%) (0.68) (0.73)(d)
Portfolio turnover rate (%) 71.45 42.06
</TABLE>
The text and notes are an integral part of the financial statements.
16 State Street Research Investment Trust
<PAGE>
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------------------------
Years ended December 31 Six months ended
------------------------------------------------------------- June 30, 2000
Per Share Data 1995(a) 1996(a) 1997(a) 1998(a) 1999(a) (unaudited)(a)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 7.72 9.13 9.03 10.34 12.25 13.80
--------- --------- --------- --------- --------- ---------
Net investment income (loss) ($) 0.07 0.04 0.02 (0.01) (0.06) (0.02)
Net realized and unrealized gain
on investments ($) 2.38 1.80 2.51 2.87 2.34 0.70
--------- --------- --------- --------- --------- ---------
Total from investment operations ($) 2.45 1.84 2.53 2.86 2.28 0.68
--------- --------- --------- --------- --------- ---------
Dividends from net investment income ($) (0.06) (0.06) (0.02) -- -- --
Distributions from capital gains ($) (0.98) (1.87) (1.20) (0.95) (0.73) (0.38)
Distribution in excess of capital gains ($) -- (0.01) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ($) (1.04) (1.94) (1.22) (0.95) (0.73) (0.38)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ($) 9.13 9.03 10.34 12.25 13.80 14.10
========= ========= ========= ========= ========= =========
Total return (%)(b) 31.86 20.15 27.80 28.26 18.99 4.85(c)
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period ($ thousands) 183,446 315,766 558,568 944,388 1,070,608 1,044,371
Expense ratio (%) 1.53 1.50 1.51 1.60 1.54 1.15(d)
Expense ratio after expense reductions (%) 1.53 1.50 1.51 1.59 1.53 1.15(d)
Ratio of net investment income (loss) to
average net assets (%) 0.79 0.41 0.15 (0.12) (0.46) (0.23)(d)
Portfolio turnover rate (%) 39.21 73.51 75.21 66.32 71.45 42.06
</TABLE>
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------------
Years ended December 31 Six months ended
----------------------------------------------- June 30, 2000
Per Share Data 1995(a) 1996(a) 1997(a) 1998(a) 1999(a) (unaudited)(a)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 7.74 9.15 9.05 10.38 12.29 13.83
------ ------ ------ ------ ------ ------
Net investment income (loss) ($) 0.07 0.04 0.02 (0.01) (0.08) (0.05)
Net realized and unrealized gain
on investments ($) 2.38 1.79 2.53 2.87 2.35 0.69
------ ------ ------ ------ ------ ------
Total from investment operations ($) 2.45 1.83 2.55 2.86 2.27 0.64
------ ------ ------ ------ ------ ------
Dividends from net investment income ($) (0.06) (0.05) (0.02) -- -- --
Distributions from capital gains ($) (0.98) (1.87) (1.20) (0.95) (0.73) (0.38)
Distribution in excess of capital gains ($) -- (0.01) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions ($) (1.04) (1.93) (1.22) (0.95) (0.73) (0.38)
------ ------ ------ ------ ------ ------
Net asset value, end of period ($) 9.15 9.05 10.38 12.29 13.83 14.09
====== ====== ====== ====== ====== ======
Total return (%)(b) 31.75 20.09 27.93 28.15 18.85 4.55(c)
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Net assets at end of period ($ thousands) 16,841 25,658 36,290 55,263 90,977 99,345
Expense ratio (%) 1.53 1.50 1.51 1.60 1.68 1.65(d)
Expense ratio after expense reductions (%) 1.53 1.50 1.51 1.59 1.67 1.65(d)
Ratio of net investment income (loss) to
average net assets (%) 0.79 0.42 0.15 (0.13) (0.62) (0.73)(d)
Portfolio turnover rate (%) 39.21 73.51 75.21 66.32 71.45 42.06
</TABLE>
(a) Per-share figures have been calculated using the average shares method.
(b) Does not reflect any front-end or contingent deferred sales charges.
(c) Not annualized.
(d) Annualized.
(e) January 1, 1999 (commencement of share class) to December 31, 1999.
The text and notes are an integral part of the financial statements.
17
<PAGE>
Financial Highlights CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class S
----------------------------------------------------------------------------------
Years ended December 31 Six months ended
------------------------------------------------------------- June 30, 2000
Per Share Data 1995(a) 1996(a) 1997(a) 1998(a) 1999(a) (unaudited)(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 7.76 9.18 9.11 10.45 12.42 14.10
--------- --------- --------- --------- --------- ---------
Net investment income ($) 0.16 0.14 0.12 0.10 0.05 0.02
Net realized and unrealized gain
on investments ($) 2.39 1.82 2.54 2.91 2.38 0.71
--------- --------- --------- --------- --------- ---------
Total from investment operations ($) 2.55 1.96 2.66 3.01 2.43 0.73
--------- --------- --------- --------- --------- ---------
Dividends from net investment income ($) (0.15) (0.15) (0.12) (0.09) (0.00) --
Dividend in excess of net investment income ($) -- -- -- -- (0.02) --
Distributions from capital gains ($) (0.98) (1.87) (1.20) (0.95) (0.73) (0.38)
Distribution in excess of capital gains ($) -- (0.01) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ($) (1.13) (2.03) (1.32) (1.04) (0.75) (0.38)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ($) 9.18 9.11 10.45 12.42 14.10 14.45
========= ========= ========= ========= ========= =========
Total return (%)(b) 33.07 21.48 29.08 29.51 20.01 5.10(c)
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period ($ thousands) 738,649 780,627 883,276 1,030,011 1,157,727 1,181,975
Expense ratio (%) 0.54 0.50 0.51 0.60 0.68 0.65(d)
Expense ratio after expense reductions (%) 0.54 0.50 0.51 0.59 0.67 0.65(d)
Ratio of net investment income to
average net assets (%) 1.81 1.44 1.17 0.88 0.39 0.27(d)
Portfolio turnover rate (%) 39.21 73.51 75.21 66.32 71.45 42.06
</TABLE>
(a) Per-share figures have been calculated using the average shares method.
(b) Does not reflect any front-end or contingent deferred sales charges.
(c) Not annualized.
(d) Annualized.
The text and notes are an integral part of the financial statements.
18 State Street Research Investment Trust
<PAGE>
BOARD OF TRUSTEES
Gerard P. Maus
Chief Financial Officer, Chief Administrative Officer,
Director and Interim Chief Operating Officer,
State Street Research & Management Company
Bruce R. Bond
Former Chairman of the Board,
Chief Executive Officer and President,
PictureTel Corporation
Steve A. Garban
Former Senior Vice President
for Finance and Operations and Treasurer,
The Pennsylvania State University
Dean O. Morton
Former Executive Vice President,
Chief Operating Officer and Director,
Hewlett-Packard Company
Susan M. Phillips
Dean, School of Business and Public Management,
George Washington University; former Member of the
Board of Governors of the Federal Reserve System and
Chairman and Commissioner of the Commodity
Futures Trading Commission
Toby Rosenblatt
President, Founders Investments Ltd.
President, The Glen Ellen Company
Michael S. Scott Morton
Jay W. Forrester Professor of Management,
Sloan School of Management,
Massachusetts Institute of Technology
State Street Research Investment Trust
--------------------------------------------------------------------------------
Report on Special Meeting of Shareholders
A Special Meeting of Shareholders of the State Street Research Investment Trust
("Fund"), a series of State Street Research Master Investment Trust, was
convened on February 25, 2000 ("Meeting"). The results of the Meeting are set
forth below.
Votes (millions of shares)
Action on Proposal For Against Abstain
----------------------------------------------------------------
Class A Shares
The Fund's current Rule 12b-1
Distribution Plan was amended to
increase the amount that may be
expended for the distribution
of Class A shares. 24.6 3.8 1.7
Class B Shares
The Fund's current Rule 12b-1
Distribution Plan was amended to
increase the amount that may be
expended for the distribution
of Class A shares. 33.4 4.4 2.4
Class B(1) Shares
The Fund's current Rule 12b-1
Distribution Plan was amended to
increase the amount that may be
expended for the distribution
of Class A shares. 8.5 0.9 0.7
19
<PAGE>
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----------------
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State Street Research
Spectrum of Funds
--------------------------------------------------------------------------------
AGGRESSIVE
Growth
Global Resources Fund
Emerging Growth Fund
Mid-Cap Growth Fund (1)
Aurora Fund
Concentrated International Fund
International Equity Fund
Concentrated Growth Fund
Growth Fund
Galileo Fund
Legacy Fund
Growth & Income
Argo Fund
Investment Trust
Alpha Fund
Strategic Growth & Income Fund
Strategic Income Plus Fund (2)
Income
High Income Fund
Strategic Income Fund
New York Tax-Free Fund
Tax-Exempt Fund
Government Income Fund
Money Market Fund (3)
CONSERVATIVE
(1) Formerly State Street Research Capital Fund.
(2) Formerly State Street Research Strategic Portfolios: Conservative.
(3) An investment in the fund is not insured or 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.
---------------------------------------------
[GRAPHIC]
DALBAR
HONORS COMMITMENT TO:
INVESTORS
1999
---------------------------------------------
for Excellence in Service
--------------------------------------------------------------------------------
This report must be accompanied or preceded by a current State Street Research
Investment Trust prospectus. When used after September 30, 2000, this report
must be accompanied by a current Quarterly Performance Update.
To obtain a prospectus on any State Street Research fund call 1-87-SSR-FUNDS
(1-877-773-8637). The prospectus contains more complete information, including
sales charges and expenses. Please read the prospectus carefully before
investing or sending money.
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.
(C)2000 State Street Research Investment Services, Inc., One Financial Center,
Boston, MA 02111
IT-2189-0800
Control Number:(exp0801)SSR-LD
