Supplement No. 1 dated June 29, 2000
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to Prospectus dated February 14, 2000
for State Street Research Strategic Portfolios: Aggressive
a series of State Street Research Financial Trust
Investment Management
Under the caption above on page 8 of the Prospectus, the third paragraph is
revised in its entirety to read as follows:
Beginning in July 2000, John H. Kallis assumed responsibility for the fund's
day-to-day portfolio management. A senior vice president, he joined the firm in
1987 and has worked as an investment professional since 1963. Mr. Kallis is
supported by an in-house team of investment specialists. Mr. Kallis assigns
varying portions of the fund's portfolio to individual investment team members.
The team members are responsible for differing types of bond and stock
investments, such as government securities, corporate bonds, growth stocks or
value stocks.
[State Street Logo] State Street Research SP-2141-0600
Control Number: (exp0301)SSR-LD
<PAGE>
Supplement No. 2 dated June 29, 2000
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(supplanting Supplement No. 1 dated May 1, 2000)
to Prospectus dated March 1, 2000
for State Street Research Strategic Income Plus Fund
A series of State Street Research Financial Trust
Rule 12b-1 Plan for Class A Shares
The fund's Rule 12b-1 plan of distribution has been amended to allow the fund to
increase its Rule 12b-1 fees on Class A shares. These fees are used to pay for
service, distribution and marketing expenses related to Class A shares of the
fund. The fee, formerly 25 basis points (0.25% or .0025), has been increased to
30 basis points (0.30% or .0030) of the net assets attributable to Class A
shares. The fund's Trustees may increase the current fees for Class A shares at
any time, provided that the fees do not exceed a maximum of 40 basis points
(0.40% or .0040).
Accordingly, the table captioned "Annual Fund Operating Expenses" under the
heading "Investor Expenses" on page 8 of the prospectus is hereby amended as
follows for Class A shares:
Class A
-------
Service/distribution (12-b) fees 0.30%**
** The Trustees may increase the current fee shown for Class A shares at any
time, provided that the fees do not exceed a maximum of 0.40%.
[State Street Logo] State Street Research SI-2140-0600
Control Number: (exp0301)SSR-LD
<PAGE>
Also, the figure shown in the table as "Total annual fund operating expenses"
for class A shares should be increased by 5 basis points (0.05%). This increased
level of operating expenses should be taken into consideration when using the
Example at the bottom of the table to compare the costs of the fund with other
funds.
In addition, the third bullet point under the caption "Class A -- Front
Load" under the heading "Your Investment" on Page 12 of the prospectus is hereby
amended as follows:
o Lower annual expenses than Class B(1) or Class C shares because of lower
service/distribution (12b-1) fee of up to 0.40%
Investment Management
Under the caption above on page 10 of the prospectus, the third paragraph is
revised in its entirety to read as follows:
Beginning in July 2000, John H. Kallis assumed responsibility for the fund's
day-to-day portfolio management. A senior vice president, he joined the firm in
1987 and has worked as an investment professional since 1963. Mr. Kallis is
supported by an in-house team of investment specialists. Mr. Kallis assigns
varying portions of the fund's portfolio to individual investment team members.
The team members are responsible for differing types of bond and stock
investments, such as government securities, corporate bonds, growth stocks or
value stocks.
