Supplement No. 1 dated November 1, 1997
to
Prospectus dated March 1, 1997 for
State Street Research Government Income Fund
a series of State Street Research Financial Trust
Prospectuses dated August 1, 1997 for
State Street Research High Income Fund
State Street Research Managed Assets
Series of State Street Research Income Trust
Prospectuses dated May 1, 1997 for
State Street Research Tax-Exempt Fund
State Street Research New York Tax-Free Fund
Series of State Street Research Tax-Exempt Trust
Prospectus dated May 1, 1997 for
State Street Research Investment Trust
a series of State Street Research
Master Investment Trust
Prospectuses dated September 1, 1997 for
State Street Research Intermediate Bond Fund
State Street Research Strategic Income Fund
Series of State Street Research Securities Trust
Prospectus dated August 25, 1997 for
State Street Research International Equity Fund
a series of State Street Research Portfolios, Inc.
Share Class Designations
The Funds have redesignated their share classes to be more consistent with
developing mutual fund industry practice. The changes do not affect sales
charges or any other share class features. Throughout each Fund's prospectus:
Former Class Redesignated Class
- ------------ ------------------
Class C is now Class S
Class D is now Class C
The designations for Class A and Class B are unchanged.
Class S Shares
The sub-caption "Class C Shares -- Institutional; No Sales Charge" is revised
to read "Class S Shares - Special Programs; No Sales Charge" and the second
paragraph under the caption is revised in its entirety to read as follows:
"In general, Class S shares are available for new investments by certain
large institutions, advisory accounts of the Investment Manager, and employee
benefit plans which acquire shares through programs or products sponsored by
Metropolitan Life Insurance Company ("Metropolitan") and/or its affiliates,
for which Class S shares have been designated. In addition, Class S shares
are available through special programs under which, for example, investors
pay an asset-based fee and/or a transaction fee to
intermediaries. Class S share availability is determined by the Distributor
and intermediaries based on overall direct and indirect costs of a particular
program, expected assets, account sizes and similar considerations.
Information on the availability of Class S shares and further conditions and
limitations is available from the Distributor."
Throughout each Fund's Prospectus, references to Class C shares (now
redesignated as Class S) should be read to give effect to the above revisions
regarding the availability of such shares.
