[COVER PAGE]
[LOGO] STATE STREET RESEARCH
STATE STREET RESEARCH
INVESTMENT TRUST
SEMIANNUAL REPORT [ILLUSTRATION]
June 30, 1996 MAN CLIMBING AND LOOKING AT STARS
WHAT'S INSIDE
Investment Update
The Fund, economy
and markets
Fund Information
Facts and figures
Plus, Complete Portfolio Holdings
and Financial Statements
[DALBAR LOGO]
For Excellence
in
Shareholder Service
<PAGE>
State Street Research Investment Trust
Investment Environment
The Economy
(bullet) The economy was stronger than expected in the first half of the
year. This made it less likely that the Federal Reserve would cut
interest rates further, which jolted the bond market and pushed
rates significantly higher.
(bullet) Despite stronger economic growth, inflation remained quite low.
Energy and food prices moved higher but, for the most part, consumer
prices were well contained.
(bullet) Consumer confidence improved, perhaps the result of falling
unemployment and rising average hourly wages.
The Markets
(bullet) Stocks performed well through the first six months of 1996,
rebounding from several market corrections. The Standard & Poor's
500 Index provided a total return of +10.09% through June 30, 1996.1
Small-company growth stocks also rewarded investors, with the
Russell 2000 Growth Index up 11.92% for the same period.1
(bullet) Bond performance was mixed over the six-months ended June 30, 1996.
High-yield bonds performed well in the strengthening economy, while
high-quality bonds remained relatively flat.
The Trust
A Look Back
(bullet) For the six months ended June 30, 1996, Class A shares of the Trust
provided a total return of +10.47% (not including sales charge).2
The average total return for the 527 funds in Lipper Analytical
Services' Growth and Income Funds category was +9.24% (does not
reflect sales charge) for the same time period.
(bullet) The Trust increased its overweighted position in technology stocks,
specifically in large networking and software companies, such as
Cisco Systems. We continue to focus on high-quality technology
companies which are more immune to hardware pricing pressures.
(bullet) We decreased our position in telephone stocks (AirTouch
Communications, for example), and the utility sector in general,
because of the uncertainty caused by mergers and the potential for
regulatory changes ahead.
Current Strategy
(bullet) We are continuing to invest in companies that exhibit the ability to
retain their market leadership through strong market share
positions, a high degree of pricing flexibility, and superior
distribution capabilities.
(bullet) About one-fifth of the portfolio is invested in "consumer staples"
stocks--a sector made up of household names that consumers depend on
everyday, despite economic instability.
(1)The Standard & Poor's 500 Composite Index (S&P 500) includes 500 widely
traded common stocks and is a commonly used measure of U.S. stock market
performance. The Russell 2000 Growth Index includes 2,000 small company
stocks and is a commonly used measure of small stock performance. The indices
are unmanaged and do not take sales charges into consideration. Direct
investment in the indices is not possible; results are for illustrative
purposes only.
(2)+10.02% for Class B shares; +10.69% for Class C shares; +10.09% for Class
D shares.
(3)All returns represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment made in
the Trust will fluctuate and shares, when redeemed, may be worth more or less
than their original cost. All returns assume reinvestment of capital gain
distributions and income dividends. Performance for a class includes periods
prior to the adoption of class designations. During the periods prior to 1990
that shares of the Trust were not offered to the general public, the Trust
was not subject to the cash inflows and higher redemptions and expenses that
have occurred during the Trust's current, continuous public offering. "C"
shares, offered without a sales charge, are available only to certain
employee benefit plans and large institutions.
(4)Performance prior to class designations in 1993 does not reflect annual
12b-1 fees of .25% for "A" shares and 1% for "B" and "D" shares, which will
reduce subsequent performance. Performance reflects up to maximum 4.5% "A"
share front-end or 5% "B" share or 1% "D" share contingent deferred sales
charges.
(5)Cumulative total returns are not annualized and do not reflect sales
charges which, if reflected, would reduce performance.
Please note that the discussion throughout
this shareholder report is dated as indicated
and because of possible changes in view-
point, data, and transactions, should not be
relied upon as being current thereafter.
SEC Average Annual Compound Rates of Return
(at maximum applicable sales charge(3,4_
10 Years 5 Years 1 Year
- -------- ----------- ----------- -------------
Class A +11.67% +12.44% +19.57%
- -------- --------- --------- -----------
Class B +11.93% +12.73% +19.31%
- -------- --------- --------- -----------
Class C +12.30% +13.72% +25.57%
- -------- --------- --------- -----------
Class D +11.94% +12.99% +23.33%
Cumulative Total Returns
(do not reflect sales charge)(3,5)
10 Years 5 Years 1 Year
- -------- ----------- ----------- -------------
Class A +215.65% +88.23% +25.20%
- -------- --------- --------- -----------
Class B +208.60% +84.02% +24.31%
- -------- --------- --------- -----------
Class C +218.88% +90.15% +25.57%
- -------- --------- --------- -----------
Class D +208.89% +84.19% +24.33%
Top 10 Stock Positions
(by percentage of net assets)
1 Shell Transport &
Trading Leading global oil firm 3.1%
2 Monsanto Chemical company 3.0%
3 Philip Morris Tobacco company 2.9%
4 Electrical equipment
General Electric leader 2.8%
5 Producer of networking
Cisco Systems products/services 2.6%
6 Home Depot National retailer 2.5%
7 Global snack and
PepsiCo beverage company 2.4%
8 New York-based national
Chase Manhattan bank 2.4%
9 Leading oil service
Schlumberger equipment provider 2.3%
10 California-based
BankAmerica national bank 2.1%
These securities represent an aggregate of 26.1% of the portfolio. Because of
active management, there is no guarantee that the Trust currently invests, or
will continue to invest, in the securities or industries listed.
- ---------------------------------[Bar Chart]---------------------------------
Top 5 Industries
(by percentage of net assets)
Chemical 8.7%
Computer Software & service 7.8%
Retail 7.8%
Oil 5.8%
Hospital supply 5.3%
Total: 35.4%
-----------------------------------------------------------------------------
<PAGE>
Investment Portfolio
June 30, 1996 (Unaudited)
Value
Shares (Note 1)
- ------------------------------------------------- -------- -------------
COMMON STOCKS 95.5%
Basic Industries 16.1%
Chemical 8.7%
Ciba-Geigy AG ADR 381,000 $23,191,470
E.I. du Pont de Nemours & Co. 308,600 24,417,975
Monsanto Co. 1,126,000 36,595,000
Rohm & Haas Co. 370,000 23,217,500
-----------
107,421,945
-----------
Electrical Equipment 2.8%
General Electric Co. 400,000 34,600,000
-----------
Machinery 1.9%
Case Corp. 286,800 13,766,400
Pall Corp. 390,500 9,420,813
-----------
23,187,213
-----------
Metal & Mining 2.7%
Aluminum Co. of America 358,300 20,557,463
Nucor Corp. 259,500 13,137,187
-----------
33,694,650
-----------
Total Basic Industries 198,903,808
-----------
Consumer Cyclical 18.0%
Automotive 4.1%
Ford Motor Co. 672,200 21,762,475
General Motors Corp. 413,500 21,657,062
Magna International, Inc. Cl. A 169,000 7,774,000
-----------
51,193,537
-----------
Building 1.0%
Owens-Corning Fiberglas Corp. 294,800 12,676,400
-----------
Hotel & Restaurant 2.0%
Mirage Resorts, Inc.* 461,450 24,918,300
-----------
Recreation 3.5%
Comcast Corp. Cl. A Special 467,650 8,651,525
Walt Disney Co. 278,632 17,518,987
Mattel, Inc. 596,640 17,078,820
-----------
43,249,332
-----------
Retail Trade 7.4%
Gucci Group NV* 268,900 17,344,050
Home Depot, Inc. 579,800 31,309,200
Kroger Co.* 351,200 13,872,400
J.C. Penney, Inc. 309,800 16,264,500
Wal-Mart Stores, Inc. 500,600 12,702,725
-----------
91,492,875
-----------
Total Consumer Cyclical 223,530,444
-----------
Consumer Staple 20.5%
Business Service 2.0%
Interpublic Group of Companies, Inc. 520,200 $24,384,375
-----------
Drug 3.1%
American Home Products Corp. 346,000 20,803,250
Eli Lilly & Co. 264,956 17,222,140
-----------
38,025,390
-----------
Food & Beverage 4.4%
Anheuser-Busch, Inc. 320,900 24,067,500
PepsiCo, Inc. 854,000 30,210,250
-----------
54,277,750
-----------
Hospital Supply 5.3%
Baxter International, Inc. 500,000 23,625,000
Columbia/HCA Healthcare Corp.* 270,900 14,459,288
Johnson & Johnson 243,600 12,058,200
United Healthcare Corp. 317,200 16,018,600
-----------
66,161,088
-----------
Personal Care 2.8%
Gillette Co. 231,800 14,458,525
Procter & Gamble Co. 231,500 20,979,687
-----------
35,438,212
-----------
Tobacco 2.9%
Philip Morris Companies, Inc. 344,800 35,859,200
-----------
Total Consumer Staple 254,146,015
-----------
Energy 8.6%
Oil 5.8%
Exxon Corp. 149,400 12,979,125
Shell Transport & Trading PLC 430,000 37,840,000
Total Cl. B ADR 550,934 20,453,425
-----------
71,272,550
-----------
Oil Service 2.8%
Halliburton Co. 121,300 6,732,150
Schlumberger Ltd. 337,012 28,393,261
-----------
35,125,411
-----------
Total Energy 106,397,961
-----------
Finance 9.1%
Bank 4.5%
BankAmerica Corp. 349,900 26,504,925
Chase Manhattan Corp.* 417,500 29,485,937
-----------
55,990,862
-----------
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Investment Portfolio (cont'd)
Financial Service 1.6%
Federal National Mortgage Association 579,400 $19,409,900
-----------
Insurance 3.0%
Ace Ltd. 210,000 9,870,000
American General Corp. 423,642 15,409,978
Travelers Group, Inc. 276,450 12,613,031
-----------
37,893,009
-----------
Total Finance 113,293,771
-----------
Science & Technology 19.1%
Aerospace 2.9%
Boeing Co. 213,700 18,618,612
Raytheon Co. 330,000 17,036,250
-----------
35,654,862
-----------
Computer Software & Service 7.8%
Cisco Systems, Inc.* 570,000 32,276,250
Electronic Data Systems Corp. 390,900 21,010,875
First Data Corp. 244,475 19,466,322
Microsoft Corp.* 200,000 24,025,000
-----------
96,778,447
-----------
Electronic Equipment 3.9%
L.M. Ericsson Telephone Co. Cl. B ADR* 952,840 20,486,060
Lucent Technologies, Inc.* 348,600 13,203,225
Perkin-Elmer Corp. 315,600 15,227,700
-----------
48,916,985
-----------
Office Equipment 4.5%
Diebold, Inc. 380,700 18,368,775
Hewlett-Packard Co. 212,000 21,120,500
International Business Machines Corp. 157,700 15,612,300
-----------
55,101,575
-----------
Total Science & Technology 236,451,869
-----------
Utility 4.1%
Electric 0.9%
FPL Group, Inc. 252,000 11,592,000
-----------
Telephone 3.2%
AT&T Corp. 349,150 21,647,300
AirTouch Communications, Inc.* 642,400 18,147,800
-----------
39,795,100
-----------
Total Utility 51,387,100
-----------
Total Common Stocks (Cost $792,721,771) 1,184,110,968
-----------
Principal Maturity Value
Amount Date (Note 1)
- ------------------------------ ---------- --------- -------------
CONVERTIBLE BONDS 1.7%
Equitable Company, Inc. Cv.
Sub. Deb., 6.125% $13,500,000 12/15/2024 $15,423,750
Price Co. Cv. Sub. Deb., 5.50% 5,060,000 2/28/2012 5,262,400
-----------
Total Convertible Bonds (Cost $18,760,422) 20,686,150
-----------
COMMERCIAL PAPER 3.6%
American Express Credit Corp.,
5.28% 1,102,000 7/01/1996 1,102,000
American Express Credit Corp.,
5.27% 5,044,000 7/01/1996 5,044,000
American Express Credit Corp.,
5.33% 10,191,000 7/03/1996 10,191,000
American Express Credit Corp.,
5.37% 2,490,000 7/08/1996 2,490,000
Chevron Oil Finance Co., 5.35% 10,000,000 7/02/1996 10,000,000
Ford Motor Credit Co., 5.31% 7,895,000 7/01/1996 7,895,000
General Electric Capital
Corp., 5.37% 8,264,000 7/02/1996 8,264,000
-----------
Total Commercial Paper (Cost $44,986,000) 44,986,000
-----------
Total Investments (Cost $856,468,193)--100.8% 1,249,783,118
Cash and Other Assets, Less Liabilities--(0.8)% (10,417,704)
-----------
Net Assets--100.0% $1,239,365,414
===========
Federal Income Tax Information:
At June 30, 1996, the net unrealized appreciation of
investments based on cost for Federal income tax
purposes of $853,279,478 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value over
tax cost $404,176,522
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value (7,672,882)
-----------
$396,503,640
===========
* Nonincome-producing securities.
ADR stands for American Depositary Receipt, representing ownership of
foreign securities.
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Statement of Assets and Liabilities
June 30, 1996 (Unaudited)
Assets
Investments, at value (Cost $856,468,193) (Note 1) $1,249,783,118
Cash 375
Dividends and interest receivable 1,468,911
Receivable for securities sold 1,292,060
Receivable for fund shares sold 1,139,817
Other assets 97,106
-----------
1,253,781,387
Liabilities
Payable for securities purchased 10,849,503
Dividends payable 1,492,967
Accrued management fee (Note 2) 929,778
Payable for fund shares redeemed 484,257
Accrued transfer agent and shareholder services
(Note 2) 264,715
Accrued distribution and service fees (Note 4) 240,799
Accrued trustees' fees (Note 2) 7,995
Other accrued expenses 145,959
-----------
14,415,973
-----------
Net Assets $1,239,365,414
===========
Net Assets consist of:
Undistributed net investment income $2,864,664
Unrealized appreciation of investments 393,314,925
Accumulated net realized gains 135,222,384
Shares of beneficial interest 707,963,441
-----------
$1,239,365,414
===========
Net Asset Value and redemption price per share of
Class A shares ($180,044,621 / 17,872,179 shares of
beneficial interest) $10.07
======
Maximum Offering Price per share of Class A shares
($10.07 / .955) $10.54
======
Net Asset Value and offering price per share of
Class B shares ($245,309,804 / 24,449,557 shares of
beneficial interest)* $10.03
======
Net Asset Value, offering price and redemption price
per share of Class C shares ($792,432,402 /
78,456,103 shares of beneficial interest) $10.10
======
Net Asset Value and offering price per share of
Class D shares ($21,578,587 / 2,145,652 shares
of beneficial interest)* $10.06
======
* Redemption price per share for Class B and Class D is equal to net asset
value less any applicable contingent deferred sales charge.
Statement of Operations
For the six months ended June 30, 1996 (Unaudited)
Investment Income
Dividends, net of foreign taxes of $280,859 $10,270,890
Interest 1,538,199
-----------
11,809,089
Expenses
Management fee (Note 2) 1,814,342
Transfer agent and shareholder services (Note 2) 711,848
Custodian fee 101,416
Reports to shareholders 97,366
Service fee--Class A (Note 4) 195,424
Distribution and service fees--Class B (Note 4) 1,053,476
Distribution and service fees--Class D (Note 4) 95,079
Registration fees 89,234
Trustees' fees (Note 2) 14,336
Audit fee 13,621
Legal fees 723
Miscellaneous 30,304
-----------
4,217,169
-----------
Net investment income 7,591,920
-----------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain on investments (Notes 1 and 3) 135,227,020
Net unrealized depreciation of investments (28,188,407)
-----------
Net gain on investments 107,038,613
-----------
Net increase in net assets resulting from
operations $114,630,533
===========
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six months
ended
June 30, Year ended
1996 December 31,
(Unaudited) 1995
- ----------------------------- ------------ ----------------
Increase (Decrease) in Net Assets
Operations:
Net investment income $7,591,920 $15,680,523
Net realized gain on
investments* 135,227,020 107,441,660
Net unrealized appreciation
(depreciation) of
investments (28,188,407) 151,473,174
---------- --------------
Net increase resulting from
operations 114,630,533 274,595,357
---------- --------------
Dividends from net investment
income:
Class A (801,808) (1,619,460)
Class B (347,094) (1,064,520)
Class C (4,740,113) (11,601,780)
Class D (45,885) (97,145)
---------- --------------
(5,934,900) (14,382,905)
---------- --------------
Distribution from net
realized gains:
Class A -- (13,126,874)
Class B -- (17,847,503)
Class C -- (74,984,305)
Class D -- (1,639,766)
---------- --------------
-- (107,598,448)
---------- --------------
Net increase from fund share
transactions (Note 5) 56,057,217 77,302,381
---------- --------------
Total increase in net assets 164,752,850 229,916,385
Net Assets
Beginning of period 1,074,612,564 844,696,179
---------- --------------
End of period (including
undistributed net
investment income of
$2,864,664 and $1,207,644,
respectively) $1,239,365,414 $1,074,612,564
========== ==============
* Net realized gain for
Federal income tax purposes
(Note 1) $135,369,089 $107,598,448
========== ==============
Notes to Unaudited Financial Statements
June 30, 1996
Note 1
State Street Research Investment Trust (the "Trust"), is a series of State
Street Research Master Investment Trust (the "Master Trust"), which is a
Massachusetts business trust registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Trust was
organized in February, 1989 as a successor to State Street Investment
Corporation, a Massachusetts corporation. The Trust is presently the only
series of the Master Trust.
The investment objective of the Trust is to provide long-term growth of
capital and, secondarily, long-term growth of income. In seeking to achieve
its investment objective, the Trust invests primarily in common stocks, or
securities convertible into common stocks, that have long-term growth
potential.
The Trust offers four classes of shares. Class A shares are subject to an
initial sales charge of up to 4.50% and pay a service fee equal to 0.25% of
average daily net assets. Class B shares are subject to a contingent deferred
sales charge on certain redemptions made within five years of purchase and
pay annual distribution and service fees of 1.00%. Class B shares
automatically convert into Class A shares (which pay lower ongoing expenses)
at the end of eight years after the issuance of the Class B shares. Class C
shares are only offered to certain employee benefit plans and large
institutions. No sales charge is imposed at the time of purchase or
redemption of Class C shares. Class C shares do not pay any distribution or
service fees. Class D shares are subject to a contingent deferred sales
charge of 1.00% on any shares redeemed within one year of their purchase.
Class D shares also pay annual distribution and service fees of 1.00%. The
Trust'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 Trust in preparing its financial statements, and such policies are in
conformity with generally accepted accounting principles for investment
companies.
A. Investments in Securities
Values for listed securities represent the last sale on national securities
exchanges quoted prior to the close of the New York Stock Exchange.
Over-the-counter securities quoted on the National Association of Securities
Dealers Automated Quotation ("NASDAQ") system are valued at the closing price
supplied through such system. In the absence of recorded sales and for those
over-the-counter securities not quoted on the NASDAQ system, valuations are
at the mean of the closing bid and asked quotations, except for securities
that may be restricted as to public resale, which are valued in accordance
with methods adopted by the Trustees. Security transactions are accounted for
on the trade date (date the order to buy or sell is executed), and dividends
declared but not received are accrued on the ex-dividend date. Interest
income is determined on the accrual basis. Realized gains and losses from
security transactions are reported on the basis of identified cost of
securities delivered.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
B. Federal Income Taxes
No provision for Federal income taxes is necessary since the Trust has
elected to qualify under Subchapter M of the Internal Revenue Code and its
policy to distribute all of its taxable income, including net realized
capital gains, within the prescribed time periods. It is also the intention
of the Trust to distribute an amount sufficient to avoid imposition of any
Federal Excise Tax under Section 4982 of the Internal Revenue Code.
C. Dividends
Dividends from net investment income are declared and paid or reinvested
quarterly. Net realized capital gains are distributed annually.
Income dividends and capital gain distributions are determined in accordance
with Federal income tax regulations which may differ from generally accepted
accounting principles. The difference is due to the disposition of securities
that have different bases for financial reporting and tax purposes.
D. 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 State Street Research & Management Company (the "Adviser"), an
indirect wholly owned subsidiary of Metropolitan Life Insurance Company
("Metropolitan"), have entered into a contract under which the Adviser
receives a quarterly fee equal to 1/8 of one percent of the average market
value of the net assets up to and including $200,000,000, 3/32 of one percent
of the average net assets in excess of $200,000,000 up to and including
$300,000,000, 3/40 of one percent of the average net assets in excess of
$300,000,000 up to and including $500,000,000, and 1/16 of one percent of the
average net assets in excess of $500,000,000. In consideration of these fees,
the Adviser furnishes the Trust with management, investment advisory,
statistical and research facilities and services. The Adviser also pays all
salaries, rent and certain other expenses of management. The fees of the
Trustees not currently affiliated with the Adviser amounted to $14,336 during
the six months ended June 30, 1996.
State Street Research Shareholder Services, 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 Trust such as responding to inquiries and
instructions from investors with respect to the purchase and redemption of
shares of the Trust. 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 Trust may be purchased. During the six months
ended June 30, 1996, the amount of such shareholder servicing and account
maintenance expenses was $198,551.
Note 3
For the six months ended June 30, 1996, exclusive of short-term investments
and U.S. Government obligations, purchases and sales of securities aggregated
$373,106,063 and $333,164,663, respectively.
Note 4
The Trust has adopted a Plan of Distribution Pursuant to Rule 12b-1 (the
"Plan") under the Investment Company Act of 1940, as amended. Under the Plan,
the Trust pays annual service fees to the Distributor at a rate of 0.25% of
average daily net assets for Class A, Class B and Class D shares. In
addition, the Trust pays annual distribution fees of 0.75% of average daily
net assets for Class B and Class D 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 six months ended June 30,
1996, fees pursuant to such plan amounted to $195,424, $1,053,476 and $95,079
for Class A, Class B and Class D, respectively.
The Trust has been informed that the Distributor and MetLife Securities,
Inc., a wholly owned subsidiary of Metropolitan, earned initial sales charges
aggregating $152,778 and $938,712, respectively, on sales of Class A shares
of the Trust during the six months ended June 30, 1996, and that MetLife
Securities, Inc. earned commissions aggregating $1,440,630 on sales of Class
B shares, and that the Distributor collected contingent deferred sales
charges of $128,870 and $1,512 on redemptions of Class B and Class D shares,
respectively, during the same period.
6
<PAGE>
Note 5
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest, $.001 par value per share.
At June 30, 1996, the Adviser owned one share of each of Class A, Class B and
Class D of the Trust.
Share transactions were as follows:
Six months ended
June 30, 1996 Year ended
(Unaudited) December 31, 1995
-------------------------- ---------------------------
Class A Shares Amount Shares Amount
---------------- ---------- ------------ ---------- -------------
Shares sold 4,371,517 $42,517,642 4,201,602 $38,277,703
Issued upon
reinvestment
of:
Distribution
from net
realized gains -- -- 1,381,863 12,657,868
Dividends from
net investment
income 78,137 738,800 137,038 1,344,573
Shares redeemed (1,390,912) (13,478,140) (2,806,953) (24,998,577)
-------- ---------- -------- -----------
Net increase 3,058,742 $29,778,302 2,913,550 $27,281,567
======== ========== ======== ===========
Class B Shares Amount Shares Amount
---------------- -------- ---------- -------- -----------
Shares sold 5,640,489 $54,727,820 5,971,626 $54,108,058
Issued upon
reinvestment
of:
Distribution
from net
realized gains -- -- 1,883,350 17,194,984
Dividends from
net investment
income 33,022 309,160 95,588 906,920
Shares redeemed (1,325,387) (12,689,443) (2,523,352) (22,537,142)
-------- ---------- -------- -----------
Net increase 4,348,124 $42,347,537 5,427,212 $49,672,820
======== ========== ======== ===========
Class C Shares Amount Shares Amount
---------------- -------- ---------- -------- -----------
Shares sold 884,641 $8,534,448 1,267,679 $11,473,904
Issued upon
reinvestment
of:
Distribution
from net
realized gains -- -- 4,060,874 37,278,822
Dividends from
net investment
income 183,783 1,827,077 701,086 6,244,388
Shares redeemed (3,048,870) (29,398,594) (6,464,579) (57,645,171)
-------- ---------- -------- -----------
Net decrease (1,980,446) $(19,037,069) (434,940) $(2,648,057)
======== ========== ======== ===========
Class D Shares Amount Shares Amount
---------------- -------- ---------- -------- -----------
Shares sold 474,669 $4,604,955 500,160 $4,432,731
Issued upon
reinvestment
of:
Distribution
from net
realized gains -- -- 168,699 1,543,548
Dividends from
net investment
income 4,067 39,053 8,708 81,712
Shares redeemed (173,683) (1,675,561) (349,866) (3,061,940)
-------- ---------- -------- -----------
Net increase 305,053 $2,968,447 327,701 $2,996,051
======== ========== ======== ===========
7
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A
-----------------------------------------------
Year ended December 31
-------------------------------
Six months
ended
June 30,
1996
(Unaudited)*** 1995*** 1994 1993*
-------------------- ------------ ------- ------- ---------
Net asset value,
beginning of
period $9.16 $7.74 $8.69 $8.75
Net investment
income .06 .14 .11 .10
Net realized and
unrealized gain
(loss) on
investments .90 2.39 (.44) .81
Dividends from net
investment income (.05) (.13) (.12) (.13)
Distributions from
net realized gains -- (.98) (.50) (.84)
---------- ----- ----- -------
Net asset value, end
of period $10.07 $9.16 $7.74 $8.69
========== ===== ===== =======
Total return 10.47%+++ 32.85%+ (3.84)%+ 10.53%+++
Net assets at end of
period (000s) $180,045 $135,676 $92,137 $75,259
Ratio of operating
expenses to
average net assets 0.75%++ 0.78% 0.89% 0.75%++
Ratio of net
investment income
to average net
assets 1.30%++ 1.54% 1.26% 1.27%++
Portfolio turnover
rate 29.49% 39.21% 33.08% 43.57%
Average commission
rate @ $.0510 -- -- --
Class B
----------------------------------------------
Year ended December 31
------------ ------------------------------
Six months
ended
June 30,
1996
(Unaudited)*** 1995*** 1994 1993**
- ------------------------ ------------ ------- ------- --------
Net asset value,
beginning of period $9.13 $7.72 $8.66 $9.15
Net investment income .03 .07 .06 .06
Net realized and
unrealized gain (loss)
on investments .89 2.38 (.44) .39
Dividends from net
investment income (.02) (.06) (.06) (.10)
Distributions from net
realized gains -- (.98) (.50) (.84)
---------- ----- ----- ------
Net asset value, end of
period $10.03 $9.13 $7.72 $8.66
========== ===== ===== ======
Total return 10.02%+++ 31.86%+ (4.43)%+ 4.95%+++
Net assets at end of
period (000s) $245,310 $183,446 $113,301 $73,110
Ratio of operating
expenses to average
net assets 1.50%++ 1.53% 1.64% 1.51%++
Ratio of net investment
income to average net
assets 0.55%++ 0.79% 0.51% 0.48%++
Portfolio turnover rate 29.49% 39.21% 33.08% 43.57%
Average commission
rate @ $.0510 -- -- --
<TABLE>
<CAPTION>
Class C
-----------------------------------------------------------
Year ended December 31
-------------------------------------------
Six months
ended
June 30,
1996
(Unaudited)*** 1995*** 1994 1993 1992 1991
- --------------------- ------------ ----- ----- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning
of period $9.18 $7.76 $8.70 $8.80 $9.04 $7.67
Net investment income .07 .16 .13 .15 .16 .19
Net realized and
unrealized gain
(loss) on
investments .91 2.39 (.43) .74 .40 1.96
Dividends from net
investment income (.06) (.15) (.14) (.15) (.16) (.20)
Distributions from
net realized
gains -- (.98) (.50) (.84) (.64) (.58)
---------- --- --- --- --- -----
Net asset value,
end of period $10.10 $9.18 $7.76 $8.70 $8.80 $9.04
========== === === === === =====
Total return 10.69%+++ 33.07%+ (3.47)%+ 10.20%+ 6.28%+ 28.08%+
Net assets at end
of period (000s) $792,432 $738,649 $627,551 $729,536 $726,671 $657,762
Ratio of operating
expenses to
average
net assets 0.50%++ 0.54% 0.65% 0.49% 0.51% 0.50%
Ratio of net
investment income
to average net
assets 1.55%++ 1.81% 1.54% 1.63% 1.92% 2.24%
Portfolio turnover
rate 29.49% 39.21% 33.08% 43.57% 23.99% 16.28%
Average commission --
rate @ $.0510 -- -- -- --
</TABLE>
Class D
---------------------------------------
Year ended December 31
------------ -----------------------
Six months
ended
June 30,
1996
(Unaudited)*** 1995*** 1994 1993**
- ----------------------------- ------------ ---- ----- ------
Net asset value, beginning
of period $9.15 $7.74 $8.68 $9.15
Net investment income .03 .07 .05 .06
Net realized and unrealized
gain (loss) on investments .89 2.38 (.43) .40
Dividends from net investment
income (.01) (.06) (.06) (.09)
Distributions from net
realized gains -- (.98) (.50) (.84)
---------- -- --- ----
Net asset value, end of
period $10.06 $9.15 $7.74 $8.68
========== == === ====
Total return 10.09%+++ 31.75%+ (4.45)%+ 5.10%+++
Net assets at end of period
(000s) $21,579 $16,841 $11,707 $9,729
Ratio of operating expenses
to average net assets 1.50%++ 1.53% 1.64% 1.51%++
Ratio of net investment
income to average net
assets 0.55%++ 0.79% 0.51% 0.51%++
Portfolio turnover rate 29.49% 39.21% 33.08% 43.57%
Average commission rate @ $.0510 -- -- --
++ Annualized
* February 17, 1993 (commencement of share class designations) to December
31, 1993.
** March 15, 1993 (commencement of share class designations) to December 31,
1993.
***Per-share figures have been calculated using the average shares method.
+Total return figures do not reflect any front-end or contingent deferred
sales charges.
+++Represents aggregate return for the period without annualization and does
not reflect any front-end or contingent deferred sales charges.
@For fiscal years beginning on or after January 1, 1996, the Fund is
required to disclose its average commission rate per share paid for
security trades.
8
<PAGE>
FUND INFORMATION, OFFICERS AND TRUSTEES OF
STATE STREET RESEARCH MASTER INVESTMENT TRUST
Fund Information
State Street Research
Investment Trust
One Financial Center
Boston, MA 02111
Investment Adviser
State Street Research &
Management Company
One Financial Center
Boston, MA 02111
Distributor
State Street Research
Investment Services, Inc.
One Financial Center
Boston, MA 02111
Shareholder Services
State Street Research
Shareholder Services
P.O. Box 8408
Boston, MA 02266-8408
1-800-562-0032
Custodian
State Street Bank and
Trust Company
225 Franklin Street
Boston, MA 02110
Legal Counsel
Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.
One Financial Center
Boston, MA 02111
Officers
Ralph F. Verni
Chairman of the Board,
President and
Chief Executive Officer
Peter C. Bennett
Vice President
Thomas P. Moore, Jr.
Vice President
Dudley F. Wade
Vice President
James M. Weiss
Vice President
John T. Wilson
Vice President
Gerard P. Maus
Treasurer
Joseph W. Canavan
Assistant Treasurer
Douglas A. Romich
Assistant Treasurer
Francis J. McNamara, III
Secretary and General Counsel
Darman A. Wing
Assistant Secretary and
Assistant General Counsel
Amy L. Simmons
Assistant Secretary
Trustees
Ralph F. Verni
Chairman of the Board,
President, Chief Executive
Officer and Director,
State Street Research &
Management Company
Edward M. Lamont
Formerly in banking
(Morgan Guaranty Trust
Company of New York);
presently engaged in private
investments and civic affairs
Robert A. Lawrence
Partner, Saltonstall & Co.
Dean O. Morton
Retired; formerly Executive
Vice President, Chief
Operating Officer and Director,
Hewlett-Packard Company
Thomas L. Phillips
Retired; formerly Chairman of
the Board and Chief Executive
Officer, Raytheon Company
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
Jeptha H. Wade
Retired; formerly Of Counsel,
Choate, Hall & Stewart
9
<PAGE>
[BACK COVER]
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Boston, MA 02111 U.S. Postage
PAID
Brockton, MA
Permit No. 600
Questions? Comments?
Call us at 1-800-562-0032,
or write us at:
State Street Research
Shareholder Services
P.O. Box 8408
Boston, MA 02266-8408
[LOGO] STATE STREET RESEARCH
This report is prepared for the general information of current shareholders
only. It is not authorized for use as sales material with prospective 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: 3320-960822(0997)SSR-LD SS-751D-896
Cover Illustration by Dorothy Cullinan
