-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QEjpHhOD+CFD09kr7OXKv2+Nd+gnkYkAvq+XxAnMYasef/g368rUomPqn/QH7HUI q8DHjRrW7UclZqRmP4t9rA== 0001145443-03-000898.txt : 20030703 0001145443-03-000898.hdr.sgml : 20030703 20030703114203 ACCESSION NUMBER: 0001145443-03-000898 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030703 EFFECTIVENESS DATE: 20030703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STATE STREET RESEARCH SECURITIES TRUST CENTRAL INDEX KEY: 0000918572 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08322 FILM NUMBER: 03774262 BUSINESS ADDRESS: STREET 1: ONE FINANCIAL CENTER CITY: BOSTON STATE: MA ZIP: 02111 BUSINESS PHONE: 6173571340 MAIL ADDRESS: STREET 1: ONE FINANCIAL CENTER CITY: BOSTON STATE: MA ZIP: 02111 N-CSR 1 d12866.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-8322 ---------------------------------------------- State Street Research Securities Trust ------------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Financial Center, Boston, MA 02111 ------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Francis J. McNamara, III, Secretary State Street Research One Financial Center, Boston, MA 02110 ------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 617-357-1200 ------------------ Date of fiscal year end: 10/31/03 ----------------- Date of reporting period: 11/01/02 - 04/30/03 ---------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. ITEM 1 (REPORT TO SHAREHOLDERS): The Semiannual Report is attached. FORM N-CSR(2 OF 3) ITEM 2 (CODE OF ETHICS): Not applicable to this filing. ITEM 3 (AUDIT COMMITTEE FINANCIAL EXPERT): Not applicable to this filing. ITEM 4 (PRINCIPAL ACCOUNTANT FEES AND SERVICES): Not applicable to this filing. ITEM 5 (RESERVED) ITEM 6 (RESERVED) ITEM 7 (DISCLOSURE OF PROXY VOTING POLICIES & PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES): Not applicable to this filing. ITEM 8 (RESERVED) ITEM 9 (CONTROLS AND PROCEDURES): SUB-ITEM 9a - The Principal Executive Officer and the Principal Financial Officer have concluded that the State Street Research Securities Trust disclosure controls and procedures (as defined in Rule 30-a2(c) under the Investment Company Act) provide reasonable assurances that material information relating to the State Street Research Securities Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. SUB-ITEM 9b - There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation referenced in (a)(i) above. ITEM 10 (EXHIBITS): SUB-ITEM 10a - Not applicable to this filing. SUB-ITEM 10b - Certification Exhibits are attached. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. State Street Research Securities Trust By: /s/ Richard S. Davis --------------------------------------------------------- Richard S. Davis, President, Chairman and Chief Executive Officer Date June 25, 2003 --------------------------------------------------------- FORM N-CSR(3 OF 3) Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities, and on the dates indicated. By: /s/ Richard S. Davis --------------------------------------------------------- Richard S. Davis, President, Chairman and Chief Executive Officer Principal Executive Officer Date June 25, 2003 ------------------------ By: /s/ Douglas A. Romich --------------------------------------------------------- Douglas A. Romich, Treasurer Principal Financial Officer Date June 25, 2003 ------------------------ [LOGO] STATE STREET RESEARCH Legacy Fund [GRAPHIC] - -------------------------------------------------------------------------------- Semiannual Report to Shareholders April 30, 2003 In This Report Investment Update [PHOTO] plus A Review of Fund Performance Key Facts and Financial Statements 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 From the Chairman Better Times for the U.S. financial markets has raised hopes that the darkest period for American investors in more than 30 years is coming to an end. Almost every major U.S. stock and bond market index reported a gain for the six-month period ended April 30, 2003, despite uncertainty about the U.S. economy and the outbreak of war with Iraq. In the final month of the period, the economy also gave signs of stabilizing as pockets of improvement emerged in the manufacturing sector. [Photo of Richard S. Davis] Richard S. Davis In the report that follows, your portfolio managers talk in greater detail about the fund's performance and management during the period. We hope that you will discuss any questions you have about the fund with your financial advisor. As always, thank you for investing with State Street Research. Sincerely, /s/ Richard S. Davis Richard S. Davis Chairman April 30, 2003 [GRAPHIC] 6-Month Review How State Street Research Legacy Fund Performed In a generally volatile period for stocks, State Street Research Legacy Fund returned 1.61% for the six months ended April 30, 2003.(1) That was less than the Russell 1000(R) Growth Index, which gained 4.28% for the period.(2) Reasons for the Fund's Performance Poor stock selection in some of the fund's most heavily weighted sectors was the primary reason the fund underperformed its benchmark. In the Consumer Discretionary sector, Home Depot was a disappointment. In Utilities, SBC Communications lagged. Our underweight in the strong-performing Technology sector also detracted from results. Performance was helped by our stock selection in the Health Care sector as a number of our biotechnology and pharmaceutical holdings outperformed. Amgen was the best-performing stock in the index, as the company's first earnings quarter exceeded its earlier estimates. Our investment in Varian Medical Systems, the market leader in radiation therapy, was also a strong performer. Looking Ahead We continue to emphasize the Energy sector. Demand continues to outstretch supply in both natural gas and oil, which has strengthened the business prospects of many energy-related companies. Conversely, we have reduced our exposure to the Consumer Discretionary sector, where many companies continue to struggle to increase revenues while managing inventories and expenses.We have also backed away from the Financial Services sector because of downward earnings revisions. Because financial markets and mutual fund strategies are constantly evolving, it is 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. Class A Shares(1) 1.61% [UP ARROW] "We continue to favor energy stocks for their long-term growth potential." [Photos of Jeff Lindsey & Ed Dowd] Jeff Lindsey & Ed Dowd Co-Portfolio Managers, State Street Research Legacy Fund Russell 1000 Growth Index(2) 4.28% [UP ARROW] 2 State Street Research Legacy Fund The Fund at a Glance as of 4/30/03 State Street Research Legacy Fund has a tax-managed approach to investing in stocks for long-term growth. Hits & Misses [GRAPHIC] Comcast Cable television operator Comcast exceeded our expectations, boosted by its merger with AT&T Broadband and profits from its cable modem technology. [GRAPHIC] Pfizer Although Pfizer's cholesterol drug Lipitor was the top-selling pharmaceutical worldwide, investors expressed concern over generally weak sales in the industry. We continue to hold Pfizer as it is the market leader in sales. Total Net Assets: $306 million - -------------------------------------------------------------------------------- Top 10 Holdings Issuer/Security % of fund net assets 1 Microsoft 5.3% 2 General Electric 5.2% 3 Pfizer 4.9% 4 IBM 3.5% 5 Intel 3.3% 6 Procter & Gamble 3.2% 7 Wyeth 2.9% 8 Citigroup 2.8% 9 Amgen 2.7% 10 Johnson & Johnson 2.6% Total 36.4% See page 7 for more detail. Performance: Class A Fund average annual total return as of 4/30/03 (3),(5),(6) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) - -------------------------------------------------------------------------------- Return Before Taxes -14.81% -2.78% 0.23% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -14.81% -2.79% 0.23% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.24% -2.20% 0.19% - -------------------------------------------------------------------------------- Fund average annual total return as of 3/31/03 (3),(4),(5),(6) (at maximum applicable sales charge) Life of Fund 1 Year 5 Years (12/31/97) - -------------------------------------------------------------------------------- Return Before Taxes -29.46% -4.89% -2.15% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -29.46% -4.89% -2.15% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -18.38% -3.83% -1.71% - -------------------------------------------------------------------------------- See pages 17 and 18 for remaining share classes. Top 5 Industries - -------------------------------------------------------------------------------- by % of fund net assets [THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL] April 30, 2003 Drugs & Biotechnology 18.9% - ------------------------------------------------------ Computer Software 8.4% - ------------------------------------------------------ Miscellaneous Financial 8.2% - ------------------------------------------------------ Retail 5.6% - ------------------------------------------------------ Electronics: Semiconductors/ Components 5.4% - ------------------------------------------------------ [THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL] October 31, 2002 Drugs & Biotechnology 13.8% - ------------------------------------------------------ Miscellaneous Financial 13.5% - ------------------------------------------------------ Retail 11.4% - ------------------------------------------------------ Oil: Integrated International 5.7% - ------------------------------------------------------ Computer Software 4.8% - ------------------------------------------------------ Ticker Symbols - -------------------------------------------------------------------------------- State Street Research Legacy Fund Class A: SRLAX Class B(1): SRLPX Class B: SRLBX Class C: SRLCX Class R: SRLRX Class S: SRLSX 1 Does not reflect sales charge. 2 The Russell 1000 Growth Index contains only those stocks within the complete Russell 1000(R) Index (a large-company index) that show above-average growth. The index is unmanaged and does not take transaction charges into consideration. It is not possible to invest directly in the index. 3 Keep in mind that past performance is no guarantee of future results. The fund's share price, yield and return will fluctuate, and you may have a gain or loss when you sell your shares. All returns assume reinvestment of capital gains distributions and income dividends at net asset value. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4 Performance reflects a maximum 5.75% Class A front-end sales charge. 5 After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Return After Taxes on Distributions and Sale of Fund Shares for a period may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of fund shares. 6 Performance results for the fund are increased by the voluntary reduction of fund fees and expenses; without subsidization, performance would have been lower. 3 [GRAPHIC] The Fund in Detail - -------------------------------------------------------------------------------- CHANGE IN INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP resigned as the Fund's independent accountants as of April 25, 2003. The Trustees voted to appoint Deloitte & Touche LLP as the Fund's independent accountants for the fund's fiscal year ended April 30, 2003. During the two previous years, PricewaterhouseCoopers LLP's audited reports contained no adverse opinion or disclaimer of opinion; nor were its reports qualified or modified as to uncertainty, audit scope, or accounting principle. Further, in connection with its audits for the two previous fiscal years and through April 25, 2003, there were no disagreements between the Fund and PricewaterhouseCoopers LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would have caused it to make reference to the disagreements in its report on the financial statements to such years. - -------------------------------------------------------------------------------- [GRAPHIC] 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. 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. 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 16 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, refer to 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 obtain 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 Legacy Fund About the Fund - -------------------------------------------------------------------------------- Business Structure State Street Research Legacy Fund is a mutual fund that allows shareholders to pool their assets for investment in a portfolio of securities. This fund is a series of State Street Research Securities 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 oversees the fund with its shareholders' interests in mind and has ultimate responsibility for the fund's activities. 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. ("MetLife"). 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 firms' employee benefit plans and other sponsored arrangements. Goal and Strategy The fund seeks to provide long-term growth of capital. In seeking to achieve its investment objective, the fund invests at least 65% of total assets in stocks and convertible securities of mid- and large-size companies. The fund employs a tax-managed strategy, generally seeking to identify stocks with long-term growth potential and holding them for extended periods. Share Classes The fund generally offers five 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% and pay annual service and distribution fees equal to 0.30% of average daily net assets. Class B(1) shares pay annual service and distribution fees of 1.00%. The annual service and distribution fees paid by Class B shares are currently voluntarily reduced to 0.00%. Class B(1) and Class B shares automatically convert into Class A shares (which pay lower ongoing expenses) 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 service and distribution 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 service or distribution fees. Class R shares are offered to retirement plans participating in certain platforms sponsored by broker-dealers, which may involve multiple fund families. Class R shares pay annual service and distribution fees of 0.50%. The text and notes are an integral part of the financial statements. 5 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, then 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 sixty 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. Investment income and realized and unrealized gains and losses are allocated pro rata on the basis of relative net assets by the holders of all classes of shares. Net investment income is determined daily and consists of interest and dividends earned, less the estimated daily expenses of the fund. The fund may seek additional income by lending portfolio securities to qualified institutions. The fund will receive cash or securities as collateral in an 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. Investments in the State Street Navigator Securities Lending Prime Portfolio are valued at its closing net asset value per share on the day of valuation. 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 accounting principles generally accepted in the United States of America.The difference is primarily due to differing treatments for wash sale deferrals.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. If the fund has no earnings to distribute, it won't make a distribution. The fund has elected to be taxed under Subchapter M of the Internal Revenue Code. As such, the fund does not intend to pay federal income taxes, in part because it makes distributions as described above. The fund pays expenses as follows: o Expenses attributed to the fund The fund pays these directly. Examples of these expenses include the management fee, transfer agent fee, custodian fee and distribution and service fees. o Expenses attributed to the trust of which the fund is a series - These expenses are divided up among all funds in the trust. Each fund pays a proportional share. Examples of these expenses include the legal fees and trustees' fees. The fund has used certain estimates and assumptions in preparing this report. Although they are necessary in order to follow accounting principles generally accepted in the United States of America, 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 these estimates. On February 21, 2003, the Fund acquired the assets and liabilities of State Street Research Large-Cap Growth Fund ("Large-Cap Growth Fund") in exchange for shares of each class of the Fund. The acquisition was accounted for as a tax-free exchange of 1,381,114 Class A shares, 1,052,996 Class B(1) shares, 1,177,017 Class B shares, 189,286 Class C shares and 5,164,031 Class S shares of the Fund for the net assets of Large-Cap Growth Fund which amounted to $12,873,626, $9,449,657, $10,711,357, $1,699,127 and $49,094,754 for Class A, Class B(1), Class B, Class C and Class S shares, respectively. The net assets of Large-Cap Growth Fund included $2,667,330 of unrealized appreciation at the close of business on February 21, 2003. The net assets of the Fund immediately after the acquisition were $289,204,119. The text and notes are an integral part of the financial statements. 6 State Street Research Legacy Fund Portfolio Holdings - -------------------------------------------------------------------------------- April 30, 2003 (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 subgroups 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 black 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. @ 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. - -------------------------------------------------------------------------------- Issuer Shares Value - -------------------------------------------------------------------------------- Common Stocks 98.9% of net assets Automobiles & Transportation 0.8% of net assets ================================================================================ Air Transport 0.8% Expeditors International of Washington Inc. 64,400 $2,341,520 ----------- Total Automobiles & Transportation 2,341,520 ----------- Consumer Discretionary 16.2% of net assets ================================================================================ Casinos/Gambling, Hotel/Motel 0.7% International Game Technology Inc.* 24,900 2,148,870 ----------- Commercial Services 2.5% Expedia Inc. Cl. A* 99,700 5,761,663 Manpower Inc. 60,800 1,999,104 ----------- 7,760,767 ----------- Communications, Media & Entertainment 1.2% Univision Communications Inc. Cl. A* 116,100 3,515,508 ----------- Consumer Electronics 1.3% Yahoo!, Inc.* 156,800 3,885,504 ----------- Consumer Products 1.9% Avon Products Inc. 100,100 5,822,817 ----------- Consumer Services 0.2% Career Education Corp.* 8,800 529,144 ----------- Printing & Publishing 1.8% News Corp. Ltd.@ 197,200 5,576,816 ----------- Restaurants 0.6% Starbucks Corp.* 82,500 1,937,925 ----------- Retail 5.6% Best Buy Company Inc.* 54,800 1,894,984 CDW Computer Centers Inc.* 31,780 1,355,099 GAP Inc. 63,200 1,051,016 Kohl's Corp.* 40,550 2,303,240 Lowes Companies Inc. 53,000 2,326,170 USA Interactive* 32,280 966,786 Wal-Mart Stores Inc. 130,400 7,344,128 ----------- 17,241,423 ----------- Textile Apparel Manufacturers 0.4% Coach Inc.* 28,200 1,226,982 ----------- Total Consumer Discretionary 49,645,756 ----------- The text and notes are an integral part of the financial statements. 7 Portfolio Holdings (continued) - -------------------------------------------------------------------------------- April 30, 2003 Issuer Shares Value ---------------------------------------------------------------------------- Consumer Staples 8.0% of net assets ============================================================================ Beverages 3.1% Coca-Cola Co. 149,000 $6,019,600 PepsiCo Inc. 76,900 3,328,232 ----------- 9,347,832 ----------- Drug & Grocery Store Chains 0.8% Whole Foods Market Inc.* 43,400 2,576,224 ----------- Household Products 4.1% Clorox Co. 64,400 2,912,168 (6)Procter & Gamble Co. 107,800 9,685,830 ----------- 12,597,998 ----------- Total Consumer Staples 24,522,054 ----------- Financial Services 11.0% of net assets ============================================================================ Banks & Savings & Loan 0.3% Wells Fargo & Co. 19,000 916,940 ----------- Insurance 2.5% American International Group Inc. 65,200 3,778,340 XL Capital Ltd. 47,600 3,917,480 ----------- 7,695,820 ----------- Miscellaneous Financial 8.2% American Express Co. 171,850 6,506,241 (8)Citigroup Inc. 219,506 8,615,610 Federal National Mortgage Association 68,450 4,955,096 MBNA Corp. 97,530 1,843,317 SLM Corp. 26,800 3,001,600 ----------- 24,921,864 ----------- Total Financial Services 33,534,624 ----------- Health Care 26.4% of net assets ============================================================================ Drugs & Biotechnology 18.9% Allergan Inc. 32,000 2,248,000 Altana AG*@ 35,500 1,746,245 (9)Amgen Inc.* 134,050 8,218,606 AstraZeneca PLC@ 107,290 4,277,652 Forest Laboratories Inc.* 28,800 1,489,536 Gilead Sciences, Inc.* 28,400 1,310,376 (10)Johnson & Johnson Ltd. 141,520 7,976,067 Novartis AG@ 122,700 4,844,196 (3)Pfizer Inc. 490,354 15,078,385 Teva Pharmaceutical Industries Ltd.@ 38,300 1,788,610 (7)Wyeth Inc. 205,400 8,941,062 ----------- 57,918,735 ----------- Health Care Services 3.2% Anthem Inc.* 69,890 4,797,250 Caremark Rx Inc.* 58,500 1,164,735 Wellpoint Health Networks Inc. Cl. A* 50,400 3,827,376 ----------- 9,789,361 ----------- Hospital Supply 4.3% Guidant Corp. 44,400 1,731,156 Medtronic Inc. 135,790 6,482,614 Varian Medical Systems Inc.* 49,030 2,640,756 Zimmer Holdings Inc.* 46,000 2,157,400 ----------- 13,011,926 ----------- Total Health Care 80,720,022 ----------- Integrated Oils 0.9% of net assets ============================================================================ Integrated International 0.9% Total Fina SA@ 43,770 2,875,689 ----------- Total Integrated Oils 2,875,689 ----------- Materials & Processing 1.0% of net assets ============================================================================ Chemicals 1.0% Air Products & Chemicals Inc. 70,560 3,039,019 ----------- Total Materials & Processing 3,039,019 ----------- Other 5.2% of net assets ============================================================================ Multi-Sector 5.2% (2)General Electric Co. 541,730 15,953,949 ----------- Total Other 15,953,949 ----------- Other Energy 3.4% of net assets ============================================================================ Oil & Gas Producers 1.6% Burlington Resources Inc. 44,100 2,042,271 Devon Energy Corp. 56,362 2,663,103 ----------- 4,705,374 ----------- Oil Well Equipment & Services 1.8% BJ Services Co.* 53,800 1,964,238 Halliburton Co. 94,000 2,012,540 Nabors Industries Ltd* 40,600 1,591,520 ----------- 5,568,298 ----------- Total Other Energy 10,273,672 ----------- Producer Durables 2.2% of net assets ============================================================================ Miscellaneous Equipment 1.4% Danaher Corp. 62,300 4,297,454 ----------- The text and notes are an integral part of the financial statements. 8 State Street Research Legacy Fund
Issuer Shares Value ----------------------------------------------------------------------------- Production Technology Equipment 0.8% Novellus Systems Inc.* 81,100 $2,274,044 ----------- Total Producer Durables 6,571,498 ----------- Technology 21.5% of net assets ============================================================================= Communications Technology 2.3% Ciena Corp.* 258,900 1,260,843 Cisco Systems Inc.* 324,480 4,880,179 JDS Uniphase Corp.* 236,100 762,603 ----------- 6,903,625 ----------- Computer Software 8.4% BMC Software Inc.* 193,880 2,892,689 (1)Microsoft Corp. 628,640 16,074,325 Oracle Systems Corp.* 232,200 2,758,536 SAP AG@ 160,170 4,085,937 ----------- 25,811,487 ----------- Computer Technology 5.4% Dell Computer Corp.* 92,500 2,674,175 EMC Corp.* 339,300 3,084,237 (4)IBM Corp. 126,820 10,767,018 ----------- 16,525,430 ----------- Electronics: Semiconductors/Components 5.4% (5)Intel Corp. 547,560 10,075,104 Linear Technology Corp. 136,500 4,705,155 National Semiconductor Corp.* 97,900 1,833,667 ----------- 16,613,926 ----------- Total Technology 65,854,468 ----------- Utilities 2.3% of net assets ============================================================================= Cable Television & Radio 2.3% Comcast Corp.* 238,090 7,156,985 ----------- Total Utilities 7,156,985 ----------- Total Common Stocks 302,489,256(a) ----------- - ----------------------------------------------------------------- (a) The fund paid a total of $277,324,102 for these securities. - ----------------------------------------------------------------- Short-Term Investments 7.1% of net assets State Street Navigator Securities Lending Prime Portfolio 21,735,126 21,735,126 ----------- Total Short-Term Investments 21,735,126(b) ----------- - ------------------------------------------------------------- (b) The fund paid a total of $21,735,126 for this security. - ------------------------------------------------------------- Amount of Issuer Principal Value ----------------------------------------------------------------------------- Commercial Paper 1.1% of net assets Citigroup Inc. 1.30%, 5/01/2003 $3,266,000 $3,266,000 ----------- Total Commercial Paper 3,266,000(c) ----------- - ------------------------------------------------------------- (c) The fund paid a total of $3,266,000 for this security. - ------------------------------------------------------------- % of net Assets - -------------------------------------------------------------------------------- Summary of Portfolio Assets Investments 107.1% $327,490,382(d) Other Assets, Less Liabilities (7.1%) (21,689,660) ----- ------------- Net Assets 100.0% $305,800,722 ===== =============
- ----------------------------------------------------------------- (d) The fund paid a total of $302,325,228 for these securities. - ----------------------------------------------------------------- Federal Income Tax Information At April 30, 2003, the net unrealized appreciation of investments based on cost for federal income tax purposes of $ 302,325,228 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $31,203,517 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (6,038,363) ------------ $25,165,154 ============ At October 31, 2002, the fund had a capital loss carryforward of $93,445,714 available, to the extent provided in regulations, to offset future capital gains, if any, of which $353,559, $2,301,316, $15,859,209, $28,798,525 and $46,133,105 expire on October 31, 2006, 2007, 2008, 2009 and 2010, respectively. The text and notes are an integral part of the financial statements. 9 Statement of Assets and Liabilities - -------------------------------------------------------------------------------- April 30, 2003 (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 value* $327,490,382(a) Receivable for securities sold 6,092,081 Receivable for fund shares sold 214,635 Dividends receivable 133,465 Other assets 126,916 ------------- 334,057,479 Liabilities Payable for collateral received on securities loaned 21,735,126 Payable for securities purchased 5,285,624 Payable for fund shares redeemed 480,813 Accrued transfer agent and shareholder services 203,026 Accrued management fee 166,408 Accrued distribution and service fees 131,108 Payable to custodian 41,518(b) Accrued trustees' fees 17,121 Accrued administration fee 6,176 Other accrued expenses 189,837 ------------- 28,256,757 ------------- Net Assets $305,800,722 ============= Net Assets consist of: Unrealized appreciation of investments $25,165,154 Accumulated net realized loss (123,530,294) Paid-in capital 404,165,862 ------------- $305,800,722(c) =============
* Includes securities on loan valued at $21,027,967 - -------------------------------------------------------------------------------- (a) The fund paid a total of $302,325,228 for these securities. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (b) As part of the custodian contract between the custodian bank and the fund, the custodian bank has a lien on the securities of the fund to the extent permitted by the fund's investment restrictions to cover any advances made by the custodian bank for the settlement of securities purchased by the fund. At April 30, 2003, the payable to the custodian bank represents the amount due for cash advanced for the settlement of a security purchased. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (c) Net Asset Value (NAV) of Each Share Class Except where noted, the NAV is the offering and the redemption price for each class. Class Net Assets / Number of Shares = NAV A $84,415,935 8,337,400 $10.12* B(1) $94,209,618 9,677,044 $9.74** B $44,344,580 4,483,555 $9.89** C $28,305,507 2,906,872 $9.74** R $ 103,486 10,222 $10.12 S $54,421,596 5,267,928 $10.33 * Maximum offering price per share = $10.74 ($10.12 / 0.9425) ** Redemption price per share for Class B(1), Class B and Class C is equal to net asset value less any applicable contingent deferred sales charge. - -------------------------------------------------------------------------------- The text and notes are an integral part of the financial statements. 10 State Street Research Legacy Fund Statement of Operations - -------------------------------------------------------------------------------- For the six months ended April 30, 2003 (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 $ 1,142,776(a) Interest 32,341(b) ------------ 1,175,117 Expenses Management fee 804,351(c) Transfer agent and shareholder services 365,381(d) Distribution and service fees - Class A 111,018(e) Distribution and service fees - Class B(1) 431,835(e) Distribution and service fees - Class C 137,652(e) Distribution and service fees - Class R 40(e) Custodian fee 56,544 Reports to shareholders 49,228 Administration fee 42,284(f) Registration fees 30,628 Audit fee 14,384 Trustees' fees 9,052(g) Legal fees 8,432 Amortization of organizational costs 2,857(h) ------------ 2,063,686 Fees paid indirectly (3,595)(i) ------------ 2,060,091 ------------ Net investment loss (884,974) ------------ Realized and Unrealized Gain (Loss) on Investments Net realized loss on investments (30,084,580)(j) Change in unrealized appreciation of investments 40,507,348 ------------ Net gain on investments 10,422,768 ------------ Net increase in net assets resulting from operations $ 9,537,794 ============
- -------------------------------------------------------------------------------- (a) The fund paid foreign taxes of $27,932. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (b) Includes $9,165 in income from the lending of portfolio securities. As of the report date, the fund had a total of $21,027,967 of securities out on loan and was holding a total of $21,735,126 in collateral (consisting entirely of cash collateral invested in State Street Navigator Securities Lending Prime Portfolio) related to these loans. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (c) The management fee is 0.65% of fund net assets, annually. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (d) Includes a total of $176,701 paid to the distributor and to MetLife for services provided, including maintaining the accounts of some investors who hold shares through the firm's employee benefit plans and other sponsored arrangements. Total shareholder service costs are allocated to each fund in the same ratio as the transfer agent costs. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (e) 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. For Class A, Class B and Class C shares, the payments are intended to reimburse the distributor for expenditures incurred under the plan, and any unused payments are returnable to the fund. As of April 30, 2003, there were $1,742,780, $366,811 and $2,870,067 for Class A, Class B and Class C, respectively, of unreimbursed distribution and shareholder servicing related expenses to be carried forward to future plan years. For Class B(1) shares, the payments compensate the distributor for services and expenditures incurred under the plan, and none of the payments are returnable to the fund. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (f) Payments made to the investment manager for certain administrative costs incurred in providing other assistance and services to the fund. The fee is based on a fixed amount that has been allocated equally among State Street Research funds. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (g) Paid only to trustees who aren't currently affiliated with the adviser (the fund doesn't pay trustees' fees to affiliated trustees). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (h) Organization costs were capitalized and are being amortized straight-line over five years. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (i) Represents transfer agent credits earned from uninvested cash balances. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (j) The fund sold $188,103,268 worth of securities. During this same period, the fund also bought $245,785,458 worth of securities. These figures don't include short-term obligations or U.S. government securities. - -------------------------------------------------------------------------------- The text and notes are an integral part of the financial statements. 11 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 buying and selling fund shares. Six months ended April 30, 2003 Year ended (unaudited) October 31, 2002 - -------------------------------------------------------------------------------- Increase (Decrease) In Net Assets Operations: Net investment loss ($884,974) ($2,162,679) Net realized loss on investments (30,084,580) (45,795,611) Change in unrealized appreciation of investments 40,507,348 4,761,780 --------------------------------- Net increase (decrease) resulting from operations 9,537,794 (43,196,510) --------------------------------- Net increase (decrease) from fund share transactions 55,098,043(a) (63,007,052) --------------------------------- Total increase (decrease) in net assets 64,635,837 (106,203,562) Net Assets Beginning of period 241,164,885 347,368,447 --------------------------------- End of period $305,800,722 $241,164,885 ================================= The text and notes are an integral part of the financial statements. 12 State Street Research Legacy Fund - -------------------------------------------------------------------------------- (a) These transactions break down by share class as follows:
Six months ended April 30, 2003 Year ended (unaudited) October 31, 2002 -------------------------------------------------------------- Class A Shares Amount Shares Amount =================================================================================================================================== Shares sold 1,227,938 $12,572,498* 2,347,522 $26,463,991 Issued in connection with acquisition of Large-Cap Growth Fund 1,381,114 12,873,626 -- -- Shares redeemed (1,982,310) (19,854,024) (3,614,279) (40,038,598) -------------------------------------------------------------- Net increase (decrease) 626,742 $5,592,100 (1,266,757) ($13,574,607) ============================================================== Class B(1) Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold 510,086 $5,591,568** 854,046 $9,647,585 Issued in connection with acquisition of Large-Cap Growth Fund 1,052,996 9,449,657 -- -- Shares redeemed (1,310,928) (13,005,358) (2,957,847) (31,775,421) -------------------------------------------------------------- Net increase (decrease) 252,154 $2,035,867*** (2,103,801) ($22,127,836) ============================================================== Class B Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold 86,906 $1,179,112 102,866 $1,131,310 Issued in connection with acquisition of Large-Cap Growth Fund 1,177,017 10,711,357 -- -- Shares redeemed (729,684) (7,209,106)*** (1,656,107) (17,930,234) -------------------------------------------------------------- Net increase (decrease) 534,239 $4,681,363 (1,553,241) ($16,798,924) ============================================================== Class C Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold 345,165 $3,562,209** 708,473 $7,622,873 Issued in connection with acquisition of Large-Cap Growth Fund 189,286 1,699,127 -- -- Shares redeemed (881,274) (8,632,074)**** (1,622,024) (17,909,743) -------------------------------------------------------------- Net decrease (346,823) ($3,370,738) (913,551) (10,286,870) ============================================================== Class R+ Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold 10,222 $103,486 -- -- -------------------------------------------------------------- Net increase 10,222 $103,486 -- -- ============================================================== Class S Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold 13,168 $166,499 26,420 $311,840 Issued in connection with acquisition of Large-Cap Growth Fund 5,164,031 49,094,754 -- -- Shares redeemed (319,463) (3,205,288) (48,561) (530,655) -------------------------------------------------------------- Net increase (decrease) 4,857,736 $46,055,965 (22,141) ($218,815) ==============================================================
The trustees have the authority to issue an unlimited number of shares of beneficial interest, with a $0.001 par value per share. At April 30, 2003, the Advisor owned 10,215 Class R shares of the fund. * At April 30, 2003, sales charges collected by the distributor and MetLife were $21,018 and $38,095, respectively. ** Like all broker/dealers, MetLife received commissions that were calculated as a percentage of these sales but the commissions of $75,377 and $256 for Class B(1) and Class C, respectively, were paid by the distributor, not the fund. *** Includes $170,158 and $33,640 in deferred sales charges collected by the distributor for Class B(1) and Class B, respectively. **** Includes $743 in deferred sales charges collected by the distributor. + April 3, 2003 (commencement of share class) to April 30, 2003 - -------------------------------------------------------------------------------- The text and notes are an integral part of the financial statements. 13 Financial Highlights - -------------------------------------------------------------------------------- These provide a summary of each share class's financial performance.
Class A ======================================================================== Years ended Six months Six months ended October 31 ended Years ended April 30 April 30, 2003 ------------------ October 31, -------------------- Per-Share Data (unaudited)(a) 2002(a) 2001(a) 2000(a)(f) 2000(a) 1999(a) ==================================================================================================================================== Net asset value, beginning of period ($) 9.96 11.56 16.39 15.99 14.42 11.66 ------ ------ ------- ------- ------- ------ Net investment loss ($)* (0.03) (0.03) (0.05) (0.04) (0.05) (0.02) Net realized and unrealized gain (loss) on investments ($) 0.19 (1.57) (4.78) 0.44 1.62 2.79 ------ ------ ------- ------- ------- ------ Total from investment operations ($) 0.16 (1.60) (4.83) 0.40 1.57 2.77 ------ ------ ------- ------- ------- ------ Distribution from capital gains ($) -- -- -- -- -- (0.01) ------ ------ ------- ------- ------- ------ Total distributions ($) -- -- -- -- -- (0.01) ------ ------ ------- ------- ------- ------ Net asset value, end of period ($) 10.12 9.96 11.56 16.39 15.99 14.42 ====== ====== ======= ======= ======= ====== Total return (%) (b) 1.61(d) (13.84) (29.47) 2.50 (d) 10.89 23.73 Ratios/Supplemental Data ==================================================================================================================================== Net assets at end of period ($ thousands) 84,416 76,798 103,774 151,920 143,037 58,642 Expense ratio (%)* 1.42(e) 1.39 1.35 1.34(e) 1.22 1.20 Expense ratio after expense reductions (%)* 1.42(e) 1.38 1.33 1.34(e) 1.21 1.19 Ratio of net investment loss to average net assets (%)* (0.55)(e) (0.28) (0.39) (0.54)(e) (0.34) (0.14) Portfolio turnover rate (%) 74.53 30.87 21.61 11.07 33.23 42.09 *Reflects voluntary reduction of expenses of these amounts (%) -- -- -- -- -- 0.03
Class B(1) ======================================================================== Years ended Six months Six months ended October 31 ended Years ended April 30 April 30, 2003 ------------------ October 31, -------------------- Per-Share Data (unaudited)(a) 2002(a) 2001(a) 2000(a)(f) 2000(a) 1999(a)(c) ==================================================================================================================================== Net asset value, beginning of period ($) 9.61 11.23 16.04 15.71 14.28 13.08 ------ ------ ------- ------- ------- ------ Net investment loss ($)* (0.06) (0.11) (0.15) (0.10) (0.17) (0.04) Net realized and unrealized gain (loss) on investments ($) 0.19 (1.51) (4.66) 0.43 1.60 1.24 ------ ------ ------- ------- ------- ------ Total from investment operations ($) 0.13 (1.62) (4.81) 0.33 1.43 1.20 ------ ------ ------- ------- ------- ------ Net asset value, end of period ($) 9.74 9.61 11.23 16.04 15.71 14.28 ====== ====== ======= ======= ======= ====== Total return (%) (b) 1.35(d) (14.43) (29.99) 2.10(d) 10.01(d) 9.17(d) Ratios/Supplemental Data =================================================================================================================================== Net assets at end of period ($ thousands) 94,210 90,564 129,464 184,818 153,359 24,454 Expense ratio (%)* 2.12(e) 2.09 2.05 2.04(e) 1.97 1.88(e) Expense ratio after expense reductions (%)* 2.12(e) 2.08 2.03 2.04(e) 1.96 1.87(e) Ratio of net investment loss to average net assets (%)* (1.29)(e) (0.98) (1.09) (1.25)(e) (1.13) (1.00)(e) Portfolio turnover rate (%) 74.53 30.87 21.61 11.07 33.23 42.09 *Reflects voluntary reduction of expenses of these amounts (%) -- -- -- -- -- 0.03(e)
The text and notes are an integral part of the financial statements. 14 State Street Research Legacy Fund
Class B ======================================================================== Years ended Six months Six months ended October 31 ended Years ended April 30 April 30, 2003 ------------------ October 31, -------------------- Per-Share Data (unaudited)(a) 2002(a) 2001(a) 2000(a)(f) 2000(a) 1999(a) ==================================================================================================================================== Net asset value, beginning of period ($) 9.72 11.31 16.11 15.74 14.28 11.64 ------ ------ ------ ------- ------- ------ Net investment loss ($)* (0.01) (0.07) (0.11) (0.07) (0.12) (0.11) Net realized and unrealized gain (loss) on investments ($) 0.18 (1.52) (4.69) 0.44 1.58 2.76 ------ ------ ------ ------- ------- ------ Total from investment operations ($) 0.17 (1.59) (4.80) 0.37 1.46 2.65 ------ ------ ------ ------- ------- ------ Distribution from capital gains ($) -- -- -- -- -- (0.01) ------ ------ ------ ------- ------- ------ Total distributions ($) -- -- -- -- -- (0.01) ------ ------ ------ ------- ------- ------ Net asset value, end of period ($) 9.89 9.72 11.31 16.11 15.74 14.28 ====== ====== ====== ======= ======= ====== Total return (%) (b) 1.75(d) (14.06) (29.80) 2.35(d) 10.22 22.74 Ratios/Supplemental Data ==================================================================================================================================== Net assets at end of period ($ thousands) 44,345 38,368 62,244 106,027 109,135 88,383 Expense ratio (%)* 1.12(e) 1.74 1.76 1.69(e) 1.77 1.95 Expense ratio after expense reductions (%)* 1.12(e) 1.73 1.74 1.69(e) 1.76 1.94 Ratio of net investment loss to average net assets (%)* (0.22)(e) (0.66) (0.80) (0.89)(e) (0.87) (0.89) Portfolio turnover rate (%) 74.53 30.87 21.61 11.07 33.23 42.09 *Reflects voluntary reduction of expenses of these amounts (%) -- -- -- -- -- 0.03
Class C ======================================================================== Years ended Six months Six months ended October 31 ended Years ended April 30 April 30, 2003 ------------------ October 31, -------------------- Per-Share Data (unaudited)(a) 2002(a) 2001(a) 2000(a)(f) 2000(a) 1999(a) ==================================================================================================================================== Net asset value, beginning of period ($) 9.61 11.23 16.05 15.71 14.28 11.63 ------ ------ ------ ------ ------ ------ Net investment loss ($)* (0.06) (0.11) (0.15) (0.10) (0.16) (0.11) Net realized and unrealized gain (loss) on investments ($) 0.19 (1.51) (4.67) 0.44 1.59 2.77 ------ ------ ------ ------ ------ ------ Total from investment operations ($) 0.13 (1.62) (4.82) 0.34 1.43 2.66 ------ ------ ------ ------ ------ ------ Distribution from capital gains ($) -- -- -- -- -- (0.01) ------ ------ ------ ------ ------ ------ Total distributions ($) -- -- -- -- -- (0.01) ------ ------ ------ ------ ------ ------ Net asset value, end of period ($) 9.74 9.61 11.23 16.05 15.71 14.28 ====== ====== ====== ====== ====== ====== Total return (%) (b) 1.35(d) (14.43) (30.03) 2.16(d) 10.01 22.85 Ratios/Supplemental Data ==================================================================================================================================== Net assets at end of period ($ thousands) 28,306 31,274 46,809 76,137 69,061 26,399 Expense ratio (%)* 2.12(e) 2.09 2.05 2.04(e) 1.97 1.95 Expense ratio after expense reductions (%)* 2.12(e) 2.08 2.03 2.04(e) 1.96 1.94 Ratio of net investment loss to average net assets (%)* (1.36)(e) (0.99) (1.08) (1.24)(e) (1.10) (0.90) Portfolio turnover rate (%) 74.53 30.87 21.61 11.07 33.23 42.09 *Reflects voluntary reduction of expenses of these amounts (%) -- -- -- -- -- 0.03
(a) Per-share figures have been calculated using the average shares method. (b) Does not reflect any front-end or contingent deferred sales charges. Total return would be lower if the distributor and its affiliates had not voluntarily assumed a portion of the Fund's expenses. (c) January 1, 1999 (commencement of share class), to April 30, 1999. (d) Not Annualized (e) Annualized (f) Effective August 2, 2000, the fiscal year-end of the fund changed from April 30 to October 31 The text and notes are an integral part of the financial statements. 15 Financial Highlights (continued) - -------------------------------------------------------------------------------- Class R ============================= April 3, 2003 (commencement of share class) to April 30, 2003 Per-Share Data (unaudited)(a) ================================================================================ Net asset value, beginning of period ($) 9.79 ------ Net investment income ($)* 0.04 Net realized and unrealized gain on investments ($) 0.29 ------ Total from investment operations ($) 0.33 ------ Net asset value, end of period ($) 10.12 ====== Total return (%) (b) 1.61(d) Ratios/Supplemental Data ================================================================================ Net assets at end of period ($ thousands) 103 Expense ratio (%)* 1.62(e) Expense ratio after expense reductions (%)* 1.62(e) Ratio of net investment income to average net assets (%)* 0.85(e) Portfolio turnover rate (%) 74.53
Class S ======================================================================== Years ended Six months Six months ended October 31 ended Years ended April 30 April 30, 2003 ------------------ October 31, -------------------- Per-Share Data (unaudited)(a) 2002(a) 2001(a) 2000(a)(f) 2000(a) 1999(a) ==================================================================================================================================== Net asset value, beginning of period ($) 10.14 11.74 16.61 16.09 14.48 11.68 ------ ----- ----- ----- ----- ----- Net investment income (loss) ($)* 0.04 0.00 (0.01) (0.02) (0.00) 0.02 Net realized and unrealized gain (loss) on investments ($) 0.15 (1.60) (4.86) 0.54 1.61 2.79 ------ ----- ----- ----- ----- ----- Total from investment operations ($) 0.19 (1.60) (4.87) 0.52 1.61 2.81 ------ ----- ----- ----- ----- ----- Distribution from capital gains ($) -- -- -- -- -- (0.01) ------ ----- ----- ----- ----- ----- Total distributions ($) -- -- -- -- -- (0.01) ------ ----- ----- ----- ----- ----- Net asset value, end of period ($) 10.33 10.14 11.74 16.61 16.09 14.48 ====== ===== ===== ===== ===== ===== Total return (%)(b) 1.87(d) (13.63) (29.32) 3.23(d) 11.12 24.04 Ratios/Supplemental Data ==================================================================================================================================== Net assets at end of period ($ thousands) 54,422 4,161 5,077 7,126 8,097 6,367 Expense ratio (%)* 1.12(e) 1.09 1.05 1.04(e) 0.97 0.95 Expense ratio after expense reductions (%)* 1.12(e) 1.08 1.03 1.04(e) 0.96 0.94 Ratio of net investment income (loss) to average net assets (%)* 0.98(e) 0.03 (0.09) (0.24)(e) (0.06) 0.16 Portfolio turnover rate (%) 74.53 30.87 21.61 11.07 33.23 42.09 *Reflects voluntary reduction of expenses of -- -- -- -- -- 0.03 these amounts (%)
(a) Per-share figures have been calculated using the average shares method. (b) Does not reflect any front-end or contingent deferred sales charges. Total return would be lower if the distributor and its affiliates had not voluntarily assumed a portion of the Fund's expenses. (c) January 1, 1999 (commencement of share class), to April 30, 1999. (d) Not Annualized (e) Annualized (f) Effective August 2, 2000, the fiscal year-end of the fund changed from April 30 to October 31 The text and notes are an integral part of the financial statements. 16 State Street Research Legacy Fund The Fund at a Glance (continued from page 3) Performance Class B(1) Fund average annual total return as of 4/30/03 (1),(3),(5) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -15.30% -3.49% -0.48% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -15.30% -3.49% -0.49% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.55% -2.75% -0.39% - -------------------------------------------------------------------------------- Fund average annual total return as of 3/31/03 (1),(2),(3),(5) (at maximum applicable sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -29.43% -4.85% -1.96% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -29.43% -4.85% -1.96% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -18.36% -3.80% -1.56% - -------------------------------------------------------------------------------- Performance Class C Fund average annual total return as of 4/30/03 (1),(3),(5) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -15.30% -3.47% -0.48% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -15.30% -3.48% -0.49% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.55% -2.74% -0.39% - -------------------------------------------------------------------------------- Fund average annual total return as of 3/31/03 (1),(2),(3),(5) (at maximum applicable sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -26.46% -4.46% -1.77% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -26.46% -4.47% -1.77% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -16.51% -3.50% -1.41% - -------------------------------------------------------------------------------- Performance Class B Fund average annual total return as of 4/30/03 (1),(3),(5) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -14.74% -3.20% -0.20% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -14.74% -3.20% -0.20% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.20% -2.52% -0.16% - -------------------------------------------------------------------------------- Fund average annual total return as of 3/31/03 (1),(2),(3),(5) (at maximum applicable sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -28.92% -4.56% -1.48% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -28.92% -4.56% -1.49% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -18.05% -3.58% -1.18% - -------------------------------------------------------------------------------- Performance Class R Fund average annual total return as of 4/30/03 (1),(3),(4),(5) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -14.81% -2.78% 0.23% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -14.81% -2.79% 0.23% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.24% -2.20% 0.19% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1 Keep in mind that past performance is no guarantee of future results. The fund's share price, yield and return will fluctuate, and you may have a gain or loss when you sell your shares. All returns assume reinvestment of capital gains distributions and income dividends at net asset value. Returns for Class B(1) reflect Class B performance through December 31, 1998. Class B(1) was introduced on January 1, 1999. Returns for Class R reflect Class A performance through April 2, 2003. Class R was introduced on April 3, 2003. 2 Performance reflects a maximum 5.75% Class A front-end sales charge or 5% Class B or Class B(1) share or 1% Class C share contingent deferred sales charge where applicable. 3 After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Return After Distributions and Sale of Fund Shares for a period may be greater than or equal to Returns After Taxes on Distributions for the same period because of losses realized on the sale of fund shares. 4 Class R shares offered without sales charge are only available through retirement plans participating in certain platforms sponsored by broker-dealers. 5 Performance results for the fund are increased by the voluntary reduction of fund fees and expenses; without subsidization, performance would have been lower. 17 The Fund at a Glance (continued from page 3) Performance Class S Fund average annual total return as of 4/30/03 (1),(2),(3),(4) (does not reflect sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -14.56% -2.42% 0.62% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -14.56% -2.42% 0.62% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -9.08% -1.91% 0.50% - -------------------------------------------------------------------------------- Fund average annual total return as of 3/31/03 (1),(2),(3),(4) (at maximum applicable sales charge) Life of Fund 1 Year 5 Years (12/31/97) ================================================================================ Return Before Taxes -24.96% -3.39% -0.67% - -------------------------------------------------------------------------------- Return After Taxes on Distributions -24.96% -3.39% -0.67% - -------------------------------------------------------------------------------- Return After Taxes on Distributions and Sale of Fund Shares -15.58% -2.67% -0.53% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1 Keep in mind that past performance is no guarantee of future results. The fund's share price, yield and return will fluctuate, and you may have a gain or loss when you sell your shares. All returns assume reinvestment of capital gains distributions and income dividends at net asset value. 2 After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Return After Distributions and Sale of Fund Shares for a period may be greater than or equal to Returns After Taxes on Distributions for the same period because of losses realized on the sale of fund shares. 3 Class S shares offered without sales charge are only available to certain employee benefit plans and through special programs. 4 Performance results for the fund are increased by the voluntary reduction of fund fees and expenses; without subsidization, performance would have been lower. 18 State Street Research Legacy Fund State Street Research Securities Trust
Number of Funds Name, Position(s) Term of Office in Fund Complex Other Address Held with and Length of Principal Occupations Overseen by Directorships Held and Age (a) Fund Time Served (b) During Past 5 Years Trustee/Officer (c) by Trustee/Officer ==================================================================================================================================== Independent Trustees - ------------------------------------------------------------------------------------------------------------------------------------ Bruce R. Bond Trustee Since 1999 Retired; formerly Chairman of the 19 Ceridian Corporation (57) Board, Chief Executive Officer and President, PictureTel Corporation (video conferencing systems) - ------------------------------------------------------------------------------------------------------------------------------------ Steve A. Trustee Since 1997 Retired; formerly Senior Vice 55 Metropolitan Series Fund, Garban (65) President for Finance and Inc.(d) Operations and Treasurer, The Pennsylvania State University - ------------------------------------------------------------------------------------------------------------------------------------ Dean O. Trustee Since 1994 Retired; formerly Executive Vice 55 The Clorox Company; KLA-Tencor Morton President, Chief Operating Officer Corporation; BEA Systems, Inc.; (71) and Director, Hewlett-Packard Cepheid; Pharsight Corporation; Company (computer manufacturer) and Metropolitan Series Fund, Inc.(d) - ------------------------------------------------------------------------------------------------------------------------------------ Susan M. Trustee Since 1999 Dean, School of Business and 19 None Phillips Public Management, George (58) Washington University; formerly a member of the Board of Governors of the Federal Reserve System; and Chairman and Commissioner of the Commodity Futures Trading Commission - ------------------------------------------------------------------------------------------------------------------------------------ Toby Trustee Since 1994 President, Founders Investments 55 A. P. Pharma, Inc.; and Rosenblatt Ltd. (investments); formerly Metropolitan Series Fund, Inc. (64) President, The Glen Ellen Company (d) (private investment firm) - ------------------------------------------------------------------------------------------------------------------------------------ Michael S. Trustee Since 1994 Jay W. Forrester Professor of 55 Metropolitan Series Fund, Inc. Scott Morton Management, Sloan School of (d) (65) Management, Massachusetts Institute of Technology - ------------------------------------------------------------------------------------------------------------------------------------ James M. Trustee Since 2002 Attorney; formerly Partner, 19 SEI Investments Funds Storey Dechert (law firm) (consisting of 104 portfolios); (72) and The Massachusetts Health & Education Tax-Exempt Trust ==================================================================================================================================== Interested Trustee - ------------------------------------------------------------------------------------------------------------------------------------ Richard S. Trustee Since 2000 Chairman of the Board, President 19 None Davis++ and Chief Executive Officer of (57) State Street Research & Management Company; formerly Senior Vice President, Fixed Income Investments, Metropolitan Life Insurance Company ==================================================================================================================================== Officers - ------------------------------------------------------------------------------------------------------------------------------------ Maureen G. Vice Since 2000 Managing Director of State Street 6 None Depp President Research & Management Company; (49) formerly Senior Vice President and Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Donald G. Vice Since 2001 Senior Vice President of State 9 None DeVeuve President Street Research & Management (46) Company; formerly Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Edward Dowd Vice Since 2003 Vice President of State Street 3 None (36) President Research & Management Company; formerly Vice President, Independence Investment LLC and equity research associate, Donaldson, Lufkin and Jenrette - ------------------------------------------------------------------------------------------------------------------------------------ Rosalina Vice Since 2001 Senior Vice President of State 8 None Feliciano President Street Research & Management (39) Company; formerly Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ C. Kim Vice Since 2002 Managing Director and Chief 18 None Goodwin President Investment Officer-Equities of (44) State Street Research & Management Company; formerly Chief Investment Officer-U.S. Growth Equities, American Century; and Senior Vice President and portfolio manager, Putnam Investments - ------------------------------------------------------------------------------------------------------------------------------------ Jeffrey Vice Since 2003 Managing Director of State Street 3 None Lindsey President Research & Management Company; (40) formerly Managing Direct and Senior Vice President, Putnam Investments - ------------------------------------------------------------------------------------------------------------------------------------ John S. Vice Since 2001 Managing Director, Chief Financial 19 None Lombardo President Officer and Director of State (48) Street Research & Management Company; formerly Executive Vice President, State Street Research & Management Company; and Senior Vice President, Product and Financial Management, MetLife Auto & Home - ------------------------------------------------------------------------------------------------------------------------------------ Dan R. Vice Since 2002 Managing Director of State Street 12 None Strelow (44) President Research & Management Company; formerly Executive Vice President and Senior Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Elizabeth Vice Since 1996 Managing Director of State Street 6 None McCombs President Research & Management Company; Westvold (43) formerly Senior Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Peter Zuger Vice Since 2001 Managing Director of State Street 5 None (54) President Research & Management Company; formerly Senior Vice President, State Street Research & Management Company; and portfolio manager and Vice President, American Century Investment Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Douglas A. Treasurer Since 2001 Senior Vice President and 19 None Romich Treasurer of State Street Research (46) & Management Company; formerly Vice President and Assistant Treasurer, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------ Francis J. Secretary Since 1995 Managing Director, General Counsel 19 None McNamara, III and Secretary of State Street (47) Research & Management Company; formerly Executive Vice President, State Street Research & Management Company - ------------------------------------------------------------------------------------------------------------------------------------
The fund's Statement of Additional Information includes additional information about the fund's trustees, and is available without charge, by contacting State Street Research, One Financial Center, Boston, Massachusetts 02111-2690, or by calling toll-free 1-87-SSR-FUNDS (1-877-773-8637). (a) The address of each person is c/o State Street Research & Management Company, One Financial Center, Boston, MA 02111-2690. (b) A Trustee serves until he or she retires, resigns or is removed as provided in the master trust agreement of the respective Trust. Each Trust has adopted a mandatory retirement age of 72. Each officer holds office until he or she resigns, is removed or a successor is elected. (c) Includes all series of 9 investment companies for which State Street Research & Management Company has served as sole investment adviser and all series of Metropolitan Series Fund, Inc. The primary adviser to Metropolitan Series Fund, Inc. is MetLife Advisers, LLC, which has retained State Street Research & Management Company as sub-adviser to certain series of Metropolitan Series Fund, Inc. (d) Serves as Director of Metropolitan Series Fund, Inc., an investment company comprising 36 separate portfolios. ++ Mr. Davis is an "interested person" of the Trust under the Investment Company Act of 1940 by reason of his affiliation with the Trust's Investment Manager, State Street Research & Management Company, as noted. 19 ------------- [LOGO] STATE STREET RESEARCH PRSRT STD One Financial Center o Boston, MA 02111-2690 U.S. POSTAGE PAID PERMIT #6 HUDSON, MA ------------- Contact Information for INVESTOR SERVICES - ----------------------------------------------------------------------------- New accounts, mutual fund purchases, exchanges and account information [INTERNET] Internet www.ssrfunds.com [EMAIL] E-mail info@ssrfunds.com [PHONE] Phone 1-87-SSR-FUNDS (1-877-773-8637), toll-free, 7 days a week, 24 hours a day Hearing-impaired: 1-800-676-7876 Chinese- and Spanish-speaking: 1-888-638-3193 [FAX] Fax 1-617-737-9722 (request confirmation number first from the Service Center by calling 1-877-773-8637) [MAILBOX] Mail State Street Research Service Center P.O. Box 8408, Boston, MA 02266-8408 For 24-Hour Automated Access to Your Account [PHONE] 1-87-SSR-FUNDS --------------- (1-877-773-8637) www.ssrfunds.com OverView - -------------------------------------------------------------------------------- For more information on the products and services mentioned in OverView, our shareholder newsletter, visit our web site at www.ssrfunds.com. Webcasts - -------------------------------------------------------------------------------- [GRAPHIC] For a professional perspective on the markets, the economy and timely investment topics, tune in to a State Street Research webcast. Complete Fund Listing - -------------------------------------------------------------------------------- [GRAPHIC] For a list of our funds, visit our web site at www.ssrfunds.com under Research Our Funds. State Street Research FYI - -------------------------------------------------------------------------------- [COMPUTER] State Street Research offers electronic delivery of quarterly statements, shareholder reports and fund prospectuses. If you elect this option, we will send these materials to you via e-mail. To learn more, visit us on the web at www.ssrfunds.com and click on "Go to Your Account" or call us toll-free at 1-87-SSR-FUNDS (1-877-773-8637). Did you know that you can give a State Street Research mutual fund as a gift? To learn more, call a service center representative at 1-87-SSR-FUNDS (1-877-773-8637), Monday through Friday, 8am-6pm eastern time. [GRAPHIC] The DALBAR awards recognize quality shareholder service and quality shareholder communications, 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 industrywide. [GRAPHIC] - -------------------------------------------------------------------------------- This report must be accompanied or preceded by a current State Street Research Large-Cap Analyst Fund prospectus. When used as sales material after June 30, 2003, in Shareholder Communications this report must be accompanied by a current Quarterly Performance Update. To obtain a prospectus for 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. (C)2003 State Street Research Investment Services, Inc., One Financial Center, Boston, MA 02111-2690 Member NASD, SIPC CONTROL NUMBER:(exp0604)SSR-LD LF-1882-0603 EX-99.CERT 3 ex99-cert302a.txt State Street Research Securities Trust Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Richard S. Davis, certify that: 1. I have reviewed this report on Form N-CSR of State Street Research Securities Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and changes in net assets of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2 (c) under the Investment Company Act) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of the date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 25, 2003 Richard S. Davis President, Chairman and Chief Executive Officer EX-99.CERT 4 ex99-cert302b.txt State Street Research Securities Trust Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Douglas A. Romich, certify that: 1. I have reviewed this report on Form N-CSR of State Street Research Securities Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and changes in net assets of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2 (c) under the Investment Company Act) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of the date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 25, 2003 Douglas A. Romich Treasurer EX-99.1350CERT 5 ex99-cert906a.txt State Street Research Securities Trust Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of the State Street Research Securities Trust , a Massachusetts business trust, (the "Trust"), does hereby certify that the Trust's report on Form N-CSR for the period ended April 30, 2003 (the "N-CSR") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the N-CSR fairly presents, in all material respects, the financial condition and the results of operations of the Trust. This certification is provided solely pursuant to 18 U.S.C. 1350 and shall not be deemed a part of the N-CSR, the financial statements filed with the N-CSR or otherwise "filed" for any purpose. Date: June 25, 2003 Richard S. Davis President, Chairman and Chief Executive Officer EX-99.1350CERT 6 ex99-cert906b.txt State Street Research Securities Trust Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of the State Street Research Securities Trust , a Massachusetts business trust, (the "Trust"), does hereby certify that the Trust's report on Form N-CSR for the period ended April 30, 2003 (the "N-CSR") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the N-CSR fairly presents, in all material respects, the financial condition and the results of operations of the Trust. This certification is provided solely pursuant to 18 U.S.C. 1350 and shall not be deemed a part of the N-CSR, the financial statements filed with the N-CSR or otherwise "filed" for any purpose. Date: June 25, 2003 Douglas A. Romich Treasurer -----END PRIVACY-ENHANCED MESSAGE-----