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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 811-00084
----------------------------------------------
State Street Research Master Investment Trust
------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Financial Center, Boston, MA 02111
------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Richard S. Davis, President and Chief Executive Officer
State Street Research & Management Company
One Financial Center, Boston, MA 02111
------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-357-1200
------------------
Date of fiscal year end: 12/31/04
-----------------
Date of reporting period: 01/01/04 - 12/31/04
----------------------------
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 Annual Report is attached.
[LOGO] STATE STREET RESEARCH
Innovative Ideas, Disciplined Investing.(TM)
[graphic omitted]
Investment Trust
December 31, 2004
Annual Report to Shareholders
- -------------------
PERFORMANCE
- -------------------
Discussion as of December 31, 2004
How State Street Research Investment Trust Performed
State Street Research Investment Trust (Class A shares, without sales charge)
returned 10.35% for the 12-month period ended December 31, 2004. That was
slightly less than the S&P 500 Index's return of 10.88% for the same period.
However, the fund outperformed the Lipper Large-Cap Core Funds Average, which
was 7.79% for the period.
================================================================================
Performance: Class A
- --------------------------------------------------------------------------------
Fund average annual total return as of 12/31/04
(does not reflect sales charge)
1 Year 5 Years 10 Years
10.35% -4.33% 9.89%
- --------------------------------------------------------------------------------
Fund average annual total return as of 12/31/04
(at maximum applicable sales charge)
1 Year 5 Years 10 Years
4.01% -5.45% 9.24%
- --------------------------------------------------------------------------------
S&P 500 Index as of 12/31/04
1 Year 5 Years 10 Years
10.88% -2.30% 12.07%
- --------------------------------------------------------------------------------
See pages 3 and 4 for additional performance data for Class A shares and for
performance data on other share classes.
Keep in mind that the performance data quoted represents past performance and is
no guarantee of future results. Current performance may be lower or higher than
the performance data quoted herein. For the most recent month-end performance
results, please call 1-877-773-8637. 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.
Average annual total return without sales charge does not reflect the maximum
applicable sales charges. If the applicable sales charges were deducted,
performance results would be lower.
Average annual total return at maximum applicable sales charge reflects a
maximum 5.75% Class A share front-end sales charge.
The S&P 500 Index (officially the "Standard & Poor's 500 Composite Stock Price
Index") is an unmanaged index of 500 U.S. stocks. The index does not take
transaction charges into consideration. It is not possible to invest directly in
an index.
The Lipper Large-Cap Core Funds Average shows the performance of a category of
mutual funds with similar goals. The Lipper average shows you how well the fund
has done compared to competing funds.
================================================================================
Reasons for the Fund's Performance
Concerns over the presidential election, interest rates and terrorism weighed on
the markets during the first ten months of the year. However, investors shook
off their concerns once the presidential election was resolved, and stocks
rallied strongly in the fourth quarter. In this environment, health care,
financial services and energy selections benefited performance, as did an
overweight in energy stocks. The fund's exposure to integrated oils and utility
stocks was lower than that of its benchmark, and this detracted from its return.
However, in general, the fund's energy holdings, such as EOG Resources,
benefited from elevated commodity prices. Heightened inventories and waning
semiconductor demand proved costly in the producer durables and technology
sectors.
A Word about Risk
The major risks of stock investing include sudden and unpredictable drops in
value and periods of lackluster performance. The fund invests in larger, more
established companies, which may be unable to respond quickly to new
competitive challenges, such as changes in technology and consumer trends. Many
larger companies also cannot sustain the higher growth rates of successful
smaller companies during periods of extended economic expansion. The fund may
underperform other stock funds during periods when growth and income stocks are
out of favor.
================================================================================
Summary Portfolio Schedule
- -------------------------------------------------------------------------------
Industries % of Fund Net Assets
Financial Services 16.9%
- -------------------------------------------------------------------------------
Consumer Discretionary 16.6%
- -------------------------------------------------------------------------------
Technology 14.9%
- -------------------------------------------------------------------------------
Health Care 12.7%
- -------------------------------------------------------------------------------
Other 8.2%
- -------------------------------------------------------------------------------
Consumer Staples 7.6%
- -------------------------------------------------------------------------------
Utilities 7.2%
- -------------------------------------------------------------------------------
Materials & Processing 7.1%
- -------------------------------------------------------------------------------
Other Energy 4.7%
- -------------------------------------------------------------------------------
Integrated Oils 2.1%
- -------------------------------------------------------------------------------
Producer Durables 0.6%
- -------------------------------------------------------------------------------
Net Cash 1.4%
- -------------------------------------------------------------------------------
Total 100.0%
================================================================================
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.
2
- -----------------
PERFORMANCE
- -----------------
Discussion as of December 31, 2004
These two pages focus on the fund's long-term track record. While a mutual
fund's past performance is not a guarantee of future results, long-term returns
can serve as an important context for evaluating recent performance. There are
three ways of measuring long-term performance: cumulative total returns,
average annual total returns and the change in dollar value over time of a
given investment. Information about these measures follows, while the share
class boxes contain the results of these measures for each share class.
Cumulative Total Return
Represents the total percentage you would have earned or lost if you had
invested a lump sum in the fund and left it there until the end of the period
indicated.
Average Annual Total Return
Represents the rate you would have had to earn during each year of a given time
period in order to end up with the fund's actual cumulative return for those
years. In reality, of course, fund performance varies from year to year. Because
of this, a fund's actual performance for a given year may be higher or lower
than an average annual performance figure.
$10,000 Over Ten Years
Similar to cumulative total return, but uses dollars rather than percentages,
and assumes that the lump sum you invested was $10,000 (less the applicable
maximum sales charge, if any) and compares fund performance to the performance
of a market index.
================================================================================
Class A
Life of Fund
1 Year 5 Years 10 Years (7/29/24)
- ------------------------------------------------------------------------------
Cumulative Total
Return (does not reflect
sales charge) 10.35% -19.85% 156.87% 1,086,424.79%
- ------------------------------------------------------------------------------
Cumulative Total
Return (at maximum
applicable sales charge) 4.01% -24.46% 142.10% 1,022,625.75%
- ------------------------------------------------------------------------------
Average Annual Total
Return (at maximum
applicable sales charge) 4.01% -5.45% 9.24% 12.16%
- ------------------------------------------------------------------------------
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
$10,000 Over 10 Years
(reflects maximum applicable sales charge)
S&P 500
Class A Index
------- -------
$10,000 $10,000
'95 13,285 13,757
'96 16,078 16,916
'97 20,726 22,562
'98 26,761 29,010
'99 32,047 35,115
'99 30,157 31,924
'01 24,595 28,130
'02 17,927 21,916
'03 23,277 28,204
'04 25,687 31,268
================================================================================
================================================================================
Class B(1)
Life of Fund
1 Year 5 Years 10 Years (7/29/24)
- ------------------------------------------------------------------------------
Cumulative Total
Return (does not reflect
sales charge) 9.59% -22.65% 138.89% 999,174.92%
- ------------------------------------------------------------------------------
Cumulative Total
Return (at maximum
applicable sales charge) 4.59% -24.04% 138.89% 997,882.25%
- ------------------------------------------------------------------------------
Average Annual Total
Return (at maximum
applicable sales charge) 4.59% -5.35% 9.10% 12.12%
- ------------------------------------------------------------------------------
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
$10,000 Over 10 Years
(reflects maximum applicable sales charge)
S&P 500
Class B(1) Index
---------- -------
$10,000 $10,000
'95 13,186 13,757
'96 15,844 16,916
'97 20,249 22,562
'98 25,971 29,010
'99 30,883 35,115
'00 28,849 31,924
'01 23,391 28,130
'02 16,896 21,916
'03 21,798 28,204
'04 23,889 31,268
================================================================================
Keep in mind that the performance data quoted represents past performance and is
no guarantee of future results. Current performance may be lower or higher than
the performance data quoted herein. For the most recent month-end performance
results, please call 1-877-773-8637. The fund's share price, yield and return
will fluctuate, and you may have a gain or a 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.
Performance includes periods prior to the creation of share classes, which
resulted in new 12b-1 fees and which will reduce subsequent performance. During
the periods prior to 1990 when shares of the fund were not offered to the
general public, the fund was not subject to the cash inflows and higher
redemptions and expenses that have occurred during the fund's current continuous
public offering.
Cumulative Total Return without sales charge does not reflect the maximum
applicable sales charges. If the applicable sales charges were deducted,
performance results would be lower.
State Street Research Investment Trust 3
================================================================================
Class B (only available through exchanges from another Class B account)
Life of Fund
1 Year 5 Years 10 Years (7/29/24)
- ------------------------------------------------------------------------------
Cumulative Total
Return (does not reflect
sales charge) 10.83% -19.46% 148.91% 1,041,080.99%
- ------------------------------------------------------------------------------
Cumulative Total
Return (at maximum
applicable sales charge) 5.83% -20.88% 148.91% 1,039,735.57%
- ------------------------------------------------------------------------------
Average Annual Total
Return (at maximum
applicable sales charge) 5.83% -4.58% 9.55% 12.18%
- ------------------------------------------------------------------------------
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
$10,000 Over 10 Years
(reflects maximum applicable sales charge)
S&P 500
Class B Index
------- -------
$10,000 $10,000
'95 13,186 13,757
'96 15,844 16,916
'97 20,249 22,562
'98 25,971 29,010
'99 30,904 35,115
'00 29,008 31,924
'01 23,557 28,130
'02 17,186 21,916
'03 22,458 28,204
'04 24,891 31,268
================================================================================
================================================================================
Class C
Life of Fund
1 Year 5 Years 10 Years (7/29/24)
- ------------------------------------------------------------------------------
Cumulative Total
Return (does not reflect
sales charge) 9.67% -22.57% 138.67% 999,474.50%
- ------------------------------------------------------------------------------
Cumulative Total
Return (at maximum
applicable sales charge) 8.67% -22.57% 138.67% 998,181.45%
- ------------------------------------------------------------------------------
Average Annual Total
Return (at maximum
applicable sales charge) 8.67% -4.99% 9.09% 12.12%
- ------------------------------------------------------------------------------
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
$10,000 Over 10 Years
(reflects maximum applicable sales charge)
S&P 500
Class C Index
------- -------
$10,000 $10,000
'95 13,175 13,757
'96 15,822 16,916
'97 20,240 22,562
'98 25,937 29,010
'99 30,827 35,115
'00 28,803 31,924
'01 23,348 28,130
'02 16,886 21,916
'03 21,763 28,204
'04 23,867 31,268
================================================================================
================================================================================
Class S
Life of Fund
1 Year 5 Years 10 Years (7/29/24)
- ------------------------------------------------------------------------------
Cumulative Total
Return (does not reflect
sales charge) 10.68% -18.65% 163.84% 1,123,205.90%
- ------------------------------------------------------------------------------
Cumulative Total
Return (at maximum
applicable sales charge) 10.68% -18.65% 163.84% 1,121,757.26%
- ------------------------------------------------------------------------------
Average Annual Total
Return (at maximum
applicable sales charge) 10.68% -4.04% 10.19% 12.29%
- ------------------------------------------------------------------------------
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
$10,000 Over 10 Years
(reflects maximum applicable sales charge)
S&P 500
Class S Index
------- -------
$10,000 $10,000
'95 13,307 13,757
'96 16,166 16,916
'97 20,867 22,562
'98 27,024 29,010
'99 32,433 35,115
'00 30,603 31,924
'01 25,066 28,130
'02 18,315 21,916
'03 23,839 28,204
'04 26,384 31,268
================================================================================
Cumulative and Average Annual Total Return at maximum applicable sales charge
reflect a maximum 5.75% Class A share front-end sales charge, or 5% Class B(1)
or Class B share or 1% Class C share contingent deferred sales charge, where
applicable. Performance for Class B(1) shares reflects Class B share
performance through December 31, 1998, and Class B(1) performance thereafter.
If the returns of Class B(1) shares had reflected their current service/
distribution on (Rule 12b-1) fees for the entire period, returns would have
been lower. Class S shares, offered without sales charge, are available through
certain retirement plans and special programs.
The S&P 500 Index (officially, the "Standard & Poor's 500 Composite Stock Price
Index") is an unmanaged index of 500 U.S. stocks. The index is unmanaged and
does not take transaction charges into consideration. It is not possible to
invest directly in the index.
4
About Your Fund Expenses
As a fund shareholder, you incur two types of costs: (1) Transaction costs,
which include sales charges, and (2) ongoing expenses, which include management
fees, service/distribution fees (12b-l) and "other" expenses. The examples
below illustrate the ongoing cost in dollars of investing in the fund and allow
you to compare these costs with the expenses of other funds. The examples are
based on a $1,000 investment at the beginning of the period and held for the
entire period from June 30, 2004, to December 31, 2004.
Actual Fund Return is based on the fund's actual return and expenses. To
estimate the ongoing expenses you paid during the entire period shown, simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number shown for your
fund under the column "Expenses Paid during the Period".
Hypothetical 5% Return is based on the fund's actual expense ratio and an
assumed rate of 5% per year before expenses. Please note that the return used
is not the fund's actual return; therefore, this information may not be used to
estimate your actual ending balance and expenses paid during the period. To
compare your fund's ongoing expenses with those of other funds, simply compare
this 5% hypothetical example with the 5% hypothetical examples shown in the
shareholder reports of other funds.
====================================================================================
Beginning Ending Expenses
Account Account Paid Annualized
Six months ended Value Value during Expense
12/31/04 6/30/04 12/31/04 Period* Ratio
- ------------------------------------------------------------------------------------
Actual Fund Return
- ------------------------------------------------------------------------------------
Class A $1,000 $1,073.23 $5.81 1.12%
- ------------------------------------------------------------------------------------
Class B(1) $1,000 $1,069.04 $9.41 1.82%
- ------------------------------------------------------------------------------------
Class B $1,000 $1,075.84 $4.26 0.82%
- ------------------------------------------------------------------------------------
Class C $1,000 $1,069.92 $9.42 1.82%
- ------------------------------------------------------------------------------------
Class S $1,000 $1,074.19 $4.25 0.82%
- ------------------------------------------------------------------------------------
Hypothetical 5% Return
- ------------------------------------------------------------------------------------
Class A $1,000 $1,019.40 $5.65 1.12%
- ------------------------------------------------------------------------------------
Class B(1) $1,000 $1,015.90 $9.17 1.82%
- ------------------------------------------------------------------------------------
Class B $1,000 $1,020.90 $4.14 0.82%
- ------------------------------------------------------------------------------------
Class C $1,000 $1,015.90 $9.17 1.82%
- ------------------------------------------------------------------------------------
Class S $1,000 $1,020.90 $4.14 0.82%
* Expenses are equal to the fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in
the period and then divided by the number of days in the year.
Please note that the expenses shown in the table are meant to highlight and
help you compare ongoing costs only and do not reflect transactional expenses
such as sales charges, which would result in higher total expenses. It should
also be noted that, for certain funds, expenses have been subsidized or reduced
through expense offset arrangements, which reduces costs for shareholders.
Generally, the fund expects that the expense subsidy or expense offset
arrangement will continue although there is no guarantee that it will. Please
see the fund's prospectus for more information.
State Street Research Investment Trust 5
- -----------------
PORTFOLIO
- -----------------
Holdings
December 31, 2004
Issuer Shares Value
- -----------------------------------------------------------------------------------------------------------------
Common Stocks 98.6%
Consumer Discretionary 16.6%
Casinos/Gambling, Hotel/Motel 1.0%
International Game Technology Inc.^ .................................... 401,800 $ 13,813,884
--------------
Commercial Services 1.7%
Accenture Ltd.* ........................................................ 608,300 16,424,100
IAC/InterActiveCorp*^ .................................................. 315,600 8,716,872
--------------
25,140,972
--------------
Communications, Media & Entertainment 3.8%
News Corp.^ ............................................................ 1,439,600 27,640,320
Time Warner Inc.* ...................................................... 1,377,400 26,776,656
--------------
54,416,976
--------------
Consumer Electronics 1.5%
Yahoo! Inc.* ........................................................... 577,700 21,767,736
--------------
Restaurants 1.6%
McDonald's Corp. ....................................................... 728,100 23,342,886
--------------
Retail 5.9%
Circuit City Stores Inc.^ .............................................. 643,800 10,069,032
Home Depot Inc. ........................................................ 568,950 24,316,923
Kohl's Corp.* .......................................................... 303,800 14,937,846
Staples Inc. ........................................................... 544,300 18,348,353
Target Corp. ........................................................... 335,800 17,438,094
--------------
85,110,248
--------------
Shoes 1.1%
Nike Inc. Cl. B ........................................................ 176,800 16,033,992
--------------
Total Consumer Discretionary ................................................................... 239,626,694
--------------
Consumer Staples 7.6%
Beverages 1.6%
PepsiCo Inc. ........................................................... 445,700 23,265,540
--------------
Drug & Grocery Store Chains 1.8%
CVS Corp. .............................................................. 555,800 25,049,906
--------------
Foods 1.1%
Kellogg Co. ............................................................ 336,300 15,019,158
--------------
Household Products 1.6%
Procter & Gamble Co. ................................................... 425,500 23,436,540
--------------
Tobacco 1.5%
Altria Group Inc. ...................................................... 362,600 22,154,860
--------------
Total Consumer Staples ......................................................................... 108,926,004
--------------
Financial Services 16.9%
Banks & Savings & Loan 4.3%
Bank of America Corp. .................................................. 405,100 19,035,649
Goldman Sachs Group Inc. ............................................... 146,500 15,241,860
JPMorgan Chase & Co. ................................................... 440,400 17,180,004
North Fork Bancorp Inc. ................................................ 354,150 10,217,228
--------------
61,674,741
--------------
Issuer Shares Value
- -----------------------------------------------------------------------------------------------------------------
Insurance 2.7%
Allstate Corp. ......................................................... 147,800 $ 7,644,216
American International Group Inc. ...................................... 352,351 23,138,890
Prudential Financial Inc. .............................................. 143,700 7,897,752
--------------
38,680,858
--------------
Miscellaneous Financial 7.2%
AMBAC Financial Group Inc. ............................................. 91,900 7,547,747
American Express Co. ................................................... 397,800 22,423,986
CIT Group Inc. ......................................................... 513,600 23,533,152
Citigroup Inc. ......................................................... 523,400 25,217,412
SLM Corp. .............................................................. 316,900 16,919,291
Willis Group Holdings Ltd.^ ............................................ 195,931 8,066,479
--------------
103,708,067
--------------
Securities Brokerage & Services 2.7%
Franklin Resources Inc. ................................................ 240,450 16,747,342
Lehman Brothers Holdings Inc. .......................................... 254,900 22,298,652
--------------
39,045,994
--------------
Total Financial Services ....................................................................... 243,109,660
--------------
Health Care 12.7%
Drugs & Biotechnology 9.4%
Amgen Inc.* ............................................................ 326,700 20,957,805
Baxter International Inc. .............................................. 518,500 17,908,990
Johnson & Johnson Inc. ................................................. 344,000 21,816,480
Merck & Co. Inc. ....................................................... 408,300 13,122,762
Novartis AG ADR ........................................................ 689,200 34,832,168
Pfizer Inc. ............................................................ 577,625 15,532,336
Wyeth .................................................................. 266,800 11,363,012
--------------
135,533,553
--------------
Health Care Services 2.6%
Aetna Inc. ............................................................. 60,500 7,547,375
Caremark Rx Inc.* ...................................................... 547,100 21,572,153
UnitedHealth Group Inc. ................................................ 85,000 7,482,550
--------------
36,602,078
--------------
Hospital Supply 0.7%
Guidant Corp. .......................................................... 140,600 10,137,260
--------------
Total Health Care .............................................................................. 182,272,891
--------------
Integrated Oils 2.1%
Integrated International 2.1%
Exxon Mobil Corp. ...................................................... 432,200 22,154,572
Total SA ADR^ .......................................................... 70,100 7,699,784
--------------
Total Integrated Oils .......................................................................... 29,854,356
--------------
Materials & Processing 7.1%
Agriculture 0.8%
Monsanto Co.^ .......................................................... 200,300 11,126,665
--------------
Chemicals 4.0%
Dow Chemical Co. ....................................................... 339,100 16,788,841
Lyondell Chemical Co. .................................................. 189,700 5,486,124
Praxair Inc. ........................................................... 433,900 19,156,685
Sherwin-Williams Co. ................................................... 360,400 16,084,652
--------------
57,516,302
--------------
Forest Products 0.8%
Weyerhaeuser Co.^ ...................................................... 171,000 11,494,620
--------------
Gold & Precious Metals 1.0%
Newmont Mining Corp.^ .................................................. 346,080 15,369,413
--------------
Paper & Forest Products 0.5%
International Paper Co. ................................................ 175,700 7,379,400
--------------
Total Materials & Processing ................................................................... 102,886,400
--------------
6 The notes are an integral part of the financial statements.
Issuer Shares Value
- ---------------------------------------------------------------------------------------------------------
Other 8.2%
Multi-Sector 8.2%
General Electric Co. ..................................................... 1,460,400 $ 53,304,600
ITT Industries Inc.^ ..................................................... 240,300 20,293,335
Tyco International Ltd. .................................................. 1,257,000 44,925,180
--------------
Total Other ............................................................................ 118,523,115
--------------
Other Energy 4.7%
Miscellaneous Energy 0.9%
CONSOL Energy Inc.^ ...................................................... 332,800 13,661,440
--------------
Oil & Gas Producers 2.0%
EOG Resources Inc. ....................................................... 286,600 20,451,776
Newfield Exploration Co.*^ ............................................... 135,300 7,989,465
--------------
28,441,241
--------------
Oil Well Equipment & Services 1.8%
Nabors Industries Ltd.* .................................................. 174,700 8,960,363
Schlumberger Ltd. ........................................................ 250,700 16,784,365
--------------
25,744,728
--------------
Total Other Energy ..................................................................... 67,847,409
--------------
Producer Durables 0.6%
Homebuilding 0.6%
Pulte Corp. .............................................................. 142,200 9,072,360
--------------
Total Producer Durables ................................................................ 9,072,360
--------------
Technology 14.9%
Communications Technology 2.8%
Cisco Systems Inc.* ...................................................... 695,700 13,427,010
Motorola Inc. ............................................................ 570,300 9,809,160
QUALCOMM Inc. ............................................................ 398,600 16,900,640
--------------
40,136,810
--------------
Computer Software 5.3%
Microsoft Corp. .......................................................... 1,863,300 49,768,743
Oracle Corp.* ............................................................ 1,994,000 27,357,680
--------------
77,126,423
--------------
Computer Technology 3.1%
Dell Inc.* ............................................................... 425,500 17,930,570
International Business Machines Corp. 268,600 26,478,588
--------------
44,409,158
--------------
Electronics 2.2%
General Dynamics Corp. ................................................... 132,400 13,849,040
Raytheon Co. ............................................................. 456,200 17,714,246
--------------
31,563,286
--------------
Electronics: Semiconductors/Components 1.5%
Intel Corp. .............................................................. 897,300 20,987,847
Taiwan Semiconductor Manufacturing
Co. Ltd.^ .............................................................. 2 17
--------------
20,987,864
--------------
Total Technology ....................................................................... 214,223,541
--------------
Utilities 7.2%
Cable Television & Radio 1.9%
Comcast Corp.* ........................................................... 827,200 27,165,248
--------------
Telecommunications 5.3%
Nextel Communications Inc. Cl. A* ........................................ 700,700 21,021,000
Sprint Corp. ............................................................. 903,100 22,442,035
Verizon Communications Inc. .............................................. 469,200 19,007,292
Vodafone Group plc ADR ................................................... 538,100 14,733,178
--------------
77,203,505
--------------
Total Utilities ........................................................................ 104,368,753
--------------
Total Common Stocks (Cost $1,042,569,367) .............................................. 1,420,711,183
--------------
Issuer Shares Value
- -------------------------------------------------------------------------------
Short-Term Investments 3.7%
State Street Navigator
Securities Lending Prime Portfolio ......... 53,465,159 $ 53,465,159
--------------
Total Short-Term Investments (Cost $53,465,159) ............. 53,465,159
--------------
Maturity Amount of
Date Principal
----------- --------------
Commercial Paper 1.6%
UBS Finance Inc., 2.20% ..... 1/03/2005 $ 4,764,000 4,763,418
UBS Finance Inc., 2.39% ..... 1/04/2005 8,114,000 8,112,384
UBS Finance Inc., 2.37% ..... 1/05/2005 10,000,000 9,997,366
--------------
Total Commercial Paper (Cost $22,873,168) ................ 22,873,168
--------------
% of
Net Assets
------------
Summary of Portfolio Assets
Investments (Cost $1,118,907,694) ......... 103.9% 1,497,049,510
Other Assets, Less Liabilities ............ (3.9%) (55,916,593)
----- -------------
Net Assets ................................ 100.0% $1,441,132,917
===== ==============
* Denotes a security which has not paid a dividend during the last year.
^ All or a portion of this security is being held on loan. As of December 31,
2004, the value of securities loaned was $52,028,600.
ADR Stands for American Depositary Receipt.
Federal Income Tax Information
At December 31, 2004, the net unrealized
appreciation of investments based on cost for federal
income tax purposes of $1,119,213,532 was as
follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value over
tax cost $378,450,994
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value (615,016)
------------
$377,835,978
============
The notes are an integral part of the financial statements.
State Street Research Investment Trust 7
- -----------------
FINANCIAL
- -----------------
Statements
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
December 31, 2004
Assets
Investments, at value (Cost $1,118,907,694) (Note 1) ..... $1,497,049,510
Receivable for securities sold ........................... 4,119,437
Dividends receivable ..................................... 2,002,729
Receivable for fund shares sold .......................... 111,073
Other assets ............................................. 33,481
--------------
1,503,316,230
--------------
Liabilities
Payable for collateral received on securities loaned ..... 53,465,159
Payable for fund shares redeemed ......................... 5,861,293
Accrued transfer agent and shareholder services .......... 1,358,984
Accrued management fee ................................... 669,546
Accrued distribution and service fees .................... 398,351
Payable to custodian ..................................... 249,918
Accrued administration fee ............................... 10,407
Accrued trustees' fee .................................... 6,159
Other accrued expenses ................................... 163,496
--------------
62,183,313
--------------
Net Assets ............................................... $1,441,132,917
==============
Net Assets consist of:
Undistributed net investment income .................... $ 655,370
Unrealized appreciation of investments ................. 378,141,816
Accumulated net realized loss .......................... (312,390,359)
Paid in capital ........................................ 1,374,726,090
--------------
$1,441,132,917
==============
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 [divided by] Number of Shares = NAV
A $439,925,054 43,652,086 $10.08*
B(1) $258,084,711 26,880,290 $ 9.60**
B $174,040,226 17,699,588 $ 9.83**
C $ 25,509,504 2,647,584 $ 9.64**
S $543,573,422 53,222,363 $10.21
* Maximum offering price per share = $10.69 ($10.08 [divided by] 0.9425)
** When you sell Class B(1), Class B or Class C shares, you receive the net
asset value minus deferred sales charge, if any.
Statement of Operations
- --------------------------------------------------------------------------------
For the year ended December 31, 2004
Investment Income
Dividends, net of foreign taxes of $152,489
(Note 1) ............................................... $ 23,699,184
Interest (Note 1) ........................................ 364,423
Securities lending income (Note 1) ....................... 108,528
------------
24,172,135
------------
Expenses
Management fee (Note 2) .................................. 7,270,745
Transfer agent and shareholder services (Note 2) ......... 3,944,404
Distribution and service fees - Class A (Note 4) ......... 1,276,280
Distribution and service fees - Class B(1) (Note 4) ...... 2,580,539
Distribution and service fees - Class C (Note 4) ......... 277,310
Custodian fee ............................................ 378,890
Reports to shareholders .................................. 300,470
Administration fee (Note 2) .............................. 110,725
Registration fees ........................................ 63,000
Trustees' fees (Note 2) .................................. 61,721
Audit fee ................................................ 29,736
Legal fees ............................................... 9,790
Miscellaneous ............................................ 138,129
------------
16,441,739
Fees paid indirectly (Note 2) ............................ (115,878)
------------
16,325,861
------------
7,846,274
Reimbursement of distribution fees (Note 4) .............. 271,697
------------
Net investment income .................................... 8,117,971
------------
Realized and Unrealized Gain (Loss) on
Investments
Net increase from payments by affiliate (Note 2) ......... 1,125,840
Net realized gain on investments (Notes 1 and 3) ......... 178,154,255
Change in unrealized depreciation of investments ......... (46,838,258)
------------
Net gain on investments .................................. 132,441,837
------------
Net increase in net assets resulting from operations ..... $140,559,808
============
8 The notes are an integral part of the financial statements.
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
Years ended December 31
-------------------------------------
2004 2003
-------------------------------------
Increase (Decrease) In Net Assets
Operations:
Net investment income ............. $ 8,117,971 $ 3,618,270
Net increase from payment
by affiliate .................... 1,125,840 --
Net realized gain on
investments ..................... 178,154,255 45,684,153
Change in unrealized
appreciation
(depreciation) of
investments ..................... (46,838,258) 322,089,172
-------------------------------------
Net increase resulting
from operations ................. 140,559,808 371,391,595
-------------------------------------
Dividends from net
investment income:
Class A ......................... (2,180,866) --
Class B ......................... (3,286,640) --
Class S ......................... (5,573,760) (1,876,380)
-------------------------------------
(11,041,266) (1,876,380)
-------------------------------------
Net decrease from fund share
transactions (Note 6) ........... (229,829,122) (223,775,410)
-------------------------------------
Total increase (decrease) in
net assets ...................... (100,310,580) 145,739,805
Net Assets
Beginning of year ................. 1,541,443,497 1,395,703,692
-------------------------------------
End of year (including
undistributed net investment
income of $655,370 and
$3,567,851, respectively) ......... $1,441,132,917 $1,541,443,497
=====================================
Notes to Financial Statements
- --------------------------------------------------------------------------------
December 31, 2004
Note 1
State Street Research Investment Trust is a series of State Street Research
Master Investment Trust (the "Trust"), which is organized as a Massachusetts
business trust, and is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company.
The investment objective of the fund is long-term growth of capital and,
secondarily, long-term growth of income. Under normal market conditions, the
fund invests at least 65% of its net assets in stocks and convertible securities
that have long-term growth potential. In seeking to achieve its investment
objective, the fund generally attempts to identify the industries that over the
long term will grow faster than the economy as a whole.
The fund offers five classes of shares. 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% of average daily net assets and automatically convert
into Class A shares (which pay lower ongoing expenses) at the end of eight
years. Class B(1) shares are subject to a contingent deferred sales charge on
certain redemptions made within six years of purchase. Class B shares are
offered only to current shareholders through reinvestment of dividends and
distributions or through exchanges from existing Class B accounts of State
Street Research funds. For the period January 1, 2004 through September 30,
2004, the annual service and distribution fees paid by Class B shares had been
voluntarily reduced to 0.00%. For the period from October 1, 2004, through
December 31, 2004, the annual service and distribution fees paid by Class B
shares are 0.25%. Class B shares automatically convert into Class A shares at
the end of eight years. Class B shares are subject to a contingent deferred
sales charge on certain redemptions made within five years of purchase. 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 also pay annual service and
distribution fees of 1.00% of average daily net assets. Class S shares are only
offered through certain retirement accounts, advisory accounts of State Street
Research & Management Company (the "Adviser"), an investment management
subsidiary of MetLife, Inc. ("MetLife"), 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. The fund's expenses are
borne prorata by each class, except that each class bears expenses, and has
exclusive voting rights with respect to provisions of the plans of distribution,
related specifically to that class. Income, expenses (other than service and
distribution fees), and realized and unrealized gains or losses on investments
are allocated to each class of shares based on its relative net assets. The
Trustees declare separate dividends on each class of shares.
The following significant accounting policies are consistently followed by the
fund in preparing its financial statements, and such policies are in conformity
with accounting principles generally accepted in the United States of America.
A. Investment Valuation
Values for listed equity securities reflect final sales 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 closing prices
supplied through such system. If not quoted on the Nasdaq system, such
securities are valued at prices obtained from independent brokers. In the
absence of recorded sales, valuations are at the mean of the closing bid and
asked quotations. Short-term securities maturing within sixty days are valued at
amortized cost. Other securities, if any, are valued at their fair value as
determined in good faith under consistently applied procedures established by
and under the supervision of the Trustees. In the event that the market
quotations for a portfolio instrument are not deemed to be readily available,
the Adviser's Valuation Committee determines the fair value for such portfolio
instrument. The fair value of any such portfolio instruments are determined
based upon a consideration of all available facts and information. The fair
valuation of a restricted portfolio instrument reflects the inherent worth of
the portfolio instrument, without regard to the restrictive feature, adjusted
for
The notes are an integral part of the financial statements.
State Street Research Investment Trust 9
Notes (continued)
- --------------------------------------------------------------------------------
any diminution in value resulting from the restrictive feature. The Adviser and
the custodian also monitor domestic and foreign markets and news information for
any developing events that may have an impact on the valuation of portfolio
instruments. Such monitoring includes general market news and financial market
information sources currently utilized in making investment decisions, trading
and investment personnel located abroad, foreign regional brokers, and/or
foreign custodians. The value assigned to these securities is based upon
available information at the time, and does not necessarily represent the amount
which might ultimately be realized upon sale.
B. Security Transactions
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). Realized gains or losses are reported on the basis of
identified cost of securities delivered. 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
restriction to cover any advances made by the custodian bank for the settlement
of securities purchased by the fund. At December 31, 2004, the payable to the
custodian bank of $249,918 represents the amount due for cash advances for the
settlement of securities purchased.
C. Net Investment Income
Net investment income is determined daily and consists of interest and dividends
accrued and discount earned, less the estimated daily expenses of the fund.
Interest income is accrued daily as earned. Dividend income is accrued on the
ex-dividend date.
D. Dividends
Dividends from net investment income are normally declared and paid or
reinvested annually. Net realized capital gains, if any, are distributed
annually, unless additional distributions are required for compliance with
applicable tax regulations. The fund has designated $11,041,266 as ordinary
income dividends and $0 as long-term capital gains distributions.
Income dividends and capital gains distributions are determined in accordance
with federal income tax regulations which may differ from accounting principles
generally accepted in the United States of America. The difference is primarily
due to differing treatments for wash sale deferrals.
E. Federal Income Taxes
No provision for federal income taxes is necessary because the fund has elected
to qualify under Subchapter M of the Internal Revenue Code and its policy is to
distribute all of its taxable income, including net realized capital gains,
within the prescribed time periods.
At December 31, 2004, the fund had a capital loss carryforward of $310,580,746
available, to the extent provided in regulations, to offset future capital
gains, if any, which expires on December 31, 2010.
To the extent book/tax differences are permanent in nature, such amounts are
reclassified within the capital accounts based on federal tax basis treatment.
The fund reclassified for book purposes amounts arising from permanent book/tax
differences primarily relating to dispositions of securities that have different
bases for financial reporting and tax purposes. At December 31, 2004, the
components of distributable earnings on a tax basis differ from the amounts
reflected in the Statement of Assets and Liabilities by temporary book/tax
differences largely arising from wash sales, and capital loss carryforwards. At
December 31, 2004, the tax basis distributable earnings were $655,370 in
undistributed ordinary income, $0 in undistributed short-term capital gains and
$0 in undistributed long-term gains.
F. Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 these estimates.
G. Securities Lending
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 and losses. If
the borrower fails to return the securities and the value of the collateral has
declined during the term of the loan, the fund will bear the loss. At December
31, 2004, the value of the securities loaned and the value of collateral were
$52,028,600 and $53,465,159 (consisting entirely of cash collateral invested in
State Street Navigator Securities Lending Prime Portfolio), respectively. The
collateral was marked to market the next business day and made equal to at least
100% of the current market value of the loaned securities and accrued interest.
During the year ended December 31, 2004, income from securities lending amounted
to $108,528.
Note 2
The Trust and the Adviser have entered into an agreement under which the Adviser
earns monthly fees at an annual rate of 0.55% of the first $500 million of net
assets annually, 0.50% of the next $500 million, and 0.45% of any amount over $1
billion. In consideration of these fees, the Adviser furnishes the fund with
management, investment advisory, statistical and research facilities and
services. The Adviser also pays all salaries, rent and certain other expenses of
management. During the year ended December 31, 2004, the fees pursuant to such
agreement amounted to $7,270,745.
State Street Research Service Center, a division of State Street Research
Investment Services, Inc., the Trust's principal underwriter (the
"Distributor"), provides certain shareholder services to the fund such as
responding to inquiries and instructions from investors with respect to the
purchase and redemption of shares of the fund. In addition, MetLife receives a
fee for maintenance of the accounts of certain shareholders who are participants
in sponsored arrangements, such as employee benefit plans, through or under
which shares of the fund may be purchased. Total shareholder service costs are
allocated to each fund in the same ratios as the transfer agent costs. During
the year ended December 31, 2004, the amount of such expenses allocated to the
fund was $1,072,422.
The fund has entered into an arrangement with its custodian whereby credits
realized as a result of directed brokerage commissions were used to reduce a
portion of the fund's expenses. During the year ended December 31, 2004, the
fund's custodian fees were reduced by $115,878 under this arrangement.
The fees of the Trustees not currently affiliated with the Adviser amounted to
$61,721 during the year ended December 31, 2004.
The fund has agreed to pay the Adviser for certain administrative costs incurred
in providing other assistance and services to the fund. The fee was based on a
fixed amount that has been allocated equally among the State Street Research
funds. During the year ended December 31, 2004, the amount of such expenses was
$110,725.
During the year ended December 31, 2004, the Adviser conducted an internal
review regarding the use of fund brokerage commissions in consideration of the
distribution of shares. In connection with this review, the Adviser determined
to reimburse the fund the entire amount of any such identified brokerage
commissions, and reviewed this matter with the Trustees of the fund. The
reimbursement was allocated among the fund's shares classes as follows: $338,360
to Class A; $198,252 to Class B(1); $137,911 to Class B; $19,934 to Class C; and
$420,569 to Class S. These amounts are shown in the total amount of $1,115,026
as "Net increase from payment by affiliate" on the Statement of Operations.
On February 19, 2004, the Distributor entered into an agreement with the NASD
resolving all outstanding issues relating to an investigation by the NASD of the
Distributor's email retention practices and supervision of trading activity in
shares of the State Street Research funds. The Distributor, without admitting or
denying the allegations or the findings set forth in the agreement, and solely
for the purposes of the settlement, agreed to the entry of certain findings by
the NASD relating to the Distributor's compliance with document retention
requirements and the Distributor's supervision of enforcement of shareholder
exchange limitations set forth in the funds' prospectuses. The agreement
contains no allegations or findings of fraudulent conduct by the Distributor. As
part of this agreement the Distributor made a payment to the fund to compensate
the fund for losses relating to the exchange of fund shares beyond the annual
limit set forth in the fund's prospectus. The payment was allocated among the
fund's share classes as follows: $3,110 to Class A; $1,922 to Class B(1); $1,632
to Class B; $214 to Class C and $3,936 to Class S. These amounts are shown in
the total amount of $10,814 as "Net increase from payment by affiliate" in the
Statement of Operations.
Note 3
For the year ended December 31, 2004, purchases and sales of securities,
exclusive of short-term obligations, aggregated $1,212,751,979, and
$1,459,666,224, respectively.
10
Note 4
The Trust has adopted plans of distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940. Under the plans, the fund pays annual service
fees to the Distributor at a rate of 0.25% of average daily net assets for Class
A, Class B(1), Class B and Class C shares. In addition, the fund pays annual
distribution fees of 0.05% of average daily net assets for Class A shares . The
fund pays annual distribution fees of 0.75% of average daily net assets for
Class B(1), Class B and Class C shares. For the period January 1, 2004 through
September 30, 2004, the annual service and distribution fees paid by the Class B
shares had been voluntarily reduced to 0.00%. For the period from October 1,
2004, through December 31, 2004, the annual service and distribution fees paid
by Class B shares was 0.25%. The Distributor uses such payments for personal
services and/or the maintenance 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 year ended December 31, 2004, fees pursuant to such plans amounted to
$1,276,280, $2,580,539 and $277,310 for Class A, Class B(1) and Class C shares,
respectively. 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 December 31, 2004, there were
$7,587,442, $61,730 and $2,773,860 for Class A, Class B and Class C shares,
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. During the year
ended December 31, 2004, the Distributor reimbursed a total of $383,809 to Class
B shares of the fund reflecting the estimated excess of payments received over
costs incurred under the plan. The gross reimbursement amount of $383,809 was
netted with the Class B distribution fee of $112,112. The net amount of $271,697
is shown as "Reimbursement of distribution fees" in the Statement of Operations.
The fund has been informed that the Distributor and MetLife Securities, Inc., a
wholly owned subsidiary of MetLife, earned initial sales charges aggregating
$286,209 and $1,563,803, respectively, on sales of Class A shares of the fund
during the year ended December 31, 2004, and that MetLife Securities, Inc.
earned commissions aggregating $1,958,935 and $12,787 on sales of Class B(1) and
Class C shares, respectively, and the Distributor collected contingent deferred
sales charges aggregating $719,979, $1,355 and $629 on redemptions of Class
B(1), Class B and Class C shares, respectively, during the same period.
Note 5
Effective as of the close of business on January 28, 2005 (the "Reorganization
Date"), BlackRock Select Equity Portfolio (the "BlackRock Fund") acquired all of
the assets and certain stated liabilities of the fund. The acquisition was
accomplished by a tax-free exchange of 43,312,319; 26,457,053; 16,812,187;
2,547,405 and 52,135,357 Class A, B(1), B, C and S shares, respectively, of the
fund for 33,699,680; 20,445,290; 12,763,488; 1,973,602 and 40,671,685 Class A,
B, A, C and Institutional shares, respectively, of the BlackRock Fund
outstanding on the Reorganization Date. The fund's net assets of that date
valued at $1,363,402,302, including net unrealized appreciation of investments
of $325,455,127, were combined with those of the BlackRock Fund. All shares were
exchanged at net asset value.
Note 6
The Trustees have the authority to issue an unlimited number of shares of
beneficial interest at $0.001 par value per share. These transactions break down
by share class as follows:
Years ended December 31
-------------------------------------------------------------
2004 2003
-------------------------------------------------------------
Class A Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Shares sold 7,777,402 $ 72,437,625 11,468,717 $ 88,009,193
Issued upon reinvestment of dividend from net investment income 215,060 2,106,735 -- --
Shares redeemed (10,619,672) (99,155,724) (19,334,342) (145,675,277)
----------- ------------ ----------- -------------
Net decrease (2,627,210) $(24,611,364) (7,865,625) $ (57,666,084)
=========== ============ =========== =============
Class B(1) Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Shares sold 1,557,302 $ 13,790,796 2,971,390 $ 22,284,050
Shares redeemed (5,767,580) (51,103,858) (6,814,102) (49,569,001)
----------- ------------ ----------- -------------
Net decrease (4,210,278) $(37,313,062) (3,842,712) $ (27,284,951)
=========== ============ =========== =============
Class B Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Shares sold 84,836 $ 772,590 521,526 $ 3,987,610
Issued upon reinvestment of dividend from net investment income 328,939 3,138,258 -- --
Shares redeemed (10,819,289) (99,254,421) (10,778,170) (81,546,511)
----------- ------------ ----------- -------------
Net decrease (10,405,514) $(95,343,573) (10,256,644) $ (77,558,901)
=========== ============ =========== =============
Class C Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Shares sold 107,171 $ 954,537 202,046 $ 1,546,464
Shares redeemed (998,214) (8,903,368) (1,292,549) (9,623,519)
----------- ------------ ----------- -------------
Net decrease (891,043) $ (7,948,831) (1,090,503) $ (8,077,055)
=========== ============ =========== =============
Class S Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Shares sold 467,698 $ 4,448,303 1,107,804 $ 8,683,091
Issued upon reinvestment of dividend from net investment income 289,713 2,867,141 131,922 923,795
Shares redeemed (7,549,863) (71,927,736) (7,917,272) (62,795,305)
----------- ------------ ----------- -------------
Net decrease (6,792,452) $(64,612,292) (6,677,546) $ (53,188,419)
=========== ============ =========== =============
State Street Research Investment Trust 11
- -----------------
FINANCIAL
- -----------------
Highlights
For a share outstanding throughout each year:
Class A
------------------------------------------------------------------
Years ended December 31
------------------------------------------------------------------
2004(a)(c)(d) 2003(a) 2002(a)(e) 2001(a)(e) 2000(a)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ($) 9.18 7.07 9.70 11.98 14.01
------ ----- ------- ------- ------
Net investment income (loss) ($) 0.05 0.01 0.01 (0.01) (0.00)
Net realized and unrealized gain (loss) on investments ($) 0.90 2.10 (2.64) (2.20) (0.78)
------ ----- ------- ------- ------
Total from investment operations ($) 0.95 2.11 (2.63) (2.21) (0.78)
------ ----- ------- ------- ------
Dividends from net investment income ($) (0.05) -- -- -- --
Distributions from capital gains ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Total distributions ($) (0.05) -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Net asset value, end of year ($) 10.08 9.18 7.07 9.70 11.98
====== ===== ======= ======= ======
Total return (%)(b) 10.35 29.84 (27.11) (18.44) (5.90)
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 439,925 424,723 382,598 654,911 846,485
Expense ratio (%) 1.15 1.21 1.11 1.11 0.94
Expense ratio after expense reductions (%) 1.14 1.21 1.10 1.10 0.93
Ratio of net investment income (loss) to average net assets (%) 0.54 0.16 0.16 (0.06) (0.02)
Portfolio turnover rate (%) 84.35 66.48 75.46 105.61 86.64
Class B(1)
--------------------------------------------------------------------
Years ended December 31
--------------------------------------------------------------------
2004(a)(c)(d) 2003(a) 2002(a)(e) 2001(a)(e) 2000(a)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ($) 8.76 6.79 9.40 11.68 13.79
------ ----- ------- ------- ------
Net investment loss ($) (0.02) (0.04) (0.04) (0.08) (0.10)
Net realized and unrealized gain (loss) on investments ($) 0.86 2.01 (2.57) (2.13) (0.76)
------ ----- ------- ------- ------
Total from investment operations ($) 0.84 1.97 (2.61) (2.21) (0.86)
------ ----- ------- ------- ------
Distributions from capital gains ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Total distributions ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Net asset value, end of year ($) 9.60 8.76 6.79 9.40 11.68
====== ====== ======= ======= ======
Total return (%)(b) 9.59 29.01 (27.77) (18.92) (6.58)
Ratios/Supplemental Data:
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 258,085 272,369 237,325 402,415 473,407
Expense ratio (%) 1.85 1.91 1.81 1.81 1.66
Expense ratio after expense reductions (%) 1.84 1.91 1.80 1.80 1.65
Ratio of net investment loss to average net assets (%) (0.17) (0.54) (0.54) (0.76) (0.73)
Portfolio turnover rate (%) 84.35 66.48 75.46 105.61 86.64
Class B
--------------------------------------------------------------------
Years ended December 31
--------------------------------------------------------------------
2004(a)(c)(d)(f) 2003(a)(f) 2002(a)(e) 2001(a)(e) 2000(a)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ($) 9.03 6.91 9.48 11.75 13.80
------ ----- ------- ------- ------
Net investment income (loss) ($) 0.08 0.04 0.01 (0.04) (0.04)
Net realized and unrealized gain (loss) on investments ($) 0.89 2.08 (2.58) (2.16) (0.76)
------ ----- ------- ------- ------
Total from investment operations ($) 0.97 2.12 (2.57) (2.20) (0.80)
------ ----- ------- ------- ------
Dividends from net investment income ($) (0.17) -- -- -- --
Distributions from capital gains ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Total distributions ($) (0.17) -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Net asset value, end of year ($) 9.83 9.03 6.91 9.48 11.75
====== ====== ======= ======= ======
Total return (%)(b) 10.83 30.68 (27.11) (18.72) (6.14)
Ratios/Supplemental Data:
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 174,040 253,829 264,947 549,661 887,018
Expense ratio (%) 0.85 0.91 1.13 1.49 1.23
Expense ratio after expense reductions (%) 0.84 0.91 1.12 1.48 1.22
Ratio of net investment income (loss) to average net assets (%) 0.90 0.47 0.08 (0.43) (0.31)
Portfolio turnover rate (%) 84.35 66.48 75.46 105.61 86.64
12
Class C
--------------------------------------------------------------------
Years ended December 31
--------------------------------------------------------------------
2004(a)(c)(d) 2003(a) 2002(a)(e) 2001(a)(e) 2000(a)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ($) 8.79 6.82 9.43 11.72 13.83
------ ----- ------- ------- ------
Net investment loss ($) (0.02) (0.04) (0.04) (0.08) (0.10)
Net realized and unrealized gain (loss) on investments ($) 0.87 2.01 (2.57) (2.14) (0.76)
------ ----- ------- ------- ------
Total from investment operations ($) 0.85 1.97 (2.61) (2.22) (0.86)
------ ----- ------- ------- ------
Distributions from capital gains ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Total distributions ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Net asset value, end of year ($) 9.64 8.79 6.82 9.43 11.72
====== ====== ======= ======= ======
Total return (%)(b) 9.67 28.89 (27.68) (18.94) (6.56)
Ratios/Supplemental Data:
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 25,510 31,112 31,558 64,297 92,373
Expense ratio (%) 1.85 1.91 1.81 1.81 1.66
Expense ratio after expense reductions (%) 1.84 1.91 1.80 1.80 1.65
Ratio of net investment loss to average net assets (%) (0.20) (0.54) (0.55) (0.76) (0.73)
Portfolio turnover rate (%) 84.35 66.48 75.46 105.61 86.64
Class S
--------------------------------------------------------------------
Years ended December 31
--------------------------------------------------------------------
2004(a)(c)(d) 2003(a) 2002(a)(e) 2001(a)(e) 2000(a)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ($) 9.32 7.19 9.84 12.10 14.10
------ ----- ------- ------- ------
Net investment income ($) 0.08 0.04 0.04 0.03 0.04
Net realized and unrealized gain (loss) on investments ($) 0.91 2.12 (2.69) (2.22) (0.79)
------ ----- ------- ------- ------
Total from investment operations ($) 0.99 2.16 (2.65) (2.19) (0.75)
------ ----- ------- ------- ------
Dividends from net investment income ($) (0.10) (0.03) -- -- --
Distributions from capital gains ($) -- -- -- (0.07) (1.25)
------ ----- ------- ------- ------
Total distributions ($) (0.10) (0.03) -- (0.07) (1.25)
------ ----- ------- ------- ------
Net asset value, end of year ($) 10.21 9.32 7.19 9.84 12.10
====== ====== ======= ======= ======
Total return (%)(b) 10.68 30.16 (26.93) (18.09) (5.64)
Ratios/Supplemental Data:
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ($ thousands) 543,573 559,410 479,275 753,064 1,006,378
Expense ratio (%) 0.85 0.91 0.81 0.81 0.66
Expense ratio after expense reductions (%) 0.84 0.91 0.80 0.80 0.65
Ratio of net investment income to average net assets (%) 0.83 0.46 0.46 0.24 0.26
Portfolio turnover rate (%) 84.35 66.48 75.46 105.61 86.64
(a) Per-share figures have been calculated using the average shares method.
(b) Does not reflect any front-end or contingent deferred sales charges.
(c) During the year ended December 31, 2004, the distributor made restitution
payments to the fund as part of a settlement with NASD. These payments had
no effect on net realized and unrealized gain on investments per share.
(d) During the year ended December 31, 2004, the adviser reimbursed the fund as
part of an internal review regarding the use of fund brokerage commissions.
This payment increased net realized and unrealized gain on investments per
share by $0.01, and increased total return by 0.11%.
(e) Audited by other auditors
(f) During the years ended December 31, 2003 and December 31, 2004, the
distributor reimbursed Class B shares of the fund the estimated excess of
payments received over costs incurred under the 12b-1 plan. The effect of
this reimbursement was to increase net investment income per share $0.03
and $0.02, respectively, increase the total return 0.40% and 0.22%,
respectively and increase the ratio of net investment income to average net
assets 0.40% and 0.19%, respectively.
State Street Research Investment Trust 13
- ---------
REPORT OF
- ---------
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of State Street Research Investment Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio holdings, of State Street Research Investment Trust (the "Fund"),
a series of State Street Research Master Investment Trust, as of December 31,
2004, and the related statement of operations for the year then ended, and the
statement of changes in net assets, and the financial highlights for each of the
two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for each of the years in the
three-year period ended December 31, 2002, were audited by other auditors whose
report dated February 12, 2003, expressed an unqualified opinion on such
financial highlights.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of December 31, 2004, by
correspondence with the custodian. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Fund as of December 31, 2004, the results of its operations for the year then
ended, and the changes in its net assets and the financial highlights for each
of the two years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 25, 2005
14
- ---------
REPORT ON
- ---------
Special Meeting of Shareholders
A Special Meeting of Shareholders of the State Street Research Investment
Trust, a series of State Street Research Master Investment Trust, was convened
on December 27, 2004 ("Meeting"). The results of the Meeting are set forth
below.
Votes (millions of shares)
--------------------------------
Action on Proposal For Against Abstain
- ----------------------------------------------------------------------------------------
For All Classes of Investment Trust
To approve an Agreement and Plan of Reorganization
providing for the acquisition of all of the assets
and certain stated liabilities of the State Street
Research Investment Trust, a series of State
Street Research Master Investment Trust, by the
BlackRock Select Equity Portfolio, a series of
BlackRock Funds ........................................ 74.8 5.4 5.3
State Street Research Investment Trust 15
- ---------------------
TRUSTEES AND OFFICERS
- ---------------------
State Street Research Master Investment Trust
Number of Funds Other
Name, Position(s) Term of Office in Fund Complex Directorships
Address Held with and Length of Principal Occupations Overseen by Held by
and Age(a) Fund Time Served(b) During Past 5 Years Trustee/Officer(c) Trustee/Officer
===================================================================================================================================
Independent Trustees
Bruce R. Bond Trustee Since Retired; formerly Chairman of the 18 Avaya Inc.
(58) 1999 Board, Chief Executive Officer and
President, PictureTel Corporation
(video conferencing systems)
Retired, formerly Partner
PricewaterhouseCoopers LLP
- -----------------------------------------------------------------------------------------------------------------------------------
Peter S. Drotch Trustee Since Retired, formerly Partner 18 First Marblehead
(62) 2004 PricewaterhouseCoopers LLP Corp.
- -----------------------------------------------------------------------------------------------------------------------------------
Steve A. Garban Trustee Since Retired; formerly Senior Vice 52 Metropolitan
(67) 1997 President for Finance and Series Fund, Inc.;
Operations and Treasurer, The and Metropolitan
Pennsylvania State University Series Fund II The
Kroger Co.
- -----------------------------------------------------------------------------------------------------------------------------------
Susan M. Phillips Trustee Since Dean, School of Business and Public 18 The Kroger Co.
(60) 1998 Management, George 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 Rosenblatt Trustee Since President, Founders Investments 52 A.P. Pharma, Inc.;
Metropolitan Series
(66) 1990 Ltd. (investments); President, Fund, Inc.; and
Pacific Four Investments Metropolitan Series
(investments); formerly President, Fund II
The Glen Ellen Company (private
investment firm)
- -----------------------------------------------------------------------------------------------------------------------------------
Michael S. Trustee Since Jay W. Forrester Professor of 52 Metropolitan Series
Scott Morton (67) 1989 Management (Emeritus), Sloan School Fund, Inc.; and
of Management, Massachusetts Metropolitan Series
Institute of Technology Fund II
===================================================================================================================================
Interested Trustees
Richard S. Davis(+) Trustee Since Chairman of the Board, President 18 None
(59) 2000 and Chief Executive Officer of
State Street Research & Management
Company; formerly Senior Vice
President, Fixed Income
Investments, Metropolitan Life
Insurance Company
===================================================================================================================================
Officers
C. Kim Goodwin Vice Since Managing Director and Chief 17 Akamai
(45) President 2002 Investment Officer - Equities of Technologies, Inc.
State Street Research & Management
Company; formerly Chief Investment
Officer - U.S. Growth Equities,
American Century
- -----------------------------------------------------------------------------------------------------------------------------------
John S. Lombardo Vice Since Managing Director, Chief Financial 18 None
(50) President 2001 Officer and Director of State
Street Research & Management
Company; formerly Executive Vice
President, State Street Research &
Management Company; and Senior Vice
President, Product and Financial
Management, MetLife Auto & Home
- -----------------------------------------------------------------------------------------------------------------------------------
Gregory S. Markel Vice Since Senior Vice President of State 1 None
(41) President 2002 Street Research & Management
Company; formerly, Vice President,
State Street Research & Management
Company
- -----------------------------------------------------------------------------------------------------------------------------------
John T. Wilson (41) Vice Since Managing Director of State Street 1 None
President 1996 Research & Management Company;
formerly, Senior Vice President of
State Street Research & Management
Company
- -----------------------------------------------------------------------------------------------------------------------------------
Douglas A. Romich Treasurer Since Senior Vice President and Treasurer 18 None
(47) 2001 of State Street Research &
Management Company; formerly Vice
President and Assistant Treasurer,
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 serves as sole investment advisor and all
series of Metropolitan Series Fund, Inc. and Metropolitan Series Fund II.
The primary advisor to Metropolitan Series Fund, Inc. and Metropolitan
Series Fund II is MetLife Advisers, LLC, which has retained State Street
Research & Management Company as sub-advisor to certain series of
Metropolitan Series Fund, Inc.
(+) 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.
The Officers and Trustees set forth above were the officers and trustees of the
Fund as of December 31, 2004. As described elsewhere in the report, the Fund was
reorganized into a Series of BlackRock Funds, which has a different set of
officers and directors.
16
------------
PRSRT STD
[LOGO] STATE STREET RESEARCH U.S. POSTAGE
One Financial Center PAID
Boston, MA 02111-2690 PERMIT #6
HUDSON, MA
------------
================================================================================
Investors should carefully consider the
fund's investment objective, risks, charges
and expenses before investing. The fund's
prospectus contains more complete information
on these and other matters. A prospectus for
the fund is available through your financial
professional, or by calling toll-free
1-877-773-8637. Please read the prospectus
carefully before investing.
This report must be accompanied or preceded by a current prospectus.
"State Street Research Proxy Voting Policies and Procedures"--which describes
how we vote proxies relating to portfolio securities--is available upon request
free of charge, by calling 1-877-773-8637 or by accessing the U.S. Securities
and Exchange Commission website at www.sec.gov.
Member NASD, SIPC
(C)2005 State Street Research Investment Services, Inc.
One Financial Center
Boston, MA 02111-2690
www.ssrfunds.com
CONTROL NUMBER:(exp0206)SSR-LD IT-1220-0205
================================================================================
<Page>
FORM N-CSR(2 OF 3)
ITEM 2: CODE OF ETHICS
(a) The Registrant has, as of the end of the period covered by this
report, adopted a code of ethics pursuant to Section 406 of the
Sarbanes-Oxley Act and as defined in the instructions to Form N-CSR
that applies to the Registrant's principal executive officer,
principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of
whether these individuals are employed by the Registrant or a third
party.
(b) Omitted
(c) During the period covered by this report, there were not any amendments
to the provisions of the code of ethics adopted in 2(a) above.
(d) During the period covered by this report, there were not any waivers or
implicit waivers to a provision of the code of ethics adopted in 2(a)
above.
(e) Not applicable.
(f) Not applicable.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant's Board of Trustees has determined that Steve A. Garban,
a member of the Registrant's Board of Trustees and Audit Committee,
qualifies as an "audit committee financial expert" as such term is
defined in the instructions to Form N-CSR. Mr. Garban is "independent",
as defined in the instructions to Form N-CSR.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
<Table>
<Caption>
(a) Audit Fee
Fiscal year ended December 31, 2003 $24,000
Fiscal year ended December 31, 2004 $26,500
(b) Audit-Related Fees - Represents fees for assurance and related services
related to the audit of the registrant's financial statements.
Fiscal year ended December 31, 2003 $0
Fiscal year ended December 31, 2004 $0
(c) Tax Fees - Represents fees for professional services rendered by the
principal accountant for tax compliance, tax provision review, and the
tax return preparation.
Fiscal year ended December 31, 2003 $5,800
Fiscal year ended December 31, 2004 $6,000
(d) All other fees - Represents fees paid to Deloitte & Touche LLP to provide a
special review of late trading, market timing and related issues concerning
the Registrant.
Fiscal year ended December 31, 2003 $0
Fiscal year ended December 31, 2004 $14,000
</Table>
The Registrant's independent accountants, Deloitte & Touche LLP, did not
bill fees for audit-related, tax, or other non-audit services that required
pre-approval by the Audit Committee pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X during the Registrant's last two fiscal years.
(e)(1) The Audit Committee has determined that all work performed for the
Registrant by Deloitte & Touche LLP will be pre-approved by the full Audit
Committee and, therefore, has not adopted pre-approval procedures.
(2) None.
(f) Not applicable.
(g) Non-Audit Fees - Represents fees for audit-related, tax and other
non-audit services rendered by the principal accountant to the Registrant,
the Registrant's investment adviser and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the Registrant.
Fiscal Year Ended October 31, 2003 $ 5,800
Fiscal Year Ended October 31, 2004 $66,000
(h) The Audit Committee of the Registrant has considered whether the
non-audit services that were rendered by the Registrant's principal
accountant to the Registrant's investment adviser (not including any
subadviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser) and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the Registrant and
that were not pre-approved by the Audit Committee are compatible with
maintaining the principal accountant's independence.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES & PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITIY HOLDERS
The Governance Committee will consider nominees recommended by
shareholders. Shareholders may submit recommendations to the
attention of the Secretary of the Trust, State Street Research
& Management Company, One Financial Center, 30th Floor, Boston
MA 02111.
ITEM 10: CONTROLS AND PROCEDURES
(a) The Registrant's principal executive and principal financial officers
have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date
of this report, that the Registrant's disclosure controls and procedures
are reasonably designed to ensure that information required to be
disclosed by the Registrant on Form N-CSR is recorded, processed,
summarized and reported within the required time periods and that
information required to be disclosed by the Registrant in the reports
that it files or submits on Form N-CSR is accumulated and communicated
to the Registrant's management, including its principal executive and
principal financial officers, as appropriate to allow timely decisions
regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial
reporting during the Registrant's second fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
internal control over financial reporting.
ITEM 11: EXHIBITS
(a)(1) Code of Ethics required to be disclosed under Item 2 of Form
N-CSR attached hereto as Exhibit 99.CODE ETH
(a)(2) Certification for each principal executive and principal
financial officer of the Registrant required by Rule 30a-2(a)
under the Investment Company Act of 1940, as amended
(17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.302CERT
(b) Certification required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) attached
hereto as Exhibit 99.906CERT
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 Master Investment Trust
By: /s/ Richard S. Davis
------------------------------------------------------
Richard S. Davis, President, Chairman and
Chief Executive Officer
Principal Executive Officer
Date February 28, 2005
------------------------------------------------------
<Page>
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 February 28, 2005
------------------------
By: /s/ Douglas A. Romich
------------------------------------------------------
Douglas A. Romich, Treasurer
Principal Financial Officer
Date February 28, 2005
------------------------