<PAGE>
[Logo] MFS(R) SEMIANNUAL REPORT
INVESTMENT MANAGEMENT MARCH 31, 2000
WE Invented the Mutual Fund(R)
[graphic omitted]
MFS(R) INTERNATIONAL
OPPORTUNITIES FUND
MFS(R) INTERNATIONAL
STRATEGIC GROWTH FUND
MFS(R) INTERNATIONAL
VALUE FUND
<PAGE>
<TABLE>
MFS(R) INTERNATIONAL OPPORTUNITIES FUND
MFS(R) INTERNATIONAL STRATEGIC GROWTH FUND
MFS(R) INTERNATIONAL VALUE FUND
<S> <C>
TRUSTEES SECRETARY
J. Atwood Ives+ -- Chairman and Chief Stephen E. Cavan*
Executive Officer, Eastern Enterprises
(diversified services company) ASSISTANT SECRETARY
James R. Bordewick, Jr.*
Lawrence T. Perera+ -- Partner, Hemenway &
Barnes (attorneys) CUSTODIAN
State Street Bank and Trust Company
William J. Poorvu+ -- Adjunct Professor,
Harvard University Graduate School of INVESTOR INFORMATION
Business Administration For information on MFS mutual funds, call your
investment professional or, for an information kit,
Charles W. Schmidt+ -- Private Investor call toll free: 1-800-637-2929 any business day from
9 a.m. to 5 p.m. Eastern time (or leave a message
Arnold D. Scott* -- Senior Executive Vice anytime).
President, Director, and Secretary,
MFS Investment Management INVESTOR SERVICE
MFS Service Center, Inc.
Jeffrey L. Shames* -- Chairman and Chief P.O. Box 2281
Executive Officer, MFS Investment Management Boston, MA 02107-9906
Elaine R. Smith+ -- Independent Consultant For general information, call toll free:
1-800-225-2606 any business day from 8 a.m. to
David B. Stone+ -- Chairman, North 8 p.m. Eastern time.
American Management Corp. (investment adviser)
For service to speech- or hearing-impaired, call
INVESTMENT ADVISER toll free: 1-800-637-6576 any business day from
Massachusetts Financial Services Company 9 a.m. to 5 p.m. Eastern time. (To use this service,
500 Boylston Street your phone must be equipped with a Telecommunications
Boston, MA 02116-3741 Device for the Deaf.)
DISTRIBUTOR For share prices, account balances, exchanges,
MFS Fund Distributors, Inc. or stock and bond outlooks, call toll free:
500 Boylston Street 1-800-MFS-TALK (1-800-637-8255) anytime
Boston, MA 02116-3741 from a touch-tone telephone.
CHAIRMAN AND PRESIDENT WORLD WIDE WEB
Jeffrey L. Shames* www.mfs.com
PORTFOLIO MANAGERS
David A. Antonelli*
David R. Mannheim*
Frederick J. Simmons*
TREASURER
W. Thomas London*
ASSISTANT TREASURERS
Mark E. Bradley*
Ellen Moynihan*
James O. Yost*
+ Independent Trustee.
* MFS Investment Management
</TABLE>
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Shareholders,
This spring, the U.S. stock market experienced record point drops and
volatility that have given many investors cause for concern. While the recent
market correction has rattled a lot of nerves, it's important to put the
current market environment into perspective. Throughout the history of the
market, investors have experienced numerous corrections (declines of more than
20%) and periods of extreme volatility. Of course, past performance is no
guarantee of future results, however, over the long-term, stock and bond
investors have enjoyed returns that have solidly outpaced inflation.
From our perspective, as we look at the global investment climate at the
beginning of the new millennium, we see many reasons for optimism, as well as
the need to voice some words of caution. Our reasons for being optimistic
about both stock and bond markets include:
o STRONG CORPORATE EARNINGS GROWTH: We believe that, over time, the most
important driver of stock prices is corporate earnings. Our research
indicates that the average earnings growth for U.S. companies could approach
15% in 2000, which would bode very well for U.S. equities. We are also
seeing encouraging signs that companies worldwide, and particularly in
Europe, are beginning to focus more on earnings and shareholder value --
that is, delivering stock price performance that will reward investors. As
we research companies around the globe, we are finding that specific areas
of opportunity include technology companies, especially those involved in
wireless telecommunications and in supplying infrastructure and services for
the Internet.
o LOW INFLATION WORLDWIDE: We believe accelerating inflation is one of the
chief factors that could end the current economic boom. While the U.S.
economy continues to grow rapidly, we have not experienced significant signs
of inflation. In our opinion, perhaps the major force keeping inflation at
bay is worldwide productivity increases, fueled by advancing technology. A
technological revolution based on computerization and the Internet appears
to be making it possible for companies to produce more products with less
employees, thereby enabling companies to increase earnings without raising
prices. A related factor keeping inflation down is the heightened
competition of an increasingly global marketplace, where, for example,
businesses are beginning to use computer networks and the Internet to shop
worldwide for the lowest prices from suppliers.
o STRONG GLOBAL ECONOMIES: Our outlook is that a majority of national
economies will continue to experience healthy growth with low inflation. In
late January, the current economic boom in the United States became the
longest in the nation's history. It appears to us that the U.S. Federal
Reserve Board's (the Fed's) program of gradual interest-rate increases will
eventually be successful in cooling the somewhat- overheated U.S. economy
while prolonging the boom. In Europe, we see strong evidence that most
countries will continue on a moderate growth path with low inflation. A
major reason for this is that European companies have begun to adopt the
practices of downsizing, outsourcing, and consolidation that have helped
revitalize U.S. industry over the past decade. We are witnessing a similar
situation in Japan, as more firms merge, restructure, and invest in
technology. In the Pacific Rim, most economies have recovered from the
economic turmoil of late summer 1998 and are surging ahead. We believe
progress toward restructuring Asia's banking systems and other ailing
industries bodes well for stronger investor confidence in the region. While
business conditions have been less favorable in Latin America due to
relatively high inflation, increased exports and industrial production
suggest to us that the region's recession has ended.
Amid this positive global outlook, however, we believe investors should also
heed some cautionary notes:
o IT IS HIGHLY UNLIKELY THAT U.S. EQUITY MARKETS WILL CONTINUE TO PERFORM AT
THE PACE OF THE LAST SEVERAL YEARS. Although our outlook for U.S. markets
this year is quite positive, we believe it is unrealistic for investors to
expect stock market returns, as measured by the Standard & Poor's 500
Composite Stock Index,(1) to routinely exceed 20%, as they did for the past
four years.
o HIGH VALUATIONS, ESPECIALLY OF TECHNOLOGY STOCKS, HAVE MADE U.S. MARKETS
INCREASINGLY VOLATILE. Investor excitement over the past year has pushed
many technology-related stocks to very high relative prices, as expressed by
their price/earnings (P/E) ratios. In general, we believe these higher
valuations are largely supported by the strong earnings growth mentioned
earlier. However, as we've recently experienced, this backdrop has led to a
highly volatile environment, where the market is swift to punish companies
whose earnings are less than expected and where fear can rapidly overcome
the desire to invest for long-term goals.
o RISING INTEREST RATES MAY DAMPEN MARKETS IN THE SHORT TERM, PARTICULARLY IN
THE UNITED STATES AND EUROPE. The Fed's current program of raising interest
rates could potentially cool both stock and bond markets, and the European
Central Bank has tended to follow the lead of the Fed in adjusting its own
interest rates. It is our expectation, however, that in the long term
interest rates will trend down again, perhaps by the end of this year. We
believe that could be favorable for both equity and fixed-income
investments.
On balance, it appears to us that the current global investment climate is
well matched to MFS' research-oriented style of investing. In the equity
markets, where we believe earnings growth is the most reliable indicator of
long-term performance, we feel our research team is second to none in
determining the real value of a company and its long-term earnings potential.
To do that, our portfolio managers and our worldwide team of research analysts
spend extensive time visiting with companies, talking to their customers, and
investigating their competition. In fixed-income investing, we believe the
quality of our research gives us an advantage by helping us determine which
types of securities can add the most value to a fund, and by helping us reduce
the credit risk which is the biggest danger to some higher-income bond funds.
In sum, MFS Original Research(R) is one of the most important factors in our
ongoing effort to deliver competitive performance to you, our investors.
We appreciate your confidence and welcome any questions or comments you may
have.
Respectfully,
/s/ Jeffrey L. Shames
Jeffrey L. Shames
Chairman and Chief Executive Officer
MFS Investment Management(R)
April 18, 2000
- --------------
(1) The Standard & Poor's 500 Stock Index (the S&P 500) is a popular, unmanaged
index of common stock total return performance. It is not possible to
invest directly in an index.
Investments in mutual funds will fluctuate and may be worth more or less upon
redemption.
The opinions expressed in this letter are those of Jeffrey L. Shames, and no
forecasts can be guaranteed.
<PAGE>
MANAGEMENT REVIEW AND OUTLOOK
MFS(R) International Opportunities Fund
Dear Shareholders,
For the six months ended March 31, 2000, Class A shares of the Fund provided a
total return of 52.94% and Class I shares 52.89%. These returns, which include
the reinvestment of any distributions but exclude the effects of any sales
charges, compare to a 17.00% return over the same period for the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) Europe, Australia,
Far East (EAFE) Index, a broad, unmanaged index of non-U.S. equities. During
the same period, the Fund's performance also compares to a 27.02% return for
the average international fund tracked by Lipper Inc., an independent firm
that reports mutual fund performance.
The Fund's investment objective is capital appreciation through investing
mostly in stocks of companies whose principal activities are outside the
United States. The Fund invests in companies of any size, including smaller,
lesser-known foreign emerging growth companies.
Most international equity markets continued to post strong gains during the
period. Exceptional broad-based market performance was driven in part by
recovering foreign economies and improving investor confidence that began
early in 1999. The Fund's outperformance of the MSCI EAFE Index and its Lipper
peer group, however, was due primarily to favorable stock picking across a
wide range of industries and regions. A particularly strong performer for the
Fund was Fast Retailing, a discount clothing retailer in Japan, which
experienced dramatic increases in same-store sales. Cellular telephone
equipment and service providers such as Ericsson and Nortel Networks also
produced strong results during the period. Other sectors that benefited
performance were electronics and semiconductor manufacturers. Favorable stock
picks in these industries included STMicroelectronics and Pioneer, which
rallied impressively during the period due to accelerating earnings, revenue
growth, and strong demand.
Toward the end of the period, as investors began to sell technology and
telecommunications stocks, the Fund's relative performance benefited from its
significant overweighting in energy and retailing stocks versus the MSCI EAFE
Index. Our large exposure to oil services companies such as Fugro N.V. and
Compagnie General helped provide solid performance and stability in a volatile
market environment. Among consumer goods and services companies, Li & Fung Ltd.
and Matalan PLC experienced strong sales results due to the rebounding economy
in Southeast Asia and provided a strong boost to Fund performance.
In our view, the energy sector continues to look attractive over the next six to
12 months. As the global economy continues to pick up steam and the demand for
oil remains strong, we believe energy companies could produce
stronger-than-expected results. The financial services sector also appears
attractive. We believe that a number of highly regarded and profitable companies
with strong earnings outlooks are more attractively valued since investors sold
the stocks due to interest-rate concerns. We now believe many financial services
companies are well positioned to benefit from the global economic recovery. In
addition, we will continue to keep a close eye on the technology and
telecommunications sector in an effort to take advantage of any indiscriminate
selling of stocks that we believe offer attractive long-term growth
opportunities.
Respectfully,
/s/ David A. Antonelli
David A. Antonelli
Portfolio Manager
<PAGE>
MANAGEMENT REVIEW AND OUTLOOK -- continued
MFS(R) International Strategic Growth Fund
Dear Shareholders,
For the six months ended March 31, 2000, Class A shares of the Fund provided a
total return of 29.86% and Class I shares 29.78%. These returns, which include
the reinvestment of any distributions but exclude the effects of any sales
charges, compare to a 17.00% return over the same period for the Fund's
benchmark, the MSCI EAFE Index. During the period, the average international
fund tracked by Lipper Inc. returned 27.02%.
The Fund's investment objective is capital appreciation through investing
mainly in stocks of companies whose principal activities are outside the
United States. The Fund invests in companies of any size but generally invests
in established foreign companies that we believe offer prospects for
sustainable, above-average growth in earnings or cash flow. The Fund may also
invest in emerging market companies, although we currently remain cautious on
emerging markets and our holdings in that area are minimal. Because the Fund
is managed from the bottom up, we buy stocks regardless of where a company is
located. Therefore, our relative country or regional weightings versus the
index are merely the byproducts of where MFS Original Research(R) finds
companies that offer above-average earnings growth or cash flow and are
trading at attractive valuations.
The Fund's strong performance over the past six months was largely due to its
overweighting relative to its benchmark in the areas of telecommunications and
leisure and to strong stock selection in those areas. Telecommunications
stocks that helped performance included NTT Mobile Communications Network, the
largest cellular carrier in Japan, and Mannesmann, a German company whose
stock appreciated considerably during takeover negotiations with British
telecommunications giant Vodafone AirTouch. Our Mannesmann shares have since
become part of the Vodafone position in the portfolio. In the leisure area,
the portfolio has done very well with investments in media companies such as
Television Francaise and Capital Radio in the United Kingdom.
Although the Fund was underweighted in technology at the end of the period,
stock selection within that sector also contributed strongly to performance,
particularly technology companies such as Hitachi and Canon in Japan.
Respectfully,
/s/ David R. Mannheim
David R. Mannheim
Portfolio Manager
<PAGE>
MANAGEMENT REVIEW AND OUTLOOK -- continued
MFS(R) International Value Fund
Dear Shareholders,
For the six months ended March 31, 2000, Class A shares of the Fund provided a
total return of 19.60% and Class I shares 19.46%. These returns, which include
the reinvestment of any distributions but exclude the effects of any sales
charges, compare to a 17.00% return over the same period for the Fund's
benchmark, the MSCI EAFE Index and to a 27.02% return for the average
international fund tracked by Lipper.
The Fund's investment objective is capital appreciation through investing
mostly in stocks of companies whose principal activities are outside the
United States. Specifically, the Fund focuses on established foreign
companies, many of which pay current dividends, whose stocks we believe are
undervalued.
Fund performance versus the MSCI EAFE Index was aided by a number of factors.
Strong stock selection among broadcast media and cable providers such as
Television Francaise and ProSieben contributed solidly. Robust advertising
spending by Internet and other technology companies added considerably to media
companies' profit margins and earnings growth. Other industries and holdings
that contributed favorably to Fund performance were networking and
telecommunications stocks such as Vodafone AirTouch, Cable & Wireless,
Telefonica, BCE, KPN, China Telecom, and Telecom Italia. Each of these companies
experienced significant acceleration in demand for wireless, data, and voice
transmission. Finally, electronics and semiconductor manufacturers such as
STMicroelectronics and Sony provided a significant boost to performance due to
strong business and consumer spending on new technology.
Regarding the Fund's underperformance versus its Lipper peer group, the Fund
did have more exposure to larger-cap, more established, and what we believed
to be overlooked and undervalued stocks than the average international fund
tracked by Lipper. Value-oriented stocks tended to underperform the high-
flying growth stocks in the technology sector during most of the period.
Another factor that detracted from relative performance was the portfolio's
overweighted exposure relative to the benchmark to consumer staples stocks
such as Nestle and Anheuser-Busch. We believe investors shunned these stocks
in favor of stocks that provided short-term price momentum, regardless of
valuation. Nevertheless, we believe these types of consumer staples companies
provide diversification, attractive valuations, and solid long-term growth
prospects.
Looking ahead, given the likelihood of continued volatility in global markets,
we're comfortable with the Fund's well-diversified mix of industries and
regions. At the same time, it becomes increasingly important to concentrate on
companies with solid business models, reliable management teams, and proven
earnings records. These factors are at the core of our investment strategy for
the Fund, and we believe this focus should help the portfolio provide solid
long-term performance while helping to navigate potentially turbulent market
conditions.
Respectfully,
/s/ Frederick J. Simmons
Frederick J. Simmons
Portfolio Manager
The opinions expressed in this report are those of the portfolio managers and
are current only through the end of the period of the report as stated on the
cover. The managers' views are subject to change at any time based on market
and other conditions, and no forecasts can be guaranteed.
The portfolios are actively managed, and current holdings may be different.
It is not possible to invest directly in an index.
<PAGE>
PERFORMANCE SUMMARY
Currently each Fund offers only Class A and Class I shares, which are
available for purchase at net asset value only by residents of the
Commonwealth of Massachusetts who are employees (or certain relatives of
employees) of MFS and its affiliates or members of the governing boards of the
various funds sponsored by MFS.
Because mutual funds are designed for investors with long-term goals, we have
provided cumulative results as well as the average annual total returns for
the applicable time periods. Investment results reflect the percentage change
in net asset value, including reinvestment of dividends. (See Notes to
Performance Summary.)
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN THROUGH MARCH 31, 2000
MFS INTERNATIONAL OPPORTUNITIES FUND(1)(2)
<TABLE>
CLASS A
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cumulative Total Return Excluding Sales Charge +52.94% +76.11% +101.85%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +76.11% + 32.83%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales Charge -- +67.74% + 30.24%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS I
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +52.89% +76.19% +101.95%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +76.19% + 32.86%
- -------------------------------------------------------------------------------------------------------------------------------
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through March 31, 2000.
MFS INTERNATIONAL STRATEGIC GROWTH FUND(1)
CLASS A
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +29.86% +47.41% +80.74%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +47.41% +27.03%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales Charge -- +40.40% +24.56%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS I
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +29.78% +47.38% +81.16%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +47.38% +27.15%
- -------------------------------------------------------------------------------------------------------------------------------
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through March 31, 2000.
(1) Investments in foreign and emerging market securities may provide superior returns but also involve greater risk than U.S.
investments. Investments in foreign and emerging market securities may be favorably or unfavorably affected by changes in
interest rates and currency exchange rates, market conditions, and the economic and political conditions of the countries
where investments are made. These risks may increase share price volatility. See the prospectus for details.
(2) The Fund may invest in small or emerging growth companies. Investing in small or emerging growth companies involves greater
risk than is customarily associated with more-established companies. These risks may increase share price volatility. See
the prospectus for details.
MFS INTERNATIONAL VALUE FUND(1)
CLASS A
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +19.60% +31.30% +62.80%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +31.30% +21.77%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales Charge -- +25.06% +19.40%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS I
<CAPTION>
6 Months 1 Year Life*
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +19.46% +31.14% +62.73%
- -------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales Charge -- +31.14% +21.75%
- -------------------------------------------------------------------------------------------------------------------------------
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through March 31, 2000.
(1) Investments in foreign and emerging market securities may provide superior returns but also involve greater risk than U.S.
investments. Investments in foreign and emerging market securities may be favorably or unfavorably affected by changes in
interest rates and currency exchange rates, market conditions, and the economic and political conditions of the countries
where investments are made. These risks may increase share price volatility. See the prospectus for details.
</TABLE>
NOTES TO PERFORMANCE SUMMARY
Performance results reflect any applicable subsidies and waivers, without
which the results would have been less favorable. Subsidies and waivers may be
rescinded at any time. See the prospectus for details. All results are
historical and include the reinvestment of dividends and capital gains.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. MORE RECENT
RETURNS MAY BE MORE OR LESS THAN THOSE SHOWN. PAST PERFORMANCE IS NO GUARANTEE
OF FUTURE RESULTS.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited) - March 31, 2000
MFS INTERNATIONAL OPPORTUNITIES FUND
Stocks - 101.2%
<CAPTION>
- -----------------------------------------------------------------------------------------------------
ISSUER SHARES VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Foreign Stocks - 92.0%
Argentina
Impsat Fiber Networks, Inc. (Telecommunications)* 10 $ 280
- -----------------------------------------------------------------------------------------------------
Australia - 0.9%
Publishing & Broadcasting Ltd. (Broadcasting) 2,000 $ 16,956
- -----------------------------------------------------------------------------------------------------
Belgium - 0.1%
Lernout & Hauspie Speech Products N.V. (Electronics)* 20 $ 2,316
- -----------------------------------------------------------------------------------------------------
Bermuda - 0.1%
FLAG Telecom Holdings Ltd. (Telecommunications)* 50 $ 1,131
- -----------------------------------------------------------------------------------------------------
Brazil - 3.4%
Petroleo Brasileiro S.A. (Oils) 850 $ 23,138
Tele Centro Sul Participacoes S.A., ADR (Telecommunications)* 145 11,745
Tele Norte Celular Participacoes S.A., ADR (Cellular
Telecommunications)* 100 6,200
Tele Norte Leste Participacoes S.A., ADR (Telecommunications) 460 12,247
Telecomunicacoes De Sao Paulo S.A. (Telecommunications)* 500 14,844
----------
$ 68,174
- -----------------------------------------------------------------------------------------------------
Canada - 9.8%
724 Solutions, Inc. (Internet)* 20 $ 2,490
Anderson Exploration Ltd. (Oils)* 2,000 28,916
BCE, Inc. (Telecommunications) 260 32,614
Bell Canada International, Inc. (Telecommunications)* 400 11,500
C-MAC Industries, Inc. (Electronics)* 165 7,100
Canadian Hunter Exploration Ltd. (Oils)* 1,120 20,048
Celestica, Inc. (Electronics)* 200 10,513
GT Group Telecom, Inc. (Telecommunications)* 60 1,252
Magna Entertainment Corp. (Entertainment)* 23 78
Magna International, Inc. (Automotive) 115 4,453
Manulife Financial Corp. (Insurance) 370 5,426
Petro-Canada Co. (Oils) 500 8,313
Royal Group Technologies Ltd. (Construction)* 250 5,422
Sears Canada, Inc. (Retail) 150 3,516
Stratos Global Corp (Telecommunications)* 700 8,820
Talisman Energy Inc. (Oils)* 1,350 38,432
Toronto - Dominion Bank (Banks and Credit Cos.) 270 7,206
----------
$ 196,099
- -----------------------------------------------------------------------------------------------------
China - 0.1%
Huaneng Power International, Inc., ADR (Utilities - Electric)* 300 $ 2,400
- -----------------------------------------------------------------------------------------------------
Denmark - 0.3%
ISS International Service System (Commercial Services) 100 $ 6,559
- -----------------------------------------------------------------------------------------------------
Finland - 5.5%
F-Secure Oyj (Computer Software - Systems)* 75 $ 5,379
Helsingin Puhelin Oyj (Telecommunications) 130 12,568
HPY Holding - HTF Holding Oyj Abp (Telecommunications)* 300 12,563
Nokia Corp., ADR (Telecommunications) 85 18,466
Nokia Oyj (Telecommunications) 90 19,039
Perlos Oyj Corp. (Electronics)* 440 15,667
Satama Interactive Oyj (Internet)* 20 460
Tieto Corp. (Computer Software - Systems) 435 26,107
----------
$ 110,249
- -----------------------------------------------------------------------------------------------------
France - 8.6%
Alcatel Alsthom Compagnie, ADR (Telecommunications) 195 $ 8,544
Aventis S.A. (Pharmaceuticals) 215 11,772
Compagnie Generale de Geophysique S.A., ADR (Oil Services)* 3,672 47,736
Integra S.A. (Computer Software - Services)* 185 6,479
Natexis Co. (Finance) 25 1,891
Self Trade Co. (Finance)* 10 126
STMicroelectronics Co. (Electronics)* 120 22,054
Technip (Construction) 150 18,220
Television Francaise (Entertainment) 38 28,008
Thomson Multimedia (Electronics)* 50 4,738
Total Fina S.A., ADR (Oils) 80 5,890
Total S.A., "B" (Oils) 100 14,980
----------
$ 170,438
- -----------------------------------------------------------------------------------------------------
Germany - 7.4%
ADVA AG Optical Networking Co. (Telecommunications)* 5 $ 3,159
Evotec Biosystems AG (Research and Development)* 20 1,953
Fielmann AG, Preferred (Retail) 200 6,356
Fresenius AG (Medical Supplies) 50 11,438
GFT Technology AG (Computer Software - Services)* 50 11,965
Infineon Technologies AG (Electronics)* 140 7,645
Intershop Communications AG (Internet)* 15 7,567
Marschollek Lautenschlaeger, Preferred (Insurance)* 40 23,930
Merck KGaA (Medical)* 400 12,788
Prosieben Media AG, Preferred (Entertainment) 330 39,800
SAP AG, ADR (Computer Software - Systems) 180 10,755
Softline AG (Computer Software - Products)* 10 447
Tecis Holding AG (Finance) 70 9,180
----------
$ 146,983
- -----------------------------------------------------------------------------------------------------
Greece - 0.9%
Antenna TV S.A., ADR (Broadcasting)* 765 $ 17,882
- -----------------------------------------------------------------------------------------------------
Hong Kong - 2.4%
Hongkong.com Corp. (Internet)* 2,000 $ 572
Li & Fung Ltd. (Consumer Goods and Services)* 6,000 27,971
PetroChina Co. (Oils)* 116,000 19,069
----------
$ 47,612
- -----------------------------------------------------------------------------------------------------
Hungary - 0.9%
Magyar Tavkozlesi Rt., ADR (Telecommunications) 210 $ 9,371
OTP Bank (Banks and Credit Cos.) 140 7,525
----------
$ 16,896
- -----------------------------------------------------------------------------------------------------
Ireland - 0.7%
Anglo Irish Bank Corp. PLC (Banks and Credit Cos.)* 3,789 $ 9,302
Trintech Group PLC, ADR (Computer Software - Products)* 100 3,900
----------
$ 13,202
- -----------------------------------------------------------------------------------------------------
Israel - 0.3%
Advanced Vision Technology Ltd. (Printing and Publishing)* 10 $ 198
Jacada Ltd. (Computer Software - Services)* 100 1,463
Partner Communications Co. Ltd., ADR (Cellular Telephones) 300 4,987
----------
$ 6,648
- -----------------------------------------------------------------------------------------------------
Italy - 0.7%
Telecom Italia Mobile S.p.A. (Telecommunications) 600 $ 7,363
Telecom Italia Mobile S.p.A., Saving Shares
(Telecommunications) 1,540 7,370
----------
$ 14,733
- -----------------------------------------------------------------------------------------------------
Japan - 19.4%
Canon, Inc., ADR (Special Products and Services) 570 $ 24,581
Chugai Pharmaceutical Co. Ltd. (Pharmaceuticals) 1,000 18,735
Crayfish Co. Ltd., ADR (Internet)* 110 4,180
Daiwa Securities Group, Inc. (Banks and Credit Cos.) 1,000 18,804
Eisai Co. Ltd. (Medical and Health Products) 1,000 26,354
Fast Retailing Co. (Retail) 300 131,966
Hitachi Ltd. (Electronics) 1,000 11,876
Meitec Corp. (Computer Software - Systems) 500 17,537
Mimasu Semiconductor Industry Co. Ltd. (Electronics) 700 12,972
Nippon Telegraph & Telephone Co. (Utilities - Telephone) 1 15,881
Orix Corp. (Financial Services) 120 17,362
Pioneer Electronic Corp. (Electronics) 1,000 28,352
Sanwa Bank, Ltd. (Banks and Credit Cos.) 1,000 10,405
Sanyo Electric Co. (Electronics) 2,000 11,925
Sumitomo Bank Ltd. (Banks and Credit Cos.) 1,000 14,906
Toshiba Corp. (Electronics) 2,000 20,382
----------
$ 386,218
- -----------------------------------------------------------------------------------------------------
Luxembourg
Thiel Logistik AG (Computer Software - Services)* 10 $ 555
- -----------------------------------------------------------------------------------------------------
Mexico - 1.4%
Grupo Continential S.A. (Food and Beverage Products) 1,450 $ 1,796
Grupo Financiero Banorte S.A. de C.V. (Finance)* 4,700 7,118
Kimberly-Clark de Mexico S.A. de C.V. (Forest and Paper
Products) 2,600 8,949
Wal-Mart De Mexico S.A. De C.V., ADR (Retail)* 375 9,374
----------
$ 27,237
- -----------------------------------------------------------------------------------------------------
Netherlands - 6.7%
Akzo Nobel N.V. (Chemicals) 150 $ 6,404
Completel Europe N.V. (Telecommunications)* 40 797
Equant N.V. (Computer Software - Services)* 70 5,809
Equant N.V., Registered Shares (Computer Software - Services)* 30 2,552
Fugro N.V. (Engineering)* 757 37,788
Hunter Douglas N.V., ADR (Consumer Goods and Services)* 280 7,156
Koninklijke Ahrend Groep N.V. (Consumer Goods and Services)* 688 8,759
Koninklijke Philips Electronics N.V. (Electronics) 75 12,606
KPN N.V. (Telecommunications)* 165 18,897
Verenigde Nederlandse Uitgeversbedrijven Verenigd Bezit
(Publishing) 220 12,961
Versatel Telecommunications Co. (Telecommunications)* 435 20,170
----------
$ 133,899
- -----------------------------------------------------------------------------------------------------
New Zealand - 0.6%
Warehouse Group (Retail) 6,000 $ 12,192
- -----------------------------------------------------------------------------------------------------
Norway - 2.5%
P4 Radio Hele Norge ASA (Broadcasting) 4,200 $ 21,152
Petroleum Geo-Services ASA, ADR (Oils)* 400 6,925
Schibsted ASA (Publishing) 870 21,546
----------
$ 49,623
- -----------------------------------------------------------------------------------------------------
Poland - 0.3%
Polski Koncern Naftowy S.A., GDR (Oils)*## 550 $ 6,050
- -----------------------------------------------------------------------------------------------------
Portugal - 0.2%
Telecel - Comunicacoes Pessoais, S.A. (Telecommunications) 250 $ 4,882
- -----------------------------------------------------------------------------------------------------
Singapore - 1.9%
Overseas Union Bank Ltd. (Banks and Credit Cos.) 2,000 $ 8,999
Overseas-Chinese Banking Corp. Ltd. (Banks and Credit Cos.) 1,000 6,194
Singapore Press Holdings Ltd. (Printing and Publishing) 1,000 15,953
St Assembly Test Services Ltd., ADR (Electronics)* 120 5,820
----------
$ 36,966
- -----------------------------------------------------------------------------------------------------
South Korea - 0.2%
Mirae Corp., ADR (Electronics) 100 $ 1,083
Pohang Iron & Steel Co. Ltd., ADR (Construction) 100 2,750
----------
$ 3,833
- -----------------------------------------------------------------------------------------------------
Spain - 2.0%
Centros Comerciales Continente, S.A. (Retail) 250 $ 4,221
Cortefiel S.A. (Retail) 300 7,107
Telefonica de Espana S.A., ADR (Telecommunications) 333 24,850
Telefonica Publicidad e Informacion S.A. (Utilities -
Telephone)* 100 4,375
----------
$ 40,553
- -----------------------------------------------------------------------------------------------------
Sweden - 4.8%
Allgon AB, "B" (Electronics) 400 $ 9,973
Ericsson LM, ADR (Telecommunications)* 250 23,453
Framtidsfabriken AB (Internet)* 325 7,953
Micronic Laser Systems AB (Electronics)* 30 550
Saab AB, "B" (Aerospace) 1,800 17,952
Skandia Forsakrings AB (Insurance) 300 14,229
Tele1 Europe Holdings AB (Telecommunications)* 30 569
Trio AB (Computer Software-Products and Services)* 3,500 21,106
----------
$ 95,785
- -----------------------------------------------------------------------------------------------------
Switzerland - 0.8%
Carrier 1 International S.A., ADR (Telecommunications)* 20 $ 1,914
Fantastic Corp. (Computer Software - Systems)* 150 4,447
Synthes-Stratec, Inc. (Medical Products)* 20 9,600
----------
$ 15,961
- -----------------------------------------------------------------------------------------------------
Thailand - 0.3%
BEC World Public Co. Ltd. (Television) 1,000 $ 6,138
- -----------------------------------------------------------------------------------------------------
United Kingdom - 8.8%
365 Corp. PLC (Telecommunications)* 150 $ 501
AstraZeneca Group PLC (Medical and Health Products) 269 10,855
British Telecommunications PLC (Telecommunications)* 758 14,176
Cable & Wireless Communication PLC (Telecommunications)* 80 6,800
Capital Radio PLC (Broadcasting) 710 19,154
Compass Group (Restaurants and Food Service) 1,000 12,987
Energis PLC (Telecommunications)* 350 16,350
interactive invest international PLC (Internet)* 170 525
Matalan PLC (Apparel and Textiles) 2,200 20,134
NDS Group PLC, ADR (Internet)* 30 2,115
QXL.com PLC (Internet)* 175 2,785
TeleWest Communications PLC (Entertainment)* 2,190 16,870
Thus PLC (Internet)* 460 3,514
Vodafone AirTouch PLC (Telecommunications)* 5,896 32,844
Vodafone Group PLC, ADR (Telecommunications) 265 14,724
----------
$ 174,334
- -----------------------------------------------------------------------------------------------------
Total Foreign Stocks $1,832,784
- -----------------------------------------------------------------------------------------------------
U.S. Stocks - 9.2%
Agricultural Products - 0.8%
AGCO Corp. 1,480 $ 16,835
- -----------------------------------------------------------------------------------------------------
Business Services - 1.7%
Carbo Ceramics, Inc. 1,000 $ 28,125
IMRglobal Corp.* 365 5,247
----------
$ 33,372
- -----------------------------------------------------------------------------------------------------
Computer Software - Systems - 0.4%
Poet Holdings, Inc.* 65 $ 7,342
- -----------------------------------------------------------------------------------------------------
Electronics - 0.5%
Novellus Systems, Inc.* 180 $ 10,102
- -----------------------------------------------------------------------------------------------------
Internet - 0.1%
AsiaInfo Holdings, Inc.* 20 $ 1,210
- -----------------------------------------------------------------------------------------------------
Medical and Health Products - 0.5%
Pharmacia & Upjohn, Inc. 175 $ 10,369
- -----------------------------------------------------------------------------------------------------
Oil Services - 3.3%
Diamond Offshore Drilling, Inc. 400 $ 15,975
Global Industries, Inc.* 1,300 19,012
Global Marine, Inc.* 100 2,538
Halliburton Co. 680 27,880
----------
$ 65,405
- -----------------------------------------------------------------------------------------------------
Oils - 0.7%
Newfield Exploration Co.* 150 $ 5,287
Transocean Sedco Forex, Inc. 175 8,980
----------
$ 14,267
- -----------------------------------------------------------------------------------------------------
Telecommunications - 1.2%
Global TeleSystems Group, Inc.* 150 $ 3,075
Nortel Networks Corp. 170 21,420
----------
$ 24,495
- -----------------------------------------------------------------------------------------------------
Total U.S. Stocks $ 183,397
- -----------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $1,509,825) $2,016,181
Other Assets, Less Liabilities - (1.2)% (23,460)
- -----------------------------------------------------------------------------------------------------
Net Assets - 100.0% $1,992,721
- -----------------------------------------------------------------------------------------------------
* Non-income producing security.
## SEC Rule 144A restriction.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited) - March 31, 2000
MFS INTERNATIONAL STRATEGIC GROWTH FUND
Stocks - 94.2%
<CAPTION>
- -----------------------------------------------------------------------------------------------------
ISSUER SHARES VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Foreign Stocks - 92.3%
Argentina
Impsat Fiber Networks, Inc. (Telecommunications)* 10 $ 280
- -----------------------------------------------------------------------------------------------------
Australia - 2.2%
Publishing & Broadcasting Ltd. (Broadcasting) 1,620 $ 13,734
QBE Insurance Group Ltd. (Insurance)* 7,248 30,746
----------
$ 44,480
- -----------------------------------------------------------------------------------------------------
Bermuda - 0.3%
FLAG Telecom Holdings Ltd. (Telecommunications)* 240 $ 5,430
- -----------------------------------------------------------------------------------------------------
Canada - 6.3%
724 Solutions, Inc. (Internet)* 20 $ 2,490
Aliant, Inc. (Telecommunications) 905 24,299
Anderson Exploration Ltd. (Oils)* 1,000 14,458
BCE, Inc. (Telecommunications) 185 23,053
Bell Canada International, Inc. (Telecommunications)* 1,150 32,382
Canadian National Railway Co. (Railroads) 1,000 26,688
GT Group Telecom, Inc. (Telecommunications)* 60 1,253
----------
$ 124,623
- -----------------------------------------------------------------------------------------------------
Finland - 2.7%
Helsingin Puhelin Oyj (Telecommunications) 460 $ 44,471
HPY Holding - HTF Holding Oyj Abp
(Telecommunications)* 200 8,376
----------
$ 52,847
- -----------------------------------------------------------------------------------------------------
France - 11.5%
Aventis S.A. (Pharmaceuticals) 305 $ 16,699
Banque Nationale de Paris (Banks and Credit Cos.) 170 13,425
Bouygues S.A. (Construction) 48 38,043
Castorama Dubois Investisse (Stores) 98 21,050
Integra SA (Computer Software - Services)* 150 5,253
Sanofi-Synthelabo S.A. (Medical and Health Products)* 870 33,186
Technip (Construction) 130 15,791
Television Francaise (Entertainment) 20 14,741
Total S.A., "B" (Oils) 250 37,450
Vivendi (Business Services) 300 34,603
----------
$ 230,241
- -----------------------------------------------------------------------------------------------------
Germany - 2.6%
Prosieben Media AG, Preferred (Entertainment)* 435 $ 52,464
- -----------------------------------------------------------------------------------------------------
Greece - 0.5%
Antenna TV S.A., ADR (Broadcasting)* 450 $ 10,519
- -----------------------------------------------------------------------------------------------------
India
SSI Ltd., GDR (Computer Software - Services)*## 40 $ 540
- -----------------------------------------------------------------------------------------------------
Ireland - 0.8%
Anglo Irish Bank Corp. PLC (Banks and Credit Cos.) 6,085 $ 14,939
- -----------------------------------------------------------------------------------------------------
Israel - 0.5%
Partner Communications Co. Ltd., ADR (Cellular
Telephones) 630 $ 10,474
- -----------------------------------------------------------------------------------------------------
Italy - 1.9%
Telecom Italia Mobile S.p.A., Saving Shares
(Telecommunications)* 7,900 $ 37,809
- -----------------------------------------------------------------------------------------------------
Japan - 20.9%
Canon, Inc., ADR (Special Products and Services) 1,100 $ 47,438
Chugai Pharmaceutical Co. Ltd. (Pharmaceuticals) 2,000 37,471
Chukyo Coca-Cola Bottling Co. Ltd. (Food and Beverage
Products) 1,000 9,938
Eiden Co. Ltd. (Retail) 1,000 9,256
Fast Retailing Co. (Retail) 100 43,989
Fuji Heavy Industries Ltd. (Automotive) 2,000 16,231
Hitachi Ltd. (Electronics) 1,000 11,876
Hitachi Ltd., ADR (Electronics) 210 25,594
Mikuni Coca-Cola Bottling Co. Ltd. (Food and Beverage
Products) 1,000 12,578
Mimasu Semiconductor Industry Co. Ltd. (Electronics) 600 11,118
Mitsubishi Motor (Automotive) 2,000 7,599
Nippon Telegraph & Telephone Co. (Utilities -
Telephone) 2 31,762
NTT Mobile Communications Network, Inc.
(Telecommunications) 2 82,034
Pioneer Corp. (Electronics) 700 20,431
Sony Corp. (Electronics) 100 14,127
Sony Corp. - New (Electronics) 100 14,224
Toshiba Corp. (Electronics) 2,000 20,382
----------
$ 416,048
- -----------------------------------------------------------------------------------------------------
Mexico - 0.9%
Grupo Continential S.A. (Food and Beverage Products) 5,700 $ 7,061
Kimberly-Clark de Mexico S.A. de C.V. (Forest and
Paper Products) 2,925 10,067
----------
$ 17,128
- -----------------------------------------------------------------------------------------------------
Netherlands - 8.4%
Akzo Nobel N.V. (Chemicals) 1,130 $ 48,241
Completel Europe N.V. (Telecommunications)* 40 797
Fox Kids Europe N.V. (Telecommunications)* 100 2,106
Fugro N.V. (Engineering)* 166 8,286
ING Groep N.V. (Financial Services)* 490 26,547
Koninklijke Philips Electronics N.V. (Electronics) 170 28,574
KPN N.V. (Telecommunications)* 330 37,795
Libertel N.V. (Cellular Telephones)* 660 14,088
----------
$ 166,434
- -----------------------------------------------------------------------------------------------------
New Zealand - 0.7%
Warehouse Group (Retail) 6,400 $ 13,004
- -----------------------------------------------------------------------------------------------------
Norway - 2.3%
NetCom ASA (Telecommunications)* 90 $ 4,500
P4 Radio Hele Norge ASA (Broadcasting) 2,850 14,353
Schibsted ASA (Publishing) 650 16,098
Sparebanken NOR (Banks and Credit Cos.) 600 11,305
----------
$ 46,256
- -----------------------------------------------------------------------------------------------------
Portugal - 1.7%
Banco Pinto & Sotto Mayor S.A. (Banks and Credit Cos.) 720 $ 16,279
Telecel - Comunicacoes Pessoais, S.A
(Telecommunications) 900 17,574
----------
$ 33,853
- -----------------------------------------------------------------------------------------------------
Singapore - 3.2%
DBS Group Holdings Ltd. (Financial Services)* 1,000 $ 13,206
Overseas Union Bank Ltd. (Banks and Credit Cos.) 5,142 23,137
Overseas-Chinese Banking Corp. Ltd. (Banks and Credit Cos.) 2,000 12,388
Singapore Press Holdings Ltd. (Printing and
Publishing) 1,000 15,953
----------
$ 64,684
- -----------------------------------------------------------------------------------------------------
South Korea
Mirae Corp., ADR (Electronics)* 80 $ 866
- -----------------------------------------------------------------------------------------------------
Spain - 0.9%
Repsol S.A. (Oils) 800 $ 17,544
- -----------------------------------------------------------------------------------------------------
Sweden - 2.6%
Micronic Laser Systems AB (Electronics)* 30 $ 550
NetCom AB (Telecommunications)* 80 6,912
Saab AB, "B" (Aerospace) 4,450 44,381
Tele1 Europe Holdings AB (Telecommunications)* 30 569
----------
$ 52,412
- -----------------------------------------------------------------------------------------------------
Switzerland - 0.9%
Nestle S.A. (Food and Beverage Products) 10 $ 17,931
- -----------------------------------------------------------------------------------------------------
United Kingdom - 20.1%
AstraZeneca Group PLC (Medical and Health Products) 790 $ 31,974
BP Amoco PLC (Oils) 2,400 22,260
British Aerospace PLC (Aerospace)* 2,800 15,598
Cable & Wireless Communications PLC
(Telecommunications) 2,950 49,535
Cable & Wireless Communications PLC, ADR
(Telecommunications)* 500 9,383
Capital Radio PLC (Broadcasting) 250 6,744
Carlton Communicatons PLC (Broadcasting) 2,150 25,938
CGU PLC (Insurance)* 2,000 27,726
Diageo PLC (Food and Beverage Products)* 2,200 16,571
Matalan PLC (Apparel and Textiles) 2,500 22,879
NDS Group PLC, ADR (Internet)* 30 2,115
Next PLC (Stores) 2,100 15,542
Reckitt Benckiser PLC (Consumer Goods and Services)* 1,800 17,046
Royal Bank of Scotland PLC (Banks and Credit Cos.) 1,177 17,328
Thus PLC (Internet)* 460 3,514
United News & Media PLC (Broadcasting) 2,400 31,475
Vodafone AirTouch PLC (Telecommunications)* 15,261 85,013
----------
$ 400,641
- -----------------------------------------------------------------------------------------------------
Venezuela - 0.4%
Mavesa S.A. (Consumer Goods and Services) 3,000 $ 7,875
- -----------------------------------------------------------------------------------------------------
Total Foreign Stocks $1,839,322
- -----------------------------------------------------------------------------------------------------
U.S. Stocks - 1.9%
Internet
VIA NET.WORKS, Inc.* 30 $ 797
- -----------------------------------------------------------------------------------------------------
Telecommunications - 1.9%
NTL, Inc.* 400 $ 37,125
- -----------------------------------------------------------------------------------------------------
Total U.S. Stocks $ 37,922
- -----------------------------------------------------------------------------------------------------
Total Stocks (Identified Cost, $1,577,809) $1,877,244
- -----------------------------------------------------------------------------------------------------
Short-Term Obligation - 4.0%
- -----------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 OMITTED) VALUE
- -----------------------------------------------------------------------------------------------------
Federal Home Loan Bank Corp., due 4/03/00, at
Amortized Cost $ 80 $ 79,973
- -----------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $1,657,782) $1,957,217
Other Assets, Less Liabilities - 1.8% 36,837
- -----------------------------------------------------------------------------------------------------
Net Assets - 100.0% $1,994,054
- -----------------------------------------------------------------------------------------------------
* Non-income producing security.
## SEC Rule 144A restriction.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited) - March 31, 2000
MFS INTERNATIONAL VALUE FUND
Stocks - 90.0%
<CAPTION>
- -----------------------------------------------------------------------------------------------------
ISSUER SHARES VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Foreign Stocks - 74.2%
Australia - 2.4%
Australia & New Zealand Banking Group Ltd. (Banks and
Credit Cos.)* 894 $ 5,635
QBE Insurance Group Ltd. (Insurance)* 4,212 17,867
--------
$ 23,502
- -----------------------------------------------------------------------------------------------------
Bermuda
FLAG Telecom Holdings Ltd. (Telecommunications)* 20 $ 452
- -----------------------------------------------------------------------------------------------------
Canada - 2.6%
BCE, Inc. (Telecommunications) 130 $ 16,307
Canadian National Railway Co. (Railroads) 360 9,607
--------
$ 25,914
- -----------------------------------------------------------------------------------------------------
Denmark - 0.7%
ISS International Service System (Commercial Services) 100 $ 6,559
- -----------------------------------------------------------------------------------------------------
France - 9.6%
Aventis S.A. (Pharmaceuticals) 90 $ 4,928
Axa (Insurance) 40 5,670
Castorama Dubois Investisse (Stores) 88 18,902
Pin Printemps Redout (Retailer) 48 8,895
Sanofi-Synthelabo S.A. (Medical and Health Products)* 152 5,798
STMicroelectronics Co. (Electronics)* 65 11,946
Television Francaise (Entertainment) 47 34,641
Total Fina S.A., ADR (Oils) 72 5,301
--------
$ 96,081
- -----------------------------------------------------------------------------------------------------
Germany - 1.9%
Henkel KGaA, Preferred (Chemicals) 127 $ 7,294
Prosieben Media AG, Preferred (Entertainment)* 100 12,061
--------
$ 19,355
- -----------------------------------------------------------------------------------------------------
Hong Kong - 1.8%
China Telecom Ltd. (Telecommunications) 2,000 $ 17,595
- -----------------------------------------------------------------------------------------------------
Italy - 3.0%
E.Biscom S.p.A. (Internet)* 20 $ 5,265
San Paolo - Imi S.p.A. (Banks and Credit Cos.) 670 9,177
Telecom Italia S.p.A. (Telecommunications) 1,020 15,231
--------
$ 29,673
- -----------------------------------------------------------------------------------------------------
Japan - 18.5%
Canon, Inc. (Special Products and Services) 1,000 $ 43,355
Fuji Heavy Industries Ltd. (Automotive) 2,000 16,232
Fujitsu Ltd. (Computer Hardware - Systems) 1,000 30,690
Hitachi Ltd. (Electronics) 1,000 11,876
Orix Corp. (Financial Services) 120 17,362
Sony Corp. (Electronics) 100 14,127
Sony Corp. - New (Electronics) 100 14,224
Terumo Corp. (Medical Products) 1,000 30,008
Uni Charm Corp. (Forest and Paper Products) 100 6,576
--------
$184,450
- -----------------------------------------------------------------------------------------------------
Mexico - 0.4%
Fomento Economico Mexicano S.A. (Food and Beverage Products) 90 $ 4,050
- -----------------------------------------------------------------------------------------------------
Netherlands - 4.9%
Akzo Nobel N.V. (Chemicals) 423 $ 18,059
Hunter Douglas N.V., ADR (Consumer Goods and Services)* 386 9,865
ING Groep N.V. (Financial Services)* 53 2,871
KPN N.V. (Telecommunications)* 100 11,453
Royal Dutch Petroleum Co., ADR (Oils) 113 6,505
--------
$ 48,753
- -----------------------------------------------------------------------------------------------------
Norway - 0.4%
Schibsted ASA (Publishing-Newspapers) 160 $ 3,963
- -----------------------------------------------------------------------------------------------------
Spain - 6.1%
Altadis S.A. (Tobacco)* 1,862 $ 24,596
Banco Popular Espanol S.A. (Banks and Credit Cos.)* 174 5,330
Repsol S.A. (Oils) 270 5,921
Telefonica S.A. (Telecommunications)* 1,004 25,371
--------
$ 61,218
- -----------------------------------------------------------------------------------------------------
Sweden - 2.8%
Saab AB, "B" (Aerospace) 1,533 $ 15,289
Skandia Forsakrings AB (Insurance) 262 12,427
Tele1 Europe Ab Ord Shs (Telecommunications)* 20 379
--------
$ 28,095
- -----------------------------------------------------------------------------------------------------
Switzerland - 1.5%
Carrier 1 Intl. S.A., ADR (Telecommunications)* 10 $ 957
Nestle S.A. (Food and Beverage Products) 8 14,345
--------
$ 15,302
- -----------------------------------------------------------------------------------------------------
United Kingdom - 17.6%
AstraZeneca Group PLC (Medical and Health Products) 154 $ 6,233
Boots Co. PLC (Retail)* 970 8,325
BP Amoco PLC, ADR (Oils) 312 16,556
British Aerospace PLC (Aerospace)* 1,316 7,331
British Telecommunications PLC (Telecommunications)* 623 11,651
Cable & Wireless Communications PLC (Telecommunications) 490 8,228
Carlton Communicatons PLC (Broadcasting)* 500 6,032
CGU PLC (Insurance)* 300 4,159
Compass Group (Restaurants and Food Service) 1,883 24,455
Diageo PLC (Food and Beverage Products)* 983 7,404
Lloyds TSB Group PLC (Banks and Credit Cos.)* 500 5,284
Matalan PLC (Retailer) 950 8,694
Reuters Group PLC (Business Services) 1,065 21,527
United News & Media PLC (Broadcasting) 800 10,492
Vodafone AirTouch PLC (Telecommunications)* 5,188 28,900
--------
$175,271
- -----------------------------------------------------------------------------------------------------
Total Foreign Stocks $740,233
- -----------------------------------------------------------------------------------------------------
U.S. Stocks - 15.8%
Automotive - 0.2%
Delphi Automotive Systems Corp. 118 $ 1,888
- -----------------------------------------------------------------------------------------------------
Business Machines - 2.8%
Hewlett-Packard Co. 190 $ 25,187
Xerox Corp. 94 2,444
--------
$ 27,631
- -----------------------------------------------------------------------------------------------------
Business Services - 0.1%
United Parcel Service, Inc. 20 $ 1,260
- -----------------------------------------------------------------------------------------------------
Chemicals - 0.5%
Monsanto Co. 100 $ 5,150
- -----------------------------------------------------------------------------------------------------
Conglomerates - 0.9%
Tyco International Ltd. 188 $ 9,376
- -----------------------------------------------------------------------------------------------------
Consumer Goods and Services - 0.5%
Philip Morris Co., Inc. 223 $ 4,711
- -----------------------------------------------------------------------------------------------------
Electrical Equipment - 2.5%
Emerson Electric Co. 200 $ 10,575
General Electric Co. 90 13,967
--------
$ 24,542
- -----------------------------------------------------------------------------------------------------
Financial Institutions - 1.6%
Goldman Sachs Group, Inc. 50 $ 5,256
Merrill Lynch & Co., Inc. 100 10,500
--------
$ 15,756
- -----------------------------------------------------------------------------------------------------
Food and Beverage Products - 1.4%
Anheuser-Busch Cos., Inc. 226 $ 14,068
- -----------------------------------------------------------------------------------------------------
Insurance - 2.8%
American International Group, Inc. 140 $ 15,330
ReliaStar Financial Corp. 386 13,076
--------
$ 28,406
- -----------------------------------------------------------------------------------------------------
Internet
VIA NET.WORKS, Inc.* 10 $ 266
- -----------------------------------------------------------------------------------------------------
Machinery - 0.4%
Ingersoll Rand Co. 100 $ 4,425
- -----------------------------------------------------------------------------------------------------
Medical and Health Products - 0.8%
Pharmacia & Upjohn, Inc. 130 $ 7,702
- -----------------------------------------------------------------------------------------------------
Oil Services - 1.3%
Atlantic Richfield Co. 100 $ 8,500
Halliburton Co. 100 4,100
--------
$ 12,600
- -----------------------------------------------------------------------------------------------------
Total U.S. Stocks $157,781
- -----------------------------------------------------------------------------------------------------
Total Stocks (Identified Cost, $703,144) $898,014
- -----------------------------------------------------------------------------------------------------
Short-Term Obligation - 9.0%
- -----------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
(000 OMITTED)
- -----------------------------------------------------------------------------------------------------
Federal Home Loan Bank Corp., due 4/03/00, at Amortized Cost $ 90 $ 89,970
- -----------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $793,114) $987,984
Other Assets, Less Liabilities - 1.0% 10,383
- -----------------------------------------------------------------------------------------------------
Net Assets - 100.0% $998,367
- -----------------------------------------------------------------------------------------------------
* Non-income producing security.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (Unaudited)
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
INTERNATIONAL STRATEGIC INTERNATIONAL
OPPORTUNITIES GROWTH VALUE
MARCH 31, 2000 FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value (identified cost, $1,509,825,
$1,657,782 and $793,114, respectively) $2,016,181 $1,957,217 $ 987,984
Cash 3,241 8,194 3,314
Foreign currency, at value (identified cost $704,
$735 and $3,327, respectively) 708 732 3,159
Receivable for investments sold 24,117 65,176 1,288
Receivable for Fund shares sold 19 -- --
Interest and dividends receivable 3,868 4,452 3,237
Other assets 7 7 7
---------- ---------- ----------
Total assets $2,048,141 $2,035,778 $ 998,989
---------- ---------- ----------
Liabilities:
Payable for investments purchased $ 55,343 $ 41,629 $ 575
Payable to affiliates -
Reimbursement fee 77 95 47
---------- ---------- ----------
Total liabilities $ 55,420 $ 41,724 $ 622
---------- ---------- ----------
Net assets $1,992,721 $1,994,054 $ 998,367
========== ========== ==========
Net assets consist of:
Paid-in-capital $1,322,898 $1,547,795 $ 712,667
Unrealized appreciation on investments and
translation of assets and liabilities in foreign
currencies 506,171 299,389 194,577
Accumulated undistributed net realized gain on
investments and foreign currency transactions 171,180 152,095 95,760
Accumulated net investment loss (7,528) (5,225) (4,637)
---------- ---------- ----------
Total $1,992,721 $1,994,054 $ 998,367
========== ========== ==========
Shares of beneficial interest outstanding:
Class A 6,614 23,356 81,564
Class I 109,527 113,187 12.977
---------- ---------- ----------
Total shares of beneficial interest outstanding 116,141 136,543 81,577
---------- ---------- ----------
Net assets:
Class A $ 113,390 $ 340,305 $ 998,208
Class I 1,879,331 1,653,749 158.90
---------- ---------- ----------
Total net assets $1,992,721 $1,994,054 $ 998,367
========== ========== ==========
Class A shares:
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $17.15 $14.57 $12.24
====== ====== ======
Class I shares:
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $17.16 $14.61 $12.24
====== ====== ======
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Statements of Operations (Unaudited)
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
INTERNATIONAL
INTERNATIONAL STRATEGIC INTERNATIONAL
OPPORTUNITIES GROWTH VALUE
SIX MONTHS ENDED MARCH 31, 2000 FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net investment income (loss):
Income -
Dividends $ 5,890 $ 8,643 $ 10,091
Interest 1,494 1,987 1,221
Foreign taxes withheld (749) (1,035) (1,472)
-------- -------- --------
Total investment income $ 6,635 $ 9,595 $ 9,840
-------- -------- --------
Expenses -
Management fee $ 7,850 $ 8,145 $ 5,149
Shareholder servicing agent fee 805 834 529
Distribution and service fee (Class A) 270 744 2,386
Administrative fee 90 92 55
Custodian fee 5,349 5,942 4,365
Printing 3,301 2,470 744
Postage 132 97 173
Auditing fees 9,600 9,601 9,775
Legal fees -- -- 129
Registration fees -- -- 1,510
Miscellaneous 1,988 615 334
-------- -------- --------
Total expenses $ 29,385 $ 28,540 $ 25,149
Fees paid indirectly (238) (216) (164)
Reduction of expenses by investment adviser and
distributor (15,056) (13,703) (15,740)
-------- -------- --------
Net expenses $ 14,091 $ 14,621 $ 9,245
-------- -------- --------
Net investment income (loss) $ (7,456) $ (5,026) $ 595
-------- -------- --------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) (identified cost basis) -
Investment transactions $179,923 $159,716 $101,576
Foreign currency transactions (504) 174 (11)
-------- -------- --------
Net realized gain on investments and foreign
currency transactions $179,419 $159,890 $101,565
-------- -------- --------
Change in unrealized appreciation (depreciation) -
Investments $476,698 $266,721 $ 92,997
Translation of assets and liabilities in foreign
currencies (117) (57) (195)
-------- -------- --------
Net unrealized gain on investments and foreign
currency translation $476,581 $266,664 $ 92,802
-------- -------- --------
Net realized and unrealized gain on
investments and foreign currency $656,000 $426,554 $194,367
-------- -------- --------
Increase in net assets from operations $648,544 $421,528 $194,962
======== ======== ========
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Statements of Changes in Net Assets
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
INTERNATIONAL OPPORTUNITIES FUND (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment loss $ (7,456) $ (2,270)
Net realized gain on investments and foreign currency
transactions 179,419 245,016
Net unrealized gain on investments and foreign currency
translation 476,581 142,028
---------- ----------
Increase in net assets from operations $ 648,544 $ 384,774
---------- ----------
Distributions declared to shareholders -
From net investment income (Class A) $ -- $ (1,540)
From net investment income (Class I) -- (2,627)
From net realized gain on investments and foreign currency
transactions (Class A) (12,575) --
From net realized gain on investments and foreign currency
transactions (Class I) (223,035) --
In excess of net investment income (Class A) -- (118)
In excess of net investment income (Class I) -- (201)
---------- ----------
Total distributions declared to shareholders $ (235,610) $ (4,486)
---------- ----------
Net increase (decrease) in net assets from Fund share
transactions $ 473,020 $ (538,795)
---------- ----------
Total increase (decrease) in net assets $ 885,954 $ (158,507)
Net assets:
At beginning of period 1,106,767 1,265,274
---------- ----------
At end of period (including accumulated net investment loss
of $7,528 and $72, respectively) $1,992,721 $1,106,767
========== ==========
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Statements of Changes in Net Assets - continued
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
INTERNATIONAL STRATEGIC GROWTH FUND (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment income (loss) $ (5,026) $ 2,131
Net realized gain on investments and foreign currency
transactions 159,890 270,480
Net unrealized gain on investments and foreign currency
translation 266,664 84,982
---------- ----------
Increase in net assets from operations $ 421,528 $ 357,593
---------- ----------
Distributions declared to shareholders -
From net investment income (Class A) $ (180) $ (335)
From net investment income (Class I) (841) (3,397)
From net realized gain on investments and foreign currency
transactions (Class A) (48,541) (2,982)
From net realized gain on investments and foreign currency
transactions (Class I) (227,152) (30,212)
---------- ----------
Total distributions declared to shareholders $ (276,714) $ (36,926)
---------- ----------
Net increase (decrease) in net assets from Fund share
transactions $ 580,670 $ (17,817)
---------- ----------
Total increase in net assets $ 725,484 $ 302,850
Net assets:
At beginning of period 1,268,570 965,720
---------- ----------
At end of period (including accumulated net investment
loss and accumulated undistributed net investment income
of $5,225 and $822, respectively) $1,994,054 $1,268,570
========== ==========
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Statements of Changes in Net Assets - continued
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
INTERNATIONAL VALUE FUND (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment income $ 595 $ 95
Net realized gain on investments and foreign currency
transactions 101,565 234,923
Net unrealized gain on investments and foreign
currency translation 92,802 75,336
---------- ----------
Increase in net assets from operations $ 194,962 $ 310,354
---------- ----------
Distributions declared to shareholders -
From net investment income (Class A) $ (4,280) $ (9,628)
From net investment income (Class I) (286) (1,179)
From net realized gain on investments and foreign
currency transactions (Class A) (212,682) (20,108)
From net realized gain on investments and foreign
currency transactions (Class I) (14,192) (2,464)
In excess of net investment income (Class A) -- (618)
In excess of net investment income (Class I) -- (76)
---------- ----------
Total distributions declared to shareholders $ (231,440) $ (34,073)
---------- ----------
Net decrease in net assets from Fund share transactions $ (99,034) $ (256,745)
---------- ----------
Total increase (decrease) in net assets $ (135,512) $ 19,536
Net assets:
At beginning of period 1,133,879 1,114,343
---------- ----------
At end of period (including accumulated net
investment loss of $4,637 and $666, respectively) $ 998,367 $1,133,879
========== ==========
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.15 $ 9.42 $10.00
------ ------ ------
Income from investment operations# -
Net investment income (loss)(S) $(0.08) $(0.01) $ 0.06
Net realized and unrealized gain (loss) on
investments and foreign currency 6.59 3.78 (0.64)
------ ------ ------
Total from investment operations $ 6.51 $ 3.77 $(0.58)
------ ------ ------
Less distributions declared to shareholders -
From net investment income $ -- $(0.04) $ --
From net realized gain on investments and foreign
currency transactions (2.51) -- --
In excess of net investment income -- -- +++ --
------ ------ ------
$
Total distributions declared to shareholders $(2.51) $(0.04) --
------ ------ ------
Net asset value - end of period $17.15 $13.15 $ 9.42
====== ====== ======
Total return 52.94%++ 40.11% (5.80)%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.77%+ 1.78% 1.75%+
Net investment income (loss) (0.97)%+ (0.13)% 0.54%+
Portfolio turnover 70% 162% 165%
Net assets at end of period (000 omitted) $ 113 $ 122 $ 573
(S) Subject to reimbursement by the Fund, the investment adviser has voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management and distribution and
service fees. In consideration, the Fund pays the investment adviser a fee not greater than 1.75% of average daily net
assets. In addition, the investment adviser and the distributor voluntarily waived their fees for the periods
indicated. To the extent actual expenses were over this limitation and the waivers had not been in place, the net
investment loss per share and the ratios would have been:
Net investment loss $(0.23) $(0.32) $(0.13)
Ratios (to average net assets):
Expenses## 4.10%+ 4.54% 3.57%+
Net investment loss (3.30)%+ (2.89)% (1.32)%+
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS I
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.16 $ 9.42 $10.00
------ ------ ------
Income from investment operations# -
Net investment income (loss)(S) $(0.07) $(0.03) $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency 6.58 3.81 (0.65)
------ ------ ------
Total from investment operations $ 6.51 $ 3.78 $(0.58)
------ ------ ------
Less distributions declared to shareholders -
From net investment income $ -- $(0.04) $ --
From net realized gain on investments and foreign
currency transactions (2.51) -- --
In excess of net investment income -- -- +++ --
------ ------ ------
$
Total distributions declared to shareholders $(2.51) $(0.04) --
------ ------ ------
Net asset value - end of period $17.16 $13.16 $ 9.42
====== ====== ======
Total return 52.89%++ 40.22% (5.80)%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.78%+ 1.78% 1.75%+
Net investment income (loss) (0.92)%+ (0.23)% 0.65%+
Portfolio turnover 70% 162% 165%
Net assets at end of period (000 omitted) $1,879 $ 985 $ 692
(S) Subject to reimbursement by the Fund, the investment adviser has voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management fee. In consideration,
the Fund pays the investment adviser a fee not greater than 1.75% of average daily net assets. In addition, the
investment adviser voluntarily waived its fee for the periods indicated. To the extent actual expenses were over this
limitation and the waiver had not been in place, the net investment loss per share and the ratios would have been:
Net investment loss $(0.22) $(0.29) $(0.07)
Ratios (to average net assets):
Expenses## 3.62%+ 4.04% 3.07%+
Net investment loss (2.76)%+ (2.49)% (0.71)%+
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL STRATEGIC GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.44 $ 9.68 $10.00
------ ------ ------
Income from investment operations# -
Net investment income (loss)(S) $(0.04) $ 0.05 $ 0.04
Net realized and unrealized gain (loss) on
investments and foreign currency 3.74 4.08 (0.36)
------ ------ ------
Total from investment operations $ 3.70 $ 4.13 $(0.32)
------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.01) $(0.04) $ --
From net realized gain on investments and foreign
currency transactions (2.56) (0.33) --
------ ------ ------
Total distributions declared to shareholders $(2.57) $(0.37) $ --
------ ------ ------
Net asset value - end of period $14.57 $13.44 $ 9.68
====== ====== ======
Total return 29.86%++ 43.79% (3.20)%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.78%+ 1.78% 1.77%+
Net investment income (loss) (0.62)%+ 0.44% 0.34%+
Portfolio turnover 57% 175% 103%
Net assets at end of period (000 omitted) $ 340 $ 253 $ 90
(S) Subject to reimbursement by the Fund, the investment adviser has voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management and distribution and
service fees. In consideration, the Fund pays the investment adviser a fee not greater than 1.75% of average daily net
assets. In addition, the investment adviser and the distributor voluntarily waived their fees for the periods
indicated. To the extent actual expenses were over this limitation and the waivers had not been in place, the net
investment loss per share and the ratios would have been:
Net investment loss $(0.18) $(0.39) $(0.20)
Ratios (to average net assets):
Expenses## 3.84%+ 5.23% 3.88%+
Net investment loss (2.68)%+ (3.01)% (1.79)%+
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL STRATEGIC GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS I
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.48 $ 9.70 $10.00
------ ------ ------
Income from investment operations# -
Net investment income (loss)(S) $(0.04) $ 0.02 $ 0.05
Net realized and unrealized gain (loss) on
investments and foreign currency 3.74 4.13 (0.35)
------ ------ ------
Total from investment operations $ 3.70 $ 4.15 $(0.30)
------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.01) $(0.04) $ --
From net realized gain on investments and foreign
currency transactions (2.56) (0.33) --
------ ------ ------
Total distributions declared to shareholders $(2.57) $(0.37) $ --
------ ------ ------
Net asset value - end of period $14.61 $13.48 $ 9.70
====== ====== ======
Total return 29.78%++ 43.91% (3.00)%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.78%+ 1.78% 1.77%+
Net investment income (loss) (0.60)%+ 0.16% 0.48%+
Portfolio turnover 57% 175% 103%
Net assets at end of period (000 omitted) $1,654 $1,015 $ 876
(S) Subject to reimbursement by the Fund, the investment adviser has voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management fee. In consideration,
the Fund pays the investment adviser a fee not greater than 1.75% of average daily net assets. In addition, the
investment adviser voluntarily waived its fee for the periods indicated. To the extent actual expenses were over this
limitation and the waiver had not been in place, the net investment loss per share and the ratios would have been:
Net investment loss $(0.15) $(0.36) $(0.13)
Ratios (to average net assets):
Expenses## 3.34%+ 4.73% 3.38%+
Net investment loss (2.16)%+ (2.79)% (1.15)%+
*For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.24 $10.46 $10.00
------ ------ ------
Income from investment operations# -
Net investment income(S) $ 0.01 $ -- +++ $ 0.10
Net realized and unrealized gain on investments and
foreign currency 2.29 3.10 0.36
------ ------ ------
Total from investment operations $ 2.30 $ 3.10 $ 0.46
------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.07) $(0.10) $ --
From net realized gain on investments and foreign
currency transactions (3.23) (0.21) --
In excess of net investment income -- (0.01) --
------ ------ ------
Total distributions declared to shareholders $(3.30) $(0.32) $ --
------ ------ ------
Net asset value - end of period $12.24 $13.24 $10.46
====== ====== ======
Total return 19.60%++ 30.01% 4.70%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.78%+ 1.77% 1.77%+
Net investment income 0.14%+ 0.00% 0.98%+
Portfolio turnover 34% 107% 71%
Net assets at end of period (000 omitted) $ 998 $ 929 $1,002
(S) Subject to reimbursement by the Fund, the investment adviser voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management and distribution and
service fees. In consideration, the Fund pays the investment adviser a reimbursement fee not greater than 1.75% of
average daily net assets. In addition, the investment adviser and the distributor voluntarily waived their fees for
the periods indicated. To the extent actual expenses were over this limitation and the waivers had not been in place,
the net investment loss per share and the ratios would have been:
Net investment loss $(0.18) $(0.28) $(0.13)
Ratios (to average net assets):
Expenses## 4.81%+ 4.07% 3.92%+
Net investment loss (2.89)%+ (2.30)% (1.19)%+
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH, 31, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998*
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CLASS I
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.25 $10.47 $10.00
------ ------ ------
Income from investment operations# -
Net investment income (loss)(S) $(0.01) $ 0.01 $ 0.11
Net realized and unrealized gain on investments and
foreign currency 2.30 3.09 0.36
------ ------ ------
Total from investment operations $ 2.29 $ 3.10 $ 0.47
------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.07) $(0.10) $ --
From net realized gain on investments and foreign
currency transactions (3.23) (0.21) --
In excess of net investment income -- (0.01) --
------ ------ ------
Total distributions declared to shareholders $(3.30) $(0.32) $ --
------ ------ ------
Net asset value - end of period $12.24 $13.25 $10.47
====== ====== ======
Total return 19.46%++ 30.11% 4.70%++
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.78%+ 1.77% 1.77%+
Net investment income (loss) (0.16)%+ 0.08% 1.00%+
Portfolio turnover 34% 107% 71%
Net assets at end of period (000 omitted) $ -- $ 205 $ 112
(S) Subject to reimbursement by the Fund, the investment adviser voluntarily agreed under a temporary expense
reimbursement agreement to pay all of the Fund's operating expenses, exclusive of management fee. In consideration,
the Fund pays the investment adviser a reimbursement fee not greater than 1.75% of average daily net assets. In
addition, the investment adviser voluntarily waived its fee for the periods indicated. To the extent actual expenses
were over this limitation and the waiver had not been in place, the net investment loss per share and the ratios would
have been:
Net investment loss $(0.18) $(0.21) $(0.07)
Ratios (to average net assets):
Expenses## 4.31%+ 3.58% 3.42%+
Net investment loss (2.69)%+ (1.73)% (0.67)%+
* For the period from the commencement of the Fund's investment operations, October 9, 1997, through September 30, 1998.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(1) Business and Organization
MFS International Opportunities Fund, MFS International Strategic Growth Fund,
and MFS International Value Fund (the Funds) are each a diversified series of
MFS Series Trust V (the Trust). The Trust 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.
(2) Significant Accounting Policies
General - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. The Funds
can invest in foreign securities. Investments in foreign securities are
vulnerable to the effects of changes in the relative values of the local
currency and the U.S. dollar and to the effects of changes in each country's
legal, political, and economic environment.
Investment Valuations - Equity securities listed on securities exchanges or
reported through the NASDAQ system are reported at market value using last
sale prices. Unlisted equity securities or listed equity securities for which
last sale prices are not available are reported at market value using last
quoted bid prices. Short-term obligations, which mature in 60 days or less,
are valued at amortized cost, which approximates market value. Securities for
which there are no such quotations or valuations are valued in good faith, at
fair value, by the Trustees.
Foreign Currency Translation - Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases and
sales of foreign investments, income, and expenses are converted into U.S.
dollars based upon currency exchange rates prevailing on the respective dates of
such transactions. Gains and losses attributable to foreign currency exchange
rates on sales of securities are recorded for financial statement purposes as
net realized gains and losses on investments. Gains and losses attributable to
foreign exchange rate movements on income and expenses are recorded for
financial statement purposes as foreign currency transaction gains and losses.
That portion of both realized and unrealized gains and losses on investments
that results from fluctuations in foreign currency exchange rates is not
separately disclosed.
Forward Foreign Currency Exchange Contracts - Each Fund may enter into forward
foreign currency exchange contracts for the purchase or sale of a specific
foreign currency at a fixed price on a future date. Risks may arise upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts and from unanticipated movements in the
value of a foreign currency relative to the U.S. dollar. Each Fund may enter
into forward contracts for hedging purposes as well as for non-hedging
purposes. For hedging purposes, the Fund may enter into contracts to deliver
or receive foreign currency it will receive from or require for its normal
investment activities. Each Fund may also use contracts in a manner intended
to protect foreign currency-denominated securities from declines in value due
to unfavorable exchange rate movements. For non-hedging purposes, the Fund may
enter into contracts with the intent of changing the relative exposure of the
Fund's portfolio of securities to different currencies to take advantage of
anticipated changes. The forward foreign currency exchange contracts are
adjusted by the daily exchange rate of the underlying currency and any gains
or losses are recorded as unrealized until the contract settlement date. On
contract settlement date, the gains or losses are recorded as realized gains
or losses on foreign currency transactions.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All discount is
accreted for financial statement and tax reporting purposes as required by
federal income tax regulations. Dividends received in cash are recorded on the
ex-dividend date. Dividend and interest payments received in additional
securities are recorded on the ex-dividend or ex-interest date in an amount
equal to the value of the security on such date.
Fees Paid Indirectly - Each Fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by each
Fund. This amount is shown as a reduction of total expenses on the Statement of
Operations.
Tax Matters and Distributions - Each Fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is provided.
Distributions to shareholders are recorded on the ex-dividend date. Each Fund
distinguishes between distributions on a tax basis and a financial reporting
basis and requires that only distributions in excess of tax basis earnings and
profits be reported in the financial statements as distributions from paid-in
capital. Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or net realized gains.
Multiple Classes of Shares of Beneficial Interest - Each Fund offers multiple
classes of shares, which differ in their respective distribution and service
fees. All shareholders bear the common expenses of the Fund based on daily net
assets of each class, without distinction between share classes. Dividends are
declared separately for each class. Differences in per share dividend rates are
generally due to differences in separate class expenses.
(3) Transactions with Affiliates Investment Adviser - Each Fund has an
investment advisory agreement with Massachusetts Financial Services Company
(MFS) to provide overall investment advisory and administrative services, and
general office facilities. The management fee is computed daily and paid monthly
at the following annual rates:
First $500 million of average net assets 0.975%
Average net assets in excess of $500 million 0.925%
The investment adviser has voluntarily agreed to waive its fee, which is shown
as a reduction of expenses in the Statement of Operations.
Each Fund has a temporary expense reimbursement agreement whereby MFS has
voluntarily agreed to pay all of each Fund's operating expenses, exclusive of
management, distribution, and service fees. Each Fund in turn will pay MFS an
expense reimbursement fee not greater than 1.75% of average daily net assets. To
the extent that the expense reimbursement fee exceeds the Fund's actual
expenses, the excess will be applied to amounts paid by MFS in prior years. At
March 31, 2000, the aggregate unreimbursed expenses amounted to:
INTERNATIONAL INTERNATIONAL INTERNATIONAL
OPPORTUNITIES STRATEGIC GROWTH VALUE
FUND FUND FUND
------------------------------------------------------
$26,340 $32,386 $25,685
Each Fund pays no compensation directly to its Trustees who are officers of
the investment adviser, or to officers of the Fund, all of whom receive
remuneration for their services to the Fund from MFS. Certain officers and
Trustees of the Fund are officers or directors of MFS, MFS Fund Distributors,
Inc., (MFD), and MFS Service Center, Inc. (MFSC). The Trustees are currently
not receiving any payments for their services to each Fund.
Administrator - Each Fund has an administrative services agreement with MFS to
provide the Fund with certain financial, legal, shareholder servicing,
compliance, and other administrative services. As a partial reimbursement for
the cost of providing these services, each Fund incurs an administrative fee
at the following annual percentages of the Fund's average daily net assets:
First $1 billion 0.0150%
Next $1 billion 0.0125%
Next $1 billion 0.0100%
In excess of $3 billion 0.0000%
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, did not
receive any sales charges on sales of Class A shares of each Fund for the six
months ended March 31, 2000.
The Trustees have adopted a distribution plan for Class A shares pursuant to
Rule 12b-1 of the Investment Company Act of 1940 as follows:
Each Fund's distribution plan provides that the Fund will pay MFD up to 0.50%
per annum of its average daily net assets attributable to Class A shares in
order that MFD may pay expenses on behalf of the Fund related to the
distribution and servicing of its shares. These expenses include a service fee
paid to each securities dealer that enters into a sales agreement with MFD of
up to 0.25% per annum of the Fund's average daily net assets attributable to
Class A shares which are attributable to that securities dealer and a
distribution fee to MFD of up to 0.25% per annum of the Fund's average daily
net assets attributable to Class A shares. Distribution and service fees under
the Class A distribution plan are currently being waived.
Certain Class A shares are subject to a contingent deferred sales charge in
the event of a shareholder redemption within 12 months following purchase.
There were no contingent deferred sales charges imposed during the six months
ended March 31, 2000.
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as
a percentage of each Fund's average daily net assets at an annual rate of
0.10%.
(4) Portfolio Securities
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions, and short-term obligations, were as follows.
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL INTERNATIONAL
OPPORTUNITIES STRATEGIC GROWTH VALUE
FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments (non-U.S. government securities) $1,357,863 $1,144,083 $335,139
---------- ---------- --------
SALES
Investments (non-U.S. government securities) $1,079,320 $ 900,136 $719,918
---------- ---------- --------
</TABLE>
The cost and unrealized appreciation and depreciation in the value of the
investments owned by each Fund, as computed on a federal income tax basis, are
as follows:
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL INTERNATIONAL
OPPORTUNITIES STRATEGIC GROWTH VALUE
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aggregate cost $1,509,825 $1,657,782 $794,569
---------- ---------- --------
Gross unrealized appreciation $ 564,895 $ 366,746 $234,941
Gross unrealized depreciation (58,539) (67,311) (41,526)
---------- ---------- --------
Net unrealized appreciation $ 506,356 $ 299,435 $193,415
========== ========== ========
</TABLE>
(5) Shares of Beneficial Interest
Each Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest. Transactions in
Fund shares were as follows:
<TABLE>
Class A Shares
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,136 $ 18,125 350 $ 4,265
Shares issued to shareholders in
reinvestment of distributions 875 12,562 159 1,657
Shares reacquired (4,643) (73,263) (52,069) (594,263)
------- --------- --------- ---------
Net decrease (2,632) $ (42,576) (51,560) $(588,341)
======= ========= ========= =========
</TABLE>
<TABLE>
Class I Shares
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 24,543 $ 385,818 24,543 $ 308,165
Shares issued to shareholders in
reinvestment of distributions 15,520 223,022 272 2,828
Shares reacquired (5,410) (93,244) (23,398) (261,447)
------- --------- --------- ---------
Net increase 34,653 $ 515,596 1,417 $ 49,546
======= ========= ========= =========
</TABLE>
<TABLE>
Class A Shares
<CAPTION>
INTERNATIONAL STRATEGIC GROWTH FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,337 $ 18,654 9,673 $ 117,480
Shares issued to shareholders in
reinvestment of distributions 3,756 48,708 320 3,315
Shares reacquired (577) (7,963) (435) (4,607)
------- --------- --------- ---------
Net increase 4,516 $ 59,399 9,558 $ 116,188
======= ========= ========= =========
</TABLE>
<TABLE>
Class I Shares
<CAPTION>
INTERNATIONAL STRATEGIC GROWTH FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 21,340 $ 307,941 26,952 $ 332,055
Shares issued to shareholders in
reinvestment of distributions 17,537 227,980 3,241 33,607
Shares reacquired (1,033) (14,650) (45,157) (499,667)
------- --------- --------- ---------
Net increase (decrease) 37,844 $ 521,271 (14,964) $(134,005)
======= ========= ========= =========
</TABLE>
<TABLE>
Class A Shares
<CAPTION>
INTERNATIONAL VALUE FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold -- $ -- 279 $ 3,219
Shares issued to shareholders in
reinvestment of distributions 19,336 216,946 2,693 30,353
Shares reacquired (7,907) (101,072) (28,592) (349,000)
------- --------- --------- ---------
Net increase (decrease) 11,429 $ 115,874 (25,620) $(315,428)
======= ========= ========= =========
</TABLE>
<TABLE>
Class I Shares
<CAPTION>
INTERNATIONAL VALUE FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 3,786 $ 50,886 6,036 $ 75,977
Shares issued to shareholders in
reinvestment of distributions 1,287 14,461 330 3,718
Shares reacquired (20,548) (280,255) (1,623) (21,012)
------- --------- --------- ---------
Net increase (decrease) (15,475) $(214,908) 4,743 $ 58,683
======= ========= ========= =========
</TABLE>
(6) Line of Credit
Each Fund and other affiliated funds participate in an $820 million unsecured
line of credit provided by a syndication of banks under a line of credit
agreement. Borrowings may be made to temporarily finance the repurchase of
Fund shares. Interest is charged to each Fund, based on its borrowings, at a
rate equal to the bank's base rate. In addition, a commitment fee, based on
the average daily unused portion of the line of credit, is allocated among the
participating funds at the end of each quarter. The commitment fees allocated
to the Funds for the six months ended March 31, 2000, were as follows:
INTERNATIONAL INTERNATIONAL INTERNATIONAL
OPPORTUNITIES STRATEGIC GROWTH VALUE
FUND FUND FUND
-----------------------------------------------------------------------
$9 $6 $4
The Funds had no significant borrowings during the period.
--------------------------------
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus.
<PAGE>
MFS(R) INTERNATIONAL OPPORTUNITIES FUND
MFS(R) INTERNATIONAL STRATEGIC GROWTH FUND
MFS(R) INTERNATIONAL VALUE FUND
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INVESTMENT MANAGEMENT
We invented the mutual fund(R)
500 Boylston Street
Boston, MA 02116-3741
(c)2000 MFS Investment Management.(R)
MFS(R) investment products are offered through MFS Fund Distributors, Inc.,
500 Boylston Street, Boston, MA 02116.
INC-3-V 5/00 2M
