<PAGE>
[logo] MFS Semiannual Report
THE FIRST NAME IN MUTUAL FUNDS June 30, 1995
MFS(R) Growth Opportunities Fund
[Graphic omitted: art work: silhouette of two men talking
in front of a large window.]
<PAGE>
MFS(R) GROWTH OPPORTUNITIES FUND
<TABLE>
<S> <C>
TRUSTEES CUSTODIAN
A. Keith Brodkin* - Chairman and President State Street Bank and Trust Company
Richard B. Bailey* - Private Investor; INVESTOR INFORMATION
Former Chairman and Director (until 1991), For MFS stock and bond market outlooks,
Massachusetts Financial Services Company call toll free: 1-800-637-4458 anytime from
a touch-tone telephone.
Peter G. Harwood - Former Financial Vice
President, Treasurer and Director (until 1988), For information on MFS mutual funds,
Loomis, Sayles & Co., Inc. call your financial adviser or, for an
information kit, call toll free:
J. Atwood Ives - Chairman and Chief Executive 1-800-637-2929 any business day from
Officer, Eastern Enterprises 9 a.m. to 5 p.m. Eastern time (or leave
a message anytime).
Lawrence T. Perera - Partner, Hemenway & Barnes
INVESTOR SERVICE
William J. Poorvu - Adjunct Professor, Harvard MFS Service Center, Inc.
University Graduate School of Business P.O. Box 2281
Administration Boston, MA 02107-9906
Charles W. Schmidt - Private Investor; For general information, call toll free:
Former Senior Vice President and Group Executive 1-800-225-2606 any business day from
(until 1990), Raytheon Company 8 a.m. to 8 p.m. Eastern time.
Arnold D. Scott* - Senior Executive Vice President For service to speech- or hearing-impaired,
and Secretary, Massachusetts Financial Services call toll free: 1-800-637-6576 any business
Company day from 9 a.m. to 5 p.m. Eastern time.
(To use this service, your phone must be equipped
Jeffrey L. Shames* - President, Massachusetts with a Telecommunications Device for the Deaf.)
Financial Services Company
For share prices, account balances and
Elaine R. Smith - Independent Consultant exchanges, call toll free: 1-800-MFS-TALK
(1-800-637-8255) anytime from a touch-tone
David B. Stone - Chairman, North American telephone.
Management Corp. (Investment Advisers)
INVESTMENT ADVISER
Massachusetts Financial Services Company TOP-RATED SERVICE
500 Boylston Street
Boston, Massachusetts 02116-3741 [seal: NUMBER 1 DALBAR]
MFS was rated first when securities firms evaluated
DISTRIBUTOR the quality of service they receive from 40 mutual
MFS Fund Distributors, Inc. fund companies. MFS got high marks for answering
500 Boylston Street calls quickly, processing transactions accurately
Boston, Massachusetts 02116-3741 and sending statements out on time.
(Source: 1994 DALBAR Survey)
PORTFOLIO MANAGER
Paul M. McMahon*
TREASURER
W. Thomas London*
ASSISTANT TREASURER
James O. Yost*
SECRETARY
Stephen E. Cavan*
ASSISTANT SECRETARY
James R. Bordewick, Jr.*
*Affiliated with the Investment Adviser
</TABLE>
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
During the six months ended June 30, 1995, Class A shares of the Fund provided a
total return of +19.96%, while Class B shares had a total return of +19.34%.
Both of these returns assume the reinvestment of distributions but exclude the
effects of any sales charges. Over this same period, the Standard & Poor's 500
Composite Index (the S&P 500), a popular, unmanaged index of common stock
performance, had a return of +20.19%. A discussion of the factors which
contributed to the Fund's performance relative to the S&P 500 may be found in
the Portfolio Performance and Strategy section of this letter.
Economic Environment
In response to increasing evidence of economic weakness during the second
quarter, the Federal Reserve Board has reversed policy by lowering the federal
funds rate 0.25%. This marks the first time in three years that this rate has
been lowered, and brings to at least a temporary conclusion the Federal
Reserve's 18-month monetary-tightening initiative. Although inflation at the
consumer level has been trending higher this year at a 3 1/2% annualized rate,
recent evidence suggests that these pressures are beginning to moderate,
allowing the Federal Reserve to shift its policy focus toward sustaining
economic growth. Despite the economy's apparent lackluster performance in the
second quarter, we do not anticipate that the economy will lapse into recession.
Rather, we believe it will continue to expand at a more moderate, sustainable
pace, supported by lower prevailing interest rates and a healthy export sector.
Portfolio Performance and Strategy
The stock market has maintained its upward momentum, as stock prices have
responded to the cessation of the Federal Reserve's monetary-tightening
initiative and to the belief that gains in corporate earnings may remain
substantial. Although we expect growth to remain moderate, our outlook for
corporate earnings growth remains favorable. The Fund's performance during the
past six months benefited from a significant weighting in the technology sector,
which had strong results from stocks related to personal computer businesses
such as Intel, Microsoft and Compaq Computer. Our holdings in financial
institutions such as MBNA Corp., a credit card issuer, also rose significantly
as interest rates declined during the first half of the year. Our investments in
entertainment stocks like Promus Cos. also staged a strong rally following weak
performance during 1994. The only area of the portfolio that showed weakness was
the medical services sector, which included companies such as United Healthcare,
a health maintenance organization. These holdings were impacted by concerns
about competitive pressure, which led to negative performance in the sector.
When selecting investments for the portfolio we continue to look for
companies which we believe possess the following key factors: earnings momentum,
reasonable valuations, good management, a strong balance sheet, and positive
secular trends. Given that current price/earnings multiples are reasonable, we
believe earnings momentum is necessary to achieve further stock price
appreciation. Currently, our largest concentration remains in the technology
area, where we believe strong spending by both corporations and consumers is
likely to continue into the coming year. Other large weightings are in
entertainment, financial institutions, and a number of industrial holdings that
we believe should benefit from a continuation of economic growth over the coming
year. Our investments in foreign securities remain low as we are focusing more
on U.S. stocks with stronger earnings fundamentals.
We appreciate your support and welcome any questions or comments you
may have.
Respectfully,
/s/A. Keith Brodkin /s/Paul M. McMahon
A. Keith Brodkin Paul M. McMahon
Chairman and President Portfolio Manager
July 18, 1995
PORTFOLIO MANAGER PROFILE
Paul McMahon joined the MFS Research Department in 1981 as an industry
specialist. A graduate of Holy Cross College and the Amos Tuck School of
Business Administration of Dartmouth College, he was named Investment Officer in
1983; Assistant Vice President - Investments in 1984; Vice President -
Investments in 1986; and Senior Vice President and Portfolio Manager of MFS
Growth Opportunities Fund in 1992.
PERFORMANCE SUMMARY
Because mutual funds like MFS Growth Opportunities Fund are designed for
investors with long-term goals, we have provided cumulative results as well as
the average annual total returns for Class A and Class B shares for the
applicable time periods.
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN
Class A Investment Results
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------
Cumulative Total Return* +19.96% +26.46% +65.87% +178.21%
- ------------------------------------------------------------------------------
Average Annual Total Return* -- +26.46% +10.65% + 10.77%
- ------------------------------------------------------------------------------
The average annual total returns, calculated for the period ended as of the most
recent calendar quarter as required by the Securities and Exchange Commission
(the SEC), with all distributions reinvested and reflecting the maximum sales
charge of 5.75% on the initial investment for the 1-, 5- and 10- year periods
ended June 30, 1995, were +19.21%, +9.35% and +10.12%, respectively.
Class B Investment Results
(net asset value change including reinvested distributions)
9/07/93(+)-
6 Months 1 Year 6/30/95
- ------------------------------------------------------------------------------
Cumulative Total Return(++) +19.34% +25.14% +16.71%
- ------------------------------------------------------------------------------
Average Annual Total Return(++) -- +25.14% + 8.91%
- ------------------------------------------------------------------------------
The average annual total returns, calculated for the period ended as of the most
recent calendar quarter as required by the SEC, with all distributions
reinvested and reflecting the current maximum contingent deferred sales charge
(CDSC) of 4% for the 1-year period ended June 30, 1995 and for the period from
September 7, 1993(+) to June 30, 1995, were +21.14% and +6.91%, respectively.
All results represent past performance and are not necessarily an indication of
future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost. All
Class A share results reflect the applicable expense subsidy which is explained
in the Notes to Financial Statements. Had the subsidy not been in effect, the
results would have been less favorable. The subsidy may be rescinded by MFS at
any time.
* These results do not include the sales charge. If the charge had been
included, the results would have been lower.
(+) Commencement of offering of this class of shares.
(++) These results do not include any CDSC. If the charge had been included, the
results would have been lower.
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) - June 30, 1995
Common Stocks - 99.6%
- -----------------------------------------------------------------------------
Issuer Shares Value
- -----------------------------------------------------------------------------
U.S. Common Stocks - 95.1%
Aerospace - 3.4%
Lockheed Martin Corp. 108,500 $ 6,849,062
McDonnell Douglas Corp. 206,500 15,848,875
------------
$ 22,697,937
- -----------------------------------------------------------------------------
Agricultural Products - 0.9%
AGCO Corp. 158,000 $ 5,925,000
- -----------------------------------------------------------------------------
Airlines - 1.6%
AMR Corp.* 22,600 $ 1,686,525
Southwest Airlines Co. 393,100 9,385,263
------------
$ 11,071,788
- -----------------------------------------------------------------------------
Automotive - 3.3%
APS Holding Corp., "A"* 275,000 $ 7,253,125
General Motors Corp. 92,700 4,345,313
Harley-Davidson, Inc. 288,800 7,039,500
Superior Industries International, Inc. 113,900 3,545,137
------------
$ 22,183,075
- -----------------------------------------------------------------------------
Business Machines - 2.0%
International Business Machines Corp. 64,300 $ 6,172,800
Motorola, Inc. 112,600 7,558,275
------------
$ 13,731,075
- -----------------------------------------------------------------------------
Business Machines - Peripherals - 0.4%
Exabyte Corp.* 202,400 $ 2,808,300
- -----------------------------------------------------------------------------
Business Services - 2.2%
Ceridian Corp.* 285,000 $ 10,509,375
Policy Management Systems Corp.* 87,500 4,025,000
------------
$ 14,534,375
- -----------------------------------------------------------------------------
Cellular Telephones - 1.6%
AirTouch Communications, Inc.* 374,500 $ 10,673,250
- -----------------------------------------------------------------------------
Chemicals - 1.9%
Geon Co. 248,400 $ 7,141,500
Union Carbide Corp. Holding Co. 175,000 5,840,625
------------
$ 12,982,125
- -----------------------------------------------------------------------------
Computer Software - Personal Computers - 5.8%
Autodesk, Inc. 137,200 $ 5,899,600
Electronic Arts, Inc.* 492,900 13,369,912
Microsoft Corp.* 201,200 18,183,450
Spectrum Holobyte, Inc.* 127,800 1,829,137
------------
$ 39,282,099
- -----------------------------------------------------------------------------
Computer Software - Systems - 8.8%
BMC Software, Inc.* 131,700 $ 10,173,825
Cadence Design Systems, Inc.* 285,000 9,226,875
Compaq Computer Corp.* 242,500 11,003,438
Compuware Corp.* 190,000 5,842,500
General Motors Corp., "E" 107,800 4,689,300
Oracle Systems Corp.* 182,200 7,037,475
Structural Dynamics Research Corp.* 270,000 3,493,125
Sybase, Inc.* 264,900 7,781,437
------------
$ 59,247,975
- -----------------------------------------------------------------------------
Consumer Goods and Services - 7.7%
Colgate-Palmolive Co. 62,200 $ 4,548,375
Duracell International, Inc. 157,400 6,807,550
Philip Morris Cos., Inc. 286,600 21,315,875
Tyco International Ltd. 354,900 19,164,600
------------
$ 51,836,400
- -----------------------------------------------------------------------------
Containers - 0.6%
Stone Container Corp.* 184,300 $ 3,916,375
- -----------------------------------------------------------------------------
Defense Electronics - 0.7%
Loral Corp. 93,600 $ 4,843,800
- -----------------------------------------------------------------------------
Electronics - 7.7%
Analog Devices, Inc. 225,000 $ 7,650,000
Applied Materials, Inc.* 45,400 3,932,775
Intel Corp. 348,600 22,070,738
LSI Logic Corp.* 300,000 11,737,500
National Semiconductor Corp.* 226,200 6,277,050
------------
$ 51,668,063
- -----------------------------------------------------------------------------
Entertainment - 6.2%
Argosy Gaming Corp.* 261,900 $ 3,371,963
Circus Circus Enterprises, Inc.* 274,600 9,679,650
Grand Casinos, Inc.* 61,400 2,172,025
Mirage Resorts, Inc.* 194,700 5,962,687
National Gaming Corp.* 27,500 237,187
Promus Cos., Inc.* 653,700 18,385,313
Sky City Ltd.* 135,000 1,916,038
------------
$ 41,724,863
- -----------------------------------------------------------------------------
Financial Institutions - 7.2%
Beneficial Corp. 77,700 $ 3,418,800
Federal Home Loan Mortgage Corp. 72,400 4,977,500
Finova Group, Inc. 211,400 7,399,000
First USA, Inc. 109,800 4,872,375
Franklin Resources, Inc. 36,100 1,606,450
Green Tree Financial Corp. 146,600 6,505,375
MBNA Corp. 140,000 4,725,000
Schwab (Charles) Corp. 278,100 12,062,588
United Asset Management Co. 93,300 3,323,812
------------
$ 48,890,900
- -----------------------------------------------------------------------------
Food and Beverage Products - 1.8%
General Mills, Inc. 104,300 $ 5,358,413
Pioneer Hi-Bred International 42,600 1,789,200
Universal Foods Corp. 159,100 5,150,862
-----------
$ 12,298,475
- -----------------------------------------------------------------------------
Forest and Paper Products - 1.3%
Boise Cascade Corp. 28,100 $ 1,138,050
Georgia-Pacific Corp. 85,000 7,373,750
------------
$ 8,511,800
- -----------------------------------------------------------------------------
Machinery - 3.1%
Caterpillar, Inc. 177,100 $ 11,378,675
Deere & Co., Inc. 113,700 9,735,562
IDEX Corp. 3,000 100,500
------------
$ 21,214,737
- -----------------------------------------------------------------------------
Medical and Health Products - 2.4%
Johnson & Johnson 153,100 $ 10,353,387
Pfizer, Inc. 40,300 3,722,713
Sofamor Danek Group, Inc.* 92,200 2,086,025
------------
$ 16,162,125
- -----------------------------------------------------------------------------
Medical and Health Technology and Services - 6.4%
Foundation Health Corp.* 201,100 $ 5,429,700
Genesis Health Ventures, Inc.* 80,800 2,393,700
Health Care & Retirement Corp.* 126,300 3,694,275
Living Centers of America* 141,500 3,838,187
Manor Care, Inc. 343,200 9,995,700
Mariner Health Group, Inc.* 169,100 1,902,375
United Healthcare Corp. 378,800 15,672,850
------------
$ 42,926,787
- -----------------------------------------------------------------------------
Metals and Minerals - 3.5%
Allegheny Ludlum Corp. 192,300 $ 3,797,925
Minerals Technologies, Inc. 170,000 6,120,000
Nucor Corp. 130,500 6,981,750
Phelps Dodge Corp. 113,700 6,708,300
------------
$ 23,607,975
- -----------------------------------------------------------------------------
Oils - 1.3%
Enron Oil & Gas Co. 170,800 $ 3,714,900
Mitchell Energy & Development Corp. 290,700 5,196,263
------------
$ 8,911,163
- -----------------------------------------------------------------------------
Photographic Products - 0.9%
Eastman Kodak Co. 104,700 $ 6,347,437
- -----------------------------------------------------------------------------
Pollution Control - 1.1%
Browning-Ferris Industries 198,700 $ 7,178,038
- -----------------------------------------------------------------------------
Railroads - 1.0%
Wisconsin Central Transportation Corp.* 133,200 $ 6,526,800
- -----------------------------------------------------------------------------
Restaurants and Lodging - 4.2%
Brinker International, Inc.* 473,100 $ 8,160,975
Darden Restaurants, Inc.* 104,300 1,134,263
Hospitality Franchise System, Inc.* 268,000 9,279,500
Promus Hotel Corp.* 448,650 9,870,300
-----------
$ 28,445,038
- -----------------------------------------------------------------------------
Special Products and Services - 0.3%
Stanley Works 52,200 $ 1,977,075
- -----------------------------------------------------------------------------
Stores - 4.6%
Borders Group, Inc.* 66,800 $ 960,250
Federated Department Store, Inc.* 528,800 13,616,600
Intelligent Electronics, Inc. 513,100 6,990,988
Office Depot, Inc.* 330,000 9,281,250
------------
$ 30,849,088
- -----------------------------------------------------------------------------
Telecommunications - 1.2%
Chipcom Corp.* 348,100 $ 8,267,375
- -----------------------------------------------------------------------------
Total U.S. Common Stocks $641,241,313
- -----------------------------------------------------------------------------
Foreign Stocks - 4.5%
Finland - 0.9%
Nokia AB (Telecommunications) 104,000 $ 6,188,011
- -----------------------------------------------------------------------------
Hong Kong - 0.5%
Peregrine Investment Holdings (Finance) 2,620,000 $ 3,724,814
- -----------------------------------------------------------------------------
Sweden - 1.6%
Astra AB, "B" (Medical and Health Products) 295,000 $ 8,888,843
TV 4 AB (Broadcasting) 90,400 1,815,935
------------
$ 10,704,778
- -----------------------------------------------------------------------------
United Kingdom - 1.5%
Reuters Holdings PLC, ADR (Printing
and Publishing) 200,900 $ 10,070,113
- -----------------------------------------------------------------------------
Total Foreign Stocks $ 30,687,716
- -----------------------------------------------------------------------------
Total Common Stocks (Identified Cost, $541,936,276) $671,929,029
- -----------------------------------------------------------------------------
Short-Term Obligation - 1.4%
- -----------------------------------------------------------------------------
Principal Amount
(000 Omitted)
- -----------------------------------------------------------------------------
Ford Motor Credit Corp., due 7/03/95,
at Amortized Cost $9,510 $ 9,506,724
- -----------------------------------------------------------------------------
Total Investments (Identified Cost, $551,443,000) $681,435,753
Other Assets, Less Liabilities - (1.0)% (6,959,976)
- -----------------------------------------------------------------------------
Net Assets - 100.0% $674,475,777
- -----------------------------------------------------------------------------
*Non-income producing security.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (Unaudited)
- ------------------------------------------------------------------------------
June 30, 1995
- ------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $551,443,000) $681,435,753
Cash 6,625
Net receivable for forward foreign currency exchange
contracts purchased 281,544
Receivable for investments sold 1,565,314
Receivable for Fund shares sold 61,277
Dividends and interest receivable 846,537
Other assets 25,399
------------
Total assets $684,222,449
------------
Liabilities:
Payable for investments purchased $ 7,679,060
Payable for Fund shares reacquired 1,181,980
Net payable for forward foreign currency exchange contracts
sold 429,398
Payable to affiliates -
Management fee 7,930
Shareholder servicing agent fee 2,642
Distribution fee 244,090
Accrued expenses and other liabilities 201,572
------------
Total liabilities $ 9,746,672
------------
Net assets $674,475,777
============
Net assets consist of:
Paid-in capital $512,006,172
Unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies 129,844,302
Accumulated undistributed net realized gain on investments
and foreign currency transactions 32,223,428
Accumulated undistributed net investment income 401,875
------------
Total $674,475,777
============
Shares of beneficial interest outstanding 55,306,748
============
Class A shares:
Net asset value and redemption price per share
(net assets of $668,671,118 / 54,824,336 shares of
beneficial interest outstanding) $12.20
======
Offering price per share (100/94.25) $12.94
======
Class B shares:
Net asset value and offering price per share
(net assets of $5,804,659 / 482,412 shares of beneficial
interest outstanding) $12.03
======
On sales of $50,000 or more, the offering price of Class A shares is reduced.
A contingent deferred sales charge may be imposed on redemptions of Class A
and Class B shares.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Operations (Unaudited)
- ------------------------------------------------------------------------------
Six Months Ended June 30, 1995
- ------------------------------------------------------------------------------
Net investment income:
Income -
Dividends $ 3,760,345
Interest 302,548
------------
Total investment income $ 4,062,893
------------
Expenses -
Management fee $ 1,344,175
Trustees' compensation 25,004
Shareholder servicing agent fee (Class A) 445,459
Shareholder servicing agent fee (Class B) 4,667
Distribution and service fee (Class A) 785,910
Distribution and service fee (Class B) 21,215
Custodian fee 116,730
Postage 46,969
Printing fees 31,775
Auditing fees 10,100
Legal fees 3,236
Miscellaneous 148,020
------------
Total expenses $ 2,983,260
Reduction of expenses by distributor (307,779)
------------
Net expenses $ 2,675,481
------------
Net investment income $ 1,387,412
------------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) (identified cost basis) -
Investment transactions $ 35,100,638
Foreign currency transactions (156,319)
------------
Net realized gain on investments $ 34,944,319
------------
Change in unrealized appreciation -
Investments $ 79,603,357
Translation of assets and liabilities in foreign currencies (1,384,842)
------------
Net unrealized gain on investments $ 78,218,515
------------
Net realized and unrealized gain on investments and
foreign currency $113,162,834
------------
Increase in net assets from operations $114,550,246
============
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
- ------------------------------------------------------------------------------
Increase (decrease) in net assets:
From operations -
Net investment income $ 1,387,412 $ 1,335,181
Net realized gain on investments and
foreign currency transactions 34,944,319 42,060,255
Net unrealized gain (loss) on investments
and foreign currency translation 78,218,515 (70,715,857)
------------ -------------
Increase (decrease) in net assets from
operations $114,550,246 $ (27,320,421)
------------ -------------
Distributions declared to shareholders -
From net investment income (Class A) $ -- $ (724,008)
From net realized gain on investments and
foreign currency transactions -- (44,286,419)
In excess of net investment income (Class
A) -- (985,537)
In excess of net realized gain on
investments and foreign currency
transactions -- (2,720,891)
------------ -------------
Total distributions declared to
shareholders $ -- $ (48,716,855)
------------- --------------
Fund share (principal) transactions -
Net proceeds from sale of shares $ 35,449,427 $ 30,868,624
Net asset value of shares issued to
shareholders in reinvestment of
distributions -- 46,865,238
Cost of shares reacquired (67,950,258) (119,914,672)
------------ -------------
Decrease in net assets from Fund share
transactions $(32,500,831) $ (42,180,810)
------------ -------------
Total increase (decrease) in net assets $ 82,049,415 $(118,218,086)
Net assets:
At beginning of period 592,426,362 710,644,448
------------ -------------
At end of period (including accumulated
undistributed (distributions in excess
of) net investment income of $401,875 and
$(985,537), respectively) $674,475,777 $ 592,426,362
============ =============
See notes to financial statements
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended
June 30, Year Ended December 31,
1995 -------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990 1989
- -----------------------------------------------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of
period $10.17 $11.56 $11.17 $10.75 $ 9.97 $10.93 $10.96
------ ------ ------ ------ ------ ------ ------
Income from investment
operations<F3> -
Net investment income<F6> $ 0.02 $ 0.02 $ 0.07 $ 0.15 $ 0.24 $ 0.30 $ 0.36
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions 2.01 (0.50) 1.73 0.67 1.94 (0.77) 2.74
------ ------ ------ ------ ------ ------ ------
Total from investment
operations $ 2.03 $(0.48) $ 1.80 $ 0.82 $ 2.18 $(0.47) $ 3.10
------ ------ ------ ------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $ -- $(0.01) $(0.07) $(0.14) $(0.18) $(0.33) $(0.36)
In excess of net investment
income -- (0.02) (0.02) -- -- -- --
From net realized gain on
investments and foreign
currency transactions -- (0.83) (1.32) (0.26) (1.22) (0.16)<F5> (2.77)
In excess of net realized gain
on investments and foreign
currency transactions -- (0.05) -- -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total distributions declared
to shareholders $ -- $(0.91) $(1.41) $(0.40) $(1.40) $(0.49) $(3.13)
------ ------ ------ ------ ------ ------ ------
Net asset value - end of period $12.20 $10.17 $11.56 $11.17 $10.75 $ 9.97 $10.93
====== ====== ====== ====== ====== ====== ======
Total return<F4> 19.96%<F2> (4.15)% 16.19% (8.06%) 9.29% (4.57)% 28.23%
Ratios (to average net assets)/Supplemental data<F6>:
Expenses 0.86%<F1> 0.86% 0.84% 0.89% 0.88% 0.80% 0.77%
Net investment income 0.45%<F1> 0.21% 0.60% 1.40% 2.14% 2.91% 2.79%
Portfolio turnover 56% 78% 0.79% 102% 131% 89% 0.83%
Net assets at end of period
(000 omitted) $668,671 $589,260 $709,839 $694,084 $739,791 $687,847 $805,702
<FN>
<F1> Annualized.
<F2> Not annualized.
<F3> Per share data for the periods subsequent to December 31, 1992 is based on average shares outstanding.
<F4> Total returns for Class A shares do not include the applicable sales charge (except for reinvested dividends prior to
March 31, 1991). If the charge had been included, the results would have been lower.
<F5> Includes a per share distribution from paid-in capital of $0.0006.
<F6> The distributor did not impose a portion of its distribution fee for the periods indicated. If this fee had been incurred
by the Fund, the net investment income per share and the ratios would have been:
Net investment income $ 0.02 $ 0.01 $ 0.07 -- -- -- --
Ratios (to average net assets):
Expenses 0.96%<F1> 0.96% 0.87% -- -- -- --
Net investment income 0.35%<F1> 0.11% 0.56% -- -- -- --
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Six Months
Year Ended Year Ended Ended Year Ended
December 31, March 31, June 30, December 31,
----------------------- ------------------------ 1995 ---------------------------
1988 1987<F1> 1987 1986 (Unaudited) 1994 1993<F2>
- -----------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of
period $10.81 $13.41 $13.51 $10.77 $10.08 $11.53 $12.52
------ ------ ------ ------ ------ ------ ------
Income from investment
operations<F5> -
Net investment income (loss) $ 0.22 $ 0.11 $ 0.17 $ 0.22 $(0.03) $(0.08) $ --
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions 0.76 (2.13) 1.20 3.63 1.98 (0.49) 0.36
------ ------ ------ ------ ------ ------ ------
Total from investment
operations $ 0.98 $(2.02) $ 1.37 $ 3.85 $ 1.95 $(0.57) $ 0.36
------ ------ ------ ------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $(0.19) $(0.11) $(0.17) $(0.22) $ -- $ -- $ --
In excess of net investment
income -- -- -- -- -- -- (0.03)
From net realized gain on
investments and foreign
currency transactions (0.64) (0.47) (1.30) (0.89) -- (0.83) (1.32)
In excess of net realized
gain on investments and
foreign currency transactions -- -- -- -- -- (0.05) --
------ ------ ------ ------ ------ ------ ------
Total distributions
declared to shareholders $(0.83) $(0.58) $(1.47) $(1.11) $ -- $(0.88) $(1.35)
------ ------ ------ ------ ------ ------ ------
Net asset value -
end of period $10.96 $10.81 $13.41 $13.51 $12.03 $10.08 $11.53
====== ====== ====== ====== ====== ====== ======
Total return<F6> 8.90% (20.45)%<F3> 11.57% 35.92% 19.34%<F4> (4.96)% 9.29%<F3>
Ratios (to average net assets)/Supplemental data:
Expenses 0.86% 0.72%<F3> 0.71% 0.71% 1.79%<F3> 1.81% 1.33%<F3>
Net investment income (loss) 1.90% 1.08%<F3> 1.28% 1.85% (0.46)%<F3> (0.70)% 0.00%<F3>
Portfolio turnover 68% 40% 109% 117% 56% 78% 79%
Net assets at end of period
(000 omitted) $767,924 $834,359 $1,090,764 $989,980 $5,805 $3,166 $805
<FN>
<F1> For the nine months ended December 31, 1987.
<F2> For the period from the commencement of offering of Class B shares, September 7, 1993 to December 31, 1993.
<F3> Annualized.
<F4> Not annualized.
<F5> Per share data for the periods subsequent to December 31, 1992 is based on average shares outstanding.
<F6> Total returns for Class A shares do not include the applicable sales charge (except for reinvested dividends prior to
March 31, 1991). If the charge had been included, the results would have been lower.
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Business and Organization
MFS Growth Opportunities Fund (the Fund) was organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company.
(2) Significant Accounting Policies
Investment Valuations - Equity securities listed on securities exchanges or
reported through the NASDAQ system are valued at last sale prices. Unlisted
equity securities or listed equity securities for which last sale prices are not
available are valued at last quoted bid prices. Debt securities (other than
short-term obligations which mature in 60 days or less), including listed issues
and forward contracts, are valued on the basis of valuations furnished by
dealers or by a pricing service with consideration to factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data, without exclusive reliance upon exchange or over-the-counter prices.
Short-term obligations, which mature in 60 days or less, are valued at amortized
cost, which approximates market value. Non-U.S. dollar denominated short-term
obligations are valued at amortized cost as calculated in the base currency and
translated into U.S. dollars at the closing daily exchange rate. Futures
contracts, options and options on futures contracts listed on commodities
exchanges are valued at closing settlement prices. Over-the- counter options are
valued by brokers through the use of a pricing model which takes into account
closing bond valuations, implied volatility and short-term repurchase rates.
Securities for which there are no such quotations or valuations are valued at
fair value as determined in good faith by or at the direction of the Trustees.
Repurchase Agreements - The Fund may enter into repurchase agreements with
institutions that the Fund's investment adviser has determined are creditworthy.
Each repurchase agreement is recorded at cost. The Fund requires that the
securities purchased in a repurchase transaction be transferred to the custodian
in a manner sufficient to enable the Fund to obtain those securities in the
event of a default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that the value,
including accrued interest, of the securities under each repurchase agreement is
greater than amounts owed to the Fund under each such repurchase agreement.
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 - The 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 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. The Fund will 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.
It may also use contracts in a manner intended to protect foreign
currency-denominated securities from declines in value due to unfavorable
exchange rates 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 for financial statement purposes as unrealized until the contract
settlement date.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All premium and
original issue discount are amortized or accreted for financial statement and
tax reporting purposes as required by federal income tax regulations. Dividend
income is recorded on the ex-dividend date for dividends received in cash.
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.
Tax Matters and Distributions - The 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. The Fund files a tax
return annually using tax accounting methods required under provisions of the
Code which may differ from generally accepted accounting principles, the basis
on which these financial statements are prepared. Accordingly, the amount of net
investment income and net realized gain reported on these financial statements
may differ from that reported on the Fund's tax return and, consequently, the
character of distributions to shareholders reported in the financial highlights
may differ from that reported to shareholders on Form 1099-DIV. Foreign taxes
have been provided for on interest and dividend income earned on foreign
investments in accordance with the applicable country's tax rates and to the
extent unrecoverable are recorded as a reduction of investment income.
Distributions to shareholders are recorded on the ex- dividend date.
The 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 are reported in the financial statements as a return of
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 accumulated net realized
gains.
Multiple Classes of Shares of Beneficial Interest - The Fund offers Class A and
Class B shares. The two classes of shares differ in their respective shareholder
servicing agent, distribution and service fees. All shareholders bear the common
expenses of the Fund pro rata based on the average daily net assets of each
class, without distinction between share classes. Dividends are declared
separately for each class. No class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses.
(3) Transactions with Affiliates
Investment Adviser - The 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 an effective annual rate of
0.43% of average daily net assets.
The 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 of the officers and Trustees of
the Fund are officers or directors of MFS, MFS Fund Distributors, Inc. (MFD) and
MFS Service Center, Inc. (MFSC). The Fund has an unfunded defined benefit plan
for all its independent Trustees. Included in Trustees' compensation is a net
periodic pension expense of $7,012 for the period ended June 30, 1995.
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$27,905 for the period ended June 30, 1995 as its portion of the sales charge on
sales of Class A shares of the Fund.
The Trustees have adopted separate distribution plans or Class A and Class B
shares pursuant to Rule 12b-1 of the Investment Company Act of 1940 as follows:
The Class A distribution plan provides that the Fund will pay MFD up to 0.35%
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
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, a distribution fee to
MFD of up to 0.10% per annum of the Fund's average daily net assets attributable
to Class A shares, commissions to dealers and payments to MFD wholesalers for
sales at or above a certain dollar level, and other such distribution-related
expenses that are approved by the Fund. MFD retains the service fee for accounts
not attributable to a securities dealer, which amounted to $247,848 for the
period ended June 30, 1995. MFD is not imposing the 0.10% distribution fee for
an indefinite period. Fees incurred under the distribution plan during the
period ended June 30, 1995 were 0.25% of average daily net assets attributable
to Class A shares on an annualized basis.
The Class B distribution plan provides that the Fund will pay MFD a distribution
fee of 0.75% per annum and a service fee of up to 0.25% per annum, of the Fund's
average daily net assets attributable to Class B shares. MFD will pay to
securities dealers that enter into a sales agreement with MFD all or a portion
of the service fee attributable to Class B shares. The service fee is intended
to be additional consideration for services rendered by the dealer with respect
to Class B shares. MFD retains the service fee for accounts not attributable to
a securities dealer, which amounted to $623 for Class B shares for the period
ended June 30, 1995. Fees incurred under the distribution plan during the period
ended June 30, 1995 were 1.00% of average daily net assets attributable to Class
B shares on an annualized basis.
A contingent deferred sales charge is imposed on shareholder redemptions of
Class A shares, on purchases of $1 million or more, in the event of a
shareholder redemption within 12 months following the share purchase. A
contingent deferred sales charge is imposed on shareholder redemptions of Class
B shares in the event of a shareholder redemption within six years of purchase.
MFD receives all contingent deferred sales charges. Contingent deferred sales
charges imposed during the period ended June 30, 1995 were $1,965 and $2,446 for
Class A and Class B shares, respectively.
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 the average daily net assets of each class of shares at an
effective annual rate of up to 0.15% and up to 0.22% attributable to Class A and
Class B shares, respectively.
(4) Portfolio Securities
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions and short-term obligations, aggregated
$344,286,495 and $347,367,445, respectively.
The cost and unrealized appreciation or depreciation in value of the investments
owned by the Fund, as computed on a federal income tax basis, are as follows:
Aggregate cost $551,443,000
============
Gross unrealized appreciation $144,099,132
Gross unrealized depreciation (14,106,379)
------------
Net unrealized appreciation $129,992,753
============
(5) Shares of Beneficial Interest
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Class A Shares Six Months Ended Year Ended
June 30, 1995 December 31, 1994
--------------------------------- -----------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 2,793,906 $ 31,745,063 2,325,560 $ 26,182,936
Shares issued to shareholders
in reinvestment
of distributions -- -- 4,590,008 46,634,106
Shares reacquired (5,905,652) (66,130,279) (10,394,202) (117,718,886)
---------- ------------ ---------- -------------
Net decrease (3,111,746) $(34,385,216) (3,478,634) $ (44,901,844)
========== ============ ========== =============
<CAPTION>
Class B Shares Six Months Ended Year Ended
June 30, 1995 December 31, 1994<F1>
--------------------------------- -----------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 337,721 $ 3,704,364 419,077 $ 4,685,688
Shares issued to shareholders
in reinvestment
of distributions -- -- 22,946 231,132
Shares reacquired (169,319) (1,819,979) (197,864) (2,195,786)
---------- ------------ ---------- -------------
Net increase 168,402 $ 1,884,385 244,159 $ 2,721,034
======= ============ ======= =============
<FN>
<F1> For the period from the commencement of offering of Class B shares, September 7, 1993 to December 31, 1994.
</TABLE>
(6) Line of Credit
The Fund entered into an agreement which enables it to participate with other
funds managed by MFS in an unsecured line of credit with a bank which permits
borrowings up to $350 million, collectively. 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 fee allocated to the Fund for the period ended June 30,
1995 was $4,575.
(7) Financial Instruments
The Fund trades financial instruments with off-balance sheet risk in the normal
course of its investing activities in order to manage exposure to market risks
such as interest rates and foreign currency exchange rates. These financial
instruments include written options, forward foreign currency exchange contracts
and futures contracts. The notional or contractual amounts of these instruments
represent the investment the Fund has in particular classes of financial
instruments and does not necessarily represent the amounts potentially subject
to risk. The measurement of the risks associated with these instruments is
meaningful only when all related and offsetting transactions are considered. A
summary of obligations under these financial instruments at June 30, 1995 is as
follows:
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts
Net Unrealized
Contracts to Contracts Appreciation
Settlement Date Deliver/Receive at Value In Exchange for (Depreciation)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 7/31/95 - 8/03/95 CHF 5,980,613 $ 5,214,072 $ 5,265,459 $ 51,387
7/10/95 ESP 395,910,000 3,272,988 2,957,311 (315,677)
7/03/95 - 10/03/95 FIM 34,331,760 8,042,129 7,956,871 (85,258)
8/02/95 - 8/03/95 SEK 59,091,600 8,112,983 8,033,133 (79,850)
----------- ----------- ---------
$24,642,172 $24,212,774 $(429,398)
=========== =========== =========
Purchases 7/31/95 - 8/03/95 CHF 5,980,613 $ 5,214,072 $ 5,159,344 $ 54,728
7/10/95 ESP 395,910,000 3,272,988 3,018,757 254,231
7/03/95 FIM 17,165,880 4,021,142 4,048,557 (27,415)
----------- ----------- ---------
$12,508,202 $12,226,658 $ 281,544
=========== =========== =========
</TABLE>
At June 30, 1995, the Fund had sufficient cash and/or securities to cover any
commitments under these contracts.
Abbreviations have been used throughout this report to indicate amounts shown in
currencies other than the U.S. dollar. A list of abbreviations is shown below.
CHF = Swiss Francs
ESP = Spanish Pesetas
FIM = Finnish Markkaa
SEK = Swedish Krone
---------------------------------------------
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>
THE MFS FAMILY OF FUNDS(R)
America's Oldest Mutual Fund Group
The members of the MFS Family of Funds are grouped below according to the types
of securities in their portfolios. For free prospectuses containing more
complete information, including the exchange privilege and all charges and
expenses, please contact your financial adviser or call MFS at 1-800-637-2929
any business day from 9 a.m. to 5 p.m. Eastern time (or, leave a message any
time). This material should be read carefully before investing or sending money.
<TABLE>
<S> <C>
STOCK LIMITED MATURITY BOND
- ----------------------------------------- ----------------------------------------
Massachusetts Investors Trust MFS(R) Government Limited Maturity Fund
- ----------------------------------------- ----------------------------------------
Massachusetts Investors Growth Stock Fund MFS(R) Limited Maturity Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Capital Growth Fund MFS(R) Municipal Limited Maturity Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Emerging Growth Fund
- -----------------------------------------
MFS(R) Gold & Natural Resources Fund WORLD
- ----------------------------------------- ----------------------------------------
MFS(R) Growth Opportunities Fund MFS(R) World Asset Allocation Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Managed Sectors Fund MFS(R) World Equity Fund
- ----------------------------------------- ----------------------------------------
MFS(R) OTC Fund MFS(R) World Governments Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Research Fund MFS(R) World Growth Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Value Fund MFS(R) World Total Return Fund
- ----------------------------------------- ----------------------------------------
STOCK AND BOND NATIONAL TAX-FREE BOND
- ----------------------------------------- ----------------------------------------
MFS(R) Total Return Fund MFS(R) Municipal Bond Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Utilities Fund MFS(R) Municipal High Income Fund
- ----------------------------------------- (closed to new investors)
----------------------------------------
BOND MFS(R) Municipal Income Fund
- ----------------------------------------- ----------------------------------------
MFS(R) Bond Fund
- -----------------------------------------
MFS(R) Government Mortgage Fund STATE TAX-FREE BOND
- ----------------------------------------- ----------------------------------------
MFS(R) Government Securities Fund Alabama, Arkansas, California, Florida,
- ----------------------------------------- Georgia, Louisiana, Maryland, Massachusetts,
MFS(R) High Income Fund Mississippi, New York, North Carolina,
- ----------------------------------------- Pennsylvania, South Carolina, Tennessee,
MFS(R) Intermediate Income Fund Texas, Virginia, Washington, West Virginia
- ----------------------------------------- ----------------------------------------
MFS(R) Strategic Income Fund
(formerly MFS(R) Income & Opportunity Fund) MONEY MARKET
- ----------------------------------------- ----------------------------------------
MFS(R) Cash Reserve Fund
----------------------------------------
MFS(R) Government Money Market Fund
----------------------------------------
MFS(R) Money Market Fund
----------------------------------------
</TABLE>
<PAGE>
MFS(R) GROWTH [seal: NUMBER 1 DALBAR]
OPPORTUNITIES
FUND TOP-RATED SERVICE
500 Boylston Street
Boston, MA 02116
[logo] MFS
THE FIRST NAME IN MUTUAL FUNDS
- ----------------
BULK RATE
U.S. POSTAGE
P A I D
PERMIT # 55638
BOSTON, MA
- ----------------
MGO-3 8/95 58M 16/216
