<PAGE>
[LOGO] SEMIANNUAL REPORT
THE FIRST NAME IN MUTUAL FUNDS FEBRUARY 28, 1995
MFS(R) MONEY MARKET FUND
MFS(R) GOVERNMENT MONEY MARKET FUND
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<TABLE>
<S> <C>
MFS(R) MONEY MARKET FUND
MFS(R) GOVERNMENT MONEY MARKET FUND
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 current account service, 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 and For service to speech- or hearing-impaired,
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 with a
Jeffrey L. Shames* - President and Chief Equity Telecommunications Device for the Deaf.)
Officer, Massachusetts 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
500 Boylston Street
Boston, Massachusetts 02116-3741
PORTFOLIO MANAGER
Geoffrey L. Kurinsky*
TREASURER TOP-RATED SERVICE
W. Thomas London* MFS was rated first when securities firms
evaluated the quality of service they receive
ASSISTANT TREASURER from 40 mutual fund companies. MFS got high
James O. Yost* marks for answering calls quickly, processing
transactions accurately and sending
SECRETARY statements out on time.
Stephen E. Cavan* (Source: 1994 DALBAR Survey)
ASSISTANT SECRETARY
James R. Bordewick, Jr.*
*Affiliated with the Investment Adviser
</TABLE>
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
Short-term interest rates rose dramatically during the past six months.
Reflecting this trend, the annualized yield on an investment in MFS Money Market
Fund for the seven-day period ended February 28, 1995 increased from 3.7% to
5.4%. During this same period, the annualized yield on an investment in MFS
Government Money Market Fund rose from 3.4% to 5.2%.
Economic Outlook
The economic expansion, entering its fifth year, gained firmer underpinnings in
1994 as employers significantly stepped up hiring levels. Increased employment,
stronger capital spending by businesses, and strengthening overseas economies
resulted in 4% real (adjusted for inflation) gross domestic product growth last
year. Interest rates rose substantially over the past year, which should help
restrain, but not curtail, the economic expansion. Based on sound economic
fundamentals both here and abroad, we expect the business expansion to continue
well into 1995.
Interest Rates
Despite a stronger economy, inflation at the consumer level has remained
relatively benign at 2.7% in 1994, the fourth straight year of 3.0% or less. Due
to a prolonged period of below-trend-line growth and continued pressure on
corporations to emphasize effective cost controls, wage growth and unit labor
costs have remained subdued. However, as the economy has exhibited continuing
strength, various industrial commodity prices have been rising substantially
faster than consumer prices. Nevertheless, businesses have had difficulty
passing these price increases on to the consumer. With the economy continuing to
expand, we expect some upward movement in inflation from below 3% to the 3 1/2%
range. The Federal Reserve Board has shown a willingness to raise short-term
rates to slow the economy in order to dampen inflationary pressures. Most
recently, it raised the federal funds rate 50 basis points (0.50%) after a 75
basis-point (0.75%) increase in November. We do not expect the central bank to
raise short-term rates in the near term for domestic policy reasons unless it
concludes that current efforts have failed to dampen inflationary expectations.
Recent significant weakness in the dollar versus the deutsche mark and yen could
prompt the Federal Reserve to raise short-term rates in an effort to prevent
further declines in the value of the U.S. currency. However, we believe the
potential recessionary implications of further short-term rate increases will
constrain Federal Reserve action.
We believe fundamentals are favorable for lower long-term rates in 1995, but
that further declines in rates may not occur until after the dollar stabilizes
in world currency markets. With the economy showing some signs of slowing,
however, we believe that short-term rates should be fairly stable over the next
several months.
Portfolio Performance and Strategy
As mentioned above, during the past six months the Federal Reserve voted to
tighten monetary policy by raising the federal funds rate (which is the interest
rate charged by banks to other banks in need of overnight loans) two times: by
75 basis points (0.75%) on November 15, 1994 and by 50 basis points (0.50%) on
February 1, 1995. As a result, yields on 90-day U.S. Treasury bills, which were
just over 4.6% at the end of August 1994, rose to approximately 5.8% by February
28, 1995. During this same period, interest rates on 90-day commercial paper
increased from about 4.8% to their current level of 6.0%.
In our continuing efforts to provide a reasonable level of current income,
we have maintained relatively short maturities in both portfolios. The average
maturity of MFS Money Market Fund on February 28, 1995 was 35 days, while that
of MFS Government Money Market Fund was 31 days.
<PAGE>
LETTER TO SHAREHOLDERS - continued
The portfolio of MFS Money Market Fund continues to include only the
highest-quality corporate, bank and government securities in order to provide
investors with maximum security against credit risk (although money market funds
are neither insured nor guaranteed by the U.S. government, and there can be no
assurance that they will be able to maintain a stable net asset value). At the
end of February, approximately 33% of this Fund's net assets was invested in
commercial paper. The balance was invested in securities issued or guaranteed by
the U.S. Treasury or agencies or instrumentalities of the U.S. government
because of the very narrow yield spreads between government agency obligations
and commercial paper. The quality of MFS Government Money Market Fund's
portfolio remains at the highest practical level because its investments are
limited to those securities issued or guaranteed by the U.S. Treasury or
agencies or instrumentalities of the U.S. government, including repurchase
agreements collateralized by such securities. This emphasis on quality should
allow the Fund to continue to help investors obtain current income and, at the
same time, preserve capital and liquidity.
We appreciate your support and welcome any questions or comments you may
have.
Respectfully,
- ------------------------- --------------------------
A 1 1/2 inch by 1 5/8 inch A 1 1/2 inch by 1 5/8 inch
photo of A. Keith Brodkin, photo of Geoffrey Kurinsky
Chairman and President. Portfolio Manager.
- ------------------------- --------------------------
s/s A. Keith Brodkin s/s Geoffrey L. Kurinsky
A. Keith Brodkin Geoffrey L. Kurinsky
Chairman and President Portfolio Manager
March 9, 1995
PORTFOLIO MANAGER PROFILE
Geoffrey Kurinsky began his career at MFS in 1987 in the Fixed Income
Department. A graduate of the University of Massachusetts and Boston
University's Graduate School of Management, he was named Assistant Vice
President in 1988, Vice President in 1989 and Senior Vice President in 1993. He
has managed MFS Money Market Fund and MFS Government Money Market Fund since
1992. Mr. Kurinsky is a Certified Public Accountant (C.P.A.).
OBJECTIVE AND POLICIES
The investment objective of each Fund is to seek as high a level of current
income as is considered consistent with the preservation of capital and
liquidity. MFS Money Market Fund seeks to achieve its investment objective by
investing primarily (i.e., at least 80% of its assets under normal
circumstances) in obligations issued or guaranteed by the U.S. Treasury or
agencies or instrumentalities of the U.S. government, obligations of banks,
commercial paper and short-term corporate obligations. MFS Government Money
Market Fund seeks to achieve its investment objective by investing only in
securities issued or guaranteed as to principal and interest by the U.S.
Treasury or agencies or instrumentalities of the U.S. government (including
repurchase agreements collateralized by such securities).
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) - February 28, 1995
MFS MONEY MARKET FUND
Commercial Paper - 32.8%
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Principal Amount
Issuer (000 Omitted) Value
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Abbott Laboratories, due 3/28/95 $ 13,040 $ 12,980,831
American Telephone & Telegraph Co., due
3/21/95 - 3/23/95 16,250 16,191,237
Beneficial Corp., due 4/20/95 - 4/24/95 20,000 19,829,558
Ford Motor Credit Co., due
3/02/95 - 4/03/95 13,875 13,833,615
GTE Florida, Inc., due 3/10/95 7,800 7,788,203
General Electric Co., due 3/30/95 10,000 9,952,150
Heinz (H.J.) Co., due 4/07/95 5,200 5,168,147
Kimberly-Clark Corp., due 3/22/95 10,000 9,965,292
Philip Morris Cos., Inc., due 4/03/95 10,000 9,945,917
Pitney Bowes, Inc., due 4/07/95 10,000 9,938,744
Procter & Gamble Co., due 3/01/95 10,000 10,000,000
Transamerica Corp., due 4/05/95 9,400 9,345,625
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Total Commercial Paper, at Amortized Cost $134,939,319
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U.S. Government and Agency Obligations - 71.9%
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Federal Home Loan Bank, due 3/09/95 - 4/27/95 $ 63,990 $ 57,929,373
Federal Home Loan Mortgage Corp., due
3/06/95 - 5/17/95 72,250 71,804,941
Federal National Mortgage Assn., due
3/03/95 - 5/30/95 155,265 154,150,419
Tennessee Valley Authority, due 3/02/95 12,200 12,198,034
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Total U.S. Government and Agency Obligations,
at Amortized Cost $296,082,767
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Total Investments, at Amortized Cost $431,022,086
Other Assets, Less Liabilities - (4.7)% (19,276,045)
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Net Assets - 100.0% $411,746,041
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MFS GOVERNMENT MONEY MARKET FUND
U.S. Government and Agency Obligations - 104.1%
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Principal Amount
Issuer (000 Omitted) Value
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Federal Farm Credit Bank, due
3/10/95 - 3/14/95 $ 4,300 $ 4,292,163
Federal Home Loan Bank, due
3/08/95 - 4/27/95 8,800 8,748,981
Federal Home Loan Mortgage Corp.,
due 3/02/95 - 5/17/95 12,200 12,142,384
Federal National Mortgage Assn., due
3/01/95 - 4/28/95 7,400 7,372,347
Student Loan Marketing Assn., due 5/15/95 2,400 2,370,400
Tennessee Valley Authority, due
3/10/95 - 5/03/95 3,500 3,481,562
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Total Investments, at Amortized Cost $ 38,407,837
Other Assets, Less Liabilities - (4.1)% (1,520,385)
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Net Assets - 100.0% $ 36,887,452
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See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
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MFS Money MFS Government Money
February 28, 1995 (Unaudited) Market Fund Market Fund
- --------------------------------------------------------------------------------
Assets:
Investments, at amortized cost
and value $431,022,086 $38,407,837
Cash 415,220 39,057
Receivable for Fund shares sold 3,366,267 20,895
Other assets 4,546 470
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Total assets $434,808,119 $38,468,259
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Liabilities:
Distributions payable $ 72,767 $ 9,236
Payable for Fund shares reacquired 22,768,584 1,501,094
Payable to affiliates -
Management fee 16,578 1,528
Shareholder servicing agent fee 5,083 458
Accrued expenses and other liabilities 199,066 68,491
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Total liabilities $ 23,062,078 $ 1,580,807
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Net assets (represented by paid-in
capital) $411,746,041 $36,887,452
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Shares of beneficial interest outstanding 411,746,041 36,887,452
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Net asset value, offering
price and redemption price per share
(net assets / shares of beneficial
interest outstanding) $1.00 $1.00
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Statement of Operations
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Six Months Ended February 28, 1995 MFS Money MFS Government Money
(Unaudited) Market Fund Market Fund
- --------------------------------------------------------------
Net investment income:
Interest $12,779,242 $1,044,849
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Expenses -
Management fee $ 1,142,187 $ 93,028
Trustees' compensation 14,867 1,838
Shareholder servicing agent fee 353,968 29,115
Custodian fee 82,914 9,488
Postage 34,947 4,307
Printing 15,741 2,500
Auditing fees 5,700 1,900
Miscellaneous 121,108 32,379
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Total expenses $ 1,771,432 $ 174,555
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Net investment income $11,007,810 $ 870,294
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See notes to financial statements
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FINANCIAL STATEMENTS - continued
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
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Six Months Ended
February 28, 1995 Ten Months Ended Year Ended
MFS Money Market Fund (Unaudited) August 31, 1994 October 31, 1993
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in
net assets:
From operations -
Net investment income,
declared as distributions
to shareholders $ 11,007,810 $ 10,000,828 $ 8,857,063
--------------- --------------- -------------
Fund share (principal)
transactions at net asset
value of $1.00 per share - Net
proceeds from sale of shares $ 1,117,550,124 $ 1,171,346,513 $ 479,475,355
Net asset value of shares
issued to shareholders in
reinvestment of distributions 9,555,211 8,997,225 8,547,220
Cost of shares reacquired (1,151,138,825) (1,094,880,512) (586,530,807)
--------------- --------------- -------------
Total increase (decrease)
in net assets $ (24,033,490) $ 85,463,226 $ (98,508,232)
Net assets:
At beginning of period 435,779,531 350,316,305 448,824,537
--------------- --------------- -------------
At end of period $ 411,746,041 $ 435,779,531 $ 350,316,305
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Six Months Ended
MFS Government Money February 28, 1995 Ten Months Ended Year Ended
Market Fund (Unaudited) August 31, 1994 October 31, 1993
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets:
From operations -
Net investment income,
declared as distributions
to shareholders $ 870,294 $ 894,377 $ 893,663
--------------- --------------- -------------
Fund share (principal)
transactions at net asset
value of $1.00 per share - Net
proceeds from sale of shares $ 26,170,627 $ 63,018,558 $ 36,011,225
Net asset value of shares
issued to shareholders in
reinvestment of distributions 802,309 815,492 817,778
Cost of shares reacquired (28,432,481) (61,062,849) (48,882,554)
--------------- --------------- -------------
Total increase (decrease)
in net assets $ (1,459,545) $ 2,771,201 $ (12,053,551)
Net assets:
At beginning of period 38,346,997 35,575,796 47,629,347
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At end of period $ 36,887,452 $ 38,346,997 $ 35,575,796
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See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
</TABLE>
<TABLE>
Financial Highlights
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MFS Money Market Fund
<CAPTION>
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Six Months Ended Ten Months
February 28, Ended Year Ended October 31,
1995 August 31, ----------------------------------------
(Unaudited) 1994 1993 1992 1991
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<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations -
Net investment income 0.02 0.02 0.02 0.03 0.06
Less distributions declared to shareholders
from net investment income (0.02) (0.02) (0.02) (0.03) (0.06)
------ ------ ------ ------ ------
Net asset value - end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 4.70%<F1> 2.91%<F1> 2.39% 3.35% 6.07%
Ratios (to average net assets)/Supplemental data:
Expenses 0.75%<F1> 0.78%<F1> 0.83% 0.87% 0.82%
Net investment income 4.67%<F1> 2.95%<F1> 2.39% 3.36% 5.94%
Net assets at end of period (000 omitted) $411,746 $435,780 $350,316 $448,825 $541,945
<FN>
<F1> Annualized.
</TABLE>
<TABLE>
<CAPTION>
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Year Ended October 31,
------------------------------------------------------------------------
1990 1989 1988 1987 1986 1985
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<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations -
Net investment income 0.07 0.08 0.07 0.06 0.06 0.08
Less distributions declared to shareholders
from net investment income (0.07) (0.08) (0.07) (0.06) (0.06) (0.08)
------ ------ ------ ------ ------ ------
Net asset value - end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Total return 7.99% 8.84% 7.12% 6.06% 6.80% 8.19%
Ratios (to average net assets)/Supplemental data:
Expenses 0.76% 0.83% 0.83% 0.82% 0.78% 0.73%
Net investment income 7.60% 8.45% 6.72% 5.77% 6.53% 7.86%
Net assets at end of period (000 omitted) $677,164 $676,382 $664,895 $716,528 $623,568 $657,000
<FN>
<F1> Annualized.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<TABLE>
<CAPTION>
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MFS Government Money Market Fund
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Six Months Ended Ten Months
February 28, Ended Year Ended October 31,
1995 August 31, --------------------------------------
(Unaudited) 1994 1993 1992 1991
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<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations -
Net investment income 0.02 0.02 0.02 0.03 0.06
Less distributions declared to shareholders from net
investment income (0.02) (0.02) (0.02) (0.03) (0.06)
------ ------ ------ ------ ------
Net asset value - end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 4.52%<F1> 2.64%<F1> 2.23% 3.27% 5.68%
Ratios (to average net assets)/Supplemental data:
Expenses 0.90%<F1> 1.05%<F1> 0.99% 0.87% 0.83%
Net investment income 4.48%<F1> 2.64%<F1> 2.20% 3.28% 5.53%
Net assets at end of period (000 omitted) $36,887 $38,347 $35,576 $47,629 $50,655
<FN>
<F1> Annualized.
</TABLE>
<TABLE>
<CAPTION>
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Year Ended October 31,
------------------------------------------------------------------------
1990 1989 1988 1987 1986 1985
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<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations -
Net investment income 0.07 0.08 0.06 0.05 0.06 0.07
Less distributions declared to shareholders from net
investment income (0.07) (0.08) (0.06) (0.05) (0.06) (0.07)
------ ------ ------ ------ ------ ------
Net asset value - end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Total return 7.55% 8.61% 6.47% 5.73% 6.33% 7.63%
Ratios (to average net assets)/Supplemental data:
Expenses 0.80% 0.85% 0.74% 0.59% 0.66% 0.72%
Net investment income 7.34% 8.29% 6.29% 5.63% 6.07% 7.39%
Net assets at end of period (000 omitted) $53,701 $51,619 $50,343 $59,875 $63,331 $45,894
See notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Business and Organization
MFS Money Market Fund and MFS Government Money Market Fund (the Funds) are each
a separate, diversified series of MFS Series Trust IV (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. During 1994 the Funds changed their fiscal year end from October 31 to
August 31.
(2) Significant Accounting Policies
Investment Valuations - Money market instruments are valued at amortized cost,
which the Trustees have determined in good faith constitutes fair value. The
Trust's use of amortized cost is subject to the Trust's compliance with certain
conditions as specified under Rule 2a-7 of the Investment Company Act of 1940.
Repurchase Agreements - The Trust may enter into repurchase agreements with
institutions that the Trust's investment adviser has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Trust requires
that the securities purchased in a repurchase transaction be transferred to the
custodian in a manner sufficient to enable the Trust to obtain those securities
in the event of a default under the repurchase agreement. The Trust 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 Trust under each such repurchase agreement.
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 both financial statement
and tax reporting purposes as required by federal income tax regulations.
Tax Matters and Distributions - The Trust'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 income.
Accordingly, no provision for federal income or excise tax is provided. The net
income of each Fund is determined once daily, as of the close of the New York
Stock Exchange, and all of the net income so determined is declared in shares as
a dividend to shareholders of record at the time of such determination.
Distributions are made in the form of additional shares of each Fund or, at the
election of the shareholder, in cash, on the last business day of the month.
(3) Transactions with Affiliates
Investment Adviser - The Funds have 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, computed daily and paid monthly, is based upon the combined
average daily net assets of the MFS Money Market Fund and MFS Government Money
Market Fund. The annual rates are reduced as average daily net assets exceed
certain levels. For the period ended February 28, 1995, the fee, computed at an
effective annual rate of 0.48% of average daily net assets, amounted to
$1,142,187 and $93,028 for the MFS Money Market Fund and MFS Government Money
Market Fund, respectively.
The Trust pays no compensation directly to its Trustees who are officers of the
investment adviser, or to officers of the Trust, all of whom receive
remuneration for their services to the Trust from MFS. Certain of the officers
and Trustees of the Trust are officers or directors of MFS and MFS Service
Center, Inc. (MFSC). The Trust has an unfunded defined benefit plan for all of
its independent Trustees. Included in Trustees' compensation is a net periodic
pension expense of $5,087 and $771 for the MFS Money Market Fund and MFS
Government Money Market Fund, respectively, for the period ended February 28,
1995.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - continued
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earned
$353,968 and $29,115 from the MFS Money Market Fund and MFS Government Money
Market Fund, respectively, for its services as shareholder servicing agent. The
fee is calculated as a percentage of the average daily net assets of each Fund
at an effective annual rate of up to 0.15%. (4) Portfolio Securities Purchases
and maturities and sales of money market investments, exclusive of securities
purchased subject to repurchase agreements, were as follows:
MFS Money MFS Government
Market Fund Money Market Fund
- ------------------------------------------------------------------------------
Purchases
U.S. government obligations $1,549,180,285 $312,088,940
============== ============
Other $ 686,134,773 $ --
============== ============
MFS Money MFS Government
Market Fund Money Market Fund
- ------------------------------------------------------------------------------
Maturities and sales
U.S. government obligations $1,556,471,334 $313,189,018
============== ============
Other $ 712,269,025 $ --
============== ============
(5) Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) of each
Fund.
(6) Line of Credit
The Trust entered into an agreement which enables it to participate with other
funds managed by MFS, or an affiliate of 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 Trust 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 Trust for the
period ended February 28, 1995 was $3,930 and $268 for the MFS Money Market Fund
and MFS Government Money Market Fund, respectively.
---------------------------------------------
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) MONEY ==================
MARKET FUND BULK RATE
U.S POSTAGE
MFS(R) P A I D
GOVERNMENT PERMIT #55638
MONEY MARKET FUND BOSTON, MA
==================
500 Boylston Street
Boston, MA 02116
[LOGO]
THE FIRST NAME IN MUTUAL FUNDS
MCM-3 4/95/37.5M 10/22/310
