<PAGE>
[MFS logo]
Annual Report for
Year Ended
April 30, 1996
MFS(R) LIMITED MATURITY FUND
[A picture of a columned building.]
<PAGE>
<TABLE>
<CAPTION>
MFS(R) LIMITED MATURITY FUND
<S> <C>
TRUSTEES CUSTODIAN
Investors Bank & Trust Company
A. Keith Brodkin* - Chairman and President
Richard B. Bailey* - Private Investor; AUDITORS
Former Chairman and Director (until 1991), Deloitte & Touche LLP
Massachusetts Financial Services Company; Director,
Cambridge Bancorp; Director, INVESTOR INFORMATION
Cambridge Trust Company For MFS stock and bond market outlooks,
Peter G. Harwood - Private Investor call toll free: 1-800-637-4458 anytime from
J. Atwood Ives - Chairman and Chief Executive a touch-tone telephone.
Officer, Eastern Enterprises For information on MFS mutual funds,
Lawrence T. Perera - Partner, call your financial adviser or, for an
Hemenway & Barnes information kit, call toll free:
William J. Poorvu - Adjunct Professor, 1-800-637-2929 any business day from
Harvard University Graduate School of 9 a.m. to 5 p.m. Eastern time (or leave
Business Administration a message anytime).
Charles W. Schmidt - Private Investor
Arnold D. Scott* - Senior Executive Vice INVESTOR SERVICE
President, Director and Secretary, MFS Service Center, Inc.
Massachusetts Financial Services Company P.O. Box 2281
Jeffrey L. Shames* - President and Director, Boston, MA 02107-9906
Massachusetts Financial Services Company For general information, call toll free:
Elaine R. Smith - Independent Consultant 1-800-225-2606 any business day from
David B. Stone - Chairman, North American 8 a.m. to 8 p.m. Eastern time.
Management Corp. (investment advisers) For service to speech- or hearing-impaired,
call toll free: 1-800-637-6576 any business
INVESTMENT ADVISER day from 9 a.m. to 5 p.m. Eastern time.
Massachusetts Financial Services Company (To use this service, your phone must be
500 Boylston Street equipped with a Telecommunications Device for
Boston, MA 02116-3741 the Deaf.)
For share prices, account balances and
DISTRIBUTOR exchanges, call toll free: 1-800-MFS-TALK
MFS Fund Distributors, Inc. (1-800-637-8255) anytime from a touch-tone
500 Boylston Street telephone.
Boston, MA 02116-3741
DALBAR TOP-RATED SERVICE
PORTFOLIO MANAGER MFS #1 MFS For the second year in a
Geoffrey L. Kurinsky* DALBAR row, MFS earned a #1
ranking in DALBAR,
TREASURER Inc.'s Broker/Dealer
W. Thomas London* Survey, Main Office
Operations Service Quality
ASSISTANT TREASURER category. The firm achieved
James O. Yost* a 3.49 overall score - on a scale of 1 to 4 - in the
1995 survey. A total of 71 firms responded, offering
SECRETARY input on the quality of service they receive from 36
Stephen E. Cavan* mutual fund companies nationwide. The survey
contained questions about service quality in 17
ASSISTANT SECRETARY categories, including "knowledge of phone service
James R. Bordewick, Jr.* contacts," "accuracy of transaction processing," and
"overall ease of doing business with the firm."
*Affiliated with the Investment Adviser
</TABLE>
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
Despite the rise in interest rates during the last three months of the Fund's
fiscal year, the past 12 months have been positive for the fixed-income markets,
as short-term interest rates have generally moved lower. While rates on two-year
Treasury notes returned to around 6% at the end of April after moving below 5%,
this was still lower than the 6 5/8% level prevailing at the beginning of the
Fund's fiscal year on May 1, 1995. This decline in rates allowed for some
capital appreciation in addition to the traditional coupon income that
fixed-income securities provide. A discussion of the Fund's performance may be
found in the Portfolio Performance and Strategy section of this letter. Complete
performance data can be found on pages four and five of this report.
During the year ended April 30, 1996, Class A shares of the Fund provided a
total return of 7.50%, Class B shares 6.52%, and Class C shares 6.44%. These
returns assume the reinvestment of distributions but exclude the effects of any
sales charges. The Fund's Class A shares outperformed the 7.43% return of the
Merrill Lynch One- to Five-Year Government/Corporate Bond Index (a total return
index comprised of coupon-bearing Treasury issues and debt of agencies of the
U.S. government, and corporate debt rated Baa or higher by Moody's Investors
Services). They also outperformed the 6.47% average return provided by other
funds with similar investment objectives and policies as reported by Lipper
Analytical Services, an independent firm which reports mutual fund performance.
Class A shares of the Fund ranked eighth, Class B shares 37th, and Class C
shares 45th out of the 89 funds in this short-term investment-grade debt
category for the year ended April 30, 1996. These rankings reflect no sales
charges, and past performance is no guarantee of future results.
Economic Environment
We believe the U.S. economy will continue to show moderate growth in 1996,
although this growth may be somewhat uneven as we move from quarter to quarter.
Thus, while one quarter may experience an annualized rate of growth in gross
domestic product of less than 1%, another quarter may see annualized growth in
excess of 3% - but, for the year, we believe growth could stay within our
expected range of 2% to 2 1/2%. While some increase in consumer spending took
place in the early months of this year, consumers, who represent two-thirds of
the economy, remain in a somewhat weakened position, due in part to an increase
in consumer installment debt in excess of 30% over the past two years.
Meanwhile, growth is also being constrained by ongoing economic doldrums in
Europe and Japan, important markets for U.S. exports. Here again, we are seeing
a few tentative signs, particularly in Japan, of modest recoveries that could
lead to improved prospects for U.S. exporters. Also, the "lag effect" of
increases in short-term interest rates by the Federal Reserve Board in 1994 and
into 1995 is helping to keep growth in check. This lag effect can last up to two
years, and although the Fed did reduce short-term rates late last year and
earlier this year, we expect it to continue its diligent anti-inflationary
policies. Finally, it appears that inflation is likely to remain under control
this year, due in part to a continued moderation in wage pressures and the
subdued level of economic growth. At the same time, we believe the current
upward pressure on energy prices bears close scrutiny, as energy is an important
component of the inflation outlook.
Bond Markets
Persistent signs of economic weakness led to decreases in short-term interest
rates by the Federal Reserve in late 1995 and early 1996. However, should signs
of economic growth and, particularly, of higher inflation continue, we would
expect the Fed to maintain its anti-inflationary stance. This would likely mean
no further reductions in short-term interest rates, and could lead to some
modest increases. In the beginning of the year, bond markets were trading in a
narrow range, as investors shifted between concern about the lack of a budget
resolution in Washington and hopes that sluggish economic reports and low
inflation might lead to lower interest rates. Later, fixed-income markets began
reacting to conflicting signals regarding the strength of the economy with
more-volatile trading patterns marked by an upward bias in interest rates.
Interest rates may move even higher over the coming months, but we believe the
current rise in bond yields is reaching a point where fixed-income markets are
becoming attractively valued.
Portfolio Performance and Strategy
The Fund's performance over the past year was mainly the result of the decline
in short-term interest rates during the period. Rates on two-year Treasury
securities declined from 6 5/8% at the beginning of the period to around 6% at
the end of April. The reduction in rates, which was concentrated in the first
half of the year, was triggered by the slowing pace of economic growth, which
led the Federal Reserve to lower interest rates on three separate occasions
beginning on July 6, 1995. The Fund's performance was also aided by its
significant exposure to investment-grade corporate securities. Corporate
securities, which made up as much as 80% of the portfolio during the period,
outperformed Treasury securities in the one- to five-year range by approximately
85 basis points (0.85%) (although principal value and interest on Treasury
securities are guaranteed by the U.S. government if held to maturity). As the
U.S. economy entered its fifth year of growth in the current economic cycle, the
past year's strong performance was consistent with the general rule that
corporate securities outperform Treasury securities during periods of positive
economic activity. Profits and corporate cash flow are generally strongest
during periods of economic growth and weakest during periods of recession.
The Fund also benefited from owning positions in both the media and cable
industries and in the Yankee bond sectors, which were among the best-performing
sectors of the corporate bond market. Media/cable companies in which the Fund
had positions, including Time Warner and News America Holdings, have benefited
from their ability to reduce debt and from public perceptions of them as solid
investment-grade credits. At the same time, the fortunes of Yankee bond issuers
Colombia and Greece improved as the market became comfortable with their
abilities to remain economically resilient despite local political developments.
Conservative investors should be pleased with the portfolio's low volatility
as of April 30, 1996, which is one of the Fund's objectives. Despite the
175-basis point (1.75%) range in two-year Treasury rates, the Fund's net asset
value remained in a narrow 2.7% range of $7.10 to $7.30 based on Class A shares.
Toward the end of the period, we began to reduce the duration (a measure of
interest rate sensitivity) of the Fund based on concerns that recent signs of
economic growth in the first quarter could continue through the second quarter.
After being as high as 2 1/2 years for much of the year, the duration has been
reduced to 1 1/2 years, which is 25% shorter than what we consider a normal
duration of 2 years. Based on our view that the economy will continue to grow,
we are maintaining roughly two-thirds of the portfolio in investment-grade
corporate securities.
We appreciate your support and welcome any questions or comments you may
have.
Respectfully,
[A photo of A. Keith Brodkin, [A photo of Geoffrey L. Kurinsky,
Chairman and President] Portfolio Manager]
/s/ A. Keith Brodkin /s/ Geoffrey L. Kurinsky
Chairman and President Portfolio Manager
May 10, 1996
<PAGE>
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. In
1992, he became Portfolio Manager of MFS Limited Maturity Fund.
OBJECTIVE AND POLICIES
The Fund's primary investment objective is to provide as high a level of current
income as is believed to be consistent with prudent investment risk. The Fund's
secondary objective is to protect shareholders' capital.
The Fund, under normal market conditions, invests substantially all of its
assets in debt securities rated within the four highest grades as determined by
Standard & Poor's Ratings Group (AAA, AA, A or BBB), Fitch Investors Services,
Inc. or Moody's Investors Services, Inc. and comparable unrated securities,
securities which are issued or guaranteed by the U.S. government or its agencies
or instrumentalities, commercial paper, repurchase agreements and cash or cash
equivalents. Under normal market conditions, substantially all of the securities
in the Fund's portfolio will have remaining maturities of five years or less.
TAX FORM SUMMARY
In January 1996, shareholders were mailed a Tax Form Summary reporting the
federal tax status of all distributions paid during the calendar year 1995.
PERFORMANCE
The information on the following page illustrates the historical performance of
MFS Limited Maturity Fund Class A shares in comparison to various market
indicators. Fund results in the graph reflect the deduction of the 2.50% maximum
sales charge; benchmark comparisons are unmanaged and do not reflect any fees or
expenses. You cannot invest in an index. All results reflect the reinvestment of
all dividends and capital gains.
Class B shares were offered effective September 7, 1993. Information on Class B
share performance appears on the next page.
Please note that effective July 1, 1994, Class C shares were offered.
Information on Class C share performance appears on the next page.
Please note that the performance of other classes will be greater than or less
than the line shown, based on the differences in loads and fees paid by
shareholders investing in the different classes.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
(For the Period from March 1, 1992 to April 30, 1996)
$10,000 3/1/92 - 4/30/96
Merrill Lynch
MFS 1-5 Yr. Gov't./Corp.
Days Limited Maturity Fund-A Bond Index CPI
---- ----------------------- -------------------- ---
3/1/92 0 9,750 10,000 10,000
4/30/92 60 9,830 10,080 10,065
4/30/93 425 10,731 11,130 10,390
4/30/94 790 10,904 11,279 10,635
4/30/95 1,155 11,568 11,969 10,960
4/30/96 1,521 12,436 12,859 11,277
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
Life of Class
through
1 Year 3 Years 4/30/96
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS Limited Maturity Fund (Class A)
including 2.50% sales charge +4.84% +4.16% +5.36%<F1>
- --------------------------------------------------------------------------------------
MFS Limited Maturity Fund (Class A) at net
asset value +7.50% +5.04% +6.01%<F1>
- --------------------------------------------------------------------------------------
MFS Limited Maturity Fund (Class B) with CDSC<F2> +2.52% -- +2.71%<F4>
- --------------------------------------------------------------------------------------
MFS Limited Maturity Fund (Class B) without CDSC +6.52% -- +3.73%<F4>
- --------------------------------------------------------------------------------------
MFS Limited Maturity Fund (Class C) with CDSC<F5> +5.44% -- +6.39%<F6>
- --------------------------------------------------------------------------------------
MFS Limited Maturity Fund (Class C) without CDSC +6.44% -- +6.39%<F6>
- --------------------------------------------------------------------------------------
Average short-term investment-grade debt fund<F3> +6.47% +4.42% +5.30%<F8>
- --------------------------------------------------------------------------------------
Merrill Lynch One- to Five-Year Government/
Corporate Bond Index<F7> +7.43% +4.93% +6.17%<F8>
- --------------------------------------------------------------------------------------
Consumer Price Index<F3><F9> +2.90% +2.77% +2.93%<F8>
- --------------------------------------------------------------------------------------
<FN>
<F1>For the period from the commencement of offering of Class A shares,
February 26, 1992 to April 30, 1996.
<F2>These returns reflect the current Class B contingent deferred sales
charge (CDSC) of 4% for the 1-year period and 3% for the period
commencing September 7, 1993.
<F3>Source: Lipper Analytical Services.
<F4>For the period from the commencement of offering of Class B shares,
September 7, 1993 to April 30, 1996.
<F5>Class C shares have no initial sales charge but, along with Class B
shares, have higher annual fees and expenses than Class A shares.
Class C share purchases made on or after April 1, 1996, will be
subject to a 1% CDSC if redeemed within 12 months of purchase.
<F6>For the period from the commencement of offering of Class C shares,
July 1, 1994 to April 30, 1996.
<F7>Source: Asset Investment Management (AIM) software.
<F8>Benchmark comparisons begin on March 1, 1992.
<F9>The Consumer Price Index is a popular measure of change in prices.
</FN>
</TABLE>
All results are historical and are not an indication of future results. The
investment return and principal value of an investment in a mutual fund will
vary with changes in market conditions, and shares, when redeemed, may be worth
more or less than their original cost.
<PAGE>
PORTFOLIO OF INVESTMENTS - April 30, 1996
Bonds - 96.8%
- -----------------------------------------------------------------------------
S&P
Bond Rating Principal Amount
(Unaudited) Issuer (000 Omitted) Value
- -----------------------------------------------------------------------------
Banks and Credit Companies - 3.6%
BBB- Advanta Corp., 7.07s, 1997 $ 5,000 $ 5,038,400
- -----------------------------------------------------------------------------
Commercial Services - 2.9%
BB+ Loewen Group, Inc., 7.5s,
2001+ $ 4,000 $ 3,960,000
- -----------------------------------------------------------------------------
Corporate Asset Backed - 9.3%
A First Chicago Master Trust,
8.23s, 1996 $ 1,000 $ 1,013,040
NR Merrill Lynch Mortgage
Investors, Inc., 9.7s, 2010 1,183 1,211,101
NR Merrill Lynch Mortgage
Investors, Inc., 9.75s,
2010 400 409,882
NR Merrill Lynch Mortgage
Investors, Inc., 8.3s, 2011 45 45,604
NR Merrill Lynch Mortgage
Investors, Inc., 10s, 2011 41 43,125
NR Merrill Lynch Mortgage
Investors, Inc., 8.19s,
2021 4,409 4,509,849
NR Residential Accredit Loans,
7.05s, 2019 5,600 5,579,000
------------
$ 12,811,601
- -----------------------------------------------------------------------------
Entertainment - 5.7%
BB+ Paramount Communications,
5.875s, 2000 $ 4,000 $ 3,806,520
BBB- Time Warner, Inc., 7.95s,
2000 4,000 4,099,800
------------
$ 7,906,320
- -----------------------------------------------------------------------------
Financial Institutions - 7.7%
A Countrywide Funding Corp.,
6.57s, 1997 $ 500 $ 502,295
A Lehman Brothers Holdings,
Inc., 7.375s, 2007 5,000 5,088,550
BBB- United Cos., Financial Corp.,
7s, 1998 5,000 5,001,900
------------
$ 10,592,745
- -----------------------------------------------------------------------------
Food and Beverage Products - 4.7%
BBB- Borden, Inc., 9.875s, 1997 $ 1,290 $ 1,340,749
BBB- RJR Nabisco, Inc., 8s, 2001 5,250 5,151,615
------------
$ 6,492,364
- -----------------------------------------------------------------------------
Foreign - U.S. Dollars - 4.6%
BBB- Empresa Electrica Guacolda
S.A., 7.6s, 2001+ $ 3,305 $ 3,292,772
BBB- Republic of Colombia, 8.75s, 1999 3,000 3,097,500
------------
$ 6,390,272
- -----------------------------------------------------------------------------
Machinery - 0.4%
BBB Joy Technologies, 10.25s, 2003 $ 540 $ 594,000
- -----------------------------------------------------------------------------
Oils - 2.2%
BBB- Mitchell Energy &
Development, 8s, 1999 $ 3,000 $ 3,029,160
- -----------------------------------------------------------------------------
<PAGE>
Real Estate Investment Trusts - 1.7%
BBB- Sun Communities, Inc., 7.375s, 2001 $ 2,400 $ 2,391,000
- -----------------------------------------------------------------------------
Stores - 3.5%
BBB- Woolworth Corp., 7s, 2000 $ 5,000 $ 4,900,150
- -----------------------------------------------------------------------------
Telecommunications - 2.9%
BBB- Telecommunications, Inc.,
7.375s, 2000 $ 4,000 $ 4,002,840
- -----------------------------------------------------------------------------
U.S. Government and Agency
Obligations - 26.2%
GOV Federal National Mortgage
Assn., 6.5s, 2017 $ 5,925 $ 5,842,429
GOV Federal National Mortgage
Assn., 7s, 2006 - 2011 13,396 13,249,621
GOV Federal National Mortgage
Assn., 7.5s, 2010 - 2011 5,735 5,771,095
GOV Federal National Mortgage
Assn., 8.5s, 2007 118 122,876
GOV Federal National Mortgage
Assn., 8.5s, 2025 69 70,426
GOV Government National Mortgage
Assn., 7.5s, 2009 10,000 10,131,200
GOV Government National Mortgage
Assn., 12.5s, 2011 538 626,646
GOV U.S. Treasury Notes, 6.25s, 2001 500 496,875
------------
$ 36,311,168
- -----------------------------------------------------------------------------
Utilities - Electric - 21.4%
BBB- Arizona Public Services,
6.49s, 2001 $ 5,073 $ 5,034,547
BB Central Maine Power, 7.5s, 1997 4,500 4,532,985
BBB- Gulf States Utilities Co.,
8.21s, 2002 6,000 6,143,220
BBB- Long Island Lighting Co.,
7.625s, 1998 7,500 7,509,375
BBB- Louisiana Power & Light Co.,
10.67s, 2017 2,500 2,688,425
BBB- System Energy Resources, 7.38s, 2000 3,895 3,797,625
------------
$ 29,706,177
- -----------------------------------------------------------------------------
Total Bonds (Identified Cost, $135,235,132) $134,126,197
- -----------------------------------------------------------------------------
Repurchase Agreement - 0.8%
- -----------------------------------------------------------------------------
Goldman Sachs Group L.P., dated 4/30/96,
due 5/01/96, total to be received $1,202,869
(secured by $254,153 par, FNMA at 7.58s, due
4/19/06, market value $254,057; $153,368 par,
FNMA at 6.17s, due 12/30/03, market value
$145,198; $113,378 par, FNMA at 5.3s, due
12/10/98, market value $110,401; $549,880 par,
FHLMC at 0s, due 5/ 23/96, market value $547,970;
and $98,693 par, FHLB at 7.65s, due 3/25/97, market
value $100,414), at Amortized Cost $ 1,142 $ 1,142,000
- -----------------------------------------------------------------------------
Total Investments (Identified Cost, $136,377,132) $135,268,197
Other Assets, Less Liabilities - 2.4% 3,259,026
- -----------------------------------------------------------------------------
Net Assets - 100.0% $138,527,223
- -----------------------------------------------------------------------------
+Restricted security.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
- ------------------------------------------------------------------------------
April 30, 1996
- ------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $136,377,132) $ 135,268,197
Cash 206
Receivable for daily variation margin on open futures
contracts 103,000
Receivable for Fund shares sold 654,247
Receivable for investments sold 11,155,389
Interest receivable 1,820,298
Deferred organization expenses 3,753
Other assets 1,549
--------------
Total assets $ 149,006,639
--------------
Liabilities:
Distributions payable $ 190,019
Payable for Fund shares reacquired 102,444
Payable for investments purchased 10,156,250
Payable to affiliates -
Management fee 4,510
Distribution fee 19,862
Accrued expenses and other liabilities 6,331
--------------
Total liabilities $ 10,479,416
--------------
Net assets $ 138,527,223
==============
Net assets consist of:
Paid-in capital $ 143,786,274
Unrealized depreciation on investments (361,492)
Accumulated net realized loss on investments (4,366,910)
Accumulated distributions in excess of net investment
income (530,649)
--------------
Total $ 138,527,223
==============
Shares of beneficial interest outstanding 19,454,679
==============
Class A shares:
Net asset value and redemption price per share
(net assets of $98,582,037 / 13,842,465 shares of
beneficial interest outstanding) $7.12
=====
Offering price per share (100/97.5) $7.30
=====
Class B shares:
Net asset value and offering price per share
(net assets of $26,463,529 / 3,720,318 shares of
beneficial interest outstanding) $7.11
=====
Class C shares:
Net asset value, offering price and redemption price per
share
(net assets of $13,481,657 / 1,891,896 shares of
beneficial interest outstanding) $7.13
=====
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, Class
B and Class C shares.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Operations
- ------------------------------------------------------------------------------
Year Ended April 30, 1996
- ------------------------------------------------------------------------------
Net investment income:
Interest income $ 9,360,289
-----------
Expenses -
Management fee $ 489,030
Trustees' compensation 21,406
Shareholder servicing agent fee (Class A) 138,086
Shareholder servicing agent fee (Class B) 47,466
Shareholder servicing agent fee (Class C) 12,571
Distribution and service fee (Class A) 138,086
Distribution and service fee (Class B) 205,519
Distribution and service fee (Class C) 83,445
Custodian fee 44,687
Auditing fees 33,200
Printing 27,225
Postage 19,831
Amortization of organization expenses 4,586
Legal fees 2,891
Miscellaneous 104,523
-----------
Total expenses $ 1,372,552
Fees paid indirectly (8,646)
Refund of expenses pursuant to reimbursement agreement 42,149
-----------
Net expenses $ 1,406,055
-----------
Net investment income $ 7,954,234
-----------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) (identified cost basis) -
Investment transactions $ 2,703,610
Futures contracts (1,393,012)
-----------
Net realized gain on investments $ 1,310,598
-----------
Change in unrealized appreciation (depreciation) -
Investments $(1,976,863)
Futures contracts 699,209
-----------
Net unrealized loss on investments $(1,277,654)
-----------
Net realized and unrealized gain on investments $ 32,944
-----------
Increase in net assets from operations $ 7,987,178
===========
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- -----------------------------------------------------------------------------------------------
Year Ended April 30, 1996 1995
- -----------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
From operations -
<S> <C> <C>
Net investment income $ 7,954,234 $ 7,248,470
Net realized gain (loss) on investments 1,310,598 (3,398,821)
Net unrealized gain (loss) on investments (1,277,654) 2,524,452
------------ ------------
Increase in net assets from operations $ 7,987,178 $ 6,374,101
------------ ------------
Distributions declared to shareholders -
From net investment income (Class A) $ (6,197,868) $ (6,069,321)
From net investment income (Class B) (1,273,328) (875,473)
From net investment income (Class C) (483,038) (212,068)
In excess of net investment income (Class A) (105,605) --
In excess of net investment income (Class B) (37,487) --
In excess of net investment income (Class C) (27,955) --
------------ ------------
Total distributions declared to shareholders $ (8,125,281) $ (7,156,862)
------------ ------------
Fund share (principal) transactions -
Net proceeds from sale of shares $ 78,771,957 $ 56,036,281
Net asset value of shares issued to shareholders in
reinvestment of distributions 5,979,726 5,481,250
Cost of shares reacquired (53,643,464) (65,546,283)
------------ ------------
Increase (decrease) in net assets from Fund share
transactions $ 31,108,219 $ (4,028,752)
------------ ------------
Total increase (decrease) in net assets $ 30,970,116 $ (4,811,513)
Net assets:
At beginning of period 107,557,107 112,368,620
------------ ------------
At end of period (including accumulated distributions
in excess of net investment income of $530,649 and
$239,443, respectively) $138,527,223 $107,557,107
============ ============
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights
- --------------------------------------------------------------------------------------------
Year Ended April 30, 1996 1995 1994 1993 1992<F1>
- --------------------------------------------------------------------------------------------
Class A
- --------------------------------------------------------------------------------------------
Per share data (for a share outstanding throughout each period):
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $ 7.10 $ 7.14 $ 7.46 $ 7.29 $ 7.31
------ ------ ------ ------ ------
Income from investment operations<F3> -
Net investment income $ 0.48 $ 0.46 $ 0.44 $ 0.48 $ 0.08
Net realized and unrealized gain
(loss) on investments 0.03 (0.04) (0.32) 0.17<F5> (0.02)<F5>
------ ------ ------ ------ ------
Total from investment operations $ 0.51 $ 0.42 $ 0.12 $ 0.65 $ 0.06
------ ------ ------ ------ ------
Less distributions declared to shareholders<F7>
From net investment income $(0.48) $(0.46) $(0.42) $(0.48) $(0.08)
In excess of net investment income (0.01) -- (0.02) -- --
------ ------ ------ ------ ------
Total distributions declared to
shareholders $(0.49) $(0.46) $(0.44) $(0.48) $(0.08)
------ ------ ------ ------ ------
Net asset value - end of period $ 7.12 $ 7.10 $ 7.14 $ 7.46 $ 7.29
====== ====== ====== ====== ======
Total return<F6> 7.50% 6.09% 1.61% 9.17% 4.98%<F2>
Ratios (to average net assets)/
Supplemental data<F8>:
Expenses<F4> 0.95% 0.95% 0.85% 0.60% 0.55%<F2>
Net investment income 6.73% 6.54% 5.99% 6.40% 6.22%<F2>
Portfolio turnover 385% 498% 861% 472% 72%
Net assets at end of period (000 omitted) $98,582 $85,773 $100,297 $67,470 $4,924
<FN>
<F1>For the period from the commencement of investment operations, February 26, 1992 to April 30, 1992.
<F2>Annualized.
<F3>Per share data for the periods subsequent to April 30, 1994 is based on average shares outstanding.
<F4>For periods ending after September 1, 1995, the Fund's expenses are calculated without reduction for fees paid indirectly.
<F5>The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing
of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
<F6>Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the results
would have been lower.
<F7>For the year ended April 30, 1993, the per share distribution from net realized gain on investments was $0.0021.
<F8>The investment adviser did not impose a portion of its managment fee and assumed some of the operating expenses of the Fund
for certain of the periods indicated. If these fees and expenses had been incurred by the Fund and if the expense reimbursement
agreement had not been in effect, the net investment income per share and the ratios would have been:
Net investment income $ 0.48 $ 0.46 $ 0.42 $ 0.43 $ 0.07
Ratios (to average net assets):
Expenses 0.91% 0.97% 1.07% 1.29% 1.44%<F2>
Net investment income 6.77% 6.52% 5.77% 5.70% 5.33%<F2>
</FN>
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights - continued
- --------------------------------------------------------------------------------------------
Year Ended April 30, 1996 1995 1994<F1> 1996 1995<F2>
- --------------------------------------------------------------------------------------------
Class B Class C
- --------------------------------------------------------------------------------------------
Per share data (for a share outstanding throughout each period):
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $ 7.10 $ 7.14 $ 7.50 $ 7.11 $ 7.08
------ ------ ------ ------ ------
Income from investment operations<F5> -
Net investment income $ 0.42 $ 0.41 $ 0.21 $ 0.41 $ 0.37
Net realized and unrealized gain
(loss) on investments 0.03 (0.05) (0.33) 0.04 (0.01)
------ ------ ------ ------ ------
Total from investment operations $ 0.45 $ 0.36 $(0.12) $ 0.45 $ 0.36
------ ------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $(0.42) $(0.40) $(0.23) $(0.41) $(0.33)
In excess of net investment income (0.02) -- (0.01) (0.02) --
------ ------ ------ ------ ------
Total distributions declared to
shareholders $(0.44) $(0.40) $(0.24) $(0.43) $(0.33)
------ ------ ------ ------ ------
Net asset value - end of period $ 7.11 $ 7.10 $ 7.14 $ 7.13 $ 7.11
====== ====== ====== ====== ======
Total return 6.52% 5.20% (1.69)%<F4> 6.44% 5.25%<F4>
Ratios (to average net assets)/Supplemental data<F7>:
Expenses<F6> 1.75% 1.81% 1.74%<F3> 1.80% 1.85%<F3>
Net investment income 5.90% 5.73% 4.90%<F3> 5.76% 6.01%<F3>
Portfolio turnover 385% 498% 861% 385% 498%
Net assets at end of period (000 omitted) $26,464 $17,334 $12,072 $13,482 $4,450
<FN>
<F1>For the period from the commencement of offering of Class B shares, September 7, 1993 to April 30, 1994.
<F2>For the period from the commencement of offering of Class C shares, July 1, 1994 to April 30, 1995.
<F3>Annualized.
<F4>Not annualized.
<F5>Per share data for the periods subsequent to April 30, 1994 is based on average shares outstanding.
<F6>For periods ending after September 1, 1995, the Fund's expenses are calculated without reduction for fees paid indirectly.
<F7>The investment adviser did not impose a portion of its managment fee and assumed some of the operating expenses of the Fund
for certain of the periods indicated. If these fees and expenses had been incurred by the Fund and if the expense reimbursement
agreement had not been in effect, the net investment income per share and the ratios would have been:
Net investment income $ 0.42 $ 0.41 $ 0.20 $ 0.41 $ 0.37
Ratios (to average net assets):
Expenses 1.77% 1.82% 1.96%<F3> 1.75% 1.88%<F3>
Net investment income 5.88% 5.72% 4.68%<F3> 5.81% 5.98%<F3>
</FN>
See notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) Business and Organization
MFS Limited Maturity Fund (the Fund) is a diversified series of MFS Series Trust
IX (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.
Investment Valuations - Debt securities (other than short-term obligations which
mature in 60 days or less), including listed issues, 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. 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.
Deferred Organization Expenses - Costs incurred by the Fund in connection with
its organization have been deferred and are being amortized on a straight-line
basis over a five-year period beginning on the date of commencement of
operations of the Fund.
Futures Contracts - The Fund may enter into futures contracts for the delayed
delivery of securities or contracts based on financial indices at a fixed price
on a future date. In entering such contracts, the Fund is required to deposit
either in cash or securities an amount equal to a certain percentage of the
contract amount. Subsequent payments are made or received by the Fund each day,
depending on the daily fluctuations in the value of the underlying security, and
are recorded for financial statement purposes as unrealized gains or losses by
the Fund. The Fund's investment in futures contracts is designed to hedge
against anticipated future changes in interest rates or securities prices.
Investments in interest rate futures for purposes other than hedging may be made
to modify the duration of the portfolio without incurring the additional
transaction costs involved in buying and selling the underlying securities.
Should interest rates or securities prices move unexpectedly, the Fund may not
achieve the anticipated benefits of the futures contracts and may realize a
loss.
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.
Interest payments received in additional securities are recorded on the
ex-interest date in an amount equal to the value of the security on such date.
Fees Paid Indirectly - The Fund's custodian bank calculates its fee based on the
Fund's average daily net assets. This fee is reduced according to an expense
offset arrangement with State Street Bank, the dividend disbursing agent, which
provides for partial reimbursement of custody fees based on a formula developed
to measure the value of cash deposited by the Fund with the custodian and with
the dividend disbursing agent. This amount is shown as a reduction of expenses
on the Statement of Operations.
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 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. 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 tax 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. During the year ended April 30, 1996, $120,159 was reclassified from
accumulated undistributed net realized loss on investments to accumulated
distributions in excess of net investment income, due to differences between
book and tax accounting for mortgage-backed securities. This change had no
effect on the net assets or net asset value per share.
At April 30, 1996, the Fund, for federal income tax purposes, had a capital loss
carryforward of $3,619,464 which may be applied against any net taxable realized
gains of each succeeding year until the earlier of its utilization or expiration
on April 30, 2003.
Multiple Classes of Shares of Beneficial Interest - The Fund offers Class A,
Class B and Class C shares. The three 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 annual rate of 0.40% of
average daily net assets.
Under a temporary expense reimbursement agreement with MFS, MFS has voluntarily
agreed to pay all of the Fund's operating expenses, exclusive of management,
distribution and service fees. The Fund will in turn pay MFS an expense
reimbursement fee not greater than 0.40% 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 April 30,
1996, the aggregate unreimbursed expenses owed to MFS by the Fund amounted to
$106,359 after $42,149 net reimbursement in the current year.
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 of its independent Trustees and Mr. Bailey. Included in Trustees'
compensation is a net periodic pension expense of $4,146 for the year ended
April 30, 1996.
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$40,392 for the year ended April 30, 1996, as its portion of the sales charge on
sales of Class A shares of the Fund.
The Trustees have adopted separate distribution plans for Class A, Class B and
Class C 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 (reduced to a maximum of 0.15% per annum for an indefinite
period) 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 $15,962 for the year
ended April 30, 1996. MFD is not imposing the 0.10% distribution fee for an
indefinite period. Fees incurred under the distribution plan during the year
ended April 30, 1996 were 0.15% of average daily net assets attributable to
Class A shares on an annualized basis.
The Class B and Class C distribution plans provide 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 and Class C
shares. The service fee is currently being reduced to 0.15% on Class B shares
held over one year. 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
and Class C shares, and will pay to such securities dealers all of the
distribution fee attributable to Class C shares. The service fee is intended to
be additional consideration for services rendered by the dealer with respect to
Class B and Class C shares. MFD retains the service fee for accounts not
attributable to a securities dealer, which amounted to $2,263 and $1,477 for
Class B and Class C shares, respectively, for the year ended April 30, 1996.
Fees incurred under the distribution plans during the year ended April 30, 1996
were 0.95% and 1.00%, respectively, of average daily net assets attributable to
Class B and Class C shares on an annualized basis.
Purchases over $1 million of Class A shares and certain purchases into
retirement plans are subject to a contingent deferred sales charge in the event
of a shareholder redemption within twelve months following such 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.
A contingent deferred sales charge is imposed on shareholder redemptions of
Class C shares in the event of a shareholder redemption within twelve months of
purchases made on or after April 1, 1996. MFD receives all contingent deferred
sales charges. Contingent deferred sales charges imposed during the year ended
April 30, 1996 were $412, $43,291 and $0 for Class A, Class B and Class C
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%, up to 0.22%, and up to 0.15% attributable
to Class A, Class B, and Class C shares, respectively.
(4) Portfolio Securities
Purchases and sales of investments, other than purchased option transactions and
short-term obligations, were as follows:
Purchases Sales
- ------------------------------------------------------------------------------
U.S. government securities $207,577,666 $223,315,803
============ ============
Investments (non-U.S. government securities) $290,937,681 $233,932,017
============ ============
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 $136,377,132
============
Gross unrealized depreciation $ (1,432,162)
Gross unrealized appreciation 323,227
------------
Net unrealized depreciation $ (1,108,935)
============
(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
Year Ended April 30, 1996 1995
-------------------------- --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 5,978,674 $ 43,102,663 3,921,821 $ 27,684,487
Shares issued to shareholders
in reinvestment of distributions 638,556 4,600,038 655,143 4,624,574
Shares reacquired (4,851,688) (34,933,425) (6,542,877) (46,091,355)
--------- ------------ --------- ------------
Net increase (decrease) 1,765,542 $ 12,769,276 (1,965,913) $(13,782,294)
========= ============ ========= ============
Class B Shares
Year Ended April 30, 1996 1995
-------------------------- --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
Shares sold 2,854,814 $ 20,545,660 2,497,691 $ 17,640,259
Shares issued to shareholders
in reinvestment of distributions 135,072 971,974 99,556 701,588
Shares reacquired (1,712,548) (12,331,259) (1,845,637) (13,014,943)
--------- ------------ --------- ------------
Net increase 1,277,338 $ 9,186,375 751,610 $ 5,326,904
========= ============ ========= ============
Class C Shares
Year Ended April 30, 1996 1995<F1>
-------------------------- --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
Shares sold 2,095,271 $ 15,123,634 1,524,637 $ 10,711,535
Shares issued to shareholders
in reinvestment of distributions 56,575 407,714 22,123 155,088
Shares reacquired (886,139) (6,378,780) (920,571) (6,439,985)
--------- ------------ --------- ------------
Net increase 1,265,707 $ 9,152,568 626,189 $ 4,426,638
========= ============ ========= ============
</TABLE>
[FN]
<F1>For the period from commencement of offering of Class C shares, July 31,
1994 to April 30, 1995.
(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 year ended April 30,
1996 was $1,482
(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 April 30, 1996, is
as follows:
Futures Contracts
Unrealized
Description Expiration Contracts Position Appreciation
- ------------------------------------------------------------------------------
U.S. Treasury Notes June 1996 412 Short $747,443
========
At April 30, 1996, the Fund had sufficient cash and/or securities to cover
margin requirements on open futures contracts.
(8) Restricted Securities
The Fund may invest not more than 15% of its net assets in securities which are
subject to legal or contractual restrictions on resale. At April 30, 1996, the
Fund owned the following restricted securities (constituting 5.24% of net
assets) which may not be publicly sold without registration under the Securities
Act of 1933. The Fund does not have the right to demand that such securities be
registered. The value of these securities is determined by valuations supplied
by a pricing service or brokers or, if not available, in good faith by or at the
direction of the Trustees.
<TABLE>
<CAPTION>
Par Amount
Description Date of Acquisition (000 Omitted) Cost Value
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Empresa Electrica Guacolda S.A., 7.6s, 2001 4/22/96 $3,305 $3,305,000 $3,292,772
Loewen Group, Inc., 7.5s, 2001 3/13/96 4,000 3,988,040 3,960,000
----------
$7,252,772
==========
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Trustees of MFS Series Trust IX and Shareholders of MFS Limited Maturity
Fund:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of MFS Limited Maturity Fund, a series of MFS
Series Trust IX, as of April 30, 1996, the related statement of operations for
the year then ended, the statement of changes in net assets for the years ended
April 30, 1996 and 1995, and the financial highlights for each of the years in
the five-year period ended April 30, 1996. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
April 30, 1996 by correspondence with the custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of MFS Limited Maturity
Fund at April 30, 1996, the results of its operations, the changes in its net
assets, and its financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 7, 1996
---------------------------------------------
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)
LIMITED MATURITY FUND DALBAR
MFS #1 MFS
500 Boylston Street DALBAR
Boston, MA 02116
[LOGO] MFS
THE FIRST NAME IN MUTUAL FUNDS
BULK RATE
U.S. POSTAGE
P A I D
PERMIT #55638
BOSTON, MA
MLM-2 6/96 11.5M 36/236/336
