<PAGE>
[LOGO] M F S(SM) Semiannual Report
INVESTMENT MANAGEMENT October 31, 1997
MFS(R) MUNICIPAL LIMITED MATURITY FUND
[Graphic Omitted]
LEARNING FINANCIAL BASICS THE EASY WAY (see page 24)
<PAGE>
TABLE OF CONTENTS
Letter from the Chairman .................................................. 1
Portfolio Manager's Overview .............................................. 2
Portfolio Manager's Profile ............................................... 3
Fund Facts ................................................................ 4
Performance Summary ....................................................... 4
Portfolio Concentration ................................................... 5
Portfolio of Investments .................................................. 6
Financial Statements ...................................................... 10
Notes to Financial Statements ............................................. 17
MFS Investment Opportunities .............................................. 22
The MFS Family of Funds(R) ................................................ 23
The ABCs of Investing ..................................................... 24
Trustees and Officers ..................................................... 25
HIGHLIGHTS
o FOR THE SIX MONTHS ENDED OCTOBER 31, 1997, CLASS A SHARES OF THE FUND
PROVIDED A TOTAL RETURN AT NET ASSET VALUE OF 3.22%, CLASS B SHARES 2.82%,
AND CLASS C SHARES 2.77%. (SEE PERFORMANCE SUMMARY FOR MORE INFORMATION.)
o THE FIXED-INCOME MARKET HAS BENEFITED FROM A CONTINUATION OF HEALTHY, BUT
NOT OVERHEATED, ECONOMIC GROWTH, LOW INFLATION RATES DESPITE SCATTERED
REPORTS OF WAGE PRESSURES, THE STRONG DOLLAR, AND THE VIRTUAL ELIMINATION
OF THE FEDERAL BUDGET DEFICIT.
o GIVEN THE ECONOMY'S UNUSUAL CONSISTENCY AND ECONOMIC PROSPERITY, THE
MUNICIPAL MARKET HAS BEEN CHARACTERIZED BY NARROWING YIELD SPREADS AMONG
QUALITIES AND VIRTUAL UNIFORMITY IN PERFORMANCE AMONG SECTORS AND REGIONS.
o ALTHOUGH THE FUND'S AVERAGE MATURITY HAS BEEN NEAR THE LOWER END OF ITS
HISTORICAL RANGE, WE BELIEVE THAT A STABLE, MODERATE AVERAGE MATURITY IS IN
THE LONG-TERM BEST INTEREST OF SHAREHOLDERS.
<PAGE>
LETTER FROM THE CHAIRMAN
[Photo of A. Keith Brodkin]
Dear Shareholders:
An unprecedented combination of generally positive factors has helped the U.S.
economy enjoy a sustained period of relative stability and moderate growth in
which thousands of new jobs have been created every month, inflation remains
under control, and the investment climate -- at least until now -- has been
favorable. For example, the increased use of technology and other productivity
enhancements, as well as corporate restructuring and global competition, is
improving companies' balance sheets and helping control inflation. Meanwhile,
borrowing by corporations and governments continues to decline, while consumer
confidence is increasing, although consumer debt levels are still uncomfortably
high. The rapid pace of growth seen in the first quarter slowed to an annual
rate of 3.3% in the second quarter and 3.5% in the third. We believe economic
momentum will carry well into the first quarter of 1998, as the money supply is
increasing at a rapid rate, and it still appears that Christmas sales could be
quite good. Because economic growth continues to be impressive, markets are
likely to continue to focus on the Federal Reserve Board's (the Fed's)
willingness to raise interest rates.
The U.S. government bond market has benefited from the deflationary events in
Southeast Asia, while the high-yield and emerging-debt markets have come under
severe pressure. Inflation remains under control, and the Fed will most likely
take a wait-and-see attitude toward raising interest rates. As a result, our
near-term outlook for high-grade markets is neutral to moderately positive. At
the same time, high-yield markets, having gone through a substantial correction,
could offer reasonable value but require careful selection. Overall,
fixed-income markets appear to be reasonably valued.
We appreciate your support and welcome any questions or comments you may have.
Respectfully,
/s/ A. Keith Brodkin
A. Keith Brodkin
Chairman and President
November 14, 1997
<PAGE>
PORTFOLIO MANAGER'S OVERVIEW
[Photo of Robert A. Dennis]
Robert A. Dennis
Dear Shareholders:
For the six months ended October 31, 1997, Class A shares of the Fund provided a
total return of 3.22%, Class B shares 2.82%, and Class C shares 2.77%. These
returns assume the reinvestment of distributions but exclude the effects of any
sales charges.
During this period, high-grade municipal bond yields in the three- to five-year
maturity range declined by about 65 basis points (0.65%). Rates generally
declined from May through July, rose during August, and fell again during
September and October. One-year high-grade yields declined only 15 basis points
(0.15%), resulting in a flatter yield curve in this segment of the municipal
bond market.
The driving forces behind the market's strong tone were the continuation of the
general trend of healthy, but not overheated, economic growth and inflation
rates that remained low despite scattered reports of wage pressures in various
segments of the economy. The strong dollar and the virtual elimination of the
federal budget deficit contributed to the positive market performance, while the
turmoil in Southeast Asian markets and resulting volatility in the U.S. stock
market added to the favorable fixed-income picture in recent weeks. Despite a
domestic economy showing impressive growth, the confluence of these factors
appears to have forestalled any near-term prospects for Fed tightening.
While limited-maturity municipals performed well over the past six months, they
underperformed U.S. Treasury bonds, whose yields declined by about 85 basis
points (0.85%) over the same period. (Principal value and interest on Treasury
securities are guaranteed by the U.S. government if held to maturity.) The yield
ratio of five-year municipal bonds rated "AAA" by Standard & Poor's to that of
Treasuries has risen to nearly 73%, from 69% earlier this year. This trend
reflects the fact that new issuance in the municipal market has been heavy in
recent months, outstripping demand. For the first 10 months of 1997, new-issue
volume was up 17% over the same period in 1996.
With the U.S. economy showing unusual consistency in its recent prosperity, the
municipal market has been characterized by narrowing yield spreads among
qualities and virtual uniformity in performance among sectors and regions. The
major change in yield spreads over the past six months has been the yield
advantage of bonds rated "Baa" over those rated "AAA," which has narrowed from
55 to 45 basis points (0.55% to 0.45%).
The Fund's returns lagged the average return of 3.60% for short- to
intermediate-term municipal bond funds as tracked by Lipper Analytical Services,
Inc., an independent firm that reports mutual fund performance. The primary
reason for the underperformance was the fact that the Fund has been run
conservatively over the past year, with an average maturity at close to three
years, near the lower end of its historical range. Funds with longer average
maturities have outperformed during this period. The total returns of the Lehman
Brothers Municipal Bond Index (an unmanaged index of investment-grade municipal
bonds with maturities of two years or more) for three- and five-year maturities
were 3.60% and 4.73%, respectively, over the six-month period. Given the
volatility of interest rates, we believe that maintaining a stable, moderate
average maturity is in the long-term best interest of shareholders.
Respectfully,
/s/ Robert A. Dennis
Robert A. Dennis
Portfolio Manager
<PAGE>
PORTFOLIO MANAGER'S PROFILE
ROBERT A. DENNIS JOINED MFS IN 1980 AND WAS NAMED ASSISTANT VICE PRESIDENT -
INVESTMENTS IN 1981, VICE PRESIDENT - INVESTMENTS IN 1983, AND SENIOR VICE
PRESIDENT IN 1986. A GRADUATE OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY
AND ITS SLOAN SCHOOL OF MANAGEMENT, HE HAS MANAGED MFS(R) MUNICIPAL LIMITED
MATURITY FUND SINCE 1992.
<PAGE>
FUND FACTS
OBJECTIVE: THE INVESTMENT OBJECTIVE OF THE FUND IS TO PROVIDE AS
HIGH A LEVEL OF CURRENT INCOME EXEMPT FROM FEDERAL
INCOME TAXES AS IS CONSIDERED CONSISTENT WITH PRUDENT
INVESTING WHILE SEEKING PROTECTION OF SHAREHOLDERS'
CAPITAL.
COMMENCEMENT OF INVESTMENT OPERATIONS: MARCH 17, 1992
CLASS INCEPTION: CLASS A MARCH 17, 1992
CLASS B SEPTEMBER 7, 1993
CLASS C JULY 1, 1994
SIZE: $48.9 MILLION NET ASSETS AS OF OCTOBER 31, 1997
PERFORMANCE SUMMARY
Because mutual funds like MFS Municipal Limited Maturity 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, Class B, and Class C shares for
the applicable time periods.
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN AS OF OCTOBER 31, 1997
CLASS A INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years Life of Fund*
- --------------------------------------------------------------------------------
Cumulative Total Return +3.22% +4.68% +24.92% +30.40%
- --------------------------------------------------------------------------------
Average Annual Total Return -- +4.68% + 4.55% + 4.83%
- --------------------------------------------------------------------------------
SEC Results -- +2.11% + 4.02% + 4.36%
- --------------------------------------------------------------------------------
CLASS B INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years Life of Fund*
- --------------------------------------------------------------------------------
Cumulative Total Return +2.82% +3.88% +20.67% +25.98%
- --------------------------------------------------------------------------------
Average Annual Total Return -- +3.88% + 3.83% + 4.19%
- --------------------------------------------------------------------------------
SEC Results -- -0.12% + 3.48% + 4.04%
- --------------------------------------------------------------------------------
CLASS C INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years Life of Fund*
- --------------------------------------------------------------------------------
Cumulative Total Return +2.77% +3.80% +21.49% +26.87%
- --------------------------------------------------------------------------------
Average Annual Total Return -- +3.80% + 3.97% + 4.32%
- --------------------------------------------------------------------------------
SEC Results -- +2.80% + 3.97% + 4.32%
- --------------------------------------------------------------------------------
* For the period from the commencement of the Fund's investment operations,
March 17, 1992, through October 31, 1997.
All results are historical and assume the reinvestment of dividends and capital
gains. Investment return and principal value will fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Past performance
is no guarantee of future results.
Class A share SEC results include the 2.50% maximum sales charge. Class B share
SEC results reflect the applicable contingent deferred sales charge (CDSC),
which declines over six years as follows: 4%, 4%, 3%, 3%, 2%, 1%, 0%. 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 are
subject to a 1% CDSC if redeemed within 12 months of purchase.
Class B and Class C share results include the performance and the operating
expenses (e.g., Rule 12b-1 fees) of the Fund's Class A shares for periods prior
to the inception of Class B and Class C shares. Because operating expenses
attributable to Class B and Class C shares are higher than those of Class A
shares, Class B and Class C share SEC performance generally would have been
lower than Class A share performance. The Class A share performance included
within the Class B and Class C share SEC performance has been adjusted to
reflect the CDSC generally applicable to Class B and Class C shares rather than
the initial sales charge generally applicable to Class A shares.
Performance results reflect any applicable expense subsidies and waivers,
without which the performance results would have been less favorable. Subsidies
and waivers may be rescinded at any time. See the prospectus for details.
PORTFOLIO CONCENTRATION AS OF OCTOBER 31, 1997
QUALITY RATINGS
"AAA" 54.2%
"BBB" 22.1%
"AA" 16.0%
"A" 7.7%
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited) - October 31, 1997
<TABLE>
<CAPTION>
Municipal Bonds - 103.2%
- ------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 OMITTED) VALUE
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
General Obligation - 24.9%
Bridgeport, CT, AMBAC, 5.25s, 1999 $1,155 $ 1,179,243
Commonwealth of Massachusetts, 7s, 1999 1,000 1,047,190
Commonwealth of Puerto Rico, 5.5s, 2001 500 520,405
District of Columbia, AMBAC, 7.25s, 1998(S)(S) 500 509,250
Honolulu, HI, FGIC, 5s, 2002 350 360,454
Indianapolis, IN, Local Public Improvement Bond Bank,
6.25s, 2001 1,000 1,055,080
Lawrence, MA, AMBAC, 9.7s, 2001 1,000 1,170,640
New York City, NY, 5s, 2001 650 663,039
New York City, NY, 5.5s, 2001 275 285,208
New York City, NY, 6.125s, 2001 600 635,058
New York City, NY, 5.7s, 2002 500 524,465
New York City, NY, 5.3s, 2003 500 516,560
North Slope Borough, AK, MBIA, 0s, 1999 375 350,044
State of Hawaii, FGIC, 5s, 2002 400 411,748
State of Louisiana, FGIC, 6s, 2000 500 523,940
State of Maryland, 5s, 2002 500 517,280
State of New Jersey, 5.5s, 2002 850 898,484
State of Virginia, 5.375s, 1999 750 766,455
Wallkill, NY, FGIC, 4.5s, 2001 220 222,559
-----------
$12,157,102
- ------------------------------------------------------------------------------------------------
State and Local Appropriation - 17.1%
Metro Transportation Authority, NY, 5s, 2003 $ 350 $ 352,380
Michigan Building Authority Rev., 6.2s, 2002 1,000 1,081,470
Michigan Building Authority Rev., 5.4s, 2003 375 394,627
New York Dormitory Authority Rev. (City University), 5s, 2000 500 508,160
New York Dormitory Authority Rev. (City University), 5s, 2003 1,060 1,078,455
New York Dormitory Authority Rev. (State University), 4.9s, 2000 500 508,780
New York Medical Care Facilities Finance Agency Rev., 5.9s, 2000 995 1,035,128
New York Urban Development (Correctional Facilities), 5.5s, 2001 375 386,558
New York Urban Development (Correctional Facilities), 5.5s, 2001 1,000 1,030,820
New York Urban Development Corp. Rev., 6s, 2002 1,000 1,055,340
Ohio Building Authority Rev., 5.25s, 2003 400 421,248
State of Utah, Building Ownership Authority, 5.5s, 2000 500 516,150
-----------
$ 8,369,116
- ------------------------------------------------------------------------------------------------
Refunded and Special Obligations - 0.3%
New York City, NY, 6s, 1999 $ 100 $ 102,350
San Antonio, TX, Water Revenue, FGIC, 5.8s, 1999 45 46,188
-----------
$ 148,538
- ------------------------------------------------------------------------------------------------
Airport and Port Revenue - 6.2%
Atlanta, GA, Airport Facilities Rev., AMBAC, 5.5s, 2001 $ 500 $ 519,590
Denver, CO, City & County Airport Rev., 5.5s, 1999 650 661,693
Indianapolis, IN, Airport Authority Rev., FGIC, 5s, 1999 1,000 1,014,690
Metropolitan Nashville, TN, Airport Rev., FGIC, 6.125s, 1999 800 825,232
-----------
$ 3,021,205
- ------------------------------------------------------------------------------------------------
Electric and Gas Utility Revenue - 19.2%
Hillsborough County, FL, Utility Refunding, MBIA, 0s, 1999 $1,000 $ 932,650
Intermountain Power Agency, UT, Power Supply Rev., FSA, 5.25s, 2001 500 517,245
Intermountain Power Agency, UT, Power Supply Rev.,
MBIA, 5.25s, 1999 500 509,725
Intermountain Power Agency, UT, Power Supply Rev.,
MBIA, 5.5s, 1999 2,500 2,558,525
Municipal Electric Authority, GA, MBIA, 5s, 2002 600 617,340
North Carolina Municipal Power, MBIA, 5s, 2001 500 512,120
Sacramento, CA, Municipal Utility District Electric
Rev., FGIC, 6s, 2001 620 658,490
Washington Public Power Supply System Rev., 5s, 2000 1,500 1,527,120
Washington Public Power Supply System Rev., 5.45s, 2000 1,500 1,543,890
-----------
$ 9,377,105
- ------------------------------------------------------------------------------------------------
Health Care Revenue - 3.2%
Denison, TX, Hospital Authority (Texoma Medical Center,
Inc.), 5.25s, 2001 $ 215 $ 218,511
Michigan Hospital Finance Authority Rev. (Mercy Health
Services), 5.5s, 2000 500 516,175
New York Dormitory Authority Rev. (Manhattan Eye, Ear &
Throat Hospital), 4.6s, 2001 500 499,635
Stillwater, OK, Medical Center Authority (Stillwater
Medical Center), 5.55s, 2001 335 340,018
-----------
$ 1,574,339
- ------------------------------------------------------------------------------------------------
Industrial Revenue (Corporate Guarantee) - 0.7%
De Soto Parish, LA, Pollution Control Rev.
(International Paper Co.), 5.05s, 2002 $ 350 $ 359,632
- ------------------------------------------------------------------------------------------------
Insured Health Care Revenue - 5.8%
Delaware County, IN, Hospital Authority (Ball Memorial
Hospital), AMBAC, 6.625s, 2001 $1,600 $ 1,697,008
Illinois Educational Facilities Authority Rev. (Sherman
Health Systems), AMBAC, 5s, 2003 250 256,310
Jackson County, MI, Hospital Finance Authority
(Foote Memorial Hospital), AMBAC, 4.375s, 2002 200 200,608
Spartanburg County, SC, Health Service, MBIA, 4.5s, 2002 675 677,646
-----------
$ 2,831,572
- ------------------------------------------------------------------------------------------------
Multi-Family Housing Revenue - 4.2%
Rhode Island Housing & Mortgage Finance Corp., AMBAC,
5.15s, 2001 $1,000 $ 1,025,690
Rhode Island Housing & Mortgage Finance Corp., AMBAC,
5.25s, 2002 1,000 1,031,590
-----------
$ 2,057,280
- ------------------------------------------------------------------------------------------------
Single Family Housing Revenue - 1.5%
State of Hawaii, Housing Finance & Development Corp.,
4.45s, 2001 $ 750 $ 751,710
- ------------------------------------------------------------------------------------------------
Solid Waste Revenue - 2.1%
Delaware County, PA, Industrial Development Authority
Rev. (Recovery Facilities), 5.5s, 2000 $1,000 $ 1,019,840
- ------------------------------------------------------------------------------------------------
Student Loan Revenue - 2.8%
Alaska Student Loan Corp. Rev., AMBAC, 5s, 2003 $ 400 $ 405,968
Colorado Student Obligation Bond Authority, 6.125s, 1998 155 157,747
Louisiana Public Facilities Authority (Student Loan
Rev.), 6.5s, 2002 770 813,058
-----------
$ 1,376,773
- ------------------------------------------------------------------------------------------------
Turnpike Revenue - 2.1%
New Jersey Transit Corp., FSA, 5s, 2000 $1,000 $ 1,017,900
- ------------------------------------------------------------------------------------------------
Universities - 5.1%
California Educational Facilities Authority Rev.
(College & University), 5.15s, 2000 $ 360 $ 363,625
Citadel Military College, SC, AMBAC, 4.875s, 2002 715 729,836
District of Columbia (Georgetown University), MBIA,
5.5s, 2001 500 518,475
Metropolitan Nashville, TN (Vanderbilt University),
5.25s, 2001 500 511,815
State of New Hampshire, Higher Education & Health
(New Hampshire College), 5.65s, 2003 345 347,712
-----------
$ 2,471,463
- ------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - 2.8%
Philadelphia, PA, Water & Sewer Rev., MBIA, 0s, 2002 $ 500 $ 403,245
San Antonio, TX, Water Revenue, FGIC, 5.8s, 1999 955 979,926
-----------
$ 1,383,171
- ------------------------------------------------------------------------------------------------
Other - 5.2%
Connecticut Special Assessment, AMBAC, 5s, 1999 $1,000 $ 1,019,270
Michigan Underground Storage, AMBAC, 5s, 1999 1,000 1,015,170
State of Minnesota Rev., AMBAC, 5s, 1999 500 508,455
-----------
$ 2,542,895
- ------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $49,643,626) $50,459,641
Other Assets, Less Liabilities - (3.2)% (1,574,233)
- ------------------------------------------------------------------------------------------------
Net assets - 100.0% $48,885,408
- ------------------------------------------------------------------------------------------------
(S)(S) When-issued security. At October 31, 1997, the Fund had sufficient
cash and/or securities at least equal to the value of the when-issued
security.
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (Unaudited)
- --------------------------------------------------------------------------------
OCTOBER 31, 1997
- ------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $49,643,626) $50,459,641
Cash 1,370
Receivable for Fund shares sold 432,067
Receivable for investments sold 949,119
Interest receivable 726,371
Other assets 484
-----------
Total assets $52,569,052
-----------
Liabilities:
Distributions payable $ 50,374
Payable for Fund shares reacquired 67,121
Payable for investments purchased 3,040,953
Payable for when-issued investments purchased 507,335
Payable to affiliates -
Management fee 400
Distribution and service fee 9,531
Accrued expenses and other liabilities 7,930
-----------
Total liabilities $ 3,683,644
-----------
Net assets $48,885,408
===========
Net assets consist of:
Paid-in capital $48,853,472
Unrealized appreciation on investments 816,015
Accumulated net realized loss on investments (813,591)
Accumulated undistributed net investment income 29,512
-----------
Total $48,885,408
===========
Shares of beneficial interest outstanding 6,443,184
=========
Class A shares:
Net asset value per share
(net assets of $39,082,373 / 5,150,232 shares of
beneficial interest outstanding) $7.59
=====
Offering price per share (100 / 97.5) $7.78
=====
Class B shares:
Net asset value and offering price per share
(net assets of $6,861,243 / 905,309 shares of beneficial
interest outstanding) $7.58
=====
Class C shares:
Net asset value and offering price per share
(net assets of $2,941,792 / 387,643 shares of beneficial
interest outstanding) $7.59
=====
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 (Unaudited)
- ----------------------------------------------------------------------------
SIX MONTHS ENDED OCTOBER 31, 1997
- ----------------------------------------------------------------------------
Net investment income:
Interest income $1,178,821
----------
Expenses -
Management fee $ 98,274
Trustees' compensation 6,018
Shareholder servicing agent fee 31,990
Distribution and service fee (Class A) 29,609
Distribution and service fee (Class B) 30,639
Distribution and service fee (Class C) 15,293
Administrative fee 3,691
Registration fee 20,784
Printing 20,373
Custodian fee 10,868
Auditing fees 9,109
Postage 2,884
Legal fees 775
Miscellaneous 7,278
----------
Total expenses $ 287,585
Preliminary reduction of expenses pursuant to
reimbursement agreement (29,099)
Fees paid indirectly (3,568)
----------
Net expenses $ 254,918
----------
Net investment income $ 923,903
----------
Realized and unrealized gain on investments:
Realized gain on investment transactions (identified cost
basis) $ 60,227
Change in unrealized appreciation on investments 529,181
----------
Net realized and unrealized gain on investments $ 589,408
----------
Increase in net assets from operations $1,513,311
==========
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, 1997 YEAR ENDED
(UNAUDITED) APRIL 30, 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment income $ 923,903 $ 2,111,635
Net realized gain on investments 60,227 56,348
Net unrealized gain (loss) on investments 529,181 (260,759)
----------- ------------
Increase in net assets from operations $ 1,513,311 $ 1,907,224
----------- ------------
Distributions declared to shareholders -
From net investment income (Class A) $ (772,928) $ (1,788,875)
From net investment income (Class B) (105,246) (218,897)
From net investment income (Class C) (46,878) (97,816)
----------- ------------
Total distributions declared to shareholders $ (925,052) $ (2,105,588)
----------- ------------
Net decrease in net assets from Fund share transactions $(2,456,435) $(10,197,380)
----------- ------------
Total decrease in net assets $(1,868,176) $(10,395,744)
Net assets:
At beginning of period $50,753,584 $ 61,149,328
----------- ------------
At end of period (including accumulated undistributed net
investment income of $29,512 and $30,661, respectively) $48,885,408 $ 50,753,584
=========== ============
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights
- -------------------------------------------------------------------------------------------------------
YEAR ENDED APRIL 30,
SIX MONTHS ENDED
OCTOBER 31, 1997 ----------------------------------
(UNAUDITED) 1997 1996 1995
- -------------------------------------------------------------------------------------------------------
CLASS A
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 7.50 $ 7.53 $ 7.45 $ 7.47
------ ------ ------ ------
Income from investment operations -
Net investment income(S) $ 0.15 $ 0.29 $ 0.30 $ 0.28
Net realized and unrealized gain (loss) on investments 0.09 (0.03) 0.08 (0.02)
------ ------ ------ ------
Total from investment operations $ 0.24 $ 0.26 $ 0.38 $ 0.26
------ ------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.15) $(0.29) $(0.30) $(0.28)
In excess of net investment income(++) -- -- -- (0.00)
------ ------ ------ ------
Total distributions declared to shareholders $(0.15) $(0.29) $(0.30) $(0.28)
------ ------ ------ ------
Net asset value - end of period $ 7.59 $ 7.50 $ 7.53 $ 7.45
====== ====== ====== ======
Total return(+) 3.22%++ 3.51% 5.11% 3.55%
Ratios (to average net assets)/Supplemental data(S):
Expenses## 0.88%+ 0.95% 0.95% 0.95%
Net investment income 3.91%+ 3.86% 4.00% 3.74%
Portfolio turnover 32% 78% 43% 50%
Net assets at end of period (000 omitted) $39,082 $40,953 $50,387 $64,329
+ Annualized.
++ Not annualized.
## For fiscal years ending after September 1, 1995, the Fund's expenses are calculated without
reduction for fees paid indirectly.
(+) 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.
(++) For the year ended April 30, 1995, the per share distributions in excess of net investment
income was $0.002.
(S) The investment advisor voluntarily agreed to maintain the expenses of the Fund's Class A shares
at not more than 0.95% of average daily net assets. To the extent actual expenses exceeded the
limitation, the net investment income per share and the ratios would have been:
Net investment income $ 0.14 $ 0.29 $ 0.30 $ 0.28
Ratios (to average net assets):
Expenses 0.99%+ 1.02% 0.99% 0.95%
Net investment income 3.80%+ 3.79% 3.96% 3.74%
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights - continued
- -------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
EIGHT MONTHS ENDED -------------------------
APRIL 30, 1994 1993 1992*
- -------------------------------------------------------------------------------------------
CLASS A
- -------------------------------------------------------------------------------------------
Per share data (for a share outstanding throughout each period):
<S> <C> <C> <C>
Net asset value - beginning of period $ 7.72 $ 7.43 $ 7.31
------ ------ ------
Income from investment operations# -
Net investment income(S) $ 0.19 $ 0.31 $ 0.15
Net realized and unrealized gain (loss) on
investments (0.22) 0.30 0.12
------ ------ ------
Total from investment operations $(0.03) $ 0.61 $ 0.27
------ ------ ------
Less distributions declared to shareholders -
From net investment income(+++) $(0.19) $(0.31) $(0.15)
From net realized gain on investments -- (0.01) --
In excess of net investment income(++) (0.00) -- --
In excess of net realized gain on
investments (0.03) -- --
------ ------ ------
Total distributions declared to
shareholders $(0.22) $(0.32) $(0.15)
------ ------ ------
Net asset value - end of period $ 7.47 $ 7.72 $ 7.43
====== ====== ======
Total return(+) (0.59)%+ 8.47% 8.26%+
Ratios (to average net
assets)/Supplemental data(S):
Expenses 0.89%+ 0.68% 0.55%+
Net investment income 3.72%+ 4.04% 4.25%+
Portfolio turnover 48% 69% 8%
Net assets at end of period (000 omitted) $83,367 $87,192 $21,312
* For the period from the commencement of the Fund's offering of Class A shares, March 17,
1992, through August 31, 1992.
+ Annualized.
# Per share data for the periods subsequent to April 30, 1994, are based on average shares
outstanding.
(+) 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.
(++) For the eight months ended April 30, 1994, the per share distributions in excess of net
investment income was $0.002.
(+++) For the period ended August 31, 1992, the per share distributions from net investment
income includes a per share distribution from paid-in capital of $0.0007.
(S) The investment advisor voluntarily agreed to maintain the expenses of the Fund at not
more than 0.95% of average daily net assets. To the extent actual expenses exceeded the
limitation, the net investment income per share and the ratios would have been:
Net investment income $ 0.18 $ 0.28 $ 0.13
Ratios (to average net assets):
Expenses 1.12%+ 1.16% 1.16%+
Net investment income 3.49%+ 3.57% 3.64%+
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights - continued
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED APRIL 30,
OCTOBER 31, 1997 --------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994**
- -----------------------------------------------------------------------------------------------------------------------
CLASS B
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 7.49 $ 7.52 $ 7.44 $ 7.46 $ 7.75
------ ------ ------ ------ ------
Income from investment operations# -
Net investment income(S) $ 0.12 $ 0.23 $ 0.25 $ 0.21 $ 0.14
Net realized and unrealized gain (loss)
on investments 0.09 (0.03) 0.07 (0.02) (0.26)
------ ------ ------ ------ ------
Total from investment operations $ 0.21 $ 0.20 $ 0.32 $ 0.19 $(0.12)
------ ------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $(0.12) $(0.23) $(0.24) $(0.21) $(0.13)
In excess of net investment income(++) -- -- -- (0.00) (0.01)
In excess of net realized gain on investments
-- -- -- -- (0.03)
------ ------ ------ ------ ------
Total distributions declared to shareholders
$(0.12) $(0.23) $(0.24) $(0.21) $(0.17)
------ ------ ------ ------ ------
Net asset value - end of period $ 7.58 $ 7.49 $ 7.52 $ 7.44 $ 7.46
====== ====== ====== ====== ======
Total return 2.82%++ 2.71% 4.34% 2.67% (2.37)%+
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.65%+ 1.73% 1.70% 1.80% 1.74%+
Net investment income 3.14%+ 3.08% 3.25% 2.88% 2.79%+
Portfolio turnover 32% 78% 43% 50% 48%
Net assets at end of period (000 omitted) $6,861 $6,503 $7,749 $7,792 $7,415
** For the period from the commencement of the Fund's offering of Class B shares, September 7, 1993, through April
30, 1994.
+ Annualized.
++ Not annualized.
# Per share data for the periods subsequent to April 30, 1994, are based on average shares outstanding.
## For fiscal years ending after September 1, 1995, the Fund's expenses are calculated without reduction for fees
paid indirectly.
(++) For the year ended April 30, 1995, the per share distributions in excess of net investment income was $0.001.
(S) The investment advisor voluntarily agreed to maintain the expenses of the Fund's Class B shares at not more than
1.80% of average daily net assets. To the extent actual expenses were over the limitations, the net investment
income per share and the ratios would have been:
Net investment income $ 0.12 $ 0.23 $ 0.25 $ 0.21 $ 0.12
Ratios (to average net assets):
Expenses 1.76%+ 1.80% 1.74% 1.80% 2.05%+
Net investment income 3.03%+ 3.01% 3.21% 2.88% 2.48%+
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Financial Highlights - continued
- --------------------------------------------------------------------------------------------------------
YEAR ENDED APRIL 30,
SIX MONTHS ENDED
OCTOBER 31, 1997 ------------------------------------
(UNAUDITED) 1997 1996 1995***
- --------------------------------------------------------------------------------------------------------
CLASS C
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 7.50 $ 7.53 $ 7.45 $ 7.45
------ ------ ------ ------
Income from investment operations# -
Net investment income(S) $ 0.12 $ 0.23 $ 0.23 $ 0.21
Net realized and unrealized
gain (loss) on investments 0.09 (0.03) 0.08 (0.02)
------ ------ ------ ------
Total from investment operations $ 0.21 $ 0.20 $ 0.31 $ 0.19
------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $(0.12) $(0.23) $(0.23) $(0.19)
In excess of net investment income(++) -- -- -- (0.00)
------ ------ ------ ------
Total distributions declared to shareholders $(0.12) $(0.23) $(0.23) $(0.19)
------ ------ ------ ------
Net asset value - end of period $ 7.59 $ 7.50 $ 7.53 $ 7.45
====== ====== ====== ======
Total return 2.77%++ 2.64% 4.23% 2.53%+
Ratios (to average net assets)/Supplemental data(S):
Expenses## 1.73%+ 1.80% 1.80% 1.79%+
Net investment income 3.06%+ 3.03% 3.16% 2.77%+
Portfolio turnover 32% 78% 43% 50%
Net assets at end of period (000 omitted) $2,942 $3,297 $3,013 $1,934
*** For the period from the commencement of the Fund's offering of Class C shares, July 1, 1994,
through April 30, 1995.
+ Annualized.
++ Not annualized.
# Per share data for the periods subsequent to April 30, 1994, are based on average shares
outstanding.
## For fiscal years ending after September 1, 1995, the Fund's expenses are calculated without
reduction for fees paid indirectly.
(++) For the year ended April 30, 1995, the per share distributions in excess of net investment income
was $0.001.
(S) The investment advisor voluntarily agreed to maintain the expenses of the Fund's Class C shares at
not more than 1.80% of average daily net assets. To the extent actual expenses were over the
limitations, the net investment income per share and the ratios would have been:
Net investment income $ 0.11 $ 0.22 $ 0.23 $ 0.21
Ratios (to average net assets):
Expenses 1.84%+ 1.87% 1.84% 1.79%+
Net investment income 2.95%+ 2.96% 3.12% 2.77%+
See notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(1) Business and Organization
MFS Municipal 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. 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.
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.
Fees Paid Indirectly - The Fund's custody fee is calculated as a percentage of
the Fund's average daily net assets. The fee is reduced according to a fee
arrangement which measures the value of cash deposited with the custodian by the
Fund. 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 net 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 paid by the
Fund from net interest received on tax-exempt municipal bonds are not includable
by shareholders as gross income for federal income tax purposes because the Fund
intends to meet certain requirements of the Code applicable to regulated
investment companies, which will enable the Fund to pay exempt-interest
dividends. The portion of such interest, if any, earned on private activity
bonds issued after August 7, 1986, may be considered a tax-preference item to
shareholders. 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. At April 30, 1997, the Fund, for federal income tax purposes, had a
capital loss carryforward of $873,818, which may be applied against any net
taxable realized gains in each succeeding year until the earlier of its
utilization or expiration on April 30, 2003, ($798,921), April 30, 2004,
($32,070), and April 30, 2005, ($42,827).
Multiple Classes of Shares of Beneficial Interest - The Fund offers multiple
classes of shares. The three classes of shares differ in their respective
distribution and service fees. All shareholders bear the common expenses of the
Fund pro rata based on settled shares outstanding 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
the Fund's average daily net assets. The investment advisor has voluntarily
agreed to waive a portion of its fee, which is reflected as a preliminary
reduction of expenses in the Statement of Operations.
The Fund has a temporary expense reimbursement agreement, whereby MFS has
voluntarily agreed to pay all of the Fund's operating expenses, exclusive of
management, distribution, and service fees. The Fund in turn will 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 to MFS in prior years. At
October 31, 1997, the aggregate unreimbursed expenses owed to MFS by the Fund
amounted to $204,433 including $12,516 incurred in the current period.
Administrator - Effective March 1, 1997, the Fund has an administrative services
agreement with MFS to provide the Fund with certain financial, legal,
shareholder servicing, compliance, and other administrative services. As a
partial reimbursement for the cost of providing these services, the Fund pays
MFS an administrative fee at the following annual percentages of the Fund's
average daily net assets, provided that the administrative fee is not assessed
on Fund assets that exceed $3 billion:
First $1 billion 0.0150%
Next $1 billion 0.0125%
Next $1 billion 0.0100%
In excess of $3 billion 0.0000%
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 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 and Mr. Bailey. Included in Trustees'
compensation is a net periodic pension expense of $1,673 for the period ended
October 31, 1997.
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$2,885 for the period ended October 31, 1997, as its portion of the sales charge
on sales of Class A shares of the Fund. The Trustees have adopted a distribution
plan for Class A, Class B, and Class C shares pursuant to Rule 12b-1 of the
Investment Company Act of 1940 as follows:
The Fund's 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 $6,830 for the period ended October 31,
1997. Payment of the 0.10% per annum Class A distribution fee will commence on
such date as the Trustees of the Trust may determine. Fees incurred under the
distribution plan during the period ended October 31, 1997, were 0.15% of the
average daily net assets attributable to Class A shares on an annualized basis.
The Fund's 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 and Class C shares. The
service fee is currently being reduced to 0.15% on Class B shares held over a
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 $789 and $54 for Class B and Class C
shares, respectively, for the period ended October 31, 1997. Fees incurred under
the distribution plan during the period ended October 31, 1997, were 0.92% and
1.00% of the Fund's average daily net assets attributable to Class B and Class C
shares, respectively, on an annualized basis.
Purchases over $1 million of Class A shares are subject to a contingent deferred
sales charge in the event of a shareholder redemption within 12 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
redemptions within 12 months of purchases made on or after April 1, 1996. MFD
receives all contingent deferred sales charges. Contingent deferred sales
charges imposed during the period ended October 31, 1997, were $0, $16,006, 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 Fund's average daily net assets at an effective annual rate of
0.13%. (4) Portfolio Securities Purchases and sales of investments, other than
U.S. government securities, purchased option transactions, and short-term
obligations aggregated $16,482,501 and $15,582,042, 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 $49,643,626
-----------
Gross unrealized appreciation $ 818,017
Gross unrealized depreciation (2,002)
-----------
Net unrealized appreciation $ 816,015
===========
(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 OCTOBER 31, 1997 YEAR ENDED APRIL 30, 1997
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,121,206 $ 8,485,309 1,574,476 $ 11,862,568
Shares issued to shareholders in
reinvestment of distributions 67,465 510,579 160,862 1,211,040
Shares reacquired (1,500,426) (11,341,867) (2,966,712) (22,348,637)
---------- ------------ ---------- ------------
Net decrease (311,755) $ (2,345,979) (1,231,374) $ (9,275,029)
========== ============ ========== ============
<CAPTION>
Class B Shares
SIX MONTHS ENDED OCTOBER 31, 1997 YEAR ENDED APRIL 30, 1997
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 141,959 $ 1,074,160 222,124 $ 1,670,226
Shares issued to shareholders in
reinvestment of distributions 7,534 56,950 15,642 117,619
Shares reacquired (112,652) (848,809) (399,994) (3,007,251)
-------- ----------- --------- ------------
Net increase (decrease) 36,841 $ 282,301 (162,228) $ (1,219,406)
======== =========== ========= ============
<CAPTION>
Class C Shares
SIX MONTHS ENDED OCTOBER 31, 1997 YEAR ENDED APRIL 30, 1997
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 62,762 $ 474,314 199,462 $ 1,502,376
Shares issued to shareholders in
reinvestment of distributions 5,819 44,036 12,406 93,436
Shares reacquired (120,626) (911,107) (172,386) (1,298,757)
-------- ----------- -------- -----------
Net increase (decrease) (52,045) $ (392,757) 39,482 $ 297,055
======== =========== ======== ===========
</TABLE>
(6) Line of Credit
The Fund and other affiliated funds participate in a $400 million unsecured line
of credit provided by a syndication of banks under a line of credit agreement.
Borrowings may be made to temporarily finance the repurchase of Fund shares.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the bank's base rate. In addition, a commitment fee, based on the average daily
unused portion of the line of credit, is allocated among the participating funds
at the end of each quarter. The commitment fee allocated to the Fund for the
period ended October 31, 1997, was $118.
--------------------------------------------
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) MUNICIPAL LIMITED MATURITY FUND
<TABLE>
<CAPTION>
<S> <C>
Trustees Assistant Secretary
A. Keith Brodkin* - Chairman and President James R. Bordewick, Jr.*
Richard B. Bailey* - Private Investor; Custodian
Former Chairman and Director (until 1991), State Street Bank and Trust Company
Massachusetts Financial Services Company;
Director, Cambridge Bancorp; Director, Investor Information
Cambridge Trust Company For MFS stock and bond market outlooks, call
toll free: 1-800-637-4458 anytime from a
Peter G. Harwood - Private Investor touch-tone telephone.
J. Atwood Ives - Chairman and Chief Executive For information on MFS mutual funds, call
Officer, Eastern Enterprises your financial adviser or, for an information
kit, call toll free: 1-800-637-2929 any
Lawrence T. Perera - Partner, Hemenway business day from 9 a.m. to 5 p.m. Eastern
& Barnes time (or leave a message anytime).
William J. Poorvu - Adjunct Professor, Investor Service
Harvard University Graduate School of MFS Service Center, Inc.
Business Administration P.O. Box 2281
Boston, MA 02107-9906
Charles W.Schmidt - Private Investor
For general information, call toll free:
Arnold D. Scott* - Senior Executive Vice 1-800-225-2606 any business day from
President, Director and Secretary, 8 a.m. to 8 p.m. Eastern time.
Massachusetts Financial Services Company
For service to speech- or hearing-impaired,
Jeffrey L. Shames* - President and Director, call toll free: 1-800-637-6576 any business
Massachusetts Financial Services Company day from 9 a.m. to 5 p.m. Eastern time. (To
use this service, your phone must be equipped
Elaine R. Smith - Independent Consultant with a Telecommunications Device for the
David B. Stone - Chairman, North American Deaf.)
Management Corp. (investment advisers)
For share prices, account balances, and
Investment Adviser exchanges, call toll free: 1-800-MFS-TALK
Massachusetts Financial Services Company (1-800-637-8255) anytime from a touch-tone
500 Boylston Street telephone.
Boston, MA 02116-3741
World Wide Web
Distributor www.mfs.com
MFS Fund Distributors, Inc.
500 Boylston Street
Boston, MA 02116-3741 [Dalbar Logo] For the fourth year in a
row, MFS earned a #1
Portfolio Manager ranking in the DALBAR, Inc. Broker/Dealer
Robert A. Dennis* Survey, Main Office Operations Service
Quality Category. The firm achieved a 3.42
Treasurer overall score on a scale of 1 to 4 in the
W. Thomas London* 1997 survey. A total of 111 firms responded,
offering input on the quality of service they
Assistant Treasurers received from 29 mutual fund companies
Mark E. Bradley* nationwide. The survey contained questions
Ellen Moynihan* about service quality in 11 categories,
James O. Yost* including "knowledge of operations contact,"
"keeping you informed," and "ease of doing
Secretary business" with the firm.
Stephen E. Cavan*
*Affiliated with the Investment Adviser
</TABLE>
<PAGE>
-------------
MFS(R) MUNICIPAL LIMITED BULK RATE
MATURITY FUND U.S. POSTAGE
PAID
MFS
-------------
500 Boylston Street
Boston, MA 02116-3741
[LOGO] M F S(SM)
INVESTMENT MANAGEMENT
We invented the mutual fund(SM)
[DALBAR
LOGO]
TOP-RATED SERVICE
(c)1997 MFS Fund Distributors, Inc.,
500 Boylston Street, Boston, MA 02116-3741
MML-3 12/97 10M 37/237/337
