<PAGE>
[LOGO] M F S(SM) Semiannual Report
INVESTMENT MANAGEMENT May 31, 1997
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MASSACHUSETTS INVESTORS GROWTH STOCK FUND
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[GRAPHIC OMITTED]
<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 .................................................... 6
Portfolio of Investments ................................................... 7
Financial Statements .......................................................12
Notes to Financial Statements ..............................................19
The MFS Family of Funds(R) .................................................24
Trustees and Officers ......................................................25
HIGHLIGHTS
o FOR THE SIX MONTHS ENDED MAY 31, 1997, CLASS A SHARES OF THE FUND PROVIDED
A TOTAL RETURN AT NET ASSET VALUE OF 16.53%, CLASS B SHARES 15.97%, AND
CLASS I SHARES 16.63%.
o PERFORMANCE HAS BEEN DRIVEN BY CONTINUED STRENGTH IN THE FUND'S CORE
HOLDINGS IN TECHNOLOGY, FINANCIAL SERVICES, AND MEDIA STOCKS, WHICH HAVE
BENEFITED FROM STEADY, NONINFLATIONARY ECONOMIC GROWTH, STABLE INTEREST
RATES, AND A STRONG U.S. CURRENCY.
o TECHNOLOGY COMPANIES WITH GLOBAL FRANCHISES HAVE BEEN ABLE TO OUTPERFORM
ALMOST ALL OTHER COMPANIES IN TERMS OF EARNINGS GROWTH AND RETURN ON
EQUITY, AND FIRMS SUCH AS MICROSOFT, ORACLE, AND BMC SOFTWARE HAVE
CONSISTENTLY EXCEEDED EXPECTATIONS.
o IN THE FINANCIAL SERVICES AREA, COMPANIES WITH GLOBAL FRANCHISES, SUCH AS
AMERICAN EXPRESS AND CITICORP, CONTINUE TO BE A FOCUS OF THE FUND.
<PAGE>
LETTER FROM THE CHAIRMAN
[Photo of A. Keith Brodkin]
Dear Shareholders:
After more than six years of expansion, the U.S. economy is experiencing another
year of growth in 1997, although a few signs point to the possibility of a
modest rise in inflation during the year. On the positive side, the pattern of
moderate growth and inflation set over the past few years now seems fairly well
entrenched in the economy and, short of a major international or domestic
crisis, appears to have enough momentum to remain on track for some time. The
U.S. economy exhibited a great deal of strength in the first quarter of 1997,
growing at an annualized rate of 5.8%. This pace could clearly lead to
inflationary pressures were it to continue, as could the ongoing tightness in
the labor market. Moreover, there is reason for caution as a result of the
continuing high level of consumer debt and rising personal bankruptcies. Given
these somewhat conflicting indicators, we expect real (inflation-adjusted)
growth to revolve around 2% to 2 1/2% in 1997, with the strength of the first
quarter moderating as we move through the balance of the year.
We continue to urge U.S. equity investors to remain cautious for 1997. Just as
the slowdown in corporate earnings growth and the increases in interest rates in
1996 raised some near-term concerns, further interest-rate increases and the
fear of an acceleration of inflation have added some volatility to the stock
market in 1997. However, while the U.S. equity market enjoyed several years
without a major correction, we would like to point out that such downturns are a
natural part of the investment environment and, when they end, they often result
in more attractive valuations for stocks.
We appreciate your support and welcome any questions or comments you may have.
Respectfully,
/s/ A. Keith Brodkin
A. Keith Brodkin
Chairman and President
June 12, 1997
<PAGE>
PORTFOLIO MANAGER'S OVERVIEW
[Photo of Christian Felipe
Christian Felipe
Dear Shareholders:
For the six months ended May 31, 1997, Class A shares of the Fund provided a
total return of 16.53%, Class B shares 15.97%, and Class I shares 16.63%. These
returns, which include the reinvestment of distributions but exclude the effects
of any sales charges, compare to a 13.18% return for the Standard & Poor's 500
Composite Index (the S&P 500), a popular, unmanaged index of common stock total
return performance.
Performance for the past six months has been driven by continued strength in
the Fund's core holdings in technology, financial services, and media stocks. We
believe the backdrop for these positions could not be more ideal, as the U.S.
economy has shown steady, noninflationary growth that has led to stable interest
rates and a strong U.S. currency.
In this environment, technology companies with global franchises have been
able to outperform almost all other companies in terms of earnings growth and
return on equity. Firms such as Microsoft, Oracle, and BMC Software have
consistently exceeded expectations and have contributed meaningfully to the
Fund's performance.
Over the past six months, we have expanded the Fund's universe of technology
holdings to include a group of Japanese technology leaders that are benefiting
from the analog-to-digital movement, a trend that is occurring faster than
expected. For example, digital cameras and digital-video discs are selling at a
rapid rate. Japanese companies such as Sony and Canon are leading the charge in
this field and, with a weak yen as a backdrop, these stocks are adding to the
Fund's performance.
In the financial services area, global franchises are again a focus of the
Fund. In the United States, American Express and Citicorp are leaders in their
respective fields, although their major growth opportunities lie elsewhere,
particularly in the rapidly growing Pacific Rim. Credit cards are gaining
increasing importance in all parts of the world, and these firms are positioned
to exploit these opportunities.
The consolidation in the media sector continues, particularly in the radio
market. The 1996 Telecommunications Act has allowed radio companies to own as
many as eight stations in an individual market. Firms such as Clear Channel,
American Radio, and Jacor Communications are forming media clusters across the
country, and the increased pricing power that this consolidation has created has
improved the results for these companies.
Looking ahead, while the environment for financial assets is favorable,
valuations for most stocks are quite high and maintaining returns at their
historical level may be difficult. Nonetheless, we will continue to search
worldwide for attractive franchises and invest in them when we believe
valuations are reasonable.
Respectfully,
/s/ Christian Felipe
Christian Felipe
Portfolio Manager
PORTFOLIO MANAGER'S PROFILE
CHRISTIAN FELIPE JOINED MFS IN 1986. A GRADUATE OF U.C.L.A. AND THE
UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL OF FINANCE AND COMMERCE, HE WAS
NAMED INVESTMENT OFFICER IN 1987, ASSISTANT VICE PRESIDENT INVESTMENTS IN
1988, VICE PRESIDENT - INVESTMENTS IN 1989, AND SENIOR VICE PRESIDENT IN
1996. HE HAS MANAGED MASSACHUSETTS INVESTORS GROWTH STOCK FUND SINCE 1995.
<PAGE>
FUND FACTS
STRATEGY: THE INVESTMENT OBJECTIVE OF THE FUND IS TO
PROVIDE LONG-TERM GROWTH OF CAPITAL AND
FUTURE INCOME RATHER THAN CURRENT INCOME.
COMMENCEMENT OF
INVESTMENT OPERATIONS: CLASS A: JANUARY 1, 1935
CLASS B: SEPTEMBER 7, 1993
CLASS I: JANUARY 2, 1997
SIZE: $1.5 BILLION NET ASSETS AS OF MAY 31, 1997
PERFORMANCE SUMMARY
Because mutual funds like Massachusetts Investors Growth Stock 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 I shares for
the applicable time periods.
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN
AS OF MAY 31, 1997
<TABLE>
<CAPTION>
CLASS A INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return +16.53% +27.02% +124.73% +261.08%
- ------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return -- +27.02% + 17.58% + 13.70%
- ------------------------------------------------------------------------------------------------------------------------
SEC Results -- +19.74% + 16.19% + 13.03%
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<CAPTION>
CLASS B INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return +15.97% +25.95% +117.84% +250.12%
- ------------------------------------------------------------------------------------------------------------------------
Average Annual Total Return -- +25.95% + 16.85% + 13.35%
- ------------------------------------------------------------------------------------------------------------------------
SEC Results -- +22.10% + 16.63% + 13.35%
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS I INVESTMENT RESULTS
(net asset value change including reinvested distributions)
6 Months 1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return +16.63% +27.13% +124.83% +261.40%
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Average Annual Total Return -- +27.13% + 17.59% + 13.71%
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</TABLE>
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 maximum 5.75% 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 I
shares, which became available on January 2, 1997, have no sales charge or Rule
12b-1 fees and are only available to certain institutional investors.
Class B 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
commencement of offering of Class B shares. Because operating expenses
attributable to Class A shares are lower than those of Class B shares, Class B
share performance generally would have been lower than Class A share
performance. The Class A share performance included within the Class B share SEC
performance has been adjusted to reflect the CDSC generally applicable to Class
B shares rather than the sales charge generally applicable to Class A shares.
Class I 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
commencement of offering of Class I shares. Because operating expenses
attributable to Class A shares are greater than those of Class I shares, Class I
share performance generally would have been higher than Class A share
performance. The Class A share performance included in the Class I share
performance has been adjusted to reflect the fact that Class I shares have no
initial sales charge.
Performance results reflect any applicable expense subsidies and waivers,
without which the results would have been less favorable. Current subsidies and
waivers may be discontinued at any time.
PORTFOLIO CONCENTRATION AS OF MAY 31, 1997
TOP 10 HOLDINGS
MICROSOFT CORP. MCI COMMUNICATIONS CORP.
Computer software and systems company Telecommunications company
FRANKLIN RESOURCES, INC. CISCO SYSTEMS, INC.
Mutual fund and financial services company Computer network developer
COMPUTER ASSOCIATES INTERNATIONAL, INC. RITE AID CORP.
Computer software company U.S. drugstore chain
ORACLE SYSTEMS CORP. CADENCE DESIGN SYSTEMS, INC.
Developer and manufacturer of Computer software and systems
database software company
LUCENT TECHNOLOGIES, INC. CVS CORP.
Telecommunications and micro-electronics U.S. drugstore chain
company
LARGEST SECTORS
Technology 35.8%
Leisure 16.1%
Financial Services 14.1%
Retail 9.6%
Miscellaneous (Conglomerates, special products/services) 8.6%
Other Sectors 15.8%
For a more complete breakdown, refer to the Portfolio of Investments.
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) - May 31, 1997
Stocks - 94.3%
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Issuer Shares Value
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U.S. Stocks - 91.2%
Aerospace - 0.3%
Gulfstream Aerospace Corp.* 125,000 $ 3,671,875
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Banks and Credit Companies - 2.0%
Chase Manhattan Corp. 75,000 $ 7,087,500
Citicorp 85,000 9,721,875
Norwest Corp. 250,000 13,375,000
--------------
$ 30,184,375
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Building - 0.3%
Newport News Shipbuilding, Inc. 250,000 $ 4,156,250
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Business Machines - 2.0%
Affiliated Computer Services, Inc.* 145,000 $ 3,842,500
Sun Microsystems, Inc.* 825,000 26,606,250
--------------
$ 30,448,750
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Business Services - 4.5%
AccuStaff, Inc.* 228,700 $ 5,488,800
ADT Ltd.* 710,000 20,678,750
Canon, Inc. 30,000 3,806,250
Computer Sciences Corp.* 165,000 12,766,875
CUC International, Inc.* 408,700 9,400,100
DST Systems, Inc.* 115,000 3,536,250
Ikon Office Solutions, Inc. 25,000 725,000
Interim Services, Inc.* 180,000 7,020,000
Sabre Group Holding, Inc.* 150,000 4,181,250
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$ 67,603,275
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Cellular Telephones - 0.5%
AirTouch Communications, Inc.* 100,000 $ 2,787,500
Telephone & Data Systems, Inc. 125,000 4,851,563
--------------
$ 7,639,063
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Computer Software - Personal Computers - 8.5%
First Data Corp. 360,000 $ 14,400,000
Microsoft Corp.* 900,000 111,600,000
--------------
$ 126,000,000
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Computer Software - Systems - 14.6%
Adobe Systems, Inc. 9,400 $ 419,475
BMC Software, Inc.* 528,500 28,605,062
Cadence Design Systems, Inc.* 905,000 30,091,250
Computer Associates International, Inc. 1,195,000 65,426,250
Compuware Corp.* 220,000 10,202,500
Oracle Systems Corp.* 1,380,000 64,342,500
Sybase, Inc.* 470,000 7,490,625
Synopsys, Inc.* 135,000 5,045,625
USCS International, Inc.* 250,000 5,718,750
Xionics Document Technologies* 50,000 693,750
--------------
$ 218,035,787
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Consumer Goods and Services - 1.6%
Hertz Corp., "A"* 14,100 $ 482,925
Service Corp. International 45,000 1,586,250
Tyco International Ltd. 350,000 22,225,000
--------------
$ 24,294,175
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Containers - 0.1%
Corning, Inc. 35,000 $ 1,763,125
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Electrical Equipment - 0.9%
General Electric Co. 155,000 $ 9,358,125
Westinghouse Electric Corp. 200,001 4,050,020
--------------
$ 13,408,145
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Electronics - 2.5%
Atmel Corp.* 150,000 $ 4,312,500
Intel Corp. 160,000 24,240,000
Sony Corp. 105,000 8,951,250
--------------
$ 37,503,750
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Entertainment - 7.8%
American Radio Systems Corp., "A"* 100,000 $ 3,725,000
Argyle Television, Inc.* 100,000 2,337,500
Clear Channel Communications, Inc.* 545,000 28,816,875
Cox Radio, Inc.* 175,000 3,915,625
Disney (Walt) Co. 25,000 2,046,875
Harrah's Entertainment, Inc.* 1,300,000 24,212,500
Jacor Communications, Inc., "A"* 250,000 8,625,000
LIN Television Corp.* 446,600 19,371,275
Mirage Resorts, Inc.* 250,000 5,968,750
Time Warner, Inc. 237,500 11,043,750
Univision Communications, Inc.,"A"* 150,000 5,400,000
--------------
$ 115,463,150
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Financial Institutions - 10.0%
American Express Co. 300,000 $ 20,850,000
AmeriTrade Holding Corp.* 15,000 210,000
Associates First Capital Corp. 400,000 18,900,000
BA Merchants Services, Inc.* 75,000 1,228,125
Federal National Mortgage Association 300,000 13,087,500
Franklin Resources, Inc. 1,300,000 84,175,000
Merrill Lynch & Co., Inc. 70,000 7,420,000
State Street Corp.* 50,000 2,231,250
--------------
$ 148,101,875
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Food and Beverage Products - 0.8%
PepsiCo, Inc. 325,000 $ 11,943,750
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Forest and Paper Products - 0.3%
Kimberly-Clark Corp. 100,000 $ 5,012,500
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Insurance - 1.4%
Equitable of Iowa Cos. 305,000 $ 16,889,375
Hartford Financial Services Group 50,000 3,900,000
Hartford Life, Inc.* 13,600 455,600
--------------
$ 21,244,975
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Medical and Health Products - 2.9%
Bristol-Myers Squibb Co. 260,000 $ 19,077,500
Johnson & Johnson 140,000 8,382,500
Pfizer, Inc. 35,000 3,600,625
Schering Plough Corp. 135,000 12,251,250
--------------
$ 43,311,875
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Medical and Health Technology and Services - 4.6%
Cardinal Health, Inc. 50,000 $ 2,912,500
Columbia/HCA Healthcare Corp. 250,000 9,156,250
Genesis Health Ventures, Inc.* 140,000 4,602,500
Health Management Associates, Inc., "A"* 100,000 2,925,000
HealthSouth Corp.* 325,000 7,434,375
Medtronic Inc. 35,000 2,590,000
Pacificare Health Systems, Inc., "B"* 65,000 5,151,250
St. Jude Medical, Inc.* 95,000 3,218,125
United Healthcare Corp. 375,000 21,187,500
Vivra, Inc.* 250,000 8,843,750
--------------
$ 68,021,250
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Pollution Control - 0.7%
USA Waste Services, Inc.* 115,000 $ 4,168,750
Waste Management, Inc.* 200,000 6,350,000
--------------
$ 10,518,750
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Printing and Publishing - 2.3%
Gannett Co., Inc. 270,000 $ 24,975,000
Journal Register Co.* 70,000 1,058,750
Tribune Co. 200,000 8,650,000
--------------
$ 34,683,750
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Restaurants and Lodging - 4.8%
HFS, Inc.* 500,000 $ 26,937,500
Hilton Hotels Corp. 380,000 10,735,000
Marriot International, Inc. 135,000 7,796,250
Outback Steakhouse, Inc.* 30,000 697,500
Promus Hotel Corp.* 696,600 25,164,675
--------------
$ 71,330,925
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Stores - 8.4%
AutoZone, Inc.* 140,000 $ 3,272,500
CVS Corp. 625,000 29,921,875
General Nutrition Cos., Inc.* 185,000 4,301,250
Gymboree Corp.* 55,000 1,375,000
Home Depot, Inc. 460,000 $ 28,980,000
Micro Warehouse, Inc.* 215,000 3,708,750
Office Depot, Inc.* 1,250,000 21,562,500
PetSmart, Inc.* 60,400 739,900
Rite Aid Corp. 650,000 30,225,000
Sunglass Hut International, Inc.* 50,000 339,063
--------------
$ 124,425,838
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Supermarkets - 0.8%
Safeway, Inc.* 250,000 $ 11,250,000
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Telecommunications - 5.6%
Aspect Telecommunications Corp.* 27,500 $ 618,750
Cabletron Systems, Inc.* 320,000 14,080,000
Cellular Communications International* 115,000 3,061,875
Cisco Systems, Inc.* 450,000 30,487,500
Lucent Technologies, Inc. 555,000 35,311,875
--------------
$ 83,560,000
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Utilities - Telephone - 3.0%
MCI Communications Corp. 875,000 $ 33,578,125
Sprint Corp. 225,000 10,996,875
--------------
$ 44,575,000
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Total U.S. Stocks $1,358,152,208
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Foreign Stocks - 3.1%
Canada - 0.2%
Loewen Group, Inc. (Business Services) 70,000 $ 2,310,000
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Germany - 0.4%
Sap AG (Computer Software - Systems) 12,500 $ 2,233,949
Sap Aktiengesellschaft, ADR
(Computer Software - Systems) 50,000 3,012,500
--------------
$ 5,246,449
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Japan - 1.7%
Canon, Inc. (Consumer Goods) 368,000 $ 9,338,495
Sony Corp. (Electronics) 150,000 12,658,065
TDK Corp. (Special Products and Services) 50,000 3,845,161
--------------
$ 25,841,721
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Switzerland - 0.5%
Novartis AG (Pharmaceuticals) 6,000 $ 8,155,752
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United Kingdom - 0.3%
Danka Business Systems, ADR (Business Services) 125,000 $ 5,015,625
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Total Foreign Stocks $ 46,569,547
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Total Stocks (Identified Cost, $1,040,947,309) $1,404,721,755
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Convertible Preferred Stock - 0.4%
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Entertainment
American Radio Systems Corp., 7s##*
(Identified Cost $4,966,400) 100,000 $ 5,400,000
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Principal Amount
Short-Term Obligations - 4.1% (000 Omitted)
- -------------------------------------------------------------------------------
Carolina Power & Light Co., due 06/23/97 $ 6,000 $ 5,979,870
Federal Farm Credit Bank, due 06/04/97 5,225 5,222,653
Federal Home Loan Mortgage Corp., due 06/09/97 8,000 7,990,355
Federal Home Loan Mortgage Corp., due 06/20/97 585 583,373
Federal National Mortgage Assn., due 06/03/97 6,000 5,998,188
Federal National Mortgage Assn., due 06/19/97 11,545 11,513,425
Federal National Mortgage Assn., due 06/25/97 6,500 6,476,687
Federal National Mortgage Assn., due 06/27/97 5,000 4,980,572
General Electric Capital Corp., due 06/02/97 7,975 7,973,759
General Electric Capital Corp., due 06/13/97 4,575 4,566,613
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Total Short-Term Obligations, at Amortized Cost $ 61,285,495
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Total Investments (Identified Cost, $1,107,199,204) $1,471,407,250
Other Assets, Less Liabilities - 1.2% 17,164,032
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Net Assets - 100.0% $1,488,571,282
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* Non-income producing security.
## SEC Rule 144A restriction.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (Unaudited)
- -------------------------------------------------------------------------------
May 31, 1997
- -------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $1,107,199,204) $1,471,407,250
Cash 69,454
Receivable for investments sold 30,305,588
Receivable for Fund shares sold 6,032,926
Dividends and interest receivable 448,242
Other assets 11,137
--------------
Total assets $1,508,274,597
--------------
Liabilities:
Payable for investments purchased $ 18,077,379
Payable for Fund shares reacquired 844,767
Payable to affiliates -
Management fee 22,795
Administrative fee 1,156
Shareholder servicing agent fee 10,550
Distribution and service fee 502,450
Accrued expenses and other liabilities 244,218
--------------
Total liabilities $ 19,703,315
--------------
Net assets $1,488,571,282
==============
Net assets consist of:
Paid-in capital $ 963,869,657
Unrealized appreciation on investments and translation
of assets and liabilities in foreign currencies 364,211,373
Accumulated undistributed net realized gain on
investments and foreign currency transactions 160,702,110
Accumulated net investment loss (211,858)
--------------
Total $1,488,571,282
==============
Shares of beneficial interest outstanding 124,537,950
===========
Class A shares:
Net asset value per share
(net assets of $1,435,713,214 / 120,019,827 shares
of beneficial interest outstanding) $11.97
======
Offering price per share (100 / 94.25) $12.70
======
Class B shares:
Net asset value and offering price per share
(net assets $43,186,387 / 3,710,756 shares
of beneficial interest outstanding) $11.64
======
Class I shares:
Net asset value, offering price and redemption price
per share (net assets $9,671,681 / 807,367 shares
of beneficial interest outstanding) $11.98
======
On sales of $50,000 or more, the offering price of Class A shares is reduced. A
contingent deferred sales charge may be imposed on redemptions of Class A and
Class B shares.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Operations (Unaudited)
- ------------------------------------------------------------------------------
Six Months Ended May 31, 1997
- ------------------------------------------------------------------------------
Net investment income:
Income -
Dividends $ 3,047,987
Interest 1,650,970
------------
Total investment income $ 4,698,957
------------
Expenses -
Management fee $ 1,954,267
Trustees' compensation 34,856
Shareholder servicing agent fee 733,395
Shareholder servicing agent fee (Class A) 138,021
Shareholder servicing agent fee (Class B) 4,689
Distribution and service fee (Class A) 1,453,815
Distribution and service fee (Class B) 156,521
Administrative fee 50,049
Custodian fee 208,391
Postage 62,766
Auditing fees 16,761
Printing 7,559
Legal fees 6,301
Miscellaneous 197,909
------------
Total expenses $ 5,025,300
Fees paid indirectly (192,502)
------------
Net expenses $ 4,832,798
------------
Net investment loss $ (133,841)
------------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) (identified cost basis) -
Investment transactions $164,613,861
Foreign currency transactions (11,231)
------------
Net realized gain on investments and foreign currency
transactions $164,602,630
------------
Change in unrealized depreciation -
Investments $ 45,277,164
Translation of assets and liabilities in foreign
currencies 3,327
------------
Net unrealized gain on investments $ 45,280,491
------------
Net realized and unrealized gain on investments
and foreign currency $209,883,121
------------
Increase in net assets from operations $209,749,280
============
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Six Months Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment loss $ (133,841) $ (760,467)
Net realized gain on investments and foreign
currency transactions 164,602,630 313,038,586
Net unrealized gain (loss) on investments and
foreign currency translation 45,280,491 (46,507,951)
-------------- --------------
Increase in net assets from operations $ 209,749,280 $ 265,770,168
-------------- --------------
Distributions declared to shareholders -
From net realized gain on investments and
foreign currency transactions (Class A) $ (309,700,403) $ (151,666,814)
From net realized gain on investments and
foreign currency transactions (Class B) (5,913,744) (1,895,891)
-------------- --------------
Total distributions declared to shareholders $ (315,614,147) $ (153,562,705)
-------------- --------------
Fund share (principal) transactions -
Net proceeds from sale of shares $ 362,840,916 $ 141,518,246
Net asset value of shares issued to shareholders
in reinvestment of distributions 249,205,819 122,007,526
Cost of shares reacquired (383,847,464) (204,316,519)
-------------- --------------
Increase in net assets from Fund share
transactions $ 228,199,271 $ 59,209,253
-------------- --------------
Total increase in net assets $ 122,334,404 $ 171,416,716
Net assets:
At beginning of period 1,366,236,878 1,194,820,162
-------------- --------------
At end of period (including accumulated net
investment loss of $211,858 and $78,017,
respectively) $1,488,571,282 $1,366,236,878
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended November 30,
May 31, 1997 ---------------------------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------------------
Class A
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.44 $12.51 $10.48 $12.97 $12.15 $10.87
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment loss $ -- $(0.01) $(0.01) $(0.01) $(0.01) $(0.03)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions 1.63 2.55 3.12 (0.49) 1.55 2.07
------ ------ ------ ------ ------ ------
Total from investment operations $ 1.63 $ 2.54 $ 3.11 $(0.50) $ 1.54 $ 2.04
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders -
From net realized gain on investments
and foreign currency transactions $(3.10) $(1.61) $(1.08) $(1.99) $(0.72) $(0.76)
------ ------ ------ ------ ------ ------
Net asset value - end of period $11.97 $13.44 $12.51 $10.48 $12.97 $12.15
====== ====== ====== ====== ====== ======
Total return(+) 16.53%++ 23.87% 32.91% (5.00)% 13.43% 19.35%
Ratios (to average net assets)/
Supplemental data:
Expenses## 0.73%+ 0.72% 0.73% 0.72% 0.71% 0.67%
Net investment loss (0.07)%+ (0.05)% (0.08)% (0.06)% (0.19)% (0.24)%
Portfolio turnover 57% 107% 46% 56% 52% 16%
Average commission rate### $0.0610 $0.0611 $ -- $ -- $ -- $ --
Net assets at end of period (000,000
omitted) $1,436 $1,341 $1,180 $ 977 $1,132 $1,070
+ Annualized.
++ Not annualized.
# Per share data for the periods subsequent to November 30, 1992, is based on average shares outstanding.
## For the fiscal years ended after September 1, 1995, the Fund's expenses are calculated without reduction
for fees paid indirectly.
### Average commission rate is calculated for funds with fiscal years beginning on or after September 1, 1995.
(+) 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.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1991 1990 1989 1988 1987
- -----------------------------------------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 8.48 $10.70 $ 8.39 $ 9.05 $ 9.69
------ ------ ------ ------ ------
Income from investment operations -
Net investment income $ 0.01 $ 0.05 $ 0.09 $ 0.12 $ 0.18
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 2.93 (1.02) 3.14 0.64 (0.68)
------ ------ ------ ------ ------
Total from investment operations $ 2.94 $(0.97) $ 3.23 $ 0.76 $(0.50)
------ ------ ------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.03) $(0.05) $(0.08) $(0.15) $(0.14)
From net realized gain on investments and
foreign currency transactions (0.52) (1.20) (0.84) (1.27) --
------ ------ ------ ------ ------
Total distributions declared to
shareholders $(0.55) $(1.25) $(0.92) $(1.42) $(0.14)
------ ------ ------ ------ ------
Net asset value - end of period $10.87 $ 8.48 $10.70 $ 8.39 $ 9.05
====== ====== ====== ====== ======
Total return(+) 36.56% (10.27)% 42.14% 8.21% (5.57)%
Ratios (to average net assets)/Supplemental data:
Expenses 0.63% 0.53% 0.54% 0.58% 0.50%
Net investment income 0.14% 0.55% 0.91% 1.27% 1.60%
Portfolio turnover 39% 44% 32% 75% 66%
Net assets at end of period (000,000 omitted) $ 950 $ 749 $ 907 $ 735 $ 774
(+) Total returns for Class A shares do not include the applicable sales charge
(except for reinvested dividends prior to March 1, 1991). If the charge had
been included, the results would have been lower.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended November 30,
May 31, 1997 -------------------------------------------------------
(Unaudited) 1996 1995 1994 1993*
- -----------------------------------------------------------------------------------------------------------------------------
Class B
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $13.12 $12.26 $10.35 $12.93 $12.91
------ ------ ------ ------ ------
Income from investment operations# -
Net investment loss $(0.04) $(0.11) $(0.11) $(0.09) $(0.01)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 1.57 2.51 3.10 (0.50) 0.03
------ ------ ------ ------ ------
Total from investment operations $ 1.53 $ 2.40 $ 2.99 $(0.59) $ 0.02
------ ------ ------ ------ ------
Less distributions declared to shareholders -
From net realized gain on investments and
foreign currency transactions $(3.01) $(1.54) $(1.08) $(1.99) $ --
------ ------ ------ ------ ------
Net asset value - end of period $11.64 $13.12 $12.26 $10.35 $12.93
====== ====== ====== ====== ======
Total return 15.97%++ 22.87% 32.09% (5.82)% 0.70%+
Ratios (to average net assets)/Supplemental data:
Expenses## 1.53%+ 1.61% 1.63% 1.60% 1.49%+
Net investment loss (0.81)%+ (0.94)% (0.98)% (0.87)% (0.99)%+
Portfolio turnover 57% 107% 46% 56% 52%
Average commission rate### $0.0610 $0.0611 $ -- $ -- $ --
Net assets at end of period (000,000 omitted) $ 43 $ 25 $ 14 $ 9 $ 2
* For the period from the commencement of offering of Class B shares, September 7, 1993, through November 30, 1993.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## For the years ended after September 1, 1995, the Fund's expenses are calculated without reduction for fees paid
indirectly.
### Average commission rate is calculated for funds with fiscal years beginning on or after September 1, 1995.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
- -------------------------------------------------------------------------------
Period Ended
May 31, 1997*
(Unaudited)
- --------------------------------------------------------------------------------
Class I
- --------------------------------------------------------------------------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 9.86
------
Income from investment operations# -
Net investment income $ 0.01
Net realized and unrealized gain on investments and foreign
currency transactions 2.11
------
Total from investment operations $ 2.12
------
Net asset value - end of period $11.98
======
Total return 21.50%++
Ratios (to average net assets)/Supplemental data:
Expenses## 0.51%+
Net investment income 0.19%+
Portfolio turnover 57%
Average commission rate### $0.0610
Net assets at end of period (000,000 omitted) $10
* For the period from the commencement of offering of Class I shares, January
2, 1997, through May 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data for the periods subsequent to November 30, 1992, is based on
average shares outstanding.
## The Fund's expenses are calculated without reduction for fees paid
indirectly.
### Average commission rate is calculated for funds with fiscal years beginning
on or after September 1, 1995.
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Business and Organization
Massachusetts Investors Growth Stock Fund (the Fund) is 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 - Equity securities listed on securities exchanges or
reported through the NASDAQ system are valued at last sale prices. Unlisted
equity securities or listed equity securities for which last sale prices are not
available are valued at last quoted bid prices. Debt securities (other than
short-term obligations which mature in 60 days or less), including listed
issues, 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. Investments in foreign
securities are vulnerable to the effects of changes in the relative values of
the local currency and the U.S. dollar and to the effects of changes in each
country's legal, political, and economic environment. 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.
Foreign Currency Translation - Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases and
sales of foreign investments, income, and expenses are converted into U.S.
dollars based upon currency exchange rates prevailing on the respective dates of
such transactions. Gains and losses attributable to foreign currency exchange
rates on sales of securities are recorded for financial statement purposes as
net realized gains and losses on investments. Gains and losses attributable to
foreign exchange rate movements on income and expenses are recorded for
financial statement purposes as foreign currency transaction gains and losses.
That portion of both realized and unrealized gains and losses on investments
that results from fluctuations in foreign currency exchange rates is not
separately disclosed.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All premium and
original issue discount are amortized or accreted for financial statement and
tax reporting purposes as required by federal income tax regulations. Dividend
income is recorded on the ex-dividend date for dividends received in cash.
Dividend and interest payments received in additional securities are recorded on
the ex-dividend or ex-interest date in an amount equal to the value of the
security on such date.
Fees Paid Indirectly - The Fund's custodian bank calculates its fee based on the
Fund's average daily net assets. The fee is reduced according to a fee
arrangement, which provides for custody fees to be reduced based on a formula
developed to measure 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 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.
Differences in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
Multiple Classes of Shares of Beneficial Interest - The Fund offers Class A,
Class B, and Class I 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 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 effective rate of
0.29% of average daily net assets.
Administrator - Effective March 1, 1997, the Fund has an administrative services
agreement with MFS to provide the Fund with certain financial, legal,
compliance, shareholder communications, and other administrative services. As a
partial reimbursement for the cost of providing these services, the Fund pays
MFS an administrative fee up to 0.015% per annum of the Fund's average daily net
assets, provided that the administrative fee is not assessed on Fund assets that
exceed $3 billion.
The Fund pays no compensation directly to its Trustees who are officers of the
investment adviser, or to officers of the Fund, all of whom receive remuneration
for their services to the Fund from MFS. Certain of the officers and Trustees of
the Fund are officers or directors of MFS, MFS Fund Distributors, Inc. (MFD),
and MFS Service Center, Inc. (MFSC). The Fund has an unfunded defined benefit
plan for all its independent Trustees and Mr. Bailey. Included in Trustees'
compensation is a net periodic pension expense of $10,756 for the period ended
May 31, 1997.
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$49,024 for the period ended May 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 and Class B 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
(assets attributable to Class A shares sold prior to March 1, 1991, are subject
to a service fee of 0.15% per annum) of the Fund's average daily net assets
attributable to Class A shares which are attributable to that securities dealer,
a distribution fee to MFD of up to 0.10% per annum of the Fund's average daily
net assets attributable to Class A shares, commissions to dealers, and payments
to MFD wholesalers for sales at or above a certain dollar level, and other such
distribution-related expenses that are approved by the Fund. MFD retains the
service fee for accounts not attributable to a securities dealer which amounted
to $414,647 for the period ended May 31, 1997. Payment of the 10% per annum
Class A distribution fee will commence on such date as the Trustees of the Fund
may determine. Fees incurred under the distribution plan during the period ended
May 31, 1997, were 0.22% of 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 shares. MFD will pay to
securities dealers that enter into a sales agreement with MFD all or a portion
of the service fee attributable to Class B shares. The service fee is intended
to be additional consideration for services rendered by the dealer with respect
to Class B shares. MFD retains the service fee for accounts not attributable to
a securities dealer, which amounted to $2,331 for Class B shares for the period
ended May 31, 1997. Fees incurred under the distribution plan during the period
ended May 31, 1997, were 1.00% of average daily net assets attributable to Class
B shares on an annualized basis.
Purchases over $1 million of Class A shares and certain purchases by 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.
MFD receives all contingent deferred sales charges. Contingent deferred sales
charges imposed during the period ended May 31, 1997, were $13,752 and $11,696
for Class A and Class B shares, respectively.
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as a
percentage of the Fund's average daily net assets at an effective annual rate of
0.13%. Prior to January 1, 1997, the fee was calculated as a percentage of the
average daily net assets of each class of shares at an effective annual rate of
up to 0.15% and up to 0.22% attributable to Class A and Class B shares,
respectively.
(4) Portfolio Securities
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions, and short-term obligations aggregated
$733,691,744 and $789,640,012, 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 $1,107,199,204
==============
Gross unrealized appreciation $ 382,784,300
Gross unrealized depreciation (18,576,254)
--------------
Net unrealized appreciation $ 364,208,046
==============
(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 May 31, 1997 Year Ended November 30, 1996
------------------------------ -----------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 29,501,130 $321,339,965 9,833,859 $117,167,335
Shares issued to shareholders in
reinvestment of distributions 24,273,277 243,704,117 11,391,727 120,223,809
Shares transferred to Class I (729,102) (7,188,941) -- --
Shares reacquired (32,807,697) (356,876,397) (15,793,634) (186,665,355)
---------- ------------ ----------- ------------
Net increase 20,237,608 $200,978,744 5,431,952 $ 50,725,789
========== ============ =========== ============
<CAPTION>
Class B Shares
Six Months Ended May 31, 1997 Year Ended November 30, 1996
------------------------------ -----------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 3,724,119 $ 40,475,983 2,089,754 $ 24,350,911
Shares issued to shareholders in
reinvestment of distributions 561,395 5,501,702 171,965 1,783,717
Shares reacquired (2,486,962) (26,796,880) (1,530,126) (17,651,164)
---------- ------------ ----------- ------------
Net increase 1,798,552 $ 19,180,805 731,593 $ 8,483,464
========== ============ =========== ============
<CAPTION>
Class I Shares
Six Months Ended May 31, 1997
-----------------------------
Shares Amount
- ----------------------------------------------------------------------
<S> <C> <C>
Shares sold 94,511 $ 1,024,968
Shares transferred from Class A 729,102 7,188,941
Shares reacquired (16,246) (174,187)
---------- ------------
Net increase 807,367 $ 8,039,722
========== ============
</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 May 31, 1997, was $4,780.
--------------------------------------
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>
MASSACHUSETTS INVESTORS GROWTH STOCK FUND
Trustees
A. Keith Brodkin* - Chairman and Investor Information
President For MFS stock and bond market
outlooks, call toll free:
Richard B. Bailey* - Private Investor; 1-800-637-4458 anytime from a
Former Chairman and Director (until touch-tone telephone.
1991), Massachusetts Financial
Services Company; Director, Cambridge For information on MFS mutual funds,
Bancorp; Director, Cambridge Trust call your financial adviser or, for an
Company information kit, call toll free:
1-800-637-2929 any business day from 9
Peter G. Harwood - Private Investor a.m. to 5 p.m. Eastern time (or leave
a message anytime).
J. Atwood Ives - Chairman and Chief
Executive Officer, Eastern Enterprises Investor Service
MFS Service Center, Inc.
Lawrence T. Perera - Partner, Hemenway P.O. Box 2281
& Barnes Boston, MA 02107-9906
William J. Poorvu - Adjunct Professor, For general information, call toll free
Harvard University Graduate School of 1-800-225-2606 any business day from
Business Administration 8 a.m. to 8 p.m. Eastern time.
Charles W. Schmidt - Private Investor For service to speech- or
hearing-impaired, call toll free:
Arnold D. Scott* - Senior Executive 1-800-637-6576 any business day from 9
Vice President, Director and a.m. to 5 p.m. Eastern time. (To use
Secretary, Massachusetts Financial this service, your phone must be
Services Company equipped with a Telecommunications
Device for the Deaf.)
Jeffrey L. Shames* - President and
Director, Massachusetts Financial For share prices, account balances,
Services Company and exchanges, call toll free:
1-800-MFS-TALK (1-800-637-8255)
Elaine R. Smith - Independent anytime from a touch-tone telephone.
Consultant
World Wide Web
David B. Stone - Chairman, North www.mfs.com
American Management Corp. (investment
advisers)
[DALBAR For the third year in a row,
Investment Adviser LOGO] MFS earned a #1 ranking in the
Massachusetts Financial Services DALBAR, Inc. Broker/Dealer Survey,
Company Main Office Operations Service Quality
500 Boylston Street Category. The firm achieved a 3.48
Boston, MA 02116-3741 overall score on a scale of 1 to 4 in
the 1996 survey. A total of 110 firms
Distributor responded, offering input on the
MFS Fund Distributors, Inc. quality of service they received from
500 Boylston Street 29 mutual fund companies nationwide.
Boston, MA 02116-3741 The survey contained questions about
service quality in 15 categories,
Portfolio Manager including "knowledge of phone service
Christian Felipe* contacts," "accuracy of transaction
processing," and "overall ease of
Treasurer doing business with the firm."
W. Thomas London*
Assistant Treasurer
James O. Yost*
Secretary
Stephen E. Cavan*
Assistant Secretary
James R. Bordewick, Jr.*
Custodian
State Street Bank and Trust Company
*Affiliated with the Investment Adviser
<PAGE>
-------------
Massachusetts [DALBAR LOGO] Bulk Rate
Investors Growth U.S. Postage
Stock Fund P a i d
MFS
500 Boylston Street -------------
Boston, MA 02116-3741
[LOGO] M F S(SM)
INVESTMENT MANAGEMENT
We invented the mutual fund(SM)
(C)1997 MFS Fund Distributors, Inc., 500 Boylston Street, Boston, MA 02116-3741
MIG-3 7/97 56M 13/213/813
