MFS Government Limited Maturity Fund
MFS Investment Management
75 Years
WE INVENTED THE MUTUAL FUND (registered trademark)
MFS(registered trademark) Government Limited Maturity Fund
Semiannual Report [bullet] June 30, 1999
Table of Contents
Letter from the Chairman 1
Management Review and Outlook 3
Performance Summary 6
Portfolio of Investments 9
Financial Statements 10
Notes to Financial Statements 17
MFS' Year 2000 Readiness Disclosure 23
Trustees and Officers 25
MFS(registered trademark) Original Research SM
Research has been central to investment management at MFS since 1932,
when we created one of the first in-house research departments in the
mutual fund industry. Original ResearchSM at MFS is more than just
crunching numbers and creating economic models: it's getting to know
each security and each company personally.
[GRAPHIC OMITTED: MFS LOGO]
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Letter from the Chairman
[GRAPHIC OMITTED: PHOTO OF JEFFREY L. SHAMES]
Dear Shareholders,
It has been almost two years since financial turmoil began to rock
markets in Asia, Russia, and Latin America. Even developed markets
such as Europe and the United States were not immune. In the U.S.
equity market, for example, investors focused on a narrow group of 50
of the largest-company growth stocks because they seemed to offer less
volatility in uncertain times. Fixed-income investors also became more
concerned about risk, moving money into U.S. Treasury securities and
out of corporate and municipal bonds and mortgage-backed securities.
The narrowness of the market was just one of three broad issues that
dominated the U.S. equity market until recently. The other two were a
slowdown in corporate earnings growth and high valuations, with stocks
of many companies selling at extremely high prices relative to their
earnings.
Although these have been challenging issues, we now see signs that we
feel demonstrate each one is changing for the better. Today, we
believe the markets are presenting more opportunities for investors to
diversify, for our portfolio managers to find good values, and for us
to show the benefits of staying with our long-term objectives and
strategies. Investors seem to be regaining confidence in a wider range
of companies. Stocks of some small and mid-sized companies, as well as
some large industrial companies, have begun to perform better in the
past few months than they had for the previous year or so. These
companies appear to have benefited from early signs of stability in
emerging markets and a continuation of economic growth in the United
States.
U.S. companies also have produced better earnings. Corporate earnings
were, on average, relatively flat in 1998. However, we expect earnings
to grow 12% to 14% this year because more companies have benefited
from the strong economy and from aggressive consolidation and
cost-cutting measures they have taken over the past several years.
Based on their earnings projections, our analysts estimate that the
U.S. stock market is still about 30% overvalued. While there has been
some shift to a wider group of stocks, many investors are still
focusing on the large- company stocks. As a result, most of the
overvaluation is in the 50 largest stocks in the Standard & Poor's 500
Composite Index (the S&P 500), a popular, unmanaged index of common
stock total return performance. That means about 450 stocks are
selling at more attractive prices, particularly given what we see as
the improved earnings outlooks for these and many small and mid-sized
companies not in the S&P 500. These companies also benefit from
consolidation, cost cutting, and global growth. Because they are
smaller, they may be able to respond to these changes more quickly,
and thus they have the potential to grow faster than the big
companies.
The fixed-income markets, meanwhile, seem to be approaching the level
of relative stability they enjoyed before the Asian turmoil. Some
credit for this stability goes to the Federal Reserve Board (the Fed),
which has reassured investors that it will act to prevent rapid
economic growth from causing higher inflation and reduced purchasing
power. Also, once investors saw that the overseas turmoil had little,
if any, effect on the financial strength of most domestic bond
issuers, the major non-Treasury markets -- corporate, municipal, and
mortgage -- began to rebound. Our portfolio managers are now finding
more opportunities to buy bonds with relatively stable prices and
attractive yields.
The past two years have challenged investors. However, we believe we
are well positioned for the current environment because our analysts
and portfolio managers continue to rely on MFS(registered trademark)
Original ResearchSM to help evaluate the long-term investment
potential of each holding being considered for our portfolios. Also,
we believe our discipline of staying with our clearly defined
investment strategies can help us offer investment products with the
potential to sustain returns over a variety of market cycles.
We appreciate your confidence and welcome any questions or comments
you may have.
Respectfully,
/S/JEFFREY L. SHAMES
Jeffrey L. Shames
Chairman and Chief Executive Officer
MFS Investment Management(registered trademark)
July 15, 1999
Management Review and Outlook
[GRAPHIC OMITTED: PHOTO OF D. RICHARD SMITH]
For the six months ended June 30, 1999, Class A shares of the Fund
provided a total return of 0.74%, Class B shares 0.34%, Class C shares
0.32%, and Class I shares 0.81%. These returns assume the reinvestment
of distributions but exclude the effects of any sales charges and
compare to a 1.02% return for the average short-term U.S. government
debt fund tracked by Lipper Analytical Services, Inc., an independent
firm that reports mutual fund performance. The Fund's returns also
compare to a 1.15% return for the Lehman Brothers One- to Three-Year
Government Bond Index (an unmanaged, market-value-weighted index
comprised of debt issued by the U.S. government and its agencies with
remaining maturities of one to three years).
Q. How has the economy affected the Fund's performance over the past
six months?
A. The Fund slightly underperformed, although it was relatively close
to both the index and the average short-term U.S. government debt fund
tracked by Lipper. The U.S. economy remained stronger than we
expected, and rates have risen to counter this growth. The return was
positive in an environment unfavorable to bonds -- an incredibly
strong economy in terms of employment rates, gross domestic product
growth, rising exports, and manufacturing. With interest rates up and
a strong equity market, investors veered away from most bonds.
Q. What changes occurred in the portfolio?
A. The portfolio had to adapt to the Federal Reserve Board's (the
Fed's) rate increase. We held more cash, one-year U.S. Treasuries,
1.5-year agencies, and mortgage-backed securities, the last providing,
on a relative basis, significant yield. We avoided anything at the
two-year point. What did not change was the portfolio's duration.
Q. How about short-term versus long-term interest rates?
A. The Fed tightening meant that the yield curve steepened for zero-
to two-year bonds and flattened for two- to 30-year bonds. Periods
like these historically have lasted about six months. The market
typically has overreacted to this kind of situation, which has created
buying opportunities in the past. We may be getting close to this
buying point, but we have to be patient.
Q. Why did the portfolio hold significantly more mortgage-backed
assets?
A. The mortgage market is trading at very wide yield spreads to the
30-year U.S. Treasury bond benchmark. This makes mortgages, in my
opinion, an excellent investment opportunity. We also are encouraged
by the budget surplus and by the fact that fewer government bonds are
being issued. This low issuance will help government bonds in general
because the supply is limited. The challenge we have to deal with is
that rising rates will limit refinancing opportunities for homeowners,
and mortgages are trading with greater price sensitivity to changes in
interest rates. The supply of mortgages may decrease later in the
year, and mortgages may see greater investment demand.
Q. What factors will you be watching for over the next six months?
A. I think bond yields may be most affected by the growth of the U.S.
economy and any sign of inflation. Global factors will be a secondary
influence. The slowed growth in the second quarter may continue
through the end of the year. Any growth will likely depend on
consumers, especially in the retailing and housing markets. Inflation
is mainly an issue of rising wages, and as long as productivity is
strong, we don't expect to have an inflation scare. Globally, growth
has stabilized. Given the structural issues Europe and Asia need to
deal with, we think accelerated growth in those areas is unlikely.
Global interest rates also are unlikely to go up.
Respectfully,
/S/D. RICHARD SMITH
D. Richard Smith
Portfolio Manager
The opinions expressed in this report are those of the portfolio
manager and are current only through the end of the period of the
report as stated on the cover. The manager's views are subject to
change at any time based on market and other conditions, and no
forecasts can be guaranteed.
It is not possible to invest directly in an index.
PORTFOLIO MANAGER'S PROFILE
D. Richard Smith is Vice President of MFS Investment
Management(registered trademark) and portfolio manager of
MFS(registered trademark) Government Mortgage Fund and MFS(registered
trademark) Government Limited Maturity Fund.
Mr. Smith joined MFS in 1993. He became a portfolio manager in 1997.
From 1986 to 1993 he worked in research and institutional sales on
Wall Street. He is a graduate of Vassar College and has an M.B.A.
degree from Vanderbilt University.
All portfolio managers at MFS Investment Management(registered
trademark) are supported by an investment staff of over 100
professionals utilizing MFS(registered trademark) Original ResearchSM,
a company-oriented, bottom-up process of selecting securities.
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. A prospectus
containing more information, including the exchange privilege and all
charges and expenses, for any other MFS product is available from your
financial adviser, or by calling MFS at 1-800-225-2606. Please read it
carefully before investing or sending money.
FUND FACTS
Objective: Seeks to preserve capital and provide
high current income (compared to a
portfolio invested entirely in
money market instruments).
Commencement of
investment operations: September 26, 1988
Class inception: Class A September 26, 1988
Class B September 7, 1993
Class C August 1, 1994
Class I January 2, 1997
Size: $316.6 million net assets as of June 30, 1999
Performance Summary
Because mutual funds are designed for investors with long-term goals,
we have provided cumulative results as well as the average annual
total returns for the applicable time periods. Investment results
reflect the percentage change in net asset value, including
reinvestment of dividends. (See Notes to Performance Summary for more
information.)
Average Annual and Cumulative Total Rates of Return
through June 30, 1999
Class A
6 Months 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------
Cumulative Total
Return +0.74% +4.34% +17.19% +30.57% +73.42%
- -----------------------------------------------------------------------
Average Annual
Total Return -- +4.34% + 5.43% + 5.48% + 5.66%
- -----------------------------------------------------------------------
SEC Results -- +1.73% + 4.54% + 4.95% + 5.39%
- -----------------------------------------------------------------------
Class B
6 Months 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------
Cumulative Total
Return +0.34% +3.57% +14.44% +25.22% +64.92%
- -----------------------------------------------------------------------
Average Annual
Total Return -- +3.57% + 4.60% + 4.60% + 5.13%
- -----------------------------------------------------------------------
SEC Results -- -0.38% + 3.70% + 4.28% + 5.13%
- -----------------------------------------------------------------------
Class C
6 Months 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------
Cumulative Total
Return +0.32% +3.49% +14.18% +25.16% +66.18%
- -----------------------------------------------------------------------
Average Annual
Total Return -- +3.49% + 4.52% + 4.59% + 5.21%
- -----------------------------------------------------------------------
SEC Results -- +2.50% + 4.52% + 4.59% + 5.21%
- -----------------------------------------------------------------------
Class I
6 Months 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------
Cumulative Total
Return +0.81% +4.25% +17.32% +30.76% +73.59%
- -----------------------------------------------------------------------
Average Annual
Total Return -- +4.25% + 5.47% + 5.51% + 5.67%
- -----------------------------------------------------------------------
Notes to Performance Summary
Class A share ("A") SEC results include the maximum 2.50% sales
charge. Class B share ("B") SEC results reflect the applicable
contingent deferred sales charge (CDSC), which declines over six years
from 4% to 0%. Class C shares ("C") have no initial sales charge but,
like B, have higher annual fees and expenses than A. C SEC results
reflect the 1% CDSC applicable to shares redeemed within 12 months.
Class I shares ("I") have no sales charge or Rule 12b-1 fees and are
only available to certain institutional investors.
B and C results include the performance and the operating expenses
(e.g., Rule 12b-1 fees) of A for periods prior to the inception of B
and C. Because operating expenses of B and C are higher than those of
A, B and C performance generally would have been lower than A
performance. The A performance included in the B and C SEC performance
has been adjusted to reflect the CDSC generally applicable to B and C
rather than the initial sales charge generally applicable to A.
I results include the performance and the operating expenses (e.g.,
Rule 12b-1 fees) of A for periods prior to the inception of I. Because
operating expenses of A are greater than those of I, I performance
generally would have been higher than A performance. The A performance
included in the I performance has been adjusted to reflect the fact
that I have no initial sales charge.
Performance results reflect any applicable expense subsidies and
waivers, without which the results would have been less favorable.
Subsidies and waivers may be rescinded at any time. See the prospectus
for details. 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.
Government guarantees apply to individual securities only and not to
prices and yields of shares in a managed portfolio. See the prospectus
for details.
[GRAPHIC OMITTED: pie chart PORTFOLIO CONCENTRATION AS OF JUNE 30, 1999]
Portfolio Concentration as of June 30, 1999
Portfolio Structure
U.S. Treasuries 37.1%
Mortgaged Backed 28.8%
Cash 22.8%
Other Government
Agencies 11.3%
Footnote reads:
The portfolio is actively managed, and current holdings may be different.
<TABLE>
<CAPTION>
Portfolio of Investments (Unaudited) - June 30, 1999
Bonds - 74.6%
- ------------------------------------------------------------------------------------------------
Principal Amount
Issuer (000 Omitted) Value
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Federal Agencies -- 29.4%
Federal Home Loan Mortgage Corp., 5s, 2001 $15,000 $ 14,838,300
Federal Home Loan Mortgage Corp., 8s, 2011 - 2012 7,009 7,247,994
Federal National Mortgage Assn., 6s, 2013 435 420,056
Federal National Mortgage Assn., 6.13s, 2011 10,198 10,048,505
Federal National Mortgage Assn., 6.1815s, 2014 9,761 9,675,205
Federal National Mortgage Assn., 7s, 2011 - 2013 36,759 36,885,028
Federal National Mortgage Assn., 7.5s, 2000 - 2013 13,737 13,964,517
-------------
$ 93,079,605
- ------------------------------------------------------------------------------------------------
U.S. Government Guaranteed -- 45.2%
Government National Mortgage Association -- 9.4%
GNMA, 7.5s, 2022 - 2024 $12,166 $ 12,302,929
GNMA, 8s, 2023 - 2028 12,297 12,666,166
GNMA, 8.5s, 2002 - 2010 1,548 1,630,637
GNMA, 9s, 2001 - 2007 2,934 3,127,683
-------------
$ 29,727,415
- ------------------------------------------------------------------------------------------------
U.S. Treasury Obligations -- 35.8%
U.S. Treasury Notes, 7.75s, 2001 $25,000 $ 25,871,000
U.S. Treasury Notes, 7.875s, 2001 32,000 33,459,840
U.S. Treasury Notes, 8s, 2001 51,950 54,206,708
-------------
$113,537,548
- ------------------------------------------------------------------------------------------------
Total U.S. Government Guaranteed $143,264,963
- ------------------------------------------------------------------------------------------------
Total Bonds (Identified Cost, $239,963,957) $236,344,568
Repurchase Agreement -- 22.1%
- ------------------------------------------------------------------------------------------------
Goldman Sachs, dated 6/30/99, due 7/01/99, total to be
received $69,845,408 (secured by various U.S. Treasury
and Federal Agency obligations in a jointly traded account),
at Cost $69,836 $ 69,836,000
- ------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $309,799,957) $306,180,568
Other Assets, Less Liabilities - 3.3% 10,432,791
- ------------------------------------------------------------------------------------------------
Net Assets - 100.0% $316,613,359
- ------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Statements
Statement of Assets and Liabilities (Unaudited)
- ------------------------------------------------------------------------------------------------
June 30, 1999
- ------------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments, at value (identified cost, $239,963,957) $236,344,568
Repurchase agreement, at value 69,836,000
------------
Total investments at value (identified cost, $309,799,957) $306,180,568
Cash 183
Receivable for Fund shares sold 360,555
Receivable for investments sold 9,603,906
Interest receivable 3,283,758
Other assets 3,790
------------
Total assets $319,432,760
------------
Liabilities:
Distributions payable $ 452,329
Payable for Fund shares reacquired 2,193,168
Payable to affiliates -
Management fee 3,462
Shareholder servicing agent fee 865
Distribution and service fee 27,868
Administrative fee 130
Accrued expenses and other liabilities 141,579
------------
Total liabilities $ 2,819,401
------------
Net assets $316,613,359
------------
Net assets consist of:
Paid-in capital $346,432,731
Unrealized depreciation on investments (3,619,389)
Accumulated net realized loss on investments (25,636,940)
Accumulated distributions in excess of net investment income (563,043)
------------
Total $316,613,359
------------
Shares of beneficial interest outstanding 38,422,737
------------
Class A shares:
Net asset value per share
(net assets of $212,938,271 (divided by) 25,813,632 shares
of beneficial interest outstanding) $8.25
----
Offering price per share (100 (divided by) 97.5 of net asset value per share) $8.46
----
Class B shares:
Net asset value and offering price per share
(net assets of $72,564,478 (divided by) 8,818,700 shares
of beneficial interest outstanding) $8.23
----
Class C shares:
Net asset value and offering price per share
(net assets of $30,909,453 (divided by) 3,765,956 shares
of beneficial interest outstanding) $8.21
----
Class I shares:
Net asset value, offering price, and redemption price per share
(net assets of $201,157 (divided by) 24,449 shares
of beneficial interest outstanding) $8.23
----
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
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (Unaudited)
- ------------------------------------------------------------------------------------------------
Six Months Ended June 30, 1999
- ------------------------------------------------------------------------------------------------
<S> <C>
Net investment income:
Interest income $10,320,956
-----------
Expenses -
Management fee $ 638,033
Trustees' compensation 23,245
Shareholder servicing agent fee 169,303
Distribution and service fee (Class A) 163,427
Distribution and service fee (Class B) 337,745
Distribution and service fee (Class C) 147,387
Administrative fee 23,929
Custodian fee 46,500
Printing 13,249
Postage 15,011
Auditing fees 12,529
Miscellaneous 118,461
-----------
Total expenses $ 1,708,819
Fees paid indirectly (18,870)
-----------
Net expenses $ 1,689,949
-----------
Net investment income $ 8,631,007
-----------
Realized and unrealized gain (loss) on investments:
Realized loss (identified cost basis) on investment transactions $(2,740,371)
Change in unrealized depreciation on investments (3,878,021)
-----------
Net realized and unrealized loss on investments $(6,618,392)
-----------
Increase in net assets from operations $ 2,012,615
-----------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
(Unaudited)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment income $ 8,631,007 $ 15,081,899
Net realized gain (loss) on investments (2,740,371) 962,768
Net unrealized loss on investments (3,878,021) (742,723)
------------ ------------
Increase in net assets from operations $ 2,012,615 $ 15,301,944
------------ ------------
Distributions declared to shareholders -
From net investment income (Class A) $ (6,104,482) $(11,563,809)
From net investment income (Class B) (1,720,845) (2,356,980)
From net investment income (Class C) (702,053) (1,034,259)
From net investment income (Class I) (5,507) (27,187)
------------ ------------
Total distributions declared to shareholders $ (8,532,887) $(14,982,235)
------------ ------------
Net increase in net assets from Fund share transactions $ 13,918,596 $ 65,638,958
------------ ------------
Total increase in net assets $ 7,398,324 $ 65,958,667
Net assets:
At beginning of period 309,215,035 243,256,368
------------ ------------
At end of period (including accumulated distributions
in excess of net investment income of $563,043 and
$661,163, respectively) $316,613,359 $309,215,035
------------ ------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------
Year Ended December 31,
Six Months Ended --------------------------------------------
June 30, 1999 1998 1997 1996 1995 1994
(Unaudited)
- ---------------------------------------------------------------------------------------------------------
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 $ 8.42 $ 8.40 $ 8.41 $ 8.68 $ 8.42 $ 8.99
------ ------ ------ ------ ------ ------
Income from investment
operations# -
Net investment income $ 0.23 $ 0.50 $ 0.53 $ 0.56 $ 0.59 $ 0.54
Net realized and unrealized gain (loss)
on investments (0.17) 0.02 (0.02) (0.30) 0.25 (0.61)
------ ------ ------ ------ ------ ------
Total from investment operations $ 0.06 $ 0.52 $ 0.51 $ 0.26 $ 0.84 $(0.07)
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders
from net investment income $(0.23) $(0.50) $(0.52) $(0.53) $(0.58) $(0.50)
------ ------ ------ ------ ------ ------
Net asset value - end of period $ 8.25 $ 8.42 $ 8.40 $ 8.41 $ 8.68 $ 8.42
------ ------ ------ ------ ------ ------
Total return++ 0.74%++ 6.34% 6.30% 2.98% 10.36% (0.76)%
Ratios (to average net assets)/
Supplemental data:
Expenses## 0.81%+ 0.84% 0.84% 0.84% 0.88% 0.89%
Net investment income 5.65%+ 5.95% 6.27% 6.55% 6.91% 6.28%
Portfolio turnover 79% 368% 266% 301% 447% 328%
Net assets at end of period (000 omitted) $212,938 $215,877 $190,039 $226,976 $248,955 $257,154
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The Fund has an expense offset arrangement which reduces the
Fund's custodian fee based upon the amount of cash maintained by the
Fund with its custodian and dividend disbursing agent. For fiscal
years ending after September 1, 1995, the Fund's expenses are
calculated without reduction for this expense offset arrangement.
++ 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.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights - continued
- ---------------------------------------------------------------------------------------------------------
Year Ended December 31,
Six Months Ended --------------------------------------------
June 30, 1999 1998 1997 1996 1995 1994
(Unaudited)
- ---------------------------------------------------------------------------------------------------------
Class B
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of period $ 8.40 $ 8.39 $ 8.39 $ 8.67 $ 8.41 $ 8.98
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.20 $ 0.43 $ 0.46 $ 0.47 $ 0.51 $ 0.47
Net realized and unrealized gain (loss)
on investments (0.17) 0.01 -- (0.30) 0.25 (0.62)
------ ------ ------ ------ ------ ------
Total from investment operations $ 0.03 $ 0.44 $ 0.46 $ 0.17 $ 0.76 $(0.15)
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders
from net investment income $(0.20) $(0.43) $(0.46) $(0.45) $(0.50) $(0.42)
------ ------ ------ ------ ------ ------
Net asset value - end of period $ 8.23 $ 8.40 $ 8.39 $ 8.39 $ 8.67 $ 8.41
------ ------ ------ ------ ------ ------
Total return 0.34%++ 5.43% 5.61% 2.08% 9.31% (1.65)%
Ratios (to average net assets)/
Supplemental data:
Expenses## 1.61%+ 1.60% 1.63% 1.72% 1.74% 1.79%
Net investment income 4.85%+ 5.17% 5.48% 5.67% 6.02% 5.42%
Portfolio turnover 79% 368% 266% 301% 447% 328%
Net assets at end of period (000 omitted) $72,564 $68,867 $34,843 $34,643 $33,759 $23,918
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The Fund has an expense offset arrangement which reduces the
Fund's custodian fee based upon the amount of cash maintained by the
Fund with its custodian and dividend disbursing agent. For fiscal
years ending after September 1, 1995, the Fund's expenses are
calculated without reduction for this expense offset arrangement.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights - continued
- ---------------------------------------------------------------------------------------------------------
Year Ended December 31,
Six Months Ended --------------------------------------------
June 30, 1999 1998 1997 1996 1995 1994*
(Unaudited)
- ---------------------------------------------------------------------------------------------------------
Class C
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of period $ 8.38 $ 8.37 $ 8.37 $ 8.65 $ 8.39 $ 8.62
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.20 $ 0.43 $ 0.45 $ 0.48 $ 0.51 $ 0.17
Net realized and unrealized gain (loss)
on investments (0.17) 0.01 -- (0.30) 0.25 (0.20)
------ ------ ------ ------ ------ ------
Total from investment operations $ 0.03 $ 0.44 $ 0.45 $ 0.18 $ 0.76 $(0.03)
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders
from net investment income $(0.20) $(0.43) $(0.45) $(0.46) $(0.50) $(0.20)
------ ------ ------ ------ ------ ------
Net asset value - end of period $ 8.21 $ 8.38 $ 8.37 $ 8.37 $ 8.65 $ 8.39
------ ------ ------ ------ ------ ------
Total return 0.32%++ 5.35% 5.56% 2.12% 9.33% (0.33)%++
Ratios (to average net assets)/
Supplemental data:
Expenses## 1.66%+ 1.69% 1.69% 1.69% 1.73% 1.62%+
Net investment income 4.80%+ 5.10% 5.42% 5.68% 5.87% 6.10%+
Portfolio Turnover 79% 368% 266% 301% 447% 328%
Net assets at end of period (000 omitted) $30,909 $24,286 $18,192 $22,215 $17,365 $3,403
* For the period from the inception of Class C, August 1, 1994,
through December 31, 1994.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The Fund has an expense offset arrangement which reduces the
Fund's custodian fee based upon the amount of cash maintained by the
Fund with its custodian and dividend disbursing agent. For fiscal
years ending after September 1, 1995, the Fund's expenses are
calculated without reduction for this expense offset arrangement.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights - continued
- ------------------------------------------------------------------------------------------------------------
Year Ended
December 31,
Six Months Ended --------------------------
June 30, 1999 1998 1997*
(Unaudited)
- ------------------------------------------------------------------------------------------------------------
Class I
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 8.40 $ 8.40 $ 8.40
------ ------ ------
Income from investment operations# -
Net investment income $ 0.24 $ 0.46 $ 0.53
Net realized and unrealized gain (loss) on investments (0.17) 0.05 --
------ ------ ------
Total from investment operations $ 0.07 $ 0.51 $ 0.53
------ ------ ------
Less distributions declared to shareholders
from net investment income $(0.24) $(0.51) $(0.53)
------ ------ ------
Net asset value - end of period $ 8.23 $ 8.40 $ 8.40
------ ------ ------
Total return 0.81%++ 6.25% 6.55%++
Ratios (to average net assets)/Supplemental data:
Expenses## 0.66%+ 0.66% 0.69%+
Net investment income 5.80%+ 6.23% 6.42%+
Portfolio Turnover 79% 368% 266%
Net assets at end of period (000 omitted) $201 $185 $182
* For the period from the inception of Class I, January 2, 1997,
through December 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The Fund has an expense offset arrangement which reduces the
Fund's custodian fee based upon the amount of cash maintained by the
Fund with its custodian and dividend disbursing agent. For fiscal
years ending after September 1, 1995, the Fund's expenses are
calculated without reduction for this expense offset arrangement.
See notes to financial statements
</TABLE>
Notes to Financial Statements (Unaudited)
(1) Business and Organization
MFS Government Limited Maturity Fund (the Fund) is organized as a
Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company.
(2) Significant Accounting Policies
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.
Repurchase Agreements - The Fund may enter into repurchase agreements
with institutions that the Fund's investment adviser has determined
are creditworthy. Each repurchase agreement is recorded at cost. The
Fund requires that the securities collateral in a repurchase
transaction be transferred to the custodian in a manner sufficient to
enable the Fund to obtain those securities in the event of a default
under the repurchase agreement. The Fund monitors, on a daily basis,
the value of the collateral to ensure that its value, including
accrued interest, is greater than amounts owed to the Fund under each
such repurchase agreement. The Fund, along with other affiliated
entities of Massachusetts Financial Services Company (MFS), may
utilize a joint trading account for the purpose of entering into one
or more repurchase agreements.
Investment Transactions and Income - Investment transactions are
recorded on the trade date. Interest income is recorded on the accrual
basis. All discount is accreted for financial statement and tax
reporting purposes as required by federal income tax regulations.
Interest payments received in additional securities are recorded on
the ex-interest date in an amount equal to the value of the security
on such date. Some securities may be purchased on a "when-issued" or
"forward delivery" basis, which means that the securities will be
delivered to the Fund at a future date, usually beyond customary
settlement time.
Fees Paid Indirectly - The Fund's custody fee is calculated as a
percentage of the Fund's month end net assets. The fee is reduced
according to an arrangement that 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 taxable income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is
provided.
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 distributions from paid-in 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 net realized
gains.
At December 31, 1998, the Fund, for federal income tax purposes, had a
capital loss carryforward of $22,849,986 which may be applied against
any net taxable realized gains of each succeeding year until the
earlier of its utilization or expiration on December 31, 2002,
($13,198,644), December 31, 2003, ($2,302,419), December 31, 2004,
($4,284,511), and December 31, 2005, ($3,064,412).
Multiple Classes of Shares of Beneficial Interest - The Fund offers
multiple classes of shares, which differ in their respective
distribution and service fees. All shareholders bear the common
expenses of the Fund based on the value of settled shares outstanding
of each class, without distinction between share classes. Dividends
are declared separately for each class. Differences in per share
dividend rates are generally due to differences in separate class
expenses. Class B shares will convert to Class A shares approximately
eight years after purchase.
(3) Transactions with Affiliates
Investment Adviser - The Fund has an investment advisory agreement
with 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 equal to the lesser
of (i) 0.40% of the Fund's average daily net assets or (ii) 0.38% of
the Fund's average daily net assets and 5.36% of gross investment
income.
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 of its
independent Trustees and Mr. Bailey. Included in Trustees'
compensation is net periodic pension expense of $6,545 for the six
months ended June 30, 1999.
Administrator - 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:
First $1 billion 0.0150%
Next $1 billion 0.0125%
Next $1 billion 0.0100%
In excess of $3 billion 0.0000%
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor,
received $21,218 for the six months ended June 30, 1999, 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 paid 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% until such date as the Trustees of the
Fund may determine) of the Fund's average daily net assets
attributable to Class A shares which are attributable to that
securities dealer and 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. Payment of the 0.10% per annum Class A distribution fee will
commence on such date as the Trustees of the Fund may determine. MFD
retains the service fee for accounts not attributable to a securities
dealer, which amounted to $15,104 for the six months ended June 30,
1999. Fees incurred under the distribution plan during the six months
ended June 30, 1999, were 0.15% 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 and Class C shares. The service fee is currently being reduced
to 0.15% on Class B shares held over one year (and may be increased to
a maximum of 0.25% per annum on such date as the Trustees of the Fund
may determine.) 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 consideration for services
rendered by the dealer with respect to Class B and Class C shares. MFD
retains the service fee for accounts not attributable to a securities
dealer, which amounted to $2,197 and $145 for Class B and Class C
shares, respectively, for the six months ended June 30, 1999. Fees
incurred under the distribution plan during the six months ended June
30, 1999, were 0.95% and 1.00% of average daily net assets
attributable to Class B and Class C shares, respectively, on an
annualized basis.
Certain Class A and Class C shares are subject to a contingent
deferred sales charge in the event of a shareholder redemption within
12 months following 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 six months ended June 30, 1999, were $22,555,
$228,959, and $10,074 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 0.10%. Prior to April 1, 1999, the fee
was calculated as a percentage of the Fund's average daily net assets
at an effective annual rate of 0.1125%.
(4) Portfolio Securities
Purchases and sales of investments, other than purchased option
transactions and short-term obligations, were as follows:
Purchases Sales
- --------------------------------------------------------------------------
U.S. government securities $218,954,418 $256,284,361
------------ ------------
The cost and unrealized appreciation and depreciation in the value of
the investments owned by the Fund, as computed on a federal income tax
basis, are as follows:
Aggregate cost $309,799,957
------------
Gross unrealized depreciation $ (3,708,670)
Gross unrealized appreciation 89,281
------------
Net unrealized depreciation $ (3,619,389)
------------
<TABLE>
<CAPTION>
(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.
Transactions in Fund shares were as follows:
Class A Shares
Six Months Ended June 30, 1999 Year Ended December 31, 1998
------------------------------ ----------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 45,654,874 $380,820,157 29,281,668 $246,268,535
Shares issued to shareholders in
reinvestment of distributions 508,114 4,234,605 916,057 7,701,202
Shares reacquired (45,994,184) (383,575,636) (27,164,945) (228,440,457)
------------ ------------ ----------- ------------
Net increase 168,804 $ 1,479,126 3,032,780 $ 25,529,280
------------ ------------ ----------- ------------
Class B Shares
Six Months Ended June 30, 1999 Year Ended December 31, 1998
------------------------------ ----------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Shares sold 4,844,658 $ 40,359,469 9,867,183 $ 82,888,758
Shares issued to shareholders in
reinvestment of distributions 128,131 1,064,910 170,684 1,432,840
Shares reacquired (4,354,132) (36,247,976) (5,992,436) (50,294,123)
------------ ------------ ----------- ------------
Net increase 618,657 $ 5,176,403 4,045,431 $ 34,027,475
------------ ------------ ----------- ------------
Class C Shares
Six Months Ended June 30, 1999 Year Ended December 31, 1998
------------------------------ ----------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Shares sold 2,394,499 $ 19,913,248 2,517,949 $ 21,107,329
Shares issued to shareholders in
reinvestment of distributions 56,033 464,350 76,670 641,780
Shares reacquired (1,583,676) (13,134,207) (1,869,980) (15,665,854)
------------ ------------ ----------- ------------
Net increase 866,856 $ 7,243,391 724,639 $ 6,083,255
------------ ------------ ----------- ------------
Class I Shares
Six Months Ended June 30, 1999 Year Ended December 31, 1998
------------------------------ ----------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Shares sold 2,723 $ 22,704 161,015 $ 1,345,535
Shares issued to shareholders in
reinvestment of distributions 662 5,506 3,240 26,257
Shares reacquired (1,017) (8,534) (163,802) (1,372,844)
------------ ------------ ----------- ------------
Net increase (decrease) 2,368 $ 19,676 453 $ (1,052)
------------ ------------ ----------- ------------
</TABLE>
(6) Line of Credit
The Fund and other affiliated funds participate in a $820 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 six months ended June 30, 1999, was $1,200. The Fund had
no borrowings during the period.
MFS' Year 2000 Readiness Disclosure
MFS Investment Management(registered trademark), as an investment
adviser and on behalf of the MFS funds, is committed to the effective
use of technology in managing our portfolio investments, delivering
high-quality service to MFS fund shareholders, retirement plan
participants and MFS' institutional clients, and supporting the
financial advisers who sell our products. With that in mind, we
created a separately funded Year 2000 Program Management Office in
1996 comprised of a specialized staff reporting directly to MFS senior
management.
The Year 2000 (Y2K) problem arises because calendar-year fields in
computers and software applications traditionally have used two-digit
codes so that, for example, the year 1998 is coded as "98," with the
"19" being implied. In the year 2000, unless necessary corrections
have been made, computer applications may assume "00" refers to 1900
rather than 2000, thus resulting in systems failures or
miscalculations. To address this issue, our team of dedicated business
and technology managers, working with outside experts, is taking steps
to ascertain the Y2K readiness of MFS' internal systems and is working
with our external systems vendors to determine whether they expect
their systems to be ready.
MFS recognizes that fund shareholders and institutional clients also
are concerned about whether the companies whose securities are held in
their portfolios are addressing Y2K issues. As part of the
MFS(registered trademark) Original ResearchSM process of evaluating
portfolio investments, one of the many relevant factors that MFS'
portfolio managers and research analysts may consider is a company's
Y2K readiness. Each year, MFS' research analysts and portfolio
managers conduct more than 1,000 on-site meetings with companies whose
securities are, or may be, held in fund and client portfolios, and
host an additional 1,500 meetings at MFS' headquarters. When assessing
the Y2K readiness of these companies, MFS' research analysts and
portfolio managers may rely upon discussions at these meetings as well
as SEC disclosure documents and third-party reports.
Y2K readiness is an enormously complex, worldwide issue. No company or
institution can guarantee that it will be unaffected by the Y2K
issue. While MFS is taking significant steps to protect the integrity
of its internal systems, there can be no assurance that these steps
will be sufficient to avoid any adverse impact on MFS, shareholders of
MFS funds, participants in retirement plans administered by MFS, or
MFS' institutional clients.
If you have further questions regarding MFS' Year 2000 Readiness
Program, please visit our Web site at www.mfs.com or contact the MFS
Year 2000 Program Management Office by e-mail at [email protected] or by
letter at 500 Boylston Street, Boston, MA 02116-3741.
MFS Family of Funds(registered trademark)
MFS offers a range of mutual funds to meet investors' varying
financial needs and goals. The funds are placed below in descending
order of the level of risk and reward each one offers in relation to
the others in that asset class1. The objective of the fund you choose
should correspond to your financial needs and goals.
HIGHER RISK/HIGHER REWARD POTENTIAL
B MFS(registered trademark) Global Governments Fund
O MFS(registered trademark) High Yield Opportunities Fund
N MFS(registered trademark) High Income Fund
D MFS(registered trademark) Municipal High Income Fund
MFS(registered trademark) Strategic Income Fund
MFS(registered trademark) Municipal State Funds
F AL, AR, CA, FL, GA, MD, MA, MS,
U NY, NC, PA, SC, TN, VA, WV
N MFS(registered trademark) Municipal Income Fund
D MFS(registered trademark) Bond Fund
S MFS(registered trademark) Municipal Bond Fund
MFS(registered trademark) Government Securities Fund
MFS(registered trademark) Government Mortgage Fund
MFS(registered trademark) Intermediate Income Fund
MFS(registered trademark) Municipal Limited
Maturity Fund
MFS(registered trademark) Limited Maturity Fund
MFS(registered trademark) Government Limited
Maturity Fund
S MFS(registered trademark)/Foreign & Colonial Emerging
T Markets Equity Fund
O MFS(registered trademark) Managed Sectors Fund
C MFS(registered trademark) New Discovery Fund
K MFS(registered trademark) Emerging Growth Fund
MFS(registered trademark) Mid Cap Growth Fund
F MFS(registered trademark) International Growth Fund
U MFS(registered trademark) Research International Fund
N MFS(registered trademark) Global Growth Fund
D MFS(registered trademark) Strategic Growth Fund
S MFS(registered trademark) Research Fund
MFS(registered trademark) International Growth
and Income Fund
MFS(registered trademark) Global Equity Fund
MFS(registered trademark) Capital Opportunities Fund
Massachusetts Investors Growth
Stock Fund
MFS(registered trademark) Growth Opportunities Fund
MFS(registered trademark) Large Cap Growth Fund
MFS(registered trademark) Union Standard(registered trademark) Equity Fund
MFS(registered trademark) Research Growth
and Income Fund
Massachusetts Investors Trust
MFS(registered trademark) Equity Income Fund
MFS(registered trademark) Utilities Fund
MFS(registered trademark) Global Total Return Fund
MFS(registered trademark) Total Return Fund
MFS(registered trademark) Global Asset
Allocation Fund
LOWER RISK/LOWER REWARD POTENTIAL
1For information on the specific risks, charges, and expenses
associated with any MFS fund, refer to the prospectus. Read it
carefully before investing or sending money.
MFS(registered trademark) Government
Limited Maturity Fund
Trustees
Richard B. Bailey* - Private Investor;
Former Chairman and Director (until 1991), MFS Investment Management
Marshall N. Cohan - Private Investor
Lawrence H. Cohn, M.D. - Chief of Cardiac Surgery, Brigham and Women's
Hospital; Professor of Surgery, Harvard Medical School
The Hon. Sir J. David Gibbons, KBE - Chief Executive Officer, Edmund
Gibbons Ltd.; Chairman, Colonial Insurance Company, Ltd.
Abby M. O'Neill - Private Investor
Walter E. Robb, III - President and Treasurer, Benchmark Advisors,
Inc.; President, Benchmark Consulting Group, Inc.
Arnold D. Scott* - Senior Executive Vice President, Director, and
Secretary, MFS Investment Management
Jeffrey L. Shames* - Chairman, Chief Executive Officer, and Director,
MFS Investment Management
J. Dale Sherratt - President, Insight
Resources, Inc.; Managing General Partner, Wellfleet Investments;
Chief Executive Officer, Cambridge Nutraceuticals
Ward Smith - Former Chairman (until 1994), NACCO Industries
Investment Adviser
Massachusetts Financial Services Company
500 Boylston Street
Boston, MA 02116-3741
Distributor
MFS Fund Distributors, Inc.
500 Boylston Street
Boston, MA 02116-3741
Chairman and President
Jeffrey L. Shames*
Portfolio Manager
D. Richard Smith*
Treasurer
W. Thomas London*
Assistant Treasurers
Mark E. Bradley*
Ellen Moynihan*
James O. Yost*
Secretary
Stephen E. Cavan*
Assistant Secretary
James R. Bordewick, Jr.*
Custodian
State Street Bank and Trust Company
Investor Information
For MFS stock and bond market outlooks,
call toll free: 1-800-637-4458 anytime from
a touch-tone telephone.
For information on MFS mutual funds, call your financial adviser or,
for an information kit, call toll free: 1-800-637-2929 any business
day from 9 a.m. to 5 p.m. Eastern time (or leave a message anytime).
Investor Service
MFS Service Center, Inc.
P.O. Box 2281
Boston, MA 02107-9906
For general information, call toll free:
1-800-225-2606 any business day from
8 a.m. to 8 p.m. Eastern time.
For service to speech- or hearing-impaired, call toll free:
1-800-637-6576 any business day from 9 a.m. to 5 p.m. Eastern time.
(To use this service, your phone must be equipped with a
Telecommunications Device for the Deaf.)
For share prices, account balances, and exchanges, call toll free:
1-800-MFS-TALK (1-800-637-8255) anytime from a touch-tone telephone.
World Wide Web
www.mfs.com
*Affiliated with the Investment Adviser
MFS(registered trademark) Government
Limited Maturity Fund
MFS(registered trademark) Investment Management
We invented the mutual fund (registered trademark)
500 Boylston Street
Boston, MA 02116-3741
MGL-3 8/99 15M 28/228/328/828
(copyright)1999 MFS Fund Distributors, Inc.,
500 Boylston Street, Boston, MA 02116-3741
Bulk Rate
U.S. Postage
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