<PAGE>
[LOGO] Semiannual report and
Allocation Update
February 28, 1995
MFS(R) WORLD ASSET ALLOCATION FUND
<PAGE>
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MFS(R) WORLD ASSET ALLOCATION FUND
TRUSTEES SECRETARY
A. Keith Brodkin* - Chairman and President Stephen E. Cavan*
Richard B. Bailey* - Private Investor; ASSISTANT SECRETARY
Former Chairman and Director (until 1991), James R. Bordewick, Jr.*
Massachusetts Financial Services Company
CUSTODIAN
Marshall N. Cohan - Private Investor Investors Bank & Trust Company
Lawrence H. Cohn, M.D. - Chief of Cardiac Surgery, AUDITORS
Brigham and Women's Hospital; Professor of Ernst & Young LLP
Surgery, Harvard Medical School
INVESTOR INFORMATION
The Hon. Sir J. David Gibbons, KBE - Chief For MFS stock and bond market outlooks,
Executive Officer, Edmund Gibbons Ltd.; call toll-free: 1-800-637-4458 anytime from
Chairman, Bank of N.T. Butterfield & Son Ltd. a touch-tone telephone.
Abby M. O'Neill - Private Investor; For information on MFS mutual funds,
Director, Rockefeller Financial Services, Inc. call your financial adviser or, for an
(Investment Advisers) information kit, call toll-free:
1-800-637-2929 any business day from
Walter E. Robb, III - President and Treasurer, 9 a.m. to 5 p.m. Eastern time (or leave
Benchmark Advisors, Inc. (Corporate Financial a message anytime).
Consultants)
INVESTOR SERVICE
Arnold D. Scott* - Senior Executive Vice President and MFS Service Center, Inc.
Secretary, Massachusetts Financial Services P.O. Box 2281
Company Boston, MA 02107-9906
Jeffrey L. Shames* - President and Chief Equity For general information, call toll free:
Officer, Massachusetts Financial Services Company 1-800-225-2606 any business day from
8 a.m. to 8 p.m. Eastern time.
J. Dale Sherratt - President, Insight Resources, Inc.
(Acquisition Planning Specialists) For service to speech- or hearing-impaired,
call toll free: 1-800-637-6576 any business
Ward Smith - Former Chairman (until 1994), day from 9 a.m. to 5 p.m. Eastern time.
NACCO Industries; Director, Sundstrand (To use this service, your phone must be
Corporation equipped with a Telecommunications
Device for the Deaf.)
INVESTMENT ADVISER
Massachusetts Financial Services Company For share prices, account balances and
500 Boylston Street exchanges, call toll free: 1-800-MFS-TALK
Boston, Massachusetts 02116-3741 (1-800-637-8255) anytime from a touch-tone
telephone.
ASSET ALLOCATION COMMITTEE
A. Keith Brodkin* TOP RATED SERVICE
Jeffrey L. Shames* [LOGO] MFS was rated first when securities
John W. Ballen* firms evaluated the quality of service
Leslie J. Nanberg* they receive from 40 mutual fund
James T. Swanson* companies. MFS got high marks for
answering calls quickly, processing
TREASURER transactions accurately and sending
W. Thomas London* statements out on time.
(Source: 1994 DALBAR Survey)
ASSISTANT TREASURER
James O. Yost*
*Affiliated with the Investment Adviser
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LETTER TO SHAREHOLDERS
Dear Shareholders:
During the past six months, investment capital has migrated to the core bond and
stock markets of Europe and the United States in response to the volatility and
turmoil which characterized international markets. Since the Fund concentrates
its assets in these larger-capitalized core markets, it has avoided much of the
recent declines in the non-core markets. During the six months ended February
28, 1995, Class A shares of the Fund experienced a total return of -1.17%, Class
B shares -1.52%, and Class C shares -1.50%. All of these returns assume the
reinvestment of distributions but exclude the effects of any sales charges.
We continue to overweight bonds relative to stocks because of the
attractive high real (adjusted for inflation) rates of return available in world
bond markets. Although our bond allocation of 45% of the Fund's net assets has
remained relatively constant, we have adjusted weightings among the various bond
sectors. Our allocations also reflect a degree of caution toward many of the
world's equity markets, and we remain underweighted in stocks at 55% relative to
our neutral stance of 65%. This caution is reflective of our view that the U.S.
economy may be approaching a slower growth phase while overseas economies are
entering a period of accelerating growth. Currently, international equities
represent 40% of the Fund's total net assets, while international bonds comprise
16%. Many of these investments have been made in non-U.S. currencies, allowing
the Fund to benefit from the recent fall of the U.S. dollar. The domestic bond
position is comprised of 15% corporate high- yield bonds and 10% U.S.
Treasuries, with only a modest position in cash and cash equivalents at this
time. We continue to evaluate the Fund's asset mix on a monthly basis and will
change the composition of the portfolio whenever our views on the markets
change. The current strategy of the managers of each sector in the portfolio may
be found on the following pages.
We appreciate your support and welcome any questions or comments you may
have.
Respectfully,
- -------------------- ---------------
A 1 1/2 inch by A 1 1/2 inch by
1 5/8 inch photo of 1 5/8 inch photo of
A. Keith Bodkin, James T.Swanson on behalf
Chairman and of the Asset Allocation
President Committee
- -------------------- ---------------
A. Keith Brodkin James T. Swanson
Chairman and President On behalf of the Asset Allocation
Committee
March 9, 1995
<PAGE>
PORTFOLIO ALLOCATION AS OF FEBRUARY 28, 1995
Previous Quarter
U.S. Stocks 14.4%
International Stocks 37.7%
High Yield Corporate Bonds 13.9%
International Bonds 17.6%
Municipal Bonds 4.3%
Cash 12.1%
Current Quarter
U.S. Stocks 15.5%
International Stocks 38.5%
High Yield Corporate Bonds 15.1%
International Bonds 16.1%
U.S. Government Bonds 9.3%
Cash 5.5%
U.S. STOCK MARKET -- 15.5%
During the past two months the U.S. stock market has rebounded from its
uninspiring performance in 1994, responding to growing confidence that the
Federal Reserve Board is nearing the end of its tightening initiatives. Although
we expect the economy to slow in 1995, our outlook for corporate earnings growth
remains favorable. Despite the potential impact on the growth rates of corporate
profits from a slowing economy, we believe stock prices will respond to
continued growth in profitability.
Our present holdings in U.S. equities range across a variety of industries and
incorporate both value and growth strategies. Our top three sectors are
currently technology (16%), health care (14%) and leisure (10%). -- John Ballen
and John Brennan
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FIVE LARGEST HOLDINGS
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Promus Cos., Inc. (Entertainment) 0.7%
- -------------------------------------------------------------------------------------------------------------
Boise Cascade Corp. (Forest and Paper Products) 0.7%
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First Interstate Bancorp. (Banks and Credit Companies) 0.6%
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Brinker International, Inc. (Restaurants and Lodging) 0.6%
- -------------------------------------------------------------------------------------------------------------
Living Centers of America, Inc. (Medical and Health Technology and Services) 0.6%
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INTERNATIONAL STOCK MARKETS -- 38.5%
Economic growth in Europe continues to improve and the outlook for earnings is
favorable. Valuations remain reasonable and emphasis continues to be on
companies characterized as steady earners. The Japanese market has been
disappointing following the Kobe earthquake. Damage is expected to impact
Japan's gross domestic product growth by one to two percent during the first
half of the year, with steady improvement thereafter. While corporate earnings
may be slightly impacted, the stock market impact should be short-lived.
Therefore, approximately 21% of this portion of the portfolio is invested in
Japan.
Most emerging markets continue to experience significant volatility. The
Southeast Asian markets such as Hong Kong have also come under severe pressure
in light of rising U.S. interest rates and political uncertainty. While we
expect continued near-term volatility in these markets, we believe that the
economic growth potential for many of these economies is impressive.
At the end of February, approximately 54% of our international stock holdings
was invested in Europe, 42% in Asia/Pacific and 4% in the Americas. The largest
individual country exposures were in Japan (21%), Sweden (13%) and the United
Kingdom (11%). Approximately 11% of our international investments is in emerging
markets, with Southeast Asia representing 10%. -- David Mannheim
FIVE LARGEST HOLDINGS
- ------------------------------------------------------------------------------
Astra AB (Pharmaceuticals - Sweden) 1.4%
- ------------------------------------------------------------------------------
Seven Network Ltd. (Entertainment - Australia) 1.1%
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National Mutual Asia Ltd. (Insurance - Hong Kong) 1.0%
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Rogers Communications, Inc. (Telecommunications - Canada) 1.0%
- ------------------------------------------------------------------------------
Lion Nathan Ltd. (Food and Beverages - New Zealand) 1.0%
- ------------------------------------------------------------------------------
U.S. GOVERNMENT BOND MARKET -- 9.3%
Despite a stronger U.S. economy, inflation at the consumer level has remained
relatively benign at 2.7% in 1994, the fourth straight year of 3% or less. With
the economy continuing to expand, however, we expect some upward movement in
inflation from below 3% to the 3 1/2% range. We do not expect the Federal
Reserve to raise short-term rates in the near term for domestic policy reasons
unless it concludes that current efforts have failed to dampen inflationary
expectations. We also believe that fundamentals are favorable for lower long-
term rates later on this year as economic growth begins to slow. Because of
this, we have become more positive on the U.S. bond market and currently have
approximately 10% of the Fund's total net assets invested in U.S. government
securities. -- Geoffrey Kurinsky
LARGEST HOLDINGS
- --------------------------------------------------------------------------------
Federal National Mortgage Association 4.7%
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U.S. Treasury Note 4.6%
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HIGH-YIELD CORPORATE BOND MARKET -- 15.1%
The high-yield portion of the portfolio remains heavily weighted in bonds of
economically sensitive companies. Many companies in the steel, chemical and
paper industries are benefiting from both higher production and improved
pricing. Holdings in the portfolio such as Wolverine Tube, Stone Container and
Uniroyal Chemical are benefiting from these trends. Improved volume, prices and
cash flow should lead to an improvement in credit quality as these issuers are
able to deleverage. We continue to avoid some of the riskier issuers which have
come to market during the past year. -- Joan Batchelder
<PAGE>
HIGH-YIELD CORPORATE BOND MARKET - CONTINUED
FIVE LARGEST HOLDINGS
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Wolverine Tube, Inc. (Special Products and Services) 0.8%
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K-III Communications Corp. (Telecommunications) 0.6%
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IMO Industries, Inc. (Special Products and Services) 0.6%
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Finlay Enterprises, Inc. (Stores) 0.5%
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American Standard, Inc. (Building) 0.5%
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INTERNATIONAL BOND MARKET -- 16.1%
International bond and currency markets are focused on policy responses to
global growth and inflation. As compared to six months ago, 10-year yields are
generally unchanged to slightly higher, while short-term interest rates have
risen in response to actual and anticipated official rate hikes. Countries with
high fiscal deficits, heavy debt burdens, and/or political impediments to
appropriately restrictive policies have suffered continued widening of yield
spreads and depreciation of their currencies. The U.S. dollar has continued its
long-run depreciation against the deutsche mark and the yen.
Our portfolio posture remains somewhat defensive. While global interest rates
appear to have stabilized, the market remains wary of inflationary pressures.
Any less-than-credible policy responses are likely to result in further yield-
spread widening and currency depreciation. Hence, the portfolio remains
concentrated in short- to intermediate-term maturities and emphasizes countries
which the market perceives to have more credible monetary and fiscal policies,
such as Germany, Japan, New Zealand and the United Kingdom. Similarly, the
portfolio has a 90% exposure to European and Japanese currencies, with heavy
emphasis on the deutsche mark. -- Leslie Nanberg
FIVE LARGEST HOLDINGS
- ------------------------------------------------------------------------------
Treuhandanstalt Obligationen (Germany) 2.9%
- ------------------------------------------------------------------------------
Government of New Zealand (New Zealand) 2.0%
- ------------------------------------------------------------------------------
United Kingdom Treasury (United Kingdom) 1.5%
- ------------------------------------------------------------------------------
Deutschland Republic (Germany) 1.4%
- ------------------------------------------------------------------------------
United Mexican States (Mexico) 1.2%
- ------------------------------------------------------------------------------
OBJECTIVE AND POLICIES
The Fund's investment objective is to seek total return over the long term
through investments in equity and fixed-income securities. The Fund will also
seek to have low volatility of share price (i.e., net asset value per share) and
reduced risk (compared to an aggressive equity or fixed-income fund).
The Fund seeks to achieve its objective by allocating portfolio assets among
various asset classes of equity and fixed-income securities where the
opportunities for total return are expected to be most attractive. Under normal
circumstances, the Fund intends to invest at least 30% of its total assets in
equity securities and allocate its assets among at least three asset classes.
The assets will be allocated among some or all of the following five classes of
securities: U.S. equity securities, foreign equity securities, U.S.
investment-grade fixed-income securities, U.S. high-yield fixed-income
securities and foreign fixed-income securities.
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INVESTMENT PERSONNEL PROFILES
The Asset Allocation Committee consists of Messrs. Swanson, Ballen and Nanberg
as well as A. Keith Brodkin and Jeffrey Shames, Chairman and President of MFS,
respectively. The individuals responsible for managing the assets in the asset
classes are as follows:
James Swanson joined the MFS investment staff in 1985. A graduate of Colgate
University and the Harvard University Graduate School of Business
Administration, he began his career at MFS as Vice President - Investments and
was named Senior Vice President in 1989. Mr. Swanson supervises quantitative
support and provides oversight of the Fund's investments.
John Ballen began his career at MFS in 1984 as an industry specialist. A
graduate of Harvard College, the University of New South Wales and the Stanford
University Graduate School of Business Administration, he was promoted to
Investment Officer in 1986, Vice President - Investments in 1987, Director of
Research in 1988 and Senior Vice President in 1990. In 1993, he became Director
of Equity Portfolio Management. Mr. Ballen, along with Mr. Brennan, manages the
U.S. equity securities.
Joan Batchelder rejoined MFS in October of 1983 after three years with a leading
investment counsel firm. She first joined MFS in 1978 and that year was named an
Investment Officer in the Fixed Income Department. A graduate of Colorado
College and recipient of a Master's Degree from the Maxwell School of Syracuse
University, she was appointed Assistant Vice President - Investments in 1979,
Vice President - Investments in 1980 and Senior Vice President in 1983. Ms.
Batchelder manages the U.S. high-yield fixed-income securities.
John Brennan joined the MFS investment staff in 1985. A graduate of the
University of Rhode Island and the Stanford University Graduate School of
Business Administration, he began his career at MFS as an industry specialist
and was promoted to Assistant Vice President - Investments in 1987. In 1988, he
was named Vice President - Investments and in 1991 he became Senior Vice
President. Mr. Brennan, along with Mr. Ballen, manages the U.S. equity
securities.
Geoff Kurinsky began his career at MFS in 1987 in the Fixed Income Department. A
graduate of the University of Massachusetts and Boston University's Graduate
School of Management, he was named Assistant Vice President in 1988, Vice
President in 1989 and Senior Vice President in 1993. Mr. Kurinsky manages the
U.S. investment-grade fixed-income securities.
David Mannheim began his career at MFS in 1988 as a research specialist and was
promoted to Assistant Vice President - Investments in 1991. In 1992, he was
named Vice President - Investments. Mr. Mannheim is a graduate of Amherst
College and of Massachusetts Institute of Technology's Sloan School of
Management. He manages the foreign equity securities.
Leslie Nanberg joined the MFS Fixed Income Department in 1980. A graduate of the
University of Illinois with graduate degrees from Northwestern University and
the Northwestern University Graduate School of Management, he was named
Assistant Vice President - Investments in 1981, Vice President - Investments in
1983 and Senior Vice President in 1986. In addition to serving as head of the
MFS International Fixed Income Department, he has senior responsibility for all
fixed-income assets under MFS management. Mr. Nanberg manages the foreign
fixed-income securities.
<PAGE>
Portfolio of Investments - February 28, 1995
Common Stocks and Warrants - 54.0%
- --------------------------------------------------------------------------------
Issuer Shares Value
- --------------------------------------------------------------------------------
Foreign Stocks and Warrants - 38.5%
Argentina - 0.1%
Mirgor Sacifia, ADR (Auto Parts)*+ 23,750 $ 63,650
- --------------------------------------------------------------------------------
Australia - 2.8%
Australia & New Zealand Bank
Group Ltd. (Finance) 326,823 $1,147,672
Seven Network Ltd. (Entertainment) 618,000 1,375,174
Woolworths Ltd. (Retail) 484,000 1,084,160
----------
$3,607,006
- --------------------------------------------------------------------------------
Canada - 1.5%
Avenor, Inc. (Forest and Paper Products)* 33,000 $ 676,276
Rogers Communications, Inc., "B"
(Telecommunications)* 101,000 1,261,864
----------
$1,938,140
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Chile - 0.1%
Administradora de Fondos de Pensiones
Provida S.A., ADR (Finance)* 12,100 $ 172,425
- --------------------------------------------------------------------------------
Finland - 1.1%
Aamulehti Yhtymae Oy II (Publishing)* 30,000 $ 557,820
Kesko Oy Osake (Retail) 74,000 828,193
----------
$1,386,013
- --------------------------------------------------------------------------------
France - 3.1%
Essilor International (Medical
and Health Products) 7,500 $1,060,458
Essilor International, ADP
(Medical and Health Products) 4,425 457,412
LVMH Moet-Hennessy (Food and Beverages) 5,800 927,547
Michelin, "B" (Tire and Rubber)* 16,000 640,000
Total S.A., "B" (Oils) 17,400 962,726
----------
$4,048,143
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Germany - 2.4%
Basf AG (Chemicals) 5,000 $1,096,416
Hornbach Baumarkt AG (Retail)+
1,670 989,892
Schering AG (Pharmaceuticals) 630 481,793
Volkswagen AG (Automotive) 1,900 514,938
----------
$3,083,039
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Hong Kong - 3.6%
Consolidated Electric Power-Asia
(Utilities - Electric)* 295,000 $ 614,338
National Mutual Asia Ltd. (Insurance) 1,982,000 1,281,759
Peregrine Investment Holding (Finance) 343,000 419,249
Television Broadcasting Ltd.
(Broadcasting) * 138,000 519,432
Varitronix International Ltd.
(Manufacturing) 365,000 533,484
Wharf Holdings Ltd. (Conglomerate) 357,000 1,228,294
----------
$4,596,556
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Italy
Arnoldo Mondadori Editore (Publishing) * 9,100 $ 58,400
----------
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Japan - 8.0%
Asatsu, Inc. (Advertising) 15,000 $ 520,185
Bridgestone Corp. (Tire and Rubber) 53,000 724,219
DAI Nippon Printing Co. Ltd. (Printing) 64,000 947,411
DDI Corp. (Telecommunications) 150 1,113,354
Daiwa House Industrial Co. (Housing) 42,000 613,040
East Japan Railway Co. (Railroads) 240 1,058,385
Kinki Coca-Cola Bottling (Food and
Beverages) 54,000 609,314
MOS Food Services (Restaurants and
Lodging) 34,000 1,020,704
Matsushita Electric Industrial Co.
(Electrical Equipment) 52,000 753,620
Nippondenso Co. Ltd. (Auto Parts) 38,000 672,668
<PAGE>
Common Stocks and Warrants - continued
- --------------------------------------------------------------------------------
Issuer Shares Value
- --------------------------------------------------------------------------------
Foreign Stocks and Warrants - continued
Japan - continued
Nissan Motor Co. Ltd. (Automotive) 101,000 $ 691,103
Nissen Corp. (Retail) 30,800 771,592
Osaka Sanso Kogyo (Chemicals) 222,000 836,518
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$10,332,113
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Netherlands - 1.8%
Getronics NV (Computer Software - Services) 33,500 $ 1,242,408
Royal Dutch Petroleum Co. (Oils) 9,000 1,013,991
-----------
$ 2,256,399
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New Zealand - 1.0%
Lion Nathan Ltd. (Food and Beverages) 657,000 $ 1,248,629
- --------------------------------------------------------------------------------
South Korea - 0.6%
Korea Electric Power Corp., ADR
(Utilities - Electric) 42,000 $ 787,500
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Spain - 2.2%
Acerinox (Iron and Steel) 10,800 $ 1,144,175
Cubiertas Y Mzov S.A. (Engineering -
Construction)* 14,000 788,115
Fabrica Autom Renault De Esp
(Automotive)* 5,400 157,482
Iberdrola (Utilities - Electric) 121,000 756,831
-----------
$ 2,846,603
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Sweden - 5.2%
Asea AB, "B" (Electrical Equipment) 15,200 $ 1,144,306
Astra AB, "B" (Pharmaceuticals) 72,000 1,782,245
Hennes & Mauritz AB, "B" (Retail) 20,600 1,213,696
Marieberg Tidnings, "A" (Publishing) 29,000 692,140
Skandinaviska Enskilda Banken,
"A" (Banks and Credit Cos.) 131,000 716,426
TV 4 AB (Broadcasting) 47,400 1,079,578
-----------
$ 6,628,391
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Switzerland - 0.9%
CS Holdings, Registered Shares (Finance) 9,200 $ 762,945
Publicitas (Advertising)* 440 377,346
-----------
$ 1,140,291
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United Kingdom - 4.1%
Asda Group PLC (Supermarkets) 930,000 $ 998,820
British Steel PLC (Iron and Steel) 320,000 809,120
Invesco Fund Managers (Finance) 325,000 860,405
PowerGen PLC (Utilities - Electric) 75,000 590,918
Storehouse PLC (Retail) 317,000 1,118,122
Takare PLC (Medical and Health
Technology and Services)+
317,100 939,980
-----------
$ 5,317,365
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Total Foreign Stocks and Warrants $49,510,663
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U.S. Common Stocks and Warrants - 15.5%
Automotive - 0.6%
General Motors Corp. 17,000 $ 724,625
- --------------------------------------------------------------------------------
Banks and Credit Companies - 0.6%
First Interstate Bancorp. 10,000 $ 813,750
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Cellular Phones - 0.5%
AirTouch Communications, Inc.* 25,000 $ 681,250
<PAGE>
Common Stocks and Warrants - continued
- --------------------------------------------------------------------------------
Issuer Shares Value
- --------------------------------------------------------------------------------
U.S. Common Stocks and Warrants - continued
Chemicals - 0.7%
Grace (W.R.) & Co. 15,800 $ 711,000
Methanex Corp.* 13,200 138,600
OSI Specialties Holdings, Inc., Warrants* 1,000 1,500
-----------
$ 851,100
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Computer Software - Personal Computers - 0.8%
Autodesk, Inc. 9,600 $ 376,800
Microsoft Corp.* 10,500 661,500
-----------
$ 1,038,300
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Computer Software - Systems - 1.1%
BMC Software, Inc. * 10,000 $ 642,500
Compuware Corp.* 8,000 294,000
Sybase, Inc.* 12,300 501,225
----------
$1,437,725
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Consumer Goods and Services - 1.3%
Philip Morris Cos., Inc. 11,000 $ 668,250
RJR Nabisco Holdings Group, Inc. 110,000 618,750
Tyco International Ltd. 7,200 374,967
----------
$1,661,967
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Defense Electronics - 0.3%
Loral Corp. 10,000 $ 408,750
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Electrical Equipment - 0.3%
Honeywell, Inc. 10,000 $ 363,750
- --------------------------------------------------------------------------------
Entertainment - 0.9%
Grand Casinos, Inc.* 18,600 $ 297,600
Promus Cos., Inc.* 25,000 893,750
----------
$1,191,350
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Financial Institutions - 1.0%
Federal Home Loan Mortgage Corp. 13,000 $ 754,000
Student Loan Marketing Assn. 15,000 553,125
----------
$1,307,125
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Food and Beverage Products - 0.5%
PepsiCo, Inc. 15,000 $ 586,875
- --------------------------------------------------------------------------------
Forest and Paper Products - 1.0%
Boise Cascade Corp. 27,000 $ 867,375
Willamette Industries, Inc. 7,000 376,250
----------
$1,243,625
- --------------------------------------------------------------------------------
Medical and Health Products - 0.4%
Sofamor Danek Group, Inc. 26,700 $ 557,362
- --------------------------------------------------------------------------------
Medical and Health Technology and Services - 1.8%
Integrated Health Services, Inc. 19,000 $ 726,750
Living Centers of America, Inc.* 21,600 785,700
Pacificare Health Systems, Inc., "A" * 2,000 138,500
Pacificare Health Systems, Inc., "B" * 9,100 639,275
----------
$2,290,225
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Oils
Newfield Exploration Co.* 2,000 $ 39,000
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Photographic Products - 0.3%
Eastman Kodak Co. 8,000 $ 408,000
<PAGE>
Common Stocks and Warrants - continued
- --------------------------------------------------------------------------------
Issuer Shares Value
- --------------------------------------------------------------------------------
U.S. Common Stocks and Warrants - continued
Pollution Control - 0.5%
WMX Technologies, Inc. 23,000 $ 606,625
- --------------------------------------------------------------------------------
Railroads - 0.9%
CSX Corp. 10,000 $ 777,500
Wisconsin Central Transportation Corp.* 7,600 345,800
-----------
$ 1,123,300
- --------------------------------------------------------------------------------
Restaurants and Lodging - 0.6%
Brinker International, Inc.* 40,000 $ 795,000
- --------------------------------------------------------------------------------
Retail - 0.6%
Dayton-Hudson Corp. 5,000 $ 352,500
Federated Department Stores, Inc.* 20,000 440,000
-----------
$ 792,500
- --------------------------------------------------------------------------------
Special Products and Services - 0.2%
Stanley Works 4,800 $ 193,800
- --------------------------------------------------------------------------------
Telecommunications - 0.6%
Cisco Systems, Inc.* 21,000 $ 708,750
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Total U.S. Common Stocks and Warrants $19,824,754
- --------------------------------------------------------------------------------
Total Common Stocks and
Warrants (Identified Cost, $70,642,926) $69,335,417
- --------------------------------------------------------------------------------
Bonds - 40.5%
- --------------------------------------------------------------------------------
Principal Amount
(000 Omitted)
- --------------------------------------------------------------------------------
Foreign - Non-U.S. Dollar Denominated - 14.9%
Australia - 1.0%
Australian Government, 12s, 1999 AUD 1,100 $ 882,355
West Australian Treasury, 9s, 1999 375 270,165
West Australian Treasury, 10s, 2005 250 180,944
-----------
$ 1,333,464
- --------------------------------------------------------------------------------
Denmark - 1.1%
Kingdom of Denmark, 9s, 1998 DKK 4,300 $ 755,674
Kingdom of Denmark, 9s, 2000 4,000 700,679
-----------
$ 1,456,353
- --------------------------------------------------------------------------------
France - 1.2%
Government of France, 6.5s, 1996 FRF 2,600 $ 501,745
Government of France, 8s, 1998 3,810 753,826
Government of France, 7s, 1999 1,330 252,512
-----------
$ 1,508,083
- --------------------------------------------------------------------------------
Germany - 5.1%
Deutschland Republic, 6.5s, 2003 DEM 2,762 $ 1,787,644
Treuhandanstalt Obligationen, 6.375s, 1999 1,557 1,046,144
Treuhandanstalt Obligationen, 7.75s, 2002 5,400 3,776,263
-----------
$ 6,610,051
- --------------------------------------------------------------------------------
Ireland - 0.6%
Republic of Ireland, 9.75s, 1998 IEP 440 $ 714,787
- --------------------------------------------------------------------------------
Italy - 0.4%
Republic of Italy, 10s, 1996 ITL 405,000 $ 241,461
Republic of Italy, 8.5s, 1999 415,000 221,267
- --------------------------------------------------------------------------------
$ 462,728
<PAGE>
Bonds - continued
- --------------------------------------------------------------------------------
Principal Amount
Issuer (000 Omitted) Value
- --------------------------------------------------------------------------------
Foreign - Non-U.S. Dollar Denominated - continued
Netherlands - 1.0%
Dutch State Loan, 6.25s, 1998 NLG 1,510 $ 905,797
Dutch State Loan, 7.5s, 1999 580 361,105
-------------
$ 1,266,902
- --------------------------------------------------------------------------------
New Zealand - 2.0%
Government of New Zealand, 8s, 1995 NZD 4,175 $ 2,621,059
- --------------------------------------------------------------------------------
Spain - 0.4%
Government of Spain, 7.4s, 1999 ESP 78,000 $ 522,094
- --------------------------------------------------------------------------------
United Kingdom - 2.1%
United Kingdom Gilts, 9.5s, 1999 GBP 1,150 $ 1,934,194
United Kingdom Treasury, 10.25s, 1999 450 735,678
-----------
$ 2,669,872
- --------------------------------------------------------------------------------
Total Foreign - Non-U.S. Dollar Denominated $19,165,393
- --------------------------------------------------------------------------------
Foreign - U.S. Dollar Denominated - 1.2%
Mexico
United Mexican States, 6.77s, 2019 $2,500 $1,543,750
United Mexican States, Value Recovery Rights 3,846 0
----------
$1,543,750
- --------------------------------------------------------------------------------
U.S. Dollar Denominated - 24.4%
Building - 0.9%
American Standard, Inc., 0s, 2005 $1,000 $ 681,250
USG Corp., 9.25s, 2001 500 490,000
----------
$1,171,250
- --------------------------------------------------------------------------------
Chemicals - 1.5%
Arcadian Partners L.P., 10.75s, 2005+ $ 295 $ 291,312
Huntsman Corp., 10.625s, 2001 500 520,000
OSI Specialties Holdings Co., 0s, 2004 1,000 650,000
UCC Investors Holdings, Inc., 10.5s, 2002 500 500,000
----------
$1,961,312
- --------------------------------------------------------------------------------
Consumer Goods and Services - 0.8%
Fieldcrest Cannon, Inc., 11.25s, 2004 $ 500 $ 513,750
Westpoint Stevens, Inc., 9.375s, 2005 500 465,000
----------
$ 978,750
- --------------------------------------------------------------------------------
Containers - 1.7%
Container Corp. of America, 10.75s, 2002 $ 500 $ 510,000
Gaylord Container Co., 0s, 2005 200 185,000
Owens-Illinois, Inc., 11s, 2003 500 536,250
Riverwood International Corp.,
11.25s, 2002 500 525,000
Stone Container Corp., 9.875s, 2001 500 488,750
----------
$2,245,000
- --------------------------------------------------------------------------------
Entertainment - 0.4%
SCI Television, Inc., 11s, 2005 $ 500 $ 512,500
- --------------------------------------------------------------------------------
Financial Institutions - 0.4%
American Annuity Group, Inc.,
11.125s, 2003 $ 500 $ 510,000
- --------------------------------------------------------------------------------
Medical and Health Products - 0.1%
National Medical Enterprises,
10.125s, 2005 $ 100 $ 102,125
- --------------------------------------------------------------------------------
<PAGE>
Bonds - continued
- --------------------------------------------------------------------------------
Principal Amount
Issuer (000 Omitted) Value
- --------------------------------------------------------------------------------
U.S. Dollar Denominated - continued
Medical and Health Technology and Services - 0.8%
Community Health System, 10.25s, 2003 $ 500 $ 507,500
Integrated Health Services, Inc.,
10.75s, 2004 500 515,000
----------
$1,022,500
- --------------------------------------------------------------------------------
Oil Services - 0.2%
Global Marine, Inc., 12.75s, 1999 $ 300 $ 321,750
- --------------------------------------------------------------------------------
Oils - 0.4%
Gulf Canada, 9.25s, 2004 $ 500 $ 472,500
- --------------------------------------------------------------------------------
Printing and Publishing - 0.4%
World Color Press, Inc., 9.125s, 2003 $ 500 $ 466,250
- --------------------------------------------------------------------------------
Special Products and Services - 2.5%
Eagle Industries, Inc., 0s, 2003 $ 1,000 $ 660,000
IMO Industries, Inc., 12s, 2001 750 765,000
Mark IV Industries, Inc., 8.75s, 2003 250 237,500
Polymer Group, Inc., 12.25s, 2002 500 495,000
Wolverine Tube, Inc., 10.125s, 2002 1,000 1,030,000
----------
$3,187,500
- --------------------------------------------------------------------------------
Steel - 0.7%
AK Steel Holdings Corp., 10.75s, 2004 $ 500 $ 511,250
Wheeling Pittsburgh, 9.375s, 2003 500 442,500
----------
$ 953,750
- --------------------------------------------------------------------------------
Stores - 1.1%
Finlay Enterprises, Inc., 0s, 2005 $ 1,100 $ 704,000
Payless Cashways, Inc., 9.125s, 2003 750 675,000
----------
$1,379,000
- --------------------------------------------------------------------------------
Supermarkets - 0.4%
Ralphs Grocery Co., 10.25s, 2002 $ 500 $ 492,500
- --------------------------------------------------------------------------------
Telecommunications - 2.4%
Cablevision Industries Corp.,
10.75s, 2002 $ 500 $ 521,250
Jones Intercable, Inc., 10.5s, 2008 500 512,500
K-III Communications Corp., 10.625s, 2002 750 768,750
MFS Communications, Inc., 0s, 2004 1,000 635,000
Paging Network, Inc., 8.875s, 2006 750 652,500
----------
$3,090,000
- --------------------------------------------------------------------------------
Utilities - Electric - 0.4%
Kenetech Corp., 12.75s, 2002 $ 500 $ 527,500
- --------------------------------------------------------------------------------
U.S. Treasury Obligations - 4.6%
U.S. Treasury Note, 7.5s, 2005 $ 5,800 $5,916,000
- --------------------------------------------------------------------------------
Federal National Mortgage Association - 4.7%
FNMA, 8.5s, 2025(S)(S) $ 6,000 $6,077,400
- --------------------------------------------------------------------------------
Total U.S. Dollar Denominated $ 31,387,587
- --------------------------------------------------------------------------------
Total Bonds (Identified Cost, $51,310,948) $ 52,096,730
- --------------------------------------------------------------------------------
<PAGE>
Portfolio of Investments - continued
Call Options Purchased - 0.1%
- --------------------------------------------------------------------------------
Principal Amount
Description/Expiration of Contracts
Month/Strike Price (000 Omitted) Value
- --------------------------------------------------------------------------------
Deutsche Marks
March/1.55 DEM 17,887 $ 0
Italian Lire/Deutsche Marks
March/1070 ITL 501,575 0
Japanese Government Bonds
March/105.648 JPY 256,000 47,360
July/103.937 132,000 36,960
August/100.304 65,000 9,165
August/100.97 187,000 20,009
- --------------------------------------------------------------------------------
Total Call Options Purchased (Premiums Paid, $130,590) $113,494
- --------------------------------------------------------------------------------
Put Options Purchased
- --------------------------------------------------------------------------------
Deutsche Marks
March/1.4816 DEM 1,792 $ 1,588
Swiss Francs/Deutsche Marks
March/0.85 CHF 1,258 742
- --------------------------------------------------------------------------------
Total Put Options Purchased (Premiums Paid, $10,924) $ 2,330
- --------------------------------------------------------------------------------
Short-Term Obligations - 9.8%
- --------------------------------------------------------------------------------
Principal Amount
Issuer (000 Omitted)
- --------------------------------------------------------------------------------
Dow Chemical, due 3/01/95 $2,525 $2,525,000
Federal Home Loan Bank, due 3/30/95 2,506 2,494,110
Federal Home Loan Mortgage Corp.,
due 3/03/95 2,500 2,499,183
Federal Home Loan Mortgage Corp.,
due 3/06/95 1,125 1,124,086
GTE Southwest, Inc., due 3/09/95 3,940 3,934,776
- --------------------------------------------------------------------------------
Total Short-Term Obligations, at Amortized Cost $ 12,577,155
- --------------------------------------------------------------------------------
Total Investments (Identified Cost, $134,672,543) $134,125,126
- --------------------------------------------------------------------------------
Call Options Written
- --------------------------------------------------------------------------------
Principal Amount
Description/Expiration of Contracts
Month/Strike Price (000 Omitted)
- --------------------------------------------------------------------------------
Deutsche Marks
March/1.455 DEM 1,760 $(5,722)
Swiss Francs/Deutsche Marks
March/0.8378 CHF 1,258 (91)
- --------------------------------------------------------------------------------
Total Call Options Written (Premiums Received, $10,923) $ (5,813)
- --------------------------------------------------------------------------------
<PAGE>
Portfolio of Investments - continued
Put Options Written
- --------------------------------------------------------------------------------
Principal Amount
Description/Expiration of Contracts
Month/Strike Price (000 Omitted) Value
- --------------------------------------------------------------------------------
Australian Dollars
May/0.74 AUD 770 $(11,205)
Japanese Bonds
July/103.937 JPY 132,000 (4,224)
August/100.97 187,000 (26,741)
August/100.304 65,000 (7,150)
- --------------------------------------------------------------------------------
Total Put Options Written (Premiums Received, $58,365) $(49,320)
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities - (4.4)% $(5,717,924)
- --------------------------------------------------------------------------------
Net Assets - 100.0% $128,352,069
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Restricted security - SEC Rule 144A.
(S)(S) When-issued security. At February 28, 1995, the Fund had sufficient cash
and/or securities at least equal to the value of the when-issued
security.
Abbreviations have been used throughout this report to indicate amounts shown in
currencies other than the U.S. dollar. A list of abbreviations is shown below.
AUD = Australian Dollars
CHF = Swiss Francs
DEM = Deutsche Marks
DKK = Danish Kroner
ESP = Spanish Pesetas
FRF = French Francs
GBP = British Pounds
IEP = Irish Punts
ITL = Italian Lire
JPY = Japanese Yen
NLG = Dutch Guilders
NZD = New Zealand Dollars
SEK = Swedish Kronor
See notes to financial statements
<PAGE>
Financial Statements
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
February 28, 1995
- --------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $134,672,543) $ 134,125,126
Cash 115,983
Net receivable for forward foreign
currency exchange contracts purchased 2,312,994
Net receivable for forward foreign currency contracts 89,554
Premium receivable on options written 23,205
Receivable for Fund shares sold 418,836
Receivable for investments sold 1,950,228
Interest and dividends receivable 1,204,589
Deferred organizational expenses 30,913
-------------
Total assets $ 140,271,428
-------------
Liabilities:
Payable for investments purchased $ 9,041,816
Payable for Fund shares reacquired 510,958
Written options outstanding, at value (premiums
received, $69,288) 55,133
Payable for daily variation margin on open futures contracts 22,500
Net payable for forward foreign currency
exchange contracts sold 2,175,781
Payable to affiliates -
Management fee 5,671
Shareholder servicing agent fee 1,954
Distribution fee 53,690
Accrued expenses and other liabilities 51,856
-------------
Total liabilities $ 11,919,359
-------------
Net assets $ 128,352,069
-------------
Net assets consist of:
Paid-in capital $ 129,667,936
Unrealized depreciation on investments and
translation of assets and liabilities
in foreign currencies (747,551)
Accumulated undistributed
net realized loss on investments
and foreign currency transactions (1,349,765)
Accumulated undistributed
net investment income 781,449
-------------
Total $ 128,352,069
-------------
Shares of beneficial interest outstanding 8,606,767
-------------
Class A shares:
Net asset value and redemption price per
share (net assets of $48,035,472 / 3,215,494
shares of beneficial interest outstanding) $ 14.94
-----
Offering price per share (100/95.25 of net asset
value per share) $ 15.69
-----
Class B shares:
Net asset value, redemption price, and
offering price per share (net assets of
$65,292,144 / 4,382,311 shares of beneficial
interest outstanding) $ 14.90
-----
Class C shares:
Net asset value, redemption price, and
offering price per share (net assets of
$15,024,453 / 1,008,962 shares of beneficial
interest outstanding) $ 14.89
-----
On sales of $100,000 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
- --------------------------------------------------------------------------------
Six Months Ended February 28, 1995
- --------------------------------------------------------------------------------
Net investment income:
Income -
Interest $ 1,950,454
Dividends 371,944
Foreign taxes withheld (22,189)
------------
Total investment income $ 2,300,209
------------
Expenses -
Management fee $ 302,041
Trustees' compensation 13,100
Shareholder servicing agent fee (Class A) 30,005
Shareholder servicing agent fee (Class B) 56,377
Shareholder servicing agent fee (Class C) 7,228
Distribution and service fee (Class A) 100,055
Distribution and service fee (Class B) 256,259
Distribution and service fee (Class C) 48,190
Registration fees 65,315
Printing 34,310
Custodian fee 31,088
Postage 27,256
Auditing fees 15,950
Legal fees 7,470
Amortization of organizational expenses 3,434
Miscellaneous 11,577
------------
Total expenses $ 1,009,655
Reduction of expenses by distributor (Class A) (39,922)
------------
Net expenses $ 969,733
------------
Net investment income $ 1,330,476
------------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) (identified cost basis) -
Investment transactions $ (863,238)
Written option transactions 160,791
Foreign currency transactions 43,466
------------
Net realized gain (loss) on investments $ (658,981)
------------
Change in unrealized appreciation
(depreciation)-
Investments $ (1,437,294)
Written options 14,155
Translation of assets and liabilities
in foreign currencies 219,453
Futures contracts (441,155)
------------
Net unrealized loss on investments $ (1,644,841)
------------
Net realized and unrealized loss on
investments and foreign currency $ (2,303,822)
------------
Decrease in net assets from operations $ (973,346)
------------
See notes to financial statements
<PAGE>
Financial Statements - continued
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
Six Months Ended Period Ended
February 28, 1995 August 31, 1994<F1>
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations - $ 1,330,476 $ 89,142
Net investment income
Net realized gain (loss) on investments and
foreign currency transactions (658,981) 22,898
Net unrealized gain (loss) on investments and
foreign currency transactions (1,644,841) 897,290
------------- -------------
Increase (decrease) in net assets from
operations $ (973,346) $ 1,009,330
------------- -------------
Distributions declared to shareholders -
From net investment income (Class A) $ (313,157) --
From net investment income (Class B) (284,843) --
From net investment income (Class C) (62,841) --
In excess of net realized gain on investments and
foreign currency transactions (Class A) (258,501) --
In excess of net realized gain on investments and
foreign currency transactions (Class B) (350,041) --
In excess of net realized gain on investments and
foreign currency transactions (Class C) (82,468) --
------------- -------------
Total distributions declared to shareholders $ (1,351,851) $ --
------------- -------------
Fund share (principal) transactions -
Net proceeds from sale of shares $ 84,748,515 $ 54,876,622
Net asset value of shares
issued to shareholders
in reinvestment of distributions 1,119,519 --
Cost of shares reacquired (10,374,494) (702,226)
------------- -------------
Increase in net assets
from Fund share transactions $ 75,493,540 $ 54,174,396
------------- -------------
Total increase in net assets $ 73,168,343 $ 55,183,726
Net assets:
At beginning of period 55,183,726 --
------------- -------------
At end of period (including accumulated
undistributed net investment income of
$781,449 and $111,814, respectively) $ 128,352,069 $ 55,183,726
------------- -------------
<FN>
<F1> For the period from the commencement of investment operations, July 22,
1994 to August 31, 1994.
</TABLE>
See notes to financial statements
<PAGE>
Financial Statements -continued
Financial Highlights
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
1995<F1> 1994<F2> 1995<F1> 1994<F2> 1995<F1> 1994<F2>
- ------------------------------------------------------------------------------------------------------------------
Class A Class B 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 $ 15.33 $ 15.00 $ 15.31 $ 15.00 $ 15.31 $ 15.00
----- ----- ----- ----- ----- -----
Income from investment
operations<F5>-
Net investment income $ 0.23 $ 0.04 $ 0.17 $ 0.02 $ 0.19 $ 0.03
Net realized and
unrealized gain
(loss) on investments (0.41) 0.29 (0.40) 0.29 (0.42) 0.28
----- ----- ----- ----- ----- -----
Total from investment
operations $ (0.18) $ 0.33 $ (0.23) $ 0.31 $ (0.23) $ 0.31
----- ----- ----- ----- ----- -----
Less distributions declared to
shareholders -
From net investment
income $ (0.16) -- $ (0.13) -- $ (0.14) --
In excess of net
realized gain (loss)
on investments (0.05) -- (0.05) -- (0.05) --
----- ----- ----- ----- ----- -----
Total distributions
declared to
shareholders $ (0.21) -- $ (0.18) -- $ (0.19) --
----- ----- ----- ----- ----- -----
Net asset value - end
of period $ 14.94 $ 15.33 $ 14.90 $ 15.31 $ 14.89 $ 15.31
----- ----- ----- ----- ----- -----
Total return<F6> (1.17)%<F4> 2.20%<F4> (1.52)%<F4> 2.07% (1.50)<F4> 2.07%
Ratios (to average net
assets)/Supplemental data:
Expenses 1.46%<F7> 1.50%<F3><F7> 2.24% 2.57%<F3><F7> 2.21% 2.50%<F3><F7>
Net investment income 3.07%<F7> 2.43%<F3><F7> 2.33% 1.39%<F3><F7> 2.54% 1.68%<F3><F7>
Portfolio turnover 51% 1% 51% 1% 51% 1%
Net assets at end of
period (000 omitted) $48,035 $25,254 $65,292 $26,495 $15,024 $3,435
<FN>
<F1> For the six-month period ended February 28, 1995.
<F2> For the period from the commencement of investment operations, July 22,
1994 to August 31, 1994.
<F3> Annualized.
<F4> Not annualized.
<F5> Per share data is based on average shares outstanding.
<F6> Total returns for Class A shares do not include the applicable sales
charge. If the charge had been included, the results would have been
lower.
<F7> The investment adviser and/or the distributor did not impose a portion of
their management fee and/or distribution fee, respectively, for the
periods indicated. If these fees had been incurred by the Fund, the net
investment income per share and the ratios would have been:
Net investment income $ 0.21 $ 0.02 - $ 0.01 - $ 0.02
Ratios (to average net assets):
Expenses 1.66% 2.62%<F3> - 3.21%<F3> - 3.18%<F3>
Net investment income 2.87% 1.31%<F3> - 0.75%<F3> - 1.00%<F3>
See notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) Business and Organization
MFS World Asset Allocation Fund (the Fund) is a non-diversified series of MFS
Series Trust I (the Trust). The Trust is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company.
(2) Significant Accounting Policies
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
and forward contracts, 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 value. Non-U.S. dollar denominated short-term
obligations are valued at amortized cost as calculated in the base currency and
translated into U.S. dollars at the closing daily exchange rate. Futures
contracts, options and options on futures contracts listed on commodities
exchanges are valued at closing settlement prices. Over-the- counter options are
valued by brokers through the use of a pricing model which takes into account
closing bond valuations, implied volatility and short-term repurchase rates.
Securities for which there are no such quotations or valuations are valued at
fair value as determined in good faith by or at the direction of the Trustees.
Repurchase Agreements - The Fund may enter into repurchase agreements with
institutions that the Fund's investment adviser has determined are creditworthy.
Each repurchase agreement is recorded at cost. The Fund requires that the
securities purchased in a repurchase transaction be transferred to the custodian
in a manner sufficient to enable the Fund to obtain those securities in the
event of a default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that the value,
including accrued interest, of the securities under each repurchase agreement is
greater than amounts owed to the Fund under each such repurchase agreement.
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 and 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.
Deferred Organization Expenses - Costs incurred by the Fund in connection with
its organization have been deferred and are being amortized on a straight-line
basis over a five-year period beginning on the date of commencement of
investment operations of the Fund.
Written Options - The Fund may write covered call or put options for which
premiums are received and are recorded as liabilities, and are subsequently
adjusted to the current value of the options written. Premiums received from
writing options which expire are treated as realized gains. Premiums received
from writing options which are exercised or are closed are offset against the
proceeds or amount paid on the transaction to determine the realized gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
securities purchased by the Fund. The Fund, as writer of an option, may have no
control over whether the underlying securities may be sold (call) or purchased
(put) and, as a result, bears the market risk of an unfavorable change in the
price of the securities underlying the written option. In general, written call
options may serve as a partial hedge against decreases in value in the
underlying securities to the extent of the premium received. Written options may
also be used as a part of an income producing strategy reflecting the view of
the Fund's management on the direction of interest rates.
Futures Contracts - The Fund may enter into financial futures contracts for the
delayed delivery of securities, currency or contracts based on financial indices
at a fixed price on a future date. In entering such contracts, the Fund is
required to deposit either in cash or securities an amount equal to a certain
percentage of the contract amount. Subsequent payments are made or received by
the Fund each day, depending on the daily fluctuations in the value of the
underlying security, and are recorded for financial statement purposes as
unrealized gains or losses by the Fund. The Fund's investment in financial
futures contracts is designed to hedge against anticipated future changes in
interest or exchange rates or securities prices. The Fund may also invest in
interest rate, currency or equity index futures contracts for non- hedging
purposes. For example, interest rate futures may be used in modifying the
duration of the portfolio without incurring the additional transaction costs
involved in buying and selling the underlying securities. Should interest or
exchange rates or securities prices move unexpectedly, the Fund may not achieve
the anticipated benefits of the financial futures contracts and may realize a
loss.
Security Loans - The Fund may lend its securities to member banks of the Federal
Reserve System and to member firms of the New York Stock Exchange or
subsidiaries thereof. The loans are collateralized at all times by cash or
securities with a market value at least equal to the market value of securities
loaned. As with other extensions of credit, the Fund may bear the risk of delay
in recovery or even loss of rights in the collateral should the borrower of the
securities fail financially. The Fund receives compensation for lending its
securities in the form of fees or from all or a portion of the income from
investment of the collateral. The Fund would also continue to earn income on the
securities loaned. At February 28, 1995, the Fund had no securities on loan.
Forward Foreign Currency Exchange Contracts - The Fund may enter into forward
foreign currency exchange contracts for the purchase or sale of a specific
foreign currency at a fixed price on a future date. Risks may arise upon
entering these contracts from the potential inability of counterparties to meet
the terms of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar. The Fund will enter into forward
contracts for hedging purposes as well as for non-hedging purposes. For hedging
purposes, the Fund may enter into contracts to deliver or receive foreign
currency it will receive from or require for its normal investment activities.
It may also use contracts in a manner intended to protect foreign
currency-denominated securities from declines in value due to unfavorable
exchange rate movements. For non-hedging purposes, the Fund may enter into
contracts with the intent of changing the relative exposure of the Fund's
portfolio of securities to different currencies to take advantage of anticipated
changes in exchange rates. The forward foreign currency exchange contracts are
adjusted by the daily exchange rate of the underlying currency and any gains or
losses are recorded for financial statement purposes as unrealized until the
contract settlement date.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All premium and
original issue discount are amortized or accreted for both financial statement
and tax reporting purposes as required by federal income tax regulations.
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.
The Fund uses the effective interest method for reporting interest income on
payment-in-kind (PIK) bonds, whereby interest income on PIK bonds is recorded
ratably by the Fund at a constant yield to maturity. Legal fees and other
related expenses incurred to preserve and protect the value of a security owned
are added to the cost of the security; other legal fees are expensed. Capital
infusions, which are generally non-recurring, incurred to protect or enhance the
value of high-yield debt securities, are reported as an addition to the cost
basis of the security. Costs that are incurred to negotiate the terms or
conditions of capital infusions or that are expected to result in a plan of
reorganization are considered workout expenses and are reported as realized
losses. Ongoing costs incurred to protect or enhance an investment, or costs
incurred to pursue other claims or legal actions, are reported as operating
expenses.
Tax Matters and Distributions - The Fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net 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. Foreign taxes have been provided for on interest
and dividend income earned on foreign investments in accordance with the
applicable country's tax rates and to the extent unrecoverable are recorded as a
reduction of investment income. Distributions to shareholders are recorded on
the ex-dividend date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis and requires that only distributions in excess of tax basis
earnings and profits are reported in the financial statements as a return of
capital. Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains. During the period July 22, 1994 to August 31, 1994, $22,672 was
reclassified from accumulated undistributed net realized gain on investments and
foreign currency transactions to accumulated undistributed net investment income
due to differences between book and tax accounting for foreign currency. This
change had no effect on the net assets or net asset value per share.
Multiple Classes of Shares of Beneficial Interest - The Fund offers Class A,
Class B and Class C shares. The three classes of shares differ in their
respective shareholder servicing agent, distribution and service fees.
Shareholders of each class also bear certain expenses that pertain only to that
particular class. All shareholders bear the common expenses of the Fund pro rata
based on the average daily net assets of each class, without distinction between
share classes. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are
generally due to differences in separate class expenses, including distribution
and shareholder service fees.
(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, computed daily and paid monthly at an effective annual rate of
0.60% of average daily net assets, amounted to $302,041 for the six months ended
February 28, 1995.
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,
previously known as MFS Financial Services, Inc.) and MFS Service Center, Inc.
(MFSC). The Fund has an unfunded defined benefit plan for all its independent
Trustees.
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$6,348 as its portion of the sales charge on sales of Class A shares of the
Fund. The Trustees have adopted separate distribution plans for Class A, Class B
and Class C shares pursuant to Rule 12b-1 of the Investment Company Act of 1940
as follows:
The Class A Distribution Plan provides that the Fund will pay MFD up to 0.50%
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
0.30% 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 0.20% 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 is not imposing the 0.20%
distribution fee for an indefinite period. Fees, net of waiver, incurred under
the distribution plan for the six months ended February 28, 1995 were 0.30% of
average daily net assets attributable to Class A shares on an annualized basis
and amounted to $60,133 (of which MFD retained $262).
The Class B and Class C Distribution Plans provide that the Fund will pay MFD a
monthly distribution fee, equal to 0.75% per annum, and a quarterly 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. MFD will pay to securities dealers that enter into a
sales agreement with MFD, all or a portion of the service fee attributable to
Class B and Class C shares, and will pay to such securities dealers all of the
distribution fee attributable to Class C shares. The service fee is intended to
be additional consideration for services rendered by the dealer with respect to
Class B and Class C shares. Fees incurred under the distribution plans during
the six months ended February 28, 1995 were 1.00% of average daily net assets
attributable to Class B and Class C shares on an annualized basis and amounted
to $256,259 and $48,190, respectively (of which MFD retained $29 and $863,
respectively).
A contingent deferred sales charge is imposed on shareholder redemptions of
Class A shares, on purchases of $1 million or more, in the event of a
shareholder redemption within twelve months following the share 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-month period ended February 28, 1995 were $1,516
and $33,516 for Class A and Class B shares, respectively.
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earned
$30,005, $56,377 and $7,228 for Class A, Class B and Class C shares,
respectively, for its services as shareholder servicing agent. The fee is
calculated as a percentage of the average daily net assets of each class of
shares at an effective annual rate of up to 0.15%, up to 0.22% and up to 0.15%
attributable to Class A, Class B and Class C shares, respectively.
(4) Portfolio Securities
Purchases and sales of investments, other than purchased option transactions and
short-term obligations, were as follows:
Purchases Sales
- -------------------------------------------------------------------
U.S. government securities $ 10,819,531 $ 4,989,844
-------------- -------------
Investments (non-U.S.
government securities) $117,128,168 $ 36,610,540
-------------- -------------
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 $134,653,865
-------------
Gross unrealized depreciation $ 4,514,178
Gross unrealized appreciation 3,966,761
-------------
Net unrealized depreciation $ 547,417
-------------
(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:
Class A Shares
1995* 1994**
------------------------ -------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------
Shares sold 1,841,463 $27,751,060 1,676,623 $25,208,761
Shares issued to
shareholders in
reinvestment of
distributions 32,843 489,384 -- --
Shares reacquired (306,668) (4,544,193) (28,768) (434,304)
----------- ----------- ----------- -----------
Net increase 1,567,638 $23,696,251 1,647,855 $24,774,457
----------- ----------- ----------- -----------
Class B Shares
1995* 1994**
------------------------ -------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------
Shares sold 2,862,888 $43,182,034 1,745,709 $26,248,238
Shares issued to
shareholders in
reinvestment of
distributions 34,310 510,164 -- --
Shares reacquired (245,488) (3,658,580) (15,108) (228,061)
----------- ----------- ----------- -----------
Net increase 2,651,710 $40,033,618 1,730,601 $26,020,177
----------- ----------- ----------- -----------
Class C Shares
1995* 1994**
------------------------ -------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------
Shares sold 921,883 $13,815,421 226,975 $ 3,419,623
Shares issued to
shareholders in
reinvestment of
distributions 8,094 119,971 -- --
Shares reacquired (145,352) (2,171,721) (2,638) (39,861)
----------- ----------- ----------- -----------
Net increase 784,625 $11,763,671 224,337 $ 3,379,762
----------- ----------- ----------- -----------
*For the six-month period ended February 28, 1995.
**For the period from the commencement of investment operations, July 22, 1994
to August 31, 1994.
(6) Line of Credit
The Fund entered into an agreement which enables it to participate with other
funds managed by MFS, or an affiliate of MFS, in an unsecured line of credit
with a bank which permits borrowings up to $350 million, collectively.
Borrowings may be made to temporarily finance the repurchase of 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 February 28, 1995 was $1,010.
(7) Financial Instruments
The Fund regularly trades financial instruments with off-balance sheet risk in
the normal course of its investing activities in order to manage exposure to
market risks such as interest rates and foreign currency exchange rates. These
financial instruments include written options, forward foreign currency exchange
contracts and futures contracts. The notional or contractual amounts of these
instruments represent the investment the Fund has in particular classes of
financial instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at February 28, 1995,
is as follows:
Written Option 1995 Calls 1995 Puts
Transactions -------------------------- ------------------------
Principal Principal
Amounts of Amounts of
Contracts Contracts
(000 Omitted) Premiums (000 Omitted) Premiums
- ------------------------------------------------------------------------------
Outstanding, beginning of period -
Options written -
Australian Dollars 796 $ 6,074 1,758 $ 20,363
Canadian Dollars -- -- 2,120 8,411
Deutsche Marks 5,031 11,112 25,269 182,139
Deutsche Marks/British
Pounds -- -- 3,778 13,292
Italian Lire/Deutsche
Marks 807,664 1,357 815,741 1,383
Japanese Yen 87,500 11,775 1,135,598 88,319
Swedish Kronor/
Deutsche Marks 3,006 2,270 3,210 2,010
Swiss Francs/Deutsche
Marks 1,258 5,298 -- --
Options terminated in
closing transactions -
Australian Dollars (796) (6,074) (988) (9,486)
Canadian Dollars -- -- (2,120) (8,411)
Deutsche Marks -- -- (21,998) (176,652)
Deutsche Marks/British
Pounds -- -- (3,778) (13,292)
Japanese Yen (87,500) (11,775) (751,598) (40,831)
Swedish Kronor/
Deutsche Marks (3,006) (2,270) -- --
Options exercised -
Deutsche Marks (3,271) (5,487) (3,271) (5,487)
Italian Lire/Deutsche
Marks (807,664) (1,357) -- --
Swedish Kronor/
Deutsche Marks -- -- (3,210) (2,010)
Options expired -
Italian Lire/Deutsche Marks -- -- (815,741) (1,383)
------- -------
Outstanding, end of period -
Australian Dollars -- $ -- 770 $ 10,877
Deutsche Marks 1,760 5,625 -- --
Japanese Yen -- -- 384,000 47,488
Swiss Francs/Deutsche Marks 1,258 5,298 -- --
------- -------
$ 10,923 $ 58,365
------- -------
At February 28, 1995, the Fund had sufficient cash and/or securities at least
equal to the value of the written options.
Forward Foreign Currency Exchange Contracts
<TABLE>
<CAPTION>
Net
Unrealized
Contracts to In Exchange Contracts Appreciation
Settlement Date Deliver/Receive for at Value (Depreciation)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales 3/02/95 - 7/05/95 AUD 2,497,557 $ 1,866,648 $ 1,841,318 $ 25,330
3/17/95 - 6/09/95 CHF 2,307,698 1,812,430 1,872,476 (60,046)
3/01/95 - 8/16/95 DEM 41,792,046 27,702,700 28,699,138 (996,438)
3/22/95 - 3/31/95 DKK 8,423,550 1,366,599 1,451,164 (84,565)
3/22/95 - 7/10/95 ESP 464,911,419 3,482,092 3,607,761 (125,669)
3/22/95 - 7/10/95 FRF 26,110,339 4,886,895 5,089,928 (203,033)
3/03/95 - 4/18/95 GBP 3,653,368 5,732,435 5,789,210 (56,775)
3/20/95 IEP 441,381 686,481 697,220 (10,739)
3/07/95 - 4/24/95 ITL 2,480,202,988 1,533,627 1,487,302 46,325
3/14/95 - 7/10/95 JPY 1,260,821,224 12,774,396 13,187,402 (413,006)
3/24/95 - 7/10/95 NLG 4,307,948 2,506,000 2,638,957 (132,957)
3/09/95 - 3/14/95 NZD 916,437 579,421 580,028 (607)
7/10/95 SEK 41,832,450 5,500,000 5,663,601 (163,601)
---------- ---------- ---------
$70,429,724 $72,605,505 $(2,175,781)
---------- ---------- ---------
Purchases 3/01/95 - 7/05/95 AUD 1,090,084 $ 821,366 $ 801,859 $(19,507)
4/03/95 CAD 478,837 344,351 343,733 (618)
3/13/95 - 4/12/95 CHF 455,091 344,766 368,558 23,792
3/01/95 - 8/16/95 DEM 70,442,990 46,310,217 48,325,536 2,015,319
3/22/95 DKK 4,347,343 727,784 748,926 21,142
3/01/95 - 3/22/95 ESP 69,240,600 536,042 540,528 4,486
3/02/95 - 4/18/95 GBP 2,193,399 3,442,497 3,475,141 32,644
3/07/95 - 4/24/95 ITL 2,248,059,134 1,382,687 1,348,893 (33,794)
3/01/95 - 5/12/95 JPY 1,272,777,740 13,025,398 13,280,215 254,817
3/13/95 - 4/24/95 NZD 2,416,203 1,512,750 1,528,404 15,654
3/01/95 SEK 524,901 72,524 71,583 (941)
---------- ---------- ---------
$68,520,382 $70,833,376 $2,312,994
---------- ---------- ---------
</TABLE>
Forward foreign currency purchases and sales under master netting arrangements
and closed forward foreign currency exchange contracts, excluded above, amounted
to a net receivable of $89,554 at February 28, 1995.
At February 28, 1995, the Fund had sufficient cash and/or securities to cover
any commitments under these contracts.
Futures Contracts
Unrealized
Expiration Contracts Position Depreciation
- -----------------------------------------------------------------------------
March 1995 60 U.S. Treasury Bonds Short $441,155
--------
At February 28, 1995, the Fund had sufficient cash and/or securities to cover
margin requirements on open futures contracts.
(8) Restricted Securities
The Fund may invest not more than 15% of its net assets in securities which are
subject to legal or contractual restrictions on resale. At February 28, 1995,
the Fund owned the following restricted securities (constituting 1.8% of net
assets) which may not be publicly sold without registration under the Securities
Act of 1933. The Fund does not have the right to demand that such securities be
registered. The value of these securities is determined by valuations supplied
by a pricing service or brokers or, if not available, in good faith by or at the
direction of the Trustees. Certain of these securities may be offered and sold
to "qualified institutional buyers" under Rule 144A of the 1933 Act.
Date of Shares/Par
Description Acquisition Amount Cost Value
- ------------------------------------------------------------------------------
Arcadian Partners L.P.,
10.75s, 2005 10/31/94 295,000 $ 289,837 $ 291,312
Hornbach Baumarkt AG 8/31/94 -
2/10/95 1,670 916,297 989,892
Mirgor Sacifia, ADR 10/20/94 23,750 213,750 63,650
Takare PLC 7/28/94 -
2/28/95 317,100 1,049,414 939,980
----------
$2,284,834
----------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Trustees of MFS Series Trust I and Shareholders of MFS World Asset
Allocation Fund:
We have audited the accompanying statement of assets and liabilities of MFS
World Asset Allocation Fund, including the schedule of portfolio investments, as
of February 28, 1995, the related statement of operations for the six months
ended February 28, 1995 and the statement of changes in net assets and the
financial highlights for the six months ended February 28, 1995 and for the
period from July 22, 1994 (commencement of investment operations) to August 31,
1994. These financial statements and financial highlights are the responsibility
of Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1995, by correspondence with the custodian and brokers, or other
appropriate auditing procedures where replies from brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
MFS World Asset Allocation Fund at February 28, 1995, the results of its
operations for the six months ended February 28, 1995, the changes in its net
assets and the financial highlights for the six months ended February 28, 1995
and for the period from July 22, 1994 to August 31, 1994, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
March 31, 1995
--------------------------------------
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>
THE MFS FAMILY OF FUNDS(r) -- America's Oldest Mutual Fund Group
The members of the MFS Family of Funds are grouped below according to the types
of securities in their portfolios. For free prospectuses containing more
complete information, including the exchange privilege and all charges and
expenses, please contact your financial adviser or call the MFS Service Center
at 1-800-225-2606 any business day from 8 a.m. to 8 p.m. Eastern time. This
material should be read carefully before investing or sending money.
<TABLE>
<CAPTION>
STOCK LIMITED MATURITY BOND
<S> <C>
Massachusetts Investors Trust MFS(r) Government Limited Maturity Fund
Massachusetts Investors Growth Stock Fund MFS(r) Limited Maturity Fund
MFS(r) Capital Growth Fund MFS(r) Municipal Limited Maturity Fund
MFS(r) Emerging Growth Fund WORLD
MFS(r) Gold & Natural Resources Fund MFS(r) World Asset Allocation Fund
MFS(r) Growth Opportunities Fund MFS(r) World Equity Fund
MFS(r) Managed Sectors Fund MFS(r) World Governments Fund
MFS(r) OTC Fund MFS(r) World Growth Fund
MFS(r) Research Fund MFS(r) World Total Return Fund
MFS(r) Value Fund NATIONAL TAX-FREE BOND
STOCK AND BOND MFS(r) Municipal Bond Fund
MFS(r) Total Return Fund MFS(r) Municipal High Income Fund
MFS(r) Utilities Fund (closed to new investors)
BOND MFS(r) Municipal Income Fund
MFS(r) Bond Fund STATE TAX-FREE BOND
MFS(r) Government Mortgage Fund Alabama, Arkansas, California, Florida,
MFS(r) Government Securities Fund Georgia, Louisiana, Maryland, Massachusetts,
MFS(r) High Income Fund Mississippi, New York, North Carolina,
MFS(r) Intermediate Income Fund Pennsylvania, South Carolina Tennessee, Texas,
MFS(r) Strategic Income Fund Virginia, Washington, West Virginia
(formerly MFS(r) Income & Opportunity Fund) MONEY MARKET
MFS(r) Cash Reserve Fund
MFS(r) Government Money Market Fund
MFS(r) Money Market Fund
</TABLE>
<PAGE>
MFS(R) WORLD [LOGO] BULK RATE
ASSET ALLOCATION U.S. POSTAGE
FUND P A I D
PERMIT #55638
500 Boylston Street BOSTON, MA
Boston, MA 02116
[LOGO]
MAA-3 4/95 18.5M 88/288/388
