<PAGE>
[LOGO] SEMIANNUAL REPORT
THE FIRST NAME IN MUTUAL FUNDS FEBRUARY 28, 1995
MFS(R) CASH RESERVE FUND
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<TABLE>
<CAPTION>
MFS(R) CASH RESERVE FUND
TRUSTEES CUSTODIAN
<S> <C>
A. Keith Brodkin* - Chairman and President State Street Bank and Trust Company
Richard B. Bailey* - Private Investor; INVESTOR INFORMATION
Former Chairman and Director (until 1991), For MFS stock and bond market outlooks,
Massachusetts Financial Services Company call toll-free: 1-800-637-4458 anytime from
a touch-tone telephone.
Marshall N. Cohan - Private Investor
For information on MFS mutual funds,
Lawrence H. Cohn, M.D. - Chief of Cardiac Surgery, call your financial adviser or, for an
Brigham and Women's Hospital; Professor of information kit, call toll-free:
Surgery, Harvard Medical School 1-800-637-2929 any business day from
9 a.m. to 5 p.m. Eastern time (or leave
The Hon. Sir J. David Gibbons, KBE - Chief a message anytime).
Executive Officer, Edmund Gibbons Ltd.;
Chairman, Bank of N.T. Butterfield & Son Ltd. INVESTOR SERVICE
MFS Service Center, Inc.
Abby M. O'Neill - Private Investor; P.O. Box 2281
Director, Rockefeller Financial Services, Inc. Boston, MA 02107-9906
(Investment Advisers)
For general information, call toll free:
Walter E. Robb, III - President and Treasurer, 1-800-225-2606 any business day from
Benchmark Advisors, Inc. (Corporate Financial 8 a.m. to 8 p.m. Eastern time.
Consultants)
For service to speech- or hearing-impaired,
Arnold D. Scott* - Senior Executive Vice President call toll free: 1-800-637-6576 any business
and Secretary, Massachusetts Financial Services day from 9 a.m. to 5 p.m. Eastern time.
Company (To use this service, your phone must be
equipped with a Telecommunications
Jeffrey L. Shames* - President and Chief Equity Device for the Deaf.)
Officer, Massachusetts Financial Services Company
For share prices, account balances and
J. Dale Sherratt - President, Insight Resources, Inc. exchanges, call toll free: 1-800-MFS-TALK
(Acquisition Planning Specialists) (1-800-637-8255) anytime from a touch-tone
telephone.
Ward Smith - Former Chairman (until 1994),
NACCO Industries; Director, Sundstrand
Corporation
INVESTMENT ADVISER
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116-3741
PORTFOLIO MANAGER
Geoffrey L. Kurinsky*
TREASURER TOP-RATED SERVICE
W. Thomas London* MFS was rated first when securities firms
evaluated the quality of service they receive
ASSISTANT TREASURER from 40 mutual fund companies. MFS got high
James O. Yost* marks for answering calls quickly, processing
transactions accurately and sending
SECRETARY statements out on time.
Stephen E. Cavan* (Source: 1994 DALBAR Survey)
ASSISTANT SECRETARY
James R. Bordewick, Jr.*
*Affiliated with the Investment Adviser
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
Short-term interest rates rose dramatically during the past six months.
Reflecting this trend, the annualized compounded yield on an investment in Class
A shares of the Fund for the seven-day period ended February 28, 1995 rose from
3.8% to 5.3%, while the annualized compounded yield on an investment in Class
B shares increased from 2.7% to 4.2%.*
Economic Outlook
The economic expansion, entering its fifth year, gained firmer underpinnings in
1994 as employers significantly stepped up hiring levels. Increased employment,
stronger capital spending by businesses, and strengthening overseas economies
resulted in 4% real (adjusted for inflation) gross domestic product growth last
year. Interest rates rose substantially over the past year, which should help
restrain, but not curtail, the economic expansion. Based on sound economic
fundamentals both here and abroad, we expect the business expansion to continue
well into 1995.
Interest Rates
Despite a stronger economy, inflation at the consumer level has remained
relatively benign at 2.7% in 1994, the fourth straight year of 3.0% or less. Due
to a prolonged period of below-trend-line growth and continued pressure on
corporations to emphasize effective cost controls, wage growth and unit labor
costs have remained subdued. However, as the economy has exhibited continuing
strength, various industrial commodity prices have been rising substantially
faster than consumer prices. Nevertheless, businesses have had difficulty
passing these price increases on to the consumer. With the economy continuing to
expand, we expect some upward movement in inflation from below 3% to the 3 1/2%
range. The Federal Reserve Board has shown a willingness to raise short-term
rates to slow the economy in order to dampen inflationary pressures. Most
recently, it raised the federal funds rate 50 basis points (0.50%) after a 75
basis-point (0.75%) increase in November. We do not expect the central bank 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.
Recent significant weakness in the dollar versus the deutsche mark and yen could
prompt the Federal Reserve to raise short- term rates in an effort to prevent
further declines in the value of the U.S. currency. However, we believe the
potential recessionary implications of further short-term rate increases will
constrain Federal Reserve action.
We believe fundamentals are favorable for lower long-term rates in 1995,
but that further declines in rates may not occur until after the dollar
stabilizes in world currency markets. With the economy showing some signs of
slowing, however, we believe that short-term rates should be fairly stable over
the next several months.
Portfolio Performance and Strategy
As mentioned above, during the past six months the Federal Reserve voted to
tighten monetary policy by raising the federal funds rate (which is the interest
rate charged by banks to other banks in need of overnight loans) two times: by
75 basis points (0.75%) on November 15, 1994 and by 50 basis points (0.50%) on
February 1, 1995. As a result, yields on 90-day U.S. Treasury bills, which were
just over 4.6% at the end of August 1994, rose to approximately 5.8% by February
28, 1995. During this same period, interest rates on 90-day commercial paper
increased from about 4.8% to their current level of 6.0%.
*The annualized yields for the seven-day period ended August 31, 1994 were
incorrect in the Fund's annual report. The yield on Class A shares, which was
reported as 3.50%, should have been 3.80%, while the yield on Class B shares,
which was reported as 2.31%, should have been 2.70%.
In an effort to continue to provide a reasonable level of current income,
we have continued to maintain a relatively short maturity in the portfolio in
order to take advantage of the increase in rates. On February 28, 1995, the
average maturity of the Fund was 25 days.
The portfolio continues to include only the highest-quality corporate, bank
and government securities in order to provide investors with maximum security
against credit risk (although money market funds are neither insured nor
guaranteed by the U.S. government, and there can be no assurance that they will
be able to maintain a stable net asset value). At the end of February,
approximately 26% of the Fund's net assets was invested in commercial paper. The
balance was invested in securities issued or guaranteed by the U.S. Treasury or
agencies or instrumentalities of the U.S. government because of the very narrow
yield spreads between government agency obligations and commercial paper. This
emphasis on quality should allow the Fund to continue to help investors obtain
current income and, at the same time, preserve capital and liquidity.
We appreciate your support and welcome any questions or comments you may
have.
Respectfully,
- ------------------ --------------------
A 1 1/2" by 1 5/8" A 1 1/2" by 1 5/8"
photo of A. Keith photo of Geoffrey L.
Brodkin, Chairman Kurinsky, Portfolio
and President Manager
- ------------------ --------------------
A. Keith Brodkin Geoffrey L. Kurinsky
Chairman and President Portfolio Manager
March 9, 1995
<PAGE>
PORTFOLIO MANAGER PROFILE
Geoffrey Kurinsky began his career at MFS in 1987 in the Fixed Income
Department. A graduate of the University of Massachusetts and Boston
University's Graduate School of Management, he was named Assistant Vice
President in 1988, Vice President in 1989 and Senior Vice President in 1993. He
has managed MFS Cash Reserve Fund since 1987. Mr. Kurinsky is a Certified Public
Accountant (C.P.A.).
OBJECTIVE AND POLICY
The Fund's investment objective is to provide as high a level of current income
as is considered consistent with the preservation of capital and liquidity. The
Fund seeks to achieve its objective by investing primarily in U.S. government
securities (including repurchase agreements collateralized by such securities),
obligations of the larger banks, prime commercial paper and high-grade,
short-term corporate obligations. The Fund may also invest in U.S.
dollar-denominated securities of foreign issuers that mature in less than 13
months. Securities collateralizing repurchase agreements, however, may have
maturities in excess of 13 months.
PORTFOLIO OF INVESTMENTS (Unaudited) - February 28, 1995
Commercial Paper -26.2%
- -----------------------------------------------------------------------------
Principal Amount
Issuer (000 Omitted) Value
- -----------------------------------------------------------------------------
American Telephone & Telegraph Co., due 4/19/95 $ 2,300 $ 2,281,123
Beneficial Corp., due 4/24/95 7,000 6,937,840
Ford Motor Credit Co., due 3/02/95 6,000 5,998,975
GTE South, due 3/06/95 5,100 5,095,807
General Electric Co., due 3/31/95 5,400 5,372,775
Hewlett Packard Co., due 3/21/95 2,250 2,242,400
Philip Morris Cos., Inc., due 4/03/95 5,000 4,972,958
Sara Lee Corp., due 3/03/95 10,450 10,446,499
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Total Commercial Paper $ 43,348,377
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U.S. Government and Agency Obligations - 76.7%
- -----------------------------------------------------------------------------
Federal Farm Credit Bank, due 3/16/95 $ 8,700 $ 8,678,757
Federal Home Loan Bank, due 3/20/95 -
4/13/95 19,610 19,524,911
Federal Home Loan Mortgage Corp., due 3/02/95-
5/17/95 59,000 58,757,073
Federal National Mortgage Assn., due 3/03/95
- 4/18/95 19,325 19,270,508
Student Loan Marketing Assn., due 5/15/95 9,400 9,284,067
Tennessee Valley Authority, due 3/06/95 -
3/10/95 11,600 11,584,389
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Total U.S. Government and Agency Obligations $127,099,705
- -----------------------------------------------------------------------------
Total Investments, at Amortized Cost and Value $170,448,082
Other Assets, Less Liabilities- (2.9)% (4,857,875)
- -----------------------------------------------------------------------------
Net Assets - 100.0% $165,590,207
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See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
- ------------------------------------------------------------------------------
February 28, 1995 (Unaudited)
- ------------------------------------------------------------------------------
Assets:
Investments, at amortized cost and value $170,448,082
Cash 193,827
Receivable for Fund shares sold 559,806
Other assets 1,953
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Total assets $171,203,668
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Liabilities:
Distributions payable $ 51,890
Payable for Fund shares reacquired 5,378,684
Payable to affiliates -
Shareholder servicing agent fee 2,945
Management fee 6,071
Distribution fee 92,855
Accrued expenses and other liabilities 81,016
------------
Total liabilities $ 5,613,461
------------
Net assets (represented by paid-in capital) $165,590,207
------------
Shares of beneficial interest outstanding 165,590,207
------------
Class A shares:
Net asset value, offering price and redemption price per
share (net assets of $4,074,146 / 4,074,146 shares
of beneficial interest outstanding) $1.00
-----
Class B shares:
Net asset value, offering price and redempton price per share
(net assets of $161,516,061 / 161,516,061 shares of
beneficial interest outstanding) $1.00
-----
A contingent deferred sales charge may be imposed on redemptions of Class B
shares.
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Operations
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Six Months Ended February 28, 1995 (Unaudited)
- ------------------------------------------------------------------------------
Net investment income:
Interest $6,166,797
---------
Expenses -
Management fee $ 636,684
Trustees' compensation 17,587
Shareholder servicing agent fee (Class A) 2,204
Shareholder servicing agent fee (Class B) 250,069
Distribution and service fee (Class B) 1,136,679
Custodian fee 35,137
Postage 25,479
Printing 20,691
Auditing fees 7,158
Legal fees 1,921
Miscellaneous 155,259
---------
Total expenses $2,288,868
Preliminary reduction of expenses by investment adviser (118,567)
---------
Net expenses $2,170,301
---------
Net investment income $3,996,496
---------
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Changes in Net Assets
</TABLE>
<TABLE>
<CAPTION>
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Six Months Ended
February 28, 1995 Nine Months Ended Year Ended
(Unaudited) August 31, 1994 November 30, 1993
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<S> <C> <C> <C>
Increase (decrease) in
net assets:
From operations -
Net investment income $ 3,996,496 $ 2,788,904 $ 1,447,426
------------ ------------ ------------
Distributions declared
to shareholders -
From net investment
income (Class A) $ (68,544) $ (23,520) $ (819)
From net investment
income (Class B) (3,927,952) (2,765,384) (1,446,607)
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Total distributions
declared to shareholders $ (3,996,496) $ (2,788,904) $ (1,447,426)
------------ ------------ ------------
Fund share (principal)
transactions at net
asset value of $1.00
per share -
Net proceeds from sale
of shares $404,211,031 $514,645,780 $361,353,850
Net asset value of
shares issued to
shareholders in
reinvestment of
distributions 3,322,303 2,337,731 1,295,224
Cost of shares
reacquired (457,734,427) (456,515,148) (332,765,233)
------------ ------------ ------------
Increase (decrease)
in net assets $(50,201,093) $ 60,468,363 $ 29,883,841
Net assets:
At beginning of period 215,791,300 155,322,937 125,439,096
------------ ------------ ------------
At end of period $165,590,207 $215,791,300 $155,322,937
------------ ------------ ------------
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -continued
Financial Highlights
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Nine Months Ended Nine Months
February 28, Ended Year Ended February 28, Ended
1995 August 31, November 30, 1995 August 31,
(Unaudited) 1994 1993<F2> (Unaudited) 1994
- ----------------------------------------------------------------------------------------------------------------
Class A Class B
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value -
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income<F3> 0.02 0.02 0.01 0.02 0.01
Less distributions
declared to shareholders from
net investment income (0.02) (0.02) (0.01) (0.02) (0.01)
------ ------ ------ ------ ------
Net asset value -
end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Total return 54%<F1> 2.89%<F1> 2.28%<F1> 3.48%<F1> 1.79%<F1>
Ratios (to average net assets)/Supplemental data<F3>:
Expenses 0.89%<F1> 0.86%<F1> 0.92%<F1> 1.90%<F1> 1.94%<F1>
Net investment income 4.67%<F1> 3.11%<F1> 2.26%<F1> 3.45%<F1> 1.88%<F1>
Net assets at end
of period (000 omitted) $4,074 $2,156 $ 49 $161,516 $213,635
<FN>
<F1> Annualized.
<F2> For the period from the commencement of offering of Class A shares,
September 7, 1993 to November 30, 1993.
<F3> The investment adviser did not impose a portion of its management fee for
the periods indicated. If this fee had been incurred by the Fund, the net
investment income per share and ratios would have been:
Net investment income $ 0.02 $ 0.02 $ 0.01 $ 0.02 $ 0.01
Ratios (to average net assets):
Expenses 0.99%<F1> 0.96%<F1> 1.02%<F1> 2.00%<F1> 2.04%<F1>
Net investment income 4.57%<F1> 3.01%<F1> 2.16%<F1> 3.35%<F1> 1.78%<F1>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights - continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30,
-------------------------------------------------------------------------------------------------------
1993 1992 1991 1990 1989 1988 1987<F2>
- -----------------------------------------------------------------------------------------------------------------------------------
Class B
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding throughout each period):
Net asset value -
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income<F3> 0.01 0.02 0.04 0.06 0.07 0.06 0.04
Less distributions declared to
shareholders from net
investment income (0.01) (0.02) (0.04) (0.06) (0.07) (0.06) (0.04)
----- ----- ----- ----- ----- ----- -----
Net asset value - end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- -----
Total return 1.16% 1.79% 4.56% 6.12% 7.34% 5.85% 4.42%<F1>
Ratios (to average net assets)/Supplemental data<F3>:
Expenses 2.00% 2.22% 2.04% 2.23% 2.24% 2.06% 2.06%<F1>
Net investment income 1.19% 1.83% 4.53% 6.06% 7.10% 5.59% 5.59%<F1>
Net assets at end of
period (000 omitted) $155,274 $125,439 $161,040 $203,314 $146,885 $139,518 $83,845
<F1> Annualized.
<F2> For the period from the commencement of investment operations, December 29,
1986 to November 30, 1987.
<F3> The investment adviser did not impose a portion of its management fee for
the periods indicated. If this fee had been incurred by the Fund, the net
investment income per share and ratios would have been:
Net investment income $ 0.01 $ 0.02 $ 0.04 -- -- -- --
Ratios (to average net assets):
Expenses 2.10% 2.32% 2.13% -- -- -- --
Net investment income 1.09% 1.73% 4.44% -- -- -- --
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Business and Organization
MFS Cash Reserve Fund (the Fund) is a 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. During 1994 the Fund changed its fiscal year end
from November 30 to August 31.
(2) Significant Accounting Policies
Investment Valuations - Money market instruments are valued at amortized cost,
which the Trustees have determined in good faith constitutes fair value. The
Fund's use of amortized cost is subject to the Fund's compliance with certain
conditions as specified under Rule 2a-7 of the Investment Company Act of 1940.
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.
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.
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.
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. Accordingly, no provision for federal income or excise tax is provided.
The net income of the Fund is determined once daily, as of the close of business
of the New York Stock Exchange, and all of the net income so determined is
declared in shares as a dividend to shareholders of record at the time of such
determination. Distributions are distributed in the form of additional shares of
the Fund or, at the election of the shareholder, in cash, on the last business
day of the month.
Multiple Classes of Shares of Beneficial Interest - The Fund offers both Class A
and Class B shares. Class A shares were first offered to the public on September
7, 1993. The two 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 settled
shares outstanding of each class, without distinction between share classes.
Dividends are declared separately for each class. No class has preferential
dividend rights; differences in per share dividend rates are generally due to
differences in separate class expenses, 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 and paid monthly at an annual rate of 0.55% of average
daily net assets, amounted to $636,684. The investment adviser did not impose a
portion of its fee ($118,567) which is reflected as a preliminary reduction of
expenses in the Statement of Operations.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - continued
The Fund pays no compensation directly to its Trustees who are officers of the
investment adviser, or to officers of the Fund, all of whom receive remuneration
for their services to the Fund from MFS. Certain of the officers and Trustees of
the Fund are officers or directors of MFS, MFS Fund Distributors, Inc. (MFD) and
MFS Service Center, Inc. (MFSC). The Fund has an unfunded defined benefit plan
for all of its independent Trustees. Included in Trustees' compensation is a net
periodic pension expense of $4,617 for the period ended February 28, 1995.
Distributor - The Trustees have adopted separate distribution plans for Class A
and Class B 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, a wholly
owned subsidiary of MFS, up to 0.35% of its average daily net assets
attributable to Class A shares annually in order that MFD may pay expenses on
behalf of the Fund related to the distribution and servicing of its shares.
These expenses include a service fee to each securities dealer that enters into
a sales agreement with MFD of up to 0.25% per annum of the Fund's average daily
net assets attributable to Class A shares which are attributable to that
securities dealer, a distribution fee to MFD of up to 0.10% per annum of the
Fund's average daily net assets attributable to Class A shares, commissions to
dealers and payments to MFD wholesalers for sales at or above a certain dollar
level, and other such distribution-related expenses that are approved by the
Fund. Payments under the Class A Distribution Plan will commence when the value
of the net assets of the Fund attributable to Class A shares first equals or
exceeds $40 million.
The Class B Distribution Plan provides 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
shares. MFD will pay to securities dealers that enter into a sales agreement
with MFD, all or a portion of the service fee attributable to Class B shares.
The service fee is intended to be additional consideration for services rendered
by the dealer with respect to Class B shares. Fees incurred under the
distribution plan during the period ended February 28, 1995 were 1.00% of
average daily net assets attributable to Class B shares on an annualized basis
and amounted to $1,136,679.
A contingent deferred sales charge is imposed on shareholder redemptions of
Class B shares in the event of a shareholder redemption within six years of
purchase. MFD receives all contingent deferred sales charges. Contingent
deferred sales charges imposed during the period ended February 28, 1995 were
approximately $366,000.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - continued
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earned
$2,204 and $250,069 for Class A and Class B 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% and up to 0.22% attributable to Class A and Class B shares,
respectively.
(4) Portfolio Securities
Purchases and sales of money market investments, exclusive of securities subject
to repurchase agreements, aggregated $999,641,033 and $1,049,543,517,
respectively.
(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, at net asset value of $1.00 per share, were as
follows:
<TABLE>
<CAPTION>
Class A Shares
Six Months Ended
February 28, 1995 Nine Months Ended Year Ended
(Unaudited) August 31, 1994 November 30, 1993<F1>
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold 5,548,870 5,460,125 137,859
Shares issued to
shareholders in
reinvestment of
distributions 61,789 20,023 197
Shares reacquired (3,692,947) (3,372,483) (89,287)
--------- --------- -------
Net increase 1,917,712 2,107,665 48,769
--------- --------- -------
<F1> For the period from the commencement of offering of Class A shares,
September 7, 1993 to November 30, 1993.
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
Six Months Ended
February 28, 1995 Nine Months Ended Year Ended
(Unaudited) August 31, 1994 November 30, 1993
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold 398,662,161 509,185,655 361,215,991
Shares issued to
shareholders in
reinvestment of
distributions 3,260,514 2,317,708 1,295,027
Shares reacquired (454,041,480) (453,142,665) (332,675,946)
----------- ----------- -----------
Net increase (decrease) (52,118,805) 58,360,698 29,835,072
----------- ----------- -----------
</TABLE>
(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
period ended February 28, 1995 was $1,036.
---------------------------------------------
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus.
<PAGE>
MFS(R) CASH BULK RATE
RESERVE FUND [LOGO] U.S. POSTAGE
P A I D
500 Boylston Street PERMIT # 55638
Boston, MA 02116 BOSTON, MA
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THE FIRST NAME IN MUTUAL FUNDS
