<PAGE>
[Logo] M F S (R)
INVESTMENT MANAGEMENT
We invented the mutual fund(R)
MFS(R) GLOBAL TOTAL
RETURN FUND
SEMIANNUAL REPORT o APRIL 30, 2000
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MUTUAL FUND GIFT KITS (see page 35)
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<PAGE>
TABLE OF CONTENTS
Letter from the Chairman .................................................. 1
Management Review and Outlook ............................................. 5
Performance Summary ....................................................... 10
Portfolio of Investments .................................................. 14
Financial Statements ...................................................... 20
Notes to Financial Statements ............................................. 27
Trustees and Officers ..................................................... 37
MFS ORIGINAL RESEARCH(R)
RESEARCH HAS BEEN CENTRAL TO INVESTMENT MANAGEMENT AT MFS
SINCE 1932, WHEN WE CREATED ONE OF THE FIRST IN-HOUSE
RESEARCH DEPARTMENTS IN THE MUTUAL FUND (SM)
INDUSTRY. ORIGINAL RESEARCH(SM) AT MFS IS MORE ORIGINAL RESEARCH
THAN JUST CRUNCHING NUMBERS AND CREATING
ECONOMIC MODELS: IT'S GETTING TO KNOW MFS
EACH SECURITY AND EACH COMPANY PERSONALLY.
MAKES A DIFFERENCE
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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<PAGE>
LETTER FROM THE CHAIRMAN
[Photo of Jeffrey L. Shames]
Jeffrey L. Shames
Dear Shareholders,
Historically, there have been two ways that shareholders in stocks and stock
mutual funds could potentially make money: capital gains from share price
appreciation and dividend payments. Over the past decade, however, it appears
to us that dividends have become less and less relevant as a means of
profiting from stock investments. Investors who in the past may have counted
on dividend payments from stocks or stock funds as a source of income are
sometimes finding their payments are no longer meeting their needs. In the
balance of this letter, we'd like to address why that has happened, why this
may in some ways be good for investors, and what investors may want to do to
adjust to the new reality of shrinking dividends.
A FUNDAMENTAL CHANGE
When a company pays a dividend, it is essentially sharing its profits with
stockholders. Until the 1950s, paying a dividend was standard practice for a
majority of American companies; dividend payments were virtually required to
compensate investors for taking on the risks associated with investing
in stocks.
What has happened in the ensuing decades, however, is a fundamental change in
the way investors view the stock market. The tremendous popularity of
Individual Retirement Accounts and 401(k) retirement plans has introduced a
flood of new investors to stocks and stock mutual funds, and a generally
rising market through most of the past decade has made the experience a very
positive one for many of those shareholders.
As a result, investors appear to be focusing much more on share price and on
company earnings -- which we believe are the strongest long-term driver of share
prices -- than on dividend payments. Summing up the trend, The New York Times
commented on January 4, 2000, that "a growing portion of corporate America
appears to be concluding that dividends are no longer needed to attract
investors and are therefore an unnecessary cost of doing business. Fewer
companies are raising dividends, and more and more major companies do not bother
to pay them at all."
BENEFITS FOR INVESTORS
In assessing whether this trend is good for investors, it may help to look at
what shareholders have traditionally regarded as the benefits of dividends. One
benefit was that a dividend payment served as an indication that a company was
in good health, because it was generating profits that it could share with its
investors. However, there are other ways for a corporation to use its profits
that over the long term may benefit shareholders more than a dividend.
As part of the MFS Original Research(R) process that we use in evaluating
potential investments, one thing we look for is companies that are investing
their profits back in their businesses. Profits can be used to fund additional
research, product development, marketing, and other areas that may improve the
earnings of a company and potentially result in higher stock prices. Share
buybacks are another way we like to see a company reinvest its profits. By
buying back its own shares and thus reducing the number of shares outstanding,
a company may increase the value of existing shares. Over the long term, we
believe such actions may benefit shareholders more than a dividend payment. An
additional reason we feel dividends are an inefficient way for a company to
use its profits is that dividend payouts are subject to double taxation: once
as corporate profits and a second time as ordinary income to shareholders.
POTENTIAL DOWNSIDE PROTECTION
"Downside protection" is a second potential benefit that investors have
historically attributed to dividends. The reasoning went that, during a bad
market period, a stockholder could at least count on dividend payments to
somewhat counteract the effect of declining share prices. We believe, however,
that the best long-term protection against market volatility is simply
investing in good businesses -- which is why our research is focused on
identifying companies with the potential to grow earnings over the long haul,
taking down markets in their stride.
And although dividend payments may appear to provide some short-term protection
against volatility, over the past decade stock prices in general have risen much
faster than dividends, making most dividend payments too small to provide
significant protection. In 1999, for example, the average dividend yield of
stocks in the Standard & Poor's 500 Composite Index was only 1.21%(1) -- whereas
yields had averaged in the 3% - 4% range or greater during the decades of the
1960s, '70s, and '80s.(2)
ALTERNATE INCOME STREAMS
A third benefit of stock dividend payments has traditionally been that they
may provide a steady stream of income, allowing an investor to receive money
from stock or stock mutual fund investments without selling shares. This
benefit has often been used to provide retirement income. Over the past
decade, however, many investors have found their dividend checks shrinking
while the value of their holdings may have appreciated considerably.
Intuitively, receiving a stream of dividend income without reducing the
principal in one's account may seem preferable to selling shares to generate
income. But investors should also bear in mind the tax consequences of
dividend income. Dividends are federally taxed as ordinary income, whereas
profits from selling stock or mutual fund shares held more than one year are
taxed at the capital gains rate of 20% -- which for many investors is lower
than their ordinary income tax bracket. Many shareholders may find themselves
paying lower taxes on profits from share appreciation than on dividend income.
Given the current reality of low and declining stock dividends, we would
suggest that investors seeking an income stream from their equity portfolio
talk with their investment professionals about alternate payout methods. Two
possible strategies are systematic withdrawals and bond investing.
With a systematic withdrawal, an investor's account is set up to sell shares
in order to pay out a fixed amount on a regular schedule. The advantage of
this approach is that the payout amount is always the same, regardless of
market fluctuations or variations in dividends paid by the holdings in the
account. In a period when the market is rising, share price appreciation may
in fact compensate for some selling of holdings. Of course, the disadvantage
of a systematic withdrawal is that, depending on the payout amount, the
principal balance in the account will most likely shrink as shares are sold.
At some point an investor can potentially run out of money.
For investors who feel more comfortable not drawing down their account
principal, bond funds may present an attractive alternative for providing an
income stream. High-yield bond funds, in particular, may offer the potential
for higher dividend yields than many stock funds are offering today. A
disadvantage is that, historically, bond funds have not tended to offer as
much potential for long-term share price appreciation as have stock funds.
Investors should also understand that, although investments in lower-rated
securities such as high-yield bonds may provide greater returns, they are also
associated with greater-than-average risk.(3) We suggest that investors work
with their investment professionals to determine whether a bond fund or
systematic withdrawal plan may meet their needs within their expected
time frames.
As with most major changes in the financial markets, the overall decline in
stock dividend payments presents a combination of challenges and potential
benefits for investors. We feel that most investors will be best served by
working with their investment professionals to continually monitor such
changes in the financial markets, as well as changes in their own situations,
and adjusting their portfolios accordingly. As always, we appreciate your
confidence in MFS and welcome any questions or comments you may have.
Respectfully,
/s/ Jeffrey L. Shames
Jeffrey L. Shames
Chairman and Chief Executive Officer
MFS Investment Management(R)
May 18, 2000
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(1) Source: Standard & Poor's. The Standard & Poor's 500 Composite Index (the
S&P 500) is a popular, unmanaged index of common stock total return
performance. It is not possible to invest directly in an index.
(2) Source: FactSet Research. The dividend yield of a stock is calculated by
dividing the dividend per share by the current market price per share.
(3) These risks may increase share price volatility. Please see a prospectus for
details.
A prospectus containing more complete information on any MFS product,
including charges and expenses, can be obtained from your investment
professional. Please read it carefully before you invest or send money.
Investments in mutual funds will fluctuate and may be worth more or less upon
redemption.
The opinions expressed in this letter are those of Jeffrey L. Shames, and no
forecasts can be guaranteed.
<PAGE>
MANAGEMENT REVIEW AND OUTLOOK
[Photo of Frederick J. Simmons]
Frederick J. Simmons
For the six months ended April 30, 2000, Class A shares of the Fund provided a
total return of 7.01%, Class B shares 6.67%, Class C shares 6.71%, and Class I
shares 7.24%. These returns include the reinvestment of any distributions but
exclude the effects of any sales charges. The Fund's returns compare to a
9.73% return over the same period for the average global flexible fund tracked
by Lipper Inc., an independent firm that reports mutual fund performance.
During the same period, the Fund's results also compare to returns of 9.87%
for the Lipper Global Flexible Fund Index, 7.19% for the Standard & Poor's 500
Composite Index (the S&P 500), and 2.83% for a benchmark comprised of 60% of
the Morgan Stanley Capital International (MSCI) World Index and 40% of the
J.P. Morgan Global Government Bond Index (the Morgan Index). The S&P 500 is a
popular, unmanaged index of common stock total return performance. The Lipper
mutual fund indices are unmanaged, net-asset-value-weighted indices of the
largest qualifying mutual funds within their respective investment objectives,
adjusted for the reinvestment of capital gain distributions and income
dividends. The MSCI World Index is a broad, unmanaged index of global
equities. The Morgan Index is an aggregate of actively traded government bonds
issued by 13 countries, including the United States, with remaining maturities
of at least one year.
Q. HOW DID THE FUND'S INVESTMENT STRATEGY IMPACT PERFORMANCE DURING THE PERIOD?
A. Our strategy leans more toward value, or what we sometimes refer to as
seeking value among growth stocks. In addition, unlike other flexible global
funds managers who may maintain a larger exposure to equities, we follow a
disciplined asset allocation strategy toward managing this portfolio.
Accordingly, the Fund's typical asset allocation has remained consistent,
ranging from 55% to 65% in equities and 35% to 45% in bonds and short-term
investments. We believe our strategy offers investors the ability to pursue
long-term growth while also helping to reduce risk and volatility through
broad diversification across different asset classes. However, similar to
what we experienced in the United States, value- oriented stocks in most
developed countries tended to underperform the high-tech growth stocks that
dominated the market during the first four months of the period. Although we
started to see investors shift assets into more value-oriented stocks in
March and April, during most of the period our approach detracted from
relative performance.
Q. ALTHOUGH YOU INCREASED THE FUND'S EXPOSURE TO TECHNOLOGY IN THE SECOND HALF
OF 1999, THAT WEIGHTING HAS DECLINED RECENTLY. WHY?
A. We're very comfortable with the Fund's current weighting in technology, and
most of our holdings in this sector provided a major boost to total return
during the period. The recent decline in the technology weighting is due
primarily to the weakness in stock prices in March and April. Despite the
recent volatility in this sector, Japanese technology conglomerates such as
Canon and Rohm represented large positions in the portfolio and held up much
better than many other technology stocks. We believe that their product
lines offer compelling competitive advantages, their earnings outlooks look
bright, and their management teams have adopted Western-style strategies of
creating shareholder value through effective cost-cutting measures, greater
efficiency, and aggressive marketing.
Q. CAN YOU TELL US ABOUT SOME OTHER STOCKS THAT WORKED WELL FOR THE FUND?
A. We've talked about our significant holding in the German telecommunications
company Mannesmann in previous reports, and since being acquired by Vodafone
AirTouch, it has become the largest holding in the portfolio and has
provided exceptional performance for the Fund. We're strong believers in the
combined company's ability to remain a dominant global provider of
telecommunications services. As the world's largest provider of wireless
communications, we believe it's also well positioned to outperform in one of
the fastest-growing sectors of the global economy. Other stocks that
contributed favorably to total return were Television Francaise, Compass
Group, and Skandia. Television Francaise, one of the leading television
station operators in France, benefited from the impressive acceleration in
advertising spending due to the high-tech boom that has embraced continental
Europe. British catering company Compass Group is a classic example of
business outsourcing, an area that has experienced tremendous growth. We
believe Compass' business model of operating the kitchens and cafeterias of
established companies is an excellent concept, and it's quickly becoming a
world leader in the corporate catering business due to its low-cost
structure and strong management. Skandia, a Swedish insurance firm, also
performed strongly. We believe European investors have become increasingly
focused on personal investing and retirement planning, which has added
considerably to Skandia's bottom line.
Q. WHICH STOCKS DETRACTED FROM PERFORMANCE?
A. Our holding in Gannett Co. was a disappointment during the period. Despite
what we believe were strong business fundamentals and a bright earnings
outlook, this diversified newspaper publisher and leading provider of
commercial printing services experienced poor stock performance due to weak
investor sentiment. In general, it was a difficult period for financial
services stocks. Our holdings in companies such as the Federal Home Loan
Mortgage Corp. produced lackluster results due to ongoing concerns about the
negative effects of higher interest rates.
Q. WHAT WAS THE STRUCTURE OF THE FUND'S BOND POSITION?
A. In keeping with the Fund's strategy, our fixed-income holdings were focused
on bonds issued by major governments. During the period, we took a generally
defensive posture by trying to carefully balance the Fund's sensitivity to
interest rates. That was particularly the case in the United States, where
we were concerned about the prospects of higher interest rates and
inflation. In Europe, it was a bit different. There, we thought the markets
had priced in more inflation than we thought would occur, so we were not as
defensive. We favored issuers in Greece, the United Kingdom, and Germany.
Q. WHAT'S YOUR OUTLOOK FOR THE COMING MONTHS?
A. We think the equity market in the United States has some short-term hurdles
to get over before it can resume a steady growth path. We feel the primary
focus for investors right now seems to be how many interest-rate increases
will be necessary to slow U.S. economic growth. Historically, this type of
environment has been very difficult for equities. As a result, we remain
focused on some of the more defensive stocks in the U.S. market, companies
with steady performance and long-term track records. Additionally, we'll
continue to allocate a significant amount of assets to securities in Europe,
Japan, and the United Kingdom, all of which we believe offer tremendous
opportunities for strong stock performance relative to the United States.
/s/ Frederick J. Simmons
Frederick J. Simmons
Portfolio Manager
The opinions expressed in this report are those of the portfolio manager and
are current only through the end of the period of the report as stated on the
cover. The manager's views are subject to change at any time based on market
and other conditions, and no forecasts can be guaranteed.
It is not possible to invest directly in an index.
<PAGE>
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PORTFOLIO MANAGER'S PROFILE
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FREDERICK J. SIMMONS IS SENIOR VICE PRESIDENT OF MFS INVESTMENT
MANAGEMENT(R) AND PORTFOLIO MANAGER OF MFS(R) GLOBAL TOTAL RETURN FUND,
MFS(R) INTERNATIONAL GROWTH AND INCOME FUND, AND THE GLOBAL TOTAL RETURN
SERIES AND THE INTERNATIONAL GROWTH AND INCOME SERIES OFFERED THROUGH
MFS(R)/SUN LIFE ANNUITY PRODUCTS. HE ALSO MANAGES THE NOMURA GLOBAL
BALANCED OPEN FUND AND THE NOMURA GN GLOBAL TOTAL RETURN FUND UNDER
SUBADVISORY AGREEMENTS WITH NOMURA ASSET MANAGEMENT CO. OF JAPAN.
MR. SIMMONS JOINED MFS IN 1971 AS INVESTMENT OFFICER IN THE RESEARCH
DEPARTMENT AND WAS NAMED ASSISTANT VICE PRESIDENT IN 1974, VICE
PRESIDENT IN 1975, AND SENIOR VICE PRESIDENT IN 1983. MR. SIMMONS
GRADUATED WITH HONORS FROM THE AMOS TUCK SCHOOL OF BUSINESS
ADMINISTRATION OF DARTMOUTH COLLEGE. HE IS A CHARTERED FINANCIAL
ANALYST, A MEMBER OF THE BOSTON SECURITY ANALYSTS SOCIETY, INC., AND
PAST PRESIDENT OF THE ELECTRONIC ANALYSTS OF BOSTON.
ALL EQUITY PORTFOLIO MANAGERS BEGAN THEIR CAREERS AT MFS INVESTMENT
MANAGEMENT(R) AS RESEARCH ANALYSTS. OUR PORTFOLIO MANAGERS ARE SUPPORTED
BY AN INVESTMENT STAFF OF OVER 100 PROFESSIONALS UTILIZING MFS ORIGINAL
RESEARCH(R), A GLOBAL, COMPANY-ORIENTED, BOTTOM-UP PROCESS OF SELECTING
SECURITIES.
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This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus. A prospectus containing more information,
including the exchange privilege and all charges and expenses, for any other MFS
product is available from your investment professional, or by calling MFS at
1-800-225-2606. Please read it carefully before investing or sending money.
<PAGE>
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FUND FACTS
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OBJECTIVE: SEEKS TOTAL RETURN: ABOVE-AVERAGE CURRENT INCOME
(COMPARED TO AN ALL-STOCK PORTFOLIO) AND
OPPORTUNITIES FOR LONG-TERM GROWTH OF CAPITAL
AND INCOME.
COMMENCEMENT OF
INVESTMENT OPERATIONS: SEPTEMBER 4, 1990
CLASS INCEPTION: CLASS A SEPTEMBER 4, 1990
CLASS B SEPTEMBER 7, 1993
CLASS C JANUARY 3, 1994
CLASS I JANUARY 2, 1997
SIZE: $360.7 MILLION NET ASSETS AS OF APRIL 30, 2000
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PERFORMANCE SUMMARY
Because mutual funds are designed for investors with long-term goals, we have
provided cumulative results as well as the average annual total returns for
the applicable time periods. Investment results reflect the percentage change
in net asset value, including reinvestment of dividends. (See Notes
to Performance Summary.)
<TABLE>
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN THROUGH APRIL 30, 2000
CLASS A
<CAPTION>
6 Months 1 Year 3 Years 5 Years Life*
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cumulative Total Return Excluding Sales Charge +7.01% +7.41% +41.62% +82.23% +205.60%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales
Charge -- +7.41% +12.30% +12.75% + 12.27%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales
Charge -- +2.30% +10.49% +11.66% + 11.71%
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CLASS B
<CAPTION>
6 Months 1 Year 3 Years 5 Years Life*
------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +6.67% +6.73% +38.92% +76.22% +192.30%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales
Charge -- +6.73% +11.58% +12.00% + 11.75%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales
Charge -- +2.81% +10.77% +11.74% + 11.75%
------------------------------------------------------------------------------------------------------------------
CLASS C
<CAPTION>
6 Months 1 Year 3 Years 5 Years Life*
------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +6.71% +6.71% +38.94% +76.40% +193.40%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales
Charge -- +6.71% +11.58% +12.02% + 11.80%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Including Sales
Charge -- +5.73% +11.58% +12.02% + 11.80%
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CLASS I
<CAPTION>
6 Months 1 Year 3 Years 5 Years Life*
------------------------------------------------------------------------------------------------------------------
Cumulative Total Return Excluding Sales Charge +7.24% +7.98% +43.34% +84.58% +209.55%
------------------------------------------------------------------------------------------------------------------
Average Annual Total Return Excluding Sales
Charge -- +7.98% +12.75% +13.04% + 12.42%
------------------------------------------------------------------------------------------------------------------
* For the period from the commencement of the Fund's investment operations, September 4, 1990, through
April 30, 2000.
</TABLE>
NOTES TO PERFORMANCE SUMMARY
Class A Share Performance Including Sales Charge takes into account the
deduction of the maximum 4.75% sales charge. Class B Share Performance Including
Sales Charge takes into account the deduction of the applicable contingent
deferred sales charge (CDSC), which declines over six years from 4% to 0%. Class
C Share Performance Including Sales Charge takes into account the deduction of
the 1% CDSC applicable to Class C shares redeemed within 12 months. Class I
shares have no sales charge and are only available to certain institutional
investors.
Class B, C, and I share performance include the performance of the Fund's
Class A shares for periods prior to their inception (blended performance).
Class B and C blended performance has been adjusted to take into account the
CDSC applicable to Class B and C shares rather than the initial sales charge
(load) applicable to Class A shares. Class I share blended performance has
been adjusted to account for the fact that Class I shares have no sales
charge. These blended performance figures have not been adjusted to take into
account differences in class-specific operating expenses. Because operating
expenses of Class B and C shares are higher than those of Class A, the blended
Class B and C share performance is higher than it would have been had Class B
and C shares been offered for the entire period. Conversely, because operating
expenses of Class I shares are lower than those of Class A, the blended Class
I share performance is lower than it would have been had Class I shares been
offered for the entire period.
All performance results reflect any applicable expense subsidies and waivers,
without which the results would have been less favorable. Subsidies and
waivers may be rescinded at any time. See the prospectus for details. All
results are historical and assume the reinvestment of capital gains.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. MORE RECENT
RETURNS MAY BE MORE OR LESS THAN THOSE SHOWN. PAST PERFORMANCE IS NO GUARANTEE
OF FUTURE RESULTS.
Investments in foreign securities may provide superior returns but also involve
greater risk than U.S. investments. Investments in foreign and emerging market
securities may be favorably or unfavorably affected by changes in interest rates
and currency exchange rates, market conditions, and the economic and political
conditions of the countries where investments are made. These risks may increase
share price volatility. See the prospectus for details.
<PAGE>
PORTFOLIO CONCENTRATION AS OF APRIL 30, 2000
FIVE LARGEST STOCK SECTORS
UTILITIES & COMMUNICATIONS 17.7%
TECHNOLOGY 15.8%
FINANCIAL SERVICES 12.8%
HEALTH CARE 8.7%
CONSUMER STAPLES 8.3%
<TABLE>
TOP 10 STOCK HOLDINGS
<S> <C>
VODAFONE AIRTOUCH PLC 3.3% BP AMOCO PLC 2.6%
British global industrial and British oil and petrochemical company
telecommunications company
TELEFONICA S.A. 2.5%
CANON, INC. 3.2% Spanish international telecommunications company
Japanese office equipment and imaging company
COMPASS GROUP 2.3%
ROHM CO. 3.1% British commercial food catering company
Japanese electronics company
AKZO NOBEL N.V. 2.0%
HEWLETT-PACKARD CO. 2.9% Diversified Dutch chemical company
U.S. computer systems company
QBE INSURANCE GROUP LTD. 2.0%
TELEVISION FRANCAISE 2.8% Australian commercial insurance company
French television company
</TABLE>
The portfolio is actively managed, and current holdings may be different.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited) -- April 30, 2000
Stocks - 62.1%
<CAPTION>
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ISSUER SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Foreign Stocks - 45.8%
Australia - 1.6%
Australia & New Zealand Banking Group Ltd. (Banks and
Credit Cos.)* 201,284 $ 1,390,598
QBE Insurance Group Ltd. (Insurance)* 1,070,127 4,491,447
------------
$ 5,882,045
------------------------------------------------------------------------------------------------------
Bermuda
FLAG Telecom Holdings Ltd. (Telecommunications)* 4,970 $ 96,915
------------------------------------------------------------------------------------------------------
Canada - 1.9%
BCE, Inc. (Telecommunications) 35,300 $ 4,050,675
Canadian National Railway Co. (Railroads) 95,539 2,681,063
------------
$ 6,731,738
------------------------------------------------------------------------------------------------------
Denmark - 0.3%
International Service Systems Co. (Business Services)* 17,300 $ 1,094,001
------------------------------------------------------------------------------------------------------
France - 5.1%
Aventis S.A. (Pharmaceuticals) 25,200 $ 1,385,709
Axa (Insurance) 10,900 1,615,833
Castorama Dubois Investisse (Stores) 11,561 2,521,870
Compagnie Francaise d' Etudes et de Construction S.A
(Construction) 10,600 1,209,110
Pinault-Printemps-Redoute S.A. (Retail) 12,100 2,440,388
Sanofi-Synthelabo S.A. (Medical and Health Products)* 33,920 1,265,567
Television Francaise (Broadcasting) 9,110 6,234,900
Total Fina S.A., ADR (Oils) 23,800 1,799,875
------------
$ 18,473,252
------------------------------------------------------------------------------------------------------
Germany - 1.6%
Fresenius AG, Preferred (Medical Supplies) 5,600 $ 1,239,376
Henkel KGaA, Preferred (Chemicals) 46,420 2,700,233
ProSieben Media AG, Preferred (Entertainment) 20,700 1,847,558
------------
$ 5,787,167
------------------------------------------------------------------------------------------------------
Hong Kong - 0.5%
China Telecom (Hong Kong) Ltd. (Telecommunications) 258,000 $ 1,846,714
------------------------------------------------------------------------------------------------------
Italy - 1.7%
San Paolo - Imi S.p.A. (Banks and Credit Cos.) 169,444 $ 2,371,718
Telecom Italia S.p.A. (Telecommunications) 254,200 3,553,432
------------
$ 5,925,150
------------------------------------------------------------------------------------------------------
Japan - 11.9%
Canon, Inc. (Special Products and Services) 156,000 $ 7,136,216
Eisai Co. Ltd. (Medical and Health Products) 54,000 1,575,146
Fuji Heavy Industries Ltd. (Automotive) 153,000 1,168,858
Fujitsu Ltd. (Computer Hardware - Systems) 91,000 2,578,572
Hitachi Ltd. (Electronics) 245,000 2,926,660
Nintendo Co., Ltd. (Entertainment) 5,600 933,420
Nippon Telegraph & Telephone Co. (Utilities - Telephone) 72 893,416
NTT Mobile Communications Network, Inc. (Telecommunications) 125 4,178,628
Orix Corp. (Financial Services) 9,120 1,302,254
Rohm Co. (Electronics) 20,700 6,938,976
Secom Co. (Security Services) 37,000 3,104,176
Sony Corp. (Electronics) 13,100 1,505,427
Sony Corp., New Shares (Electronics)* 13,100 1,516,344
Takeda Chemical Industries Co. (Pharmaceuticals) 47,000 3,094,453
Terumo Corp. (Medical and Health Products) 73,000 2,210,483
Uni-Charm Corp. (Paper Products) 9,200 623,613
Ushio, Inc. (Electronics) 58,000 1,356,144
------------
$ 43,042,786
------------------------------------------------------------------------------------------------------
Mexico - 0.5%
Fomento Economico Mexicano S.A. de C.V., ADR (Food
and Beverage Products) 25,900 $ 1,068,375
Nuevo Grupo Iusacell S.A. de C.V., ADR (Telecommunications)* 39,100 623,156
------------
$ 1,691,531
------------------------------------------------------------------------------------------------------
Netherlands - 4.1%
Akzo Nobel N.V. (Chemicals) 111,480 $ 4,562,628
Hunter Douglas N.V., ADR (Consumer Goods and Services)* 68,700 1,567,280
ING Groep N.V. (Financial Services)* 40,849 2,228,402
KPN N.V. (Telecommunications) 14,500 1,460,898
Royal Dutch Petroleum Co., ADR (Oils) 29,910 1,716,086
STMicroelectronics Co. (Electronics) 17,175 3,276,614
------------
$ 14,811,908
------------------------------------------------------------------------------------------------------
Singapore - 0.4%
Singapore Press Holdings Ltd. (Printing and Publishing) 73,000 $ 1,429,191
------------------------------------------------------------------------------------------------------
South Korea - 0.2%
Korea Electric Power Corp. (Utilities - Electric) 17,350 $ 508,224
------------------------------------------------------------------------------------------------------
Spain - 2.9%
Altadis S.A. (Tobacco) 252,054 $ 2,943,831
Banco Popular Espanol S.A. (Banks and Credit Cos.) 20,526 554,086
Repsol-YPF, S.A. (Oils) 68,900 1,409,022
Telefonica S.A. (Telecommunications) 251,290 5,591,170
------------
$ 10,498,109
------------------------------------------------------------------------------------------------------
Sweden - 1.2%
Saab AB, "B" (Aerospace) 309,500 $ 2,521,314
Skandia Forsakrings AB (Insurance) 39,600 1,895,815
Tele1 Europe Holdings AB (Telecommunications)* 1,970 30,998
------------
$ 4,448,127
------------------------------------------------------------------------------------------------------
Switzerland - 1.1%
Carrier 1 International S.A., ADR (Telecommunications)* 1,930 $ 158,753
Nestle S.A. (Food and Beverage Products) 2,062 3,635,377
------------
$ 3,794,130
------------------------------------------------------------------------------------------------------
United Kingdom - 10.8%
AstraZeneca Group PLC (Medical and Health Products) 32,563 $ 1,360,880
Boots Co. PLC (Retail)* 243,300 1,868,040
BP Amoco PLC, ADR (Oils) 111,946 5,709,246
British Aerospace PLC (Aerospace)* 336,827 2,071,004
British Telecommunications PLC (Telecommunications)* 156,613 2,803,513
Cable & Wireless Communications PLC (Telecommunications) 112,400 1,684,882
Carlton Communicatons PLC (Broadcasting)* 121,500 1,472,353
CGU PLC (Insurance)* 85,400 1,224,318
Compass Group (Restaurants and Food Service) 353,100 5,084,126
Diageo PLC (Food and Beverage Products)* 265,394 2,139,921
Lloyds TSB Group PLC (Banks and Credit Cos.)* 118,300 1,154,594
Reuters Group PLC (Business Services) 147,150 2,636,407
United News & Media PLC (Broadcasting) 198,700 2,582,624
Vodafone AirTouch PLC (Telecommunications)* 1,590,864 7,280,434
------------
$ 39,072,342
------------------------------------------------------------------------------------------------------
Total Foreign Stocks $165,133,330
------------------------------------------------------------------------------------------------------
U.S. Stocks - 16.3%
Advertising - 0.3%
Omnicom Group, Inc. 12,400 $ 1,129,175
------------------------------------------------------------------------------------------------------
Aerospace and Defense - 0.3%
Boeing Co. 29,700 $ 1,178,719
------------------------------------------------------------------------------------------------------
Auto Parts - 0.2%
Delphi Automotive Systems Corp. 33,700 $ 644,512
------------------------------------------------------------------------------------------------------
Biotechnology - 0.8%
Pharmacia Corp. 59,597 $ 2,976,125
------------------------------------------------------------------------------------------------------
Business Machines - 2.7%
Hewlett-Packard Co. 47,800 $ 6,453,000
International Business Machines Corp. 22,480 2,509,330
Xerox Corp. 22,100 584,269
------------
$ 9,546,599
------------------------------------------------------------------------------------------------------
Business Services - 0.1%
United Parcel Service, Inc. 5,460 $ 363,090
------------------------------------------------------------------------------------------------------
Computer Services - 0.3%
Computer Sciences Corp.* 14,900 $ 1,215,281
------------------------------------------------------------------------------------------------------
Construction Services - 0.5%
Martin Marietta Materials, Inc. 35,286 $ 1,870,158
------------------------------------------------------------------------------------------------------
Consumer Goods and Services - 1.0%
Philip Morris Cos., Inc. 51,650 $ 1,129,844
Tyco International Ltd. 53,944 2,478,052
------------
$ 3,607,896
------------------------------------------------------------------------------------------------------
Electrical Equipment - 1.9%
Emerson Electric Co. 48,500 $ 2,661,438
General Electric Co. 27,090 4,259,902
------------
$ 6,921,340
------------------------------------------------------------------------------------------------------
Financial Institutions - 0.8%
Federal Home Loan Mortgage Corp. 24,060 $ 1,105,256
Goldman Sachs Group, Inc. 2,200 205,150
Merrill Lynch & Co., Inc. 15,500 1,580,031
------------
$ 2,890,437
------------------------------------------------------------------------------------------------------
Food and Beverage Products - 1.2%
Anheuser-Busch Cos., Inc. 60,300 $ 4,254,919
------------------------------------------------------------------------------------------------------
Insurance - 2.1%
American International Group, Inc. 39,175 $ 4,297,008
Metlife, Inc.* 22,520 372,988
ReliaStar Financial Corp. 68,340 2,942,891
------------
$ 7,612,887
------------------------------------------------------------------------------------------------------
Internet
VIA NET.WORKS, Inc.* 3,110 $ 62,006
------------------------------------------------------------------------------------------------------
Machinery - 0.3%
Ingersoll-Rand Co. 24,900 $ 1,168,744
------------------------------------------------------------------------------------------------------
Medical and Health Products - 0.9%
Bristol-Myers Squibb Co. 62,660 $ 3,285,734
------------------------------------------------------------------------------------------------------
Oils - 0.8%
Exxon Mobil Corp. 19,090 $ 1,483,054
Halliburton Co. 29,300 1,294,694
------------
$ 2,777,748
------------------------------------------------------------------------------------------------------
Printing and Publishing - 0.7%
Gannett Co., Inc. 36,030 $ 2,301,416
------------------------------------------------------------------------------------------------------
Telecommunications - 0.8%
Bell Atlantic Corp. 50,900 $ 3,015,825
------------------------------------------------------------------------------------------------------
Utilities - Electric - 0.6%
Sierra Pacific Resources Co. 128,751 $ 1,947,359
------------------------------------------------------------------------------------------------------
Total U.S. Stocks $ 58,769,970
------------------------------------------------------------------------------------------------------
Total Stocks (Identified Cost, $171,265,564) $223,903,300
------------------------------------------------------------------------------------------------------
Bonds - 32.4%
------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
(000 OMITTED)
------------------------------------------------------------------------------------------------------
U.S. Bonds - 19.3%
U.S. Federal Agencies - 1.3%
Federal National Mortgage Association, 6.5s, 2004 $ 2,927 $ 2,846,039
Federal National Mortgage Association, 1.75s, 2008 190,000 1,799,444
------------
$ 4,645,483
------------------------------------------------------------------------------------------------------
U.S. Treasury Obligations - 18.0%
U.S. Treasury Notes, 6s, 2004 $ 1,821 $ 1,782,868
U.S. Treasury Notes, 7.875s, 2004 5,625 5,900,963
U.S. Treasury Notes, 5.875s, 2005 26,180 25,361,875
U.S. Treasury Notes, 5.625s, 2006 23,019 21,964,114
U.S. Treasury Notes, 3.875s, 2009 3,095 3,064,514
U.S. Treasury Notes, 4.25s, 2010 4,625 4,723,494
U.S. Treasury Notes, 6.5s, 2010 2,217 2,260,985
------------
$ 65,058,813
------------------------------------------------------------------------------------------------------
Total U.S. Bonds $ 69,704,296
------------------------------------------------------------------------------------------------------
Foreign Bonds - 13.1%
Denmark - 1.4%
Kingdom of Denmark, 7s, 2007 DKK 37,932 $ 5,013,110
------------------------------------------------------------------------------------------------------
France - 0.7%
Republic of France, 4s, 2009 EUR 3,167 $ 2,585,062
------------------------------------------------------------------------------------------------------
Germany - 3.6%
Federal Republic of Germany, 4.5s, 2009 EUR 15,178 $ 12,986,840
------------------------------------------------------------------------------------------------------
Greece - 1.0%
Hellenic Republic, 8.9s, 2003 GRD 648,000 $ 1,887,075
Hellenic Republic, 8.7s, 2005 413,000 1,243,083
Hellenic Republic, 8.6s, 2008 193,000 600,697
------------
$ 3,730,855
------------------------------------------------------------------------------------------------------
Italy - 0.9%
Republic of Italy, 5s, 2008 EUR 3,578 $ 3,157,380
------------------------------------------------------------------------------------------------------
Japan - 1.7%
International Bank for Reconstruction and
Developement, 2s, 2008 (Banks and Credit Cos.) JPY 630,400 $ 6,060,830
------------------------------------------------------------------------------------------------------
Sweden - 0.4%
Kingdom of Sweden, 6s, 2005 SEK 4,000 $ 457,708
Kingdom of Sweden, 9s, 2009 8,700 1,210,117
------------
$ 1,667,825
------------------------------------------------------------------------------------------------------
United Kingdom - 3.4%
United Kingdom Treasury, 6.5s, 2003 GBP 5,000 $ 7,932,945
United Kingdom Treasury, 6.75s, 2004 2,624 4,245,855
------------
$ 12,178,800
------------------------------------------------------------------------------------------------------
Total Foreign Bonds $ 47,380,702
------------------------------------------------------------------------------------------------------
Total Bonds (Identified Cost, $126,340,572) $117,084,998
------------------------------------------------------------------------------------------------------
Short-Term Obligations - 4.4%
------------------------------------------------------------------------------------------------------
Federal Home Loan Bank Corp., due 5/01/00,
at Amortized Cost $ 15,830 $ 15,830,000
------------------------------------------------------------------------------------------------------
Call Options Purchased
------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
OF CONTRACTS
ISSUER/EXPIRATION MONTH/STRIKE PRICE (000 OMITTED)
------------------------------------------------------------------------------------------------------
Japan Government Bonds/May/130.85
(Premiums Paid, $67,096) JPY 540,000 $ 94,509
------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $313,503,232) $356,912,807
------------------------------------------------------------------------------------------------------
Put Options Written
------------------------------------------------------------------------------------------------------
Japan Government Bonds/May/130.85
(Premiums Paid, $(67,096)) JPY (540,000) $ (7,501)
------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.1% 3,793,704
------------------------------------------------------------------------------------------------------
Net Assets - 100.0% $360,699,010
------------------------------------------------------------------------------------------------------
* Non-income producing 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.
DKK = Danish Kroner JPY = Japanese Yen
EUR = Euro NZD = New Zealand Dollars
GBP = British Pounds SEK = Swedish Krona
GRD = Greek Drachma
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (Unaudited)
------------------------------------------------------------------------------------------
APRIL 30, 2000
------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments, at value (identified cost, $313,503,232) $356,912,807
Cash 3,424
Net receivable for forward foreign currency exchange contracts to sell 1,061,587
Net receivable for forward foreign currency exchange contracts
subject to master netting agreements 96,048
Receivable for Fund shares sold 312,743
Receivable for investments sold 1,202,890
Interest and dividends receivable 3,371,049
Other assets 3,809
------------
Total assets $362,964,357
------------
Liabilities:
Payable for Fund shares reacquired $ 797,711
Payable for investments purchased 1,182,202
Written options outstanding, at value (premiums received, $67,096) 7,501
Payable to affiliates -
Management fee 25,398
Shareholder servicing agent fee 2,626
Distribution and service fee 19,496
Administrative fee 516
Accrued expenses and other liabilities 229,897
------------
Total liabilities $ 2,265,347
------------
Net assets $360,699,010
============
Net assets consist of:
Paid-in capital $301,970,084
Unrealized appreciation on investments and translation of assets
and liabilities in foreign currencies 44,488,466
Accumulated undistributed net realized gain on investments and
foreign currency transactions 13,053,326
Accumulated undistributed net investment income 1,187,134
------------
Total $360,699,010
============
Shares of beneficial interest outstanding 26,201,621
============
Class A shares:
Net asset value per share
(net assets of $185,253,522 / 13,432,017 shares of
beneficial interest outstanding) $13.79
======
Offering price per share (100 / 95.25 of net asset value
per share) $14.48
======
Class B shares:
Net asset value and offering price per share
(net assets of $125,457,672 / 9,124,714 shares of
beneficial interest outstanding) $13.75
======
Class C shares:
Net asset value and offering price per share
(net assets of $48,392,954 / 3,529,582 shares of
beneficial interest outstanding) $13.71
======
Class I shares:
Net asset value, offering price, and redemption price per share
(net assets of $1,594,862 / 115,308 shares of
beneficial interest outstanding) $13.83
======
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, Class B,
and Class C shares.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Statement of Operations (Unaudited)
-----------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2000
-----------------------------------------------------------------------------------------------
<S> <C>
Net investment income:
Income -
Interest $ 4,121,205
Dividends 2,057,427
Foreign taxes withheld (211,340)
-----------
Total investment income $ 5,967,292
-----------
Expenses -
Management fee $ 1,499,088
Trustees' compensation 28,058
Shareholder servicing agent fee 184,575
Distribution and service fee (Class A) 328,087
Distribution and service fee (Class B) 647,050
Distribution and service fee (Class C) 252,053
Administrative fee 20,676
Custodian fee 168,478
Postage 29,765
Printing 23,028
Auditing fees 16,529
Legal fees 1,071
Miscellaneous 133,342
-----------
Total expenses $ 3,331,800
Fees paid indirectly (15,214)
-----------
Net expenses $ 3,316,586
-----------
Net investment income $ 2,650,706
-----------
Realized and unrealized gain (loss) on investments:
Realized gain (identified cost basis) -
Investment transactions $10,726,836
Written option transactions 259,138
Foreign currency transactions 2,396,147
-----------
Net realized gain on investments and foreign currency transactions $13,382,121
-----------
Change in unrealized appreciation (depreciation) -
Investments $ 7,933,847
Written options (42,274)
Translation of assets and liabilities in foreign currencies 971,926
-----------
Net unrealized gain on investments and foreign currency translation $ 8,863,499
-----------
Net realized and unrealized gain on investments and foreign currency $22,245,620
-----------
Increase in net assets from operations $24,896,326
===========
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Statement of Changes in Net Assets
<CAPTION>
------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
(UNAUDITED)
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations -
Net investment income $ 2,650,706 $ 5,260,519
Net realized gain on investments and foreign currency
transactions 13,382,121 30,457,922
Net unrealized gain (loss) on investments and foreign
currency translation 8,863,499 (19,922,300)
------------ ------------
Increase in net assets from operations $ 24,896,326 $ 15,796,141
------------ ------------
Distributions declared to shareholders -
From net investment income (Class A) $ (1,257,367) $ (3,114,718)
From net investment income (Class B) (540,533) (1,553,313)
From net investment income (Class C) (306,954) (558,400)
From net investment income (Class I) (12,779) (34,089)
From net realized gain on investments and foreign
currency transactions (Class A) (13,850,883) (11,788,156)
From net realized gain on investments and foreign
currency transactions (Class B) (9,623,474) (7,739,436)
From net realized gain on investments and foreign
currency transactions (Class C) (3,895,074) (2,444,103)
From net realized gain on investments and foreign
currency transactions (Class I) (113,766) (120,309)
In excess of net investment income (Class A) -- (1,421,757)
In excess of net investment income (Class B) -- (709,031)
In excess of net investment income (Class C) -- (254,890)
In excess of net investment income (Class I) -- (15,560)
------------ ------------
Total distributions declared to shareholders $(29,600,830) $(29,753,762)
------------ ------------
Net increase (decrease) in net assets from Fund share
transactions $ (6,177,190) $ 64,579,969
------------ ------------
Total increase (decrease) in net assets $(10,881,694) $ 50,622,348
Net assets:
At beginning of period 371,580,704 320,958,356
------------ ------------
At end of period (including accumulated undistributed net
investment income and distributions in excess of net
investment income of $1,187,134 and $654,061,
respectively) $360,699,010 $371,580,704
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Financial Highlights
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED -----------------------------------------------------------------
APRIL 30, 2000 1999 1998 1997 1996 1995
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
CLASS A
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of
period $13.98 $14.59 $13.84 $12.73 $11.57 $10.58
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.12 $ 0.25 $ 0.28 $ 0.31 $ 0.34 $ 0.33
Net realized and unrealized
gain on investments and
foreign currency 0.83 0.45 1.57 1.61 1.46 0.79
------ ------ ------ ------ ------ ------
Total from investment
operations $ 0.95 $ 0.70 $ 1.85 $ 1.92 $ 1.80 $ 1.12
------ ------ ------ ------ ------ ------
Less distributions declared to
shareholders -
From net investment income $(0.09) $(0.24) $(0.18) $(0.21) $(0.63) $(0.08)
From net realized gain on
investments and foreign
currency transactions (1.05) (0.96) (0.92) (0.60) (0.01) (0.05)
In excess of net investment
income -- (0.11) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions declared to
shareholders $(1.14) $(1.31) $(1.10) $(0.81) $(0.64) $(0.13)
------ ------ ------ ------ ------ ------
Net asset value - end of period $13.79 $13.98 $14.59 $13.84 $12.73 $11.57
====== ====== ====== ====== ====== ======
Total return(+) 7.01%++ 4.96% 14.29% 15.71% 16.06% 10.63%
Ratios (to average net assets)/
Supplemental data:
Expenses## 1.48%+ 1.48% 1.51% 1.59% 1.63% 1.77%
Net investment income 1.74%+ 1.74% 1.99% 2.35% 2.79% 3.06%
Portfolio turnover 36% 109% 183% 143% 167% 160%
Net assets at end of period
(000 omitted) $185,254 $187,780 $174,576 $152,919 $129,843 $110,294
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from certain expense offset arrangements.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the results would
have been lower.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Financial Highlights - continued
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ------------------------------------------------------------------
APRIL 30, 2000 1999 1998 1997 1996 1995
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
CLASS B
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of
period $13.95 $14.56 $13.82 $12.71 $11.52 $10.54
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.08 $ 0.16 $ 0.19 $ 0.22 $ 0.25 $ 0.25
Net realized and unrealized gain
on investments and foreign
currency 0.83 0.45 1.56 1.62 1.46 0.77
------ ------ ------ ------ ------ ------
Total from investment operations $ 0.91 $ 0.61 $ 1.75 $ 1.84 $ 1.71 $ 1.02
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.06) $(0.18) $(0.09) $(0.13) $(0.47) $(0.03)
From net realized gain on
investments and foreign
currency transactions (1.05) (0.96) (0.92) (0.60) (0.01) (0.01)
In excess of net investment income -- (0.08) -- -- (0.04) --
------ ------ ------ ------ ------ ------
Total distributions declared
to shareholders $(1.11) $(1.22) $(1.01) $(0.73) $(0.52) $(0.04)
------ ------ ------ ------ ------ ------
Net asset value - end of period $13.75 $13.95 $14.56 $13.82 $12.71 $11.52
====== ====== ====== ====== ====== ======
Total return 6.67%++ 4.22% 13.57% 15.00% 15.29% 9.75%
Ratios (to average net assets)/
Supplemental data:
Expenses## 2.12%+ 2.14% 2.16% 2.25% 2.34% 2.49%
Net investment income 1.09%+ 1.13% 1.33% 1.70% 2.07% 2.34%
Portfolio turnover 36% 109% 183% 143% 167% 160%
Net assets at end of period
(000 omitted) $125,458 $130,413 $113,966 $96,931 $71,788 $57,214
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Financial Highlights - continued
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ------------------------------------------------------------------
APRIL 30, 2000 1999 1998 1997 1996 1995
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
CLASS C
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of period $13.94 $14.56 $13.82 $12.72 $11.52 $10.53
------ ------ ------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.08 $ 0.16 $ 0.19 $ 0.23 $ 0.26 $ 0.27
Net realized and unrealized gain on
investments and foreign currency 0.82 0.45 1.56 1.61 1.46 0.76
------ ------ ------ ------ ------ ------
Total from investment operations $ 0.90 $ 0.61 $ 1.75 $ 1.84 $ 1.72 $ 1.03
------ ------ ------ ------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.08) $(0.19) $(0.09) $(0.14) $(0.51) $(0.03)
From net realized gain on
investments and foreign currency
transactions (1.05) (0.96) (0.92) (0.60) (0.01) (0.01)
In excess of net investment income -- (0.08) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions declared to
shareholders $(1.13) $(1.23) $(1.01) $(0.74) $(0.52) $(0.04)
------ ------ ------ ------ ------ ------
Net asset value - end of period $13.71 $13.94 $14.56 $13.82 $12.72 $11.52
====== ====== ====== ====== ====== ======
Total return 6.71%++ 4.23% 13.52% 14.97% 15.41% 9.84%
Ratios (to average net assets)/
Supplemental data:
Expenses## 2.12%+ 2.14% 2.16% 2.24% 2.27% 2.42%
Net investment income 1.09%+ 1.13% 1.33% 1.71% 2.14% 2.41%
Portfolio turnover 36% 109% 183% 143% 167% 160%
Net assets at end of period
(000 omitted) $48,393 $51,800 $30,580 $21,725 $14,248 $10,894
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS -- continued
Financial Highlights - continued
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ------------------------------------
APRIL 30, 2000 1999 1998 1997*
(UNAUDITED)
-----------------------------------------------------------------------------------------------------------------
CLASS I
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of period $14.02 $14.60 $13.86 $12.51
------ ------ ------ ------
Income from investment operations# -
Net investment income $ 0.14 $ 0.29 $ 0.33 $ 0.30
Net realized and unrealized gain on investments and
foreign currency 0.83 0.49 1.56 1.21
------ ------ ------ ------
Total from investment operations $ 0.97 $ 0.78 $ 1.89 $ 1.51
------ ------ ------ ------
Less distributions declared to shareholders -
From net investment income $(0.11) $(0.28) $(0.23) $(0.16)
From net realized gain on investments and foreign
currency transactions (1.05) (0.96) (0.92) --
In excess of net investment income -- (0.12) -- --
------ ------ ------ ------
Total distributions declared to shareholders $(1.16) $(1.36) $(1.15) $(0.16)
------ ------ ------ ------
Net asset value - end of period $13.83 $14.02 $14.60 $13.86
====== ====== ====== ======
Total return 7.24%++ 5.40% 14.78% 12.08%++
Ratios (to average net assets)/Supplemental data:
Expenses## 1.13%+ 1.13% 1.16% 1.24%+
Net investment income 2.09%+ 2.08% 2.33% 2.72%+
Portfolio turnover 36% 109% 183% 143%
Net assets at end of period (000 omitted) $1,595 $1,587 $1,837 $1,848
* For the period from the inception of Class I, January 2, 1997, through October 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset arrangements.
See notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(1) Business and Organization
MFS Global Total Return Fund (the Fund) is a nondiversified series of MFS
Series Trust VI (the Trust). The Trust is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company.
(2) Significant Accounting Policies
General - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. The Fund
can invest in foreign securities. Investments in foreign securities are
vulnerable to the effects of changes in the relative values of the local
currency and the U.S. dollar and to the effects of changes in each country's
legal, political, and economic environment.
Investment Valuations - Debt securities (other than short-term obligations
which mature in 60 days or less), including listed issues, forward contracts,
and swap agreements, 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. Equity securities listed on securities exchanges or reported through
the NASDAQ system are reported at market value using last sale prices.
Unlisted equity securities or listed equity securities for which last sale
prices are not available are reported at market value using last quoted bid
prices. Short-term obligations, which mature in 60 days or less, are valued at
amortized cost, which approximates market value. Non-U.S. dollar denominated
short-term obligations are valued at amortized cost as calculated in the
foreign currency and translated into U.S. dollars at the closing daily
exchange rate. Options, and options on futures contracts listed on commodities
exchanges are reported at market value using closing settlement prices. Over-
the-counter options on securities are valued by brokers. Over-the-counter
currency options are valued through the use of a pricing model which takes
into account foreign currency exchange spot and forward rates, implied
volatility, and short-term repurchase rates. Securities for which there are no
such quotations or valuations are valued in good faith, at fair value, by the
Trustees.
Foreign Currency Translation - Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investments, income, and expenses are converted into U.S.
dollars based upon currency exchange rates prevailing on the respective dates
of such transactions. Gains and losses attributable to foreign currency
exchange rates on sales of securities are recorded for financial statement
purposes as net realized gains and losses on investments. Gains and losses
attributable to foreign exchange rate movements on income and expenses are
recorded for financial statement purposes as foreign currency transaction
gains and losses. That portion of both realized and unrealized gains and
losses on investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed.
Written Options - The Fund may write call or put options in exchange for a
premium. The premium is initially recorded as a liability which is
subsequently adjusted to the current value of the option contract. When a
written option expires, the Fund realizes a gain equal to the amount of the
premium received. When a written call option is exercised or closed, the
premium received is offset against the proceeds to determine the realized gain
or loss. When a written put option is exercised, the premium reduces the cost
basis of the security 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 part of an income producing strategy
reflecting the view of the Fund's management on the direction of interest
rates.
Security Loans - State Street Bank and Trust Company ("State Street") and
Chase Manhattan Bank ("Chase"), as lending agents, may loan the securities of
the Fund to certain qualified institutions (the "Borrowers") approved by the
Fund. The loans are collateralized at all times by cash and/or U.S. Treasury
securities in an amount at least equal to the market value of the securities
loaned. State Street and Chase provide the Fund with indemnification against
Borrower default. The Fund bears the risk of loss with respect to the
investment of cash collateral.
Cash collateral is invested in short-term securities. A portion of the income
generated upon investment of the collateral is remitted to the Borrowers, and
the remainder is allocated between the Fund and the lending agents. On loans
collateralized by U.S. Treasury securities, a fee is received from the
Borrower, and is allocated between the Fund and the lending agents. Income
from securities lending is included in interest income on the Statement of
Operations. The dividend and interest income earned on the securities loaned
is accounted for in the same manner as other dividend and interest income.
At April 30, 2000, there were 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 into 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 may 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. The Fund 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. The forward foreign currency exchange contracts are
adjusted by the daily exchange rate of the underlying currency and any gains
or losses are recorded as unrealized until the contract settlement date. On
contract settlement date, the gains or losses are recorded as realized gains
or losses on foreign currency transactions.
Investment Transactions and Income - Investment transactions are recorded on
the trade date. Interest income is recorded on the accrual basis. All discount
is accreted for financial statement and tax reporting purposes as required by
federal income tax regulations. Dividends received in cash are recorded on the
ex-dividend date. 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.
Some securities may be purchased on a "when-issued" or "forward delivery"
basis, which means that the securities will be delivered to the Fund at a
future date, usually beyond customary settlement time.
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 made directly to the security issuer,
which are generally non-recurring, incurred to protect or enhance the value of
high-yield debt securities, are reported as additions 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 reported as realized losses. Ongoing costs incurred to protect or enhance
an investment, or costs incurred to pursue other claims or legal actions, are
expensed.
Fees Paid Indirectly - The Fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by
the Fund. This amount are shown as a reduction of expenses on the Statement of
Operations.
Tax Matters and Distributions - The Fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is provided.
Distributions to shareholders are recorded on the ex-dividend date. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis and requires that only distributions in excess of tax basis earnings and
profits be reported in the financial statements as distributions from paid-in
capital. Differences in the recognition or classification of income between
the financial statements and tax earnings and profits, which result in
temporary over-distributions for financial statement purposes, are classified
as distributions in excess of net investment income or net realized gains.
Multiple Classes of Shares of Beneficial Interest - The Fund offers multiple
classes of shares, which differ in their respective distribution and service
fees. All shareholders bear the common expenses of the Fund based on daily net
assets of each class, without distinction between share classes. Dividends are
declared separately for each class. Differences in per share dividend rates
are generally due to differences in separate class expenses. Class B shares
will convert to Class A shares approximately eight years after purchase.
(3) Transactions with Affiliates
Investment Adviser - The Fund has an investment advisory agreement with
Massachusetts Financial Services Company (MFS) to provide overall investment
advisory and administrative services, and general office facilities.
The management fee is computed daily and paid monthly at an annual rate of
0.65% of the Fund's average daily net assets and 5.00% of investment income.
The Fund pays no compensation directly to its Trustees who are officers of the
investment adviser, or to officers of the Fund, all of whom receive
remuneration for their services to the Fund from MFS. Certain officers and
Trustees of the Fund are officers or directors of MFS, MFS Fund Distributors,
Inc. (MFD), and MFS Service Center, Inc. (MFSC). The Fund has an unfunded
defined benefit plan for all of its independent Trustees and Mr. Bailey.
Included in Trustees' compensation is a net periodic pension expense of
$12,258 for the six months ended April 30, 2000.
Administrator - The Fund has an administrative services agreement with MFS to
provide the Fund with certain financial, legal, shareholder servicing,
compliance, and other administrative services. As a partial reimbursement for
the cost of providing these services, the Fund incurs an administrative fee at
the following annual percentages of the Fund's average daily net assets:
First $2 billion 0.0175%
Next $2.5 billion 0.0130%
Next $2.5 billion 0.0005%
In excess of $7 billion 0.0000%
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
$17,220 for the six months ended April 30, 2000, as its portion of the sales
charge on sales of Class A shares of the Fund.
The Trustees have adopted a distribution plan for Class A, Class B, and Class C
shares pursuant to Rule 12b-1 of the Investment Company Act of 1940 as follows:
The Fund's distribution plan provides that the Fund will pay MFD up to 0.35%
per annum of its average daily net assets attributable to Class A shares in
order that MFD may pay expenses on behalf of the Fund related to the
distribution and servicing of its shares. These expenses include a service fee
paid to each securities dealer that enters into a sales agreement with MFD of
up to 0.25% per annum of the Fund's average daily net assets attributable to
Class A shares which are attributable to that securities dealer and a
distribution fee to MFD of up to 0.10% per annum of the Fund's average daily
net assets attributable to Class A shares. MFD retains the service fee for
accounts not attributable to a securities dealer, which amounted to $28,054
for the six months ended April 30, 2000. Fees incurred under the distribution
plan during the six months ended April 30, 2000, were 0.35% of average daily
net assets attributable to Class A shares on an annualized basis.
The Fund's distribution plan provides that the Fund will pay MFD a
distribution fee of 0.75% per annum, and a service fee of up to 0.25% per
annum, of the Fund's average daily net assets attributable to Class B and
Class C shares. MFD will pay to securities dealers that enter into a sales
agreement with MFD all or a portion of the service fee attributable to Class B
and Class C shares, and will pay to such securities dealers all of the
distribution fee attributable to Class C shares. The service fee is intended
to be consideration for services rendered by the dealer with respect to Class
B and Class C shares. MFD retains the service fee for accounts not
attributable to a securities dealer, which amounted to $18,713 and $35,724 for
Class B and Class C shares, respectively, for the six months ended April 30,
2000. Fees incurred under the distribution plan during the six months ended
April 30, 2000, were 1.00% of average daily net assets attributable to Class B
and Class C shares, respectively, on an annualized basis.
Certain Class A and Class C shares are subject to a contingent deferred sales
charge in the event of a shareholder redemption within 12 months following
purchase. A contingent deferred sales charge is imposed on shareholder
redemptions of Class B shares in the event of a shareholder redemption within
six years of purchase. MFD receives all contingent deferred sales charges.
Contingent deferred sales charges imposed during the six months ended April
30, 2000, were $17,197, $120,195, and $22,827 for Class A, Class B, and Class
C shares, respectively.
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as a
percentage of the Fund's average daily net assets at an annual rate of 0.10%.
(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 $ 23,610,778 $ 18,094,996
------------ ------------
Investments (non-U.S. government
securities) $102,355,528 $123,381,233
------------ ------------
The cost and unrealized appreciation and depreciation in the value of the
investments owned by the Fund, as computed on a federal income tax basis, are
as follows:
Aggregate cost $313,503,232
------------
Gross unrealized appreciation $ 62,647,111
Gross unrealized depreciation (19,237,536)
------------
Net unrealized appreciation $ 43,409,575
============
(5) Shares of Beneficial Interest
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest. Transactions in
Fund shares were as follows:
<TABLE>
Class A Shares
<CAPTION>
SIX MONTHS ENDED APRIL 30, 2000 YEAR ENDED OCTOBER 31, 1999
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 2,974,137 $ 41,052,374 9,527,402 $ 134,146,764
Shares issued to shareholders in
reinvestment of distributions 1,030,124 13,865,476 1,085,836 15,052,372
Shares reacquired (4,000,562) (55,240,212) (9,149,274) (128,731,794)
---------- ------------ ---------- -------------
Net increase (decrease) 3,699 $ (322,362) 1,463,964 $ 20,467,342
========== ============ ========== =============
Class B Shares
<CAPTION>
SIX MONTHS ENDED APRIL 30, 2000 YEAR ENDED OCTOBER 31, 1999
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
Shares sold 700,006 $ 9,620,614 3,001,659 $ 42,221,918
Shares issued to shareholders in
reinvestment of distributions 623,517 8,386,298 605,278 8,397,365
Shares reacquired (1,545,949) (21,306,772) (2,084,987) (29,223,273)
---------- ------------ ---------- -------------
Net increase (decrease) (222,426) $ (3,299,860) 1,521,950 $ 21,396,010
========== ============ ========== =============
Class C Shares
<CAPTION>
SIX MONTHS ENDED APRIL 30, 2000 YEAR ENDED OCTOBER 31, 1999
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
Shares sold 584,536 $ 8,098,658 2,526,464 $ 35,622,025
Shares issued to shareholders in
reinvestment of distributions 196,080 2,629,428 162,826 2,255,584
Shares reacquired (967,235) (13,308,384) (1,073,242) (14,982,438)
---------- ------------ ---------- -------------
Net increase (decrease) (186,619) $ (2,580,298) 1,616,048 $ 22,895,171
========== ============ ========== =============
Class I Shares
<CAPTION>
SIX MONTHS ENDED APRIL 30, 2000 YEAR ENDED OCTOBER 31, 1999
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
Shares sold 123,112 $ 1,736,487 9,498 $ 132,481
Shares issued to shareholders in
reinvestment of distributions 9,388 126,545 12,261 169,958
Shares reacquired (130,422) (1,837,702) (34,292) (480,993)
---------- ------------ ---------- -------------
Net increase (decrease) 2,078 $ 25,330 (12,533) $ (178,554)
========== ============ ========== =============
</TABLE>
(6) Line of Credit
The Fund and other affiliated funds participate in a $1.1 billion unsecured
line of credit provided by a syndication of banks under a line of credit
agreement. Borrowings may be made to temporarily finance the repurchase of
Fund shares. Interest is charged to each fund, based on its borrowings, at a
rate equal to the bank's base rate. In addition, a commitment fee, based on
the average daily unused portion of the line of credit, is allocated among the
participating funds at the end of each quarter. The commitment fee allocated
to the Fund for the six months ended April 30, 2000, was $1,230. The Fund had
no borrowings during the period.
(7) Financial Instruments
The Fund 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, swap agreements, 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.
Written Option Transactions
NUMBER OF
CONTRACTS PREMIUMS
-------------------------------------------------------------------------------
Outstanding, beginning of period 2 $ 200,516
Options written 1 67,096
Options terminated in closing transactions (2) (200,516)
Options exercised 0 0
Options expired 0 0
-- ---------
Outstanding, end of period 1 $ 67,096
== =========
At April 30, 2000, the Fund had sufficient cash and/or securities at least
equal to the value of the written options.
<TABLE>
Forward Foreign Currency Exchange Contracts
<CAPTION>
CONTRACTS TO IN EXCHANGE CONTRACTS AT NET UNREALIZED
SETTLEMENT DATE DELIVER/RECEIVE FOR VALUE APPRECIATION
---------------------------------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C>
Sales 06/16/00 DKK 46,483,827 $ 6,070,493 $ 5,689,016 $ 381,477
06/16/00 EUR 7,891,349 7,685,385 7,194,202 491,183
06/16/00 JPY 584,544,224 5,567,088 5,455,530 111,558
06/16/00 NZD 1,084,721 535,852 526,151 9,701
06/16/00 SEK 21,472,918 2,470,992 2,403,324 67,668
----------- ----------- ----------
$22,329,810 $21,268,223 $1,061,587
=========== =========== ==========
</TABLE>
At April 30, 2000, forward foreign currency purchases and sales under master
netting agreements excluded above amounted to a net payable of $8,338 with
Deutsche Bank and a net receivable of $103,567 with C.S. First Boston and $819
with Merrill Lynch.
At April 30, 2000, the Fund had sufficient cash and/or securities to cover any
commitments under these contracts.
<PAGE>
<TABLE>
MFS(R) GLOBAL TOTAL RETURN FUND
<S> <C>
TRUSTEES ASSISTANT TREASURERS
Richard B. Bailey+ - Private Investor; Mark E. Bradley*
Former Chairman and Director (until 1991), Ellen Moynihan*
MFS Investment Management(R) James O. Yost*
Marshall N. Cohan+ - Private Investor SECRETARY
Stephen E. Cavan*
Lawrence H. Cohn, M.D.+ - Chief of Cardiac
Surgery, Brigham and Women's Hospital; ASSISTANT SECRETARY
Professor of Surgery, Harvard Medical School James R. Bordewick, Jr.*
The Hon. Sir J. David Gibbons, KBE+ - Chief CUSTODIAN
Executive Officer, Edmund Gibbons Ltd.; State Street Bank and Trust Company
Chairman, Colonial Insurance Company, Ltd.
INVESTOR INFORMATION
Abby M. O'Neill+ - Private Investor For information on MFS mutual funds, call your
investment professional or, for an information
Walter E. Robb, III+ - President and Treasurer, kit, call toll free: 1-800-637-2929 any
Benchmark Advisors, Inc. (corporate financial business day from 9 a.m. to 5 p.m. Eastern time
consultants); President, Benchmark Consulting (or leave a message anytime).
Group, Inc. (office services)
INVESTOR SERVICE
Arnold D. Scott* - Senior Executive MFS Service Center, Inc.
Vice President, Director, and Secretary, P.O. Box 2281
MFS Investment Management Boston, MA 02107-9906
Jeffrey L. Shames* - Chairman and Chief For general information, call toll free:
Executive Officer, MFS Investment Management 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 For service to speech- or hearing-impaired,
specialists) call toll free: 1-800-637-6576 any business day
from 9 a.m. to 5 p.m. Eastern time. (To use
Ward Smith+ - Former Chairman (until 1994), this service, your phone must be equipped with
NACCO Industries (holding company) a Telecommunications Device for the Deaf.)
INVESTMENT ADVISER For share prices, account balances, exchanges,
Massachusetts Financial Services Company or stock and bond outlooks, call toll free:
500 Boylston Street 1-800-MFS-TALK (1-800-637-8255) anytime from a
Boston, MA 02116-3741 touch-tone telephone.
DISTRIBUTOR WORLD WIDE WEB
MFS Fund Distributors, Inc. www.mfs.com
500 Boylston Street
Boston, MA 02116-3741
CHAIRMAN AND PRESIDENT
Jeffrey L. Shames*
PORTFOLIO MANAGER
Frederick J. Simmons*
TREASURER
W. Thomas London*
+ Independent Trustee
* MFS Investment Management
</TABLE>
<PAGE>
MFS(R) GLOBAL TOTAL RETURN FUND ------------
BULK RATE
U.S. POSTAGE
PAID
[Logo] M F S(R) MFS
INVESTMENT MANAGEMENT ------------
We invented the mutual fund(R)
500 Boylston Street
Boston, MA 02116-3741
(c)2000 MFS Investment Management(R).
MFS(R) investment products are offered through MFS Fund Distributors, Inc.,
500 Boylston Street, Boston, MA 02116
MWT-3 06/00 50M 24/224/324/824
