<PAGE>
<TABLE>
<CAPTION>
<S> <C>
MFS(R) UNION STANDARD(SM) EQUITY FUND
TRUSTEES SHAREHOLDER SERVICE CENTER
A. Keith Brodkin* MFS Service Center, Inc.
Chairman and President P.O. Box 1400
Boston, MA 02104-9985
Nelson J. Darling, Jr.
Trustee, Eastern Enterprises For general information, call toll free:
1-800-637-8730 any business day from
William R. Gutow 9 a.m. to 5 p.m. Eastern time.
Private Investor;
Senior Vice President, Capitol Entertainment CUSTODIAN
State Street Bank and Trust Company
INVESTMENT ADVISER
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116-3741
PORTFOLIO MANAGER
William S. Harris*
TREASURER
W. Thomas London*
ASSISTANT TREASURERS
Karen C. Jordan*
James O. Yost*
SECRETARY
Stephen E. Cavan*
ASSISTANT SECRETARY
James R. Bordewick, Jr.*
*Affiliated with the Investment Adviser This report is printed on recycled paper.
</TABLE>
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
As we reported to you last fall, it remains our belief that the economy will
slow down as a result of the Federal Reserve Board's aggressively raising
short-term interest rates over the last 14 months. However, we do not anticipate
that the slowing of economic growth will lead to a recession. The Federal
Reserve's stated goal of controlling inflation appears to be working, and
although it may raise interest rates once more, it is our belief that the next
major move for interest rates will be downward. Recently, there have been
increasing signs of economic weakness. Auto sales are slowing and incentives are
increasing; new and existing home sales are declining; retail sales are
sluggish; manufacturing orders have weakened; inventories are rising; and both
consumer comfort and sentiment indices declined in March.
For the first quarter of 1995, the Fund provided a total return of +8.58%
while the ACS Labor Sensitivity Index(SM)(the LSISM), an unmanaged index of
common stocks of companies selected on the basis of labor-sensitive criteria,
gained 8.85%. The comparison for the six-month period covered by this report
(October 1, 1994 through March 31, 1995) was less favorable because the Fund's
performance was penalized for having too great a position in economically
sensitive industries. The Fund's total return for the six months ended March 31,
1995 was +6.07%, while the LSI gained 9.02%.
Our current portfolio strategy is based on the assumptions that economic
growth is slowing but will not lead to a recession, inflation remains under
control and interest rates are at or near their peak. Beginning last September,
we moved aggressively to lessen the portfolio's exposure to cyclical or
economically sensitive industries. We felt that a slowdown in the economy would
most adversely affect the earnings of industries such as basic materials,
industrial goods and services, autos, housing and transportation. We established
or increased positions in industries with more predictable earnings such as
consumer staples, health care, retail, and leisure and in
interest-rate-sensitive industries such as utilities and banks. As a result of
these changes, some of our larger holdings at this time are AT&T, BellSouth,
Philip Morris, Merck, General Electric and Citicorp.
We appreciate your support and welcome any questions or comments you may
have.
Respectfully,
A 1-1/2" x 1-5/8" photo of A 1-1/2" x 1-5/8" photo of
A. Keith Brodkin, Chairman William S. Harris, Portfolio Manager
and President
/s/A. Keith Brodkin /s/William S. Harris
A. Keith Brodkin William S. Harris
Chairman and President Portfolio Manager
April 17, 1995
<PAGE>
PORTFOLIO MANAGER PROFILE
William Harris joined the MFS Research Department in 1967 as an industry
specialist. A graduate of the University of Virginia, he was named Investment
Officer in 1969, Vice President - Investments in 1970, Senior Vice President in
1979 and Executive Vice President in 1982. Mr. Harris is a member of The
Boston Security Analysts Society, Inc.
OBJECTIVE AND POLICIES
The Fund's investment objective is to provide long-term growth of capital that,
net of Fund expenses, exceeds the performance of the ACS Labor Sensitivity
IndexSM (the LSISM). Dividend and interest income from portfolio securities, if
any, is incidental to long-term growth of capital.
The Fund invests primarily in equity securities of companies possessing
opportunities for long-term capital growth which are contained in the LSI. The
Fund may also invest in securities convertible into common or preferred stock.
PORTFOLIO CONCENTRATION AS OF MARCH 31, 1995
<TABLE>
<CAPTION>
Percent of Percent of
Five Largest Industries Net Assets Ten Largest Holdings Net Assets
- ----------------------------------------------------- -----------------------------------------------------
<S> <C> <S> <C>
Utilities 19.6 American Telephone & Telegraph Co. 2.4
- ------------------------------------------------------ -----------------------------------------------------
Consumer Goods and Services 9.6 BellSouth Corp. 2.2
- ------------------------------------------------------ -----------------------------------------------------
Oils 8.6 Exxon Corp. 2.0
- ------------------------------------------------------ -----------------------------------------------------
Food and Beverage Products 7.2 Mobil Corp. 2.0
- ------------------------------------------------------ -----------------------------------------------------
Entertainment 5.3 Philip Morris Cos., Inc. 2.0
- ------------------------------------------------------ -----------------------------------------------------
Merck & Co., Inc. 1.9
-----------------------------------------------------
Amoco Corp. 1.9
-----------------------------------------------------
Scott Paper Co. 1.9
-----------------------------------------------------
Ameritech Corp. 1.9
-----------------------------------------------------
General Electric Co. 1.9
-----------------------------------------------------
</TABLE>
<PAGE>
PERFORMANCE SUMMARY
Because mutual funds like MFS Union Standard Equity Fund are designed for
investors with long-term goals, we have provided cumulative results as well as
the average annual total returns for the past 6-month and 1-year periods ended
March 31, 1995, and for the period from January 14, 1994+ to March 31, 1995.
AVERAGE ANNUAL AND CUMULATIVE TOTAL RATES OF RETURN
Investment Results
(net asset value change including reinvested distributions)
1/14/94+ -
6 Months 1 Year 3/31/95
- ------------------------------------------------------------------------------
Cumulative Total Return +6.07% +8.21% +2.25%
- ------------------------------------------------------------------------------
Average Annual Total Return -- +8.21% +1.86%
- ------------------------------------------------------------------------------
All Fund results represent past performance and are not necessarily an
indication of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost. All Fund results reflect the applicable expense subsidy which is
explained in the Notes to Financial Statements. Had the subsidy not been in
effect, the results would have been less favorable. The subsidy may be rescinded
by MFS at any time.
+Commencement of investment operations.
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)- March 31, 1995
Common Stocks - 95.2%
- ---------------------------------------------------------------------------
Issuer Shares Value
- ---------------------------------------------------------------------------
Aerospace - 2.9%
Allied Signal, Inc. 9,000 $ 353,250
McDonnell Douglas Corp. 10,800 602,100
-----------
$ 955,350
- ---------------------------------------------------------------------------
Airlines - 1.6%
Northwest Airlines Co.* 20,000 $ 542,500
- ---------------------------------------------------------------------------
Automotive - 0.6%
Goodyear Tire & Rubber Co. 6,000 $ 220,500
- ---------------------------------------------------------------------------
Banks and Credit Companies - 4.4%
BankAmerica Corp. 10,000 $ 482,500
Citicorp 14,400 612,000
Firstar Corp. 12,000 354,000
-----------
$ 1,448,500
- ---------------------------------------------------------------------------
Business Machines - 0.9%
Xerox Corp. 2,500 $ 293,438
- ---------------------------------------------------------------------------
Chemicals - 0.4%
du Pont (E.I.) de Nemours & Co. 2,400 $ 145,200
- ---------------------------------------------------------------------------
Consumer Goods and Services - 9.6%
American Brands, Inc. 10,000 $ 392,500
American Greetings Corp. 18,000 537,750
Colgate-Palmolive Co. 8,000 528,000
Philip Morris Cos., Inc. 10,200 665,550
Revco DS, Inc.* 24,000 552,000
Tyco International Ltd. 9,000 475,875
-----------
$ 3,151,675
- ---------------------------------------------------------------------------
Containers - 1.3%
Corning, Inc. 12,000 $ 432,000
- ---------------------------------------------------------------------------
Defense Electronics - 0.9%
Loral Corp. 7,200 $ 306,000
- ---------------------------------------------------------------------------
Electrical Equipment - 4.8%
Emerson Electric Co. 7,500 $ 498,750
General Electric Co. 11,400 617,025
Honeywell, Inc. 12,000 448,500
-----------
$ 1,564,275
- ---------------------------------------------------------------------------
Entertainment - 5.3%
Circus Circus Enterprises, Inc.* 15,000 $ 483,750
Disney (Walt) Co. 7,500 400,312
Mirage Resorts, Inc.* 15,000 420,000
Promus Cos., Inc.* 12,000 450,000
-----------
$ 1,754,062
- ---------------------------------------------------------------------------
Food and Beverage Products - 7.2%
Anheuser-Busch Cos. 6,000 $ 351,750
General Mills, Inc. 5,000 298,125
Hershey Foods Corp. 7,200 368,100
Kellogg Co. 5,000 291,875
PepsiCo, Inc. 12,000 468,000
Ralston-Ralston Purina 12,000 573,000
-----------
$ 2,350,850
- ---------------------------------------------------------------------------
Forest and Paper Products - 4.9%
Georgia-Pacific Corp. 4,000 $ 319,000
Kimberly Clark Corp. 6,000 312,000
Mead Corp. 6,500 348,562
Scott Paper Co. 7,000 625,625
-----------
$ 1,605,187
- ---------------------------------------------------------------------------
Machinery - 1.8%
Deere & Co., Inc. 7,200 $ 585,000
- ---------------------------------------------------------------------------
Medical and Health Products - 5.2%
American Home Products Corp. 4,000 $ 285,000
Bristol-Myers Squibb Co. 4,800 302,400
Johnson & Johnson 8,000 476,000
Merck & Co., Inc. 15,000 639,375
-----------
$ 1,702,775
- ---------------------------------------------------------------------------
Metals and Minerals - 1.2%
Alumax, Inc.* 5,000 $ 134,375
Inland Steel Industries, Inc. 5,000 137,500
Phelps Dodge Corp. 2,000 113,750
-----------
$ 385,625
- ---------------------------------------------------------------------------
Oils - 8.6%
Amoco Corp. 10,000 $ 636,250
Chevron Corp. 6,000 288,000
Exxon Corp. 10,000 667,500
Mobil Corp. 7,200 666,900
Occidental Petroleum Corp. 25,000 546,875
-----------
$ 2,805,525
- ---------------------------------------------------------------------------
Pollution Control - 3.0%
Browning-Ferris Industries 18,000 $ 612,000
USA Waste Services, Inc.* 30,000 356,250
-----------
$ 968,250
- ---------------------------------------------------------------------------
Printing and Publishing - 1.3%
Pulitzer Publishing Co. 11,375 $ 437,938
- ---------------------------------------------------------------------------
Railroads - 2.8%
CSX Corp. 4,800 $ 378,000
Southern Pacific Rail Corp.* 30,000 525,000
-----------
$ 903,000
- ---------------------------------------------------------------------------
Special Products and Services - 1.1%
Minnesota Mining & Manufacturing Co. 6,000 $ 348,750
- ---------------------------------------------------------------------------
Stores - 2.2%
Amern Stores Co. 12,000 $ 307,500
Federated Department Stores, Inc.* 18,000 398,250
-----------
$ 705,750
- ---------------------------------------------------------------------------
Supermarkets - 2.7%
Kroger Co.* 18,000 $ 474,750
Safeway, Inc.* 12,000 417,000
-----------
$ 891,750
- ---------------------------------------------------------------------------
Trucking - 0.9%
MTL, Inc.* 20,000 $ 285,000
- ---------------------------------------------------------------------------
Utilities - Electric - 10.4%
Cinergy Corp. 20,000 $ 497,500
DPL, Inc. 20,000 417,500
FPL Group, Inc. 12,000 436,500
General Public Utilities Co. 15,000 436,875
Illinova Corp. 20,000 455,000
Nipsco Industries, Inc. 16,000 498,000
Pacific Gas & Electric Co. 12,000 298,500
Pinnacle West Capital Corp. 18,000 375,750
-----------
$ 3,415,625
- ---------------------------------------------------------------------------
Utilities - Gas - 2.8%
Pacific Enterprises 18,000 $ 445,500
Tenneco, Inc. 10,000 471,250
-----------
$ 916,750
- ---------------------------------------------------------------------------
Utilities - Telephone - 6.4%
American Telephone & Telegraph Co. 15,000 $ 776,250
Ameritech Corp. 15,000 618,750
BellSouth Corp. 12,000 714,000
-----------
$ 2,109,000
- ---------------------------------------------------------------------------
Total Common Stocks (Identified Cost, $29,059,891) $31,230,275
- ---------------------------------------------------------------------------
Short-Term Obligations - 9.8%
- ---------------------------------------------------------------------------
Principal Amount
(000 Omitted)
- ---------------------------------------------------------------------------
Federal Home Loan Bank, due 4/03/95 - 4/14/95 $2,800 $ 2,798,337
Tennessee Valley Authority, due 4/24/95 400 398,485
- ---------------------------------------------------------------------------
Total Short-Term Obligations, at Amortized Cost $ 3,196,822
-------------------------------------------------------------------------
Total Investments (Identified Cost, $32,256,713) $34,427,097
Other Assets, Less Liabilities - (5.0)% (1,632,923)
- ---------------------------------------------------------------------------
Net Assets - 100.0% $32,794,174
- ---------------------------------------------------------------------------
*Non-income producing security.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (Unaudited)
- ------------------------------------------------------------------------------
March 31, 1995
- ------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost, $32,256,713) $34,427,097
Cash 92,422
Receivable for investments sold 1,903,253
Dividends receivable 52,101
Receivable from investment adviser 6,483
Deferred organization expenses 19,101
-----------
Total assets $36,500,457
-----------
Liabilities:
Payable for investments purchased $ 3,685,823
Payable to affiliates -
Management fee 902
Shareholder servicing agent fee 1,000
Accrued expenses and other liabilities 18,558
-----------
Total liabilities $ 3,706,283
-----------
Net assets $32,794,174
===========
Net assets consist of:
Paid-in capital $31,349,424
Unrealized appreciation on investments 2,170,384
Accumulated net realized loss on investments (837,086)
Accumulated undistributed net investment income 111,452
-----------
Total $32,794,174
===========
Shares of beneficial interest outstanding 3,240,424
=========
Net asset value, offering price, and redemption price per share (net assets of
$32,794,174 / 3,240,424 shares of beneficial
interest outstanding) $10.12
======
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS - continued
Statement of Operations (Unaudited)
- ------------------------------------------------------------------------------
Six Months Ended March 31, 1995
- ------------------------------------------------------------------------------
Net investment income:
Income -
Dividends $ 274,582
Interest 30,198
----------
Total investment income $ 304,780
----------
Expenses --
Management fee $ 79,532
Trustees' compensation 1,900
Shareholder servicing agent fee 500
Distribution and service fee 18,145
Printing 10,105
Auditing fees 5,200
Amortization of organization expenses 2,468
Custodian fee 2,463
Legal fees 544
Postage 200
Miscellaneous 8,626
---------
Total expenses $ 129,683
Preliminary reduction of expenses by investment adviser (7,474)
---------
Net expenses $ 122,209
---------
Net investment income $ 182,571
---------
Realized and unrealized gain (loss) on investments:
Realized loss (identified cost basis) on
investment transactions $(666,343)
Change in unrealized appreciation on investments 2,183,350
---------
Net realized and unrealized gain on investments $1,517,007
---------
Increase in net assets from operations $1,699,578
==========
See notes to financial statements
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended
March 31, 1995 Period Ended
(Unaudited) September 30, 1994*
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations --
Net investment income $ 182,571 $ 153,346
Net realized loss on investments (666,343) (170,743)
Net realized gain (loss) on investments 2,183,350 (12,966)
--------- ---------
Increase (decrease) in net assets from operations 1,699,578 (30,363)
--------- ---------
Distributions declared to shareholders from
net investment income (224,465) --
-------- ---------
Fund share (principal) transactions --
Net proceeds from sale of shares $ 9,572,700 $22,212,350
Net asset value of shares issued to shareholders
in reinvestmen of distributions 224,464 --
Cost of shares reacquired (662,551) (47,539)
-------- -----------
Increase in net assets from Fund share transactions $ 9,134,613 $22,164,811
--------- -----------
Total increase in net assets $10,609,726 $22,134,448
Net assets:
At beginning of period 22,184,448 50,000
---------- -----------
At end of period (including accumulated undistributed
net investment income of $111,452 and $153,346,
respectively) $32,794,174 $22,184,448
=========== ===========
*For the period from the commencement of investment operations, January 14, 1994
to September 30, 1994.
See notes to financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS - continued
Financial Highlights
- ------------------------------------------------------------------------------
Six Months Ended
March 31, 1995 Period Ended
(Unaudited) September 30, 1994*
- ------------------------------------------------------------------------------
Per share data (for a share outstanding
throughout each period):
Net asset value - beginning of period $ 9.64 $10.00
------ ------
Income from investment operations++ -
Net investment income(S) $ 0.07 $ 0.12
Net realized and unrealized gain
(loss) on investment transactions 0.51 (0.48)#
---- -----
Total from investment operations $ 0.58 (0.36)
------ -----
Less distributions declared to
shareholders from net investment
income $(0.10) $ --
------ -----
Net asset value - end of period $10.12 $ 9.64
====== ======
Total return 6.07% (3.60)%
Ratios (to average net assets)/
Supplemental data(S):
Expenses 1.00%+ 1.00%+
Net investment income 1.50%+ 1.55%+
Portfolio turnover 79% 48%
Net assets at end of period
(000 omitted) $32,794 $22,184
*For the period from the commencement of investment operations, January 14,
1994 to September 30, 1994.
+Annualized.
++Per share data are based on average shares outstanding.
#The per share amount is not in accord with the net realized and unrealized
gain for the period because of the timing of sales of Fund shares and the
amount of per share realized and unrealized gains and losses at such time.
(S)The investment advisor has agreed to maintain the expenses of the Fund at not
more than 1% of average daily net assets. To the extent actual expenses were
over this limitation, the net investment income per share and the ratios
would have been:
Net investment income $0.07 $0.07
Ratios (to average net assets):
Expenses 1.06%+ 1.64%+
Net investment income 1.44%+ 0.91%+
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Business and Organization
MFS Union Standard Equity Fund (the Fund) is a diversified series of MFS Union
Standard Trust (the Trust). The Trust is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company.
(2) Significant Accounting Policies
Investment Valuations - Equity securities listed on securities exchanges or
reported through the NASDAQ system are valued at last sale prices. Unlisted
equity securities or listed equity securities for which last sale prices are not
available are valued at last quoted bid prices. Short-term obligations, which
mature in 60 days or less, are valued at amortized cost, which approximates
value. Securities for which there are no such quotations or valuations are
valued at fair value as determined in good faith by or at the direction of the
Trustees.
Deferred Organization Expenses - Costs incurred by the Fund in connection with
its organization have been deferred and are being amortized on a straight-line
basis over a five-year period beginning on the date of commencement of
operations of the Fund.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All premium and
original issue discount are amortized or accreted for both financial statement
and tax reporting purposes as required by federal income tax regulations.
Dividend income is recorded on the ex-dividend date for dividends received in
cash. Dividend payments received in additional securities are recorded on the
ex-dividend date in an amount equal to the value of the security on such date.
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 income,
including any net realized gain on investments. Accordingly, no provision for
federal income or excise tax is provided. The Fund files a tax return annually
using tax accounting methods required under provisions of the Code which may
differ from generally accepted accounting principles, the basis on which these
financial statements are prepared. Accordingly, the amount of net investment
income and net realized gain reported on these financial statements may differ
from that reported on the Fund's tax return and, consequently, the character of
distributions to shareholders reported in the financial highlights may differ
from that reported to shareholders on Form 1099-DIV. Distributions to
shareholders are recorded on the ex-dividend date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis and requires that only distributions in excess of tax basis
earnings and profits are reported in the financial statements as a return of
capital. Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
(3) Transactions with Affiliates
Investment Adviser - The Fund has an investment advisory agreement with
Massachusetts Financial Services Company (MFS) to provide overall investment
advisory and administrative services, and general office facilities. The
management fee, computed daily and paid monthly at an effective annual rate of
0.65% of average daily net assets, amounted to $79,532.
MFS has agreed to pay until December 31, 1998, expenses of the Fund such that
the Fund's aggregate operating expenses shall not exceed, on an annualized
basis, 1.00% of the average daily net assets of the Fund. Such payments by MFS
are subject to reimbursement by the Fund, which will be accomplished by the
payment by the Fund of an expense reimbursement fee to MFS computed and paid
monthly at a percentage of its average daily net assets for its then current
fiscal year, with a limitation that immediately after such payment, the
aggregate operating expenses of the Fund will not exceed, on an annualized
basis, 1.00% of its average daily net assets. This expense reimbursement
agreement terminates on the earlier of the date on which payments made
thereunder by the Fund equal the prior payments of such reimbursable expenses by
MFS or December 31, 1998. At March 31, 1995, the amount subject to reimbursement
by the Fund to MFS was $70,146.
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).
Distributor - MFD, a wholly owned subsidiary of MFS, is distributor for the
Fund. The Trustees have adopted a distribution plan pursuant to Rule 12b-1 of
the Investment Company Act of 1940. The distribution plan provides that the Fund
will pay MFD up to 0.25% per annum of the Fund's average daily net assets in
order that MFD may pay expenses on behalf of the Fund related to the
distribution and servicing of its shares. Payments under the distribution plan
have been set at 0.15% of average daily net assets for an indefinite period of
time. Fees incurred under the distribution plan during the period ended March
31, 1995 amounted to $18,145.
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earned
$500 for the period ended March 31, 1995 for its services as shareholder
servicing agent. The fee is calculated based on the number of shareholder
accounts which the Fund has maintained for the period.
(4) Portfolio Securities
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions and short-term obligations, aggregated $26,662,602
and $19,067,736, respectively.
The cost and unrealized appreciation or depreciation in value of the investments
owned by the Fund, as computed on a federal income tax basis, are as follows:
Aggregate cost $32,256,713
===========
Gross unrealized appreciation $ 2,530,410
Gross unrealized depreciation (360,026)
-----------
Net unrealized appreciation $ 2,170,384
===========
At September 30, 1994, the Fund, for federal income tax purposes, had a capital
loss carryforward of $164,762, which may be applied against any net taxable
realized gains of each succeeding year until the earlier of its utilization or
expiration on September 30, 2002.
(5) Shares of Beneficial Interest
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
Six Months Ended Period Ended
March 31, 1995 September 30, 1994*
- ------------------------------------------------------------------------------
Shares sold 983,045 2,301,136
Shares issued to shareholders in --
reinvestment of distributions 24,032
Shares reacquired (67,824) (4,965)
------- ---------
Net increase 939,253 2,296,171
======= =========
*For the period from the commencement of investment operations, January 14, 1994
to September 30, 1994.
(6) Line of Credit
The Fund entered into an agreement which enables it to participate with other
funds managed by MFS, or an affiliate of MFS, in an unsecured line of credit
with a bank which permits borrowings up to $350 million, collectively.
Borrowings may be made to temporarily finance the repurchase of Fund shares.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the bank's base rate. In addition, a commitment fee, based on the average daily
unused portion of the line of credit, is allocated among the participating funds
at the end of each quarter. The commitment fee allocated to the Fund for the
period ended March 31, 1995 was $196.
---------------------------------------------
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.
MFS UNION STANDARD
EQUITY FUND
500 Boylston Street
Boston, MA 02116
