<PAGE>
MFS(R) HIGH INCOME FUND
Supplement dated June 1, 2000 as revised July 21, 2000
to the Current Prospectus
This Supplement describes the fund's class I shares, and it supplements certain
information in the fund's Prospectus dated June 1, 2000. The caption headings
used in this Supplement correspond with the caption headings used in the
Prospectus.
You may purchase class I shares only if you are an eligible institutional
investor, as described under the caption "Description of Share Classes" below.
1. RISK RETURN SUMMARY
Performance Table. The "Performance Table" is intended to indicate some
of the risks of investing in the fund by showing changes in the fund's
performance over time. The table is intended to indicate some of the risks of
investing in the fund by showing changes in the fund's performance over time.
The table is supplemented as follows:
Average Annual Total Returns as of December 31, 1999
1 Year 5 Years 10 Years
------ ------- --------
Class I shares.................................... 7.33% 10.14% 10.58%
Lehman Brothers High Yield Composite Bond Index+*. 2.74% 9.20% 10.68%
Average high current yield bond fund++............ 4.53% 8.84% 10.03%
-----------------------------
+ Source: Standard & Poor's Micropal, Inc.
++ Source: Lipper Inc.
* The Lehman Brothers High Yield Composite Bond Index is a broad based,
unmanaged, marked value-weighted index that tracks the total return
performance of non-investment grade, fixed-rate, publicly placed,
dollar-denominated and non-convertible debt registered with the U.S.
Securities and Exchange Commission (SEC).
The fund commenced investment operations on February 17, 1978 with the offering
of class A shares, and subsequently offered class I shares on January 2, 1997.
Class I share performance includes the performance of the fund's class A shares
for periods prior to the offering of class I shares. This blended class I share
performance has been adjusted to take into account the fact that class I shares
have no initial sales charge (load). This blended performance has not been
adjusted to take into account differences in class specific operating expenses.
Because operating expenses of class I shares are lower than those of class A
shares, this blended class I share performance is lower than the performance of
class I shares would have been had class I shares been offered for the entire
period.
2. EXPENSE SUMMARY
Expense Table. The "Expense Table" describes the fees and expenses that you
may pay when you buy, redeem and hold shares of the fund. The table is
supplemented as follows:
Annual Fund Operating Expenses (expenses that are deducted from fund
assets):
Management Fees..................................... 0.45%
Distribution and Service (12b-1) Fees............... 0.00%
Other Expenses(1)................................... 0.23%
Total Annual Fund Operating Expenses................ 0.68%
--------------------------
(1) The fund has an expense offset arrangement which reduces the fund's
custodian fee based upon the amount of cash maintained by the fund with
its custodian and dividend disbursing agent and may enter into other such
arrangements and directed brokerage arrangements, which would also have
the effect of reducing the fund's expenses. Any such fee reductions are
not reflected in the table. Had these expense reductions been taken into
account, "Net Expenses" would be 0.66%
<PAGE>
Example of Expenses. The "Example of Expenses" table is intended to help you
compare the cost of investing in the fund with the cost of investing in other
mutual funds.
The examples assume that:
o You invest $10,000 in the fund for the time periods indicated and you
redeem your shares at the end of the time periods;
o Your investment has a 5% return each year and dividends and other
distributions are reinvested; and
o The fund's operating expenses remain the same.
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $69 $218 $379 $847
3. DESCRIPTION OF SHARE CLASSES
The "Description of Share Classes" is supplemented as follows:
If you are an eligible institutional investor (as described below), you may
purchase class I shares at net asset value without an initial sales charge or
CDSC upon redemption. Class I shares do not have annual distribution and service
fees, and do not convert to any other class of shares of the fund.
The following eligible institutional investors may purchase class I shares:
o certain retirement plans established for the benefit of employees of
MFS and employees of MFS' affiliates;
o any fund distributed by MFD, if the fund seeks to achieve its
investment objective by investing primarily in shares of the fund and
other MFS funds;
o any retirement plan, endowment or foundation which:
has, at the time of purchase of class I shares, aggregate assets
of at least $100 million,
and invests at least $10 million in class I shares of the fund
either alone or in combination with investments in class I shares
of other MFS Funds (additional investments may be made in any
amount).
MFD may accept purchases from smaller plans, endowments or foundations or
in smaller amounts if it believes, in its sole discretion, that such
entity's aggregate assets will equal or exceed $100 million, or that such
entity will make additional investments which will cause its total
investment to equal or exceed $10 million, within a reasonable period of
time;
o bank trust departments or law firms acting as trustee or manager for
trust accounts which, on behalf of their clients (i) initially invest
at least $100,000 in class I shares of the fund or (ii) have, at the
time of purchase of class I shares, aggregate assets of at least $10
million invested in class I shares of the fund either alone or in
combination with investments in class I shares of other MFS Funds. MFD
may accept purchases that do not meet these dollar qualification
requirements if it believes, in its sole discretion, that these
requirements will be met within a reasonable period of time. Additional
investments may be made in any amount; and
o certain retirement plans offered, administered or sponsored by
insurance companies, provided that these plans and insurance companies
meet certain criteria established by MFD from time to time.
4. HOW TO PURCHASE, EXCHANGE AND REDEEM SHARES
The discussion of "How to Purchase, Exchange and Redeem Shares" is supplemented
as follows:
You may purchase, redeem and exchange class I shares only through your MFD
representative or by contacting MFSC (see the back cover of the Prospectus for
address and phone number). You may exchange your class I shares for class I
shares of another MFS Fund (if you are eligible to purchase them) and for shares
of the MFS Money Market Fund at net asset value.
<PAGE>
5. FINANCIAL HIGHLIGHTS
The "Financial Highlights" table is intended to help you understand the fund's
financial performance. It is supplemented as follows:
Financial Statements - class I shares
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Year Ended Year Ended Year Ended Year Ended
1/31/00 1/31/99 1/31/98 1/31/97*
------- ------- ------- --------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 5.21 $ 5.61 $ 5.35 $ 5.34
------- ------- ------- -------
Income from investment operations# -
Net investment income $ 0.48 $ 0.49 $ 0.49 $ 0.04
Net realized and unrealized gain (loss) on investments
and foreign currency (0.24) (0.40) 0.25 0.01
--------- --------- -------- --------
Total from investment operations $ 0.24 $ 0.09 $ 0.74 $ 0.05
------- ------- ------- -------
Less distributions declared to shareholders -
From net investment income $ (0.48) $ (0.48) $ (0.48) $ (0.04)
In excess of net investment income (0.02) (0.01) -- --
--------- --------- ------- -------
Total distributions declared to shareholders $ (0.50) $ (0.49) $ (0.48) $ (0.04)
-------- -------- -------- --------
Net asset value - end of period $ 4.95 $ 5.21 $ 5.61 $ 5.35
------- ------- ------- -------
Total return 4.68% 1.55% 14.77% 0.91%++
Ratios (to average net assets)/Supplemental data:
Expenses## 0.68% 0.69% 0.71% 0.59%+
Net investment income 9.38% 8.99% 8.86% 8.70%+
Portfolio turnover 91% 135% 137% 87%
Net assets at end of period (000,000 Omitted) $18 $9 $4 $3
</TABLE>
-----------------------------------
* For the period from the inception of class I, January 2, 1997, through
January 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from certain expense offset
arrangement.
The date of this Supplement is June 1, 2000 as revised July 21, 2000.
<PAGE>
MFS(R) HIGH YIELD OPPORTUNITIES FUND
Supplement dated June 1, 2000 as revised July 21, 2000
to the Current Prospectus
This Supplement describes the fund's class I shares, and it supplements certain
information in the fund's Prospectus dated June 1, 2000. The caption headings
used in this Supplement correspond with the caption headings used in the
Prospectus.
You may purchase class I shares only if you are an eligible institutional
investor, as described under the caption "Description of Share Classes" below.
1. RISK RETURN SUMMARY
Performance Table. The "Performance Table" is intended to indicate some of
the risks of investing in the fund by showing changes in the fund's
performance overtime. The table is supplemented as follows:
Average Annual Total Returns as of December 31, 1999:
1 Year Life*
Class I shares 16.44% 2.77%
Lehman Brothers High Yield Bond Index+** 2.74% (0.35)%
Average high current yield fund++ 4.53% (0.52)%
----------------------
+ Source: Standard & Poor's Micropal, Inc.
++ Source: Lipper Inc.
* Life refers to the period from the commencement of the fund's operations on
July 1, 1998 through December 31, 1999.
** Lehman Brothers High Yield Bond Index is a broad-based, unmanaged index of
noninvestment-grade corporate debt.
The fund commenced investment operations on July 1, 1998 with the offering of
class A, class B, class C and class I shares.
2. EXPENSE SUMMARY
Expense Table. The "Expense Table" describes the fees and expenses that you
may pay when you buy, redeem and hold shares of the fund. The table is
supplemented as follows:
Annual Fund Operating Expenses (expenses that are deducted from fund
assets):
Management Fees............................................ 0.65%
Distribution and Service (12b-1) Fees N/A
Other Expenses(1).......................................... 1.00%
Total Annual Fund Operating Expenses....................... 1.65%
Fee Waiver and/or Expense Reimbursement(2)............(0.98)%
Net Expenses.......................................... 0.67%
--------------------------
(1) The fund has an expense offset arrangement which reduces the fund's
custodian fee based upon the amount of cash maintained by the fund with
its custodian and dividend disbursing agent may enter into other such
arrangements and directed brokerage arrangements (which would also have
the effect of reducing the fund's expenses). Any such fee reductions are
not reflected in the table. Had these expense reductions been taken into
account, "Net Expenses" would be 0.65%.
(2) MFS has contractually agreed to bear all of the fund's expenses (after
taking into account the expense offset arrangement described above)
excluding management fees, distribution and service fees, taxes,
extraordinary expenses, brokerage and transaction costs and class
specific expenses. This contractual fee arrangement will remain in effect
until at least June 1, 2001 absent an earlier modification approved by
the board of trustees which oversees the fund.
<PAGE>
Example of Expenses. The "Example of Expenses" table is intended to help
you compare the cost of investing in the fund with the cost of investing in
other mutual funds.
The examples assume that:
o You invest $10,000 in the fund for the time periods indicated and you
redeem your shares at the end of the time periods;
o Your investment has a 5% return each year and dividends and other
distributions are reinvested; and
o The fund's operating expenses remain the same, except that the fund's
total operating expenses are assumed to be the fund's "Net Expenses"
for the first year, and the fund's "Total Annual Fund Operating
Expenses" for subsequent years (see the table above).
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $68 $424 $805 $1,872
3. DESCRIPTION OF SHARE CLASSES
The "Description of Share Classes" is supplemented as follows:
If you are an eligible institutional investor (as described below), you may
purchase class I shares at net asset value without an initial sales charge or
CDSC upon redemption. Class I shares do not have annual distribution and service
fees, and do not convert to any other class of shares of the fund.
The following eligible institutional investors may purchase class I shares:
o certain retirement plans established for the benefit of employees of
MFS and employees of MFS' affiliates;
o any fund distributed by MFD, if the fund seeks to achieve its
investment objective by investing primarily in shares of the fund and
other MFS funds;
o any retirement plan, endowment or foundation which:
has, at the time of purchase of class I shares, aggregate assets
of at least $100 million; and
invests at least $10 million in class I shares of the fund either
alone or in combination with investments in class I shares of
other MFS Funds (additional investments may be made in any
amount).
MFD may accept purchases from smaller plans, endowments or foundations or in
smaller amounts if it believes, in its sole discretion, that such entity's
aggregate assets will equal or exceed $100 million, or that such entity will
make additional investments which will cause its total investment to equal or
exceed $10 million, within a reasonable period of time;
o bank trust departments or law firms acting as trustee or manager for
trust accounts which, on behalf of their clients (i) initially invest
at least $100,000 in class I shares of the fund or (ii) have, at the
time of purchase of class I shares, aggregate assets of at least $10
million invested in class I shares of the fund either alone or in
combination with investments in class I shares of other MFS Funds. MFD
may accept purchases that do not meet these dollar qualification
requirements if it believes, in its sole discretion, that these
requirements will be met within a reasonable period of time. Additional
investments may be made in any amount; and
o certain retirement plans offered, administered or sponsored by
insurance companies, provided that these plans and insurance companies
meet certain criteria established by MFD from time to time.
4. HOW TO PURCHASE, EXCHANGE AND REDEEM SHARES
The discussion of "How to Purchase, Exchange and Redeem Shares" is supplemented
as follows:
You may purchase, redeem and exchange class I shares only through your MFD
representative or by contacting MFSC (see the back cover of the Prospectus for
address and phone number). You may exchange your class I shares for class I
<PAGE>
shares of another MFS Fund (if you are eligible to purchase them) and for shares
of the MFS Money Market Fund at net asset value.
5. FINANCIAL HIGHLIGHTS
The "Financial Highlights" table is intended to help you understand the fund's
financial performance. It is supplemented as follows:
Financial Highlights - Class I shares
<TABLE>
<CAPTION>
<S> <C> <C>
Year Ended Period Ended
January 31, 2000 January 31, 1999*
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 8.56 $ 10.00
------- -------
Income from investment operations# -
Net investment incomess. $ 0.97 $ 0.64
Net realized and unrealized gain (loss) on investments and foreign currency 0.25 (1.55)
-------- ----------
Total from investment operations $ 1.22 $ (0.91)
------- --------
Less distributions declared to shareholders -
From net investment income $ (0.93) $ (0.53)
-------- --------
Total distributions declared to shareholders $ (0.93) $ (0.53)
-------- --------
Net asset value - end of period $ 8.85 $ 8.56
------- -------
Total return 14.87% (8.96)%++
Ratios (to average net assets)/Supplemental datass.
Expenses 0.67% 0.65%+
Net investment income 10.43% 11.10%+
Portfolio turnover 158% 127%
Net assets at end of period (000 omitted) $70 $ --
</TABLE>
ss. MFS has voluntarily agreed under a temporary expense agreement to pay all
of the Fund's operating expenses, exclusive of management and
distribution and service fees. To the extent that actual expenses were
over this limitation, the net investment income per share and the ratios
would have been:
<TABLE>
<CAPTION>
<S> <C> <C>
Net investment income $ 0.78 $ 0.41
Ratios (to average net assets):
Expenses 1.65% 4.55%+
Net investment income 9.45% 7.20%+
</TABLE>
* For the period from the commencement of the Fund's investment operations,
July 1, 1998, through January 31, 1999.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
The date of this Supplement is June 1, 2000 as revised July 21, 2000.
