MFS LIMITED MATURITY FUND
SUPPLEMENT TO THE CURRENT PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION
The following information supplements the disclosure found under the sections
"Investment Objectives and Policies - Investment Policies" in the Prospectus:
As one way of managing the Fund's exposure to interest rate
fluctuations, the Adviser will engage in a portfolio management
strategy known as "laddering". Under this strategy, the Fund will
invest 10% of its assets in securities with remaining maturities of
less than 1 year, 10% of its assets in securities with remaining
maturities of 1 to 2 years, 10% of its assets in securities with
remaining maturities of 2 to 3 years, 10% of its assets in securities
with remaining maturities of 3 to 4 years and 10% of its assets in
securities with remaining maturities of 4 to 5 years. Under normal
market conditions, at least 50% of the assets of the Fund will be
devoted to this strategy. The Adviser will actively manage securities
within each rung of the "ladder". "Laddering" does not require that
individual bonds are held to maturity.
The Adviser believes that "laddering" provides additional stability to
the Fund's portfolio by allocating 50% of the Fund's assets across a
range of securities with shorter-term maturities. For example, in
periods of rising interest rates and falling bond prices, the bonds
with one-and two-year remaining maturities generally lose less of their
value than bonds with four- and five-year remaining maturities;
conversely, in periods of falling interest rates and corresponding
rising bond prices, the principal value of the bonds with four- and
five- year remaining maturities generally increase more than the bonds
with one- and two-year remaining maturities. Furthermore, with the
passage of time, individual bonds held in the Fund's portfolio tend to
become less volatile as the time of their remaining maturity decreases.
In addition, bonds with four- and five-year remaining maturities
generally provide higher income than bonds with one- and two-year
remaining maturities.
"Laddering" does not assure profit and does not protect against loss in
a declining market.
The following information supplements the disclosure found under the caption
"Determination of Net Asset Value and Performance" on page 15 of the Statement
of Additional Information:
From time to time, the Fund may discuss or quote its current portfolio
manager as well as other investment personnel, including such person's
views on the economy, securities markets, portfolio securities and
their issuers, investment philosophy and criteria used in the selection
of portfolio holdings, and such portfolio holdings.
THE DATE OF THIS SUPPLEMENT IS JANUARY 30, 1995
