MFS MUNICIPAL INCOME FUND
Supplement to the Current Prospectus and Statement of Additional Information
The following information replaces in its entirety the "Expense Summary" section
on page 2 of the Prospectus.
1. EXPENSE SUMMARY
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Shareholder Transaction Expenses: Class A Class B Class C
Maximum Initial Sales Charge Imposed on
Purchase of Fund Shares (as a percentage
of offering price) ..................................... 4.75% 0.00% 0.00%
Maximum Contingent Deferred Sales Charge
(as a percentage of original purchase price
or redemption proceeds, as applicable)....................... See Below(1) 4.00% 0.00%
Annual Operating Expenses of the Fund (as a percentage of average net assets):
Management Fees................................................. 0.77% 0.77% 0.77%
Rule 12b-1 Fees (after fee waiver).............................. 0.25%(2) 1.00%(3) 1.00%(3)
Other Expenses.................................................. 0.31% 0.38% 0.31%
----- ----- -----
Total Operating Expenses (after fee waiver)..................... 1.33%(4) 2.15% 2.08%
</TABLE>
(1) Purchases of $1 million or more are not subject to an initial sales
charge; however, a contingent deferred sales charge (a "CDSC") of 1% will
be imposed on such purchases in the event of certain redemption
transactions within 12 months following such purchases (see "Purchases"
below).
(2) The Fund has adopted a Distribution Plan for its Class A shares in
accordance with Rule 12b-1 under the Investment Company Act of 1940, as
amended (the "1940 Act"), which provides that it will pay
distribution/service fees aggregating up to (but not necessarily all of)
0.35% per annum of the net assets of the Fund attributable to Class A
shares (see "Distribution Plans" below). MFD is currently waiving receipt
of 0.10% of the distribution/service fee, but may terminate this waiver
and commence receiving this fee at any time in its discretion without
notice to shareholders. After a substantial period of time, distribution
expenses paid under this Plan, together with the initial sales charge,
may total more than the maximum sales charge that would have been
permissible if imposed entirely as an initial sales charge.
(3) The Fund has adopted a separate Distribution Plan for its Class B and its
Class C shares in accordance with Rule 12b-1 under the 1940 Act, which
provides that it will pay distribution/service fees aggregating up to
(but not necessarily all of) 1.00% per annum of the average net daily
assets attributable to its Class B shares under the Class B Distribution
Plan and the Class C shares under the Class C Distribution Plan (see
"Distribution Plans" below). After a substantial period of time,
distribution expenses paid under these Plans, together with any CDSC
payable upon redemption of Class B shares, may total more than the
maximum sales charge that would have been permissible if imposed entirely
as an initial sales charge.
(4) Absent any fee waiver, "Total Operating Expenses" for Class A shares
would be 1.43%.
<PAGE>
Example of Expenses
An investor would pay the following dollar amounts of expenses on a $1,000
investment in the Fund, assuming (a) a 5% annual return and (b) redemption at
the end of each of the time periods indicated (unless otherwise noted):
<TABLE>
<CAPTION>
Period Class A Class B Class C
<S> <C> <C> <C> <C>
(1)
1 year........................ $ 60 $ 62 $ 22 $ 21
3 years....................... 88 97 67 65
5 years....................... 117 135 115 112
10 years...................... 200 227(2) 227(2) 241
</TABLE>
(1) Assumes no redemption.
(2) Class B shares convert to Class A shares approximately eight years after
purchase; therefore, years nine and ten reflect Class A expenses.
The purpose of the expense table above is to assist investors in understanding
the various costs and expenses that a shareholder of the Fund will bear directly
or indirectly. More complete descriptions of the following Fund expenses are set
forth in the following sections of the Prospectus: (i) varying sales charges on
share purchases - "Purchases"; (ii) varying CDSCs - "Purchases"; (iii)
management fees - "Management of the Fund - Investment Adviser"; and (iv) Rule
12b-1 (i.e., distribution plan) fees - "Distribution Plans."
The "Example" set forth above should not be considered a representation of past
or future expenses of the Fund; actual expenses may be greater or less than
those shown.
-----------------------------
The disclosure under the caption "Distribution Plans" of the Prospectus and
Statement of Additional Information relating to the Class A Distribution Plan is
hereby revised to delete the following two sentences and to replace it with the
latter sentence:
Deleted Sentences:
"Payments will commence under the Class A Distribution Plan on
the date on which the value of the net assets of the Fund
attributable to Class A shares first equals or exceeds $40
million. Thereafter, 0.10% of the distribution/service fee
will be waived."
Replacement Sentence:
"MFD is currently waiving receipt of 0.10% of the
distribution/service fee, but may terminate this waiver and
commence receiving this fee at any time in its discretion
without notice to shareholders."
The date of this Supplement is June 14, 1995
