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MFS STRATEGIC GROWTH FUND
Supplement to the January 1, 1998 Prospectus
The section of the Prospectus entitled "Expense Summary" is hereby revised as
follows to reflect the implementation of the 10 basis point Class A distribution
fee under the Fund's Distribution Plan:
1. EXPENSE SUMMARY
<TABLE>
<S> <C> <C> <C>
Shareholder Transaction Expenses: Class A Class B Class C
Maximum Initial Sales Charge Imposed on Purchases of
Fund Shares (as a percentage of offering price)............................. 5.75% 0.00% 0.00%
Maximum Contingent Deferred Sales Charge (as a
percentage of original purchase price or
redemption proceeds, as applicable)......................................... See Below1 4.00% 1.00%
Annual Operating Expenses of the Fund (as a percentage of average daily net
assets):
Management Fees................................................................ 0.75% 0.75% 0.75%
Rule 12b-1 Fees (after expense limitation)..................................... 0.35%(2) 1.00%(3) 1.00%(3)
Other Expenses (after expense limitation)(4) (5)............................... 0.50% 0.50% 0.50%
Total Operating Expenses (after expense limitation)(6)......................... 1.60% 2.25% 2.25%
</TABLE>
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1. Purchases of $1 million or more and certain purchases by retirement plans
are not subject to an initial sales charge; however, a contingent deferred
sales charge ("CDSC") of 1% will be imposed on such purchases in the event
of certain redemption transactions within 12 months following such
purchases (see "Information Concerning Shares of the Fund Purchases"
below).
2. The Fund has adopted a distribution plan for its shares in accordance with
Rule 12b-1 under the Investment Company Act of 1940, as amended (the "1940
Act") (the "Distribution Plan"), which provides that it will pay
distribution/service fees aggregating up to (but not necessarily all of)
0.35% per annum of the average daily net assets attributable to Class A
shares. Distribution expenses paid under this Plan, together with the
initial sales charge, may cause long-term shareholders to pay more than
the maximum sales charge that would have been permissible if imposed
entirely as an initial sales charge. (See "Information Concerning Shares
of the Fund - Distribution Plan" below).
3. The Fund's Distribution Plan provides that it will pay
distribution/service fees aggregating up to (but not necessarily all of)
1.00% per annum of the average daily net assets attributable to Class B
and Class C shares, respectively. Distribution expenses paid under the
Distribution Plan together with any CDSC payable upon redemption of Class
B and Class C shares, may cause long-term shareholders to pay more than
the maximum sales charge that would have been permissible if imposed
entirely as an initial sales charge (see "Information Concerning Shares of
the Fund Distribution Plan" below).
4. 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 under "Other Expenses."
5. The Adviser has agreed to bear the Fund's expenses, subject to
reimbursement by the Fund, such that "Other Expenses" do not exceed 0.50%
per annum of the Fund's average daily net assets during the current fiscal
year. Otherwise, "Other Expenses" for each of Class A, Class B and Class C
shares would be 0.76% per annum.
6. Absent any fee reductions, "Total Operating Expenses" for Class A, Class B
and Class C shares would be 1.86%, 2.51% and 2.51%, respectively (see
"Information Concerning Shares of the Fund - Expenses" below).
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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):
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<S> <C> <C> <C>
Period Class A Class B Class C
(1) (1)
1 year.................... $ 73 $ 63 $ 23 $ 33 $ 23
3 years................... 105 100 70 70 70
5 years................... 140 140 120 120 120
10 years.................. 237 242(2) 242(2) 258 258
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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: (i) varying sales charges on
shares purchases - "Information Concerning Shares of the Fund -Purchases"; (ii)
varying CDSCs - "Information Concerning Shares of the Fund - Purchases"; (iii)
management fees "Management of the Fund - Investment Adviser"; and (iv) Rule
12b-1 (i.e., distribution plan) fees - "Information Concerning Shares of the
Fund - Distribution Plan."
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 section entitled "Current Level of Distribution and Service Fees" on
page 31 of the Prospectus is revised as follows: The Fund's Class A, Class B and
Class C distribution and service fees for its current fiscal year are 0.35%,
1.00% and 1.00% per annum, respectively.
The date of this Supplement is June 24, 1998.
