<PAGE>
MFS(R) NEW DISCOVERY FUND
Supplement dated January 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 January 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 supplemented as follows:
Average Annual Total Returns as of December 31, 1998
1 Year Life*
Class I shares 20.18% 29.63%
Russell 2000 Total Return Index#+ (2.55)% 9.20%
Standard & Poor's 500 Composite Index##+ 28.58% 30.95%
Average small cap fund++ (0.23)% 9.81%
---------------------------------
* Fund performance figures are for the period from the commencement of the
Fund's investment operations on January 2, 1997, through December 31,
1998. Index and Lipper average returns are from January 1, 1997.
# The Russell 2000 Total Return Index is a broad based unmanaged index
comprised of 2,000 of the smallest U.S.-domiciled company common stocks
(on the basis of capitalization) that are traded in the United States on
the New York Stock Exchange, American Stock Exchange and National
Association of Securities Dealers Automated Quotation System.
## The Standard & Poor's 500 Composite Index is a broad based unmanaged but
commonly used measure of common stock total return performance. It is
composed of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and over-the-counter market.
+ Source: Standard & Poor's Micropal.
++ Source: Lipper Analytical Services, Inc.
The fund commenced investment operations on January 2, 1997, with the offering
of class A shares 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.................................................. 0.90%
Distribution and Service (12b-1) Fees............................ 0.00%
Other Expenses(1)................................................ 0.32%
-----
Total Annual Fund Operating Expenses............................. 1.22%
Expense Reimbursement(1).................................... (0.01)%
-------
Net Expenses(2)............................................. 1.21%
-----------------------
(1) MFS has contractually agreed to bear the fund's expenses subject to
reimbursement, such that "Other Expenses", after taking into account the
expense offset arrangement described below, do not exceed 0.25%. These
contractual fee arrangements will continue until at least January 1,
2001, absent an earlier modification approved by the board of trustees
which oversees the fund.
<PAGE>
(2) 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. The fund may enter into
other similar arrangements and directed brokerage arrangements, which
would also have the effect of reducing the fund's expenses. "Other
Expenses" do not take into account these expense reductions, and are
therefore higher than the actual expenses of the fund. Had these fee
reductions been taken into account, "Net Expenses" would be lower, and
would equal 1.20% for class I.
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 timer 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 Operating Expenses"
for subsequent years (see Expense Table).
The table is supplemented as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $123 $386 $669 $1,476
3. DESCRIPTIONS 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 MFS, 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:
<PAGE>
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.
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>
Year Ended August 31, Period Ended
1999 1998 August 31, 1997*
---- ---- ----------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 10.70 $ 13.08 $ 10.00
------- ------- -------
Income from investment operations# -
Net investment income (loss)ss. $ (0.11) $ (0.03) $ 1.01
Net realized and unrealized gain (loss) on investments
and foreign currency 4.27 (0.40) 2.07
------- -------- -------
Total from investment operations $ 4.16 $ (0.43) $ 3.08
------- -------- -------
Less distributions declared to shareholders -
From net investment income $ -- $ (0.72) $ --
From net realized gain on investments and foreign
currency transactions (0.15) (1.23) --
-------- -------- -----
Total distributions declared to shareholders $ (0.15) $ (1.95) $ --
-------- -------- ------
Net asset value - end of period $ 14.71 $ 10.70 $ 13.08
------- ------- -------
Total return 39.06% (4.50)% 30.80%++
Ratios (to average net assets)/Supplemental datass.:
Expenses## 1.16% 1.18% 1.54%+
Net investment income (loss) (0.77)% (0.21)% 12.65%+
Portfolio turnover 104% 196% 887%
Net assets at end of period (000 omitted) $9,973 $3,321 $1,494
</TABLE>
ss. Subject to reimbursement by the fund, the investment adviser voluntarily
agreed to maintain the expenses of the fund, exclusive of management fees,
at not more than 0.25% of average daily net assets, effective November 1,
1997. Prior to November 1, 1997, subject to reimbursement by the fund, the
investment adviser agreed to maintain the expenses of the fund at not more
than 1.50% of the fund's average daily net assets, and the investment
adviser and shareholder servicing agent did not impose any of their fees.
In addition, to the extent actual expenses were over this limitation and
the waivers had not been in place for the periods indicated, the net
investment income (loss) per share and the ratios would have been:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net investment income $ (0.12) $ (0.03) $ 0.92
Ratios (to average net assets):
Expenses## 1.22% 1.28% 2.52%+
Net investment income (loss) (0.83)% (0.31)% 11.63%+
</TABLE>
* For the period from the commencement of the fund's investment operations,
January 2, 1997, through August 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The fund has an expense offset arrangement which reduces the fund's
custodian fees based upon the amount of cash maintained by the fund with
its custodian and dividend disbursing agent. The fund's expenses are
calculated without reduction for this expense offset arrangement.
The date of this Supplement is January 1, 2000 as revised July 21, 2000.
<PAGE>
MFS(R) RESEARCH GROWTH AND INCOME FUND
Supplement dated January 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 January 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 supplemented as follows:
Average Annual Total Returns as of December 31, 1998
1 Year Life*
Class I shares 22.34% 26.18%
Standard & Poor's 500 Composite Index#+ 28.58% 28.23%
Average growth and income fund++ 15.80% 21.37%
-------------------------------
* Fund performance figures are for the period from the commencement of the
fund's investment operations on January 2, 1996, through December 31,
1998. Index and Lipper average returns are from January 1, 1996.
# The Standard & Poor's 500 Composite Index is a broad based unmanaged but
commonly used measure of common stock total return performance. It is
composed of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and over-the-counter market.
+ Source: Standard & Poor's Micropal.
++ Source: Lipper Analytical Services, Inc.
The fund commenced investment operations on January 2, 1996, 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, the 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................................................... 0.65%
Distribution and Service (12b-1) Fees............................. 0.00%
Other Expenses(1)................................................. 0.33%
-----
Total Annual Fund Operating Expenses.............................. 0.98%
-----------------------
(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. The fund may enter into
other similar arrangements and directed brokerage arrangements, which
would also have the effect of reducing the fund's expenses. "Other
Expenses" do not take into
<PAGE>
account these expense reductions, and are therefore higher than the
actual expenses of the fund. Had these fee reductions been taken into
account, "Total Annual Fund Operating Expenses" would be lower, and
would equal 0.97% for class I.
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.
The table is supplemented as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $100 $312 $542 $1,201
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 MFS, 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>
Year Ended August 31, Period Ended
1999 1998 August 31, 1997*
---- ---- ----------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 14.47 $ 14.16 $ 12.01
------- ------- -------
Income from investment operations# -
Net investment incomess. $ 0.09 $ 0.13 $ 0.08
Net realized and unrealized gain on investments and
foreign currency 4.05 0.78 2.11
--------- -------- --------
Total from investment operations $ 4.14 $ 0.91 $ 2.19
-------- --------- ---------
Less distributions declared to shareholders -
From net investment income $ (0.06) $ (0.03) $ (0.02)
From net realized gain on investments and foreign
currency transactions (0.62) (0.57) --
In excess of net investment income -- -- (0.02)
-- -- ----------
Total distributions declared to shareholders $ (0.68) $ (0.60) $ (0.04)
--------- ---------- ----------
Net asset value - end of period $ 17.93 $ 14.47 $ 14.16
------- -------- --------
Total return 28.95% 6.62% 19.01%++
Ratios (to average net assets)/Supplemental datass.:
Expenses## 0.98% 1.05% 1.19%+
Net investment income 0.56% 0.80% 0.87%+
Portfolio turnover 96% 101% 106%
Net assets at end of period (000 omittted) $742 $1,011 $825
</TABLE>
* For the period from the inception of Class I, January 2, 1997, through
August 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## 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. The fund's expenses are calculated
without reduction for this expense offset arrangement.
ss. For the period ended August 31, 1997, subject to reimbursement by the Fund,
the investment adviser voluntarily agreed to maintain the expenses of the
fund, exclusive of management fees, at not more than 0.60% of average daily
net assets. To the extent actual expenses were over/under this limitation,
the net investment income per share and the ratios would have been:
<TABLE>
<CAPTION>
<S> <C>
Net investment income $ 0.08
Ratios (to average net assets):
Expenses## 1.22%+
Net investment income 0.83%+
</TABLE>
The date of this Supplement is January 1, 2000 as revised July 21, 2000.
<PAGE>
MFS(R) EQUITY INCOME FUND
Supplement dated January 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 January 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 supplemented as follows:
Average Annual Total Returns as of December 31, 1998
1 Year Life*
Class I shares 17.66% 25.71%
Standard & Poor's 500 Composite Index#+ 28.58% 28.23%
Average equity income fund++ 11.90% 19.07%
------------------------------
* Fund performance figures are for the period from the commencement of the
fund's investment operations on January 2, 1996, through December 31,
1998. Index and Lipper average returns are from January 1, 1996.
# The Standard & Poor's 500 Composite Index is a broad based unmanaged but
commonly used measure of common stock total return performance. It is
composed of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange, and over-the-counter market.
+ Source: Standard & Poor's Micropal.
++ Source: Lipper Analytical Services, Inc.
The fund commenced investment operations on January 2, 1996, 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, the 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.................................... 0.60%
Distribution and Service (12b-1) Fees.............. 0.00%
Other Expenses(1).................................. 0.41%
-----
Total Annual Fund Operating Expenses............... 1.01%
-----------------------
(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. The fund may enter into other
similar arrangements and directed brokerage arrangements, which would also
have the effect of reducing the fund's expenses. "Other Expenses" do not
take into account these expense reductions, and are therefore higher than
the actual expenses of the fund. Had these fee reductions been taken into
account, "Total Annual Fund Operating Expenses" would be lower, and would
equal 1.00% for class I.
<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.
The table is supplemented as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $103 $322 $558 $1,236
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 MFS, 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 Highlights - Class I Shares
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Year Ended Year Ended Period Ended
Equity Income Fund August 31, 1999 August 31, 1998 August 31, 1997*
--------------- --------------- ----------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 14.22 $ 14.81 $ 12.20
------- ------- -------
Income from investment operations# -
Net investment incomess. $ 0.31 $ 0.24 $ 0.15
Net realized and unrealized gain on investments and
foreign currency### 3.20 1.09 2.46
--------- --------- ---------
Total from investment operations $ 3.51 $ 1.33 $ 2.61
-------- -------- --------
Less distributions declared to shareholders -
From net investment income $ (0.27) $ (0.21) $ --
From net realized gain on investments and foreign
currency transactions (0.22) (1.71) --
---------- ---------- -----
Total distributions declared to shareholders $ (0.49) $ (1.92) $ --
--------- --------- ------
Net asset value - end of period $ 17.24 $ 14.22 $ 14.81
------- ------- -------
Total return 24.97% 9.83% 21.39%++
Ratios (to average net assets)/Supplemental datass.:
Expenses## 1.01% 1.19% 1.54%+
Net investment income 1.85% 1.57% 1.51%+
Portfolio turnover 97% 89% 118%
Net assets at end of period (000 omitted) $3,413 $999 $964
</TABLE>
ss. Effective November 1, 1997, subject to reimbursement by the fund, the
investment adviser agreed to maintain the expenses of the fund, exclusive
of management, distribution and service fees, at not more that 0.40% of
average daily net assets. Prior to November 1, 1997, subject to
reimbursement by the fund, the investment adviser agreed to maintain the
expenses of the fund, exclusive of management, distribution, and service
fees, at not more than 1.50% of average daily net assets. To the extent
actual expenses were over these limitations, the net investment income
per share and the ratios would have been:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net investment income $ 0.31 $ 0.12 $ 0.03
Ratios (to average net assets):
Expenses## 1.01% 1.93% 2.67%+
Net investment income 0.85% 0.82% 0.35%+
</TABLE>
* For the period from the inception of class I, January 2, 1997, through
August 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## 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. The fund's expenses are calculated
without reduction for this expense offset arrangement. ### The per share
amount is not in accordance with the net realized and unrealized gain
(loss) for the year ended August 31, 1998 because of the timing of sales of
fund shares and the amount of per share realized and unrealized gains and
losses at such time.
The date of this supplement is January 1, 2000 as revised July 21, 2000.
<PAGE>
MFS(R) RESEARCH INTERNATIONAL FUND
Supplement dated January 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 January 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 supplemented as follows:
Average Annual Total Returns as of December 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
1 Year Life*
Class I shares 14.44% 12.30%
Morgan Stanley Capital International (MSCI) EAFE (Europe, Australia, Far East) Index#+ 20.33% 10.82%
Average international fund++ 12.99% 9.10%
</TABLE>
-------------------------
* Fund performance figures are for the period from the commencement of the
fund's investment operations on January 2, 1997, through December 31,
1998. Index and Lipper average returns are from January 1, 1997.
# The Morgan Stanley Capital International (MSCI) EAFE (Europe, Australia,
Far East) Index is a broad based, unmanaged,
market-capitalization-weighted total return index which measures the
performance of 20 developed-country global stock markets.
+ Source: Standard & Poor's Micropal.
++ Source: Lipper Analytical Services, Inc.
The fund commenced investment operations on January 2, 1997, with the offering
of class A shares 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....................................... 1.00%
Distribution and Service (12b-1) Fees................. 0.00%
Other Expenses........................................ 1.15%
-----
Total Annual Fund Operating Expenses.................. 2.15%
Expense Reimbursement(1).......................... (0.73)%
-------
Net Expenses(2)................................... 1.42%
-----------------------
(1) MFS has contractually agreed to bear the fund's expenses subject to
reimbursement, such that "Other Expenses", after taking into account the
expense offset arrangement described below, do not exceed 0.40%. These
contractual fee arrangements will continue until at least January 1,
2001, absent an earlier modification approved by the board of trustees
which oversees the fund.
(2) 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. The fund may enter into
other similar arrangements and directed brokerage arrangements, which
would also have the effect of reducing the fund's expenses. "Other
Expenses" do not take into account these expense reductions, and are
therefore higher than the actual expenses of the fund. Had these fee
reductions been taken into account, "Net Expenses" would be lower, and
would equal 1.40% for class I.
<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 Expense Table).
The table is supplemented as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $145 $603 $1,087 $2,425
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 MFS, 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>
Year Ended August 31, Period Ended
1999 1998 August 31, 1997*
---- ---- ----------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 10.26 $ 10.95 $ 10.00
------- ------- -------
Income from investment operations# -
Net investment incomess. $ 0.05 $ 0.06 $ 0.07
Net realized and unrealized gain on investments and
foreign currency 2.42 0.34 0.88
--------- -------- --------
Total from investment operations $ 2.47 $ 0.40 $ 0.95
-------- -------- --------
Less distributions declared to shareholders -
From net investment income $ (0.02) $ (0.05) $ --
From net realized gain on investments and foreign
currency transactions (0.16) (1.04) --
------ ---------- ------
Total distributions declared to shareholders $ (0.18) $ (1.09) $ --
--------- --------- ------
Net asset value - end of period $ 12.55 $ 10.26 $ 10.95
------- ------- -------
Total return 24.08% 4.13% 9.60%++
Ratios (to average net assets)/Supplemental datass.:
Expenses## 1.37% 1.40% 1.68%+
Net investment income 0.47% 0.53% 0.85%+
Portfolio turnover 136% 89% 137%
Net assets at end of period (000 omitted) $1,047 $1,199 $1,022
</TABLE>
ss. Subject to reimbursement by the fund, the investment adviser voluntarily
agreed to maintain the expenses of the fund, exclusive of management fees,
at not more than 0.40% of average daily net assets. For the period ended
August 31, 1997, the investment adviser agreed to maintain the expenses of
the fund at not more than 1.75% of the fund's average daily net assets. The
investment adviser and shareholder servicing agent did not impose any of
their fees for the period ended August 31, 1997. If these fees had not been
waived and actual expenses had been over this limitation, the net
investment loss per share and the ratios would have been:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net investment loss $ (0.03) $ (0.15) $ --
Ratios (to average net assets):
Expenses## 2.10% 3.55% 2.81%+
Net investment loss (0.26)% (1.61)% (0.28)% +
</TABLE>
* For the period from the commencement of the fund's investment operations,
January 2, 1997, through August 31, 1997.
+ Annualized.
++ Not Annualized.
# Per share data are based on average shares outstanding.
## The fund has an expense offset arrangement which reduces the fund's
custodian fees based upon the amount of cash maintained by the fund with
its custodian and dividend disbursing agent. The fund's expenses are
calculated without reduction for this expense offset arrangement.
The date of this Supplement is January 1, 2000 as revised July 21, 2000.
<PAGE>
MFS(R) STRATEGIC GROWTH FUND
Supplement dated January 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 January 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 supplemented as follows:
Average Annual Total Returns as of December 31, 1998
1 Year Life*
Class I shares 45.72% 46.15%
Standard & Poor's 500 Composite Index#+ 28.58% 28.23%
Average growth fund++ 23.42% 22.24%
--------------
* Fund performance figures are for the period from the commencement of the
fund's investment operations on January 2, 1996, through December 31,
1998. Index and Lipper average returns are from January 1, 1996.
# The Standard & Poor's 500 Composite Index is a broad based unmanaged but
commonly used measure of common stock total return performance. It is
composed of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange, and over-the-counter market.
+ Source: Standard & Poor's Micropal.
++ Source: Lipper Analytical Services, Inc.
The fund commenced investment operations on January 2, 1996, 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, the 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....................................... 0.75%
Distribution and Service (12b-1) Fees................. 0.00%
Other Expenses(1)..................................... 0.28%
-----
Total Annual Fund Operating Expenses.................. 1.03%
-----------------------
(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. The fund may enter into other
similar arrangements and directed brokerage arrangements, which would also
have the effect of reducing the fund's expenses. "Other Expenses" do not
take into account these expense reductions, and are therefore higher than
the actual expenses of the fund. Had these fee reductions been taken into
account, "Total Annual Fund Operating Expenses" would be lower.
<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.
The table is supplemented as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $105 $328 $569 $1,259
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 MFS, 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>
Year Ended Year Ended Period Ended
8/31/99 8/31/98 8/31/97*
------- ------- --------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 18.85 $ 16.80 $ 12.08
------- ------- -------
Income from Investment Operations# -
Net investment lossss. $ (0.08) $ (0.08) $ (0.04)
Net realized and unrealized gain on investments and foreign currency 10.34 2.31 4.76
-------- --------- --------
Total from investment operations $ 10.26 $ 2.23 $ 4.72
------- -------- --------
Less distributions declared to shareholders from net realized
gain on investments and foreign currency transactions $ (0.75) $ (0.18) --
---------
Net asset value - end of period $ 28.36 $ 18.85 $ 16.80
------- ------- -------
Total return 55.08% 13.32% 39.24%++
Ratios (to average net assets)/Supplemental datass. -
Expenses## 1.03% 1.08% 0.94%+
Net investment loss (0.34)% (0.37)% (0.40)% +
Portfolio turnover 112% 56% 82%
Net assets at end of period (000 omitted) $24,849 $18,335 $13,462
</TABLE>
----------------------------------------
ss. Subject to reimbursement by the fund, the Adviser voluntarily agreed to
maintain expenses of the fund, exclusive of management fees, at not more
than 0.50% per annum of average daily net assets effective April 14, 1997
through August 31, 1997. To the extent actual expenses were over/under
this limitation, the net investment income per share and the ratios would
have been:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net investment loss $ -- $ -- $(0.06)
Ratios (to average net assets):
Expenses## -- -- 1.14%+
Net Investment loss -- -- (0.60)% +
</TABLE>
* For the period from the inception of class I shares, January 2, 1997,
through August 31, 1997.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## 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. The fund's expenses are calculated
without reduction for this expense offset arrangement.
The date of this Supplement is January 1, 2000 as revised July 21, 2000.
