MFS UTILITIES FUND
Supplement to the Prospectus dated March 1, 1995
The section of the Prospectus entitled "Expense Summary" is hereby
revised as follows:
1. EXPENSE SUMMARY
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)............ 4.75% 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% 0.00%
Annual Operating Expenses of the Fund (as a percentage of average daily net
assets):
Management Fees (after applicable fee
reduction)2.............................. 0.375% 0.375% 0.375%
Rule 12b-1 Fees........................... 0.25%3 1.00%4 1.00%4
Other Expenses5........................... 0.60% 0.67% 0.60%6
Total Operating Expenses (after
applicable fee reduction)7............... 1.225% 2.045% 1.975%
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1. Purchases of $1 million or more 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 "Purchases").
2. The Adviser has voluntarily reduced the management fee to 0.375% of average
daily net assets on an annualized basis. This voluntary fee reduction may be
rescinded at any time without notice to shareholders. If the Adviser had not
voluntarily agreed to reduce the management fee, the management fee would
have been 0.70% of the Fund's average daily net assts for the fiscal year
ended October 31, 1994. See "Management of the Fund" in the Prospectus.
3. 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 average daily net assets attributable to Class A shares (see
"Distribution Plans"). Distribution fees under this Plan, equal to 0.10%
per annum of the average daily net assets attributable to Class A shares,
are not currently being imposed and will be implemented only upon approval
by the Trust's Board of Trustees. 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.
4. The Fund has adopted separate Distribution Plans for its Class B and Class C
shares in accordance with Rule 12b-1 under the 1940 Act, which provide 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 shares under the Class B Distribution Plan and Class C shares under
the Class C Distribution Plan (see "Distribution Plans"). Distribution
expenses paid under these Plans, together with any CDSC payable upon
redemption of Class B 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.
5. The Adviser has voluntarily agreed to pay expenses of each class of the Fund
(except fees paid under the Advisory Agreement and Distribution Plans) that
exceed 0.65%, 0.72% and 0.65% of the Fund's average daily net assets
attributable to Class A, Class B and Class C shares, respectively, on an
annualized basis. Currently, "Other Expenses" are below these 0.65%, 0.72%
and 0.65% expense ratios for Class A Shares, Class B Shares and Class C
shares, respectively.
6. Except for the shareholder servicing agent fee component, "Other Expenses"
is based on Class A expenses incurred during the fiscal year ended October
31, 1994. The shareholder servicing agent fee component of "Other Expenses"
is a predetermined percentage based upon the Fund's net assets attributable
to each class.
7. Absent any expense waivers described above, "Total Operating Expenses" would
have been 1.55% for Class A shares, 2.37% for Class B shares and 2.30% for
Class C shares of the Fund's average daily net assets attributable to such
shares on an annualized basis.
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):
Period Class A Class B Class C
(1)
1 year......................... $ 59 $ 61 $ 21 $ 20
3 years........................ 85 94 64 62
5 years........................ 112 130 110 107
10 years........................ 189 216(2) 216(2) 230
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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 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 - "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.
* * *
Page 22 of the Prospectus is revised to delete the sentence stating
that payments under the Class A Distribution Plan will commence on the date that
the Fund's net assets attributable to Class A shares first equal or exceed $50
million because such assets have now exceeded this amount. This sentence is
replaced in its entirety as follows: "The 0.10% per annum distribution fee
provided for under the Plan is not currently being imposed and will be
implemented only upon approval by the Board of Trustees."
The date of this Supplement is October 27, 1995.
