<PAGE>
MFS(R) UTILITIES FUND
Supplement dated March 1, 1999 (as revised October 1, 1999)
to the Current Prospectus
This Supplement describes the fund's class I shares, and it supplements
certain information in the fund's Prospectus dated March 1, 1999. 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 5 Years Life*
------ ------- -----
Class I shares 18.06% 18.73% 18.16%
Standard & Poor's Utility Index**+ 14.77% 13.90% 14.85%
Average utilities fund+ 18.17% 13.37% 14.78%
- -----------------
* For the period from the commencement of the fund's investment operations
on February 14, 1992, through December 31, 1998.
+ Source: Lipper Analytical Services, Inc.
** The Standard & Poor's Utilities Index is an unmanaged index representing
the capitalization-weighted performance of approximately 43 of the largest
utility companies listed on the New York Stock Exchange.
The fund commenced investment operations on February 14, 1992, 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
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, this 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. 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).
1
<PAGE>
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).............................. 0.30%
-----
Total Annual Fund Operating Expenses........... 0.90%
Fee Waiver(2).................................. (0.10)%
-------
Net Expense..................................... 0.80%
- -----------------
(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 therefore do not represent
the actual expenses of the fund.
(2) The Adviser has voluntarily reduced the management fee to 0.50% of the
fund's average daily net assets for an indefinite period of time.
Example of Expenses. The "Example of Expenses" table is intended to help
you compare the cost of investing in other mutual funds. Class I expenses are as
follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $82 $255 $444 $990
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;
2
<PAGE>
o any retirement plan, endowment or foundation which:
purchases shares directly through MFD (rather than through a
third party broker or dealer or other financial adviser);
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.
In no event will the fund, MFS, MFD or any of their affiliates pay any
sales commissions or compensation to any third party in connection with the sale
of class I shares. The payment of any such sales commission or compensation
would, under the fund's policies, disqualify the purchaser as an eligible
investor in class I shares.
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.
3
<PAGE>
5. FINANCIAL HIGHLIGHTS
The "Financial Highlights" table is intended to help you understand the
fund's financial performance. It is supplemented as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Financial Statements - Class I Shares
Year Ended Period Ended
October 31, 1998 October 31, 1997*
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 10.39 $8.90
------- -----
Income from investment operations# -
Net investment incomess. $ 0.30 $ 0.29
Net realized and unrealized gain on investments and foreign currency 1.80 1.48
------- ------
Total from investment operations $ 2.10 $ 1.77
------- ------
Less distributions declared to shareholders -
From net investment income $ (0.29) $(0.28)
From net realized gain on investments and foreign currency
transactions (1.39) --
In excess of net investment income (0.03) --
-------- ------
Total distributions declared to shareholders $ (1.71) $(0.28)
-------- -------
Net asset value - end of period $ 10.78 $10.39
Total return 22.52% 20.15%++
Ratios (to average net assets)/Supplemental datass. -
Expenses## 0.80% 0.86%+
Net investment income 2.84% 3.39%+
Portfolio turnover 124% 153%
Net assets at end of period (000 omitted) $1,145 $725
</TABLE>
- -----------------
* For the period from the inception of Class I, January 2, 1997, through
October 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. The investment advisor voluntarily waived a portion of its management fee
for the periods indicated. If the fee had not been waived, the net
investment income per share and the ratios would have been:
<TABLE>
<CAPTION>
<S> <C> <C>
Net investment income $0.29 $0.27
Ratios (to average net assets):
Expenses## 0.90% 1.05%+
Net investment income 2.74% 3.20%+
</TABLE>
The date of this Supplement is March 1, 1999 (as revised October 1, 1999).
4
<PAGE>
MFS GLOBAL EQUITY FUND
Supplement dated March 1, 1999 (as revised October 1, 1999)
to the Current Prospectus
This Supplement describes the fund's Class I Shares, and it supplements
certain information in the fund's Prospectus dated March 1, 1999. 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.
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> <C>
1 Year 5 Years 10 Years
------ ------- --------
Class I shares 17.65% 13.13% 12.22%
Standard & Poor's 500 Composite Index** 28.72% 24.09% 19.22%
Morgan Stanley Capital International World Index*** 24.80% 16.19% 11.21%
Average global fund 14.34% 11.98% 11.23%
</TABLE>
- -----------------
Source: Lipper Analytical Services, Inc.
Source: CDA/Wiesenberger
** The Standard & Poor's 500 Composite Index is a market capitalization
weighted price index composed of 500 widely held common stocks.
*** The Morgan Stanley Capital International (MSCI) World Index is an unmanaged
market-capitalization-weighted total return index which measures the
performance of 23 developed-country global stock market, including the
United States, Canada, Europe, Australia, New Zealand and the Far East.
The fund commenced investment operations on December 29, 1986, with the
offering of class B shares and subsequently offered class I shares on
January 2, 1997. Class I share performance includes the performance of the
fund's class B shares for periods prior to the offering of class I shares.
This blended performance has not been adjusted to take into account
differences a class specific operating expenses. Because operating expenses
of class I shares are lower than those of class A shares, this 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. This
blended class I share performance has been adjusted to reflect that class I
shares have no CDSC.
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 Expenses1.................................. 0.35%
-----
Total Annual Fund Operating Expenses............. 1.35%
- -----------------
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
1
<PAGE>
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 therefore do not represent the actual
expenses of the fund.
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. Class I expenses are as follows:
Share Class Year 1 Year 3 Year 5 Year 10
----------- ------ ------ ------ -------
Class I shares $137 $428 $739 $1,624
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:
-purchases shares directly through MFD (rather than through a
third party broker or dealer or other financial adviser);
-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.
In no event will the fund, MFS, MFD or any of their affiliates pay any
sales commissions or compensation to any third party in connection with the sale
of class I shares. The payment of any such sales commission or compensation
would, under the fund's policies, disqualify the purchaser as an eligible
investor in class I shares.
2
<PAGE>
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.
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>
Year Ended Period Ended
September 30, 1998 October 31, 1997*
------------------ -----------------
Per share data (for a share outstanding throughout each period):
Net asset value - beginning of period $ 20.14 $ 17.57
-------- --------
Income from Investment Operations#
Net investment income $ 0.11 $ 0.13
Net realized and unrealized gain on investments and foreign
currency transactions 1.37 2.44
-------- --------
Total from investment operations $ 1.48 $ 2.57
-------- --------
Less distributions declared to shareholders
From net investment income $ (0.16) $ --
From net realized gain on investments and foreign currency
transactions (1.04) $ --
--------- --------
Total distributions declared to shareholders $ (1.20) $ --
--------- --------
Net asset value - end of period $ 20.42 $ 20.14
Total return 7.78% 14.63%++
Ratios (to average net assets)/Supplemental data:
Expenses## 1.35% 1.38%+
Net investment income 0.51% 0.77%+
Portfolio turnover 64% 65%
Net assets at end of period (000 omitted) $599 $472
</TABLE>
- -----------------
* For the period from the inception of Class I, January 2, 1997, through
October 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 March 1, 1999 (as revised October 1, 1999).
3
