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MFS INSTITUTIONAL EMERGING MARKETS INCOME FUND
(the "Emerging Markets Fund")
Supplement to the December 1, 1995 Prospectus and
Statement of Additional Information
The following information should be read in conjunction with the Fund's
Prospectus and Statement of Additional Information dated December 1, 1995.
The first two paragraphs on page 8 of the Prospectus under the caption
"Investment Objectives and Policies - Emerging Markets Fund" are hereby deleted
and replaced in their entirety by the following:
"Emerging Markets Fund -- The Emerging Markets Fund's investment
objective is to seek total return (high current income and
long-term growth of capital).
The Fund seeks to achieve its objective by investing, under
normal market conditions, at least 65% of its total assets in
fixed income securities of government, government-related,
supranational and corporate issuers located, or primarily
conducting their business, in emerging markets (see "Investment
Techniques - Fixed Income Securities and - Emerging Market
Securities" below.
Until such time as the net assets of the Fund reach $10 million, the
Fund has adopted the investment policy to invest, under normal market
conditions, at least 65% of its total assets in the fixed income securities
listed above, and in forward foreign currency exchange contracts ("forward
contracts"). See "Investment Techniques - Forward Contracts" in the Prospectus.
The Fund intends to enter into forward contracts as an alternate method of
gaining exposure to certain emerging markets, and expects to achieve a similar
benefit from entering into a forward contract denominated in a country's
currency as from the purchase of an emerging market debt security.
To more accurately reflect the Fund's investment policies, the name of
the Fund was changed from MFS Institutional Emerging Markets Fixed Income Fund
to MFS Institutional Emerging Markets Income Fund.
The Date of this Supplement is June 25, 1996
