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MFS UNION STANDARD EQUITY FUND
Supplement to the August 1, 1997 Prospectus and Statement of Additional
Information
The following information should be read in conjunction with the
Fund's Prospectus and Statement of Additional Information ("SAI"), dated August
1, 1997, and contains a description of Class I shares.
Class I shares are available for purchase only by certain investors
as described under the caption "Eligible Purchasers" below.
EXPENSE SUMMARY
Shareholder Transaction Expenses: Class I
Maximum Initial Sales Charge Imposed on Purchases of Fund
Shares (as a percentage of offering price) None
Maximum Contingent Deferred Sales Charge (as a percentage
of original purchase price or redemption proceeds, as applicable) None
Annual Operating Expenses of the Fund (as a percentage of average net assets):
Management Fees 0.65%
Rule 12b-1 Fees None
Other Expenses (after expense limitation)(1)(2) 0.20%
Total Operating Expenses (after expense limitation)(2) 0.85%
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(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, 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."
(2) The Adviser has agreed to bear the Fund's expenses attributable to Class
I shares, subject to reimbursement by the Fund, such that "Other
Expenses" do not exceed 0.20% per annum of the average daily net assets
during the current fiscal year. Otherwise, "Other Expenses" and "Total
Operating Expenses" on Class I shares would be 0.43% and 1.08%,
respectively.
Example of Expenses
An investor would pay the following dollar amounts of expenses on a
$1,000 investment in Class I shares of the Fund, assuming (a) a 5% annual
return and (b) redemption at the end of each of the time periods indicated:
Period Class I
1 year.............. $ 9
3 years............. 27
5 years............. 47
10 years............ 105
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. A more complete description of the Fund's
management fee is set forth under the caption "Management of the Fund" in the
Prospectus.
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.
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ELIGIBLE PURCHASERS
Class I shares are available for purchase only by the following purchasers
("Eligible Purchasers"):
(i) certain retirement plans established for the benefit of employees of
Massachusetts Financial Services Company ("MFS"), the Fund's investment
adviser, and employees of MFS' affiliates;
(ii) any fund distributed by MFS Fund Distributors, Inc. ("MFD"), the Fund's
distributor, if the fund seeks to achieve its investment objective by
investing primarily in shares of the Fund and other funds distributed by
MFD;
(iii)any retirement plan, endowment or foundation which: (a) purchases
shares directly through MFD (rather than through a third party broker or
dealer or other financial intermediary); and (b) invests at least $3
million in Class I shares of the Fund either alone or in combination with
investments in Class I shares of other MFS funds distributed by MFD
(additional investments may be made in any amount); provided that MFD may
accept purchases in smaller amounts if it believes, in its sole
discretion, that such entity will make additional investments which will
cause its total investment to equal or exceed $3 million, within a
reasonable period of time; and
(iv) bank trust departments which initially invest, on behalf of their trust
clients, at least $100,000 in Class I shares of the Fund (additional
investments may be made in any amount); provided that MFD may accept
smaller initial purchases if it believes, in its sole discretion, that
the bank trust department will make additional investments, on behalf of
its trust clients, which will cause its total investment to equal or
exceed $100,000 within a reasonable period of 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 of Class I shares.
SHARE CLASSES OFFERED BY THE FUND
Four classes of shares of the Fund currently are offered for sale:
Class A shares, Class B shares, Class C shares and Class I shares. Class I
shares are available for purchase only by Eligible Purchasers, as defined
above, and are described in this Supplement. Class A shares, Class B shares
and Class C shares are described in the Fund's Prospectus and are available
for purchase by the general public.
Class A shares are offered at net asset value plus an initial sales
charge up to a maximum of 5.75% of the offering price (or a contingent
deferred sales charge (a "CDSC") of 1.00% upon redemption during the first
year in the case of purchases of $1 million or more and certain purchases by
retirement plans), and are subject to an annual distribution fee and service
fee up to a maximum of 0.35% per annum. Class B shares are offered at net
asset value without an initial sales charge but are subject to a CDSC upon
redemption (declining from 4.00% during the first year to 0% after six years)
and an annual distribution fee and service fee up to a maximum of 1.00% per
annum; Class B shares convert to Class A shares approximately eight years
after purchase. Class C shares are offered at net asset value without an
initial sales charge but are subject to a CDSC upon redemption of 1.00% during
the first year and an annual distribution fee and service fee up to a maximum
of 1.00% per annum. Class I shares are offered at net asset value without an
initial sales charge or CDSC and are not subject to a distribution or service
fee. Class A, Class C and Class I shares do not convert to any other class of
shares of the Fund.
OTHER INFORMATION
Eligible Purchasers may only purchase Class I shares directly through
MFD. Class I shares do not have exchange privileges with any other MFS Fund.
Eligible Purchasers may redeem Class I shares of the Fund at net asset value.
Distributions paid by the Fund with respect to Class I shares generally will
be greater than those paid with respect to Class A shares, Class B shares and
Class C shares because expenses attributable to Class A shares, Class B shares
and Class C shares generally will be higher.
The date of this Supplement is August 1, 1997
