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MFS(R) Union Standard(R) Equity Fund
Supplement to the February 1, 1998 Prospectus
Effective October 8, 1998, MFS terminated its contractual relationships
with American Capital Strategies, Ltd. ("ACS"). ACS was retained to perform
three functions:
to screen companies for consideration for investment by the Fund,
based on certain labor-sensitive criteria and to maintain the
Labor Sensitivity Index ("LSI"), a common stock index comprised of
these companies;
to administer the affairs of the Labor Advisory Board ("LAB"),
which is comprised of senior labor officials, senior managers of
companies with significant labor contracts, academics and other
national labor leaders or experts, and which assists in the
screening process; and
to vote proxies of companies included in the Fund's portfolio.
MFS has arranged replacement services for each of these functions:
MFS has retained Teresa Ghilarducci and Patrick Mason (the
"Consultants") to screen companies for consideration for
investment by the Fund based on certain labor-sensitivity
criteria. Ms. Ghilarducci is the Director of the Higgins Labor
Research Center of the University of Notre Dame Department of
Economics, and both Ms. Ghilarducci and Mr. Mason are professors
with the University of Notre Dame Department of Economics. The
Consultants will provide MFS with a list of screened companies
(the "Screened Company List") from which investments will be
chosen by MFS for the Fund, and will update this List from time to
time;
The LAB will continue to assist in the screening process and will
work directly with the Consultants; and
MFS has retained JMR/Financial, Inc. to vote proxies of companies
included in the Fund's portfolio. JMR/Financial, Inc. is an
investment adviser registered with the Securities and Exchange
Commission, and provides substantially the same proxy voting
services as had been provided by ACS.
MFS and the Fund have no further access to or the right to use the LSI.
The Fund now invests, under normal market conditions, not less than 65% of its
total assets in equity securities of companies that are on the Screened
Companies List provided to MFS by the Consultants.
The date of this Supplement is October 30, 1998.
