[MFS 75 YEAR LOGO]
MFS[RegTM] VARIABLE INSURANCE TRUST(SM)
M A Y 1 , 1 9 9 9
Prospectus
MFS(R) GROWTH WITH INCOME SERIES
- --------------------------------------------------------------------------------
This Prospectus describes one of the series of the MFS Variable Insurance Trust
(referred to as the trust):
1. MFS Growth With Income Series seeks to provide reasonable current income and
long-term growth of capital and income (referred to as the Growth With
Income Series).
The Securities and Exchange Commission has not approved the series' shares or
determined whether this prospectus is accurate or complete. Anyone who tells
you otherwise is committing a crime.
<PAGE>
<TABLE>
<CAPTION>
Page
<S> <C> <C>
TABLE OF CONTENTS
I Expense Summary ............................................ (1)
II Risk Return Summary ........................................ (2)
1. Growth With Income Series ............................... (2)
III Certain Investment Strategies and Risks .................... (4)
IV Management of the Series ................................... (4)
V Description of Shares ...................................... (5)
VI Other Information .......................................... (5)
VII Financial Highlights ....................................... (7)
Appendix A -- Investment Techniques and Practices .......... (A-1)
</TABLE>
<PAGE>
The trust offers shares of its 15 series to separate accounts established
by insurance companies in order to serve as investment vehicles for
variable annuity and variable life insurance contracts and to qualified
pension and retirement plans. Each of these series is managed by
Massachusetts Financial Services Company (referred to as MFS or the
adviser). One of these series is described below.
I EXPENSE SUMMARY
> Expense Table
This table describes the expense that you may pay when you hold shares of
the series. These fees and expenses do not take into account the fees and
expenses imposed by insurance companies through which your investment in a
series may be made.
Annual Series Operating Expenses (expenses that are deducted from a series'
assets):
<TABLE>
<CAPTION>
Growth
With
Income
Series
----------
<S> <C>
Management Fee .................................... 0.75%
Other Expenses(1) ................................. 0.13%
----
Total Annual Series Operating Expenses(1) ......... 0.88%
</TABLE>
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(1) Each series has an expense offset arrangement which reduces the series'
custodian fee based upon the amount of cash maintained by the series with
its custodian and dividend disbursing agent. Each series may enter into
other such arrangements and directed brokerage arrangements, which would
also have the effect of reducing the series' expenses. Expenses do not
take into account these expense reductions, and are therefore higher than
the actual expenses of the series.
(2) MFS has contractually agreed to bear expenses for these series, subject
to reimbursement by these series, such that each such series' "Other
Expenses" shall not exceed 0.25% of the average daily net assets of the
series during the current fiscal year for each remaining series. The
payments made by MFS on behalf of each series under this arrangement are
subject to reimbursement by the series to MFS, which will be accomplished
by the payment of an expense reimbursement fee by the series to MFS
computed and paid monthly at a percentage of the series' average daily
net assets for its then current fiscal year, with a limitation that
immediately after such payment the series' "Other Expenses" will not
exceed the percentage set forth above for that series. The obligation of
MFS to bear a series' "Other Expenses" pursuant to this arrangement, and
the series' obligation to pay the reimbursement fee to MFS, terminates on
the earlier of the date on which payments made by the series equal the
prior payment of such reimbursable expenses by MFS, or December 31, 2004.
MFS may, in its discretion, terminate this contractual arrangement at an
earlier date, provided that the arrangement will continue for each series
until at least May 1, 2000, unless terminated with the consent of the
board of trustees which oversees the series.
> Example of Expenses
These examples are intended to help you compare the cost of investing in
the series with the cost of investing in other mutual funds. These examples
do not take into account the fees and expenses imposed by insurance
companies through which your investment in a series may be made.
The examples assume that:
o You invest $10,000 in the series for the time periods indicated and you
redeem your shares at the end of the time periods;
o Your investment has a 5% return each year and dividends and other
distributions are reinvested; and
o The series' operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions
your costs would be:
<TABLE>
<CAPTION>
Period
--------------------------------------
Series 1 Year 3 Years 5 Years 10 Years
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth With Income Series $90 $281 $488 $1,084
</TABLE>
1
<PAGE>
II RISK RETURN SUMMARY
Investment strategies which are common to all series are described under
the caption "Certain Investment Strategies."
1: Growth With Income Series
........................................................................ .
> Investment Objective
The series' investment objective is to provide reasonable current income
and long-term growth of capital and income. The series' objective may be
changed without shareholder approval.
> Principal Investment Policies
The series invests, under normal market conditions, at least 65% of its
total assets in common stocks and related securities, such as preferred
stocks, convertible securities and depositary receipts for those
securities. These securities may be listed on a securities exchange or
traded in the over-the-counter markets. While the series may invest in
companies of any size, the series generally focuses on companies with
larger market capitalizations that MFS believes have sustainable growth
prospects and attractive valuations based on current and expected earnings
or cash flow.
MFS uses a bottom-up, as opposed to a top-down, investment style in
managing the equity-oriented funds (such as the series) it advises. This
means that securities are selected based upon fundamental analysis
performed by the series' portfolio manager and MFS' large group of equity
research analysts.
The series may invest in foreign equity securities through which it may
have exposure to foreign currencies.
> Principal Risks
The principal risks of investing in the series and the circumstances
reasonably likely to cause the value of your investment in the series to
decline are described below. As with any non-money market mutual fund, the
share price of the series will change daily based on market conditions and
other factors. Please note that there are many circumstances which could
cause the value of your investment in the series to decline, and which
could prevent the series from achieving its objectives, that are not
described here.
The principal risks of investing in the series are:
o Market Risk: This is the risk that the price of a security held by the
series will fall due to changing economic, political or market conditions
or disappointing earnings results.
o Company Risk: Prices of securities react to the economic condition of the
company that issued the security. The series' equity investments in an
issuer may rise and fall based on the issuer's actual and anticipated
earnings, changes in management and the potential for takeovers and
acquisitions.
o Large Cap Companies Risk: Large cap companies tend to go in and out of
favor based on market and economic conditions. Large cap companies tend to
be less volatile than companies with smaller market capitalizations. In
exchange for this potentially lower risk, the series' value may not rise as
much as the value of series that emphasize smaller cap companies.
o Foreign Markets Risk: Investing in foreign securities involves risks
relating to political, social and economic developments abroad, as well as
risks resulting from the differences between the regulations to which U.S.
and foreign issuers and markets are subject:
> These risks may include the seizure by the government of company assets,
excessive taxation, withholding taxes on dividends and interest,
limitations on the use or transfer of portfolio assets, and political or
social instability.
> Enforcing legal rights may be difficult, costly and slow in foreign
countries, and there may be special problems enforcing claims against
foreign governments.
> Foreign companies may not be subject to accounting standards or
governmental supervision comparable to U.S. companies, and there may be
less public information about their operations.
> Foreign markets may be less liquid and more volatile than U.S. markets.
> Foreign securities often trade in currencies other than the U.S. dollar,
and the series may directly hold foreign currencies and purchase and sell
foreign currencies through forward exchange contracts. Changes in
currency exchange rates will affect the series' net asset
2
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value, the value of dividends and interest earned, and gains and losses
realized on the sale of securities. An increase in the strength of the
U.S. dollar relative to these other currencies may cause the value of
the series to decline. Certain foreign currencies may be particularly
volatile, and foreign governments may intervene in the currency markets,
causing a decline in value or liquidity in the series' foreign currency
holdings. By entering into forward foreign currency exchange contracts,
the series may be required to forego the benefits of advantageous
changes in exchange rates and, in the case of forward contracts entered
into for the purpose of increasing return, the series may sustain losses
which will reduce its gross income. Forward foreign currency exchange
contracts involve the risk that the party with which the series enters
the contract may fail to perform its obligations to the series.
o As with any mutual fund, you could lose money on your investment in the
series.
An investment in the series is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
> Bar Chart and Performance Table
The bar chart and performance table below are intended to indicate some of
the risks of investing in the series by showing changes in the series'
performance over time. The performance table also shows how the series
performance over time compares with that of one or more broad measures of
market performance. The chart and table provide past performance
information. The series' past performance does not necessarily indicate how
the series will perform in the future. The returns shown do not reflect
fees and charges imposed under the variable annuity and life insurance
contracts through which an investment may be made. If these fees and
charges were included, they would reduce these returns.
Bar Chart
The bar chart shows changes in the annual total returns of the series'
shares for each calendar year since they were first offered, assuming the
reinvestment of distributions.
[PLOT POINTS FOR BAR CHART]
<TABLE>
<CAPTION>
<S> <C>
1996 24.46%
1997 29.78%
1998 22.32%
</TABLE>
[END PLOT POINTS]
During the period shown in the bar chart, the highest quarterly return was
18.29% (for the calendar quarter ended December 31, 1998) and the lowest
quarterly return was (10.95)% (for the calendar quarter ended September 30,
1998).
Performance Table
This table shows how the average annual total returns of the series' shares
compares to a broad measure of market performance and assumes the
reinvestment of distributions.
Average Annual Total Returns as of December 31, 1998
.........................................................................
<TABLE>
<CAPTION>
1 Year Life
<S> <C> <C>
Growth With Income Series* 22.32% 25.98%
Standard & Poor's 500 Composite Index **++ 28.58% 28.16%
</TABLE>
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* "Life" refers to the period from the commencement of the series'
investment operations on October 9, 1995, through December 31, 1998.
++ Source: CDA/Wiesenberger. "Life" refers to the period from November
1, 1995, through December 31, 1998.
** The Standard & Poor's 500 Composite Index is a broad based, unmanaged
index of common stock total return performance.
3
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> Portfolio Manager
John D. Laupheimer, a Senior Vice President of the Adviser, has been
employed by the Adviser as a portfolio manager since 1981. Mr. Laupheimer
has been the series' portfolio manager since its inception. Mitchell D.
Dynan, a Senior Vice President of the Adviser, has been employed as a
portfolio manager since 1986. Mr. Dynan has been the series' portfolio
manager since May 1, 1999.
III CERTAIN INVESTMENT STRATEGIES AND RISKS
The series may depart from its principal investment strategies by
temporarily investing for defensive purposes when adverse market, economic
or political conditions exist. While a series invests defensively, it may
not be able to pursue its investment objective. The series defensive
investment policy may not be effective in protecting its value.
The series may engage in active and frequent trading to achieve its
principal investment strategies. This may result in the realization and
distribution to shareholders of higher capital gains. Frequent trading also
increases transaction costs, which could detract from the series'
performance.
The series may invest in various types of securities and engage in various
investment techniques and practices which are not the principal focus of
the series and therefore are not described in this Prospectus. The types of
securities and investment techniques and practices in which a series may
engage, including the principal investment techniques and practices
described above, are identified in Appendix A to this Prospectus, and are
discussed, together with their risks, in the trust's Statement of
Additional Information (referred to as the SAI), which you may obtain by
contacting MFS Service Center, Inc. (see back cover for address and phone
number).
IV MANAGEMENT OF THE SERIES
> Investment Adviser
Massachusetts Financial Services Company (referred to as MFS or the
adviser) is the investment adviser to each series. MFS is America's oldest
mutual fund organization. MFS and its predecessor organizations have a
history of money management dating from 1924 and the founding of the first
mutual fund, Massachusetts Investors Trust. Net assets under the management
of the MFS organization were approximately $102.9 billion on behalf of
approximately 3.8 million investor accounts as of January 31, 1999. As of
such date, the MFS organization managed approximately $73.6 billion of net
assets in equity fund and equity portfolios. Approximately $4.7 billion of
the assets managed by MFS are invested in securities of foreign issuers and
foreign denominated securities of U.S. issuers. MFS is located at 500
Boylston Street, Boston, Massachusetts 02116.
MFS provides investment management and related administrative services and
facilities to each series, including portfolio management and trade
execution. For these services each series pays MFS an annual management fee
as set forth in the Expense Summary.
MFS or its affiliates generally pay an administrative service fee to
insurance companies which use the series as underlying investment vehicles
for their variable annuity and variable life insurance contracts based upon
the aggregate net assets of the series attributable to these contracts.
These fees are not paid by the series, their shareholders, or by the
contract holders.
> Administrator
MFS provides the series with certain financial, legal, compliance,
shareholder communications and other administrative services. MFS is
reimbursed by the series for a portion of the costs it incurs in providing
these services.
> Distributor
MFS Fund Distributors, Inc. (referred to as MFD), a wholly owned subsidiary
of MFS, is the distributor of shares of the series.
> Shareholder Servicing Agent
MFS Service Center, Inc. (referred to as MFSC), a wholly owned subsidiary
of MFS, performs transfer agency and certain other services for each
series, for which it receives compensation from the series.
4
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V DESCRIPTION OF SHARES
The trust offers shares of its series to separate accounts established by
insurance companies in order to serve as investment vehicles for variable
annuity and variable life insurance contracts. The trust also offers shares
of its series to qualified pension and retirement plans. All purchases,
redemptions and exchanges of shares are made through these insurance
company separate accounts and plans, which are the record owner of the
shares. Contract holders and plan beneficiaries seeking to purchase, redeem
or exchange interests in the trust's shares should consult with the
insurance company which issued their contracts or their plan sponsor.
VI OTHER INFORMATION
> Pricing of Series' Shares
The price of the series' shares is based on its net asset value. The net
asset value of the series' shares is determined at the close of regular
trading each day that the New York Stock Exchange is open for trading
(generally, 4:00 p.m., Eastern time) (referred to as the valuation time).
To determine net asset value, the series values its assets at current
market values, or at fair value as determined by the Adviser under the
direction of the Board of Trustees that oversees the series if current
market values are unavailable. Fair value pricing may be used by a series
when current market values are unavailable or when an event occurs after
the close of the exchange on which the series' portfolio securities are
principally traded that is likely to have changed the value of the
securities. The use of fair value pricing by a series may cause the net
asset value of its shares to differ significantly from the net asset value
that would be calculated using current market values.
Insurance companies and plan sponsors are the designees of the trust for
receipt of purchase, exchange and redemption orders from contractholders
and plan beneficiaries. An order submitted to the trust's designee by the
valuation time will receive the net asset value next calculated; provided
that the trust receives notice of the order generally by 9:30 a.m. eastern
time on the next day on which the New York Stock Exchange is open for
trading.
Certain series invest in securities which are primarily listed on foreign
exchanges that trade on weekends and other days when the series does not
price its shares. Therefore, the value of these series' shares may change
on days when you will not be able to purchase or redeem their shares.
> Distributions
The series intends to pay substantially all of its net income (including
net short-term capital gain) to shareholders as dividends at least
annually. Any realized net capital gains are also distributed at least
annually.
> Tax Considerations
The series of the trust is treated as a separate entity for federal income
tax purposes. As long as a series qualifies for treatment as a regulated
investment company (which it has in the past and intends to do so in the
future), it pays no federal income tax on the earnings it distributes to
shareholders. In addition, each series also intends to continue to
diversify its assets to satisfy the federal diversification tax rules
applicable to separate accounts that fund variable insurance and annuity
contracts.
Shares of the series are offered to insurance company separate accounts and
qualified pension and retirement plan sponsors. Consult with the insurance
company which issued your contract or your plan sponsor or financial
advisor to understand the federal tax treatment of your investment.
> Right to Reject Purchase and Exchange Orders
Purchases and exchanges should be made for investment purposes only. The
series reserves the right to reject or restrict any specific purchase or
exchange request. Because an exchange request involves both a request to
redeem shares of one series and to purchase shares of another series, the
series consider the underlying redemption and purchase requests conditioned
upon the acceptance of each of these underlying requests. Therefore, in the
event that the series reject an exchange request, neither the redemption
nor the purchase side of the exchange will be processed.
5
<PAGE>
> Market Timing Policies
The series are not designed for professional market timing organizations or
other entities using programmed or frequent exchanges. The series define a
"market timer" as an individual, or organization acting on behalf of one or
more individuals, if the individual or organization makes during the
calendar year six or more exchange requests among the series.
Accounts under common ownership or control, including accounts administered
by market timers, will be aggregated for purposes of this definition.
The series may impose specific limitations on market timers, including:
o delaying for up to seven days the purchase side of an exchange request
by market timers;
o rejecting or otherwise restricting purchase or exchange requests by
market timers; and
o permitting exchanges by market timers only into certain series.
> In-kind distributions
The series have reserved the right to pay redemption proceeds by a
distribution in-kind of portfolio securities (rather than cash). In the
event that the series makes an in-kind distribution, you could incur the
brokerage and transaction charges when converting the securities to cash.
The series do not expect to make in-kind distributions.
> Unique Nature of Series
MFS may serve as the investment adviser to other funds which have similar
investment goals and principal investment policies and risks to the series,
and which may be managed by the series' portfolio manager(s). While a
series may have many similarities to these other funds, its investment
performance will differ from their investment performance. This is due to a
number of differences between a series and these similar products,
including differences in sales charges, expense ratios and cash flows.
> Year 2000 Readiness Disclosure
The series could be adversely affected if the computer systems used by MFS,
the series' other service providers or the companies in which the series
invests do not properly process date-related information from and after
January 1, 2000 (the "Year 2000 Issue"). MFS recognizes the importance of
the Year 2000 Issue and, to address Year 2000 compliance, created a
separately funded Year 2000 Program Management Office in 1996 comprised of
a specialized staff reporting directly to MFS senior management. The
Office, with the help of external consultants, is responsible for overall
coordination, strategy formulation, communications and issue resolution
with respect to Year 2000 issues. While MFS systems will be tested for Year
2000 readiness before the turn of the century, there are significant
systems interdependencies in the domestic and foreign markets for
securities, the business environments in which companies held by the series
operate and in MFS' own business environment. MFS has been working with the
series' other service providers to identify and respond to potential
problems with respect to Year 2000 readiness and to develop contingency
plans. Year 2000 readiness is also one of the factors considered by MFS in
its ongoing assessment of companies in which the series invests. There can
be no assurance, however, that these steps will be sufficient to avoid any
adverse impact on the series.
> Potential Conflicts
Shares of the series are offered to the separate accounts of insurance
companies that may be affiliated or unaffiliated with MFS and each other
("shared funding") and may serve as the underlying investments for both
variable annuity and variable life insurance contracts ("mixed funding").
Due to differences in tax treatment or other considerations, the interests
of various contract owners might at some time be in conflict. The trust
currently does not foresee any such conflict. Nevertheless, the board of
trustees which oversees the series intends to monitor events in order to
identify any material irreconcilable conflicts which may possibly arise and
to determine what action, if any, should be taken in response. If such a
conflict were to occur, one or more separate accounts of the insurance
companies might be required to withdraw its investments in one or more
series. This might force a series to sell securities at disadvantageous
prices.
6
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VII FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the
series' financial performance for the past 5 years, or, if a series has not
been in operation that long, since the time it commenced investment
operations. Certain information reflects financial results for a single
series' share. The total returns in the table represent the rate by which
an investor would have earned (or lost) on an investment in a series
(assuming reinvestment of all distributions). This information has been
audited by the trust's independent auditors, whose report, together with
the trust's financial statements, are included in the trust's Annual Report
to shareholders. The series' Annual Report is available upon request by
contacting MFSC (see back cover for address and telephone number). These
financial statements are incorporated by reference into the SAI. The
trust's independent auditors are Deloitte & Touche LLP.
1. Growth With Income Series
...........................................................................
<TABLE>
<CAPTION>
Period Ended
Year Ended December 31, December 31,
1998 1997 1996 1995*
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<S> <C> <C> <C> <C>
Per share data (for a share outstanding throughout
each period):
Net asset value -- beginning of period ................... $ 16.44 $ 12.98 $10.61 $10.00
-------- ------- ------ ------
Income from investment operations# --
Net investment income[sec] .............................. $ 0.13 $ 0.16 $ 0.18 $ 0.05
Net realized and unrealized gain on investments and
foreign currency ....................................... 3.54 3.70 2.42 0.61
-------- ------- ------ ------
Total from investment operations ...................... $ 3.67 $ 3.86 $ 2.60 $ 0.66
-------- ------- ------ ------
Less distributions declared to shareholders --
From net investment income .............................. $ -- $ (0.07) $(0.09) $(0.05)
From net realized gain on investments and foreign
currency transactions .................................. -- (0.29) (0.13) --
In excess of net realized gain on investments and
foreign currency transactions .......................... -- (0.04) (0.01) --
-------- ------- ------ ------
Total distributions declared to shareholders .......... $ -- $ (0.40) $(0.23) $(0.05)
-------- ------- ------ ------
Net asset value -- end of period ......................... $ 20.11 $ 16.44 $12.98 $10.61
-------- ------- ------ ------
Total return ............................................. 22.32% 29.78% 24.46% 6.64%++
Ratios (to average net assets)/Supplemental data[sec]:
Expenses## .............................................. 0.95% 1.00% 1.01% 1.00%+
Net investment income ................................... 0.73% 0.93% 1.52% 2.20%+
Portfolio turnover ....................................... 57% 42% 41% 2%
Net assets at end of period (000 omitted) ................ $244,310 $58,045 $9,174 $ 365
</TABLE>
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* For the period from the commencement of the series' investment
operations, October 9, 1995, through December 31, 1995.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## The series has an expense offset arrangement which reduces the series'
custodian fee based upon the amount of cash maintained by the series
with its custodian. The series' expenses are calculated without
reduction for this expense offset arrangement.
[sec] Prior to October 2, 1998, subject to reimbursement by the series, the
investment adviser voluntarily agreed to maintain the expenses of the
series, exclusive of management fees, at not more than 0.25% of average
daily net assets. To the extent actual expenses were over/under this
limitation, the net investment income (loss) per share and ratios would
have been:
<TABLE>
<S> <C> <C> <C> <C>
Net investment income (loss) .......... $ 0.14 $ (0.13) $ (0.05) $ (0.41)
Ratios (to average net assets):
Expenses## ........................... 0.88% 1.10% 2.07% 21.44%+
Net investment income (loss) ......... 0.80% 0.82% 0.46% (18.24)%+
</TABLE>
7
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A p p e n d i x A
G r o w t h W i t h I n c o m e S e r i e s
> Investment Techniques and Practices
In pursuing its investment objectives and investment policies, the Growth
With Income Series may engage in the following investment techniques and
practices, which are described, together with their risks, in the SAI.
Investment techniques and practices which are the principal focus of the
series are also described in the Risk Return Summary of the Prospectus.
<TABLE>
<CAPTION>
Symbols [check mark] permitted -- not permitted
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C>
Debt Securities Investment in Other Investment Companies
Asset-Backed Securities Open-End [check mark]
Collateralized Mortgage Obligations and Multiclass Closed-End [check mark]
Pass-Through Securities -- Lending of Portfolio Securities [check mark]
Corporate Asset-Backed Securities -- Leveraging Transactions
Mortgage Pass-Through Securities -- Bank Borrowings --*
Stripped Mortgage-Backed Securities -- Mortgage "Dollar-Roll" Transactions --*
Corporate Securities [check mark] Reverse Repurchase Agreements --*
Loans and Other Direct Indebtedness -- Options
Lower Rated Bonds -- Options on Foreign Currencies [check mark]
Municipal Bonds -- Options on Futures Contracts [check mark]
Speculative Bonds -- Options on Securities [check mark]
U.S. Government Securities -- Options on Stock Indices [check mark]
Variable and Floating Rate Obligations [check mark] Reset Options --
Zero Coupon Bonds, Deferred Interest Bonds and PIK "Yield Curve" Options --
Bonds [check mark] Repurchase Agreements [check mark]
Equity Securities [check mark] Restricted Securities [check mark]
Foreign Securities Exposure Short Sales --
Brady Bonds -- Short Sales Against the Box [check mark]
Depositary Receipts [check mark Short Term Instruments [check mark]
Dollar-Denominated Foreign Debt Securities -- Swaps and Related Derivative Instruments --
Emerging Markets [check mark] Temporary Borrowings [check mark]
Foreign Securities [check mark] Temporary Defensive Positions [check mark]
Forward Contracts [check mark] Warrants [check mark]
Futures Contracts [check mark] "When-Issued" Securities [check mark]
Indexed Securities/Structured Products --
Inverse Floating Rate Obligations --
</TABLE>
*May be changed only with shareholder approval.
A-1
<PAGE>
MFS(R) VARIABLE INSURANCE TRUST(SM)
If you want more information about the trust and its series, the following
documents are available free upon request:
Annual/Semiannual Reports. These reports contain information about the
series' actual investments. Annual reports discuss the effect of recent
market conditions and the series' investment strategy on the series'
performance during its last fiscal year.
Statement of Additional Information (SAI). The SAI, dated May 1, 1999,
provides more detailed information about the trust and its series and is
incorporated into this prospectus by reference.
You can get free copies of the annual/semiannual reports, the SAI and other
information about the trust and its series, and make inquiries about the
trust and its series, by contacting:
MFS Service Center, Inc.
2 Avenue de Lafayette
Boston, MA 02111-1738
Telephone: 1-800-343-2829, ext. 3500
Internet: http://www.mfs.com
Information about the trust and its series (including its prospectus, SAI and
shareholder reports) can be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
Washington, D.C., 20549-6009
Information on the operation of the Public Reference Room may be obtained
by calling the Commission at 1-800-SEC-0330. Reports and other information
about the trust and its series are available on the Commission's Internet
website at http://www.sec.gov, and copies of this information may be
obtained, upon payment of a duplicating fee, by writing the Public
Reference Section at the above address.
The trust's Investment Company Act file number is 811-8326
MSG 11/98 224M 90/290/390/890
