Fund Description

The fund was incepted in October 1987 and is managed by Massachusetts Financial Services Company. The fund's main objective is to provide high current income by investing in fixed income securities. Its secondary objective is to provide significant capital appreciation. The fund invests, under normal market conditions, at least 65% of its net assets in fixed income securities. These securities include U.S. government securities, foreign government securities, mortgage-backed and asset-backed securities and corporate bonds. The fund may invest in investment grade bonds, lower rated bonds (junk bonds), crossover bonds (junk bonds that MFS expects will appreciate in value due to an anticipated upgrade in the issuer's credit-rating) and emerging market securities. The fund may also invest in Brady Bonds, which are long-term bonds issued as part of a restructuring of defaulted commercial loans to emerging market countries. The fund allocates its investments across these categories of fixed income securities with a view toward broad diversification across these categories and also within these categories. The fund is a non-diversified mutual fund. The fund offers dividends monthly and capital gains annually.