Fund Description

The fund normally invests primarily in municipal instruments issued by or for U.S. states, territories or possessions and their political subdivisions or related entities, including general obligation bonds, project or revenue bonds, municipal lease obligations, and pre-refunded or escrowed bonds. Under normal market conditions, it invests at least 80% of net assets (including borrowings for investment purposes) in securities whose interest is exempt from U.S. federal income tax, though interest may be subject to the federal alternative minimum tax. It focuses mainly on investment grade debt but may invest in below investment grade, may invest 25% or more in similar project types, and may hold significant exposure to one or a few states. While MFS may use derivatives for any investment purpose, it expects to use derivatives primarily to increase or decrease exposure to a particular market, segment of the market, or security, to increase or decrease interest rate exposure, or as alternatives to direct investments.