Fund Description

The fund was incepted in October 1970 and is managed by Massachusetts Financial Services Company. The main investment objective of the fund is to provide above-average income consistent with the prudent employment of capital. Its secondary objective is to provide reasonable opportunity for growth of capital and income. The fund is a ''balanced fund,'' and invests in a combination of equity and fixed income securities. Under normal market conditions, the fund invests, at least 40%, but not more than 75%, of its net assets in equity securities, and at least 25% of its net assets in non-convertible fixed income securities. The fund may vary the percentage of its assets invested in any one type of security (within the limits described above) in accordance with the fund manager's interpretation of economic and money market conditions, fiscal and monetary policy, and underlying security values. The fund's investments may include securities traded on securities exchanges or in the over-the-counter markets. The fund may invest in foreign securities, and may have exposure to foreign currencies through its investment in these securities. The fund offers dividends monthly and capital gains annually.