SHARE CLASS REDESIGNATION
EFFECTIVE JANUARY 1, 1999
Class A - Formerly Class I
Class C - Formerly Class II
SUPPLEMENT DATED JANUARY 1, 1999
TO THE PROSPECTUS OF
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
DATED DECEMBER 1, 1998
The prospectus is amended as follows:
I. As of January 1, 1999, Class I shares are designated Class A and Class
II shares are designated Class C. All references in the prospectus to
Class I shares are replaced with Class A, and all references to Class
II shares are replaced with Class C.
II. Under "How Do I Buy Shares?",
(a) the second waiver category in the section "Sales Charge Waivers,"
found under "Sales Charge Reductions and Waivers," is replaced with the
following:
2. Redemption proceeds from the sale of shares of any Franklin
Templeton Fund. The proceeds must be reinvested in the same class
of shares, except proceeds from the sale of Class B shares will be
reinvested in Class A shares.
If you paid a Contingent Deferred Sales Charge when you sold your
Class A or C shares, we will credit your account with the amount of
the Contingent Deferred Sales Charge paid but a new Contingent
Deferred Sales Charge will apply. For Class B shares reinvested in
Class A, a new Contingent Deferred Sales Charge will not apply,
although your account will not be credited with the amount of any
Contingent Deferred Sales Charge paid when you sold your Class B
shares.
Proceeds immediately placed in a Franklin Bank CD also may be
reinvested without a front-end sales charge if you reinvest them
within 365 days from the date the CD matures, including any
rollover.
This waiver does not apply to shares you buy and sell under our
exchange program. Shares purchased with proceeds from a money fund
may be subject to a sales charge.
(b) and the section "How Do I Buy Shares in Connection with Retirement
Plans?" is replaced with the following:
HOW DO I BUY SHARES IN CONNECTION WITH RETIREMENT PLANS?
Your individual or employer-sponsored retirement plan may invest in the
funds. Plan documents are required for all retirement plans. Trust
Company can provide the plan documents for you and serve as custodian
or trustee.
Trust Company can provide you with brochures containing important
information about its plans. These plans require separate applications
and their policies and procedures may be different than those described
in this prospectus. For more information, including a free retirement
plan brochure or application, please call Retirement Plan Services.
Please consult your legal, tax or retirement plan specialist before
choosing a retirement plan. Your investment representative or advisor
can help you make investment decisions within your plan.
III. The third item in the section "Exchange Restrictions," found under
"May I Exchange Shares for Shares of Another Fund?", is replaced with
the following:
o Generally exchanges may only be made between identically registered
accounts, unless you send written instructions with a signature
guarantee. You may, however, exchange shares from a fund account
requiring two or more signatures into an identically registered
money fund account requiring only one signature for all
transactions. PLEASE NOTIFY US IN WRITING IF YOU DO NOT WANT THIS
OPTION TO BE AVAILABLE ON YOUR ACCOUNT. Additional procedures may
apply. Please see "Transaction Procedures and Special Requirements."
IV. In the "By Phone" section of the chart under "How Do I Sell Shares?",
(a) the first bulleted item is replaced with the following:
o If the request is $100,000 or less. Institutional accounts may
exceed $100,000 by completing a separate agreement. Call
Institutional Services to receive a copy.
(b) and the third bulleted item is deleted.
V. Under "Transaction Procedures and Special Requirements,"
(a) the section "Joint Accounts" is replaced with the following:
JOINT ACCOUNTS. For accounts with more than one registered owner, the
funds accept written instructions signed by only one owner for
transactions and account changes that could otherwise be made by phone.
For all other transactions and changes, all registered owners must sign
the instructions.
Please keep in mind that if you have previously told us that you do not
want telephone exchange or redemption privileges on your account, then
we can only accept written instructions to exchange or redeem shares if
they are signed by all registered owners on the account.
(b) the reference to $50,000 in the section "Signature Guarantees" is
replaced with $100,000.
(c) and the section "Trust Company Retirement Plan Accounts," found
under "Telephone Transactions," is deleted.
VI. In the section "Services to Help You Manage Your Account - TeleFACTS(R),"
the third bulleted item is replaced with the following:
o exchange shares (within the same class) between identically
registered Franklin Templeton Class A, B or C accounts; and
VII. In the "Useful Terms and Definitions" section, the definition of "Class
I and Class II" is replaced with the following:
CLASS A, CLASS B AND CLASS C - Each fund offers two classes of shares,
designated "Class A" and "Class C." The two classes have proportionate
interests in the fund's portfolio. They differ, however, primarily in
their sales charge structures and Rule 12b-1 plans. Certain funds in
the Franklin Templeton Funds also offer a share class designated "Class
B."
Please keep this supplement for future reference.
SHARE CLASS REDESIGNATION
EFFECTIVE JANUARY 1, 1999
Class A - Formerly Class I
Class C - Formerly Class II
SUPPLEMENT DATED JANUARY 1, 1999
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
DATED DECEMBER 1, 1998
The Statement of Additional Information is amended as follows:
I. As of January 1, 1999, Class I shares are designated Class A and Class
II shares are designated Class C. All references in the Statement of
Additional Information to Class I shares are replaced with Class A, and
all references to Class II shares are replaced with Class C.
II. The first sentence in the section "Additional Information on Exchanging
Shares," found under "How Do I Buy, Sell and Exchange Shares?", is
replaced with the following:
If you request the exchange of the total value of your account,
declared but unpaid income dividends and capital gain distributions
will be reinvested in the fund and exchanged into the new fund at Net
Asset Value when paid.
Please keep this supplement for future reference.
