o FAS P-2
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
DATED DECEMBER 1, 1999
The prospectus is amended as follows:
I. All references to Franklin Templeton Trust Company in this prospectus are
replaced with Franklin Templeton Bank & Trust.
II. The first portion of the "Management" section on page 15, before the
subsection "Investment Advisory and Asset Allocation Agreement", is replaced
with the following:
Franklin Advisers, Inc. (Advisers), 777 Mariners Island Blvd., San Mateo, CA
94404, is each fund's investment manager. Together, Advisers and its affiliates
manage over $233 billion in assets.
The lead portfolio manager responsible for each fund's management is:
T. ANTHONY COFFEY CFA, VICE PRESIDENT OF ADVISERS
Mr. Coffey has been a manager of each fund since February 2000. He joined the
Franklin Templeton Group in 1989.
III. The section "minimum investments" on page 39 is replaced with the
following:
MINIMUM INVESTMENTS
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INITIAL ADDITIONAL
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Regular accounts $1,000 $50
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Automatic investment plans $50 ($25 for $50 ($25 for
an Education an Education
IRA) IRA)
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UGMA/UTMA accounts $100 $50
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Retirement accounts
(other than IRAs, IRA rollovers, Education IRAs no minimum no minimum
or Roth IRAs)
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IRAs, IRA rollovers, Education IRAs or Roth IRAs $250 $50
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Broker-dealer sponsored wrap account programs $250 $50
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Full-time employees, officers, trustees and
directors of
Franklin Templeton entities, and their
immediate family members $100 $50
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PLEASE NOTE THAT YOU MAY ONLY BUY SHARES OF A FUND ELIGIBLE
FOR SALE IN YOUR STATE OR JURISDICTION.
IV. The section "Account Application" on page 40 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. Make sure you indicate the share class you
have chosen. If you do not indicate a class, we will place your purchase in
Class A shares. To save time, you can sign up now for services you may want on
your account by completing the appropriate sections of the application (see
"Investor Services" on page 41). For example, if you would like to link one of
your bank accounts to your fund account so that you may use electronic fund
transfers to and from your bank account to buy and sell shares, please complete
the bank information section of the application. We will keep your bank
information on file for future purchases and redemptions.
V. Effective July 3, 2000, the following is added to the section "Buying shares"
on page 40:
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[Insert graphic of phone] If you have another Before requesting a
BY PHONE Franklin Templeton telephone purchase,
account with your bank please make sure we have
(Up to $100,000 per day) account information on your bank account
1-800/632-2301 file, you may open a new information on file. If
account by phone. The we do not have this
accounts must be information, you will
identically registered. need to send written
instructions with your
To make a same day bank's name and address,
investment, please call a voided check or
us by 1:00 p.m. Pacific savings account deposit
time or the close of the slip, and a signature
New York Stock Exchange, guarantee if the
whichever is earlier. ownership of the bank
and fund accounts is
different.
To make a same day
investment, please call
us by 1:00 p.m. Pacific
time or the close of the
New York Stock Exchange,
whichever is earlier.
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VI. The section "Automatic Investment Plan" on page 41 is replaced with the
following:
AUTOMATIC INVESTMENT PLAN This plan offers a convenient way for you to invest in
the fund by automatically transferring money from your checking or savings
account each month to buy shares. To sign up, complete the appropriate section
of your account application and mail it to Investor Services. If you are opening
a new account, please include the minimum initial investment of $50 ($25 for an
Education IRA) with your application.
VII. The section "Telephone Privileges" on page 42 is replaced with the
following:
TELEPHONE PRIVILEGES You will automatically receive telephone privileges when
you open your account, allowing you and your investment representative to buy,
sell or exchange your shares and make certain other changes to your account by
phone.
For accounts with more than one registered owner, telephone privileges also
allow the fund to 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. In addition, our telephone exchange privilege allows you to
exchange shares by phone from a fund account requiring two or more signatures
into an identically registered money fund account requiring only one signature
for all transactions. This type of telephone exchange is available as long as
you have telephone exchange privileges on your account.
As long as we take certain measures to verify telephone requests, we will not be
responsible for any losses that may occur from unauthorized requests. Of course,
you can decline telephone purchase, exchange or redemption privileges on your
account application.
VIII. The section "Statements and reports" on page 46 is replaced with the
following:
STATEMENTS AND REPORTS You will receive quarterly account statements that show
all your account transactions during the quarter. You also will receive written
notification after each transaction affecting your account (except for
distributions and transactions made through automatic investment or withdrawal
programs, which will be reported on your quarterly statement). You also will
receive the fund's financial reports every six months. To reduce fund expenses,
we try to identify related shareholders in a household and send only one copy of
the financial reports. If you need additional copies, please call 1-800/DIAL
BEN.
If there is a dealer or other investment representative of record on your
account, he or she also will receive copies of all notifications and statements
and other information about your account directly from the fund.
IX. The following paragraph is added to the section "Dealer compensation" on
page 48:
Market timers. Please note that for Class A NAV purchases by market timers,
including purchases of $1 million or more, dealers are not eligible to receive
the dealer commission. Dealers, however, may be eligible to receive the 12b-1
fee from the date of purchase. If a dealer commission is paid on a Class A NAV
purchase that we later determine was made by a market timer, all commissions
paid in connection with that purchase during the last twelve months must be
returned.
Please keep this supplement for future reference.
o FAS SA-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
(FRANKLIN TEMPLETON CONSERVATIVE TARGET, MODERATE TARGET, AND GROWTH TARGET
FUNDS)
DATED DECEMBER 1, 1999
The Statement of Additional Information (SAI) is amended as follows:
I. All references to Franklin Templeton Trust Company in this SAI are replaced
with Franklin Templeton Bank & Trust.
II. The first waiver category in the section "Waivers for certain investors" on
page 27 is revised to read:
o Trust companies and bank trust departments investing assets held in a
fiduciary, agency, advisory, custodial or similar capacity and over which the
trust companies and bank trust departments or other plan fiduciaries or
participants, in the case of certain retirement plans, have full or shared
investment discretion. We may accept orders for these accounts by telephone or
other means of electronic data transfer directly from the bank or trust
company, with payment by federal funds received by the close of business on
the next business day following the order.
III. The eighth waiver category in the section "CDSC waivers" on page 29 is
revised to read:
o Redemptions by an employee benefit plan: (i) that is a customer of Franklin
Templeton Defined Contribution Services; and/or (ii) whose assets are held by
Franklin Templeton Bank & Trust as trustee or custodian
IV. The section "Systematic withdrawal plan" on page 29 is replaced with the
following:
SYSTEMATIC WITHDRAWAL PLAN Our systematic withdrawal plan allows you to sell
your shares and receive regular payments from your account on a monthly,
quarterly, semiannual or annual basis. The value of your account must be at
least $5,000 and the minimum payment amount for each withdrawal must be at least
$50. For retirement plans subject to mandatory distribution requirements, the
$50 minimum will not apply. There are no service charges for establishing or
maintaining a systematic withdrawal plan.
Each month in which a payment is scheduled, we will redeem an equivalent amount
of shares in your account on the day of the month you have indicated on your
account application or, if no day is indicated, on the 20th day of the month. If
that day falls on a weekend or holiday, we will process the redemption on the
next business day. For plans set up before June 1, 2000, we will continue to
process redemptions on the 25th day of the month (or the next business day)
unless you instruct us to change the processing date. Available processing dates
currently are the 1st, 5th, 10th, 15th, 20th and 25th days of the month. When
you sell your shares under a systematic withdrawal plan, it is a taxable
transaction.
To avoid paying sales charges on money you plan to withdraw within a short
period of time, you may not want to set up a systematic withdrawal plan if you
plan to buy shares on a regular basis. Shares sold under the plan also may be
subject to a CDSC.
Redeeming shares through a systematic withdrawal plan may reduce or exhaust the
shares in your account if payments exceed distributions received from the fund.
This is especially likely to occur if there is a market decline. If a withdrawal
amount exceeds the value of your account, your account will be closed and the
remaining balance in your account will be sent to you. Because the amount
withdrawn under the plan may be more than your actual yield or income, part of
the payment may be a return of your investment.
To discontinue a systematic withdrawal plan, change the amount and schedule of
withdrawal payments, or suspend one payment, we must receive instructions from
you at least three business days before a scheduled payment. The fund may
discontinue a systematic withdrawal plan by notifying you in writing and will
discontinue a systematic withdrawal plan automatically if all shares in your
account are withdrawn or if the fund receives notification of the shareholder's
death or incapacity.
V. The following paragraph is added to the section "General information" on page
30:
There are special procedures for banks and other institutions that wish to open
multiple accounts. An institution may open a single master account by filing one
application form with the fund, signed by personnel authorized to act for the
institution. Individual sub-accounts may be opened when the master account is
opened by listing them on the application, or by providing instructions to the
fund at a later date. These sub-accounts may be registered either by name or
number. The fund's investment minimums apply to each sub-account. The fund will
send confirmation and account statements for the sub-accounts to the
institution.
Please keep this supplement for future reference.
