o 020 P-3
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN FLOATING RATE TRUST
DATED DECEMBER 1, 1999
I. All references to Franklin Templeton Trust Company in this prospectus are
replaced with Franklin Templeton Bank & Trust.
II. The section "Opening Your Account" on page 40 is replaced with the
following:
To open your account, please follow the steps below. This will help avoid any
delays in processing your request. PLEASE KEEP IN MIND THAT THE FUND DOES NOT
CURRENTLY ALLOW INVESTMENTS BY MARKET TIMERS.
1. Read this prospectus carefully.
2. Determine how much you would like to invest. The fund's minimum investments
are:
o To open an account $1,000
o To open a custodial account for a minor (an UGMA/UTMA account) $ 100
o To open an account with an automatic investment plan ($25 for an
Education IRA) $ 50
o To add to an account $ 50
We reserve the right to change the amount of these minimums for certain
purchases. We also reserve the right to refuse any order to buy Common Shares.
3. Carefully complete and sign the enclosed account application, including the
optional shareholder privileges section. 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 "Services to Help You Manage Your Account" on page 61). 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.
4. Make your investment using the table below.
METHOD STEPS TO FOLLOW
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BY MAIL For an initial investment:
Return the application to the fund with your check made payable
to the fund.
For additional investments:
Send a check made payable to the fund. Please include your
account number on the check.
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BY WIRE 1. Call Shareholder Services or, if that number is busy,
call 1-650/312-2000 collect, to receive a wire control number and
wire instructions. You need a new wire control number every time
you wire money into your account. If you do not have a currently
effective wire control number, we will return the money to the
bank, and we will not credit the purchase to your account.
2. For an initial investment you must also return your signed
application to the fund.
IMPORTANT DEADLINES: If we receive your call before 1:00 p.m.
Pacific time and the bank receives the wired funds and reports the
receipt of wired funds to the fund by 3:00 p.m. Pacific time, we
will credit the purchase to your account that day. If we receive
your call after 1:00 p.m. or the bank receives the wire after 3:00
p.m., we will credit the purchase to your account the following
business day.
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THROUGH
YOUR DEALER Call your investment representative
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Effective July 3, 2000, the following is added to the section above:
Opening an account Adding to an account
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BY PHONE If you have another Before requesting a
Franklin Templeton telephone purchase,
(Up to $100,000 account with your bank please make sure we have
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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III. The first sentence of the fourth paragraph of the section "Exchanges" on
page 51 is replaced with the following:
You may request an exchange over the phone (1-800-632-2301) provided that you do
not hold share certificates for the Common Shares or other Franklin Templeton
Fund shares you want to exchange. If your shares are held in street or nominee
name, please contact your Securities Dealer to request an exchange by telephone.
Otherwise, appropriate written instructions, signed by all registered owners,
must accompany your exchange request.
IV. The last paragraph of the section "Written Instructions" on page 59 is
replaced with the following:
TENDER OFFERS-TELEPHONE INSTRUCTIONS
Generally, in a Tender Offer, requests to tender Common Shares with a value of
$100,000 or less can be made over the phone (1-800-632-2301) provided that you
do not hold share certificates and you have not changed your address by phone
within the last 15 days. You may not tender over the phone more than $100,000 in
Common Shares during any single Tender Offer period. If your shares are held in
street or nominee name, please contact your Securities Dealer to tender your
Common Shares by telephone. Otherwise, written instructions with respect to your
tender of Common Shares in a Tender Offer must be completed in the manner
described, and on the appropriate forms included, in the notification to
shareholders of the Tender Offer.
If you qualify for a waiver from the Early Withdrawal Charge, please notify our
representative when you request to tender Common Shares over the phone. If you
do not indicate that you qualify for this waiver, the fund cannot guarantee that
you will receive the waiver.
V. The section "Automatic Investment Plan" on page 61 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
Common 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.
VI. The section "Services to Help You Manage Your Account" on page 61 is amended
to add the following:
TELEPHONE PRIVILEGES
You automatically receive telephone privileges when you open your account,
allowing you, your investment representative or your Securities Dealer to buy,
sell or exchange your shares in connection with a Tender Offer 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 by
sending your written instruction stating that you decline telephone exchange or
redemption privileges to Investor Services at P.O. Box 997151, Sacramento, CA,
95899-9983.
Please keep this supplement for future reference.
