o133 STK SAI 1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN ASSET ALLOCATION FUND
DATED MAY 1, 1998
The Statement of Additional Information is amended as follows:
I. The following replaces the performance figures in the applicable sections
under "How Does the Fund Measure Performance?" The figures below have been
restated to reflect the fund's current, maximum 5.75% initial sales charge.
TOTAL RETURN
The fund's average annual total return for the one-, five- and ten-year periods
ended December 31, 1997, was 8.58%, 13.08% and 12.30%, respectively.
The fund's cumulative total return for the one-, five- and ten-year periods
ended December 31, 1997, was 8.58%, 84.94% and 218.95%, respectively.
YIELD
The fund's yield for the 30-day period ended December 31, 1997, was 1.83%.
CURRENT DISTRIBUTION RATE
The fund's current distribution rate for the 30-day period ended December 31,
1997, was 1.55%.
II. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
Offering Price - The public offering price is based on the Net Asset Value per
share and includes the front-end sales charge. The maximum front-end sales
charge is 5.75%.
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Please keep this supplement for future reference.
