TEMPLETON FOREIGN FUND
SUPPLEMENT TO THE CLASS I AND CLASS II PROSPECTUS
Prospectus dated January 1, 1997
I. As of January 1, 1997 the Fund offers a third class of shares, designated
"Advisor Class" shares. This prospectus describes the Class I and Class II
shares of the Fund. Class I, Class II and Advisor Class shares differ as to
sales charges, expenses and services. Different fees and expenses will affect
performance. Advisor Class shares are described in a separate prospectus
relating only to that class. For more information concerning Advisor Class
shares, contact your investment representative or Distributors. Additional
classes and series of shares may be offered in the future.
II. The discussion under "WHO MANAGES THE FUND? - PORTFOLIO MANAGEMENT" is
amended by replacing the first paragraph with the following text:
The lead portfolio manager of the Fund since 1987 is Mark G. Holowesko.
Mr. Holowesko is president of TGAL. He holds a BA in economics from Holy
Cross College and an MBA from Babson College. He is a Chartered Financial
Analyst, Chartered Investment Counselor, and a director and founding
member of the International Society of Financial Analysts. Prior to
joining the Templeton organization, Mr. Holowesko worked with Roy West
Trust Corporation (Bahamas) Limited as an investment analyst. His duties
at Roy West included managing trust and individual accounts, as well as
equity market research worldwide. Mr. Holowesko is responsible for
coordinating equity research worldwide for TGAL and managing several
mutual funds.
III. The discussion under "HOW DO I BUY SHARES? - CUMULATIVE QUANTITY
DISCOUNTS - CLASS I ONLY" is amended by replacing it with the following text:
To determine if you may pay a reduced sales charge, the amount of your
current purchase is added to the cost or current value, whichever is
higher, of your shares in other Franklin Templeton Funds, as well as
those of your spouse, children under the age of 21 and grandchildren
under the age of 21. If you are the sole owner of a company, you may also
add any company accounts, including retirement plan accounts. Companies
with one or more retirement plans may add together the total plan assets
invested in the Franklin Templeton Funds to determine the sales charge
that applies.
IV. The description of the Fund's investment manager under "USEFUL TERMS
AND DEFINITIONS" is amended by replacing it with the following text:
TGAL - Templeton Global Advisors Limited, the Fund's investment manager,
is located in Lyford Cay, Nassau, Bahamas.
January 16, 1997 TL104 STKR5 01/97
