TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
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 1995 is Marc S. Joseph. Mr.
Joseph is a senior vice president of TICI. He holds a BS in computer
science from William & Mary, an MBA from Harvard Business School and a JD
from Harvard Law School. Before joining the Templeton organization, Mr.
Joseph worked as management consultant with McKinsey & Company and as a
vice president with Pacific Financial Research. Mr. Joseph currently
manages several funds, leads Templeton's small cap research team and has
global research responsibilities for the building materials industry.
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.
January 16, 1997 TL103 STKR5 01/97
