103 STKP
410 STKP
SUPPLEMENT DATED APRIL 21, 1998
TO THE PROSPECTUSES OF
Templeton Global Smaller Companies Fund
Templeton Global Real Estate Fund
dated January 1, 1998
The prospectus is amended as follows:
I. The following paragraph is added to the end of the section "Group Purchases -
Class I Only" found under "How Do I Buy Shares? - Sales Charge Reductions and
Waivers":
A qualified group does not include a 403(b) plan that only allows salary
deferral contributions. 403(b) plans that only allow salary deferral
contributions and that purchased Class I shares of the Fund at a reduced sales
charge under the group purchase privilege before February 1, 1998, however,
may continue to do so.
II. The section "Retirement Plans," found under "How Do I Buy Shares? - Sales
Charge Reductions and Waivers," is replaced in its entirety with the following:
Retirement Plans. Retirement plans that (i) are sponsored by an employer with
at least 100 employees, or (ii) have plan assets of $1 million or more, or
(iii) agree to invest at least $500,000 in the Franklin Templeton Funds over a
13 month period may buy Class I shares without a front-end sales charge.
Retirement plans that are not Qualified Retirement Plans, SIMPLEs or SEPs must
also meet the requirements described under "Group Purchases - Class I Only"
above to be able to buy Class I shares without a front-end sales charge. We
may enter into a special arrangement with a Securities Dealer, based on
criteria established by the Fund, to add together certain small Qualified
Retirement Plan accounts for the purpose of meeting these requirements. For
retirement plan accounts opened on or after May 1, 1997, a Contingent Deferred
Sales Charge may apply if the retirement plan is transferred out of the
Franklin Templeton Funds or terminated within 365 days of the retirement plan
account's initial purchase in the Franklin Templeton Funds. Please see "How Do
I Sell Shares? - Contingent Deferred Sales Charge" for details. Any retirement
plan that does not meet the requirements to buy Class I shares without a
front-end sales charge and that was a shareholder of the Fund on or before
February 1, 1995, may buy shares of the Fund subject to a maximum sales charge
of 4% of the Offering Price, 3.2% of which will be retained by Securities
Dealers.
III. The following replaces the second paragraph under "How Do I Sell Shares? -
Contingent Deferred Sales Charge": Certain retirement plan accounts opened on or
after May 1, 1997, and that qualify to buy Class I shares without a front-end
sales charge may also be subject to a Contingent Deferred Sales Charge if the
retirement plan is transferred out of the Franklin Templeton Funds or terminated
within 365 days of the account's initial purchase in the Franklin Templeton
Funds.
IV. The following definitions are revised or added, as applicable, to the
"Useful Terms and Definitions" section: Contingency Period - For Class I shares,
the 12 month period during which a Contingent Deferred Sales Charge may apply.
For Class II shares, the contingency period is 18 months. The holding period
begins on the day you buy your shares. For example, if you buy shares on the
18th of the month, they will age one month on the 18th day of the next month and
each following month. SIMPLE (Savings Incentive Match Plan for Employees) - An
employer sponsored salary deferral plan established under section 408(p) of the
Code.
