o 403 STKPA
o 192 STKPA
o 105 STKPA
o 132 STKPA
o 103 STKPA
o 406 STKPA
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUSES OF
FRANKLIN NATURAL RESOURCES FUND - ADVISOR CLASS
FRANKLIN REAL ESTATE SECURITIES FUND - ADVISOR CLASS
dated September 1, 1997
FRANKLIN'S AGE HIGH INCOME FUND - ADVISOR CLASS
dated October 1, 1997
FRANKLIN GOLD FUND - ADVISOR CLASS
dated December 1, 1997
TEMPLETON GLOBAL SMALLER COMPANIES FUND - ADVISOR CLASS
TEMPLETON GLOBAL BOND FUND - ADVISOR CLASS
dated January 1, 1998
The prospectus is amended as follows:
I.The section "Opening Your Account," found under "How Do I Buy Shares?", is
replaced in its entirety with the following:
Opening Your Account
Shares of the Fund may be purchased without a sales charge. Please note
that as of January 1, 1998, shares of the Fund are not available to
retirement plans through Franklin Templeton's ValuSelect(R) program.
Retirement plans in Franklin Templeton's ValuSelect program before January
1, 1998, however, may continue to invest in the Fund.
To open your account, please follow the steps below. This will help avoid
any delays in processing your request.
1. Read this prospectus carefully.
2. Determine how much you would like to invest. The Fund's minimum
investments are:
/bullet/ To open your account: $5,000,000
/bullet/ To add to your account: $ 25
We reserve the right to change the amount of these minimums from time to
time or to waive or lower these minimums for certain purchases. Please see
"Minimum Investments" below. We also reserve the right to refuse any order
to buy shares.
3. Carefully complete and sign the enclosed shareholder application,
including the optional shareholder privileges section. By applying for
privileges now, you can avoid the delay and inconvenience of having to send
an additional application to add privileges later. It is important that we
receive a signed application since we will not be able to process any
redemptions from your account until we receive your signed application.
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 shareholder 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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Minimum Investments
To determine if you meet the minimum initial investment requirement of $5
million, the amount of your current purchase is added to the cost or current
value, whichever is higher, of your existing shares in the Franklin Templeton
Funds. At least $1 million of this amount, however, must be invested in Advisor
Class or Class Z shares of any of the Franklin Templeton Funds.
The Fund may waive or lower its minimum investment requirement for certain
purchases. A lower minimum initial investment requirement applies to purchases
by:
1. Qualified registered investment advisors or certified financial planners who
have clients invested in the Franklin Mutual Series Fund Inc. on October 31,
1996, or who buy through a broker-dealer or service agent who has entered into
an agreement with Distributors, subject to a $1,000 minimum initial and $50
minimum subsequent investment requirement
2. Broker-dealers, registered investment advisors or certified financial
planners who have entered into an agreement with Distributors for clients
participating in comprehensive fee programs, subject to a $250,000 minimum
initial investment requirement or a $100,000 minimum initial investment
requirement for an individual client
3. Officers, trustees, directors and full-time employees of the Franklin
Templeton Funds or the Franklin Templeton Group and their immediate family
members, subject to a $100 minimum initial investment requirement
4. Each series of the Franklin Templeton Fund Allocator Series, subject to a
$1,000 minimum initial and subsequent investment requirement
5. Governments, municipalities, and tax-exempt entities that meet the
requirements for qualification under Section 501 of the Code, subject to a $1
million initial investment in Advisor Class or Class Z shares of any of the
Franklin Templeton Funds
No minimum initial investment requirement applies to
purchases by:
1. Accounts managed by the Franklin Templeton Group
2. The Franklin Templeton Profit Sharing 401(k) Plan
3. Defined contribution plans such as employer stock, bonus, pension or profit
sharing plans that meet the requirements for qualification under Section 401 of
the Code, including salary reduction plans qualified under Section 401(k) of the
Code, and that (i) are sponsored by an employer with at least 10,000 employees,
or (ii) have plan assets of $100 million or more
4. Trust companies and bank trust departments initially investing in the
Franklin Templeton Funds at least $1 million of assets held in a fiduciary,
agency, advisory, custodial or similar capacity and over which the trust
companies and bank trust departments or other plan fiduciaries or participants,
in the case of certain retirement plans, have full or shared investment
discretion
5. Any other investor, including a private investment vehicle such as a family
trust or foundation, who is a member of a qualified group, if the group as a
whole meets the $5 million minimum investment requirement. A qualified group is
one that:
/bullet/ Was formed at least six months ago,
/bullet/ Has a purpose other than buying Fund shares at a discount,
/bullet/ Has more than 10 members,
/bullet/ Can arrange for meetings between our representatives and group
members,
/bullet/ Agrees to include Franklin Templeton Fund sales and other
materials in publications and mailings to its members at reduced
or no cost to Distributors,
/bullet/ Agrees to arrange for payroll deduction or other bulk trans-
mission of investments to the Fund, and
/bullet/ Meets other uniform criteria that allow Distributors to achieve
cost savings in distributing shares.
II. The following new item is added under "May I Exchanges Shares for Shares of
Another Fund? - Exchange Restrictions":
/bullet/ You must meet the applicable minimum investment amount of the
fund you are exchanging into, or exchange 100% of your Fund shares
III. The section "Keeping Your Account Open," found under "Transaction
Procedures and Special Requirements," is replaced in its entirety with the
following:
Keeping Your Account Open
Due to the relatively high cost of maintaining a small account, we may close
your account if the value of your shares is less than $250, or less than $50
for employee accounts. We will only do this if the value of your account fell
below this amount because you voluntarily sold your shares and your account
has been inactive (except for the reinvestment of distributions) for at least
six months. Before we close your account, we will notify you and give you 30
days to increase the value of your account to $1,000, or $100 for employee
accounts. These minimums do not apply to IRAs, accounts managed by the
Franklin Templeton Group, the Franklin Templeton Profit Sharing 401(k) Plan,
the series of Franklin Templeton Fund Allocator Series, or certain defined
contribution plans that qualify to buy shares with no minimum initial
investment requirement.
Please keep this supplement for future reference.
