o 103 P-4
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
DATED JANUARY 1, 2000
The prospectus is amended as follows:
I. All references to Franklin Templeton Trust Company in this prospectus are
replaced with Franklin Templeton Bank & Trust.
II. On February 25, 2000, the board of directors of Templeton Global Smaller
Companies Fund, Inc. approved an increase in the capitalization level for a
smaller company to $2 billion effective as of June 1, 2000.
The "Smaller Companies" section on page 2 is replaced with the following:
Smaller companies generally are those with market capitalizations that would
place them in the lowest 20% size class of companies whose equity securities
are listed on a U.S. securities exchange or traded on the National
Association of Securities Dealers Automated Quotations (NASDAQ) system. The
fund will invest 75% of its assets in these companies. In connection with
this 75% strategy, the fund's board of directors has adopted an operating
policy, which may be changed without shareholder approval, that the fund will
not buy securities of companies with market capitalizations of more than $2
billion. Because the fund may apply the U.S. size standard on a global basis,
in some emerging markets the fund may invest in companies that qualify as
small cap but still are among the largest in that market.
III. The "Management" section on page 11 is replaced with the following:
[INSERT GRAPHIC OF BRIEFCASE] Management
Templeton Investment Counsel, Inc. (Investment Counsel), 500 East Broward Blvd.,
Ft. Lauderdale, FL 33394-3091, is the fund's investment manager. Together,
Investment Counsel and its affiliates manage over $233 billion in assets.
The team responsible for the fund's management is:
SIMON RUDOLPH, SENIOR VICE PRESIDENT OF INVESTMENT COUNSEL
Mr. Rudoph has been a manager of the Fund since 1997, when he joined the
Franklin Templeton Group in 1997. Previously, he was an executive director with
Morgan Stanley.
TUCKER SCOTT CFA, VICE PRESIDENT OF INVESTMENT COUNSEL
Mr. Scott has been a manager of the fund since 1999. He joined the Franklin
Templeton Group in 1996. Previously, he worked for Aeltus Investment Management.
The fund pays Investment Counsel a fee for managing the fund's assets. For the
fiscal year ended August 31, 1999, the fund paid 0.75% of its average daily net
assets to the manager for its services.
IV. The section "Minimum investments" on page 21 is replaced with the following:
<TABLE>
<CAPTION>
MINIMUM INVESTMENTS
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INITIAL ADDITIONAL
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<S> <C> <C>
Regular accounts $1,000 $50
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Automatic investment plans $50 ($25 for an $50 ($25 for an
Education IRA) Education IRA)
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UGMA/UTMA accounts $100 $50
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Retirement accounts
(other than IRAs, IRA rollovers, Education IRAs or Roth IRAs) no minimum no minimum
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IRAs, IRA rollovers, Education IRAs or Roth IRAs $250 $50
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Broker-dealer sponsored wrap account programs $250 $50
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Full-time employees, officers, trustees and directors of
Franklin Templeton entities, and their immediate family members $100 $50
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</TABLE>
PLEASE NOTE THAT YOU MAY ONLY BUY SHARES OF A FUND ELIGIBLE FOR SALE
IN YOUR STATE OR JURISDICTION.
V. The section "Account Application" on page 22 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. Make sure you indicate the share class you
have chosen. If you do not indicate a class, we will place your purchase in
Class A shares. To save time, you can sign up now for services you may want on
your account by completing the appropriate sections of the application (see
"Investor Services" on page 23). For example, if you would like to link one of
your bank accounts to your Fund account so that you may use electronic fund
transfers to and from your bank account to buy and sell shares, please
complete the bank information section of the application. We will keep your
bank information on file for future purchases and redemptions.
VI. Effective July 3, 2000, the following is added to the section "Buying
shares" on page 22:
<TABLE>
<CAPTION>
<S> <C> <C>
[INSERT GRAPHIC OF PHONE] If you have another Franklin Templeton Before requesting a telephone purchase,
account with your bank account please make sure we have your bank account
By Phone information on file, you may open a new information on file. If we do not have this
(Up to $100,000 per day) account by phone. The accounts must be information, you will need to send written
1-800/632-2301 identically registered. instructions with your bank's name and
address, a voided check or savings account
To make a same day investment, please deposit slip, and a signature guarantee if
call us by 1:00 p.m. Pacific time or the the ownership of the bank and fund accounts
close of the New York Stock Exchange, is different.
whichever is earlier.
To make a same day investment, please call us
by 1:00 p.m. Pacific time or the close of the
New York Stock Exchange, whichever is earlier.
</TABLE>
VII. The section "Automatic Investment Plan" on page 23 is replaced with the
following:
AUTOMATIC INVESTMENT PLAN This plan offers a convenient way for you to invest
in the Fund by automatically transferring money from your checking or savings
account each month to buy shares. To sign up, complete the appropriate section
of your account application and mail it to Investor Services. If you are
opening a new account, please include the minimum initial investment of $50
($25 for an Education IRA) with your application.
VIII. The following section is added to "Investor Services" on page 23:
AUTOMATIC PAYROLL DEDUCTION You may invest in the fund automatically by
transferring money from your paycheck to the fund by electronic funds
transfer. If you are interested, indicate on your application that you would
like to receive an Automatic Payroll Deduction Program kit.
IX. The section "Telephone Privileges" on page 23 is replaced with the
following:
TELEPHONE PRIVILEGES You will automatically receive telephone privileges when
you open your account, allowing you and your investment representative to buy,
sell or exchange your shares and make certain other changes to your account by
phone. For accounts with more than one registered owner, telephone privileges
also allow the Fund to accept written instructions signed by only one owner
for transactions and account changes that could otherwise be made by phone.
For all other transactions and changes, all registered owners must sign the
instructions. In addition, our telephone exchange privilege allows you to
exchange shares by phone from a fund account requiring two or more signatures
into an identically registered money fund account requiring only one signature
for all transactions. This type of telephone exchange is available as long as
you have telephone exchange privileges on your account. As long as we take
certain measures to verify telephone requests, we will not be responsible for
any losses that may occur from unauthorized requests. Of course, you can
decline telephone purchase, exchange or redemption privileges on your account
application.
X. The following paragraph is added to the section "Dealer compensation" on page
30:
MARKET TIMERS. Please note that for Class A NAV purchases by market timers,
including purchases of $1 million or more, dealers are not eligible to receive
the dealer commission. Dealers, however, may be eligible to receive the 12b-1
fee from the date of purchase. If a dealer commission is paid on a Class A NAV
purchase that we later determine was made by a market timer, all commissions
paid in connection with that purchase during the last twelve months must be
returned.
Please keep this supplement for future reference.
