o 103 P-6
SUPPLEMENT DATED NOVEMBER 8, 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. All references to the $5.00 exchange fee applicable to market timers are no
longer applicable.
III. 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.
IV. 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 $229 billion in assets.
Beginning November 1, 2000 under an agreement with Investment Counsel, Templeton
Asset Management Ltd. - Hong Kong branch (Asset Management Hong Kong), Two
Exchange Square, Hong Kong, is the fund's sub-advisor. Asset Management Hong
Kong provides Investment Counsel with investment management advice and
assistance. The team responsible for the fund's management is:
SIMON RUDOLPH, SENIOR VICE PRESIDENT OF ASSET MANAGEMENT HONG KONG
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.
CINDY L. SWEETING CFA, VICE PRESIDENT OF INVESTMENT COUNSEL
Ms. Sweeting has been a manager of the fund since July 2000. She joined Franklin
Templeton Investments in 1997. Previously, she was the Vice President of
Investments with McDermott International Investments Co., Inc. in Nassau,
Bahamas.
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.
V. The section "Minimum Investments" on page 21 is replaced with the following:
MINIMUM INVESTMENTS
INITIAL ADDITIONAL
----------------------------------------------------------------------
Regular accounts $1,000 $50
----------------------------------------------------------------------
Automatic investment plans $50 ($25 for an $50 ($25 for an
Education IRA) Education IRA)
----------------------------------------------------------------------
UGMA/UTMA accounts $100 $50
----------------------------------------------------------------------
Retirement accounts
(other than IRAs, IRA rollovers,
Education IRAs or Roth IRAs) no minimum no minimum
----------------------------------------------------------------------
IRAs, IRA rollovers, Education
IRAs or Roth IRAs $250 $50
----------------------------------------------------------------------
Broker-dealer sponsored wrap
account programs $250 $50
----------------------------------------------------------------------
Full-time employees, officers,
trustees and directors of
Franklin Templeton entities, and
their immediate family members $100 $50
----------------------------------------------------------------------
PLEASE NOTE THAT YOU MAY ONLY BUY SHARES OF A FUND ELIGIBLE FOR SALE IN YOUR
STATE OR JURISDICTION.
VI. 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.
VII. The following is added to the section "Buying Shares" on page 22:
----------------------------------------------------------------------
[Insert graphic of If you have another Before requesting a
phone] Franklin Templeton telephone purchase,
BY PHONE fund account with please make sure we
(Up to $100,000 per your bank account have your bank
day) information on file, account information
1-800/632-2301 you may open a new on file. If we do not
account by phone. have this
information, you will
To make a same day need to send written
investment, please instructions with
call us by 1:00 p.m. your bank's name and
Pacific time or the address, a voided
close of the New York check or savings
Stock Exchange, account deposit slip,
whichever is earlier. and a signature
guarantee if the bank
and fund accounts do
not have at least one
common owner.
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.
----------------------------------------------------------------------
VIII. 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.
IX. 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.
X. 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.
XI. The last paragraph of the "Exchange Privilege" section on page 24 is
replaced with the following:
Because excessive trading can hurt fund performance, operations and
shareholders, the fund, effective November 1, 2000, reserves the right to
revise or terminate the exchange privilege, limit the amount or number of
exchanges, reject any exchange, or restrict or refuse purchases if (i) the
fund or its manager believes the fund would be harmed or unable to invest
effectively, or (ii) the fund receives or anticipates simultaneous orders that
may significantly affect the fund (please see "Market Timers" on page 29).
XII. In the Selling Shares table on page 27 the section "By Electronic Funds
Transfer (ACH)" is replaced with the following:
----------------------------------------------------------------------
[Insert graphic of three lightning You can call or write to have
bolts] redemption proceeds sent to a
bank account. See the policies
BY ELECTRONIC FUNDS above for selling shares by mail
TRANSFER (ACH) or phone.
Before requesting to have
redemption proceeds sent to a
bank account, please make sure
we have your bank account
information on file. If we do
not have this information, you
will need to send written
instructions with your bank's
name and address, a voided check
or savings account deposit slip,
and a signature guarantee if the
bank and fund accounts do not
have at least one common owner.
If we receive your request in
proper form by 1:00 p.m. Pacific
time, proceeds sent by ACH
generally will be available
within two to three business
days.
----------------------------------------------------------------------
XIII. The section "Market Timers" on page 29 is replaced with the following:
MARKET TIMERS The fund may restrict or refuse purchases or exchanges by Market
Timers. You may be considered a Market Timer if you have (i) requested an
exchange out of any of the Franklin Templeton funds within two weeks of an
earlier exchange request out of any fund, or (ii) exchanged shares out of any
of the Franklin Templeton funds more than twice within a rolling 90 day
period, or (iii) otherwise seem to follow a market timing pattern that may
adversely affect the fund. Accounts under common ownership or control with an
account that is covered by (i), (ii), or (iii) are also subject to these
limits.
Anyone, including the shareholder or the shareholder's agent, who is
considered to be a Market Timer by the fund, its manager or shareholder
services agent, will be issued a written notice of their status and the fund's
policies. Identified Market Timers will be required to register with the
market timing desk of Franklin Templeton Investor Services, Inc., and to place
all purchase and exchange trade requests through the desk. Some funds do not
allow investments by Market Timers.
XIV. The first category in the section "Additional Policies" on page 29 is
revised to read:
o The fund may restrict or refuse any order to buy shares, including any
purchase under the exchange privilege. XV. 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.
Please keep this supplement for future reference.
o 103 PA-5
SUPPLEMENT DATED NOVEMBER 8, 2000
TO THE PROSPECTUS OF
TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC. - ADVISOR CLASS
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. All references to the $5.00
exchange fee applicable to market timers are no longer applicable. III. On
February 25, 2000, the fund's Board of Directors 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 invests
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.
IV. The "Management" section on page 10 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 $229 billion in assets.
Beginning November 1, 2000 under an agreement with Investment Counsel, Templeton
Asset Management Ltd. - Hong Kong branch (Asset Management Hong Kong), Two
Exchange Square, Hong Kong, is the fund's sub-advisor. Asset Management Hong
Kong provides Investment Counsel with investment management advice and
assistance. The team responsible for the fund's management is:
SIMON RUDOLPH, SENIOR VICE PRESIDENT OF ASSET MANAGEMENT HONG KONG
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.
CINDY L. SWEETING CFA, VICE PRESIDENT OF INVESTMENT COUNSEL
Ms. Sweeting has been a manager of the fund since July 2000. She joined Franklin
Templeton Investments in 1997. Previously, she was the Vice President of
Investments with McDermott International Investments Co., Inc. in Nassau,
Bahamas.
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.
V. The section "Account Application" on page 16 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. 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 17). 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. The following is added to the section "Buying Shares" on page 16:
----------------------------------------------------------------------
[Insert graphic of If you have another Before requesting a
phone] Franklin Templeton telephone purchase,
BY PHONE fund account with please make sure we
(Up to $100,000 per your bank account have your bank
day) information on file, account information
1-800/632-2301 you may open a new on file. If we do not
account by phone. have this
information, you will
To make a same day need to send written
investment, please instructions with
call us by 1:00 p.m. your bank's name and
Pacific time or the address, a voided
close of the New York check or savings
Stock Exchange, account deposit slip,
whichever is earlier. and a signature
guarantee if the bank
and fund accounts do
not have at least one
common owner.
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.
----------------------------------------------------------------------
VII. The section "Automatic Investment Plan" on page 17 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 your minimum initial investment with
your application.
VIII. The following section is added to "Investor Services" on page 17:
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 17 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 last paragraph of the "Exchange Privilege" section on page 18 is replaced
with the following:
Because excessive trading can hurt fund performance, operations and
shareholders, the fund, effective November 1, 2000, reserves the right to
revise or terminate the exchange privilege, limit the amount or number of
exchanges, reject any exchange, or restrict or refuse purchases if (i) the
fund or its manager believes the fund would be harmed or unable to invest
effectively, or (ii) the fund receives or anticipates simultaneous orders that
may significantly affect the fund (please see "Market Timers" on page 22).
XI. In the Selling Shares table on page 20 the section "By Electronic Funds
Transfer (ACH)" is replaced with the following:
----------------------------------------------------------------------
[Insert graphic of three lightning You can call or write to have
bolts] redemption proceeds sent to a
bank account. See the policies
BY ELECTRONIC FUNDS above for selling shares by mail
TRANSFER (ACH) or phone.
Before requesting to have
redemption proceeds sent to a
bank account, please make sure
we have your bank account
information on file. If we do
not have this information, you
will need to send written
instructions with your bank's
name and address, a voided check
or savings account deposit slip,
and a signature guarantee if the
bank and fund accounts do not
have at least one common owner.
If we receive your request in
proper form by 1:00 p.m. Pacific
time, proceeds sent by ACH
generally will be available
within two to three business
days.
------------------------------------------------------------------------------
XII. The section "Market Timers" on page 22 is replaced with the following:
MARKET TIMERS The fund may restrict or refuse purchases or exchanges by Market
Timers. You may be considered a Market Timer if you have (i) requested an
exchange out of any of the Franklin Templeton funds within two weeks of an
earlier exchange request out of any fund, or (ii) exchanged shares out of any
of the Franklin Templeton funds more than twice within a rolling 90 day
period, or (iii) otherwise seem to follow a market timing pattern that may
adversely affect the fund. Accounts under common ownership or control with an
account that is covered by (i), (ii), or (iii) are also subject to these
limits.
Anyone, including the shareholder or the shareholder's agent, who is
considered to be a Market Timer by the fund, its manager or shareholder
services agent, will be issued a written notice of their status and the fund's
policies. Identified Market Timers will be required to register with the
market timing desk of Franklin Templeton Investor Services, Inc., and to place
all purchase and exchange trade requests through the desk. Some funds do not
allow investments by Market Timers.
XIII. The first category in the section "Additional Policies" on page 22 is
revised to read:
o The fund may restrict or refuse any order to buy shares, including any
purchase under the exchange privilege.
Please keep this supplement for future reference.
