o 111 P-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN MONEY FUND
DATED NOVEMBER 1, 1999
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. The following is added after the "Commercial paper" paragraph on page 2 in
the "Principal Investments" section:
Commercial paper may also be asset backed (that is, backed by a pool of assets
representing the obligations of a number of different parties). At any time, the
fund may have a significant portion of its investments in asset backed
commercial paper.
III. The section "Minimum investments" on page 10 is replaced with the
following:
MINIMUM INVESTMENTS
- ------------------------------------------------------------------------------
INITIAL ADDITIONAL
- ------------------------------------------------------------------------------
Regular accounts $1,000 $50
- ------------------------------------------------------------------------------
Automatic investment plans $50 ($25 for $50 ($25 for
an Education an Education
IRA) IRA)
- ------------------------------------------------------------------------------
UGMA/UTMA accounts $100 $50
- ------------------------------------------------------------------------------
Retirement accounts
(other than IRAs, IRA rollovers, Education IRAs no minimum no minimum
or Roth IRAs)
- ------------------------------------------------------------------------------
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.
IV. The section "Account Application" on page 11 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 12). 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.
V. Effective July 3, 2000, the following is added to the section "Buying shares"
on page 11:
- --------------------------------------------------------------------------------
[Insert graphic of phone] If you have another Before requesting a
BY PHONE Franklin Templeton account telephone purchase,
with your bank account please make sure we have
(Up to $100,000 per day) information on file, you your bank account
1-800/632-2301 may open a new account by information on file. If
phone. The accounts must be we do not have this
identically registered. information, you will
need to send written
To make a same day instructions with your
investment, please call us bank's name and address,
by 3:00 p.m. Pacific time. a voided check or
savings account deposit
slip, and a signature
guarantee if the
ownership of the bank and
fund accounts is
different.
To make a same day
investment, please call
us by 3:00 p.m. Pacific
time.
- --------------------------------------------------------------------------------
VI. The section "Automatic Investment Plan" on page 12 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.
VII. The section "Telephone Privileges" on page 13 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.
VIII. The section "Statements and reports" on page 18 is replaced with the
following:
STATEMENTS AND REPORTS You will receive monthly account statements that show all
your account transactions during the month. You also will receive written
notification after each transaction affecting your account (except for
distributions, transactions made through automatic investment or withdrawal
programs, and shares sold by check, which will be reported on your monthly
statement). You also will receive the fund's financial reports every six months.
To reduce fund expenses, we try to identify related shareholders in a household
and send only one copy of the financial reports. If you need additional copies,
please call 1-800/DIAL BEN.
If there is a dealer or other investment representative of record on your
account, he or she also will receive copies of all notifications and statements
and other information about your account directly from the fund.
Please keep this supplement for future reference.
o 111 SA-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN MONEY FUND
DATED NOVEMBER 1, 1999
The Statement of Additional Information (SAI) is amended as follows:
I. The section "Illiquid investments" on page 4 is replaced with the following:
Notwithstanding this limitation, the fund may invest in securities that cannot
be offered to the public for sale without first being registered under the
Securities Act of 1933, as amended (1933 Act) (restricted securities), where
such investment is consistent with the fund's investment goal and the manager
determines that there is a liquid institutional or other market for such
securities. For example, restricted securities that may be freely transferred
among qualified institutional buyers pursuant to Rule 144A under the 1933 Act
and for which a liquid institutional market has developed will be considered
liquid even though such securities have not been registered pursuant to the 1933
Act.
The fund's board of directors will review the determination by the manager to
treat a restricted security as a liquid security on an ongoing basis, including,
among others, the following factors: (i) the frequency of trades and quotes for
the security; (ii) the number of dealers willing to buy or sell the security and
the number of other potential buyers; (iii) dealer undertakings to make a market
in the security; and (iv) the nature of the security and the nature of the
marketplace trades (e.g., the time needed to dispose of the security, the method
of soliciting offers, and the mechanics of transfer). To the extent the fund
invests in restricted securities that are deemed liquid, the general level of
illiquidity in the fund may be increased if qualified institutional buyers
become uninterested in buying these securities or the market for these
securities contracts. The fund's board of directors will consider appropriate
action, consistent with the fund's goals and policies, if a security becomes
illiquid after purchase.
II. The section "Systematic withdrawal plan" on page 12 is replaced with the
following:
SYSTEMATIC WITHDRAWAL PLAN Our systematic withdrawal plan allows you to sell
your shares and receive regular payments from your account on a monthly,
quarterly, semiannual or annual basis. The value of your account must be at
least $5,000 and the minimum payment amount for each withdrawal must be at least
$50. For retirement plans subject to mandatory distribution requirements, the
$50 minimum will not apply. There are no service charges for establishing or
maintaining a systematic withdrawal plan.
Each month in which a payment is scheduled, we will redeem an equivalent amount
of shares in your account on the day of the month you have indicated on your
account application or, if no day is indicated, on the 20th day of the month. If
that day falls on a weekend or holiday, we will process the redemption on the
next business day. For plans set up before June 1, 2000, we will continue to
process redemptions on the 25th day of the month (or the next business day)
unless you instruct us to change the processing date. Available processing dates
currently are the 1st, 5th, 10th, 15th, 20th and 25th days of the month. When
you sell your shares under a systematic withdrawal plan, it is a taxable
transaction.
Redeeming shares through a systematic withdrawal plan may reduce or exhaust the
shares in your account if payments exceed distributions received from the fund.
This is especially likely to occur if there is a market decline. If a withdrawal
amount exceeds the value of your account, your account will be closed and the
remaining balance in your account will be sent to you. Because the amount
withdrawn under the plan may be more than your actual yield or income, part of
the payment may be a return of your investment.
To discontinue a systematic withdrawal plan, change the amount and schedule of
withdrawal payments, or suspend one payment, we must receive instructions from
you at least three business days before a scheduled payment. The fund may
discontinue a systematic withdrawal plan by notifying you in writing and will
discontinue a systematic withdrawal plan automatically if all shares in your
account are withdrawn or if the fund receives notification of the shareholder's
death or incapacity.
III. The following paragraph is added to the section "General information" on
page 13:
There are special procedures for banks and other institutions that wish to open
multiple accounts. An institution may open a single master account by filing one
application form with the fund, signed by personnel authorized to act for the
institution. Individual sub-accounts may be opened when the master account is
opened by listing them on the application, or by providing instructions to the
fund at a later date. These sub-accounts may be registered either by name or
number. The fund's investment minimums apply to each sub-account. The fund will
send confirmation and account statements for the sub-accounts to the
institution.
Please keep this supplement for future reference.
