SUPPLEMENT DATED OCTOBER 24, 1995
TO THE PROSPECTUS OF
FRANKLIN NEW YORK TAX-FREE INCOME FUND
dated October 1, 1995
The following table is a substitute for the Financial Highlights table included
in the Prospectus.
Financial Highlights
Set forth below is a table containing the financial highlights for a Class I
share of the Fund for the ten fiscal years in the period ended May 31, 1995.
Information regarding Class II shares is included for the period from its
effective date (May 1, 1995) to May 31, 1995. The information for each of the
five fiscal years in the period ended May 31, 1995 has been audited by Coopers &
Lybrand L.L.P. independent auditors, whose audit report appears in the financial
statements in the Fund's Annual Report to Shareholders dated May 31, 1995. The
information for the preceding five fiscal years ended May 31, 1990, which are
also audited, are not covered by the auditors' current report. See the
discussion "Reports to Shareholders" under "General Information." Class I
Shares:
<TABLE>
<CAPTION>
Distri
Distri- butions
Net Asset Net Net Realized butions From Net Asset Net Assets Ratio of Ratio of
Year Value at Invest- & Unrealized Total From From Net realized Value at End Expenses Net Income Portfolio
Ended Beginning ment Gains (Losses)Investment Investment Capital at End Total of Year to Average to Average Turnover
May 31 of Year Income on Securities Operations Income Gains of Year Return* (in 000's) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $11.72 $0.73 $0.056 $0.786 $(0.756) -- $11.75 7.10% $4,725,056 0.57% 6.39% 40.56%
1994 12.07 0.75 (0.338) 0.412 (0.762) -- 11.72 3.18 4,609,999 0.52 6.19 25.67
1993 11.45 0.77 0.630 1.400 (0.780) -- 12.07 12.35 4,339,249 0.52 6.56 12.28
1992 10.94 0.78 0.523 1.303 (0.793) -- 11.45 12.05 3,570,851 0.51 7.01 19.37
1991 10.85 0.80 0.086 0.886 (0.796) -- 10.94 8.20 3,108,151 0.50 7.34 18.62
1990 11.05 0.80 (0.208) 0.592 (0.792) -- 10.85 5.25 2,914,840 0.50 7.30 15.47
1989 10.52 0.80 0.542 1.342 (0.812) -- 11.05 12.95 2,794,766 0.51 7.42 25.68
1988 10.73 0.80 (0.021) 0.779 (0.846) $(0.143) 10.52 7.33 2,547,062 0.51 7.57 57.94
1987 11.19 0.91 (0.265) 0.645 (0.925) (0.180) 10.73 5.19 2,558,855 0.52 7.04 33.64
1986 10.49 0.92 0.740 1.660 (0.960) -- 11.19 16.12 1,599,271 0.55 7.68 18.61
Class II Shares:
Distri-
Distri- butions Net
Net Asset Net Realized butions From Asset Net Assets Ratio of Ratio of
Period Value at Net & Unrealized Total From From Net Realized Value at End Expenses Net Income Portfolio
Ended Beginning Investment Gains Investment Investment Capital at End Total of Year to Average to Average Turnover
May 31 of Year Income on Securities Operations Income Gains of Year Return*(in 000's) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
++1995 $11.50 $0.05 $0.243 $0.293 $(0.063) -- $11.73 2.56% $1,913 1.09%+ 5.32%+ 40.56%
* Total return measures the change in value of an investment over the periods
indicated. It is not annualized. It does not include the maximum initial sales
charge or the deferred contingent sales charge. The total return for Class I
shares also assumes reinvestment of dividends at the offering price and capital
gains, if any, at net asset value. Effective May 1, 1994, with the
implementation of the Rule 12b-1 Distribution Plan for Class I shares, as
discussed in Note 5, the existing sales charge on reinvested dividends has been
eliminated.
+Annualized
++For the period May 1, 1995 (effective date) to May 31, 1995.
</TABLE>
