o IFT P-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
INSTITUTIONAL FIDUCIARY TRUST
(MONEY MARKET PORTFOLIO AND FRANKLIN U.S. GOVERNMENT SECURITIES MONEY MARKET
PORTFOLIO)
DATED NOVEMBER 1, 1999
The prospectus is amended as follows:
I. 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.
II. 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 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 exchange or redemption privileges on your
account application.
Please keep this supplement for future reference.
o 149 P-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN CASH RESERVES FUND
DATED NOVEMBER 1, 1999
The prospectus is amended as follows:
I. The following is added after the "Commercial paper" paragraph 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.
II. 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 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 exchange or redemption privileges on your
account application.
Please keep this supplement for future reference.
o IFT1 SA-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN'S INSTITUTIONAL FIDUCIARY TRUST
(MONEY MARKET PORTFOLIO AND FRANKLIN U.S. GOVERNMENT SECURITIES MONEY MARKET
PORTFOLIO)
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 trustees 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 trustees will
consider appropriate action, consistent with the fund's goals and policies, if
a security becomes illiquid after purchase.
Please keep this supplement for future reference.
o 149 SA-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN CASH RESERVES 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 trustees 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 trustees will
consider appropriate action, consistent with the fund's goals and policies, if
a security becomes illiquid after purchase.
Please keep this supplement for future reference.
