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SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUS OF
FRANKLIN TEMPLETON GLOBAL TRUST
DATED MARCH 1, 1998
The prospectus is amended as follows:
I. On July 16, 1998, the Board approved a proposal to dissolve the German
Government and High Income Funds. These two Funds have been closed to new
investors since the close of business on June 30, 1998.
As of the close of business on August 7, 1998, shares of the German Government
and High Income Funds will no longer be offered for sale. Until the close of
business on August 7, 1998, you may continue to add to your existing account
subject to your applicable minimum additional investment amount or buy
additional shares through the reinvestment of dividend or capital gain
distributions. If you are an existing shareholder and you make additional
investments on or before August 7, 1998, the German Government and High Income
Funds will waive their front-end sales charge and Contingent Deferred Sales
Charge. You may also exchange your shares of the German Government and High
Income Funds for Class I shares of most Franklin Templeton Funds without a
front-end sales charge, no matter how long you have held your shares.
On August 25, 1998, the German Government and High Income Funds will liquidate
their assets, and each fund will distribute its net assets to shareholders. If
you are a German Government or High Income Fund shareholder on August 25, 1998,
we will mail you a check for the value of your account on that date.
II. The section "Expense Summary" is replaced in its entirety with the
following:
EXPENSE SUMMARY
This table is designed to help you understand the costs of investing in the
Fund. It is based on the Fund's historical expenses for the fiscal year ended
October 31, 1997. The Fund's actual expenses may vary.
GLOBAL HARD HIGH GERMAN
CURRENCY CURRENCY INCOME GOVERNMENT
FUND FUND FUND FUND
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A. SHAREHOLDER TRANSACTION EXPENSES+
Maximum Sales Charge Imposed on Purchases++
(as a percentage of Offering Price) ...... 2.25% 2.25% 3.00% 3.00%
Deferred Sales Charge+++ .............. NONE NONE NONE NONE
Exchange Fee (per transaction) ........ $5.00* $5.00* $5.00* $5.00*
B. ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management Fees ....................... 0.65% 0.65% 0.65% 0.55%
Rule 12b-1 Fees** ..................... 0.24% 0.21% 0.21% 0.19%
Other Expenses ........................ 0.21% 0.27% 0.63% 0.68%
---------------------------------
Total Fund Operating Expenses ......... 1.10% 1.13% 1.49% 1.42%
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C. EXAMPLE
Assume the Fund's annual return is 5%, operating expenses are as described
above, and you sell your shares after the number of years shown. These are the
projected expenses for each $1,000 that you invest in the Fund.
1 YEAR*** 3 YEARS 5 YEARS 10 YEARS
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Global Currency Fund ................. $33 $57 $ 82 $154
Hard Currency Fund ................... $34 $58 $ 83 $157
High Income Fund ..................... $45 $76 $109 $203
German Government Fund ............... $44 $74 $105 $195
THIS IS JUST AN EXAMPLE. IT DOES NOT REPRESENT PAST OR FUTURE EXPENSES OR
RETURNS. ACTUAL EXPENSES AND RETURNS MAY BE MORE OR LESS THAN THOSE SHOWN. The
Fund pays its operating expenses. The effects of these expenses are reflected
in its Net Asset Value or dividends and are not directly charged to your
account.
+If your transaction is processed through your Securities Dealer, you may be
charged a fee by your Securities Dealer for this service.
++There is no front-end sales charge if you invest $1 million or more.
+++A Contingent Deferred Sales Charge of 1% may apply to purchases of $1 million
or more if you sell the shares within one year. A Contingent Deferred Sales
Charge may also apply to purchases by certain retirement plans that qualify to
buy shares without a front-end sales charge. See "How Do I Sell Shares?
Contingent Deferred Sales Charge" for details.
*$5.00 fee is only for Market Timers. We process all other exchanges without a
fee.
**These fees may not exceed 0.45% for the Currency Funds and 0.25% for the
German Government Fund. The combination of front-end sales charges and Rule
12b-1 fees could cause long-term shareholders to pay more than the economic
equivalent of the maximum front-end sales charge permitted under the NASD's
rules.
***Assumes a Contingent Deferred Sales Charge will not apply.
III. The second step in the section "How Do I Buy Shares? - Opening Your
Account" is replaced with the following:
2. Determine how much you would like to invest. The Fund's minimum investments
are:
o To open a regular, non-retirement account .................... $1,000
o To open an IRA, IRA Rollover, Roth IRA, or Education IRA ..... $ 250*
o To open a custodial account for a minor (an UGMA/UTMA account) $ 100
o To open an account with an automatic investment plan ......... $ 50**
o To add to an account ......................................... $ 50***
*For all other retirement accounts, there is no minimum investment
requirement.
**$25 for an Education IRA.
***For all retirement accounts except IRAs, IRA Rollovers, Roth IRAs, or
Education IRAs, there is no minimum to add to an account.
For purchases by broker-dealers, registered investment advisors or certified
financial planners who have entered into an agreement with Distributors for
clients participating in comprehensive fee programs, the minimum initial
investment is $250. The minimum initial investment is $100 for officers,
trustees, directors and full-time employees of the Franklin Templeton Funds or
the Franklin Templeton Group, and their family members, consistent with our
then-current policies.
We reserve the right to change the amount of these minimums from time to time
or to waive or lower these minimums for certain purchases. We also reserve the
right to refuse any order to buy shares.
IV. The section "Quantity Discounts," found under "How Do I Buy Shares? - Sales
Charge Reductions and Waivers," is replaced in its entirety with the following:
Quantity Discounts. The sales charge you pay depends on the dollar amount you
invest, as shown in the table below.
TOTAL SALES CHARGE AMOUNT PAID
AS A PERCENTAGE OF TO DEALER AS A
AMOUNT OF PURCHASE OFFERING NET MOUNT PERCENTAGE OF
AT OFFERING PRICE PRICE INVESTED OFFERING PRICE
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High Income and German Government Funds
Under $50,000 ............................ 3.00% 3.09% 2.60%
$50,000 but less than $100,000 ........... 2.50% 2.56% 2.25%
$100,000 but less than $250,000 .......... 2.00% 2.04% 1.85%
$250,000 but less than $500,000 .......... 1.50% 1.52% 1.40%
$500,000 but less than $750,000 .......... 1.00% 1.01% 1.00%
$750,000 but less than $1,000,000 ........ 0.75% 0.76% 0.75%
$1,000,000 or more* ...................... None None None
Global Currency and Hard Currency Funds
Under $100,000 ........................... 2.25% 2.30% 2.00%
$100,000 but less than $250,000 .......... 1.75% 1.78% 1.50%
$250,000 but less than $500,000 .......... 1.25% 1.26% 1.00%
$500,000 but less than $1,000,000 ........ 1.00% 1.01% 0.85%
$1,000,000 or more* ...................... None None None
*If you invest $1 million or more, a Contingent Deferred Sales Charge may be
imposed on an early redemption. Please see "How Do I Sell Shares? - Contingent
Deferred Sales Charge." Please also see "Other Payments to Securities Dealers"
below for a discussion of payments Distributors may make out of its own
resources to Securities Dealers for certain purchases.
V. The following new categories 6 and 7 are added to the end of the first list
of sales charge waiver categories in the section "Sales Charge Waivers," found
under "How Do I Buy Shares? - Sales Charge Reductions and Waivers":
6. Redemption proceeds from a repurchase of shares of Franklin Floating Rate
Trust, if the shares were continuously held for at least 12 months.
If you immediately placed your redemption proceeds in a Franklin Bank CD or
a Franklin Templeton money fund, you may reinvest them as described above. The
proceeds must be reinvested within 365 days from the date the CD matures,
including any rollover, or the date you redeem your money fund shares.
7. Redemption proceeds from the sale of Class A shares of any of the Templeton
Global Strategy Funds if you are a qualified investor.
If you paid a contingent deferred sales charge when you redeemed your Class
A shares from a Templeton Global Strategy Fund, a Contingent Deferred Sales
Charge will apply to your purchase of Fund shares and a new Contingency Period
will begin. We will, however, credit your Fund account with additional shares
based on the contingent deferred sales charge you paid and the amount of the
redemption proceeds that you reinvest.
If you immediately placed your redemption proceeds in a Franklin Templeton
money fund, you may reinvest them as described above. The proceeds must be
reinvested within 365 days from the date they are redeemed from the money fund.
VI. The following new category 12 is added to the end of the second list of
sales charge waiver categories in the section "Sales Charge Waivers," found
under "How Do I Buy Shares? - Sales Charge Reductions and Waivers":
12. Qualified registered investment advisors who buy through a broker-dealer or
service agent who has entered into an agreement with Distributors
VII. The following paragraph is added at the end of the section "How Do I Buy
Shares?":
FOR INVESTORS OUTSIDE THE U.S.
The distribution of this prospectus and the offering of Fund shares may be
limited in many jurisdictions. An investor who wishes to buy shares of the Fund
should determine, or have a broker-dealer determine, the applicable laws and
regulations of the relevant jurisdiction. Investors are responsible for
compliance with tax, currency exchange or other regulations applicable to
redemption and purchase transactions in any jurisdiction to which they may be
subject. Investors should consult appropriate tax and legal advisors to obtain
information on the rules applicable to these transactions.
VIII. The first paragraph under "May I Exchange Shares for Shares of Another
Fund? - Will Sales Charges Apply to My Exchange?" is replaced with the
following:
You generally will not pay a front-end sales charge on exchanges. If you have
held your shares less than six months, however, you will pay the percentage
difference between the sales charge you previously paid and the applicable
sales charge of the new fund, if the difference is more than 0.25%. If you have
never paid a sales charge on your shares because, for example, they have always
been held in a money fund, you will pay the Fund's applicable sales charge no
matter how long you have held your shares. These charges may not apply if you
qualify to buy shares without a sales charge.
IX. The following new item is added under "May I Exchange Shares for Shares of
Another Fund? - Exchange Restrictions":
o You must meet the applicable minimum investment amount of the fund you are
exchanging into, or exchange 100% of your Fund shares.
X. The section "Keeping Your Account Open," found under "Transaction Procedures
and Special Requirements," is replaced in its entirety with the following:
KEEPING YOUR ACCOUNT OPEN
Due to the relatively high cost of maintaining a small account, we may close
your account if the value of your shares is less than $250, or less than $50
for employee accounts and custodial accounts for minors. We will only do this
if the value of your account fell below this amount because you voluntarily
sold your shares and your account has been inactive (except for the
reinvestment of distributions) for at least six months. Before we close your
account, we will notify you and give you 30 days to increase the value of your
account to $1,000, or $100 for employee accounts and custodial accounts for
minors. These minimums do not apply to IRAs and other retirement plan accounts
or to accounts managed by the Franklin Templeton Group.
XI. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share and includes the front-end sales charge. The maximum front-end sales
charge is 3.00% for the High Income and German Government Funds and 2.25% for
the Global Currency and Hard Currency Funds.
Please keep this supplement for future reference.
