SUPPLEMENT TO THE PROSPECTUS
PROSPECTUS DATED JUNE 27, 1994
(AS PREVIOUSLY SUPPLEMENTED SEPTEMBER 1, 1994,
NOVEMBER 15, 1994 AND DECEMBER 6, 1994)
Templeton Americas Government Securities Fund
* * *
PROSPECTUS DATED JANUARY 1, 1995
Templeton Income Fund
* * *
The text of the footnote to the sales charge table under "HOW TO BUY SHARES OF
THE FUND-OFFERING PRICE" is deleted and replaced with the following text:
*The following commissions will be paid by FTD to dealers who initiate and are
responsible for purchases of $1 million or more: 0.75% on sales of $1 million
but less $2 million, plus 0.60% on sales of $2 million but less than $3
million, plus 0.50% on sales of $3 million but less than $50 million, plus
0.25% on sales of $50 million but less than $100 million, plus 0.15% on sales
of $100 million or more. Dealer concession breakpoints are reset every 12
months for purposes of additional purchases.
The following paragraph is added to the section entitled "HOW TO BUY SHARES OF
THE FUND-OFFERING PRICE":
FTD, or one of its affiliates, may make payments, out of its own resources, of
up to 0.75% of the amount purchased to dealers who initiate and are responsible
for purchases made at net asset value by non-designated retirement plans, and up
to 1% of the amount purchased to dealers who initiate and are responsible for
purchases made at net asset value by certain designated retirement plans
(excluding IRA and IRA rollovers), certain trust companies and trust departments
of banks and certain retirement plans of organizations with collective
retirement plan assets of $10 million or more). Please refer to the SAI
for further information.
The following text is added to the fifth paragraph of the section entitled "HOW
TO BUY SHARES OF THE FUND-OFFERING PRICE":
Effective February 1, 1995, dealers will be paid a continuing trail fee
beginning in the 13th month after the date of the purchase, for purchases of
$1 million or more of Fund Shares that are subject to a contingent deferred
sales charge.
The second sentence of the section entitled "HOW TO BUY SHARES OF THE FUND-
CUMULATIVE QUANTITY DISCOUNT" is deleted and replaced with the following:
For this purpose, the dollar amount of the sale is added to the higher of (1)
the
value (calculated at the applicable Offering Price) or (2) the purchase price,
of the following: (a) Shares of the Fund; (b) Shares of other funds in the
Franklin Templeton Group (except Templeton Capital Accumulator Fund, Inc.,
Templeton Variable Annuity Fund, Templeton Variable Products Series Fund,
Franklin Valuemark Funds and Franklin Government Securities Trust); and (c)
other
investment products underwritten by FTD or its affiliates (although certain
investments may not have the same schedule of sales charges and/or may not be
subject to reduction in sales charges). Clauses (a), (b) and (c) above are
collectively referred to as "Franklin Templeton Investments". The cumulative
quantity discount applies to Franklin Templeton Investments owned at the time of
purchase by the purchaser, his or her spouse, and their children under age 21.
<PAGE>
The text of the section entitled "HOW TO BUY SHARES OF THE FUND-LETTER OF
INTENT" is deleted and replaced with the following:
Investors may also reduce sales charges on all investments by means of a Letter
of Intent ("LOI") which expresses the investor's intention to invest a certain
amount within a 13-month period in Shares of the Fund or any other fund in the
Franklin Templeton Group (except Templeton Capital Accumulator Fund, Inc.,
Templeton Variable Annuity Fund, Templeton Variable Products Series Fund,
Franklin Valuemark Funds and Franklin Government Securities Trust). See the
Shareholder Application. Except for certain employee benefit plans, the minimum
initial investment under an LOI is 5% of the total LOI amount. Except for
Shares purchased by certain employee benefit plans, Shares purchased with the
first 5%
of such amount will be held in escrow to secure payment of the higher sales
charge applicable to the Shares actually purchased if the full amount indicated
is not purchased, and such escrowed Shares will be involuntarily redeemed to pay
the additional sales charge, if necessary. A purchase not originally made
pursuant to an LOI may be included under a subsequent LOI executed within 90
days
of the purchase. Any redemptions made by Shareholders, other than by certain
employee benefit plans, during the 13-month period will be subtracted from the
amount of the purchases for purposes of determining whether the terms of the LOI
have been completed. For a further description of the Letter of Intent, see
Purchase, Redemption and Pricing of Shares-Letter of Intent" in the SAI.
The second and third paragraphs (the second paragraph only for Templeton
Americas Government Securities Fund) of the section entitled "HOW TO BUY
SHARES OF THE FUND-NET ASSET VALUE PURCHASES" are deleted and replaced with
the following:
Shares of the Fund may be purchased at net asset value by REGISTERED investment
advisers and/or their affiliated broker-dealers, who have entered into a
supplemental agreement with FTD, on behalf of their clients who are
participating in a comprehensive fee program (also known as a wrap fee program).
Shares of the Fund may also be purchased at net asset value by certain
designated
retirement plans, including profit sharing, pension, 401(k) and simplified
employee pension plans, subject to minimum requirements with respect to number
of employees or amount of purchase, which may be established by FTD. Currently,
those criteria require that the employer establishing the plan have 200 or more
employees or that the amount invested or to be invested during the subsequent
13-month period in the Fund or in any of the Franklin Templeton Investments
totals at least $1,000,000. Employee benefit plans not designated above or
qualified under Section 401 of the Code may be afforded the same privilege if
they meet the above requirements as well as the uniform criteria for
qualified groups
previously described under "Group Purchases", which enable FTD to realize
economies of scale in its sales efforts and sales related expenses.
Please refer to the SAI for further information.
The first paragraph of the section entitled "EXCHANGE PRIVILEGE" is deleted and
replaced with the following:
A Shareholder may exchange Shares into other funds in the Franklin Templeton
Group (except Templeton American Trust, Inc., Templeton Capital Accumulator
Fund,
Inc., Templeton Variable Annuity Fund, Templeton Variable Products Series Fund,
Franklin Valuemark Funds and Franklin Government Securities Trust). A
contingent
deferred sales charge will not be imposed on exchanges. If, however, the
exchanged Shares were subject to a contingent deferred sales charge in the
original fund purchased, and Shares are subsequently redeemed within 12 months
of the calendar month following the original purchase date, a contingent
deferred
sales charge will be imposed. The 12-month period will be tolled (or stopped)
for the period such Shares are exchanged into and held in a Franklin or
Templeton
<PAGE>
money market fund. See also "HOW TO SELL SHARES OF THE FUND - CONTINGENT
DEFERRED SALES CHARGE."
The first sentence of the section entitled "HOW TO SELL SHARES OF THE FUND-
REINSTATEMENT PRIVILEGE" is deleted and replaced with the following:
Shares of the Fund may be purchased at net asset value with the proceeds from
(i) a redemption of Shares of any fund in the Franklin Templeton Group (except
Templeton American Trust, Inc., Templeton Capital Accumulator Fund, Inc.,
Templeton Variable Annuity Fund, Templeton Variable Products Series Fund,
Franklin Valuemark Funds and Franklin Government Securities Trust) which were
purchased with an initial sales charge or assessed a contingent deferred sales
charge on redemption, or (ii) a dividend or distribution paid by any Fund in the
Franklin Templeton Group, within 120 days after the date of the redemption or
dividend or distribution. The 120 days, however, do not begin to run on
redemption proceeds placed immediately after redemption in a Franklin Bank
Certificate of Deposit ("CD") until the CD (including any rollover) matures.
The text of the section entitled "HOW TO SELL SHARES OF THE FUND-CONTINGENT
DEFERRED SALES CHARGE" is deleted and replaced with the following:
In order to recover commissions paid to dealers on qualified investments of $1
million or more, a contingent deferred sales charge of 1% applies to redemptions
of those investments within 12 months of the calendar month after their
purchase. The charge is 1% of the lesser of the value of the Shares redeemed
(exclusive of
reinvested dividends and capital gains distributions) or the total cost of such
Shares, and is retained by FTD. In determining if a charge applies, Shares not
subject to a contingent deferred sales charge are deemed to be redeemed first,
in the following order: (i) Shares representing amounts attributable to capital
appreciation of those Shares held less than 12 months; (ii) Shares purchased
with
reinvested dividends and capital gains distributions; and (iii) other Shares
held
longer than 12 months, followed by any Shares held less than 12 months, on a
"first in, first out" basis.
The contingent deferred sales charge is waived for: exchanges; distributions to
participants in Franklin Templeton Trust Company or Templeton Funds Trust
Company
retirement accounts due to death, disability or attainment of age 59 1/2; tax-
free returns of excess contributions to employee benefit plans; distributions
from employee benefit plans; redemptions through a Systematic Withdrawal Plan
established prior to February 1, 1995 and, for Systematic Withdrawal Plans
established thereafter, redemptions of up to 1% monthly of an account's net
asset
value (3% quarterly, 6% semiannually or 12% annually); and redemptions initiated
by the Fund due to a Shareholder's account falling below the minimum specified
account size.
REQUESTS FOR REDEMPTIONS FOR A SPECIFIED DOLLAR AMOUNT WILL RESULT IN ADDITIONAL
SHARES BEING REDEEMED TO COVER ANY APPLICABLE CONTINGENT DEFERRED SALES CHARGE
WHILE REQUESTS FOR REDEMPTION OF A SPECIFIC NUMBER OF SHARES WILL RESULT IN THE
APPLICABLE CONTINGENT DEFERRED SALES CHARGE BEING DEDUCTED FROM THE TOTAL DOLLAR
AMOUNT REDEEMED.
February 1, 1995 TLCDS STKR2 2/95
