SUPPLEMENT TO THE PROSPECTUS
PROSPECTUS DATED JANUARY 1, 1995
TEMPLETON MONEY FUND
* * *
The following text is added to the second paragraph of the section entitled "HOW
TO BUY SHARES OF THE FUND":
Instruments drawn on other investment companies may not be accepted.
The following text is added to the section entitled "HOW TO BUY SHARES OF THE
FUND-DEALER COMPENSATION":
Effective February 1, 1995, for Shares acquired from an exchange into the Fund
of Shares of another of the Franklin Templeton Funds which would have assessed
a contingent deferred sales charge upon redemption, dealers will be paid a
continuing trail fee beginning in the 13th month after the date of the original
purchase of the exchanged Shares.
The first sentence 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).
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The following text is added to the section entitled "EXCHANGE PRIVILEGE":
EXCHANGES BY TIMING ACCOUNTS. In the case of market timing or allocation
services ("Timing Accounts"), FTD will deduct an administrative service fee of
$5.00 per exchange. Timing Accounts generally include accounts administered so
as to redeem or purchase Shares based upon certain predetermined market
indicators. In accordance with the terms of their respective prospectuses,
certain funds in the Franklin Templeton Group do not accept or may place
differing limitations than those described below on exchanges by Timing
Accounts.
The Fund reserves the right to temporarily or permanently terminate the exchange
privilege or reject any specific purchase order for any Timing Account or any
person whose transactions seem to follow a timing pattern who: (i) makes an
exchange request out of the Fund within two weeks of an earlier exchange request
out of the Fund, or (ii) makes more than two exchanges out of the Fund per
calendar quarter, or (iii) exchanges Shares equal in value to at least $5
million, or more than 1% of the Fund's net assets. Accounts under common
ownership or control, including accounts administered so as to redeem or
purchase Shares based upon certain predetermined market indicators, will be
aggregated for purposes of the exchange limits.
In addition, the Fund reserves the right to refuse the purchase side of exchange
requests by any Timing Account, person, or group if, in the Investment Manager's
judgement, the Fund would be unable to invest effectively in accordance with its
investment objectives and policies, or would otherwise potentially be adversely
affected. A Shareholder's exchanges may be restricted or refused if the Fund
receives or anticipates simultaneous orders affecting significant portions of
the Fund's assets. In particular, a pattern of exchanges that coincide with a
"market timing" strategy may be disruptive to the Fund and therefore may be
refused.
Finally, as indicated under "How to Buy Shares of the Fund," the Fund and FTD
reserve the right to refuse any order for the purchase of Shares.
The following text is added to the section entitled "HOW TO SELL SHARES OF THE
FUND":
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CONTINGENT DEFERRED SALES CHARGE. The Fund does not impose either an initial
sales charge or a contingent deferred sales charge. If, however, the Shares
redeemed were Shares acquired from an exchange into the Fund of Shares of
another of the Franklin Templeton Funds which would have assessed a
contingent deferred sales charge upon redemption, such charge will be made
by the Fund, as described below. The 12-month contingency period will be
tolled (or stopped) for the period such Shares are exchanged into and held
in the Fund.
In certain Franklin Templeton Funds, in order to recover commissions paid to
dealers on investments of $1 million or more, a contingent deferred sales charge
of 1% applies to certain redemptions made by those investors within 12 months of
the calendar month after such investments. The charge is 1% of the lesser of
the value of the Shares redeemed (exclusive of reinvested dividends and
capital gain 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; (ii) Shares purchased with reinvested dividends and capital
gain 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.
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 TL307 STKR 02/95
