SUPPLEMENT DATED JANUARY 15, 1999
TO THE PROSPECTUSES OF
TEMPLETON GLOBAL BOND FUND
TEMPLETON GLOBAL BOND FUND - ADVISOR CLASS
dated January 1, 1999
The prospectus is amended by replacing the section "Management" with the
following:
Templeton Investment Counsel, Inc. (Investment Counsel), Broward Financial
Centre, Fort Lauderdale, FL 33394-3091, through its Templeton Global Bond
Managers division, is the fund's investment manager. Together, Investment
Counsel and its affiliates manage over $222 billion in assets.
As a result of the departure of Neil S. Devlin, Executive Vice President and
Chief Investment Officer of Templeton Global Bond Managers, the fund will be
managed by a team of Templeton Global Bond Managers.
The fund pays the manager a fee for managing the fund's assets and making its
investment decisions. For the fiscal year ended August 31, 1998, the fund
paid 0.49% of its average daily net assets to the manager.
YEAR 2000 PROBLEM The fund's business operations depend on a worldwide
network of computer systems that contain date fields, including securities
trading systems, securities transfer agent operations and stock market links.
Many of the systems currently use a two digit date field to represent the
date, and unless these systems are changed or modified, they may not be able
to distinguish the Year 1900 from the Year 2000 (commonly referred to as the
Year 2000 problem). In addition, the fact that the Year 2000 is a
non-standard leap year may create difficulties for some systems.
When the Year 2000 arrives, the fund's operations could be adversely affected
if the computer systems used by the manager, its service providers and other
third parties it does business with are not Year 2000 ready. For example, the
fund's portfolio and operational areas could be impacted, including
securities trade processing, interest and dividend payments, securities
pricing, shareholder account services, reporting, custody functions and
others. The fund could experience difficulties in effecting transactions if
any of its foreign subcustodians, or if foreign broker-dealers or foreign
markets are not ready for Year 2000.
The fund's manager and its affiliated service providers are making a
concerted effort to take steps they believe are reasonably designed to
address their Year 2000 problems. Of course, the fund's ability to reduce the
effects of the Year 2000 problem is also very much dependent upon the efforts
of third parties over which the fund and its manager may have no control.
Please keep this supplement for future reference.
