SUPPLEMENT DATED JANUARY 15, 1997
TO THE PROSPECTUS
OF THE
FRANKLIN PARTNERS FUNDS(R)
FRANKLIN TAX-ADVANTAGED INTERNATIONAL BOND FUND
FRANKLIN TAX-ADVANTAGED U.S. GOVERNMENT SECURITIES FUND
FRANKLIN TAX-ADVANTAGED HIGH YIELD SECURITIES FUND
(THE "FUNDS" OR "PARTNERS FUNDS")
DATED MAY 1, 1996
Due to changes in U.S. tax laws which take effect as to the Funds at the end
of 1997, the Managing General Partners voted yesterday to recommend that
Partners approve the liquidation of the Funds. In order to permit Non-U.S.
Partners to continue to receive income free of U.S. taxation, the liquidation
will enable Non-U.S. Partners' assets to be invested in a similar pooled
investment vehicle outside the U.S. (Among the alternatives under
consideration for Non-U.S. Partners will be three series of the Templeton
Global Strategy SICAV, each of which parallels the respective Partners Fund.)
U.S. Partners who do not exchange into other Franklin/Templeton funds prior
to the liquidation will receive the cash value of their shares at the time of
the liquidation.
New accounts, and sales of shares of the Partners Funds to U.S. investors,
have been restricted for some time. Non-U.S. investors are permitted to
establish new accounts and contribute to existing accounts. If Partners
approve the liquidation, new accounts will not be accepted after such
approval, and it is expected that additional investments in existing accounts
will no longer be accepted starting approximately thirty days before the
liquidation, which is presently expected to occur by the summer of 1997.
