o 159 *P
159 *PA1
SUPPLEMENT DATED MARCH 25, 1999
TO THE PROSPECTUSES OF
FRANKLIN INVESTMENT GRADE INCOME FUND - CLASS A
FRANKLIN INVESTMENT GRADE INCOME FUND - ADVISOR CLASS
DATED FEBRUARY 1, 1999
On March 25, 1999, Franklin Managed Trust's Board of Trustees approved a
proposal to merge the Franklin Investment Grade Income Fund into Franklin
Strategic Income Fund, subject to shareholder approval. Franklin Strategic
Series' Board of Trustees also approved the merger on behalf of Franklin
Strategic Income Fund. The investment goal of Franklin Investment Grade
Income Fund is to seek a maximum level of income consistent with prudent
exposure to risk. The primary investment goal of Franklin Strategic Income
Fund is to obtain a high level of current income, with capital appreciation
over the long term as a secondary goal. These goals are fundamental, which
means that they may not be changed without shareholder approval. The Boards
believe this proposed merger will benefit shareholders.
It is anticipated that this summer shareholders of Franklin Investment Grade
Income Fund will receive a proxy and proxy statement requesting their votes
on the merger.
Franklin Investment Grade Income Fund will be closed to new investors after
the close of business on March 25, 1999. If you are a shareholder of record
as of the close of business on March 25, 1999, you may continue to add to
your account, subject to your applicable minimum additional investment
amount, or buy additional shares through reinvestment of dividend or capital
gain distributions.
Although you may redeem your shares, please keep in mind that if you sell all
the shares in your account, your account will be closed and you will not be
allowed to buy additional shares of Franklin Investment Grade Income Fund or
to reopen your account in the fund. If you sell your shares in the fund, you
may reinvest some or all of the proceeds in most of the other Franklin
Templeton Funds within 365 days without an initial sales charge. The proceeds
must be reinvested within the same share class.
Please keep this supplement for future reference.
