SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 1, 1997
FRANKLIN INVESTORS SECURITIES TRUST
FRANKLIN SHORT-INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
FRANKLIN CONVERTIBLE SECURITIES FUND
FRANKLIN EQUITY INCOME FUND DATED MARCH 1, 1996 AS
PREVIOUSLY SUPPLEMENTED DECEMBER 16, 1996
I. As of January 1, 1997 the Short-Intermediate Fund offers a second class of
shares, designated "Advisor Class shares." This SAI describes the Class I shares
of the Short-Intermediate Fund.
All shares of the Short-Intermediate Fund outstanding before the offering of
Advisor Class shares will retain their previous rights and privileges.
Class I and Advisor Class shares of the Short-Intermediate Fund differ as to
sales charges, expenses and services. Different fees and expenses will affect
performance. Advisor Class shares are described in a separate prospectus and SAI
relating only to that class. For more information concerning Advisor Class
shares, contact your investment representative or Distributors.
II. The discussion under "How Do I Buy and Sell Shares? - Letter of Intent" is
amended to remove the reference to Class II shares.
III. The first sentence of the discussion under "The Fund's Underwriter
Distribution Plans" is amended by replacing the heading and the first sentence
with the following text:
The Short-Intermediate Fund with respect to Class I and the Convertible and
Equity Funds with respect to Class I and II have adopted separate distribution
plans or "Rule 12b-1 plans" pursuant to Rule 12b-1 of the 1940 Act, in the case
of the Convertible and Equity Funds (the "Class I Plan" and "Class II Plan," or
"Plan(s)").
