o FIST2 *P1
SUPPLEMENT DATED DECEMBER 15, 1998
TO THE PROSPECTUS OF
FRANKLIN INVESTORS SECURITIES TRUST
(FIST2 - Franklin Adjustable U.S. Government Securities Fund and
Franklin Adjustable Rate Securities Fund)
dated March 1, 1998
On December 15, 1998, Franklin Investors Securities Trust's Board of Trustees
approved a proposal to merge the Adjustable Rate Securities Fund into the
Adjustable U.S. Government Fund, subject to shareholder approval. The
investment objective of both the Adjustable Rate Securities Fund and the
Adjustable U.S. Government Fund is to seek a high level of current income,
consistent with lower volatility of principal. The Board believes this
proposed merger will benefit shareholders.
It is anticipated that in early 1999 shareholders of the Adjustable Rate
Securities Fund will receive a proxy and proxy statement requesting their
votes on the proposed merger.
The Adjustable Rate Securities Fund will be closed to new investors after the
close of business on December 15, 1998. If you are a shareholder of record as
of the close of business on December 15, 1998, 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 the Adjustable Rate Securities Fund or to
reopen your account in that Fund.
Please keep this supplement for future reference.
