oFIST1 STK SAI 1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN INVESTORS SECURITIES TRUST
(FIST1 - GLOBAL GOVERNMENT INCOME,
SHORT-INTERMEDIATE U.S. GOVERNMENT SECURITIES,
CONVERTIBLE SECURITIES AND EQUITY INCOME FUNDS)
DATED MARCH 1, 1998
The Statement of Additional Information is amended as follows:
I. The following replaces the Class I performance figures for the Convertible
Securities and Equity Income Funds in the applicable sections under "How Does
the Fund Measure Performance?" The figures below have been restated to reflect
the Funds' current, maximum 5.75% initial sales charge.
TOTAL RETURN
The average annual total return for Class I for the one-, five- and ten-year
periods ended October 31, 1997, was 15.43%, 15.26% and 13.47%, respectively, for
the Convertible Securities Fund. The average annual total return for Class I for
the one- and five-year periods ended October 31, 1997, and for the period from
inception (March 15, 1988) through October 31, 1997, was 17.26%, 14.33% and
13.26%, respectively, for the Equity Income Fund.
The cumulative total return for Class I for the one-, five- and ten-year periods
ended October 31, 1997, was 15.43%, 103.43% and 253.91%, respectively, for the
Convertible Securities Fund. The cumulative total return for Class I for the
one-and five-year periods ended October 31, 1997, and for the period from
inception (March 15, 1988) through October 31, 1997, was 17.26%, 95.37% and
231.57%, respectively, for the Equity Income Fund.
YIELD
The yield for Class I for the 30-day period ended October 31, 1997, was 2.98%
for the Convertible Securities Fund and 3.01% for the Equity Income Fund.
CURRENT DISTRIBUTION RATE
The current distribution rate for Class I for the 30-day period ended October
31, 1997, was 3.84% for the Convertible Securities Fund and 3.05% for the Equity
Income Fund.
II. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share of the class and includes the front-end sales charge. The maximum
front-end sales charge is 4.25% for Class I of the Global Government Income
Fund, 2.25% for Class I of the Short-Intermediate U.S. Government Fund, 5.75%
for Class I of the Convertible Securities and Equity Income Funds, and 1% for
Class II of the Global Government Income, Convertible Securities, and Equity
Income Funds.
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Please keep this supplement for future reference.
