oMS STK SAI 2
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN MUTUAL SERIES FUND INC.
DATED MAY 1, 1998
The Statement of Additional Information is amended as follows:
I. The section "Nonfundamental Policies," found under "Restrictions and
Limitations," is deleted in its entirety.
II. The following replaces the Class I performance figures under "How Do the
Funds Measure Performance? - Total Return." The figures below have been restated
to reflect the funds' current, maximum 5.75% initial sales charge.
The average annual total return for the indicated periods ended December 31,
1997, was as follows:
CLASS I 1 YEAR 5 YEARS 10 YEARS
- -----------------------------------------------------
Mutual Shares ......... 18.77% 18.54% 16.62%
Qualified ............. 17.28% 18.46% 16.61%
Beacon ................ 15.49% 17.99% 16.47%
Discovery* ............ 15.41% 21.13% N/A
European** ............ 15.69% N/A N/A
Financial Services*** . N/A N/A N/A
*Discovery commenced operations on December 31, 1992. The average annual return
from inception was 21.13%.
**European commenced operations on July 3, 1996. The average annual return from
inception was 20.65%.
***Financial Services commenced operations on August 19, 1997.
The cumulative total return for the indicated periods ended December 31, 1997,
was as follows:
CLASS I 1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------
Mutual Shares ......... 18.77% 134.04% 365.31%
Qualified ............. 17.28% 133.30% 364.93%
Beacon ................ 15.49% 128.64% 359.52%
Discovery* ............ 15.41% 160.74% N/A
European** ............ 15.69% N/A N/A
Financial Services*** . N/A N/A N/A
*Discovery commenced operations on December 31, 1992. The cumulative total
return from inception was 160.74%.
**European commenced operations on July 3, 1996. The cumulative total return
from inception was 32.39%.
***Financial Services commenced operations on August 19, 1997. The cumulative
total return from inception was 16.81%.
III. 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 5.75% for Class I and 1% for Class II.
******
Please keep this supplement for future reference.
