SUPPLEMENT DATED DECEMBER 30, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
TEMPLETON VARIABLE PRODUCTS SERIES FUND
I. TEMPLETON ASSET ALLOCATION FUND
a) The section "Portfolio Management - Templeton Asset Allocation Fund,"
with the exception of the first two paragraphs, is revised to read as
follows:
The following persons are primarily responsible for the day-to-day
management of the Fund's portfolio.
GARY CLEMONS, SENIOR VICE PRESIDENT, TEMPLETON INVESTMENT COUNSEL, INC.
Mr. Clemons holds a Bachelor of Science degree from the University of
Nevada at Reno and a Master of Business Administration degree from the
University of Wisconsin at Madison. He has been with the Franklin
Templeton Group since 1990 and has managed the equity portion of the
Fund's portfolio since 1995.
PETER NORI, Vice PRESIDENT, TEMPLETON INVESTMENT COUNSEL, INC.
Mr. Nori holds both a Master of Business Administration degree and a
Bachelor of Science degree with emphasis in finance from the University
of San Francisco. He is a Chartered Financial Analyst and a member of
the Association for Investment Management and Research. After
completing the Franklin management training program, Mr. Nori joined
Franklin portfolio research in 1990 as an equity analyst. In 1994, Mr.
Nori joined the Templeton organization. He has managed the equity
portion of the Fund's portfolio since 1996.
WILLIAM T. HOWARD, JR., SENIOR VICE PRESIDENT, TEMPLETON INVESTMENT
COUNSEL, INC.
Mr. Howard holds a Master of Business Administration degree from Emory
University and a Bachelor of Arts degree from Rhodes College. He is a
Chartered Financial Analyst and a member of the Financial Analysts
Society. Before joining the Templeton Group in 1993, Mr. Howard was the
international portfolio manager and analyst with the State of Tennessee
Consolidated Retirement System. He has managed the equity portion of
the Fund's portfolio since 1996.
THOMAS J. DICKSON, PORTFOLIO MANAGER, TEMPLETON GLOBAL BOND MANAGERS,
A DIVISION OF TICI
Mr. Dickson received his Bachelor of Science degree in Managerial
Economics from the University of California at Davis. Mr. Dickson
joined the Franklin Templeton Group in 1992, and has managed the fixed
income portion of the Fund's portfolio since November 1998.
NEIL S. DEVLIN, CHIEF INVESTMENT OFFICER AND EXECUTIVE VICE PRESIDENT,
TEMPLETON GLOBAL BOND MANAGERS, A DIVISION OF TICI
Mr. Devlin holds a Bachelor of Arts degree in Economics and Philosophy
from Brandeis University and is a Chartered Financial Analyst. He
joined the Franklin Templeton Group in 1987 and has managed the fixed
income portion of the Fund's portfolio since 1995.
II. TEMPLETON INTERNATIONAL FUND
a) The section "Portfolio Management - Templeton International Fund," with
the exception of the first two paragraphs, is revised to read as
follows:
The following persons are primarily responsible for the day-to-day
management of the Fund's portfolio.
PETER NORI, VICE PRESIDENT TEMPLETON INVESTMENT COUNSEL, INC.
Mr. Nori holds both a Master of Business Administration degree and a
Bachelor of Science degree with emphasis in finance from the University
of San Francisco. He is a Chartered Financial Analyst and a member of
the Association for Investment Management and Research. After
completing the Franklin management training program, Mr. Nori joined
Franklin portfolio research in 1990 as an equity analyst. In 1994, Mr.
Nori joined the Templeton organization. He has managed the Fund since
1996.
PAGE
GARY MOTYL, EXECUTIVE VICE PRESIDENT AND DIRECTOR TEMPLETON INVESTMENT
COUNSEL, INC.
Mr. Motyl holds a Bachelor of Science degree in Finance from Lehigh
University and a Master of Business Administration degree from Pace
University and is a Chartered Financial Analyst. Mr. Motyl has been a
security analyst and portfolio manager with TICI since 1981. He has
managed the Fund since 1995.
HEIDI S. ANDERSEN, VICE PRESIDENT TEMPLETON INVESTMENT COUNSEL, INC.
Ms. Andersen holds a Bachelor of Arts degree in art history from the
University of Texas in Austin, and a master of business administration
degree with emphasis in finance and international business from The
Columbia Graduate School of Business. She is a Chartered Financial
Analyst. She has managed the Fund since November 1998.
III. TEMPLETON BOND FUND
a) The section "Portfolio Management - Templeton Bond Fund," with the
exception of the first paragraph, is revised to read as follows:
The following persons are primarily responsible for the day-to-day
management of the Fund's portfolio.
THOMAS J. DICKSON, PORTFOLIO MANAGER, TEMPLETON GLOBAL BOND MANAGERS,
A DIVISION OF TICI
Mr. Dickson received his Bachelor of Science degree in Managerial
Economics from the University of California at Davis. Mr. Dickson
joined the Franklin Templeton Group in 1992, and has managed the Fund
since November 1998.
NEIL S. DEVLIN, CHIEF INVESTMENT OFFICER AND EXECUTIVE VICE PRESIDENT,
TEMPLETON GLOBAL BOND MANAGERS, A DIVISION OF TICI
Mr. Devlin holds a Bachelor of Arts degree in Economics and Philosophy
from Brandeis University and is a Chartered Financial Analyst. He
joined the Franklin Templeton Group in 1987 and has managed the Fund
since 1995.
b) The section "Risk Considerations - Templeton Bond Fund" would be amended
by adding the following:
PROPOSAL TO CHANGE DIVERSIFICATION POLICY. The Trust's Board of
Trustees has approved for shareholder consideration a change in the
Fund's classification from "diversified" to "non-diversified" under
federal securities laws. If this proposal is approved, the Fund could
concentrate its investments in a small number of issuers. This
flexibility may be important to the Fund's investment strategy since,
from time to time, the manager may find that the number of issuers of
suitable foreign debt securities is limited and may wish to invest in
foreign government securities without regard to securities law
diversification limits. The Fund would still be subject to
diversification requirements under the federal tax code and the 25%
limit on concentration of investments in a single industry.
Nevertheless, the Fund's non-diversified status may expose it to
greater risk or volatility than diversified funds with otherwise
similar investment policies, since the Fund may invest a larger portion
of its assets in securities of a small number of issuers.
Shareholders of record as of the close of business on December 31, 1998
are entitled to vote at the February 16, 1999 shareholder meeting. The
proposal would take effect on May 1, 1999 or, if the shareholder
meeting is postponed beyond that date, on the date of approval by
shareholders. Further information about this and certain other
proposals will be set forth in a proxy statement to be furnished to
shareholders within a reasonable time before the meeting date.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
