SUPPLEMENT DATED DECEMBER 1, 1999
TO THE PROSPECTUSES OF
TEMPLETON VARIABLE PRODUCTS SERIES FUND (TVP) -
FRANKLIN GROWTH INVESTMENTS FUND
FRANKLIN SMALL CAP INVESTMENTS FUND
MUTUAL SHARES INVESTMENTS FUND
TEMPLETON ASSET ALLOCATION FUND
TEMPLETON BOND FUND
TEMPLETON DEVELOPING MARKETS FUND
TEMPLETON INTERNATIONAL FUND
TEMPLETON STOCK FUND
FRANKLIN STRATEGIC INCOME INVESTMENTS FUND
CLASS 1 AND CLASS 2
DATED MAY 1, 1999
AS AMENDED JULY 1, 1999
This supplement applies to the funds in the TVP Trust listed above, which may or
may not be available under your contract.
On October 21 and 22, 1999, the TVP and Franklin Templeton Variable Insurance
Products Trust (VIP) Boards of Trustees approved a proposal to eliminate the
duplication of funds of the TVP Trust and the VIP Trust, by merging the funds of
the TVP Trust into the corresponding funds of the VIP Trust (Reorganization).
The corresponding funds of the two trusts generally have the same investment
goals and very similar investment policies and strategies. Both Boards believe
that the Reorganization would benefit insurance company shareholders and their
contract owners. If approved by TVP shareholders, the Reorganization is expected
to be completed around May 1, 2000.
Based on pro forma expenses for each of the combined funds, the total operating
expenses are expected to decrease, except with respect to the TVP Templeton
Asset Allocation Fund, where total operating expenses are expected to slightly
INCREASE (0.01%). In addition, with respect to the TVP Templeton Bond Fund class
2, while 12b-1 fees are expected to increase from 0.15% to 0.25%, based on pro
forma expenses for the combined fund, the total operating expenses are expected
to slightly DECREASE.
It is anticipated that in December of 1999, TVP contract owners of record on
November 30, 1999, will receive a voting instruction card requesting their
instructions to the insurance company shareholder on the Reorganization. A proxy
statement, which explains the details of the proposal, will accompany the voting
instruction card.
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE.
