SUPPLEMENT DATED AUGUST 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
FRANKLIN VALUEMARK(R) FUNDS
THE SECTION "MANAGEMENT" IN THE PROSPECTUS IS AMENDED BY:
1) Restating certain Portfolios' "Management and Portfolio Administration Fees"
in the subsection "Managers" as indicated below. The Portfolio Administration
Fees for these Portfolios were inadvertently not included under "1997 Management
and Portfolio Administration Fees," but were reflected in "1997 Total Operating
Expenses." Accordingly, these portfolios' "1997 Total Operating Expenses" remain
the same as in the May 1, 1998 prospectus.
1997 MANAGEMENT 1997 TOTAL
- --------------------------------------------------------------------------------
AND PORTFOLIO OPERATING
PORTFOLIO (EXCEPT NEW PORTFOLIOS) ADMINISTRATION FEES
EXPENSES
Mutual Discovery Securities Fund .95%* 1.06%
Mutual Shares Securities Fund .75%* .80%
Templeton Global Asset Allocation Fund .80%* .94%
Templeton International Smaller Companies Fund 1.00%* 1.06%
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
2) Adding the following sentence:
Franklin Advisers, Inc. and Franklin Templeton Services, Inc. have agreed in
advance to waive or limit their Management and Fund Administration Fees and to
assume as their own expense certain expenses otherwise payable by the Global
Health Care Securities Fund and Value Securities Fund as necessary so that
through at least December 31, 1998, the total expenses of each portfolio do not
exceed 1.00% of its average net assets.
3) Replacing the discussion under "Portfolio Operations" for the Portfolios
listed with the following:
GLOBAL HEALTH CARE SECURITIES FUND
Kurt von Emster
Evan McCulloch
Rupert H. Johnson, Jr.
GLOBAL UTILITIES SECURITIES FUND
(FORMERLY UTILITY EQUITY FUND)
Sally Edwards-Haff
Ian Link
TEMPLETON GLOBAL INCOME SECURITIES FUND
Thomas J. Dickson
Neil S. Devlin
Thomas Latta
TEMPLETON INTERNATIONAL SMALLER COMPANIES FUND
Simon Rudolph
Peter A. Nori
Juan J. Benito
MUTUAL DISCOVERY SECURITIES AND
MUTUAL SHARES SECURITIES FUNDS
Michael F. Price
Peter A. Langerman
Jeffrey A. Altman
Robert L. Friedman
Raymond Garea
Lawrence N. Sondike
David E. Marcus
David J. Winters
4) Changing or adding the following to the subsection "Biographical
Information":
Jeffrey A. Altman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Altman has a Bachelor of Science degree from Tulane University. Before
October 1996, Mr. Altman was employed as a research analyst and trader for Heine
Securities Corporation, the predecessor of Franklin Mutual. He has been with the
Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds from inception.
Robert L. Friedman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Friedman has a Bachelor of Arts degree in Humanities from the Johns Hopkins
University and a Masters in Business Administration from the Wharton School,
University of Pennsylvania. Before November 1996, Mr. Friedman was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Friedman will become Chief Investment Officer of Franklin Mutual.
Raymond Garea
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Garea has a Bachelor of Science degree in Engineering from Case Institute of
Technology and a Masters in Business Administration from the University of
Michigan. Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996 and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
Peter A. Langerman
Senior Vice President and Chief Operating Officer
Franklin Mutual Advisers, Inc.
Mr. Langerman has a Bachelor of Arts degree from Yale University, a Masters in
Science from New York University Graduate School of Business and a Juris Doctor
from Stanford University Law School. Before November 1996, he was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Langerman will become Chief Executive Officer of Franklin Mutual.
Thomas Latta
Vice President of Templeton Global Bond Managers
a division of Templeton Investment Counsel, Inc.
Mr. Latta received a Bachelor of Business Administration degree from the
University of Miami (Florida). Mr. Latta is a Chartered Financial Analyst, and a
member of the Association for Investment Management and Research and the
Institute of Chartered Financial Analysts. He joined the Franklin Templeton
organization in 1991, and has managed the Templeton Global Income Securities
Fund since May 1998.
David E. Marcus
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Marcus holds a Bachelor of Science in Business Administration/Finance from
Northeastern University. Before November 1996, he was a research analyst for
Heine Securities Corporation, the predecessor of Franklin Mutual. He has been
with the Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds since March 1998.
Michael F. Price
Chief Executive Officer and President
Franklin Mutual Advisers, Inc.
Mr. Price has a Bachelor of Arts degree in Business Administration from the
University of Oklahoma. Before November 1996, Mr. Price was President and
Chairman of Heine Securities Corporation, the predecessor of Franklin Mutual. He
became Chief Executive Officer of Franklin Mutual in November 1996 and has
managed the Mutual Discovery and Mutual Shares Funds from inception. After
November 1, 1998, Mr. Price will continue as Chairman of the Board of Directors
of Franklin Mutual but will not be involved in daily portfolio management.
Lawrence N. Sondike
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Sondike has a Bachelor of Arts degree from Cornell University and a Masters
in Business Administration from New York University Graduate School of Business.
Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996, and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
David J. Winters
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Winters is a Chartered Financial Analyst and holds a Bachelor of Arts degree
in Economics from Cornell University. Before November 1996, he was a Research
Analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds since March 1998.
SUPPLEMENT DATED AUGUST 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
FRANKLIN VALUEMARK(R) FUNDS
The "Portfolio Operations" and "Biographical Information" sections under
"Management" for Mutual Discovery and Mutual Shares Funds are revised to read as
follows:
PORTFOLIO OPERATIONS
MUTUAL DISCOVERY SECURITIES FUND AND
MUTUAL SHARES SECURITIES FUND
Michael F. Price
Peter A. Langerman
Jeffrey A. Altman
Robert L. Friedman
Raymond Garea
Lawrence N. Sondike
David E. Marcus
David J. Winters
BIOGRAPHICAL INFORMATION
Jeffrey A. Altman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Altman has a Bachelor of Science degree from Tulane University. Before
October 1996, Mr. Altman was employed as a research analyst and trader for Heine
Securities Corporation, the predecessor of Franklin Mutual. He has been with the
Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds from inception.
Robert L. Friedman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Friedman has a Bachelor of Arts degree in Humanities from the John Hopkins
University and a Masters in Business Administration from the Wharton School,
University of Pennsylvania. Before November 1996, Mr. Friedman was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Friedman will become Chief Investment Officer of Franklin Mutual.
Raymond Garea
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Garea has a Bachelor of Science degree in Engineering from Case Institute of
Technology and a Masters in Business Administration from the University of
Michigan. Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996 and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
Peter A. Langerman
Senior Vice President and Chief Operating Officer
Franklin Mutual Advisers, Inc.
Mr. Langerman has a Bachelor of Arts degree from Yale University, a Masters in
Science from New York University Graduate School of Business and a Juris Doctor
from Stanford University Law School. Before November 1996, he was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Langerman will become Chief Executive Officer of Franklin Mutual.
David E. Marcus
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Marcus holds a Bachelor of Science in Business Administration/Finance from
Northeastern University. Before November 1996, he was a research analyst for
Heine Securities Corporation, the predecessor of Franklin Mutual. He has been
with the Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds since March 1998.
Michael F. Price
Chief Executive Officer and President
Franklin Mutual Advisers, Inc.
Mr. Price has a Bachelor of Arts degree in Business Administration from the
University of Oklahoma. Before November 1996, Mr. Price was President and
Chairman of Heine Securities Corporation, the predecessor of Franklin Mutual. He
became Chief Executive Officer of Franklin Mutual in November 1996 and has
managed the Mutual Discovery and Mutual Shares Funds from inception. After
November 1, 1998, Mr. Price will continue as Chairman of the Board of Directors
of Franklin Mutual but will not be involved in daily portfolio management.
Lawrence N. Sondike
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Sondike has a Bachelor of Arts degree from Cornell University and a Masters
in Business Administration from New York University Graduate School of Business.
Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996, and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
David J. Winters
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Winters is a Chartered Financial Analyst and holds a Bachelor of Arts degree
in Economics from Cornell University. Before November 1996, he was a Research
Analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds since March 1998.
SUPPLEMENT DATED AUGUST 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
FRANKLIN VALUEMARK FUNDS
THE SECTION "MANAGEMENT" IN THE PROSPECTUS IS AMENDED BY:
1) Restating certain Portfolios' "Management and Portfolio Administration Fees"
in the subsection "Managers" as indicated below. The Portfolio Administration
Fees for these Portfolios were inadvertently not included under "1997 Management
and Portfolio Administration Fees," but were reflected in "1997 Total Operating
Expenses." Accordingly, these portfolios' "1997 Total Operating Expenses" remain
the same as in the May 1, 1998 prospectus.
1997 MANAGEMENT 1997 TOTAL
- --------------------------------------------------------------------------------
AND PORTFOLIO OPERATING
PORTFOLIO (EXCEPT NEW PORTFOLIOS) ADMINISTRATION FEES EXPENSES
- --------------------------------------------------------------------------------
Mutual Discovery Securities Fund ..................... .95%* 1.06%
Mutual Shares Securities Fund ........................ .75%* .80%
Templeton Global Asset Allocation Fund ............... .80%* .94%
Templeton International Smaller Companies Fund ....... 1.00%* 1.06%
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
2) Adding the following sentence:
Franklin Advisers, Inc. and Franklin Templeton Services, Inc. have agreed in
advance to waive or limit their Management and Fund Administration Fees and to
assume as their own expense certain expenses otherwise payable by the Value
Securities Fund as necessary so that through at least December 31, 1998, the
total expenses do not exceed 1.00% of its average net assets.
3) Replacing the discussion under "Portfolio Operations" for the Portfolios
listed with the following:
GLOBAL UTILITIES SECURITIES FUND
(FORMERLY UTILITY EQUITY FUND)
Sally Edwards-Haff
Ian Link
TEMPLETON INTERNATIONAL SMALLER COMPANIES FUND
Simon Rudolph
Peter A. Nori
Juan J. Benito
MUTUAL DISCOVERY SECURITIES AND
MUTUAL SHARES SECURITIES FUNDS
Michael F. Price
Peter A. Langerman
Jeffrey A. Altman
Robert L. Friedman
Raymond Garea
Lawrence N. Sondike
David E. Marcus
David J. Winters
4) Revising the subsection "Biographical Information" for the following
individuals:
Jeffrey A. Altman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Altman has a Bachelor of Science degree from Tulane University. Before
October 1996, Mr. Altman was employed as a research analyst and trader for Heine
Securities Corporation, the predecessor of Franklin Mutual. He has been with the
Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds from inception.
Robert L. Friedman
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Friedman has a Bachelor of Arts degree in Humanities from the John Hopkins
University and a Masters in Business Administration from the Wharton School,
University of Pennsylvania. Before November 1996, Mr. Friedman was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Friedman will become Chief Investment Officer of Franklin Mutual.
Raymond Garea
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Garea has a Bachelor of Science degree in Engineering from Case Institute of
Technology and a Masters in Business Administration from the University of
Michigan. Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996 and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
Peter A. Langerman
Senior Vice President and Chief Operating Officer
Franklin Mutual Advisers, Inc.
Mr. Langerman has a Bachelor of Arts degree from Yale University, a Masters in
Science from New York University Graduate School of Business and a Juris Doctor
from Stanford University Law School. Before November 1996, he was a research
analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds from inception. On November 1,
1998, Mr. Langerman will become Chief Executive Officer of Franklin Mutual.
David E. Marcus
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Marcus holds a Bachelor of Science in Business Administration/Finance from
Northeastern University. Before November 1996, he was a research analyst for
Heine Securities Corporation, the predecessor of Franklin Mutual. He has been
with the Franklin Templeton Group since November 1996 and has managed the Mutual
Discovery and Mutual Shares Funds since March 1998.
Michael F. Price
Chief Executive Officer and President
Franklin Mutual Advisers, Inc.
Mr. Price has a Bachelor of Arts degree in Business Administration from the
University of Oklahoma. Before November 1996, Mr. Price was President and
Chairman of Heine Securities Corporation, the predecessor of Franklin Mutual. He
became Chief Executive Officer of Franklin Mutual in November 1996 and has
managed the Mutual Discovery and Mutual Shares Funds from inception. After
November 1, 1998, Mr. Price will continue as Chairman of the Board of Directors
of Franklin Mutual but will not be involved in daily portfolio management.
Lawrence N. Sondike
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Sondike has a Bachelor of Arts degree from Cornell University and a Masters
in Business Administration from New York University Graduate School of Business.
Before November 1996, he was a research analyst for Heine Securities
Corporation, the predecessor of Franklin Mutual. He has been with the Franklin
Templeton Group since November 1996, and has managed the Mutual Discovery and
Mutual Shares Funds from inception.
David J. Winters
Senior Vice President
Franklin Mutual Advisers, Inc.
Mr. Winters is a Chartered Financial Analyst and holds a Bachelor of Arts degree
in Economics from Cornell University. Before November 1996, he was a Research
Analyst for Heine Securities Corporation, the predecessor of Franklin Mutual. He
has been with the Franklin Templeton Group since November 1996 and has managed
the Mutual Discovery and Mutual Shares Funds since March 1998.
