FVF P-1
SUPPLEMENT DATED AUGUST 9, 1999
TO THE PROSPECTUSES DATED MAY 1, 1999
OF
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
CLASS 1 AND CLASS 2
I. EFFECTIVE NOVEMBER 15, 1999, Global Utilities Securities Fund's name will
be changed to "Franklin Global Communications Securities Fund" and the fund's
strategy will be restated to one of investing at least 65% of total assets in
equity securities of companies that are primarily engaged in providing
communications services and communications equipment. These changes will
reflect better the fund's principal investment strategy of investing
primarily in the communications industries which have come to represent over
70% of the global public utilities sector. The fund's principal risks are
those related to communications investments.
II. EFFECTIVE AS OF THE DATE OF THIS SUPPLEMENT, the prospectus information
for the Global Utilities Securities Fund is amended by:
a) Under "Principal Investments," replacing the sentence which reads "The
manager expects to invest substantially in the electricity and
telecommunications sectors." with the following:
Because telecommunications industries have increasingly come to dominate the
global utilities sector, the fund will invest substantially in
communications companies. These are companies that are involved in the
development, manufacture or sale of communications services and
communications equipment (communications companies). These may include, for
example, companies that provide
ss. local and long distance telephone services or equipment;
ss. cellular and other wireless communications, paging, and local and wide
area network services or equipment;
ss. satellite, microwave, cable and other pay television services or
equipment; and internet-related services or equipment, including internet
service providers, web hosting and web content providers and internet
portals.
b) Under "Main Risks - Utilities Industries," adding the following as the
second paragraph of the section:
Moreover, by investing substantially in the securities of communications
companies within the utilities sector, the fund carries greater risk of
adverse developments affecting these companies than a fund that invests more
broadly. The securities of communications companies may experience more
price volatility than securities of companies in other industries. For
example, communications companies are subject to significant competitive
pressures, such as new market entrants, aggressive pricing and competition
for market share and the potential for falling profit margins. These
companies also face the risks that new services, equipment or technologies
will not be accepted by consumers and businesses or will become rapidly
obsolete. These factors can affect the profitability of communications
companies and, as a result, the value of their securities. In addition, many
wireless telecommunication and internet-related companies are in the
emerging stage of development and are particularly vulnerable to the risks
of rapidly changing technologies. Prices of these companies' securities
historically have been more volatile than other securities, especially over
the short term.
c) Under "Main Risks - Utilities Industries," replacing the last sentence of
the section with the following:
Water supply company securities are often thinly traded and their markets,
less liquid, than other utility securities.
III. The section "Management" for the Small Cap Fund is amended by adding
Michael McCarthy to the portfolio manager team:
MICHAEL MCCARTHY
VICE PRESIDENT OF ADVISERS
Mr. McCarthy has been a manager of the fund since its inception in 1995. He
joined the Franklin Templeton Group in 1992.
HARTF P-1
SUPPLEMENT DATED AUGUST 9, 1999
TO THE PROSPECTUS DATED MAY 1, 1999, AS SUPPLEMENTED JULY 1, 1999
OF
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
The section "Management" for the Small Cap Fund is amended by adding Michael
McCarthy to the portfolio manager team:
MICHAEL MCCARTHY
VICE PRESIDENT OF ADVISERS
Mr. McCarthy has been a manager of the fund since its inception in 1995. He
joined the Franklin Templeton Group in 1992.
