FRANKLIN LARGE CAP GROWTH SECURITIES FUND
CLASS 1 AND CLASS 2
(FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST)
SUPPLEMENT DATED AUGUST 25, 2000
TO PROSPECTUS DATED MAY 1, 2000
The prospectus is amended as follows:
I. Under "Goals and Strategies," the following is added to the Main
Investments discussion:
The fund may invest up to 25% of its total assets in foreign securities.
II. Under "Main Risks," the following is added after the third paragraph:
FOREIGN SECURITIES Securities of companies located outside the U.S.
involve risks that can increase losses in the fund.
CURRENCY Where the fund's investments are denominated in foreign
currencies, changes in foreign currency exchange rates will increase or
decrease the fund's returns from its foreign portfolio holdings.
Devaluations of currency by a country's government can significantly
decrease the value of securities denominated in that currency. The
economic impact of the euro, a relatively new currency adopted by certain
European countries to replace their national currencies, is unclear.
COUNTRY AND COMPANY General securities market and interest rate movements
in any country where the fund has investments are likely to affect the
value of the securities the fund owns that trade in that country. The
political, economic and social structures of some countries the fund
invests in may be less stable and more volatile than those in the U.S. The
risks of investing in these countries include the imposition of exchange
controls, foreign ownership limitations, expropriation, restrictions on
removal of currency or other assets, nationalization of assets, punitive
taxes and certain custody and settlement risks. Non-U.S. companies are not
subject to the same disclosure, accounting, auditing and financial
reporting standards and practices as U.S. companies and their securities
may not be as liquid as securities of similar U.S. companies, or may
become illiquid. Non-U.S. currency exchanges, trading systems, brokers,
and companies generally have less government supervision and regulation
than in the U.S.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR CURRENT PROSPECTUS FOR FUTURE
REFERENCE.
FLCGS 8/00
FRANKLIN S&P 500 INDEX FUND
CLASS 1, CLASS 2, AND CLASS 3
(FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST)
SUPPLEMENT DATED AUGUST 25, 2000
TO PROSPECTUS DATED MAY 1, 2000
Under "Management," the third paragraph is replaced with the following:
The fund's lead portfolio manager is:
T. Anthony Coffey, CFA Mr. Coffey has been a manager of the fund
VICE PRESIDENT since August 2000, and has been with
FRANKLIN ADVISERS, INC. Franklin Templeton Investments since 1989.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR CURRENT PROSPECTUS FOR FUTURE REFERENCE.
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SUPPLEMENT DATED AUGUST 25, 2000 TO THE STATEMENT OF
ADDITIONAL INFORMATION DATED MAY 1, 2000
The Statement of Additional Information ("SAI") is amended as follows:
I. Under "Goals and Strategies," the following replaces the foreign
securities discussion under Franklin Large Cap Growth Securities Fund:
FOREIGN SECURITIES The fund may invest up to 25% of its total assets in
foreign securities, including depositary receipts and those in emerging
markets. The fund will limit its investments in emerging markets to less
than 5% of its total assets.
II. Under "Goals and Strategies," the following replaces the first sentence
of the loans of portfolio securities discussion under Franklin Small Cap
Fund:
LOANS OF PORTFOLIO SECURITIES The fund intends to take full advantage of
its authority to lend its portfolio securities up to 20% of its total
assets in order to generate additional income.
III. Under "Goals and Strategies," the following replaces the foreign
securities discussion under Franklin Technology Securities Fund:
FOREIGN SECURITIES The fund may invest up to 35% of its total assets in
foreign securities, including depositary receipts and those in emerging
markets.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR CURRENT SAI FOR FUTURE REFERENCE.
050 8/00
