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SUPPLEMENT DATED MARCH 15, 1996
TO THE PROSPECTUS FOR
FRANKLIN GOVERNMENT SECURITIES TRUST
DATED MAY 1, 1995
Under the section titled "Financial Highlights," the data for the fiscal year
ended December 31, 1994 is revised to read as follows:
Year Ended
1994
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Per Share Operating Performance**
Net asset value at beginning of year.............................. $13.30
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Net investment income............................................. .8500
Net realized and unrealized gains (loss).......................... (1.3463)
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Total from investment operations............................. (.4963)
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Less distributions:
Dividends from undistributed net investment income................ (.7537)
Distributions from net capital gains.............................. --
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Total distributions.......................................... (.7537)
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Net asset value at end of year..................................... $12.05
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Total return*...................................................... (3.75)%
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Ratios/Supplemental Data
Net assets at end of year (in 000's).............................. $15,242
Ratio of expenses to average net assets**......................... .63%
Ratio of net income to average net assets......................... 6.85%
Portfolio turnover rate........................................... 13.97%
*Total Return measures the change in value of an investment over the period
indicated. It assumes reinvestment of dividends and capital gains at net asset
value.
**During the period indicated, Franklin Advisers, Inc., the investment
manager, agreed in advance to waive a portion of its management fees and
reimburse other expenses incurred by the Fund. Had such action not been taken,
the ratio of operating expenses to average net assets would have been .78%.
