o189 STK SAI 1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN MICROCAP VALUE FUND
DATED MARCH 1, 1998
The Statement of Additional Information is amended as follows:
I. The following replaces the performance figures under "How Does the Fund
Measure Performance? - Total Return." The figures below have been restated to
reflect the Fund's current, maximum 5.75% initial sales charge.
The Fund's average annual total return for the one-year period ended October 31,
1997, and for the period from inception (December 12, 1995) through October 31,
1997, was 27.32% and 27.20%, respectively.
The Fund's cumulative total return for the one-year period ended October 31,
1997, and for the period from inception (December 12, 1995) through October 31,
1997, was 27.32% and 57.42%, respectively.
II. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share and includes the front-end sales charge. The maximum front-end sales
charge is 5.75%.
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Please keep this supplement for future reference.
