ZTIFI STKP
SUPPLEMENT DATED JANUARY 1, 1998
TO THE PROSPECTUS OF
TEMPLETON INSTITUTIONAL FUNDS, INC.
DATED MAY 1, 1997, AS AMENDED NOVEMBER 1, 1997
The prospectus is amended as follows:
I. The following is added to the footnote to the table of Annual Fund Operating
Expenses found under "Expense Summary":
The Investment Managers and FT Services have agreed in advance to reduce their
respective fees in order to limit Growth Series' total expenses to an annual
rate of 0.90% of average net assets through December 31, 1998. If this fee
reduction is insufficient to so limit Growth Series' expenses, FT Services has
agreed to make certain payments to reduce those expenses. After December 31,
1998, this agreement may end at any time upon notice to the Board. The expense
limits for the other Funds remain unchanged.
II. The following paragraph is added as the second paragraph at the beginning of
the section "How Do I Buy Shares?":
Please note that as of January 1, 1998, shares of the Fund are not available to
retirement plans through Franklin Templeton's ValuSelect(R) program. Retirement
plans in Franklin Templeton's ValuSelect program before January 1, 1998,
however, may continue to invest in the Fund.
III. The section "Minimum Investment," found under "How Do I Buy Shares?", is
replaced in its entirety with the following:
MINIMUM INVESTMENT
There is a minimum initial investment of $5 million ($25 for subsequent
investments) for all investors except the following:
(a) Defined contribution plans such as employer stock, bonus, pension or
profit sharing plans that meet the requirements for qualification under
Section 401 of the Code, including salary reduction plans qualified
under Section 401(k) of the Code, are subject to no minimum initial
investment if the number of employees is equal to or greater than 1,000
or the amount of plan assets is $10 million or more. Plans with less
than 1,000 employees or $10 million in plan assets are subject to a $1
million initial investment or an investment of $1 million over the
subsequent 13-month period in the Funds or any other funds in the
Franklin Templeton Group of Funds;
(b) Trust companies or bank trust departments investing assets held in a
fiduciary, agency, advisory, custodial or similar capacity and over
which the trust companies and bank trust departments or other plan
fiduciaries or participants, in the case of certain retirement plans,
have full or shared investment discretion are subject to a $1 million
initial investment or an investment of $1 million over the subsequent
13-month period in the Funds or any other funds in the Franklin
Templeton Group of Funds. Trust companies and bank trust departments
making such purchases may be required to register as dealers pursuant
to state law;
(c) Defined benefit plans or governments, municipalities, and tax-exempt
entities that meet the requirements for qualification under Section 501
of the Code are subject to an initial investment in the Funds of $1
million;
(d) Service agents and broker-dealers who have entered into an agreement
with Distributors may purchase shares of the Funds for clients of
associated registered investment advisors participating in fee-based
programs until May 31, 1997. After this date, additional purchases of a
Fund may be made only for clients who already own or hold shares of
that Fund.
IV. The last paragraph under "Group Purchases - Purchases by Telephone," found
under "How Do I Buy Shares?", is replaced with the following:
If the purchase is not for an existing account, identify the Fund in which the
investment is being made and send a completed Institutional Account Application
Form to Institutional Services.
