oTLCAP*P1
SUPPLEMENT DATED FEBRUARY 17, 1999
TO THE PROSPECTUS OF
TEMPLETON CAPITAL ACCUMULATION PLANS
dated January 1, 1999
The prospectus is amended as follows:
I. In the section "Plan Highlights," the sixth and eighth bullet points
are replaced with the following, respectively:
Unless you terminate your Plan, you will make a total of 180 monthly
investments. Once you have made 180 investments, you may participate in
the Systematic Withdrawal Program. This Program allows you to receive
regular cash payments from your account of $50 or more monthly,
quarterly, semiannually or annually.
Upon completion of your 180 monthly investments you may continue to
make an additional 120 investments. You may not make more than 120
additional investments or make more than a total of 300 monthly
investments.
II. The charts on pages 6 and 7 titled "A Typical $100 Per Month Investment
Plan" and "Hypothetical $100 per Month Investment Plan" are replaced
with the following, respectively:
<TABLE>
<CAPTION>
A TYPICAL $100 PER MONTH INVESTMENT PLAN
AT THE END OF AT THE END OF AT THE END OF
INVESTMENT 6 MONTHS 1 YEAR 2 YEARS
AMOUNT (6 INVESTMENTS) (12 INVESTMENTS) (24 INVESTMENTS)
--------------------- --------------------- --------------------- ------------------
% OF % OF % OF % OF
TOTAL TOTAL TOTAL TOTAL
AGGREGATE INVEST- AGGREGATE INVEST- AGGREGATE INVEST- AGGREGATE INVEST-
AMOUNT MENTS AMOUNT MENTS AMOUNT MENTS AMOUNT MENTS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
180 INVESTMENTS
Total Investments... $18,000.00 100% $600 100% $1,200 100% $2,400.00 100%
Deduct:
Sales Charge..... $ 1,619.76 9% $300 50% $ 600 50% $ 672.84 28%
Net Amount Invested
Under Plan....... $16,380.24 91% $300 50% $ 600 50% $1,727.16 72%
300 INVESTMENTS
Total Investments... $30,000.00 100% $600 100% $1,200 100% $2,400.00 100%
Deduct:
Sales Charge..... $ 2,348.16 7.8% $300 50% $ 600 50% $ 672.84 28%
Net Amount Invested
Under Plan....... $27,651.84 92.2% $300 50% $ 600 50% $1,727.16 72%
</TABLE>
NOTE: After the first 12 monthly investments have been made, the Sales Charges
deducted from any subsequent monthly investment will not exceed 6.1% of your net
investment in fund shares.
<TABLE>
<CAPTION>
HYPOTHETICAL $100 PER MONTH INVESTMENT PLAN
AMOUNT OF PAYMENT AMOUNT INVESTED
SHARES
PURCHASED TOTAL
FISCAL DURING DURING THROUGH TOTAL VALUE
PERIOD FISCAL CUMULA- SALES FISCAL CUMULA- SHARES REINVEST- SHARES OF
ENDED PERIOD TIVE CHARGES(A) PERIOD TIVE PURCHASED MENT PURCHASED SHARES
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/91(b) $600 $600 $300.00 $300.00 $300.00 29.509 - 29.509 $307.49
08/31/92 1,200 1,800 336.42 863.58 1,163.58 79.279 0.661 109.449 1,198.47
08/31/93 1,200 3,000 72.84 1,127.16 2,290.74 95.976 3.367 208.792 2,872.99
08/31/94 1,200 4,200 72.84 1,127.16 3,417.90 75.063 4.932 288.787 4,681.25
08/31/95 1,200 5,400 72.84 1,127.16 4,545.06 67.517 15.261 371.565 5,922.76
08/31/96(c) 1,200 6,600 72.84 1,127.16 5,672.22 97.452 8.606 892.286 8,101.95
08/31/97 1,200 7,800 72.84 1,127.16 6,799.38 111.852 31.753 1,035.891 11,363.73
08/31/98 1,200 9,000 72.84 1,127.16 7,926.54 101.874 45.145 1,182.910 11,462.40
</TABLE>
(a) Under the terms of this plan, out of a monthly investment of $100.00 made
during the first year, $50.00 is deducted as a sales charge.
(b) Period from March 29, 1991 (commencement of operations) through August 31,
1991.
(c) Includes the effect of a 2 for 1 split of fund shares on March 27, 1996.
III. In the section "Making Investments Ahead of Schedule" found under
"Services to Help You Manage Your Plan," the first paragraph is
replaced with the following: Your Plan calls for 180 monthly
investments. You may complete your Plan ahead of schedule by making
investments before their due date, but you may not make more than 24
monthly investments in one calendar year. In addition, you may prepay
up to 24 monthly investments at any time during the life of your Plan.
Monthly investments may be accrued and paid in a lump sum. You pay the
same Sales Charge whether or not you make monthly investments in
advance.
IV. In the section "Systematic Withdrawal Plan" found under "Services to
Help You Manage Your Plan," the first paragraph is replaced with the
following:
When you complete your 180 investments, you may make regular cash
withdrawals under our Systematic Withdrawal Program. Under this
program, we will redeem enough of your Plan shares to provide regular
cash payments to you of $50 or more on a monthly, quarterly, semiannual
or annual basis. To participate in the program, the value of your
account must be at least $5,000. There are no charges for withdrawals
under our Systematic Withdrawal Program. Except for the $50 minimum,
there is no limit on the size of your withdrawals. You may change the
amount of your cash withdrawal or discontinue it at any time. Please
call the TCAP Dedicated Service Group at 1-888-881-TCAP for information
on how to establish a Systematic Withdrawal Program.
Please keep this supplement for future reference.
