SUPPLEMENT DATED OCTOBER 1, 1998
TO THE PROSPECTUS OF
TEMPLETON CAPITAL ACCUMULATOR FUND, INC.
dated January 1, 1998
The prospectus is amended as follows:
I. The second paragraph under "What Distributions Might I Receive From the
Fund?" is replaced with the following:
Income dividends and capital gain distributions paid by the Fund, pursuant to
the terms of the Plans, are automatically reinvested on the payment date in
whole or fractional shares of the Fund at net asset value as of the ex-dividend
date. The processing date for the reinvestment of dividends may vary from time
to time, and does not affect the amount or value of the shares acquired. If you
elect, you may receive such distributions in cash so long as the account is not
a Trust Company retirement plan account. If you have the money sent to another
person or to a checking or savings account, you may need a signature guarantee.
If you send the money to a checking or savings account, please see "Electronic
Fund Transfers" under "Services to Help You Manage Your Account."
II. The second paragraph under "Services to Help You Manage Your Account -
Systematic Withdrawal Plan" is replaced with the following:
You may choose to direct your payments to buy the same class of shares of
another Franklin Templeton Fund or have the money sent directly to you, to
another person, or to a checking or savings account. Once your plan is
established, any distributions paid by the Fund will be automatically reinvested
in your account. If you choose to have the money sent to a checking or savings
account, please see "Electronic Fund Transfers" below. Once your plan is
established, any distributions paid by the Fund will be automatically reinvested
in your account.
III. The following new section is added after the section "Services to Help You
Manage Your Account - Systematic Withdrawal Plan":
ELECTRONIC FUND TRANSFERS
You may choose to have dividend and capital gain distributions or payments under
a systematic withdrawal plan sent directly to a checking or savings account. If
the account is with a bank that is a member of the Automated Clearing House, the
payments may be made automatically by electronic funds transfer. If you choose
this option, please allow at least fifteen days for initial processing. We will
send any payments made during that time to the address of record on your
account.
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IV. The following paragraphs are added to the end of the section titled "What
Are the Fund's Potential Risks?":
On January 1, 1999, the European Monetary Union (EMU) plans to introduce a new
single currency, the Euro, which will replace the national currency for
participating member countries. If the Fund holds investments in countries with
currencies replaced by the Euro, the investment process, including trading,
foreign exchange, payments, settlements, cash accounts, custody and accounting
will be impacted.
The process to establish the Euro may result in market volatility. It is not
possible to predict the impact of the Euro on the business or financial
condition of European issuers or on the Fund. The transition and the elimination
of currency risk among EMU countries may change the economic environment and
behavior of investors, particularly in European markets. To the extent the Fund
holds non-U.S. dollar (Euro or other) denominated securities, it will still be
exposed to currency risk due to fluctuations in those currencies versus the U.S.
dollar.
Resources has created an interdepartmental team to handle all Euro-related
changes to enable the Franklin Templeton Funds to process transactions
accurately and completely with minimal disruption to business activities. While
there can be no assurance that the Fund will not be adversely affected, the
manager and its affiliated service providers are taking steps that they believe
are reasonably designed to address the Euro issue.
Please keep this supplement for future reference.
