o FSS1 P-6
SUPPLEMENT DATED OCTOBER 31, 2000
TO THE PROSPECTUS OF
FRANKLIN STRATEGIC SERIES
(Franklin Aggressive Growth Fund, Franklin California Growth Fund,
Franklin Large Cap Growth Fund, Franklin Small Cap Growth Fund I and
Franklin Small Cap Growth Fund II)
dated September 1, 2000
The prospectus is amended as follows:
I. For the Small Cap Growth Fund I, the first paragraph of the "Main
Investment Strategies" section on page 36 has been replaced with the
following:
MAIN INVESTMENT STRATEGIES Under normal market conditions, the Fund invests
at least 65% of its total assets in the equity securities of U.S. small
capitalization (small cap) companies. For this Fund, small cap companies are
those companies with market cap values not exceeding: (i) $1.5 billion; or
(ii) the highest market cap value in the Russell 2000 Index; whichever is
greater, at the time of purchase. That index consists of 2,000 small
companies that have publicly traded securities. Market capitalization is
defined as share price multiplied by the number of common stock shares
outstanding. In making investments, the Fund currently emphasizes companies
whose market cap value is reflective of the highest market cap values in the
Russell 2000 Index. In most instances, the manager intends to hold an
investment for further capital growth opportunities even if, through market
appreciation, the company's market cap value exceeds the small cap measures
described above. As a result, the Fund generally expects that the median
market cap of its portfolio will expects that the median market cap of its
portfolio will significantly exceed such Index's median market cap.
II. For the Small Cap Growth Fund II, the first paragraph of the "Main
Investment Strategies" section on page 46 has been replaced with the
following:
MAIN INVESTMENT STRATEGIES Under normal market conditions, the Fund invests
at least 65% of its total assets in the equity securities of U.S. small
capitalization (small cap) companies. For this Fund, small cap companies are
those companies with market cap values not exceeding: (i) $1.5 billion; or
(ii) the highest market cap value in the Russell 2000 Index; whichever is
greater, at the time of purchase. That index consists of 2,000 small
companies that have publicly traded securities. Market capitalization is
defined as share price multiplied by the number of common stock shares
outstanding. The Fund generally emphasizes investments in companies with
market cap values not exceeding $1.5 billion. The manager may continue to
hold an investment for further capital growth opportunities even if, through
market appreciation, the company's market cap value exceeds these small cap
measures. The Fund follows a practice of selectively selling investment
positions so as to maintain a median market cap value for its portfolio of
approximately $1.5 billion or lower.
oFSS1 PA-6
SUPPLEMENT DATED OCTOBER 31, 2000
TO THE PROSPECTUS OF
FRANKLIN STRATEGIC SERIES
(Franklin Aggressive Growth Fund, Franklin California Growth Fund,
Franklin Large Cap Growth Fund, Franklin Small Cap Growth Fund I and
Franklin Small Cap Growth Fund II - Advisor Class)
dated September 1, 2000
The prospectus is amended as follows:
I. For the Small Cap Growth Fund I, the first paragraph of the "Main
Investment Strategies" section on page 20 has been replaced with the
following:
MAIN INVESTMENT STRATEGIES Under normal market conditions, the Fund invests
at least 65% of its total assets in the equity securities of U.S. small
capitalization (small cap) companies. For this Fund, small cap companies are
those companies with market cap values not exceeding: (i) $1.5 billion; or
(ii) the highest market cap value in the Russell 2000 Index; whichever is
greater, at the time of purchase. That index consists of 2,000 small
companies that have publicly traded securities. Market capitalization is
defined as share price multiplied by the number of common stock shares
outstanding. In making investments, the Fund currently emphasizes companies
whose market cap value is reflective of the highest market cap values in the
Russell 2000 Index. In most instances, the manager intends to hold an
investment for further capital growth opportunities even if, through market
appreciation, the company's market cap value exceeds the small cap measures
described above. As a result, the Fund generally expects that the median
market cap of its portfolio will expects that the median market cap of its
portfolio will significantly exceed such Index's median market cap.
II. For the Small Cap Growth Fund II, the first paragraph of the "Main
Investment Strategies" section on page 30 has been replaced with the
following:
MAIN INVESTMENT STRATEGIES Under normal market conditions, the Fund invests
at least 65% of its total assets in the equity securities of U.S. small
capitalization (small cap) companies. For this Fund, small cap companies are
those companies with market cap values not exceeding: (i) $1.5 billion; or
(ii) the highest market cap value in the Russell 2000 Index; whichever is
greater, at the time of purchase. That index consists of 2,000 small
companies that have publicly traded securities. Market capitalization is
defined as share price multiplied by the number of common stock shares
outstanding. The Fund generally emphasizes investments in companies with
market cap values not exceeding $1.5 billion. The manager may continue to
hold an investment for further capital growth opportunities even if, through
market appreciation, the company's market cap value exceeds these small cap
measures. The Fund follows a practice of selectively selling investment
positions so as to maintain a median market cap value for its portfolio of
approximately $1.5 billion or lower.
