o FSS1 P-5
SUPPLEMENT DATED FEBRUARY 15, 2000
TO THE PROSPECTUS OF
FRANKLIN STRATEGIC SERIES
(FSS1 - Franklin Aggressive Growth, Blue Chip, California Growth,
Large Cap Growth, MidCap Growth and Small Cap Growth Funds)
dated September 1, 1999
On February 15, 2000, Franklin Strategic Series' Board of Trustees approved a
proposal to merge the Franklin MidCap Growth Fund into the Franklin
California Growth Fund, subject to shareholder approval. The investment goal
of Franklin MidCap Growth Fund is long-term capital growth. The investment
goal of Franklin California Growth Fund is capital appreciation. These goals
are fundamental, which means they may not be changed without shareholder
approval. The board believes this proposed merger will benefit shareholders.
It is anticipated that this summer shareholders of Franklin MidCap Growth
Fund will receive a proxy and proxy statement requesting their votes on the
merger.
Franklin MidCap Growth Fund will be closed to new investors after the close
of business on March 6, 2000. If you are a shareholder of record as of the
close of business on March 6, 2000, you may continue to add to your account,
subject to your applicable minimum additional investment amount, or buy
additional shares through reinvestment of dividend or capital gain
distributions until the merger is approved by Franklin MidCap Growth Fund's
shareholders. If the merger is approved by Franklin MidCap Growth Fund's
shareholders, the Franklin MidCap Growth Fund also will be closed to
purchases by existing shareholders, except through the reinvestment of
dividend or capital gain distributions or through established automatic
investment plans.
Although you may redeem your shares, please keep in mind that if you sell all
the shares in your account after March 6, 2000, your account will be closed
and you will not be allowed to buy additional shares of Franklin MidCap
Growth Fund or to reopen your account in the Franklin MidCap Growth Fund. If
you sell your shares in the fund, you may reinvest some or all of the
proceeds in Class A shares of most of the other Franklin Templeton Funds
within 365 days without an initial sales charge.
Please keep this supplement for future reference.
