oFTIT STKPA1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUS OF
FRANKLIN TEMPLETON INTERNATIONAL TRUST - ADVISOR CLASS
DATED MARCH 1, 1998
The prospectus is amended as follows:
I. The section "Management Team," found under "Who Manages the Fund?," is
revised to add Juan J. Benito to the Smaller Companies Fund management team,
effective July 1997, and to add the following:
Juan J. Benito
Portfolio Manager of Investment Counsel
Mr. Benito is currently a portfolio manager and research analyst with
Investment Counsel. He holds an MBA from the Harvard Business School and a
BS/MS in engineering from the Polytechnical University of Valencia, Spain.
Before joining the Templeton organization in 1996, Mr. Benito was a management
consultant and case team leader with Monitor Company, a leading global strategy
consulting firm in Cambridge, Massachusetts (1994-1996). His previous
experience includes being an internal planning consultant with Duke Power
(1993-1994), a business development consultant with IBM Consulting Group
(1992), and a regional manager with Iberdrola, a large power utility company in
Spain (1987-1991). Mr. Benito's research responsibilities include coverage of
European small cap companies.
II. The first paragraph under "How Is the Trust Organized?" is replaced with the
following paragraph:
Each Fund is a diversified series of the Trust, an open-end management
investment company, commonly called a mutual fund. It was organized as a
Delaware business trust on March 22, 1991, and is registered with the SEC. As
of January 2, 1997, each Fund began offering new classes of shares designated
Templeton Foreign Smaller Companies Fund - Advisor Class, Templeton Pacific
Growth Fund - Class II and Templeton Pacific Fund - Advisor Class. As of July
1, 1998, the Smaller Companies Fund began offering a new class of shares
designated Templeton Foreign Smaller Companies Fund - Class II. All shares
outstanding before the offering of Class II and Advisor Class shares have been
designated Class I shares. Additional series and classes of shares may be
offered in the future.
III. The second category under "How Do I Buy Shares? - Minimum Investments,"
discussing minimum investments for qualified registered investment advisors, is
replaced with the following:
2.Qualified registered investment advisors or certified financial planners who
have clients invested in the Franklin Mutual Series Fund Inc. on October 31,
1996, or who buy through a broker-dealer or service agent who has entered
into an agreement with Distributors, subject to a $1,000 minimum initial and
$50 minimum subsequent investment requirement
IV. The following new item is added under "May I Exchange Shares for Shares of
Another Fund? - Exchange Restrictions":
o You must meet the applicable minimum investment amount of the fund you are
exchanging into, or exchange 100% of your Fund shares.
V. The section "Keeping Your Account Open," found under "Transaction Procedures
and Special Requirements," is replaced in its entirety with the following:
KEEPING YOUR ACCOUNT OPEN
Due to the relatively high cost of maintaining a small account, we may close
your account if the value of your shares is less than $250, or less than $50
for employee accounts. We will only do this if the value of your account fell
below this amount because you voluntarily sold your shares and your account has
been inactive (except for the reinvestment of distributions) for at least six
months. Before we close your account, we will notify you and give you 30 days
to increase the value of your account to $1,000, or $100 for employee accounts.
These minimums do not apply to IRAs, accounts managed by the Franklin Templeton
Group, the Franklin Templeton Profit Sharing 401(k) Plan, the series of
Franklin Templeton Fund Allocator Series, or certain defined contribution plans
that qualify to buy shares with no minimum initial investment requirement.
VI. The following definition is revised in the section "Useful Terms and
Definitions":
Class I, Class II and Advisor Class - The Fund offers three classes of shares,
designated "Class I," "Class II," and "Advisor Class." The three classes have
proportionate interests in the Fund's portfolio. They differ, however,
primarily in their sales charge and expense structures.
Please keep this supplement for future reference.
