o192 STK SAI 1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN REAL ESTATE SECURITIES FUND
DATED SEPTEMBER 1, 1997
The Statement of Additional Information is amended as follows:
I. The first paragraph under "How Do I Buy, Sell and Exchange Shares? -
Additional Information on Selling Shares" is replaced with the following
paragraph:
SYSTEMATIC WITHDRAWAL PLAN. There are no service charges for establishing or
maintaining a systematic withdrawal plan. Payments under the plan will be made
from the redemption of an equivalent amount of shares in your account, generally
on the 25th day of the month in which a payment is scheduled. If the 25th falls
on a weekend or holiday, we will process the redemption on the next business
day.
II. The following replaces the Class I performance figures in the applicable
sections under "How does the Fund Measure Performance?" The figures below have
been restated to reflect the Fund's current, maximum 5.75% initial sales charge.
TOTAL RETURN
The average annual total return for Class I for the one-year period ended April
30, 1997, and for the period from inception (January 3, 1994) through April 30,
1997, was 18.74% and 15.27%, respectively.
The cumulative total return for Class I for the one-year period ended April 30,
1997, and for the period from inception (January 3, 1994) through April 30,
1997, was 18.74% and 60.32%, respectively.
YIELD
The yield for Class I for the 30-day period ended April 30, 1997, was 3.32%.
CURRENT DISTRIBUTION RATE
The current distribution rate for Class I for the 30-day period ended April 30,
1997, was 2.20%.
III. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share of the class and includes the front-end sales charge. The maximum
front-end sales charge is 5.75% for Class I and 1% for Class II.
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Please keep this supplement for future reference.
