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SUPPLEMENT DATED MAY 1, 1997
TO THE PROSPECTUSES OF
Franklin Strategic Income Fund
dated September 1, 1996
Templeton Americas Government Securities Fund
dated August 1, 1996
The prospectus is amended as follows:
I. The section "Sales Charge Waivers" under "How Do I Buy Shares? - Sales
Charge Reductions and Waivers" is amended as
follows:
A. Category 8 is replaced with:
8. Chilean retirement plans that meet the requirements described under
"Retirement Plans" below. B. Effective June 1, 1997, category 5 is deleted in
its entirety.
II. The following paragraph is added after the list of "Sales Charge Waivers"
under "How Do I Buy Shares?": Retirement Plans. Retirement plans that (i) are
sponsored by an employer with at least 100 employees, or (ii) have plan assets
of $1 million or more, or (iii) agree to invest at least $500,000 in the
Franklin Templeton Funds over a 13 month period may buy shares without a
front-end sales charge. Retirement plans that are not Qualified Retirement
Plans or SEPs, such as 403(b) or 457 plans, must also meet the requirements
described under "Group Purchases" above. For retirement plan accounts opened
on or after May 1, 1997, a Contingent Deferred Sales Charge may apply if the
account is closed within 365 days of the retirement plan account's initial
purchase in the Franklin Templeton Funds. Please see "How Do I Sell Shares? -
Contingent Deferred Sales Charge" for details.
III. The section "How Do I Buy Shares? - Other Payments to Securities
Dealers" is replaced in its entirety with the following:
Other Payments to Securities Dealers
The payments described below may be made to Securities Dealers who initiate
and are responsible for certain purchases made without a sales charge. The
payments are subject to the sole discretion of Distributors, and are paid by
Distributors or one of its affiliates and not by the Fund or its shareholders.
1. Purchases of $1 million or more - up to 0.75% of the amount invested.
2.
Purchases made without a front-end sales charge by certain retirement plans
described under "Sales Charge Reductions and Waivers - Retirement Plans" above
- up to 1% of the amount invested. For retirement plan accounts opened on or
after May 1, 1997, a Contingent Deferred Sales Charge will not apply to the
account if the Securities Dealer chooses to receive a payment of 0.25% or less
or if no payment is made.
3. Purchases by trust companies and bank trust departments, Eligible
Governmental Authorities, and broker-dealers or others on behalf of clients
participating in comprehensive fee programs - up to 0.25% of the amount
invested.
4. Purchases by Chilean retirement plans - up to 1% of the amount invested.
A Securities Dealer may receive only one of these payments for each
qualifying purchase. Securities Dealers who receive payments in connection
with investments described in paragraphs 1 or 4 above or a payment of up to 1%
for investments described in paragraph 2 will be eligible to receive the
Rule 12b-1 fee associated with the purchase starting in the thirteenth
calendar month after the purchase.
For breakpoints that may apply, please see "How Do I Buy, Sell and Exchange
Shares? - Other Payments o Securities Dealers" in the SAI.
Distributors and/or its affiliates provide financial support to various
Securities Dealers that sell shares of the Franklin Templeton Group of
Funds. This support is based primarily on the amount of sales of fund
shares. The amount of support may be affected by: total sales; net sales;
levels of redemptions; the proportion of a Securities Dealer's sales and
marketing efforts in the Franklin Templeton Group of Funds; a Securities
Dealer's support of, and participation in, Distributors'
marketing programs; a Securities Dealer's compensation programs for its
registered representatives; and the extent of a Securities Dealer's marketing
programs relating to the Franklin Templeton Group of Funds. Financial support
to Securities Dealers may be made by payments from Distributors' resources,
from Distributors' retention of underwriting concessions and, in the case of
funds that have Rule 12b-1 plans, from payments to Distributors under such
plans. In addition, certain Securities Dealers may receive brokerage
commissions generated by fund portfolio transactions in accordance with the
NASD's rules.
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IV. The following paragraph is added under "How Do I Sell Shares?":
Beginning on or about May 1, 1997, you will automatically be able to redeem
shares by telephone without completing a telephone redemption agreement.
Please notify us in writing if you do not want this option to be available on
your account. If you later decide you would like this option, send us written
instructions signed by all account owners, with a signature guarantee.
V. The following is added under "How Do I Sell Shares? - Contingent Deferred
Sales Charge":
Certain retirement plan accounts opened on or after May 1, 1997, and that
qualify to buy shares without a front-end sales charge may also be subject to
a Contingent Deferred Sales Charge if the retirement plan account is closed
within 365 days of the account's initial purchase in the Franklin Templeton
Funds.
VI. The section "Contingent Deferred Sales Charge - Waivers" under "How Do
I Sell Shares?" is replaced in its entirety with the following:
Waivers. We waive the Contingent Deferred Sales Charge for:
o Exchanges
o Account fees
o Sales of shares purchased pursuant to a sales charge waiver
o Sales of shares purchased without a front-end sales charge by certain
retirement plan accounts if (i) the account was opened before May 1, 1997, or
(ii) the Securities Dealer of record received a payment from Distributors of
0.25% or less, or (iii) Distributors did not make any payment in connection
with the purchase, as described under "How Do I Buy Shares? - Other Payments
to Securities Dealers"
o Redemptions by the Fund when an account falls below the minimum required
account size
o Redemptions following the death of the shareholder or beneficial owner
o Redemptions through a systematic withdrawal plan set up before February 1,
1995
o Redemptions through a systematic withdrawal plan set up on or after
February 1, 1995, at a rate of up to 1% a month of an account's Net Asset
Value. For example, if you maintain an annual balance of $1 million, you
can redeem up to $120,000 annually through a systematic withdrawal plan
free of charge.
o Distributions from individual retirement plan accounts due to death or
disability or upon periodic distributions based on life expectancy
o Tax-free returns of excess contributions from employee benefit plans
o Redemptions by Trust Company employee benefit plans or employee benefit
plans serviced by ValuSelect
o Participant initiated distributions from employee benefit plans or participant
initiated exchanges among investment choices in employee benefit plans
