497 1 0001.txt GOF STKP SUPPLEMENT DATED JANUARY 2, 2001 TO THE PROSPECTUSES OF FRANKLIN TEMPLETON FUNDS FRANKLIN FLOATING RATE TRUST, DATED DECEMBER 1, 2000* FRANKLIN HIGH INCOME TRUST, DATED OCTOBER 1, 2000 FRANKLIN CUSTODIAN FUNDS, INC., DATED FEBRUARY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN MONEY FUND, DATED NOVEMBER 1, 2000 FRANKLIN TAX-EXEMPT MONEY FUND, DATED DECEMBER 1, 2000 FRANKLIN NEW YORK TAX-FREE INCOME FUND, DATED OCTOBER 1, 2000 FRANKLIN FEDERAL TAX-FREE INCOME FUND, DATED SEPTEMBER 1, 2000 FRANKLIN FEDERAL MONEY FUND, DATED NOVEMBER 1, 2000 FRANKLIN CALIFORNIA TAX-FREE TRUST, DATED NOVEMBER 1, 2000 FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, DATED AUGUST 1, 2000 FRANKLIN NEW YORK TAX-FREE TRUST, DATED MAY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN GOLD AND PRECIOUS METALS FUND, DATED DECEMBER 1, 2000 FRANKLIN ASSET ALLOCATION FUND, DATED MAY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1 AND 26, 2000 FRANKLIN GROWTH AND INCOME FUND, DATED NOVEMBER 1, 2000 FRANKLIN INVESTORS SECURITIES TRUST, DATED MARCH 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN STRATEGIC MORTGAGE PORTFOLIO, DATED FEBRUARY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN MANAGED TRUST, DATED FEBRUARY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN MUNICIPAL SECURITIES TRUST, DATED OCTOBER 1, 2000 FRANKLIN TEMPLETON INTERNATIONAL TRUST, DATED MARCH 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN REAL ESTATE SECURITIES TRUST, DATED SEPTEMBER 1, 2000 FRANKLIN STRATEGIC SERIES, DATED SEPTEMBER 1, 2000, AS SUPPLEMENTED OCTOBER 31 AND DECEMBER 1, 2000 FRANKLIN TEMPLETON GLOBAL TRUST, DATED MARCH 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN MUTUAL SERIES FUND INC., DATED MAY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN VALUE INVESTORS TRUST, DATED MARCH 1, 2000 AND JUNE 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 FRANKLIN TEMPLETON FUND ALLOCATOR SERIES, DATED DECEMBER 1, 2000 FRANKLIN TEMPLETON MONEY FUND TRUST, DATED NOVEMBER 1, 2000 FRANKLIN TAX-FREE TRUST, DATED JULY 1, 2000, AS SUPPLEMENTED NOVEMBER 14, 2000 TEMPLETON GLOBAL INVESTMENT TRUST, DATED AUGUST 1, 2000, AS SUPPLEMENTED NOVEMBER 8, 2000 TEMPLETON GLOBAL OPPORTUNITIES TRUST, DATED MAY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 TEMPLETON DEVELOPING MARKETS TRUST, DATED MAY 1, 2000, AS SUPPLEMENTED SEPTEMBER 1, 2000 (EACH AS MAY BE FURTHER SUPPLEMENTED OR AMENDED FROM TIME-TO-TIME) Franklin Templeton is adding online services that will allow you to process certain transactions online. The sections under YOUR ACCOUNT are amended as follows: [Insert graphic of paper with lines and someone writing] BUYING SHARES ------------- I. Replace the instructions "By Phone" and "By Exchange" with the following: ---------------------------------------------------------------------- [Insert graphic of If you have another Before requesting a phone and computer] Franklin Templeton telephone or online fund account with purchase into an BY PHONE/ONLINE your bank account existing account,1 information on file, please make sure we (Up to $100,000 per you may open a new have your bank shareholder per day) account by phone.1 account information At this time, a new on file. If we do not 1-800/632-2301 account may not be have this (or 1-800/448-FUND opened online. information, you will for Class Z) need to send written To make a same day instructions with franklintempleton.com investment, your your bank's name and phone order must be address, a voided NOTE: CERTAIN ACCOUNT received and check or savings TYPES ARE NOT AVAILABLE accepted by us by account deposit slip, FOR ONLINE ACCOUNT 1:00 p.m. Pacific and a signature ACCESS time or the close guarantee if the bank of the New York Stock and Fund accounts do Exchange, whichever not have at least one is earlier./2 common owner. To make a same day investment, your phone or online order must be received and accepted by us by 1:00 p.m. Pacific time or the close of the New York Stock Exchange, whichever is earlier./2 ---------------------------------------------------------------------- [Insert graphic of two Call Shareholder Call Shareholder arrows pointing in Services at the Services at the opposite directions] number below, or number below or our send signed written automated TeleFACTS/3 BY EXCHANGE instructions. You system, or send also may place an signed written TeleFACTS(R)/3 online exchange instructions. You order. The also may place an 1-800/247-1753 TeleFACTS/3 system online exchange order. (around-the-clock cannot beused to access) open a new account. (Please see Exchange Privilege under franklintempleton.com (Please see Exchange Investor Services for Privilege under information on Investor Services exchanges.) for information on exchanges.) ---------------------------------------------------------------------- INVESTOR SERVICES II. Replace TELEPHONE PRIVILEGES with the following sections: FRANKLIN TEMPLETON ONLINE You can visit us online at franklintempleton.com for around-the-clock viewing of information about most Franklin Templeton funds or to register to view your accounts online. After mid-January you may also register for online transactions that will allow you to buy, sell, or exchange your shares and make certain changes to your account. Some account types may not be able to process any or all transactions online. TELEPHONE/ONLINE PRIVILEGES You will automatically receive telephone/online privileges when you open your account, allowing you to obtain or view your account information, and conduct the following transactions by phone or online: buy, sell, or exchange shares of most funds; change your address; request a year-end statement; add or change account services (including distribution options, systematic withdrawals, automatic investment plans, money fund check orders). To view your account information or request online transactions, you will first need to register for these services at the shareholder section of our website at franklintempleton.com. You will be asked to accept the terms of an online agreement(s) and establish a password for online services. Using our shareholder website means you are consenting to sending and receiving personal financial information over the Internet so you should be sure you are comfortable with the risks. For accounts with more than one registered owner, telephone/online privileges allow the Fund to accept online registration or telephone/online instructions for transactions from only one owner. As long as you have telephone/online exchange privileges on your account, you may exchange shares by phone or online from a Fund account requiring two or more signatures into an identically registered money fund account requiring only one signature for all transactions. Additionally, if you have telephone privileges on an account with more than one owner, the Fund will accept written instructions signed by only one owner for transactions that could otherwise be made by phone. For all other transactions and changes, all registered owners must sign the instructions. As long as we follow reasonable security procedures and act on instructions we reasonably believe are genuine, we will not be responsible for any losses that may occur from unauthorized requests. We will request passwords or other information, and may also record calls. To help safeguard your account, keep your password confidential, and verify the accuracy of your confirmation statements immediately after you receive them. Contact us immediately if you believe someone has obtained unauthorized access to your account or password. For transactions done over the Internet, we recommend the use of an Internet browser with 128-bit encryption. Certain methods of contacting us (such as by phone or by Internet) may be unavailable or delayed during periods of unusual market activity. OF COURSE, YOU CAN DECLINE TELEPHONE PRIVILEGES ON YOUR ACCOUNT APPLICATION, OR CHOOSE NOT TO REGISTER FOR ONLINE PRIVILEGES. IF YOU HAVE TELEPHONE/ONLINE PRIVILEGES ON YOUR ACCOUNT AND WANT TO DISCONTINUE THEM, PLEASE CONTACT US FOR INSTRUCTIONS. You may reinstate these privileges at any time in writing, including online registration with respect to online privileges. NOTE: We discourage you from including confidential or sensitive information in any Internet communication to us. If you do choose to send email (encrypted or not) to us over the Internet, you are accepting the associated risks of lack of confidentiality. [Insert graphic of certificate] SELLING SHARES -------------- III. Replace SELLING RECENTLY PURCHASED SHARES with the following paragraph: SELLING RECENTLY PURCHASED SHARES If you sell shares recently purchased, we may delay sending you the proceeds until your check, draft, or wire/electronic funds transfer has cleared, which may take seven business days or more. A certified cashier's check may clear in less time IV. Replace the instructions "By Phone," "By Electronics Fund Transfer" and "By Exchange" with the following: SELLING SHARES ---------------------------------------------------------------------- TO SELL SOME OR ALL OF YOUR SHARES ---------------------------------------------------------------------- [Insert graphic of As long as your transaction is for $100,000 phone and computer] or less, you do not hold share certificates and you have not changed your address by phone or online within the last 15 days, BY PHONE/ONLINE you can sell your shares by phone or online. 1-800/632-2301 A check will be mailed to the name(s) and (or 1-800/448-FUND address on the account. Written for Class Z) instructions, with a signature guarantee, are required to send the check to another franklintempleton.com address or to make it payable to another person. (Please see Telephone/Online Privileges under Investor Services for more information.) ---------------------------------------------------------------------- [Insert graphic of You can call, write, or visit us online to three lightning bolts] have redemption proceeds sent to a bank account. See the policies above for selling BY ELECTRONIC FUNDS shares by mail, phone, or online. TRANSFER (ACH) Before requesting to have redemption proceeds sent to a bank account, please make sure we have your bank account information on file. If we do not have this information, you will need to send written instructions with your bank's name and address, a voided check or savings account deposit slip, and a signature guarantee if the bank and Fund accounts do not have at least one common owner. If we receive your request in proper form by 1:00 p.m. Pacific time,2 proceeds sent by ACH generally will be available within two to three business days. ---------------------------------------------------------------------- [Insert graphic of two Obtain a current prospectus for the fund arrows pointing in you are considering. Prospectuses are opposite directions] available online at franklintempleton.com. BY EXCHANGE Call Shareholder Services at the number below or our automated TeleFACTS/3 system, TeleFACTS(R)/3 or send signed written instructions. You 1-800/247-1753 also may place an exchange order online. (around-the-clock See the policies above for selling shares access) by mail, phone, or online. If you hold share certificates you will need to return them to the Fund before your exchange can be processed. (Please see Exchange Privilege under Investor Services for information on exchanges.) ---------------------------------------------------------------------- [Insert graphic of pen and paper] ACCOUNT POLICIES ---------------- V. Replace the paragraph STATEMENTS AND REPORTS with the following 2 paragraphs: STATEMENTS AND REPORTS You will receive quarterly account statements that show all your account transactions during the quarter. You also will receive written notification after each transaction affecting your account (except for distributions and transactions made through automatic investment or withdrawal programs, which will be reported on your quarterly statement). You also will receive the Fund's financial reports every six months. To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the financial reports. If you need additional copies, please call 1-800/DIAL BEN. You can also review these documents online at franklintempleton.com. INVESTMENT REPRESENTATIVE ACCOUNT ACCESS If there is a dealer or other investment representative of record on your account, he or she will be able to obtain your account information, conduct transactions for your account, and will also receive copies of all notifications and statements and other information about your account directly from the Fund. VI. Add the following sentence to ADDITIONAL POLICIES: The Fund may modify, suspend, or terminate telephone/online privileges at any time. *For provisions for exchanging and selling shares, please see the Fund's prospectus. 1. You may buy shares of the Franklin Templeton Money Fund Trust only in exchange for Class B or C shares of other Franklin Templeton funds. Please see BUYING SHARES in the prospectus. 2. The timing is 3:00 p.m. Pacific time for Money Funds. 3. You cannot use the TeleFACTS option to exchange shares in the Advisor Class or Class Z. PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE