497 1 gofp6041709ref.txt GOF P-6 04/09 SUPPLEMENT DATED APRIL 17, 2009 TO THE CURRENTLY EFFECTIVE PROSPECTUS OF EACH OF THE LISTED FUNDS FRANKLIN CALIFORNIA TAX-FREE TRUST Franklin California Tax-Exempt Money Fund FRANKLIN MONEY FUND FRANKLIN NEW YORK TAX-FREE TRUST Franklin New York Tax-Exempt Money Fund FRANKLIN TAX-EXEMPT MONEY FUND FRANKLIN TEMPLETON MONEY FUND TRUST Franklin Templeton Money Fund INSTITUTIONAL FIDUCIARY TRUST Franklin Cash Reserves Fund Money Market Portfolio The prospectus is amended as follows: I. The Fund has elected not to participate in the third and final installment of the U.S. Department of the Treasury's Temporary Guarantee Program for Money Market Funds (the "Program"), which begins on May 1, 2009. The Fund has participated in the Program since its inception and will continue to participate in the current coverage period that ends on April 30, 2009. II. Based on the Fund's participation in the Program from September 19, 2008 to April 30, 2009, the "Annual Fund Operating Expenses" and the "Example" tables under the section "Fees and Expenses" are revised for the Funds listed below: (A) FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS) Management fees 0.49% Other expenses(1) 0.08% TOTAL ANNUAL FUND OPERATING 0.57% expenses(1)(,2) 1. Other expenses and total annual Fund operating expenses of the Fund have been restated to reflect fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 2. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------- $58 $176 $305 $680 (B) FRANKLIN MONEY FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS)(1) Management fees 0.44% Other expenses(2) 0.18% TOTAL ANNUAL FUND OPERATING EXPENSES(2,3) 0.62% 1. The annual Fund operating expenses shown and included in the example below reflect the expenses of both the Fund and The Money Market Portfolio. 2. Other expenses and total annual Fund operating expenses of the Fund have been restated to reflect fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 3. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------- $63 $194 $337 $752 (C) FRANKLIN NEW YORK TAX-EXEMPT MONEY FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS) Management fees(2) 0.62% Other expenses(1) 0.19% Total annual Fund operating expenses(1,2) 0.81% Management and administration fee reduction and -0.15% expense limitation(2,3) NET ANNUAL FUND OPERATING EXPENSES(1,)(2)(,3) 0.66% 1. Other expenses and total annual Fund operating expenses of the Fund have been restated to reflect fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 2. The investment manager has contractually agreed to limit its fee and to assume as its own expense certain expenses otherwise payable by the Fund so that total annual Fund operating expenses do not exceed 0.64% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, liquidations and Treasury Guarantee Program fees) until January 31, 2010. 3. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------- $67 $239 $426 $966 (D) FRANKLIN TAX-EXEMPT MONEY FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS) Management fees 0.56% Other expenses(1) 0.25% TOTAL ANNUAL FUND OPERATING 0.81% EXPENSES(1)(,2) 1. Other expenses and total annual Fund operating expenses of the Fund have been restated to reflect fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 2. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------- $83 $254 $441 $980 (E) FRANKLIN TEMPLETON MONEY FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS)(1) CLASS A CLASS B CLASS CLASS R C Management fees(3) 0.53% 0.53% 0.53% 0.53% Distribution and service (12b-1) None 0.65% 0.63% 0.50% fees(2) Other expenses(2,3) 0.21% 0.21% 0.21% 0.21% Total annual Fund operating 0.74% 1.39% 1.37% 1.24% expenses(2,3) Management fee reduction and expense limitation(3,4) -0.12% -0.12% -0.12% -0.12% NET ANNUAL FUND OPERATING 0.62% 1.27% 1.25% 1.12% EXPENSES2,3,4 1. The annual Fund operating expenses shown and included in the example below reflect the expenses of both the Fund and the Portfolio. 2. Operating expenses of the Fund have been restated to reflect a revised contractual fee waiver/expense limitation that became effective as of November 1, 2008, and to reflect certain other expenses, including fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 3. The administrator has contractually agreed, as of November 1, 2008, to limit its fees and to assume as its own expense certain expenses otherwise payable by the Fund so that common expenses (i.e., a combination of investment management fees, fund administration fees, and other expenses, but excluding Rule 12b-1 fees) do not exceed 0.60% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, liquidations and Treasury Guarantee Program fees) until October 31, 2009. 4. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS ---------------------------------------------------------------------- If you sell your shares at the end of the period: CLASS A $63 $220 $391 $885 CLASS B $529 $724 $940 $1,459 CLASS C $227 $418 $730 $1,615 CLASS R $114 $377 $661 $1,468 If you do not sell your shares: CLASS B $129 $424 $740 $1,459 CLASS C $127 $418 $730 $1,615 (F) FRANKLIN CASH RESERVES FUND ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM FUND ASSETS)(1) Management fees(3) 0.40% Distribution and service (12b-1) fees(2) 0.24% Other expenses(2)(,3) 0.28% Total annual Fund operating expenses(2,3) 0.92% Management fee reduction and expense -0.06% limitation(3,4) NET ANNUAL FUND OPERATING EXPENSES(2)(,3,4) 0.86% 1. The annual Fund operating expenses shown and included in the example below reflect the expenses of both the Fund and The Money Market Portfolio. 2. Operating expenses of the Fund have been restated to reflect a revised contractual fee waiver/expense limitation of the administrator that became effective as of November 1, 2008 and to reflect certain other expenses, including fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. 3. The administrator has contractually agreed, as of November 1, 2008, to limit its fees and to assume as its own expense certain expenses otherwise payable by the Fund so that common expenses (i.e., a combination of investment management fees, fund administration fees, and other expenses, but excluding Rule 12b-1 fees) do not exceed 0.60% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, liquidations and Treasury Guarantee Program fees) until October 31, 2009. 4. In order to avoid a negative yield, the investment manager, fund administrator and fund distributor have voluntarily agreed to waive or limit their respective fees, assume as their own expense certain expenses otherwise payable by the Fund, and if necessary, make a capital infusion into the Fund. These waivers, expense reimbursements and capital infusions, which are not reflected in the table above, are voluntary and may be modified or discontinued by the investment manager, fund administrator or distributor at any time. There is no guarantee that the Fund will be able to avoid a negative yield. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS ---------------------------------------- $88 $283 $495 $1,104 (G) MONEY MARKET PORTFOLIO ANNUAL FUND OPERATING EXPENSES(1) (EXPENSES DEDUCTED FROM FUND ASSETS) Management fees 0.35% Other expenses(2) 0.04% TOTAL ANNUAL FUND OPERATING EXPENSES(2) 0.39% 1. The annual Fund operating expenses shown and included in the example below reflect the expenses of both the Fund and The Money Market Portfolio. 2. Other expenses and total annual Fund operating expenses of the Fund have been restated to reflect fees relating to the Fund's participation in the Treasury's Temporary Guarantee Program for Money Market Funds through April 30, 2009. EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS ---------------------------------------- $40 $121 $210 $470 PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE.