GOF P-5
                         SUPPLEMENT DATED MARCH 1, 2008
                      TO THE CURRENTLY EFFECTIVE PROSPECTUS
                           OF EACH OF THE LISTED FUNDS

                    FRANKLIN CALIFORNIA TAX-FREE INCOME FUND

                       FRANKLIN CALIFORNIA TAX-FREE TRUST
                Franklin California Insured Tax-Free Income Fund
           Franklin California Intermediate-Term Tax-Free Income Fund
              Franklin California Limited-Term Tax-Free Income Fund
                    Franklin California Tax-Exempt Money Fund

                          FRANKLIN CAPITAL GROWTH FUND

                            FRANKLIN CUSTODIAN FUNDS
                             Franklin DynaTech Fund
                              Franklin Growth Fund
                              Franklin Income Fund
                    Franklin U.S. Government Securities Fund
                             Franklin Utilities Fund

                      FRANKLIN FEDERAL TAX-FREE INCOME FUND

                              FRANKLIN GLOBAL TRUST
                        Franklin Global Real Estate Fund

                     FRANKLIN GOLD AND PRECIOUS METALS FUND

                           FRANKLIN HIGH INCOME TRUST
                            Franklin High Income Fund

                       FRANKLIN INVESTORS SECURITIES TRUST
               Franklin Adjustable U.S. Government Securities Fund
                             Franklin Balanced Fund
                      Franklin Convertible Securities Fund
                           Franklin Equity Income Fund
                    Franklin Floating Rate Daily Access Fund
            Franklin Limited Maturity U.S. Government Securities Fund
                     Franklin Low Duration Total Return Fund
                            Franklin Real Return Fund
                           Franklin Total Return Fund

                             FRANKLIN MANAGED TRUST
                         Franklin Rising Dividends Fund

                       FRANKLIN MUNICIPAL SECURITIES TRUST
                  Franklin California High Yield Municipal Fund
                     Franklin Tennessee Municipal Bond Fund

                        FRANKLIN MUTUAL SERIES FUND INC.
                               Mutual Beacon Fund
                              Mutual Discovery Fund
                              Mutual European Fund
                         Mutual Financial Services Fund
                              Mutual Qualified Fund
                               Mutual Shares Fund

                     FRANKLIN NEW YORK TAX-FREE INCOME FUND

                        FRANKLIN NEW YORK TAX-FREE TRUST
                 Franklin New York Insured Tax-Free Income Fund
            Franklin New York Intermediate-Term Tax-Free Income Fund
               Franklin New York Limited-Term Tax-Free Income Fund
                     Franklin New York Tax-Exempt Money Fund

                      FRANKLIN REAL ESTATE SECURITIES TRUST
                      Franklin Real Estate Securities Fund

                      FRANKLIN STRATEGIC MORTGAGE PORTFOLIO

                            FRANKLIN STRATEGIC SERIES
                      Franklin Biotechnology Discovery Fund
                          Franklin Flex Cap Growth Fund
                        Franklin Focused Core Equity Fund
                       Franklin Global Communications Fund
                        Franklin Global Health Care Fund
                       Franklin Growth Opportunities Fund
                         Franklin Natural Resources Fund
                       Franklin Small-Mid Cap Growth Fund
                         Franklin Small Cap Growth Fund
                         Franklin Strategic Income Fund
                            Franklin Technology Fund

                             FRANKLIN TAX-FREE TRUST
                      Franklin Alabama Tax-Free Income Fund
                      Franklin Arizona Tax-Free Income Fund
                     Franklin Colorado Tax-Free Income Fund
                    Franklin Connecticut Tax-Free Income Fund
                      Franklin Double Tax-Free Income Fund
             Franklin Federal Intermediate-Term Tax-Free Income Fund
               Franklin Federal Limited-Term Tax-Free Income Fund
                  Franklin Florida Insured Tax-Free Income Fund
                      Franklin Florida Tax-Free Income Fund
                      Franklin Georgia Tax-Free Income Fund
                    Franklin High Yield Tax-Free Income Fund
                      Franklin Insured Tax-Free Income Fund
                     Franklin Kentucky Tax-Free Income Fund
                     Franklin Louisiana Tax-Free Income Fund
                     Franklin Maryland Tax-Free Income Fund
               Franklin Massachusetts Insured Tax-Free Income Fund
                 Franklin Michigan Insured Tax-Free Income Fund
                 Franklin Minnesota Insured Tax-Free Income Fund
                     Franklin Missouri Tax-Free Income Fund
                    Franklin New Jersey Tax-Free Income Fund
                  Franklin North Carolina Tax-Free Income Fund
                   Franklin Ohio Insured Tax-Free Income Fund
                      Franklin Oregon Tax-Free Income Fund
                   Franklin Pennsylvania Tax-Free Income Fund
                     Franklin Virginia Tax-Free Income Fund

                    FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
                 Franklin Templeton 2015 Retirement Target Fund
                 Franklin Templeton 2025 Retirement Target Fund
                 Franklin Templeton 2035 Retirement Target Fund
                 Franklin Templeton 2045 Retirement Target Fund
                   Franklin Templeton Conservative Target Fund
                  Franklin Templeton Corefolio Allocation Fund
                Franklin Templeton Founding Funds Allocation Fund
                      Franklin Templeton Growth Target Fund
                     Franklin Templeton Moderate Target Fund
                 Franklin Templeton Perspectives Allocation Fund

                         FRANKLIN TEMPLETON GLOBAL TRUST
                      Franklin Templeton Hard Currency Fund

                     FRANKLIN TEMPLETON INTERNATIONAL TRUST
                           Franklin India Growth Fund
                    Templeton Foreign Smaller Companies Fund
                        Templeton Global Long-Short Fund

                         FRANKLIN VALUE INVESTORS TRUST
                           Franklin All Cap Value Fund
                     Franklin Balance Sheet Investment Fund
                          Franklin Large Cap Value Fund
                          Franklin MicroCap Value Fund
                           Franklin MidCap Value Fund
                          Franklin Small Cap Value Fund

                           TEMPLETON CHINA WORLD FUND

                       TEMPLETON DEVELOPING MARKETS TRUST

                                 TEMPLETON FUNDS
                             Templeton Foreign Fund
                              Templeton World Fund

                        TEMPLETON GLOBAL INVESTMENT TRUST
                               Templeton BRIC Fund
                    Templeton Emerging Markets Small Cap Fund
                              Templeton Income Fund

                      TEMPLETON GLOBAL OPPORTUNITIES TRUST

                     TEMPLETON GLOBAL SMALLER COMPANIES FUND

                           TEMPLETON GROWTH FUND, INC.

                             TEMPLETON INCOME TRUST
                           Templeton Global Bond Fund
                        Templeton International Bond Fund

The prospectus is revised as follows:

1. Effective October 1, 2008, for all funds that are offered with an initial
sales charge, the cumulative quantity discount and letter of intent portion of
the "Sales Charge Reductions and Waivers" section is amended to read:

      1. CUMULATIVE QUANTITY DISCOUNT - lets you combine certain existing
      holdings of Franklin Templeton fund shares - referred to as "cumulative
      quantity discount eligible shares" - with your current purchase of Class A
      shares to determine if you qualify for a sales charge breakpoint.

      Cumulative quantity discount eligible shares are Franklin Templeton Fund
      shares registered to (or held by a financial intermediary for):

      o You, individually;
      o Your spouse or domestic partner, as recognized by applicable state
        law, and your children under the age of 21 (each a "Family Member");
      o You jointly with one or more Family Members;
      o You jointly with another person(s) who is(are) not Family
        Members if that other person has not included the value of the shares as
        cumulative quantity discount eligible shares for purposes of that
        person's separate investments in Franklin Templeton fund shares;
      o A trustee/custodian of a Coverdell Education Savings account
        for which you or a Family Member is the identified
        responsible person;
      o A trustee/custodian of an IRA (which includes a Roth IRA and an
        employer sponsored IRA such as a SIMPLE IRA) or your non-ERISA covered
        403(b), if the shares are registered/recorded under yours or a Family
        Member's Social Security number;
      o A 529 college savings plan over which you or a Family Member has
        investment discretion and control;
      o Any entity over which you or a Family Member has (have)
        individual or shared authority, as principal, has
        investment discretion and control (for example, an
        UGMA/UTMA account for a child on which you or a Family
        Member is the custodian, a trust on which you or a Family
        Member is the trustee, a business account [not to include
        retirement plans] for your solely owned business [or the
        solely owned business of a Family Member] on which you or
        a Family Member is the authorized signer);
      o A trust established by you or a Family Member as grantor.

      Franklin Templeton fund shares held through an administrator or
      trustee/custodian of an Employer Sponsored Retirement plan such as a
      401(k) plan (see definition below) do not qualify for a cumulative
      quantity discount.

      If you believe there are cumulative quantity discount eligible shares that
      can be combined with your current purchase to achieve a sales charge
      breakpoint (for example, shares held in a different broker-dealer's
      brokerage account or with a bank or an investment advisor), it is your
      responsibility to specifically identify those shares to your financial
      adviser at the time of your purchase (including at the time of any future
      purchase). If you have not designated a financial adviser associated with
      your Franklin Templeton Fund shares, it is your responsibility to
      specifically identify any cumulative quantity discount eligible shares to
      the Fund's transfer agent at the time of any purchase.

      If there are cumulative quantity discount eligible shares that would
      qualify for combining with your current purchase and you do not tell your
      financial adviser or the Franklin Templeton Funds' transfer agent at the
      time of any purchase, you may not receive the benefit of a reduced sales
      charge that might otherwise be available since your financial adviser and
      the Fund generally will not have that information.

      The value of cumulative quantity discount eligible shares equals the cost
      or current value of those shares, whichever is higher. The current value
      of shares is determined by multiplying the number of shares by their
      highest current public offering price. It is your responsibility to retain
      any records necessary to substantiate historical share costs because
      neither your current financial adviser nor the Franklin Templeton Funds
      may have or maintain this information.

      An "Employer Sponsored Retirement Plan" is a Qualified Retirement Plan,
      ERISA covered 403(b) and certain non-qualified deferred compensation
      arrangements that operate in a similar manner to a Qualified Retirement
      Plan, such as 457 plans and executive deferred compensation arrangements,
      but not including employer sponsored IRAs. A "Qualified Retirement Plan"
      is an employer sponsored pension or profit sharing plan that qualifies
      under section 401(a) of the Internal Revenue Code, including 401(k), money
      purchase pension, profit sharing and defined benefit plans.

      2. LETTER OF INTENT (LOI) - expresses your intent to buy a stated dollar
      amount of "cumulative quantity discount eligible shares" (as defined in
      the "Cumulative Quantity Discount" section above) over a 13-month period
      and lets you receive the same sales charge as if all shares had been
      purchased at one time. We will reserve 5% of your total intended purchase
      in Class A shares registered in your name until you fulfill your LOI to
      cover any additional sales charge that may apply if you do not buy the
      amount stated in your LOI. It is your responsibility to tell your
      financial adviser when you believe you have fulfilled your LOI with
      sufficient cumulative quantity discount eligible shares. If you have not
      designated a financial adviser associated with your Franklin Templeton
      Fund shares, it is your responsibility to tell the Funds' transfer agent
      when you believe you have fulfilled your LOI with sufficient cumulative
      quantity discount eligible shares. Please refer to the Statement of
      Additional Information for more LOI details.
      To sign up for these programs, complete the appropriate section of your
      account application.

2. Effective October 1, 2008, the second sentence of the section "Investments of
$1 Million or More" is amended as follows:

However, there is a 1% Contingent Deferred Sales Charge ("CDSC") for funds that
have a maximum initial sales charge of 5.75%; for all other funds, the maximum
CDSC will be 0.75%. The CDSC is assessed on any shares you redeem within 18
months of purchase.

3. The "Qualified Investors - Advisor Class" (and "Qualified Investors - Class
Z" for Mutual Series funds) section is revised to include the following category
of investor:

o     Unaffiliated U.S. registered mutual funds, including those that
      operate as "fund of funds." Minimum initial investment: $1 million in
      Advisor Class or Class Z shares of any Franklin Templeton fund.


                PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE.