GOF P-3 05/14
SUPPLEMENT DATED MAY 1, 2014
TO THE CURRENTLY EFFECTIVE PROSPECTUSES
OF
EACH OF THE LISTED FUNDS
Franklin Alternative Strategies Funds
Franklin K2 Alternative Strategies Fund
Franklin Pelagos Commodities Strategy Fund
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 Tax-Exempt Money Fund
Franklin Custodian Funds
Franklin DynaTech Fund
Franklin Income Fund
Franklin U.S. Government Securities Fund
Franklin Utilities Fund
Franklin Growth Fund
Franklin Federal Tax-Free Income Fund
Franklin Global Trust
Franklin Global Listed Infrastructure Fund
Franklin Global Real Estate Fund
Franklin International Small Cap Growth Fund
Franklin International Growth Fund
Franklin Large Cap Equity Fund
Franklin Templeton Emerging Market Debt Opportunities 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 Money Fund
Franklin Municipal Securities Trust
Franklin California High Yield Municipal Fund
Franklin Tennessee Municipal Bond Fund
Franklin Mutual Recovery Fund
Franklin New York Tax-Free Income Fund
Franklin New York Tax-Free Trust
Franklin New York Intermediate-Term Tax-Free Income 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 Government Bond Fund
Franklin Growth Opportunities Fund
Franklin Natural Resources Fund
Franklin Small Cap Growth Fund
Franklin Small-Mid Cap Growth Fund
Franklin Strategic Income 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 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 Tax-Free Income Fund
Franklin Michigan Tax-Free Income Fund
Franklin Minnesota 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 Tax-Free Income Fund
Franklin Oregon Tax-Free Income Fund
Franklin Pennsylvania Tax-Free Income Fund
Franklin Virginia Tax-Free Income Fund
Franklin Templeton Global Trust
Franklin Templeton Hard Currency Fund
Franklin Templeton International Trust
Franklin India Growth Fund
Franklin Templeton Global Allocation Fund
Franklin World Perspectives Fund
Templeton Foreign Smaller Companies Fund
Franklin Templeton Money Fund Trust
Franklin Templeton Money 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
Institutional Fiduciary Trust
Money Market Portfolio
Templeton China World Fund
Templeton Funds
Templeton Foreign Fund
Templeton World Fund
Templeton Global Investment Trust
Templeton Asian Growth Fund
Templeton BRIC Fund
Templeton Emerging Markets Balanced Fund
Templeton Emerging Markets Small Cap Fund
Templeton Frontier Markets Fund
Templeton Global Balanced Fund
Templeton Global Smaller Companies Fund
Templeton Growth Fund, Inc.
Templeton Income Trust
Templeton Constrained Bond Fund
Templeton Emerging Markets Bond Fund
Templeton Global Bond Fund
Templeton Global Total Return Fund
Templeton International Bond Fund
The Prospectus is amended as follows:
I. For the Franklin Global Real Estate Fund, the Fund Summary “Portfolio Managers” section beginning on page 9 is revised as follows:
Portfolio Managers
WILSON MAGEE Portfolio Manager of FT Institutional and portfolio manager of the Fund since 2010.
DANIEL PETTERSSON Portfolio Manager and Research Analyst of FT Institutional and portfolio manager of the Fund since May 2014.
II. For the Franklin Global Real Estate Fund, the portfolio management team in “Fund Details - Management” section beginning on page 18 is revised as follows:
The Fund is managed by a team of dedicated professionals focused on investments in the global real estate securities market. The portfolio managers of the team are as follows:
WILSON MAGEE Portfolio Manager of FT Institutional
Mr. Magee assumed the duties of lead portfolio manager of the Fund in 2010. He joined Franklin Templeton Investments in 2010. He has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time. He joined Franklin Templeton Investments in 2010. Prior to joining Franklin Templeton Investments, he was President and portfolio manager of Colony Investment Management. He previously was a portfolio manager at Goldman Sachs Asset Management and Grantham Mayo Van Otterloo (GMO) and an investor at AEW.
DANIEL PETTERSSON Portfolio Manager and Research Analyst of FT Institutional
Mr. Pettersson has been a portfolio manager of the Fund since May 2014, providing research and advice on the purchases and sales of individual securities, and portfolio risk assessment. Prior to joining Franklin Templeton in 2006, Mr. Pettersson's real estate experience included his work at JM AB, a Swedish real estate developer located in Stockholm and a public company listed on the Nordic Stock Exchange.
III. For the Franklin Global Listed Infrastructure Fund, the Fund Summary “Portfolio Managers” section on page 8 is revised as follows:
Portfolio Managers
WILSON MAGEE Portfolio Manager of FT Institutional and portfolio manager of the Fund since inception (2013).
IV. For the Franklin Global Listed Infrastructure Fund, the portfolio management team in “Fund Details - Management” section beginning on page 22 is revised as follows:
The Fund is managed by a team of dedicated professionals focused on investments in domestic and foreign infrastructure-related company securities. The portfolio managers of the team are as follows:
WILSON MAGEE Portfolio Manager of FT Institutional
Mr. Magee has been the lead portfolio manager of the Fund since inception. He has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time. He joined Franklin Templeton Investments in 2010. Prior to joining Franklin Templeton Investments, he was President and portfolio manager of Colony Investment Management. He previously was a portfolio manager at Goldman Sachs Asset Management and Grantham Mayo Van Otterloo (GMO) and an investor at AEW.
V. For the Franklin Real Estate Securities Fund, the Fund Summary “Portfolio Managers” section beginning on page 7 is revised as follows:
Portfolio Managers
WILSON MAGEE Portfolio Manager of FT Institutional and portfolio manager of the Fund since 2010.
DANIEL SCHER Portfolio Manager and Research Analyst of FT Institutional and portfolio manager of the Fund since May 2014.
MURAT SENSOY, CFA Portfolio Manager and Research Analyst of FT Institutional and portfolio manager of the Fund since May 2014.
VI. For the Franklin Real Estate Securities Fund, the portfolio management team in “Fund Details - Management” section beginning on page 14 is revised as follows:
The Fund is managed by a team of dedicated professionals focused on investments in equity securities of companies operating in the real estate industry. The portfolio managers of the team are as follows:
WILSON MAGEE Portfolio Manager of FT Institutional
Mr. Magee assumed the duties of lead portfolio manager of the Fund in 2010. He has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time. He joined Franklin Templeton Investments in 2010. Prior to joining Franklin Templeton Investments, he was President and portfolio manager of Colony Investment Management. He previously was a portfolio manager at Goldman Sachs Asset Management and Grantham Mayo Van Otterloo (GMO) and an investor at AEW.
DANIEL SCHER Portfolio Manager and Research Analyst of FT Institutional
Mr. Scher has been a portfolio manager of the Fund since May 2014, providing research and advice on the purchases and sales of individual securities, and portfolio risk assessment. He joined Franklin Templeton Investments in 2002. Prior to joining the Global Real Estate Securities team in 2007, Mr. Scher had spent over four years performing business development, marketing and client service functions for Franklin Templeton Institutional in Melbourne, Australia. Prior to joining Franklin Templeton in 2002, Mr. Scher worked for the asset management division of the Australia and New Zealand Banking Group (ANZ) providing investment support and research to the institutional funds management distribution team. He was also with Ernst & Young in their international taxation division as a graduate economist.
MURAT SENSOY, CFA Portfolio Manager and Research Analyst of FT Institutional
Mr. Sensoy has been a portfolio manager of the Fund since May 2014, providing research and advice on the purchases and sales of individual securities, and portfolio risk assessment. He joined Franklin Templeton Investments in 2012. Prior to joining the Franklin Templeton Investments, he was a senior investment analyst at UBS Global Asset Management where he was a member of the global real estate securities investment team. He was a senior securities analyst assistant portfolio manager at The Tuckerman Group, State Street Global Advisors' real estate investment management and advisory arm. He also worked as an international credit risk officer at State Street Bank.
VII. For the Franklin All Cap Value Fund, the Fund Summary “Portfolio Managers” section beginning on page 8 is revised as follows:
Portfolio Managers
STEVEN B. RAINERI Portfolio Manager of Advisory Services and portfolio manager of the Fund since inception (2007).
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since inception (2007).
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services and portfolio manager of the Fund since inception (2007).
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (2007).
VIII. For the Franklin Balance Sheet Investment Fund, the Fund Summary “Portfolio Managers” section beginning on page 16 is revised as follows:
Portfolio Managers
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services and portfolio manager of the Fund since inception (1990).
GRACE HOEFIG Portfolio Manager of Advisory Services and portfolio manager of the Fund since 2012.
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since 1996.
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (1990).
IX. For the Franklin Large Cap Value Fund, the Fund Summary “Portfolio Managers” section beginning on page 23 is revised as follows:
Portfolio Managers
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (2000).
JAKOV STIPANOV Portfolio Manager of Advisory Services and portfolio manager of the Fund since May 2014.
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since inception (2000).
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services and portfolio manager of the Fund since inception (2000).
X. For the Franklin MicroCap Value Fund, the Fund Summary “Portfolio Managers” section beginning on page 30 is revised as follows:
Portfolio Managers
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services and portfolio manager of the Fund since inception (1995).
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since 1996.
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (1995).
XI. For the Franklin MidCap Value Fund, the Fund Summary “Portfolio Managers” section on page 38 is revised as follows:
Portfolio Managers
SAMUEL R. KERNER, CFA Portfolio Manager of Advisory Services and portfolio manager of the Fund since 2005.
JAKOV STIPANOV Portfolio Manager of Advisory Services and portfolio manager of the Fund since May 2014.
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since inception (2005).
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (2005).
XII. For the Franklin Small Cap Value Fund, the Fund Summary “Portfolio Managers” section on page 46 is revised as follows:
Portfolio Managers
STEVEN B. RAINERI Portfolio Manager of Advisory Services and portfolio manager of the Fund since 2012.
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services and portfolio manager of the Fund since inception (1996).
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services and portfolio manager of the Fund since inception (1996).
WILLIAM J. LIPPMAN President of Advisory Services and portfolio manager of the Fund since inception (1996).
XIII. For the Franklin All Cap Value Fund, Franklin Balance Sheet Investment Fund, Franklin Large Cap Value Fund, Franklin MicroCap Value Fund, Franklin MidCap Value Fund and Franklin Small Cap Value Fund, the portfolio management teams in “Fund Details - Management” section beginning on page 74 is revised as follows:
Management
Franklin Advisory Services, LLC (Advisory Services), One Parker Plaza, Ninth Floor, Fort Lee, New Jersey 07024, is the Fund's investment manager. Together, Advisory Services and its affiliates manage as of January 31, 2014, over $857 billion in assets, and have been in the investment management business since 1947.
The investment manager is a research driven, fundamental investment adviser, pursuing a disciplined value-oriented strategy for the Fund. As a "bottom-up" investor concentrating primarily on individual securities, the investment manager will focus on the market price of a company's securities relative to its evaluation of the company's potential long-term earnings, asset value or cash flow. The investment manager seeks bargains among the "under researched and unloved," out of favor companies that offer, in the investment manager's opinion, attractive long-term potential such as current growth companies that are being ignored by the market, former growth companies that have stumbled recently, dropping sharply in price but that still have growth potential in the investment manager's opinion, and companies that are or may be potential turnaround candidates or takeover targets.
Each Fund is managed by a team of dedicated professionals focused on investments in equity securities. The portfolio managers have responsibility for the day-to-day management of particular Funds and operate as a team to develop ideas and implement investment strategy for all of the Funds. The portfolio managers of the team are as follows:
BRUCE C. BAUGHMAN, CPA Senior Vice President of Advisory Services
Mr. Baughman has been a portfolio manager of All Cap Value Fund, Large Cap Value Fund and Small Cap Value Fund since inception and lead portfolio manager of Balance Sheet Fund and MicroCap Value Fund since inception. He joined Franklin Templeton Investments in 1988.
GRACE HOEFIG Portfolio Manager of Advisory Services
Ms. Hoefig has been a co-lead portfolio manager of the Balance Sheet Fund since 2012. She joined Franklin Templeton Investments in 2008.
SAMUEL R. KERNER, CFA Portfolio Manager of Advisory Services
Mr. Kerner has been a portfolio manager of the MidCap Value Fund since 2005 and assumed the duties of lead portfolio manager of the MidCap Value Fund in 2006. He joined Franklin Templeton Investments in 1996.
WILLIAM J. LIPPMAN President of Advisory Services
Mr. Lippman has been President and a portfolio manager of each Fund since inception. He joined Franklin Templeton Investments in 1988.
STEVEN B. RAINERI Portfolio Manager of Advisory Services
Mr. Raineri has been a lead portfolio manager of the All Cap Value Fund since inception and a lead portfolio manager of the Small Cap Value Fund since 2012. He joined Franklin Templeton Investments in 2005.
JAKOV STIPANOV Portfolio Manager of Advisory Services
Mr. Stipanov has been a portfolio manager of the MidCap Value Fund and Large Cap Value Fund since May 2014. He joined Franklin Templeton Investments in 2010. Prior to joining Franklin Templeton Investments he served as an equity analyst with Systematic Financial where he conducted company-specific research spanning the market capitalization spectrum. He was a portfolio assistant with Scudder, Stevens and Clark and an analyst with Stein Roe Farnham, where he conducted fundamental research coverage on the technology sector.
DONALD G. TAYLOR, CPA Chief Investment Officer of Advisory Services
Mr. Taylor has been a portfolio manager of the All Cap Value Fund, Large Cap Value Fund, MidCap Value Fund and Small Cap Value Fund since inception and of the Balance Sheet Fund and MicroCap Value Fund since 1996. He joined Franklin Templeton Investments in 1996.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
The following individuals are jointly responsible for the day-to-day management of the Funds:
All Cap Value Fund
Steven B. Raineri. Mr. Raineri has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time.
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Bruce C. Baughman. Mr. Baughman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
William J. Lippman. Mr. Lippman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Balance Sheet Fund
Bruce C. Baughman and Grace Hoefig. As co-lead portfolio managers, Mr. Baughman and Ms. Hoefig have equal authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which each portfolio manager may perform these functions, and the nature of these functions, may change from time to time.
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
William J. Lippman. Mr. Lippman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Large Cap Value Fund
William J. Lippman. Mr. Lippman has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time.
Jakov Stipanov. Mr. Stipanov is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Bruce C. Baughman. Mr. Baughman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
MicroCap Value Fund
Bruce C. Baughman. Mr. Baughman has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time.
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
William J. Lippman. Mr. Lippman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
MidCap Value Fund
Samuel R. Kerner. Mr. Kerner has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time.
Jakov Stipanov. Mr. Stipanov is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
William J. Lippman. Mr. Lippman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Small Cap Value Fund
Steven B. Raineri. Mr. Raineri has primary responsibility for the investments of the Fund. He has final authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time.
Donald G. Taylor. Mr. Taylor is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
Bruce C. Baughman. Mr. Baughman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
William J. Lippman. Mr. Lippman is a portfolio manager of the Fund, providing support to the lead portfolio manager(s) as needed.
The Fund’s SAI provides additional information about portfolio manager compensation, other accounts that they manage and their ownership of Fund shares.
XIV. For all Funds offering Class R6 shares, effective May 1, 2014, the “Your Account – Choosing a Share Class - Qualified Investors - Class R6” section is revised as follows:
Qualified Investors - Class R6
Class R6 shares are available to the following investors:
· Employer Sponsored Retirement Plans where plan level or omnibus accounts are held on the books of Franklin Templeton Investor Services.
· Endowments; foundations; local, city and state governmental institutions; corporations; non-profit organizations that are organized as corporations; and insurance companies, (collectively “institutional investors”) when purchasing directly from a Fund. The minimum initial investment for institutional investors is $1,000,000 per Fund.
• Other Franklin Templeton funds and funds for which Franklin Templeton investment managers provide advisory or subadvisory services.
XV. For all Funds, the “Your Account – Buying Shares - By Phone/Online” section lead-in is revised as follows:
By Phone/Online
(800) 632‑2301
franklintempleton.com
Note: certain account types are not available for online account access.
Please keep this supplement with your prospectus for future reference.