PROSPECTUS SUPPLEMENT
                           FRANKLIN GROUP OF FUNDS(R)
                            TEMPLETON GROUP OF FUNDS
                              DATED JULY 26, 1995

The section "Purchases at Net Asset Value" under "How to Buy Shares of the Fund"
of the Franklin  Templeton  Funds (as such term is defined in the Prospectus) is
modified in the following respects:

1. Substitute the following text for paragraph four:

         "Class I shares may be  purchased  at net asset  value and  without the
         imposition of a contingent deferred sales charge by investors who have,
         within the past 60 days,  redeemed an investment in a mutual fund which
         is not part of the  Franklin  Templeton  Funds  which was  subject to a
         front-end sales charge or a contingent  deferred sales charge and which
         has investment objectives similar to those of the Fund."

2. The period in which investors may reinvest at net asset value is increased to
365 days from 120 days.  This privilege  extends to  reinvestment  of redemption
proceeds,  dividends and capital gain distributions  initially paid in cash and,
for a taxable fund, any distributions from an existing  retirement account which
was already invested in the Franklin Templeton Funds,  including participants of
the Franklin Templeton Profit Sharing 401(k) plan.

Franklin Group of Funds(R)

Franklin New York Tax-Free Income Fund, Inc.,
dated October 1, 1994, as amended July 14, 1995

Franklin  Balance Sheet Investment Fund, dated March 1, 1995, as amended July 5,
1995

Franklin Natural Resources Fund, dated June 5, 1995

Franklin Custodian Funds, Inc.
(FCF - group  prospectus  for  Growth,  Utilities,  DynaTech,  Income  and  U.S.
Government  Securities  Series) and the separate  prospectuses for Income Series
and U.S.  Government  Securities Series (each dated February 1, 1995, as amended
June 1, 1995)

AGE High Income Fund, Inc., dated May 15, 1995

Franklin Federal Intermediate-Term Tax-Free Income Fund
Franklin Federal Tax-Free Income Fund
Franklin New York Insured Tax-Free Income Fund
Franklin New York Intermediate-Term Tax-Free Income Fund
Franklin Partners Funds(R)
(FPF - Franklin  Tax-Advantaged  International Bond, U.S. Government  Securities
and High Yield Securities  Funds) Franklin Premier Return Fund Franklin Tax-Free
Trust  (TF1  -  Insured,  Massachusetts  Insured,  Michigan  Insured,  Minnesota
Insured,  Ohio Insured,  Arizona  Insured and Florida  Insured  Tax-Free  Income
Funds) (each dated May 1, 1995)

Franklin  California  Tax-Free Income Fund,  Inc., dated August 1, 1994 Franklin
California  Insured  Tax-Free  Income Fund dated  November 1, 1994 Franklin Real
Estate  Securities  Fund,  dated  September 1, 1994 Franklin  Global  Government
Income Fund, dated March 1, 1995
Franklin Global Utilities Fund, dated September 1, 1994, as amended December 30,
1994

(each as amended May 1, 1995)

Franklin Adjustable Rate Securities Fund
Franklin Adjustable U.S. Government Securities Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin International Equity Fund
Franklin Short-Intermediate U.S. Government Securities Fund
Franklin Templeton German Government Bond Fund
Franklin Templeton International Currency Funds
(Global, Hard and High Income Currency Funds)
(each dated March 1, 1995)


Franklin California High Yield Municipal Fund,
dated October 1, 1994
Franklin  California  Growth Fund,  dated September 1, 1994, as amended November
11, 1994  Franklin  Global  Health Care Fund,  dated  September 1, 1994 Franklin
Investment Grade Income Fund, dated February 1, 1995 Frankln Corporate Qualified
Dividend  Fund,  dated  February 1, 1995  Franklin  Municipal  Securities  Trust
(Hawaii, Washington, Tennessee and Arkansas Municipal Bond Funds), dated October
1, 1994  Franklin  Strategic  Income  Fund  dated  December  30,  1994  (each as
supplemented February 1, 1995)

Franklin Strategic Mortgage Portfolio
dated February 1, 1995

Franklin Small Cap Growth Fund,  dated September 1, 1994, as amended February 1,
1995

(each as may be further amended and supplemented from time to time)

Templeton Group of Funds

Templeton Americas Government Securities Fund
dated July 10, 1995

Templeton Developing Markets Trust
Templeton Growth Fund
Templeton Income Fund
Templeton Smaller Companies Growth Fund, Inc.
(each dated May 1, 1995)

Templeton Real Estate Securities Fund
Templeton World Fund
dated May 1, 1995 (as previously supplemented on May 25, 1995)


Franklin Templeton Japan Fund
dated July 28, 1994 (as previously supplemented on May 25, 1995)

(each as may be further amended and supplemented from time to time)