PROSPECTUS SUPPLEMENT
                            FRANKLIN GROUP OF FUNDS(R)
                            TEMPLETON GROUP OF FUNDS
                              DATED JUNE 28, 1995

Supplement  to the sales  charge  table in the section "How to Buy Shares of the
Fund(s)" of the prospectuses for the Franklin Templeton Funds which follow:

For the period through October 31, 1995, Franklin Templeton  Distributors,  Inc.
("Distributors"),  the principal underwriter of the above funds, will reallow to
the securities firms of BA Investment Services or Seafirst Investment  Services,
Inc.,  one-half of  Distributors  net  underwriting  commission  with respect to
purchases of any of the listed funds  originated  by BA  Investment  Services or
Seafirst  Investment  Services,   Inc.  For  example  if  the  net  underwriting
commission  retained by  Distributors on a total sales charge of 4.50% is 0.50%,
an  additional  0.25% will be  reallowed to BA  Investment  Services or Seafirst
Investment Services, Inc.

FRANKLIN GROUP OF FUNDS(R)
Franklin Federal Intermediate 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) (TF2 - Alabama, Florida, Georgia, Kentucky,  Louisiana,  Maryland,
Missouri,  North  Carolina,  Texas and Virginia  Tax-Free  Income  Funds) (TF3 -
Arizona, Colorado, Connecticut, Indiana, New Jersey, Ohio, Oregon, Pennsylvania,
Puerto Rico and High Yield 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, 1995 Franklin Equity
Fund, dated November 1, 1994 Franklin Gold Fund, dated December 1, 1994 Franklin
New York Tax-Free Income Fund,  Inc., dated October 1, 1994 Franklin Real Estate
Securities  Fund,  dated September 1, 1994 Franklin Rising Dividends Fund, dated
February 1, 1995 each as amended May 1, 1995

Franklin Custodian Funds, Inc.
(FCF -  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

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

Age High Income Fund Fund, Inc., dated May 15, 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  Corporate  Qualified  Dividend  Fund,  dated February 1, 1995
Franklin  Global  Health Care Fund,  dated  September  1, 1994  Franklin  Global
Utilities  Fund dated  September 1, 1994, as amended  December 30, 1994 Franklin
Investment  Grade  Income  Fund,  dated  February  1,  1995  Franklin  Municipal
Securities  Trust  (Hawaii,  Washington,  Tennessee and Arkansas  Municipal Bond
Funds),  dated October 1, 1994 Franklin Small Cap Growth Fund dated September 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  California  Intermediate-Term  Tax-Free Income Fund, dated November 1,
1994, as amended March 17, 1995

Franklin Natural Resources Fund, dated June 5, 1995

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

TEMPLETON GROUP OF FUNDS Templeton  Developing  Markets Trust Templeton  Foreign
Fund Templeton Growth Fund Templeton Global Infrastructure Fund Templeton Global
Opportunities Trust Templeton Global Rising Dividends Fund Templeton Income Fund
Templeton Smaller Companies Growth Fund, Inc.
dated May 1, 1995

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

Templeton Americas Government Securities Fund dated June 27, 1994 (as previously
supplemented on April 6, 1995)

Franklin Templeton Japan Fund
dated July 28, 1994 (as previously  supplemented on January 25, 1995,  April 15,
1995 and May 25, 1995)

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