103 STKP
410 STKP

                         SUPPLEMENT DATED APRIL 21, 1998
                             TO THE PROSPECTUSES OF

                     Templeton Global Smaller Companies Fund
                        Templeton Global Real Estate Fund
                              dated January 1, 1998

The prospectus is amended as follows:

I. The following paragraph is added to the end of the section "Group Purchases -
Class I Only" found under "How Do I Buy Shares?  - Sales Charge  Reductions  and
Waivers":

  A qualified group does not include a 403(b) plan that only allows salary
  deferral contributions. 403(b) plans that only allow salary deferral
  contributions and that purchased Class I shares of the Fund at a reduced sales
  charge under the group purchase privilege before February 1, 1998, however,
  may continue to do so.

II. The section "Retirement Plans," found under "How Do I Buy Shares? - Sales
Charge Reductions and Waivers," is replaced in its entirety with the following:

  Retirement Plans. Retirement plans that (i) are sponsored by an employer with
  at least 100 employees, or (ii) have plan assets of $1 million or more, or
  (iii) agree to invest at least $500,000 in the Franklin Templeton Funds over a
  13 month period may buy Class I shares without a front-end sales charge.
  Retirement plans that are not Qualified Retirement Plans, SIMPLEs or SEPs must
  also meet the requirements described under "Group Purchases - Class I Only"
  above to be able to buy Class I shares without a front-end sales charge. We
  may enter into a special arrangement with a Securities Dealer, based on
  criteria established by the Fund, to add together certain small Qualified
  Retirement Plan accounts for the purpose of meeting these requirements. For
  retirement plan accounts opened on or after May 1, 1997, a Contingent Deferred
  Sales Charge may apply if the retirement plan is transferred out of the
  Franklin Templeton Funds or terminated within 365 days of the retirement plan
  account's initial purchase in the Franklin Templeton Funds. Please see "How Do
  I Sell Shares? - Contingent Deferred Sales Charge" for details. Any retirement
  plan that does not meet the requirements to buy Class I shares without a
  front-end sales charge and that was a shareholder of the Fund on or before
  February 1, 1995, may buy shares of the Fund subject to a maximum sales charge
  of 4% of the Offering Price, 3.2% of which will be retained by Securities
  Dealers.

III. The following  replaces the second paragraph under "How Do I Sell Shares? -
Contingent Deferred Sales Charge": Certain retirement plan accounts opened on or
after May 1, 1997,  and that  qualify to buy Class I shares  without a front-end
sales  charge may also be subject to a Contingent  Deferred  Sales Charge if the
retirement plan is transferred out of the Franklin Templeton Funds or terminated
within 365 days of the  account's  initial  purchase in the  Franklin  Templeton
Funds.

IV. The  following  definitions  are  revised or added,  as  applicable,  to the
"Useful Terms and Definitions" section: Contingency Period - For Class I shares,
the 12 month period during which a Contingent  Deferred  Sales Charge may apply.
For Class II shares,  the  contingency  period is 18 months.  The holding period
begins on the day you buy your  shares.  For  example,  if you buy shares on the
18th of the month, they will age one month on the 18th day of the next month and
each following month.  SIMPLE (Savings  Incentive Match Plan for Employees) - An
employer  sponsored salary deferral plan established under section 408(p) of the
Code.