GOF SA-5
GOF SAA-1

                       SUPPLEMENT DATED FEBRUARY 23, 2004
               TO THE CURRENTLY EFFECTIVE STATEMENT OF ADDITIONAL
                     INFORMATION OF EACH OF THE LISTED FUNDS

FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.

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, INC.
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 FLOATING RATE TRUST

FRANKLIN GOLD AND PRECIOUS METALS FUND

FRANKLIN GLOBAL TRUST
Fiduciary European Smaller Companies Fund
Fiduciary Large Capitalization Growth and
 Income Fund
Fiduciary Small Capitalization Equity Fund
Fiduciary Core Fixed Income Fund
Fiduciary Core Plus Fixed Income Fund
Fiduciary High Income Fund
Franklin Global Aggressive Growth Fund
Franklin Global Growth Fund
Franklin International Smaller Companies
 Growth Fund

FRANKLIN HIGH INCOME TRUST
AGE High Income 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 MUTUAL RECOVERY 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 Aggressive Growth Fund
Franklin Biotechnology Discovery Fund
Franklin Blue Chip Fund
Franklin Flex Cap Growth Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Natural Resources Fund
Franklin Small-Mid Cap Growth Fund
Franklin Small Cap Growth Fund II
Franklin Strategic Income Fund
Franklin Technology Fund
Franklin U.S. Long-Short 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 Conservative Target Fund
Franklin Templeton Corefolio Allocation Fund
Franklin Templeton Founding Funds
 Allocation Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund

INSTITUTIONAL FIDUCIARY TRUST
Franklin Structured Large Cap Core Equity Fund
Franklin Structured Large Cap Growth
 Equity Fund

TEMPLETON CHINA WORLD FUND

TEMPLETON DEVELOPING MARKETS TRUST

TEMPLETON FUNDS, INC.
Templeton Foreign Fund
Templeton World Fund

TEMPLETON GLOBAL INVESTMENT TRUST
Franklin Templeton Non-U.S. Dynamic Core
 Equity Fund
Templeton International (Ex EM) Fund

TEMPLETON GLOBAL OPPORTUNITIES TRUST

TEMPLETON GLOBAL SMALLER COMPANIES FUND

TEMPLETON GROWTH FUND, INC.

TEMPLETON INSTITUTIONAL FUNDS, INC.
Emerging Fixed Income Markets Series
Emerging Markets Series
Foreign Equity Series - Primary Shares
Foreign Smaller Companies Series
Franklin Templeton Non-U.S. Core Equity Series

TEMPLETON INCOME TRUST
Templeton Global Bond Fund






The Statement of Additional Information is amended as follows:

I. FOR ALL FUNDS:

THE "GENERAL  INFORMATION"  SECTION IS EXPANDED TO ADD, OR THE PARAGRAPH
BEGINNING  WITH "FOR  INSTITUTIONAL  ACCOUNTS,  THERE MAY BE  ADDITIONAL
METHODS..." IS REPLACED WITH THE FOLLOWING:

 For institutional  accounts,  there may be additional methods of buying
 or  selling  Fund  shares  than those  described  in this SAI or in the
 prospectus.  Institutional  accounts  include  accounts opened by or in
 the name of a person  (includes a legal entity or an  individual)  that
 has signed an Institutional  Account  Application  accepted by Franklin
 Templeton  Institutional,  LLC  or  entered  into a  selling  agreement
 and/or  servicing  agreement with  Distributors  or Investor  Services.
 For  example,  the Fund permits the owner of an  institutional  account
 to make a same day wire  purchase if a good order  purchase  request is
 received  (a) before the close of the New York  Stock  Exchange  (NYSE)
 or  (b)  through  the  National   Securities   Clearing   Corporation's
 automated  system for  processing  purchase  orders  (Fund/SERV),  even
 though  funds are  delivered  by wire  after the close of the NYSE.  If
 funds to be wired are not received as  scheduled,  the  purchase  order
 may be  cancelled  or  reversed  and the  institutional  account  owner
 could be liable  for any losses or fees the Fund,  Distributors  and/or
 Investor Services may incur.

II. FOR  ALL FUNDS,  EXCEPT FOR FUNDS THAT DO NOT HAVE AN INITIAL  SALES
CHARGE:

Replace the first paragraph under the section  "Pricing Shares" with the
following:

 When you buy shares,  you pay the "offering price" for the shares.  The
 "offering  price" is  determined  by  dividing  the net asset value per
 share (NAV) by an amount equal to 1 minus the sales  charge  applicable
 to the purchase  (expressed  in  decimals),  calculated  to two decimal
 places  using  standard  rounding  criteria.  The number of Fund shares
 you will be  issued  will  equal the  amount  invested  divided  by the
 applicable  offering  price  for  those  shares,  calculated  to  three
 decimal places using standard rounding  criteria.  For example,  if the
 NAV per  share  is  $10.25  and the  applicable  sales  charge  for the
 purchase is 5.75%,  the offering  price would be calculated as follows:
 10.25  divided by 1.00 minus  0.0575  [10.25/0.9425]  equals  10.87533,
 which,  when rounded to two decimal points,  equals 10.88. The offering
 price per share  would be $10.88.  When you sell  shares,  you  receive
 the NAV minus any applicable CDSC.

III. IN  THE  APPLICABLE  STATEMENT  OF  ADDITIONAL   INFORMATION,   FOR
FRANKLIN  STRATEGIC SERIES (FRANKLIN  AGGRESSIVE  GROWTH FUND,  FRANKLIN
FLEX CAP GROWTH  FUND,  FRANKLIN  SMALL CAP GROWTH FUND II AND  FRANKLIN
SMALL-MID CAP GROWTH FUND) ONLY:

(A) THE EIGHTH PARAGRAPH IN THE  "DISTRIBUTION AND SERVICE (12B-1) FEES"
SECTION BEGINNING ON PAGE 41 IS REPLACED WITH THE FOLLOWING:

 The  Small Cap Fund II pays  Distributors  up to 1% per year of Class B
 and  Class C's  average  daily net  assets,  out of which  0.25% may be
 paid for service fees.  For Class R shares,  the Small Cap Fund II pays
 Distributors  up to 0.50%  per year of the  class's  average  daily net
 assets.  The  Class  B,  C  and  R  plans  also  may  be  used  to  pay
 Distributors  for  advancing  commissions  to  securities  dealers with
 respect to the  initial  sale of Class B, C and R shares.  Class B plan
 fees  payable to  Distributors  are used by  Distributors  to pay third
 party financing  entities that have provided  financing to Distributors
 in  connection  with  advancing   commissions  to  securities  dealers.
 Resources  owns  a  minority   interest  in  one  of  the  third  party
 financing entities.

(B) THE  TABLES  SETTING FORTH THE 12B-1 FEES PAID BY THE FUNDS PURSUANT
TO THE PLANS ON PAGE 42 ARE REPLACED AS FOLLOWS:

 Under the Class A plans,  the  amounts  paid by the Funds  pursuant  to
 the plans for the fiscal year ended April 30, 2003, were:

                                       AGGRESSIVE
                                         GROWTH  FLEX CAP SMALL CAPSMALL-MID
                                          FUND     FUND    FUND II CAP FUND
                                           ($)      ($)      ($)      ($)
- --------------------------------------------------------------------------------
 Advertising ..........................   9,126   40,615   40,939   141,196
 Printing and mailing prospectuses other than to
  current shareholders ................   7,818    7,466    2,168     7,749
 Payments to underwriters .............   7,895   19,137   26,282    57,148
 Payments to broker-dealers ........... 169,542 2,527,039 1,901,595 14,088,206
 Other ................................  22,230   71,346   28,626   337,461
- --------------------------------------------------------------------------------
 Total ................................ 216,611 2,665,603 1,999,610 14,631,760
- --------------------------------------------------------------------------------

 Under the Class B plans,  the  amounts  paid by the Funds  pursuant  to
 the plans for the fiscal year ended April 30, 2003, were:

                                       AGGRESSIVE
                                         GROWTH   FLEX CAPSMALL CAP SMALL-MID
                                          FUND      FUND   FUND II  CAP FUND
                                           ($)       ($)     ($)       ($)
- --------------------------------------------------------------------------------
 Advertising ..........................   1,343    7,954      257       347
 Printing and mailing prospectuses other than to
  current shareholders ................     922    1,381       53        --
 Payments to underwriters .............     668    5,593      189       329
 Payments to broker-dealers ........... 131,478  889,006  1,038,447    29,651
 Other ................................   2,187   14,718      768       434
- --------------------------------------------------------------------------------
 Total ................................ 136,598  918,652  1,039,714    30,761
- --------------------------------------------------------------------------------

 Under the Class C plans,  the  amounts  paid by the Funds  pursuant  to
 the plans for the fiscal year ended April 30, 2003, were:

                                       AGGRESSIVE
                                         GROWTH  FLEX CAP SMALL CAP SMALL-MID
                                          FUND     FUND    FUND II  CAP FUND
                                           ($)      ($)      ($)       ($)
- --------------------------------------------------------------------------------
 Advertising ..........................   2,093   14,930      547    56,824
 Printing and mailing prospectuses other than to
  current shareholders ................   1,618    3,331      717     3,465
 Payments to underwriters .............     885    8,883      825    22,677
 Payments to broker-dealers ........... 269,296  2,211,549  1,802,394 6,679,001
 Other ................................   3,488   29,638    1,384    87,868
- --------------------------------------------------------------------------------
 Total ................................ 277,380  2,268,331 1,805,867  6,849,835
- --------------------------------------------------------------------------------

 Under the Class R plans,  the  amounts  paid by the Funds  pursuant  to
 the plans for the fiscal year ended April 30, 2003, were:

                                       AGGRESSIVE
                                         GROWTH   FLEX CAPSMALL CAP SMALL-MID
                                          FUND      FUND   FUND II  CAP FUND
                                           ($)       ($)     ($)       ($)
- --------------------------------------------------------------------------------
 Advertising ..........................      48      715      131     2,123
 Printing and mailing prospectuses other than to
  current shareholders ................       4        9       --         1
 Payments to underwriters .............      71    1,537      200     1,663
 Payments to broker-dealers ...........   1,134   22,160    7,244    27,831
 Other ................................     137    2,172      208     2,821
- --------------------------------------------------------------------------------
 Total ................................   1,394   26,593    7,783    34,439
- --------------------------------------------------------------------------------


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