Filed by Franklin Investors
                                                Securities Trust, on behalf
                                                Franklin Floating Rate Daily
                                                Access Fund
                                                Pursuant to Rule 425 under the
                                                Securities Act of 1933

                                                Subject Company: Franklin
                                                Floating Rate Trust
                                                Commission File No. 811-08271

                                                San Mateo, CA 94403-1906

                                                tel 650/312.2000

For more information, please contact Franklin Templeton Investments at
1-800/342-5236. Members of the media should contact Matt Walsh at Franklin
Templeton Corporate Communications at 650/312-2245.
                                                FOR IMMEDIATE RELEASE


   SAN MATEO, Calif.--(BUSINESS WIRE)--Dec. 23, 2004--Franklin Floating Rate
   Trust (XFFLX) ("Floating Rate Trust"), a registered closed-end investment
   company, announced today that as of the close of market on January 18, 2005,
   Franklin Floating Rate Trust will close to all new investors.

   The closure is related to the Trust's December 7, 2004 announcement that its
   Board of Trustees had approved a proposal providing for the reorganization of
   Floating Rate Trust into Franklin Floating Rate Daily Access Fund ("Daily
   Access Fund"), a series of Franklin Investors Securities Trust, a registered
   open-end investment company.

   Floating Rate Trust 's Board of Trustees plans to submit the proposed
   reorganization of Floating Rate Trust into Daily Access Fund to Floating Rate
   Trust 's shareholders at a Special Meeting of Shareholders currently
   scheduled for May 18, 2005. Any solicitation of proxies by Floating Rate
   Trust in connection with its shareholder meeting will be made only pursuant
   to separate proxy materials filed under federal securities laws. It is
   anticipated that these materials will be available in March 2005. There can
   be no assurances that the shareholders of Floating Rate Trust will vote in
   favor of the proposed reorganization.

   Existing Floating Rate Trust shareholders may continue to make investments in
   the fund until close of market on May 18, 2005, the scheduled date of the
   shareholders meeting.

   Franklin Floating Rate Trust is managed by Franklin Advisers, Inc., a wholly
   owned subsidiary of Franklin Resources, Inc. (NYSE:BEN), a global investment
   management organization operating as Franklin Templeton Investments. Franklin
   Templeton Investments provides global and domestic investment management
   solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary
   Trust investment teams. The San Mateo, CA-based company has more than 50
   years of investment experience and over $388 billion in assets under
   management as of November 30, 2004. For more information, please call
   1-800/DIAL BEN(R) or visit

   Floating Rate Trust's shareholders are advised to read the prospectus/proxy
   statement and other proxy materials when they are available as they contain
   important information. The prospectus/proxy statement, when it is available,
   and other documents filed by Daily Access Fund, will be available for free at
   the SEC's website ( or by calling Daily Access Fund at