investment policy statement - Franklin Templeton Investments

Franklin Quotential ® Portfolios 

PREPARED EXCLUSIVELY FOR:_____________________________________ 

PREPARED BY:___________________________________________________ 

INVESTMENT POLICY STATEMENT 

FRANKLIN QUOTENTIAL DIVERSIFIED EQUITY PORTFOLIO * 

As of December 31, 2013 

* Formerly Franklin Quotential Global Growth Portfolio

franklin quotential diversified equity portfolio 

INVESTMENT POLICY STATEMENT PREPARED EXCLUSIVELY FOR: 

INTRODUCTION 

This document provides you with a comprehensive description of Franklin Quotential ® Portfolios and includes an analysis 

of the specific Portfolio you and your investment advisor have selected to attain your primary investment objectives. 

Within this Investment Policy Statement you will find: 

• A description of the Portfolio Manager’s process and underlying mandate managers 

• The investment philosophy and risk level for your chosen Portfolio 

• Portfolio holdings and levels of diversification for your chosen Portfolio 

As your investment objectives may evolve over time, we recommend that you schedule regular reviews of this Investment 

Policy Statement with your investment advisor. 

Thank you for choosing Franklin Quotential Portfolios. We appreciate the opportunity to partner with you in achieving 

your goals. 

Franklin Templeton Investments 

CONFIDENTIAL Franklin Templeton Investments 2



PORTFOLIO INVESTMENT PHILOSOPHY 

You have identified long-term capital appreciation as your primary investment objective. To help you attain this goal, 

we recommend Franklin Quotential Diversified Equity Portfolio. This Portfolio offers global diversification by investing 

primarily in a diversified mix of equity mutual funds and gives you access to growing markets and investment opportunities 

that may otherwise be overlooked. 

Franklin Quotential Diversified Equity Portfolio is also available in Corporate Class-Series T 1 , which allows you to enhance 

your current and future tax efficiency for both income and capital gains. 

YOUR PORTFOLIO’S RISK/RETURN PROFILE: GROWTH 

100 

20 20 

80 

80 

100 100 

Growth Portfolio 

Diversified Equity Portfolio 

Franklin Quotential Diversified 

Equity Portfolio will have, under 

normal market conditions, an 

optimal asset mix of 90-100% 

equities and 0-10% fixed income. 

60 

60 

40 

40 

Balanced Growth Portfolio 

Expected Growth 2 

15 

15 

85 

85 

40 60 

40 60 

Balanced Income Portfolio 

Diversified Income Portfolio 

Expected Risk 2 Equities Fixed Income 

1. Series T distributions are in the form of return of capital (ROC). ROC reduces the adjusted cost base (ACB) of the investment. Once the ACB has been depleted, any further cash flow is taxable 

as a capital gain. 2. In relation to other Franklin Quotential Portfolios. 




THE PORTFOLIO MANAGER 

Franklin Quotential Portfolios are powered by a select team of wealth management specialists with more than 25 years of 

experience managing assets for retail and institutional investors across Canada. 

A strategic and tactical active management process provides the flexibility to make nimble, proactive decisions to ensure that 

your Portfolio is always appropriately diversified and positioned to capture the best and most timely market opportunities. 

FRANKLIN QUOTENTIAL PORTFOLIOS INVEST IN A WIDE SELECTION OF INVESTMENT MANDATES 

WITH UNIQUE INVESTMENT-STYLE EXPERTISE AND EXPERIENCE 

FRANKLIN 

TEMPLETON 

FRANKLIN 

MUTUAL SERIES 

FRANKLIN 

BISSETT 

GROWTH/BLEND VALUE DEEP VALUE GARP 

FTFIG 3 

• More than 40 years 

of experience 

in global equity 

investing 

• Over 60 years of 

experience in US 

equity investing 

• Over 60 investment 

professionals 

across the 

world, seeking 

opportunities for 

growth and blend 

mandates 

• A pioneer in 

global investing, 

with a proven 

track record 

spanning over 

60 years 

• Over 70 “feeton-the-street” 

investment 

specialists in 

19 countries 

• Value specialists, 

seeking bargain 

investments 

in global and 

emerging markets 

• Distinct, deep 

value investment 

style has 

delivered solid, 

risk-adjusted 

returns for more 

than 60 years 

• Equity 


strategy seeks 

to purchase 

opportunities for 

50–60 cents on 

the dollar 

• Specialized 

teams dedicated 

to uncovering 

undervalued 

stocks, distressed 

securities and 

merger arbitrage 

opportunities 

• Canadian equity, 

balanced and 

fixed income 

capabilities 

• A solid 25-year 

track record in 

the retail, HNW 

and institutional 


spheres 

• “Growth at a 

Reasonable 

Price” (GARP) 


style positions 

investors for 

consistent, 

long-term equity 

returns 

• 60-plus years 

of global 

fixed income 

experience 

• Top-down, 

bottom-up and 

quantitative 

approaches 

• More than 

135 dedicated 


professionals 

located around 

the globe in a 

multi-sector, 

integrated 

platform 

3. Franklin Templeton Fixed Income Group, a business unit of Franklin Templeton Investments Corp., combines the expertise of the Franklin Advisors, Inc., and Fiduciary Trust Company International 

fixed income teams. 




FRANKLIN QUOTENTIAL DIVERSIFIED EQUITY PORTFOLIO HOLDINGS 

Franklin Quotential Portfolios are structured for broad exposure to each asset class. The Portfolios include: Canadian mutual 

funds, sub-advised funds, Luxembourg-based SICAVs* and ETFs for targeted allocation exposure. The result is diversification 

with minimal investment duplication. 

Total Amount Invested: 

Total 

CASH CDN EQ. 

US EQUITY 

4.0% % Canadian Equity 

n 4.0 Franklin Bissett All Canadian Focus Fund † 

17.8% % US Equity 

n 5.9 Franklin Flex Cap Growth Fund 

n 4.1 Franklin U.S. Core Equity Fund 

n 3.9 Franklin U.S. Rising Dividends Fund 

n 2.1 iShares Russell 1000 Value Index Fund 

n 1.8 Franklin Mutual Beacon Fund † 

75.1% % International Equity 

n 15.6 Franklin World Growth Fund 

INTERNATIONAL EQUITY 

n 12.7 Franklin Mutual Global Discovery Fund † 

n 12.3 Templeton International Stock Fund 

n 6.6 Templeton Global Smaller Companies Fund 

n 6.1 iShares MSCI Japan ETF 

n 5.8 FTIF Franklin Mutual European Fund* 

n 4.1 Templeton Asian Growth Fund 

n 3.3 SPDR Euro Stoxx 50 ETF 

n 2.3 FTIF Franklin European Small-Mid Cap Growth Fund* 

n 2.0 FTIF Franklin Templeton Japan Fund* 

n 1.3 iShares MSCI United Kingdom ETF 

n 1.2 Templeton Frontier Markets Fund 

n 1.1 iShares MSCI Mexico Capped ETF 

n 0.9 iShares MSCI Japan Small-Cap ETF 

3.1% % Cash and Other Assets 

n 3.1 Cash and Other Assets 

Portfolio holdings as of December 31, 2013. Values may not total 100% due to rounding. 

*Franklin Templeton Investment Funds (FTIF) are Luxembourg SICAVs and are not available for direct purchase in Canada. Société d’Investissement à Capital Variable (SICAV) is an open-end 

investment company governed by the laws of Luxembourg. 

†Effective July 29, 2013, this fund underwent a name change. For details, please visit franklintempleton.ca/namechanges. 




PORTFOLIO HOLDINGS AND LEVELS OF DIVERSIFICATION 

Your Diversified Equity Portfolio is designed to deliver multiple layers of diversification. Diversification may reduce risk and 

help achieve more consistent returns by spreading investments across asset classes, economic sectors, geographic regions, 

market capitalizations and investment styles. 

OTHER ASSETS 

EQUITY 

93.9% % Equity 

n 19.9 Financials 

n 13.1 Industrials 

n 12.8 Consumer Discretionary 

n 10.9 Information Technology 

n 9.9 Health Care 

n 8.1 Energy 

n 7.3 Materials 

n 6.7 Consumer Staples 

n 4.0 Telecommunication Services 

n 1.2 Utilities 

6.1% % Other Assets 

n 0.9 Corporate High Yield (Fixed Income) 

n 5.2 Cash & Other Net Assets 

Portfolio holdings as of December 31, 2013. Totals may not add to 100% due to rounding. 

Under normal market conditions, Franklin Quotential Diversified Equity Portfolio will have an optimal asset mix of 90-100% equities and 0-10% fixed income. The portfolio advisor may review 

and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of income and equity securities. 



THIS DOCUMENT REPRESENTS YOUR CURRENT INVESTMENT GOALS. 

Your customized Investment Policy Statement outlines your current investment profile, asset allocation and recommended 

Portfolio. Please keep in mind that the Portfolio selected is based on an assessment of your current circumstances, objective 

and tolerance for investment risk. 

As your investment advisor, I will continue to partner with you to keep your investment selection current should your needs 

or circumstances change. If you fully understand the nature of this investment and are in agreement that it is appropriate, 

please sign below. 

___________________________________________ _____________________________________ _________________ 

Name of Investor Signature Date 

___________________________________________ _____________________________________ _________________ 

Name of Investment Advisor Signature Date 


For more than six decades, individuals and institutions around the world have looked to Franklin Templeton Investments 

as a trusted partner in asset management. We leverage the expertise of multiple independent portfolio teams to 

deliver specialized expertise across a wide range of styles and asset classes. Our experts are on the ground in over 30 

countries, spotting investment ideas and potential risks firsthand. Collectively, they allow us to offer clients investment 

solutions shaped by local insight, global context and a long-term investment horizon. 

Franklin Templeton Investments Corp. 

5000 Yonge Street, Suite 900 

Toronto, ON M2N 0A7 

Fax: (416) 364-1163 

Client Services Toll-free: (800) 387-0830 

www.franklintempleton.ca 

Founding Member of The Canadian Coalition for Good Governance 

Canadian Offices: Calgary • Montreal • Toronto 

US Offices: Ft. Lauderdale • Fort Lee • Los Angeles • Miami • New York City • Norwalk • Rancho Cordova 

Salt Lake City • San Mateo Short Hills • St. Petersburg • Washington D.C. • Wilmington 

International Offices: Abu Dhabi • Amsterdam • Beijing • Brussels • Buenos Aires • Cape Town • Caracas 

Chennai • Dubai • Dublin • Edinburgh • Frankfurt • Geneva • Hong Kong • Hyderbad • Istanbul • Johannesburg 

London • Luxembourg • Madrid • Melbourne • Mexico City • Milan • Moscow • Mumbai • Nassau • Paris 

Poznan • Rio De Janeiro • Sao Paulo • Seoul • Shanghai • Singapore • Stockholm • Sydney • Taipei • Tokyo 

Vienna • Warsaw • Zurich 

NYSE: BEN 

201312190759 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual 

fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their 

values change frequently and past performance may not be repeated. Franklin Templeton Fixed Income 

Group, a business unit of Franklin Templeton Investments Corp., combines the expertise of the Franklin 

Advisors, Inc., and Fiduciary Trust Company International fixed income teams. Franklin Bissett Investment 

Management is a part of Franklin Templeton Investments Corp. 

© 2014 Franklin Templeton Investments Corp. All rights reserved. 

Franklin Quotential is a registered trademark owned by Franklin Templeton Investments Corp. 

QT IPSE 12/13_DE

investment policy statement - Franklin Templeton Investments

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