advisormonthly - Franklin Templeton Investments

Global Fixed Income January 31, 2014Templeton Global Bond Fund (Hedged)TempletonINVESTMENT OBJECTIVE & STRATEGYThe fund seeks to achieve high current income withcapital appreciation by investing substantially all of itsassets in units of Templeton Global Bond Fund (the"Underlying Fund"). The fund invests in derivatives toattempt to eliminate the impact of currency fluctuationsbetween the U.S. and Canadian dollars.MORNINGSTAR CATEGORYGlobal Fixed IncomePORTFOLIO MANAGERSMichael HasenstabSonal DesaiFUND FACTS 219 Years, California, United States20 Years, California, United StatesPrice per Unit $9.76Yield to Maturity 3.42%Weighted Average MaturityDuration2.4 Years1.4 YearsYield to Worst 3.42%Duration to Worst1.4 YearsAssets of the Fund $57,225,284Distributions Interest income paid quarterly 3,4Inception Date 08/19/2013Positions 2 154BenchmarkJPM Global GBI Traded (Hedged to CAD)1 Awards presented to Templeton Global Bond Fund Series A.2 The Fund’s performance is linked to the performance of units invested in Templeton GlobalBond Fund (the Underlying Fund). The holdings listed are an outline of the investmentsheld in the Underlying Fund. The Fund holds forward contracts to hedge as completely aspossible against fluctuations caused by changes in exchange rates between the U.S. andCanadian dollars.3 Target distributions are not guaranteed and may change at the discretion of FranklinTempleton Investments. The Fund may also pay capital gains in December if required.4 Please see detailed definitions at www.franklintempleton.ca/define.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 3712Series A DSC 3714Series A Low Load 3713Series F 3715Series I 3716Series O 3717REASONS TO INVEST IN THIS FUND:• Referencing a winner. Templeton Global Bond Fund (Hedged) references the performance of TempletonGlobal Bond Fund, which was named the Best Global Fixed Income Fund at the Canadian InvestmentAwards in 2007, 2008, 2009, 2010 and 2011 and the Lipper Fund Awards Canada in 2009, 2010 and 2011,over 5 and 10 years. 1• Diversification. Global fixed income offers investors an attractive option for overall portfolio diversificationthrough low correlations with other major asset classes.• Flexibility beyond borders. Having the flexibility to invest globally in any country or currency, includingemerging markets, allows the global bond investment team to take advantage of prevailing macroeconomictrends, opportunities in interest rates, currencies and sovereign credit to create a competitive advantage.• Currency hedge benefits. Templeton Global Bond Fund can invest in any currency but transacts primarily inU.S. dollars. The US $-CDN $ hedge used by Templeton Global Bond Fund (Hedged) is expected to reducepotential currency exchange risk and is designed to attempt to deliver U.S. investor-equivalent performanceto Canadian investors.• Active Management. The team seeks opportunities across three independent sources of alpha: interest rates,currencies and sovereign credit.Compounded Returns and Category Returns in Canadian Dollars (%) 2YTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A -2.21 -2.21 -2.90 n/a n/a n/a n/a n/a -0.01Category Average Return 2.99 2.99 3.14 n/a n/a n/a n/a n/a 6.22Source: Morningstar Research Inc.HOLDINGS^ Fund inception dateTop Country Weightings (% of Total) 2South Korea 10.33Ireland 9.51Mexico 9.47Sweden 7.90Poland 7.69Singapore 6.06Malaysia 5.58Brazil 4.69Others 19.66Cash & Cash Equivalents 19.11Top Holdings (%) 2Government of Sweden, 6.75%, 5/05/14 4.66Government of Mexico, 9.50%, 12/18/14 3.47Government of Canada, 1.00%, 11/01/14 2.88Government of Ireland, 5.90%, 10/18/19 2.78Government of Ireland, 5.00%, 10/18/20 2.34Korea Monetary Stabilization Bond, Senior Note,2.90%, 12/02/15 2.22Government of Poland, 5.75%, 4/25/14 2.10Korea Monetary Stabilization Bond, Senior Note,2.74%, 2/02/15 2.05Kommuninvest I Sverige AB, 2.25%, 5/05/14 1.46Government of Poland, Strip, 1/25/16 1.41Duration (%)0 to 1 Year 57.811 to 2 Years 10.612 to 3 Years 5.533 to 5 Years 8.655 to 7 Years 12.757 to 10 Years 1.7410 to 15 Years 0.2915 to 20 Years -1.67Offset Derivatives 4.28Bond Ratings (%) 2AAA 21.83 BB 5.15AA 12.61 B 2.08A 28.16 CCC 3.72BBB 26.443712 FFE 011416 advisormonthly FRANKLIN TEMPLETON INVESTMENTS For Dealer Use Only. Not For Distribution to the Public.