advisormonthly - Franklin Templeton Investments

Global Balanced January 31, 2014Franklin Income Hedged Corporate ClassFranklinINVESTMENT OBJECTIVE & STRATEGYThe fund seeks to maximize income, while maintainingprospects for capital appreciation, by investing in adiversified portfolio of dividend-paying stocks, bondsand convertible securities.MORNINGSTAR CATEGORYGlobal Neutral BalancedPORTFOLIO MANAGERSEdward D. PerksMatt QuinlanAlex W. Peters21 Years, California, United States19 Years, California, United States22 Years, California, United StatesFUND FACTSPrice per Unit $10.62Yield to Maturity 6.10%Weighted Average MaturityDuration6.8 Years5.7 YearsYield to Worst 5.84%Duration to Worst5.4 YearsAssets of the Fund $3,467,684 1Inception Date 06/28/2013Positions 2 132Benchmark50% S&P 500, 50% Barclays U.S. AggregateIndex1 Inclusive of trust and corporate class versions where applicable.2 The holdings listed are an outline of the investments held in the Reference Fund (FranklinIncome Fund) as a percentage of its net assets.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESCORPORATE CLASS CDN$ US$Series A Front 3684Series A DSC 3686Series A Low Load 3685Series F 3687Series I 3688Series O 3689Series R 3690Series S 3691Series T Front 3692Series T DSC 3694Series T Low Load 3693REASONS TO INVEST IN THIS FUND:• Flexible and opportunistic investment approach. The fund has no formal targets on the equity and fixedincome allocation and looks opportunistically across the capital structure to focus on investment opportunitiesthat offer the most compelling risk-reward profiles.• Consistent monthly dividend and superior yield. The U.S. fund has delivered consistent monthly dividend forover 60 years and has sported one of the highest yields among its peers.• Strong long-term performance. Stability of the investment team and its approach has led to attractive longtermrisk-adjusted investment results in multiple time frames.• Experienced management team. Lead manager Ed Perks has managed the U.S. fund since 2002.• Tax efficiency. The Fund allows investors the flexibility to make switches among Corporate Class investmentswithout triggering a taxable event--capital gains taxes are deferred until you redeem from the Corporate Classstructure.• Reduced currency risk. The Fund invests in derivatives to reduce the impact of currency fluctuations betweenthe U.S. and Canadian dollars.Compounded Returns and Category Returns in Canadian Dollars (%)YTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A -0.75 -0.75 1.05 4.22 n/a n/a n/a n/a 5.99Category Average Return 1.06 1.06 3.48 7.93 n/a n/a n/a n/a 9.45Source: Morningstar Research Inc.HOLDINGSTop Country Weightings (% Equity)^ Fund inception dateUnited States 88.42United Kingdom 4.99Canada 2.73Switzerland 1.83France 1.50Hong Kong 0.53Top Holdings (%)Wells Fargo & Co 1.83Exxon Mobil Corp 1.80Tenet Healthcare Corp 1.63Verizon Inc 1.63HCA Inc 1.62JPMorgan Chase & Co. 1.45Bank of America Corp 1.39Intel Corp 1.39Sprint Nextel Corp 1.39NCR Corp 1.36Asset Class Weightings (%)Top Sector Weightings (% Equity)• Stocks 56.88• Bonds 26.33• Cash & Cash Equivalents 16.01• Convertible Preferred 0.77Utilities 21.19Energy 16.74Materials 14.05Information Technology 11.71Industrials 8.85Financials 8.63Health Care 7.81Telecommunication Services 4.21Consumer Staples 3.44Consumer Discretionary 3.38Bond Ratings (%)BBB 3.84 CCC 14.62BB 40.08 NR 4.82B 36.65Fund available in Corporate Class-Series T. Within the Corporate Class structure, you can switch between Corporate Class-Series A—to maximize tax-deferredcompound growth—and Corporate Class-Series T, to meet cash flow requirements. 6% targeted Series T Return of Capital payout rate may change at the discretion of FranklinTempleton Investments.3684 FFE 0114For Dealer Use Only. Not For Distribution to the Public.FRANKLIN TEMPLETON INVESTMENTS advisormonthly 23