advisormonthly - Franklin Templeton Investments

U.S. Equity January 31, 2014Franklin U.S. Rising Dividends Hedged CorporateClassFranklinINVESTMENT OBJECTIVE & STRATEGYThe Fund seeks to achieve long-term capitalappreciation by investing substantially all of its assets inunits of Franklin U.S. Rising Dividends Fund, a portfolioof American equities with a focus on companies thathave paid consistent and increasing dividends. TheFund also seeks to minimize the impact of currencyfluctuations between the U.S. and Canadian dollars.MORNINGSTAR CATEGORYUS EquityPORTFOLIO MANAGERSDonald Taylor32 Years, New Jersey, United StatesWilliam Lippman59 Years, New Jersey, United StatesNicholas Getaz13 Years, New Jersey, United StatesBruce Baughman30 Years, New Jersey, United StatesFUND FACTSPrice per Unit $12.51Assets of the Fund $10,221,539 1Inception Date 10/29/2012Positions 2 63Portfolio Turnover Rate (06/30/2013) 5.29%MER (06/30/2013 incl. HST) 2.61%BenchmarkS&P 500 (Hedged CAD)1 Inclusive of trust and corporate class versions where applicable.2 The holdings listed are an outline of the investments held in the Reference Fund (FranklinU.S. Rising Dividends Fund) as a percentage of its net assets.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESCORPORATE CLASS CDN$ US$Series A Front 3608Series A DSC 3610Series A Low Load 3609Series F 3611Series O 3612Series T Front 3613Series T DSC 3615Series T Low Load 3614REASONS TO INVEST IN THIS FUND:• A core U.S. holding. The Fund is an ideal solution for investors seeking a core U.S. equity component fortheir portfolios. It offers investors the potential for long-term growth and performance through dividend-payingU.S. equities.• Reinvesting for growth. Portfolio managers seek to invest in companies with a history of consistent and risingdividend increases and that have reinvested earnings for future growth.• Minimized currency risk. The Fund applies a currency hedge to seek to minimize the effects of changes incurrency valuations.• Tax efficiency. The Fund allows you 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.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 28.33 n/a n/a n/a n/a n/a n/a n/a n/a n/aCategory Average Return 38.71 n/a n/a n/a n/a n/a n/a n/a n/a n/aSource: Morningstar Research Inc.40.00%30.00%20.00%10.00%0.00%2013 2012 2011 2010 2009 2008 2007 2006 2005 2004• Series ACompounded Returns and Category Returns in Canadian Dollars (%)• Category Average ReturnYTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A -4.43 -4.43 -0.87 2.88 16.92 n/a n/a n/a 20.37Category Average Return 0.86 0.86 8.09 14.85 32.70 n/a n/a n/a 31.87Source: Morningstar Research Inc.HOLDINGSTop Country Weightings (% Equity)^ Fund inception dateUnited States 100.00Top Holdings (%)Pentair Ltd 4.16United Technologies Corp 3.80Dover Corp 3.73Johnson & Johnson 3.61International Business Machines Corp. 3.47Chevron Corporation 3.43Roper Industries Inc 3.21Air Products and Chemicals Inc 3.09Medtronic Inc 2.98Becton Dickinson & Co 2.95Asset Class Weightings (%)Top Sector Weightings (% Equity)• Equity 95.65• Cash & Cash Equivalents 4.35Industrials 20.57Health Care 18.98Consumer Staples 17.25Consumer Discretionary 13.45Materials 10.90Energy 8.42Information Technology 6.42Financials 4.01Fund 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. 8% targeted Series T Return of Capital payout rate may change at the discretion of FranklinTempleton Investments.3608 FFE 0114For Dealer Use Only. Not For Distribution to the Public.FRANKLIN TEMPLETON INVESTMENTS advisormonthly 27