advisormonthly - Franklin Templeton Investments
advisormonthly - Franklin Templeton Investments advisormonthly - Franklin Templeton Investments
Canadian Fixed Income January 31, 2014Franklin Bissett Canadian Short Term Bond FundEffective July 29, 2013, Bissett Canadian Short Term Bond Fund was renamed Franklin Bissett Canadian Short Term Bond Fund.Franklin BissettINVESTMENT OBJECTIVE & STRATEGYThe Fund seeks high current income and preservationof capital by investing primarily in Canadian fixedincome securities, including Canadian federal andprovincial government bonds, corporate bonds,debentures and short-term notes. The Fund may alsoinvest in securities backed by mortgages or otherfinancial assets and dividend-paying shares ofCanadian companies. The Fund may invest in foreignfixed income securities. The average weighted term tomaturity of the Fund’s investments is five years or less.MORNINGSTAR CATEGORYCanadian Short Term Fixed IncomeRATINGMorningstar Rating OverallPORTFOLIO MANAGERSHeather McOuattDarcy Briggs19 Years, Calgary, AB Canada20 Years, Calgary, AB CanadaFUND FACTSPrice per Unit $9.46Yield to Maturity 2.35%Weighted Average MaturityDuration3.2 Years2.4 YearsYield to Worst 2.03%Duration to Worst2.3 YearsAssets of the Fund $651,234,674 4Distributions Interest income paid monthly 1,2Inception Date 12/22/2003Positions 181Portfolio Turnover Rate (06/30/2013) 15.86%MER (06/30/2013 incl. HST) 1.39%Benchmark1 Please see detailed definitions at www.franklintempleton.ca/define.2 The Fund may also pay capital gains in December if required.3 Sources: S&P and Moody’s. Ratings apply to bond holdings only.4 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumDEX Short -Term Bond IndexMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 1012Series A DSC 1013Series A Low Load 1014Series F 1015Series O 1016REASONS TO INVEST IN THIS FUND:• Franklin Bissett’s fixed income expertise. Franklin Bissett has been managing fixed income investments forover 20 years for individual, institutional and high net-worth clients.• Lowers portfolio volatility. As short-term bonds are generally less sensitive to interest rate movements thanlonger-term bonds, they can help minimize the impact of rising rates on a portfolio and reduce overall portfoliovolatility.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 0.83 1.85 3.35 2.17 5.12 5.43 2.56 2.73 1.30 3.60Category Average Return 1.01 1.69 3.05 2.21 3.38 5.18 2.85 3.03 1.71 3.14Source: Morningstar Research Inc.6.00%4.00%2.00%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 0.86 0.86 0.87 1.52 1.73 2.25 2.86 2.86 2.96Category Average Return 0.82 0.82 0.91 1.56 1.83 2.14 2.45 2.71 2.80Source: Morningstar Research Inc.HOLDINGSTop Country Weightings (% of Total)^ Fund inception dateCanada 76.77United States 17.50Germany 2.63United Kingdom 1.47Mexico 0.51Japan 0.47South Korea 0.45Australia 0.37Others 0.25Cash & Cash Equivalents -0.44Top Holdings (%)Financement Quebec, FRN, 1.54833%, 5/29/19 3.77Province of Ontario, FRN, 1.42833%, 12/03/18 3.35Province of Quebec, FRN, 1.46%, 12/19/18 2.74Omers Realty Corp., 4.74%, 6/04/18 2.24Canada Housing Trust, Secured Note, 144A, 2.35%,12/15/18 1.70RBC Capital Trust, 4.87% to 12/31/15, FRN Thereafter,Perpetual 1.63National Housing Assn., FRN, 1.485%, 3/01/17 1.49Canadian Wheat Board, 4.75%, 12/01/14 1.39Daimler Canada Finance Inc., Senior Note, FRN,1.965%, 9/12/14 1.39Great-West Lifeco Finance Delaware, 5.691% to6/21/17, FRN thereafter, 6/21/67 1.33Asset Class Weightings (%)Series A Distribution History• Corporate Bonds 69.13• Provincial Bonds 15.44• Federal Bonds 13.10• Municipal Bonds 2.81• Cash and Equivalents -0.48Date Price Distr. Date Price Distr.02/28/2013 $9.61 $0.03 08/30/2013 $9.46 $0.0203/28/2013 $9.60 $0.03 09/30/2013 $9.45 $0.0304/30/2013 $9.61 $0.03 10/31/2013 $9.49 $0.0205/31/2013 $9.55 $0.02 11/29/2013 $9.49 $0.0206/28/2013 $9.48 $0.02 12/19/2013 $9.40 $0.0807/31/2013 $9.48 $0.02 01/31/2014 $9.46 $0.02Bond Ratings (%) 3AAA 16.88 A 41.19AA 18.60 BBB 23.341012C FFE 011436 advisormonthly FRANKLIN TEMPLETON INVESTMENTS For Dealer Use Only. Not For Distribution to the Public.
Canadian Fixed Income January 31, 2014Franklin Bissett Corporate Bond FundEffective July 29, 2013, Bissett Corporate Bond Fund was renamed Franklin Bissett Corporate Bond Fund.Franklin BissettINVESTMENT OBJECTIVE & STRATEGYHigh current income and some long-term capitalappreciation by investing primarily in bonds,debentures, notes, revenue bonds and asset-backedand mortgage-backed securities of Canadian corporateentities.MORNINGSTAR CATEGORYCanadian Fixed IncomeRATINGMorningstar Rating OverallPORTFOLIO MANAGERSHeather McOuattDarcy Briggs19 Years, Calgary, AB Canada20 Years, Calgary, AB CanadaFUND FACTSPrice per Unit $9.99Yield to Maturity 1 3.79%Weighted Average Maturity6.7 YearsDuration5.0 YearsYield to Worst 3.49%Duration to Worst4.9 YearsAssets of the Fund $174,015,095 5Distributions Interest income paid monthly 1,2Inception Date 12/18/2006Positions 189Portfolio Turnover Rate (06/30/2013) 31.37%MER (06/30/2013 incl. HST) 1.62%BenchmarkDEX - All Corporate Bond Index1 Please see detailed definitions at www.franklintempleton.ca/define.2 The Fund may also pay capital gains in December if required.3 Does not include all sectors.4 Sources: S&P and Moody’s. Ratings apply to bond holdings only.5 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 2061Series A DSC 2063Series A Low Load 2062Series F 2064Series I 3384Series O 2065REASONS TO INVEST IN THIS FUND:• Ideal complement to a diversified income strategy. The Fund is a great addition to a diversified incomeportfolio that may already include dividend-paying equities, income trusts, government bonds and GICs.• Potential for increased fixed income returns. The Fund offers fixed income investors the potential for higherreturns by focusing primarily on investment-grade corporate bonds, debentures and short-term notes.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 0.14 5.43 5.79 5.33 12.35 -2.00 0.57 n/a n/a n/aCategory Average Return -1.10 3.64 7.03 5.80 7.17 3.30 2.26 n/a n/a n/aSource: Morningstar Research Inc.14.00%12.00%10.00%8.00%6.00%4.00%2.00%0.00%-2.00%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 1.99 1.99 1.83 2.81 2.38 4.53 6.14 n/a 4.02Category Average Return 2.40 2.40 1.81 2.70 1.82 4.09 5.14 n/a 4.24Source: Morningstar Research Inc.HOLDINGSTop Country Weightings (% of Total)^ Fund inception dateCanada 66.20United States 29.17United Kingdom 1.85Mexico 0.85Australia 0.79South Korea 0.64Luxembourg 0.42Japan 0.37Others -0.13Cash & Cash Equivalents -0.14Top Holdings (%)407 International Inc., Senior Secured Bond, 144A,6.47%, 7/27/29 2.46Sun Life Financial Inc., Senior Bond, 4.95% to 6/01/16,FRN thereafter, 6/01/36 1.93WTH Car Rental ULC, 4.143%, 3/20/15 1.77Metropolitan Life Global Funding I, FRN, 2.175%,6/17/14 1.73Rogers Communications Inc., Senior Note, 5.34%,3/22/21 1.62The Toronto-Dominion Bank, Sub. Note, 9.15%,5/26/25 1.54Aon Finance NS1 ULC, Senior Note, 4.76%, 3/08/18 1.35Rogers Communications Inc., Senior Note, 5.38%,11/04/19 1.33Great-West Lifeco Finance Delaware, 5.691% to6/21/17, FRN thereafter, 6/21/67 1.28Bank of America Corp., Sub. Note, FRN, 1.82%,6/01/16 1.24Asset Class Weightings (%)Top Sector Weightings (% Total) 3• Corporate Bonds 93.02• Bank Loans 4.41• Federal Bonds 2.52• Municipal Bonds 0.45• Cash and Equivalents -0.39Financial 40.61Energy 16.95Industrial 9.34Communication 7.99Infrastructure 7.34Securitization 5.59Real Estate 5.19Bank Loans 4.41Federal 2.52Municipal 0.45Cash -0.39Series A Distribution HistoryDate Price Distr. Date Price Distr.02/28/2013 $10.19 $0.03 08/30/2013 $9.85 $0.0303/28/2013 $10.22 $0.03 09/30/2013 $9.83 $0.0404/30/2013 $10.29 $0.03 10/31/2013 $9.93 $0.0305/31/2013 $10.15 $0.03 11/29/2013 $9.92 $0.0306/28/2013 $9.91 $0.04 12/19/2013 $9.83 $0.0707/31/2013 $9.92 $0.03 01/31/2014 $9.99 $0.03Bond Ratings (%) 4AAA 4.38 BB 8.07AA 6.64 B 6.37A 34.63 CCC 0.66BBB 39.252061 FFE 0114For Dealer Use Only. Not For Distribution to the Public.FRANKLIN TEMPLETON INVESTMENTS advisormonthly 37
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- Page 8 and 9: Franklin Quotential January 31, 201
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Canadian Fixed Income January 31, 2014<strong>Franklin</strong> Bissett Corporate Bond FundEffective July 29, 2013, Bissett Corporate Bond Fund was renamed <strong>Franklin</strong> Bissett Corporate Bond Fund.<strong>Franklin</strong> BissettINVESTMENT OBJECTIVE & STRATEGYHigh current income and some long-term capitalappreciation by investing primarily in bonds,debentures, notes, revenue bonds and asset-backedand mortgage-backed securities of Canadian corporateentities.MORNINGSTAR CATEGORYCanadian Fixed IncomeRATINGMorningstar Rating OverallPORTFOLIO MANAGERSHeather McOuattDarcy Briggs19 Years, Calgary, AB Canada20 Years, Calgary, AB CanadaFUND FACTSPrice per Unit $9.99Yield to Maturity 1 3.79%Weighted Average Maturity6.7 YearsDuration5.0 YearsYield to Worst 3.49%Duration to Worst4.9 YearsAssets of the Fund $174,015,095 5Distributions Interest income paid monthly 1,2Inception Date 12/18/2006Positions 189Portfolio Turnover Rate (06/30/2013) 31.37%MER (06/30/2013 incl. HST) 1.62%BenchmarkDEX - All Corporate Bond Index1 Please see detailed definitions at www.franklintempleton.ca/define.2 The Fund may also pay capital gains in December if required.3 Does not include all sectors.4 Sources: S&P and Moody’s. Ratings apply to bond holdings only.5 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 2061Series A DSC 2063Series A Low Load 2062Series F 2064Series I 3384Series O 2065REASONS TO INVEST IN THIS FUND:• Ideal complement to a diversified income strategy. The Fund is a great addition to a diversified incomeportfolio that may already include dividend-paying equities, income trusts, government bonds and GICs.• Potential for increased fixed income returns. The Fund offers fixed income investors the potential for higherreturns by focusing primarily on investment-grade corporate bonds, debentures and short-term notes.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 0.14 5.43 5.79 5.33 12.35 -2.00 0.57 n/a n/a n/aCategory Average Return -1.10 3.64 7.03 5.80 7.17 3.30 2.26 n/a n/a n/aSource: Morningstar Research Inc.14.00%12.00%10.00%8.00%6.00%4.00%2.00%0.00%-2.00%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 1.99 1.99 1.83 2.81 2.38 4.53 6.14 n/a 4.02Category Average Return 2.40 2.40 1.81 2.70 1.82 4.09 5.14 n/a 4.24Source: Morningstar Research Inc.HOLDINGSTop Country Weightings (% of Total)^ Fund inception dateCanada 66.20United States 29.17United Kingdom 1.85Mexico 0.85Australia 0.79South Korea 0.64Luxembourg 0.42Japan 0.37Others -0.13Cash & Cash Equivalents -0.14Top Holdings (%)407 International Inc., Senior Secured Bond, 144A,6.47%, 7/27/29 2.46Sun Life Financial Inc., Senior Bond, 4.95% to 6/01/16,FRN thereafter, 6/01/36 1.93WTH Car Rental ULC, 4.143%, 3/20/15 1.77Metropolitan Life Global Funding I, FRN, 2.175%,6/17/14 1.73Rogers Communications Inc., Senior Note, 5.34%,3/22/21 1.62The Toronto-Dominion Bank, Sub. Note, 9.15%,5/26/25 1.54Aon Finance NS1 ULC, Senior Note, 4.76%, 3/08/18 1.35Rogers Communications Inc., Senior Note, 5.38%,11/04/19 1.33Great-West Lifeco Finance Delaware, 5.691% to6/21/17, FRN thereafter, 6/21/67 1.28Bank of America Corp., Sub. Note, FRN, 1.82%,6/01/16 1.24Asset Class Weightings (%)Top Sector Weightings (% Total) 3• Corporate Bonds 93.02• Bank Loans 4.41• Federal Bonds 2.52• Municipal Bonds 0.45• Cash and Equivalents -0.39Financial 40.61Energy 16.95Industrial 9.34Communication 7.99Infrastructure 7.34Securitization 5.59Real Estate 5.19Bank Loans 4.41Federal 2.52Municipal 0.45Cash -0.39Series A Distribution HistoryDate Price Distr. Date Price Distr.02/28/2013 $10.19 $0.03 08/30/2013 $9.85 $0.0303/28/2013 $10.22 $0.03 09/30/2013 $9.83 $0.0404/30/2013 $10.29 $0.03 10/31/2013 $9.93 $0.0305/31/2013 $10.15 $0.03 11/29/2013 $9.92 $0.0306/28/2013 $9.91 $0.04 12/19/2013 $9.83 $0.0707/31/2013 $9.92 $0.03 01/31/2014 $9.99 $0.03Bond Ratings (%) 4AAA 4.38 BB 8.07AA 6.64 B 6.37A 34.63 CCC 0.66BBB 39.252061 FFE 0114For Dealer Use Only. Not For Distribution to the Public.FRANKLIN TEMPLETON INVESTMENTS <strong>advisormonthly</strong> 37