advisormonthly - Franklin Templeton Investments

Franklin Quotential January 31, 2014Franklin Quotential Diversified Income PortfolioEffective July 29, 2013, Quotential Diversified Income Portfolio and Quotential Diversified Income Corporate Class Portfolio were renamed Franklin QuotentialDiversified Income Portfolio and Franklin Quotential Diversified Income Corporate Class Portfolio, respectively.Franklin Multi-Asset StrategiesINVESTMENT OBJECTIVE & STRATEGYHigh current income and some long-term capitalappreciation by investing primarily in a diversified mix ofincome and bond mutual funds.MORNINGSTAR CATEGORYGlobal Fixed Income BalancedRATINGMorningstar Rating OverallPORTFOLIO MANAGERSBrent SmithStephen LingardFUND FACTS23 Years, Florida, United States20 Years, Toronto, CanadaPrice per Unit $4.25Assets of the Fund $2,333,245,667 3MonthlyDistributionSeries T5% target annual distribution 1,2Inception Date 02/17/2003Positions 18Portfolio Turnover Rate (06/30/2013) 11.90%MER (06/30/2013 incl. HST) 1.98%BenchmarkMSCI AC World ($CDN) 5%, S&P/TSXComposite TRI 15%, DEX Universe Bond 55%,Barclays Multiverse hedged 25%1 Target distributions are not guaranteed and may change at the discretion of FranklinTempleton Investments. The Portfolio may also pay capital gains in December if required.2 Please see detailed definitions at www.franklintempleton.ca/define.3 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 3250Series A DSC 3252Series A Low Load 3251Series F 3253Series I 267Series O 170Series S 227Series T Front 384Series T DSC 385Series T Low Load 386CORPORATE CLASS CDN$ US$Series A Front 1022 3515Series A DSC 1024 3517Series A Low Load 1023 3516Series F 1025 3518Series I 1026 3519Series O 1027 3520Series R 3173Series S 3174Series T Front 3170 3595Series T DSC 3172 3597Series T Low Load 3171 3596MAXIMUM DIVERSIFICATION FOR INCOME GENERATION• An income solution for all market conditions. With 18 different income sources, the Portfolio is a welldiversifiedsolution for investors seeking a reliable income stream.• Exposure to domestic and global bonds. This Portfolio offers investors extensive diversification to weatherinterest rate movements and take advantage of pricing and yield differentials between government andcorporate bond issuers.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series T 5.93 6.56 3.30 8.82 15.08 -9.47 -0.61 5.85 6.62 8.78Category Average Return 6.77 6.85 1.79 7.30 13.16 -11.21 -0.22 7.78 5.86 6.54Source: Morningstar Research Inc.20.00%15.00%10.00%5.00%0.00%-5.00%-10.00%-15.00%2013 2012 2011 2010 2009 2008 2007 2006 2005 2004• Series TCompounded 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 T 1.37 1.37 2.30 5.28 6.20 5.74 8.32 4.82 5.45Category Average Return 1.88 1.88 3.02 6.01 7.74 5.57 8.02 4.25 4.87Source: Morningstar Research Inc.HOLDINGSGeographic Weightings (% of Total)^ Fund inception dateCanada 41.36United States 23.74Japan 3.47United Kingdom 2.77South Korea 2.05Mexico 1.92Ireland 1.51Sweden 1.42Poland 1.27Others 20.48Top Holdings (%)Franklin Bissett Bond Fund, Series O 29.85Templeton Global Bond Fund, Series O 15.10Franklin Bissett Canadian Short Term Bond Fund,Series O 9.84Franklin Strategic Income Fund, Series O 6.05Franklin U.S. Rising Dividends Fund, Series O 5.01iShares Intermediate Credit Bond ETF 4.65Franklin High Income Fund, Series O 4.44Franklin Bissett Canadian Dividend Fund, Series O 4.31FTIF Franklin Mutual European Fund, Series I (Acc) 3.92FTIF Franklin Global Real Estate Fund, Series I 3.62Asset Class Weightings (%)Series T Distribution History• Bonds 58.81• Common Stocks 23.73Investments in Exchange-• Traded Funds 6.97Short-term securities and all• other assets, net 5.44Other assets (of Underlying• Funds) 4.83• Preferred Stocks 0.23Date Price Distr. Date Price Distr.03/28/2013 $4.40 $0.02 09/30/2013 $4.29 $0.0204/30/2013 $4.42 $0.02 10/31/2013 $4.37 $0.0205/31/2013 $4.38 $0.02 11/29/2013 $4.37 $0.0206/28/2013 $4.29 $0.02 12/23/2013 $4.21 $0.1607/31/2013 $4.30 $0.02 12/27/2013 $4.21 $0.0208/30/2013 $4.26 $0.02 01/31/2014 $4.25 $0.02This Portfolio offered in Corporate Class-Series T. With this Portfolio, you can switch seamlessly between Corporate Class-Series A—to maximize tax-deferredcompound growth—and Corporate Class-Series T, to fine-tune cash flow requirements.Did you know? Flexible Series T units of this Portfolio pay monthly Return of Capital distributions of 0-5% of the final NAV of the previous year and split into 12monthly installments. 5% targeted Series T Return of Capital payout rate may change at the discretion of Franklin Templeton Investments Corp.3250 FFE 0114For Dealer Use Only. Not For Distribution to the Public. FRANKLIN TEMPLETON INVESTMENTS advisormonthly 1