advisormonthly - Franklin Templeton Investments

Franklin Quotential January 31, 2014Franklin Quotential Balanced Income PortfolioEffective July 29, 2013, Quotential Balanced Income Portfolio and Quotential Balanced Income Corporate Class Portfolio were renamed Franklin QuotentialBalanced Income Portfolio and Franklin Quotential Balanced Income Corporate Class Portfolio, respectively.Franklin Multi-Asset StrategiesINVESTMENT OBJECTIVE & STRATEGYA balance of current income and long-term capitalappreciation by investing in a diversified mix of equityand income mutual funds, with a bias towards income.MORNINGSTAR CATEGORYGlobal Neutral BalancedFOR CONSERVATIVE INVESTORS SEEKING PRESERVATION OF CAPITAL• A balanced approach to investing. Franklin Quotential Balanced Income Portfolio is conservatively managedwith a significant weighting in fixed income investments, plus exposure to the growth potential of equities.This combination can help minimize the effects of being fully diversified in the equity market, with thepotential for long-term capital appreciation.• Two-prong global exposure. In addition to its strong Canadian balanced holdings, this Portfolio provides thedeveloped and emerging market global gateway that can take advantage of ever-changing regionalopportunities.RATINGMorningstar Rating OverallPORTFOLIO MANAGERSBrent SmithStephen Lingard23 Years, Florida, United States20 Years, Toronto, CanadaCalendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 10.04 5.78 -1.40 8.61 20.80 -18.44 -0.30 7.71 8.13 8.69Category Average Return 12.62 8.19 -1.72 8.29 16.50 -17.27 -1.12 9.96 6.64 6.55Source: Morningstar Research Inc.FUND FACTSPrice per Unit $7.09Assets of the Fund $1,630,610,878 2MonthlyDistributionSeries T6% target annual distribution 1Inception Date 08/19/2002Positions 29Portfolio Turnover Rate (06/30/2013) 25.96%MER (06/30/2013 incl. HST) 2.11%BenchmarkMSCI AC World ($CDN) 20%, S&P/ TSXComposite TRI 20%, DEX Universe Bond 45%,Barclays Multiverse hedged 15%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 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 656 3700Series A DSC 657 3702Series A Low Load 640 3701Series F 670 3703Series I 677 3704Series O 683 3705Series R 3068Series S 5502Series T Front 690Series T DSC 691Series T Low Load 641CORPORATE CLASS CDN$ US$Series A Front 1028 3706Series A DSC 1030 3708Series A Low Load 1029 3707Series F 1031 3709Series I 3365 3710Series O 1033 3711Series R 3178Series S 3179Series T Front 3175Series T DSC 3177Series T Low Load 317630.00%20.00%10.00%0.00%-10.00%-20.00%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 1.00 1.00 3.21 7.83 9.62 5.05 9.14 4.34 4.98Category Average Return 1.06 1.06 3.48 7.93 11.48 6.26 9.64 4.32 4.77Source: Morningstar Research Inc.HOLDINGSGeographic Weightings (% of Total)^ Fund inception dateCanada 38.44United States 24.28Japan 5.13United Kingdom 4.19Mexico 1.74Euro Community 1.61South Korea 1.33Ireland 1.07France 1.05Others 21.16Top Holdings (%)Franklin Bissett Bond Fund, Series O 29.98Templeton Global Bond Fund, Series O 8.33Franklin Strategic Income Fund, Series O 6.00Franklin Bissett Canadian Equity Fund, Series O 4.38Franklin Flex Cap Growth Fund, Series O 4.37FTIF Franklin Mutual European Fund, Series I (Acc) 4.09iShares MSCI Japan ETF 3.28Franklin Bissett Canadian Short Term Bond Fund,Series O 3.27iShares Intermediate Credit Bond ETF 3.17Franklin U.S. Core Equity Fund, Series O 3.01Asset Class Weightings (%)• Bonds 43.82• Common Stocks 34.43Investments in Exchange-• Traded Funds 11.79Short-term securities and all• other assets, net 6.12Other assets (of Underlying• Funds) 3.81• Preferred Stocks 0.03This 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 0-6% of the final NAV of the previous year and split into 12monthly installments. 6% targeted Series T Return of Capital payout rate may change at the discretion of Franklin Templeton Investments Corp.656 FFE 01142 advisormonthly FRANKLIN TEMPLETON INVESTMENTS For Dealer Use Only. Not For Distribution to the Public.