advisormonthly - Franklin Templeton Investments

Franklin Quotential January 31, 2014Franklin Quotential Balanced Growth PortfolioEffective July 29, 2013, Quotential Balanced Growth Portfolio and Quotential Balanced Growth Corporate Class Portfolio were renamed Franklin QuotentialBalanced Growth Portfolio and Franklin Quotential Balanced Growth 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 capitalappreciation.MORNINGSTAR CATEGORYGlobal Equity BalancedRATINGMorningstar Rating OverallPORTFOLIO MANAGERSBrent SmithStephen Lingard23 Years, Florida, United States20 Years, Toronto, CanadaFUND FACTSPrice per Unit $7.63Assets of the Fund $3,237,713,173 3Monthly8% target annual distribution 1DistributionSeries TInception Date 08/19/2002Positions 29Portfolio Turnover Rate (06/30/2013) 27.16%MER (06/30/2013 incl. HST) 2.28%BenchmarkMSCI AC World ($CDN) 30%, S&P/ TSXComposite TRI 30%, DEX Universe Bond 30%,Barclays Multiverse hedged 10%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 Based on AUM.3 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 658Series A DSC 659Series A Low Load 642Series F 671Series I 678Series O 685Series R 3069Series S 5501Series T Front 692Series T DSC 693Series T Low Load 643CORPORATE CLASS CDN$ US$Series A Front 1034Series A DSC 1036Series A Low Load 1035Series F 1037Series I 3364Series O 1039Series R 3183Series S 3184Series T Front 3180Series T DSC 3182Series T Low Load 3181FOR INVESTORS SEEKING A SMART, SECURE ASSET MIX TO STEADILY GROW CAPITAL• A balance of growth and income.Franklin Quotential Balanced Growth Portfolio offers a balanced approach toinvesting by combining a solid foundation of fixed income investments with a significant weighting in equities.This attractive balance helps make it our most popular Franklin Quotential Portfolio. 2• 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.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 14.88 6.35 -4.48 9.64 25.45 -25.40 -0.23 9.91 10.56 9.46Category Average Return 18.50 9.34 -4.93 8.71 18.37 -23.20 -2.13 12.61 7.95 6.82Source: Morningstar Research Inc.40.00%20.00%0.00%-20.00%-40.00%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 0.66 0.66 3.80 9.87 13.09 5.52 10.62 4.56 5.21Category Average Return 0.53 0.53 3.84 9.81 15.62 6.94 10.79 4.19 4.85Source: Morningstar Research Inc.HOLDINGSGeographic Weightings (% of Total)^ Fund inception dateCanada 33.73United States 25.44Japan 7.16United Kingdom 5.19Euro Community 2.26Mexico 1.53China 1.27France 1.16South Korea 0.97Others 21.30Top Holdings (%)Franklin Bissett Bond Fund, Series O 18.69Franklin Bissett Canadian Equity Fund, Series O 6.22Franklin Flex Cap Growth Fund, Series O 6.18FTIF Franklin Mutual European Fund, Series I (Acc) 5.76Templeton Global Bond Fund, Series O 5.25iShares MSCI Japan ETF 4.66Franklin U.S. Core Equity Fund, Series O 4.24Franklin Bissett All Canadian Focus Fund, Series O 4.23Franklin U.S. Rising Dividends Fund, Series O 3.96Franklin Templeton Canadian Large Cap Fund, SeriesO 3.79Asset Class Weightings (%)• Common Stocks 48.66• Bonds 27.43Investments in Exchange-• Traded Funds 14.15Short-term securities and all• other assets, net 6.14Other assets (of Underlying• Funds) 3.57• Preferred Stocks 0.04This 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 0-8% of the final NAV of the previous year and split into 12monthly installments. 8% targeted Series T Return of Capital payout rate may change at the discretion of Franklin Templeton Investments Corp.658 FFE 0114For Dealer Use Only. Not For Distribution to the Public.FRANKLIN TEMPLETON INVESTMENTS advisormonthly 3