Download Franklin Quotential Balanced Income Portfolio Series A

Franklin Quotential
Franklin Quotential Balanced
Income Portfolio
September 30, 2016
Franklin Templeton Solutions*
FOR CONSERVATIVE INVESTORS SEEKING PRESERVATION OF CAPITAL
Fund Overview
$1,627,388,8471
Total Net Assets
Inception Date
Series A: 08/19/2002
Series F: 08/19/2002
Number of Holdings
27
Morningstar Category TM
• A balanced approach to investing. Franklin Quotential Balanced Income Portfolio is conservatively managed with 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 the potential for long-term capital
appreciation.
• Two-prong global exposure. In addition to its strong Canadian balanced holdings, this Portfolio provides the developed
and emerging market global gateway that can take advantage of ever-changing regional opportunities.
Global Neutral Balanced
Benchmark
Custom Franklin
Quotential Balanced
Income Benchmark2
Performance
Calendar Year Returns in Canadian Dollars (%)
20.8 22.0
Investment Objective & Strategy
4.7 5.8 5.4
6.9 8.1 8.7
10.0 11.2 12.6
A balance of current income and long-term capital
appreciation by investing in a diversified mix of equity and
income mutual funds, with a bias towards income.
16.5
7.7 8.9 10.0
8.6 9.8 8.3
5.8 7.1 8.2
0.7
-0.3
-1.4 -0.4 -1.7
-1.1
-18.4 -17.4 -17.3
Fund Management
2015
Stephen Lingard
Michael Greenberg
2014
2013
22 Years, Toronto, Canada
13 Years, Toronto, Canada
2012
Series A
2011
Series F
2010
2009
2008
Category Average Return
2007
2006
Compounded Returns and Category Returns in Canadian Dollars (%)
Risk Classification
Low
Low to
Medium
Medium
Medium
to High
High
Asset Allocation (%)
YTD
1 Mo
3 Mo
6 Mo
1 Year
3 Years
5 Years
10 years
Since Inc^
Series A
1.97
0.42
3.29
4.63
4.93
6.28
6.15
3.85
4.93
Series F‡
2.93
0.48
3.56
5.24
6.12
7.47
7.34
4.98
6.07
Category Average Return
3.85
0.36
3.58
5.71
6.93
7.90
8.40
4.56
n/a
Source: Morningstar Research Inc.
^
Series inception date
Top Holdings (%)






Fixed Income ................................................................................ 38.07
Common Stocks ........................................................................... 29.77
Investments in Exchange-Traded Funds ....................................... 19.96
Short-term securities and all other assets, net ................................ 8.17
Other assets (of Underlying Funds) ................................................. 3.87
Preferred Stocks ............................................................................. 0.16
Fund Codes
Series A Front
Series A DSC
Series A Low Load
Series F
Series FT (Formerly Series S)
Series I
Series O
Series OT (Formerly Series R)
Series PF (Formerly Series M)
Series PFT (Formerly Series W)
Series T Front
Series T DSC
Series T Low Load
Series V Front
‡
1
2
3
Fund
CDN$ US$
656
3700
657
3702
640
3701
670
3703
5502
677
3704
683
3705
3068
3873 3874
3898
690
691
641
Corp Class
CDN$ US$
1028 3706
1030 3708
1029 3707
1031 3709
3179
3365 3710
1033 3711
3178
3784 3785
3175
3177
3176
3776
Fund Facts
Franklin Bissett Core Plus Bond Fund
Franklin Strategic Income Fund
Templeton Global Bond Fund
Franklin Bissett Canadian Equity Fund
BMO Mid Federal Bond Index ETF
Franklin U.S. Rising Dividends Fund
iShares Tips Bond ETF
Franklin U.S. Core Equity Fund
iShares Intermediate Credit Bond ETF
Franklin Mutual European Fund
28.26
7.40
6.45
4.63
4.45
4.22
3.99
3.47
3.25
2.98
Price per Unit (Series A)
Portfolio Turnover Rate
(06/30/2016)
MER (06/30/2016 incl. HST)
Monthly Distribution Series T
$7.23
19.93%
A: 2.13%
F: 1.01%
6% target annual
distribution3
Composition of Fund
Geographic Weightings (% of Total)
Canada
United States
Japan
Euro Community
United Kingdom
South Korea
Indonesia
Germany
India
Others
37.31
31.66
2.25
2.02
1.86
1.18
1.04
0.95
0.92
20.80
Series F is available to investors participating in programs that do not require Franklin
Templeton to incur distribution costs in the form of trailing commissions to dealers.
As a consequence, the management fee on Series F is lower than on Series A.
Inclusive of trust and corporate class versions where applicable.
Custom Franklin Quotential Balanced Income Benchmark is a blended index currently
composed of the MSCI AC World TR Index (20%), S&P/TSX Composite TR Index
(20%), FTSE TMX Canada Universe Bond Index (45%) and Bloomberg Barclays
Multiverse Index (hedged, 15%).
Target distributions are not guaranteed and may change at the discretion of Franklin
Templeton Investments. The Portfolio may also pay capital gains in December if
required.
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 12
monthly installments. 6% targeted Series T Return of Capital payout rate may change at the discretion of Franklin Templeton Investments Corp.
656 FFE 0916
Franklin Quotential Balanced Income Portfolio
September 30, 2016
Disclaimers
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. The indicated
rates of return are historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional
charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the money market funds will be able to
maintain their net asset value per security at a constant amount or that the full amount of your investment in the Fund(s) will be returned to you. The portfolio manager for a Fund reserves the right to
withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list. Series T distributions are automatically reinvested unless otherwise requested. Series T
may also pay a distribution that must be reinvested in December, consisting of income and capital gains. Please indicate your preference to receive cash flow immediately on the application form. Fund AUM
reported may include fund-on-fund holdings, and assets are therefore reflected in both the top fund and underlying fund AUM. The ‘Supranational’ geographic designation refers to international financial
institutions whereby member states transcend national boundaries and issue debt securities on behalf of the group as a whole.
Beginning in October 2016, investors switching between Corporate Class funds may trigger a capital gain or loss at the time of the switch due to certain changes in the federal government’s 2016 budget
proposal.
Morningstar Rating - Source: Morningstar Research Inc., as of September 30, 2016. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers; may not
be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this
information. The Morningstar Risk-Adjusted Rating, commonly referred to as the Star Rating, relates the risk-adjusted performance of a fund to that of its category peers and is subject to change every
month. The Star Rating is a measure of a fund’s annualized historical excess return (excess is measured relative to risk-free investment in Canadian Government Treasury Bills) adjusted for the fund’s
historical risk. The overall Star Rating for a fund is a weighted combination of its 3-, 5-, and 10-year ratings. Overall ratings are adjusted where a fund has less than five or 10 years’ history. Within each
Morningstar category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars and the bottom 10% receive one star. Franklin Quotential
Balanced Income Portfolio is rated within the Morningstar Global Neutral Balanced category. All performance data refers to Series A units. Please refer to www.morningstar.ca for more details on the
calculation of Morningstar Risk-Adjusted Ratings. For each of the 3, 5 and 10 year performance periods, there were in total 764, 512 and 110 funds, respectively, in the Morningstar Global Neutral Balanced
category. Please refer to www.morningstar.ca for the 1-year information.
The Lipper Fund Awards
Awards, granted annually, are part of the Thomson Reuters Awards for Excellence awarded by Lipper, Inc. and highlight funds that have excelled in delivering consistently strong riskadjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Ratings for Consistent Return, which is a risk-adjusted performance measure calculated over 36, 60 and 120
month periods. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the
next 20% are scored 2 and the lowest 20% are scored 1. The highest Lipper Leader for Consistent Return in each category wins the Lipper Fund Award. Lipper Leader ratings change monthly. From
Thomson Reuters Lipper Awards, © 2016 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or
retransmission of this Content without express written permission is prohibited.
Franklin Bissett Investment Management is part of Franklin Templeton Investments Corp. Fiduciary Trust Company of Canada is a wholly owned subsidiary of Franklin Templeton Investments Corp.
Franklin Templeton Solutions (FTS) is a global team dedicated to global portfolio-based solutions. The individuals that advise the Funds or Portfolios in Canada are part of Fiduciary Trust Company of Canada
and are also members of the FTS team.
Glossary
Dividend Yield of a stock is the total amount of dividend per share paid over the previous 12 months, divided by its current price. The dividend yield of a mutual fund is the market-weighted average of the
dividend yields of all the stocks in the portfolio. This measure is gross of fees.
Weighted Yield (Internal Yield) is a blended measure used for balanced funds, the internal yield is the market-weighted average of the Yield to Maturity of the fund's fixed income component and the
Dividend Yield of the fund's equity component. This measure is gross of fees.
Yield to Maturity (YTM) is a long-term yield expressed as an annual rate. A bond's YTM is the rate of return anticipated if one assumes the bond is held until its maturity date and all the coupons paid by the
bond are reinvested at the same rate of return as the coupons. The calculation takes into account the current market price, par value, coupon interest rate and time to maturity. The YTM of a bond fund is
the market-weighted average of the YTMs of all the bonds in the portfolio.
Yield to Worst (YTW) of a bond is the yield to maturity if the worst possible bond repayment takes place. If market yields are higher than the coupon, the YTW would assume no prepayment. If market yields
are below the coupon, the YTW would assume prepayment. The YTW of a fund is the market-weighted average of the YTWs of all the bonds in the portfolio. This measure is gross of fees and excludes yield
on cash.
Franklin Templeton Investments Corp.
5000 Yonge Street, Suite 900, Toronto, ON M2N 0A7
Client Services Toll-free: 1.800.387.0830 Fax: 416.364.1163
Sales Team Toll-free: 1.800.897.7286 Fax: 416.364.1320
www.franklintempleton.ca
© 2016 Franklin Templeton Investments. All rights reserved.
656 FFE 0916