Download Investment Style and Process - Qualified Financial Services

Bissett Dividend Income Fund
Dealer Use Only
2
Reinvested Dividends Have Provided Greater Returns
Over time, total returns from dividend-paying stocks* have been greater than those of non-payers
$400,000
$350,000
$320,404
$300,000
70% of returns were from
dividends
$250,000
$200,000
$150,000
$94,583
$100,000
$50,000
$Jan-73
Feb-86
S&P/TSX Composite TR
Source: Morningstar Research Inc., as of June 30, 2012.
*Includes dividend payouts, dividend growth and any increase in price. $10,000 initial investment on January 1, 1973.
The S&P/TSX Composite Total Return Index includes reinvested dividends and capital gains.
For Broker/Dealer Use Only. Not for Distribution to the Public.
Apr-99
S&P/TSX Composite PR
Jun-12
3
Favourable Tax Treatment of Dividends
Dividend Income is Worth More Than Interest Income
After Tax Proceeds of $100
$80
$70.46
$70
$60
$53.59
$50
$40
$30
$20
$10
$Interest Income
Source: Taxtips 2012 Ontario.
Assumes 2012 Ontario marginal tax rates: Interest = 46.41%; Eligible Dividends = 29.54%.
For Broker/Dealer Use Only. Not for Distribution to the Public.
Dividend Income
4
Potential Offset To Inflation
Actual Dividends Paid Have Increased Beyond Inflation Over Time
Total Growth vs. Inflation Total Growth
500
Total Growth: +283%
400
300
200
Total Increase: +26%
100
0
Nov-00
Oct-03
Sep-06
S&P/TSX Composite 12 Months Dividend Per Share
Source: Bloomberg, as of June 30, 2012.
*Headline Consumer Price Index is not adjusted for seasonality which includes food and energy prices.
For Broker/Dealer Use Only. Not for Distribution to the Public.
Jul-09
Headline CPI*
Jun-12
5
The Impact of Dividends on Performance
10 Years*
5 Years*
3 Years*
1 Year
S&P/TSX Composite Total Return Index
7.6%
-0.7%
6.7%
-10.3%
S&P/TSX Dividend Payers
8.5%
0.0%
7.2%
-7.7%
S&P/TSX Increasing Dividends
8.7%
-0.6%
7.7%
-7.2%
S&P/TSX Non-Dividend Payers
2.8%
-7.0%
0.1%
-31.7%
Historically, Dividend Payers and Increasing Dividends have outperformed
Non-Dividend Payers, but this has been less consistent in more recent periods
*Annualized. Source: RBC. Weighted compound average annual total returns as of June 30, 2012.
For Broker/Dealer Use Only. Not for Distribution to the Public.
6
Franklin Resources, Inc.
Investment Platform Overview
Franklin Templeton offers a full range of investment capabilities from a broad breadth of investment
management platforms
FRANKLIN TEMPLETON INVESTMENTS
Total Combined Assets Under Management (AUM): CA$719.9 Billion
Institutional AUM: CA$153.9 Billion
Single Business Development, Relationship Management, and Consultant Relations Platform
EQUITY
Established
Franklin
Equity Group
Templeton
Emerging
Markets Group
Templeton
Global Equity
Group
1947
1987
1940
Mutual Series
Franklin
Templeton
Fixed Income
Group
Franklin
Templeton
Local Asset
Management
Franklin
Templeton
Real Estate
Advisors
1949
1970
1993
1984
Global Equity
U.S. Equity
Focus
Global Equity
International
Equity
Emerging
Markets Equity
SPECIALISED STRATEGIES
FIXED INCOME
Global Equity
International
Equity
International
Equity
Global Fixed
Income
U.S. Equity
Regional Fixed
Income
Distressed
Debt & Merger
Arbitrage
Emerging
Market Debt
Global Equity
and Fixed Income
Regional Equity
and Fixed Income
Single-Country
Equity and Fixed
Income
Global Private
Real Estate
Global Real
Estate Securities
Global Private
Real Assets
Darby
Franklin
Templeton
Multi-Asset
Strategies
Bissett
Investment
Management
1994
1982
1982
Multi-Asset
Emerging Markets
Fund-of-Funds
Private Equity &
Mezzanine Finance Strategies
Infrastructure
Global Tactical
Asset Allocation
Canadian Equity
Fixed Income
Balanced
SMA Programs
Style
Growth, Value,
Core/Hybrid
Core Value
Core Value
Deep Value
Single Sector,
Multi-Sector
Multi-Sector,
Single- or
Multi-Region
Multi-Sector,
Multi-Region
Multi-Sector
Multi-Style
GARP,
High Quality,
Duration Neutral
AUM
CA$140.1 Billion
CA$46.5 Billion
CA$94.9 Billion
CA$57.7 Billion
CA$323.7 Billion
CA$24.8 Billion
CA$4.2Billion
CA$1.7 Billion
CA$29.6 Billion
CA$13.6 Billion
1.Source: Franklin Templeton Investments (FTI), as of 06.30.12, unless otherwise noted. Assets under management (AUM) combines the U.S. and non-U.S. AUM of the investment management subsidiaries of the parent company, Franklin Resources, Inc.
[NYSE: BEN], a global investment organisation operating as Franklin Templeton Investments. AUM includes discretionary and advisory accounts, including pooled investment vehicles, separate accounts and other vehicles, as well as some accounts that may not
be eligible for inclusion in composites as defined by the firm’s policies. Numbers may not equal 100% due to rounding. AUM may also include advisory accounts with or without trading authority. In addition, the Firm may provide asset allocation advisory services,
and if the assets are not allocated to FTI products, then the assets are not included in AUM. Numbers may not equal 100% due to rounding. Please note that the table above does not include all affiliates under FTI.
2.Franklin Templeton Multi-Asset Strategies (FTMAS) AUM as of 06.30.12. FTMAS invests in various Franklin Templeton and external investment platforms; AUM for FTMAS is reported under each utilized investment platform, as well as for FTMAS.
3.Each local asset manager may be considered as an entity affiliated with or associated to Franklin Templeton Investments by virtue of being wholly-owned subsidiaries, or other entities or joint ventures in which Franklin Resources, Inc., owns a partial interest,
which may be a minority interest. Local asset management AUM includes AUM for Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited. Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty.
Limited are both indirect wholly-owned subsidiaries of Franklin Resources, Inc.
4.Bissett Investment Management is not registered with securities regulators. It falls under the registration held by Franklin Templeton Investment Corp. Bissett Investment Management is an operating division of Franklin Templeton Investments Corp.
For firms claiming compliance with the Global Investment Performance Standards (GIPS®), figures for the assets under management above may not correspond to the assets under management as defined by GIPS®. For GIPS® purposes,
Franklin Equity Group and Franklin Templeton Fixed Income Group are both units of the firm Franklin; Templeton Emerging Markets Group and Templeton Global Equity Group are both units of the firm Templeton.
For Broker/Dealer Use Only. Not for Distribution to the Public.
7
Bissett – 30 Years of Canadian Experience and Expertise
• Founded in 1982 and joined Franklin Templeton Investments in 2000
• Bissett AUM as of June 30, 2012: (CAD) $13.6 Billion
• Focus on Canadian capital markets
• Mandates include fundamental equity, quantitative equity, fixed income and
balanced strategies
• Fundamental equity strategies include large/mid cap, dividend, high dividend,
small cap, and microcap
• Bissett’s goal: superior investment performance and controlled, profitable
growth across investment strategies
• Bissett remains an independent investment manager within the Franklin
Templeton organization
For Broker/Dealer Use Only. Not for Distribution to the Public.
8
Organizational Chart
John Lusk
EVP, Investment Management
Franklin Resources, Inc.
Christopher Molumphy
EVP/CIO, Fixed Income Investments
Franklin Resources, Inc.
Don Reed
President & CEO
Franklin Templeton Investments - Canada
Garey Aitken
Chief Investment Officer
Bissett Investment Management
Tim Caulfield
VP/Director
Equity Research
Leslie Lundquist
SVP/Portfolio
Manager
High Dividend
Izabel Flis
Research Analyst
Jayson Moss
Research Analyst
Les Stelmach
VP/Portfolio
Manager
High Dividend
Thomas O’Gorman
SVP/Director Fixed Income
Bissett Investment Management
Ralph
Lindenblatt
SVP/Portfolio
Manager
Small / Microcap
Farahana
Jobanputra
Director
Investment
Administration
Richard Fortin
VP/Portfolio
Manager
Small/ Microcap
Juliette John
SVP/Portfolio
Manager
Dividend &
SMA Programs
Chris Lankester
Investment
Operations
Analyst
Shelly Wilson
Executive
Assistant
Mitchell
McCartney
Portfolio Assistant
Celine
Baumgarten
Admin Clerk
Ryan Crowther
VP/Portfolio
Manager
Dividend &
SMA Programs
Jason Hornett
VP/Portfolio
Manager
Quant. Programs
Andrew Buntain
VP/Institutional
Portfolio
Manager
Darcy Briggs
VP/Portfolio
Manager
Jeff Johnson
VP/Portfolio
Manager
Heather McOuatt
VP/Portfolio
Manager
Brian Calder
Bond Trader
Sevrika Fisher
Trading Assistant
Bissett is supported by Franklin Templeton’s Global Business Units:
Portfolio Analysis and
Investment Risk
Global Portfolio & Corporate
Services
Global Investment Management
Services
As of February 7, 2012
For Broker/Dealer Use Only. Not for Distribution to the Public.
Global Investment Risk
Management
Global Equity Trading
Global Compliance & Global Investor
Advice Compliance
Bissett Dividend Income Fund
Dealer Use Only
10
Investment Style and Process
GROWTH AT A REASONABLE PRICE INVESTMENT STYLE
Invest in high quality equities and income securities to participate in their long-term capital appreciation
and dividend growth
Business/Security Attributes - Equities
Portfolio Construction
•
Proven operational track record
•
Bias toward common equities for growth
•
Higher than benchmark dividend yield
•
•
Invests in Canadian and U.S. dividend-paying
common and preferred equities
Consistent dividend policy
•
•
Invests in Canadian and foreign fixed income
Earnings consistency
•
-
Overweight credit product
-
Diversified portfolio of investment grade
issues
-
Duration shorter than the DEX Universe
High profitability
•
Financial stability
•
Reasonable valuation
Objective
To provide consistent total returns and below market volatility over a full business cycle
For Broker/Dealer Use Only. Not for Distribution to the Public.
11
Investment Style and Process
• A low-volatility approach to equity and fixed income investing
• Conservative investors seeking:
- Capital appreciation
- Attractive portfolio yield
- Tax-advantaged income
• Each equity must pay a moderate but consistent dividend
- Emphasis is placed on a growing dividend stream over time
• Fixed income holdings consist primarily of investment grade corporate debentures
- Objective is to generate higher yield than government issues
• Preferred share exposure enhances income and reduces overall portfolio volatility
• Security selection
- Growth-oriented issuers that meet our investment criteria are targeted
- Objective is to identify securities trading at attractive spreads relative to benchmark
and government issues
- Limited to investment grade credits; credit quality of P3 or higher
For Broker/Dealer Use Only. Not for Distribution to the Public.
12
Investment Style and Process
• Portfolio Construction
- Invest in at least 6 of 10 S&P/TSX sectors
- Set target weights, not target prices, for individual securities
• Risk Management
- Rebalance to target weights
- Enforce style discipline at total Portfolio level
- Sell Discipline
• Deterioration in fundamentals
• Excessive valuations
For Broker/Dealer Use Only. Not for Distribution to the Public.
13
Absolute, Relative and Risk-Adjusted Return Objectives
• Return Objectives
– Absolute return objective: Target long-term absolute returns that compensate for the
related risks
– Relative return objective: Target excess returns relative to the benchmark
• Risk Objectives
– Primary risk objective: To ensure that the absolute return objective is achieved
– Secondary risk objective: To maintain less return volatility than the benchmark
• Risk-Adjusted Return Objective
– Target a below market beta and positive alpha
For Broker/Dealer Use Only. Not for Distribution to the Public.
14
Risk Management
RISK MANAGEMENT
Our approach to risk management aligns with our objective to deliver both strong long-term absolute and
risk-adjusted returns
INVESTMENT SECURITY SELECTION
• Invest where expected return potential
exceeds our estimate of the associated
cost of equity
• Return potential assessed based on long
term fundamentals, valuation analysis
and consideration of inherently uncertain
future fundamentals
• Focus on high quality businesses with
appropriate capital structures and long
term dividend stability
PORTFOLIO CONSTRUCTION
• Target portfolio diversification on an inter
and intra sector basis
• Recognize correlations among holdings
• Individual weights strike a balance between
minimizing non-systematic risk and
allowing for our best ideas to have a
meaningful impact
• Variability of security weights in the
portfolio is generally less than in the
benchmark
PORTFOLIO RISK EVALUATION
• Risks are continually reviewed to confirm that exposures are
UNDERSTOOD and consistent with our INTENT and
CONVICTIONS
• Portfolio Risk Evaluation is supported by Franklin Templeton
Investments’ independent Global Investment Performance
Services, Portfolio Analysis and Investment Risk Group
For Broker/Dealer Use Only. Not for Distribution to the Public.
15
Bissett Equities
Investment Style and Process
• Sector exposure is an outcome of our bottom up security selection process
• Sector over and under weightings reflect the availability of securities which
meet our investment characteristics within each sector
• Due to our disciplined style significant sector over and under weightings occur
• Consequently, the Fund exhibits significant benchmark risk
• However, absolute return volatility is reduced due to our focus on businesses
with more moderate revenue/cash flow/earnings volatility
For Broker/Dealer Use Only. Not for Distribution to the Public.
16
Fixed Income Investment Style and Process
• Generate above average yield-to-maturity and stable income
- Overweight corporate issues
- Rigorous macro research and analysis
- Invest at inflection point of yield curve
• Manage investment risk through:
- Laddered maturity schedule
- Diversify corporate holdings; investment grade credits only
- Thorough credit analysis
For Broker/Dealer Use Only. Not for Distribution to the Public.
17
Asset Mix
As of June 30, 2012
U.S. and
Foreign
Equities,
14.4%
Fixed Income,
19.5%
For Broker/Dealer Use Only. Not for Distribution to the Public.
Preferred
Shares,
1.6%
Cash,
2.8%
Canadian
Equities,
61.7%
18
Canadian Equity Sector Exposure
As of June 30, 2012
BDIF*
S&P/TSX Composite
Difference BPS
Financials
30.1%
32.1%
-200
Energy
25.4%
24.7%
70
Telecommunication Services
12.6%
5.3%
730
Consumer Discretionary
8.7%
4.6%
410
Industrials
10.0%
5.9%
410
Information Technology
0.1%
1.1%
-100
Consumer Staples
3.4%
3.1%
30
Utilities
7.7%
2.0%
570
Materials
2.1%
20.0%
-1,790
Health Care
0.0%
1.6%
-160
Total
100%
100%
Source: Franklin Templeton Investments, Bloomberg.
*Bissett Dividend Income Fund, % of Canadian equities.
For Broker/Dealer Use Only. Not for Distribution to the Public.
19
Top 10 Canadian Equity Holdings
As of June 30, 2012
S&P/TSX Composite Index
35 equities owned
BDIF*
Weight
Rank
Enbridge
5.3%
2.3%
10
TELUS (non-voting shares)
5.2%
1.4%**
17
Royal Bank of Canada
4.4%
5.4%
1
TransCanada
4.3%
2.2%
12
Canadian Imperial Bank of Commerce
4.2%
2.1%
14
BCE
4.1%
2.3%
9
Toronto Dominion Bank
4.1%
5.2%
2
Calian Technologies
4.1%
0.0%
-
Bank of Nova Scotia
4.1%
4.3%
3
Power Financial
4.0%
0.4%
57
Concentration
43.8%
24.2%
Source: Franklin Templeton Investments, Bloomberg.
*Bissett Dividend Income Fund, % of Canadian equities.
**Weight refers to TELUS Corporation.
For Broker/Dealer Use Only. Not for Distribution to the Public.
20
Portfolio Characteristics - Canadian Equity
As of June 30, 2012
Investment Characteristics
BDIF*
S&P/TSX Composite
17.0%
561 bps
65.1%
15.3%
762 bps
41.6%
• 5 Year Historical Earnings per Share Growth
• 5 Year Historical Dividend Growth
Consistency
0.5%
4.0%
4.4%
7.9%
• Earnings Variability
Valuation
•Trailing Price to Earnings Ratio
•Price to Book Value
•Current Dividend Yield
Other
•Debt/Equity
•Beta
•Weighted Average Market Capitalization
9.1%
11.4%
13.9x
2.2x
4.8%
13.6x
1.8x
3.2%
0.52:1
67% of the index
$20.9 Billion
0.45:1
Profitability
• Trailing Return on Equity
• Trailing Reinvestment Rate
• Trailing Dividend Payout Ratio
Growth
Source: CPMS.
*Bissett Dividend Income Fund, Canadian equity component.
For Broker/Dealer Use Only. Not for Distribution to the Public.
$25.6 Billion
21
U.S. and Foreign Equity Sector Exposure
As of June 30, 2012
BDIF*
S&P 500
Difference BPS
Consumer Staples
41.0%
11.2%
2,980
Health Care
17.3%
12.0%
530
Energy
15.9%
10.8%
510
Consumer Discretionary
12.4%
11.0%
140
Industrials
7.7%
10.5%
-280
Information Technology
4.5%
19.7%
-1,520
Utilities
1.0%
3.7%
-270
Financials
0.2%
14.3%
-1,410
Materials
0.0%
3.4%
-340
Telecommunication Services
0.0%
3.2%
-320
Total
100%
100%
Source: Franklin Templeton Investments, Bloomberg.
*Bissett Dividend Income Fund, % of U.S. and Foreign equities.
For Broker/Dealer Use Only. Not for Distribution to the Public.
22
Top 10 U.S. and Foreign Equity Holdings
As of June 30, 2012
S&P 500
20 equities owned
BDIF*
Weight
Rank
Diageo
8.8%
0.0%
-
Philip Morris International
8.4%
1.2%
13
Chevron
8.1%
1.7%
7
Abbott Laboratories
7.7%
0.8%
23
Johnson & Johnson
7.6%
1.5%
8
General Mills
7.6%
0.2%
112
Genuine Parts
6.3%
0.1%
297
Altria Group
6.3%
0.6%
37
McDonald's
6.2%
0.7%
26
3M
6.1%
0.5%
41
Concentration
73.1%
7.3%
Source: Franklin Templeton Investments, Bloomberg.
*Bissett Dividend Income Fund, % of U.S. and Foreign equities.
For Broker/Dealer Use Only. Not for Distribution to the Public.
23
Portfolio Characteristics – U.S. and Foreign Equity
As of June 30, 2012
Investment Characteristics
BDIF*
S&P 500
27.8%
1,454 bps
41.9%
22.2%
1,143 bps
27.3%
4.9%
6.0%
7.8%
7.7%
10.1%
21.5%
13.3x
3.3x
3.4%
13.8x
2.2x
2.3%
0.85:1
64% of the index
$117.2 Billion
0.71:1
Profitability
•Trailing Return on Equity
•Trailing Reinvestment Rate
•Trailing Dividend Payout Ratio
Growth
•5 Year Historical Earnings per Share Growth
•5 Year Historical Dividend Growth
Consistency
•Earnings Variability
Valuation
•Trailing Price to Earnings Ratio
•Price to Book Value
•Current Dividend Yield
Other
•Debt/Equity
•Beta
•Weighted Average Market Capitalization
Source: CPMS.
*Bissett Dividend Income Fund, % of combined U.S. and Foreign equities.
For Broker/Dealer Use Only. Not for Distribution to the Public.
$110.4 Billion
24
Performance Attribution
12-Month Period Ended June 30, 2012
• The Fund returned 3.6%*, compared to the Fund’s custom benchmark**, which returned -2.5% for the 12month period
Contributors:
• Canadian equities posted positive returns in comparison to sharp declines in the benchmark index
− Security selection and higher than benchmark exposure to the Telecommunications Services sector led
to positive contribution
− Security selection in Industrials (Bird Construction, Russel Metals) added value and outweighed the
lack of exposure to railway equities which were also strong during the period
− Security selection in the Energy sector (Mullen Group and Enbridge) contributed to performance during
the period
− Low exposure to the Materials sector which was weak due to volatile commodity prices and poor stock
performance
• U.S. equities outperformed the benchmark; however, contribution was partly offset as portfolio allocation was
lower than the S&P 500 in the blended benchmark
Detractors:
• Overweight and poor security selection in the domestic Consumer Discretionary sector
− Thomson Reuters, Reitman’s (Canada) posted disappointing results
• Fixed Income was a slight drag on total portfolio performance notwithstanding decent absolute returns
− Overweight spread product and shorter than benchmark duration were negative factors
*Series A.
**15% DEX Universe Bond Index, 5% BMO Nesbitt Burns Preferred Share Index, 60% S&P/TSX Composite Total Return Index, 20% S&P 500 Total Return Index (CDN$).
Please note benchmark has been modified since inception.
For Broker/Dealer Use Only. Not for Distribution to the Public.
25
Performance History (Net of Fees)
As of June 30, 2012, Series A
3 Month
1 Year
2 Year*
3 Year*
4 Year*
5 Year*
10 Year*
SI**
Bissett Dividend
Income Fund
-1.4%
3.6%
9.9%
10.2%
4.9%
2.0%
5.1%
5.4%
Custom
Benchmark***
-3.2%
-2.5%
7.1%
8.1%
1.8%
1.6%
5.8%
8.0%
Difference
1.8%
6.1%
2.8%
2.1%
3.1%
0.4%
-0.7%
2.6%
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Bissett Dividend
Income Fund
5.2%
11.6%
18.7%
-20.0%
-3.1%
10.3%
12.7%
9.4%
10.7%
-0.9%
Custom
Benchmark***
-2.6%
14.0%
24.9%
-22.7%
2.9%
13.1%
13.4%
9.2%
15.4%
-9.8%
Difference
7.8%
-2.4%
-6.2%
2.7%
-6.0%
-2.8%
-0.7%
0.2%
-4.7%
8.9%
Source: FTI, Bloomberg.
*Annualized.
**Inception Date November 30, 2000.
***15% DEX Universe Bond Index, 5% BMO Nesbitt Burns Preferred Share Index, 60% S&P/TSX Composite Total Return Index, 20% S&P 500 Total Return Index (CDN$).
Please note benchmark has been modified since inception.
For Broker/Dealer Use Only. Not for Distribution to the Public.
26
Investment Outlook
• Canadian equity benchmarks are now lagging their U.S. counterparts after more than a
decade of outperformance due to the greater resources exposure in our benchmark
• Evidence of slower economic growth as well as continued volatility in capital markets
may limit the potential for further valuation expansion
• Defensive investments may be positioned for decent relative performance if the current
environment persists
• Corporate earnings have been supported by aggressive cost cutting but opportunities to
reduce expenses are declining; revenues have not recovered sufficiently to maintain the
pace of earnings growth in the absence of more expense reduction
• Investors should expect a period of more modest capital appreciation; more meaningful
contribution to total return from dividends than from capital gains is likely in the near term
• We expect that our defensive GARP investment style with an emphasis on yield should
continue to deliver attractive returns with low volatility over the long-term
For Broker/Dealer Use Only. Not for Distribution to the Public.
27
Equity Investment Expertise
Fundamental Research Approach
Higher
Bissett Canadian
High Dividend Fund1

Bissett Canadian Dividend Fund2
Bissett Canadian Equity Fund4
Lower
Yield
Bissett Dividend Income Fund3
Bissett Canadian
Dividend Fund2
Bissett
Bissett
Microcap Small Cap
Fund
Fund


Bissett Dividend
Income Fund3
Bissett Canadian
Equity Fund4


Bissett Canadian High Dividend Fund1
Bissett Microcap Fund
Bissett Small Cap Fund
Quantitative Research Approach
Bissett All Canadian Focus Fund

Bissett U.S. Focus Fund
Sector Fund
Smaller
Market Capitalization
Larger
1. Bissett Income Fund’s new name, as of 06.24.2011; the Fund is an all cap, high-yield equity solution with a target yield of 2.5 times the benchmark yield.
2. The target yield of Bissett Canadian Dividend Fund is 1.5 times the benchmark yield.
3. Bissett Dividend Income Fund is an 80/20 equity/bond solution.
4. Bissett Canadian Equity Fund has a target yield similar to the benchmark yield.
For Broker/Dealer Use Only. Not for Distribution to the Public.
Bissett Energy Corporate Class
Appendix
Dealer Use Only
29
Co-Lead Manager
Juliette L. John, CFA
Senior Vice President, Portfolio Manager
Bissett Investment Management
Juliette John is a senior vice president, portfolio manager of Bissett Investment
Management and has been with the firm since 1994. Ms. John co-manages the Bissett
Dividend Income Fund (1998), Bissett Canadian Dividend Fund (since inception), the
Bissett Canadian Dividend Program (1998) and the Separately Managed Account
program that spans mandates from Large Cap Canadian equities to Dividend and
Balanced mandates (1996). She is also a member of the Equity Research Team with
research responsibility for the Canadian commercial banks.
Past duties have included portfolio management for institutions (1998), Canadian
equity research for various sectors (1995) and equity trading (1994).
Prior to joining Bissett, Ms. John was employed with the securities brokerage division
of a Canadian chartered bank.
Ms. John holds a bachelor's degree in commerce from the University of Calgary and
earned her Chartered Financial Analyst (CFA) Charterholder designation in 1998.
For Broker/Dealer Use Only. Not for Distribution to the Public.
30
Co-Lead Manager
Ryan Crowther, CFA
Vice President, Portfolio Manager
Bissett Investment Management
Ryan Crowther is a vice president and portfolio manager at Bissett Investment
Management. Mr. Crowther shares co-lead manager responsibilities of the
Bissett Canadian Dividend Fund (2011), Bissett Dividend Income Fund (2011)
and the separately managed account (SMA) platform, as well as equity
research coverage of the materials sector.
Ryan joined Bissett in 2008 as an equity analyst and was appointed to his
current role in June 2011. His past duties have included equity research
coverage of a number of sectors at Bissett, including materials, energy
infrastructure, utilities and retail. Prior to joining Bissett, Mr. Crowther was a
research associate and analyst at Salman Partners from 2002 to 2007, with
coverage of companies in the industrials and materials sectors, among others.
From 1999 to 2002, Mr. Crowther played a business development role in a
Vancouver-based Internet Services Provider, and was a founding partner of a
domain registration company.
Mr. Crowther holds a bachelor of commerce degree from the University of
British Columbia. He is a Chartered Financial Analyst (CFA) Charterholder.
For Broker/Dealer Use Only. Not for Distribution to the Public.
31
Enbridge (TSX:ENB)
• Strong free cash flow generation over time
• Visible runway for earnings growth for years to come
• Consistent dividend increases over extensive time frame
• Industry leader with strong competitive position
• Impressive operational track record
• Disciplined capital allocation
• Strong balance sheet
For Broker/Dealer Use Only. Not for Distribution to the Public.
32
Enbridge (TSX:ENB)
As of June 30, 2012
All numbers in Canadian Dollars.
Daily pricing of ENB is from January 1, 2006 to June 30, 2012.
Source: Bloomberg.
For Broker/Dealer Use Only. Not for Distribution to the Public.
33
Bird Construction (TSX:BDT)
• A general contractor engaged in domestic commercial, industrial and
institutional projects
• Impressive long term track record of profitability and growth
• Dividend-friendly policy, generally having paid out more than half of its free cash
flow historically
• Strong balance sheet profile (significant cash position) provides investors with
downside protection in the event of a significant decline in business activity or
margins
• Recent acquisition of H.J. O'Connell diversifies Bird’s profile and should prove
meaningfully accretive to cash flow over the coming year
For Broker/Dealer Use Only. Not for Distribution to the Public.
34
Bird Construction (TSX:BDT)
As of June 30, 2012
All numbers in Canadian Dollars.
Daily pricing of BDT is from February 24, 2006 to June 30, 2012.
Source: Bloomberg.
For Broker/Dealer Use Only. Not for Distribution to the Public.
35
Bissett Equity Group: Years of Experience and Responsibilities
Name
Garey Aitken, CFA®, MBA
Chief Investment Officer
Tim Caulfield, CFA®
VP, Director Equity Research
Juliette John, CFA®
SVP, Portfolio Management
Ryan Crowther, CFA®
VP, Portfolio Management
Leslie Lundquist, CFA®
SVP, Portfolio Management
Les Stelmach, CFA®
VP, Portfolio Management
Ralph Lindenblatt, CFA®
SVP, Portfolio Management
Richard Fortin, CFA®
VP, Portfolio Management
Jason Hornett, CFA®
VP, Portfolio Management
Andrew Buntain, CFA®
VP, Institutional Portfolio Manager
Izabel Flis
Research Analyst
Jayson Moss, CFA®
Research Analyst
Industry Since
Firm Since
1993
February, 1998
1999
January, 2007
1994
May, 1994
2002
February, 2008
1992
May, 1992
2000
January, 2006
1998
January, 2001
1996
January, 2009
1997
November, 1997
1995
May, 2007
Communication of BIM process, philosophy and strategies to internal and external
constituencies
2001
January, 2001
Research: Pipelines and Infrastructure, Retailing, Cable, Broadcasting, Consumer
Staples, Telecommunication Services, Utilities
2004
November, 2011
*CFA® and Chartered Financial Analyst ® are registered trademarks owned by CFA Institute
For Broker/Dealer Use Only. Not for Distribution to the Public.
Responsibilities
Chief Investment Officer
Portfolio Management: Canadian Equity Program
Portfolio Management: Canadian Equity Program
Research: Diversified Financials and Insurance, Information Technology
Portfolio Management: Dividend & Separately Managed Account Program
Research: Commercial Banks
Portfolio Management: Dividend & Separately Managed Account Program
Research: Materials
Portfolio Management: High Dividend Equity
Portfolio Management: High Dividend Equity
Research: Energy, Real Estate
Portfolio Management: Small/ Micro Cap Equity
Research: Small/ Mid Cap across all sectors
Portfolio Management: Small/ Micro Cap Equity
Research: Small/ Mid Cap across all sectors
Portfolio Management: Quantitative Strategies
Research: Consumer Discretionary, Industrials, Health Care
36
Bissett Equity Group: Years of Experience and Responsibilities
Name
Chris Lankester
Investment Operations Analyst
Mitchell McCartney
Portfolio Assistant
Farahana Jobanputra, MBA
Director, Investment Administration
Shelly Wilson
Executive Assistant
Celine Baumgarten
Admin. Clerk
Industry Since
Firm Since
2000
November, 2000
Investment Operations
2011
May, 2011
Investment Operations
2008
January, 2008
Investment Operations & Administration
2000
February, 2000
Support Portfolio Management Team
2008
October, 2008
Administrative Duties
For Broker/Dealer Use Only. Not for Distribution to the Public.
Responsibilities
37
Sector Research Coverage
Canadian Equity, Dividend and High Dividend Programs
Sector
Sub-Group
Energy
Analyst Coverage
Les Stelmach
Pipelines, Infrastructure
Izabel Flis
Materials
Ryan Crowther
Industrials
Jayson Moss
Consumer Discretionary
Jayson Moss
Retailing, Cable, Broadcasting
Consumer Staples
Izabel Flis
Health Care
Financials
Information Technology
Izabel Flis
Jayson Moss
Commercial Banks
Juliette John
Diversified Financials & Insurance
Tim Caulfield
Real Estate
Les Stelmach
Tim Caulfield
Telecommunication Services
Izabel Flis
Utilities
Izabel Flis
For Broker/Dealer Use Only. Not for Distribution to the Public.
38
Bissett Fixed Income Group: Years of Experience and Responsibilities
Name
Industry Start Date
Firm Start Date
Thomas O’Gorman, MBA, CFA
SVP, Director of Fixed Income
1990
June 2010
Director of Fixed Income
Portfolio Manager
Strategy Development & Implementation
Economic and Credit Analysis
Heather McOuatt, CFA
VP, Portfolio Manager
1995
December 1997
Portfolio Manager
Strategy Development & Implementation
Credit and Sector Analysis
Darcy Briggs, CFA, CGA, FRM
VP, Portfolio Manager
1994
January 2005
Portfolio Manager
Strategy Development & Implementation
Economic and Credit Analysis
Jeffrey Johnson, CFA, FRM, MBA
VP, Portfolio Manager,
Money Market Trader
1997
May 2005
Brian Calder, CFP
Bond Trader
2000
August 2001
Bond Trader
Bond Market Analysis
Provincial Reviews
Sevrika Fisher
Fixed Income Trading Assistant
2007
October 2010
Fixed Income Trading Assistant
For Broker/Dealer Use Only. Not for Distribution to the Public.
Responsibilities
Portfolio Manager / Trader
Cash Management
Corporate Paper Analysis
39
Thank You
Question Period
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share value and reinvestment of all distributions and dividends and do not take into account sales,
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however, we do not represent that it is accurate or complete, or that it should be relied upon as such.
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performance may not be repeated.
For Broker/Dealer Use Only. Not for Distribution to the Public.
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Franklin Templeton Investments provides global and domestic investment advisory services to the Franklin,
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