DIVERSIFIED INCOME PORTFOLIO€¦ · Franklin Templeton Multi-Asset Solutions (FTMAS for short) is a group of multi-asset experts focused on creating total portfolio solutions integrated

FRANKLIN QUOTENTIAL® DIVERSIFIED INCOME PORTFOLIOInvestment Policy Statement As of December 31, 2020

Prepared Exclusively for:

Prepared by:

franklintempleton.ca/quotential Franklin Quotential Diversified Income Portfolio 1

Investment Policy Statement prepared exclusively for:

Simple One-Step Solution to Income Investing GloballySTRUCTURED TO DELIVER LONG-TERM INCOME AND CAPITALIZE ON SHORT-TERM OPPORTUNITIES

• Employs a long-term, strategic asset allocation of 80% fixed income/20% equity, providing a set foundation for a conservativerisk/return profile.

• Diversified across a variety of income-oriented fixed income and equity securities, both domestically and around the world.

• Constructed with a combination of income quality, styles, regions, and market caps that display unique performance in a varietyof interest rate environments.

INCOME FOR TODAY, GROWTH FOR TOMORROW

• Our investment management approach promotes investment longevity, allowing investors to receive 5% return of capital cash flow eachmonth through the Series T option1 or a Systematic Withdrawal Plan (using series A) without significantly eroding the initial investment.

Your Portfolio’s Risk/Return Profile: Conservative

1. Series T distributions are in the form of return of capital (ROC). ROC reduces the adjusted cost base (ACB) of the investment. Once the ACB has been depleted, any further cash flow is taxable as a capital gain.2. In relation to other Franklin Quotential Portfolios.

A Global Approach. A Canadian Perspective.Franklin Templeton Investment Solutions (FTIS for short) is a group of multi-asset experts focused on creating total portfoliosolutions integrated with risk management.

FTIS manages over CAD$179 billion in asset, diversified across traditional and alternative asset classes. FTIS is embedded within Franklin Templeton’s (FT’s) global integrated platform, combining access to the local insights and global perspective of over 600 investment professionals. As of December 31, 2020, FT currently manages CAD$1.9 trillion worldwide.

Franklin Quotential Portfolios are a targeted multi-asset solution offering diversification across asset classes, investment styles, quality and global markets. While the portfolios are managed in Canada, the investment team includes more than 50 professionals from around the globe. The team collaborates to: develop long-term capital market expectations; target and capture short-term opportunities with agility; and identify alpha sources and monitor bottom up strategies.

The team’s investment process is guided by robust, risk-centric protocols that are designed to measure, monitor and manage risks at a granular level, ultimately aiming to verify that each and every risk has the potential to contribute to the long-term reward.

This unique combination of institutional diversification and investment discipline allows us to offer Canadian investors a strategic and forward-looking solution designed to meet their expected outcomes over the long term.

Franklin Quotential Diversified Income Portfolio will have, under normal market conditions, an optimal asset mix of 70–95% fixed income and 5–30% equities.




Equity and Fixed Income Sectors (Look Through)

Geographic Diversification (Look Through)

Portfolio holdings as of December 31, 2020. Totals may not add to 100% due to rounding.Pie charts on this page “look through” the funds to the underlying security and do not include ETFs. Under normal market conditions, Franklin Quotential Diversified Income Portfolio will have an optimal asset mix of 70–95% fixed income and 5–30% equities. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of equity securities.Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com.

Total Amount Invested:

Equity 22.31%

■ Financials 4.03

■ Information Technology 4.01

■ Industrials 2.77

■ Consumer Discretionary 2.13

■ Health Care 2.08

■ Materials 1.68

■ Consumer Staples 1.62

■ Communication Services 1.50

■ Energy 1.24

■ Utilities 0.69

■ Real Estate 0.55

Fixed Income 71.01%

■ Canadian Provincial 27.37

■ Corporate Investment Grade 20.95

■ Canadian Federal 6.36

■ Sovereign Emerging 5.14

■ Sovereign Developed 4.97

■ Corporate High Yield 4.02

■ Other Fixed Income 2.20

Cash & Other Net Assets 6.68%

■ Cash & Other Net Assets 6.68

100.00%

■ Canada 62.51

■ United States 12.34

■ EAFE 4.87

■ Emerging Markets 2.25

■ Other 18.28

Cash & Cash Equivalents -0.25

OTHER

FIXED INCOME

EQUITY




Franklin Quotential Diversified Income Portfolio Holdings

Portfolio holdings as of December 31, 2020. Totals may not add to 100% due to rounding. Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com.*FTIF (SICAV) Funds are not available for direct purchase in Canada. Société d’Investissement à Capital Variable (SICAV) is an open-end investment company governed by the laws of Luxembourg.

EQUITY

FIXED INCOM

E

OTHER Canadian Equity Funds 6.56%

■ Franklin FTSE Canada All Cap Index ETF 2.56

■ Franklin Bissett Canadian Equity Fund 2.34

■ Franklin Canadian Core Equity Fund 1.66

U.S. Equity Funds 12.32%

■ Franklin U.S. Core Equity Fund 4.28

■ Franklin FTSE U.S. Index ETF 3.78

■ Franklin U.S. Rising Dividends Fund 2.39

■ Franklin U.S. Opportunities Fund 1.87

EAFE 4.84%

■ iShares Core MSCI EAFE ETF 2.45

■ Franklin International Core Equity Fund 2.39

Emerging Markets Equity Funds 2.23%

■ Franklin Emerging Markets Core Equity Fund 2.23

Canadian Fixed Income Funds 55.31%

■ Franklin Bissett Core Plus Bond Fund 27.40

■ Franklin Bissett Canadian Government Bond Fund 20.33

■ Franklin Bissett Short Duration Bond Fund 7.58

Global Fixed Income Funds 18.21%

■ Franklin Liberty Global Aggregate Bond ETF (Cad Hedged) 9.26

■ Franklin Strategic Income Fund Canada 4.62

■ Templeton Global Bond Fund 4.33

Cash & Other Net Assets 0.53%

■ Cash & Other Net Assets 0.53

Total Amount Invested:



This Document Represents Your Current Investment Goals

Your customized Investment Policy Statement outlines the asset allocation of your recommended Portfolio based on an assessment of your current circumstances, objective and tolerance for investment risk.

As your investment objectives are likely to evolve over time, it will be important to review this Investment Policy Statement regularly to ensure that your investments continue to meet your time horizon and risk tolerance.

Signature

Signature

Date

Date

Name of investor

Name of investment advisor

Franklin Quotential is a registered trademark owned by Franklin Templeton Canada. Franklin Templeton Canada is a business name used by Franklin Templeton Investments Corp. Franklin Templeton Investment Solutions (FTIS) is a global team dedicated to global portfolio-based solutions. FTIS is a business name used by Fiduciary Trust Company of Canada.

Franklin Templeton Investment Solutions (FTIS) is a world-wide team dedicated to global portfolio-based solutions and draws on the expertise of a number of Franklin Templeton affiliates. In Canada, the advisor to the FTIS mandates is Fiduciary Trust Company of Canada. 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. Franklin Quotential is a registered trademark owned by Franklin Templeton Investments Corp.

Franklin Templeton Canada200 King Street West, Suite 1500Toronto, ON M5H 3T4fax: (866) 850-8241

(800) 387-0830franklintempleton.ca/quotential

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DIVERSIFIED INCOME PORTFOLIO€¦ · Franklin Templeton Multi-Asset Solutions (FTMAS for short) is a group of multi-asset experts focused on creating total portfolio solutions integrated