Franklin Bissett Canadian Dividend Fund Series A

Transcription

1 Franklin Bissett Canadian Dividend Fund Series A Product Profile Third Quarter 2016 FUND CHARACTERISTICS (AS OF 9/30/16) Fund Inception Date 12/22/03 Series A Inception Date Distributions Monthly Investment Style Equity Total Net Assets All Series 726 million FUND CODES Series CAD Series A Front 1017 Series A DSC 1018 Series A Low Load 1019 Series F 1020 Series I 3870 Series O 1021 Series PF (Formerly Series M) 3886 Corporate Class CAD Series A Front 3476 Series A DSC 3478 Series A Low Load 3477 Series F 3479 Series FT (Formerly Series S) 3483 Series I 3480 Series O 3481 Series OT (Formerly Series R) 3482 Series PF (Formerly Series M) 3809 Series T Front 3484 Series T DSC 3486 Series T Low Load 3485 Beginning in January 2017, 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. FUND DESCRIPTION Long-term capital appreciation by investing primarily in dividend-paying or income-producing Canadian securities, including common shares, income trust units and preferred shares. PERFORMANCE DATA Compounded Returns for Periods Ended September 30, 2016 (%) Since Incept 1Mth* 3Mths* (4/25/16) Franklin Bissett Canadian Dividend Fund Management Expense Ratio (as of 6/30/16 incl. HST) 2.33% The indicated rates of return are the historical annual compounded total returns including changes in share or 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 securityholder that would have reduced returns. Please call Franklin Templeton Client Services at or visit for the most recent month-end performance. Compounded Returns for Periods Ended September 30, 2016 (%) Mth* 3 Mths* Since Incept Franklin Bissett Canadian Dividend Fund Series A Effective April 22, 2016, Franklin Bissett Canadian High Dividend Fund merged into Franklin Bissett Canadian Dividend Fund. Accordingly, past performance data for the period prior to April 22, 2016, would not be comparative. As a result of the merger, the fund s since inception performance calculations use the start date of April 25, *Cumulative Total Returns. For information related to the Performance Data section please see Explanatory Notes. 1of5

2 PORTFOLIO DIVERSIFICATION (AS OF 9/30/16) Top Ten Holdings Issuer Name Industry % of Total 1. Canadian Imperial Bank of Commerce Banks Royal Bank of Canada Banks Toronto-Dominion Bank Banks Bank of Nova Scotia Banks Bank of Montreal Banks Enbridge Income Fund Holdings Inc Energy Enbridge, Inc. Energy IGM Financial Inc Diversified Financials Canadian National Railway Company Transportation Power Financial Corp Insurance 3.41 Total Sector Weightings vs. Benchmark (% of Equity) Sector Overweight/Underweight (% of Equity) Financials Financials 1.94 Energy Energy 7.51 Industrials Industrials 1.94 Utilities Utilities 5.71 Telecommunication Services Telecommunication Services 0.60 Real Estate Real Estate 2.17 Materials Materials Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Staples Information Technology Information Technology Health Care Health Care % 8% 16% 24% 32% 40% Franklin Bissett Canadian Dividend Fund S&P/TSX Composite Index Portfolio Allocation -20% -10% 0% 10% % Equity Cash & Cash Equivalents 0.71 For information related to the Portfolio Diversification section, please see Explanatory Notes. 2of5

3 PORTFOLIO CHARACTERISTICS (AS OF 9/30/16) Fund Market Capitalization (Millions) 33,646 Median Market Capitalization (Millions) 7,811 Fund Return on Equity 12.51% Operating Margin 19.47% Net Margin 16.38% Price to Earnings (12-mo Forward) 16.52x P/E to Growth 0.85x Price to Book 1.91x GLOSSARY Benchmark: An unmanaged group of securities whose overall performance is used as a standard to measure investment performance. EPS Growth: Earning Per Share. The portion of a company's profit allocated to each outstanding share of common stock. Serves as an indicator of a company's profitability. Historical 3 Yr Sales Growth: The rate at which sales have increased for the fund's underlying holdings over the last three years. Market Capitalization: A determination of a company's value, calculated by multiplying the total number of company stock shares outstanding by the price per share. Net Margin: The ratio of net profits to revenues for a company or business segment that shows how much of each dollar earned by the company is translated into profits. Operating Margin: A measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. P/E to Growth: A ratio used to determine a stock's value while taking into account earnings growth. PricetoBook: The price per share of a stock divided by its book value (i.e., net worth) per share. For a portfolio, the ratio is the weighted average price/book ratio of the stocks it holds. Price to Earnings (12-mo Forward): A measure of the price to earnings ratio (P/E) using the forecasted earnings for the next 12 months. Return on Equity: A measurement of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested. For information related to the Portfolio Characteristics section, please see Explanatory Notes. 3of5

4 INVESTMENT PHILOSOPHY AND PROCESS 1. Equity markets can be inefficient, particularly in the short term; price does not necessarily reflect intrinsic value 2. Sustained profitability and effective capital allocation drive intrinsic value growth 3. Achieving our performance objectives requires a high-conviction investment approach 1 Identify Profitable 2 Assess Valuation 3 Companies Determine Portfolio Suitability High full-cycle profitability Secular earnings and cash flow growth Durable business model Appropriate capital structure Effective capital allocation Estimated intrinsic value based on present value of future cash flows Portfolio concentration and diversification considerations Strategy requirements (market cap/dividend constraints) INVESTABLE UNIVERSE FRANKLIN BISSETT PORTFOLIO Risk Monitoring, Portfolio Rebalancing and Sell Discipline The above chart is for illustrative and discussion purposes only. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. INVESTMENT AND MANAGEMENT TEAM (AS OF 9/30/16) Franklin Bissett Canadian Dividend Fund Management Team Years with Firm Years Experience Ryan Crowther, CFA 8 14 Les E. Stelmach, CFA Franklin Bissett Equity Group Number of Members Average Years Experience Portfolio Managers 3 22 Portfolio Manager/Analysts 5 17 Research Analysts 5 15 Traders 3 14 CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. Franklin Bissett Investment Management, part of Franklin Templeton Investments Corp. 4of5

5 EXPLANATORY NOTES PERFORMANCE DATA The fund offers other series subject to different fees and expenses, which will affect their performance. STANDARD & POOR S, S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC. Standard & Poor s does not sponsor, endorse, sell or promote any S&P index-based product. PORTFOLIO DIVERSIFICATION Top Ten Holdings: Holdings of the same issuer have been combined. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included. For updated information, call Franklin Templeton Investments at (800) or visit franklintempleton.ca. Sector Weightings/Sector Overweight/Underweight: Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. PORTFOLIO CHARACTERISTICS The portfolio characteristics listed are based on the fund's underlying holdings, and do not necessarily reflect the fund's characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security's issuing company. This methodology may cause small differences between the portfolio's reported characteristics and the portfolio's actual characteristics. In practice, Franklin Templeton's portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalization figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer. All portfolio holdings are subject to change. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. 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. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Franklin Templeton Investments Corp Yonge Street, Suite 900, Toronto, ON M2N 0A7 Client Services Toll-free: Fax: franklintempleton.ca 2016 Franklin Templeton Investments Corp. All rights reserved PPE 09/16 5of5