2018 final sp (final) may 29 2018 - franklintempleton.ca€¦ · simplified prospectus may 29, 2018...

Simplified Prospectus

May 29, 2018

TEMPLETON Templeton Asian Growth Fund (Series O)

Templeton Asian Growth Corporate Class (Series A, F, I and O)

Templeton EAFE Developed Markets Fund

Templeton Emerging Markets Fund (Series A, F, I, O and PF)

Templeton Emerging Markets Corporate Class

Templeton Frontier Markets Fund (Series O)

Templeton Frontier Markets Corporate Class (Series A, F and O)

Templeton Global Balanced Fund (Series A, F, FT, I, O, OT, PF, PFT, T, T-USD and V)

Templeton Global Bond Fund (Series A, F, I, O and PF)

Templeton Global Bond Fund (Hedged) (Series A, F, I, O and PF)

Templeton Global Smaller Companies Fund (Series A, F, I, O and PF)

Templeton Global Smaller Companies Corporate Class (Series A, F, I and O)

Templeton Growth Fund, Ltd. (Series A, A (Hedged), F, I, O and PF)

Templeton Growth Corporate Class (Series A, F, I, O and PF)

Templeton International Stock Fund (Series A, F, I, O, PF, PFT and T)

Templeton International Stock Corporate Class (Series A, F, I, O, PF and T)

FRANKLIN Franklin Global Growth Fund (Series A, F, O, PF and T)

Franklin Global Growth Corporate Class (Series A, F, O and T)

Franklin Global Small-Mid Cap Fund (Series A, F, I, O and PF)

Franklin High Income Fund (Series A, F, I, O and PF)

Franklin Strategic Income Fund (Series A, F, I, O and PF)

Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018)

Franklin U.S. Monthly Income Fund (Series A, F, FT, I, O, OT, PF, PFT, T and T-USD)

Franklin U.S. Monthly Income Corporate Class (Series A, F, FT, I, O, OT, PF, T and T-USD)

Franklin U.S. Monthly Income Hedged Corporate Class (Series A, F, FT, I, O, OT, PF and T)

Franklin U.S. Opportunities Fund

Franklin U.S. Opportunities Corporate Class (Series A, F and O)

Franklin U.S. Rising Dividends Fund (Series A, F, O, PF, PF (Hedged), PFT and T)

Franklin U.S. Rising Dividends Corporate Class (Series A, F, I, O, PF and T)

Franklin U.S. Rising Dividends Hedged Corporate Class (Series A, F, O and T)

FRANKLIN BISSETT Franklin Bissett Canadian All Cap Balanced Fund (Series A, F, I, O, PF and T) Franklin Bissett Canadian All Cap Balanced Corporate Class (Series A, F, I, O and T)

Franklin Bissett Canadian Balanced Fund (Series A, F, I, O, PF, PFT and T)

Franklin Bissett Canadian Balanced Corporate Class (Series A, F, I, O, PF and T)

Franklin Bissett Canadian Bond Fund

Franklin Bissett Canadian Dividend Fund (Series A, F, I, O and PF)

Franklin Bissett Canadian Dividend Corporate Class (Series A, F, FT, I, O, OT, PF and T)

Franklin Bissett Canada Plus Equity Fund

Franklin Bissett Canadian Equity Fund (Series A, F, I, O and PF)

Franklin Bissett Canadian Equity Corporate Class (Series A, F, I, O, OT, PF and T)

Franklin Bissett Canadian Government Bond Fund (Series F, O and PF)

Franklin Bissett Canadian Short Term Bond Fund

Franklin Bissett Core Plus Bond Fund (Series A, F, I, O and PF)

Franklin Bissett Corporate Bond Fund (Series A, F, I, O and PF)

Franklin Bissett Dividend Income Fund (Series A, F, I, O, OT, PF, PFT and T)

Franklin Bissett Dividend Income Corporate Class (Series A, F, I, O, PF and T)

Franklin Bissett Energy Corporate Class

Franklin Bissett Microcap Fund

Franklin Bissett Money Market Fund (Series A, F, I, O and PF)

Franklin Bissett Money Market Corporate Class (Series A, F, I and O)

Franklin Bissett Monthly Income and Growth Fund (Series A, F, I, O, PF, PFT and T)

Franklin Bissett Small Cap Fund

Franklin Bissett Small Cap Corporate Class (Series A, F and O)

FRANKLIN ACTIVEQUANT Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) (Series A, F, I, O and PF)

Franklin ActiveQuant Canadian Corporate Class (formerly Franklin Bissett All Canadian Focus Corporate Class) (Series A, F, I and O)

Franklin ActiveQuant U.S. Fund (formerly Franklin Bissett U.S. Focus Fund)

Franklin ActiveQuant U.S. Corporate Class (formerly Franklin Bissett U.S. Focus Corporate Class)

FRANKLIN MUTUAL SERIES

Franklin Mutual European Fund (Series A, F, I, O and PF)

Franklin Mutual Global Discovery Fund (Series A, F, I, O, PF, PFT, T and T-USD)

Franklin Mutual Global Discovery Corporate Class (Series A, F, I, O, PF, T and T-USD)

Franklin Mutual U.S. Shares Fund (Series A, F, I, O and T)

Franklin Mutual U.S. Shares Corporate Class (Series A, F, I, O and T)

FRANKLIN TEMPLETON MULTI-ASSET SOLUTIONS Franklin Quotential Balanced Growth Portfolio (Series A, F, FT, I, O, OT, PF, PFT and T)

Franklin Quotential Balanced Growth Corporate Class Portfolio (Series A, F, FT, I, O, OT, PF, T and V)

Franklin Quotential Balanced Income Portfolio (Series A, F, FT, I, O, OT, PF, PFT and T)

Franklin Quotential Balanced Income Corporate Class Portfolio (Series A, F, FT, I, O, OT, PF, T and V)

Franklin Quotential Diversified Equity Portfolio (Series A, F, I, O, OT, PF, PFT, T and T-USD)

Franklin Quotential Diversified Equity Corporate Class Portfolio (Series A, F, FT, I, O, OT, PF, T and T-USD)

Franklin Quotential Diversified Income Portfolio (Series A, F, FT, I, O, OT, PF, PFT and T)

Franklin Quotential Diversified Income Corporate Class Portfolio (Series A, F, FT, I, O, OT, PF, PFT, T, T-USD and V)

Franklin Quotential Fixed Income Portfolio

Franklin Quotential Growth Portfolio (Series A, F, I, O, OT, PF, PFT and T)

Franklin Quotential Growth Corporate Class Portfolio (Series A, F, FT, I, O, PF and T)

PRIVATE WEALTH POOLS FT Balanced Growth Pool (Series O and PF) (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018)

FT Balanced Income Pool (Series O and PF) (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018)

FT Growth Pool (Series O and PF) (to be renamed FT Growth Private Wealth Pool effective June 1, 2018)

Franklin Templeton Canadian Large Cap Fund

(Series O)

Offering Series A, F, O and PF securities, except where indicated.

No securities regulatory authority has expressed an opinion about these securities. It is an offence to claim otherwise.

The Funds and the securities offered under this prospectus are not registered with the United States Securities and Exchange Commission and they are sold in the United States only in reliance on exemptions from registration.

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TABLE OF CONTENTS

Introduction ..................................................................... 1

What is a mutual fund and what are the risks of investing in a mutual fund? ......................................... 2

What is a mutual fund? ................................................ 2

The value of a mutual fund .......................................... 2

The risks of investing in mutual funds ....................... 2

Different kinds of mutual funds have different kinds of risks .................................................................. 2

Asset allocation risk.................................................. 2 Asset-backed and mortgage-backed securities risk ............................................................. 2 Capital depletion risk ................................................ 3 Concentration risk ..................................................... 3 Corporate class fund risk ......................................... 3 Credit risk ................................................................... 3 Cyber security risk .................................................... 3 Depositary receipt risk ............................................. 4 Derivative risk ............................................................ 4 Dividend-oriented companies risk .......................... 5 Emerging markets risk ............................................. 5 Equity risk .................................................................. 5 Foreign investment risk ............................................ 5 Inflation linked bonds risk ........................................ 6 Interest rate risk ........................................................ 6 Large investor risk .................................................... 6 Liquidity risk ............................................................... 7 Low-rated security risk ............................................. 7 Portfolio management risk ...................................... 7 Regional focus risk ................................................... 7 Regulatory risk .......................................................... 7 Reinvestment risk ..................................................... 8 REIT risk .................................................................... 8 Repurchase/reverse repurchase agreements risk .............................................................................. 8 Securities lending risk .............................................. 8 Series risk .................................................................. 8 Short selling risk ....................................................... 8 Smaller companies risk ............................................ 9 Specialization risk ..................................................... 9 Tax risk ....................................................................... 9 Tracking risk .............................................................. 9

Organization and management of the Franklin Templeton Investments Funds ................................. 11

Fund on Fund Structures ........................................... 13

Purchases, switches and redemptions .................. 14

Classes and Series .................................................... 14

The price of a Fund .................................................... 22

Opening a Franklin Templeton Investments Account ...................................................................................... 23

How to buy, switch or redeem Funds ...................... 23

Buying Funds .............................................................. 23

How to Switch to other Funds .................................. 25

How to Switch to another Series .............................. 26

Switch fees .................................................................. 26

Processing your switch order ................................... 26

Redeeming Funds ...................................................... 27

General information on processing purchases, switches and redemptions ........................................ 31

Optional services ......................................................... 33

Systematic investment program ............................... 33

Systematic withdrawal program (SWP) .................. 33

Automatic rebalancing service ................................. 33

Registered plans ........................................................ 34

Fees and expenses ...................................................... 35

Fees and expenses payable by the Fund .............. 35

Series O/OT Management and Administration Fees ...................................................................................... 46

Investment Advisory Services Fee (Series O/OT, F/FT, PF/PF (Hedged)/PFT) ..................................... 48

Fees and expenses payable directly by you .......... 49

Dealer compensation .................................................. 53

Sales commissions .................................................... 53

Trailing commissions ................................................. 53

Marketing support programs .................................... 57

Dealer compensation from management fees ..... 58

Income tax considerations for investors ............... 59

For Funds held in a registered plan ..................... 59 For Funds not held in a registered plan .............. 59 Dispositions and Switches of Funds not held in a registered plan ........................................................ 61

Additional Information ................................................ 63

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International Information Reporting ......................... 63

What are your legal rights? ....................................... 63

Specific information about each of the mutual funds described in this document ........................... 64

Introduction .................................................................. 64

Fund details ................................................................. 64

What does the fund invest in? .................................. 64 Investments in Derivatives .................................... 64 Securities lending, repurchase and reverse transactions ............................................................. 65 Short selling ............................................................. 65 Portfolio turnover rate greater than 70% ............. 66

What are the risks of investing in the fund? ............ 66

Who should invest in this Fund? .............................. 66

Investment risk classification methodology ............ 66

Distribution policy ....................................................... 66

Fund expenses indirectly borne by investors ......... 67

Templeton ...................................................................... 68

Templeton Asian Growth Fund ................................. 69

Templeton Asian Growth Corporate Class ............. 71

Templeton EAFE Developed Markets Fund ........... 73

Templeton Emerging Markets Fund ........................ 75

Templeton Emerging Markets Corporate Class ..... 78

Templeton Frontier Markets Fund ............................ 80

Templeton Frontier Markets Corporate Class ........ 83

Templeton Global Balanced Fund ........................... 85

Templeton Global Bond Fund ................................... 88

Templeton Global Bond Fund (Hedged) ................. 90

Templeton Global Smaller Companies Fund ......... 93

Templeton Global Smaller Companies Corporate Class ............................................................................. 96

Templeton Growth Fund, Ltd. ................................... 98

Templeton Growth Corporate Class ...................... 101

Templeton International Stock Fund ...................... 103

Templeton International Stock Corporate Class .. 106

Franklin ......................................................................... 108

Franklin Global Growth Fund .................................. 111

Franklin Global Growth Corporate Class .............. 114

Franklin Global Small-Mid Cap Fund .....................116

Franklin High Income Fund .....................................119

Franklin Strategic Income Fund ..............................122

Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018) ...........................................................................125

Franklin U.S. Monthly Income Fund .......................127

Franklin U.S. Monthly Income Corporate Class ...131

Franklin U.S. Monthly Income Hedged Corporate Class ...........................................................................133

Franklin U.S. Opportunities Fund ...........................136

Franklin U.S. Opportunities Corporate Class ........138

Franklin U.S. Rising Dividends Fund .....................140

Franklin U.S. Rising Dividends Corporate Class ..143

Franklin U.S. Rising Dividends Hedged Corporate Class ...........................................................................145

Franklin Bissett ...........................................................147

Franklin Bissett Canadian All Cap Balanced Fund .....................................................................................148

Franklin Bissett Canadian All Cap Balanced Corporate Class ........................................................151

Franklin Bissett Canadian Balanced Fund ............153

Franklin Bissett Canadian Balanced Corporate Class ...........................................................................155

Franklin Bissett Canadian Bond Fund ...................157

Franklin Bissett Canadian Dividend Fund .............159

Franklin Bissett Canadian Dividend Corporate Class .....................................................................................161

Franklin Bissett Canada Plus Equity Fund ............163

Franklin Bissett Canadian Equity Fund ..................165

Franklin Bissett Canadian Equity Corporate Class .....................................................................................167

Franklin Bissett Canadian Government Bond Fund .....................................................................................169

Franklin Bissett Canadian Short Term Bond Fund .....................................................................................171

Franklin Bissett Core Plus Bond Fund ...................174

Franklin Bissett Corporate Bond Fund ...................177

Franklin Bissett Dividend Income Fund .................180

Franklin Bissett Dividend Income Corporate Class .....................................................................................183

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Franklin Bissett Energy Corporate Class .............. 186

Franklin Bissett Microcap Fund .............................. 188

Franklin Bissett Money Market Fund ..................... 190

Franklin Bissett Money Market Corporate Class . 192

Franklin Bissett Monthly Income and Growth Fund ........................................................................... 194

Franklin Bissett Small Cap Fund ............................ 199

Franklin Bissett Small Cap Corporate Class ........ 201

Franklin ActiveQuant ................................................. 203

Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) .......... 204

Franklin ActiveQuant Canadian Corporate Class (formerly Franklin Bissett All Canadian Focus Corporate Class) ....................................................... 206

Franklin ActiveQuant U.S. Fund (formerly Franklin Bissett U.S. Focus Fund) ......................... 208

Franklin ActiveQuant U.S. Corporate Class (formerly Franklin Bissett U.S. Focus Corporate Class) ......................................................................... 210

Franklin Mutual Series .............................................. 212

Franklin Mutual European Fund ............................. 213

Franklin Mutual Global Discovery Fund ................ 216

Franklin Mutual Global Discovery Corporate Class ........................................................................... 219

Franklin Mutual U.S. Shares Fund ......................... 221

Franklin Mutual U.S. Shares Corporate Class ..... 224

Franklin Templeton Multi-Asset Solutions .......... 226

Franklin Quotential Balanced Growth Portfolio .... 228

Franklin Quotential Balanced Growth Corporate Class Portfolio ........................................................... 231

Franklin Quotential Balanced Income Portfolio .... 234

Franklin Quotential Balanced Income Corporate Class Portfolio ........................................................... 237

Franklin Quotential Diversified Equity Portfolio .... 240

Franklin Quotential Diversified Equity Corporate Class Portfolio ........................................................... 243

Franklin Quotential Diversified Income Portfolio ..246

Franklin Quotential Diversified Income Corporate Class Portfolio............................................................249

Franklin Quotential Fixed Income Portfolio ...........252

Franklin Quotential Growth Portfolio ......................255

Franklin Quotential Growth Corporate Class Portfolio .......................................................................258

Private Wealth Pools ..................................................261

FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018) .......................................................................262

FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018) .......................................................................265

FT Growth Pool (to be renamed FT Growth Private Wealth Pool effective June 1, 2018) ......................268

Franklin Templeton Canadian Large Cap Fund ..271

Glossary ........................................................................273

Book value..............................................................273 Capping a Fund or series of a Fund ...................273 Class .......................................................................273 Closing a Fund or series of a Fund ....................273 Corporate Class Funds ........................................274 Deferred sales charge option ..............................274 Dealers ...................................................................274 Equities, stocks, or securities ..............................274 Fixed income securities ........................................275 Front-load option ...................................................275 Low-load option .....................................................275 Management expense ratio (MER) ....................275 Money market securities ......................................275 Portfolio turnover rate ...........................................275 Registered Representative ..................................275 Franklin Quotential Portfolios ..............................276 Securities ................................................................276 Series ......................................................................276 Term ........................................................................276 Underlying Funds to Franklin Quotential Portfolios .................................................................276 Underlying Funds to Corporate Class Funds ....276 Securities ................................................................277

SIMPLIFIED PROSPECTUS 2018 1

Introduction

In this document, we, us, Manager and Franklin Templeton Investments each refers to Franklin Templeton Investments Corp., the manager of the Franklin Templeton Investments Funds, Franklin Quotential Portfolios and Fiduciary Trust Canada Private Wealth Pools (which we refer to generally as the “Funds”), and you refers to anyone who invests or is interested in investing in the Funds.

This prospectus contains selected important information to help you make informed decisions about investing in the Funds and to help you understand your rights as a mutual fund investor.

Look for these boxes To make this document and our Funds even easier to understand, we have included educational material about the Funds. When you see a box like this one, look for supplementary details about the information in the main text.

This document is divided into two parts. The first part, from page 1 to page 63, contains general information that applies to all Funds. The second part, from page 64 to page 272, provides specific information about each Fund described in this document.

Additional information about each Fund is available in the following documents: the annual information form (“AIF”); the most recently filed Fund Facts; the most recently filed annual financial statements; any interim financial statements filed after the annual financial statements; the most recently filed annual management report of fund performance; and any interim management report of fund performance filed after the annual management report of fund performance.

These documents are incorporated by reference into this prospectus, which means that they legally form part of this document, just as if they were printed as a part of this document.

You can request a free copy of any or all of these documents: from your Dealer by calling toll-free 1-800-387-0830 by contacting us at [email protected] These documents and other information about the Funds are also available on our website at www.franklintempleton.ca or at www.sedar.com.

The prospectus and the AIF The prospectus provides you with information you will need to make an informed investment decision. The AIF provides additional information for investors, such as details about the manager of the Funds, the operations of the Funds, and the directors, officers and trustee of the Funds. Like our prospectus, the AIF is written in plain language. If you would like a copy, let us know.

2 FRANKLIN TEMPLETON INVESTMENTS

What is a mutual fund and what are the risks of investing in a mutual fund? The Funds described in this prospectus are all mutual funds.

What is a mutual fund? A mutual fund is a pool of money contributed by people with similar investment objectives. A fund is managed by investment professionals who select the securities that are held by the fund. Investors in a fund share the fund’s income, expenses, and any gains and losses the fund makes on its investments in proportion to the securities they own.

By owning securities of a mutual fund, investors can have the kind of diversification and professional investment management that is normally only available to institutional investors and wealthy individuals.

The value of a mutual fund The value of a mutual fund is its net asset value (NAV). We calculate the NAV of each series of each Fund. The NAV of each series is determined by taking the series’ proportionate share of all of the assets of the Fund (the cash and securities in its portfolio), subtracting the series’ liabilities and the series’ proportionate share of common liabilities, and dividing by the total number of securities of that series that are outstanding.

The risks of investing in mutual funds Mutual funds own different types of investments, depending on their investment objectives. The value of the investments a mutual fund owns will vary from day to day, reflecting changes in interest rates, economic conditions, and market and company news. As a result, the value of a mutual fund’s securities may go up and down, and the value of your investment in a mutual fund may be more or less when you redeem it than when you purchased it.

The full amount of your investment in any Fund is not guaranteed. Unlike bank accounts or GICs, mutual fund securities are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer.

In certain exceptional circumstances, a mutual fund may suspend redemptions. We describe these circumstances on page 27 under Redeeming Funds.

Different kinds of mutual funds have different kinds of risks A mutual fund may own securities of different types, or from different asset classes – equities, bonds, cash – depending on the fund’s investment objectives. For example, a fund whose objective is long-term capital gain will likely invest mostly in equities. A fund whose main objective is to preserve capital in the short term will likely have most of its holdings in money market securities.

Different investments have different types of investment risk. Mutual funds also have different kinds of risk, depending on the securities they own. Below is a summary of the various types of investment risk that may be applicable to the Fund that you decide to purchase. It is important to realize that the Corporate Class Funds (other than Franklin Bissett Energy Corporate Class), Franklin Bissett Canadian Balanced Fund, Franklin Quotential Portfolios and the Fiduciary Trust Canada Private Wealth Pools (collectively, the “Top Funds”) are subject to all the same risks applicable to any of the Funds held or tracked by the Top Funds. The Fund descriptions will tell you which specific risks apply to each Fund.

Asset allocation risk Funds that use a “fund on fund” structure allocate their assets among “underlying funds” with the goal of ensuring that the asset class, investment style, geographic and market capitalization allocation for each Fund is optimal. There can be no guarantee that a Fund will allocate its assets successfully. Similarly, there can be no guarantee against losses resulting from the asset allocation. Asset-backed and mortgage-backed securities risk Asset-backed securities are debt obligations that are backed by pools of consumer or business loans. Some asset-backed securities are short-term debt obligations, called asset-backed commercial paper (“ABCP”). Mortgage-backed


securities are debt obligations backed by pools of mortgages on commercial or residential real estate. If there are changes in the market perception of the issuers of these types of securities, or in the creditworthiness of the parties involved, then the value of the securities may be affected. In addition, for ABCP, there is a risk that there may be a mismatch in timing between the cash flow of the underlying assets backing the security and the repayment obligation of the security upon maturity. In the use of mortgage-backed securities, there is also a risk that there may be a drop in the interest rates charged on the mortgages, a mortgagor may default on its obligations under a mortgage or there may be a drop in the value of the property secured by the mortgage. Capital depletion risk Certain Funds, as well as Series FT, OT, PFT, T, T-USD and V securities of the Funds, may make distributions comprised in whole or in part, of return of capital. A return of capital distribution reduces the amount of your original investment and may result in the return to you of the entire amount of your original investment. This distribution should not be confused with “yield” or “income”. Return of capital distributions that are not reinvested will reduce the net asset value of the Fund, which could reduce the Fund’s ability to generate future distributions. Return of capital can only be distributed to the extent that there is a positive balance in the paid-up capital account of the series on which the distribution is made. To the extent that the balance in the capital account becomes, or is at risk of becoming, zero, monthly distributions may be reduced or discontinued without prior notice. Concentration risk A Fund that has invested a larger portion of its assets in a single issuer may be less diversified and may experience larger fluctuations in value as a result of the price volatility of that issuer. In addition, the Fund may not be able to sell its full investment in that issuer at current prices if there is a shortage of buyers willing to purchase those securities. Consequently, it could be more difficult for the Fund to obtain a reasonable price for that issuer’s securities. To mitigate this risk, subject to certain exceptions, a mutual fund is restricted

from purchasing additional securities if more than 10% of its assets, based on market value, are already invested in an issuer. Certain of the Funds have received an exemption from this restriction.

Corporate class fund risk While the assets and liabilities of each Corporate Class Fund are tracked separately, Franklin Templeton Corporate Class Ltd. as a whole is responsible for all of the financial obligations of the Corporate Class Funds combined. If a Corporate Class Fund cannot pay its expenses using its proportionate share of the assets, Franklin Templeton Corporate Class Ltd. may have to pay those expenses out of the other Corporate Class Funds’ assets which could lower the investment return of those other Corporate Class Funds. As well, the tax consequences of an investment in a Corporate Class Fund will depend in part on the tax position of Franklin Templeton Corporate Class Ltd. as a whole and will differ from an investment in a mutual fund that is not part of a multi-class structure. Please see the Glossary on page 273 and Corporate Class Funds on page 25 for more information on the Corporate Class Funds.

Credit risk This is the risk that an issuer of a bond or other fixed income security will not be able to pay interest or repay the principal when it is due. This risk is generally lower if the issuer has a high credit rating from an independent credit rating agency while it is generally higher if the issuer has a low credit rating or no credit rating. The prices of securities with lower credit ratings tend to fluctuate more than prices of securities with higher credit ratings. Cyber security risk As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a Fund to lose proprietary information, suffer data corruption, or lose operational capacity. This in turn could cause a Fund to incur regulatory penalties, reputational damage,


additional compliance costs associated with corrective measures, and/or financial loss. Cyber security breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches of a Fund’s third party service providers (e.g., administrators, transfer agents, custodians and sub-advisors) or issuers that a Fund invests in can also subject a Fund to many of the same risks associated with direct cyber security breaches. Like with operational risk in general, the Funds have established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially since the Funds do not directly control the cyber security systems of issuers or third party service providers. Depositary receipt risk Banks or other financial institutions, known as depositaries, issue depositary receipts that represent the value of securities issued by foreign companies. These receipts are most often known as an ADRs (American Depositary Receipts), GDRs (Global Depositary Receipts) or EDRs (European Depositary Receipts), depending on the location of the depositary. Funds invest in depositary receipts to obtain indirect ownership of foreign securities without trading on foreign markets. Depositary receipts are subject to many of the risks of the underlying security. In addition, there is a risk that the value of the depositary receipts may be less than the value of the foreign securities. This difference can result from several factors: fees and expenses related to the depositary receipts; fluctuations in the exchange rate between the currency of the depositary receipts and the currency of the foreign securities; differences in taxes between the depositary receipts’ and the foreign securities’ jurisdictions; and the impact of the tax treaty, if any, between the depositary receipts’ and the foreign securities’ jurisdictions. For some depositary receipts, the custodian or similar financial institution that holds the issuer’s securities in a trust account is located in the issuer’s home country. The Fund could be exposed to the credit risk of the custodian or

financial institution, and in cases where the issuer’s home country does not have developed markets, greater market risk. Also, a Fund faces the risks that: (i) the depositary receipts may be less liquid; (ii) the holders of the depositary receipts may have fewer legal rights than if they held the foreign securities directly; (iii) there may be delays in receiving any dividend and interest payments or exercising rights as a securityholder; and (iv) the depositary may change the terms of the depositary receipt, including terminating the depositary receipt, in such a way that a mutual fund is forced to sell at an inopportune time.

Derivative risk Although derivatives are often used by mutual funds to avoid risk, they have their own kinds of risk. Any Fund that invests in derivatives, or that holds other underlying funds, which invest in derivatives would also be subject to these risks:

The use of derivatives for hedging may not be effective.

Some derivatives may limit a Fund’s potential for gain as well as loss.

The cost of entering and maintaining derivative contracts may reduce the Fund’s total return to investors.

The price of a derivative may not accurately reflect the value of the underlying currency or security. This could prevent the Fund from making a profit or limiting its losses.

When entering into a derivative contract, a Fund may be required to deposit funds or securities with the counterparty. If the counterparty goes bankrupt, the Fund could lose or be delayed in recovering these deposits. If a Fund gives a security interest to the counterparty, it may be enforced against the Fund's assets.

There is no guarantee a market will exist when a Fund wants to close its derivative contract. This could prevent the Fund from making a profit or limiting its losses.

The exchanges on which the derivatives are traded may set daily trading limits, preventing a Fund from closing out a contract.

If derivatives are being traded on foreign markets, it may be more difficult and take longer to complete the transaction. Foreign derivatives can also be more risky than


derivatives traded on North American markets.

If the other party to a derivative contract is unable to meet its obligations, the Fund may experience a loss. To minimize this risk, the Fund will select counterparties with a credit rating at least as high as the minimum credit rating required under securities legislation.

Where a market change is expected, a Fund may not be able to find a suitable counterparty against which to hedge the market risk.

Dividend-oriented companies risk Companies that have historically paid regular dividends to securityholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer’s securities and less available income for the Fund.

Emerging markets risk In emerging market countries, securities markets may be smaller than in more developed countries, making it more difficult to sell securities in order to take profits or avoid losses. Companies in these markets may have limited product lines, markets or resources, making it difficult to measure the value of the company. Political instability and possible corruption, as well as lower standards of regulation for business practices increase the possibility of fraud and other legal problems. The value of Funds that buy these investments and of Top Funds holding underlying funds that buy such investments may rise and fall substantially.

Equity risk The value of Funds that invest in equity securities, also called stocks or securities, will be affected by changes in the market price of those securities. The value of Top Funds, whose underlying funds invest in equity securities, will also be affected.

The price of a share is influenced by the outlook for the company that issued it and by general economic, industry and market trends. When the economy is strong, the outlook for many companies will be good, and share prices will generally rise. So will the value of mutual funds that own these securities. On the other hand, share prices usually decline with a general economic or industry downturn.

Foreign investment risk Includes:

Foreign equity risk The value of foreign securities may be influenced by the policies of foreign governments and by political, economic or social instability. There may be less information about foreign companies than Canadian firms and there may be lower standards of government supervision and regulation in foreign financial markets. A Fund that holds these securities may have difficulty enforcing legal rights in jurisdictions outside Canada. Foreign currency risk The value of securities issued in foreign currencies, or of securities that pay income in foreign currencies, is affected by changes in the value of the Canadian dollar relative to those currencies. As a result, currency fluctuations may indirectly adversely affect the value of a Fund’s investments and, in turn, may also affect the value of Fund securities held by an investor. For example, if the U.S. dollar rises relative to the Canadian dollar, U.S. securities will be worth more in Canadian dollars. On the other hand, if the U.S. dollar falls, U.S. securities will be worth less in Canadian dollars. Funds or series whose strategy includes currency hedging will seek to minimize this risk. To the extent that a Fund does not hedge its foreign currency risk, the value of that Fund’s assets and income could be adversely affected by currency exchange rate movements. Foreign currency hedging risk Certain Funds will invest in derivatives, such as forward contracts, to attempt to eliminate the effect of changes in exchange rates, however there is no guarantee that attempts to hedge currency risk will be successful and no hedging strategy can eliminate currency risk entirely. There may be an imperfect historical correlation between the behavior of the derivative instrument and


the currency being hedged. Any historical correlation may not continue for the period during which the hedge is in place. In addition, the inability to close out derivative positions could prevent the Fund from investing in derivatives to effectively hedge its currency exposure. Should a hedging strategy be incomplete or unsuccessful, the value of that Fund’s assets and income can remain vulnerable to fluctuations in currency exchange rates. There may be circumstances in which a hedging transaction may reduce currency gains that would otherwise arise in the valuation of the relevant Fund. The gains or losses on and the costs of such hedging transactions will accrue solely to the relevant series of the Funds. Stock connect risk Certain Funds may invest in eligible China A-securities (“Stock Connect Securities”) listed and traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange (collectively referred to as “SSE”) through the Stock Connect program (“Stock Connect”). Stock Connect is a securities trading and clearing program developed by Hong Kong Exchanges and Clearing Limited (“HKEx”), SSE and China Securities Depository and Clearing Corporation Limited for the establishment of mutual market access between HKEx and SSE. Stock Connect Securities generally may not be sold, purchased or transferred other than through Stock Connect in accordance with its rules and regulations. While Stock Connect is not subject to individual investment quotas, there are daily and aggregate investment quotas imposed by Chinese regulations which apply to all Stock Connect participants. These quotas may restrict or preclude a Fund’s ability to invest in Stock Connect Securities at the Fund’s preferred time.

Inflation linked bonds risk The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause

the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Interest rate risk The interest rate on a bond is set when it is issued. When interest rates fall, the price of existing bonds will rise because existing bonds pay higher rates than new bonds, and are therefore worth more. On the other hand, when interest rates rise, the price of existing bonds will fall. The value of Funds that invest in bonds will be affected by changes in interest rates and so will the value of Top Funds whose underlying funds hold such bonds. The value of debt securities that pay a floating or variable rate of interest are generally less price sensitive to interest rate changes.

Funds that invest in convertible securities also carry interest rate risk. These securities provide a fixed income stream, so their value varies inversely with interest rates, just like bond prices. However, because they can be converted into common securities, convertible securities are less affected by interest rate fluctuations than bonds. Large investor risk Securities of the Funds may be purchased and redeemed by large investors, such as financial institutions or other mutual funds including Top Funds. These investors may purchase or redeem large numbers of securities of a Fund at one time. Franklin Templeton Investments Corp. and unaffiliated third parties may offer investment products which use a “fund on fund” structure whereby a top fund invests all or a significant portion of its assets in a “bottom” or “underlying fund”. The purchase or redemption of a substantial number of securities of a Fund may require the portfolio advisor to change the composition of a portfolio significantly or may


force the portfolio advisor to buy or sell investments at unfavourable prices, which can affect Fund performance and may increase realized capital gains of the Fund. If a Fund experiences a “loss restriction event” (i) the Fund will be deemed to have a year-end for tax purposes (which would result in an allocation of the Fund’s taxable income at such time to securityholders so that the Fund is not liable for income tax on such amounts) and (ii) the Fund will be subject to the loss restriction rules generally applicable to corporations that experience an acquisition of control, including a deemed realization of any unrealized capital losses and restrictions on their ability to carry forward losses. Generally, a Fund will be subject to a loss restriction event when a person becomes a “majority-interest beneficiary” of the Fund, or a group of persons becomes a “majority-interest group of beneficiaries” of the Fund, as those terms are defined in the affiliated persons rules contained in the Tax Act, with appropriate modifications. Generally, a majority-interest beneficiary of a Fund will be a beneficiary who, together with the beneficial interests of persons and partnerships with whom the beneficiary is affiliated, has a fair market value that is greater than 50% of the fair market value of all the interests in the income or capital, respectively, of the Fund. Generally, a person is deemed not to become a “majority-interest beneficiary”, and a group of persons is deemed not to become a “majority-interest group of beneficiaries”, of a Fund if the Fund meets certain investment requirements and qualifies as an “investment fund” under the rules.

Liquidity risk Illiquid securities are securities with a limited trading market. They may be difficult to value accurately or to sell, and may trade at a price significantly lower than their value. The value of Funds that buy these investments and of Funds, whose underlying funds buy these investments, may rise and fall substantially. To mitigate this risk, a mutual fund is restricted from purchasing additional illiquid securities if more than 10% of its assets, based on market value, are already invested in illiquid securities.

Low-rated security risk Some investments offer a better return than others because they carry higher risk. They may have a credit rating below investment grade or be unrated. These investments may be hard to value because market quotations are unavailable, and they may be less liquid than higher-grade investments. They have the potential for substantial loss as well as gain, as will the Funds that buy these investments and Funds that hold underlying funds, which invest in low-rated securities.

Portfolio management risk All actively managed mutual funds are dependent on their portfolio advisor(s) to select individual securities or other investments and, therefore, are subject to the risk that poor security selection or market allocation will cause a mutual fund to underperform relative to its benchmark or other mutual funds with similar investment objectives.

Regional focus risk A Fund that may invest a significant portion of its assets in companies in a specific region, including Europe, is subject to greater risks of adverse developments in that region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. Current political uncertainty surrounding the European Union (EU) and its membership, including the 2016 referendum in which the United Kingdom voted to exit the EU, may increase market volatility. The financial instability of some countries in the EU, including Greece, Italy and Spain, together with the risk of that impacting other more stable countries may increase the economic risk of investing in companies in Europe. Regulatory risk Some industries, such as health care and telecommunications, are heavily-regulated and may receive government funding. Investments in these sectors may be substantially affected by changes in government policy, such as deregulation or reduced government funding. The value of Funds that buy these investments and


Funds that hold underlying funds that buy these investments, may rise and fall substantially. Reinvestment risk A Fund that invests in bonds and other fixed income securities may carry the risk that interest income or principal repayments from the Fund’s investments will be reinvested at lower interest rates in the event of a declining rate environment. REIT risk Equity REITs may be affected by any change in the value of the properties owned and other factors, and their prices tend to go up and down. A REIT’s performance depends on the types of and locations of the properties it owns and how well it manages those properties. A decline in rental income may occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because a REIT may be invested in a limited number of projects or in a particular market segment, it may be more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT under the U.S. federal tax laws could adversely affect the value of a particular REIT or the market for REITs as a whole. These risks may also apply to securities of REIT-like entities domiciled outside the U.S.

Repurchase/reverse repurchase agreements risk A repurchase agreement involves selling a security at one price and simultaneously agreeing to buy it back at a fixed price. A reverse repurchase agreement involves buying a security at one price and simultaneously agreeing to sell it back at a higher price. A Fund may suffer a loss if the other party to the agreement becomes insolvent. The value of the purchased securities may drop or the value of the sold securities may rise between the time the other party becomes insolvent and the time the Fund recovers its investment. The Fund reduces this risk by holding enough of the other party’s securities or cash as collateral to cover its commitments in the agreements. This means the Fund will never

have to borrow to meet its obligations under the agreements. To limit the risks associated with repurchase and reverse repurchase transactions, the Funds require the other party to put up collateral the value of which must be at least 102% of the market value of the security sold (for a repurchase transaction) or cash loaned (for a reverse repurchase transaction). The value of the collateral is confirmed and reset daily. A Fund cannot lend more than 50% of the total value of its assets through securities lending or repurchase transactions.

Securities lending risk Securities lending involves lending portfolio securities held by a Fund to qualified borrowers who have posted collateral for a fee and a set period of time. In lending its securities, a Fund is subject to the risk that the borrower may not fulfill its obligations leaving the Fund holding collateral worth less than the securities it has lent, resulting in a loss to the Fund that holds the Fund. To limit this risk, a Fund must hold collateral worth no less than 102% of the value of the loaned securities and the amount of collateral is adjusted daily to ensure this level is maintained, the collateral may only consist of cash, qualified securities or securities that can be immediately converted into identical securities to those that have been loaned, a Fund cannot lend more than 50% of the total value of its assets through securities lending or repurchase transactions and a Fund’s total exposure to any one borrower in securities, derivative transactions and securities lending must be less than 10% of the total value of the Fund’s assets. Series risk All of the Funds are available in more than one series of securities. Each series has its own fees and expenses which each Fund tracks separately. If a Fund cannot pay the expenses of one series using that series’ proportionate share of the Fund assets, it may have to pay those expenses out of the other series’ proportionate share of the assets, which could lower the investment return of those other series.

Short selling risk Certain Funds may engage in a limited amount of short selling. A short sale is where a Fund


borrows securities from a lender and sells them in the open market (“short sale”). The Fund must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the Fund pays interest to the lender on the borrowed securities. If the value of the securities declines between the time of the initial short sale and the time it repurchases and returns the securities, the Fund makes a profit for the difference (less any interest paid by the Fund to the lender). However, a rise in the price of the borrowed securities will result in a loss to the Fund. There are risks associated with short selling, namely that the borrowed securities will rise in value or not decline enough to cover the Fund’s borrowing costs. The Fund may also experience difficulties in repurchasing the borrowed securities if a liquid market for the securities does not exist. In addition, the lender from whom the Fund has borrowed securities may become bankrupt, causing the borrowing Fund to lose the collateral it deposited with the lender. To limit the risks associated with short sale transactions, a Fund will adhere to controls and limits that are intended to offset these risks by short selling only securities of larger issuers for which a liquid market is expected to be maintained and by limiting the amount of exposure for short sales. A Fund will also deposit collateral only with lenders that meet certain criteria for creditworthiness and only up to certain limits. Although some Top Funds may not engage in short selling directly, they may be exposed to short selling because the underlying funds in which they invest, or the Fund(s) whose returns they track, may be engaged in short selling. Smaller companies risk The share price of smaller companies is usually more volatile than that of more established larger companies. Smaller companies may be developing new products which have not yet been tested in the marketplace or their products may quickly become obsolete. They may have limited resources, including limited access to funds or unproven management, and may trade less frequently and in smaller volume than securities of large companies. They may have few securities outstanding, so a sale or purchase of securities will have a greater impact on the share price. The

value of Funds that buy these investments and of Funds, whose underlying funds buy these investments, may rise and fall substantially.

Specialization risk Some Funds specialize in investing in a particular industry or region of the world. This allows the portfolio advisor to focus on the potential of that industry or geographic area, but it also means that the Fund may be more volatile if there is a downturn in the industry or the geographic area since there are relatively few other investments to offset the downturn. These specialty Funds must continue to invest in a particular industry or geographic area even if it is performing poorly. Tax risk Templeton Growth Fund, Ltd. and Franklin Templeton Corporate Class Ltd. may become subject to tax on certain income earned by the corporation. Where either of these corporations become subject to tax, the board of directors of the corporation will allocate the tax payable by the corporation against the net asset value of such series of the corporation (in the case of Templeton Growth Fund, Ltd.) or such series of such Corporate Class Funds that make up the corporation (in the case of Franklin Templeton Corporate Class Ltd.) as it, in its absolute discretion, determines to be fair and equitable. Tracking risk Certain mutual funds (the “Tracking Funds”) may seek to have all or a substantial portion of their returns linked to the performance of securities of one or more mutual fund(s) (the “Reference Fund”) by either directly purchasing the appropriate securities or by entering into forward contracts and other derivative instruments. The return (performance) of a Tracking Fund may be lower than that of its respective Reference Fund because the Tracking Fund bears its own fees and expenses, including the costs of any forward contracts and other derivatives that it may use to achieve its investment objectives. Additionally, there may be a delay between the time an investor buys securities of a Tracking Fund and the time the Tracking Fund gets additional exposure to the Reference Fund. During this delay, the Tracking Fund may be unable to track the performance of its corresponding Reference


Fund. Such performance lags and tracking errors could result in the price of securities of the Tracking Fund not precisely tracking the unit price of its Reference Fund.


Organization and management of the Franklin Templeton Investments Funds Manager Franklin Templeton Investments Corp. 5000 Yonge Street Suite 900 Toronto, Ontario M2N 0A7

The manager is responsible for the business and operation of the Funds. We provide all general administrative and management services, such as: calculating net asset values and preparing

financial statements calculating and arranging for payment of

distributions to investors and commissions to Dealers

making regulatory and tax filings providing or coordinating all other services

required by the Funds office space, facilities and administrative support. These services are offered to Series O and Series OT investors under agreements between the investor and the Manager.

Portfolio advisors Except in respect of Franklin Templeton Canadian Large Cap Fund, all of the portfolio advisors or sub-advisors are affiliates or part of the Manager. Foyston, Gordon & Payne Inc., Toronto, Ontario, is the sub-advisor to Franklin Templeton Canadian Large Cap Fund.

The portfolio advisors manage the investment portfolios of the Funds. Franklin Bissett Investment Management is part of Franklin Templeton Investments Corp. Some of the Funds use sub-advisors appointed by us to provide advice for a portion or for the entire portfolio. If a sub-advisor has been appointed, they are named in the “Fund Details” section for the Fund in the Fund Specific Information section of the prospectus. Under securities law, we are required to advise you that where portfolio management services are provided by an advisor or sub-advisor located outside of Canada, it may be difficult to enforce any legal rights against them because all or substantially all of their assets are located outside of Canada. International sub-advisors are not fully subject to the requirements of Canadian securities legislation and we are responsible for the investment advice provided by the following entities in their capacity as sub-advisors to the Funds: Templeton Global Advisors Limited, Templeton Asset Management Ltd., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC, Templeton Investment Counsel,


LLC, Franklin Templeton Investments (ME) Limited and Fiduciary Trust International of California. Franklin Advisers, Inc., Franklin Mutual Advisers, LLC and Franklin Templeton Institutional, LLC have received an exemption from the Commodity Futures Act (Ontario) (the “CFA”) registration requirements in respect of any trades made by the Funds they advise in commodity futures contracts and commodity futures options traded on commodity futures exchanges outside of Canada and cleared through clearing corporations outside of Canada. Accordingly, they will not be CFA registrants and the protections available to CFA registered clients will not be available to investors in the Funds they advise.

Principal distributors Franklin Templeton Investments Corp. Toronto, Ontario FTC Investor Services Inc. (“FTC ISI”) Toronto, Ontario (for Series F, FT, O, OT, PF and PF (Hedged))

As the principal distributors, we and FTC ISI market the Funds and arrange for sale of their securities through Dealers across Canada.

Custodian Templeton Growth Fund, Ltd. Templeton Global Bond Fund JPMorgan Chase Bank New York, New York All Franklin Mutual Series Funds, Franklin Funds (other than Franklin Global Small-Mid Cap Fund, Franklin Global Growth Fund and Franklin Global Growth Corporate Class), Templeton Global Balanced Fund and each of their respective Corporate Class Funds (where applicable) CIBC Mellon Trust Company Toronto, Ontario All other Funds J.P. Morgan Bank Canada Toronto, Ontario

The custodian, or any sub-custodian it may appoint, has physical custody of the investments made for the Funds.

Registrar and transfer agent Franklin Templeton Investments Corp. Toronto, Ontario

The registrar and transfer agent: maintains account records of the owners of Fund

securities carries out all purchase, redemption, conversion

and switch orders


provides reporting and statements to investors and Dealers

Trustee Franklin Templeton Investments Corp. Toronto, Ontario

For Funds that are organized as trusts, the trustee holds title to the securities owned by the Funds on behalf of securityholders.

Auditor PricewaterhouseCoopers LLP Chartered Professional Accountants Toronto, Ontario

The auditor audits the annual financial statements of the Funds. Securityholder approval will not be required for a change in the auditor of a Fund provided the Independent Review Committee has approved such change and securityholders receive notice 60 days in advance of any such change in auditor.

Independent Review Committee In accordance with National Instrument 81-107 – Independent Review Committee for Mutual Funds, the Manager has established an Independent Review Committee (“IRC”) to provide impartial judgment on conflicts of interest matters related to the operations of the Funds. The IRC prepares at least annually, a report of its activities for securityholders which is available on our website at www.franklintempleton.ca or, at your request and at no cost, by calling toll-free 1-800-387-0830 or by email at [email protected]. Currently, the members of the IRC are Gary Norton (Chair), Bruce Galloway and Stuart Douglas. Additional information about the IRC is available in the Annual Information Form. In certain circumstances, your approval may not be required under securities legislation to effect a fund merger provided that the IRC has approved such change and securityholders receive notice 60 days in advance of any such fund merger.

Fund on Fund Structures Each of the Top Funds invests in other mutual funds, including mutual funds managed by the Manager. Securityholders of a Top Fund have no rights of ownership in the securities of the underlying fund(s). Where the Manager or an affiliate of the Manager is the manager of the underlying funds in which the Top Fund invests, the Manager will not vote the securities of the underlying fund(s). The Manager is permitted to arrange for these securities to be voted by the beneficial securityholders of the applicable Top Fund. However, given the complexity and costs associated with implementing a flow-through voting structure, it is unlikely that we will arrange for a flow-through of voting rights.


Purchases, switches and redemptions Classes and Series All of the Funds (other than Templeton Growth Fund, Ltd. and the Corporate Class Funds) are organized as mutual fund trusts. Templeton Growth Fund, Ltd. and Franklin Templeton Corporate Class Ltd. are mutual fund corporations.

The Corporate Class Funds are actually different classes of securities of Franklin Templeton Corporate Class Ltd. See Corporate Class Funds on page 25 and Income tax considerations for investors on page 59 for more details.

The Funds in this prospectus offer up to 13 series – Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged), PFT, T, T-USD and V (the “series”). The table below sets out the availability of Funds in each series:

Series Funds Available

A All Funds, except Templeton Asian Growth Fund, Templeton Frontier Markets Fund, Franklin Bissett Canadian Government Bond Fund, FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018), FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018), FT Growth Pool (to be renamed FT Growth Private Wealth Pool effective June 1, 2018) and Franklin Templeton Canadian Large Cap Fund

A (Hedged) Templeton Growth Fund, Ltd.

F All Funds, except Templeton Asian Growth Fund, Templeton Frontier Markets Fund, FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018), FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018), FT Growth Pool (to be renamed FT Growth Private Wealth Pool effective June 1, 2018) and Franklin Templeton Canadian Large Cap Fund

FT Templeton Global Balanced Fund Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Hedged Corporate Class Franklin Bissett Canadian Dividend Corporate Class Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Corporate Class Portfolio

I Templeton Asian Growth Corporate Class Templeton Emerging Markets Fund Templeton Global Balanced Fund Templeton Global Bond Fund Templeton Global Bond Fund (Hedged) Templeton Global Smaller Companies Fund and its respective Corporate Class Fund Templeton Growth Fund, Ltd. and its respective Corporate Class Fund Templeton International Stock Fund and its respective Corporate Class Fund


Franklin Global Small-Mid Cap Fund Franklin High Income Fund Franklin Strategic Income Fund Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Hedged Corporate Class Franklin U.S. Rising Dividends Corporate Class Franklin Bissett Canadian All Cap Balanced Fund and its respective Corporate Class Fund Franklin Bissett Canadian Balanced Fund and its respective Corporate Class Fund Franklin Bissett Canadian Dividend Fund and its respective Corporate Class Fund Franklin Bissett Canadian Equity Fund and its respective Corporate Class Fund Franklin Bissett Core Plus Bond Fund Franklin Bissett Corporate Bond Fund Franklin Bissett Dividend Income Fund and its respective Corporate Class Fund Franklin Bissett Money Market Fund and its respective Corporate Class Fund Franklin Bissett Monthly Income and Growth Fund Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) and its respective Corporate Class Fund Franklin Mutual European Fund Franklin Mutual Global Discovery Fund and its respective Corporate Class Fund Franklin Mutual U.S. Shares Fund and its respective Corporate Class Fund Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Portfolio Franklin Quotential Growth Corporate Class Portfolio

O All Funds

OT Templeton Global Balanced Fund Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Hedged Corporate Class Franklin Bissett Canadian Dividend Corporate Class Franklin Bissett Canadian Equity Corporate Class Franklin Bissett Dividend Income Fund Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Portfolio

PF Templeton EAFE Developed Markets Fund Templeton Emerging Markets Fund and its respective Corporate Class Fund Templeton Global Balanced Fund


Templeton Global Bond Fund Templeton Global Bond Fund (Hedged) Templeton Global Smaller Companies Fund Templeton Growth Fund, Ltd. and its respective Corporate Class Fund Templeton International Stock Fund and its respective Corporate Class Fund Franklin Global Growth Fund Franklin Global Small-Mid Cap Fund Franklin High Income Fund Franklin Strategic Income Fund Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018) Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Hedged Corporate Class Franklin U.S. Opportunities Fund Franklin U.S. Rising Dividends Fund and its respective Corporate Class Fund Franklin Bissett Canadian All Cap Balanced Fund Franklin Bissett Canadian Balanced Fund and its Corporate Class Fund Franklin Bissett Canadian Bond Fund Franklin Bissett Canadian Dividend Fund and its Corporate Class Fund Franklin Bissett Canada Plus Equity Fund Franklin Bissett Canadian Equity Fund and its respective Corporate Class Fund Franklin Bissett Canadian Government Bond Fund Franklin Bissett Canadian Short Term Bond Fund Franklin Bissett Core Plus Bond Fund Franklin Bissett Corporate Bond Fund Franklin Bissett Dividend Income Fund and its respective Corporate Class Fund Franklin Bissett Energy Corporate Class Franklin Bissett Microcap Fund Franklin Bissett Money Market Fund Franklin Bissett Monthly Income and Growth Fund Franklin Bissett Small Cap Fund Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) Franklin ActiveQuant U.S. Funds (formerly Franklin Bissett U.S. Focus Corporate Class) and its respective Corporate Class Fund Franklin Mutual European Fund Franklin Mutual Global Discovery Fund and its respective Corporate Class Fund Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Fixed Income Portfolio Franklin Quotential Growth Portfolio Franklin Quotential Growth Corporate Class Portfolio FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018) FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018)


FT Growth Pool (to be renamed FT Growth Private Wealth Pool effective June 1, 2018)

PF (Hedged) Franklin U.S. Rising Dividends Fund

PFT Templeton Global Balanced Fund Templeton International Stock Fund Franklin U.S. Monthly Income Fund Franklin U.S. Rising Dividends Fund Franklin Bissett Canadian Balanced Fund Franklin Bissett Dividend Income Fund Franklin Bissett Monthly Income and Growth Fund Franklin Mutual Global Discovery Fund Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Portfolio

T Templeton Global Balanced Fund Templeton International Stock Fund and its respective Corporate Class Fund Franklin Global Growth Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin U.S. Monthly Income Hedged Corporate Class Franklin U.S. Rising Dividends Fund and its respective Corporate Class Fund Franklin U.S. Rising Dividends Hedged Corporate Class Franklin Bissett Canadian All Cap Balanced Fund and its respective Corporate Class Fund Franklin Bissett Canadian Balanced Fund and its respective Corporate Class Fund Franklin Bissett Canadian Dividend Corporate Class Franklin Bissett Canadian Equity Corporate Class Franklin Bissett Dividend Income Fund and its respective Corporate Class Fund Franklin Bissett Monthly Income and Growth Fund Franklin Mutual Global Discovery Fund and its respective Corporate Class Fund Franklin Mutual U.S. Shares Fund and its respective Corporate Class Fund Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Portfolio Franklin Quotential Growth Corporate Class Portfolio

T-USD Templeton Global Balanced Fund Franklin U.S. Monthly Income Fund and its respective Corporate Class Fund Franklin Mutual Global Discovery Fund and its respective Corporate Class Fund Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio


V Templeton Global Balanced Fund Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio

About Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged, PFT, T, T-USD and V For minimum investments required to purchase Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged), PFT, T, T-USD and V securities, please see Buying Funds and Minimum investments on page 23 for details. To determine which particular series is right for you, please see below.

The investment advisory services fee option is not available for Series F, FT, PF, PF (Hedged) and PFT (where applicable), in the following Funds: Franklin Templeton Canadian Large Cap Fund, Franklin Bissett Canadian All Cap Balanced Fund, Templeton Frontier Markets Fund, Templeton Asian Growth Fund, Franklin Mutual U.S. Shares Fund, Franklin Mutual U.S. Shares Corporate Class, Franklin Bissett Canadian All Cap Balanced Corporate Class and Templeton Frontier Markets Corporate Class.

Please see the Investment Advisory Services Fee section for full details on this purchase option.

Series A Series A is available to all investors, subject to certain minimum investment requirements.

Series A (Hedged) Series A (Hedged) is available to all investors who are interested in investing in Templeton Growth Fund, Ltd., subject to certain minimum investment requirements. Templeton Growth Fund, Ltd. holds a significant portion of securities traded in currencies (“Currencies of Investment”) other than the Canadian dollar. The value of such securities may decrease if the Currencies of Investment fall relative to the Canadian dollar. Therefore, a hedging strategy is employed by the Fund that seeks to reduce, as far as possible, the influence of changes in the exchange rate between the Canadian dollar and the Currencies of Investment held by Templeton Growth Fund, Ltd. on the

portion of the Fund’s net assets attributable to the Series A (Hedged) securities outstanding. Series F Series F is available to the following types of investors as determined by us in our discretion:

• investors who participate in dealer-sponsored

“fee-for-service” or wrap programs and who pay their advisor an hourly fee or annual asset-based fee rather than commissions on each transaction

• investors who participate in “fee-for-service” or wrap programs where we administer the investment advisory services fee

• investors whose Dealer is FTC Investor Services Inc.

• investors who purchase, sell or hold their securities through a discount brokerage account

• any other investors for whom we do not incur distribution costs.

Investors wishing to purchase Series F securities must also meet the minimum investment requirements.

In addition, where a Fund also offers Series PF securities, then: • Series F securities are only available to

investors with less than $100,000 invested in securities of all Funds held in Related Accounts

• On a monthly basis, the Manager will automatically switch Series F investors with $100,000 or more invested in securities of all


Funds held in Related Accounts to Series PF securities.

Series F is designed for investors participating in programs that do not require us to incur distribution costs in the form of trailing commissions to Dealers. We are able to reduce our management fee on the Series F securities because our costs to distribute these securities are lower.

Investors in Series F may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details.

Participation in Series F is only available with our prior consent and the consent of your Dealer organization.

Series FT Series FT is the same as Series F except for the distribution policies, as Series FT is designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund will consist of net income and/or a return of capital, which can either be reinvested in additional securities or paid in cash (except for securities held in a Franklin Templeton Investments registered plan which must be invested in additional securities of the Fund). Any net income not distributed during the year, as well as capital gains, will be distributed annually in December and must be reinvested in additional securities of the Fund. Investors in Series FT may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details. Series FT is available to the following types of investors as determined by us in our discretion:

• investors who participate in dealer-sponsored “fee-for-service” or wrap programs and who pay their advisor an hourly fee or annual asset-based fee rather than commissions on each transaction

• investors who participate in “fee-for-service” or wrap programs where we administer the investment advisory services fee

• investors whose Dealer is FTC Investor Services Inc.

• investors who purchase, sell or hold their

securities through a discount brokerage account

• any other investors for whom we do not incur distribution costs.

Investors wishing to purchase Series FT securities must also meet the minimum investment requirements. In addition, where a Fund also offers Series PFT securities, then: • Series FT securities are only available to

investors with less than $100,000 invested in securities of all Funds held in Related Accounts

• On a monthly basis, the Manager will automatically switch Series FT investors with $100,000 or more invested in securities of all Funds held in Related Accounts to Series PFT securities.

Series FT is designed for investors participating in programs that do not require us to incur distribution costs in the form of trailing commissions to Dealers. We are able to reduce our management fee on the Series FT securities because our costs to distribute these securities are lower. Participation in Series FT is only available with our prior consent and the consent of your Dealer organization.


Series I Series I is available to investors who have in total invested a minimum of $100,000 with the Manager. Series I is designed for certain investors who have made an arrangement with their Dealer to purchase a series with reduced management fees because of the lower trailing commissions paid to Dealers on Series I securities.

Series O Series O is available to the following types of investors, as determined by us in our discretion: • investors who have in total invested a

minimum of $200,000 in Funds within one month from initial purchase of Series O or OT securities, held in Related Accounts (as defined on page 24 under the heading “Account Linking Service”). The investment minimum may be waived for purchases made by investors who purchase through a discretionary managed account.

• mutual funds managed by us or by a third

party that use a fund on fund structure, provided the third party fund manager has entered into an agreement with us

• counterparties to derivatives contracts entered

into by the Funds

Investors in Series O may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details. Series OT Series OT is the same as Series O, except for the distribution policies, as Series OT is designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund will consist of net income and/or a return of capital, which can either be reinvested in additional securities or paid in cash (except for securities held in a Franklin Templeton Investments registered plan which must be invested in additional securities of the Fund). Any net income

not distributed during the year, as well as capital gains, will be distributed annually in December and must be reinvested in additional securities of the Fund.

Investors in Series OT may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details. Series OT is available to the following types of investors, as determined by us in our discretion:

• investors who have in total invested a minimum of $200,000 in Funds within one month from initial purchase of Series O or OT securities, held in Related Accounts (as defined on page 24 under the heading “Account Linking Service”). The investment minimum may be waived for purchases made by investors who purchase through a discretionary managed account.

Series PF Series PF is available to the following types of investors as determined by us in our discretion:

• investors who participate in dealer-sponsored “fee-for-service” or wrap programs and who pay their advisor an hourly fee or annual asset-based fee rather than commissions on each transaction

• investors who participate in “fee-for-service” or

wrap programs where we administer the investment advisory services fee

• investors who purchase through a discretionary managed account

• any other investors for whom we do not incur

distribution costs.

Series PF is available to investors who have in total invested a minimum of $100,000 in Funds within one month from initial purchase of Series PF or PFT securities, held in Related Accounts (as defined on page 24 under the heading “Account Linking Service”). The investment minimum may be waived for purchases made by


investors who purchase through a discretionary managed account. Series PF is designed for investors participating in programs that do not require us to incur distribution costs in the form of trailing commissions to Dealers. We are able to reduce our management fee on the Series PF securities because our costs to distribute these securities are lower.

Investors in Series PF may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details.

Participation in Series PF is only available with our prior consent and the consent of your Dealer organization.

Series PF (Hedged) Series PF (Hedged) is available to all investors who are interested in investing in Franklin U.S. Rising Dividends Fund, subject to certain minimum investment requirements. Franklin U.S. Rising Dividends Fund holds a significant portion of securities traded in U.S. Dollars. The value of such securities may decrease if the U.S. dollar falls relative to the Canadian dollar. Therefore, a hedging strategy is employed by the Fund that seeks to reduce, as far as possible, the influence of changes in the exchange rate between the Canadian dollar and the U.S. dollar held by Franklin U.S. Rising Dividends Fund on the portion of the Fund’s net assets attributable to the Series PF (Hedged) securities outstanding.

Investors in Series PF (Hedged) may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details. Series PFT Series PFT is the same as Series PF, except Series PFT is designed for investors seeking

regular monthly cash flows from a Fund. Monthly distributions for each Fund will consist of net income and/or a return of capital, which can either be reinvested in additional securities or paid in cash (except for securities held in a Franklin Templeton Investments registered plan which must be invested in additional securities of the Fund). Any net income not distributed during the year, as well as capital gains, will be distributed annually in December and must be reinvested in additional securities of the Fund.

Investors in Series PFT may also use the investment advisory services fee option offered by us. If this option is selected, then we will collect an investment advisory services fee of up to 1.50% on your behalf and remit it to your Dealer. Please see the “Investment Advisory Services Fee” section for more details. Series T (including Series T-USD) Series T is available to all investors, subject to certain minimum investment requirements. Series T is the same as Series A, except Series T is designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund will consist of net income and/or a return of capital, which can either be reinvested in additional securities or paid in cash (except for securities held in a Franklin Templeton Investments registered plan which must be invested in additional securities of the Fund). With our Flexible Series T solution, you also have the option of choosing to have a portion of your dividends or distributions paid out as cash and the remainder reinvested. Please speak with your investment advisor for more information on Flexible Series T. Any net income not distributed during the year, as well as capital gains, will be distributed annually in December and must be reinvested in additional securities of the Fund.

Monthly distributions for Series T-USD are an amount fixed in U.S. dollars and will therefore not fluctuate based on the exchange rate of the Canadian dollar. Accordingly, the distributions for Series T-USD securities and the net asset value will differ from that of the Canadian dollar Series T securities.


Series V Series V is the same as Series I, except Series V is designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund will consist of net income and/or a return of capital, which can either be reinvested in additional securities or paid in cash (except for securities held in a Franklin Templeton Investments registered plan which must be invested in additional securities of the Fund). Any net income not distributed during the year, as well as capital gains, will be distributed annually in December and must be reinvested in additional securities of the Fund. Series V is available to investors who have in total invested a minimum of $100,000 with the Manager. The Series V is designed for certain investors who have made an arrangement with their Dealer to purchase a series with reduced management fees because of the lower trailing commissions paid to Dealers on Series V securities. The price of a Fund We calculate the net asset value (“NAV”) for each series at the close of trading on The Toronto Stock Exchange (“TSX”) every business day (usually 4 p.m. ET). For Funds available in U.S. dollars, we calculate the NAV in Canadian dollars and convert it into U.S. dollars using that day’s exchange rate. Although Series T-USD is denominated in Canadian dollars, the monthly distributions for Series T-USD securities are an amount fixed in U.S. dollars and will therefore not fluctuate based on the exchange rate of the Canadian dollar. The distributions for Series T-USD securities (and the NAV) will therefore differ from that of the Canadian dollar Series T securities. The net assets of a series is computed by calculating the series’ proportionate share of the assets and liabilities of the Fund common to all series, adjusted for the assets and liabilities of the Fund attributable only to that series. Expenses directly attributable to a series are charged to that series. Other expenses, investment income, realized and unrealized capital and foreign exchange gains and losses are allocated proportionately to each series based upon the relative net assets of each series, except for items

that can be specifically attributed to one or more series. If we receive your transaction request in good order by the close of trading on the TSX, we will process your order at the NAV (and the exchange rate, if applicable) on that date. Otherwise, we will process your order on the next business day. The price of a mutual fund

The NAV of any mutual fund is calculated by: adding up the fund’s assets (its holdings in equity,

fixed income and money market securities, cash, and receivables)

subtracting the fund’s liabilities (any money the fund owes, for example, accrued management fees)

The NAV in respect of a series is called its series net asset value per security: assets attributable liabilities attributable to the series - to the series number of securities of the series = price per security = NAV per security For example: $24,000,000 - $4,000,000 = $20 per security 1,000,000 securities The prices change daily with changes in the market value of the securities each Fund holds.

In the case of Franklin Bissett Money Market Fund, the portfolio securities of the Fund will be valued on an amortized cost basis which approximates its fair value. Since all of the net income of the Fund and all of the net realized capital gains (if any) of the Fund will be credited to securityholders of the Fund on a daily basis, it is anticipated that the NAV of the Fund will generally be $10 per security and US$10 per security, respectively.


Opening a Franklin Templeton Investments Account You can open a new account by contacting your investment advisor and completing an application. If you do not have an investment advisor, you may call our Client Services team at 1-800-387-0830. We will be pleased to provide you with options available in your area. The know your client rule

Franklin Templeton Investments Funds, Fiduciary Trust Canada Private Wealth Pools and Franklin Quotential Portfolios are sold through Dealers. The know your client rule ensures that your investment advisor knows about your investment needs and objectives and about your level of investment knowledge. With this information and his or her own expertise, your advisor can recommend the selection of Funds that is best for you. How to buy, switch or redeem Funds You can buy, switch or redeem Funds through Dealers across Canada. Your Dealer may place an order with us by: electronic transmission written request via mail or courier phone or fax. You buy, switch or redeem Funds at the NAV per security of that particular series. Buying Funds Who can buy the Funds? The Funds are offered for sale on a continuous basis, which means, subject to certain restrictions, you can buy, switch or redeem any number of securities at any time.

We reserve the right, from time to time, to “cap” or “close” a Fund or any series if it is determined to be in the best interest of the Fund or series and the securityholders. If we do “cap” or “close” a Fund or a series it may be re-opened for investment at our discretion. Any “capping” or

“closing” of a Fund or any series will not impact redemption rights of securityholders.

Securities of the Funds are not registered for sale in any jurisdiction outside Canada. You may not purchase securities of the Funds:

outside Canada for yourself if you live outside Canada on behalf of a person living outside Canada if this practice is against the law where you or the other person resides, or such foreign residency has negative legal, regulatory or tax implications for a Fund. In some jurisdictions outside Canada, a purchase of Fund securities is not against the law as long as the purchase is unsolicited. In these jurisdictions, you and your Dealer are responsible for submitting only those purchase orders that have been initiated by you.

U.S. Persons (as defined by Regulation S of the U.S. Securities Act of 1933, or by the U.S. Commodity Futures Trading Commission) are not eligible to invest in the Funds. In the absence of written notice to the Funds to the contrary, the provision by a potential investor of a non-U.S. address on the application form for investment in a Fund will be deemed to be a representation and warranty from such investor that he/she/it is not a U.S. Person and that such investor will continue to be a non-U.S. Person unless and until the Fund is otherwise notified of a change in the investor’s U.S. Person status. Minimum investments The table below sets out the minimum investments required to purchase Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged), PFT, T, T-USD or V securities:

Minimum Investment Table

Series Initial Investment

Additional Investments

Pre-authorized Chequing Plans (PACs)

A, A (Hedged)*, F**

$500 $100 $50


Series Initial Investment

Additional Investments

Pre-authorized Chequing Plans (PACs)

I**, PF**, PFT**, V** $100,000 No minimum No minimum

PF (Hedged)**/ ***

$100,000 No minimum No minimum

O**, OT** $200,000 No minimum No minimum

FT**, T, T-USD

$5,000 $100 $50

* Only available for Templeton Growth Fund, Ltd. ** When purchasing Series F, FT, I, O, OT, PF, PF (Hedged),

PFT or V, investors must also meet the additional eligibility criteria for the series. For more information see Classes and Series on page 14.

*** Only available for Franklin U.S. Rising Dividends Fund We reserve the right to change or waive the minimum investment requirements to purchase any series.

Account Linking Service For the purposes of satisfying the minimum investment requirement for Series PF, PFT, O and OT, investors may link related accounts. “Related Accounts” includes any account holding our Funds belonging to: i) you; ii) your spouse; iii) you and your spouse jointly; iv) your children, grandchildren and great-grandchildren and the spouses of each of these persons; and v) accounts in the names of companies for which you own more than 50% voting equity. Account linking is an optional service, should you choose to participate. This service is optional for your Dealer and financial advisor. The Manager does not automatically qualify you for the account linking service. In order to qualify for the account linking service, the necessary application forms must be executed by your Dealer and financial advisor. It is the responsibility of the investor, to work with their financial advisor and Dealer, to manage their account linking preferences, and to ensure that all accounts meet the definition of Related Accounts. Please speak to your financial advisor for further details. We may modify or discontinue the account linking service at any

time, at our sole discretion. Existing participants will be provided 90 days’ notice of any discontinuance of this service. Purchase options For Series A (including A (Hedged)) and T (including T-USD), you can purchase securities in one of three ways: On a front-load basis. You may pay a sales

commission which you negotiate with your Dealer when you buy the Funds.

On a low-load basis. You do not pay a sales commission when you buy the Fund. You may be charged a redemption fee if you redeem your securities within three years of buying them. See Calculating the redemption fee on page 28.

On a deferred sales charge basis. You do not pay a sales commission when you buy the Fund. You may be charged a redemption fee if you redeem your securities within six years of buying them. See Calculating the redemption fee on page 28.

Series I and V are sold only on a front-load basis. Series F, FT, O, OT, PF, PF (Hedged) and PFT are sold only on a no-load basis, which means that you pay no sales charge when you buy or sell.

Your choice will affect the fees you pay and the compensation your Dealer receives. See Fees and expenses on page 35 and Dealer compensation on page 53 for more information.

Funds’ Availability in Canadian and U.S. dollars All Funds are denominated in Canadian dollars. The following Funds are also available in U.S. dollars: Templeton Funds: Templeton Growth Fund,

Ltd. and its respective Corporate Class Fund, Templeton International Stock Fund and its respective Corporate Class Fund, Templeton Emerging Markets Fund and its respective Corporate Class Fund, Templeton Global Smaller Companies Fund and its respective Corporate Class Fund, Templeton Global Bond Fund, Templeton Global Balanced Fund, Templeton EAFE Developed Markets


Fund, Templeton Asian Growth Fund and its respective Corporate Class Fund, Templeton Frontier Markets Fund and its respective Corporate Class Fund

All of the Franklin Funds, except Franklin High Income Fund, Franklin Strategic Income Fund, Franklin U.S. Monthly Income Hedged Corporate Class and Franklin U.S. Rising Dividends Hedged Corporate Class

Franklin Bissett Funds: Franklin ActiveQuant U.S. Fund (formerly Franklin Bissett U.S. Focus Fund) and its respective Corporate Class Fund

All of the Franklin Mutual Series Funds You can use U.S. dollars to purchase U.S. denominated Funds as well as Funds available in U.S. dollars. This option is provided as a convenience only. Purchasing Funds with U.S. dollars will have no impact on the overall performance of your investment in the Fund in Canadian dollars and does not act as a hedge against currency fluctuations between the Canadian and U.S. dollars. Securities purchased in United States dollars may not be held in Franklin Templeton registered plans, except in a tax-free savings account.

Processing your order to buy If you would like to buy our Funds, please contact your Dealer. Your Dealer will: deliver your order to us with your payment in

full, or place an order with us electronically, or by

phone or fax, with payment to follow.

You must pay your Dealer when you buy your securities. If you are purchasing securities of Franklin Bissett Money Market Fund, your Dealer must pay us within one business day of delivering or placing your order. For purchases of any other Fund, your Dealer must pay us within two business days (or such shorter period as may be determined by us in response to changes in applicable laws or general changes to settlement procedures in applicable markets) of delivering or placing your order.

If your Dealer places your purchase order electronically and we do not receive payment for

your securities within the periods listed above, we will redeem your securities on the next business day. Pursuant to securities regulations, if the proceeds are: ● greater than the amount you owe us, the Fund

keeps the difference; ● less than the amount you owe, your Dealer

will owe the difference to the Fund. Your Dealer may be entitled to recover any losses from you.

If you purchase Series O or Series OT and, within 10 days of your purchase, you have not signed a Series O/OT Agreement with us, you agree that we may, at our discretion, proceed to bill your account, in respect of the Management and Administration Fee, in accordance with the applicable pricing tier for the Fund and your investment amount set out in our Series O/OT Agreement. We will not collect the Investment Advisory Services Fee on behalf of your dealer until you have signed a Series O/OT Agreement with us. If you are an Institutional Investor, your Management and Administration Fee is negotiable and we cannot process your purchase until we have received your signed Series O/OT Agreement.

How to Switch to other Funds You can switch from one Fund to another Fund through your Dealer. Switches between Funds A switch from one Fund to another Fund that is a trust or vice versa is a purchase and a redemption resulting in a disposition of the securities switched, meaning you will likely incur a capital gain or loss for tax purposes if you hold your securities outside a registered plan.

Corporate Class Funds Currently, a conversion from one Corporate Class Fund to another Corporate Class Fund is a taxable transaction to you. This means you will realize a capital gain or loss at the time of the conversion.


How to Switch to another Series Automatic Switches The Funds have received an exemption from the Canadian securities regulatory authorities that will allow investors in Series F and FT securities of the Funds with a minimum of $100,000 in Related Accounts to automatically “switch” to Series PF and PFT securities (as applicable) of the same Fund and thereby benefit from the lower combined management and administration fee of Series PF and PFT securities. There are no sales charges, switch fees or other fees payable by the investor upon an Automatic Switch. In addition to switching from one Fund to another Fund, you can also switch from Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged), PFT, T, T-USD or V to a different series through your Dealer. You can only switch from one series to another series if you meet the eligibility requirements associated with the series that you wish to switch into. Due to differences in the NAVs of each series, if you switch from one series to another series, you may receive a different number of securities than you originally held.

A switch between series of the same Fund that is a trust is a redesignation of your existing securities as securities of another series. In the case of Templeton Growth Fund, Ltd. and the Corporate Class Funds, a switch between series of the same Fund is a conversion of your existing securities into securities of another series. A redesignation between series of securities of the same Fund or a conversion within series of securities of Templeton Growth Fund, Ltd. or the Corporate Class Funds is not considered a disposition for tax purposes. See Income tax considerations for investors on page 59 for more details. Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch. Switch fees The following switches may result in a switch fee payable to your Dealer:

switches from securities purchased on a front-load basis to securities on a no-load basis;

switches from securities purchased on a front-load basis to securities on a front-load basis;

switches from securities purchased on a low-load basis to securities on a low-load basis. You will not be charged a redemption fee until you later redeem your securities. The redemption fee will be based on the date and original cost of the low-load securities purchased by you before the switch; and

switches from securities purchased on a deferred sales charge basis to securities on a deferred sales charge basis. You will not be charged a redemption fee until you later redeem your securities. The redemption fee will be based on the date and original cost of the deferred sales charge securities purchased by you before the switch.

A switch from Series F securities of one Fund to Series F securities of another Fund, from Series FT securities of one Fund to Series FT securities of another Fund, from Series PF securities of one Fund to Series PF securities of another Fund, from Series PF (Hedged) securities of one Fund to Series PF securities of another Fund, or from Series PFT securities of one Fund to Series PFT securities of another Fund will not be subject to any switch fees.

Any other types of switches may result in additional fees, such as redemption fees or sales charges.

When your Dealer charges a switch fee on a switch, it will result in a redemption of a sufficient number of your securities being switched to pay the switch fee. Processing your switch order We process your switch order as if it were a redemption of the Fund that you are switching out of and a purchase of the Fund that you are switching into. Accordingly, we follow the procedures listed under Processing your order to buy and Processing your redemption order.


We may limit the right to switch, limit the amount or number of switches, reject any switch or restrict or refuse purchases if (i) we believe that the Fund would be harmed or unable to invest effectively, or (ii) the Fund receives or anticipates simultaneous orders that may significantly affect the Fund. We do not limit your right to redeem your investment except under the circumstances described under Suspending your right to redeem securities.

Redeeming Funds You can redeem your Fund securities in the following ways: (1) Through your Dealer, either written or by

electronic order, accompanied by any outstanding security certificates and any other appropriate documentation we may need; or

(2) Directly through us in writing, by fax, or by

telephone.

(i) If you wish to provide your redemption order to us in writing or by fax, your order needs to be accompanied by any outstanding security certificates.

(ii) If you wish to provide your redemption order to us by telephone, you need to contact our Client Services team and provide your authorization to us, subject to our verification procedures and satisfying our account eligibility criteria for redemptions.

Redemptions placed through your Dealer or in writing will be made payable to you and sent to your address of record, or to your account at a Canadian bank or trust company, or to your Dealer or another recognized financial institution in trust for you. For your protection, your redemption orders (and certificate(s), if applicable) must be signature guaranteed by a dealer, bank, trust company, or other institution that is satisfactory to us. In some cases, we may also request additional documentation.

Redemptions over the telephone are not available for: securities held in certificate form; securities held in a registered plan, except for

TFSA accounts; and accounts for which there has been a recent

change.

Processing your redemption order If we do not receive all the documentation we need to complete your redemption order, we will contact you or your Dealer. If your Dealer placed your redemption order electronically and upon contacting your Dealer, we are advised that you or your Dealer are unable to provide us with the required documentation, we will immediately repurchase your securities. If you or your Dealer advise us that you are able to provide us with the required documentation but you or your Dealer fail to provide it to us within ten business days of us receiving your order, we will repurchase your securities. Pursuant to securities regulations, if we repurchase your securities and the sale proceeds are: greater than the repurchase amount, the Fund

keeps the difference; less than the repurchase amount, we pay the

Fund the difference and collect the difference from your Dealer. Your Dealer may be entitled to recover any losses from you.

We will pay you the proceeds within two business days (or such shorter period as may be determined by us in response to changes in applicable laws or general changes to settlement procedures in applicable markets) of receiving a complete redemption order. We will mail you a cheque unless you tell us to deposit the proceeds to your bank or trust company account by electronic fund transfer (EFT).

If you wish to receive your proceeds by EFT, please send us a pre-printed void cheque and complete the banking information section of your application at the time of account setup to avoid potential delays on your redemption request. We will keep your banking information on file for future purchases and redemptions.


For your protection, we reserve the right to choose the final method of payment, which may include paying the redemption proceeds to your Dealer, in trust for you. Suspending your right to redeem securities As permitted by Canadian securities regulators, we may suspend your right to redeem securities: if normal trading is suspended on an

exchange within or outside Canada on which securities or specified derivatives are traded which represent more than 50% by value of the total assets of that Fund and if those securities are not traded on any other exchange that represents a reasonably practical alternative for the Fund

with the consent of securities regulators, if the Fund determines that it is not practical to sell the Fund’s securities or fairly determine the value of its net assets

of a Corporate Class Fund that invests in securities of an Underlying Fund if the right to redeem securities in the Underlying Fund to the Corporate Class Fund is suspended, as the NAV of the Corporate Class Fund would not be available

of Franklin Bissett Canadian Balanced Fund and Franklin Bissett Canadian Balanced Corporate Class which invest in securities of Underlying Funds if the right to redeem securities in the Underlying Funds to Franklin Bissett Canadian Balanced Fund and Franklin Bissett Canadian Balanced Corporate Class are suspended, as the NAV of Franklin Bissett Canadian Balanced Fund and Franklin Bissett Canadian Balanced Corporate Class, as the case may be, would not be available

If your right to redeem securities is suspended, and you do not withdraw your redemption order, we will redeem your securities at their net asset value determined after the suspension ends. Short-term trading Excessive trading can harm Fund performance, operations and all securityholders by increasing trading and other costs, and interfering with the efficient management of a mutual fund’s portfolio. We perform ongoing monitoring of trading in securities of the Funds in order to identify investor

trading patterns that may suggest short-term trading activity. You will be considered to be engaging in short-term trading if you: request a redemption/purchase of a Fund

within two weeks of an earlier purchase/redemption of the Fund;

redeem or switch securities out of the Fund more than twice within a rolling 90 day period; or

engage in trades that appear to follow a

market timing pattern that may adversely affect the Fund.

In determining whether a trade or trading pattern is inappropriate, we consider all relevant factors including good faith changes in investor circumstances or intentions, the nature of the Funds involved, and the investor’s past trading pattern, and we may conduct discussions with the investor or the investor’s Dealer. If we identify a pattern of short-term trading, we will seek to reject or restrict further trading as described below in greater detail, if in our judgment such trading may adversely affect a Fund. If we, in our sole discretion, reasonably determine that your pattern of trading may adversely affect a Fund, we reserve the right, without prior notice, to: (1) temporarily or permanently reject further

trading in a Fund; (2) restrict the amount, number or frequency of

any future trades in a Fund.

Calculating the redemption fee You pay a redemption fee if you redeem Series A (including A (Hedged)) or T (including T-USD) securities bought under:

the low-load option within three years from the date of original purchase; or

the deferred sales charge option within six years from the date of original purchase.

The redemption fee is based on the date and original cost of your securities. If you have switched to another Fund while remaining within


the same purchase option, then your redemption fee is based on the date and original cost of the securities before the initial switch.

We will redeem securities in the following order: (1) securities issued through distribution/

dividend reinvestment plans (2) free redemption entitlement securities

(only applicable to low-load sales charge and deferred sales charge securities that remain subject to a redemption fee)

(3) matured securities (4) securities in the order that they were

purchased starting with the earliest purchase.

The redemption fee for securities purchased on a:

low-load basis is based on a declining percentage of the original cost of the securities if the securities are redeemed within three years from the date of original purchase, as shown in the Fees and expenses table on page 50; or

deferred sales charge basis is based on a declining percentage of the original cost of the securities if the securities are redeemed within six years from the date of original purchase, as shown in the Fees and expenses table on page 50.

We will deduct the redemption fee from the proceeds of the redemption.

Free redemption entitlement (only applicable to low-load sales charge and deferred sales charge securities still subject to a redemption fee) You can redeem some of your Series A (including A (Hedged)) or T (including T-USD) securities that would otherwise be subject to a redemption fee without paying a fee, even if you have held them for less than three years, in the case of low-load sales charge securities, or less than six years, in the case of deferred sales charge securities. You can redeem:

Deferred sales charge securities

Low-load sales charge securities

10% of the NAV of your deferred sales charge securities as of December 31 of the prior calendar year (for securities purchased by you after February 28, 1993 and before the current calendar year) PLUS 10% of the cost of deferred sales charge securities purchased by you in the current calendar year LESS cash distributions

paid during the prior calendar year, and

the value of reinvested securities redeemed during the current calendar year.

10% of the NAV of your low-load sales charge securities as of December 31 of the prior calendar year PLUS 10% of the cost of low-load sales charge securities purchased by you in the current calendar year LESS cash distributions

paid during the prior calendar year, and

the value of reinvested securities redeemed during the current calendar year.

A distribution paid to you in cash will reduce your free redemption entitlement for the following calendar year by the amount of that distribution.

You can transfer any unused portion of the free redemption entitlement if you switch deferred sales charge securities from one Fund to another, or if you switch low-load sales charge securities from one Fund to another, adjusted, in each case, for the NAV of the new Fund securities.

You may not carry forward this privilege from one year to the next. We may cancel or change this privilege at any time.

Minimum balances and maintaining eligibility Redemptions, distributions and/or withdrawals made in your account may affect the market value of the investments held in your account. Examples of this may include redemptions made to pay program or advisory fees, return of capital distributions and cash withdrawals made from your account. As a result, if the market value of your investment in any series falls below the minimum investment balance requirement listed


in the table below, we may redeem or redesignate your securities to another series. We will give you 30 days’ notice that your balance has fallen below the minimum balance requirement prior to redeeming or redesignating your securities. You may invest additional money during this period of time if you wish to maintain the status of your investment. We will not redeem or redesignate your securities if the market value of your investment falls below the minimum investment balance requirements because of a decline in the NAV of the securities. The table below lists the minimum investment balance requirements for each series and the action we may take if your investment falls below the minimum investment balance requirements:

Series Minimum investment balance requirement

Potential consequences if minimum investment balance requirement not met

A, A (Hedged), F*

$500 per Fund Redeem

FT* $5,000 per Fund Redesignate to Series F of the same Fund

I $100,000 invested in Related Accounts

Redesignate to Series A of the same Fund

O* $200,000 invested in Related Accounts

Redesignate to Series A (or Series F if Series A is not available) of the same Fund

OT* $200,000 invested in Related Accounts

Redesignate to Series T of the same Fund

PF*, PF (Hedged)*

$100,000 invested in Related Accounts

Redesignate to Series F of the same Fund

PFT* $100,000 invested in

Redesignate to Series FT or to Series F (if the Fund does not offer

Series Minimum investment balance requirement

Potential consequences if minimum investment balance requirement not met

Related Accounts

Series FT) of the same Fund

T, T-USD $5,000 per Fund Redesignate to Series A of the same Fund

V $100,000 invested in Related Accounts

Redesignate to Series T of the same Fund

* Maintaining eligibility for Series F, Series FT, Series O, Series OT, Series PF, Series PF (Hedged) and Series PFT In addition to the minimum investment balance requirements for Series F, FT, O, OT, PF, PF (Hedged) and PFT, you must also continue to qualify to hold Series F, FT, O, OT, PF, PF (Hedged) or PFT after your initial purchase as described under About Series A, A (Hedged), F, FT, I, O, OT, PF, PF (Hedged), PFT, T, T-USD and V. After giving you 30 days’ notice that you no longer qualify to hold Series F, FT, O, OT, PF, PF (Hedged) or PFT securities, we may redesignate your securities as follows: Series F into Series A Series FT, Series PF, Series PF (Hedged) or Series PFT into Series F Series O into Series A (or Series F if Series A is not available) Series OT into Series T

of the same Fund. If we redesignate your securities on this basis, no switch fee will be charged by your Dealer. We reserve the right to change or waive the minimum investment balance requirements for any series of securities.

Eligibility to own securities We may redeem securities in an account if we determine in our discretion that: an investor engages in short-term or

excessive trading;


an investor becomes a resident for securities laws or tax purposes of a foreign jurisdiction where such foreign residency may have negative legal, regulatory or tax implications on the Fund; or

it would be in the best interest of the Fund to do so.

Securityholders are responsible for all tax consequences, costs and losses, if any, associated with the redemption of securities in a Fund upon the exercise of our right to redeem. Orphaned Accounts In order to invest in securities of the Funds, an investor’s account must have a registered Dealer on file with us. If an active account does not have a registered Dealer on file, we consider the account to be an “orphaned account”. If we determine in our discretion that an account is orphaned, we may take the following actions: freeze the account and restrict all activities in

the account except redemptions (including through systematic withdrawals) and transfers out;

notify the orphaned account holder in writing as to the account’s status and request that the account(s) be moved to another registered Dealer; and

after the notification, redeem the holdings in the orphaned account and mail the proceeds to the orphaned account holder’s address of record.

Securityholders are responsible for all tax consequences, costs and losses, if any, associated with the redemption of securities in a Fund in an orphaned account. “Past Exempt” Registered Plans The Manager has a legal obligation to file with and remit taxes to the Canada Revenue Agency in respect of undistributed registered plans that comprise part of an estate (“Past Exempt Registered Plans”). Consequently, on an annual basis, we may redeem sufficient securities of the Funds held in a Past Exempt Registered Plan for the payment of taxes. Investors are responsible

for all tax consequences, costs and losses, if any, associated with the redemption of securities in a Fund in a Past Exempt Registered Plan. General information on processing purchases, switches and redemptions

Rejecting orders We have the right to reject any purchase or switch order within one business day of receiving it. If we reject your purchase order, we will return your money without interest. We will not process transactions for: a past date a future date (unless the transaction relates to

a PAC or SWP) a specific price any securities that have not been paid for in full.

Confirmations Your Dealer or Franklin Templeton Investments will send you a confirmation once we have processed your purchase, switch or redemption order. For PACs and SWPs, you will only receive a confirmation on your first purchase, switch or redemption. After that, you will either receive a confirmation each time a PAC or SWP runs on your account or you will receive quarterly, semi-annual or annual account statements. Certificates and Assignments We will not issue certificates for securities of Funds unless requested by you or your Dealer. We will also not issue certificates for any securities of the Funds held within a registered plan. Telephone Services You will receive telephone privileges automatically when you open your account with us. You can request the following transactions by telephone subject to our verification procedures and meeting our account eligibility criteria (if applicable):

(i) redemptions and transfers (from Non-Registered or TFSA accounts only);

(ii) change of address; and (iii) add/change account services (including

distribution options, systematic investment and withdrawal programs).


Redemption proceeds will be payable only to you directly, and will be sent to your account at a Canadian bank or trust company that we have on file for you. We have the right, in our sole discretion, and in any event, to refuse a telephone request if we are not provided with the requested information or if we reasonably believe that the individual making the request is not authorized to act on the account. It is your responsibility to ensure that the individual making any request on behalf the account is authorized to do so. We will not be held

liable for any losses that may occur in the event of unauthorized requests. If you wish to discontinue your telephone privileges at any time, please contact us by phone or in writing. You may reinstate your telephone privileges at any time by calling us or informing us in writing. We will not process your switch or redemption order unless it is accompanied by any outstanding security certificates representing the securities to be switched or redeemed and all assignments on the outstanding securities have been cancelled.


Optional services Systematic investment program You can buy securities of the Funds regularly through a pre-authorized chequing plan (PAC) from your bank or trust account. The PAC can run weekly, twice monthly, monthly, quarterly, semi-annually or annually and must be at least $50 per Fund. We may, at our discretion, waive the minimum PAC amount. There is no charge for this service other than any applicable sales charges you negotiate with your Dealer (if you purchase securities under the low-load or deferred sales charge option, you may pay a redemption fee upon redeeming your securities – please see Sales Charges on page 49). You may change or cancel the plan at any time by writing to us or your Dealer. Once we receive all required documentation, it may take up to 72 hours for us to process any change or cancellation. If you switch all securities from one Fund to another, we will continue your PAC in your new Fund.

PACs and dollar-cost averaging PACs can lower your average cost of investing. It is called dollar-cost averaging and it works like this:

You invest the same amount of money in the Fund of your choice at regular intervals.

When the NAV of your securities is high, your fixed-dollar investment buys fewer securities.

When the NAV is low, your fixed-dollar investment buys more securities.

It is an easy way to buy more when prices are down and lower the average cost of your Fund securities. And that helps increase your potential gain.

You can request a copy of the annual renewal simplified prospectus and any amendments thereto (the “Renewal Prospectus”) by calling us toll-free at 1-800-387-0830 or emailing us at [email protected]. You can also find the Renewal Prospectus at www.sedar.com or on our website at www.franklintempleton.ca.

While you have a statutory right to withdraw from your initial purchase of Funds under a PAC, you

will not have a statutory right to withdraw from subsequent purchases of Funds under a PAC. Regardless of whether or not you request the Renewal Prospectus, you will continue to have all other statutory rights under securities law, including a misrepresentation right as described on page 63 under What are your legal rights? You also have the right to terminate your participation in a PAC at any time as described above.

Systematic withdrawal program (SWP) Provided you maintain at least $5,000 invested in a Fund, you can set up a systematic withdrawal program to redeem amounts periodically from your investments.

You can receive payments weekly, twice monthly, monthly, quarterly, semi-annually or annually. We will automatically redeem enough securities to make the payments to you, which may reduce the value of your investment.

There is no charge for this service, other than any applicable redemption fees. You may change or cancel the plan at any time by writing to us or your Dealer. It may take up to 72 hours for us to process any change or cancellation.

If your regular withdrawals are greater than the net earnings of your Fund, you will eventually use up your original investment.

Automatic rebalancing service We offer an automatic rebalancing service to all investors in the Funds. This service monitors when the value of your investments within the Funds deviates from your target asset mix. The automatic rebalancing service is available for all Funds, plans and account types, provided that we receive appropriate authorization. There is no fee for this service. To use the automatic rebalancing service, you and your investment advisor must submit an automatic rebalancing service form and select the following parameters:


Target asset mix: You must select the Funds and target allocation percentages that will be subject to the automatic rebalancing service. Your selected Funds must be within the same currency, the same series or a similar fee structure (Series A/T, Series F/FT/PF/PF (Hedged)/PFT, Series O/OT or Series I/V) and the same purchase option (front load, low load or deferred sales charge). One automatic rebalancing service may be established per currency per account.

Variance trigger: You must determine the maximum percentage by which any Fund in your automatic rebalancing service can deviate from your target asset mix before causing a rebalancing.

Rebalancing frequency: You must decide whether you want your account rebalanced on a quarterly, semi-annual or annual basis. Your account will be reviewed and, if necessary, rebalanced on the second last business day of the month ending the quarter, semi-annual period or year.

When the current value of your investment in any Fund varies on the rebalancing frequency date by more than the variance trigger you have chosen, we will automatically switch your investments to return to your target asset mix. Once a Fund in your target asset mix has a fund balance of less than one security and/or 100% of one or more of the Funds in your target asset mix are redeemed, switched or transferred from the account, the

service will be discontinued. You and your investment advisor may make changes to your automatic rebalancing service by submitting a new automatic rebalancing service form. As described under “How to Switch to other Funds” on page 25, in some circumstances a switch between Funds made by the automatic rebalancing service may cause you to realize a taxable capital gain. Registered plans We can set up a: registered retirement savings plan (RRSP) locked-in retirement savings plan (LRSP) spousal registered retirement savings plan

(SP RRSP) locked-in retirement account (LIRA) registered education savings plan (RESP) tax-free savings account (TFSA) registered retirement income fund (RRIF) spousal registered retirement income fund

(SP RRIF) life income fund (LIF) locked-in retirement income fund (LRIF) restricted life income fund (RLIF), or restricted locked-in savings plan (RLSP) for you, or you can purchase the Funds for

your self-directed registered plan. We encourage you to consult your investment or tax advisor about the tax implications of registered plans.


Fees and expenses Below you will find the fees and expenses you may pay if you invest in the Funds. Some of these fees and expenses you pay directly. Others are payable by the Funds, which will indirectly reduce the value of your investment in the Fund. The Funds are required to pay harmonized sales tax (“HST”) on management fees and expenses at a rate determined separately for each series for each year. The rate that applies to the fees and expenses paid during a year for a series is determined based on the net asset value of the series attributable to investors resident in each province or territory at a certain point in time and the HST rate applicable to each of those provinces or territories. As a result, HST will be paid based on a “blended rate” of the 5% rate in the non-harmonized jurisdictions, 15% in Nova Scotia, 14% in Prince Edward Island, and 13% in the other harmonized provinces of Ontario, New Brunswick and Newfoundland and Labrador. Quebec has also harmonized the QST at a rate of 14.975%, which will be factored into the “blended rate” referred to above. The blended rate will be different from year to year. This happens because different securityholders invest in the different series and the securityholders who invest in each series change from year to year because of purchases, switches and redemptions.

Securityholder approval is required to change the basis of the calculation of a fee or expense that is charged to a Fund in a way that could result in an increase in charges to the Fund. However, if the proposed change only affects charges to one series of the Fund, only securityholders of such series shall be entitled to vote in respect of the proposed change. No securityholder approval will be required if the Fund is at arm’s length to the person or company charging the fee or expense and if a written notice is sent to securityholders at least 60 days before the effective date of the change. Because Series F, FT, O, OT, PF, PF (Hedged) and PFT securities are sold without a sales charge, a meeting of securityholders of these Series of the Funds is not required to approve any increase in, or introduction of, a fee or expense charged to the Funds. Any such increase will only be made if such securityholders

are notified of the increase at least 60 days before the date on which the increase will take effect. Fees and expenses payable by the Fund

Management fees

Unique to each series of each Fund. See Operating expenses for the Fund you are interested in. We may reduce or rebate the management fee for certain investors in a Fund. Our decision to do this depends on a number of factors, including the size of the investment or the nature of the investment, such as investments by pension funds, insurers or other institutional investors. If we reduce or rebate the management fee, we, or the applicable Fund, pay a management fee distribution (“management fee distribution”) or a rebate (“management fee rebate”). We have agreed to waive a portion of the management fees on certain series (the “Management Fee Waiver”). These Management Fee Waivers shall be applied at least until such time as we decide to lower the management fees, the Administration Fee, or a combination of the two on these series by an amount that is equal to or greater than the amount of the series’ Management Fee Waiver. If we reduce the management fee, the Administration Fee, or both for a series, we may also reduce the Management Fee Waiver by the corresponding amount. Please refer to the table below for further information regarding the Management Fee Waivers. Where a Fund invests in underlying funds, there are fees and expenses payable by the underlying funds in addition to those payable by the Fund. However, we will ensure that there is no duplication of management fees for the same services in respect of those Funds that use fund on fund structures as described in the investment strategies of the specific Fund description. In addition, a Fund that invests in another fund does not pay duplicate sales fees or redemption fees with respect to the purchase or redemption by it of securities of the underlying fund.


Series O and Series OT investors do not bear any of the management fees within the Funds, but instead pay a separate Management and Administration Fee. See Series O/OT Management and Administration Fees on page 46 for further information. The Management and Administration Fee varies based on the Fund and the average daily net asset value of the securities held in the investor’s accounts on a quarterly basis. For institutional investors, the Management and Administration Fee is negotiable. Operating expenses Effective January 1, 2014, the Manager began paying the operating expenses of each Fund, other than Fund Costs (as defined below) and Taxes (as defined below) (the “Operating Expenses”) in exchange for the payment by the Fund of a fixed rate administration fee (the “Administration Fee”) to the Manager with respect to each series of the Fund, except for Series O, OT and Franklin Bissett Money Market Fund and Franklin Bissett Money Market Corporate Class (the “Money Market Funds”). All series to which the Administration Fee applies are referred to as "Participating Series". The Operating Expenses payable by the Manager include, but are not limited to, audit fees, fund accounting costs, transfer agency and recordkeeping costs, custodian costs, administration costs and trustee services relating to registered tax plans, costs of printing and disseminating prospectuses, annual information forms, fund facts and continuous disclosure materials, legal fees, investor communication costs and regulatory filing fees. The “Fund Costs”, which are payable by all Funds, are borrowing and interest costs, investor meeting costs (as permitted by Canadian securities regulation), the fees and expenses of the IRC, directors’ fees and expenses for Franklin Templeton Corporate Class Ltd. ("FTCCL") and Templeton Growth Fund, Ltd. ("TGF"), any costs and expenses associated with litigation for the benefit of the Funds or brought to pursue rights on behalf of the Funds, the cost of compliance with any new governmental and regulatory requirements imposed on or after December 10, 2013 (including those relating to Operating Expenses) or with any material change to existing governmental and regulatory requirements imposed on or after December 10, 2013 (including

extraordinary increases to regulatory filing fees), any new types of costs, expenses or fees not incurred prior to December 10, 2013, including those arising from new government or regulatory requirements relating to the Operating Expenses or related to those external services that were not commonly charged in the Canadian mutual fund industry as of December 10, 2013 and operating expenses that would have been outside the normal course of business of the Funds prior to December 10, 2013. IRC Fees and Expenses Each member of the IRC receives an annual retainer of $30,000 (with an additional retainer of $10,000 for the Chair) and a per meeting fee of $1,500 for each meeting of the IRC that the member attends, plus expenses for each meeting. These fees and expenses, in addition to other expenses associated with the IRC, such as insurance and applicable legal costs, are allocated by us amongst all Franklin Templeton Investments mutual funds, including the Funds in this simplified prospectus, in a manner that is considered to be fair and reasonable to the mutual funds. During the year ended December 31, 2017, IRC members received from the Franklin Templeton Investments mutual funds compensation in the amount of $126,099.99 for annual retainers and meeting fees as well as $9,529.64 as reimbursement for expenses in connection with performing their duties for the Franklin Templeton Investments mutual funds. Each Fund’s share of the IRC’s compensation is disclosed in the Fund’s financial statements. Each Fund will also pay all applicable taxes, including without limitation, income taxes, withholding taxes, HST and related taxes (collectively, the “Taxes”). Each Fund will also continue to pay its portfolio transaction costs, which include costs associated with the purchase and sale of securities and other property, such as brokerage commissions for portfolio trading and related trading fees (including the costs of any derivative transactions), commissions for portfolio trading and related trading fees (including the costs of any derivative transactions), commissions, service charges and research and


execution costs, as well as forward agreement and derivative transaction costs. Except as described below, each series of a Fund is responsible for its appropriate share of common Fund Costs in addition to the Fund Costs that it alone incurs. The Manager may, in some years and in certain cases, absorb a portion of a series’ Administration Fee or Fund Costs. The decision to absorb the Administration Fee or Fund Costs, or a portion thereof, is reviewed annually and determined at the discretion of the Manager, without notice to investors. The Manager pays all Operating Expenses of the Money Market Funds and of Series O and OT.

The Administration Fee is equal to a specified percentage of the net asset value of a Participating Series, calculated and paid in the same manner as the management fee for the Fund (calculated as 1/12 of the annual rate applied against the monthly average daily net assets of each series and paid monthly). The rate of the annual Management Fees, including management fee waivers, for each series (except Series O and OT), where applicable, and annual Administration Fee for each Participating Series is set out below:

Fund Name Series Fee (%)

Management Fee

Management Fee Waiver

Administration Fee

Templeton Asian Growth Corporate Class A 2.30 - 0.27

F 1.30 - 0.27

I 1.80 - 0.27

Templeton EAFE Developed Markets Fund A 2.00 - 0.35

F 1.00 - 0.35

PF 0.80 - 0.15

Templeton Emerging Markets Fund

A 2.25 - 0.35

F 1.25 - 0.35

I 1.75 - 0.35

PF 1.00 - 0.35

Templeton Emerging Markets Corporate Class A 2.25 - 0.35

F 1.25 - 0.35

PF 1.00 - 0.35

Templeton Frontier Markets Corporate Class

A 2.25 - 0.35

F 1.25 - 0.35

Templeton Global Balanced Fund A/T/T-USD 1.85 - 0.23

F/FT 0.85 - 0.23

I/V 1.40 - 0.23

PF/PFT 0.70 - 0.15

Templeton Global Bond Fund A 1.25 - 0.22

F 0.75 - 0.22



Management Fee


Administration Fee

Templeton Global Bond Fund I 1.15 - 0.22

PF 0.70 - 0.10

Templeton Global Bond Fund (Hedged) A 1.25 - 0.22

F 0.75 - 0.22

I 1.15 - 0.22

PF 0.70 - 0.10

Templeton Global Smaller Companies Fund A 2.00 - 0.38

F 1.00 -0.02 0.38

I 1.25 - 0.38

PF 0.90 - 0.15

Templeton Global Smaller Companies Corporate Class

A 2.00 - 0.38

F 1.00 -0.02 0.38

I 1.25 - 0.38

Templeton Growth Fund, Ltd. A/A (Hedged)

1.85 - 0.35

F 0.85 - 0.35

I 1.10 -0.23 0.35

PF 0.80 - 0.15

Templeton Growth Corporate Class

A 1.85 -0.15 0.35

F 0.85 - 0.35

I 1.10 -0.09 0.35

PF 0.80 - 0.15

Templeton International Stock Fund A/T 2.00 - 0.35

F 1.00 - 0.35

I 1.30 -0.03 0.35

PF/PFT 0.80 - 0.15

Templeton International Stock Corporate Class A/T 2.00 - 0.35

F 1.00 - 0.35

I 1.30 - 0.35

PF 0.80 - 0.15

Franklin Global Growth Fund A/T 2.00 - 0.33

F 1.00 - 0.33



Management Fee


Administration Fee

Franklin Global Growth Fund PF 0.80 - 0.15

Franklin Global Growth Corporate Class A/T 2.00 - 0.33

F 1.00 - 0.33

Franklin Global Small-Mid Cap Fund A 2.00 - 0.30

F 1.00 - 0.30

I 1.50 - 0.30

PF 0.90 - 0.15

Franklin High Income Fund A 1.25 - 0.21

F 0.75 - 0.21

I 1.15 - 0.21

PF 0.70 - 0.10

Franklin Strategic Income Fund A 1.25 - 0.21

F 0.75 - 0.21

I 1.15 -0.08 0.21

PF 0.70 - 0.10


A 2.00 - 0.28

F 1.00 - 0.28

PF 0.75 - 0.15

Franklin U.S. Monthly Income Fund A/T/T-USD 1.85 - 0.19

F/FT 0.85 - 0.19

I 1.40 - 0.19

PF/PFT 0.70 - 0.15

Franklin U.S. Monthly Income Corporate Class A/T/T-USD 1.85 - 0.19

F/FT 0.85 - 0.19

I 1.40 - 0.19

PF 0.70 - 0.15

Franklin U.S. Monthly Income Hedged Corporate Class

A/T 1.85 - 0.19

F/FT 0.85 - 0.19

I 1.40 - 0.19

PF 0.70 - 0.15



Management Fee


Administration Fee

Franklin U.S. Opportunities Fund A 2.00 - 0.28

F 1.00 - 0.28

PF 0.75 - 0.15

Franklin U.S. Opportunities Corporate Class A 2.00 - 0.28

F 1.00 - 0.28

Franklin U.S. Rising Dividends Fund A/T 2.00 - 0.28

F 1.00 - 0.28

PF/PF (Hedged)/

PFT 0.75 - 0.15

Franklin U.S. Rising Dividends Corporate Class A/T 2.00 - 0.28

F 1.00 - 0.28

I 1.40 - 0.28

PF 0.75 - 0.15

Franklin U.S. Rising Dividends Hedged Corporate Class

A/T 2.00 - 0.28

F 1.00 - 0.28

Franklin Bissett Canadian All Cap Balanced Fund A/T 1.90 - 0.16

F 0.90 - 0.16

I 1.35 - 0.16

PF 0.65 - 0.15

Franklin Bissett Canadian All Cap Balanced Corporate Class

A/T 1.90 - 0.16

F 0.90 - 0.16

I 1.35 - 0.16

Franklin Bissett Canadian Balanced Fund A/T 1.85 - 0.19

F 0.85 -0.06 0.19

I 1.35 -0.02 0.19

PF/PFT 0.65 - 0.15

Franklin Bissett Canadian Balanced Corporate Class

A/T 1.85 - 0.19

F 0.85 - 0.19

I 1.35 - 0.19

PF 0.65 - 0.15



Management Fee


Administration Fee

Franklin Bissett Canadian Bond Fund A 1.05 - 0.10

F 0.55 - 0.10

PF 0.50 - 0.10

Franklin Bissett Canadian Dividend Fund A 1.90 - 0.22

F 0.90 [-0.06]* 0.22

I 1.40 - 0.22

PF 0.75 [0.70]** - 0.15

Franklin Bissett Canadian Dividend Corporate Class A/T 1.90 - 0.22

F/FT 0.90 [-0.06]* 0.22

I 1.40 - 0.22

PF 0.75 [0.70]** - 0.15


A 1.90 0.23

F 0.90 - 0.23

PF 0.75 - 0.15

Franklin Bissett Canadian Equity Fund A 2.00 - 0.23

F 1.00 -0.18 0.23

I 1.40 -0.20 0.23

PF 0.75 - 0.15

Franklin Bissett Canadian Equity Corporate Class A/T 2.00 - 0.23

F 1.00 -0.17 0.23

I 1.40 -0.12 0.23

PF 0.75 - 0.15

Franklin Bissett Canadian Government Bond Fund F 0.50 - 0.10

PF 0.40 [0.35]** - 0.10


A 1.05 [1.00]* - 0.15

F 0.55 [0.50]* - 0.15

PF 0.50 [0.40]** - 0.10

Franklin Bissett Core Plus Bond Fund A 1.20 [1.10]* - 0.15

F 0.70 [0.60]* -0.12 [-0.02]* 0.15

I 0.95 - 0.15

PF 0.50 - 0.10



Management Fee


Administration Fee

Franklin Bissett Corporate Bond Fund A 1.25 [1.15]* - 0.15

F 0.75 [0.65]* - 0.15

I 0.95 - 0.15

PF 0.50 - 0.10

Franklin Bissett Dividend Income Fund A/T 1.95 - 0.16

F 0.95 -0.06 0.16

I 1.45 - 0.16

PF/PFT 0.70 - 0.15

Franklin Bissett Dividend Income Corporate Class

A/T 1.95 - 0.16

F 0.95 -0.05 0.16

I 1.45 - 0.16

PF 0.70 - 0.15

Franklin Bissett Energy Corporate Class A 2.00 - 0.35

F 1.00 - 0.35

PF 0.85 - 0.15

Franklin Bissett Microcap Fund A 3.00 - 0.35

F 2.00 -0.17 0.35

PF 1.75 - 0.25

Franklin Bissett Money Market Fund A 0.75 N/A N/A

F 0.50 N/A N/A

I 0.625 N/A N/A

PF 0.45 N/A N/A

Franklin Bissett Money Market Corporate Class A 0.75 N/A N/A

F 0.50 N/A N/A

I 0.625 N/A N/A

Franklin Bissett Monthly Income and Growth Fund A/T 1.75 - 0.19

F 0.75 - 0.19

I 1.35 - 0.19

PF/PFT 0.65 - 0.15

Franklin Bissett Small Cap Fund A 2.35 - 0.25

F 1.35 - 0.25



Management Fee


Administration Fee

Franklin Bissett Small Cap Fund PF 1.15 - 0.25

Franklin Bissett Small Cap Corporate Class A 2.35 - 0.25

F 1.35 - 0.25

Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund)

A 1.65 - 0.23

F 0.65 - 0.23

I 1.30 - 0.23

PF 0.55 - 0.15

Franklin ActiveQuant Canadian Corporate Class (formerly Franklin Bissett All Canadian Focus Corporate Class)

A 1.65 - 0.23

F 0.65 - 0.23

I 1.30 - 0.23


A 1.65 - 0.28

F 0.65 - 0.28

PF 0.55 - 0.15


A 1.65 - 0.28

F 0.65 - 0.28

PF 0.55 - 0.15

Franklin Mutual European Fund A 2.00 - 0.28

F 1.00 - 0.28

I 1.50 - 0.28

PF 0.80 - 0.15

Franklin Mutual Global Discovery Fund A/T 2.00 - 0.33

F 1.00 -0.03 0.33

I 1.35 -0.05 0.33

PF/PFT 0.80 - 0.15

T-USD 2.00 -0.18 0.33

Franklin Mutual Global Discovery Corporate Class A 2.00 - 0.33

F 1.00 -0.03 0.33

I 1.35 -0.04 0.33

PF 0.80 - 0.15

T 2.00 -0.02 0.33

T-USD 2.00 -0.12 0.33



Management Fee


Administration Fee

Franklin Mutual U.S. Shares Fund A/T 2.00 - 0.33

F 1.00 - 0.33

I 1.35 - 0.33

Franklin Mutual U.S. Shares Corporate Class A/T 2.00 - 0.33

F 1.00 - 0.33

I 1.35 - 0.33

Franklin Quotential Balanced Growth Portfolio A/T 1.90 - 0.24

F/FT 0.90 - 0.24

I 1.20 - 0.24

PF/PFT 0.70 - 0.15

Franklin Quotential Balanced Growth Corporate Class Portfolio

A/T 1.90 - 0.24

F/FT 0.90 - 0.24

I/V 1.20 - 0.24

PF 0.70 - 0.15

Franklin Quotential Balanced Income Portfolio A/T 1.75 - 0.20

F/FT 0.75 - 0.20

I 1.20 - 0.20

PF/PFT 0.65 - 0.15

Franklin Quotential Balanced Income Corporate Class Portfolio

A/T 1.75 - 0.20

F/FT 0.75 - 0.20

I/V 1.20 - 0.20

PF 0.65 - 0.15

Franklin Quotential Diversified Equity Portfolio A/T 2.05 - 0.35

F 1.05 - 0.35

I 1.25 -0.02 0.35

PF/PFT 0.80 - 0.15

T-USD 2.05 -0.03 0.35

Franklin Quotential Diversified Equity Corporate Class Portfolio

A/T/T-USD 2.05 - 0.35

F/FT 1.05 - 0.35

I 1.25 -0.03 0.35

PF 0.80 - 0.15



Management Fee


Administration Fee

Franklin Quotential Diversified Income Portfolio

A/T 1.65 - 0.17

F/FT 0.90 -0.11 0.17

I 1.375 -0.06 0.17

PF/PFT 0.65 - 0.15

Franklin Quotential Diversified Income Corporate Class Portfolio

A/T/T-USD 1.65 - 0.17

F/FT 0.90 -0.11 0.17

I 1.375 -0.04 0.17

PF/PFT 0.65 - 0.15

V 1.375 - 0.17


A 1.20 - 0.15

F 0.70 - 0.15

PF 0.65 - 0.10

Franklin Quotential Growth Portfolio

A/T 2.00 - 0.25

F 1.00 - 0.25

I 1.25 -0.07 0.25

PF/PFT 0.75 - 0.15

Franklin Quotential Growth Corporate Class Portfolio

A/T 2.00 - 0.25

F/FT 1.00 - 0.25

I 1.25 -0.06 0.25

PF 0.75 - 0.15

FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018)

PF 0.70 - 0.15

FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018)

PF 0.65 - 0.15


PF 0.75 - 0.15

* New fees effective June 1, 2018 ** New fees effective July 1, 2018


Series O/OT Management and Administration Fees In consideration for the management and administration services we provide in respect of Series O and OT securities of the Funds, by placing an order to purchase Series O and OT securities, you are agreeing to pay a fee to the Manager (the “Management and Administration Fee”) as set forth in the table below, which fee varies by Fund and the level of assets invested. Certain institutional investors may negotiate a different Management and Administration Fee with us. We may change the Management and Administration Fee for each Fund and/or the asset thresholds at any time in our sole discretion, but we will not increase the fee or change the asset thresholds in a manner that could result in you paying a higher fee, unless we have provided you with at least 60 days’ prior written notice of such change. The Management and Administration Fee is subject to applicable taxes and is calculated and paid as described below under “Program Fees for Series O and OT.

Fund Name Series

Management and Administration Fee (%) From first C$200K to

under C$2.5M

On next C$2.5M to

under C$5M

On next C$5M and over

Templeton Asian Growth Fund O 1.25 1.15 1.10 Templeton Asian Growth Corporate Class O 1.25 1.15 1.10 Templeton EAFE Developed Markets Fund O 0.95 0.80 0.75 Templeton Emerging Markets Fund O 1.35 1.20 1.15 Templeton Emerging Markets Corporate Class O 1.35 1.20 1.15 Templeton Frontier Markets Fund O 1.50 1.30 1.20 Templeton Frontier Markets Corporate Class O 1.50 1.30 1.20 Templeton Global Balanced Fund O/OT 0.85 0.80 0.70 Templeton Global Bond Fund O 0.80 0.70 0.65 Templeton Global Bond Fund (Hedged) O 0.80 0.70 0.65 Templeton Global Smaller Companies Fund O 1.05 0.95 0.90 Templeton Global Smaller Companies Corporate Class

O 1.05 0.95 0.90

Templeton Growth Fund, Ltd. O 0.95 0.80 0.75 Templeton Growth Corporate Class O 0.95 0.80 0.75 Templeton International Stock Fund O 0.95 0.80 0.75 Templeton International Stock Corporate Class O 0.95 0.80 0.75 Franklin Global Growth Fund O 0.95 0.80 0.75 Franklin Global Growth Corporate Class O 0.95 0.80 0.75 Franklin U.S. Opportunities Fund O 0.90 0.75 0.65 Franklin U.S. Opportunities Corporate Class O 0.90 0.75 0.65 Franklin Global Small-Mid Cap Fund O 1.05 0.95 0.90 Franklin High Income Fund O 0.80 0.70 0.65 Franklin Strategic Income Fund O 0.80 0.70 0.65 Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018)

O 0.90 0.75 0.65

Franklin U.S. Monthly Income Fund O/OT 0.85 0.80 0.70

Franklin U.S. Monthly Income Corporate Class O/OT 0.85 0.80 0.70 Franklin U.S. Monthly Income Hedged Corporate Class

O/OT 0.85 0.80 0.70

Franklin U.S. Rising Dividends Fund O 0.90 0.75 0.65


Fund Name Series


under C$2.5M

On next C$2.5M to

under C$5M


Franklin U.S. Rising Dividends Corporate Class O 0.90 0.75 0.65 Franklin U.S. Rising Dividends Hedged Corporate Class

O 0.90 0.75 0.65

Franklin Bissett Canadian All Cap Balanced Fund O 0.80 0.75 0.65 Franklin Bissett Canadian All Cap Balanced Corporate Class

O 0.80 0.75 0.65

Franklin Bissett Canadian Balanced Fund O 0.80 0.75 0.65 Franklin Bissett Canadian Balanced Corporate Class

O 0.80 0.75 0.65

Franklin Bissett Canadian Bond Fund O 0.60 0.50 0.40 Franklin Bissett Canadian Dividend Fund O 0.90 [0.85]* 0.75 0.65 Franklin Bissett Canadian Dividend Corporate Class O/OT 0.90 [0.85]* 0.75 0.65 Franklin Bissett Canada Plus Equity Fund O 0.90 0.75 0.65 Franklin Bissett Canadian Equity Fund O 0.90 0.75 0.65 Franklin Bissett Canadian Equity Corporate Class O/OT 0.90 0.75 0.65 Franklin Bissett Canadian Government Bond Fund O 0.50 [0.45]* 0.40 [0.35]* 0.30 [0.25]* Franklin Bissett Canadian Short Term Bond Fund O 0.60 [0.50]* 0.50 [0.40]* 0.40 [0.30]* Franklin Bissett Core Plus Bond Fund O 0.60 0.50 0.40 Franklin Bissett Corporate Bond Fund O 0.60 0.50 0.40 Franklin Bissett Dividend Income Fund O/OT 0.85 0.80 0.70 Franklin Bissett Dividend Income Corporate Class O 0.85 0.80 0.70 Franklin Bissett Energy Corporate Class O 1.00 0.90 0.80 Franklin Bissett Microcap Fund O 2.00 1.95 1.80 Franklin Bissett Money Market Fund O 0.45 0.35 0.25 Franklin Bissett Money Market Corporate Class O 0.45 0.35 0.25 Franklin Bissett Monthly Income and Growth Fund O 0.80 0.75 0.65 Franklin Bissett Small Cap Fund O 1.40 1.30 1.25 Franklin Bissett Small Cap Corporate Class O 1.40 1.30 1.25 Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund)

O 0.70 0.65 0.60


O 0.70 0.65 0.60


O 0.70 0.65 0.60


O 0.70 0.65 0.60

Franklin Mutual European Fund O 0.95 0.80 0.75 Franklin Mutual Global Discovery Fund O 0.95 0.80 0.75 Franklin Mutual Global Discovery Corporate Class O 0.95 0.80 0.75 Franklin Mutual U.S. Shares Fund O 0.90 0.75 0.65 Franklin Mutual U.S. Shares Corporate Class O 0.90 0.75 0.65 Franklin Quotential Balanced Growth Portfolio O/OT 0.85 0.75 0.65 Franklin Quotential Balanced Growth Corporate Class Portfolio

O/OT 0.85 0.75 0.65


Fund Name Series


under C$2.5M

On next C$2.5M to

under C$5M


Franklin Quotential Balanced Income Portfolio O/OT 0.80 0.70 0.65


O/OT 0.80 0.70 0.65

Franklin Quotential Diversified Equity Portfolio O/OT 0.95 0.85 0.75 Franklin Quotential Diversified Equity Corporate Class Portfolio

O/OT 0.95 0.85 0.75

Franklin Quotential Diversified Income Portfolio O/OT 0.80 0.70 0.65 Franklin Quotential Diversified Income Corporate Class Portfolio

O/OT 0.80 0.70 0.65

Franklin Quotential Fixed Income Portfolio O 0.75 0.65 0.60 Franklin Quotential Growth Portfolio O/OT 0.90 0.80 0.70 Franklin Quotential Growth Corporate Class Portfolio

O 0.90 0.80 0.70

Franklin Templeton Canadian Large Cap Fund O N/A** N/A** N/A** FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018)

O 0.85 0.75 0.65


O 0.80 0.70 0.65


O 0.90 0.80 0.70

* New fees effective July 1, 2018

** Series not available to public Investment Advisory Services Fee (Series O/OT, F/FT, PF/PF (Hedged)/PFT) For Series O and OT, and for Series F, FT, PF, PF (Hedged) and PFT (where you have purchased the series with the investment advisory services fee option), we have an arrangement in place with your Dealer to collect the investment advisory services fee (plus any applicable taxes) from you for payment to your Dealer on your behalf (the “Investment Advisory Services Fee”). Where the above arrangement exists, the maximum annual Investment Advisory Services Fee rate that we will facilitate the payment of, is 1.50% (excluding taxes). For Series O and OT the effective date of the 1.50% maximum fee rate limit is March 12, 2018. For Series F/FT, PF/PF (Hedged) and PFT the effective date of the 1.50% maximum fee rate limit is August 7, 2018. The Investment Advisory Services Fee purchase option for Series F/FT, PF/PF (Hedged) and PFT in a Fund, is available for purchase effective August 7, 2018 and in a Corporate Class Fund, is available for purchase effective October 1, 2018. The Investment Advisory Services Fee purchase option is not available for purchase for Series F, FT, PF, PF (Hedged) and PFT in the following Funds: Franklin Templeton Canadian Large Cap Fund, Franklin Bissett Canadian All Cap Balanced Fund, Templeton Frontier Markets Fund, Templeton Asian Growth Fund, Franklin Mutual U.S. Shares Fund, Franklin Mutual U.S. Shares Corporate Class, Franklin Bissett Canadian All Cap Balanced Corporate Class and Templeton Frontier Markets Corporate Class.


Your Dealer is solely responsible for making the recommendation to purchase Series O, OT, F, FT, PF, PF (Hedged) and PFT securities of the Funds and for providing any and all necessary information regarding your investment in the Funds to you. By placing an order to purchase Series O, OT, F, FT, PF, PF (Hedged) or PFT securities of the Funds and in consideration for the investment advice and/or services, and suitability analysis provided to you by your Dealer in respect of your purchase, you are agreeing to pay the negotiated Investment Advisory Services Fee to your Dealer. We will not remit the Investment Advisory Services Fee to your Dealer until we have received confirmation of the amount of the Investment Advisory Services Fee from your Dealer. Investors in Series F, FT, PF, PF (Hedged) and PFT that do not hold their securities in a fee-based or wrap program where they pay their fees directly to their Dealer are eligible to participate in the Investment Advisory Services Fee option. In the case of Series O and OT the Investment Advisory Services Fee is calculated and paid to your Dealer as described in the “Program Fees for Series O and OT” section. The Management and Administration Fee together with the Investment Advisory Services Fee are collectively referred to as the “Program Fees”. For more information on how the Program Fees are calculated and paid, and further details, please see the “Program Fees for Series O and OT” section. In the case of Series F, FT, PF, PF (Hedged) and PFT, where you have purchased such series with the Investment Advisory Services Fee option, the Investment Advisory Services Fee is calculated based on the average daily net asset value of the applicable Series F, FT, PF, PF (Hedged) or PFT securities held in your account at the end of each business day. The fees will accrue on a monthly basis. On the last business day of each month, we will redeem the amount of the accrued Investment Advisory Services Fee (plus applicable taxes) from your account and pay it to your Dealer at a frequency agreed upon between Franklin Templeton and your Dealer. If you redeem, switch or transfer securities of a series where the Investment Advisory Services Fee purchase option applies, before we fulfill your request we will verify if there are sufficient funds in your account to pay the accrued Investment Advisory Services Fee (plus applicable taxes) as part of the next fee redemption cycle (at the end of the accrual month), or deduct the fee from the proceeds of your requested redemption, switch or transfer at the time of the transaction, in order to satisfy payment of such fee (plus applicable taxes). If you move your account(s) holding Series O, OT, F, FT, PF, PF (Hedged) or PFT securities to another Dealer, you will need to negotiate the Investment Advisory Services Fee with your new Dealer. We will remit the Investment Advisory Services Fee to your new Dealer at the negotiated rate, effective from the date we receive written confirmation of the amount from your new Dealer. We will remit the Investment Advisory Services Fee to your former Dealer in the amount accruing up to the date of transfer at the rate you negotiated with your former Dealer.

Fees and expenses payable directly by you Sales charges

No sales charges are payable on Series F, FT, O, OT, PF, PF (Hedged) and PFT. No sales charges are payable by any of the Funds when purchasing securities of underlying funds as described in the investment strategies of the specific Fund descriptions.

Front-load option For Series A (including A (Hedged)) and T (including T-USD) securities purchased with a front-load option: Up to 6% of the purchase price as negotiated between you and your Dealer.


For Series I and V: Up to 2% of the purchase price as negotiated between you and your Dealer.

Low-load option You will pay a redemption fee if you choose to buy Series A (including A (Hedged)) or T (including T-USD) securities under this option and you redeem your securities within three years of buying them. The redemption fee is based on the original cost of your securities and how long you hold them. We deduct the redemption fee from the value of the securities you redeem. The redemption fee is paid to us. The table below shows the redemption fee schedule: 3.0% in the first year after purchase 2.5% in the second year 2.0% in the third year Nil after three years Up to 10% of your investment in Series A (including A (Hedged)) or T (including T-USD) securities may be redeemed in each calendar year without a redemption charge. This right is not cumulative if you do not use it in any calendar year. Please see Free redemption entitlement on page 29. Deferred sales charge option You will pay a redemption fee if you choose to buy Series A (including A (Hedged)) or T (including T-USD) securities under this option and you redeem your securities within six years of buying them. The redemption fee is based on the original cost of your securities and how long you hold them. We deduct the redemption fee from the value of the securities you redeem. The redemption fee is paid to us. The table below shows the redemption fee schedule: 6.0% in the first year after purchase 5.5% in the second year 5.0% in the third year 4.5% in the fourth year 4.0% in the fifth year 3.0% in the sixth year Nil after six years

Up to 10% of your investment in Series A (including A (Hedged)) or T (including T-USD) securities may be redeemed in each calendar year without a redemption charge. This right is not cumulative if you do not use it in any calendar year. Please see Free redemption entitlement on page 29.

Program Fees for Series O and OT The Program Fees paid by a Series O or OT investor are calculated based on the average daily net asset value of the Series O and OT securities held in the investor’s accounts at the close of trading on the TSX every business day during each calendar quarter. For purposes of calculating the Program Fees, the average daily net asset value of the securities held in an investor’s account will be calculated based on a full calendar quarter, even though the Series O and OT securities may not have been held in an investor’s account for the full quarter. If such securities have not been held in an investor’s account on any day during the quarter, the net asset value for such securities for such day will be zero. For the purposes of determining the Program Fees payable by the investor, the Series O and OT securities held by the investor in all of the investor’s accounts shall be aggregated, with the graduated fee rates applied on each Fund holding based on its pro-rata share of the aggregated total. The Program Fees and any applicable taxes are paid quarterly in arrears by the redemption of sufficient Series O and OT securities held by the investor between the first (1st) and the eighteenth (18th) business day of the month following the end of the calendar quarter. When an investor has more than one account holding Series O and OT securities, the Manager will collect payment for the Program Fees and any applicable taxes by redeeming Series O and OT securities from each such account in proportion to the market value of each account as at the end of the calendar quarter and within each account in proportion to the series net asset value of the Series O and OT securities of each Fund held by the investor in such account as at the end of the calendar quarter.


If you redeem, switch or transfer Series O and/or OT securities, before we fulfill your request we will verify if there are sufficient funds in your account to pay the accrued Program Fees (plus applicable taxes) as part of the next fee redemption cycle (at the end of the applicable calendar quarter), or deduct the Program Fees from the proceeds of your requested redemption, switch or transfer at the time of the transaction, in order to satisfy payment of such fees (plus applicable taxes).

In the event that you move your account(s) holding Series O and OT securities to a new Dealer, we will redeem sufficient securities from the applicable accounts either at the time that you move to the new Dealer or shortly thereafter to pay any accrued Program Fees and applicable tax(es) owing to your former Dealer, prorated to the number of days in the calendar quarter that your former Dealer was the dealer of record in respect of such account(s), and remit such amount to your former Dealer. The Program Fees are payable for as long as you (or your successor and permitted assign) hold Series O and OT securities of the Funds. You should consult with your tax advisor regarding the tax deductibility of the Program Fees. Switch fees Up to 2% of the NAV of the switched securities as negotiated between you and your Dealer. No switch fees are payable to your Dealer on switches of Series F securities for Series F

securities, on switches of Series FT securities for Series FT securities, on switches of Series PF securities for Series PF securities, on switches of Series PF (Hedged) securities for Series PF securities, or on switches of Series PFT for Series PFT securities of another Fund.

Bank fees You will be charged the amount of any charges levied by a bank or other financial institution for

any of your cheques that are dishonoured and returned to the Funds for any charge related to electronic fund transfers.

Impact of sales charges This table shows the fees that you would pay under the different purchase options available if you invested $1,000 in Series A (including A (Hedged)) or T (including T-USD) securities of a Fund, you held that investment for one, three, five or ten years, and you redeemed the entire investment immediately before the end of each period. It assumes:

the sales commission under the front-load option is 6%, although you may negotiate a lower sales commission with your Dealer;

you haven’t used your 10% free redemption entitlement under the low-load or deferred sales charge purchase options.

Fee at time of purchase

Fee if redeem before end of:

1 year 3 years 5 years 10 years

Front-load option(1) $60 (6%) Nil Nil Nil Nil

Low-load option(2)(3) Nil $30 (3%) $20 (2%) Nil Nil

Deferred sales charge option(2)(4)

Nil $60 (6%) $50 (5%) $40 (4%) Nil


No load option

Series F, FT, O, OT, PF, PF (Hedged) and PFT only

Nil Nil Nil Nil Nil

(1) Series F, FT, O, OT, PF, PF (Hedged) and PFT cannot be purchased under the front-load option and the maximum sales commission to purchase Series I and V is 2%.

(2) Series F, FT, I, O, OT, PF, PF (Hedged), PFT and V cannot be purchased under the low-load or deferred sales charge options.

(3) Redemption fees apply to the low-load option only if you redeem your securities within three years of purchasing them, see the Fees and expenses table for more details.

(4) Redemption fees apply to the deferred sales charge option only if you redeem your securities within six years of purchasing them, see the Fees and expenses table for more details.


Dealer compensation Sales commissions Your Dealer usually receives a sales commission when you invest in Series A (including A (Hedged)), I, T (including T-USD) or V securities of the Funds. The purchase option that you select determines the sales commission that is payable to your Dealer.

Front-load option You negotiate a sales commission with your Dealer of up to 6% of the amount you invest in Series A (including A (Hedged)) or T (including T-USD) securities, which is deducted from your purchase amount.

To buy Series I or V securities you negotiate a sales commission with your Dealer of up to 2% of the amount you invest, which is deducted from your purchase amount.

Series F, FT, O, OT, PF, PF (Hedged) and PFT are not available under this purchase option.

Low-load option At the time of purchase, your full purchase amount is invested in low-load Series A (including A (Hedged)) or T (including T-USD) securities of the Fund and we pay your Dealer a sales commission of 2.5% of the amount you invest. We compensate your Dealer for the services provided to you in connection with your purchase. You will not pay a redemption fee to us unless you redeem your securities within three years of buying them.

Series F, FT, I, O, OT, PF, PF (Hedged), PFT and V are not available under this purchase option.

Deferred sales charge option

At the time of purchase, your full purchase amount is invested in deferred sales charge Series A (including A (Hedged)) or T (including T-USD) securities of the Fund and we pay your Dealer a sales commission of 5% of the amount you invest. We compensate your Dealer for the services provided to you in connection with your purchase. You will not pay a redemption fee to us

unless you redeem your securities within six years of buying them. Series F, FT, I, O, OT, PF, PF (Hedged), PFT and V securities are not available under this purchase option.

Trailing commissions We pay your Dealer trailing commissions on a monthly or quarterly basis. This includes paying trailing commissions to discount brokers for securities you purchase through your discount brokerage account unless you purchase series F or FT securities. This commission is determined by us and may be changed at any time. The trailing commission is paid based on the average daily net asset value of Series A (including A (Hedged)), I, T (including T-USD) or V securities of the Funds held by a Dealer’s clients during each month.

No trailing commission is paid in respect of Series O, OT, F, FT, PF, PF (Hedged) and PFT. With these series, an advisory services fee is negotiated between you and your Dealer.

For Series O and OT, the Investment Advisory Services Fee is negotiated between you and your Dealer. Fee payment is administered by us in accordance with the Series O/Series OT agreement that we have with your Dealer. See “Program Fees for Series O and OT” for more details.

For Series F, FT, PF, PF (Hedged) and PFT, where you have purchased the series with the Investment Advisory Services Fee option, the fee is negotiated and payable by you to your Dealer. We administer the fee payment to your Dealer.

For purposes of administering the Investment Advisory Services Fee, you authorize us to remit the amount of your Investment Advisory Services Fee to your Dealer by redeeming securities of the respective series in your account.

For more information please see the “Investment Advisory Services Fees” section.


As the following table shows, trailing commissions also depend on which purchase option you choose and, for Low-load and Deferred Sales Charge options, whether the securities have matured. Deferred Sales Charge Matured Securities refers to securities that have been issued and outstanding for more than six years. Low Load Matured Securities refers to securities that have been issued and outstanding for more than three years. In the case of reinvested

dividends and distributions, the maturity period for those securities begins when the securities are reinvested and such dividends and distributions must be issued and outstanding for three years and six years, respectively, before becoming Low-load Matured Securities and Deferred Sales Charge Matured Securities.

Name of Fund Trailing commissions per annum (%)

Series A (including A (Hedged)) or Series T (including T-USD3)

Series F or

Series FT

Series I or

Series V

Series PF, Series PF (Hedged)

or Series PFT

Front-load

Low-load

Low-load Matured

Securities2

Deferred Sales

Charge

Deferred Sales

Charge Matured

Securities1

Franklin Bissett Money Market Fund Franklin Bissett Money Market Corporate Class

0.25 0.25 0.25 0.25 0.25 N/A 0.25 N/A

Franklin Bissett Canadian Short Term Bond Fund Franklin Bissett Canadian Bond Fund Franklin Quotential Fixed Income Portfolio

0.50 0.25 0.50 0.25 0.50 N/A N/A N/A

Franklin Bissett Core Plus Bond Fund Franklin Bissett Corporate Bond Fund Templeton Global Bond Fund Templeton Global Bond Fund (Hedged) Franklin High Income Fund Franklin Strategic Income Fund

0.50 0.25 0.50 0.25 0.50 N/A 0.50 N/A

Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio

0.75 0.375 0.75 0.375 0.75 N/A 0.75 N/A




Series F or

Series FT

Series I or

Series V


or Series PFT

Front-load

Low-load

Low-load Matured

Securities2

Deferred Sales

Charge

Deferred Sales

Charge Matured

Securities1

Templeton Asian Growth Corporate Class Templeton Emerging Markets Fund Templeton Global Balanced Fund Templeton Global Smaller Companies Fund Templeton Global Smaller Companies Corporate Class Templeton International Stock Fund Templeton International Stock Corporate Class Franklin Global Small-Mid Cap Fund Franklin U.S. Monthly Income Fund Franklin U.S. Monthly Income Corporate Class Franklin U.S. Monthly Income Hedged Corporate Class Franklin U.S. Rising Dividends Corporate Class Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) Franklin ActiveQuant Corporate Class (formerly Franklin Bissett All Canadian Focus Corporate Class) Franklin Bissett Canadian All Cap Balanced Fund Franklin Bissett Canadian All Cap Balanced Corporate Class Franklin Bissett Canadian Balanced Fund Franklin Bissett Canadian Balanced Corporate Class Franklin Bissett Canadian Dividend Fund Franklin Bissett Canadian Dividend Corporate Class

1.00 0.50 1.00 0.50 1.00 N/A 0.75 N/A




Series F or

Series FT

Series I or

Series V


or Series PFT

Front-load

Low-load

Low-load Matured

Securities2

Deferred Sales

Charge

Deferred Sales

Charge Matured

Securities1

Franklin Bissett Canadian Equity Fund Franklin Bissett Canadian Equity Corporate Class Franklin Bissett Dividend Income Fund Franklin Bissett Dividend Income Corporate Class Franklin Bissett Monthly Income and Growth Fund Franklin Mutual European Fund Franklin Mutual U.S. Shares Fund Franklin Mutual U.S. Shares Corporate Class Franklin Mutual Global Discovery Fund Franklin Mutual Global Discovery Corporate Class Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio

1.00 0.50 1.00 0.50 1.00 N/A 0.75 N/A

Franklin Quotential Growth Portfolio Franklin Quotential Growth Corporate Class Portfolio

Templeton Growth Fund, Ltd. Templeton Growth Corporate Class

1.00 0.50 1.00 0.50 1.00 N/A 0.50 N/A

All other Funds, except Franklin Bissett Canadian Government Bond Fund

1.00 0.50 1.00 0.50 1.00 N/A N/A N/A

Note: If you purchased securities of a Fund under a previous Franklin Templeton Investments prospectus, the trailing commissions may be different to those listed above.


1 Only applicable to matured Series A (including A (Hedged)) and T (including T-USD) securities. Deferred sales charge matured securities refers to securities that have been issued and outstanding for more than six years.

2 Only applicable to matured Series A (including A (Hedged)) and T (including T-USD) securities purchased on or after June 12, 2006. Low-load matured securities refers to securities that have been issued and outstanding for more than three years.

3 T-USD is a separate Series of securities and not a purchase option, see Purchase options on page 24. Inter-company service fee For acting as a principal distributor for Series F, FT, O, OT, PF and PF (Hedged) securities, the Manager pays to our affiliate, FTC ISI, a portion of the management fee received as an inter-company service fee of 0.20% in respect of those securities.

Marketing support programs We pay for marketing materials we provide to Dealers to help support the sale of our Funds. These materials may include reports and commentaries on the financial markets, securities in general or on the Funds themselves. In addition, we may organize and present educational conferences for Dealers to attend or pay the registration costs for Dealers to attend conferences hosted by third parties.

We may share with Dealers some of the costs they incur in publishing and distributing sales communications for investors, organizing and presenting seminars to educate investors about mutual funds or organizing and presenting conferences or seminars that Dealers may attend.

We may execute brokerage transactions through Dealers who have provided other services to the Funds, such as investment research, order execution, or distribution of Fund securities. However, we will only execute through such a Dealer if the relevant Dealer can best execute the transactions, in accordance with our policy. See the AIF for more information.


Dealer compensation from management fees

We paid Dealers approximately 35.50% of the total management fees we earned on all of the Funds in our last completed financial year. This amount included sales and trailing commissions, as well as our support of their promotional activities.


Income tax considerations for investors

This information is a general summary of Canadian federal income tax rules. It assumes you are a Canadian resident individual (other than a trust) that you deal at arm’s length with the Funds and that you hold your securities as capital property. More detailed information is available in the Annual Information Form. This summary is not exhaustive of all tax considerations, therefore you should consult your tax advisor about your own tax situation.

For Funds held in a registered plan The securities of Templeton Asian Growth Fund and Templeton Frontier Markets Fund are not qualified investments under the Income Tax Act (Canada) (the “Tax Act”) for registered plans and adverse tax consequences will arise if securities of these Funds are acquired and held by a registered plan. The securities of other Funds are or expected to be qualified investments under the Tax Act for registered plans. If you hold securities of a Fund in a registered plan such as a RRSP, RRIF, RESP, deferred profit sharing plan (“DPSP”) or registered disability savings plan (“RDSP”), distributions or dividends paid by the Fund and capital gains from a disposition of the securities are generally sheltered from tax until you decide to make withdrawals from the plan. If you hold securities of a Fund in a TFSA, distributions or dividends paid by the Fund and capital gains from a disposition of the securities are sheltered from tax. Currently, none of Templeton Asian Growth Fund, Templeton Frontier Markets Fund and Franklin Bissett Canadian Government Bond Fund qualify as a “mutual fund trust” for tax purposes. If, in the future, any of the Funds do not qualify as mutual fund trusts, the Funds may become subject to alternative minimum tax, Part X.2 tax and Part XII.2 tax, and will not be entitled to capital gains refunds. The portfolio advisors will use their best efforts to manage the investments of the Funds so that they will not be liable for any of these taxes. An annuitant of a trust governed by a RRSP or RRIF, the holder of a TFSA or RDSP, or the subscriber of an RESP may be subject to a penalty tax in respect of Funds held by the RRSP, RRIF, TFSA, RDSP or RESP if the Funds are “prohibited investments” as determined under

the Tax Act. As long as the RRSP or RRIF annuitant, TFSA or RDSP holder, or RESP subscriber deals at arm’s length with the Fund or does not have a “significant interest” in the Fund, the Fund will not be a prohibited investment under the Tax Act for the RRSP, RRIF, TFSA or RDSP, or the subscriber of an RESP. For more information as to whether mutual fund securities of the Funds would be prohibited investments for your RRSP, RRIF, TFSA, RDSP or RESP, you should contact your tax advisor. For Funds not held in a registered plan If you hold securities of Templeton Growth Fund, Ltd. or the Corporate Class Funds outside of a registered plan, you must include in computing your income for tax purposes any dividends paid to you by Templeton Growth Fund, Ltd. or the Corporate Class Funds, whether you receive these dividends in cash or they are reinvested in additional securities. Templeton Growth Fund, Ltd. or the Corporate Class Funds may distribute both ordinary dividends and capital gains dividends. Ordinary dividends will be subject to the applicable gross-up and dividend tax credit rules for dividends received from taxable Canadian corporations. An enhanced gross up and dividend tax credit is available in respect of “eligible dividends” paid by a corporation resident in Canada which are so designated by the corporation. Capital gains dividends, whether paid in cash or reinvested, will be taxed as realized capital gains in your hands. Capital gains dividends are distributions of realized capital gains. Capital gains may be realized in various circumstances, including when Templeton Growth Fund, Ltd. or a Corporate Class Fund disposes of capital property held in its portfolio at a profit as a result of an investor


switching out of that Fund. Capital gains dividends may be paid to investors in any of the Corporate Class Funds, whether or not the realized capital gains arise directly from the investment portfolio attributable to such Corporate Class Funds. In certain circumstances, capital losses realized by Templeton Growth Fund, Ltd. and Franklin Templeton Corporate Class Ltd. may be suspended and therefore will be unavailable to shelter capital gains.

Generally, if you receive management fee or expense rebates from the Manager in respect of management fees or other expenses paid by Templeton Growth Fund, Ltd. or the Corporate Class Funds, you must include those payments in computing your income for tax purposes whether you received the amount in cash or additional securities.

The dividends paid to an investor in the Corporate Class Funds will differ from the dividends or distributions the investor would have received if the investor had invested in a mutual fund that was not part of a multi-class structure. Because Franklin Templeton Corporate Class Ltd. is a single mutual fund corporation, its tax position will include, among other things, the revenues, deductible expenses, capital gains and capital losses of the investment portfolios attributable to all the Corporate Class Funds and the various series of securities of the Corporate Class Funds. For example, the net losses or net capital losses in respect of the investment portfolio of a particular Corporate Class Fund may be applied to reduce the net income or net realized capital gains of Franklin Templeton Corporate Class Ltd. as a whole. Generally, this will benefit the investors in the Corporate Class Funds other than the particular Corporate Class Fund. Franklin Templeton Corporate Class Ltd. will, on a discretionary basis, allocate its income or loss and the applicable taxes payable to each Corporate Class Fund. Franklin Templeton Corporate Class Ltd. may pay, on a discretionary basis, capital gains dividends to securityholders of any Corporate Class Fund so that it can receive a refund of capital gains taxes it has paid. Capital gains taxes may arise when a Corporate Class Fund disposes of capital property held in

its portfolio at a profit as a result of an investor switching out of that Corporate Class Fund. The amount of capital gains dividends to be paid by a Corporate Class Fund will be affected by the number of redemptions from all Corporate Class Funds, as well as accrued gains or losses of Franklin Templeton Corporate Class Ltd. as a whole. Distributions made by any of the Corporate Class Funds which are a return of capital will not be taxable to you but will reduce the adjusted cost base of your securities. Where the amount deducted causes the adjusted cost base of your securities of that Class to become a negative amount, such amount will be treated as a realized capital gain. The adjusted cost base of your securities of that Class will then be increased to nil. Any future deductions which cause the adjusted cost base to become a negative amount will similarly be treated as a capital gain realized and will result in a subsequent adjustment to the adjusted cost base of your securities. The monthly distributions made by the Funds on any of the Series FT, OT, PFT, T, T-USD and V securities are expected to be made as returns of capital, and will have the tax consequences as described above. For more information, contact your tax advisor. If you hold securities of one of the other Funds outside of a registered plan, you must include in computing your income for tax purposes the amount of the net income and the taxable portion of net capital gains paid or payable to you by the Fund in the year, whether you receive these distributions in cash or they are reinvested in additional securities. To the extent that these Funds so designate under the Tax Act, distributions of net capital gains, taxable dividends on securities of taxable Canadian corporations and foreign source income of a Fund paid or payable to you by the Fund will effectively retain their character in your hands and be subject to the special tax treatment applicable to income of that character.


To the extent that the distributions to you by one of these Funds in any year exceed your share of the net income and net realized capital gains of the Fund for the year, those distributions (except to the extent that they are proceeds of disposition) will be a return of capital. Distributions which are return of capital will not be taxable to you but will reduce the adjusted cost base of your securities. If the adjusted cost base of your securities is reduced to less than zero you will realize a capital gain to the extent that your adjusted cost base is below zero and the adjusted cost base of the securities will be increased by the amount of such gain. The monthly distributions by Franklin Bissett Canadian Dividend Fund may include a return of capital and monthly distributions made by the Funds on any of the Series FT, OT, PFT, T, T-USD and V securities are expected to be made as returns of capital, and will have the tax consequences as described above. We will provide you with information regarding any distributions that are a return of capital. For more information, contact your tax advisor.

Some Funds may have investors who own a significant amount of the Fund as described under “Large Investor Risk” on page 2. Large redemptions by these investors may result in more accrued gains to be recognized that could increase the distribution of a Fund. As described under “Large Investor Risk” on page 2, there are new tax loss restriction rules that apply to a Fund each time the Fund experiences a “loss restriction event” for tax purposes. Where a Fund experiences a “loss restriction event”, the Fund may make an unscheduled distribution of income and capital gains that must be included in computing your income for tax purposes. The amount of distributions paid by the Fund after a “loss restriction event” may be larger than they otherwise would have been due to the deemed recognition and expiry of losses (both realized and unrealized net of elected unrealized gains) at the time of the “loss restriction event”. When you invest in a Fund, the unit price may include accrued but unrealized capital gains and realized income and capital gains that have not

been distributed or paid out as a dividend, as the case may be. You may be taxed on such amounts when they are distributed or paid out as a dividend, as the case may be. If you invest in a Fund before a distribution or dividend date, you will have to pay tax on any distribution of income or capital gains or any dividend paid to you, even if the distribution or dividend relates to income or capital gains that were earned before you bought your securities.

The Declaration of Trust provides for the automatic distribution to securityholders of a sufficient amount of net income and net realized capital gains for each taxation year (including a taxation year that is deemed to end) so that the Fund will not be liable for income tax under Part I of the Tax Act, other than alternative minimum tax. The Declaration of Trust also provides that this distribution is automatically reinvested in securities of the Fund and the securities are immediately consolidated to the pre-distribution NAV. As prescribed by the Canada Revenue Agency, we will send you a tax form each year indicating the amount of income, capital gains or return of capital distributed to you in the previous year and the amount of taxable dividends and capital gains dividends that were paid to you in the previous year, if applicable.

Dispositions and Switches of Funds not held in a registered plan If you sell securities, or if you switch securities of a Fund for securities of another Fund (including on a redemption of securities to pay an Investment Advisory Services Fee) you may realize a capital gain or loss. The capital gain (loss) will be equal to the difference between the amount you receive for the sale or switch net of any costs (such as a redemption fee) and the adjusted cost base of the securities sold. A switch of securities of one series of a Fund into securities of another series of the same Fund, will not, in itself, result in a capital gain or loss; other than a switch to or from Series A (Hedged) securities of Templeton Growth Fund, Ltd. or to or from Series PF (Hedged) securities of Franklin


U.S. Rising Dividends Fund which will be a disposition. Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch. In the case of a disposition of securities, one-half of a capital gain generally is included in determining your income. In certain situations, where a securityholder disposes of securities of a Fund and would otherwise realize a capital loss, the loss will be

denied. In certain other situations, where a securityholder receives dividends from a Fund and would otherwise realize a capital loss, the securityholder may be required to reduce the capital loss realized by the amount of the dividends received. For more information, contact your tax advisor. We will provide you with details on the proceeds from the sale or switch. However, in order to calculate your gain or loss, you need to know the adjusted cost base of your securities before disposition.

How to calculate the aggregate adjusted cost base (ACB) of your investment in securities of a series of a Fund ACB = the cost of your initial investment, including sales charges Plus the cost of any additional purchases, including sales charges Plus reinvested distributions or dividends (including management fee distributions or rebates) Plus, for a Corporate Class Fund, the adjusted cost base of any securities of another Corporate

Class Fund that were switched into the Corporate Class Fund on a tax-deferred basis and the fair market value of any securities of another Corporate Class Fund that were switched into the Corporate Class Fund on a taxable basis

Minus the capital returned in any distributions Minus the ACB of any previous redemptions Minus, for a Corporate Class Fund, the adjusted cost base of any securities of the Corporate

Class Fund that were switched into another Corporate Class Fund Note: The monthly distributions on Franklin Bissett Canadian Dividend Fund and Series FT, OT, PFT, T

(including T-USD) and V securities of the Funds may include returns of capital. The adjusted cost base (ACB) of your securities of a Fund is determined by dividing the book value of your total investment in Fund by the number of securities of that series of the Fund that you own. Investors holding Series O or Series OT securities should consult with their own tax advisors with respect to the deductibility of their management and administration fees paid outside the Fund to the Manager.


Additional Information International Information Reporting Pursuant to the Intergovernmental Agreement for the Enhanced Exchange of Tax Information under the Canada-U.S. Tax Convention entered into between Canada and the United States (the “IGA”), and related Canadian legislation, the Funds and the dealers through which securityholders hold their securities are required to report certain information, including certain financial information (e.g. account balances), with respect to securityholders who are U.S. residents and U.S. citizens (including U.S. citizens who are residents or citizens of Canada), and certain other “U.S. Persons” as defined under the IGA (excluding Registered Plans), to the Canada Revenue Agency. The Canada Revenue Agency will then exchange the information with the U.S. Internal Revenue Service pursuant to the provisions of the Canada-U.S. Tax Convention. In addition, pursuant to rules in the Tax Act implementing the Organisation for Economic Co-operation and Development Common Reporting Standard (the “CRS Rules”) a Fund and the dealer through which securityholders hold their securities are required under Canadian legislation to identify and report to the Canada Revenue Agency certain information, including financial information (e.g. account balances), relating to securityholders of the Funds (other than Registered Plans) who are residents in a country outside Canada and the U.S. Such information would be exchanged by the Canada Revenue Agency with the countries where such securityholders are resident if those countries have adopted the CRS Rules.

What are your legal rights? You may have the right to withdraw from your agreement to buy mutual funds within two business days of receiving the prospectus or fund facts, or to cancel your purchase within 48 hours of receiving confirmation of your order.

Securities legislation in some provinces and territories also allows you to cancel an agreement to buy mutual fund securities and get your money back, or to make a claim for damages, if the prospectus, annual information form, fund facts or financial statements misrepresent any facts about the Fund. These rights must usually be exercised within certain time limits.

For more information, refer to the securities legislation of your province or territory or consult your lawyer.


Specific information about each of the mutual funds described in this document

Introduction In this part of the prospectus, you will find everything you need to help you evaluate and compare the Funds in light of your investment needs. The Fund descriptions, which begin on page 68, give you specific information about each Fund.

Information that is common to most of the Funds is described here. You should refer back to this section when reading the Fund description to make sure you have complete information about a particular Fund. Certain terms are defined in the glossary. Fund details This section gives you information such as type of mutual fund, the Fund’s start-up date, the nature of the securities offered by the Fund (series of securities), the Fund’s eligibility for registered plans and the name of the portfolio advisor and/or sub-advisor for the Fund. Templeton Growth Fund, Ltd. and Franklin Templeton Corporate Class Ltd. are mutual fund corporations and each of the Corporate Class Funds is a class of Franklin Templeton Corporate Class Ltd. All other Funds are mutual fund trusts. We state whether the securities you are buying are securities of a mutual fund trust or securities of a mutual fund corporation.

All of the Funds, except Templeton Asian Growth Fund and Templeton Frontier Markets Fund, are eligible for registered plans such as RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs.

What is the difference between a global equity fund and an international equity fund? A global equity fund may invest in any country in the world, including Canada and the United States. An international equity fund may invest anywhere outside Canada and the United States.

What does the fund invest in? This section includes the Fund’s fundamental investment objective and the investment strategies it uses in trying to achieve its objective. Investments in Derivatives

What is a derivative? A derivative is a contract between two parties that derives its value from another security such as common securities, bonds, currencies or a market index. Some examples of the most common derivatives are:

A forward contract is an agreement to buy or sell currency, commodities or securities at an agreed price for future delivery. Forward contracts are often used to reduce risk. For example, if you knew you would be buying goods priced in U.S. dollars in six months’ time, you might buy U.S. dollars now for delivery in six months to avoid the risk of the U.S. dollar rising in value. This is called hedging.

An option gives the buyer the right, but not the obligation, to buy or sell currency, commodities or securities at an agreed price within a certain period of time. For example, you might hedge the share price of a stock you own by buying an option to sell it at its current price for the next six months. If the share price falls, all you will lose is the price of the option. Of course, if it goes up, you will not make as much, because you have paid for the option.

The Funds may invest in derivatives to the full extent permitted by Canadian securities legislation. The Funds may invest in derivatives as follows: to hedge against losses from movements in stock markets, currency exchange rates or interest rates;


to gain indirect exposure to individual securities, markets or other investments, instead of buying the underlying securities or other investments directly; or to seek to generate additional income. The Funds, other than the money market funds, have received an exemption from the Canadian securities regulatory authorities from certain of the derivative rules set out in applicable Canadian securities legislation. This exemption allows each of these Funds to: enter into interest rate swaps, credit default

swaps or, if the transaction is for hedging purposes, currency swaps or forwards that, in each case, have a remaining term to maturity of greater than three years;

use as cover bonds, debentures, notes or other evidences of indebtedness that are liquid, floating rate evidences of indebtedness or securities of our money market funds; and

use as cover, when a Fund holds a long position in a debt-like security that has a component that is a long position in a forward contract or in a standardized future or forward contract or when a Fund is entitled to receive payments under a swap, a right or obligation to sell an equivalent quantity of the underlying interest of the standardized future, forward or swap.

For more details on this exemption, please refer to the AIF. We note which Funds may invest in derivatives in the Fund descriptions. Futures contracts can only be entered into by funds whose portfolio advisors: (i) are registered to advise with respect to futures (“futures registration”); or (ii) have been granted an exemption from the futures registration requirement. Franklin Templeton Investments Corp. and Fiduciary Trust Company of Canada have obtained their futures registration and three other portfolio advisors have been granted an exemption from the futures registration requirement. We have included specific references to investing in futures contracts in the investment strategies of those Funds that are expected to do so.

Securities lending, repurchase and reverse transactions The Funds may enter into securities lending transactions, repurchase transactions and reverse repurchase transactions in order to earn additional income. Securities lending involves lending securities held by a Fund to qualified borrowers who have posted collateral. The Fund retains its exposure to changes in the value of the borrowed securities while earning additional fees. A repurchase transaction involves a Fund selling a security at one price and agreeing to buy it back from the same party at a fixed price. While the Fund retains its exposure to changes in the value of the portfolio securities, it also earns fees for participating in the repurchase transaction. A reverse repurchase transaction involves a Fund buying a security at one price and agreeing to sell it back to the same party at a higher price. The difference between the Fund’s purchase price for the security and the resale price provides the Fund with additional income. Short selling The Funds may, in the future, engage in a limited amount of short selling. Currently, the Manager is amending its policies and procedures to reflect the Canadian legal requirements regarding short selling. A short sale is where a Fund borrows securities from a lender and sells them in the open market (“short sale”). The Fund must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the Fund pays interest to the lender on the borrowed securities. If the value of the securities declines between the time of the initial short sale and the time it repurchases and returns the securities, the Fund makes a profit for the difference (less any interest paid by the Fund to the lender). Short selling provides the Funds with more opportunities for profits when markets are generally volatile or declining.


The Funds will engage in short selling only within certain controls and limitations. Securities will be sold short only for cash. At the time securities of a particular issuer are sold short by a Fund:

(i) the Fund has either borrowed or arranged to borrow from a qualified lender the issuer’s securities;

(ii) the aggregate market value of all securities of that issuer sold short will not exceed 5% of the total net assets of the Fund; and

(iii) the aggregate market value of all securities sold short by the Fund does not exceed 20% of the total net assets of the Fund.

A Fund also will hold “cash cover” (as defined in NI 81-102) in an amount, including the Fund’s assets deposited with lenders as security in connection with the short sale transactions, that is at least 150% of the aggregate market value of all securities it sold short on a daily marked-to-market basis. No proceeds from short sales will be used by a Fund to purchase long positions other than cash cover. Portfolio turnover rate greater than 70% The higher a Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund, and the greater the chance that you may receive a distribution or dividend from the Fund that must be included in computing your income for tax purposes for that year. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. Funds, other than money market funds, with a portfolio turnover rate greater than 70%, are identified in the investment strategies section of their Fund descriptions. What are the risks of investing in the fund? The main risks of a Fund’s investment strategy are listed under this heading in point form, and in order of importance. Funds that invest in other Funds are subject to the same risks as the Funds that they invest in. You can read a complete description of each kind of risk in the first part of this prospectus under Different kinds of mutual funds have different kinds of risks on page 2.

Who should invest in this Fund? The “Who should invest in this fund?” section in each Fund description page tells you the type of investor the Fund may be suitable for. This information is intended as a general guide only. When you are choosing investments, you should, together with your financial advisor, consider your whole portfolio, your investment objectives and your risk tolerance level. Investment risk classification methodology The investment risk level of this mutual fund is required to be determined in accordance with a standardized risk classification methodology that is based on the mutual fund's historical volatility as measured by the 10-year standard deviation of the returns of the mutual fund. We review the risk ratings of the funds on an annual basis and when there is a material change to a fund. A full description of the methodology we use to determine the risk ratings of the funds is available on request and at no cost by calling toll-free 1-800-387-0830, by contacting us at [email protected] or by writing us at Franklin Templeton Investments Corp., 5000 Yonge Street, Suite 900, Toronto, Ontario M2N 0A7. Distribution policy This section tells you when you can expect to receive dividends (from a mutual fund corporation) or distributions (from a mutual fund trust). We may choose to pay distributions at other times, including when you redeem securities. Dividends or distributions on securities held in Franklin Templeton Investments registered plans are always reinvested in additional securities of the Funds. Dividends or distributions on securities held in other registered plans or in non-registered accounts are automatically reinvested in additional securities of the Fund unless you tell us in writing that you prefer to receive cash dividends or distributions. Dividends or distributions on Series FT, OT and T (including T-USD) securities held in non-registered accounts are automatically reinvested unless you tell us in writing that you prefer to


have these dividends or distributions paid out as cash. With our Flexible Series T solution, you also have the option of choosing to have a portion of your dividends or distributions paid out as cash and the remainder reinvested. Please speak with your investment advisor for more information on Flexible Series T. Although Series T-USD securities are denominated in Canadian dollars, the monthly distributions for Series T-USD securities are an amount fixed in U.S. dollars and will therefore not fluctuate based on the exchange rate of the Canadian dollar. The distributions for Series T-USD securities (and the NAV) will therefore differ from that of the Canadian dollar Series T securities. You will be taxed on your dividends or distributions (other than a return of capital) even if the dividends or distributions are reinvested to purchase additional securities, unless your investment is held in a registered plan. Fund expenses indirectly borne by investors Mutual funds pay their expenses out of fund assets. This means investors in a fund indirectly pay for these expenses through lower returns.

For those Funds having more than one series, the expenses of each series are tracked separately. For Series O and OT, there are no expenses indirectly borne by investors. The chart allows you to compare the cost of investing in the Fund with the cost of other mutual funds. It shows the cumulative expenses you would have paid over various time periods if you:

invested $1,000 in Series A, A (Hedged), F, FT, I, PF, PF (Hedged), PFT, T, T-USD or V of any of the Funds

earned a total annual return of 5%, which may be different from the series’ actual return in any given year and is only used for illustrative purposes as required by the securities regulators

paid the same management expense ratio each year as you did in the Fund’s last completed financial year.

See Fees and expenses on page 35 of this prospectus for more information about the cost of investing in Series O and OT securities of the Funds.


Templeton Templeton Global Equity Group For more than 70 years, the Templeton organization has been synonymous with global investment management governing a suite of equity, balanced and income funds. Armed with a team of experienced analysts around the globe, we are able to scour the world for undervalued companies and maintain a local presence by conducting thorough in-person visits with thousands of companies each year. Templeton’s Investment Strategy Search Globally

Templeton has always believed that when searching for the best investment opportunities, bargains are borderless. To find the most promising companies for our portfolios, we leverage the experience and resource infrastructure developed over the last 70 years, including analysts and offices that span the globe, from Asia to Europe to the Americas. Seek Value

As value-oriented investors, we search worldwide for stocks selling at prices we believe are low relative to their true value. Stocks are typically mispriced for a reason, and our analysts must distinguish a “cheap” stock from a true bargain. Perform Fundamental, Bottom-Up Research

Our research begins with the company. We conduct in-person visits and perform extensive fundamental research to model a company’s potential future earnings, cash flow and asset value relative to its stock price. Then we compare the results to other companies in its industry and versus companies regionally and globally to determine if a stock is undervalued. Practice Patient, Long-Term Investing

We have always believed it’s better to adhere to a sound investment plan than to jump in and out of the market. As disciplined investors, we evaluate a company’s potential for earnings and growth over a five-year horizon. We believe this discipline is what drives more consistent long-term results, in terms of both lower volatility and strong returns. In the words of Sir John, we prefer to buy when others are “despondently selling” and sell when others are “avidly buying.” Templeton Emerging Markets Group Templeton Emerging Markets Group generally follows the same overall Templeton approach, but focuses on investment opportunities in emerging and frontier markets, where it can capitalize on its experience, its on-the-ground presence and the dynamic economic growth potential of these countries.


Templeton Asian Growth Fund Fund details Series O is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Asia Pacific ex-Japan equity

Start date: Series O securities: December 31, 2010

Nature of securities:

Series O securities of a mutual fund trust

Eligible for registered plans:

No

Portfolio advisor:

Franklin Templeton Investments Corp., Toronto, Ontario

Sub-advisor:

Templeton Asset Management Ltd.,

Singapore

What does the fund invest in? Investment objective long-term capital appreciation by investing

primarily in equity securities of companies located in the Asia region including, but not limited to Hong Kong, India, Indonesia, Korea, Malaysia, People’s Republic of China, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam and in companies expected to benefit from developments in the economies of the Asia region.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 68. Asian companies (“Asian Companies”) are those: whose principal securities trading markets are

in Asia region countries; or

that derive at least 50% of their total revenues or profits from either goods or services produced or sales made in Asia region countries; or

that have at least 50% of their assets in Asia region countries; or

that are linked to currencies of Asia region countries; or

that are organized under the laws of, or with principal offices in, Asia region countries.

The Fund: will, under normal market conditions, invest at

least 80% of its assets in equity securities of Asian Companies

may invest in American, Global and European Depositary Receipts, which are certificates typically issued by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic corporation

may invest in China A-securities listed and traded on the SSE through Stock Connect

may invest in securities of issuers in non-Asia region countries, including but not limited to Australia, New Zealand or Japan

may invest in debt obligations of Asian Companies or countries in the Asia region

selects investments from different industries and companies of any size

may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a

Templeton Asian Growth Fund


manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? emerging markets risk equity risk foreign investment risk smaller companies risk specialization risk depositary receipt risk large investor risk portfolio management risk liquidity risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk short selling risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 42.50% of the Fund, Franklin Quotential Balanced Income Portfolio held 12.46% of the Fund, Franklin Quotential Growth Portfolio held 12.41% of the Fund and Franklin Quotential Balanced Growth Portfolio Corporate Class held 11.21% of the Fund. See page 2 for a full discussion of these risks. In addition to the risks listed above, because of certain restrictions imposed by PRC investment regulations regarding the repatriation of assets invested in China A-securities, after the Lock-Up Period, TCOF may, from time to time, be delayed in meeting redemption requests. These potential

delays could adversely impact the Fund’s ability to redeem assets out of TCOF. Who should invest in this fund? Investors: seeking above average capital gain potential

of a fund concentrated on the Asia region, on its own or as a small portion of a well-diversified portfolio

planning to hold their investment for the long term

This Fund is for investors willing to accept medium to high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI AC (All Country) Asia ex. Japan Gross Return Index. MSCI AC (All Country) Asia ex. Japan Gross Return Index measures the equity performance of Asia, excluding Japan. The index includes Hong Kong, India, Indonesia, Korea, Malaysia, the People’s Republic of China, the Philippines, Singapore, Taiwan and Thailand. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may pay distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $) Please see Fund expenses indirectly borne by investors on page 67


Templeton Asian Growth Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Asia Pacific ex-Japan equity

Start date: Series A, F, I and O securities: December 31, 2010


Series A, F, I and O securities of a mutual fund corporation


Yes

Portfolio advisor:

Franklin Templeton Investments Corp., Toronto, Ontario is the portfolio advisor of both the Fund and Underlying Fund

Sub-advisor:

Templeton Asset Management Ltd., Singapore is the sub-advisor of the Underlying Fund

What does the fund invest in?

Investment objective long-term capital appreciation by investing

substantially all of its assets in securities of Templeton Asian Growth Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies

The Fund: invests in securities of Templeton Asian

Growth Fund, whose investment objective is long-term capital appreciation by investing primarily in equity securities of companies located in the Asia region including, but not limited to Hong Kong, India, Indonesia, Korea, Malaysia, People’s Republic of China, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam and in companies expected to benefit from

developments in the economies of the Asia region.

invests up to 100% of its assets in securities of Templeton Asian Growth Fund and therefore the share price of Templeton Asian Growth Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton Asian Growth Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 69 for a full description of the Investment strategies of Templeton Asian Growth Fund. What are the risks of investing in the fund? See page 70 for a list of the risks associated with the Fund’s investment in Templeton Asian Growth Fund. The Fund has these additional risks: tracking risk series risk corporate class fund risk tax risk As of April 30, 2018, one securityholder held 22.00% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking above average capital gain potential

of a fund concentrated on the Asia region, on its own or as a small portion of a well-diversified portfolio


Templeton Asian Growth Corporate Class



Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI AC (All Country) Asia ex. Japan Gross Return Index. MSCI AC (All Country) Asia ex. Japan Gross Return Index measures the equity performance of Asia, excluding Japan. The index includes Hong Kong, India, Indonesia, Korea, Malaysia, the People’s Republic of China, the Philippines, Singapore, Taiwan and Thailand.

Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year. Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years

Expenses payable over:

Series A 30.87 97.32 170.58 388.28

Series F 19.95 62.89 110.24 250.93

Series I 25.83 81.43 142.73 324.89 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.



Fund details

Type of fund: International equity

Start date:

Series F securities: January 2, 1994

Series A and O securities: November 24, 2000

Series PF securities: October 3, 2016


Series A, F, O and PF securities of a mutual fund trust


Yes

Portfolio advisor:




primarily in a diversified portfolio of non-North American international equities.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 68. The Fund: selects investments from many different

industries and countries to enhance returns and reduce risks

may invest in any number of companies from one country or industry


engages, from time to time, in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. These currency

management strategies will be implemented by investing in currency forward contracts. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar

may hold a portion of its assets in cash, money market securities or money market

mutual funds while seeking investment opportunities or for defensive purposes • may engage in securities lending,

repurchase and reverse repurchase transactions as well as invest in derivatives

including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund?

equity risk foreign investment risk depositary receipt risk large investor risk derivative risk portfolio management risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk



As of April 30, 2018, Franklin Bissett Institutional Balanced Trust held 32.95% of the Fund and Franklin Bissett Canadian Balanced Fund held 21.91% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: • who are seeking a well-diversified core

international fund with minimal to no emerging markets or smaller companies exposure

• who are seeking to lower their exposure to the impact of currency fluctuations relative to the Canadian dollar

• planning to hold their investment for the medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Distribution policy

The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.30 86.06 150.85 343.38

Series F 15.33 48.33 84.71 192.82

Series PF 10.82 34.09 59.76 136.03

Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.


Templeton Emerging Markets Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Emerging markets equity

Start date:

Series A securities: September 20, 1991

Series F, I and O securities: November 24, 2000



Series A, F, I, O and PF securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisor: Templeton Asset Management Ltd., Singapore


primarily in equities of companies in emerging markets.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 68. The Fund may invest in equities of companies that: that derive 50% or more of their total

revenue or profit from goods or services sold or produced in emerging market countries; or

that have 50% or more of their assets in emerging market countries.

An emerging market is any country with:

a stock market capitalization of less than 3% of the Morgan Stanley Capital International (“MSCI”) World Index, at the time of purchase; and

a low or middle income economy, as determined by the International Bank for Reconstruction and Development. Examples of low or middle income economies include Indonesia, Colombia, Peru, Philippines, South Africa and Thailand.

The Fund: selects investments from many different

industries and emerging market countries to provide a diversified portfolio of emerging market securities



may, to the extent permitted under securities legislation, invest in equity linked notes (“Notes”) for the purpose of gaining exposure to a specific security basket of securities or an equity index, provided that an investment in the securities to which these relate would be eligible for direct investment and consistent with the Fund’s investment objective. A Note’s return on investment is typically tied to the performance of an equity security or securities, whereby the value of the Note at maturity and/or its coupon is determined by movements in the value of the underlying equity security. Generally, the market value of a Note should follow that of the underlying equity security but there is no guarantee that it will fluctuate in the same manner. Notes may or may not be listed on a



recognized stock exchange or dealt in a regulated market. These Notes will largely carry the same risks as “traditional” equity securities but will be subject to the credit risk of the issuer of the Notes and not that of the issuer of the underlying equity

may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? emerging markets risk equity risk foreign investment risk smaller companies risk depositary receipt risk large investor risk liquidity risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk

series risk short selling risk cyber security risk As of April 30, 2018, Franklin Templeton Emerging Markets Corporate Class held 10.16% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors:

seeking above average capital gain potential

of an emerging markets fund, on its own or as a small portion of a well-diversified portfolio


This Fund is for investors willing to accept medium to high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.



Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 30.03 94.67 165.94 377.72

Series F 18.69 58.92 103.27 235.08

Series I 24.15 76.13 133.44 303.76

Series PF 15.86 49.98 87.61 199.42



Templeton Emerging Markets Corporate Class Fund details

Type of fund: Emerging markets equity

Start date: Series A, F and O securities: June 18, 2001

Series PF securities: June 15, 2015


Series A, F, O and PF securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor: Templeton Asset Management Ltd., Singapore is a sub-advisor of the Underlying Fund



substantially all of its assets in securities of Templeton Emerging Markets Fund (the “Underlying Fund”).


The Fund:

invests in securities of Templeton Emerging Markets Fund, whose investment objective is long-term capital appreciation by investing primarily in equities of companies in emerging markets

invests in securities of Templeton Emerging Markets Fund and therefore the share price of Templeton Emerging Markets Corporate

Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton Emerging Markets Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 75 for a full description of the Investment strategies of Templeton Emerging Markets Fund. What are the risks of investing in the fund? See page 76 for a list of the risks associated with the Fund’s investment in Templeton Emerging Markets Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk

See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking above average capital gain potential

of an emerging markets fund, on its own or as a small portion of a well-diversified portfolio to be held primarily outside a registered plan


This Fund is for investors willing to accept medium to high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.



Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 30.24 95.33 167.10 380.36

Series F 19.01 59.91 105.01 239.04

Series PF 15.86 49.98 87.61 199.42

Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Templeton Frontier Markets Fund Fund details Series O is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Emerging markets equity

Start date: Series O securities: July 18, 2011




No

Portfolio advisor:


Sub-advisor:

Franklin Templeton Investments (ME) Limited, Dubai, United Arab Emirates


primarily in equity securities of companies located in frontier market countries and in companies expected to benefit from developments in the economies of frontier market countries.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 68. Frontier market countries (“Frontier Market Countries”) are: countries with a stock market capitalization of

less than 3% of the Morgan Stanley Capital International World Index; and

a sub-set of those currently considered to be developing by the World Bank, the International Finance Corporation, the United

Nations, or the countries’ authorities, which are typically located in the Asia-Pacific region, Central and Eastern Europe, the Middle East, Central and South America, and Africa. Examples of developing countries may include Bangladesh, Sri Lanka, Azerbaijan, Romania, Jordan, Tunisia, Columbia, Paraguay, Kenya and Zambia.

Frontier markets companies (“Frontier Markets Companies”) are those: whose principal securities trading markets are

in frontier market countries; or that derive 50% or more of their total revenue

or profit from either goods or services produced or sales made in frontier market countries; or

that have 50% or more of their assets in frontier market countries; or

that are linked to currencies of frontier market countries; or

that are organized under the laws of, or with principal offices in, frontier market countries.

As the economies and capital markets of frontier market countries evolve, the above definitions of “Frontier Market Countries” and “Frontier Markets Companies” may change slightly from time to time. The Fund: will, under normal market conditions, invest

at least 80% of its assets in equity securities of Frontier Markets Companies


Templeton Frontier Markets Fund


selects investments from different industries and companies of any size, including small and micro-cap companies

may invest in securities of issuers that are not Frontier Markets Companies

may invest in debt obligations of issuers located in frontier market countries, which may be lower-rated or unrated

may invest in illiquid securities may, to the extent permitted under securities

legislation, invest in equity linked notes (“Notes”) for the purpose of gaining exposure to a specific security basket of securities or equity index, provided that an investment in the securities to which these relate would be eligible for direct investment and consistent with the Fund’s investment objective. A Note’s return on investment is typically tied to the performance of an equity security or securities, whereby the value of the Note at maturity and/or its coupon is determined by movements in the value of the underlying equity security. Generally, the market value of a Note should follow that of the underlying equity security but there is no guarantee that it will fluctuate in the same manner. Notes may or may not be listed on a recognized stock exchange or dealt in a regulated market. These Notes will largely carry the same risks as “traditional” equity securities but will be subject to the credit risk of the issuer of the Notes and not that of the issuer of the underlying equity


may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules

received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? emerging markets risk equity risk foreign investment risk smaller companies risk specialization risk depositary receipt risk large investor risk liquidity risk portfolio management risk interest rate risk low-rated security risk credit risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk short selling risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 36.29% of the Fund, Templeton Frontier Markets Corporate Class held 16.82% of the Fund, Franklin Quotential Balanced Income Portfolio held 10.72% of the Fund and Franklin Quotential Growth Portfolio held 10.58% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking the above average capital gain

potential of a fund focused on investing in Frontier Market Countries, on its own or as a small portion of a well diversified portfolio




This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI Frontier Markets Gross Return (GR) Index. MSCI Frontier Markets Gross Return (GR) Index represents the performance of equity markets within frontier market countries. It consists of individual equity indices from 25 countries: Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Estonia, Jordan, Kenya, Kuwait, Lebanon, Lithuania, Kazakhstan, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Slovenia, Sri Lanka, Tunisia, Ukraine, the United Arab Emirates and Vietnam. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may pay distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $) Please see Fund expenses indirectly borne by investors on page 67.


Templeton Frontier Markets Corporate Class Fund details All series are presently capped (closed to new investors). Investors who currently own securities of these series may continue to purchase additional securities of these series. These series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Emerging markets equity

Start date: Series A, F and O securities: July 18, 2011


Series A, F and O securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Franklin Templeton Investments (ME) Limited, Dubai, United Arab Emirates is a sub-advisor of the Underlying Fund



substantially all of its assets in securities of Templeton Frontier Markets Fund (the “Underlying Fund”).


The Fund: invests in securities of Templeton Frontier

Markets Fund, whose investment objective is long-term capital appreciation by investing primarily in equity securities of companies located in frontier market countries and in companies expected to benefit from developments in the economies of frontier market countries.

invests up to 100% of its assets in securities of Templeton Frontier Markets Fund and therefore the share price of Templeton Frontier Markets Corporate Class rises and

falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton Frontier Markets Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 80 for a full description of the Investment strategies of Templeton Frontier Markets Fund. What are the risks of investing in the fund? See page 81 for a list of the risks associated with the Fund’s investment in Templeton Frontier Markets Fund. The Fund has these additional risks: tracking risk series risk corporate class fund risk tax risk As of April 30, 2018, one securityholder held 10.57% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking the above average capital gain

potential of a fund focused on investing in frontier market countries, on its own or as a small portion of a well-diversified portfolio planning to hold their investment for the long term

This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology”



on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI Frontier Markets Gross Return (GR) Index. MSCI Frontier Markets Gross Return (GR) Index represents the performance of equity markets within frontier market countries. It consists of individual equity indices from 25 countries: Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Estonia, Jordan, Kenya, Kuwait, Lebanon, Lithuania, Kazakhstan, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Slovenia, Sri Lanka, Tunisia, Ukraine, the United Arab Emirates and Vietnam.


One year

Three years

Five years

Ten years


Series A 31.08 97.98 171.74 390.92

Series F 19.53 61.57 107.92 245.65 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Templeton Global Balanced Fund Fund details Series I and V are presently capped (closed to new investors). Investors who currently own securities of these series may continue to purchase additional securities of these series. These series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global neutral balanced

Start date:

Series F, O and T securities: December 12, 2005

Series A and T-USD securities: June 26, 2008

Series FT securities: June 21, 2010

Series I and PF securities: July 7, 2014

Series PFT and V securities: February 26, 2015

Series OT securities: February 3, 2017


Series A, F, FT, I, O, OT, PF, PFT, T, T-USD and V securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisor:

Fixed income portion: Franklin Advisers, Inc., San Mateo, California

Equity portion: Templeton Global Advisors Limited, Nassau, Bahamas


Investment objective • current income while maintaining prospects for capital appreciation by investing primarily in debt and equity securities issued around the world. The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies

The Fund: seeks income by investing in a

combination of corporate, agency and government debt securities issued in

numerous countries, including developed and developing countries and emerging markets, as well as stocks that offer or could offer attractive dividend yields

seeks capital appreciation by investing in equity securities of companies from a variety of industries such as utilities, oil, gas and consumer goods located anywhere in the world, including emerging markets, but from time to time, based on economic conditions, the Fund may have significant investments in particular sectors

may invest in debt securities that are rated below investment grade, sometimes called “junk bonds” or “high yield” securities

may invest in equity related securities including warrants

may engage, from time to time, in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include currency options and cross hedging where the Fund attempts to hold a net long position of a particular currency versus a second currency (by selling forward contracts) even if the Fund does not hold securities denominated in the second currency

may enter into interest rate swap agreements to obtain exposure to selected interest rates and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as interest rate swaps, are contracts between the Fund and, typically, a brokerage firm, bank or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the

Templeton Global Balanced Fund


parties as the basis on which to calculate the obligations that they have agreed to exchange

may hold all of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), swaps, credit linked notes, equity linked notes and collateralized debt obligations (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may also invest, from time to time, in China A-securities either directly, through Stock Connect, or indirectly, through securities of Templeton China Opportunities Fund (“TCOF”), a sub-fund forming part of Franklin Templeton Selected Markets Funds. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to: invest up to 7.5% of its net assets, taken at

market value at the time of investment, in securities of TCOF. TCOF seeks capital appreciation by investing all or almost all of its assets in China A-securities of Chinese

companies listed on the Shanghai and Shenzhen Stock Exchanges. Due to restrictions imposed on foreign investors in the China A-security market, for a one year period following its initial investment, TCOF is subject to a lock-up period in which its investment principal may not be repatriated (the “Lock-Up Period”). TCOF is managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. Under the laws of Luxembourg, TCOF is considered as an undertaking for collective investment in transferable securities (“UCITS”) equivalent investment fund and manages its portfolio in accordance with the investment restrictions applicable to UCITS. The investment restrictions applicable to UCITS are substantially similar to those that govern the Fund in Canada. As part of its investment strategy, investing in TCOF provides the Fund access to Chinese stocks listed in the People’s Republic of China (“PRC”) and thereby obtain clear exposure to the local opportunities presented by the Chinese economy.

invest more than 10% of the Fund’s assets invested in fixed income securities issued or guaranteed by various governments or permitted international agencies that are traded on mature and liquid markets and provided that the acquisition of these securities is consistent with the Fund’s investment objective. As part of our investment strategy, this option gives us more flexibility to choose the most appropriate investments for the Fund.

What are the risks of investing in the fund? equity risk foreign investment risk credit risk low-rated security risk smaller companies risk dividend-oriented companies risk large investor risk capital depletion risk (Series FT, OT, PFT, T,

T-USD and V securities only) portfolio management risk derivative risk liquidity risk



interest rate risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk inflation linked bonds risk cyber security risk See page 2 for a full discussion of these risks. In addition to the risks listed above, because of certain restrictions imposed by PRC investment regulations regarding the repatriation of assets invested in China A-securities, after the Lock-Up Period, TCOF may, from time to time, be delayed in meeting redemption requests. These potential delays could adversely impact the Fund’s ability to redeem assets out of TCOF. Who should invest in this fund? Investors: who are seeking current income from global

issuers with prospects for capital gains planning to hold their investment for a

medium term who, in the case of Series FT, OT, PFT, T,

T-USD and V securities, are seeking regular monthly cash flows from investment held outside a registered plan

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy For Series A, F, I, O and PF securities, the

Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.

For Series FT, OT, PFT, T, T-USD and V securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized

capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, PFT T, T-USD and V securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.47 77.13 135.18 307.72 Series F 12.60 39.72 69.62 158.48 Series FT 12.92 40.71 71.36 162.44 Series I 19.22 60.58 106.18 241.69

Series PF 9.98 31.45 55.12 125.47 Series PFT 9.98 31.45 55.12 125.47

Series T 24.26 76.46 134.02 305.08 Series T-USD 24.05 75.80 132.86 302.44

Series V 19.22 60.58 106.18 241.69



Templeton Global Bond Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global fixed income

Start date:

Series A securities: July 15, 1988

Series F, I and O securities: June 18, 2001

Series PF securities: July 7, 2014




Yes

Portfolio advisor:


Sub-advisor:

Franklin Advisers, Inc., San Mateo, California


Investment objective high current income with capital appreciation

by investing primarily in fixed-income securities and preferred securities issued around the world.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose.

Investment strategies The Fund: may not invest more than 25% of the total

value of the invested assets (excluding cash) in a particular industry

engages, at the discretion of the portfolio advisor, in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts and the use of proxy hedges where the Fund attempts to hold a net long position of a particular currency versus a second currency that is expected to perform similarly to the

first currency (by selling forward contracts) even if the Fund does not hold securities denominated in the second currency


may enter into interest rate swap agreements to obtain exposure to selected interest rates and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as interest rate swaps, are contracts between the Fund and, typically, a brokerage firm, bank or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange

may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purpose

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), including currency options, and swaps and credit-linked notes (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and

Templeton Global Bond Fund


described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest more than 10% of the Fund’s assets in securities issued or guaranteed by various governments or permitted international agencies that are traded on mature and liquid markets and provided that the acquisition of these securities is consistent with the Fund’s investment objective. As part of our investment strategy, this option gives us more flexibility to choose the most appropriate investments for the Fund. What are the risks of investing in the fund? foreign investment risk interest rate risk credit risk concentration risk low-rated security risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk series risk short selling risk inflation linked bonds risk cyber security risk As of April 30, 2018, Franklin Templeton Global Bond Fund held 18.03% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: mainly interested in current income from

global issuers

planning to invest for the medium to long term

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Distribution policy The Fund distributes income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 17.33 54.62 95.73 217.91

Series F 11.34 35.75 62.66 142.63

Series I 15.96 50.31 88.19 200.74

Series PF 9.45 29.79 52.22 118.86 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.


Templeton Global Bond Fund (Hedged) Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global fixed income

Start date: Series A, F, I and O securities: August 19, 2013





Yes

Portfolio advisor:

Franklin Templeton Investments Corp., Toronto, Ontario is the portfolio advisor of both the Fund and the Underlying Fund

Sub-advisor:

Franklin Advisers, Inc., San Mateo, California is the sub-advisor of the Underlying Fund


Investment objective • high current income with capital appreciation

by investing substantially all of its assets in securities of Templeton Global Bond Fund (the “Underlying Fund”). The Fund invests in derivatives to attempt to eliminate the impact of currency fluctuations between the U.S. and Canadian dollars.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Templeton Global

Bond Fund, whose investment objective is high current income with capital appreciation by investing primarily in fixed-income securities and preferred securities issued around the world

invests in forward contracts to hedge as completely as possible against fluctuations caused by changes in exchange rates between the U.S. and Canadian dollars. As a result, the Fund will not generally suffer/benefit from any fluctuation in the value of the U.S. dollar against the Canadian dollar. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund.

Investment strategies of the Underlying Fund The Underlying Fund: may not invest more than 25% of the total

value of the invested assets (excluding cash) in a particular industry

engages, at the discretion of the portfolio advisor, in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts and the use of proxy hedges where the Fund attempts to hold a net long position of a particular currency versus a second currency that is expected to perform similarly to the first currency (by selling forward contracts) even if the Fund does not hold securities denominated in the second currency


may enter into interest rate swap agreements to obtain exposure to selected interest rates and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as interest rate swaps, are contracts between the Fund and,

Templeton Global Bond Fund (Hedged)


typically, a brokerage firm, bank or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange

may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purpose

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), including currency options, and swaps and credit-linked notes (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest more than 10% of the Fund’s assets in securities issued or guaranteed by various governments or permitted international agencies that are traded on mature and liquid markets and provided that the acquisition of

these securities is consistent with the Fund’s investment objective. As part of our investment strategy, this option gives us more flexibility to choose the most appropriate investments for the Fund. What are the risks of investing in the fund? Since the Fund invests in securities of the Underlying Fund, the unit price of the Fund rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the unit price of the Fund not precisely tracking the unit price of the Underlying Fund. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund. Hedging will limit the opportunity for gains that would be realized in the event of an increase in the value of the U.S. dollar relative to the Canadian dollar. During times of extreme market stress or volatility the Fund may not be able to prevent losses from exposure to U.S. currency. See page 89 for a list of the risks associated with the Fund’s investment in the Underlying Fund. As of April 30, 2018, three securityholders held 16.85%, 15.79% and 11.06%, respectively, of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: mainly interested in current income from

global issuers planning to hold their investment for the

medium to long term seeking to lower their risk of currency

fluctuations between the U.S. and Canadian dollars



This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the JP Morgan Global GBI Traded (100% Hedged into CAD) Index. On December 31, 2015, the Fund changed its benchmark to the US-dollar version of the JP Morgan Global Government Bond Index. The change was made to better reflect the way the Fund is managed with respect to currency. JP Morgan Global GBI Traded (100% Hedged into CAD) Index tracks the total return (interest is reinvested) of government bonds in developed countries globally. The index represents 13 countries. Index returns are hedged to the Canadian dollar, and shown in Canadian dollars. JP Morgan Global Government Bond Index tracks the total return (interest is reinvested) of government bonds in developed countries globally. The index represents 13 countries. Index returns are shown in US dollars. Distribution policy The Fund distributes income on the last business day of each quarter (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.


One year

Three years

Five years

Ten years


Series A 17.43 54.95 96.31 219.23 Series F 11.34 35.75 62.66 142.63 Series I 16.59 52.30 91.67 208.67

Series PF 9.45 29.79 52.22 118.86



Templeton Global Smaller Companies Fund

Fund details

Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Global equity

Start date:

Series A securities: January 3, 1989






Yes

Portfolio advisor:


Sub-advisor: Templeton Investment Counsel, LLC, Fort Lauderdale, Florida



primarily in equity securities of smaller companies around the world.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 68. Smaller companies are those with market capitalizations not exceeding the highest market capitalization in the Fund’s benchmark, the MSCI All Country World (ACWI) Small Cap Index, at the time of initial purchase. Securities will continue to qualify for additional purchases. Under normal market conditions, it is expected that 80% of the Fund’s portfolio will be invested in smaller companies.

The Fund: will primarily hold, excluding cash, equity

securities of smaller companies in developed countries, as well as in emerging markets

may invest in any country or industry in any proportion

selects investments from many different industries and countries to enhance returns and reduce risk

from time to time, depending on current market conditions, may invest in non-equity securities, including debt securities

may invest in American, Global and European Depositary receipts, which are certificates typically issued by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic corporation





The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may also invest, from time to time, in China A-securities either directly, through Stock Connect, or indirectly, through securities of Templeton China Opportunities Fund (“TCOF”), a sub-fund forming part of Franklin Templeton Selected Markets Funds.

As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest up to 7.5% of its net assets, taken at market value at the time of investment, in securities of TCOF. TCOF seeks capital appreciation by investing all or almost all of its assets in China A-securities of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. Due to restrictions imposed on foreign investors in the China A-share market, for a one year period following its initial investment, TCOF is subject to a lock-up period in which its investment principal may not be repatriated (the “Lock-Up Period”). TCOF is managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. Under the laws of Luxembourg, TCOF is considered as an undertaking for collective investment in transferable securities (“UCITS”) equivalent investment fund and manages its portfolio in accordance with the investment restrictions applicable to UCITS. The investment restrictions applicable to UCITS are substantially similar to those that govern the Fund in Canada. As part of its investment strategy, investing in TCOF provides the Fund access to Chinese stocks listed in the People’s Republic of China (“PRC”) and thereby obtain clear exposure to the local opportunities presented by the Chinese economy.

What are the risks of investing in the fund? equity risk foreign investment risk emerging markets risk smaller companies risk depositary receipt risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk series risk short selling risk liquidity risk cyber security risk See page 2 for a full discussion of these risks. In addition to the risks listed above, because of certain restrictions imposed by PRC investment regulations regarding the repatriation of assets invested in China A-securities, after the Lock-Up Period, TCOF may, from time to time, be delayed in meeting redemption requests. These potential delays could adversely impact the Fund’s ability to redeem assets out of TCOF. Who should invest in this fund? Investors: seeking above average capital gain potential

of a smaller companies fund, on its own or as a small portion of a more conservative portfolio


This Fund is for investors willing to accept medium to high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.



Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.51 86.73 152.01 346.02

Series F 15.86 49.98 87.61 199.42

Series I 18.38 57.93 101.53 231.12

Series PF 12.18 38.40 67.30 153.20



Templeton Global Smaller Companies Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global equity

Start date: Series A, F, I and O securities: June 18, 2001




Yes

Portfolio advisor:


Sub-advisor:

Templeton Investment Counsel, LLC, Fort Lauderdale, Florida is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Templeton Global Smaller Companies Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Templeton Global

Smaller Companies Fund, whose investment objective is long-term capital appreciation by investing primarily in equity securities of smaller companies around the world

invests in securities of Templeton Global Smaller Companies Fund and therefore the share price of Templeton Global Smaller Companies Corporate Class rises and falls with the unit price of the Underlying Fund.

There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton Global Smaller Companies Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 93 for a full description of the Investment strategies of Templeton Global Smaller Companies Fund. What are the risks of investing in the fund? See page 94 for a list of the risks associated with the Fund’s investment in Templeton Global Smaller Companies Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk

See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking above average capital gain potential

of a smaller companies fund, on its own or as a small portion of a more conservative portfolio to be held primarily outside a registered plan





Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.


Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.

One year

Three years

Five years

Ten years


Series A 27.93 88.05 154.33 351.30

Series F 16.07 50.64 88.77 202.06

Series I 19.01 59.91 105.01 239.04


Templeton Growth Fund, Ltd. Fund details


Type of fund:

Global equity

Start date:

Series A securities: November 29, 1954


Series A (Hedged) securities: March 28, 2013



Series A, A (Hedged), F, I, O and PF securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Templeton Global Advisors Limited, Nassau, Bahamas



primarily in equity securities of companies around the world, and fixed-income securities issued by governments or companies of any country.


Investment strategies We describe our fundamental investment philosophy on page 68.

The portfolio advisor selects investments from many different industries and countries to enhance returns and reduce risk.

The Fund: may invest in any country or industry in any

proportion. Although the Fund seeks investments across a number of countries and sectors, from time to time, based on economic conditions, the Fund may have significant positions in particular countries or sectors

primarily invests in equity securities of mid to large cap companies in developed countries, but may also invest in small cap companies and companies of any size in emerging markets

may hold equities and fixed income securities in any proportion, provided that in normal market conditions not less than 75% of its invested assets (excluding cash and money market securities) are invested in equity securities

may invest in American, Global and European Depositary receipts, which are certificates typically issued by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic corporation

in the case of Series A (Hedged), invests in forward contracts to hedge as completely as possible against currency fluctuations between the Canadian dollar and the currencies of securities held by the Fund (“Currencies of Investment”) on the portion of the Fund’s net assets attributable to Series A (Hedged) securities outstanding. As a result, Series A (Hedged) securities will not generally suffer/benefit from any fluctuation in the value of the Currencies of Investment against the Canadian dollar. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the Currencies of Investment and the Canadian dollar will not result in the impact of currency fluctuations being

Templeton Growth Fund, Ltd.


eliminated altogether may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purpose


The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may also invest, from time to time, in China A-securities either directly, through Stock Connect, or indirectly, through securities of Templeton China Opportunities Fund (“TCOF”), a sub-fund forming part of Franklin Templeton Selected Markets Funds. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest up to 7.5% of its net assets, taken at market value at the time of investment, in securities of TCOF. TCOF seeks capital appreciation by investing all or almost all of its assets in China A-securities of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. Due to restrictions imposed on foreign investors in the China A-share market, for a one year period following its initial investment, TCOF is subject to a lock-up

period in which its investment principal may not be repatriated (the “Lock-Up Period”). TCOF is managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. Under the laws of Luxembourg, TCOF is considered as an undertaking for collective investment in transferable securities (“UCITS”) equivalent investment fund and manages its portfolio in accordance with the investment restrictions applicable to UCITS. The investment restrictions applicable to UCITS are substantially similar to those that govern the Fund in Canada. As part of its investment strategy, investing in TCOF provides the Fund access to Chinese stocks listed in the People’s Republic of China (“PRC”) and thereby obtain clear exposure to the local opportunities presented by the Chinese economy.

What are the risks of investing in the fund?

equity risk foreign investment risk interest rate risk emerging markets risk depositary receipt risk smaller companies risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk series risk tax risk short selling risk liquidity risk cyber security risk See page 2 for a full discussion of these risks. In addition to the risks listed above, because of certain restrictions imposed by PRC investment regulations regarding the repatriation of assets invested in China A-securities, after the Lock-Up Period, TCOF may, from time to time, be delayed in meeting redemption requests. These potential delays could adversely impact the Fund’s ability to redeem assets out of TCOF.



In the case of Series A (Hedged), the investment by Templeton Growth Fund, Ltd. in forward contracts to hedge as completely as possible against currency fluctuations between the Canadian dollar and the Currencies of Investment on the portion of the Fund’s net assets attributable to Series A (Hedged) securities outstanding is unlikely to result in the impact of currency fluctuations being eliminated altogether. The returns of Series A (Hedged) will differ from the returns of Series A. Hedging will limit the opportunity for gains that would be realized in the event of an increase in the value of the Currencies of Investment relative to the Canadian dollar. During times of extreme market stress or volatility, the Fund may not be able to prevent losses in Series A (Hedged) from exposure to the Currencies of Investment. Who should invest in this fund?

Investors: seeking a well-diversified core global equity

fund planning to hold their investment for the

medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be

lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Distribution policy

The Fund may pay ordinary taxable dividends within the year and capital gain dividends in June of each year. Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 25.73 81.10 142.15 323.57

Series A (Hedged) 26.04 82.09 143.89 327.53

Series F 14.18 44.69 78.33 178.29

Series I 14.39 45.35 79.49 180.93

Series PF 11.24 35.42 62.08 141.31



Templeton Growth Corporate Class Fund details


Type of fund:

Global equity




Series A, F, I, O and PF securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Templeton Global Advisors Limited, Nassau, Bahamas is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Templeton Growth Fund, Ltd. (the “Underlying Fund”).


Investment strategies The Fund: invests in securities of Templeton Growth

Fund, Ltd., whose investment objective is long-term capital appreciation by investing primarily in equity securities of companies around the world, and fixed-income securities issued by governments or companies of any country

invests in securities of Templeton Growth Fund, Ltd. and therefore the share price of Templeton Growth Corporate Class rises and falls with the share price of the

Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton Growth Corporate Class not precisely tracking the share price of the Underlying Fund.

See page 98 for a full description of the Investment strategies of Templeton Growth Fund, Ltd. What are the risks of investing in the fund?

See page 99 for a list of the risks associated with the Fund’s investment in Templeton Growth Fund, Ltd. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks.

Who should invest in this fund?

Investors: seeking a well-diversified core global equity

fund to be held primarily outside a registered plan

planning to hold their investment for the medium to long term







One year

Three years

Five years

Ten years


Series A 24.05 75.80 132.86 302.44

Series F 14.07 44.36 77.75 176.97

Series I 16.07 50.64 88.77 202.06 Series PF 11.34 35.75 62.66 142.63


Templeton International Stock Fund Fund details


Type of fund: International equity

Start date:

Series A securities: January 3, 1989


Series T securities: June 17, 2002

Series PF and PFT securities: October 3, 2016


Series A, F, I, O, PF, PFT and T securities of a mutual fund trust


Yes

Portfolio advisor:




primarily in equity securities of companies outside Canada and the United States.



The Fund: selects investments from many different

industries and countries to enhance returns and reduce risk

may invest in any number of companies from one country or industry

may, although its mandate is to invest primarily outside Canada and the United States, invest in Canadian or U.S. money market or fixed-income securities

primarily holds equity securities of mid to large cap companies in developed countries, but may also invest in small cap companies and companies of any size in emerging markets

engages, from time to time, in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. These currency management strategies will be implemented by investing in currency forward contracts. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar



The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and

Templeton International Stock Fund


enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may also invest, from time to time, in China A-securities either directly, through Stock Connect, or indirectly, through securities of Templeton China Opportunities Fund (“TCOF”), a sub-fund forming part of Franklin Templeton Selected Markets Funds. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest up to 7.5% of its net assets, taken at market value at the time of investment, in securities of TCOF. TCOF seeks capital appreciation by investing all or almost all of its assets in China A-securities of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. Due to restrictions imposed on foreign investors in the China A-share market, for a one year period following its initial investment, TCOF is subject to a lock-up period in which its investment principal may not be repatriated (the “Lock-Up Period”). TCOF is managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. Under the laws of Luxembourg, TCOF is considered as an undertaking for collective investment in transferable securities (“UCITS”) equivalent investment fund and manages its portfolio in accordance with the investment restrictions applicable to UCITS. The investment restrictions applicable to UCITS are substantially similar to those that govern the Fund in Canada. As part of its investment strategy, investing in TCOF provides the Fund access to Chinese stocks listed in the People’s Republic of China (“PRC”) and thereby obtain clear exposure to the local opportunities presented by the Chinese economy. What are the risks of investing in the fund? equity risk foreign investment risk interest rate risk emerging markets risk depositary receipt risk smaller companies risk

large investor risk capital depletion risk (Series PFT and T

securities only) portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk series risk short selling risk liquidity risk cyber security risk

As of April 30, 2018, Franklin Templeton International Stock Corporate Class held 13.24% of the Fund. See page 2 for a full discussion of these risks. In addition to the risks listed above, because of certain restrictions imposed by PRC investment regulations regarding the repatriation of assets invested in China A-securities, after the Lock-Up Period, TCOF may, from time to time, be delayed in meeting redemption requests. These potential delays could adversely impact the Fund’s ability to redeem assets out of TCOF. Who should invest in this fund? Investors: • seeking a well-diversified core international

equity fund • seeking geographic diversification outside

North America • seeking to lower their exposure to the impact

of currency fluctuations relative to the Canadian dollar

• planning to hold their investment for the medium to long term

• who, in the case of Series PFT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology”



on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy For Series A, F, I, O and PF securities, the

Fund distributes any income and realized net capital gains annually in December and may pay distributions at other times during the year.

For Series PFT and T securities, the Fund may distribute any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and may distribute any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may also make distributions on Series PFT and T securities at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and

should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series PFT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years



Series PF 11.03 34.76 60.92 138.67

Series PFT 11.45 36.08 63.24 143.95

Series T 27.83 87.72 153.75 349.98



Templeton International Stock Corporate Class Fund details


Type of fund:

International equity

Start date:

Series A, F, I and O securities: June 18, 2001

Series T securities: September 27, 2007


Nature of securities

Series A, F, I, O, PF and T securities of a mutual fund corporation


Yes

Portfolio advisor:




substantially all of its assets in securities of Templeton International Stock Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Templeton

International Stock Fund, whose investment objective is long-term capital appreciation by investing primarily in equity securities of companies outside Canada and the United States

invests in securities of Templeton International Stock Fund and therefore the share price of Templeton International Stock Corporate Class rises and falls with the unit price of the Underlying Fund. There may be

performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Templeton International Stock Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 103 for a full description of the Investment strategies of Templeton International Stock Fund. What are the risks of investing in the fund?

See page 104 for a list of the risks associated with the Fund’s investment in Templeton International Stock Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk As of April 30, 2018, one securityholder held 10.15% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a well-diversified core international

equity fund to be held primarily outside a registered plan

seeking geographic diversification outside North America


who, in the case of Series T securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept medium investment risk for that part of their

Templeton International Stock Corporate Class


portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable

dividends within the year and capital gains dividends in January or February of each year.

• For Series T securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series T securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any

conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years



Series PF 10.92 34.43 60.34 137.35 Series T 27.93 88.05 154.33 351.30



Franklin Franklin Templeton Fixed Income Group This integrated global fixed income platform comprises over 100 investment professionals located in offices around the world. The group launched its first fixed income portfolio more than 40 years ago, and has been managing money for the institutional market for more than 30 years. A global fixed income leader, the group has depth and breadth of experience in all major sectors of the fixed income market, including investment-grade and high-yield corporate bonds, global sovereign and emerging market debt, mortgage and asset-backed securities, bank loans and municipal securities. The Franklin Templeton Fixed Income Group is a seamlessly integrated, global fixed income platform that manages a diversified range of standard and customized investment strategies. Composed of 148 investment professionals based in London, New York, San Mateo, and Singapore combined with local asset management teams in South Korea, India, China, Brazil, Japan, Vietnam, Malaysia, and the U.A.E., the Fixed Income Group has more than 40 years of investment experience. Based on size, global presence and depth of expertise, and leveraging our comprehensive understanding of the interaction of the global economic environment and the world’s bond markets, the Fixed Income Group is strategically positioned to identify alpha opportunities across all major market sectors.

Fixed Income Policy Committee

The Fixed Income Policy Committee establishes the long-term macroeconomic investment themes that guide the portfolio construction process across all fixed income strategies. Composed of the Fixed Income Group Chief Investment Officer and other senior fixed income investment professionals from the teams described below, the policy committee meets weekly in sessions alternating between macroeconomic and sector discussions. The committee’s views and recommendations form the basis for strategy implementation decisions.

Sector Teams

The Fixed Income Group devotes extensive resources to research, with teams of analysts focusing on the following major fixed income sectors: Corporate Credit (Investment Grade and High Yield) Bank Loans Global Sovereign and Emerging Markets Mortgages and Structured Finance U.S. Treasuries Municipals


Research analysts conduct in-depth fundamental analysis of U.S. and non-U.S. government and credit issues, recommending specific investments and industry weights to the strategy teams in the portfolio construction process.

Strategy Teams

Implementing the investment themes and recommendations developed by the Fixed Income Policy Committee, lead portfolio managers for each strategy optimize the portfolio construction process, making top-down implementation decisions regarding duration, yield curve, as well as country, currency, and sector allocations. Factored into these decisions are the in-depth sector insight offered by analysts and the risk management measures recommended by quantitative analysts.

Quantitative Research Group

Dedicated to the Fixed Income Group, the quantitative research team works closely with portfolio managers in the portfolio construction process. Strategically located on the trading desks, quantitative analysts provide the strategy teams with portfolio risk management and analytical tools, portfolio optimizations, and performance attribution. They also make alpha-generating recommendations and contribute their risk management perspective at regular portfolio review meetings.

Franklin Equity Group Franklin Equity Group has been working with investors globally for more than 65 years to pursue their long-term goals. The group offers investors a range of investment options, managed by experienced teams and based on bottom-up security selection, integrated and disciplined risk management and an unwavering commitment to solid long-term returns to our securityholders. While each of the investment teams has a unique investment philosophy and process, they share core tenets which underpin their collective research efforts: We Are Research Focused Extensive research is at the core of all Franklin equity portfolios. Employing proprietary research models, Franklin portfolio managers and analysts conduct rigorous quantitative and qualitative analysis in order to examine fundamentals and estimate growth potential. Field visits are an integral and regular part of our process before, and after, a stock is purchased. Industry and consumer trends that impact the long-term prospects of companies are also evaluated. In addition, the portfolio teams leverage in-house credit research, which provides additional insight into a company’s financial health. Our Experience Runs Deep Founded in 1947, Franklin Equity Group has a team of 70 investment professionals spread around the globe with an average tenure of over 11 years. Over 30 dedicated industry specialists, organized into sector teams, provide a robust research platform leveraged by the Franklin Equity Group portfolio teams.


We Evaluate and Manage Risk We strive to provide investors with strong risk-adjusted returns over the long term by employing an integrated and disciplined risk management process to help monitor, evaluate and manage portfolio risk across the teams. We Offer Comprehensive Equity Solutions Franklin Equity Group’s investment expertise is offered to investors through products that span market cap, sector and risk profile to meet a multitude of investments needs. Franklin Core/Hybrid Strategies Our Franklin Core/Hybrid strategies, which include Franklin U.S. Monthly Income Fund and Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018), implement an investment philosophy based on identifying investments which offer a compelling trade-off between risk and reward potential. Using our bottom-up research, we seek to exploit fundamental views that differ from the market consensus regarding growth potential or valuation. Some of these opportunities may be undervalued or out-of-favor securities that offer high current income and/or strong long-term appreciation potential. Within our hybrid funds, we consider a wide range of investments including equities, fixed income, and convertible securities to meet our investment objectives. Franklin Growth Strategies Our Franklin Growth strategies, which include Franklin U.S. Opportunities Fund (formerly Franklin Flex Cap Growth Fund), are built around solid growth companies with sustainable competitive advantages demonstrating strong revenue and projections and/or leading edge products or processes. Additional growth indicators include proprietary technology or intellectual property, a unique marketing niche, distinct positioning as industry leaders and visionary management. Investments may be in companies across the market cap spectrum and diversified across sectors. Franklin Value Strategies

Our Franklin Value strategies utilize an investment framework which emphasizes high quality companies with attractive valuations, low debt levels, solid management teams, and, in the case of Franklin U.S. Rising Dividends Fund, excellent track records of consistent dividend growth and the potential for future dividend growth. We employ investing patience, adhering to a buy-and-hold strategy that generally results in low portfolio turnover.


Franklin Global Growth Fund Fund details

Type of fund:

Global equity

Start date:

Series O securities: March 10, 2008

Series A, F and T securities: June 24, 2011



Series A, F, O, PF and T securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisor: Franklin Templeton Institutional, LLC, New York, New York



primarily in equity securities of growth companies with any market size capitalization, which are located throughout the world.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 108. The sub-advisor employs a disciplined, bottom-up investment approach to identify attractive investment opportunities that have higher expected revenue and earnings growth than their peers. The sub-advisor uses a growth investment style and in-depth, fundamental research to identify high-quality companies, across all industry groups, with sustainable business models that offer the most attractive combination of growth and quality.

In addition to selecting securities from Canada, the U.S. and other industrialized countries that comprise the Morgan Stanley Capital International World Index, the Fund may invest up to 20% of its total assets in common stocks of issuers located in emerging market nations.

The Fund: • may also, when suitable opportunities are

available, invest in initial public offerings of securities

• may invest a small portion of its assets in private companies or illiquid securities

• may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

• may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, calls, puts and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information.

What are the risks of investing in the fund? equity risk foreign investment risk regional focus risk emerging markets risk

Franklin Global Growth Fund


smaller companies risk REIT risk capital depletion risk (Series T securities

only) liquidity risk portfolio management risk regulatory risk derivative risk repurchase/reverse repurchase agreements

risk large investor risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin World Growth Corporate Class held 24.97% of the Fund, one securityholder held 17.51% of the Fund and Franklin Quotential Global Growth Portfolio held 13.07% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a growth fund investing in high-

growth potential companies around the world planning to hold their investment for the

medium to long term who, in the case of Series T securities, are

seeking regular monthly cash flows from investments held outside a registered plan


Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI World Index (Gross of Dividends). On December 31, 2016, the Fund changed its benchmark to the MSCI World Index (Net of Dividends) to better reflect

the impact of dividends on investors who reside in jurisdictions outside the base currencies of many global stocks. MSCI World Index (Net of Dividends) measures the total return of equity securities available in developed markets globally. The index comprises approximately 1,335 companies, which represent 23 countries. The index assumes investors receive dividends net of withholding. Index returns are shown in Canadian dollars. MSCI World Index (Gross of Dividends) measures the total return of equity securities available in developed markets globally. The index comprises approximately 1,335 companies, which represent 23 countries. The index assumes investors receive dividends free of withholding. Index returns are shown in Canadian dollars. Distribution policy For Series A, F, O and PF securities, the


For Series T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment

Franklin Global Growth Fund


performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities.


One year

Three years

Five years

Ten years


Series A 26.99 85.07 149.11 339.42 Series F 15.23 48.00 84.13 191.50

Series PF 10.82 34.09 59.76 136.03

Series T 26.04 82.09 143.89 327.53



Franklin Global Growth Corporate Class Fund details

Type of fund:

Global equity




Series A, F, O and T securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Franklin Templeton Institutional, LLC, New York, New York is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin Global Growth Fund (the “Underlying Fund”).


The Fund: • invests in securities of Franklin Global

Growth Fund, whose investment objective is long-term capital appreciation by investing primarily in equity securities of growth companies with any market size capitalization, which are located throughout the world

• invests in securities of Franklin Global Growth Fund and therefore the share price of Franklin Global Growth Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with

respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Global Growth Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 111 for a full description of the Investment strategies of Franklin Global Growth Fund. What are the risks of investing in the fund? See page 111 for a list of the risks associated with the Fund’s investment in Franklin Global Growth Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk

As of April 30, 2018, two securityholders held 45.65% and 11.90%, respectively, of the Fund.


Who should invest in this fund? Investors: seeking a growth fund investing in high-

growth potential companies around the world to be held primarily outside a registered plan




Franklin Global Growth Corporate Class


Distribution Policy • The Fund may pay ordinary taxable

dividends within the year and capital gains dividends in January or February of each year.


Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution.

Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.30 86.06 150.85 343.38

Series F 15.75 49.65 87.03 198.10

Series T 27.62 87.06 152.59 347.34 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin Global Small-Mid Cap Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager

Type of fund: Global small-mid cap equity

Start date: Series A, F, I, O and PF securities: July 7, 2014




Yes

Portfolio advisor:


Sub-advisor: Franklin Templeton Institutional, LLC, New York, New York



primarily in equity and/or equity-related securities (including warrants and convertible securities) of small and mid-cap companies around the world.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies In choosing individual equity investments, the Fund’s sub-advisor utilizes a fundamental “bottom-up” approach involving in-depth proprietary analysis of individual equity securities. In narrowing down the universe of eligible investments, the sub-advisor employs a quantitative and qualitative approach to identify smaller global companies that it believes have the potential to generate attractive returns with lower downside risk.

The Fund: primarily invests in equity securities of issuers

incorporated or having their principal business activities in any country in the world and which have market capitalizations at the time of purchase (i) above USD $100 million and below USD $8 billion or the equivalent in local currencies or (ii) not exceeding the highest market capitalization in the Morgan Stanley Capital International (MSCI) World Small Cap Index

may invest in equity related securities including warrants, convertible securities and REITs

invests in small and mid-cap companies that have, in the sub-advisor's opinion, a long-term competitive advantage, strong balance sheets, experienced management teams and are trading at attractive valuations

seeks to invest in companies that tend to have proprietary products and services, which can sustain a longer term competitive advantage, and tend to have a higher probability of maintaining a strong balance sheet and/or generating cash flow

may invest in any country or industry in any proportion

may have exposure to various industries, countries and regions according to the economic conditions and prospects for securities in these markets but may from time to time, have significant investments in a particular industry, sector or country

may hold all or a substantial portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

Franklin Global Small-Mid Cap Fund



The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk smaller companies risk foreign investment risk emerging markets risk regional focus risk portfolio management risk REIT risk regulatory risk large investor risk liquidity risk series risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk short selling risk cyber security risk As of April 30, 2018, two securityholders held 44.91% and 40.77%, respectively, of the Fund. See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking above average capital gain potential

of a small and mid-cap companies fund, on its own or as a small portion of a more conservative portfolio



Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI World Small Cap Index (Net of Dividends). On December 31, 2016, the Fund changed its benchmark from the MSCI World Small Cap Index (Gross of Dividends) to better reflect the impact of dividends on investors who reside in jurisdictions outside the base countries of many global stocks. MSCI World Small Cap Index (Net of Dividends) is a free float-adjusted, market capitalization-weighted index that is designed to measure the performance of small-capitalization equity securities of global developed markets. The index assumes investors receive dividends net of withholding. MSCI World Small Cap Index (Gross of Dividends) is a free float-adjusted, market capitalization-weighted index that is designed to measure the performance of small-capitalization equity securities of global developed markets. The index assumes investors receive dividends free of withholding.



Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.20 85.73 150.27 342.06

Series F 15.65 49.32 86.45 196.78

Series I 21.42 67.53 118.36 269.42

Series PF 12.71 40.05 70.20 159.80



Franklin High Income Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global high yield fixed income

Start date:

Series A, F and O securities: February 17, 2003

Series I securities: July 3, 2009





Yes

Portfolio advisor:


Sub-advisor:



Investment objective high current income and some long-term

capital appreciation by investing primarily in high-yield, lower-rated debt securities issued in the U.S. and throughout the world.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 108. Under normal market conditions, the Fund invests mainly in high yield, lower-rated debt securities and preferred stocks issued by companies and governments in any country, developed or developing. The Fund: may invest in bonds, notes, debentures,

convertible securities and preferred stocks

issued by companies and governments from around the world

typically engages in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts and cross hedging, where the Fund attempts to hold a net long position of a particular currency versus a second currency (by selling forward contracts) even if the Fund does not hold securities denominated in the second currency. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar.

may invest in loans and loan participations, sometimes called “corporate or syndicated loans”, made to corporate and other business entities by banks and other financial institutions. Such loans may include term loans, and to the extent permitted by securities regulations, revolving credit facilities, synthetic term loans, delayed draw term loans and receivables purchase facilities. In a loan participation, the Fund buys from the lender a portion of a larger loan the lender has made to the borrower. Corporate or syndicated loans typically pay interest rates that are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce the risk position of the Fund. Swap

Franklin High Income Fund


agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset

may invest in debt securities that have floating or variable payment schedules including floating rate notes issued by governments and corporate issuers, secured floating rate bank loans, Treasury Inflation Indexed bonds (TIPs) and adjustable-rate asset-backed securities

since many of the Fund’s holdings are denominated in U.S. dollars, under normal market conditions, the Fund utilizes forward foreign currency contracts to hedge against fluctuations caused by changes in the exchange rates between the U.S. dollar and the Canadian dollar. As a result, the Fund will not generally suffer/benefit from fluctuations in the value of the U.S. dollar against the Canadian dollar. Investments in forward contracts to hedge between the U.S. dollar and the Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether

may invest in senior and subordinated debt securities and zero coupon bonds

may invest all of its assets in debt securities that are rated below investment grade sometimes called “junk bonds” or “high yield” securities, some of which may be debt securities that are in default

may, from time to time, hold: (i) equity securities issued in exchange for debt

instruments by companies recently emerging from or facing financial restructuring, that resulted from the conversion of convertible securities or that were received as part of a bond offering; and (ii) warrants/rights issued by companies recently emerging from or facing financial restructuring

may hold all or a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps, including interest rate and credit default swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.


What are the risks of investing in the fund? interest rate risk credit risk low-rated security risk liquidity risk foreign investment risk emerging markets risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk



securities lending risk cyber security risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: • who are seeking a high level of current

income and some capital gains • seeking to lower their exposure to the impact



This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 17.01 53.62 93.99 213.95

Series F 11.13 35.09 61.50 139.99

Series I 15.54 48.99 85.87 195.46



Franklin Strategic Income Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Global fixed income

Start date:







Yes

Portfolio advisor:


Sub-advisor: Franklin Advisers, Inc., San Mateo, California



capital appreciation by investing primarily in fixed income securities issued in the U.S. and throughout the world.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose.


Under normal market conditions, the Fund invests at least 65% of its assets in U.S. and global debt securities, including emerging markets. Debt securities include all varieties of fixed and floating rate income securities, including bonds, mortgage securities, corporate loans and loan participations, and other asset-backed securities and convertible securities.

The Fund: may invest in high yield and investment grade

corporate bonds and preferred stocks of issuers located in the U.S. and foreign countries, including emerging markets

countries; developed country government and agency bonds; emerging market government and agency bonds; mortgage securities and other asset-backed securities; convertible securities, including bonds and preferred stocks

typically engages in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts and cross hedging, where the Fund attempts to hold a net long position of a particular currency versus a second currency (by selling forward contracts) even if the Fund does not hold securities denominated in the second currency. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar

may invest in loans and loan participations, sometimes called “corporate or syndicated loans”, made to corporate and other business entities by banks and other financial institutions. Such loans may include term loans, and to the extent permitted by securities regulations, revolving credit facilities, synthetic term loans, delayed draw term loans and receivables purchase facilities. In a loan participation, the Fund buys from the lender a portion of a larger loan the lender has made to the borrower. Corporate or syndicated loans typically pay interest rates that are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce

Franklin Strategic Income Fund


the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset


may invest all of its assets in debt securities that are rated below investment grade sometimes called “junk bonds” or “high yield” securities, some of which may be debt securities that are in default

may have significant investments in mortgage securities issued by pools sponsored by agencies such as the Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and Government National Mortgage Association (GNMA)

since many of the Fund’s holdings are denominated in U.S. dollars, under normal market conditions, the Fund utilizes forward foreign currency contracts to hedge against fluctuations caused by changes in the exchange rates between the U.S. dollar and the Canadian dollar. As a result, the Fund will not generally suffer/benefit from fluctuations in the value of the U.S. dollar against the

Canadian dollar. Investments in forward contracts to hedge between the U.S. dollar and the Canadian dollar will not result in the

impact of currency fluctuations being eliminated altogether.

may, from time to time, hold: (i) equity securities issued in exchange for debt instruments by companies recently emerging from or facing financial restructuring, that resulted from the conversion of convertible securities or that were received as part of a bond offering; and (ii) warrants/rights issued by companies recently emerging from or facing financial restructuring

may hold all or a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), collateralized debts obligations and swaps, including interest rate, currency, fixed income total return and credit default swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. As an exception to standard investment restrictions for mutual funds, the Fund has obtained approval of the Canadian securities regulators to invest more than 10% of the Fund’s assets in securities issued or guaranteed by various governments or permitted international agencies that are traded on mature and liquid markets and provided that the acquisition of these securities is consistent with the Fund’s investment objective. As part of our investment strategy, this option gives us more flexibility to



choose the most appropriate investments for the Fund. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate: the greater the chance that you may receive

a distribution from the Fund that must be included in determining a taxable investor’s income for tax purposes

the higher the trading costs of the Fund. These costs are an expense of the Fund and are paid out of Fund assets, which may reduce your returns.

What are the risks of investing in the fund? interest rate risk credit risk low-rated securities risk foreign investment risk emerging markets risk liquidity risk portfolio management risk large investor risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk inflation linked bonds risk cyber security risk As of April 30, 2018, Franklin Quotential Diversified Income Portfolio held 26.06% of the Fund, Franklin Quotential Diversified Income Portfolio Corporate Class held 23.88% of the Fund, Franklin Quotential Balanced Growth Portfolio held 18.05% of the Fund and Franklin Quotential Balanced Income Portfolio held 12.61% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a high level of current

income and some capital gains seeking to lower their exposure to the impact



This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 17.12 53.96 94.57 215.27

Series F 11.34 35.75 62.66 142.63

Series I 15.12 47.67 83.55 190.18

Series PF 9.56 30.12 52.80 120.18



Franklin U.S. Core Equity Fund (to be renamed Franklin Select U.S. Equity Fund effective June 1, 2018) Fund details

Type of fund:

U.S. equity

Start date: Series A, F and O securities: August 1, 2007





Yes

Portfolio advisor:


Sub-advisor:




primarily in equities of U.S. companies.


Investment strategies We describe our fundamental investment philosophy on page 108. The Fund: will, under normal market conditions, invest in

equity securities of large capitalization U.S. companies

seeks to maintain a portfolio consisting of securities of approximately 20-50 companies

may invest in any industry or sector will, place an emphasis on using fundamental

analysis in finding companies that offer the best trade-off between growth opportunity, business and financial risk, and valuation, while focusing on quality and downside risk. Preference will be given to companies with experienced and talented management teams, favorable competitive positioning, and financial strength. Assessment of a

company’s quality will include potential impacts of any material environmental, social and governance (“ESG”) factors on the long-term risk and return profile of a company


may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), equity linked notes and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk regulatory risk foreign investment risk concentration risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements




As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 29.90% of the Fund. See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking a core (or focused) fund

concentrated in U.S. stocks planning to hold their investment for the

medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P 500 TR Index. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars.

Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.


One year

Three years

Five years

Ten years


Series A 26.57 83.75 146.79 334.13

Series F 14.70 46.34 81.23 184.90

Series PF 10.30 32.47 56.91 129.55



Franklin U.S. Monthly Income Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:

Series A, F, FT, I, O, OT, T and T-USD securities: June 28, 2013



Series A, F, FT, I, O, OT, PF, PFT, T and T-USD securities of a mutual fund trust


Yes

Portfolio advisor:



Investment objective • maximize income while maintaining

prospects for long-term capital appreciation by investing primarily in a diversified portfolio of debt and equity securities issued in the U.S.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 108. Under normal market conditions, the Fund invests in a diversified portfolio of debt and equity securities. The Fund may shift its investments from one asset class to another based on the portfolio advisor’s analysis of the best opportunities for the Fund’s portfolio in a given market.

The equity securities in which the Fund invests consist primarily of common and preferred stocks, as well as convertible securities, while its debt security investments include all varieties of fixed, floating and variable rate instruments including secured and unsecured bonds, senior floating rate and term loans, mortgage-backed securities and other asset-backed securities, debentures, zero coupon bonds, notes, and short-term debt instruments. In analyzing both debt and equity securities, the portfolio advisor considers a variety of factors, including:

a company’s relative value based on such factors as dividend yield, anticipated cash flow, interest or dividend coverage, asset coverage, and earnings prospects

the experience and strength of the company’s management

the company’s changing financial condition and market recognition of the change

the company’s sensitivity to changes in interest rates and business conditions and

the company’s debt maturity schedules and borrowing requirements.

The Fund:

seeks income by investing in corporate, foreign and U.S. treasury bonds, as well as stocks with dividend yields the portfolio advisor believes are attractive

seeks capital appreciation by investing in common stocks of companies from a variety of industries but may, from time to time, depending on economic conditions, have significant investments in particular sectors

primarily invests in the U.S. but may also invest up to 25% of its assets in non-U.S. securities either directly or through

Franklin U.S. Monthly Income Fund


depositary receipts, which are certificates typically issued by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic corporation

may invest all of its assets in debt securities that are rated below investment grade sometimes called “junk bonds” or “high yield” securities, some of which may be debt securities that are in default may invest in loans and loan participations, sometimes called “corporate or syndicated loans”, made to corporate and other business entities by banks and other financial institutions. Such loans may include term loans, and to the extent permitted by securities regulations, revolving credit facilities, synthetic term loans, delayed draw term loans and receivables purchase facilities. In a loan participation, the Fund buys from the lender a portion of a larger loan the lender has made to the borrower. Corporate or syndicated loans typically pay interest rates that are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

may invest in senior and subordinated debt securities and zero coupon bonds


may, from time to time, seek to hedge against market risk using a variety of derivative instruments. The portfolio advisor considers various factors, such as availability and costs, in deciding whether, when and to what extent to enter into derivative transactions

may engage, from time to time, in currency management strategies to hedge the risk of changes in currency exchange rates

may, to the extent permitted under securities legislation, invest in equity linked notes (“Notes”) for the purpose of gaining exposure to a specific security,

basket of securities or an equity index provided that an investment in the securities to which these relate would be eligible for direct investment and consistent with the Fund’s investment objective. A Note’s return on investment is typically tied to the performance of an equity security or securities, whereby the value of the Note at maturity and/or its coupon is determined by movements in the value of the underlying equity security. Generally, the market value of a Note should follow that of the underlying equity security but there is no guarantee that it will fluctuate in the same manner. Notes may or may not be listed on a recognized stock exchange or dealt in a regulated market. These Notes will largely carry the same risks as “traditional” equity securities but will be subject to the credit risk of the issuer of the Notes and not that of the issuer of the underlying equity

may invest in illiquid securities, as permitted by Canadian securities regulation


may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, calls, puts and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.




enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund?

interest rate risk credit risk low-rated security risk equity risk reinvestment risk foreign investment risk dividend-oriented companies risk concentration risk regulatory risk derivative risk portfolio management risk liquidity risk large investor risk capital depletion risk (Series FT, OT, PFT, T

and T-USD securities only) repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Income Corporate Class held 35.79% of the Fund and Franklin Income Hedged Corporate Class held 14.48% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: seeking exposure to income generating

U.S. securities with prospects for capital appreciation

seeking to access a portfolio of both equity and fixed income securities via a single fund

planning to hold their investment for a medium term to long term

who, in the case of Series FT, OT, PFT, T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be

lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom 50% S&P 500 + 50% Bloomberg Barclays US Aggregate Bond Index. Custom 50% S&P 500 + 50% Bloomberg Barclays US Aggregate Bond Index is a blended index made up of the S&P 500 TR Index (50%) and Bloomberg Barclays US Aggregate Bond Index (50%). Index returns are shown in Canadian dollars. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. Bloomberg Barclays US Aggregate Bond Index tracks the total return (interest is reinvested) of US investment-grade fixed rate bonds, including government and corporate securities, mortgage pass-through securities and asset-backed securities. Index returns are shown in Canadian dollars.

Distribution policy For Series A, F, I, O and PF securities, the

Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year.

For Series FT, OT, PFT, T and T-USD securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.



Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, PFT, T and T-USD securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.05 75.80 132.86 302.44 Series F 11.97 37.74 66.14 150.56

Series FT 11.55 36.41 63.82 145.28 Series I 18.59 58.59 102.69 233.76

Series PF 9.66 30.45 53.38 121.50

Series PFT 9.45 29.79 52.22 118.86

Series T 23.84 75.14 131.70 299.80

Series T-USD 23.31 73.48 128.80 293.19



Franklin U.S. Monthly Income Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date: Series A, F, FT, I, O, OT, T and T-USD securities: June 28, 2013

Series PF securities: February 26, 2015


Series A, F, FT, I, O, OT, PF, T and T-USD securities of a mutual fund corporation


Yes

Portfolio advisor:

Franklin Templeton Investments Corp., Toronto, Ontario is the portfolio advisor of the Fund

Franklin Advisers, Inc., San Mateo, California is the portfolio advisor of the Underlying Fund


Investment objective • long-term capital appreciation by investing

substantially all of its assets in securities of Franklin U.S. Monthly Income Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin U.S. Monthly

Income Fund, whose investment objective is to maximize income while maintaining prospects for long-term capital appreciation by investing primarily in a diversified portfolio of debt and equity securities issued in the U.S

invests in securities of Franklin U.S. Monthly Income Fund and therefore the share price of Franklin U.S. Monthly Income Corporate Class rises and falls with the unit price of the

Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin U.S. Monthly Income Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 127 for a full description of the Investment Strategies of Franklin U.S. Monthly Income Fund. What are the risks of investing in the fund? See page 129 for a list of the risks associated with the Fund’s investment in Franklin U.S. Monthly Income Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors:

seeking exposure to income generating U.S. securities with prospects for capital appreciation in a fund to be held primarily outside of a registered plan



who, in the case of Series FT, OT, T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan

Franklin U.S. Monthly Income Corporate Class



Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom 50% S&P 500 + 50% Bloomberg Barclays US Aggregate Bond Index. Custom 50% S&P 500 + 50% Bloomberg Barclays US Aggregate Bond Index is a blended index made up of the S&P 500 TR Index (50%) and Bloomberg Barclays US Aggregate Bond Index (50%). Index returns are shown in Canadian dollars. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. Bloomberg Barclays US Aggregate Bond Index tracks the total return (interest is reinvested) of US investment-grade fixed rate bonds, including government and corporate securities, mortgage pass-through securities and asset-backed securities. Index returns are shown in Canadian dollars. Distribution policy • The Fund may pay ordinary taxable dividends

within the year and capital gains dividends in January or February of each year.

• For Series FT, OT, T and T-USD securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT, T and T-USD securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in

additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, T and T-USD securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.26 76.46 134.02 305.08

Series F 12.39 39.06 68.46 155.84

Series FT 12.60 39.72 69.62 158.48

Series I 18.48 58.26 102.11 232.44

Series PF 10.08 31.78 55.70 126.79

Series T 24.05 75.80 132.86 302.44

Series T-USD 24.15 76.13 133.44 303.76 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin U.S. Monthly Income Hedged Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Global neutral balanced

Start date: Series A, F, FT, I, O, OT and T securities: June 28, 2013



Series A, F, FT, I, O, OT, PF and T securities of a mutual fund corporation


Yes

Portfolio advisor:


Franklin Advisers, Inc., San Mateo, California is the portfolio advisor of the Underlying Fund



substantially all of its assets in securities of Franklin U.S. Monthly Income Fund (the “Underlying Fund”). The Fund invests in derivatives to attempt to eliminate the impact of currency fluctuations between the U.S. and Canadian dollars.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin U.S. Monthly

Income Fund, whose investment objective is to maximize income while maintaining prospects for long-term capital appreciation by investing primarily in a diversified portfolio of debt and equity securities issued in the U.S.

invests in forward contracts to hedge as

completely as possible against fluctuations caused by changes in exchange rates between the U.S. and Canadian dollars. As a result, the Fund will not generally suffer/benefit from any fluctuation in the value of the U.S. dollar against the Canadian dollar. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund.

See page 127 for a full description of the investment strategies of Franklin U.S. Monthly Income Fund. What are the risks of investing in the fund? Since the Fund invests in securities of the Underlying Fund, the share price of the Fund rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of the Fund not precisely tracking the unit price of the Underlying Fund. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund. Hedging will limit the opportunity for gains that would be realized in the event of an increase in the value of the U.S. dollar relative to the Canadian dollar. During times of extreme market stress or volatility the Fund may not be able to prevent losses from exposure to U.S. currency.



See page 129 for a list of the risks associated with the Fund’s investment in Franklin U.S. Monthly Income Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking exposure to income generating U.S.

securities with prospects for capital appreciation



seeking to lower their risk of currency fluctuations between the U.S. and Canadian dollars

who, in the case of Series FT, OT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan


Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom 50% S&P 500 (CAD Hedged) + 50% Bloomberg Barclays US Aggregate Bond (Hedged) Index. Custom 50% S&P 500 + 50% Bloomberg Barclays US Aggregate Bond Index is a blended index made up of the S&P 500 TR (CAD Hedged) Index (50%) and Bloomberg Barclays US Aggregate Bond (Hedged) Index (50%). Index returns are shown in Canadian dollars.

S&P 500 TR (CAD Hedged) Index measures the total return of the broader US economy through changes in the aggregate market value of 500 stocks representing all major industries and assumes reinvestment of dividends. Index returns are hedged to the Canadian dollar, and are shown in Canadian-dollar terms. Bloomberg Barclays US Aggregate Bond (Hedged) Index tracks the total return (interest is reinvested) of US investment-grade fixed rate bonds, including government and corporate securities, mortgage pass-through securities and asset-backed securities. Index returns are hedged to the Canadian dollar, and are shown in Canadian-dollar terms. As of January 2017, investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch due to certain changes in the income tax laws made by the federal government in 2016. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series FT, OT and T securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT and T securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.



Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.57 77.46 135.77 309.04 Series F 12.60 39.72 69.62 158.48


Series PF 10.29 32.44 56.86 129.43 Series T 24.36 76.80 134.60 306.40



Franklin U.S. Opportunities Fund Fund details

Type of fund:

U.S. equity

Start date:

Series A securities: April 14, 1997

Series F and O securities: November 24, 2000





Yes

Portfolio advisor:


Sub-advisor:



Investment objective capital appreciation by investing primarily in

U.S. equities demonstrating accelerating growth, increasing profitability, or above-average growth or growth potential compared to the overall economy.



The sub-advisor will focus on high quality companies, with strong management teams and financial strength, which have potential for sustainable growth over a full market cycle. While the Fund will likely hold securities from many different industries, it may hold substantial positions in the following: • technology, including electronic technology

and technology services companies • health care and biotechnology • industrials • consumer discretionary.

The Fund: • primarily invests in U.S. equities but may also

invest up to 25% of its assets in non-U.S. securities

• may invest in initial public offerings and private or illiquid securities such as late stage venture capital financings, as permitted under securities regulations

• may invest in companies of any size, including smaller and mid-size companies for capital growth opportunities







What are the risks of investing in the fund? equity risk foreign investment risk smaller companies risk liquidity risk regulatory risk large investor risk portfolio management risk REIT risk depositary receipt risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 35.69% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a portfolio of U.S. companies with

sustainable, high-growth potential seeking a U.S. equity fund that combines

investment in small, medium and large companies


This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.46 83.42 146.21 332.81

Series F 14.60 46.01 80.65 183.58

Series PF 10.30 32.47 56.91 129.55



Franklin U.S. Opportunities Corporate Class Fund details

Type of fund:

U.S. equity





Yes

Portfolio advisor:


Sub-advisor:

Franklin Advisers, Inc., San Mateo, California is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin U.S. Opportunities Fund (the “Underlying Fund”).


Investment strategies The Fund: • invests in securities of Franklin U.S.

Opportunities Fund, whose investment objective is capital appreciation by investing primarily in U.S. equities demonstrating accelerating growth, increasing profitability, or above-average growth or growth potential compared to the overall economy

• invests in securities of Franklin U.S. Opportunities Fund and therefore the share price of Franklin U.S. Opportunities Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of

Franklin U.S. Opportunities Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 136 for a full description of the Investment strategies of Franklin U.S. Opportunities Fund. What are the risks of investing in the fund? See page 137 for a list of the risks associated with the Fund’s investment in Franklin U.S. Opportunities Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk

See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a portfolio of U.S. companies with

sustainable, high-growth potential to be held primarily outside a registered plan

seeking a U.S. equity fund that combines investment in small, medium and large companies, with focus on companies within the $5 billion to $20 billion capitalization range


This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.

Franklin U.S. Opportunities Corporate Class



One year

Three years

Five years

Ten years


Series A 26.78 84.41 147.95 336.77

Series F 14.91 47.00 82.39 187.54 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin U.S. Rising Dividends Fund Fund details

Type of fund:

U.S. equity

Start date:

Series F securities: December 1, 1984




Series PF (Hedged) securities: June 9, 2017


Series A, F, O, PF, PF (Hedged), PFT and T securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisor: Franklin Advisers, Inc., San Mateo, California



primarily in a diversified portfolio of American equities, with a focus on investing in companies that have paid consistently rising dividends

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 108. Under normal market conditions, the Fund invests at least 80% of its net assets in companies that have paid consistently rising dividends. Companies that have paid consistently rising dividends include those companies that pay dividends on their common stocks and have maintained or increased their most recent dividend payment at some point during the last four consecutive years.

The Fund invests at least 65% of its net assets in securities of American companies that have: consistently increased dividends in at least 8

of the last 10 years, and have not decreased dividends during that time

increased dividends substantially (at least 100%) over the past 10 years

reinvested earnings, and paid out less than 65% of current earnings in dividends (except for utility companies)

long-term debt that is no more than 50% of total capitalization (except for utility companies) or senior debt that has been rated investment grade by at least one of the major bond-rating agencies

attractive prices, either: (1) in the lower half of the stock’s price/earnings ratio range for the past 10 years; or (2) less than the price/ earnings ratio of the Standard & Poor’s® 500 Stock Index (this criterion applies only at the time of purchase)

The Fund: may have significant positions in particular

sectors may invest in equity securities of any size

company, including companies falling within the small-cap (generally companies with a market capitalization of less than US$5 billion) and mid-cap (generally companies with a market capitalization range of US$5 billion to US$23 billion) ranges

may hold all or a substantial portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

in the case of Series PF (Hedged), invests in forward contracts to hedge as completely as possible against currency fluctuations between the Canadian dollar and the U.S. dollar on the portion of the Fund’s net assets attributable to Series PF (Hedged) securities outstanding (the “Currency Hedging Strategy”). As a result, Series PF (Hedged) securities will not generally suffer/benefit from any fluctuation in the value of the U.S. dollar against the Canadian dollar. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. dollar and the Canadian

Franklin U.S. Rising Dividends Fund


dollar will not result in the impact of currency fluctuations being eliminated altogether. The Currency Hedging Strategy in respect of Series PF (Hedged) may only be changed with the approval of a majority of securityholders of Series PF (Hedged) at a meeting called for that purpose.



equity risk foreign investment risk dividend-oriented companies risk smaller companies risk regulatory risk large investor risk capital depletion risk (Series PFT and T

securities only) portfolio management risk emerging markets risk liquidity risk concentration risk derivative risk repurchase/reverse repurchase agreements


As of April 30, 2018, Franklin Templeton U.S. Rising Dividends Corporate Class held 11.95% of the Fund and Franklin Quotential Balanced Growth Portfolio held 11.12% of the Fund. See page 2 for a full discussion of these risks. In the case of Series PF (Hedged), the investment by Franklin U.S. Rising Dividends Fund in forward contracts to hedge as completely as possible against currency fluctuations between the Canada dollar and the U.S. dollar on the portion of the Fund’s net assets attributable to Series PF (Hedged) securities outstanding is unlikely to result in the impact of currency fluctuations being eliminated altogether. The returns of Series PF (Hedged) will differ from the returns of Series PF. Hedging will limit the opportunity for gains that would be realized in the event of an increase in the value of the U.S. dollar relative to the Canadian dollar. During times of extreme market stress or volatility, the Fund may not be able to prevent losses in Series PF (Hedged) from exposure to the U.S. dollar. Who should invest in this fund?

Investors: seeking a core U.S. equity fund planning to hold their investment for the

medium to long term who, in the case of Series PFT and T

securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy For Series A, F, O, PF and F (Hedged)

securities, the Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.

For Series PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be



distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.

Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the

return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series PFT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.36 83.08 145.63 331.49

Series F 14.70 46.34 81.23 184.90

Series PF 10.40 32.77 57.44 130.75

Series PFH 10.71 33.76 59.18 134.71

Series PFT 10.71 33.76 59.18 134.71

Series T 26.57 83.75 146.79 334.13



Franklin U.S. Rising Dividends Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

U.S. equity

Start date:

Series A, F and O securities: January 16, 2006






Yes

Portfolio advisor:


Sub-advisor: Franklin Advisers, Inc., San Mateo, California is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin U.S. Rising Dividends Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin U.S. Rising

Dividends Fund, whose investment objective is long-term capital appreciation by investing primarily in a diversified portfolio of American equities, with a focus on investing in companies that have paid consistently rising dividends

invests in securities of Franklin U.S. Rising Dividends Fund and therefore the share price of Franklin U.S. Rising Dividends Corporate Class rises and falls with the unit

price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin U.S. Rising Dividends Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 140 for a full description of the investment strategies of Franklin U.S. Rising Dividends Fund. What are the risks of investing in the fund? See page 141 for a list of the risks associated with the Fund’s investment in Franklin U.S. Rising Dividends Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a core U.S. equity fund to be

held primarily outside of a registered plan planning to hold their investment for the




Franklin U.S. Rising Dividends Corporate Class


Distribution policy • The Fund may pay ordinary taxable dividends


• For Series T securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series T securities, any annual

payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not

immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.78 84.41 147.95 336.77

Series F 14.91 47.00 82.39 187.54

Series I 19.32 60.91 106.76 243.01

Series PF 10.61 33.43 58.60 133.39



Franklin U.S. Rising Dividends Hedged Corporate Class Fund details

Type of fund: U.S. equity

Start date: Series A, F, O and T securities: October 29, 2012


Series A, F, O and T securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor: Franklin Advisers, Inc., San Mateo, California is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin U.S. Rising Dividends Fund (the “Underlying Fund”). The Fund invests in derivatives to attempt to eliminate the impact of currency fluctuations between the U.S. and Canadian dollars.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin U.S. Rising

Dividends Fund, whose investment objective is long-term capital appreciation by investing primarily in a diversified portfolio of American equities, with a focus on investing in companies that have paid consistently rising dividends

invests in forward contracts to hedge as completely as possible against fluctuations caused by changes in exchange rates between the U.S. and Canadian dollars. As a result, the Fund will not generally

suffer/benefit from any fluctuation in the value of the U.S. dollar against the Canadian dollar. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund.

See page 140 for a full description of the investment strategies of the Underlying Fund. What are the risks of investing in the fund? Since the Fund invests in securities of the Underlying Fund, the share price of the Fund rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of the Fund not precisely tracking the unit price of the Underlying Fund. Investments in forward contracts to hedge as completely as possible against currency fluctuations between the U.S. and Canadian dollar will not result in the impact of currency fluctuations being eliminated altogether. The Fund’s returns will differ from the U.S. dollar returns of the Underlying Fund. Hedging will limit the opportunity for gains that would be realized in the event of an increase in the value of the U.S. dollar relative to the Canadian dollar. During times of extreme market stress or volatility the Fund may not be able to prevent losses from exposure to U.S. currency. See page 141 for a list of the risks associated with the Fund’s investment in the Franklin U.S. Rising Dividends Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks.

Franklin U.S. Rising Dividends Hedged Corporate Class


Who should invest in this fund? Investors: who are seeking a core U.S. equity fund planning to hold their investment for the

medium to long term seeking to lower their risk of currency

fluctuations between the U.S. and Canadian dollars


This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P 500 TR (Hedged CAD) Index. S&P 500 TR (Hedged CAD) Index measures the total return of the broader US economy through changes in the aggregate market value of 500 stocks representing all major industries and assumes reinvestment of dividends. Index returns are hedged to the Canadian dollar, and are shown in Canadian-dollar terms. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series T securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series T securities, any annual

payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.78 84.41 147.95 336.77

Series F 15.23 48.00 84.13 191.50



Franklin Bissett

A Disciplined Approach For over 30 years, Franklin Bissett Investment Management* has been applying a disciplined approach in constructing equity, fixed income and balanced funds. Our overriding objectives are: (i) superior risk-adjusted returns over a complete market cycle; and (ii) that our fundamental research, which adheres to time tested investment styles and solid portfolio execution, will result in funds that outperform over the medium to longer term. Equity Portfolios In keeping with our proven Growth at a Reasonable Price philosophy, the Franklin Bissett equity team seeks to identify high quality, well-managed businesses that have a track record of success and exhibit a sustainable business model. We believe that those businesses are capable of providing steady earnings and dividend growth and, in turn, equity price appreciation. We are fundamentally research driven. In addition, we focus on a superior return on equity, financial strength and attractive valuations, as well as on consistent, above-average revenue and full-cycle earnings and cash-flow growth. Our focus on risk management gives the added benefit of lower volatility versus the respective indices. Fixed Income Portfolios Franklin Bissett’s fixed income team also employs fundamental analysis at the core of its process. The goal of Franklin Bissett’s fixed income funds is to generate stable and predictable income while protecting capital. We believe a diversified portfolio that identifies relative value opportunities in federal, provincial and investment-grade corporate bonds will add value over the long term. Interest rate and yield curve risks are mitigated by prudently managing the fund’s duration and term-to-maturity characteristics. Balanced Portfolios Franklin Bissett’s Asset Mix Committee carefully develops strategic asset allocations for our balanced funds. At each portfolio’s core we utilize Franklin Bissett’s equity and fixed income expertise, which may be complemented by foreign mandates from within the Franklin Templeton Investments family, depending on the balanced fund’s investment strategy. We then employ an ongoing and dynamic asset allocation process that focuses on the relative value of each asset class and refine intermediate-term allocations. This discipline is reflected in our balanced funds, which are suited for investors looking for a combination of growth and income. * part of Franklin Templeton Investments Corp.


Franklin Bissett Canadian All Cap Balanced Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian balanced

Start date: Series A, F, I, O and T securities: January 12, 2009



Series A, F, I, O, PF and T securities of a mutual fund trust


Yes

Portfolio advisor:

Franklin Bissett Investment Management, Calgary, Alberta


Investment objective • balance of current income and long-term

capital appreciation by investing primarily in a diversified portfolio of Canadian equity and fixed income securities, and to a lesser degree, in fixed income securities issued around the world.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund: • normally invests around 65% of its assets in

Canadian equity securities across all market capitalizations and the balance in fixed income securities

• equity to fixed income allocation may change based on changes in market valuation or the portfolio manager’s view on market conditions

• may invest up to 30% of its assets in foreign securities including those in both developed and emerging markets

• fixed income component invests primarily in

Canadian investment grade debt securities. Debt securities include all varieties of fixed income and floating rate securities, including government and corporate bonds, bonds backed by mortgages and other assets and corporate loans

• may invest up to 40% of its assets in debt securities that are rated below investment grade, sometimes called "junk bonds" or "high yield" securities

• may invest in loans and loan participations, sometimes called "corporate or syndicated loans", made to corporate and other business entities by banks and other financial institutions. In a loan participation, the Fund buys from the lender a portion of a larger loan the lender has made to the borrower. Corporate or syndicated loans typically pay interest rates that are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

• may hold a portion of its assets in cash, money market securities (including bank-sponsored asset-backed commercial paper) or money market mutual funds as a strategic asset class or for tactical or liquidity purposes

• may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of

Franklin Bissett Canadian All Cap Balanced Fund


underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset

• may engage in currency management strategies using currency forward contracts to hedge the risk of, or gain exposure to, changes in currency exchange rates

• may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.


The Fund may invest in currency futures, for hedging and non-hedging purposes, to mitigate the risks and/or take advantage of opportunities associated with changes in currency exchange rates. The Fund may invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date.

What are the risks of investing in the fund? equity risk interest rate risk credit risk smaller companies risk dividend-oriented companies risk liquidity risk foreign investment risk reinvestment risk capital depletion risk (Series T securities

only) asset-backed and mortgage-backed

securities risk regulatory risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Bissett Focus Balanced Corporate Class held 30.45% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a Canadian balanced fund

with a multi-cap equity allocation planning to hold their investment for a




Reference index description The Fund’s classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom Franklin Bissett Canadian All Cap Balanced Benchmark.

Franklin Bissett Canadian All Cap Balanced Fund


Custom Franklin Bissett Canadian All Cap Balanced Benchmark is a blended index made up of the S&P/TSX Composite TR Index (65%) and FTSE TMX Canada Universe Bond Index (35%). From June 1, 2011, to May 13, 2013, the Fund’s customized benchmark was made up of the DEX Universe Bond Index (42%), the S&P/TSX Composite TR Index (33%), the S&P TR Index (15%) and the MSCI EAFE TR Index (10%). Prior to May 31, 2011, the customized benchmark was made up of different percentages of indices in accordance with permissible levels of foreign content investment. Indices’ returns are shown in Canadian dollars. FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Before June 2014, it was known as the DEX Universe Bond Index. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. Distribution policy For Series A, F, I, O and PF securities, the


For Series T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital

gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 23.84 75.14 131.70 299.80

Series F 12.60 39.72 69.62 158.48

Series I 17.54 55.28 96.89 220.55

Series PF 9.56 30.12 52.80 120.18

Series T 23.52 74.15 129.96 295.83



Franklin Bissett Canadian All Cap Balanced Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian balanced

Start date: Series A, F, I, O and T securities: January 12, 2009


Series A, F, I, O and T securities of a mutual fund corporation


Yes

Portfolio advisor:


Franklin Bissett Investment Management, Calgary, Alberta is the portfolio advisor of the Underlying Fund



capital appreciation by investing substantially all of its assets in securities of Franklin Bissett Canadian All Cap Balanced Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin Bissett

Canadian All Cap Balanced Fund, whose investment objective is to seek a balance of current income and long-term capital appreciation by investing primarily in a diversified portfolio of Canadian equity and fixed income securities, and to a lesser

degree, in fixed income securities issued around the world

invests in securities of Franklin Bissett Canadian All Cap Balanced Fund and therefore the share price of Franklin Bissett Canadian All Cap Balanced Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Bissett Canadian All Cap Balanced Corporate Class not precisely tracking the unit price of the Underlying Fund

See page 148 for a full description of the investment strategies of Franklin Bissett Canadian All Cap Balanced Fund. What are the risks of investing in the fund? See page 149 for a list of the risks associated with the Fund’s investment in Franklin Bissett Canadian All Cap Balanced Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a Canadian balanced fund

with a multi-cap equity allocation to be held primarily outside a registered plan

planning to hold their investment for a medium to long term





Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom Franklin Bissett Canadian All Cap Balanced Benchmark. Custom Franklin Bissett Canadian All Cap Balanced Benchmark is a blended index made up of the S&P/TSX Composite TR Index (65%) and FTSE TMX Canada Universe Bond Index (35%). From June 1, 2011, to May 13, 2013, the Fund’s customized benchmark was made up of the DEX Universe Bond Index (42%), the S&P/TSX Composite TR Index (33%), the S&P TR Index (15%) and the MSCI EAFE TR Index (10%). Prior to May 31, 2011, the customized benchmark was made up of different percentages of indices in accordance with permissible levels of foreign content investment. Indices’ returns are shown in Canadian dollars. FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Before June 2014, it was known as the DEX Universe Bond Index. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series T securities, the Fund may distribute any return of capital on the last business day of each month (except in

December, when it may be distributed earlier). For Series T securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.68 77.79 136.35 310.36 Series F 13.02 41.05 71.94 163.77

Series I 18.38 57.93 101.53 231.12



Franklin Bissett Canadian Balanced Fund

Fund details


Type of fund:

Canadian balanced

Start date:

Series F securities: September 6, 1991

Series A, I and O securities: November 24, 2000






Yes

Portfolio advisor:



Investment objective balance of current income and long-term

capital appreciation by investing primarily in a portfolio of Franklin Bissett Funds to achieve a balance of fixed income and equity investments.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund: has, under normal market conditions, an

optimal asset mix of Canadian equities 40-60% and fixed income 40-60%. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of fixed income and equity securities

invests in mutual funds and exchange traded funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

may invest up to 40% of the Fund’s assets in foreign securities

may, from time to time, invest a portion of its assets directly in equity and fixed income securities

may hold a portion of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes.


equity risk interest rate risk credit risk foreign investment risk dividend-oriented companies risk smaller companies risk liquidity risk capital depletion risk (Series T securities

only) derivative risk asset allocation risk portfolio management risk large investor risk repurchase/reverse repurchase agreements

risk securities lending risk series risk inflation linked bonds risk cyber security risk As of April 30, 2018, two securityholders held 19.16% and 14.97%, respectively, of the Fund. See page 2 for a full discussion of these risks.




Investors: who are seeking a core balanced fund that is

well diversified by asset class, geography and market capitalization

planning to hold their investments for a medium term




For Series PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment

performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series PFT and T securities.


One year

Three years

Five years

Ten years


Series A 23.63 74.48 130.54 297.15

Series F 11.24 35.42 62.08 141.31

Series I 17.75 55.94 98.05 223.20

Series PF 9.14 28.80 50.48 114.90

Series PFT 9.45 29.79 52.22 118.86

Series T 23.94 75.47 132.28 301.12



Franklin Bissett Canadian Balanced Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian balanced

Start date:

Series A, F and O securities: December 18, 2006






Yes

Portfolio advisor:





The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund:

has, under normal market conditions, an optimal asset mix of Canadian equities 40-60% and fixed income 40-60%. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of fixed income and equity securities

invests in mutual funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds




What are the risks of investing in the fund? • equity risk • interest rate risk • credit risk • foreign investment risk dividend-oriented companies risk • smaller companies risk • liquidity risk • capital depletion risk (Series T securities

only) • derivative risk • asset allocation risk • portfolio management risk • repurchase/reverse repurchase agreements

risk • securities lending risk • large investor risk • series risk • corporate class fund risk • tax risk inflation linked bonds risk • cyber security risk


Franklin Bissett Canadian Balanced Corporate Class



Investors: who are seeking a core balanced fund that is

well diversified by asset class, geography and market capitalization to be held primarily outside a registered plan







Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the

return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.05 75.80 132.86 302.44

Series F 12.18 38.40 67.30 153.20

Series I 18.38 57.93 101.53 231.12

Series PF 9.66 30.45 53.38 121.50



Franklin Bissett Canadian Bond Fund Fund details

Type of fund:

Canadian bond

Start date: Series A, F, O and PF securities: January 5, 2018*




Yes

Portfolio advisor:


* Series O Securities were previously offered on a private placement basis since October 5, 2009.




The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147.

The Fund: has, under normal market conditions, an

optimal asset mix of Canadian equities 30-50%, Canadian fixed income 30-50% and Global/U.S. securities 15-40%. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of fixed income and equity securities





The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate: the greater the chance that you may

receive a distribution from the Fund that must be included in determining a taxable investor’s income for tax purposes


What are the risks of investing in the fund? • equity risk • interest rate risk • credit risk • foreign investment risk dividend-oriented companies risk • smaller companies risk • liquidity risk • capital depletion risk (Series T securities

only) • derivative risk • asset allocation risk • portfolio management risk • repurchase/reverse repurchase

agreements risk • securities lending risk • large investor risk • series risk • corporate class fund risk • tax risk inflation linked bonds risk • cyber security risk As of April 30, 2018, a securityholder held 13.43% of the Fund.


Franklin Bissett Canadian Bond Fund


Who should invest in this fund? Investors: who are conservative and seeking

interest income and some capital gains willing to accept low investment risk for

that part of their portfolio planning to hold their investments for a

medium term This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference Index Description The Fund’s risk classification is based on the Fund’s benchmark, the FTSE TMX Canada Universe Bond Index. FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Before June 2014, it was known as the DEX Universe Bond Index. Distribution policy The Fund distributes income on the last business days of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $) Not applicable since this Fund is new.


Franklin Bissett Canadian Dividend Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian dividend and income equity

Start date:


Series I securities: April 11, 2016





Yes

Portfolio advisor:




primarily in dividend paying or income producing Canadian securities, including common shares, income trust units and preferred shares.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund: invests in equity securities of quality

companies at reasonable prices that have a proven ability to deliver a consistent and growing level of dividends over time

invests in income trusts that are expected to have stable or growing distributions over time

may invest in other income paying securities





equity risk dividend-oriented companies risk smaller companies risk liquidity risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk series risk

Franklin Bissett Canadian Dividend Fund


short selling risk securities lending risk cyber security risk

See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are seeking income and some capital

gains seeking a core Canadian dividend fund planning to hold their investment for the

medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes any income and cash received from underlying securities, less any expenses on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell

us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.47 77.13 135.18 307.72

Series F 12.81 40.38 70.78 161.12

Series I 18.80 59.25 103.85 236.40

Series PF 10.29 32.44 56.86 129.43



Franklin Bissett Canadian Dividend Corporate Class Fund details


Type of fund:

Canadian dividend and income equity

Start date: Series A, F, FT, I, O, OT and T securities: September 27, 2010



Series A, F, FT, I, O, OT, PF and T securities of a mutual fund corporation


Yes

Portfolio advisor:





substantially all of its assets in securities of Franklin Bissett Canadian Dividend Fund (the “Underlying Fund”).


Canadian Dividend Fund, whose investment objective is long-term capital appreciation by investing primarily in dividend paying or income producing Canadian securities, including common shares, income trust units and preferred shares

invests in securities of Franklin Bissett Canadian Dividend Fund and therefore the share price of Franklin Bissett Canadian Dividend Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors

with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Bissett Canadian Dividend Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 159 for a full description of the investment strategies of Franklin Bissett Canadian Dividend Fund. What are the risks of investing in the fund? See page 159 for a list of the risks associated with the Fund’s investment in Franklin Bissett Canadian Dividend Fund. The Fund has these additional risks: tracking risk capital depletion risk (Series FT, OT and T

securities only) corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are seeking income and some capital

gains in a fund to be held primarily outside a registered plan

seeking a core Canadian dividend fund planning to hold their investment for a

medium to long term who, in the case of Series FT, OT and T



Franklin Bissett Canadian Dividend Corporate Class


Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P/TSX Composite TR Index. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. Distribution policy The Fund may pay ordinary taxable dividends


For Series FT, OT and T securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT and T securities, any annual payments consisting of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or

“income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.68 77.79 136.35 310.36

Series F 13.23 41.71 73.10 166.41


Series PF 10.71 33.76 59.18 134.71



Franklin Bissett Canada Plus Equity Fund Fund details Type of fund:

Canadian equity

Start date: Series A, F, O and PF securities: July 17, 2017




Yes

Portfolio advisor:




primarily in a diversified portfolio of Canadian and U.S. equities, with the intent of managing the overall volatility of the portfolio.



The Fund: invests in Canadian and U.S. equities that are

selected based on our fundamental investment philosophy


targets a broad equity sector diversification primarily invests in equity securities of mid to

large cap companies, but may also invest in companies of any size

may, to the extent permitted by securities regulations, purchase put options on equity indices and exchange-traded funds, as well as implement put option spreads on equity indices and exchange-traded funds for hedging purposes

may engage in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts, exchange traded currency options, foreign exchange futures and options on foreign exchange futures

may hold up to 10% of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, calls, puts and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk foreign investment risk dividend-oriented companies risk large investor risk derivative risk portfolio management risk repurchase/reverse repurchase agreements risk series risk



short selling risk securities lending risk cyber security risk As of April 30, 2018, the Manager held 71.27% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors:

seeking a core North American equity fund allocation

seeking some downside protection through sector and geographic diversification and the use of options strategies

planning to hold their investment for the medium to long term This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference index description The Fund’s risk classification is based on the Fund’s benchmark which is comprised of S&P TSX Composite TR Index (60%) and S&P 500 Index (40%).

S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. S&P 500 Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Distribution policy

The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.15 82.42 144.47 328.85

Series F 14.18 44.69 78.33 178.29

Series PF 11.55 36.41 63.82 145.28



Franklin Bissett Canadian Equity Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

Canadian equity

Start date:

Series F securities: March 1, 1983






Yes

Portfolio advisor:




primarily in a diversified portfolio of mid to large capitalization Canadian equities.



The Fund: invests in Canadian equities that are selected

based on our fundamental investment approach


may invest up to 10% of the market value of the Fund in mutual funds managed by the Manager or third parties

may hold a portion of its assets in cash, money market securities or money market

mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, calls, puts and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk foreign investment risk dividend-oriented companies risk large investor risk derivative risk portfolio management risk repurchase/reverse repurchase agreements risk series risk short selling risk securities lending risk cyber security risk See page 2 for a full discussion of these risks.

Franklin Bissett Canadian Equity Fund



Investors:

seeking a core Canadian equity fund seeking a fund with emphasis on capital

appreciation planning to hold their investment for the medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Distribution policy

The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.


One year

Three years

Five years

Ten years


Series A 25.83 81.43 142.73 324.89

Series F 12.08 38.07 66.72 151.88

Series I 16.80 52.96 92.83 211.31

Series PF 10.40 32.77 57.44 130.75



Franklin Bissett Canadian Equity Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

Canadian equity

Start date:

Series A, F and O securities: June 18, 2001

Series I, OT and T securities: October 15, 2013



Series A, F, I, O, OT, PF and T securities of a mutual fund corporation


Yes

Portfolio advisor:





substantially all of its assets in securities of Franklin Bissett Canadian Equity Fund (the “Underlying Fund”).


Investment strategies The Fund: invests in securities of Franklin Bissett

Canadian Equity Fund, whose investment objective is long-term capital appreciation by investing primarily in a diversified portfolio of mid to large capitalization Canadian equities

invests in securities of Franklin Bissett Canadian Equity Fund and therefore the share price of Franklin Bissett Canadian

Equity Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Bissett Canadian Equity Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 165 for a full description of the Investment strategies of Franklin Bissett Canadian Equity Fund.


See page 165 for a list of the risks associated with the Fund’s investment in Franklin Bissett Canadian Equity Fund. The Fund has these additional risks:

tracking risk capital depletion risk (Series OT and T

securities only) corporate class fund risk tax risk


Investors: seeking a core Canadian equity fund to be

held primarily outside a registered plan seeking a fund with emphasis on capital

appreciation planning to hold their investment for the

medium to long term who, in the case of Series OT and T


This Fund is for investors willing to accept medium investment risk for that part of their

Franklin Bissett Canadian Equity Corporate Class


portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year. • For Series OT and T securities, the Fund

may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series OT and T securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series OT and T securities.



One year

Three years

Five years

Ten years


Series A 26.04 82.09 143.89 327.53

Series F 12.39 39.06 68.46 155.84

Series I 17.75 55.94 98.05 223.20

Series PF 10.71 33.76 59.18 134.71

Series T 26.04 82.09 143.89 327.53


Franklin Bissett Canadian Government Bond Fund Fund details

Type of fund:

Canadian fixed income

Start date: Series F, O and PF securities: November 14, 2016


Series F, O and PF securities of a mutual fund trust


Yes

Portfolio advisor:



Investment objective • current income, liquidity and modest capital

appreciation by investing primarily in bonds issued by Canadian federal, provincial and municipal governments and government agencies, mortgage backed securities and real return bonds.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund invests primarily in investment grade debt securities, including fixed income and floating rate securities, issued or guaranteed by all levels of government in Canada or agencies of these governments. We describe our fundamental investment philosophy on page 147. The Fund may also: invest in real return bonds and mortgage-

backed securities issued or guaranteed by any of the different levels of government in Canada

invest up to 10% of the assets of the Fund in bonds issued by foreign governments and their agencies that are denominated in Canadian dollars.

hold a portion of its assets in cash, money market securities (including bank-sponsored

asset-backed commercial paper) or money market mutual funds as a strategic asset class or for tactical or liquidity purposes

invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date.

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, option contracts (calls or puts) and swaps, including interest rate and fixed income total return swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate:

the greater the chance that you may receive a distribution from the Fund that must be included in determining a taxable investor’s income for tax purposes



interest rate risk concentration risk reinvestment risk credit risk regulatory risk asset-backed and mortgage-backed

securities risk

Franklin Bissett Canadian Government Bond Fund


large investor risk portfolio management risk series risk cyber security risk

As of April 30, 2018, Franklin Quotential Diversified Income Portfolio held 22.59% of the Fund, Franklin Quotential Balanced Growth Portfolio held 22.21% of the Fund, Franklin Quotential Diversified Income Portfolio Corporate Class held 20.70% of the Fund and Franklin Quotential Balanced Income Portfolio held 15.54% of the Fund. See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking interest income and some capital

appreciation seeking to complement their portfolio

holdings with Canadian government bond exposure

planning to hold their investment for a medium term

This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the FTSE TMX Canada All Government Bond Index. FTSE TMX Canada All Government Bond Index is made up of government and government-guaranteed bonds with an investment-grade rating and a remaining effective term to maturity of at least one year. Distribution policy The Fund distributes any income on the last business day of each month (except in

December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)


One year

Three years

Five years

Ten years


Series F 7.14 22.51 39.45 89.81

Series PF 5.88 18.54 32.49 73.96


Franklin Bissett Canadian Short Term Bond Fund Fund details

Type of fund:

Canadian short term fixed income

Start date: Series A, F and O securities: December 22, 2003





Yes

Portfolio advisor:



Investment objective • high current income and preservation of

capital by investing primarily in Canadian fixed-income securities including federal and provincial government bonds and corporate bonds, debentures and short-term notes.


The Fund invests primarily in Canadian debt securities. Debt securities include all varieties of fixed income and floating rate securities, including government and corporate bonds, bonds backed by mortgages and other financial assets, and corporate loans.

The Fund also: will generally have a duration of 3.5 years or

lower may invest up to 40% of its assets in debt

securities that are rated below investment grade, sometimes called “high yield” securities

may invest up to 30% of its assets in foreign securities including those of both developed and emerging markets

may invest in loans and loan participations, sometimes called “corporate or syndicated loans”, made to corporate and other business entities by banks and other financial institutions. In a loan participation, the Fund buys from the lender a portion of a larger loan the lender has made to the borrower. Corporate or syndicated loans typically pay interest rates that are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

may invest a portion of its assets in preferred securities as well as dividend paying securities of Canadian companies

may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset




may, from time to time, hold: (i) equity

securities issued in exchange for debt instruments by companies recently emerging from or facing financial restructuring, that resulted from the conversion of convertible securities or that were received as part of a bond offering; and (ii) warrants/rights issued by companies recently emerging from or facing financial restructuring

may hold a portion of its assets in cash, money market securities (including bank-sponsored asset-backed commercial paper) or money market mutual funds as a strategic asset class or for tactical or liquidity purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), including currency options, currency index options, and swaptions, collateralized debt obligations and swaps, including credit default, currency, interest rate and fixed income total return swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may invest in currency futures, for hedging and non-hedging purposes, to mitigate the risks and/or take advantage of opportunities associated with changes in currency exchange rates. The Fund may invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that

trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate:

the greater the chance that you may receive



What are the risks of investing in the fund? liquidity risk interest rate risk credit risk foreign investment risk reinvestment risk regulatory risk large investor risk portfolio management risk derivative risk asset-backed and mortgage-backed

securities risk equity risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Quotential Diversified Income Portfolio held 18.68% of the Fund, Franklin Quotential Diversified Income Portfolio Corporate Class held 17.12% of the Fund, Franklin Quotential Balanced Growth Portfolio held 16.17% of the Fund and Franklin Quotential Balanced Income Portfolio held 11.31% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are conservative and seeking regular

income



planning to hold their investment for a short to

medium term This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund distributes income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 13.86 43.69 76.59 174.33

Series F 8.19 25.82 45.26 103.01



Franklin Bissett Core Plus Bond Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:

Series F securities: August 1, 1986






Yes

Portfolio advisor:




capital appreciation by investing primarily in Canadian federal and provincial government, and corporate bonds, debentures and short-term notes.


Investment strategies We describe our fundamental investment philosophy on page 147. The Fund invests primarily in investment grade Canadian debt securities. Debt securities include all varieties of fixed income and floating rate securities, including government and corporate bonds, bonds backed by mortgages and other financial assets, and corporate loans.

The Fund also: may invest up to 40% of its assets in debt

securities that are rated below investment

grade, sometimes called “high yield” securities




may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on

Franklin Bissett Core Plus Bond Fund


investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset




may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contract (calls or puts), including currency options, currency index options, and swaptions, collateralized debt obligations and swaps, including credit default, currency, interest rate and fixed income total return swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.


enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may invest in currency futures, for hedging and non-hedging purposes, to mitigate the risks and/or take advantage of opportunities associated with changes in currency exchange rates. The Fund may invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate: the greater the chance that you may receive





risk series risk short selling risk securities lending risk inflation linked bonds risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 16.82% of the



Fund, Franklin Quotential Diversified Income Portfolio held 13.46% of the Fund, Franklin Diversified Income Portfolio Corporate Class held 12.34% of the Fund and Franklin Balanced Income Portfolio held 11.77% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are conservative and seeking interest

income and some capital gains who are seeking a broad fixed income

solution with exposure to Canadian and foreign securities



Distribution policy

The Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.


One year

Three years

Five years

Ten years


Series A 15.65 49.32 86.45 196.78

Series F 8.30 26.15 45.84 104.33

Series I 12.81 40.38 70.78 161.12

Series PF 6.83 21.52 37.71 85.84



Franklin Bissett Corporate Bond Fund Fund details


Type of fund:


Start date:







Yes

Portfolio advisor:



Investment objective • high current income and some long-term

capital appreciation by investing primarily in bonds, debentures, notes, revenue bonds and asset-backed and mortgage-backed securities of Canadian corporate entities.



The Fund invests primarily in investment grade Canadian debt securities. Debt securities include all varieties of fixed income and floating rate securities, including government and corporate bonds, bonds backed by mortgages and other financial assets, and corporate loans.

The Fund also: may invest in government bonds and bonds

backed by mortgages and other assets

may invest up to 40% of its assets in debt securities that are rated below investment grade, sometimes called “high yield” securities




may, to the extent permitted by securities regulations, invest in credit derivatives, such as credit default swaps, credit-linked securities and credit-linked notes, for non-hedging purposes, in order to obtain exposure to companies or financial markets and for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange. The return on

Franklin Bissett Corporate Bond Fund


investment of credit-linked securities or credit-linked notes is typically tied to the performance of a reference asset, whereby the value of these securities at maturity and/or their coupon is determined by movements in the value of the reference asset




may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts), including currency options, currency index options, and swaptions, collateralized debt obligations and swaps, including credit default, currency, interest rate and fixed income total return swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.


The Fund may invest in currency futures, for hedging and non-hedging purposes, to mitigate the risks and/or take advantage of opportunities associated with changes in currency exchange rates. The Fund may invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate: the greater the chance that you may receive





risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Bissett Canadian Balanced Fund held 72.82% of the Fund. See page 2 for a full discussion of these risks.




Investors: who are conservative and seeking interest

income and some capital gains who are seeking a broad corporate bond

solution with exposure to Canadian and foreign securities



Distribution policy

The Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 16.38 51.64 90.51 206.03

Series F 10.40 32.77 57.44 130.75

Series I 12.92 40.71 71.36 162.44



Franklin Bissett Dividend Income Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

Canadian equity balanced

Start date:

Series F securities: May 31, 1988






Series A, F, I, O, OT, PF, PFT and T securities of a mutual fund trust


Yes

Portfolio advisor:



Investment objective high current income by investing primarily in

Canadian and American dividend paying preferred and common stocks and, from time to time, bonds up to a maximum of 25% of the Fund’s total assets.



The Fund: invests in equity securities of quality

Canadian and American companies at reasonable prices that have a proven ability to deliver a consistent and growing level of dividends over time

invests in government and corporate bonds, bonds backed by mortgages and preferred

securities. It invests primarily in investment grade securities and to a lesser extent in below investment grade, sometimes called “high yield” securities

may invest up to 30% of the Fund’s assets in foreign equity and fixed income


• may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk interest rate risk dividend-oriented companies risk • low-rated securities risk smaller companies risk foreign investment risk

Franklin Bissett Dividend Income Fund


liquidity risk capital depletion risk (Series OT, PFT and T

securities only) portfolio management risk credit risk reinvestment risk large investor risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, two securityholders held 19.74% and 16.30%, respectively, of the Fund. See page 2 for a full discussion of these risks.


Investors: who are seeking dividend income, some

capital gains and possibly some interest income


who, in the case of Series OT, PFT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan


Distribution policy

For Series A, F, I, O and PF securities, the Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year.

For Series OT, PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series OT, PFT and T securities.




One year

Three years

Five years

Ten years


Series A 24.36 76.80 134.60 306.40

Series F 11.97 37.74 66.14 150.56

Series I 18.59 58.59 102.69 233.76

Series PF 9.66 30.45 53.38 121.50

Series PFT 9.45 29.79 52.22 118.86

Series T 24.36 76.80 134.60 306.40



Franklin Bissett Dividend Income Corporate Class Fund details


Type of fund:

Canadian equity balanced

Start date: Series A, F, I, O and T securities: June 25, 2012





Yes

Portfolio advisor:




Investment objective high current income by investing substantially

all of its assets in securities of Franklin Bissett Dividend Income Fund (the “Underlying Fund”).


Dividend Income Fund, whose investment objective is high current income by investing primarily in Canadian and American dividend paying preferred and common stocks and, from time to time, bonds up to a maximum of 25% of the Fund’s total assets

invests in securities of Franklin Bissett Dividend Income Fund and therefore the share price of Franklin Bissett Dividend

Income Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Bissett Dividend Income Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 180 for a full description of the Investment strategies of Franklin Bissett Dividend Income Fund. What are the risks of investing in the fund?

See page 180 for a list of the risks associated with the Fund’s investment of Franklin Bissett Dividend Income Fund. The Fund has these additional risks:

tracking risk corporate class fund risk tax risk


Investors: who are seeking dividend income, some

capital gains and possibly some interest income to be held primarily outside a registered plan






lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom Franklin Bissett Dividend Income Benchmark. Custom Franklin Bissett Dividend Income Benchmark from June 30, 2012 to present comprises the S&P/TSX Composite TR Index (60%), FTSE TMX Canada Universe Bond TR Index (formerly the Scotia Capital Markets [SCM] Index, 15%), S&P 500 TR Index (20%) and S&P/TSX Preferred Share TR Index (5%). S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Before June 2014, it was known as the DEX Universe Bond Index. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. S&P/TSX Preferred Share TR Index tracks the total return (dividends are reinvested) of the Canadian preferred shares traded on the Toronto Stock Exchange and with mandatory conversion of maturity greater than 12 months.

Distribution policy

• The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.


Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities.




One year

Three years

Five years

Ten years



Series PF 10.19 32.11 56.28 128.11

Series T 24.15 76.13 133.44 303.76


Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin Bissett Energy Corporate Class Fund details

Type of fund:

Natural resources equity






Yes

Portfolio advisor:




primarily in equities and other securities of Canadian entities involved directly or indirectly in the energy sector.

The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund: invests primarily in equity securities of

growth-oriented entities invests primarily in the energy sector, which

includes entities engaged in the exploration, production, refining, marketing, transportation and distribution of all types of energy, as well as entities engaged in energy related activities, such as pipelines, utilities, manufacturing and the construction or provision of oil rigs, drilling equipment and other energy related services

may hold all of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes


may engage in securities lending, repurchase

and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate: the greater the chance that you may receive




equity risk specialization risk concentration risk regulatory risk smaller companies risk dividend-oriented companies risk foreign investment risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk



series risk short selling risk securities lending risk corporate class fund risk tax risk cyber security risk See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: who are seeking to invest in the Canadian

energy sector who are not concerned with short-term price

fluctuations planning to hold their investment for a long

term This Fund is for investors willing to accept high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P/TSX Capped Energy TR Index. S&P/TSX Capped Energy TR Index is a benchmark for the Canadian energy sector (dividends are reinvested), drawing from a stock

pool of both traditional stocks and income trusts in the S&P/TSX Composite Index. The relative weight of any single index constituent is capped at 25%. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.


One year

Three years

Five years

Ten years


Series A 27.09 85.40 149.69 340.74 Series F 15.75 49.65 87.03 198.10




Franklin Bissett Microcap Fund Fund details Type of fund:

Canadian small/mid cap equity

Start date:

Series F securities: November 3, 1997 Series A and O securities: November 24, 2000





Yes

Portfolio advisor:



primarily in Canadian equities of smaller capitalization companies.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 147. The Fund: invests primarily in companies at the very low

end of the equity market capitalization range invests in companies with proven

management and a long-term growth plan may invest up to 30% of the Fund’s assets in

foreign securities may hold a portion of its assets in cash,

money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65).

These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk smaller companies risk liquidity risk foreign investment risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Bissett Canadian Balanced Fund held 19.80% of the Fund. See page 2 for a full discussion of these risks.


Investors: seeking above average capital gain potential

of a smaller companies fund as part of a more conservative portfolio





Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash

distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 38.64 121.81 213.51 486.01

Series F 25.10 79.11 138.67 315.64

Series PF 23.10 72.82 127.64 290.55

Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund


Franklin Bissett Money Market Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Canadian money market

Start date:

Series F securities: September 6, 1991






Yes

Portfolio advisor:



Investment objective high current income, liquidity and

preservation of capital by investing primarily in high quality money market securities issued by Canadian federal or provincial governments and government agencies, and high quality short-term money market instruments and bankers acceptances.


Investment strategies High current income means current income that is comparable to the prevailing 90-day treasury bill rate. We describe our fundamental investment philosophy on page 147. The Fund: invests primarily in fixed and floating rate

securities maturing in one year or less

may also invest in floating rate notes with interest rate reset dates of less than one year

may also invest in commercial paper and other forms of corporate indebtedness (including bank-sponsored asset-backed commercial paper)

may invest up to 30% of the Fund’s assets in foreign securities.

The Fund maintains: a dollar-weighted average term of 90 days or

less. Average term is calculated based on the next reset date of the floating rate notes of the Fund

a dollar-weighted average maturity of 180 days or less. Average maturity is calculated based on the final maturity date of the floating rate notes in the Fund

a unit price of $10 by distributing income monthly.


The unit price of the Fund may fluctuate, although we try to keep it fixed at $10.00. In addition, the Fund is subject to the following risks: interest rate risk concentration risk reinvestment risk credit risk regulatory risk asset-backed and mortgage-backed

securities risk large investor risk portfolio management risk series risk foreign investment risk cyber security risk

Franklin Bissett Money Market Fund


As of April 30, 2018, Franklin Templeton Money Market Corporate Class held 12.02% of the Fund.



Investors: seeking a Canadian money market fund planning to hold their investments for a short

term


Distribution policy The Fund credits any income daily to securityholders and may make distributions on the last business day of each month. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 8.61 27.14 47.58 108.30

Series F 5.78 18.21 31.91 72.64

Series I 7.35 23.17 40.61 92.45

Series PF 5.15 16.22 28.43 64.71



Franklin Bissett Money Market Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

Canadian money market





Yes

Portfolio advisor:



What does the fund invest in? Investment objective high current income, liquidity and

preservation of capital by investing substantially all of its assets in securities of Franklin Bissett Money Market Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund:

invests in securities of Franklin Bissett Money Market Fund, whose investment objective is high current income, liquidity and preservation of capital by investing primarily in high quality money market securities issued by Canadian federal or provincial governments and government agencies, and high quality short-term money market instruments and bankers acceptances

the Fund reinvests distributions paid by the Underlying Fund in additional securities of the Underlying Fund. The Fund does not make corresponding dividends. The retention of the additional securities increases the value of the Fund’s investments resulting in a rising share price. Any dividend paid by the Fund will decrease the share price

will not maintain its share price at a constant amount.

See page 190 for a full description of the Investment strategies of Franklin Bissett Money Market Fund. What are the risks of investing in the fund? See page 190 for a list of the risks associated with the Fund’s investment in Franklin Bissett Money Market Fund. The Fund has these additional risks:

tracking risk corporate class fund risk tax risk As of April 30, 2018, one securityholder held 18.37% of the Fund. See page 2 for a full discussion of these risks.


Investors: seeking a Canadian money market fund to be

held primarily outside a registered plan planning to hold their investments for a short

term

This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a

Franklin Bissett Money Market Corporate Class


description of how we classify this Fund’s investment risk. Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year. Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 6.83 21.52 37.71 85.84

Series F 3.99 12.58 22.05 50.19



Franklin Bissett Monthly Income and Growth Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian balanced

Start date: Series A, F, I, O, PF and T securities: June 22, 2015

Series PFT securities: October 3, 2016




Yes

Portfolio advisor:



Investment objective Balance of income and capital appreciation

by investing primarily in a diversified portfolio of income-generating Canadian, U.S. and global equities, equity-related securities and fixed income securities


Investment strategies We describe our fundamental investment philosophy on page 147. The Fund:

has, under normal market conditions, a neutral asset mix exposure of 55% equity and 45% fixed income. The Fund typically invests up to 30% of its assets in foreign securities, but may exceed this limit from time to time. The portfolio advisor may review and adjust the optimal asset mix, +/- 20%, in its sole discretion, depending on the outlook and

relative attractiveness of expected risk-adjusted returns from each asset class over time obtains its equity exposure by investing primarily in North American equity securities. Accordingly, the Fund:

invests in dividend paying or income producing equity securities including common and preferred securities, REITs, income trusts and royalties

invests in equity securities of high quality businesses with long-term profitability and growth profiles, that have a proven ability to deliver a consistent and growing level of dividends over time

may invest in other income paying securities

may invest in non or lower dividend paying equity securities if these provide attractive total return prospects

targets a broad equity sector diversification

primarily invests in equity securities of mid to large cap companies, but may also invest in companies of any size

may also invest in hybrid securities including preferred securities and convertible securities to enhance income and reduce the impact of market volatility

obtains its Canadian and foreign fixed income exposure by investing in Canadian and foreign fixed income securities. To obtain this fixed income exposure, the Fund: employs a multi-sector approach by

investing in a broad range of fixed income and floating rate securities, including government and corporate bonds, convertible bonds, bonds backed by mortgages and other financial assets, and corporate loans

Franklin Bissett Monthly Income and Growth Fund


invests in debt securities that are rated high quality or below investment grade, sometimes called “high yield” securities

may invest in Canadian federal and provincial government bonds, debentures and short-term notes

may invest in foreign securities including those of both developed and emerging markets

may invest in loans made to corporate and other business entities by banks and other financial institutions (“corporate loans”). Such corporate loans typically pay interest rates, which are re-determined periodically on the basis of a floating base lending rate such as the London Interbank Offered Rate (LIBOR) plus a premium

may invest in loan participations and other direct or indirect corporate debt obligations, including assignments of corporate loans, in which the Fund will buy from the lender a portion of a larger loan the lender has made to a borrower. Such loans may include term loans, and to the extent permitted by securities regulations, revolving credit facilities, synthetic term loans, delayed draw term loans and receivables purchase facilities

may invest in debt securities that have floating or variable payment schedules including floating rate notes issued by governments and corporate issuers, secured floating rate bank loans, Treasury Inflation Indexed bonds (TIPs), Canadian Government Real Return Bonds (RRBs) and adjustable-rate asset-backed securities

may, to the extent permitted by securities regulations, invest in derivative instruments for hedging and non-hedging purposes. The Fund: may invest in equity covered call

options for non-hedging purposes, to enhance income and hedging purposes, to reduce the impact of market volatility

may write covered call options for non-hedging purposes, in order to enhance income or provide access to certain securities within an issuer’s capital structure, and for hedging purposes, in order to reduce the risk position of the Fund

may, to the extent permitted by securities regulations, purchase put options on indices and exchange-traded index funds, as well as implement put option spreads on indices and exchange-traded funds for hedging purposes

may invest in interest rate instruments, such as interest rate swaps, options on interest rate swaps and interest rate futures for hedging purposes, in order to reduce the risk associated with interest rate exposure

may invest in credit derivatives, such as credit default swaps, options on credit default swaps and securitized credit instruments for hedging purposes, in order to reduce the risk position of the Fund. Swap agreements, such as credit default swaps, are contracts between the Fund and, typically, a brokerage firm, bank, or other financial institution (the swap counterparty) for periods ranging from a few days to multiple years. In a basic swap transaction, the Fund agrees with its counterparty to exchange the returns (or differentials in rates of return) earned or realized on a particular “notional amount” of underlying instruments. The notional amount is the set amount selected by the parties as the basis on which to calculate the obligations that they have agreed to exchange.

may engage in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts, exchange traded currency options, foreign exchange futures and options on foreign exchange futures



may hold up to 10% of its assets in cash, money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts), securitized debt instruments and swaps, including credit default, currency, and interest rate swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. The Fund may invest in currency futures, for hedging and non-hedging purposes, to mitigate the risks and/or take advantage of opportunities associated with changes in currency exchange rates. The Fund may invest in interest rate futures, for hedging and non-hedging purposes, to facilitate changes in portfolio duration and/or interest rate/yield curve exposures. A futures contract is a standard binding agreement that trades on an exchange to buy or sell a specified quantity of an underlying instrument or asset at a specified price on a stipulated future date. The Fund’s portfolio turnover rate may be greater than 70%. The higher a Fund’s portfolio turnover rate:

the greater the chance that you may receive a distribution from the Fund that

must be included in determining a taxable investor’s income for tax purposes


What are the risks of investing in the fund? equity risk smaller companies risk liquidity risk interest rate risk credit risk foreign investment risk dividend-oriented companies risk reinvestment risk regulatory risk emerging markets risk low-rated security risk large investor risk portfolio management risk derivative risk asset-backed and mortgage-backed

securities risk repurchase/reverse repurchase agreements

risk capital depletion risk (Series PFT and T

securities only) series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Bissett Canadian Balanced Fund held 48.69% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are seeking the potential for attractive

risk-adjusted returns and sustainable monthly cash flow from investment

looking to invest in one fund providing them with predominantly Canadian equity exposure, and complemented by U.S. and global equity and fixed income exposure




who, in the case of Series T securities, are seeking regular monthly cash flows from investment held outside a registered plan

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom Franklin Bissett Monthly Income and Growth Benchmark. Custom Franklin Bissett Monthly Income and Growth Benchmark is a blended index composed of the FTSE TMX Canada Universe Bond Index (45%), S&P/TSX Composite Total Return Index (35%) and S&P 500 Total Return Index (20%). FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Before June 2014, it was known as the DEX Universe Bond Index. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars.

Distribution policy

For Series A, F, I, O and PF securities, the Fund distributes income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains

annually in December and may make distributions at other times during the year.

For Series PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series PFT and T securities.




One year

Three years

Five years

Ten years


Series A 22.47 70.84 124.16 282.63 Series F 10.82 34.09 59.76 136.03 Series I 18.06 56.93 99.79 227.16 Series PF 9.56 30.12 52.80 120.18 Series PFT 9.66 30.45 53.38 121.50

Series T 22.58 71.17 124.74 283.95 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.


Franklin Bissett Small Cap Fund Fund details

Type of fund:


Start date:

Series F securities: August 30, 1993






Yes

Portfolio advisor:




primarily in a diversified portfolio of Canadian small capitalization equities.



The Fund: invests primarily in companies at the low end

of the equity market capitalization range invests in companies with proven

management and a long-term growth plan may invest up to 30% of the Fund’s assets in

foreign securities may hold a portion of its assets in cash,

money market securities or money market mutual funds while seeking investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65).

These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk smaller companies risk liquidity risk foreign investment risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, one securityholder held 12.08% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?


of a smaller companies fund, on its own or as part of a more conservative portfolio





Distribution policy

The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell

us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 30.03 94.67 165.94 377.72

Series F 18.27 57.60 100.95 229.80

Series PF 16.28 51.31 89.93 204.71



Franklin Bissett Small Cap Corporate Class Fund details

Type of fund:






Yes

Portfolio advisor:





substantially all of its assets in securities of Franklin Bissett Small Cap Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin Bissett Small

Cap Fund, whose investment objective is long-term capital appreciation by investing primarily in a diversified portfolio of Canadian small capitalization equities

invests in securities of Franklin Bissett Small Cap Fund and therefore the share price of Franklin Bissett Small Cap Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Bissett Small Cap Corporate Class

not precisely tracking the unit price of the Underlying Fund.

See page 199 for a full description of the Investment strategies of Franklin Bissett Small Cap Fund. What are the risks of investing in the fund? See page 199 for a list of the risks associated with the Fund’s investment of Franklin Bissett Small Cap Fund. The Fund has these additional risks:

tracking risk corporate class fund risk tax risk As of April 30, 2018, one securityholder held 20.46% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?


of a smaller companies fund, on its own or as part of a more conservative portfolio to be held primarily outside a registered plan


This Fund is for investors willing to accept medium to high investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy The Fund may pay ordinary taxable dividends within the year and capital gains dividends in January or February of each year.

Distributions/dividends are automatically reinvested in additional securities of the Fund,

Franklin Bissett Small Cap Corporate Class


unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 30.77 96.99 170.00 386.96

Series F 19.32 60.91 106.76 243.01



Franklin ActiveQuant

A Rules-based Approach The Franklin ActiveQuant portfolios are constructed based on a rigorous quantitative investment process to identify the best opportunities within each strategy’s investment universe. We look for equities exhibiting an attractive combination of variables relating to value, risk and growth, in addition to earnings and price momentum. Security Selection and Weighting: New securities are added to each fund when existing holdings drop in rank enough to be eliminated. As equities are removed, the strategy continuously adds the highest-ranking equities not already held. To reduce factors related to market timing, human emotions & biases, initial target weighting for each security is equal with monthly rebalancing back to the neutral target for significant portfolio outperformers and underperformers. This process is repeated monthly.

Risk Considerations: Securities are initially identified based on how they rank on metrics which include risk factors as the funds favour equities with lower earnings variability and share price volatility. To ensure proper diversification and reduced concentration risks, each fund invests in 40 securities at all times, with a target weight of 2.5% for each security. Monthly rebalancing of securities helps level the exposure to securities with the strongest and weakest relative performance. This systematic rebalancing avoids human emotions and biases from potentially undermining the rigorous investment process. The model is continuously tested in order to optimize the factors used in the screening strategy.


Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian equity

Start date:

Series A, F and O securities: September 20, 2004

Series I securities: March 30, 2009





Yes

Portfolio advisor:




primarily in a diversified portfolio of Canadian securities.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 203. The Fund: invests in Canadian equities and income

trusts that are carefully selected based on a quantitative approach

uses a pre-determined quantitative screening model that identifies securities based on different selection criteria chosen by the portfolio advisor. The model incorporates a mix of various historical and projected financial and stock market data



may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, option contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.



equity risk dividend-oriented companies risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 24.39% of the

Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund)


Fund and Franklin Bissett Canadian Balanced Fund held 14.11% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a core Canadian equity fund

that employs a quantitative investment strategy



Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.


One year

Three years

Five years

Ten years


Series A 22.89 72.16 126.48 287.91

Series F 11.03 34.76 60.92 138.67

Series I 18.17 57.27 100.37 228.48

Series PF 8.51 26.81 47.00 106.98



Franklin ActiveQuant Canadian Corporate Class (formerly Franklin Bissett All Canadian Focus Corporate Class) Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian equity

Start date: Series A, F and O securities: September 20, 2004





Yes

Portfolio advisor:


Franklin Bissett Investment Management, Calgary, Alberta, is the portfolio advisor of the Underlying Fund



substantially all of its assets in securities of Franklin ActiveQuant Canadian Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin

ActiveQuant Canadian Fund, whose investment objective is long-term capital appreciation by investing primarily in a diversified portfolio of Canadian securities

invests in securities of Franklin ActiveQuant Canadian Fund and therefore the share price of Franklin ActiveQuant Canadian Corporate Class

rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin ActiveQuant Canadian Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 204 for a full description of the investment strategies of Franklin ActiveQuant Canadian Fund. What are the risks of investing in the fund? See page 204 for a list of the risks associated with the Fund’s investment in Franklin ActiveQuant Canadian Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: who are seeking a core Canadian equity

fund that employs a quantitative investment strategy to be held primarily outside a registered plan






One year

Three years

Five years

Ten years


Series A 23.10 72.82 127.64 290.55

Series F 11.87 37.40 65.56 149.24



Franklin ActiveQuant U.S. Fund (formerly Franklin Bissett U.S. Focus Fund) Fund details

Type of fund:

U.S. equity

Start date: Series O securities: March 3, 2008

Series A, F and PF securities: June 9, 2017




Yes

Portfolio advisor:




primarily in a diversified portfolio of U.S. securities.


Investment strategies

The Fund: invests in U.S. securities that are carefully

selected based on a quantitative approach uses a pre-determined quantitative screening

model that identifies securities based on different selection criteria chosen by the portfolio advisor. The model incorporates a mix of various historical and projected financial and stock market data


may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in

derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemptions from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 66.


equity risk foreign investment risk smaller companies risk liquidity risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements


As of April 30, 2018, Franklin ActiveQuant U.S. Corporate Class held 49.58% of the Fund and Franklin Bissett Canadian Balanced Fund held 32.12% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are seeking a core U.S. equity fund that

employs a quantitative investment strategy




This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P 500 TR Index. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars.

Distribution policy The Fund distributes any income and realized net capital gains annually in December and may pay distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 22.26 70.17 123.00 279.99

Series F 11.13 35.09 61.50 139.99

Series PF 8.40 26.48 46.42 105.65 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund


Franklin ActiveQuant U.S. Corporate Class (formerly Franklin Bissett U.S. Focus Corporate Class) Fund details

Type of fund:

U.S. equity

Start date: Series A, F and O securities: March 3, 2008





Yes

Portfolio advisor:


Franklin Bissett Investment Management, Calgary, Alberta, is the portfolio advisor of the Underlying Fund



substantially all of its assets in securities of Franklin ActiveQuant U.S. Fund (the “Underlying Fund”).


Investment strategies

The Fund: invests in securities of Franklin ActiveQuant

U.S. Fund, whose investment is long-term capital appreciation by investing primarily in a diversified portfolio of U.S. securities

invests in securities of Franklin ActiveQuant U.S. Fund and therefore the share price of Franklin ActiveQuant U.S. Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin ActiveQuant U.S. Corporate Class

not precisely tracking the unit price of the Underlying Fund.

See page 208 for a full description of the Investment strategies of Franklin ActiveQuant U.S. Fund. What are the risks of investing in the fund? See page 208 for a list of the risks associated with the Fund’s investment of Franklin ActiveQuant U.S. Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: who are seeking a core U.S. equity fund that

employs a quantitative investment strategy planning to hold their investment for a

medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P 500 TR Index. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars.





One year

Three years

Five years

Ten years


Series A 23.42 73.82 129.38 294.51

Series F 11.87 37.40 65.56 149.24

Series PF 8.93 28.14 49.32 112.26 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin Mutual Series At Franklin Mutual Series, we focus on recognizing value that other investors might miss. We believe that despite short-term market fluctuation, cash flow, revenue and the intrinsic value of companies ultimately drive stock prices in the long run. Our goal is to deliver solid, risk-adjusted returns, year in and year out. Over the last 60 years Franklin Mutual Series’ consistent, deep value approach has benefited securityholders with long-term investment horizons. Since 1949, Franklin Mutual Series’ pursuit of value has been the underlying force driving our strategy. We are Opportunistic Value Investors Our core investments are in undervalued stocks with viable catalysts that we believe will change the way the market views their true worth, thus unlocking value for our securityholders. Through bottom-up research, we seek to find value wherever it hides. This approach allows us to find opportunities throughout all parts of the business cycle. We Think and Act like Company Owners Our portfolio managers roll up their sleeves to do their own proprietary research, determined to find the best opportunities the market has overlooked. We aim to be diligent in our analysis and disciplined in our purchases so that we only buy securities trading at a significant discount to what we think they are intrinsically worth. We Strive to Reduce Risk Undervalued stocks are by definition discounted, which we believe reduces risk. In addition, our select investments in distressed securities and merger arbitrage, both natural extensions of our value strategy, tend to be affected less by broad market movements than by the specifics surrounding each particular situation. The Franklin Mutual Series strategy has historically provided our funds with lower volatility than the overall market and has enabled us to deliver strong and more consistent results over the long term. We Uncover Hidden Investment Opportunities We want to identify companies Wall Street may have dismissed due to business uncertainty or complexity that many analysts might find overwhelming to decipher. Our fund managers and analysts use their own proprietary, fundamental research to thoroughly examine each potential investment by combing industry publications, scrutinizing annual reports, and probing company management teams, customers and suppliers.


Franklin Mutual European Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

European equity

Start date: Series A, F, I, O and PF securities: September 28, 2015




Yes

Portfolio advisor:


Sub-advisor:

Franklin Mutual Advisers, LLC, Short Hills, New Jersey


Investment objective Long-term capital appreciation by investing primarily in the equity and debt securities of companies incorporated or having their principal activities in European countries. The fundamental investment objective may only be changed with the approval of a majority of the securityholders at a meeting called for that purpose. Investment strategies For purposes of the Fund’s investments, European countries include: All countries located in Europe; and Those regions of Russia and the former

Soviet Union that are considered part of Europe.

The Fund may also invest up to 10% of its net assets in non-European securities. The Fund: primarily invests in equity securities and debt

securities convertible or expected to be convertible into common or preferred stock of

European companies that the portfolio advisor believes are available at prices less than their actual value based on certain recognised or objective criteria (intrinsic value)

under normal market conditions, the Fund invests its net assets predominantly in the securities of issuers organised under the laws of or whose principal business operations are located in European countries. The Fund currently intends to invest principally in securities of issuers in Europe

normally invests in securities from at least five different countries, although, from time to time, it may invest all of its net assets in a single country


may also seek to invest in the securities of companies involved in mergers, consolidations, liquidations and reorganisations or as to which there exist tender or exchange offers, and may participate in such transactions. To a lesser extent, the Fund may also purchase debt securities, both secured and unsecured, of companies involved in reorganisation or financial restructuring, including low-rated and non-investment grade securities

may also purchase debt securities, including senior or subordinated bank debt obligations where the indebtedness purchased represents indebtedness of a company to a bank and not the securities of the bank. Such debt instruments purchased by the Fund may be in default or which are at substantial risk of default

may hold a portion of its assets in cash, money market securities, direct or indirect U.S. government obligations or money market mutual funds while seeking

Franklin Mutual European Fund


investment opportunities or for defensive purposes

may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund's other investment strategies in a manner considered most appropriate to achieving the Fund's overall investment objectives and enhancing the Fund's returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under "Investments in Derivatives" on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk smaller companies risk foreign investment risk emerging markets risk low-rated security risk interest rate risk regional focus risk regulatory risk large investor risk liquidity risk portfolio management risk series risk derivative risk repurchase/reverse repurchase agreements

risk securities lending risk short selling risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 27.61% of the Fund and Franklin Bissett Canadian Balanced Fund held 14.18% of the Fund.

See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking capital appreciation, which may

occasionally be short term, and to a lesser extent income by investing in undervalued companies of any European country



Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the MSCI Europe Net Return Index. MSCI Europe Net Return Index is an equity-market benchmark that captures large- and mid-capitalization representation across 15 developed-market countries in Europe and covers approximately 85% of the free float-adjusted market capitalization across European developed-markets equity universe. Returns are shown in Canadian-dollar terms. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.

Franklin Mutual European Fund



One year

Three years

Five years

Ten years


Series A 27.09 85.40 149.69 340.74

Series F 14.28 45.02 78.91 179.61

Series I 21.11 66.53 116.62 265.46



Franklin Mutual Global Discovery Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Global equity

Start date:




Series T-USD securities: June 26, 2008



Series A, F, I, O, PF, PFT, T and T-USD securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisor:

Franklin Mutual Advisers, LLC, Short Hills, New Jersey



primarily in equity and debt securities of issuers around the world.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies We describe our fundamental investment philosophy on page 212. While following this basic philosophy, the portfolio advisor selects investments that may be trading below their intrinsic value, which may be reflected in cash flow, book value relative to market value, earnings multiples of comparable securities or other factors.

The Fund: • may hold equities, debt or money market

securities in any proportion, provided that in normal market conditions not less than 65% of its assets (excluding cash and cash equivalents, such as money market securities and direct or indirect U.S. government obligations) are invested in common stock, preferred stock, and debt securities convertible or expected to be convertible into common stock or preferred stock. Debt securities may be rated or unrated and if rated, such rating may range from the very highest to the very lowest

typically engages in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar and will generally limit losses in the event of a decrease in the value of U.S. and foreign currencies relative to the Canadian dollar

• may invest up to 100% of its assets in non-U.S. equity and debt securities, which may include sovereign debt and participation in foreign government debt

• may invest in securities of any size issuer, including small-capitalization companies

• may also purchase debt securities, including senior or subordinated bank debt obligations where the indebtedness purchased represents indebtedness of a company to a bank and not the securities of the bank. Such debt instruments purchased by the Fund may be in default or which are at substantial risk of default

• may invest in securities traded on U.S. or foreign exchanges, the NASDAQ national market or subject to certain restrictions, in the over-the-counter market

Franklin Mutual Global Discovery Fund


may invest in equity or debt securities of companies involved in mergers, consolidations, liquidations and reorganizations

may invest in illiquid securities, or in closed-end fund securities, as permitted by Canadian securities regulations


may hold a portion of its assets in cash, money market securities, direct or indirect U.S. government obligations or money market mutual funds while seeking investment opportunities or for defensive purposes


The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? The investment strategy of this Fund involves the possibility that some investments - specifically, investments in troubled companies - may face substantial loss as a result of the creditworthiness of the troubled company. The portfolio advisor attempts to select only those securities that, based on detailed analysis of actual risk compared to the risk perceived by the market, appear to have strong potential for gain. This Fund also faces the following risks, described on page 2:

equity risk foreign investment risk interest rate risk liquidity risk smaller companies risk low-rated security risk emerging markets risk regulatory risk regional focus risk large investor risk portfolio management risk capital depletion risk (Series PFT, T and T-

USD securities only) derivative risk repurchase/reverse repurchase agreements

risk series risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Mutual Discovery Corporate Class held 21.96% of the Fund. Who should invest in this fund? Investors: • seeking a fund investing in undervalued

securities from around the world • seeking to lower their exposure to the impact



who, in the case of Series PFT, T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan




Distribution policy For Series A, F, I, O and PF securities, the


For Series PFT, T and T-USD securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series PFT, T and T-USD securities.


One year

Three years

Five years

Ten years


Series A 27.30 86.06 150.85 343.38

Series F 15.23 48.00 84.13 191.50

Series I 19.11 60.24 105.60 240.36

Series PF 11.13 35.09 61.50 139.99

Series PFT 11.34 35.75 62.66 142.63

Series T 26.88 84.74 148.53 338.10

Series T-USD 24.15 76.13 133.44 303.76



Franklin Mutual Global Discovery Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

Global equity

Start date:







Series A, F, I, O, PF, T and T-USD securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Franklin Mutual Advisers, LLC, Short Hills, New Jersey is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin Mutual Global Discovery Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin Mutual Global

Discovery Fund, whose investment objective is long-term capital appreciation by investing primarily in equity and debt securities of issuers around the world

invests in securities of Franklin Mutual Global Discovery Fund and therefore the share price of Franklin Mutual Global Discovery Corporate Class rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Mutual Global Discovery Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 216 for a full description of the Investment strategies of Franklin Mutual Global Discovery Fund.

What are the risks of investing in the fund? See page 217 for a list of the risks associated with the Fund’s investment in Franklin Mutual Global Discovery Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk


Who should invest in this fund? Investors: seeking a fund investing in undervalued

securities from around the world to be held primarily outside a registered plan


who, in the case of Series T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan


Franklin Mutual Global Discovery Corporate Class


lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series T and T-USD securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series T and T-USD securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.


Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T and T-USD securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.41 86.39 151.43 344.70

Series F 15.44 48.66 85.29 194.14

Series I 19.22 60.58 106.18 241.69

Series PF 11.34 35.75 62.66 142.63

Series T 26.88 84.74 148.53 338.10

Series T-USD 24.89 78.45 137.51 313.00 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.



Franklin Mutual U.S. Shares Fund Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: U.S. equity

Start date:

Series A securities: February 3, 1997




Series A, F, I, O and T securities of a mutual fund trust


Yes

Portfolio advisor


Sub-advisor: Franklin Mutual Advisers, LLC, Short Hills, New Jersey



primarily in equity and debt securities of U.S. issuers but may also invest in issuers around the world.


While following this basic philosophy, the portfolio advisor selects investments that may be trading below their intrinsic value, which may be reflected in cash flow, book value relative to market value, earnings multiples of comparable securities or other factors.

The Fund: • may hold equities, debt or money market

securities in any proportion, provided that in

normal market conditions not less than 75% of its assets (excluding cash and money market securities) are invested in common stock, preferred stock, and debt securities convertible into common stock or preferred stock. Debt securities may be rated or unrated and if rated, such rating may range from the very highest to the very lowest

typically engages in currency management strategies to hedge the exposure to the impact of changes in currency exchange rates. Hedging will limit the opportunity for gains in the event of an increase in the value of U.S. and foreign currencies relative to the Canadian dollar while protecting from losses in the event of a decrease in the value of U.S. and foreign currencies relative to the Canadian dollar

• may also purchase debt securities, including senior or subordinated bank debt obligations where the indebtedness purchased represents indebtedness of a company to a bank and not the securities of the bank. Such debt instruments purchased by the Fund may be in default or which are at substantial risk of default

may invest in securities traded on U.S. or foreign exchanges, the NASDAQ national market or subject to certain restrictions, in the over-the-counter market

may invest in equity or debt securities of companies involved in mergers, consolidations, liquidations and reorganizations

may invest in illiquid securities, or in closed-end fund securities, as permitted by Canadian securities regulations



Franklin Mutual U.S. Shares Fund



The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? The investment strategy of this Fund involves the possibility that some investments - specifically, investments in troubled companies - may face substantial loss as a result of the creditworthiness of the troubled company. The portfolio advisor attempts to select only those securities that, based on proper analysis of actual risk compared to the risk perceived by the market, appear to have strong potential for gain. This Fund also faces the following risks, described on page 2: equity risk foreign investment risk interest rate risk liquidity risk smaller companies risk low-rated security risk regional focus risk regulatory risk large investor risk portfolio management risk capital depletion risk (Series T securities

only) derivative risk

repurchase/reverse repurchase agreements risk

series risk short selling risk securities lending risk cyber security risk Who should invest in this fund? Investors: • seeking a fund investing in undervalued securities primarily in the U.S. seeking to lower their exposure to the impact

of currency fluctuations relative to the Canadian dollar.


• who, in the case of Series T securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy For Series A, F, I and O securities, the Fund

distributes any income and realized net capital gains annually in December and may make distributions at other times during the year.

For Series T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash



distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 26.99 85.07 149.11 339.42

Series F 15.33 48.33 84.71 192.82

Series I 19.22 60.58 106.18 241.69

Series T 27.62 87.06 152.59 347.34



Franklin Mutual U.S. Shares Corporate Class Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager. Type of fund:

U.S. equity




Series A, F, I, O and T securities of a mutual fund corporation


Yes

Portfolio advisor:


Sub-advisor:

Franklin Mutual Advisers, LLC, Short Hills, New Jersey is the sub-advisor of the Underlying Fund



substantially all of its assets in securities of Franklin Mutual U.S. Shares Fund (the “Underlying Fund”).

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund: invests in securities of Franklin Mutual U.S.

Shares Fund, whose investment objective is long-term capital appreciation by investing primarily in equity and debt securities of U.S. issuers but may also invest in issuers around the world

invests in securities of Franklin Mutual U.S. Shares Fund and therefore the share price of Franklin Mutual U.S. Shares Corporate Class

rises and falls with the unit price of the Underlying Fund. There may be performance lags or tracking errors with respect to the Fund’s investment in the Underlying Fund which could result in the share price of Franklin Mutual U.S. Shares Corporate Class not precisely tracking the unit price of the Underlying Fund.

See page 221 for a full description of the Investment strategies of Franklin Mutual U.S. Shares Fund. What are the risks of investing in the fund? See page 222 for a list of the risks associated with the Fund’s investment in Franklin Mutual U.S. Shares Fund. The Fund has these additional risks: tracking risk corporate class fund risk tax risk


Who should invest in this fund? Investors: seeking a fund investing in undervalued

securities primarily in the U.S. to be held primarily outside a registered plan




Franklin Mutual U.S. Shares Corporate Class




• For Series T securities, the Fund may

distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series T securities, any annual payments consisting of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.


Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 28.04 88.38 154.91 352.62

Series F 16.38 51.64 90.51 206.03

Series I 20.06 63.22 110.82 252.25

Series T 27.30 86.06 150.85 343.38



Franklin Templeton Multi-Asset Solutions Franklin Templeton Multi-Asset Solutions (FTMAS) is a global group of multi-asset experts focused on creating total portfolio solutions integrated with risk management, designed to help investors achieve their financial goals in a variety of market conditions through multi-asset strategies that leverage Franklin Templeton’s best thinking around the globe. The team has been dedicated to managing multi-asset portfolios for over 20 years, specializing in strategic asset allocation and tactical positioning, fundamental and quantitative research, and active implementation and risk management. A Disciplined Investment Process By combining capital market expertise and a disciplined investment process, we believe a multi-asset portfolio can help investors address complex risk management and investment challenges.

Strategic asset allocation and tactical positioning: The Investment Strategy and Research Committee (ISRC) begins with a top-down view across asset classes and regions. These views are then connected and synthesized with the bottom-up sector and segment insights of the global investment teams at Franklin Templeton. The goal of the ISRC is to recommend exposures that are deliberate, diversified and appropriately scaled for implementation in FTMAS funds. Fundamental and quantitative research: Research is rigorously performed by three distinct teams of specialists:

The manager research team assesses and monitors the managers and strategies that are used within many FTMAS funds. This team’s focus is on understanding and communicating the drivers of risk and return – the personality of each fund – and identifying competitive advantages and sustainable drivers of performance.

Four asset class research teams -- macro, equity, fixed income, and alternatives – each follow a continuous cycle of analysis and view development. They use quantitative tools to track and assess markets and risks, build robust models. Their findings and policy portfolios are presented to the Investment Strategy and Research Committee.

The quantitative research: a team of analysts dedicated to the pursuit of unique sources of return, strategic diversification and calibrated volatility management.

Active implementation with integrated risk management: Each portfolio management team aims to adopt the global views set by the Investment Strategy and Research Committee, sizing, scaling and implementing those views according to their individual fund’s mandate guidelines. Each portfolio manager’s research is strengthened by a formalized collaboration with Franklin Templeton’s Investment Risk Management Group — a team of specialized risk professionals aligned by asset class and strategy. To help ensure appropriate objectivity, the Investment Risk Management Group does not have direct reporting lines to portfolio management but instead reports directly to the Chairman and Chief Executive Officer of Franklin Templeton.


FTMAS manages total portfolio solutions around the world and is embedded within Franklin Templeton Investments’ global integrated platform of more than 650 investment professionals.


Franklin Quotential Balanced Growth Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Strategic Asset Allocation Portfolio

Start date:

Series A, F, I, O and T securities: August 19, 2002

Series FT securities: February 1, 2006

Series OT securities: June 14, 2007



Series A, F, FT, I, O, OT, PF, PFT and T securities of a mutual fund trust


Yes

Portfolio advisor:

Fiduciary Trust Company of Canada, Toronto, Ontario


Investment objective 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 capital appreciation.


Investment strategies We describe our fundamental investment philosophy on page 226. The Fund: • has, under normal market conditions, an

optimal asset mix of 30-55% fixed income and 45-70% equities. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of income and equity securities

• invests in mutual funds managed by the

Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

• may invest up to 20% of the Fund’s net assets in unaffiliated exchange-traded funds

• may engage, from time to time, in currency management strategies to hedge the risk of changes in currency exchange rates

• may, from time to time, invest in bond and equity futures, for non-hedging purposes, to obtain exposure to financial markets and for hedging purposes, to reduce the risk position of the Fund


may, from time to time, hold fixed income and/or equity securities temporarily to facilitate in-kind transactions with Underlying Funds • may engage in securities lending, repurchase

and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

Franklin Quotential Balanced Growth Portfolio


As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada.


• asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series FT, OT, PFT

and T securities only) • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk

• cyber security risk

As of April 30, 2018, one securityholder held 17.46% of the Fund.

See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a core balanced holding well-

diversified by asset class, investment style, geography and market capitalization

planning to hold their investment for the medium to long-term

who, in the case of Series FT, OT, PFT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan


Distribution policy • For Series A, F, I, O and PF securities, the


• For Series FT, OT, PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.

Franklin Quotential Balanced Growth Portfolio


Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, PFT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.26 76.46 134.02 305.08

Series F 12.60 39.72 69.62 158.48

Series FT 12.60 39.72 69.62 158.48

Series I 16.80 52.96 92.83 211.31

Series PF 9.24 29.13 51.06 116.22

Series PFT 9.35 29.46 51.64 117.54

Series T 24.15 76.13 133.44 303.76 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.


Franklin Quotential Balanced Growth Corporate Class Portfolio Fund details Series I and V are presently capped (closed to new investors). Investors who currently own securities of these series may continue to purchase additional securities of these series. These series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:


Series FT, OT and T securities: September 27, 2007



Series V securities: February 26, 2015


Series A, F, FT, I, O, OT, PF, T and V securities of a mutual fund corporation


Yes

Portfolio advisor:




capital appreciation by investing in a diversified mix of equity and income mutual funds, with a bias towards capital appreciation.


Investment strategies We describe our fundamental investment philosophy on page 226. The Portfolio: • has, under normal market conditions, an

optimal asset mix of 30-55% fixed income and 45-70% equities. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic

conditions and relative value of income and equity securities

• invests in mutual funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

• may invest up to 20% of the Fund’s net assets in unaffiliated exchange-traded funds




may, from time to time, hold fixed income and/or equity securities temporarily to facilitate in-kind transactions with Underlying Funds • may engage in securities lending, repurchase

and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.





• asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series FT, OT, T and V

securities only) • securities lending risk • series risk • tax risk • corporate class fund risk

• cyber security risk See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking a core balanced holding well-



who, in the case of Series FT, OT, T and V securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series FT, OT, T and V securities, the Fund may distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT, T and V securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment



performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, T and V securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 24.36 76.80 134.60 306.40

Series F 12.81 40.38 70.78 161.12

Series FT 12.71 40.05 70.20 159.80

Series I 16.80 52.96 92.83 211.31

Series PF 9.45 29.79 52.22 118.86

Series T 24.26 76.46 134.02 305.08

Series V 16.38 51.64 90.51 206.03 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin Quotential Balanced Income Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:

Series A, F, I, O and T securities: August 19, 2002

Series FT securities: February 1, 2006

Series OT securities: June 14, 2007





Yes

Portfolio advisor:




capital appreciation by investing in a diversified mix of equity and income mutual funds, with a bias towards income.




may invest up to 20% of the Fund’s net assets in unaffiliated exchange-traded funds


may, from time to time, invest in bond and equity futures, for non-hedging purposes, to obtain exposure to financial markets and for hedging purposes, to reduce the risk position of the Fund


may, from time to time, hold fixed income and/or equity securities temporarily to facilitate in-kind transactions with Underlying Funds

• may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities

Franklin Quotential Balanced Income Portfolio


regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund? • asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series FT, OT, PFT

and T securities only) • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk • cyber security risk

As of April 30, 2018, one securityholder held 19.83% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a core balanced holding well-




This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • For Series A, F, I, O and PF securities, the







One year

Three years

Five years

Ten years


Series A 22.26 70.17 123.00 279.99

Series F 10.50 33.10 58.02 132.07

Series FT 10.61 33.43 58.60 133.39

Series I 16.38 51.64 90.51 206.03

Series PF 8.82 27.81 48.74 110.94

Series PFT 8.82 27.81 48.74 110.94

Series T 22.16 69.84 122.42 278.66



Franklin Quotential Balanced Income Corporate Class Portfolio Fund details Series I and V are presently capped (closed to new investors). Investors who currently own securities of these series may continue to purchase additional securities of these series. These series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:




Series PF and V securities: February 26, 2015


Series A, F, FT, I, O, OT, PF, T and V securities of a mutual fund corporation


Yes

Portfolio advisor:


What does the fund invest in? Investment objective 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.













regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada.


• asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series FT, OT, T and

V securities only) • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk • tax risk • corporate class fund risk • cyber security risk


Investors: seeking a core balanced holding well-



who, in the case of Series FT, OT, T and V securities, are seeking regular monthly cash flows from investments held outside a registered plan



• For Series FT, OT, T and V securities, the Fund may also distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT, T and V securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.




performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, T and V securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 22.37 70.51 123.58 281.31

Series F 10.71 33.76 59.18 134.71

Series FT 10.71 33.76 59.18 134.71

Series I 16.38 51.64 90.51 206.03

Series PF 8.82 27.81 48.74 110.94

Series T 22.16 69.84 122.42 278.66



Franklin Quotential Diversified Equity Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund: Strategic Asset Allocation Portfolio

Start date:


Series OT and T securities: June 14, 2007




Series A, F, I, O, OT, PF, PFT, T and T-USD securities of a mutual fund trust


Yes

Portfolio advisor:




primarily in a diversified mix of equity mutual funds.


optimal asset mix of 85-100% equities and 0-15% fixed income. 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

invests in mutual funds managed by the







may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.

Franklin Quotential Diversified Equity Portfolio


As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund?

• asset allocation risk • equity risk • foreign investment risk • portfolio management risk • smaller companies risk • liquidity risk • large investor risk • emerging markets risk • dividend-oriented companies risk • tracking risk • interest rate risk • credit risk • derivative risk • inflation linked bonds risk • low-rated securities risk • reinvestment risk • capital depletion risk (Series OT, PFT, T and

T-USD securities only) • repurchase/reverse repurchase agreements


• cyber security risk As of April 30, 2018, one securityholder held 12.06% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a core equity holding well-diversified

by investment style, geography and market capitalization


who, in the case of Series OT, PFT, T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy For Series A, F, I, O and PF securities, the


For Series OT, PFT, T and T-USD securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell



us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series OT, PFT, T and T-USD securities.


One year

Three years

Five years

Ten years


Series A 27.09 85.40 149.69 340.74

Series F 15.44 48.66 85.29 194.14

Series I 18.38 57.93 101.53 231.12

Series PF 10.19 32.11 56.28 128.11

Series PFT 10.29 32.44 56.86 129.43

Series T 27.20 85.73 150.27 342.06

Series T-USD 26.88 84.74 148.53 338.10 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund.


Franklin Quotential Diversified Equity Corporate Class Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:






Series A, F, FT, I, O, OT, PF, T and T-USD securities of a mutual fund corporation


Yes

Portfolio advisor:




primarily in a diversified mix of equity mutual funds.


optimal asset mix of 85-100% equities and 0-15% fixed income. 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







may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.




regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub- Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada.

What are the risks of investing in the fund? • asset allocation risk • equity risk • foreign investment risk • portfolio management risk • smaller companies risk • liquidity risk • large investor risk • emerging markets risk • dividend-oriented companies risk • tracking risk • interest rate risk • credit risk • derivative risk • inflation linked bonds risk • low-rated securities risk • reinvestment risk • capital depletion risk (Series OT, PFT, T and

T-USD securities only) • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk • tax risk • corporate class fund risk • cyber security risk



Investors: seeking a core equity holding well-diversified

by investment style, geography and market capitalization


who, in the case of Series FT, OT, T and T-USD securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series FT, OT, T and T-USD securities, the Fund may distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT, T and T-USD securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.




performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, T and T-USD securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 27.20 85.73 150.27 342.06

Series F 15.65 49.32 86.45 196.78

Series FT 14.81 46.67 81.81 186.22

Series I 18.17 57.27 100.37 228.48

Series PF 10.08 31.78 55.70 126.79

Series T 27.30 86.06 150.85 343.38

Series T-USD 26.67 84.08 147.37 335.45 Please see Fund expenses indirectly borne by investors on page 67 for the required assumptions used in this table, which do not reflect the actual performance of the Fund. Additional Information Investors switching between Corporate Class Funds will trigger a capital gain or loss at the time of the switch.


Franklin Quotential Diversified Income Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:

Series A and F securities: June 26, 2008

Series FT, I, O and T securities: February 17, 2003






Yes

Portfolio advisor:




capital appreciation by investing primarily in a diversified mix of income and bond mutual funds.



invests in mutual funds managed by the











regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund?

• asset allocation risk • interest rate risk • equity risk • portfolio management risk • credit risk • foreign investment risk • dividend-oriented companies risk • emerging markets risk • derivative risk • reinvestment risk • low-rated securities risk • inflation linked bonds risk • liquidity risk • large investor risk • tracking risk • REIT risk • smaller companies risk • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk • capital depletion risk (Series FT, OT, PFT

and T securities only) • cyber security risk

As of April 30, 2018, one securityholder held 13.01% of the Fund. See page 2 for a full discussion of these risks.

Who should invest in this fund? Investors: seeking a core high income holding well

diversified by asset class, investment style, and geography




Distribution policy • For Series A, F, I, O and PF securities, the







One year

Three years

Five years

Ten years


Series A 20.69 65.21 114.30 260.18 Series F 10.82 34.09 59.76 136.03 Series FT 10.82 34.09 59.76 136.03 Series I 17.33 54.62 95.73 217.91 Series PF 8.93 28.14 49.32 112.26

Series PFT 8.93 28.14 49.32 112.26

Series T 20.58 64.88 113.72 258.85



Franklin Quotential Diversified Income Corporate Class Portfolio Fund details Series I and V are presently capped (closed to new investors). Investors who currently own securities of these series may continue to purchase additional securities of these series. These series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:


Start date:





Series PFT and V securities: February 26, 2015


Series A, F, FT, I, O, OT, PF, PFT, T, T-USD and V securities of a mutual fund corporation


Yes

Portfolio advisor:




capital appreciation by investing primarily in a diversified mix of income and bond mutual funds.


Investment strategies We describe our fundamental investment philosophy on page 226. The Fund: has, under normal market conditions, an












regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund? • asset allocation risk • interest rate risk • equity risk • portfolio management risk • credit risk • foreign investment risk • dividend-oriented companies risk • emerging markets risk • derivative risk • reinvestment risk • low-rated securities risk • inflation linked bonds risk • liquidity risk • large investor risk • tracking risk • REIT risk • smaller companies risk • repurchase/reverse repurchase agreements

risk • securities lending risk • series risk • capital depletion risk (Series FT, OT, PFT

and T securities only) • corporate class fund risk • tax risk


Who should invest in this fund? Investors: seeking a core high income holding well

diversified by asset class, investment style, and geography


who, in the case of Series FT, OT, PFT, T, T-USD and V securities, are seeking regular monthly cash flows from investments held outside a registered plan

This Fund is for investors willing to accept low investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk. Distribution policy • The Fund may pay ordinary taxable dividends


• For Series FT, OT, PFT, T, T-USD and V securities, the Fund may distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT, OT, PFT, T, T-USD and V securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.




performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT, OT, PFT, T, T-USD and V securities.


One year

Three years

Five years

Ten years


Series A 20.79 65.54 114.88 261.50

Series F 10.82 34.09 59.76 136.03

Series FT 10.82 34.09 59.76 136.03

Series I 17.64 55.61 97.47 221.88

Series PF 9.03 28.47 49.90 113.58

Series PFT 8.93 28.14 49.32 112.26

Series T 20.69 65.21 114.30 260.18

Series T-USD 20.48 64.55 113.14 257.53



Franklin Quotential Fixed Income Portfolio Fund details

Type of fund:


Start date: Series A, F, O and PF securities: November 14, 2016




Yes

Portfolio advisor:



Investment objective current income and some long-term capital

appreciation by investing primarily in a diversified mix of Canadian and foreign fixed income mutual funds.


Investment strategies We describe our fundamental investment philosophy on page 226. The Fund: • will employ a tactical asset allocation

strategy across multiple fixed income sectors and regions both domestically and abroad, also seeking to diversify its holdings by market capitalization, credit quality, duration and investment style.

• has, under normal market conditions, an optimal asset mix of 25%-75% domestic fixed income and 25% to 75% foreign fixed income. The portfolio advisor may review and adjust the optimal asset mix, in its sole discretion, depending on economic conditions and relative value of foreign versus domestic fixed income securities.

• invests in mutual funds managed by the Manager or third parties. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

• may invest up to 20% of the Fund's net assets in unaffiliated exchange-traded funds

• may engage, from time to time, in currency management strategies to hedge the risk of changes in currency exchange rates. These currency management strategies may include investing in currency forward contracts, exchange traded currency options, foreign exchange futures and options on foreign exchange futures

• may, from time to time, invest in bond futures, for non-hedging purposes, to obtain exposure to financial markets and for hedging purposes, to reduce the risk position of the Fund


• may, from time to time, hold fixed income securities temporarily to facilitate in-kind transactions with Underlying Funds






• asset allocation risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • derivative risk • inflation linked bonds risk • emerging markets risk • low-rated securities risk • large investor risk • liquidity risk • reinvestment risk • tracking risk • repurchase/reverse repurchase agreements


• cyber security risk See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a core fixed income holding well

diversified by sector, credit quality, duration, investment style, and geography



Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the Custom Franklin Quotential Fixed Income Benchmark. Custom Franklin Quotential Fixed Income Benchmark is a blended index composed of the FTSE TMX Canada Universe Bond Index (50%) and Bloomberg Barclays Multiverse Bond Index (100% Hedged into CAD, 50%). FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. Bloomberg Barclays Multiverse Bond Index (100% Hedged into CAD) is a broad-based global fixed income index including investment- and non-investment-grade securities. It includes a wide range of standard and customized subindices by sector, quality and country. Index returns are hedged to the Canadian dollar, and are shown in Canadian-dollar terms.



Distribution policy The Fund distributes any income on the last business day of each month (except in December, when it may be distributed earlier) and distributes any realized net capital gains annually in December and may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.


One year

Three years

Five years

Ten years


Series A 15.54 48.99 85.87 195.46

Series F 9.45 29.79 52.22 118.86

Series PF 8.40 26.48 46.42 105.65



Franklin Quotential Growth Portfolio Fund details Series I is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager

Type of fund:


Start date:

Series A, F, I and O securities: August 19, 2002

Series OT and T securities: June 14, 2007



Series A, F, I, O, OT, PF, PFT and T securities of a mutual fund trust


Yes

Portfolio advisor:




primarily in a diversified mix of equity mutual funds, with additional stability derived from investing in income mutual funds.




invests in mutual funds managed by the Manager. The portfolio advisor may, in its

sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds may invest up to 20% of the Fund’s net assets in unaffiliated exchange-traded funds










• asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series OT, PFT and

T securities only) • repurchase/reverse repurchase agreements





by asset class, investment style, geography and market capitalization


who, in the case of Series OT, PFT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan



For Series OT, PFT and T securities, the Fund distributes any income and/or return of capital on the last business day of each month (except in December, when it may be distributed earlier) and distributes any income and/or realized capital gains annually in December. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.




Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series OT, PFT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 25.31 79.77 139.83 318.29

Series F 13.86 43.69 76.59 174.33

Series I 16.59 52.30 91.67 208.67

Series PF 9.77 30.78 53.96 122.82

Series PFT 9.98 31.45 55.12 125.47

Series T 25.41 80.11 140.41 319.61



Franklin Quotential Growth Corporate Class Portfolio Fund details


Type of fund:


Start date:


Series FT and T securities: September 27, 2007




Series A, F, FT, I, O, PF and T securities of a mutual fund corporation


Yes

Portfolio advisor:




primarily in a diversified mix of equity mutual funds, with additional stability derived from investing in income mutual funds.




• invests in mutual funds managed by the Manager. The portfolio advisor may, in its

sole discretion, modify the optimal asset mix,

change the percentage holdings of any fund, remove any fund or add other funds

may invest up to 20% of the Fund’s net assets in unaffiliated stock funds





• may engage in securities lending, repurchase and reverse repurchase transactions as well as investing in derivatives including forward contracts, futures contracts, options contracts (calls or puts) and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investments in Derivatives” on page 65.



As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund? • asset allocation risk • equity risk • foreign investment risk • interest rate risk • portfolio management risk • credit risk • tracking risk • emerging markets risk • smaller companies risk • low-rated securities risk • dividend-oriented companies risk • inflation linked bonds risk • derivative risk • reinvestment risk • liquidity risk • large investor risk • capital depletion risk (Series FT, OT, T and

V securities only) • repurchase/reverse repurchase agreements

risk • securities lending risk

• series risk • tax risk • corporate class fund risk • cyber security risk






who, in the case of Series FT and T securities, are seeking regular monthly cash flows from investments held outside a registered plan



• For Series FT and T securities, the Fund may distribute any return of capital on the last business day of each month (except in December, when it may be distributed earlier). For Series FT and T securities, any annual payments of ordinary taxable dividends and/or capital gains dividends may only be reinvested in additional securities of the Fund and may not be paid in cash.

Distributions/dividends are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.



Returns of capital do not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. Returns of capital will reduce the amount of your original investment and may result in the return to you of your original investment. A return of capital made to you is not immediately taxable in your hands but will reduce the adjusted cost base of the related securities. You should consult your tax advisor regarding the tax implications of receiving return of capital on Series FT and T securities. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series A 25.41 80.11 140.41 319.61

Series F 13.86 43.69 76.59 174.33

Series FT 13.86 43.69 76.59 174.33

Series I 16.70 52.63 92.25 209.99

Series PF 9.77 30.78 53.96 122.82



Private Wealth Pools Fiduciary Trust Company of Canada (FTCC) is an independent, federally regulated trust company within Franklin Templeton Investments Canada (FTIC) that specializes in meeting the long-term investment goals of qualified Canadian clients. FTCC believes that its clients' interests are best served by working with their advisors to identify a strategic asset mix that is closely aligned to their long-term investment goals and risk tolerance. With strategic asset mix as the cornerstone, FTCC aims to add value by tactically adjusting portfolio exposures to exploit relative valuation differences between various investments at any given time. In doing so, FTCC leverages the global research and investment capabilities of FTIC to create portfolios that are diversified by asset class, market capitalization and investment style.


FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018) Fund details

Type of fund:


Start date: Series O securities: April 24, 2017



Series O and PF securities of a mutual fund trust


Yes

Portfolio advisor:


Sub-advisors:

Canadian fixed income and equity portion: Franklin Bissett Investment Management, Calgary, Alberta

U.S. equity portion: Fiduciary Trust International of California, Los Angeles, California



capital appreciation by investing in a diversified mix of equity and income securities, with a bias towards capital appreciation.


Investment strategies We describe our fundamental investment philosophy on page 261. The Fund: • has, under normal market conditions, an


• may also invest in mutual funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

• may invest up to 20% of the Fund’s net assets in exchange-traded funds





As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under



the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada.


• equity risk • foreign investment risk • interest rate risk • smaller companies risk • liquidity risk • emerging markets risk • asset allocation risk • portfolio management risk • large investor risk • derivative risk • repurchase/reverse repurchase agreements

risk • securities lending risk • cyber security risk As of April 30, 2018, one securityholder held 55.01% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund? Investors: seeking a core balanced holding well-



This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a

portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s benchmark which is comprised of FTSE TMX Canada 91 Day T-Bill Index (2%), FTSE TMX Canada Universe Bond Index (38%), S&P TSX Composite TR Index (20%), S&P 500 Index (20%) and MSCI EAFE Index (20%). FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. MSCI EAFE TR Index measures the total return (dividends are reinvested) of equity securities in Europe, Australia and the Far East. Index returns are shown in Canadian dollars. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year.

Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash



distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors based on $1,000 initial investment (in $)

One year

Three years

Five years

Ten years


Series PF 10.40 32.77 57.44 130.75



FT Balanced Income Pool (to be renamed FT Balanced Income Private Wealth Pool effective June 1, 2018) Fund details

Type of fund:







Yes

Portfolio advisor:


Sub-advisors:




capital appreciation by investing in a diversified mix of equity and income securities, with a bias towards income.



may also invest in mutual funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix,

change the percentage holdings of any fund, remove any fund or add other funds

may invest up to 20% of the Fund’s net assets in exchange-traded funds





As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each



qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada. What are the risks of investing in the fund? • interest rate risk • equity risk • foreign investment risk • smaller companies risk • liquidity risk • emerging markets risk • asset allocation risk • portfolio management risk • large investor risk • derivative risk • repurchase/reverse repurchase agreements

risk • securities lending risk • cyber security risk See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: seeking a core balanced holding well-




Reference index description The Fund’s risk classification is based on the Fund’s benchmark which is comprised of FTSE TMX Canada 91 Day T-Bill Index (2%), FTSE TMX Canada Universe Bond Index (58%), S&P TSX Composite TR Index (13%), S&P 500 Index (13%) and MSCI EAFE Index (14%). FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. MSCI EAFE TR Index measures the total return (dividends are reinvested) of equity securities in Europe, Australia and the Far East. Index returns are shown in Canadian dollars. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.




One year

Three years

Five years

Ten years


Series PF 10.50 33.10 58.02 132.07



FT Growth Pool (to be renamed FT Growth Private Wealth Pool effective June 1, 2018) Fund details

Type of fund:







Yes

Portfolio advisor:


Sub-advisors:


U.S. equity portion: Fiduciary Trust International of California, Los Angeles, California



primarily in a diversified mix of equity securities, with additional stability derived from investing in income securities.




may also invest in mutual funds managed by the Manager. The portfolio advisor may, in its sole discretion, modify the optimal asset mix, change the percentage holdings of any fund, remove any fund or add other funds

may invest up to 20% of the Fund’s net assets in exchange-traded funds





As an exception to standard investment restrictions for mutual funds, the Fund has received permission from the Canadian securities regulators to invest up to 10% of its net assets, taken at market value at the time of investment, in aggregate, in securities of Franklin Templeton Investment Funds sub-funds (each a "FTIF Sub-Fund"). The FTIF Sub-Funds are managed by an affiliate of the Manager and organized under the laws of Luxembourg as a Société d’Investissement à Capital Variable, an open-end investment company. The FTIF Sub-Funds each



qualify as a UCITS, an undertaking for collective investment in transferable securities, and are distributed under a prospectus in several European and other countries. As part of our investment strategy, investing in the FTIF Sub-Funds gives the Fund greater opportunities for diversification according to asset class, investment style, geography, sector weighting and market capitalization. The FTIF Sub-Funds are not subject to Canadian securities regulation. However, the FTIF Sub-Funds are subject to investment restrictions and practices that are substantially similar to those that govern the Fund in Canada.


• equity risk • foreign investment risk • interest rate risk • smaller companies risk • liquidity risk • emerging markets risk • asset allocation risk • portfolio management risk • large investor risk • derivative risk • repurchase/reverse repurchase agreements

risk • securities lending risk • cyber security risk As of April 30, 2018, one securityholder held 10.28% of the Fund. See page 2 for a full discussion of these risks.





This Fund is for investors willing to accept low to medium investment risk for that part of their portfolio. However, this Fund could be used in a portfolio whose overall investment risk may be lower or higher than this individual part. Please

see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s benchmark which is comprised of FTSE TMX Canada 91 Day T-Bill Index (2%), FTSE TMX Canada Universe Bond Index (18%), S&P TSX Composite TR Index (25%), S&P 500 Index (25%) and MSCI EAFE Index (30%). FTSE TMX Canada Universe Bond Index tracks the total return for all federal, provincial, municipal and corporate bonds issued by Canadian issuers that have a maturity of over one year. S&P/TSX Composite TR Index measures the total return (dividends are reinvested) of the largest Canadian companies (by market capitalization), listed on the TSX. S&P 500 TR Index measures the total return (dividends are reinvested) of 500 of the top publicly-traded companies in leading industries of the U.S. market. Index returns are shown in Canadian dollars. MSCI EAFE TR Index measures the total return (dividends are reinvested) of equity securities in Europe, Australia and the Far East. Index returns are shown in Canadian dollars. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may make distributions at other times during the year. Annual distributions consisting of income and capital gains may only be reinvested in additional securities of the Fund and may not be paid in cash. The Fund may make distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information.




One year

Three years

Five years

Ten years


Series PF 11.24 35.42 62.08 141.31



Franklin Templeton Canadian Large Cap Fund Fund details Series O is presently capped (closed to new investors). Investors who currently own securities of this series may continue to purchase additional securities of this series. This series may become available for purchase by new investors at the discretion of the Manager.

Type of fund:

Canadian large cap equity

Start date: Series O securities: June 27, 2008




Yes

Portfolio advisor:


Sub-advisor:

Foyston, Gordon & Payne Inc., Toronto, Ontario



primarily in a diversified portfolio of large capitalization Canadian equity securities.

The fundamental investment objective may only be changed with the approval of a majority of securityholders at a meeting called for that purpose. Investment strategies The Fund’s sub-advisor employs a bottom-up value-oriented approach to investments based upon detailed internal, fundamental research. When considering investments, the primary concern is to select quality companies acquired at reasonable valuations. The Fund: seeks investments in companies that have

solid business prospects, financial strength, quality management, and conservatively priced equity securities

under normal market conditions the Fund will primarily invest in large cap companies (generally those with a market capitalization

of more than $4 billion at the time of purchase) but may also invest in mid-cap companies (generally those with a market capitalization between $0.8 billion and $4 billion at the time of purchase) and small-cap equities (generally those with a market capitalization of less than $0.8 billion at the time of purchase)



may engage in securities lending, repurchase and reverse repurchase transactions as well as invest in derivatives including forward contracts, calls, puts and swaps (as described on pages 64 to 65). These transactions and investments in derivatives will be used in conjunction with the Fund’s other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objectives and enhancing the Fund’s returns. Such investments are permitted by securities regulations and the exemption from certain derivative rules received by the Fund and described under “Investment in Derivatives” on page 65.

The Fund may engage in a limited amount of short selling. These transactions will be used with the other investment strategies in a manner considered most appropriate to achieving the Fund’s overall investment objective and enhancing the Fund’s returns. See “Short selling” on page 65 for more information. What are the risks of investing in the fund? equity risk smaller companies risk liquidity risk



concentration risk foreign investment risk large investor risk portfolio management risk derivative risk repurchase/reverse repurchase agreements

risk short selling risk securities lending risk cyber security risk As of April 30, 2018, Franklin Quotential Balanced Growth Portfolio held 42.00% of the Fund, Franklin Quotential Balanced Income Portfolio held 14.07% of the Fund, Franklin Quotential Balanced Growth Portfolio Corporate Class held 11.07% of the Fund and Franklin Quotential Growth Portfolio held 10.78% of the Fund. See page 2 for a full discussion of these risks. Who should invest in this fund?

Investors: seeking a core Canadian large cap fund planning to hold their investment for the

medium to long term This Fund is for investors willing to accept medium investment risk for that part of their portfolio. However, this Fund could be used in a

portfolio whose overall investment risk may be lower or higher than this individual part. Please see “Investment risk classification methodology” on page 66 for a description of how we classify this Fund’s investment risk.

Reference index description The Fund’s risk classification is based on the Fund’s returns and the return of Fund’s benchmark which is the S&P/TSX Composite PR Index. S&P/TSX Composite PR Index measures the return of the largest Canadian companies, in terms of three-year average quoted market value, listed on the TSX. Distribution policy The Fund distributes any income and realized net capital gains annually in December and may pay distributions at other times during the year. Distributions are automatically reinvested in additional securities of the Fund, unless you tell us in writing that you prefer to receive cash distributions. Please see page 66 for more information. Fund expenses indirectly borne by investors Please see Fund expenses indirectly borne by investors on page 67.


Glossary Book value The cost of your securities at the time you purchased them or received them as a distribution or dividend. The book value of your total investment in securities of a series of a Fund is calculated as follows:

The cost of your initial investment Plus the cost of any additional purchases

Plus reinvested distributions or dividends

Plus, for a Corporate Class Fund, the adjusted cost base of any securities of another Corporate Class Fund that were switched into the Corporate Class Fund

Minus the capital returned in any distributions

Minus the ACB of any previous redemptions

Minus, for a Corporate Class Fund, the adjusted cost base of any securities of the Corporate Class Fund that were switched into another Corporate Class Fund

The adjusted cost base (ACB) of your securities of a Fund is determined by dividing the book value of your total investment in Fund by the number of securities of that series of that Fund that you own. Capping a Fund or series of a Fund When we cap a Fund or series of a Fund, we do not allow new investors to purchase securities of the Fund or securities of the series of the Fund which is being capped. We do, however, permit existing investors to purchase additional securities of the Fund or series of the Fund. A new investor is an investor who, at the time of capping, is not an investor in the Fund or series of Fund that is being capped. We reserve the right to re-open a Fund, or series of a Fund at any time. Class Franklin Templeton Corporate Class Ltd. currently offers 29 classes of convertible, special securities, each such class referred to within this prospectus as a Corporate Class Fund. Franklin Templeton Corporate Class Ltd. may issue additional classes of securities. Each Corporate Class Fund tracks a separate portfolio of assets owned by Franklin Templeton Corporate Class Ltd. Currently, each Corporate Class Fund is divided into three separate series of securities (designated as Series A, F and O). Some of the Corporate Class Funds are also available in FT, I, OT, PF, PFT, T, T-USD and V. Each Corporate Class Fund may be divided into additional series of securities. Closing a Fund or series of a Fund When we close a Fund or series of a Fund, we do not allow any new purchases of securities of the Fund or securities of the series of the Fund which is being closed. We reserve the right to re-open a Fund, or series of a Fund at any time.


Corporate Class Funds Refers to one or more of the following Funds that are all classes of securities issued by Franklin Templeton Corporate Class Ltd. The Corporate Class Funds are:

Templeton Asian Growth Corporate Class Templeton Emerging Markets Corporate Class Templeton Frontier Markets Corporate Class Templeton Global Smaller Companies Corporate Class Templeton Growth Corporate Class Templeton International Stock Corporate Class Franklin Global Growth Corporate Class Franklin U.S. Opportunities Corporate Class Franklin U.S. Monthly Income Corporate Class Franklin U.S. Monthly Income Hedged Corporate Class Franklin U.S. Rising Dividends Corporate Class Franklin U.S. Rising Dividends Hedged Corporate Class Franklin Bissett Canadian All Cap Balanced Corporate Class Franklin Bissett Canadian Balanced Corporate Class Franklin Bissett Canadian Dividend Corporate Class Franklin Bissett Canadian Equity Corporate Class Franklin Bissett Dividend Income Corporate Class Franklin Bissett Energy Corporate Class Franklin Bissett Money Market Corporate Class Franklin Bissett Small Cap Corporate Class Franklin ActiveQuant Canadian Corporate Class (formerly Franklin Bissett All Canadian Focus

Corporate Class) Franklin ActiveQuant U.S. Corporate Class (formerly Franklin Bissett U.S. Focus Corporate

Class) Franklin Mutual Global Discovery Corporate Class Franklin Mutual U.S. Shares Corporate Class Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Growth Corporate Class Portfolio

Deferred sales charge option Deferred sales charge is a type of purchase option for Series A (including A (Hedged)) and T (including T-USD) securities. Under this purchase option, at the time of sale, your full purchase amount is invested in the Fund and we pay your Dealer a sales commission of 5% of the amount you invest. You will not pay a redemption fee to us unless you redeem your securities within six years of buying them. The redemption fee reduces over time. You receive a free entitlement amount annually. Dealers Dealers, including registered investment dealers, mutual fund dealers and exempt market dealers, and other intermediaries acting as dealer that distribute securities of the mutual fund. Equities, stocks, or securities Represent proportionate interest in a company. Some equities pay regular dividends; others do not. Many investors purchase equities because they expect the company’s profits to rise, increasing the


market value of the securities. Includes common securities, preferred securities and securities convertible into common securities. Fixed income securities Pay regular income. Bonds and guaranteed investments certificates (GICs) are examples of fixed income securities that pay regular interest. Although they may not pay a ‘fixed’ return, floating rate bonds and securities are generally also referred to as fixed-income securities.

Front-load option Front-load is a type of purchase option for Series A (including A (Hedged)), I and T (including T-USD) and V securities. Under this purchase option, at the time of sale, you negotiate a sales commission with your Dealer of up to 6% of the amount you invest in Series A (including A (Hedged)) and T (including T-USD) securities (up to 2% for Series I and V securities). This sales commission is deducted from your purchase amount.

Low-load option Low-load is a type of purchase option for Series A (including A (Hedged)) and T (including T-USD) securities. Under this purchase option, at the time of sale, your full purchase amount is invested in the Fund and we pay your Dealer a sales commission of 2.5% of the amount you invest. You will not pay a redemption fee to us unless you redeem your securities within three years of buying them. The redemption fee reduces over time. You receive a free entitlement amount annually.

Management expense ratio (MER) The MER shows how much a Fund paid in management fees, fixed rate administration fee and Fund Costs (including harmonized sales tax) during each year shown. It is expressed as an annualized percentage of daily average net assets during the year. MER per series = Management fee and fixed rate administration fee and Fund Costs of the Fund allocated to the series Daily average net asset value of the series See page 36, Operating expenses, for more details.

Money market securities Short-term securities with maturities of less than one year – such as treasury bills, commercial paper, bankers’ acceptances and certificates of deposit.

Portfolio turnover rate Indicates the rate at which the Fund’s portfolio advisor changes its portfolio of investments in a year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling each security in its portfolio once in the course of its financial year. The higher the portfolio turnover rate in a year, the greater the trading costs payable by the Fund in a year and the greater the chance of you receiving a distribution or a dividend from the Fund that must be included in computing your income for tax purposes for that year. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. See page 59, Income tax considerations for investors, for more details on the tax consequences of a high portfolio turnover rate. Registered Representative An employee or agent of an investment dealer who is approved by Investment Industry Regulatory Organization of Canada (IIROC) to trade and advise in securities with the public in Canada.


Franklin Quotential Portfolios Refers to those Funds that invest in a diversified mix of Templeton, Franklin, Franklin Bissett and Franklin Mutual Series equity and fixed income mutual funds. The Franklin Quotential Portfolios are: Franklin Quotential Balanced Growth Portfolio Franklin Quotential Balanced Growth Corporate Class Portfolio

Franklin Quotential Balanced Income Portfolio Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Fixed Income Portfolio Franklin Quotential Growth Portfolio Franklin Quotential Growth Corporate Class Portfolio

Securities In this prospectus, references to a Fund’s “securities” means securities in the case of a Fund that is a trust and securities in the case of Templeton Growth Fund, Ltd. and the Corporate Class Funds.

Series Each Fund that is a trust may have an unlimited number of series of securities. Templeton Growth Fund, Ltd. and the Corporate Class Funds may each have an unlimited number of series of securities.

Term The length of time you hold an investment.

Short term: up to one year. Medium term: between one and five years. Long term: more than five years.

Underlying Funds to Franklin Quotential Portfolios Refers to the Funds in which the Franklin Quotential Portfolios invest from time to time.

Underlying Funds to Corporate Class Funds Refers to the Funds in which the corresponding Corporate Class Funds invest. The Underlying Funds to Corporate Class Funds are:

Templeton Asian Growth Fund Templeton Emerging Markets Fund Templeton Frontier Markets Fund Templeton Global Smaller Companies Fund Templeton Growth Fund, Ltd. Templeton International Stock Fund Franklin Global Growth Fund Franklin U.S. Opportunities Fund Franklin U.S. Monthly Income Fund Franklin U.S. Rising Dividends Fund Franklin Bissett Canadian All Cap Balanced Fund Franklin Bissett Canadian Dividend Fund


Franklin Bissett Canadian Equity Fund Franklin Bissett Dividend Income Fund Franklin Bissett Money Market Fund Franklin Bissett Small Cap Fund Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund) Franklin ActiveQuant Fund (formerly Franklin Bissett U.S. Focus Fund) Franklin Mutual Global Discovery Fund Franklin Mutual U.S. Shares Fund

Securities Your proportionate interest in a Fund that is a trust.

TEMPLETON Templeton Asian Growth Fund

Templeton Asian Growth Corporate Class







Templeton Global Bond Fund







Templeton International Stock Corporate Class FRANKLIN Franklin Global Growth Fund

Franklin Global Growth Corporate Class






Franklin U.S. Monthly Income Corporate Class



Franklin U.S. Opportunities Corporate Class


Franklin U.S. Rising Dividends Corporate Class

Franklin U.S. Rising Dividends Hedged Corporate Class FRANKLIN BISSETT Franklin Bissett Canadian All Cap Balanced Fund



Franklin Bissett Canadian Balanced Corporate Class Franklin Bissett Canadian Bond Fund

Franklin Bissett Canadian Dividend Fund

Franklin Bissett Canadian Dividend Corporate Class


Franklin Bissett Canadian Equity Fund

Franklin Bissett Canadian Equity Corporate Class

Franklin Bissett Canadian Government Bond Fund








Franklin Bissett Money Market Fund

Franklin Bissett Money Market Corporate Class



Franklin Bissett Small Cap Corporate Class

FRANKLIN ACTIVEQUANT Franklin ActiveQuant Canadian Fund (formerly Franklin Bissett All Canadian Focus Fund)



Franklin Active Quant U.S. Corporate Class (formerly Franklin Bissett U.S. Focus Corporate Class) FRANKLIN MUTUAL SERIES Franklin Mutual European Fund


Franklin Mutual Global Discovery Corporate Class


Franklin Mutual U.S. Shares Corporate Class FRANKLIN TEMPLETON M U L T I -A S S E T SOLUTIONS Franklin Quotential Balanced Growth Portfolio











PRIVATE WEALTH POOLS FT Balanced Growth Pool (to be renamed FT Balanced Growth Private Wealth Pool effective June 1, 2018)




Additional information about the Funds is available in the Funds’ annual information form, fund facts, management reports of fund performance and financial statements. These documents are incorporated by reference into this simplified prospectus, which means that they legally form part of this document just as if they were printed as sections of it.

You can get a free copy of any or all of these documents, from your Dealer, by calling toll-free 1-800-387-0830 or by contacting us at [email protected].

These documents and other information about the Funds, such as information circulars and material contracts, are also available at www.franklintempleton.ca or at www.sedar.com.

Franklin Templeton Investments Corp. 5000 Yonge Street, Suite 900 Toronto, ON, M2N 0A7 Client Services: 416-364-4672 Toll-free: 1-800-387-0830 Fax: 416-364-1163 Toll-free: 1-866-850-8241

www.franklintempleton.ca GEN PE 05/2018

2018 final sp (final) may 29 2018 - franklintempleton.ca€¦ · simplified prospectus may 29, 2018...

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