TD Waterhouse Premier Managed Portfolios Program

Transcription

1 TD Waterhouse Premier Managed Portfolios Program June 30, 2018 Franklin Bissett Investment Management Review Franklin Bissett Investment Management, part of Franklin Templeton Investments Canada. Source for data and information provided by Franklin Templeton Investments, as of June 30, 2018, unless otherwise noted.

2 Topics for Discussion Franklin Templeton and Franklin Bissett Investment Capabilities Overview A Legacy of Expertise in the Canadian Capital Markets A Leader in Managed Account Programs Unique Service Coverage Franklin Bissett Portfolio Manager Structure Investment Strategy A Distinctive Approach to the GARP Style Absolute, Relative and Risk-Adjusted Return Objectives Mandates Canadian Large Cap 12 Dividend Income 18 Canadian Dividend 25 Canadian Balanced 32 Our Current Outlook 41 Appendix 42 2

3 Franklin Templeton and Franklin Bissett

4 Investment Capabilities Overview FRANKLIN TEMPLETON INVESTMENTS Total Combined Assets Under Management : CAD$951.6 Billion 2 Equity 5 Fixed Income 8 Multi-Asset Solutions 11 Alternatives AUM CAD$416.7 Billion CAD$361.7 Billion CAD$158.0 Billion CAD$21.2 Billion CAPABILITIES Value Government Multi-Asset Income Commodities Deep Value Municipals Diversified Outcome-Oriented Infrastructure Core Value Corporate Credit Risk Premia Real Estate Blend Bank Loans Smart Beta Hedge Funds Growth At a Reasonable Price (GARP) Securitized Balanced Allocation Private Equity Growth Multi-Sector Target Date/Risk ActiveQuant Currencies Model Portfolios Convertibles Sukuk Inflation Protection Sector Managed Volatility Shariah Smart Beta INVESTMENT Templeton Global Equity Group (1940) Franklin Templeton Fixed Income Group Franklin Templeton Multi-Asset Solutions Franklin Real Asset Advisors (1984) TEAMS Franklin Equity Group (1947) (1970) (1948) Darby Overseas Investments (1994) Franklin Mutual Series (1949) Templeton Global Macro (1986) Franklin SystematiQ (2011) K2 Advisors (1994) Franklin Templeton Emerging Markets Franklin LAM-Fixed Income (1993) Pelagos Capital Management (2005) Equity (1987) Franklin Bissett Investment Mgmt (1982) Franklin Bissett Investment Mgmt (1982) Source: Franklin Templeton Investments (FTI), as of June 30, 2018, based on latest available data. Total combined Assets Under Management (Total AUM) combines U.S. and non-u.s. AUM of the investment management subsidiaries of the parent company, Franklin Resources, Inc. (FRI) [NYSE: BEN], a global investment management organization operating as FTI. Only selected business entities within FTI claim compliance with the GIPS standards as described in the table of contents if applicable. Total and platform AUM includes discretionary and non-discretionary accounts, including pooled investment vehicles, separate accounts and other vehicles. Total and platform AUM may also include advisory accounts with or without trading authority. In addition, assets for which certain FTI advisers provide limited asset allocation advisory services, and assets that are not allocated to FTI products are not included in the AUM figures shown. Franklin Templeton Multi-Asset Solutions may invest in various investment platforms advised by a number of investment advisory entities within FTI. Platform AUM reported for FT Multi-Asset Solutions therefore may include certain AUM separately reported under each utilized investment platform. Total AUM also includes assets managed by certain FTI advisers that do not form part of the selected investment platforms shown. As a result, the combined platform AUMs may not equal Total AUM and may be calculated and reported separately for regulatory or other purposes under each investment adviser. Each local asset manager may be considered as an entity affiliated with or associated to FTI by virtue of being a direct or indirect wholly-owned subsidiary of FRI, an entity or joint venture in which FRI owns a partial interest, which may be a minority interest, or a third party asset management company to which investment advisory services have been delegated by an FTI adviser. Franklin Local Asset Management (LAM) includes Franklin Bissett Investment Management, which is part of Franklin Templeton Investments Corp. In Canada, the advisor to the Franklin Templeton Multi-Asset Solutions mandates is Fiduciary Trust Company of Canada, a wholly owned subsidiary of Franklin Templeton Investments Corp. Franklin Templeton Multi-Asset Solutions is a business name used by Fiduciary Trust Company of Canada. 4

5 Franklin Bissett Investment Management A Legacy of Expertise in the Canadian Capital Markets Founded in 1982 and joined Franklin Templeton Investments in 2000 CAD$19.8 billion in assets under management as of June 30, 2018 Equity strategies: CAD$13.8 billion Fixed Income strategies: CAD$6.0 billion Institutional Retail Traditional Institutional (Pensions) Insurance Platforms White Label Sub-Advisory Investment Categories Fundamental Equity Active Quantitative Equity Systematic Beta Open-End Mutual Funds SMA/UMA Exchange-Traded Funds High Net Worth Fixed Income Multi-Asset 5

6 A Leader in Managed Account Programs Franklin Bissett Enters SMA Market 1994 Franklin Bissett Enters UMA Market 2005 Franklin Bissett AUM: $19.8 billion SMA/UMA: $2.9 billion 2018 Franklin Bissett has managed portfolios in these programs for over 20 years Franklin Templeton remains committed to this area of long-term growth in Canada Franklin Bissett Investment Management assets as of June 30,

7 Unique Service Coverage Three Distinct Support Levels for Advisors DEALER RESOURCES Head Office Team LOCAL PRESENCE Franklin Templeton Sales Team SPECIALIZED SUPPORT Franklin Bissett Portfolio Management Team Helping Advisors 1. Open New Accounts 2. Gain Additional Contributions 3. Retain Clients 7

8 Franklin Bissett Portfolio Manager Structure Managed Accounts TD Waterhouse Strategy Franklin Bissett Canadian Large Cap SMA Franklin Bissett Dividend Income SMA Franklin Bissett Canadian Dividend SMA Franklin Bissett Canadian Balanced SMA Co-Lead Managers Garey Aitken, Tim Caulfield Les Stelmach, Ryan Crowther Les Stelmach, Ryan Crowther Garey Aitken, Tim Caulfield, Tom O Gorman, Darcy Briggs For additional information on specific responsibilities and professional biographies, please see the Appendix. 8

9 Investment Strategy

10 Equity Investing at Franklin Bissett A Distinctive Approach to the GARP Style Growth at a Reasonable Price discipline across all fundamental equity investment strategies An exacting definition of the G in GARP Growth defined as sustainable profits Looking for strong, consistent earnings and cash flow growth Focused on financially stable companies Portfolio companies often are engaged in shareholder-friendly actions such as share buybacks and well-executed dividend plans Bottom-up security selection process Estimated intrinsic values exceed current share prices 10

11 Absolute, Relative and Risk-Adjusted Return Objectives RISK-ADJUSTED RETURN OBJECTIVE ABSOLUTE RETURN OBJECTIVE High single-digit to low double-digit annualized returns over longer time periods RELATIVE RETURN OBJECTIVE Target 200 bps in annualized excess returns relative to the benchmark RISK OBJECTIVES Primary risk objective: To ensure investors are compensated for the risk taken Secondary risk objective: To maintain less return volatility than the benchmark Strategy dependent, but beta target is typically ; alpha target is 300 bps annualized 11

12 TD Waterhouse Premier Managed Portfolios Program Mandates Canadian Large Cap Core portfolio seeking long-term capital appreciation Focus on securities with market capitalizations exceeding $2 billion Dividend Income Blended portfolio seeking capital appreciation and tax-efficient income Canadian Dividend Portfolio seeking capital appreciation and tax-efficient income Focus on Canadian common equities with emphasis placed on a growing income stream Canadian Balanced Core portfolio holding Policy mix: 60% Canadian equities, 40% fixed income 12

13 Strategy Overview Franklin Bissett Canadian Large Cap SMA Core Equity Portfolio 100% Canadian Equity Securities Focus on securities with market capitalizations exceeding $2 billion Positions often are concentrated in the top holdings Annual turnover target of 15% 25% Primary objective of long-term capital appreciation Benchmark: S&P/TSX Composite Index 13

14 Top Holdings Franklin Bissett Canadian Large Cap SMA As of June 30, 2018 Top 20 Holdings 1 As of March 31, 2016 Top 10 Overweights & Underweights 2 Name Weight (%) Brookfield Asset Management 6.97 Canadian National Railway 6.80 Restaurant Brands International 5.27 Royal Bank of Canada 5.13 Toronto Dominion Bank 5.11 CP Railway 4.77 CIBC 4.09 Bank of Montreal 3.78 Bank of Nova Scotia 3.43 Franco-Nevada 3.31 Dollarama Inc Onex 3.17 Enbridge 3.01 Alimentation Couche Tard 2.66 Metro 2.65 CGI 2.61 Canadian Natural Resources 2.48 Stantec Inc Saputo 2.20 ATCO 1.84 Total Number of Equity Positions 38 Name Weight (%) Brookfield Asset Management Restaurant Brands International Canadian National Railway Canadian Pacific Railway Onex Dollarama Inc Franco-Nevada Metro Stantec Inc CIBC Name Weight (%) Suncor Energy* BCE* Manulife Royal Bank of Canada Waste Connections* Magna International* Toronto-Dominion Bank Pembina Pipeline Corporation* National Bank of Canada* Fairfax Financial Holdings Ltd.* Top twenty weights are represented as a percentage of entire portfolio excluding cash. Securities shown are top twenty within the asset class. 2. Overweight and underweight portfolio holdings are in comparison to the S&P/TSX Composite Index. *Asset not held in the portfolio during the period. Information is based on a Franklin Bissett Canadian Large Cap SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 14

15 Sector Allocation 1 Franklin Bissett Canadian Large Cap SMA As of June 30, 2018 Financials Energy Industrials Consumer Discretionary Consumer Staples Materials Telecommunication Services Utilities Information Technology Real Estate Health Care Portfolio (%) S&P/TSX Composite (%) 1. Sector allocation is represented as a percentage of asset class and may not total 100% due to rounding. Information is based on a Franklin Bissett Canadian Large Cap SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 15

16 Portfolio Activity Franklin Bissett Canadian Large Cap SMA (March 31, 2018 June 30, 2018) Top Purchases: Top Sale: CGI Fortis Alimentation Couche Tard Gildan Activewear Information is based on a Franklin Bissett Canadian Large Cap SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 16

17 Performance (Gross of Fees) Franklin Bissett Canadian Large Cap SMA As of June 30, 2018 Calendar Year Returns (%) Canadian Large Cap (%) S&P/TSX Composite Index (%) Returns (%) 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 1 * Canadian Large Cap (%) S&P/TSX Composite Index (%) Standard Deviation (%) 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 1 * Canadian Large Cap (%) S&P/TSX Composite Index (%) Other Risk Statistics 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 1 * Risk-Adjusted Returns (Alpha) Beta Tracking Error (%) Information Ratio Inception Date: September 30, *Annualized. FOR ILLUSTRATIVE AND DISCUSSION PURPOSES ONLY. THE RETURNS SHOWN HEREIN ARE THOSE OF THE FRANKLIN BISSETT CANADIAN LARGE CAP SMA MODEL PORTFOLIO (the MODEL PORTFOLIO ). From October 1, 2015 to present, the pure gross performance is based on a model account maintained by Franklin Bissett Separately Managed Accounts and assumes the following: (1) a portfolio size of $10 million; (2) the reinvestment of dividends and other earnings; (3) the effects of any corporate actions; (4) that the portfolio securities are valued daily using the most recent published end of day prices; and (5) no trading expenses. Prior to September 30, 2015 performance information presented herein are those of a model account maintained and reported by a third party dealer. The model account follows a similar investment strategy and utilizes the same research as the Franklin Bissett Canadian Large Cap SMA model portfolio (the Model Portfolio ). Accordingly, we do not represent that the model or dealer performance is accurate or complete, or that it should be relied upon as such. Actual client returns may differ for a variety of reasons including, but not limited to, differences in: portfolio size, percentages held in each security, the timing of purchases and sales, price per security, fees and expenses. These differences may result in returns that may vary from those presented. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 17

18 TD Waterhouse Premier Managed Portfolios Program Mandates Canadian Large Cap Core portfolio seeking long-term capital appreciation Focus on securities with market capitalizations exceeding $2 billion Dividend Income Blended portfolio seeking capital appreciation and tax-efficient income Canadian Dividend Portfolio seeking capital appreciation and tax-efficient income Focus on Canadian common equities with emphasis placed on a growing income stream Canadian Balanced Core portfolio holding Policy mix: 60% Canadian equities, 40% fixed income 18

19 Strategy Overview Franklin Bissett Dividend Income SMA Suited for investors seeking: Capital appreciation Lower-than-benchmark volatility Attractive portfolio yield The vast majority of investments must pay, or be implementing, a dividend at time of purchase Emphasis is placed on a growing income stream over time Canadian Equities Leveraging our in-house fundamental research U.S. Equities Deep market for high quality companies with dividend growth Preferred share exposure generally enhances income and reduces overall portfolio volatility 19

20 Asset Mix Franklin Bissett Dividend Income SMA As of June 30, 2018 Portfolio Yield: 3.58% Asset Class Current Allocation Range Benchmark Canadian Dividend Equity 67.79% 60% to 88% 70% U.S. Dividend Equity 22.72% 10% to 30% 20% Preferred Shares 3.89% 0% to 15% 10% Cash 5.60% 2% to 10% 0% Asset mix may not total 100% due to rounding. Please refer to the Important Disclosures slide for the definition of dividend yield. Information is based on a Franklin Bissett Dividend Income SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 20

21 Top Holdings Franklin Bissett Dividend Income SMA As of June 30, 2018 Canadian Equity Portion of the Portfolio Top 20 Holdings 1 Weight (%) Royal Bank of Canada 3.95 CIBC 3.88 Toronto Dominion Bank 3.79 Brookfield Asset Management 3.25 Canadian National Railway 3.13 Bank of Montreal 3.11 Bank of Nova Scotia 2.62 Enbridge 2.53 IGM Financial 2.47 Rogers Communications 2.36 TELUS 2.30 Inter Pipeline 2.26 Nutrien Ltd Power Financial 2.08 Fortis 2.08 Metro 1.91 Vermilion Energy Inc Capital Power 1.54 Restaurant Brands International 1.54 Sun Life Financial 1.46 Total Number of Canadian Dividend Equity Positions 39 As of March 31, 2016 U.S. Equity Portion of the Portfolio Top Holdings 1 Weight (%) McDonald s 1.65 JP Morgan Chase 1.62 Pfizer 1.56 Wells Fargo 1.48 Duke Energy 1.43 Microsoft 1.39 Apple Inc Merck 1.32 United Parcel Service 1.30 Coca-Cola 1.29 Johnson & Johnson 1.27 Intel 1.26 Kinder Morgan 1.19 Union Pacific 1.07 Procter & Gamble 1.01 Total Number of U.S. Dividend Equity Positions Top holdings weights are represented as a percentage of entire portfolio excluding cash. Securities shown are top holdings within the asset class. Information is based on a Franklin Bissett Dividend Income SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 21

22 Sector Allocation 1 Franklin Bissett Dividend Income SMA As of June 30, 2018 Canadian Equity Portion of the Portfolio Financials Energy Telecommunication Services 4.35 Materials Industrials Utilities Consumer Staples Consumer Discretionary Real Estate 2.80 Information Technology Health Care Portfolio (%) S&P/TSX Composite (%) Portfolio (%) S&P/TSX Composite (%) Canadian Equity Yield As of March 31, 2016 U.S. Equity Portion of the Portfolio Health Care Consumer Staples Information Technology Financials Industrials Energy Consumer Discretionary Utilities Real Estate Materials Telecommunication Services Portfolio (%) S&P 500 Index (%) Portfolio (%) S&P 500 Index (%) U.S. Equity Yield Sector allocation is represented as a percentage of asset class and may not total 100% due to rounding. Please refer to the Important Disclosures slide for the definition of dividend yield. Information is based on a Franklin Bissett Dividend Income SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 22

23 Portfolio Activity Franklin Bissett Dividend Income SMA (March 31, 2018 June 30, 2018) Top 3 Purchases: Top 3 Sales: Apple Inc. Choice Properties REIT Metro Canadian Real Estate Investment Trust (CREIT) Unit Intel Enbridge Income Fund 1. Denotes holding is part of the U.S. portion of the portfolio. Information is based on a Franklin Bissett Dividend Income SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 23

24 Performance (Gross of Fees) Franklin Bissett Dividend Income SMA As of June 30, 2018 Calendar Year Returns (%) Dividend Income (%) Benchmark 1 (%) Returns (%) 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 2 * Dividend Income (%) Benchmark 1 (%) Standard Deviation (%) 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 2 * Dividend Income (%) Benchmark 1 (%) Other Risk Statistics 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 2 * Risk-Adjusted Returns (Alpha) Beta Tracking Error (%) Information Ratio The benchmark is a combination of the following indices: 70% S&P/TSX Composite Index, 20% S&P 500 Index, 10% S&P/TSX Preferred Share Index. From October 1, 2014 to March 31, 2016 the benchmark was comprised of 60% S&P/TSX Composite Index, 25% S&P 500 Index, 15% S&P/TSX Preferred Share Index. From July 1, 2007 to September 30, 2014, the benchmark was composed of 60% S&P/TSX Composite Index, 25% S&P 500 Index, 15% BMO Nesbitt Burns 50 Preferred Shares Index (NB50 PSI). Prior to June 30, 2007, the benchmark was composed of 50% S&P/TSX Composite Index, 25% S&P 500 Index, 25% BMO Nesbitt Burns 50 Preferred Shares Index (NB50 PSI). 2. Inception Date: March 31, *Annualized. FOR ILLUSTRATIVE AND DISCUSSION PURPOSES ONLY. THE RETURNS SHOWN HEREIN ARE THOSE OF THE FRANKLIN BISSETT DIVIDEND INCOME SMA MODEL PORTFOLIO (the MODEL PORTFOLIO ). From October 1, 2015 to present, the pure gross performance is based on a model account maintained by Franklin Bissett Separately Managed Accounts and assumes the following: (1) a portfolio size of $10 million; (2) the reinvestment of dividends and other earnings; (3) the effects of any corporate actions; (4) that the portfolio securities are valued daily using the most recent published end of day prices; and (5) no trading expenses. Prior to September 30, 2015 performance information presented herein are those of a model account maintained and reported by a third party dealer. The model account follows a similar investment strategy and utilizes the same research as the Franklin Bissett Dividend Income SMA model portfolio (the Model Portfolio ). Accordingly, we do not represent that the model or dealer performance is accurate or complete, or that it should be relied upon as such. Actual client returns may differ for a variety of reasons including, but not limited to, differences in: portfolio size, percentages held in each security, the timing of purchases and sales, price per security, fees and expenses. These differences may result in returns that may vary from those presented. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 24

25 TD Waterhouse Premier Managed Portfolios Program Mandates Canadian Large Cap Core portfolio seeking long-term capital appreciation Focus on securities with market capitalizations exceeding $2 billion Dividend Income Blended portfolio seeking capital appreciation and tax-efficient income Canadian Dividend Portfolio seeking capital appreciation and tax-efficient income Focus on Canadian common equities with emphasis placed on a growing income stream Canadian Balanced Core portfolio holding Policy mix: 60% Canadian equities, 40% fixed income 25

26 Strategy Overview Franklin Bissett Canadian Dividend SMA Suited for investors seeking: Tax-efficient income and capital appreciation Lower-than-benchmark volatility 100% Canadian securities with emphasis placed on growing income stream over time Concentrated, yet a diversified portfolio Holdings typically range between names Large-cap coverage Bias towards large-cap securities with meaningful exposure to mid-cap and small-cap securities for diversification benefits Fully invested Typical cash exposure is below 5% Annual Turnover Target of 15% 25% 26

27 Asset Mix Franklin Bissett Canadian Dividend SMA As of June 30, 2018 Portfolio Yield: 3.96% Asset Class Current Allocation Range Benchmark Canadian Dividend Equity 96.57% 90% to 98% 100% Cash 3.43% 2% to 10% 0% Asset mix may not total 100% due to rounding. Please refer to the Important Disclosures slide for the definition of dividend yield. Information is based on a Franklin Bissett Canadian Dividend SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 27

28 Top Holdings Franklin Bissett Canadian Dividend SMA As of June 30, 2018 Top 20 Holdings 1 As of March 31, 2016 Top 10 Overweights & Underweights 2 Name Weight (%) Royal Bank of Canada 5.70 CIBC 5.59 Toronto Dominion Bank 5.31 Brookfield Asset Management 4.71 Canadian National Railway 4.53 Bank of Montreal 4.26 Bank of Nova Scotia 3.67 Enbridge 3.65 IGM Financial 3.48 Rogers Communications 3.31 Inter Pipeline 3.29 TELUS 3.23 Nutrien Ltd Fortis 3.01 Power Financial 2.88 Metro 2.68 Vermilion Energy Inc Capital Power 2.24 Restaurant Brands International 2.14 Franco-Nevada 2.08 Total Number of Canadian Dividend Equity Positions 39 Name Weight (%) IGM Financial CIBC Inter Pipeline Brookfield Asset Management Power Financial Rogers Communications Vermilion Energy Fortis Metro Capital Power Name Weight (%) Suncor Energy* Canadian Natural Resources* CP Railway* Waste Connections* Magna International* Pembina Pipeline* National Bank of Canada* CGI* Toronto Dominion Bank Fairfax Financial Holdings Ltd.* Top twenty weights are represented as a percentage of entire portfolio excluding cash. Securities shown are top twenty within the asset class. 2. Overweight and underweight portfolio holdings are in comparison to the S&P/TSX Composite Index. *Asset not held in the portfolio during the period. Information is based on a Franklin Bissett Canadian Dividend SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 28

29 Sector Allocation 1 Franklin Bissett Canadian Dividend SMA As of June 30, 2018 Financials Energy Telecommunication Services Industrials Materials Utilities Consumer Staples Consumer Discretionary Real Estate Information Technology Health Care Portfolio (%) S&P/TSX Composite (%) Portfolio (%) S&P/TSX Composite (%) Canadian Equity Yield Sector allocation is represented as a percentage of asset class and may not total 100% due to rounding. Please refer to the Important Disclosures slide for the definition of dividend yield. Information is based on a Franklin Bissett Canadian Dividend SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated

30 Portfolio Activity Franklin Bissett Canadian Dividend SMA (March 31, 2018 June 30, 2018) Top 3 Purchases: Top 3 Sales: Choice Properties REIT Metro Canadian Utils Canadian Real Estate Investment Trust (CREIT) Unit Enbridge Income Fund Choice Properties REIT Information is based on a Franklin Bissett Canadian Dividend SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 30

31 Performance (Gross of Fees) Franklin Bissett Canadian Dividend SMA As of June 30, 2018 CALENDAR YEAR RETURNS Canadian Dividend (%) N/A N/A S&P/TSX Composite Index (%) N/A N/A HISTORICAL PERFORMANCE 3 Months 1 Year 3 Years* 5 Years* 10 Years* Inception 1 * Canadian Dividend (%) N/A N/A 4.27 S&P/TSX Composite Index (%) N/A N/A Inception Date: December 31, *Annualized. FOR ILLUSTRATIVE AND DISCUSSION PURPOSES ONLY. THE SIMULATED RETURNS SHOWN HEREIN ARE THE GROSS RETURNS OF THE FRANKLIN BISSETT CANADIAN DIVIDEND SEPARATELY MANAGED ACCOUNT (SMA) MODEL PORTFOLIO (the MODEL PORTFOLIO ) FOR THE PERIOD INDICATED, WHICH IS REPRESENTATIVE OF THE INVESTMENT STRATEGY. ALL PERFORMANCE IS REPORTED IN CANADIAN DOLLARS. The simulated returns are based on a model account maintained by Franklin Bissett Separately Managed Accounts and assume the following: (1) a portfolio size of $10 million; (2) the reinvestment of dividends and other earnings; (3) the effects of any corporate actions; (4) that the portfolio securities are valued daily using the most recent published end of day prices; and (5) no trading expenses. Actual client returns may differ for a variety of reasons including, but not limited to, differences in: performance calculation methodology, portfolio size, percentages held in each security, the timing of purchases and sales, price per security, cash, fees and expenses. These differences may result in returns that may vary from those presented. Taking into account fees and trading expenses would result in lower rates of return. Returns represent past performance. The performance does not represent any client accounts managed by Franklin Bissett Separately Managed Accounts. Past performance does not guarantee future results and may not be repeated. 31

32 TD Waterhouse Premier Managed Portfolios Program Mandates Canadian Large Cap Core portfolio seeking long-term capital appreciation Focus on securities with market capitalizations exceeding $2 billion Dividend Income Blended portfolio seeking capital appreciation and tax-efficient income Canadian Dividend Portfolio seeking capital appreciation and tax-efficient income Focus on Canadian common equities with emphasis placed on a growing income stream Canadian Balanced Core portfolio holding Policy mix: 60% Canadian equities, 40% fixed income 32

33 Strategy Overview Franklin Bissett Canadian Balanced SMA Asset Allocation: Core balanced portfolio of Canadian equity and fixed income Emphasis on total returns, derived primarily from capital appreciation within a disciplined risk management framework Long term strategic allocation driven by underlying bottom-up perspectives Equity Allocation: Focus on mid and large cap Canadian equity Positions often are concentrated in the top holdings Fixed Income Allocation: Overweight credit securities for added long-term value Duration +/- 25% of the benchmark 33

34 Asset Mix Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Portfolio Yield: 2.72% Asset Class Current Allocation Range Benchmark Canadian Equity 62.00% 50% to 70% 60% Fixed Income 35.44% 30% to 50% 40% Cash 2.55% 2% to 10% 0% Asset mix may not total 100% due to rounding. Please refer to the Important Disclosures slide for the definition of dividend yield. Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 34

35 Top Equity Holdings Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Top 20 Holdings 1 Name Weight (%) Brookfield Asset Management 4.42 Canadian National Railway 4.26 Restaurant Brands International 3.53 Royal Bank of Canada 3.47 CP Railway 3.23 Toronto Dominion Bank 3.16 CIBC 2.53 Bank of Montreal 2.34 Onex 2.20 Bank of Nova Scotia 2.12 Franco-Nevada 2.09 Dollarama Inc Enbridge 1.89 Metro 1.78 Alimentation Couche Tard 1.62 CGI 1.59 Canadian Natural Resources 1.57 Stantec Inc Saputo 1.38 Nutrien Ltd Total Number of Equity Positions 38 As of March 31, 2016 Top 10 Overweights & Underweights 2 Name Weight (%) Canada Post Corp 4.080% Due Brookfield Asset Management Restaurant Brands International Canada Govt 5.000% Due Manitoba Prov 4.400% Due Ontario Prov 6.500% Due Alberta Prov 3.900% Due CP Railway New Brunswick Prov 5.500% Due Canadian National Railway Name Weight (%) Suncor Energy* BCE* Manulife Waste Connections* Magna International* Pembina Pipeline* Toronto Dominion Bank National Bank of Canada* Fairfax Financial Holdings Ltd.* Barrick Gold* Top twenty weights are represented as a percentage of entire portfolio excluding cash. Securities shown are top twenty within the asset class. 2. Overweight and underweight portfolio holdings are in comparison to the 60% S&P/TSX Composite TRI, 40% FTSE TMX Canada Universe Bond Index. *Asset not held in the portfolio during the period. Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 35

36 Equity Sector Allocation 1 Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Financials Energy Industrials Consumer Discretionary Consumer Staples Materials Telecommunication Services Utilities Information Technology Real Estate Health Care Portfolio (%) S&P/TSX Composite (%) 1. Sector allocation is represented as a percentage of asset class and may not total 100% due to rounding. Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 36

37 Top 10 Fixed Income Holdings & Fixed Income Sector Allocation Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Top 10 Fixed Income Holdings 1 As of March 31, 2016 Fixed Income Sector Allocation 2 Name Weight (%) Canada Post Corp 4.080% Due Canada Govt 5.000% Due Ontario Prov 6.500% Due Manitoba Prov 4.400% Due Alberta Prov 3.900% Due New Brunswick Prov 5.500% Due Manulife Financial Corp FF % 1.71 Due Municipal Finance Authority of BC 2.950% 1.68 Due Transcanada Pipelines 3.690% Due Bell CDA 3.550% Due Total Corporate Bonds Provincial Bonds Federal Bonds Municipal Bonds Portfolio (%) FTSE TMX Canada Universe Bond Index (%) 1. Top ten weights are represented as a percentage of entire portfolio excluding cash. Securities shown are top ten within the asset class. 2. Sector allocation is represented as a percentage of asset class and may not total 100% due to rounding. Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 37

38 Fixed Income Portfolio Characteristics Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Quality Breakdown Portfolio (%) FTSE TMX Canada Universe Bond Index (%) AAA AA A BBB Term Breakdown Portfolio (%) FTSE TMX Canada Universe Bond Index (%) Short: <5 Years Mid: 5 10 Years Long: >10 Years Portfolio FTSE TMX Canada Universe Bond Index (%) Yield to Worst 2.90% 2.67% Duration 7.08 Years 7.63 Years Asset mix may not total 100% due to rounding. Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 38

39 Portfolio Activity Franklin Bissett Canadian Balanced SMA (March 31, 2018 June 30, 2018) Top 3 Purchases: Top 3 Sales: Bell CDA 3.550% Due Canadian Natural Resources 3.420% Due Suncor Energy 3.000% Due Rogers Communications Inc 4.700% Due North West Redwater Partnership 2.800% Due Gildan Activewear Information is based on a Franklin Bissett Canadian Balanced SMA model portfolio, representative of the investment strategy. This model portfolio is indicative of the allocation that would be used for new accounts being opened and is updated as of the end of each calendar quarter. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, general market conditions and other factors specific to each existing account due to client considerations. 39

40 Performance (Gross of Fees) Franklin Bissett Canadian Balanced SMA As of June 30, 2018 Calendar Year Returns (%) Canadian Balanced (%) Benchmark 1 (%) Returns (%) 1 Year 3 Years* 5 Years* 10 Years* 15 Years* Inception 2 * Canadian Balanced (%) N/A 6.58 Benchmark 1 (%) N/A 5.04 Standard Deviation (%) 1 Year 3 Years* 5 Years* Canadian Balanced (%) Benchmark 1 (%) Other Risk Statistics 1 Year 3 Years* 5 Years* Risk-Adjusted Returns (Alpha) Beta Tracking Error (%) Information Ratio Benchmark: 60% S&P/TSX Composite Index, 40% FTSE TMX Canada Universe Bond Index. 2. Inception Date: December 31, *Annualized. FOR ILLUSTRATIVE AND DISCUSSION PURPOSES ONLY. THE RETURNS SHOWN HEREIN ARE THOSE OF THE FRANKLIN BISSETT CANADIAN BALANCED SMA MODEL PORTFOLIO (the MODEL PORTFOLIO ). From October 1, 2015 to present, the pure gross performance is based on a model account maintained by Franklin Bissett Separately Managed Accounts and assumes the following: (1) a portfolio size of $10 million; (2) the reinvestment of dividends and other earnings; (3) the effects of any corporate actions; (4) that the portfolio securities are valued daily using the most recent published end of day prices; and (5) no trading expenses. Prior to September 30, 2015 performance information presented herein are the aggregated returns of actual accounts maintained and reported by a third party dealer. The model account follows a similar investment strategy and utilizes the same research as the Franklin Bissett Canadian Balanced SMA model portfolio (the Model Portfolio ). Accordingly, we do not represent that the model or dealer performance is accurate or complete, or that it should be relied upon as such. Actual client returns may differ for a variety of reasons including, but not limited to, differences in: portfolio size, percentages held in each security, the timing of purchases and sales, price per security, fees and expenses. These differences may result in returns that may vary from those presented. Performance is presented in Canadian dollars, assumes reinvestment of dividends and other earnings and is gross of fees. Taking into account fees would result in lower rates of return. Returns represent past performance. Past performance does not guarantee future results and may not be repeated. 40

41 Our Current Outlook As of June 30, 2018 After a bumpy first quarter of 2018, market volatility diminished in the second quarter to levels similar to what has been witnessed in recent years. The trajectory of the Canadian dollar vis-a-vis the U.S. dollar will continue to have implications for the competitive positioning of businesses and operating earnings. Interest rates continue to rise; however, the current interest rate environment remains constructive for equities. With the Canadian equity market remaining at elevated levels, certain parts of the Canadian equity market appear vulnerable to us. That being said, we are continuing to find attractive opportunities, particularly in sectors and securities that have not kept pace with the more favoured parts of the market. Our fixed income positioning: Underweight fixed income relative to benchmark weights We remain slightly defensive with regard to duration and an emphasis on credit, where we maintain a slight preference for higher-quality versus lower-quality assets Credit valuations are becoming stretched, but the asset class remains supported by a decidedly favourable supply/demand backdrop, especially in Canada The information is not a complete analysis of every aspect of any market, country, industry, security or portfolio. Statements of fact are from sources considered to be reliable, but no representation or warranty is made as to their completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date indicated. The views expressed may not be relied upon as investment advice and are not share class specific. 41

42 Appendix

43 Franklin Bissett Equity Group: Years of Experience and Responsibilities Name Industry Since Firm Since Responsibilities Garey Aitken, CFA, MBA Chief Investment Officer Tim Caulfield, CFA VP, Director of Equity Research Les Stelmach, CFA SVP, Portfolio Manager Ryan Crowther, CFA VP, Portfolio Manager Ralph Lindenblatt, CFA SVP, Portfolio Manager Richard Fortin, CFA VP, Portfolio Manager Jason Hornett, CFA VP, Portfolio Manager Andrew Buntain, CFA VP, Institutional Portfolio Manager Izabel Flis, CFA VP, Portfolio Manager Jayson Moss, CFA Research Analyst Mike Richmond, CFA Research Analyst Neil Forster, CFA, MBA Research Analyst Mitchell McCartney, CFA Research Analyst Chris Lankester Investment Operations Analyst Dino Kurbegovic Portfolio Assistant Shelly Wilson Executive Assistant CFA and Chartered Financial Analyst are trademarks owned by CFA Institute February, 1998 Chief Investment Officer Portfolio Management: Canadian Equity and Dividend Strategies 1999 January, 2007 Portfolio Management: Canadian Equity Strategies Research: Financials 1999 January, 2006 Portfolio Management: Dividend Strategies Research: Energy 2002 February, 2008 Portfolio Management: Dividend Strategies Research: Materials 1998 January, 2001 Portfolio Management: Small/Micro Cap Strategies Research: Small/Micro Cap strategies across all sectors 1996 January, 2009 Portfolio Management: Small/Micro Cap Strategies Research: Small/Micro Cap strategies across all sectors 1997 November, 1997 Portfolio Management: Quantitative Strategies 1995 May, 2007 Communication of FBIM process, philosophy and strategies to internal and external constituencies 2001 January, 2001 Portfolio Management: ActiveQuant and Systematic Beta (Employed in ETFs) Strategies Research: Pipelines and Infrastructure, Retailing, Cable, Broadcasting, Consumer Staples, Telecommunication Services, Utilities 2004 November, 2011 Research: Consumer Discretionary, Industrials, Health Care, Information Technology 2001 August, 2013 Research: Energy Equipment and Services, Special Situations, Real Estate 2006 March, 2014 Research: Small/Micro Cap strategies across all sectors 2011 May, 2011 Special Situations 2000 November, 2000 Investment Operations 2017 June, 2017 Investment Operations 2000 February, 2000 Support Portfolio Management Team 43

44 Sector Research Coverage Canadian Fundamental Equity Strategies Energy Materials Industrials Energy Equipment & Services Pipelines, Infrastructure Les Stelmach Mike Richmond Izabel Flis Ryan Crowther Jayson Moss Our investors benefit from a time-tested investment process predicated on extensive fundamental research and valuation work. SECTOR Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services Utilities SUB-GROUP Retailing, Cable, Broadcasting ANALYST COVERAGE Jayson Moss Izabel Flis Izabel Flis Jayson Moss Tim Caulfield Jayson Moss Izabel Flis Izabel Flis -Garey Aitken, CFA Chief Investment Officer Franklin Bissett Investment Management Real Estate Mike Richmond Special Situations Mike Richmond Mitchell McCartney Ralph Lindenblatt Various Sectors Small/Micro Cap Richard Fortin Neil Forster Additional Resources Leveraging the Franklin Templeton Platform Risk Analysis Equity Trading Legal Marketing and Distribution CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 44

45 Franklin Bissett Fixed Income Group: Years of Experience and Responsibilities Name Industry Since Firm Since Responsibilities Tom O Gorman, CFA, MBA SVP, Director of Fixed Income Darcy Briggs, CFA, CPA, CGA, FRM SVP, Portfolio Manager Adrienne Young, CFA, MBA VP, Director of Credit Research Jeffrey Johnson, CFA, FRM, MBA VP, Portfolio Manager Brian Calder, CIM VP, Senior Trader and Portfolio Manager Sevrika Galipeau, CFA Portfolio Manager/Research Analyst Darius Taheri Junior Trader 1987 June, 2010 Portfolio Management: Strategy Development and Implementation Credit Focus: Insurance and Other Financials, High Yield 1994 January, 2005 Portfolio Management: Strategy Development and Implementation Macro, Rates and Currency Lead Credit Focus: Energy (Exploration, Integrated), CMBS, High Yield 1994 June, 2014 Director of Credit Research Portfolio Management: Strategy Development and Implementation Credit Lead Credit Focus: Communication, Financials (Banks and Services), Industrials (Consumer, Services and Transportation), Infrastructure (Health Care), Real Estate 1996 May, 2005 Portfolio Management: Short-Term and Money Market Strategies Credit Focus: Energy (Distribution, Generation and Pipelines), Auto Finance, Industrials (Diversified, Manufacturing, Resources and Transportation), Infrastructure (Utilities), Securitization (ABS, ABCP) 1999 August, 2001 Portfolio Management: Government and Core Strategies Trading: Fixed Income, Currency and Derivative Trading Credit Focus: Government (Federal, Provincial, Municipal and CMB/NHA) 2007 December, 2009 Portfolio Management: Money Market Strategies Credit Focus: Infrastructure (Transportation), Insurance, Energy 2014 May, 2017 Trading: Fixed Income, Currency and Derivative Trading CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 45

46 Biography Garey J. Aitken, MBA, CFA Chief Investment Officer Developed Markets Equity Franklin Local Asset Management Franklin Bissett Investment Management Calgary, Alberta, Canada Garey Aitken is the chief investment officer of Franklin Bissett Investment Management, leading Franklin Bissett s equity operations and has been with Franklin Bissett since In addition to the chief investment officer responsibilities, Mr. Aitken shares co-lead manager responsibilities of the Franklin Bissett Canadian Equity Program (2003), Franklin Bissett Monthly Income and Growth Fund (since inception), Franklin Bissett Energy Corporate Class (since inception), Franklin ActiveQuant Canadian Fund (since inception), Franklin ActiveQuant U.S. Fund (since inception), Franklin Bissett Canadian Balanced Fund (2011) and Franklin Bissett Canadian All Cap Balanced Fund (2013). In June 2017, Mr. Aitken was appointed chief investment officer of Developed Markets Equity Franklin Local Asset Management. In this role, Mr. Aitken oversees developed market equity LAMs including Australia, Europe and the UK and the respective heads for each report directly to him. Past duties have included responsibility for Franklin Bissett s domestic small and microcap equity programs. In 2000, Mr. Aitken was named vice president, portfolio manager and in 2002 he was named vice president, director of equity research. Previous to joining Franklin Bissett, Mr. Aitken was an officer for a senior Canadian energy firm. Prior to that, he was employed with a Canadian chartered bank in a corporate lending role. Mr. Aitken holds a bachelor of commerce from the University of Alberta and an MBA from the University of British Columbia. He is a Chartered Financial Analyst (CFA) charterholder. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 46

47 Biography Timothy W. Caulfield, CFA Vice President, Director of Equity Research Franklin Bissett Investment Management Calgary, Alberta, Canada Tim Caulfield is the director of equity research at Franklin Bissett Investment Management and is co-lead manager of the Franklin Bissett Canadian Equity Program (2011), Franklin Bissett Canadian Equity Fund (2011), Franklin Bissett Monthly Income and Growth Fund (since inception), Franklin Liberty Risk Managed Canadian Equity ETF (since inception) and Franklin Liberty Core Balanced ETF (since inception). Mr. Caulfield s analyst responsibilities include coverage of the financials sector. Mr. Caulfield has been employing Franklin Bissett Investment Management s Growth at a Reasonable Price investment approach since joining the organization in Mr. Caulfield was named vice president, Canadian equities, in 2008 and assumed the role of director of equity research in Prior to joining Franklin Bissett Investment Management, Mr. Caulfield worked as sell-side research analyst and assistant director of research at a boutique firm. Mr. Caulfield holds a bachelor of commerce degree, with honors, from the University of British Columbia. He is a Chartered Financial Analyst (CFA) charterholder. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 47

48 Biography Les E. Stelmach, CFA Senior Vice President, Portfolio Manager Franklin Bissett Investment Management Calgary, Alberta, Canada Les Stelmach is a senior vice president and portfolio manager at Franklin Bissett Investment Management. He is co-manager of Franklin Bissett Energy Corporate Class (2011), Franklin Bissett Canadian Dividend Fund (2012) and Franklin Bissett Dividend Income Fund (2012). Mr. Stelmach s analyst responsibilities include coverage of the energy sector. Past duties have included responsibility for research coverage for various high yield equity securities, including equities within the healthcare, industrial, and utility sectors. In 2006, Mr. Stelmach joined Franklin Bissett as an income trust analyst. In 2009 he was named vice president and portfolio manager. Prior to joining Franklin Bissett, Mr. Stelmach was employed by BMO Nesbitt Burns (now BMO Capital Markets) for six years, most recently as a vice president and research analyst specializing in the royalty and income trust sector. Mr. Stelmach holds a bachelor of commerce degree in finance, with distinction, from the University of Alberta. He is a Chartered Financial Analyst (CFA) charterholder. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 48

49 Biography Ryan Crowther, CFA Vice President, Portfolio Manager Franklin Bissett Investment Management Calgary, Alberta, Canada Ryan Crowther is a vice president, portfolio manager at Franklin Bissett Investment Management and has been with the organization since Mr. Crowther shares co-lead manager responsibilities of the Franklin Bissett Canadian Dividend Strategies (2011), including Franklin Bissett Dividend Income Fund (2011), and Franklin Bissett Canadian Dividend Fund (2011). Mr. Crowther s analyst responsibilities include coverage of the materials sector. Mr. Crowther joined Franklin Bissett in 2008 as an equity analyst and was appointed to his current position in June His previous research responsibilities have included equity research coverage for the materials, energy infrastructure, utilities and retail sectors. Prior to joining Franklin Bissett, Mr. Crowther was a research associate and analyst at an investment boutique from 2002 to 2007, with coverage of companies in the industrials and materials sectors, among others. From 1999 to 2002, Mr. Crowther played a business development role in a Vancouver-based internet services provider, and was a founding partner of a domain registration company. Mr. Crowther holds a bachelor of commerce from the University of British Columbia. He is a Chartered Financial Analyst (CFA) charterholder. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 49

50 Biography Tom O Gorman, CFA Senior Vice President, Director of Franklin Bissett Fixed Income Franklin Bissett Investment Management Calgary, Alberta, Canada Tom O Gorman is a senior vice president, director of fixed income at Franklin Bissett Investment Management and has been with the organization since Mr. O Gorman shares co-lead responsibilities of Franklin Bissett Income Strategy Development and Implementation, including Franklin Bissett Core Plus Bond Fund (2010), Franklin Bissett Canadian Balanced Fund (2011), Franklin Bissett Canadian Bond Fund (2012), Franklin Bissett Canadian All Cap Balanced Fund (2013) and Franklin Bissett Monthly Income and Growth Fund (since inception). Prior to joining Franklin Bissett, Mr. O Gorman spent 20 years managing U.S. and Canadian fixed income. He spent 10 years with Prudential Financial as an analyst and was the head of portfolio management for Munich Re in NYC for 10 years, overseeing a $30 billion portfolio of Canadian and U.S. fixed income assets. Mr. O Gorman studied at Berklee College of Music, holds a bachelor s in business administration from William Paterson University and an MBA from Rutgers University. He is a Chartered Financial Analyst (CFA) charterholder. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 50

51 Biography Darcy Briggs, CFA, CPA, CGA, FRM Senior Vice President, Portfolio Manager Franklin Bissett Investment Management Calgary, Alberta, Canada Darcy Briggs is a senior vice president, portfolio manager with Franklin Bissett Investment Management and has been with the organization since Mr. Briggs shares co-lead responsibilities of Franklin Bissett Income Strategy Development and Implementation, including Franklin Bissett Canadian Short Term Bond Fund (2009), Franklin Bissett Corporate Bond Fund (2012), Franklin Bissett Canadian Bond Fund (since inception), Franklin Bissett Canadian All Cap Balanced Fund (2013), Franklin Bissett Core Plus Bond Fund (2015), Franklin Bissett Canadian Government Bond Fund (since inception), Franklin Bissett Monthly Income and Growth Fund (since inception) and Franklin Liberty Canadian Investment Grade Corporate ETF (since inception). Mr. Briggs has held various positions within Franklin Bissett s fixed income programs including lead manager of Franklin Bissett s separately managed and private client fixed income programs. Over the course of his career, Mr. Briggs worked as an equity analyst and as an accountant/analyst in the derivatives division of a large global insurance company. He spent eight years with a regional investment dealer assuming responsibilities in trading supervision, operations, and corporate finance, ending his tenure as vice president, finance and interim chief financial officer. Prior to joining Franklin Bissett, he was a private client portfolio manager with a Canadian chartered bank. Mr. Briggs holds a bachelor s of commerce with distinction from the University of Saskatchewan. He is a Chartered Financial Analyst (CFA) charterholder. Mr. Briggs also holds Chartered Professional Accountant (CPA), Certified General Accountant (CGA), Financial Risk Manager (FRM), Canadian Investment Manager (CIM), Fellow of the Canadian Securities Institute (FCSI) and Derivative Market Specialist (DMS) designations. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 51