Franklin Bissett Strategic Income Fund A BALANCED AND VERSATILE APPROACH TO INCOME

Franklin Bissett Strategic Income Fund A BALANCED AND VERSATILE APPROACH TO INCOME

Franklin Templeton Investments Gain From Our Perspective At Franklin Templeton Investments, we re dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, we re able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the world s largest asset managers. This has helped us to become a trusted partner to individual and institutional investors across the globe. Focus on Investment Excellence At the core of our firm, you ll find multiple independent investment teams each with a focused area of expertise from traditional to alternative strategies and multi-asset solutions. And because our portfolio groups operate autonomously, their strategies can be combined to deliver true style and asset class diversification. All of our investment teams share a common commitment to excellence grounded in rigorous, fundamental research and robust, disciplined risk management. Decade after decade, Franklin Templeton has applied consistent, research-driven processes seeking to deliver strong, long-term results for our clients. Global Perspective Shaped by Local Expertise In today s complex and interconnected world, smart investing demands a global perspective. Franklin Templeton pioneered international investing over 60 years ago, and our expertise in emerging markets spans more than a quarter of a century. Today, our investment professionals are on the ground across the globe, spotting investment ideas and potential risks firsthand. These locally based teams bring in-depth understanding of local companies, economies and cultural nuances, and share their best thinking across our global research network. Strength and Experience Franklin Templeton is a global leader in asset management serving clients in over 150 countries. * We run our business with the same prudence we apply to asset management, staying focused on delivering relevant investment solutions, strong long-term results and reliable, personal service. This approach, focused on putting clients first, has helped us to become one of the most trusted names in financial services. * As of September 30, 2015. Clients are represented by the total number of unitholder accounts.

The Strategy A Versatile Approach to Income Franklin Bissett Strategic Income Fund offers a diversified mix of income-generating equity and fixed-income securities from Canada and around the world, seeking to deliver high monthly income, broad diversification and long-term capital appreciation. 1 A Balanced Portfolio with a Focus on Income The fund allocates roughly half of its assets to Canadian equities that pay high dividends and the other half to a diversified basket of Canadian and global fixed income securities. This balanced approach combines what the Franklin Bissett team believes to be the best Canadian and global yield opportunities in a single solution. 2 Tactically Managed to Adapt to Changing Markets The portfolio s mix of fixed income and equity securities can be adjusted (+/-10% of assets) to align with changing market conditions, selectively enhancing yield and/or reducing volatility over the short term. For added flexibility, the composition of the fixed income portion of the portfolio can be tactically rebalanced, shifting between domestic and global multi-sector bonds. 3 Access to a Broad Investment Universe Investors gain exposure across countries, currencies, and sectors by leveraging the expertise of a team dedicated to Canadian markets and a global fixed income team, supported by over 170 specialists. This broad expertise positions the fund to identify the best risk-adjusted income opportunities at home and abroad. Flexible Asset Allocation with Global Fixed Income Access Shifts +/-10% to enhance yield or reduce volatility Fixed Income 40% to 60% (neutral=50%) Equity Income 40% to 60% (neutral=50%) Cash & Short-Term Instruments +/-10% The fund seeks to capture the tax efficiency and growth potential of a multi-sector, multi-cap portfolio of Canadian dividend-paying stocks, combining them with the stability of Canadian bonds and the yield opportunities offered by global, multi-sector fixed income securities. www.franklintempleton.ca Franklin Bissett Strategic Income Fund 1

The Benefits 1 Strategic Rebalancing to Enhance Yield A key way to strengthen returns is by tapping into dividend yields on equity sectors. The fund managers seek out dividend-paying Canadian companies with a track record of generating strong revenue, earnings and cash flow. These companies tend to be more resilient in a soft economy, provide the possibility of favourable tax treatment and reduce the impact of inflation on the investor s income. Access to the global bond investment universe can also provide greater returns and improved risk management. By adding a global dimension to their existing domestic bonds allocation, investors may be able to further reduce interest-rate risk in their portfolio. Tapping into Dividend Income 1 As of September 30, 2015 Average Yield* Broadening Sector Exposure and Yield Potential 2 As of September 30, 2015 Exploring dividend opportunities in select equity sectors can enhance a portfolio s income. Diversifying across the universe of bonds helps further reduce interest-rate risk. 8.54% S&P/TSX Composite Total Return Index 3.25% FTSE TMX Canada Universe Bond Index 2.04% 6.54% 5.86% 4.72% 3.86% 3.88% 3.19% 2.26% 2.41% 2.43% 2.66% 2.94% 1.38% 1.19% Industrials Large Caps Financials Real Estate Energy Equity Income Federal Maple Provincial Municipal IG Corporate Global Corporate Emerging Market Debt Global High Yield Equity Income Sectors Domestic and Global Fixed Income Sectors 1. Source: Bloomberg, as of September 30, 2015. Industrials, Energy, Financials and Real Estate are represented by the Global Industry Classification Standard (GICS ). Large Caps is represented by S&P/TSX 60 Index and Equity Income is represented by S&P/TSX Equity Income Index. 2. Sources: Bloomberg and Franklin Templeton Investments, as of September 30, 2015. Federal represented by FTSE TMX Canada Federal Bond Index, Global Corporate represented by BarCap Global Aggregate Corporate Index, IG Corporate represented by FTSE TMX Canada Corporate Bond Index, Municipal represented by FTSE TMX Canada Municipal Bond Index, Provincial represented by FTSE TMX Canada Provincial Bond Index, and Maple represented by FTSE TMX Canada Maple Bond Index. Emerging Markets Debt and Global High Yield represented by JP Morgan EMBI Global Index and Credit Suisse High Yield Index, respectively. *Yield is the annual income paid by a security expressed as a percentage of its market price. 2 Franklin Bissett Strategic Income Fund www.franklintempleton.ca

2 Diversification Across Asset Classes for Growth and Capital Preservation Asset class performance is unpredictable. Investing across multiple asset classes can help protect gains, limit losses and smooth out averages. The portfolio s structure gives it the flexibility to pursue stocks in addition to the stabilizing effect and yield opportunities that can be offered by Canadian and global fixed-income investments. These asset classes have historically experienced low correlation among each other and benefit from different market conditions. Perhaps nothing better illustrates the need for a diversified investment solution than the chart below, which shows how various asset classes performed on a year-by-year basis from 2003 through 2014. The best-performing asset class is at the top of each column. For Strong Total Return, Diversification Matters Annual Return of Key Asset Classes Between 2003 and 2014 3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Best 42.74% 14.12% 26.29% 19.16% 11.14% 31.64% 75.10% 38.53% 10.51% 12.17% 14.75% 15.52% 25.51% 13.84% 19.68% 16.64% 7.41% 31.07% 31.94% 13.84% 9.67% 8.07% 13.26% 12.27% 16.10% 10.49% 16.38% 11.61% 3.68% 6.42% 30.97% 10.29% 8.26% 5.83% 7.76% 11.04% 6.69% 7.15% 6.46% 11.49% 2.01% -7.65% 18.68% 8.45% 8.08% 3.60% 6.03% 10.53% 4.65% 3.80% -0.14% 6.23% -7.15% -12.37% 5.41% 6.74% 0.30% 2.46% 4.55% 9.65% -7.97% 1.31% -0.30% 4.06% -9.28% -31.17% -9.19% 0.98% -9.08% 2.01% 3.94% 8.79% Worst -14.84% -3.26% -6.88% 3.94% -12.94% -46.61% -10.04% 0.04% -14.17% 1.91% -1.19% -0.09% 3. Source: 2015 Morningstar. Global high yield bonds are represented by the Credit Suisse High Yield Index; Global bonds are represented by the Barclays Global Aggregate TR Index; Canadian bonds are represented by the FTSE TMX Canada Universe Bond Index, formerly DEX Universe Bond Index; Canadian small stocks are represented by BMO Small Cap Blended; bonds are represented by the Barclays Aggregate Bond Index; Canadian large stocks are represented by the S&P/TSX 60 and Canadian Mix= 50:50= Canadian large stocks : Canadian bonds. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. Indexes are unmanaged, and one cannot invest directly in an index. www.franklintempleton.ca Franklin Bissett Strategic Income Fund 3

3 Exposure to Sectors and Investment Types The fund s broad diversification across multiple types of investments, geographic regions and market sectors is instrumental to managing the ups and downs of the financial markets over time. This approach can lead to reduced volatility by limiting the impact of the performance of one particular company or sector on the portfolio as a whole, enabling investors to see stronger returns with less risk. Equity Diversification 4 As of September 30, 2015 Financials... 41.13% Energy... 28.49% Industrials... 9.83% Consumer Discretionary.......... 7.90% Materials... 3.53% Utilities... 3.13% Telecommunication Services... 3.08% Health Care... 2.17% Consumer Staples...0.74% Fixed Income Diversification 4 As of September 30, 2015 High Yield... 23.55% Global Government... 19.46% Floating Rate... 16.89% Canadian Corporate... 14.62% Global Corporate... 8.05% Canadian Provincial... 7.85% MBS/ABS... 3.63% CMBS... 2.81% Canadian Federal... 1.93% Canadian Municipal... 0.94% Bank Loans... 0.27% Equity... 0.01% 4 Attractive Risk Profile Solid performance is important, but prudent investors are also concerned about volatility. Clients invested for the past three years have experienced less volatility than those invested in the Canadian equity market. 5 Standard Deviation vs. Benchmarks 5 3-Year Period Ended September 30, 2015 Franklin Bissett Strategic Income Fund 7.75% S&P/TSX Composite Index 8.16% Barclays Global Aggregate Index 7.68% 4. Equity Sector Allocation figures may not add up to 100% due to rounding. Fixed Income Sector Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors. Portfolio breakdowns and holdings are subject to change. Information is historical and may not reflect current or future portfolio characteristics. 5. Source: Morningstar Research Inc., Standard & Poors and Barclays as of September 30, 2015. The Canadian equity market is represented by the S&P/TSX Composite Index. 4 Franklin Bissett Strategic Income Fund www.franklintempleton.ca

5 The Power of Consistent Dividend Income The income component of dividend-paying stocks can be a key element of an investor s total return. From October 2005 September 2015, dividend-paying stocks outperformed non-dividend-paying stocks by 33 percentage points. Franklin Bissett Strategic Income Fund allocates roughly 50% of its assets to dividendpaying stocks. Dividends Can Drive Greater Total Return 6 As of September 30, 2015 120% 80% 62% Dividend Payers 40% 29% Non-Dividend Payers 0% -40% 2005 2006 2007 2009 2010 2011 2012 2013 2014 YTD 2015 I m looking for my investments to help cover my monthly expenses. As long as I can find an investment that gives me a reasonable level of income with a comfortable level of risk, I m happy. 6. Canadian Dividend Study, RBC Capital Markets Quantitative Research as of September 30, 2015. www.franklintempleton.ca Franklin Bissett Strategic Income Fund 5

6 Reap the Benefits of Dividends: Favourable Tax Treatment Dividend income is taxed more favourably than interest income. As shown in the provinces below, investors receiving a $100 dividend-eligible distribution will keep approximately 30% more of their earnings with dividend income than interest income. Favourable Tax Treatment 7 : $100 Dividend Distribution Keep 32% More $80.71 $61.00 Keep 32% More $74.22 $56.30 Keep 32% More $70.48 $53.59 Keep 29% More $64.78 $50.03 Alberta British Columbia Ontario Quebec We expect the fund s asset mix to continue to provide an attractive combination of high and stable monthly distributions, greater capital stability than a pure equity portfolio and greater potential for capital gains than a pure bond portfolio, in the coming quarters and years. GAREY J. AITKEN AND TOM O GORMAN, Co-Lead Managers, Franklin Bissett Strategic Income Fund 7. Source: Taxtips.ca as of January 1, 2015. 6 Franklin Bissett Strategic Income Fund www.franklintempleton.ca

Are You Looking for Income? Look for an Established Track Record of Distributions If you count on your investments to supplement your income, two of your biggest concerns may be capital preservation and reliability. Your standard of living depends on your ability to cover monthly bills and adapt to any unexpected expenses that may arise. Franklin Bissett Strategic Income Fund pays monthly income distributions to its investors on a regular basis, while growing the investment capital. The fund has paid out a distribution every month since making its first payment in January 2012. The table below shows a $100,000 investment made at the fund s inception in December 2011. While the amount has varied from month to month (as shown below), these distributions have been paid out consistently. Distribution Summary 8 As of September 30, 2015 DISTRIBUTIONS MARKET VALUE DISTRIBUTIONS Month Monthly Cumulative Cashed Reinvested Jan 2012 $271 $271 $102,559 $102,830 Feb $271 $541 $105,118 $105,667 Mar $271 $812 $104,429 $105,246 Apr $271 $1,083 $104,823 $105,916 May $271 $1,353 $101,378 $102,709 Jun $271 $1,624 $100,787 $102,385 Jul $271 $1,895 $103,346 $105,259 Aug $271 $2,165 $103,937 $106,136 Sep $271 $2,436 $106,004 $108,523 Oct $271 $2,707 $105,807 $108,599 Nov $271 $2,977 $104,626 $107,665 Dec $516 $3,493 $104,921 $108,502 Jan 2013 $271 $3,764 $106,693 $110,614 Feb $271 $4,035 $106,890 $111,099 Mar $271 $4,305 $107,776 $112,301 Apr $271 $4,576 $108,760 $113,609 May $271 $4,847 $108,366 $113,480 Jun $271 $5,117 $106,693 $112,011 Jul $271 $5,388 $107,382 $113,019 Aug $271 $5,659 $106,299 $112,164 Sep $271 $5,929 $108,563 $114,839 Oct $271 $6,200 $110,827 $117,520 Nov $271 $6,471 $109,941 $116,867 Dec $2,883 $9,354 $108,563 $118,484 Jan 2014 $271 $9,625 $107,972 $118,135 Feb $271 $9,896 $109,547 $120,154 Mar $320 $10,215 $109,154 $120,073 Apr $271 $10,486 $109,449 $120,696 May $271 $10,757 $109,843 $121,429 Jun $369 $11,126 $111,220 $123,360 Jul $271 $11,397 $109,646 $121,913 Aug $271 $11,667 $112,205 $125,060 Sep $369 $12,036 $107,283 $119,986 Oct $271 $12,307 $104,331 $116,986 Nov $271 $12,578 $100,689 $113,206 Dec $4,396 $16,974 $92,618 $109,107 Jan 2015 $271 $17,244 $90,354 $106,759 Feb $271 $17,515 $93,012 $110,218 Mar $271 $17,786 $88,976 $105,757 Apr $271 $18,056 $92,126 $109,823 May $271 $18,327 $89,764 $107,329 Jun $271 $18,598 $86,417 $103,652 Jul $271 $18,868 $82,283 $99,018 Aug $271 $19,139 $80,217 $96,856 Sep $271 $19,410 $77,067 $93,380 Total Initial Investment $100,000 TOTAL DISTRIBUTION Paid Out To You VALUE OF FUND ACCOUNT After Distributions Were Cashed VALUE OF FUND ACCOUNT After Distributions Were Reinvested 8. Source: Franklin Templeton Investments, as of September 30, 2015. Funds and indices used: Franklin Bissett Strategic Income Fund - Series A. All distribution data and calculations are excluding capital gains to reflect the payment of income and cash received from underlying securities less any expenses. The monthly distribution rate is the sum of all the income plus any return of capital paid to investors per unit during one month, divided by the fund s month-end unit price. The distribution rate is net of all applicable fees. Past performance does not guarantee future results. www.franklintempleton.ca Franklin Bissett Strategic Income Fund 7

Performance Results Compounded Returns 9 Periods Ended September 30, 2015 Inception Date 1-Year 2-Year 3-Year Since Inception Franklin Bissett Strategic Income Fund Series A 12/29/2011-22.17% -9.83% -4.89% -1.81% Seasoned Investment Experts in Their Categories GAREY J. AITKEN, CFA Chief Investment Officer, Franklin Bissett Investment Mgmt., 23 Years Industry Experience Mr. Aitken is the chief investment officer of Franklin Bissett Investment Management and has been with Franklin Bissett since 1998. In addition to the chief investment officer responsibilities, Mr. Aitken shares co-lead manager responsibilities of the Franklin Bissett Canadian Equity Fund (2003) and other equity-oriented funds. Prior to joining Franklin Bissett, Mr. Aitken was an officer for a senior Canadian energy firm. Previous 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. TOM O GORMAN, CFA Senior Vice President, Director of Fixed Income, Franklin Bissett Investment Mgmt., 25 Years Industry Experience Mr. O Gorman shares co-lead responsibilities of the Franklin Bissett Income Strategy Development and Implementation and multiple funds. Prior to joining Franklin Bissett in 2010, Mr. O Gorman was a senior portfolio manager at Liberty Bankers Life Insurance and also worked at Munich Re Capital Management in New York as managing director of fixed income for 10 years, overseeing a $30 billion portfolio of Canadian and fixed-income assets. He graduated from William Paterson University with a Bachelor of Administration and Rutgers University with a Masters of Business Administration. Mr. O Gorman earned his Chartered Financial Analyst (CFA ) designation in 1999. LES STELMACH, CFA Senior Vice President, Portfolio Manager, Franklin Bissett Investment Mgmt., 16 Years Industry Experience Mr. Stelmach is a co-lead manager of Franklin Bissett Canadian High Dividend Fund (2009) and additional dividend-oriented funds. In 2012, he was named a TopGun Investment Mind by Brendan Wood International, based upon nominations submitted by Canada s leading sell-side analysts and sales professionals in the Brendan Wood Panel. Mr. Stelmach graduated from the University of Alberta and received a Bachelor of Commerce with distinction. He earned his Chartered Financial Analyst (CFA ) designation in 2002. HEATHER MCOUATT, CFA Vice President, Portfolio Manager, Franklin Bissett Investment Mgmt., 20 Years Industry Experience Ms. McOuatt shares co-lead responsibilities of numerous fixed-income funds and focuses on corporate credit and sector allocation strategies. She joined Franklin Bissett in 1997 and her prior responsibilities have included fixed income analyst, bond trader and money market trader. She graduated from the University of Regina with a Bachelor of Administration. Ms. McOuatt earned her Chartered Financial Analyst (CFA ) designation in 2002. 9. Source: Franklin Templeton Investments, as of September 30, 2015. Past performance does not guarantee future results. CFA and Chartered Financial Analyst are trademarks owned by the CFA Institute. 8 Franklin Bissett Strategic Income Fund www.franklintempleton.ca

Franklin Bissett Strategic Income Fund Reasons to Invest The Strategy 1 2 3 Allocates roughly half its assets to dividend-paying Canadian equities and the other half to Canadian and global fixed income. Tactically adapts to changing markets by adjusting fixed income and equity allocation +/-10%. Targets investment exposure across countries, currencies and sectors, and aims to provide a monthly income stream. The Benefits 1 2 3 Provides broad diversification by leveraging the expertise of Canadian market specialists, supported by the strength of Franklin Templeton s global platform. Generates monthly dividend distribution and long-term capital growth. Tax-efficient distributions paid consistently on a monthly basis. The Results 1 2 3 Paid out a distribution every month since making its first payment in January 2012. Generated cumulative distributions totaling $19,410 since inception.8 Attractive risk profile with less volatility than the broader Canadian equity market.10 Franklin Bissett Strategic Income Fund SERIES A,F,I,M,O CDN$ CORPORATE CLASS SERIES A,F CDN$ CORPORATE CLASS SERIES I,O,R,S,T CDN$ Series A Front End 3542 Series A Front End 3548 Series I 3552 Series A DSC 3544 Series A DSC 3550 Series O 3553 Series A Low Load 3543 Series A Low Load 3549 Series R 3554 Series F 3545 Series F 3551 Series S 3555 Series I 3546 Series T Front End 3556 Series M 3816 Series T DSC 3558 Series O 3547 Series T Low Load 3557 10. The broad Canadian equity market is represented by the S&P/TSX Composite Index. www.franklintempleton.ca Franklin Bissett Strategic Income Fund 9

Franklin Templeton Investments Corp. 5000 Yonge Street, Suite 900 Toronto, ON M2N OA7 fax (416) 364-1163 (800) 387-0830 www.franklintempleton.ca For more information on Franklin Bissett Strategic Income Fund or Franklin Templeton Solutions, please call (800) 387-0830, speak to your investment advisor or visit www.franklintempleton.ca. Indexes are unmanaged and one cannot invest directly in an index. The information presented herein is considered reliable at the present time; however, we do not represent that it is accurate or complete, or that it should be relied upon as such. The information presented herein is not a recommendation or solicitation to buy or sell securities. Mutual fund distributions are not guaranteed, are set and may change at the discretion of Franklin Templeton Investments Corp. Unlike fixed-income securities, there is no obligation to distribute any fixed amount, and reductions in, or suspensions of, distributions may occur that would reduce yield. Distributions are not an indication of performance, rate of return, or yield. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts documents before investing. The indicated rates of return are historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Franklin Bissett Investment Management is part of Franklin Templeton Investments Corp. Investors should carefully consider a fund s investment goals, risks, charges and expenses before investing. To obtain a prospectus or fund facts documents, which contains this and other information, talk to your financial advisor, call us at (800) 387-0830 or visit franklintempleton.ca. Please carefully read a prospectus before you invest or send money. 2015 Franklin Templeton Investments Corp. All rights reserved. 3542 INVE 09/15