Dealer Use Only Bissett Dividend Income Fund. 2 For Broker/Dealer Use Only. Not for Distribution to...
Transcript of Dealer Use Only Bissett Dividend Income Fund. 2 For Broker/Dealer Use Only. Not for Distribution to...
Dealer Use Only
Bissett Dividend Income Fund
2
For Broker/Dealer Use Only. Not for Distribution to the Public.
70% of returns were from dividends
Reinvested Dividends Have Provided Greater Returns Over time, total returns from dividend-paying stocks* have been greater than those of non-payers
Source: Morningstar Research Inc., as of June 30, 2012.*Includes dividend payouts, dividend growth and any increase in price. $10,000 initial investment on January 1, 1973. The S&P/TSX Composite Total Return Index includes reinvested dividends and capital gains.
$320,404
$94,583
3
For Broker/Dealer Use Only. Not for Distribution to the Public.
Favourable Tax Treatment of Dividends Dividend Income is Worth More Than Interest Income
Source: Taxtips 2012 Ontario.Assumes 2012 Ontario marginal tax rates: Interest = 46.41%; Eligible Dividends = 29.54%.
After Tax Proceeds of $100
4
For Broker/Dealer Use Only. Not for Distribution to the Public.
Potential Offset To Inflation Actual Dividends Paid Have Increased Beyond Inflation Over Time
S&P/TSX Composite 12 Months Dividend Per Share Headline CPI*
Total Growth: +283%
Total Increase: +26%
Source: Bloomberg, as of June 30, 2012.*Headline Consumer Price Index is not adjusted for seasonality which includes food and energy prices.
Total Growth vs. Inflation Total Growth
5
For Broker/Dealer Use Only. Not for Distribution to the Public.
The Impact of Dividends on Performance
Historically, Dividend Payers and Increasing Dividends have outperformed Non-Dividend Payers, but this has been less consistent in more recent periods
10 Years* 5 Years* 3 Years* 1 Year
S&P/TSX Composite Total Return Index 7.6% -0.7% 6.7% -10.3%
S&P/TSX Dividend Payers 8.5% 0.0% 7.2% -7.7%
S&P/TSX Increasing Dividends 8.7% -0.6% 7.7% -7.2%
S&P/TSX Non-Dividend Payers 2.8% -7.0% 0.1% -31.7%
*Annualized. Source: RBC. Weighted compound average annual total returns as of June 30, 2012.
6
For Broker/Dealer Use Only. Not for Distribution to the Public.
1.Source: Franklin Templeton Investments (FTI), as of 06.30.12, unless otherwise noted. Assets under management (AUM) combines the U.S. and non-U.S. AUM of the investment management subsidiaries of the parent company, Franklin Resources, Inc. [NYSE: BEN], a global investment organisation operating as Franklin Templeton Investments. AUM includes discretionary and advisory accounts, including pooled investment vehicles, separate accounts and other vehicles, as well as some accounts that may not be eligible for inclusion in composites as defined by the firm’s policies. Numbers may not equal 100% due to rounding. AUM may also include advisory accounts with or without trading authority. In addition, the Firm may provide asset allocation advisory services, and if the assets are not allocated to FTI products, then the assets are not included in AUM. Numbers may not equal 100% due to rounding. Please note that the table above does not include all affiliates under FTI.2.Franklin Templeton Multi-Asset Strategies (FTMAS) AUM as of 06.30.12. FTMAS invests in various Franklin Templeton and external investment platforms; AUM for FTMAS is reported under each utilized investment platform, as well as for FTMAS. 3.Each local asset manager may be considered as an entity affiliated with or associated to Franklin Templeton Investments by virtue of being wholly-owned subsidiaries, or other entities or joint ventures in which Franklin Resources, Inc., owns a partial interest, which may be a minority interest. Local asset management AUM includes AUM for Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited. Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited are both indirect wholly-owned subsidiaries of Franklin Resources, Inc. 4.Bissett Investment Management is not registered with securities regulators. It falls under the registration held by Franklin Templeton Investment Corp. Bissett Investment Management is an operating division of Franklin Templeton Investments Corp.For firms claiming compliance with the Global Investment Performance Standards (GIPS®), figures for the assets under management above may not correspond to the assets under management as defined by GIPS®. For GIPS® purposes, Franklin Equity Group and Franklin Templeton Fixed Income Group are both units of the firm Franklin; Templeton Emerging Markets Group and Templeton Global Equity Group are both units of the firm Templeton.
FRANKLIN TEMPLETON INVESTMENTSTotal Combined Assets Under Management (AUM): CA$719.9 Billion
Franklin Equity Group
Templeton Emerging
Markets Group
Templeton Global Equity
GroupMutual Series
Franklin Templeton
Fixed Income Group
Franklin TempletonLocal Asset Management
Franklin Templeton Real Estate Advisors
Darby
Franklin Templeton Multi-Asset Strategies
Bissett Investment
Management
Established 1947 1987 1940 1949 1970 1993 1984 1994 1982 1982
Focus
U.S. Equity
Global Equity
International Equity
Emerging Markets Equity
Global Equity
International Equity
Global Equity
International Equity
U.S. Equity
Distressed Debt & Merger Arbitrage
Global Fixed Income
Regional Fixed Income
Emerging Market Debt
Global Equityand Fixed Income
Regional Equity and Fixed Income
Single-Country Equity and Fixed Income
Global Private Real Estate
Global Real Estate Securities
Global Private Real Assets
Emerging Markets Private Equity & Mezzanine Finance
Infrastructure
Multi-Asset
Fund-of-Funds Strategies
Global Tactical Asset Allocation
Canadian Equity
Fixed Income
Balanced
SMA Programs
StyleGrowth, Value,
Core/HybridCore Value Core Value Deep Value
Single Sector, Multi-Sector
Multi-Sector, Single- or
Multi-Region
Multi-Sector, Multi-Region
Multi-Sector Multi-StyleGARP,
High Quality, Duration Neutral
AUM CA$140.1 Billion CA$46.5 Billion CA$94.9 Billion CA$57.7 Billion CA$323.7 Billion CA$24.8 Billion CA$4.2Billion CA$1.7 Billion CA$29.6 Billion CA$13.6 Billion
Institutional AUM: CA$153.9 BillionSingle Business Development, Relationship Management, and Consultant Relations Platform
EQUITY FIXED INCOME SPECIALISED STRATEGIES
Franklin Resources, Inc.Investment Platform OverviewFranklin Templeton offers a full range of investment capabilities from a broad breadth of investment management platforms
7
For Broker/Dealer Use Only. Not for Distribution to the Public.
Bissett – 30 Years of Canadian Experience and Expertise
• Founded in 1982 and joined Franklin Templeton Investments in 2000
• Bissett AUM as of June 30, 2012: (CAD) $13.6 Billion
• Focus on Canadian capital markets
• Mandates include fundamental equity, quantitative equity, fixed income and balanced strategies
• Fundamental equity strategies include large/mid cap, dividend, high dividend, small cap, and microcap
• Bissett’s goal: superior investment performance and controlled, profitable growth across investment strategies
• Bissett remains an independent investment manager within the Franklin Templeton organization
8
For Broker/Dealer Use Only. Not for Distribution to the Public.
Organizational Chart
Don ReedPresident & CEO
Franklin Templeton Investments - Canada
Chris LankesterInvestment Operations
Analyst
John LuskEVP, Investment Management
Franklin Resources, Inc.
Garey AitkenChief Investment Officer
Bissett Investment Management
Christopher MolumphyEVP/CIO, Fixed Income Investments
Franklin Resources, Inc.
Les StelmachVP/Portfolio
ManagerHigh Dividend
Richard FortinVP/Portfolio
ManagerSmall/ Microcap
Izabel FlisResearch Analyst
Tim CaulfieldVP/Director
Equity Research
Juliette JohnSVP/Portfolio
ManagerDividend &
SMA Programs
Thomas O’GormanSVP/Director Fixed Income
Bissett Investment Management
Farahana Jobanputra
Director Investment
Administration
Ryan CrowtherVP/Portfolio
ManagerDividend &
SMA Programs
Jayson MossResearch Analyst
Bissett is supported by Franklin Templeton’s Global Business Units:
Darcy BriggsVP/Portfolio
Manager
Sevrika FisherTrading Assistant
Jeff JohnsonVP/Portfolio
Manager
Brian CalderBond Trader
Heather McOuattVP/Portfolio
Manager
Portfolio Analysis and Investment Risk
Global Portfolio & Corporate Services
Global Investment Management Services
Global Investment Risk Management
Global Equity TradingGlobal Compliance & Global Investor
Advice Compliance
Leslie LundquistSVP/Portfolio
ManagerHigh Dividend
Mitchell McCartney
Portfolio Assistant
Jason HornettVP/Portfolio Manager
Quant. Programs
Ralph Lindenblatt
SVP/PortfolioManager
Small / Microcap
Shelly WilsonExecutive Assistant
Celine BaumgartenAdmin Clerk
Andrew BuntainVP/Institutional
Portfolio Manager
As of February 7, 2012
Dealer Use Only
Bissett Dividend Income Fund
10
For Broker/Dealer Use Only. Not for Distribution to the Public.
GROWTH AT A REASONABLE PRICE INVESTMENT STYLE
Invest in high quality equities and income securities to participate in their long-term capital appreciation and dividend growth
Business/Security Attributes - Equities Portfolio Construction
• Proven operational track record
• Higher than benchmark dividend yield
• Consistent dividend policy
• Earnings consistency
• High profitability
• Financial stability
• Reasonable valuation
• Bias toward common equities for growth
• Invests in Canadian and U.S. dividend-paying common and preferred equities
• Invests in Canadian and foreign fixed income
- Overweight credit product
- Diversified portfolio of investment grade issues
- Duration shorter than the DEX Universe
Objective
To provide consistent total returns and below market volatility over a full business cycle
Investment Style and Process
11
For Broker/Dealer Use Only. Not for Distribution to the Public.
Investment Style and Process
• A low-volatility approach to equity and fixed income investing
• Conservative investors seeking:- Capital appreciation- Attractive portfolio yield- Tax-advantaged income
• Each equity must pay a moderate but consistent dividend- Emphasis is placed on a growing dividend stream over time
• Fixed income holdings consist primarily of investment grade corporate debentures- Objective is to generate higher yield than government issues
• Preferred share exposure enhances income and reduces overall portfolio volatility
• Security selection- Growth-oriented issuers that meet our investment criteria are targeted - Objective is to identify securities trading at attractive spreads relative to benchmark
and government issues - Limited to investment grade credits; credit quality of P3 or higher
12
For Broker/Dealer Use Only. Not for Distribution to the Public.
• Portfolio Construction- Invest in at least 6 of 10 S&P/TSX sectors- Set target weights, not target prices, for individual securities
• Risk Management- Rebalance to target weights- Enforce style discipline at total Portfolio level- Sell Discipline
• Deterioration in fundamentals• Excessive valuations
Investment Style and Process
13
For Broker/Dealer Use Only. Not for Distribution to the Public.
• Return Objectives
– Absolute return objective: Target long-term absolute returns that compensate for the related risks
– Relative return objective: Target excess returns relative to the benchmark
• Risk Objectives
– Primary risk objective: To ensure that the absolute return objective is achieved– Secondary risk objective: To maintain less return volatility than the benchmark
• Risk-Adjusted Return Objective
– Target a below market beta and positive alpha
Absolute, Relative and Risk-Adjusted Return Objectives
14
For Broker/Dealer Use Only. Not for Distribution to the Public.
Risk Management
RISK MANAGEMENTOur approach to risk management aligns with our objective to deliver both strong long-term absolute and
risk-adjusted returns
INVESTMENT SECURITY SELECTION• Invest where expected return potential
exceeds our estimate of the associated cost of equity
• Return potential assessed based on long term fundamentals, valuation analysis and consideration of inherently uncertain future fundamentals
• Focus on high quality businesses with appropriate capital structures and long term dividend stability
PORTFOLIO CONSTRUCTION• Target portfolio diversification on an inter and
intra sector basis• Recognize correlations among holdings• Individual weights strike a balance between
minimizing non-systematic risk and allowing for our best ideas to have a meaningful impact
• Variability of security weights in the portfolio is generally less than in the benchmark
PORTFOLIO RISK EVALUATION• Risks are continually reviewed to confirm that exposures are
UNDERSTOOD and consistent with our INTENT and CONVICTIONS
• Portfolio Risk Evaluation is supported by Franklin Templeton Investments’ independent Global Investment Performance Services, Portfolio Analysis and Investment Risk Group
15
For Broker/Dealer Use Only. Not for Distribution to the Public.
Bissett EquitiesInvestment Style and Process
• Sector exposure is an outcome of our bottom up security selection process
• Sector over and under weightings reflect the availability of securities which meet our investment characteristics within each sector
• Due to our disciplined style significant sector over and under weightings occur
• Consequently, the Fund exhibits significant benchmark risk
• However, absolute return volatility is reduced due to our focus on businesses with more moderate revenue/cash flow/earnings volatility
16
For Broker/Dealer Use Only. Not for Distribution to the Public.
Fixed Income Investment Style and Process
• Generate above average yield-to-maturity and stable income- Overweight corporate issues - Rigorous macro research and analysis- Invest at inflection point of yield curve
• Manage investment risk through:- Laddered maturity schedule- Diversify corporate holdings; investment grade credits only- Thorough credit analysis
17
For Broker/Dealer Use Only. Not for Distribution to the Public.
Asset MixAs of June 30, 2012
Canadian Equities, 61.7%Fixed Income,
19.5%
U.S. and Foreign Equities, 14.4%
Preferred Shares,1.6%
Cash,2.8%
18
For Broker/Dealer Use Only. Not for Distribution to the Public.
BDIF* S&P/TSX Composite Difference BPS
Financials 30.1% 32.1% -200
Energy 25.4% 24.7% 70
Telecommunication Services 12.6% 5.3% 730
Consumer Discretionary 8.7% 4.6% 410
Industrials 10.0% 5.9% 410
Information Technology 0.1% 1.1% -100
Consumer Staples 3.4% 3.1% 30
Utilities 7.7% 2.0% 570
Materials 2.1% 20.0% -1,790
Health Care 0.0% 1.6% -160
Total 100% 100%
Canadian Equity Sector ExposureAs of June 30, 2012
Source: Franklin Templeton Investments, Bloomberg. *Bissett Dividend Income Fund, % of Canadian equities.
19
For Broker/Dealer Use Only. Not for Distribution to the Public.
S&P/TSX Composite Index
35 equities owned BDIF* Weight Rank
Enbridge 5.3% 2.3% 10
TELUS (non-voting shares) 5.2% 1.4%** 17
Royal Bank of Canada 4.4% 5.4% 1
TransCanada 4.3% 2.2% 12
Canadian Imperial Bank of Commerce
4.2% 2.1% 14
BCE 4.1% 2.3% 9
Toronto Dominion Bank 4.1% 5.2% 2
Calian Technologies 4.1% 0.0% -
Bank of Nova Scotia 4.1% 4.3% 3
Power Financial 4.0% 0.4% 57
Concentration 43.8% 24.2%
Top 10 Canadian Equity HoldingsAs of June 30, 2012
Source: Franklin Templeton Investments, Bloomberg. *Bissett Dividend Income Fund, % of Canadian equities. **Weight refers to TELUS Corporation.
20
For Broker/Dealer Use Only. Not for Distribution to the Public.
Investment Characteristics BDIF* S&P/TSX Composite
Profitability
• Trailing Return on Equity• Trailing Reinvestment Rate• Trailing Dividend Payout Ratio
17.0%561 bps65.1%
15.3%762 bps41.6%
Growth
• 5 Year Historical Earnings per Share Growth• 5 Year Historical Dividend Growth
0.5%4.0%
4.4%7.9%
Consistency
• Earnings Variability 9.1% 11.4%
Valuation•Trailing Price to Earnings Ratio•Price to Book Value•Current Dividend Yield
13.9x2.2x4.8%
13.6x1.8x3.2%
Other•Debt/Equity•Beta•Weighted Average Market Capitalization
0.52:167% of the index
$20.9 Billion
0.45:1
$25.6 Billion
Portfolio Characteristics - Canadian EquityAs of June 30, 2012
Source: CPMS.*Bissett Dividend Income Fund, Canadian equity component.
21
For Broker/Dealer Use Only. Not for Distribution to the Public.
Source: Franklin Templeton Investments, Bloomberg. *Bissett Dividend Income Fund, % of U.S. and Foreign equities.
U.S. and Foreign Equity Sector Exposure As of June 30, 2012
BDIF* S&P 500 Difference BPS
Consumer Staples 41.0% 11.2% 2,980
Health Care 17.3% 12.0% 530
Energy 15.9% 10.8% 510
Consumer Discretionary 12.4% 11.0% 140
Industrials 7.7% 10.5% -280
Information Technology 4.5% 19.7% -1,520
Utilities 1.0% 3.7% -270
Financials 0.2% 14.3% -1,410
Materials 0.0% 3.4% -340
Telecommunication Services 0.0% 3.2% -320
Total 100% 100%
22
For Broker/Dealer Use Only. Not for Distribution to the Public.
S&P 500
20 equities owned BDIF* Weight Rank
Diageo 8.8% 0.0% -
Philip Morris International 8.4% 1.2% 13
Chevron 8.1% 1.7% 7
Abbott Laboratories 7.7% 0.8% 23
Johnson & Johnson 7.6% 1.5% 8
General Mills 7.6% 0.2% 112
Genuine Parts 6.3% 0.1% 297
Altria Group 6.3% 0.6% 37
McDonald's 6.2% 0.7% 26
3M 6.1% 0.5% 41
Concentration 73.1% 7.3%
Top 10 U.S. and Foreign Equity HoldingsAs of June 30, 2012
Source: Franklin Templeton Investments, Bloomberg. *Bissett Dividend Income Fund, % of U.S. and Foreign equities.
23
For Broker/Dealer Use Only. Not for Distribution to the Public.
Investment Characteristics BDIF* S&P 500
Profitability
•Trailing Return on Equity•Trailing Reinvestment Rate•Trailing Dividend Payout Ratio
27.8%1,454 bps
41.9%
22.2%1,143 bps
27.3%
Growth
•5 Year Historical Earnings per Share Growth•5 Year Historical Dividend Growth
4.9%6.0%
7.8%7.7%
Consistency •Earnings Variability 10.1% 21.5%
Valuation•Trailing Price to Earnings Ratio•Price to Book Value•Current Dividend Yield
13.3x3.3x3.4%
13.8x2.2x2.3%
Other•Debt/Equity•Beta•Weighted Average Market Capitalization
0.85:164% of the index
$117.2 Billion
0.71:1
$110.4 Billion
Portfolio Characteristics – U.S. and Foreign EquityAs of June 30, 2012
Source: CPMS.*Bissett Dividend Income Fund, % of combined U.S. and Foreign equities.
24
For Broker/Dealer Use Only. Not for Distribution to the Public.
Performance Attribution12-Month Period Ended June 30, 2012
•The Fund returned 3.6%*, compared to the Fund’s custom benchmark**, which returned -2.5% for the 12-month period
Contributors:• Canadian equities posted positive returns in comparison to sharp declines in the benchmark index
− Security selection and higher than benchmark exposure to the Telecommunications Services sector led to positive contribution
− Security selection in Industrials (Bird Construction, Russel Metals) added value and outweighed the lack of exposure to railway equities which were also strong during the period
− Security selection in the Energy sector (Mullen Group and Enbridge) contributed to performance during the period
− Low exposure to the Materials sector which was weak due to volatile commodity prices and poor stock performance
• U.S. equities outperformed the benchmark; however, contribution was partly offset as portfolio allocation was lower than the S&P 500 in the blended benchmark
Detractors:• Overweight and poor security selection in the domestic Consumer Discretionary sector
− Thomson Reuters, Reitman’s (Canada) posted disappointing results• Fixed Income was a slight drag on total portfolio performance notwithstanding decent absolute returns
− Overweight spread product and shorter than benchmark duration were negative factors*Series A.**15% DEX Universe Bond Index, 5% BMO Nesbitt Burns Preferred Share Index, 60% S&P/TSX Composite Total Return Index, 20% S&P 500 Total Return Index (CDN$). Please note benchmark has been modified since inception.
25
For Broker/Dealer Use Only. Not for Distribution to the Public.
Performance History (Net of Fees)As of June 30, 2012, Series A
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Bissett Dividend Income Fund
5.2% 11.6% 18.7% -20.0% -3.1% 10.3% 12.7% 9.4% 10.7% -0.9%
Custom Benchmark***
-2.6% 14.0% 24.9% -22.7% 2.9% 13.1% 13.4% 9.2% 15.4% -9.8%
Difference 7.8% -2.4% -6.2% 2.7% -6.0% -2.8% -0.7% 0.2% -4.7% 8.9%
3 Month 1 Year 2 Year* 3 Year* 4 Year* 5 Year* 10 Year* SI**
Bissett Dividend Income Fund
-1.4% 3.6% 9.9% 10.2% 4.9% 2.0% 5.1% 5.4%
Custom Benchmark***
-3.2% -2.5% 7.1% 8.1% 1.8% 1.6% 5.8% 8.0%
Difference 1.8% 6.1% 2.8% 2.1% 3.1% 0.4% -0.7% 2.6%
Source: FTI, Bloomberg. *Annualized. **Inception Date November 30, 2000.***15% DEX Universe Bond Index, 5% BMO Nesbitt Burns Preferred Share Index, 60% S&P/TSX Composite Total Return Index, 20% S&P 500 Total Return Index (CDN$). Please note benchmark has been modified since inception.
26
For Broker/Dealer Use Only. Not for Distribution to the Public.
Investment Outlook
• Canadian equity benchmarks are now lagging their U.S. counterparts after more than a decade of outperformance due to the greater resources exposure in our benchmark
• Evidence of slower economic growth as well as continued volatility in capital markets may limit the potential for further valuation expansion
• Defensive investments may be positioned for decent relative performance if the current environment persists
• Corporate earnings have been supported by aggressive cost cutting but opportunities to reduce expenses are declining; revenues have not recovered sufficiently to maintain the pace of earnings growth in the absence of more expense reduction
• Investors should expect a period of more modest capital appreciation; more meaningful contribution to total return from dividends than from capital gains is likely in the near term
• We expect that our defensive GARP investment style with an emphasis on yield should continue to deliver attractive returns with low volatility over the long-term
27
For Broker/Dealer Use Only. Not for Distribution to the Public.
Equity Investment Expertise
1. Bissett Income Fund’s new name, as of 06.24.2011; the Fund is an all cap, high-yield equity solution with a target yield of 2.5 times the benchmark yield.2. The target yield of Bissett Canadian Dividend Fund is 1.5 times the benchmark yield. 3. Bissett Dividend Income Fund is an 80/20 equity/bond solution.4. Bissett Canadian Equity Fund has a target yield similar to the benchmark yield.
Fundamental Research Approach
Bissett Canadian Dividend Fund2
Bissett Canadian Equity Fund4
Bissett Dividend Income Fund3
Bissett Canadian High Dividend Fund1
Bissett Microcap Fund
Bissett Small Cap Fund
Quantitative Research Approach
Bissett All Canadian Focus Fund
Bissett U.S. Focus Fund
Sector Fund
Bissett Energy Corporate Class Smaller Market Capitalization Larger
Bissett MicrocapFund
BissettSmall CapFund
Bissett Canadian High Dividend Fund1
Bissett Canadian Equity Fund4
Bissett CanadianDividend Fund2
Bissett Dividend Income Fund3
Dealer Use Only
Appendix
29
For Broker/Dealer Use Only. Not for Distribution to the Public.
Juliette L. John, CFASenior Vice President, Portfolio ManagerBissett Investment Management
Juliette John is a senior vice president, portfolio manager of Bissett Investment Management and has been with the firm since 1994. Ms. John co-manages the Bissett Dividend Income Fund (1998), Bissett Canadian Dividend Fund (since inception), the Bissett Canadian Dividend Program (1998) and the Separately Managed Account program that spans mandates from Large Cap Canadian equities to Dividend and Balanced mandates (1996). She is also a member of the Equity Research Team with research responsibility for the Canadian commercial banks.
Past duties have included portfolio management for institutions (1998), Canadian equity research for various sectors (1995) and equity trading (1994).
Prior to joining Bissett, Ms. John was employed with the securities brokerage division of a Canadian chartered bank.
Ms. John holds a bachelor's degree in commerce from the University of Calgary and earned her Chartered Financial Analyst (CFA) Charterholder designation in 1998.
Co-Lead Manager
30
For Broker/Dealer Use Only. Not for Distribution to the Public.
Ryan Crowther, CFAVice President, Portfolio ManagerBissett Investment Management
Ryan Crowther is a vice president and portfolio manager at Bissett Investment Management. Mr. Crowther shares co-lead manager responsibilities of the Bissett Canadian Dividend Fund (2011), Bissett Dividend Income Fund (2011) and the separately managed account (SMA) platform, as well as equity research coverage of the materials sector.
Ryan joined Bissett in 2008 as an equity analyst and was appointed to his current role in June 2011. His past duties have included equity research coverage of a number of sectors at Bissett, including materials, energy infrastructure, utilities and retail. Prior to joining Bissett, Mr. Crowther was a research associate and analyst at Salman Partners 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 degree from the University of British Columbia. He is a Chartered Financial Analyst (CFA) Charterholder.
Co-Lead Manager
31
For Broker/Dealer Use Only. Not for Distribution to the Public.
• Strong free cash flow generation over time
• Visible runway for earnings growth for years to come
• Consistent dividend increases over extensive time frame
• Industry leader with strong competitive position
• Impressive operational track record
• Disciplined capital allocation
• Strong balance sheet
Enbridge (TSX:ENB)
32
For Broker/Dealer Use Only. Not for Distribution to the Public.
Enbridge (TSX:ENB)As of June 30, 2012
All numbers in Canadian Dollars.Daily pricing of ENB is from January 1, 2006 to June 30, 2012.Source: Bloomberg.
33
For Broker/Dealer Use Only. Not for Distribution to the Public.
• A general contractor engaged in domestic commercial, industrial and institutional projects
• Impressive long term track record of profitability and growth
• Dividend-friendly policy, generally having paid out more than half of its free cash flow historically
• Strong balance sheet profile (significant cash position) provides investors with downside protection in the event of a significant decline in business activity or margins
• Recent acquisition of H.J. O'Connell diversifies Bird’s profile and should prove meaningfully accretive to cash flow over the coming year
Bird Construction (TSX:BDT)
34
For Broker/Dealer Use Only. Not for Distribution to the Public.
Bird Construction (TSX:BDT)As of June 30, 2012
All numbers in Canadian Dollars.Daily pricing of BDT is from February 24, 2006 to June 30, 2012.Source: Bloomberg.
35
For Broker/Dealer Use Only. Not for Distribution to the Public.
Name Industry Since Firm Since Responsibilities
Garey Aitken, CFA®, MBA
Chief Investment Officer1993 February, 1998
Chief Investment Officer
Portfolio Management: Canadian Equity Program
Tim Caulfield, CFA®
VP, Director Equity Research1999 January, 2007
Portfolio Management: Canadian Equity Program
Research: Diversified Financials and Insurance, Information Technology
Juliette John, CFA®
SVP, Portfolio Management1994 May, 1994
Portfolio Management: Dividend & Separately Managed Account Program
Research: Commercial Banks
Ryan Crowther, CFA®
VP, Portfolio Management2002 February, 2008
Portfolio Management: Dividend & Separately Managed Account Program
Research: Materials
Leslie Lundquist, CFA®
SVP, Portfolio Management1992 May, 1992 Portfolio Management: High Dividend Equity
Les Stelmach, CFA®
VP, Portfolio Management2000 January, 2006
Portfolio Management: High Dividend Equity
Research: Energy, Real Estate
Ralph Lindenblatt, CFA®
SVP, Portfolio Management1998 January, 2001
Portfolio Management: Small/ Micro Cap Equity
Research: Small/ Mid Cap across all sectors
Richard Fortin, CFA®
VP, Portfolio Management1996 January, 2009
Portfolio Management: Small/ Micro Cap Equity
Research: Small/ Mid Cap across all sectors
Jason Hornett, CFA®
VP, Portfolio Management1997 November, 1997 Portfolio Management: Quantitative Strategies
Andrew Buntain, CFA®
VP, Institutional Portfolio Manager1995 May, 2007
Communication of BIM process, philosophy and strategies to internal and external constituencies
Izabel Flis
Research Analyst2001 January, 2001
Research: Pipelines and Infrastructure, Retailing, Cable, Broadcasting, Consumer Staples, Telecommunication Services, Utilities
Jayson Moss, CFA®
Research Analyst2004 November, 2011 Research: Consumer Discretionary, Industrials, Health Care
Bissett Equity Group: Years of Experience and Responsibilities
*CFA® and Chartered Financial Analyst ® are registered trademarks owned by CFA Institute
36
For Broker/Dealer Use Only. Not for Distribution to the Public.
Name Industry Since Firm Since Responsibilities
Chris Lankester
Investment Operations Analyst2000 November, 2000 Investment Operations
Mitchell McCartney
Portfolio Assistant2011 May, 2011 Investment Operations
Farahana Jobanputra, MBA
Director, Investment Administration2008 January, 2008 Investment Operations & Administration
Shelly Wilson
Executive Assistant2000 February, 2000 Support Portfolio Management Team
Celine Baumgarten
Admin. Clerk2008 October, 2008 Administrative Duties
Bissett Equity Group: Years of Experience and Responsibilities
37
For Broker/Dealer Use Only. Not for Distribution to the Public.
Sector Sub-Group Analyst Coverage
Energy Les Stelmach
Pipelines, Infrastructure Izabel Flis
Materials Ryan Crowther
Industrials Jayson Moss
Consumer Discretionary Jayson Moss
Retailing, Cable, Broadcasting Izabel Flis
Consumer Staples Izabel Flis
Health Care Jayson Moss
Financials Commercial Banks Juliette John
Diversified Financials & Insurance Tim Caulfield
Real Estate Les Stelmach
Information Technology Tim Caulfield
Telecommunication Services Izabel Flis
Utilities Izabel Flis
Sector Research CoverageCanadian Equity, Dividend and High Dividend Programs
38
For Broker/Dealer Use Only. Not for Distribution to the Public.
Name Industry Start Date Firm Start Date Responsibilities
Thomas O’Gorman, MBA, CFASVP, Director of Fixed Income
1990 June 2010
Director of Fixed IncomePortfolio ManagerStrategy Development & ImplementationEconomic and Credit Analysis
Heather McOuatt, CFAVP, Portfolio Manager
1995 December 1997Portfolio ManagerStrategy Development & Implementation Credit and Sector Analysis
Darcy Briggs, CFA, CGA, FRMVP, Portfolio Manager
1994 January 2005Portfolio ManagerStrategy Development & ImplementationEconomic and Credit Analysis
Jeffrey Johnson, CFA, FRM, MBAVP, Portfolio Manager, Money Market Trader
1997 May 2005Portfolio Manager / TraderCash Management Corporate Paper Analysis
Brian Calder, CFPBond Trader
2000 August 2001Bond TraderBond Market AnalysisProvincial Reviews
Sevrika FisherFixed Income Trading Assistant
2007 October 2010 Fixed Income Trading Assistant
Bissett Fixed Income Group: Years of Experience and Responsibilities
39
For Broker/Dealer Use Only. Not for Distribution to the Public.
Thank YouQuestion Period
The indicated rates of return are historical annual compounded total returns including changes in unit or share value and reinvestment of all distributions and dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. 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. Speculation or stated beliefs about future events, such as market and economic conditions, company or security performance, upcoming product offerings or other projections represent the beliefs of the speaker and do not necessarily represent the views of Franklin Templeton Investments Corp. General business, market, economic and political conditions could cause actual results to differ materially from what the speaker presently anticipates or projects. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Franklin Templeton Investments is one of the world’s largest publicly-traded investment management companies,
delivering a truly global perspective to investors for over 60 years. With values that have withstood the test of time,
Franklin Templeton Investments provides global and domestic investment advisory services to the Franklin,
Templeton, Bissett and Mutual Series funds and institutional accounts, including private wealth management
solutions through Fiduciary Trust Company of Canada.
www.franklintempleton.ca
Franklin Templeton Investments Corp.5000 Yonge Street, Suite 900, Toronto, ON M2N 0A7Client Services Toll-free: 1.800.387.0830 Fax: 416.364.1163Sales Team Toll-free: 1.800.897.7286 Fax: 416.364.1320TTY: 1.800.908.8145
Founding Member of The Canadian Coalition for Good Governance
Canadian offices: CALGARY • HALIFAX • OTTAWA • MONTREAL • TORONTO • VANCOUVER • WINNIPEG
U.S. offices: FT. LAUDERDALE • FORT LEE • LOS ANGELES • MIAMI • NEW YORK CITY • NORWALK • RANCHO CORDOVA • SALT LAKE CITY SAN MATEO • SHORT HILLS • ST. PETERSBURG • WASHINGTON D.C.• WILLMINGTON
International offices:ABUDHABI • AMSTERDAM • BEIJING • BRUSSELS • BUENOS AIRES • CAPE TOWN • CARACAS CHENNAI • DUBAI • DUBLIN EDINBURGH • FRANKFURT • GENEVA • HONG KONG • HYDERABAD • ISTANBUL• JOHANNESBURG • LONDON • LUXEMBOURG MADRID • MELBOURNE • MEXICO CITY • MILAN • MOSCOW • MUMBAI • NASSAU • PARIS • POZNAN • RIO DE JANEIRO SAO PAULO • SEOUL • SHANGHAI • SINGAPORE • STOCKHOLM • SYDNEY • TAIPEI • TOKYO • VIENNA • WARSAW • ZURICH
NYSE: BEN
Bissett Investment Management is part of Franklin Templeton Investments Corp. Fiduciary Trust Company of Canada is a wholly owned subsidiary of Franklin Templeton Investments Corp.