Franklin Active Quant Canadian Fund For Dealer Use

Franklin Active. Quant Canadian Fund For Dealer Use Only | Not for Distribution to the Public

Topics for Discussion Investment Strategy, Philosophy and Process A Distinctive Approach to Quantitative Investing 4 Building the Franklin Active. Quant Strategies 5 Risk Is a Key Aspect of our Performance Objectives 6 The Portfolio Strategy Overview 8 Top 20 Equity Holdings 9 Sector Allocations 10 Investment Characteristics 11 Performance Statistics 13 Attractive New Pricing 14 Summary of Competitive Advantages 15 2 For Dealer Use Only | Not for Distribution to the Public

Investment Strategy, Philosophy and Process For Dealer Use Only | Not for Distribution to the Public

Quantitative Equity Investing— Franklin Active. Quant Strategies A Distinctive Approach to Quantitative Investing • AUM of CAD$0. 59 billion in strategies with an inception date going back to 2004 • The strategies are derived from empirical data and academics • The emphasis is on the risk/return profile, process and portfolio characteristics of each strategy • The strength of the process lies in its objectivity and rigor • The strategies are continually evaluated and refined over time As of March 31, 2019. For Dealer Use Only | Not for Distribution to the Public 4

Investment Methodology Building the Franklin Active. Quant Strategies IDENTIFY ATTRACTIVE BUSINESS/SECURITIES PORTFOLIO CONSTRUCTION Key Drivers • 40 holdings; neutral security weight at 2. 5% • Value • Individual weights typically range between 1. 5% and 3. 5%, striking a balance between minimizing non-systematic risk and allowing for our holdings to have a meaningful impact • Risk • Growth • Momentum • Variability of security weights in the portfolio is generally less than in the benchmark MONTHLY REBALANCING • Equities that have significantly declined in rank are eliminated and replaced by high-ranking equities not held • Equities that have significantly outperformed are trimmed back to 2. 5% 5 For Dealer Use Only | Not for Distribution to the Public

Risk Is a Key Aspect of our Performance Objectives Risk Management Integrated Independent and Insightful— Role of Investment Risk Management Group • Risk management is inherent in all aspects of the investment process including security selection, portfolio construction and the sell discipline • Investment risks, including ESG-related factors, are to be recognized and intentional • Risk is to be optimized, not minimized • Consult with portfolio managers • Provide portfolio managers with analytics, including performance attribution, portfolio exposures and ex-ante risk measures 6 For Dealer Use Only | Not for Distribution to the Public

The Portfolio For Dealer Use Only | Not for Distribution to the Public

Strategy Overview As of March 31, 2019 100% Canadian Securities Garey J. Aitken, MBA, CFA Chief Investment Officer Developed Markets Equity – Franklin Local Asset Management Co-Lead Manager Izabel Flis, CFA Vice President, Co-Lead Manager Concentrated Yet Diversified • 40 holdings • No sector constraints • Individual positions have a neutral weight of 2. 5% Fully Invested • Cash balances are normally between 1% and 5% • Current cash level is 1. 03% Market Cap Coverage • Investable universe bounded by requirements for market cap • Current portfolio market cap minimum is CAD$2. 59 billion Annual Turnover Target of 30%– 40% Source: Franklin Templeton Investments. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. For Dealer Use Only | Not for Distribution to the Public 8

Different Than the Benchmark Top 20 Equity Holdings As of March 31, 2019 Portfolio Name S&P/TSX Composite Index Weight (%) Name Weight (%) Open Text 3. 22 Royal Bank of Canada 6. 38 Waste Connections 3. 04 Toronto-Dominion Bank 5. 86 Quebecor 2. 98 Enbridge 4. 31 Canadian National Railway 2. 97 Bank of Nova Scotia 3. 84 Constellation Software 2. 89 Canadian National Railway 3. 83 Canadian Pacific Railway 2. 85 Suncor Energy 3. 03 Bank of Montreal 2. 80 Bank of Montreal 2. 81 Enbridge 2. 78 Trans. Canada 2. 44 Royal Bank of Canada 2. 77 Brookfield Asset Management 2. 40 Great-West Lifeco 2. 75 BCE 2. 35 Restaurant Brands 2. 70 Canadian Imperial Bank of Commerce 2. 06 Metro 2. 68 Manulife Financial 1. 96 Brookfield Asset Management 2. 68 Canadian Natural Resources 1. 94 Fortis 2. 66 Nutrien 1. 88 Norbord 2. 64 Canadian Pacific Railway 1. 71 Alimentation Couche-Tard 2. 59 Alimentation Couche-Tard 1. 52 National Bank of Canada 2. 56 Barrick Gold 1. 41 Rogers Communications 2. 52 Waste Connections 1. 37 Imperial Oil 2. 49 Sun Life Financial 1. 35 Intact Financial 2. 48 TELUS Total 55. 06 Total 1. 31 53. 75 Sources: Franklin Templeton Investments and Fact. Set. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Percentage may not equal 100% due to rounding. The information provided is not a recommendation to purchase, sell or hold any particular security. The securities identified do not represent the Fund’s entire holdings and in the aggregate may represent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the Fund or that securities sold will not be purchased. In addition, it should not be assumed that any securities transactions discussed were or will prove to be profitable. The portfolio manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the Top 20 Holdings list. For Dealer Use Only | Not for Distribution to the Public 9

Different Than the Benchmark Sector Allocations As of March 31, 2019 24, 76 Financials 13, 95 Energy Consumer Discretionary 3, 90 Materials 9, 36 9, 06 8, 87 Industrials Information Technology 4, 47 2, 66 4, 18 Utilities Health Care 0, 00 Real Estate 0, 00 Cash 10, 30 5, 75 Consumer Staples 18, 04 11, 43 4, 07 Communication Services 31, 72 11, 20 10, 98 8, 59 2, 06 3, 63 1, 03 0, 00 0% 10% 20% Franklin Active. Quant Canadian Fund Sources: Franklin Templeton Investments and Fact. Set. Totals may not equal 100% due to rounding. For Dealer Use Only | Not for Distribution to the Public 30% 40% S&P/TSX Composite Index 10

Investment Characteristics As of March 31, 2019 Franklin Active. Quant Canadian Fund Return on Equity S&P/TSX Composite Index Long Term Expectations vs. S&P/TSX Composite Index 21. 20% 11. 50% Higher Reinvestment Rate 11. 85 6. 47 Higher 5 -Year EPS Growth 11. 78% 8. 65% Higher P/E Multiple 15. 38 x 15. 85 x Lower 3 -Year Beta 0. 86 1. 00 Lower CAD$38. 5 B CAD$48. 1 B Weighted Average Market Capitalization Sources: Franklin Templeton Investments and Fact. Set. For Dealer Use Only | Not for Distribution to the Public — 11

Performance For Dealer Use Only | Not for Distribution to the Public

Performance Statistics (Net of Fees) As of March 31, 2019 8, 11% 5, 85% 5, 42% 1 Year 10, 80% 9, 27% 8, 99% 9, 49% 7, 87% 7, 36% 5, 40% 5, 44% 4, 87% 4, 70% 1 3 Years Franklin Active. Quant Canadian Fund – Series F 6, 41% 1 1 5 Years 1, 2 10 Years Canadian Equity Category Since Inception S&P/TSX Composite Index 1 Year 3 Year 5 Year 10 Year 2 4 2 1 Franklin Active. Quant Canadian Fund – Series F Overall 3 Year 5 Year 10 Year Morningstar Rating Quartile Ranking 3 7, 43% Sources: Franklin Templeton Investments and Morningstar Research Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. 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. Series F is available to investors participating in programs that do not require Franklin Templeton to incur distribution costs in the form of trailing commissions to dealers. As a consequence, the management fee on Series F is lower than on Series A. The gross of fees version of Series F does not exist and as a result, investors cannot purchase Series F securities on a gross of fees basis. Performance would have been lower with fees taken into account. 1. Annualized. 2. Inception date is September 20, 2004. 3. Canadian Equity Category. 13 Please refer to the “Important Disclosures” slide for additional information. For Dealer Use Only | Not for Distribution to the Public

Franklin Active. Quant Canadian Fund Reduction in Management Fees Old Management Fee (Prior to April 3, 2017) New, Lower Management Fee (Effective April 3, 2017) A 2. 00% 1. 65% F 1. 00% 0. 65% I* 1. 40% 1. 30% PF 0. 75% 0. 55% 0. 90% from first CAD$200, 000 to under CAD$2. 5 million 0. 75% on next CAD$2. 5 million to under CAD$5 million 0. 65% on next CAD$5 million and over 0. 60% on next CAD$5 million and over Series O *As of November 22, 2016, Series I is closed to new investors. For Dealer Use Only | Not for Distribution to the Public 14

Summary of Competitive Advantages Unique Quantitative Approach to Investing in Canadian Equities • High-conviction portfolios with the right balance of concentration and diversification • Risks and reward potential are clearly understood and well defined • Active portfolio management • Seeks consistent, superior absolute, relative and risk-adjusted returns • Effective April 3, 2017, reduced management fees will, in turn, provide investors with lower MERs 15 For Dealer Use Only | Not for Distribution to the Public

Appendix For Dealer Use Only | Not for Distribution to the Public

Portfolio Management 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 1998. 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 (sinception), Franklin Bissett Energy Corporate Class (sinception), Franklin Active. Quant Canadian Fund (sinception), Franklin Active. Quant U. S. Fund (sinception), Franklin Bissett Canada Plus Equity Fund (sinception), Franklin Bissett Canadian Balanced Fund (2011), Franklin Bissett Canadian All Cap Balanced Fund (2013), Franklin Bissett Small Cap Fund (2019) and Franklin Bissett Microcap Fund (2019). 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. 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. For Dealer Use Only | Not for Distribution to the Public 17

Portfolio Management IZABEL FLIS, CFA Vice President, Portfolio Manager Franklin Bissett Investment Management Calgary, Alberta, Canada Izabel Flis is a vice president, portfolio manager at Franklin Bissett Investment Management. Ms. Flis shares co-lead manager responsibilities of the Franklin Active. Quant Canadian Fund (2017), Franklin Active. Quant U. S. Fund (2017), Franklin Liberty Risk Managed Canadian Equity ETF (2017) and Franklin Liberty Core Balanced ETF (sinception). Mrs. Flis is also responsible for providing research coverage on the pipelines and infrastructure, retailing, consumer staples, communication services, and utilities sectors. Ms. Flis joined Franklin Bissett as a performance measurement analyst in 2001 and was promoted to different roles prior to her current position in 2017. Her past research responsibilities has included high yield equities, specializing in companies outside of the real estate and energy sectors. Ms. Flis holds a bachelor of commerce from the University of Calgary. She is a Chartered Financial Analyst (CFA) charterholder. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. For Dealer Use Only | Not for Distribution to the Public 18

Important Disclosures 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 or 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. General business, market, economic and political conditions could cause actual results to differ materially. The information presented is not a recommendation or solicitation to buy or sell any securities. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. 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. Series F is available to investors participating in programs that do not require Franklin Templeton to incur distribution costs in the form of trailing commissions to dealers. As a consequence, the management fee on Series F is lower than on Series A. The gross of fees version of Series F does not exist and as a result, investors cannot purchase Series F securities on a gross of fees basis. Performance would have been lower with fees taken into account. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. © 2019 Franklin Templeton Investments Corp. All rights reserved. Franklin Templeton Investments Canada is a business name used by Franklin Templeton Investments Corp. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. STANDARD & POOR’S®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. Standard & Poor’s does not sponsor, endorse, sell or promote any S&P index-based product. Additional Information for Performance Statistics Slide: As of March 31, 2019. © 2019 Morningstar. 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 is no guarantee of future results. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange -traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22. 5% receive 4 stars, the next 35% receive 3 stars, the next 22. 5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the 19 performance figures associated with its three-, five-and 10 -year (if applicable) Morningstar Ratings metrics. The weights are 100% three-year rating for For Dealer Use Only | Not for Distribution to the Public 36 -59 months of total returns, 60% five-year rating/40% three-year rating for 60– 119 months of total returns, and 50% 10 -year rating/30% five-year

Franklin Templeton Investments Gain From Our Perspective® Franklin Templeton Investments is a global leader in investment management with clients in over 170 countries. Here in Canada and abroad, we're dedicated to one goal: delivering exceptional asset management for our clients. At the core of our success are multiple independent investment teams—each with a focused area of expertise—from traditional to active quant, alternative strategies, multi-asset solutions and Active and Strategic Beta ETFs. All of these teams share a common commitment to excellence grounded in rigorous, fundamental research and robust, disciplined risk management. We combine our expertise in Canada with extensive global resources, and a focus on excellence. As a result, we've become a trusted partner to generations of advisors and investors. Franklin Templeton Investments Canada 200 King Street West, Suite 1500, Toronto, Ontario, M 5 H 3 T 4 Client Services Toll-free: 1. 800. 387. 0830 Fax: 416. 364. 1163 Sales Team Toll-free: 1. 800. 897. 7286 Fax: 416. 364. 1320 Founding Member of The Canadian Coalition for Good Governance Canadian offices: CALGARY • MONTREAL • TORONTO 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. • WILMINGTON International offices: ABU DHABI • AMSTERDAM • BEIJING • BRUSSELS • BUENOS AIRES • CAPE TOWN • CARACAS • CHENNAI DUBAI • DUBLIN • EDINBURGH • FRANKFURT • GENEVA • HONG KONG • HYDERABAD • ISTANBUL • LONDON LUXEMBOURG • MADRID • MELBOURNE • MEXICO CITY • MILAN • MUMBAI • NASSAU • PARIS • POZNAN RIO DE JANEIRO • SAO PAULO • SEOUL • SHANGHAI • SINGAPORE • STOCKHOLM • SYDNEY • TAIPEI TOKYO • VIENNA • WARSAW • ZURICH NYSE: BEN © 2019 Franklin Templeton Investments Corp. All rights reserved. For Dealer Use Only | Not for Distribution to the Public 4907_CAN_CAD_Series F