Active Investment Management to Capture Evolving Market Opportunities
The Franklin Templeton Solutions† team actively manages the Tapestry Private Portfolios. Asset class weightings are able to move fluidly within the Portfolios' weighting range based on market conditions and the team's economic outlook. FT Solutions has full discretion to change the individual fund holdings and/or their weightings at any time. Each Portfolio provides exposure to an extensive range of asset classes, geographic regions, market capitalizations and management styles by way of mutual funds and additional diversification through SICAV* funds and ETFs:
- SICAV funds are Franklin Templeton Investments mandates, based in Luxembourg, that are not normally available to Canadian investors.
- ETFs or Exchange Traded Funds can be used to help provide more focused access to certain opportunities which may not be readily available to the same degree through investments in mutual funds. This enables Tapestry’s portfolio managers to quickly adjust a Portfolio’s exposure to different sectors and markets according to the short- and medium-term outlook.
Exposure to Alternative Investment Strategies
Tapestry allocates a portion of each actively-managed Portfolio to alternative investment strategies. An alternative investment strategy component is an asset class that provides additional diversification and opportunities beyond traditional fixed income and equities.
The Tapestry Private Investment Program® can also undertake a partial currency hedge at the Portfolio level if and when conditions warrant.
A Tax-Efficient Corporate Class Structure:
- Under Corporate Class, investors can switch to other funds or Portfolios within the Corporate Class structure without incurring immediate tax consequences. Taxes are deferred until one exits the structure.1 This strategy enables investors to make changes to their investments, while preserving more of their assets from taxation.
- When a regular income stream is needed, Flexible Series T can help investors get the most from their investments. Flexible Series T lets them receive regular distributions up to 8%,2 with this income being treated as tax-efficient Return of Capital (ROC) initially, then as tax-efficient capital gains in later years.3
† Franklin Templeton Solutions (formerly Franklin Multi-Asset Strategies FMAS) is a world-wide team dedicated to global portfolio based solutions, drawing on the expertise of a number of Franklin Templeton affiliates. The advisor to the FT Solutions mandates in Canada, including the Tapestry Private Investment Program® is Fiduciary Trust Company of Canada, a wholly owned subsidiary of Franklin Templeton Investments Corp.
Part of Fiduciary Trust Company of Canada. Previously named Franklin Multi Asset Strategies (FMAS).
*Société d'Investissement àz Capital Variable (SICAV)
1. Switches between funds within the Corporate Class structure are not taxable transactions. Capital gains taxes will be payable by the investor if the investor redeems or switches out of the Corporate Class structure.
2. Flexible Series T Return of Capital (ROC) may be up to 6% on Tapestry Balanced Income and up to 8% on Tapestry Balanced Growth, Growth and Global Growth. These distributions are not guaranteed and may change at the discretion of the investment manager.
3. The Adjusted Cost Base (ACB) is lowered by each monthly distribution. If shares are sold, the market value minus the current ACB is taxed as a capital gain. When an investor’s ACB reaches zero and ROC is received in full, taxes on capital gains begin to be incurred.
Tapestry Private Investment Program® is a trademark of Franklin Templeton Investments Corp.
For more information on our Tapestry Private Investment Program® , please speak to your advisor or call, the Franklin Templeton Investments client service team at 1.800.387.0830.
Effective at the close of market February 14, 2014, all series and classes of the Tapestry Private Investment Program will be capped to new investors.