Separately Managed Accounts

Why Franklin Templeton?

A Separately Managed Account (SMA) offers a personalized approach to investing using a customized portfolio of securities owned by an individual or institutional investor.

This type of investing allows clients to:

  • work with their financial advisor to select an investment manager to create a personalized portfolio that meets their requirements;
  • own individual securities in their portfolios and with the ability to restrict the purchase of certain securities or types of securities;
  • allow for funding the account with securities in kind or cash; and
  • have the potential for more tax flexibility through tax gain/loss selling.

A Unified Managed Account (UMA) can encompass every investment vehicle (e.g. SMA mandates, mutual funds, stocks, bonds and exchange traded funds) in an investor's portfolio, all in a single account.

History

1940 Templeton founded

1947 Franklin founded

1982 Bissett & Associates founded

1992 Templeton enters SMA market

1994 Bissett & Associates enters SMA market

2000 Franklin Templeton Investments Corp. acquires Bissett & Associates

2005 Bissett Investment Management enters UMA market

2017 SMA/UMA = $3.1 billion*

Experience*

23+ years of experience makes Franklin Templeton a pioneer in the Canadian SMA/UMA market

Leadership*

With $20+ billion in SMA and UMA assets, Franklin Templeton has grown to be one of the largest managers in Canada

Partnership*

15 SMA mandates currently offered through a large group of dealer firms

*As of December 31, 2017.

Leadership & Experience

Franklin Bissett Investment Management

  • Entered the SMA market in 1994
  • Based in Calgary and operating as an autonomous portfolio management group of Franklin Templeton Investments Corp. in Canada. This allows for:
    • autonomy and independence in the managing of investments. This is important for consistency in its track record.
    • shared resources with Franklin Templeton Investments in areas such as compliance infrastructure, technology tools and sales/marketing support —essentially providing Bissett with a strong operating platform in Canada

For over 20 years, Franklin Bissett Investment Management has been applying a disciplined team-oriented approach to managing equity, income and balanced portfolios for Canadian investors. The investment team meets twice a week—ensuring the investment style remains consistent across all Franklin Bissett portfolios.

Growth At a Reasonable Price - Franklin Bissett managers are committed to GARP-style investing. They employ bottom-up research to identify stocks with modest price-to-earnings ratios and companies with a history of sustainable, replicable growth.

Income and Equities: A Balanced Approach - The Franklin Bissett Asset Mix Team strives to maintain a balance between equities and income securities, and domestic and foreign investments, to suit market conditions.

Stable, Tax-Advantage Income - Portfolio decisions for each Franklin Bissett income fund are based on a combination of macro-level and security-level research and analysis. Their conservative income approach results in fully-diversified portfolios characterized by relatively low downside risk and attractive yield characteristics.

Templeton Global Equities Group

  • Founded in 1940 and has been involved in SMAs since 1992
  • Rooted in the investment philosophy of Sir John Templeton, the group has a long-established presence in the SMA area, and is accustomed to the various requirements of investors including Socially Responsible Investing
  • Acquired by Franklin in 1992, which gave the company a strong international platform from where to further grow and diversify
  • With over 70 years of experience* and 43 research offices, Templeton is a pioneer in global investment management
  • The group consistently adheres to a disciplined strategy, based on four fundamental cornerstones: search globally; seek value; perform bottom-up research; and practice patient, long-term investing

Templeton is a pioneer in global, international and emerging market equity investing since 1940. The team believes independent thinking, discipline, and patience are essential to capturing long-term opportunities. To this end, the entire Templeton organization is built around conducting deep, on-the-ground research and using it to deliver unique global investment insights.

Templeton has consistently applied its disciplined, value-driven approach to global and international markets investing. All investment decisions are guided by three core tenets:

Value - Seek companies that the team believes are trading at a discount to what their research indicates the company may be worth.

Patience - Security prices can fluctuate more widely than underlying security values. In their opinion, markets should recognize and correct these mispricings over time. They maintain the discipline to look beyond the market's short-term noise.

Bottom-Up - Identify value through rigorous fundamental analysis of a company's business to determine what the team considers to be its economic worth based on projected future earnings, cash flow, or asset value potential.

Franklin Equity Group

  • Brings together more than six decades of investment experience offering in-depth expertise in managing growth and hybrid/balanced equity strategies that cover global, regional and sector specialties
  • Driven by the conviction that superior risk-adjusted returns can be achieved over time by using a team-oriented, collaborative approach and disciplined, bottom-up fundamental research

The Franklin Equity Group brings together more than six decades of investment experience offering in-depth expertise in managing growth and hybrid/balanced equity strategies that cover global, regional and sector specialties. They are driven by the conviction that superior risk-adjusted returns can be achieved over time by using a team-oriented, collaborative approach and disciplined, bottom-up fundamental research.

The team has investments in high-quality companies with the potential for long-term sustainable growth can provide significant opportunities for investors. The team focuses on companies across the full global opportunity set that meet our criteria of:

Growth - Focus on companies with the potential to produce sustainable earnings and cash flow growth.

Quality - Seek high-quality companies with strong management teams and financial strength.

Valuation - Assess whether the growth opportunity is already reflected in the stock price.

*Source: Franklin Templeton Investments as at December 31, 2017

Our Commitment

At Franklin Templeton Investments Canada, we believe that our service model for financial advisors is quite unique among SMA money managers. We are committed to Separately Managed Accounts through our dedicated portfolio managers, operations and trading specialists and sales support for financial advisors across Canada. Our personalized approach to investing can help individual and institutional investors achieve their financial goals.