UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05583
Franklin Templeton Variable Insurance Products Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrants telephone number, including area code: (650) 312-2000
Date of fiscal year end: 12/31
Date of reporting period: 06/30/19
Item 1. | Reports to Stockholders. |
Internet Delivery of Shareholder Reports: Effective January 1, 2021, as permitted by regulations adopted by the SEC, you may not be receiving paper copies of the Funds annual or semiannual shareholder reports by mail, unless you specifically request them from the insurance company that offers your variable annuity or variable life insurance contract or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a shareholder report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company or your financial intermediary electronically by following the instructions provided by the insurance company or by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.
This notice is not legally a part of the shareholder report.
Franklin Templeton Variable Insurance
Products Trust Semiannual Report
MASTER CLASS 5
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Performance Information
Semiannual Report |
i |
Franklin VolSmart Allocation VIP Fund
This semiannual report for Franklin VolSmart Allocation VIP Fund covers the period ended June 30, 2019.
Class 5 Performance Summary as of June 30, 2019
The Funds Class 5 Shares posted a +12.89% total return* for the six-month period ended June 30, 2019.
*The Fund has an expense reduction and a fee waiver associated with any investments it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 4/30/20. Fund investment results reflect the expense reduction and fee waiver; without these reductions, the results would have been lower.
Performance reflects the Funds Class 5 operating expenses, but does not include any contract fees, expenses or sales charges. If they had been included, performance would be lower. These charges and deductions, particularly for variable life policies, can have a significant effect on contract values and insurance benefits. See the contract prospectus for a complete description of these expenses, including sales charges.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown.
Semiannual Report |
FVA-1 |
FRANKLIN VOLSMART ALLOCATION VIP FUND
1. Source: Morningstar.
2. Source: FactSet. The Funds Blended Benchmark was calculated internally and rebalanced monthly and was composed of 60% S&P 500, 30% Bloomberg Barclays U.S. Aggregate Bond Index and 10% Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index.
One cannot invest directly in an index, and an index is not representative of the Funds portfolio. Please see Index Descriptions following the Fund Summaries.
3. Source: Bureau of Labor Statistics.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Funds Statement of Investments (SOI).
FVA-2 |
Semiannual Report |
FRANKLIN VOLSMART ALLOCATION VIP FUND
Semiannual Report | FVA-3 |
FRANKLIN VOLSMART ALLOCATION VIP FUND
FVA-4 | Semiannual Report |
FRANKLIN VOLSMART ALLOCATION VIP FUND
Semiannual Report |
FVA-5 |
Class 5 Fund Expenses
As an investor in a variable insurance contract (Contract) that indirectly provides for investment in an underlying mutual fund, you can incur transaction and/or ongoing expenses at both the Fund level and the Contract Level: (1) transaction expenses can include sales charges (loads) on purchases, surrender fees, transfer fees and premium taxes; and (2) ongoing expenses can include management fees, distribution and service (12b-1) fees, contract fees, annual maintenance fees, mortality and expense risk fees and other fees and expenses. All mutual funds and Contracts have some types of ongoing expenses. The table below shows Fund-level ongoing expenses and can help you understand these costs and compare them with those of other mutual funds offered through the Contract. The table assumes a $1,000 investment held for the six months indicated. Please refer to the Fund prospectus for additional information on operating expenses.
Actual Fund Expenses
The table below provides information about the actual account values and actual expenses in the columns under the heading Actual. In these columns the Funds actual return, which includes the effect of ongoing Fund expenses but does not include the effect of ongoing Contract expenses, is used to calculate the Ending Account Value. You can estimate the Fund-level expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number under the headings Actual and Fund-Level Expenses Paid During Period (if Fund-Level Expenses Paid During Period were $ 7.50, then 8.6 x $ 7.50 = $64.50). In this illustration, the estimated expenses paid this period at the Fund level are $64.50.
Hypothetical Example for Comparison with Other Mutual Funds
Under the heading Hypothetical in the table, information is provided about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other mutual funds offered through the Contract. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds offered through the Contract.
Please note that expenses shown in the table are meant to highlight ongoing costs at the Fund level only and do not reflect any ongoing expenses at the Contract level, or transaction expenses at either the Fund or Contract levels. In addition, while the Fund does not have transaction expenses, if the transaction and ongoing expenses at the Contract level were included, the expenses shown below would be higher. You should consult your Contract prospectus or disclosure document for more information.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||
Share Class |
Beginning Account Value 1/1/19 |
Ending Account Value 6/30/19 |
Fund-Level Expenses Paid
During |
Ending Account Value 6/30/19 |
Fund-Level Expenses Paid
During |
Net Annualized Expense Ratio2 | ||||||||||||
Class 5 |
$1,000 | $1,128.90 | $4.22 | $1,020.83 | $4.01 | 0.80% |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated abovein the far right columnmultiplied by the simple average account value over the period indicated, and then multiplied by 181/365 to reflect the one-half year period.
2. Reflects expenses after fee waivers and expense reimbursements. Does not include any ongoing expenses of the Contract for which the Fund is an investment option or acquired fund fees and expenses.
FVA-6 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
Franklin VolSmart Allocation VIP Fund
Six Months Ended (unaudited) |
Year Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Class 2 |
||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||
(for a share outstanding throughout the period) |
||||||||||||||||||||||||
Net asset value, beginning of period |
$10.82 | $11.67 | $10.10 | $ 9.68 | $10.20 | $10.07 | ||||||||||||||||||
Income from investment operationsa: | ||||||||||||||||||||||||
Net investment incomeb,c |
0.11 | 0.21 | 0.16 | 0.16 | 0.10 | 0.11 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
1.28 | (1.02 | ) | 1.41 | 0.28 | (0.42 | ) | 0.25 | ||||||||||||||||
Total from investment operations |
1.39 | (0.81 | ) | 1.57 | 0.44 | (0.32 | ) | 0.36 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income and net foreign currency gains |
| (0.04 | ) | | ( | )d | (0.05 | ) | (0.23 | ) | ||||||||||||||
Net realized gains |
(0.14 | ) | | | (0.02 | ) | (0.15 | ) | ( | )d | ||||||||||||||
Total distributions | (0.14 | ) | (0.04 | ) | | (0.02 | ) | (0.20 | ) | (0.23 | ) | |||||||||||||
Net asset value, end of period | $12.07 | $10.82 | $11.67 | $10.10 | $ 9.68 | $10.20 | ||||||||||||||||||
Total returne |
12.87% | (6.93)% | 15.54% | 4.39% | (3.12)% | 3.60% | ||||||||||||||||||
Ratios to average net assetsf | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliatesg |
1.12% | 1.10% | 1.14% | 1.25% | 1.77% | 1.97% | ||||||||||||||||||
Expenses net of waiver and payments by affiliatesg |
0.90% | h | 0.75% | h | 0.73% | h | 0.73% | h | 0.93% | 1.08% | h | |||||||||||||
Net investment incomec |
1.83% | 1.85% | 1.44% | 1.50% | 1.30% | 1.07% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s) |
$37 | $33 | $36 | $31 | $8,703 | $10,201 | ||||||||||||||||||
Portfolio turnover rate |
3.72% | 6.28% | 5.69% | 1.00% | 95.15% | 22.04% |
aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Funds shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bBased on average daily shares outstanding.
cRecognition of net investment income by the Fund is affected by the timing of declaration of dividends by the Underlying Funds and exchange traded funds in which the Fund invests.
dAmount rounds to less than $0.01 per share.
eTotal return does not include fees, charges or expenses imposed by the variable annuity and life insurance contracts for which Franklin Templeton Variable Insurance Products Trust serves as an underlying investment vehicle. Total return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gDoes not include expenses of the Underlying Funds and exchange traded funds in which the Fund invests. The weighted average indirect expenses of the Underlying Funds and exchange traded funds was 0.17% for the period ended June 30, 2019.
hBenefit of expense reduction rounds to less than 0.01%.
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
FVA-7 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
FINANCIAL HIGHLIGHTS
Franklin VolSmart Allocation VIP Fund (continued)
Six Months Ended (unaudited) |
Year Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Class 5 |
||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||
(for a share outstanding throughout the period) |
||||||||||||||||||||||||
Net asset value, beginning of period |
$10.80 | $11.65 | $10.07 | $ 9.67 | $10.20 | $10.07 | ||||||||||||||||||
Income from investment operationsa: | ||||||||||||||||||||||||
Net investment incomeb,c |
0.11 | 0.22 | 0.17 | 0.16 | 0.16 | 0.13 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
1.28 | (1.01 | ) | 1.41 | 0.29 | (0.47 | ) | 0.25 | ||||||||||||||||
Total from investment operations |
1.39 | (0.79 | ) | 1.58 | 0.45 | (0.31 | ) | 0.38 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income and net foreign currency gains |
| (0.06 | ) | | (0.03 | ) | (0.07 | ) | (0.25 | ) | ||||||||||||||
Net realized gains |
(0.14 | ) | | | (0.02 | ) | (0.15 | ) | ( | )d | ||||||||||||||
Total distributions | (0.14 | ) | (0.06 | ) | | (0.05 | ) | (0.22 | ) | (0.25 | ) | |||||||||||||
Net asset value, end of period | $12.05 | $10.80 | $11.65 | $10.07 | $ 9.67 | $10.20 | ||||||||||||||||||
Total returne |
12.89% | (6.85)% | 15.69% | 4.59% | (3.10)% | 3.75% | ||||||||||||||||||
Ratios to average net assetsf | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliatesg |
1.02% | 1.00% | 1.04% | 1.15% | 1.66% | 1.82% | ||||||||||||||||||
Expenses net of waiver and payments by affiliatesg |
0.80% | h | 0.65% | h | 0.63% | h | 0.63% | h | 0.82% | 0.93% | h | |||||||||||||
Net investment incomec |
1.93% | 1.95% | 1.54% | 1.60% | 1.41% | 1.22% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s) |
$187,528 | $171,173 | $188,240 | $124,581 | $54,816 | $10,201 | ||||||||||||||||||
Portfolio turnover rate |
3.72% | 6.28% | 5.69% | 1.00% | 95.15% | 22.04% |
aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Funds shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bBased on average daily shares outstanding.
cRecognition of net investment income by the Fund is affected by the timing of declaration of dividends by the Underlying Funds and exchange traded funds in which the Fund invests.
dAmount rounds to less than $0.01 per share.
eTotal return does not include fees, charges or expenses imposed by the variable annuity and life insurance contracts for which Franklin Templeton Variable Insurance Products Trust serves as an underlying investment vehicle. Total return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gDoes not include expenses of the Underlying Funds and exchange traded funds in which the Fund invests. The weighted average indirect expenses of the Underlying Funds and exchange traded funds was 0.17% for the period ended June 30, 2019.
hBenefit of expense reduction rounds to less than 0.01%.
FVA-8 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Statement of Investments, June 30, 2019 (unaudited)
Franklin VolSmart Allocation VIP Fund
Shares | Value | |||||||
Common Stocks 53.9% |
||||||||
Capital Goods 12.1% | ||||||||
The Boeing Co. | 3,100 | $ | 1,128,431 | |||||
Carlisle Cos. Inc. | 6,460 | 907,049 | ||||||
Donaldson Co. Inc. | 12,630 | 642,362 | ||||||
Dover Corp. | 17,044 | 1,707,809 | ||||||
General Dynamics Corp. | 10,300 | 1,872,746 | ||||||
Honeywell International Inc. | 21,800 | 3,806,062 | ||||||
Johnson Controls International PLC | 36,892 | 1,524,008 | ||||||
nVent Electric PLC | 25,100 | 622,229 | ||||||
Pentair PLC | 24,200 | 900,240 | ||||||
Raytheon Co. | 5,000 | 869,400 | ||||||
a Resideo Technologies Inc. |
3,666 | 80,359 | ||||||
Roper Technologies Inc. | 16,900 | 6,189,794 | ||||||
United Technologies Corp. | 14,200 | 1,848,840 | ||||||
W.W. Grainger Inc. | 2,450 | 657,163 | ||||||
|
|
|||||||
22,756,492 | ||||||||
|
|
|||||||
Commercial & Professional Services 1.1% | ||||||||
Cintas Corp. | 6,900 | 1,637,301 | ||||||
Matthews International Corp., A | 11,670 | 406,700 | ||||||
|
|
|||||||
2,044,001 | ||||||||
|
|
|||||||
Consumer Durables & Apparel 1.0% | ||||||||
NIKE Inc., B | 21,300 | 1,788,135 | ||||||
|
|
|||||||
Consumer Services 1.3% | ||||||||
McDonalds Corp. | 8,880 | 1,844,021 | ||||||
Yum! Brands Inc. | 4,800 | 531,216 | ||||||
|
|
|||||||
2,375,237 | ||||||||
|
|
|||||||
Diversified Financials 0.1% | ||||||||
State Street Corp. | 3,450 | 193,407 | ||||||
|
|
|||||||
Energy 3.0% | ||||||||
a Apergy Corp. | 12,150 | 407,511 | ||||||
Chevron Corp. | 10,190 | 1,268,043 | ||||||
EOG Resources Inc. | 12,730 | 1,185,927 | ||||||
Exxon Mobil Corp. | 11,300 | 865,919 | ||||||
Occidental Petroleum Corp. | 19,100 | 960,348 | ||||||
Schlumberger Ltd. | 21,300 | 846,462 | ||||||
|
|
|||||||
5,534,210 | ||||||||
|
|
|||||||
Food & Staples Retailing 1.0% | ||||||||
Walgreens Boots Alliance Inc. | 8,600 | 470,162 | ||||||
Walmart Inc. | 12,990 | 1,435,265 | ||||||
|
|
|||||||
1,905,427 | ||||||||
|
|
Semiannual Report |
FVA-9 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
Shares | Value | |||||||
Common Stocks (continued) |
||||||||
Food, Beverage & Tobacco 2.3% | ||||||||
Bunge Ltd. |
19,100 | $ | 1,064,061 | |||||
McCormick & Co. Inc. |
10,350 | 1,604,354 | ||||||
PepsiCo Inc. |
12,700 | 1,665,351 | ||||||
|
|
|||||||
4,333,766 | ||||||||
|
|
|||||||
Health Care Equipment & Services 8.2% | ||||||||
Abbott Laboratories |
24,060 | 2,023,446 | ||||||
Becton, Dickinson and Co. |
13,600 | 3,427,336 | ||||||
CVS Health Corp. |
10,950 | 596,665 | ||||||
DENTSPLY SIRONA Inc. |
12,400 | 723,664 | ||||||
Medtronic PLC |
29,400 | 2,863,266 | ||||||
Stryker Corp. |
18,900 | 3,885,462 | ||||||
West Pharmaceutical Services Inc. |
14,100 | 1,764,615 | ||||||
|
|
|||||||
15,284,454 | ||||||||
|
|
|||||||
Household & Personal Products 1.5% | ||||||||
Colgate-Palmolive Co. |
18,300 | 1,311,561 | ||||||
The Procter & Gamble Co. |
14,480 | 1,587,732 | ||||||
|
|
|||||||
2,899,293 | ||||||||
|
|
|||||||
Insurance 1.0% | ||||||||
Aflac Inc. |
14,440 | 791,456 | ||||||
Chubb Ltd. |
2,781 | 409,613 | ||||||
Erie Indemnity Co., A |
2,720 | 691,642 | ||||||
|
|
|||||||
1,892,711 | ||||||||
|
|
|||||||
Materials 6.3% | ||||||||
Air Products and Chemicals Inc. |
15,700 | 3,554,009 | ||||||
Albemarle Corp. |
38,500 | 2,710,785 | ||||||
Ecolab Inc. |
6,760 | 1,334,694 | ||||||
Linde PLC (United Kingdom) |
18,200 | 3,654,560 | ||||||
Nucor Corp. |
9,500 | 523,450 | ||||||
|
|
|||||||
11,777,498 | ||||||||
|
|
|||||||
Media & Entertainment 0.2% | ||||||||
John Wiley & Sons Inc., A |
6,000 | 275,160 | ||||||
|
|
|||||||
Pharmaceuticals, Biotechnology & Life Sciences 1.9% | ||||||||
AbbVie Inc. |
8,540 | 621,029 | ||||||
Johnson & Johnson |
14,900 | 2,075,272 | ||||||
Perrigo Co. PLC |
7,440 | 354,293 | ||||||
Pfizer Inc. |
12,810 | 554,929 | ||||||
|
|
|||||||
3,605,523 | ||||||||
|
|
|||||||
Retailing 2.2% | ||||||||
The Gap Inc. |
15,720 | 282,488 | ||||||
Ross Stores Inc. |
19,300 | 1,913,016 | ||||||
Target Corp. |
8,340 | 722,328 | ||||||
Tiffany & Co. |
13,123 | 1,228,838 | ||||||
|
|
|||||||
4,146,670 | ||||||||
|
|
FVA-10 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
Shares | Value | |||||||
Common Stocks (continued) |
||||||||
Semiconductors & Semiconductor Equipment 3.7% | ||||||||
Analog Devices Inc. |
29,714 | $ | 3,353,819 | |||||
Texas Instruments Inc. |
28,800 | 3,305,088 | ||||||
Versum Materials Inc. |
5,495 | 283,432 | ||||||
|
|
|||||||
6,942,339 | ||||||||
|
|
|||||||
Software & Services 6.5% | ||||||||
Accenture PLC, A |
19,400 | 3,584,538 | ||||||
Microsoft Corp. |
50,400 | 6,751,584 | ||||||
Visa Inc., A |
11,100 | 1,926,405 | ||||||
|
|
|||||||
12,262,527 | ||||||||
|
|
|||||||
Transportation 0.5% | ||||||||
Norfolk Southern Corp. |
100 | 19,933 | ||||||
United Parcel Service Inc., B |
9,200 | 950,084 | ||||||
|
|
|||||||
970,017 | ||||||||
|
|
|||||||
Total Common Stocks (Cost $72,380,200) |
100,986,867 | |||||||
|
|
|||||||
Investments in Underlying Funds 42.8% |
||||||||
Domestic Equity 5.3% | ||||||||
a,b Franklin DynaTech Fund, Class R6 |
113,058 | 10,032,767 | ||||||
|
|
|||||||
Domestic Fixed Income 29.5% | ||||||||
b Franklin Low Duration Total Return Fund, Class R6 |
3,435,835 | 33,533,754 | ||||||
b Franklin Strategic Income Fund, Class R6 |
2,239,123 | 21,719,493 | ||||||
|
|
|||||||
55,253,247 | ||||||||
|
|
|||||||
Domestic Hybrid 8.0% | ||||||||
b Franklin Income Fund, Class R6 |
6,516,497 | 15,053,108 | ||||||
|
|
|||||||
Total Investments in Underlying Funds (Cost $75,017,612) |
80,339,122 | |||||||
|
|
|||||||
Total Investments before Short Term Investments (Cost $147,397,812) |
181,325,989 | |||||||
|
|
|||||||
Short Term Investments (Cost $6,426,292) 3.4% |
||||||||
Money Market Funds 3.4% | ||||||||
b,c Institutional Fiduciary Trust Money Market Portfolio, 2.05% |
6,426,292 | 6,426,292 | ||||||
|
|
|||||||
Total Investments (Cost $153,824,104) 100.1% |
187,752,281 | |||||||
Other Assets, less Liabilities (0.1)% |
(187,173 | ) | ||||||
|
|
|||||||
Net Assets 100.0% |
$ | 187,565,108 | ||||||
|
|
aNon-income producing.
bSee Note 3(e) regarding investments in Underlying Funds.
cThe rate shown is the annualized seven-day effective yield at period end.
Semiannual Report |
FVA-11 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
At June 30, 2019, the Fund had the following total return swap contracts outstanding. See Note 1(c).
Total Return Swap Contracts
Underlying Instruments | Financing Rate |
Payment Frequency |
Counter- party |
Maturity Date |
Notional Value |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||||||||
OTC Swap Contracts | ||||||||||||||||||||||||
Longa | ||||||||||||||||||||||||
Dynamic VIX Backwardation (BEFSDVB1) |
0.00 | % | At maturity | BZWS | 2/21/20 | $19,100,000 | $(3,183 | ) | ||||||||||||||||
|
|
aThe fund receives the total return on the underlying instrument.
See Note 7 regarding other derivative information.
See Abbreviations on page FVA-23.
FVA-12 | Semiannual Report | The accompanying notes are an integral part of these financial statements. |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 2019 (unaudited)
Franklin VolSmart Allocation VIP Fund |
||||
Assets: |
||||
Investments in securities: |
||||
Cost - Unaffiliated issuers |
$ 72,380,200 | |||
Cost - Non-controlled affiliates (Note 3e) |
81,443,904 | |||
|
|
|||
Value - Unaffiliated issuers |
$100,986,867 | |||
Value - Non-controlled affiliates (Note 3e) |
86,765,414 | |||
Receivables: |
||||
Investment securities sold |
65,505 | |||
Capital shares sold |
2,352 | |||
Dividends and interest |
101,015 | |||
Other assets |
124 | |||
|
|
|||
Total assets |
187,921,277 | |||
|
|
|||
Liabilities: |
||||
Payables: |
||||
Investment securities purchased |
73,438 | |||
Capital shares redeemed |
39,402 | |||
Management fees |
144,063 | |||
Distribution fees |
46,383 | |||
Trustees fees and expenses |
92 | |||
Reports to shareholders |
19,919 | |||
Professional fees |
22,985 | |||
Unrealized depreciation on OTC swap contracts |
3,183 | |||
Accrued expenses and other liabilities |
6,704 | |||
|
|
|||
Total liabilities |
356,169 | |||
|
|
|||
Net assets, at value |
$187,565,108 | |||
|
|
|||
Net assets consist of: |
||||
Paid-in capital |
$154,499,556 | |||
Total distributable earnings (loss) |
33,065,552 | |||
|
|
|||
Net assets, at value |
$187,565,108 | |||
|
|
|||
Class 2: | ||||
Net assets, at value |
$ 36,951 | |||
|
|
|||
Shares outstanding |
3,061 | |||
|
|
|||
Net asset value and maximum offering price per share |
$12.07 | |||
|
|
|||
Class 5: | ||||
Net assets, at value |
$187,528,157 | |||
|
|
|||
Shares outstanding |
15,559,327 | |||
|
|
|||
Net asset value and maximum offering price per share |
$12.05 | |||
|
|
The accompanying notes are an integral part of these financial statements. | Semiannual Report | FVA-13 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the six months ended June 30, 2019 (unaudited)
Franklin VolSmart Allocation VIP Fund |
||||
Investment income: |
||||
Dividends: |
||||
Unaffiliated issuers |
$ 930,370 | |||
Non-controlled affiliates (Note 3e) |
1,528,283 | |||
|
|
|||
Total investment income |
2,458,653 | |||
|
|
|||
Expenses: |
||||
Management fees (Note 3a) |
720,448 | |||
Distribution fees: (Note 3c) |
||||
Class 2 |
44 | |||
Class 5 |
135,110 | |||
Custodian fees (Note 4) |
532 | |||
Reports to shareholders |
19,304 | |||
Professional fees |
33,840 | |||
Trustees fees and expenses |
665 | |||
Other |
6,886 | |||
|
|
|||
Total expenses |
916,829 | |||
Expense reductions (Note 4) |
(365 | ) | ||
Expenses waived/paid by affiliates (Note 3e and 3f) |
(196,081 | ) | ||
|
|
|||
Net expenses |
720,383 | |||
|
|
|||
Net investment income |
1,738,270 | |||
|
|
|||
Realized and unrealized gains (losses): |
||||
Net realized gain (loss) from: |
||||
Investments: |
||||
Unaffiliated issuers |
524,268 | |||
Non-controlled affiliates (Note 3e) |
303,179 | |||
Futures contracts |
(3,528,195 | ) | ||
Swap contracts |
(260,544 | ) | ||
|
|
|||
Net realized gain (loss) |
(2,961,292 | ) | ||
|
|
|||
Net change in unrealized appreciation (depreciation) on: |
||||
Investments: |
||||
Unaffiliated issuers |
17,222,401 | |||
Non-controlled affiliates (Note 3e) |
5,017,419 | |||
Futures contracts |
1,511,553 | |||
Swap contracts |
(716,726 | ) | ||
|
|
|||
Net change in unrealized appreciation (depreciation) |
23,034,647 | |||
|
|
|||
Net realized and unrealized gain (loss) |
20,073,355 | |||
|
|
|||
Net increase (decrease) in net assets resulting from operations |
$21,811,625 | |||
|
|
FVA-14 | Semiannual Report | The accompanying notes are an integral part of these financial statements. |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Franklin VolSmart Allocation VIP Fund | ||||||||
Six Months Ended June 30, 2019 (unaudited) |
Year Ended December 31, 2018 |
|||||||
Increase (decrease) in net assets: |
||||||||
Operations: |
||||||||
Net investment income |
$ 1,738,270 | $ 3,643,502 | ||||||
Net realized gain (loss) |
(2,961,292 | ) | (1,216,554 | ) | ||||
Net change in unrealized appreciation (depreciation) |
23,034,647 | (14,701,565 | ) | |||||
|
|
|||||||
Net increase (decrease) in net assets resulting from operations |
21,811,625 | (12,274,617 | ) | |||||
|
|
|||||||
Distributions to shareholders: |
||||||||
Class 2 |
(429 | ) | (134 | ) | ||||
Class 5 |
(2,160,339 | ) | (923,085 | ) | ||||
|
|
|||||||
Total distributions to shareholders |
(2,160,768 | ) | (923,219 | ) | ||||
|
|
|||||||
Capital share transactions: (Note 2) |
||||||||
Class 5 |
(3,291,463 | ) | (3,872,250 | ) | ||||
|
|
|||||||
Total capital share transactions |
(3,291,463 | ) | (3,872,250 | ) | ||||
|
|
|||||||
Net increase (decrease) in net assets |
16,359,394 | (17,070,086 | ) | |||||
Net assets: |
||||||||
Beginning of period |
171,205,714 | 188,275,800 | ||||||
|
|
|||||||
End of period |
$187,565,108 | $171,205,714 | ||||||
|
|
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
FVA-15 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Notes to Financial Statements (unaudited)
Franklin VolSmart Allocation VIP Fund
FVA-16 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
Semiannual Report |
FVA-17 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
FVA-18 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
2. Shares of Beneficial Interest
At June 30, 2019, there were an unlimited number of shares authorized (without par value). During the period ended June 30, 2019 and the year ended December 31, 2018, there were no transactions of the Funds Class 2 shares. Transactions in the Funds Class 5 shares were as follows:
Six Months Ended June 30, 2019 |
Year Ended December 31, 2018 |
|||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Class 5 Shares: | ||||||||||||||||||
Shares sold |
602,580 | $ | 6,955,301 | 2,484,376 | $ | 28,578,684 | ||||||||||||
Shares issued in reinvestment of distributions |
181,847 | 2,160,339 | 79,783 | 923,085 | ||||||||||||||
Shares redeemed |
(1,072,788 | ) | (12,407,103 | ) | (2,879,138 | ) | (33,374,019) | |||||||||||
Net increase (decrease) |
(288,361 | ) | $ | (3,291,463 | ) | (314,979 | ) | $ | (3,872,250) |
Semiannual Report |
FVA-19 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers, directors and/or trustees of certain of the Underlying Funds and of the following subsidiaries:
Subsidiary | Affiliation | |
Franklin Advisers, Inc. (Advisers) |
Investment manager | |
K2/D&S Management Co., LLC (K2 Advisors) |
Investment manager | |
Franklin Templeton Services, LLC (FT Services) |
Administrative manager | |
Franklin Templeton Distributors, Inc. (Distributors) |
Principal underwriter | |
Franklin Templeton Investor Services, LLC (Investor Services) |
Transfer agent |
a. Management Fees
The Fund pays an investment management fee to Advisers of 0.80% per year of the average daily net assets of the Fund.
Under a subadvisory agreement, K2 Advisors, an affiliate of Advisers, provides subadvisory services to the Fund. The subadvisory fee is paid by Advisers based on the Funds average daily net assets, and is not an additional expense of the Fund.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Funds average daily net assets, and is not an additional expense of the Fund.
c. Distribution Fees
The Board has adopted distribution plans for Class 2 and Class 5 shares pursuant to Rule 12b-1 under the 1940 Act. Under the Funds compensation distribution plans, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Funds shares up to 0.35% and 0.15% per year of its average daily net assets of Class 2 and Class 5, respectively. The Board has agreed to limit the current rate to 0.25% per year for Class 2. The plan year, for purposes of monitoring compliance with the maximum annual plan rates, is February 1 through January 31.
d. Transfer Agent Fees
Investor Services, under terms of an agreement, performs shareholder servicing for the Fund and is not paid by the Fund for the services.
e. Investments in Underlying Funds
The Fund invests in Underlying Funds which are managed by affiliates of the Funds administrative manager, Franklin Templeton Services, LLC. The Fund does not invest in Underlying Funds for the purpose of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the Underlying Funds, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by the Underlying Funds.
FVA-20 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
Investments in Underlying Funds for the ended June 30, 2019, were as follows:
Value at of Period |
Purchases | Sales | Realized Gain (Loss) |
Net Change in Unrealized Appreciation (Depreciation) |
Value at End of Period |
Number of Shares Held at End of Period |
Dividend Income |
|||||||||||||||||||||||||
Non-Controlled Affiliates | ||||||||||||||||||||||||||||||||
Franklin DynaTech Fund, Class R6 |
$ | 8,980,816 | $ | | $ | (1,501,590 | ) | $ | 500,486 | $2,053,055 | $ | 10,032,767 | 113,058 | $ | | |||||||||||||||||
Franklin Income Fund, Class R6 |
16,795,196 | 428,986 | (3,562,423 | ) | (197,307 | ) | 1,588,656 | 15,053,108 | 6,516,497 | 428,986 | ||||||||||||||||||||||
Franklin Low Duration Total Return Fund, Class R6 |
28,805,726 | 4,228,986 | | | 499,042 | 33,533,754 | 3,435,835 | 550,930 | ||||||||||||||||||||||||
Franklin Strategic Income Fund, Class R6 |
18,529,912 | 2,312,915 | | | 876,666 | 21,719,493 | 2,239,123 | 490,319 | ||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio, 2.05% |
1,130,276 | 16,457,951 | (11,161,935 | ) | | | 6,426,292 | 6,426,292 | 58,048 | |||||||||||||||||||||||
Total Affiliated Securities |
$ | 74,241,926 | $ | 23,428,838 | $ | (16,225,948 | ) | $ | 303,179 | $5,017,419 | $ | 86,765,414 | $ | 1,528,283 |
f. Waiver and Expense Reimbursements
Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Fund so that the expenses (excluding distribution fees and acquired fund fees and expenses and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) for each class of the Fund do not exceed 0.65%, based on the average net assets of each class until April 30, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Funds fiscal year end.
4. Expense Offset Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds custodian expenses. During the period ended June 30, 2019, the custodian fees were reduced as noted in the Statement of Operations.
5. Income Taxes
At June 30, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed long term capital gains for income tax purposes were as follows:
Cost of investments |
$152,730,013 | |||
|
|
|||
Unrealized appreciation |
$ 39,398,938 | |||
Unrealized depreciation |
(4,379,853) | |||
|
|
|||
Net unrealized appreciation (depreciation) |
$ 35,019,085 | |||
|
|
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of swaps and financial futures transactions.
6. Investment Transactions
Purchases and sales of investments (excluding short term securities) for the period ended June 30, 2019, aggregated $6,531,071 and $16,229,793, respectively.
Semiannual Report |
FVA-21 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
7. Other Derivative Information
At June 30, 2019, investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Derivative Contracts Not Accounted for as Hedging Instruments |
Statement of Location |
Fair Value | Statement of Location |
Fair Value | ||||||||||||
Equity contracts |
Unrealized appreciation on OTC swap contracts |
$ | Unrealized depreciation on OTC swap contracts |
$3,183 | ||||||||||||
|
|
|
|
|||||||||||||
For the period ended June 30, 2019, the effect of derivative contracts in the Statement of Operations was as follows:
|
| |||||||||||||||
Derivative Contracts Not Accounted for as Hedging Instruments |
Statement of Operations Location |
Net Realized Gain (Loss) for the Period |
Statement of Operations Location |
Net Change in Unrealized Appreciation (Depreciation) for the Period |
||||||||||||
Net realized gain (loss) from: | Net change in unrealized appreciation (depreciation) on: | |||||||||||||||
Equity contracts |
Futures contracts | $(3,528,195) | Futures contracts | $1,511,553 | ||||||||||||
Swap contracts | (260,544) | Swap contracts | (716,726) | |||||||||||||
|
|
|
|
|||||||||||||
Totals |
$(3,788,739) | $ 794,827 | ||||||||||||||
|
|
|
|
For the period ended June 30, 2019, the average month end notional amount of futures contracts and swap contracts represented $8,453,634 and $19,100,000, respectively.
See Note 1(c) regarding derivative financial instruments.
8. Credit Facility
The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2 billion (Global Credit Facility) which matures on February 7, 2020. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.
Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations. During the period ended June 30, 2019, the Fund did not use the Global Credit Facility.
|
FVA-22 |
|
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Franklin VolSmart Allocation VIP Fund (continued)
9. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources
(observable inputs) and the Funds own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds financial instruments and are summarized in the following fair value hierarchy:
| Level 1 quoted prices in active markets for identical financial instruments |
| Level 2 other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| Level 3 significant unobservable inputs (including the Funds own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of June 30, 2019, in valuing the Funds assets and liabilities carried at fair value, is as follows:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
||||||||||||||||
Equity Investments |
$ | 100,986,867 | $ | | $ | | $ | 100,986,867 | ||||||||
Investments in Underlying Funds |
80,339,122 | | | 80,339,122 | ||||||||||||
Short Term Investments |
6,426,292 | | | 6,426,292 | ||||||||||||
Total Investments in Securities |
$ | 187,752,281 | $ | | $ | | $ | 187,752,281 | ||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Swap Contracts |
$ | | $ | 3,183 | $ | | $ | 3,183 |
aFor detailed categories, see the accompanying Statement of Investments.
10. Subsequent Events
The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.
Abbreviations
Counterparty | Selected Portfolio | |||||
BZWS | Barclays Bank PLC | VIX | Market Volatility Index |
Semiannual Report |
FVA-23 |
This page intentionally left blank.
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
I-1 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
INDEX DESCRIPTIONS
Semiannual Report |
I-2 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SI-1 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
Semiannual Report |
SI-2 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
SI-3 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
Semiannual Report |
SI-4 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
SI-5 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
Semiannual Report |
SI-6 |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
SI-7 |
Semiannual Report |
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
SHAREHOLDER INFORMATION
Semiannual Report |
SI-8 |
Franklin Templeton Variable Insurance Products Trust (FTVIP) shares are not offered to the public; they are offered and sold only to: (1) insurance company separate accounts (Separate Account) to serve as the underlying investment vehicle for variable contracts; (2) certain qualified plans; and (3) other mutual funds (funds of funds).
Authorized for distribution to investors in Separate Accounts only when accompanied or preceded by the current prospectus for the applicable contract, which includes the Separate Account and the FTVIP prospectuses. Investors should carefully consider a funds investment goals, risks, charges and expenses before investing. The prospectus contains this and other information; please read it carefully before investing.
To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.
![]() |
Semiannual Report | |||||||
Franklin Templeton Variable Insurance Products Trust | ||||||||
Investment Manager |
Subadvisors |
Fund Administrator |
Distributor | |||||
Franklin Advisers, Inc. | K2/D&S Management Co., L.C.C. |
Franklin Templeton Services, LLC |
Franklin Templeton Distributors, Inc. |
© 2019 Franklin Templeton Investments. All rights reserved. | VIP5 S 08/19 |
Item 2. | Code of Ethics. |
(a) | The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. |
(c) | N/A |
(d) | N/A |
(f) | Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer. |
Item 3. | Audit Committee Financial Expert. |
(a) (1) | The Registrant has an audit committee financial expert serving on its audit committee. | |
(2) | The audit committee financial expert is Mary C. Choksi and he is independent as defined under the relevant Securities and Exchange Commission Rules and Releases. |
Item 4. | Principal Accountant Fees and Services. N/A |
Item 5. | Audit Committee of Listed Registrants. N/A |
Item 6. | Schedule of Investments. N/A |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A |
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. N/A |
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A |
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrants Board of Trustees that would require disclosure herein.
Item 11. | Controls and Procedures. |
(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to
provide reasonable assurance that information required to be disclosed in the Registrants filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrants management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrants management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrants management, including the Registrants principal executive officer and the Registrants principal financial officer, of the effectiveness of the design and operation of the Registrants disclosure controls and procedures. Based on such evaluation, the Registrants principal executive officer and principal financial officer concluded that the Registrants disclosure controls and procedures are effective.
(b) Changes in Internal Controls. There have been no changes in the Registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A |
Item 13. | Exhibits. |
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive OfficerFinance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive OfficerFinance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Franklin Templeton Variable Insurance Products Trust
By | S\ MATTHEW T. HINKLE | |
Matthew T. Hinkle | ||
Chief Executive Officer | ||
Finance and Administration | ||
Date August 30, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | S\ MATTHEW T. HINKLE | |
Matthew T. Hinkle | ||
Chief Executive Officer | ||
Finance and Administration | ||
Date August 30, 2019 | ||
By | S\ GASTON GARDEY | |
Gaston Gardey | ||
Chief Financial Officer and | ||
Chief Accounting Officer | ||
Date August 30, 2019 |
Exhibit 12(a)(1)
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES & SENIOR FINANCIAL OFFICERS
PROCEDURES Revised December 18, 2009
FRANKLIN TEMPLETON FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
I. Covered Officers and Purpose of the Code
This code of ethics (the Code) applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the Covered Officers, each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission (SEC) (collectively, FT Funds) for the purpose of promoting:
| Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between personal and professional relationships; |
| Full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the SEC and in other public communications made by or on behalf of the FT Funds; |
| Compliance with applicable laws and governmental rules and regulations; |
| The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and |
| Accountability for adherence to the Code. |
Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
II. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.
Franklin Resources, Inc. has separately adopted the CODE OF ETHICS AND BUSINESS CONDUCT (Business Conduct), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employees business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.
Additionally, the Franklin Templeton Funds have separately adopted the CODE OF ETHICS AND POLICY STATEMENT ON INSIDER TRADING governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.
Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.
III. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest
OVERVIEW. A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.
Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (Investment Company Act) and the Investment Advisers Act of 1940 (Investment Advisers Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as affiliated persons of the FT Funds. The FT Funds and the investment advisers compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds Boards of Directors (Boards) that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.
Each Covered Officer must:
| Not use his or her personal influence or personal relationships improperly to influence investment decisions orfinancial reporting by the FT Funds whereby the Covered Officer would benefit personally to the detriment of the FT Funds; |
| Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the FT Funds; |
| Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports of potential violations that are made in good faith; |
| Report at least annually the following affiliations or other relationships:/1 |
| all directorships for public companies and all companies that are required to file reports with the SEC; |
| any direct or indirect business relationship with any independent directors of the FT Funds; |
| any direct or indirect business relationship with any independent public accounting firm (which are not related to the routine issues related to the firms service as the Covered Persons accountant); and |
| any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin Resources). |
These reports will be reviewed by the Legal Department for compliance with the Code.
There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include/2:
| Service as a director on the board of any public or private Company; |
| The receipt of any gifts in excess of $100 from any person, from any corporation or association |
| The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources General Counsel for any entertainment with a value in excess of $1000. |
| Any ownership interest in, or any consulting or employment relationship with, any of the FT Funds service providers, other than an investment adviser, principal underwriter, administrator or any affiliated person thereof; |
| A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officers employment, such as compensation or equity ownership. |
Franklin Resources General Counsel or Deputy General Counsel will provide a report to the FT Funds Audit Committee of any approvals granted at the next regularly scheduled meeting.
IV. Disclosure and Compliance
| Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the FT Funds; |
| Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to others, whether within or outside the FT Funds, including to the FT Funds directors and auditors, and to governmental regulators and self-regulatory organizations; |
| Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the FT Funds, the FT Funds adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and in other public communications made by the FT Funds; and |
| It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. |
V. Reporting and Accountability
Each Covered Officer must:
| Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the Code (see Exhibit B); |
| Annually thereafter affirm to the Board that he has complied with the requirements of the Code; and |
| Notify Franklin Resources General Counsel or Deputy General Counsel promptly if he or she knows of any violation of this Code. Failure to do so is itself is a violation of this Code. |
Franklin Resources General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation./3 However, the Independent Directors of the respective FT Funds will consider any approvals or waivers/4 sought by any Chief Executive Officers of the Funds.
The FT Funds will follow these procedures in investigating and enforcing this Code:
| Franklin Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate any potential violations reported to the Legal Department; |
| If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The General Counsel is not required to take any further action; |
| Any matter that the General Counsel or Deputy General Counsel believes is a violation will be reported to the Independent Directors of the appropriate FT Fund; |
| If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board of the appropriate FT Fund or Funds, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer; |
| The Independent Directors will be responsible for granting waivers, as appropriate; and |
| Any changes to or waivers of this Code will, to the extent required, are disclosed as provided by SEC rules./5 |
VI. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FT Code of Ethics and Policy Statement On Insider Trading, adopted by the FT Funds, FT investment advisers and FT Funds principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FTs Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.
VII. Amendments
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds Board including a majority of independent directors.
VIII. Confidentiality
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds Board and their counsel.
IX. Internal Use
The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.
X. Disclosure on Form N-CSR
Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.
The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrants annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.
The Legal Department shall be responsible for ensuring that:
| a copy of the Code is filed with the SEC as an exhibit to each Funds annual report; and |
| any amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed in the registrants annual report on Form N-CSR. |
In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.
In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.
EXHIBIT A
Persons Covered by the Franklin Templeton Funds
Code of Ethics
December 2013
FRANKLIN GROUP OF FUNDS | ||
Edward B. Jamieson | President and Chief Executive Officer - Investment Management | |
Rupert H. Johnson, Jr. | President and Chief Executive Officer - Investment Management | |
William J. Lippman | President and Chief Executive Officer - Investment Management | |
Christopher Molumphy | President and Chief Executive Officer - Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Gaston R. Gardey | Chief Financial Officer and Chief Accounting Officer | |
FRANKLIN MUTUAL SERIES FUNDS | ||
Peter Langerman | Chief Executive Officer-Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Robert G. Kubilis | Chief Financial Officer and Chief Accounting Officer | |
FRANKLIN ALTERNATIVE STRTEGIES FUNDS | ||
William Yun | Chief Executive Officer-Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Robert G. Kubilis | Chief Financial Officer and Chief Accounting Officer | |
TEMPLETON GROUP OF FUNDS | ||
Mark Mobius | President and Chief Executive Officer - Investment Management | |
Christopher J. Molumphy | President and Chief Executive Officer - Investment Management | |
Norman Boersma | President and Chief Executive Officer - Investment Management | |
Donald F. Reed | President and Chief Executive Officer - Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Mark H. Otani | Chief Financial Officer and Chief Accounting Officer |
EXHIBIT B
ACKNOWLEDGMENT FORM
DECEMBER
FRANKLIN TEMPLETON FUNDS CODE OF ETHICS
FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
INSTRUCTIONS:
1. | Complete all sections of this form. |
2. | Print the completed form, sign, and date. |
3. | Submit completed form to FTs General Counsel c/o Code of Ethics Administration within 10 days of becoming a Covered Officer and by February 15th of each subsequent year. |
INTER-OFFICE MAIL: Fax: E-MAIL: |
Code of Ethics Administration, Global Compliance SM-920/2 (650) 312-5646 Preclear-Code of Ethics (internal address); lpreclear@frk.com (external address) |
COVERED OFFICERS NAME:
TITLE:
DEPARTMENT:
LOCATION:
CERTIFICATION FOR YEAR ENDING:
TO: Franklin Resources General Counsel, Legal Department
I acknowledge receiving, reading and understanding the Franklin Templeton Funds Code of Ethics for Principal Executive Officers and Senior Financial Officers (the Code). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary
action, including termination of employment.
|
| |||
Signature | Date signed |
1. | Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel. |
2. | Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officers immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FTs General Counsel in such situations. |
3. | Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so. |
4. | Item 2 of Form N-CSR defines waiver as the approval by the registrant of a material departure from a provision of the code of ethics and implicit waiver, which must also be disclosed, as the registrants failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer of the registrant. See Part X. |
5. | See Part X. |
Exhibit 13 (a) (2)
I, Matthew T. Hinkle, certify that:
1. I have reviewed this report on Form N-CSRS of Franklin Templeton Variable Insurance Products Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
8/30/2019
S\ MATTHEW T. HINKLE
Matthew T. Hinkle
Chief Executive OfficerFinance and Administration
Exhibit 13 (a) (2)
I, Gaston Gardey, certify that:
1. I have reviewed this report on Form N-CSRS of Franklin Templeton Variable Insurance Products Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
8/30/2019
S\ GASTON GARDEY
Gaston Gardey
Chief Financial Officer and Chief Accounting Officer
Exhibit 13 (b)
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Templeton Variable Insurance Products Trust (the Registrant), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. | The periodic report on Form N-CSRS of the Registrant for the period ended 6/30/2019 (the Form N-CSRS) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: 8/30/2019
S\ MATTHEW T. HINKLE |
Matthew T. Hinkle |
Chief Executive OfficerFinance and Administration |
Exhibit 13 (b)
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Gaston Gardey, Chief Financial Officer of the Franklin Templeton Variable Insurance Products Trust (the Registrant), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. | The periodic report on Form N-CSRS of the Registrant for the period ended 6/30/2019 (the Form N-CSRS) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: 8/30/2019
S\ GASTON GARDEY |
Gaston Gardey |
Chief Financial Officer and Chief Accounting Officer |
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