SOURCE: Franklin Templeton

Franklin Templeton

June 10, 2015 09:00 ET

Franklin LifeSmart™ Expands Retirement Target Fund Lineup for US Investors

SAN MATEO, CA--(Marketwired - Jun 10, 2015) - Franklin Templeton Investments today announced the expansion of its retirement target fund lineup for US investors with the introduction of Franklin LifeSmart™ 2055 Retirement Target Fund. Like other funds in the lineup, the fund's assets are allocated among the broad asset classes of equity, fixed-income and alternative investments by investing predominantly in other Franklin Templeton mutual funds, based on each underlying fund's predominant asset class and strategy. The new fund joins a lineup that includes 2015, 2020, 2025, 2030, 2035, 2040, 2045 and 2050 funds.

"The Franklin LifeSmart 2055 Retirement Target Fund is aimed at millennial investors who plan to retire in or near the year 2055 and reflects our ongoing commitment to innovating solutions for the retirement marketplace," said Yaqub Ahmed, head of the investment-only division in the US for Franklin Templeton Investments.

Like the existing Franklin LifeSmart Retirement Target Funds, the new 2055 fund will target a five percent allocation to alternative investment funds to take advantage of their lower correlation, in general, with traditional asset classes. The funds' managers have the ability to tactically adjust this allocation within a range of zero to 10 percent as they shift the funds' allocations based on changing market conditions.

"As part of our continued efforts to generate better designed retirement funds, we include a strategic weighting to alternative investment funds for each of our Franklin LifeSmart Retirement Target Funds," said Tom Nelson, CFA1, one of the funds' portfolio managers with Franklin Templeton Solutions. "We have found through extensive research and modeling that this asset class may provide diversification benefits and may help improve the risk/return profile of these portfolios."

Franklin LifeSmart Retirement Target Funds combine the simplicity of asset allocation and risk management with active, flexible portfolio management. The funds' managers continuously evaluate each fund's strategic allocation and have the flexibility to make tactical adjustments to seek the highest level of long-term total return consistent with its asset allocation strategy. This risk-focused approach to portfolio management enables the investment team to identify short-term market opportunities and dislocations and to implement tactical shifts between asset classes based on the assessment of the most significant risks and opportunities identified in the market.

As a broadly diversified portfolio, each of the Franklin LifeSmart Retirement Target Funds is organized as a "fund of funds" that invests primarily in three specialized managers -- Franklin, Templeton and Mutual Series -- and may also include an array of ETFs for additional diversification. The range follows a "to retirement" glide path, which means that each of the funds reaches its most conservative allocation at its target date, a critical point when investors may start to take withdrawals from their accounts. In contrast, "through retirement" glide paths reach their most conservative allocation sometime after the funds' target dates, often many years later.

"Each of the Franklin LifeSmart Retirement Target Funds is designed for investors who seek to achieve high portfolio value at retirement," said Tony Coffey, CFA1, one of the funds' portfolio managers with Franklin Templeton Solutions. "We pride ourselves on conservative innovation, developing and managing retirement solutions that seek to help investors meet their long-term investment outcomes."

The funds' portfolio managers, Nelson and Coffey, are supported by the Franklin Templeton Solutions team, which includes over 80 dedicated professionals globally. As an integrated global investment platform, Franklin Templeton Solutions leverages the insights and investment strategies from Franklin Templeton's various investment management groups and employs both strategic and tactical asset allocation to seek to create diversified outcome-oriented portfolios focused on risk-adjusted performance and tailored to client needs. Franklin Templeton Solutions has more than 25 years of experience managing multi-asset and multi-style portfolios, including retirement target and global asset allocation strategies, with approximately $42 billion in assets under management as of March 31, 2015.

The investment risk of the Fund changes over time as its asset allocation changes. The Fund's ability to achieve its investment goal depends upon the investment manager's skill in determining the Fund's broad asset allocation mix and selecting underlying funds. There is the possibility that the investment manager's evaluations and assumptions regarding asset classes and underlying funds will not successfully achieve the Fund's investment goal in view of actual market trends. Since the Fund invests in underlying funds, which may engage in a variety of investment strategies involving certain risks, the Fund is subject to those same risks. For purposes of the following discussion, "Fund" means each of the Franklin LifeSmart Retirement Target Funds and/or one or more of the underlying funds in which the Fund invests. The Fund's investment in ETFs may subject the Fund to additional risks than if the Fund would have invested directly in the ETFs' underlying securities. All investments involve risks, including possible loss of principal. Principal invested is not guaranteed at any time, including at or after the Fund's retirement target date; nor is there any guarantee that the Fund will provide sufficient income at or through the investor's retirement. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund's share price may decline. Foreign investing carries additional risks such as currency and market volatility and political or social instability, risks which are heightened in developing countries. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the Fund to participate in losses (as well as gains) in an amount that exceeds the Fund's initial investment. These risks are described more fully in, and additional risks are described in, the Fund's prospectus. Investors should consult their financial advisor for help selecting the appropriate fund of funds, or fund combination, based on an evaluation of their investment objectives, retirement time horizons and risk tolerance.

Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN /(800)342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.

About Franklin Templeton Investments
Franklin Templeton Investments is a leader in retirement investing, managing over $200 billion2 in retirement assets on behalf of individuals, small businesses and institutions. Since 1947, Franklin Templeton has helped people build their retirement nest eggs. Visit Franklin Templeton's Retirement Center at franklintempleton.com/retirement, which includes resources for financial advisors serving employers and plan sponsors as well as individual investors.

The funds' principal underwriter is Franklin Templeton Distributors, Inc., a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the Company has expertise across all asset classes -- including equity, fixed income, alternative and custom solutions. The Company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California-based company has more than 65 years of investment experience and over $884 billion in assets under management as of May 31, 2015. For more information, please visit franklintempleton.com.

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1. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
2. As of March 31, 2015.

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Contact Information

  • Contact:
    Franklin Templeton Investments
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    Craig Allen
    (212) 632-4238
    Cheryl Sanclemente
    (650) 312-3270
    franklintempleton.com