Franklin LifeSmart 2030 Retirement Target Fund

Fund Description

The fund's investment goal is to seek the highest level of long-term total return consistent with its asset allocation. Total return consists of both capital appreciation and income, with the fund placing an increasing emphasis on fixed income as the target date 2030 approaches, and reaching its final and most conservative asset allocation approximately five years after the target year.

Along with an expectation to retire in or near the year 2030 and delay withdrawals until required minimum distribution age, the fund is designed for investors that want:

  • the simplicity of an asset allocation fund paired with a risk management approach.
  • active and flexible portfolio management.
  • a specialized multi-asset strategy team managing complex investment decisions.

Strategy Statement

"Designed for investors who anticipate retiring on or around 2030, the fund provides asset allocation which adjusts to become progressively more conservative as the target date approaches."

Management

Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2013
May Tong, CFA

May Tong, CFA®

  • Joined Franklin Templeton in 2018
  • Managed Fund Since 2019

Strategy, Benefits, Results

Strategy

Through a dynamic asset allocation approach, the fund provides investors with a target retirement date solution that seeks to:

    • Grow: Emphasizes growth early by increasing equity exposure in the fund’s earlier years
    • Defend: Reduces equity exposure during periods of extended market volatility
    • Reach: Becomes increasingly conservative beyond target retirement date age of 65, reaching for incremental growth until investors are ready to draw income at required minimum distribution age
    • Sustain: Converts to a managed payout fund five years after reaching retirement target date

BENEFITS

  • Behavior based: Designed with an understanding of investor behavior and expectations throughout the journey to retirement
  • Outcome engineered: Reflects the need for growth but responds to potential damage a prolonged bear market can wreak in the retirement savings home stretch
  • Integrated best thinking: A global, integrated, and disciplined approach to asset allocation, capturing Franklin Templeton’s best thinking across and within asset classes

Selling The Fund

  1. Point out how the fund’s structure offers a convenient way to get an asset-allocated portfolio from one investment vehicle.
  2. Emphasize the fund’s broad diversification across asset classes as well as investment styles, sectors and regions.
  3. Highlight the shifting allocation of the fund to a more conservative investment mix (shift towards fixed income investments) as the stated retirement target date of the fund approaches. It’s important to note that the principal value of the fund will fluctuate and is not guaranteed at any time, including at the stated retirement target date for the fund.