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 capitalappreciation and income, with the fund placing an increasing emphasis on fixed income as the target date 2040 approaches, and reaching its final and mostconservative asset allocation approximately five years after the target year.

Along with an expectation to retire in or near the year 2040 and delay withdrawals until required minimum distribution age, the fund is designed for investorsthat 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

"We believe a stable and sustainable retirement income stream is best achieved through an active, multi-asset approach."

Management

Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2007
Wylie Tollette, CFA

Wylie Tollette, CFA®

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2021
Berkeley Revenaugh

Berkeley Revenaugh

  • Joined Franklin Templeton in 2019
  • Managed Fund Since 2021

Rating

Overall Morningstar Rating As of 04/30/2021

Rating Category: Target-Date Retirement

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2021

Years Ratings Funds
in category
3
3 Stars
139
5
3 Stars
116
10
Stars

Morningstar Style Box As of03/31/2021

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: Designed to convert into a managed payout fund seven 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