Fund Description

The fund seeks the highest level of longterm total return consistent with an acceptable level of risk. The manager allocates assets among broad asset classes by investing primarily in a distinctly weighted combination of other mutual funds, predominantly Franklin Templeton funds, and approximately 80% equity and 20% fixed income funds. The fund is designed for investors seeking a higher level of risk with a longer investment horizon.

Strategy Statement

"For the Franklin Templeton Allocation Funds, we carefully analyze and select underlying Franklin Templeton funds utilizing a variety of quantitative and qualitative measures."

Management

Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2012
May Tong, CFA

May Tong, CFA®

  • Joined Franklin Templeton in 2018
  • Managed Fund Since 2019

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Strategy and Process

  • Top Down/Bottom Up: Leveraging a wide range of current market and economic insights from across the Franklin Templeton complex, timely investment themes are formed into asset allocation recommendations. These are then partnered with a short list of Franklin Templeton funds identified through intensive research by our dedicated fund research team.
  • Diversification: Few companies can match the depth and breadth of investment expertise Franklin Templeton target-risk and target-date funds can offer with access to a wide range of funds, covering nearly all asset classes. A diverse group of underlying investments provides the flexibility to gain exposure to varied sectors of the market.
  • Active Asset Allocation: The funds seek to balance strategic allocation with active diversification as a method of providing superior long-term returns with lower overall volatility.
  • Focused on Long-Term Results: Long-term strategic allocations utilize models that are determined to possess the most attractive risk/reward characteristics. This focus on achieving attractive long-term, risk-adjusted performance offers you the potential for competitive relative returns in a variety of market conditions.

Rating

Overall Morningstar Rating As of 10/31/2019

Rating Category: Allocation--70% to 85% Equity

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 [further-information] As of 10/31/2019

Years Ratings Funds
in category
3
4 Stars
307
5
4 Stars
274
10
3 Stars
194

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results

Strategy

  • The fund is designed to seek out the maximum long-term returns consistent with a higher level of risk.
  • The fund's manager will actively allocate the fund's assets to equity and fixed income investments, seeking to construct portfolios the fund’s manager believes are the best combinations of Franklin, Templeton and Franklin Mutual Series funds to meet the fund’s goals.
  • Evaluating multiple factors such as regional exposure, market capitalizations, investment style, credit quality and duration, the objective is to create a portfolio of funds displaying a history of more consistent performance over the long term with low relative correlations among themselves.

Benefits

  • Single-Fund Solution. Access to our world class investment management groups — Franklin, Templeton and Franklin Mutual Series — in one investment vehicle.
  • Diversification. Broad range of underlying funds provides diversification across style, sector and region.

Selling The Fund

  1. Emphasize the fund’s broad diversification across asset classes as well as investment styles, sectors and regions.

  2. Point out how the fund’s structure offers an easy way to get an asset-allocated portfolio from one investment vehicle.