United States
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Beginning on 10/19/18, Class C shares held for 10 years or more will automatically convert to Class A shares. Thereafter, Class C shares held for 10 years or more will automatically convert to Class A shares on a monthly basis. This conversion allows shareholders to take advantage of the lower expenses offered by Class A shares. Please see the prospectus supplement for more information. If you have any questions, please contact your financial professional or call Franklin Templeton.
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Effective 9/10/18, certain sales charges and commissions paid to dealers on Class A and A1 shares of our mutual funds changed. Please see the prospectus supplement for more information. If you have additional questions, please contact your financial professional or call Franklin Templeton.
Fund Description
The fund seeks the highest level of long-term 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 funds, predominantly Franklin Templeton funds, and exchange-traded funds and approximately 40% equity and 60% fixed income funds. The fund is designed for investors seeking a lower level of risk with a shorter 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®
- Joined Franklin Templeton in 2007
- Managed Fund Since 2012
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 12/31/2020
Rating Category: Allocation--30% to 50% Equity
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 lower 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.
Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.
Important Legal Information
- All investments involve risks, including possible loss of principal. The Fund's ability to achieve its investment goal depends upon the investment manager's skill in determiningthe Fund's broad asset allocation mix and selecting underlying funds. Because this fund invests in underlying funds, it is subject to the same risks, and indirectly bears the feesand expenses, of the underlying funds. 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 a fund adjust to a rise in interest rates, thatfund's share price may decline.These risks are described in the fund's prospectus. Investors should consult their financial advisor for help selecting the appropriate fund offunds, or fund combination, based on an evaluation of their investment objectives and risk tolerance.
- CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
- Indexes are unmanaged, and one cannot invest directly in an index. Index returns do not reflect any fees, expenses or sales charges.
- Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total Returns With Sales Charge: returns reflect the deduction of the stated sales charge. Total returns, distribution rate, and yields reflect any applicable expense reductions, without which the results for those impacted funds would have been lower.
- Your clients should carefully consider a fund's investment goals, risks, charges and expenses before investing. Download a prospectus, which contains this and other information. Your clients should read the prospectus carefully before they invest or send money.
Footnotes
- The expense ratio for this fund includes estimated indirect expenses of its underlying funds.
- A statistical measurement of a fund's historical risk-adjusted performance. It is calculated by taking a fund's excess return over that of the three-month Treasury bill divided by its standard deviation. Higher values generally indicate better historical risk-adjusted performance. Based on the 3 years ended as of the date of the calculation.
- Percentage of the fund's returns explained by movements in the Blended Benchmark.
- Public Offering Price — Purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
- Net Asset Value — The amount per share you would receive if you sold shares that day.
- For net asset value (NAV) purchases, a 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
- A measure of the fund's volatility relative to the market, as represented by the Blended Benchmark. Effective January 1, 2015, the Blended Benchmark changed to 40% MSCI AC World Index and 60% Barclays Multiverse Index. From January 1, 2013 - December 31, 2014, the Blended Benchmark comprised of 28% S&P 500 Index, 12% MSCI EAFE Index and 60% Barclays U.S. Aggregate Index. Prior to January 1, 2013, the Blended Benchmark was comprised of 28% S&P 500 Index, 12% MSCI EAFE Index, 40% Barclays U.S. Aggregate Index and 20% Payden and Rygel 90 Day T-Bill Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-year period ended as of the date of the calculation.
- Effective January 1, 2015, the Blended Benchmark changed to 40% MSCI AC World Index and 60% Barclays Multiverse Index. From January 1, 2013 - December 31, 2014, the Blended Benchmark comprised of 28% S&P 500 Index, 12% MSCI EAFE Index and 60% Barclays U.S. Aggregate Index. Prior to January 1, 2013, the Blended Benchmark was comprised of 28% S&P 500 Index, 12% MSCI EAFE Index, 40% Barclays U.S. Aggregate Index and 20% Payden and Rygel 90 Day T-Bill Index. 100 equals perfect correlation to the index. Based on the 3-year period ended as of the date of the calculation. Indices are unmanaged and one cannot invest directly in them.
- For performance reporting purposes, the inception date for Classes A/A1, R, R6, Z, and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Class C shares, generally the inception date is the first day the fund commenced offering such shares. Exceptions: Templeton Global Balanced Fund Classes A and C use the inception date of the old Class A and C shares, renamed Class A1 and Class C1. For Franklin Mutual Series Funds and Franklin International Small Cap Growth Fund, the inception date for Classes A, C, R and R6 shares is the funds' oldest class', Z or Advisor, inception date. Franklin U.S. Government Money Fund Class R6 inception date is the first day it commenced offering such shares.
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Franklin Templeton Distributors, Inc.
