Fund Description

Franklin Founding Funds Allocation Fund seeks capital appreciation through a diversified, value oriented approach — investing in a fixed allocation of three Franklin Templeton mutual funds that specifically target stock and bonds trading at a discount to their true worth. The fund seeks income as a secondary goal.

Strategy Statement

"As a result of the value-driven strategies utilized by its underlying funds, the fund seeks to provide growth over the long term while offering diversification that can help reduce overall risk. "

Management

Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2019
May Tong, CFA

May Tong, CFA®

  • Joined Franklin Templeton in 2018
  • Managed Fund Since 2019

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

Through an equal allocation to the following underlying funds—Franklin Income Fund, Templeton Growth Fund and Franklin Mutual Shares Fund—this combination provides diversification and an automatic rebalancing feature to help maintain equal exposure to three distinct investment strategies in any market environment.

Investment Process

The fund will invest equal portions in shares of the three underlying funds, providing a cost-effective means of allocating assets across different investment advisors and types of investments.

  • Franklin Income Fund focuses on undervalued dividend-paying stocks and bonds across a wide range of industries.
  • Templeton Growth Fund searches worldwide for stocks selling at low prices relative to manager’s appraisal of value.
  • Franklin Mutual Shares Fund seeks to invest primarily in undervalued stocks, and to a lesser extent, distressed securities and merger arbitrage.

Strategy, Benefits, Results

Strategy

  • The fund equally allocates its assets to three cornerstone funds each with a 50-year track record run independently by the Franklin, Templeton or Franklin Mutual Series management groups.
  • These underlying funds ­– Franklin Income Fund, Templeton Growth Fund and Franklin Mutual Shares Fund – invest in attractively valued stocks and bonds in the U.S. and abroad.

Benefits

  • Diversification. The fund typically displays broad industry and country exposures for added diversification opportunities.
  • Low Common Holdings. The distinct investment approaches of the underlying managers generally leads to a very low number of holdings common to all three underlying funds.
  • Automatic Rebalancing. Helps maintain consistent exposures to the distinct investment strategies throughout changing market environments.

Selling The Fund

  1. Explain that the fund's automatic rebalancing feature ensures the fund's asset allocation remains intact in any market environment.

  2. Emphasize the fund's broad diversification.

  3. Point out how your client can access the expertise of three world-class investment management groups through one investment vehicle.