Franklin LifeSmart 2040 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 2040 approaches, and reaching its final and most conservative asset allocation approximately seven years after the target year. The fund invests
primarily in a combination of other Franklin Templeton mutual funds and Franklin
Templeton and third party exchange-traded funds (ETFs).

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 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 2040, the fund provides asset allocation which adjusts to become progressively more conservative as the target date approaches."


Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2013
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

Strategy, Benefits, Results


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


  • 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

Investing In The Fund

What Are the Risks?

  • The investment risk of the retirement target fund changes over time as its asset allocation changes.
  • Since the fund invests in underlying funds, including exchange-traded funds (ETFs), which may engage in a variety of investment strategies involving certain risks, the Franklin LifeSmart 2040 Retirement Target Fund is subject to those same risks.
  • All investments involve risks, including possible loss of principal. Principal invested is not guaranteed at any time, including at or after the fund’s retirement target date; nor is there any guarantee that the fund will provide sufficient income at or through the investor’s retirement.
  • 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 the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Foreign investing carries additional risks such as currency and market volatility and political or social instability, risks which are heightened in developing countries.
  • These risks are described more fully in the fund’s prospectus.
  • Investors should consult their financial professional for help selecting the appropriate fund of funds, or fund combination, based on an evaluation of their investment objectives, retirement time horizons and risk tolerance.

Minimum Investment


How Financial Professionals Help You

Speak with your financial professional about whether this fund is appropriate for you.

Learn more from FINRA about How to Find and Work with an Investment Professional.