Fund Description

The fund seeks to make monthly distributions, while preserving the investors' capital over the long term. The fund has a strategic allocation of assets primarily among equity and fixed-income underlying fund investments (largely Franklin Templeton funds) and an income generation strategy, which will include derivatives. The fund also employs a managed distribution policy that is designed to provide regular level monthly payments (in retirement plans that permit such cash distributions or if the fund is held outside of a qualified plan).

Strategy Statement

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


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


Overall Morningstar Rating As of 06/30/2021

Rating Category: Target-Date Retirement

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 06/30/2021

Years Ratings Funds
in category
2 Stars
2 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • The fund employs a managed distribution policy to deliver set monthly income payments
  • Fund managers choose a selection of fixed income funds, dividend-focused equity funds and alternative sources of income to achieve fund’s goal
  • Portfolio is actively managed to capitalize on market trends and mitigate risk through a diversified mix of asset classes, regions and sectors


  • Predetermined monthly distributions aim to provide consistency and predictability
  • Managed for changing markets with objective of achieving stable and sustainable income stream
  • Multilevel diversification reduces reliance on traditional sources of income while providing potential for capital preservation

Investing In The Fund

What Are the Risks

All investments involve risks, including possible loss of principal. Since the fund invests in underlying funds, which may engage in a variety of investment strategies involving certain risks, the Franklin LifeSmart Retirement Income Fund is subject to those same risks. 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. Investments in equity-linked notes (ELNs) often have risks similar to their underlying securities, which could include management, market, and, as applicable, foreign securities and currency risks. In addition, ELNs are subject to certain debt securities risks, such as interest rate and credit risks, as well as counterparty and liquidity risk. Investments in equity index-linked notes (ILNs) often have risks similar to securities in the underlying index, which could include management risk, market risk and, as applicable, foreign securities and currency risks. Investments in derivatives involve costs and can create economic leverage, which may result in significant volatility and cause the fund to participate in losses (as well as gains) that exceed the fund's initial investment.

These and other risks are described more fully in the fund's prospectus.

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.