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 advisor or call Franklin Templeton.
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 advisor or call Franklin Templeton.
Shareholders have approved changes to Franklin LifeSmart 2015 Retirement Target Fund. Effective on or about 5/1/16, among other things, the fund will change its name to Franklin LifeSmart Retirement Income Fund and change its investment goal and strategies.The fund will also amend its current investment management agreement and be able to rely on a manager of managers order from the SEC. If you have any questions, contact your financial advisor or call Investor Services at (800) 632-2301.
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).
Table Legend
Historical Style Current Style | Large | Size | ||
---|---|---|---|---|
Medium | ||||
Small | ||||
Value | Blend | Growth | ||
Style |
Balances investment total return goals with a risk-focused approach
Diversified selection of investments
There are well over 100 investment vehicles, which fall within the various asset classes, that are available to the LifeSmart portfolio manager. Asset classes such as:
U.S. Growth | U.S. Value | |
Sector | Alternatives |
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.
Speak to your advisor about whether this fund is appropriate for you.
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