Franklin Templeton Strategic Real Return Portfolios
Year to Date Returns (Net)
7.49%
Year to Date Returns (Pure Gross)
8.95%
Overview
- Investment Overview
- Investment Process
- Meet Your Manager
Investment Overview
The Franklin Templeton Strategic Real Return Portfolios combines tactical asset allocation and an expanded range of asset classes to hedge against increases in U.S. inflation and achieve long-term real return. The strategy allocates its assets among five investment “sleeves” that the advisor believes generally complement each other and have various inflation-hedging qualities.
Investment Objective
Seeks to protect purchasing power in times of high or accelerating levels of inflation.
Investment Philosophy
We believe:
- Inflation is difficult to predict, and typically damaging to investment portfolios. However, inflation patterns are complex and a result of various factors: the economic cycle, monetary policy, investor expectations and exogenous shocks. Therefore, different asset classes tend to outperform in different inflationary periods.
- Traditional inflation-aware strategies tend to be limited, with a narrow investment universe, little diversification and higher volatility. Therefore, investors should consider a diversified allocation to inflation-aware assets that work in different inflationary periods.
Key Differentiators
Rigorous manager selection and sophisticated portfolio construction address the challenges and opportunities presented by the marketplace and that ensures the portfolios are positioned appropriately using:
- Structural diversification across asset classes that typically do well in different types of inflationary periods
- Tactical asset allocation† that seeks to tilt the portfolio to current market opportunities to enhance returns
Diversification does not guarantee a profit or protect against a loss. There is no guarantee that the Portfolio's objectives will be met.
Key Benefits
- Sophisticated flexible approach to inflation-aware investing seeks to help protect purchasing power in times of high or accelerating levels of inflation while also providing benefits during periods of low inflation expectations
- Includes traditional and alternative asset classes that seeks to hedge against short-term and long-term inflation
- Complements traditional portfolios with core inflationary assets
Investment Process
Investment Process
Step 1 - Identify Asset Classes with Real Return Potential
- The team allocates to traditional and alternative asset classes that have consistently provided long-term growth, especially in times of economic inflation
- Assets include:
- Inflation-linked bonds: seeks to keep up with U.S. consumer price inflation
- Commodity-linked securities: expected to perform positively during times of high commodity inflation
- Real Estate Investment Trusts: historically have added value during inflationary real estate periods
- Global stocks: diversified global exposure offering economic growth across various international economies
Step 2 - Determine Long-Term Asset Allocation Weights
- Weights are diversified across assets based on historical performance relationships, track record during inflationary times, along with forecasted real return potential
Step 3 - Take Advantage of Shorter-Term Opportunities Presented by the Market
- 10% of the portfolio can shift between stocks and bonds depending on Franklin Templeton Investment Solutions’ view of which market has the potential to outperform
The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.
Meet Your Manager
Franklin Templeton Investment Solutions builds multi-asset models and strategies that combine the best thinking across Franklin Templeton’s global platform. The team includes more than 100 investment professionals, specializing in strategic asset allocation and tactical positioning, fundamental and quantitative research, active integration, and risk management.
Performance
- Average Annual Total Returns
- Calendar Year Returns
- Cumulative Total Returns
- Risk/Return Profile
- Risk Measures
Average Annual Total Returns
Average Annual Total Returns
2025
Chart
Quarter End As of 09/30/2025 | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | 15 Years | Since Inception 02/28/2010 | |
|---|---|---|---|---|---|---|---|---|
| Franklin Templeton Strategic Real Return Portfolios - Net (%) | 5.18 | 7.49 | 6.27 | 4.57 | 4.34 | 2.80 | 2.97 | |
| Franklin Templeton Strategic Real Return Portfolios - Pure Gross (%) | 7.11 | 9.45 | 8.22 | 6.48 | 6.25 | 4.69 | 4.86 | |
| Bloomberg U.S. Treasury: U.S. TIPS (%) | 3.79 | 4.88 | 1.42 | 3.42 | 3.01 | 2.85 | 3.16 |
Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross composite performance of the portfolio reduced by an annual fee of 1.84%, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
Prior to December 1, 2017, the performance results were calculated using QS Investors Strategic Real Return Composite which was comprised of institutional account(s). Net total returns were calculated by reducing the institutional gross-of-fees performance by the highest bundle fee of 3.0%. FTIS follows substantially the same investment philosophy, strategies and processes in managing SMA Strategic Real Return account(s) that it does in managing institutional QS Investors Strategic Real Return account(s). The SMA accounts are implemented through a combination of mutual funds and ETFs whereas the institutional composite invests in ETFs and individual global equity and fixed-income (inflation indexed) securities. FTIS follows substantially the same investment philosophy and strategies in managing the Strategic Real Return SMA portfolio that it does in managing the QS Investors Strategic Real Return Composite, which is comprised of institutional account(s). The SMA portfolio is created to substantially replicate the themes and characteristics of the institutional account(s). However, the institutional account(s) may hold securities that are not available for investment in the SMA portfolio. Notwithstanding, the Strategic Real Return Composite utilizes a GTAA overlay strategy that consists of long and short positions in exchange exchange-traded equity index futures, government bond futures and currency forwards. The SMA portfolio will not utilize the GTAA overlay as futures are not available for use in the SMA portfolio. The Strategic Real Return Composite also invests approximately 20% in commodity index futures. While the SMA portfolio utilizes ETFs to gain the same exposure. Consequently, the performance of the Strategic Real Return SMA will vary from the performance of the Strategic Real Return Composite, to the extent there are any differences between the Strategic Real Return Composite and the portfolio of the Strategic Real Return SMA which may be substantial during short time periods.
For Primerica Lifetime Investment Platform accounts, Franklin Templeton Investment Solutions (“FTIS”), through Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), will provide a model portfolio for the Franklin Templeton Strategic Real Return investment strategy to PFS Investments, Inc. (“Primerica Advisors”). FTIS and FTPPG anticipate that Primerica Advisors will generally follow the model in managing client accounts. However, Primerica Advisors, not FTIS or FTPPG, has investment authority and discretion over client accounts on the Lifetime Investment Platform. Accounts managed by Primerica Advisors through the Lifetime Investment Platform, utilizing the model will experience performance results different from the performance results of accounts managed by FTIS and FTPPG on a discretionary basis outside of the platform due to the fees charged by Primerica Advisors, and due to Primerica Advisors’ management of its program and each client’s account under the program.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Calendar Year Returns
Calendar Year Returns
Chart
Quarter End As of 09/30/2025 | YTD | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | Performance Inception Date | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Franklin Templeton Strategic Real Return Portfolios - Net (%) | 7.49 | 5.56 | 5.24 | -10.02 | 17.99 | 3.78 | 13.91 | -7.56 | 10.16 | 1.99 | -11.65 | 02/28/2010 | |
| Franklin Templeton Strategic Real Return Portfolios - Pure Gross (%) | 8.95 | 7.49 | 7.17 | -8.35 | 20.13 | 5.68 | 15.99 | -5.85 | 12.17 | 3.86 | -10.01 | 02/28/2010 | |
| Bloomberg U.S. Treasury: U.S. TIPS (%) | 6.87 | 1.84 | 3.90 | -11.85 | 5.96 | 10.99 | 8.43 | -1.26 | 3.01 | 4.68 | -1.44 | — |
Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross composite performance of the portfolio reduced by an annual fee of 1.84%, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
Prior to December 1, 2017, the performance results were calculated using QS Investors Strategic Real Return Composite which was comprised of institutional account(s). Net total returns were calculated by reducing the institutional gross-of-fees performance by the highest bundle fee of 3.0%. FTIS follows substantially the same investment philosophy, strategies and processes in managing SMA Strategic Real Return account(s) that it does in managing institutional QS Investors Strategic Real Return account(s). The SMA accounts are implemented through a combination of mutual funds and ETFs whereas the institutional composite invests in ETFs and individual global equity and fixed-income (inflation indexed) securities. FTIS follows substantially the same investment philosophy and strategies in managing the Strategic Real Return SMA portfolio that it does in managing the QS Investors Strategic Real Return Composite, which is comprised of institutional account(s). The SMA portfolio is created to substantially replicate the themes and characteristics of the institutional account(s). However, the institutional account(s) may hold securities that are not available for investment in the SMA portfolio. Notwithstanding, the Strategic Real Return Composite utilizes a GTAA overlay strategy that consists of long and short positions in exchange exchange-traded equity index futures, government bond futures and currency forwards. The SMA portfolio will not utilize the GTAA overlay as futures are not available for use in the SMA portfolio. The Strategic Real Return Composite also invests approximately 20% in commodity index futures. While the SMA portfolio utilizes ETFs to gain the same exposure. Consequently, the performance of the Strategic Real Return SMA will vary from the performance of the Strategic Real Return Composite, to the extent there are any differences between the Strategic Real Return Composite and the portfolio of the Strategic Real Return SMA which may be substantial during short time periods.
For Primerica Lifetime Investment Platform accounts, Franklin Templeton Investment Solutions (“FTIS”), through Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), will provide a model portfolio for the Franklin Templeton Strategic Real Return investment strategy to PFS Investments, Inc. (“Primerica Advisors”). FTIS and FTPPG anticipate that Primerica Advisors will generally follow the model in managing client accounts. However, Primerica Advisors, not FTIS or FTPPG, has investment authority and discretion over client accounts on the Lifetime Investment Platform. Accounts managed by Primerica Advisors through the Lifetime Investment Platform, utilizing the model will experience performance results different from the performance results of accounts managed by FTIS and FTPPG on a discretionary basis outside of the platform due to the fees charged by Primerica Advisors, and due to Primerica Advisors’ management of its program and each client’s account under the program.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Cumulative Total Returns
Cumulative Total Returns
The hypothetical growth scenario of $100k does not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Had they been reflected hypothetical values would be lower.
2010
2025
Chart
Quarter End As of 09/30/2025 | YTD | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years | Since Inception 02/28/2010 | |
|---|---|---|---|---|---|---|---|---|
| Franklin Templeton Strategic Real Return Portfolios - Net (%) | 7.49 | 5.18 | 24.19 | 35.55 | 52.88 | 51.32 | 57.84 | |
| Franklin Templeton Strategic Real Return Portfolios - Pure Gross (%) | 8.95 | 7.11 | 31.13 | 48.43 | 83.35 | 98.82 | 109.59 | |
| Bloomberg U.S. Treasury: U.S. TIPS (%) | 6.87 | 3.79 | 15.38 | 7.32 | 34.46 | 52.49 | 62.46 |
Historical Cumulative Total Returns
2025
Date Selected As of 09/30/2025 | YTD | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years | Since Inception 02/28/2010 | |
|---|---|---|---|---|---|---|---|---|
| Franklin Templeton Strategic Real Return Portfolios - Net (%) | 7.49 | 5.18 | 24.19 | 35.55 | 52.88 | 51.32 | 57.84 | |
| Franklin Templeton Strategic Real Return Portfolios - Pure Gross (%) | 8.95 | 7.11 | 31.13 | 48.43 | 83.35 | 98.82 | 109.59 | |
| Bloomberg U.S. Treasury: U.S. TIPS Index (%) | 6.87 | 3.79 | 15.38 | 7.32 | 34.46 | 52.49 | 62.46 |
Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross composite performance of the portfolio reduced by an annual fee of 1.84%, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
Prior to December 1, 2017, the performance results were calculated using QS Investors Strategic Real Return Composite which was comprised of institutional account(s). Net total returns were calculated by reducing the institutional gross-of-fees performance by the highest bundle fee of 3.0%. FTIS follows substantially the same investment philosophy, strategies and processes in managing SMA Strategic Real Return account(s) that it does in managing institutional QS Investors Strategic Real Return account(s). The SMA accounts are implemented through a combination of mutual funds and ETFs whereas the institutional composite invests in ETFs and individual global equity and fixed-income (inflation indexed) securities. FTIS follows substantially the same investment philosophy and strategies in managing the Strategic Real Return SMA portfolio that it does in managing the QS Investors Strategic Real Return Composite, which is comprised of institutional account(s). The SMA portfolio is created to substantially replicate the themes and characteristics of the institutional account(s). However, the institutional account(s) may hold securities that are not available for investment in the SMA portfolio. Notwithstanding, the Strategic Real Return Composite utilizes a GTAA overlay strategy that consists of long and short positions in exchange exchange-traded equity index futures, government bond futures and currency forwards. The SMA portfolio will not utilize the GTAA overlay as futures are not available for use in the SMA portfolio. The Strategic Real Return Composite also invests approximately 20% in commodity index futures. While the SMA portfolio utilizes ETFs to gain the same exposure. Consequently, the performance of the Strategic Real Return SMA will vary from the performance of the Strategic Real Return Composite, to the extent there are any differences between the Strategic Real Return Composite and the portfolio of the Strategic Real Return SMA which may be substantial during short time periods.
For Primerica Lifetime Investment Platform accounts, Franklin Templeton Investment Solutions (“FTIS”), through Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), will provide a model portfolio for the Franklin Templeton Strategic Real Return investment strategy to PFS Investments, Inc. (“Primerica Advisors”). FTIS and FTPPG anticipate that Primerica Advisors will generally follow the model in managing client accounts. However, Primerica Advisors, not FTIS or FTPPG, has investment authority and discretion over client accounts on the Lifetime Investment Platform. Accounts managed by Primerica Advisors through the Lifetime Investment Platform, utilizing the model will experience performance results different from the performance results of accounts managed by FTIS and FTPPG on a discretionary basis outside of the platform due to the fees charged by Primerica Advisors, and due to Primerica Advisors’ management of its program and each client’s account under the program.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Risk/Return Profile
Risk/Return Profile (%)
Based on a 10 year period ending Sep-30-2025
Chart
| Pure Gross |
| Net |
| Bloomberg U.S. Treasury: U.S. TIPS |
Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross composite performance of the portfolio reduced by an annual fee of 1.84%, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
Prior to December 1, 2017, the performance results were calculated using QS Investors Strategic Real Return Composite which was comprised of institutional account(s). Net total returns were calculated by reducing the institutional gross-of-fees performance by the highest bundle fee of 3.0%. FTIS follows substantially the same investment philosophy, strategies and processes in managing SMA Strategic Real Return account(s) that it does in managing institutional QS Investors Strategic Real Return account(s). The SMA accounts are implemented through a combination of mutual funds and ETFs whereas the institutional composite invests in ETFs and individual global equity and fixed-income (inflation indexed) securities. FTIS follows substantially the same investment philosophy and strategies in managing the Strategic Real Return SMA portfolio that it does in managing the QS Investors Strategic Real Return Composite, which is comprised of institutional account(s). The SMA portfolio is created to substantially replicate the themes and characteristics of the institutional account(s). However, the institutional account(s) may hold securities that are not available for investment in the SMA portfolio. Notwithstanding, the Strategic Real Return Composite utilizes a GTAA overlay strategy that consists of long and short positions in exchange exchange-traded equity index futures, government bond futures and currency forwards. The SMA portfolio will not utilize the GTAA overlay as futures are not available for use in the SMA portfolio. The Strategic Real Return Composite also invests approximately 20% in commodity index futures. While the SMA portfolio utilizes ETFs to gain the same exposure. Consequently, the performance of the Strategic Real Return SMA will vary from the performance of the Strategic Real Return Composite, to the extent there are any differences between the Strategic Real Return Composite and the portfolio of the Strategic Real Return SMA which may be substantial during short time periods.
For Primerica Lifetime Investment Platform accounts, Franklin Templeton Investment Solutions (“FTIS”), through Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), will provide a model portfolio for the Franklin Templeton Strategic Real Return investment strategy to PFS Investments, Inc. (“Primerica Advisors”). FTIS and FTPPG anticipate that Primerica Advisors will generally follow the model in managing client accounts. However, Primerica Advisors, not FTIS or FTPPG, has investment authority and discretion over client accounts on the Lifetime Investment Platform. Accounts managed by Primerica Advisors through the Lifetime Investment Platform, utilizing the model will experience performance results different from the performance results of accounts managed by FTIS and FTPPG on a discretionary basis outside of the platform due to the fees charged by Primerica Advisors, and due to Primerica Advisors’ management of its program and each client’s account under the program.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Risk Measures
Risk Measures
| Statistics | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Alpha (Net of Fees) | 1.28 | 2.65 | 5.31 | 1.45 |
| Beta (Net) | 1.13 | 1.23 | 1.19 | 1.13 |
| R-Squared (Net) | 0.42 | 0.63 | 0.62 | 0.39 |
| Historical Tracking Error (Net) | 8.11 | 4.61 | 5.71 | 7.04 |
| Historical Tracking Error (Pure Gross) | 8.11 | 4.61 | 5.71 | 7.04 |
| Information Ratio (Pure Gross) | 0.80 | 0.99 | 1.19 | 0.46 |
| Information Ratio (Net) | 0.34 | 0.57 | 0.85 | 0.19 |
| Standard Deviation (%) | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Standard Deviation (Net) | 9.61 | 7.34 | 9.07 | 8.97 |
| Sharpe Ratio (%) | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Sharpe Ratio (Net) | 0.28 | 0.36 | 0.38 | 0.28 |
| Sharpe Ratio (Pure Gross) | 0.49 | 0.61 | 0.58 | 0.49 |
Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross composite performance of the portfolio reduced by an annual fee of 1.84%, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
Prior to December 1, 2017, the performance results were calculated using QS Investors Strategic Real Return Composite which was comprised of institutional account(s). Net total returns were calculated by reducing the institutional gross-of-fees performance by the highest bundle fee of 3.0%. FTIS follows substantially the same investment philosophy, strategies and processes in managing SMA Strategic Real Return account(s) that it does in managing institutional QS Investors Strategic Real Return account(s). The SMA accounts are implemented through a combination of mutual funds and ETFs whereas the institutional composite invests in ETFs and individual global equity and fixed-income (inflation indexed) securities. FTIS follows substantially the same investment philosophy and strategies in managing the Strategic Real Return SMA portfolio that it does in managing the QS Investors Strategic Real Return Composite, which is comprised of institutional account(s). The SMA portfolio is created to substantially replicate the themes and characteristics of the institutional account(s). However, the institutional account(s) may hold securities that are not available for investment in the SMA portfolio. Notwithstanding, the Strategic Real Return Composite utilizes a GTAA overlay strategy that consists of long and short positions in exchange exchange-traded equity index futures, government bond futures and currency forwards. The SMA portfolio will not utilize the GTAA overlay as futures are not available for use in the SMA portfolio. The Strategic Real Return Composite also invests approximately 20% in commodity index futures. While the SMA portfolio utilizes ETFs to gain the same exposure. Consequently, the performance of the Strategic Real Return SMA will vary from the performance of the Strategic Real Return Composite, to the extent there are any differences between the Strategic Real Return Composite and the portfolio of the Strategic Real Return SMA which may be substantial during short time periods.
For Primerica Lifetime Investment Platform accounts, Franklin Templeton Investment Solutions (“FTIS”), through Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), will provide a model portfolio for the Franklin Templeton Strategic Real Return investment strategy to PFS Investments, Inc. (“Primerica Advisors”). FTIS and FTPPG anticipate that Primerica Advisors will generally follow the model in managing client accounts. However, Primerica Advisors, not FTIS or FTPPG, has investment authority and discretion over client accounts on the Lifetime Investment Platform. Accounts managed by Primerica Advisors through the Lifetime Investment Platform, utilizing the model will experience performance results different from the performance results of accounts managed by FTIS and FTPPG on a discretionary basis outside of the platform due to the fees charged by Primerica Advisors, and due to Primerica Advisors’ management of its program and each client’s account under the program.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Portfolio
Positions
Portfolio Statistics
Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.
Portfolio Allocations
Asset Allocation
Chart
| Portfolio | ||
|---|---|---|
| Inflation Protected Securities | 36.86% | |
| Global Equities | 25.11% | |
| Commodities | 15.68% | |
| Tactical | 11.38% | |
| Real Estate | 9.10% |
Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.
Documents
Product Literature
Factsheet - PRIMERICA - Franklin Templeton Strategic Real Return Portfolios
Product Commentary - PRIMERICA - Franklin Templeton Strategic Real Return Portfolios
Risks
What Are the Risks?
All investments involve risks, including possible loss of principal. The allocation of assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Equity securities are subject to price fluctuation and possible loss of principal. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Investments in underlying funds are subject to the same risks as, and indirectly bear the fees and expenses of, the underlying funds. Leverage increases the volatility of investment returns and subjects investments to magnified losses and a decline in value. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Active management does not ensure gains or protect against market declines. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Trading models used by the manager for securities selection may become outdated and the historical patterns upon which the models are based may weaken or disappear. Real estate investment trusts (REITs) are closely linked to the performance of the real estate markets. REITs are subject to illiquidity, credit and interest rate risks, and risks associated with small- and mid-cap investments. Short selling is a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks.
Important Information
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by Franklin Templeton. Management is implemented by FTPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee.
Performance data quoted 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 a loss when you sell your shares. Returns reflect reinvestment of dividends and capital gains. Performance figures for periods shorter than one year represent cumulative figures and are not annualized. All performance is reported in US dollars.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Professional money management may not be suitable for all investors. Factual information relating to the securities discussed was obtained from sources believed to be reliable, but there can be no guarantee as to its accuracy. It should not be assumed that investments made in the future will be profitable or will equal the performance of the securities discussed in the material.
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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.
Important data provider notices and terms available at www.franklintempletondatasources.com.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The Bloomberg U.S. TIPS Index is an unmanaged index that measures the performance of intermediate (one to ten year) U.S. Treasury inflation-protected securities.
Source: Bloomberg Indices.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
FINANCIAL ADVISORS: Please call Franklin Templeton at (800) DIAL BEN/342-5236 for more information.
Footnotes
Current Yield is calculated without the deduction of fees and expenses.