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Franklin Templeton Launches Multi-Asset Real Return Fund for U.S. Investors

From: Franklin Templeton Multi-Asset Strategies
Contact: Bill Weeks
Telephone:(212) 632-3204

Fund-of-Funds Combines Expertise from Several Franklin Templeton Investment Platforms
And Seeks to Offer Broad Diversification and Inflation Protection

San Mateo, CA, January 11, 2012 – Franklin Templeton Investments today formally announced that it has launched Franklin Templeton Multi-Asset Real Return Fund for U.S. investors. The new fund combines the distinct investment expertise of several Franklin Templeton investment management teams with the multi-asset management expertise of the Franklin Templeton Multi-Asset Strategies (“FTMAS”) group.

“Franklin Templeton Multi-Asset Real Return Fund’s approach can be an attractive solution for investors seeking the benefits of diversification within a single portfolio that taps the investment expertise across Franklin Templeton’s investment platforms,” said Thomas A. Nelson, CFA , director of quantitative research and portfolio manager for FTMAS, who is the co-lead manager of the Fund with Tony Coffey, CFA, vice president and portfolio manager. “The Fund’s active adjustment of portfolio allocations to address current inflationary environments also can make it an attractive option for investors who are concerned about inflation.” 

The Fund seeks total return that exceeds U.S. inflation over a full inflation cycle (real return), typically five years, by using a flexible allocation strategy that is diversified across a broad spectrum of asset classes, including global equities, global fixed income (including Treasury Inflation-Protected Securities or “TIPS”), and commodities. To help protect against inflation risk, the Fund pairs a diversified multi-asset class portfolio with an analysis of the current inflationary environments. The portfolio will be adjusted to overweight asset classes that have historically performed well under inflation conditions similar to the existing environment.  To help achieve its strategy, the Fund invests primarily in other mutual funds (underlying funds), predominantly other Franklin, Templeton and Mutual Series funds; it also invests a portion of its assets directly in TIPS.

The Fund also includes allocations to Franklin Pelagos Commodities Strategy Fund and Franklin Pelagos Managed Futures Strategy Fund, providing additional diversification through two asset classes that traditionally have exhibited lower correlations to equities and fixed income.  Both Pelagos funds are U.S.-registered mutual funds, currently available only through Franklin Templeton mutual funds (not direct to the public). Franklin Templeton purchased a 20 percent stake in Boston-based alternatives specialist Pelagos Capital Management in November 2010.

“Franklin Templeton Multi-Asset Real Return Fund is an important addition to FTMAS’ diverse range of outcome-oriented investment solutions, including the Franklin Templeton Global Allocation Fund launched late last year, and our long-established target date and target risk funds,” said FTMAS chief investment officer Brent Smith.

Nelson and Coffey will be supported by the broader FTMAS organization, which includes more than 20 investment professionals worldwide with a range of multi-asset expertise.

All investments involve some degree of risk. Generally, investors should be comfortable with fluctuation in the value of their investments, especially over the short term. Stocks have historically outperformed other asset classes over the long term, but they tend to fluctuate more dramatically over the shorter term. 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. Because the fund has a significant investment in TIPS, it is highly influenced by the TIPS market and the monthly inflation adjustments on these securities. Commodity-linked investments can have heightened risks, including price volatility and less liquidity, and their value may be affected by the performance of broader commodities baskets and markets, as well as supply and demand, weather, tax and other regulatory policies. Because the Fund allocates assets to a variety of investment strategies involving certain risks, Franklin Templeton Multi-Asset Real Return Fund may be subject to those same risks. These and other risks are described more fully in the fund’s prospectus.

Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing.  To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN /(800)342-5236 or visit franklintempleton.com.  Please read a prospectus carefully before you invest or send money.

Franklin Templeton Multi-Asset Strategies leverages the insights and investment strategies from Franklin Templeton’s various investment management groups and employs both strategic and tactical asset allocation to create diversified outcome-oriented portfolios focused on risk-adjusted performance and tailored to client needs. FTMAS manages retirement target and global asset allocation portfolios.  An integrated global investment platform, FTMAS has assembled a team with more than 25 years of experience managing multi-asset and multi-style portfolios with over $27 billion in assets under management as of November 30, 2011.

Franklin Templeton Multi-Asset Strategies is an investment platform within Franklin Templeton’s Alternative Strategies unit. In addition to FTMAS, the Alternatives Strategies unit encompasses Franklin Templeton’s asset management joint ventures in Vietnam and China, its wholly-owned local asset management groups in Australia, Brazil, Canada, Dubai, India, Japan, Korea, and the United Kingdom, the emerging market private equity and mezzanine capabilities of Darby, and the global REIT, private multi-manager real estate, and real asset capabilities of Franklin Templeton Real Asset Advisors.

Franklin Templeton Distributors, Inc., a wholly-owned subsidiary of Franklin Resources, Inc., is the principal underwriter of Franklin Templeton’s U.S. registered funds, including the Franklin Templeton Multi-Asset Real Return Fund. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments.  Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams.  The San Mateo, CA-based company has more than 60 years of investment experience and over $670 billion in assets under management as of December 31, 2011.  For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

 

1. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

2. Franklin Templeton Multi-Asset Strategies (FTMAS) is a global investment management group dedicated to multi-strategy solutions and is comprised of individuals from various registered entities within Franklin Templeton Investments (FTI). Certain individuals based in Canada that advise FTMAS mandates are part of Fiduciary Trust Company of Canada, a wholly owned subsidiary of FTI, that originated in 1982. FTMAS was formed in 2007 to combine the research and oversight of all multi-strategy investment solutions offered by FTI. FTMAS invests in various Franklin Templeton investment platforms; AUM for FTMAS is reported under each utilized investment platform, as well as for FTMAS.

 

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