The Franklin LifeSmart 2020, 2030, 2040 and 2050 Retirement Target funds will complement the existing 2015, 2025, 2035 and 2045 Retirement Target funds. The investment goal of each fund is to seek the highest level of long-term total return consistent with its specific asset allocation. Each fund’s allocation is designed for investors who are planning to retire around the target year indicated in the fund’s name. The funds invest their assets primarily in other Franklin Templeton mutual funds.
“This approach best addresses the competing goals of reaching retirement with the highest expected portfolio value but with the greatest amount of certainty,” said Tom Nelson, the funds’ co-lead portfolio manager. “Following a ‘to retirement’ glide path serves to help reduce sequencing risk—the risk of sustaining a large loss near retirement that impacts the portfolio’s longevity potential.”
Over time, each LifeSmart fund’s allocation will change as it follows its predetermined glide path, but the managers also have the flexibility to make adjustments along the way. In allocating the funds’ assets, the funds’ managers adhere to both a top-down and bottom-up tactical discipline. They identify short-term market dislocations and opportunities and implement small tactical shifts within asset classes.
The funds’ portfolio managers, Tony Coffey and Tom Nelson, are supported by the Franklin Templeton Multi-Asset Strategies (FTMAS) team, which includes more than 30 dedicated professionals. FTMAS employs both strategic and tactical asset allocation to create diversified outcome-oriented portfolios focused on risk-adjusted performance and tailored to client needs.
Franklin LifeSmart funds are designed for investors who want the simplicity of an asset allocation fund paired with a risk management approach, active and flexible portfolio management and a specialized multi-asset strategy team managing complex investment decisions. For more information, click here.