Canada

This website is intended for Canadian Institutional Investors only.

Optimism is on rise

Franklin Templeton SolutionsSophisticated SimplicityLifeSmart Advantages

Retirement, the LifeSmart Way

Franklin LifeSmart® Portfolios is a suite of multi-asset, target-risk / target-date portfolios available to Group RRSP service providers and pension plan sponsors. They offer:

  • Sophisticated simplicity for plan members who need only answer two questions: When do I want to retire? And what is my risk tolerance?

  • A tested glide path designed to protect investors from investment risk, retirement income shortfall and longevity risk.

  • Multi-asset diversification within each portfolio to provide broad exposure to multiple asset classes.

  • Tactical asset allocation along each glide path to help capitalize on short-term opportunities and manage risk in shifting market and interest rate environments.

  • The global expertise of Franklin Templeton Solutions, a team that has provided multi-asset strategy solutions to affluent Canadian investors for more than 30 years.

Sophisticated Simplicity

In order to select the most appropriate portfolio, plan members simply need to answer two questions:

  • “When do I want to retire?” Plan members can choose from the date that most closely resembles their anticipated retirement year: 2020, 2030, 2040, 2050 or “Retirement” for those about to retire within 5 years.

  • “What is my risk tolerance?” Plan members can choose from conservative, moderate or growth-oriented portfolios, based on their tolerance or “appetite” for risk.

Portfolios for many types of investors*

Within the LifeSmart suite, we have 15 individual portfolios to choose from. Each portfolio — regardless of target date or target risk — has a distinct asset mix that is recalibrated over time to become more conservative as retirement approaches. This eliminates the need for plan members to monitor and adjust their portfolio on their own.

*The Retirement Conservative and Retirement Growth Portfolios will be created before 2020

LifeSmart Advantages

  • A rigorously tested glide path designed to protect investors from investment risk, retirement income shortfall and longevity risk.

  • Multi-asset diversification within each portfolio to provide broad exposure to many types of asset classes.

  • Tactical asset allocation along each glide path to help capitalize on short-term opportunities and manage risk in shifting market and interest rate environments.

  • The global expertise of Franklin Templeton Solutions — a group of multi-asset experts focused on creating total portfolio solutions integrated with risk management to help investors achieve their financial goals, regardless of market conditions.

Franklin LifeSmart Portfolios
2020203020402050Retirement
Conservative Conservative Conservative Conservative Conservative*
Moderate Moderate Moderate Moderate Moderate
Growth Growth Growth Growth Growth*

*The Retirement Conservative and Retirement Growth Portfolios will be created before 2020.

 

Our proprietary and tested glide path addresses three key challenges.

  1. Provide the greatest potential for growth during accumulation years
  2. Provide the greatest pool of capital to generate an income during retirement
  3. Ensure that the greatest potential pool of capital is available within a specific date range since retirees face their maximum risk at the point of retirement when they need their investments to fund a retirement income

At Franklin Templeton, we have studied patterns of risk, return, and correlation between asset classes and utilize proprietary simulation techniques in order to determine the optimized glide path for each portfolio—one that we believe most effectively protects investors from interim risk, retirement income shortfall, and longevity risk.

There’s more to building diversification than just simply selecting bonds and stocks!

  • Adding exposure to specialized areas like global fixed income and Canadian small and micro-cap can help managers to deliver strong risk-adjusted returns and a portfolio with low relative correlations.

  • Style diversification is the other major building block of a diversified portfolio. Value and growth are two major style categories in equity fund management — both are proven investment approaches but each performs differently in response to changing market conditions.

  • Portfolios include Canadian mutual funds, funds advised by our global affiliates, Luxembourg-based SICAVS* and third-party ETFs for targeted allocation exposure.

Asset Class
Investment Structure
Strategies
Fixed Income
Domestic Market, U.S., Global, High Yield, Emerging Markets
Duration Management, Term Structure, Positioning, Sector/Security Selection Trading
Equities Domestic Market, U.S., Global, Emerging Markets Growth, GARP, Value, Deep Value, Micro Cap, Small Cap, Mid Cap, Large Cap, All Cap
Currencies Domestic Market, U.S. Dollar, Euro, Sterling, Yen
Hedged, Non-Hedged
Alternatives Listed Real Estate, Commodities, Listed Infrastructure Relative Value, Long/Short

*Franklin Templeton Investment Funds (FTIF) are Luxembourg SICAVs and are not available for direct purchase in Canada. Société d’Investissement à Capital Variable (SICAV) is an open-end investment company governed by the laws of Luxembourg.

 

The portfolio management team sets a long-term strategic outlook for asset allocation and fund selection. In addition, based on their forward-looking view on market developments, they have the flexibility to make tactical adjustments or “tilts” in an effort to capitalize on market opportunities or manage potential risks. The goal is to optimize asset allocation and drive greater return potential at a given risk level.

With over 70 specialists, FT Solutions is embedded within Franklin Templeton Investments (FTI) global integrated platform combining access to the local insights and global perspective of over 600 investment professionals.


Information contained in this brochure should not be considered a solicitation to buy or an offer to sell a security to any person. Franklin Templeton Institutional is part of Franklin Templeton Investments Corp.

Franklin Templeton Solutions (formerly Franklin Multi-Asset Strategies) is a world-wide team dedicated to global portfolio-based solutions and draws on the expertise of a number of Franklin Templeton affiliates. In Canada, the advisor to FT Solutions mandates is Fiduciary Trust Company of Canada a wholly owned subsidiary of Franklin Templeton Investment Corp.

Franklin LifeSmart™ is a trademark of Franklin Templeton Investments Corp. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.