FRANkLIN TEMPLETON LIFESMART PORTFOLIOS

Franklin Templeton
LifeSmart Portfolios
SETTING A NEW STANDARD
LifeSmart vs Traditional Target Date Fund
Most target date funds provide members with a single glide path choice, regardless of their financial situation
and risk tolerance. Franklin Templeton LifeSmart Portfolios (“LifeSmart”), on the other hand, provide three
distinct risk tolerance choices based on each member’s desired retirement date range. In addition to this
differentiated risk overlay, LifeSmart employs active management along each glide path so market developments
can be appropriately factored in and acted upon. The portfolio management team can employ a tactical over
or underweighting whereby the target equity or income allocation of the Portfolio can be adjusted up to 5%.
TRADITIONAL TARGET DATE FUNDS
FRANKLIN TEMPLETON LIFESMART PORTFOLIOS
More growth potential early on
Less risk later on
GROWTH
PORTFOLIO
Equity %
MODERATE
PORTFOLIO
CONSERVATIVE
PORTFOLIO
Annual roll-down
Today
Today
Retirement
Equity (%)
Retirement
Fixed Income (%)
TYPICAL TARGET DATE FUNDS
LIFESMART APPROACH
BOTTOM UP
TOP DOWN
Fixed Rebalancing Model
Tactical Asset
Allocation Strategy
Mandate Research
• Limited investment choice
• Lack of style diversification
Portfolio managers seek to capitalize
on global economic trends through
active asset allocation in:
Dedicated team of investment
professionals strive to add value
through fund selection utilizing:
• Limited depth and breadth
of offering
• Asset mix
• In-depth quantitative
and qualitative analysis
• Geography
• Portfolio optimization techniques
• Investment style
• Disciplined due diligence
and manager review process
• Market Capitalization and Sector
STRATEGIC ASSET ALLOCATION
LIFESMART’S STRATEGIC AND TACTICAL ASSET ALLOCATION
Fixed Income
Fixed Income
1
Equity
Equity
Time
Time
Franklin Templeton LifeSmart Portfolios
The LifeSmart Difference
Franklin Templeton
Multi-Asset Strategies1
The LifeSmart tactical asset allocation can vary +/-5% from its strategic
allocation. This means that in times when the market favours fixed income,
the LifeSmart portfolio manager can overweight fixed income and
underweight equities. Likewise, in times when the market favours equities,
the portfolio manager can overweight equities and underweight fixed income.
Plan members can benefit
from the breadth and scope of
investment expertise that
FTMAS brings to LifeSmart.
FTMAS’ team of investment
professionals across the globe
leverage the “on the ground”
0.9
expertise of Franklin Templeton
Equity (%)
Investments’ global platform,
using inputs from analysts
0.6
and portfolio managers around
the world.
0.3
FTMAS Team
0
Today
Retirement
LifeSmart Tactical Asset Allocation Roll-down
Strategic Asset Allocation Roll-down
• Over 25 years of
investment expertise
Overweight Equities
Overweight Fixed Income
• Over 20 global investment
The above chart is for illustration purposes only and is based on hypothetical portfolio investments.
professionals
LIFESMART INVESTMENT CHOICES
Diversified portfolios
enriched with enhanced
investment capabilities:
GROWTH
Risk Overlay
Options
8.9%
9.9%
14.6%
29.9%
63.8%
91.1%
90.1%
85.4%
70.1%
36.2%
• Offshore mandates2
CONSERVATIVE
MODERATE
• Sub-advised funds
19.1%
20.3%
25.3%
39.8%
69.6%
80.9%
79.7%
74.7%
60.2%
30.4%
28.3%
29.7%
35.0%
48.6%
74.1%
71.7%
70.3%
65.0%
51.4%
25.9%
2045
Equity
2040
2030
2020
• ETFs2
• Currency hedging
Retirement*
Fixed Income
*The Conservative Retirement and Growth Retirement Portfolios will come into existence prior to the year 2020.
The allocations presented in the chart above represent the strategic roll-down as of January 1, 2012. The LifeSmart
Portfolios adopt both a strategic and tactical roll-down which adjusts the asset mix throughout the life of the Portfolio
until the target date is reached.
Franklin Templeton LifeSmart Portfolios
2
Shift Your Retirement Thinking
For more information on Franklin Templeton LifeSmart Portfolios, please visit
www.smartlifecycle.ca or contact:
Terry Kirby, CFA
Vice President,
Business Development
Tel.: 416.957.6006
E-mail: [email protected]
Julie Caron, CFA
Vice President,
Business Development
Tel.: 418.654.9446
E-mail: [email protected]
Duane W. Green
Head of Institutional-Canada
Tel.: 416.957.6165
E-mail: [email protected]
Franklin Templeton Institutional
200 King Street West, Suite 1400, Toronto, ON M5H 3T4
Tel: 416.957.6000 Toll-free: 1.800.897.7286 Fax: 416.364.1320
Franklin Templeton Institutional is part of Franklin Templeton Investments Corp.
FTMAS is a global team dedicated to global portfolio-based solutions. The individuals based in
Canada that advise FTMAS mandates are part of Fiduciary Trust Company of Canada, a wholly
owned subsidiary of Franklin Templeton Investments Corp.
2 Each Portfolio may invest in ETFs and in SICAV funds. Société d’Investment a Capital Variable
(SICAV) is an open end investment company, governed by the laws of Luxembourg.
201203130992t_E
1
The Franklin Templeton LifeSmart Portfolios are offered through insurance companies’ group
savings platforms and can not be offered or sold directly. Information contained in this
promotional piece should not be considered a solicitation to buy or an offer to sell a security
to any person.