TARGET A MORE PRECISE OUTCOME

Franklin Target Return Fund

The investment world changed in 2008 and 2009. In a brief period of time, the Global Financial Crisis wiped out trillions of dollars in wealth across many asset classes. This broad‐based downturn caused some rattled investors to abandon the markets altogether. Despite these challenges, investors’ goals haven’t changed, but the way forward may. Franklin Target Return Fund offers:

Clearer Targets, Better Outcomes

The fund offers a core solution that aims to deliver consistent returns within a prescribed volatility range.

A multi-asset solution for today’s market

Using both traditional and non-traditional asset allocation techniques the fund is better able to meet today’s market challenges head-on and, over time, its established performance targets.

Expertise. Discipline. Diligence.

A dedicated team of investment professionals and risk management specialists review economic ideas, market stresses, and investment opportunities to ensure portfolios are weighted for a variety of market outcomes.

Clearer Targets, Better Outcomes

Franklin Target Return Fund seeks to deliver a 4% return (net of fees and expenses) above the FTSE TMX 91-day T-bill index with a risk or standard deviation range of 6 to 9% over a three-year rolling period.

The Fund seeks to achieve

An annualized return of 4% above the 91-day T-bill index over a 3-year period

6-9%

A 6-9% standard deviation range over the same period

There can be no guarantee that the Fund will achieve its return target, nor that it will remain within the above volatility range. All investment performance is inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Manager. In considering the return target and the volatility range, prospective investors should bear in mind that such targeted performance and volatility is not a guarantee, projection or prediction and is not indicative of future results of the Fund.

A Multi-Asset Solution for Today’s Market

Franklin Target Return Fund offers multi-asset diversification free from benchmark, asset class or geographical constraints. The portfolio is designed to take advantage of market opportunities and protect against market risks.

Expanded Tool Kit

In addition to direct investments, managers can deploy risk premia, foreign currency, as well as derivatives, swaps, and alternative investments

Idea-Driven Investments

Managers create custom investment bundles to express an economic view (such as economies and industries that will benefit from low oil prices)

Relative Value Positions

Managers take a relative view of one asset or market compared with a related asset or market (long short)

Focus on Expected Behaviour

By focusing on expected investment behaviour— rather than asset class labels — investors have a transparent view of risk exposures, the impact of market stresses and the degree of downside protection

Within each asset class, there are common drivers that can help predict how they will behave in different economic regimes. When these common drivers are examined, assets tend to fall into one of three basic behaviour categories

Growth


Assets that are directly related to real economic growth and react positively to increasing corporate earnings and cash flow

Examples:

  • Equities
  • Emerging market debt
  • Corporate credit
  • Commodities
  • Infrastructure/Real Estate

Defensive


Assets that react positively to declining real economic growth and are anticipated safe havens in market crises

Examples:

  • Dynamic hedging
  • Tail risk strategies
  • Government bonds
  • Gold
  • Index-linked bonds

Stable


Assets that have low or no correlation to economic conditions

Examples:

  • Pure risk premia
  • Relative value strategies
  • Market neutral strategies
  • Cash (domestic and foreign)

Expertise. Discipline. Diligence.

Franklin Target Return Fund’s investment team includes more than 80 professionals from around the globe who collaborate in a disciplined investment process to deliver on the fund’s mandate.

Mike Greenberg

Mike Greenberg,CFA, CAIA
Portfolio Manager
14 years of experience
Toronto, Canada

Matthias Hoppe

Matthias Hoppe
Portfolio Manager
23 years of experience
Frankfurt, Germany

6

Alternative Portfolio Construction Portfolio Managers

8

Multi-Asset Portfolio Construction Portfolio Managers

5

Alternative Solutions Analysts

5

Asset Class Research Analysts

5

Multi-Asset Solutions Analysts

4

Ops Due Diligence Analysts

28

Managers Research Analysts

7

Systematic Modeling Analysts

Franklin Templeton Solutions
Integrated Risk Management
Tilak Lal, John Murray & 7 Analysts

Key Materials

Brochure

Fund Fact Sheet

Important Legal Information

There can be no guarantee that the Fund will achieve its return target, nor that it will remain within the above volatility range. All investment performance is inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Manager. In considering the return target and the volatility range, prospective investors should bear in mind that such targeted performance and volatility is not a guarantee, projection or prediction and is not indicative of future results of the Fund.
1. 91-day T-bill index is represented by the FTSE TMX Canada 91 Day T-Bill Index.