Multi-Asset
TAKING THE NEXT STEP You re working hard for your money. The next step is getting your money to work for you. Each of the three Franklin NextStep Funds are professionally managed, diversified mutual funds that offer the following benefits: Simplicity, Diversification and Expertise. 1 Simplicity An all-in-one portfolio matched to three levels of risk The biggest challenge for most investors is finding the right mix of investments to help them reach their goals at a risk level that they can live with over time. Franklin NextStep Funds offer a simple solution with all-in-one portfolios that are continually rebalanced to match the appropriate risk level, based on each fund s investment objective. Your advisor can help to select the fund that is right for you. They ll help you define your goals, how much time you have to invest and your tolerance for risk. Three Funds Aligned to Relative Risk/Return Levels HIGHER Stock Funds Bond Funds Alternative Investment Funds Franklin NextStep Growth Fund Franklin NextStep Moderate Fund Potential Return Franklin NextStep Conservative Fund May be best for investors seeking long-term growth and a balanced approach to total return and risk. May be best for investors who want strong long-term return potenial and are more comfortable with a higher level of volaility. May be best for investors seeking to reduce market volatility or who have a shorter time period to invest. LOWER Relative Risk HIGHER Diversification does not guarantee a profit or protect against a loss. Franklin NextStep Funds is a collective term for these three funds used: Franklin NextStep Conservative Fund, Franklin NextStep Moderate Fund and Franklin NextStep Growth Fund. These funds are sub-funds of Franklin Templeton Investment Funds (FTIF), a Luxembourg-domiciled SICAV. Fund allocations are provided for illustrative purposes only and the categorization of the funds as conservative, moderate and growth is relative. There is no guarantee that the Franklin NextStep Funds will be allocated in a similar manner. Franklin NextStep Funds nextstepfunds.com
2 Diversification A broad mix of funds invested across fund managers, asset classes and countries A traditional mutual fund is a portfolio of investments, often within a single asset class, like stocks or bonds. Franklin NextStep Funds take diversification to a new level. That s because each Franklin NextStep Fund is a multi-asset fund that invests in a portfolio of underlying funds. Each of these underlying funds may in turn invest in stocks, bonds and/or alternative investments. The result is three portfolios that are invested broadly across fund managers, asset classes and countries. One Fund, Multiple Types of Diversification Fund Managers Asset Classes Countries Invests in a portfolio of mutual funds and exchange traded funds (ETFs) from Franklin Templeton Investments (typically no more than 50%) and other fund management companies. Combines underlying funds invested in stocks, bonds and alternative investments, when appropriate, across a broad range of companies and industries. Taps into international markets to provide global growth opportunities which may boost return potential while also helping to reduce the risk of investing in only one country. Why Diversification Matters Multi-asset funds may help investors avoid large performance swings. That s because as one asset category experiences average or even poor returns, often another category will perform well. By diversifying with a variety of investments that don t typically move in the same direction, your portfolio s overall investment returns will generally have a smoother ride. Diversification does not guarantee a profit or protect against a loss. Alternative investments include less traditional asset classes such as, real estate, commodities and hedge strategies. Performance and market movement of alternative investments do not typically follow stocks and bonds. Alternative investments may be included in Franklin NextStep Moderate Fund and Franklin NextStep Growth Fund.
3 Expertise Professionally managed to navigate the ups and downs of the market Franklin NextStep Funds portfolio management team takes a proactive, risk-aware approach. This means that along with carefully analyzing current market conditions, they constantly research and adjust the underlying funds as they seek to take advantage of opportunities and strive to avoid unnecessary risks. Allocation Ranges Adapting to Opportunities and Risks Conservative Moderate Growth Stock Funds 10 30% 45 65% 60 80% Bond Funds 70 90% 35 55% 20 40% Alternative Investment Funds 0 5% 0 10% KEY BENEFITS FOR YOU World-class investment management An all-in-one portfolio Broadly diversified with access to top tier managers Matched to investors based on risk and goals Continuously managed to align with fund objectives Talk with your financial advisor to learn more about Franklin NextStep Funds. Investors should consult their financial advisor for help selecting the appropriate fund or fund combination, based on, among other factors, an evaluation of their investment objectives, time horizons and risk tolerance. nextstepfunds.com Franklin NextStep Funds
FRANKLIN TEMPLETON INVESTMENTS We re dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, we re able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the world s largest asset managers. 70+ YEARS OF EXPERIENCE $737.5B+ (USD) ASSETS UNDER MANAGEMENT 600+ INVESTMENT PROFESSIONALS 1 34 COUNTRIES WITH OFFICES As of 03/31/18. 1. Investment professionals include portfolio managers, portfolio managers/analysts, research analysts and traders of Franklin, Templeton, Franklin Mutual Series, and subsidiary investment management groups.
Franklin Templeton Investment Funds Offshore 100 Fountain Parkway St. Petersburg, FL 33716 nextstepfunds.com A FEW MORE WORDS ABOUT ASSET ALLOCATION While an asset allocation plan can be a valuable tool to help reduce overall volatility, all investments involve risks, including possible loss of principal. Because these funds invest in underlying funds, which may engage in a variety of investment strategies involving certain risks, the Franklin NextStep Funds are subject to those same risks. In addition, shareholders of the NextStep Funds will indirectly bear the fees and expenses of the underlying funds. The risks described herein are some of the principal risks of the Franklin NextStep Funds and the underlying funds. Typically, the more aggressive the investment, or the greater the potential return, the more risk involved. Generally, investors should be comfortable with some fluctuation in the value of their investments, especially over the short term. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in a fund adjust to a rise in interest rates, that 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. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the funds to participate in losses (as well as gains) that significantly exceed the funds initial investment. These risks are more fully described in FTIF s prospectus and where available, in the Key Investor Information Document and should be read closely before investing. Investors should consult their financial advisor for help selecting the appropriate fund of funds, or fund combination, based on an evaluation of their investment objectives and risk tolerance. This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal. Data from third party sources may have been used in the preparation of this material and Franklin Templeton Investments ( FTI ) has not independently verified, validated or audited such data. FTI accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user. Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FTI affiliates and/or their distributors as local laws and regulation permits. Please consult your own professional adviser for further information on availability of products and services in your jurisdiction. In the U.S., this publication is made available only to financial intermediaries by Templeton/Franklin Investment Services, 100 Fountain Parkway, St. Petersburg, Florida 33716. Tel: (800) 239-3894 (USA Toll-Free), (877) 389-0076 (Canada Toll-Free), and Fax: (727) 299-8736. Investments are not FDIC insured; may lose value; and are not bank guaranteed. Distribution outside the U.S. may be made by Templeton Global Advisors Limited or other sub-distributors, intermediaries, dealers or professional investors that have been engaged by Templeton Global Advisors Limited to distribute shares of Franklin Templeton funds in certain jurisdictions. This is not an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where it would be illegal to do so. Please visit www.franklinresources.com to be directed to your local Franklin Templeton website. 2018 Franklin Templeton Investments. All rights reserved. NSOA B 08/18