Franklin Templeton Launches Multi-Asset Real Return Fund

January 13, 2012 (PLANSPONSOR.com) - Franklin Templeton Investments launched Franklin Templeton Multi-Asset Real Return Fund for U.S. investors.

The fund seeks total return that exceeds U.S. inflation over a full inflation cycle (real return), typically five years, by using a flexible allocation strategy that is diversified across a broad spectrum of asset classes, including global equities, global fixed income (including Treasury Inflation-Protected Securities or “TIPS”) and commodities. To help protect against inflation risk, the fund pairs a diversified multi-asset class portfolio with an analysis of the current inflationary environments.   

The portfolio will be adjusted to overweight asset classes that have historically performed well under inflation conditions similar to the existing environment. To help achieve its strategy, the fund invests primarily in other mutual funds (underlying funds), predominantly other Franklin, Templeton and Mutual Series funds; it also invests a portion of its assets directly in TIPS.  

The fund also includes allocations to Franklin Pelagos Commodities Strategy Fund and Franklin Pelagos Managed Futures Strategy Fund, providing additional diversification through two asset classes that traditionally have exhibited lower correlations to equities and fixed income. 

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