Franklin Templeton Adds Private Markets Option to Target-Date Series
Franklin Templeton today announced a new option to its Retirement Advantage target‑date series that provides “modest” access to private markets within a 401(k) plan, according to a press release today.
The expansion via Retirement Advantage Plus Funds is designed to provide that access to private markets while maintaining the same investment philosophy that has defined the broader franchise.
“Plan sponsors and participants are not all looking for the same thing, and innovation means meeting them where they are,” said Steve McKay, Head of U.S. Retirement, Insurance & College Savings at Franklin Templeton. “Retirement Advantage Plus adds a new option to our award-winning Retirement Advantage target-date series by providing access to private markets within a 401(k) plan.”
Retirement Advantage has been built on a participant-focused investment philosophy that emphasizes active asset allocation, disciplined risk management, and a glide path designed to deliver the right risk at the right time. As part of the series’ continued evolution, Franklin Templeton is expanding the franchise with different versions to reflect varying preferences and objectives across the retirement landscape.
Retirement Advantage Plus applies the same glide path, governance framework, and participant-focused design as the broader Retirement Advantage series, while introducing modest allocations to private real estate and private credit, today’s release said. The strategy is offered within a registered mutual fund structure designed to maintain daily liquidity and regulatory oversight.
“This is an extension of our traditional target-date approach,” said Brett Goldstein, Head of Asset Allocation Portfolio Management at Franklin Templeton Investment Solutions. “We are applying the same philosophy and risk management discipline that have defined the Retirement Advantage series, while thoughtfully expanding the opportunity set for investors who want additional diversification.”
Allocations to private markets within Retirement Advantage Plus generally range from approximately 2% to 8% over the glide path. The private real estate allocation is implemented through the Clarion Partners Real Estate Income Fund Inc., and the private credit allocation is implemented through the Franklin BSP Lending Fund.
Retirement Advantage Plus is one of several offerings within Franklin Templeton’s Retirement Advantage franchise, which also includes income-focused solutions for investors who prioritize income in retirement. The expansion reflects Franklin Templeton’s scale and experience across both public and private markets and its continued focus on delivering differentiated retirement solutions grounded in a proven investment philosophy.
Franklin Templeton’s announcement coincides with today’s recognition of the Retirement Advantage series as Lipper’s most-awarded target-date franchise for the second consecutive year, which the firm said reinforces the strength, consistency, and scale of the investment team and approach behind the platform.
SEE ALSO:
• Empower Offering Private Investments in DC Plans
• Plan Sponsors See Private Markets Investments Improving Retirement Outcomes
• Invesco Broadens DC Access to Private Real Estate with New CIT
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.