Franklin Templeton Adds Private Markets to Target-Date Series
Event summary
- Franklin Templeton expanded its Retirement Advantage target-date series with Retirement Advantage Plus Funds, incorporating private markets.
- The expansion coincides with the series winning Lipper’s most-awarded target-date franchise for the second consecutive year.
- Retirement Advantage Plus Funds allocate 2% to 8% to private real estate and private credit through Clarion Partners and Benefit Street Partners.
- The new funds maintain daily liquidity and regulatory oversight within a registered mutual fund structure.
The big picture
Franklin Templeton’s expansion into private markets within its target-date series reflects a broader industry trend of seeking higher returns and diversification beyond traditional public assets. The move leverages the firm’s scale and experience across both public and private markets, aiming to meet varying preferences and objectives in the retirement landscape. With $1.7 trillion in assets under management, the firm is positioning itself to capture a larger share of the retirement savings market.
What we're watching
- Product Differentiation
- How the inclusion of private markets will position Franklin Templeton against competitors in the target-date fund space.
- Regulatory Compliance
- Whether the daily liquidity structure of Retirement Advantage Plus Funds can maintain regulatory compliance while offering private market exposure.
- Market Demand
- The pace at which plan sponsors and participants adopt the new private market offerings within their retirement portfolios.