A suite of a dozen Franklin Templeton outcome model portfolios are now available through the Envestnet platform. Envestnet is a provider of intelligent systems for wealth management and financial wellness.
“Franklin Templeton’s models are designed for pursuing defined outcomes amid changing markets and are routinely adjusted to capitalise on short-term opportunities or to mitigate short-term risk,” says Pierre Caramazza, head of Financial Institutions Group at Franklin Templeton. “We’re excited to be working with Envestnet and providing advisors the tools that will help them to streamline their process and to provide customised, outcome-oriented client portfolios in a scalable way.”
The 12 outcome model portfolios include five strategies that prioritise generating income, either as primary or as part of a total return objective (Income, Tax-Advantaged Income, Growth & Income, Growth & Enhanced Income, Tax-Advantaged Growth & Income), four strategies that seek a level of capital appreciation (Conservative Growth, Moderate Growth, Growth, Equity Growth), two strategies aimed at protecting assets from meaningful loss (Stability, Tax-Advantaged Stability) as well as a strategy geared toward protecting assets in a rising interest rate environment (Rising Rate Defense). Each portfolio is aligned with specific intended outcomes and will hold roughly five to 12 underlying mutual funds and ETFs. The three tax-advantaged portfolios are included as options for clients with high tax sensitivities.
Ed Perks, CIO of Franklin Templeton Multi-Asset Solutions and portfolio manager of Franklin Income Fund since 2002, leads the 60-plus member team that manages the models now available through the Envestnet platform.
“Our models are routinely stress-tested against different ‘what if’ market scenarios, and results are monitored and analysed by an independent and dedicated team of risk specialists who provide timely performance insights and investment risk analytics,” says Perks. “Our portfolio construction experts look through and across asset classes to assemble each model to ensure targeted diversification among asset classes, regions and sectors—using a wide range of active, passive and smart beta investments.”