Strategy. Under normal market conditions, the Fund seeks to achieve its investment goal by allocating its assets across certain asset classes, sectors and strategies in an attempt to produce a diversified portfolio that will generate returns while minimizing the expected volatility of the Funds returns so that volatility does not exceed a target of 10% per year (volatility within the 10% target is referred to as Target Volatility). Managing the Fund to remain within its Target Volatility is designed to reduce the potential dramatic and rapid price swings that could be experienced by the Fund's "core portfolio." The Funds assets are primarily invested in its core portfolio, which is principally comprised of various U.S. equity and fixed income investments and strategies … Show more… Under normal market conditions, the Fund seeks to achieve its investment goal by allocating its assets across certain asset classes, sectors and strategies in an attempt to produce a diversified portfolio that will generate returns while minimizing the expected volatility of the Funds returns so that volatility does not exceed a target of 10% per year (volatility within the 10% target is referred to as Target Volatility). Managing the Fund to remain within its Target Volatility is designed to reduce the potential dramatic and rapid price swings that could be experienced by the Fund's "core portfolio." The Funds assets are primarily invested in its core portfolio, which is principally comprised of various U.S. equity and fixed income investments and strategies including investments in other mutual funds and exchange-traded funds (ETFs) that provide exposure to such investments and strategies, as described in more detail below. The Funds investment manager, Franklin Advisers, Inc. (Advisers), allocates the Funds assets among the strategies and investments in the core portfolio to diversify the assets of the Fund and to reduce the Funds risk of being significantly impacted by changes in a specific asset class. In addition, Advisers employs an additional strategy to manage the Funds risk exposure to market volatility. Advisers employs a volatility management strategy, which is designed to manage the expected volatility of the Funds returns so that volatility remains within the Funds Target Volatility. In employing this strategy, Advisers measures the Funds expected volatility and utilize certain derivative instruments (primarily futures contracts on indices) to adjust the Funds expected volatility to within the Target Volatility, as described in more detail below. There is no guarantee that the Fund will stay within its Target Volatility. There is no guarantee that the Funds volatility management strategy will be successful. The Funds Target Volatility is not a total return performance target the Fund does not expect, nor does it represent, that its total return performance will be within any specified range. It is possible that the Fund could stay within its Target Volatility while having negative performance returns. Also, efforts to manage the Fund's volatility can be expected to limit the Fund's gains in rising markets, may expose the Fund to costs to which it would otherwise not have been exposed, and if unsuccessful may result in substantial losses. The Fund is structured as a limited fund-of-funds that seeks to achieve its investment goal by investing its assets partially in other mutual funds, which include other Franklin Templeton mutual funds and ETFs and third-party ETFs (underlying funds). Each underlying fund is allocated to the equity, fixed income, multi-class or cash asset class based on its predominant asset class and strategies. These underlying funds, in turn, invest in a variety of U.S. and foreign equity, fixed-income and money market securities. The Fund also obtains exposure to certain strategies and investments in its core portfolio by directly investing in the securities and instruments in that strategy. The Fund may have a large percentage of its core portfolio assets invested in underlying funds at any given time; however, the Fund will not invest more than 25% of its assets in any one underlying fund at any given time. The Funds investments in underlying funds will change over time depending on various factors, including general market conditions. Core Portfolio Under normal market conditions, the Funds core portfolio is allocated among the broad asset classes according to the following approximate percentages to achieve the Funds asset allocation strategy: 50%-70% Equity Allocation 13%-33% Fixed Income Allocation 5%-15% Multi-Asset Class Allocation (combination of equity and fixed income) 0%-13% Cash (includes cash, cash equivalents and money market funds or securities) To the extent that Advisers allocates the Funds assets to underlying funds, such allocations are based on the underlying funds predominant asset class. These underlying funds invest in a variety of equity and fixed-income securities and may also have exposure to derivative instruments. At the discretion of Advisers, the above percentages may vary from time to time without shareholder approval, e.g., based on market conditions or the investment managers assessment of an asset class relative attractiveness as an investment opportunity or as part of the volatility management strategy. In addition, as a result of the Funds use of derivatives, and/or in an effort to manage expected volatility, the Fund may hold significant amounts of cash, cash equivalents and money market instruments. When selecting equity investments for the Funds core portfolio, Advisers considers a number of characteristics, including but not limited to, the market capitalization and investment style (growth vs. value). The Fund or the underlying funds may invest in securities of any capitalization range. When selecting fixed-income investments for the Funds core portfolio, Advisers considers a number of characteristics, including but not limited to, yield and price volatility. The Fund or the underlying funds may invest in mortgage- or asset-backed securities and high yield debt securities (also known as junk bonds). In evaluating the risk level of the Funds investments, the Advisers analyzes various characteristics including but not limited to: (a) relative and absolute performance, including correlations with other underlying funds as well as corresponding benchmarks, and (b) volatility. Volatility Management Strategy The Fund employs a volatility management strategy that seeks to stabilize the number and level of performance swings of the Fund over time. Managing the Fund's volatility to within its Target Volatility is intended to reduce the downside risk of the Fund during periods of significant and sustained market declines. There is, however, no guarantee that the Fund will remain within its Target Volatility. In this context, volatility is a statistical measurement of the frequency and level of up and down fluctuations of the Funds returns over time. Volatility may result in rapid and dramatic price swings. Volatility, in other words, represents the average annual deviation of the Funds return around the average Fund return. In employing this strategy, Advisers measures the expected annual volatility of the Funds core portfolio. If the Funds expected annual volatility exceeds the Target Volatility, the Fund writes (sells) one or more equity index futures contracts (usually S&P 500 Index futures contracts) with the goal of decreasing the core portfolios exposure to U.S. equity securities so that the expected annual volatility of the Fund is at or below the target of 10%. Generally, Advisers intends to use the strategy to reduce risk and would not employ the volatility management strategy if the expected volatility of the Funds core portfolio is at or below the Target Volatility. The volatility strategy may cause the Funds effective exposure to certain asset classes to be greater or less than its direct investments. With respect to the Fund's derivative investments, the Fund may enter into equity index futures contracts in connection with the Funds volatility management strategy. The Fund also engages in one or more total return swaps on one or more systematic or quantitative rules-based indices that use a mathematical methodology to automatically increase or decrease exposure to short- and/or medium-term futures on an index that measures market expectations of volatility. The Fund invests in such swaps to manage volatility. In addition, the underlying funds may enter into various transactions involving complex derivative instruments for hedging or investment purposes. Show less