Strategy. Franklin Advisers, Inc. (the Sub-Adviser), a wholly owned subsidiary of Franklin Resources, Inc. (Franklin), serves as the sub-adviser to the Fund. The Sub-Adviser is responsible for the day-to-day management of the Funds assets. The Fund operates under a fund of funds structure. The Fund invests substantially all of its assets in mutual funds and exchange-traded funds (ETFs) (collectively, Underlying Funds) which, in turn, invest in equity (stocks) and/or fixed income (bonds) securities. The following table shows the target allocation and allowable ranges (based on percentage of net assets) that the Fund expects to invest in for each asset class. Allocations for each asset class may vary within the allowable ranges from the target percentages set for the Fund. Asset Class … Show more… Franklin Advisers, Inc. (the Sub-Adviser), a wholly owned subsidiary of Franklin Resources, Inc. (Franklin), serves as the sub-adviser to the Fund. The Sub-Adviser is responsible for the day-to-day management of the Funds assets. The Fund operates under a fund of funds structure. The Fund invests substantially all of its assets in mutual funds and exchange-traded funds (ETFs) (collectively, Underlying Funds) which, in turn, invest in equity (stocks) and/or fixed income (bonds) securities. The following table shows the target allocation and allowable ranges (based on percentage of net assets) that the Fund expects to invest in for each asset class. Allocations for each asset class may vary within the allowable ranges from the target percentages set for the Fund. Asset Class Target Allocation Ranges U.S. Equity 40% 10-65% International Equity (Including Emerging Markets) 15% 0-25% Fixed Income 45% 35-65% The Underlying Funds, which are managed by Franklin and other unaffiliated investment advisers, invest in a variety of U.S. and foreign equity, fixed income and derivative investments. The Fund may have exposure to a wide variety of investments through the Underlying Funds including, but not limited to: (i) emerging or developing markets securities; (ii) equity securities including common stock, preferred stock and convertible securities, in any market capitalization range; (iii) fixed income securities including bonds, notes, debentures, bankers acceptances, commercial paper and mortgage-backed securities (including to-be-announced transactions) or asset-backed securities, of any maturity, duration or credit rating (including bonds that are below investment grade, otherwise known as junk bonds); (iv) certain derivative instruments, including futures contracts, forward contracts, options and swaps; and (v) cash or cash-related instruments. The Fund also may utilize currency-related instruments to manage currency risk. An active allocation approach is used when selecting investments for the Fund. The Sub-Adviser has the flexibility to determine the level of investment in each asset class within the allowable range. Within each asset class, the Sub-Adviser has flexibility to select the approximate investment styles for investment. Descriptions of the primary investment styles utilized for the Fund within each asset class are listed below: U.S. Equity: U.S. equity are securities of companies organized, or having majority of their assets, or earning a majority of their operating income, inside of the United States. Growth Equity : Growth equity are stocks of companies that appear to offer superior opportunities for growth of capital. Growth companies typically pay little or no dividends. Value Equity : Value equity are stocks of companies believed to be undervalued with long-term capital appreciation potential. International Equity : International (foreign) equity are securities of companies organized, or having a majority of their assets, or earning a majority of their operating income, outside of the United States. Emerging Markets : An emerging market country is defined as an emerging or developing economy by the International Monetary Fund as defined as such by MSCI. The countries included in this definition will change over time. The Sub-Adviser may invest up to 5% of the assets allocated to equity in emerging markets. Fixed Income (bonds and cash equivalents): Fixed income securities are principally among the U.S. investment grade, U.S. high yield, international developed markets, and emerging markets sectors. The Sub-Adviser may invest up to 5% of the assets allocated to fixed income in high yield bonds (otherwise known as junk bonds). Exchange-Traded Funds: ETFs are similar to conventional mutual funds but are priced and traded like individual stocks, typically on a stock exchange. ETFs generally combine the advantages of the trading flexibility and continual pricing of individual stocks and bonds. The Sub-Adviser selects Underlying Funds based on their predominant asset class (e.g., U.S. equity, international equity including emerging markets equity or fixed income). When selecting equity funds, the Sub-Adviser considers the Underlying Funds foreign and domestic exposure, market capitalization ranges, and investment style (growth vs. value). When selecting fixed income funds, the Sub-Adviser focuses primarily on maximizing income, appropriate to the Funds risk profile and considers the duration and maturity of the Underlying Funds portfolios. The risk profile of Underlying Funds also is considered when determining allocations. In evaluating the risk level of the Underlying Funds, the Sub-Adviser analyzes such factors as: (a) relative and absolute performance, including correlations with other Underlying Funds as well as corresponding benchmarks, and (b) volatility (the variability of returns from one period to the next). Show less