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Franklin Moderate Allocation R Overview

Franklin Moderate Allocation R (FTMRX) is an actively managed Allocation Moderate Allocation fund. Franklin Templeton Investments launched the fund in 2002.

The investment seeks the highest level of long-term total return. The fund is a "fund of funds" meaning that it seeks to achieve its investment goal by investing its assets primarily in other funds, predominantly other Franklin Templeton and Legg Mason mutual funds and ETFs. The investment manager uses the following as a general guide in allocating the fund's assets among the broad asset classes: 60% equity funds; and 40% fixed-income funds. These percentages may be changed from time to time by the fund's investment manager without the approval of shareholders, and may vary up to 10% from these percentages of the fund's assets.

About Franklin Moderate Allocation R (FTMRX)

There are 3 members of the management team with an average tenure of 5.33 years: Thomas Nelson (2012), Brett Goldstein (2026), Laura Green (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and MSCI ACWI NR USD index with a weighting of 100%. Franklin Moderate Allocation R has 24 securities in its portfolio. The top 10 holdings constitute 79.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Franklin Moderate Allocation R is part of the Allocation global asset class and is within the Allocation fund group. Franklin Moderate Allocation R has 17.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 49.7%. There is 12.5% allocated to foreign stock, and 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 30.2% (24.7% domestic bond, 5.4% foreign bond and 0.0% convertible bond). Franklin Moderate Allocation R has 5.2% of the portfolio in cash.

Assets Under Management

The fund has $49 million in total assets, which is below the $2 billion average for the Moderate Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FTMRX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Moderate Allocation R expense ratio is high compared to funds in the Moderate Allocation category. Franklin Moderate Allocation R has an expense ratio of 1.07%, which is 8% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Moderate Allocation R has a portfolio turnover rate of 25%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.

Recently, in the month of June 2026, Franklin Moderate Allocation R returned 0.0%, which earned it a grade of C, as the Moderate Allocation category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Franklin Moderate Allocation R has a trailing yield of 1.80%, which is below the 1.97% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Franklin Moderate Allocation R Grades

Year to date, the fund has returned 7.1%, 0.4 percentage points better than the category, which translates into a grade of C. The fund has returned 15.2% over the past year (grade of B), 13.1% over the past three years (grade of C) and 6.4% per year over the past five years (grade of D) and 8.0% per year over the past 10 years (grade of D).

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