Important Information
1. The index will rebalance when sufficient momentum has been measured across the assets that exceeds a pre-determined threshold.
It is not possible to invest directly in an index. There is no assurance that investment products based on the Index will accurately track index performance or provide positive investment returns. Inclusion of a security within an index is not a recommendation by Franklin Templeton to buy, sell, or hold such security.
Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.
Index-linked annuities are insurance contracts issued by an insurance company. Index-linked annuities are not invested in the Index itself, but rather interest is credited based on the performance of the Index and the rules prescribed in the insurer's Index crediting strategy. Index-linked annuities are not issued by Franklin.
This material is strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any product or security or to use any index. There is no guarantee that any strategies utilizing the index will be effective or successful. Multi-asset indices and diversification do not promise any level of performance, success, or guarantee against loss of principal. Any data for the period prior to index inception consists of pre-inception data calculated by retroactively applying the index methodology. Simulated returns and pre-inception data are hypothetical and included for illustrative purposes only. Performance based on hypothetical returns prior to index inception and actual returns thereafter.
This information should not be relied upon as investment advice, research, or a recommendation by Franklin Templeton regarding (i) any products tied to these indices, (ii) the use or suitability of these indices or (iii) any security in particular. Dividends can fluctuate and are not guaranteed. Investments in foreign securities may involve political, economic, currency, and other risks not encountered in U.S. investments. Each index may not be successful, may not outperform any alternative strategy and may not maintain volatility below its stated volatility threshold.
WHAT ARE THE RISKS?
Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds adjust to a rise in interest rates, the performance of the Index may decline. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. During times of extreme market volatility, the Index will not be able to eliminate market losses or capture all market gains.