Franklin Templeton Adds ‘Modest’ Private Credit Bets to 401(k)s

Franklin Templeton is adding “modest allocations” of private credit to a series of target-date 401(k) plans, as the broader $1.8 trillion market for the asset class faces questions about its suitability for individual investors.

The target-date funds will include a range of 2% to 8% allocations to private assets, including credit and real estate, that could change over many years as savers near retirement, the money manager, which oversees about $1.7 trillion, said in a statement on Thursday. Adding private assets in the funds is optional for investors.