To seek investment growth, mainly through growth of capital, while maintaining a lower volatility relative to equity markets. The Fund gains exposure to various alternative strategies by investing, directly or indirectly through derivatives and other Funds, in a range of asset classes such as equities, bonds, commodities and currencies.

The Fund promotes environmental and social characteristics in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (the “SFDR”). 
 
In its implementation of the Fund’s environmental, social and governance (“ESG”) strategy, the Investment Manager performs an ESG assessment on each appointed Investment Co-Manager and, based on this assessment, rates them. By doing so, the Fund encourages at portfolio level minimum ESG standards. 
 
The Fund’s environmental or social characteristics are assessed both quantitatively and qualitatively, by means of sustainability indicators as well as of the Investment Manager’s proprietary ESG methodology and its engagement process further described in the Website disclosure’s dedicated sections. As part of its investment decision-making process, the Fund also uses binding criteria to achieve its ESG investment strategy and applies specific ESG exclusions. 

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The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.

• The Fund seeks to achieve its targeted investment objective by allocating its assets across multiple “alternative” strategies and by investing in a wide range of assets. Such assets and investment instruments have historically been subject to price movements due to such factors as general stock market volatility, sudden changes in interest rates, or fluctuations in commodity prices. The Fund will seek to limit volatility using hedged strategies. As a result, the performance of the Fund can fluctuate moderately over time.
• Other significant risks include: 
  Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities. 
  Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations. 
  Derivative Instruments risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks. 
  Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets. 
  Multi-Manager risk: the risk that independent decisions of Investment Co-Managers may conflict with one another thus resulting in loss of efficiency.

For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.