To seek long-term investment growth,  through growth of capital, while positively contributing to sustainable goals. The Fund mainly invests in equities of companies of any market capitalisation that are located in, or derive significant business from, emerging markets. These companies have positive environmental and social performance, improved ESG footprint and potential for improvement through stakeholder engagement.

The Fund has a sustainable investment objective in accordance with Article 9 of the Sustainable Finance Disclosure Regulation (the “SFDR”).

In its implementation of the Fund’s environmental, social, governance (“ESG”) process, the Investment Managers pursue the sustainable investment objective by investing primarily in companies located or having their principal business activities in developing or emerging nations and which contribute to a positive social and/or environmental outcome. 

The Fund measures the attainment of the sustainable investment objective through its exposure to companies contributing to positive social and/or environmental outcome areas, using its proprietary ESG ratings system further described in the Website disclosure’s dedicated sections. The Fund also ensures that its sustainable investments do not cause significant harm to any environmental or social sustainable investment objective. As part of its investment decision making process, the Fund’s ESG process uses binding criteria for the selection of underlying assets 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 invests in equity securities of companies of emerging nations presenting sustainable competitive advantages in their respective sector both from an ESG and performance indicators perspectives. Such securities and investment instruments have historically been subject to price movements due to such factors as general stock market volatility, sudden changes in interest rates, changes in the financial outlook or perceived credit worthiness of securities issuers, or fluctuations in commodity prices or real estate values. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods.
• Other significant risks include:
  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.
  Chinese Market risk: In addition to typical risks linked to Emerging Markets, investments in China are subject to economic, political, tax and operational risks specific to the Chinese Market. Please also refer to the prospectus for China QFII risk, Bond Connect risk and Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect risk.
  Sustainability: The fund's integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the fund and may also cause the fund to sell investments that will continue to perform well. A sustainability risk could materialise due to an environmental, social or governance event or condition which may impact the fund's investments and negatively affect the returns of the fund.
  Emerging markets risk: the risk related to investing in countries that have less developed political, economic, legal and regulatory systems, and that may be impacted by political/economic instability, lack of liquidity or transparency, or safekeeping issues.
  Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.
  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.

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.