To provide exposure to the European green bond market, whilst maximising total returns. The Fund invests a minimum of 75% in corporate and government green bonds (bonds whose proceeds finance environmental projects) denominated in or hedged to European currencies. These investments may be of any duration, both investment and below investment grade and have fixed or floating rates.

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”) strategy, the Investment Manager pursues an environmental objective and invests in bonds that are labelled as being green or in bonds deemed to be supportive of a low-carbon future, or supportive of the Paris Climate Agreement.

The Fund measures the attainment of the sustainable investment objective by means of indicators and of its proprietary ESG ratings system and its research and engagement process 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 strategy uses binding criteria for the selection of underlying assets and applies specific ESG exclusions.

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Ireland
Switzerland

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. There is no guarantee that the Fund will meet its objective.

• The fund invests mainly in green bonds whilst aiming to maintain capital preservation. Such securities have historically proven to present some stability over time and have benefitted from limited exposure to interest rates and movements in the bond market. As a result the performance of the fund can fluctuate moderately over time.
• Other significant risks include: 
  Counterparty risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes. 
  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. 
  Secondary Market Trading risk: the risk that the shares purchased on the secondary market cannot usually be sold directly back to the Fund and that investors may therefore pay more than NAV per Share when buying shares or may receive less than the current NAV per Share when selling shares.

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