To provide exposure to Euro- and US Dollar-denominated sovereign debt issued by emerging market countries. The Fund invests in government bonds issued in emerging markets and denominated in EUR or USD. These may be fixed or floating rate and some of them may be below investment grade. These investments are included in the benchmark.

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 tracks the performance of the index ICE Emerging Markets ESG Values External Sovereign Index (EMCV) which excludes the bonds issued by countries which score poorly on the criteria which have been identified by the Index Provider as being ESG values and adjusts security weightings relative to the Parent Index so as to reduce the overall carbon footprint of the Index relative to the Parent Index.

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 tracking of the Index, its engagement procedures and applying exclusions as further described in the website disclosure’s dedicated sections. As part of its investment decision making process, the Fund’s ESG strategy also uses binding criteria for the selection of underlying assets.

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Austria 
Denmark
Finland
France
Germany
Ireland
Italy
Luxembourg
Netherlands
Spain
Sweden
Switzerland
United Kingdom 

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 intends to track the performance of the Index which is comprised of debt securities in emerging market countries selected from the Parent Index. Such assets have historically been subject to price movements due to such factors as general market volatility, changes in the financial outlook or fluctuations in currency markets. As a result, the performance of the Fund can fluctuate 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.
  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.
  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. 
  Index related risk: the risk that quantitative techniques used in creating the Index the Fund seeks to track do not generate the intended result, or that the portfolio of the Fund deviates from its Index composition or performance.
  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 the NAV per share when buying shares or may receive less than the current NAV per Share when selling shares. 
  Sovereign risk: the risk that the value of securities issued by governments or by agencies may be affected by the creditworthiness of the relevant government, including any default or potential default by the relevant government.

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