To provide exposure to large and mid-capitalisation stocks in China which are aligned to the transition to a low carbon economy. The Fund invests in equities of Chinese companies of medium and large market capitalisation that transition to a lower carbon economy or are less exposed to climate transition risks. These investments are included in the benchmark.

The Fund has a sustainable investment objective in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (the “SFDR”). 

In its implementation of the Fund’s Environmental, Social, Governance (“ESG”) strategy, the Investment Manager tracks the MSCI China Climate Paris Aligned PAB Index-NR which is an EU Paris-Aligned Benchmark and is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy, while aligning with the Paris Climate Agreement. 

The Fund’s environmental or social characteristics are assessed both quantitatively and qualitatively, by means of sustainability indicators as well as applying exclusions through the Fund’s replication of the Index as further described in the Website disclosure’s dedicated sections. As part of its investment decision making process, the Fund’s ESG strategy also relies on the binding criteria used by the Index for the selection of underlying assets. 

Finally, the Fund has a minimum allocation of 10% of its portfolio to sustainable investments. The Fund ensures that its sustainable investments do not cause significant harm to any environmental or social sustainable investment objective.

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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 large and mid-capitalisation Chinese equity securities selected from the Parent Index. Such assets have historically been subject to price movements due to such factors as general stock market volatility, changes in the financial outlook or fluctuations in currency markets. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods.
• Other significant risks include:
  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.
  Concentration risk: the risk that arises when a fund invests in relatively few holdings, few sectors or a restricted geographic area. Performance may be more volatile than a fund with a greater number of securities.
  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.
  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.

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.