To seek to maximise income and growth of capital (total return), while maintaining some degree of capital preservation and liquidity. The Fund mainly invests in investment grade corporate and government bonds with a short maturity and denominated in EUR. The Fund invests mostly in securities issued in Europe.

The Fund promotes environmental and social characteristics in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (the “SFDR”).

The Fund employs a proprietary environmental, social and governance (“ESG”) methodology which combines exclusions, engagement and sustainable investments to attain the environmental and social characteristics of the Fund as well as the objectives of the sustainable investments that the Fund partially intends to make.

The Fund’s environmental or social characteristics are assessed both quantitatively and qualitatively, by means of sustainability indicators as well as of the Investment Managers’ proprietary ESG methodology and its research and engagement process further described in the Website disclosure’s dedicated sections. As part of its investment decision making process, the Fund’s ESG methodology also uses binding criteria for the selection of underlying assets and applies specific ESG exclusions.

Finally, the Fund has a minimum allocation of 50% 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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• Maintain liquidity, maximising total returns and income.
• Invest for the medium to long term.

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 relatively short-term debt securities denominated  mainly in Euros but may invest up to 10% in non-Euro denominated issuers. Such securities have historically been subject to price movements, generally due to interest rates or movements in the bond market. As a result, the performance of the Fund can fluctuate to a small degree over time.
• The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.
• 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.

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.