To seek long-term investment growth, through growth of capital. The Fund mainly invests in equities of companies of any market capitalisation that are located in, or derive significant business from, Japan.

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 favors investments in equity and equity related instruments in companies with an appropriate ESG profile, as captured by its proprietary ESG methodology, and engages with issuers which are considered as underperformers in terms of specific ESG metrics. In addition, the Fund applies specific ESG exclusions and commits to have an ESG score at Fund level higher than the average ESG score of companies in the identified investment universe.

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’ proprietary ESG ratings system and its engagement process 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.

Finally, the Fund has a minimum allocation of 10% of its portfolio to sustainable investments, with a minimum of 1% allocated towards investments with an environmentally sustainable objective and at least 1% allocated towards investments with a socially sustainable objective. The Fund ensures that its sustainable investments do not cause significant harm to any environmental or social sustainable investment objective. 

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• Seeking capital appreciation by investing in a growth-style investment concentrated in Japanese equity securities.
• Planning to hold their investment for the medium to long term.

• GARP Investment Style. The management team follows a Growth At Reasonable Price investment style. The investment selection process focuses on finding stocks of companies based on proprietary research and analysis, including company visits.
• Top down approach and bottom up stock selection combined. In order to determine sector allocation, the portfolio team takes a global and longer-term perspective. Secondly, a bottom-up process is used to pick up timely and efficiently each security. The combination of both skills is at the heart of our value-added strategy.
• An experienced local management team. The team is led by an experienced portfolio manager and a seasoned local investment team.

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 mainly in Japanese equity securities. Such securities have historically been subject to significant price movements that may occur suddenly due to market or company-specific factors. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods.
• Other significant risks include: 
  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.
  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.