Franklin Sterling Liquidity Fund

To seek to maintain the principal of the Fund and to provide a return in line with money market rates. This fund qualifies as a low volatility net asset value (LVNAV) money market fund. The Fund invests in high quality money market instruments and short-term bonds denominated in, or fully hedged GBP. 

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 integrates environmental, social and governance considerations into its research, investment process and risk management. The Fund seeks to avoid investment in issuers that fail PAI 10 and 14. In addition, the Fund refrains from investing in issuers and projects that could cause significant harm to the sustainable investment objectives.

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 direct qualitative research, a proprietary Principal Adverse Impact (“PAI”) indicator tool, and engagement 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 and applies specific ESG exclusions.

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One of the world’s leading global fixed income managers. Founded in 1971, the firm is known for team management and proprietary research, supported by robust risk management and a long-term fundamental value approach. Each group of sector specialists utilizes their expertise in bottom-up analysis of each portfolio sector.

There is no guarantee that the fund will remain in the indicator category shown above and the categorisation of the fund may shift over time. Historical data, which is used in calculating the indicator, may not be reliable indicator of the future risk profile of this fund. The lowest category does not mean a risk-free investment.An investment in a money market fund does not offer any capital guarantee or protection, and as this is an investment in a fund it is different to a bank deposit, with particular reference that the amount invested in a money market fund can fluctuate and you may not get back the amount invested. The fund does not rely on external support for guaranteeing the liquidity of the fund or stabilising the Net Asset Value per unit or share.

The indicator is based on the volatility of the returns (past performance) of the reported share class (calculated on a 5 year rolling return basis). Where a share class is inactive / has less than 5 years of returns, the returns of a representative benchmark are used.

The fund is in its risk/reward category because investments in high-quality money market instruments and short-term bonds have historically been subject to small fluctuations in value.

• The fund is subject to the following risks which are materially relevant but may not be adequately captured by the indicator:
  Credit Rating: The credit rating of a money market instrument may be downgraded if the issuer is regarded as less likely to meet interest payments, meaning its value would fall and the fund may have to sell it. This could result in a loss to the fund.
  Money Market Instruments: There is a risk that issuers of money market instruments held by the fund may not be able to repay the investment or pay the interest due on it, leading to losses for the fund.
  Money Market interest rates: The fund's income is based on shortterm interest rates which can fluctuate significantly over short periods, which may affect the value of your shares.
  Reverse Repurchase Agreements: The risk of investing in reverse repurchase agreements is that the seller of the securities fails to fulfil its commitment to repurchase the securities from the Fund in accordance with the terms of the agreement which may cause the Fund to incur a loss.

For further explanation on the risks associated with an investment in the fund, please refer to the section entitled "Investment Risks" in the fund's prospectus and relevant supplement.