H2

The Fund's primary aim is to generate income. The Fund also seeks to grow in value by more than the OECD G7 Inflation Index + 5.5%, from a combination of income and investment growth, over five year rolling periods, before all fees and costs are deducted. There is no guarantee that the Fund will achieve its objective over this or any other time period. Capital invested is at risk and you may get back less than you paid in. The Fund invests at least 80% of the Fund's assets in a diverse range of shares of companies listed on the stock exchanges of developed countries. Such companies will operate across a variety of infrastructure sub-sectors, which may include gas, electricity, water, toll-roads, airports, rail and communication, anywhere in the world. Up to 20% of the Fund's assets may be invested in shares of companies, including depositary receipts (a type of listed security which enables investors to hold shares in foreign companies), issued by companies in emerging markets (countries whose economy and financial markets are still developing). The Fund may also invest in recently issued shares of companies which are not yet listed but which are expected to be listed within 12 months of purchase. The Fund can use derivatives for efficient portfolio management (managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth). However, the Fund can introduce more speculative use of derivatives in the future on 60 days' notice to investors. Derivatives are financial contracts whose value is linked to the price of another asset (e. g. indices, interest rates, share prices or currencies). Up to 10% of the Fund may be invested in derivatives and recently issued securities. The Fund usually invests in shares of around 30 – 60 companies, although the Investment Manager may invest in fewer or more companies where it considers this to be in the interests of the Fund. While the Fund will normally be invested in accordance with the limits set out above, the Investment Manager has the freedom to invest outside of these limits, sometimes significantly, where the Investment Manager considers that, due to prevailing market conditions, it is in the interests of the Fund and its shareholders to do so. In addition, the Fund may also invest a proportion of its portfolio in other transferable securities, cash and cash equivalents, money market instruments and other collective investment schemes (which may include collective investment schemes operated by the ACD or any of its associates). The Investment Manager selects securities based on their potential return and risk characteristics and role in achieving the Fund's investment objective. The portfolio is not constrained by any market index. The Investment Manager seeks to select infrastructure and utility companies which operate under a regulatory regime, or concession arrangement which provides the Investment Manager with a predictable cash flow and minimum yield. In considering yield, the Investment Manager looks at the dividend yield, the dividend per share expectations over a five year period, and the relationship of a company's dividends and cash flows, over an estimated holding period. The Investment Manager has the freedom to choose securities that their research indicates have the strongest potential to meet the Fund's objective. The Investment Manager integrates financial and nonfinancial considerations in its assessment of a prospective investment. In selecting the Fund's investments, the Investment Manager assesses prospective investments against various environmental, social and governance (“ESG”) factors, depending on the sector of the investee company, for example: Environmental factors, such as a company's environmental practices, greenhouse gas emissions and energy efficiency initiatives. Social factors such as a company's approach to community relations, occupational health and safety and reliability and pricing of services. Governance factors such as the governance structure of the company, management incentives and the Fund's alignment with management, board and other shareholders of the company. These ESG factors are used to inform the Investment Manager's wider assessment of the value and financial attractiveness of each potential investment and exposures are adjusted accordingly. In addition, the Investment Manager assesses an investment's ESG credentials both at the point of proposed investment and in terms of projected credentials in 5 years' time, allowing the Investment Manager to identify investments which are expected to improve ESG credentials over time. The Investment Manager also uses the results of these assessments to inform its strategy for engagement with companies included in the portfolio. The Fund will not invest in: Companies that derive a significant amount of their revenues (10% or more) from the extraction or production of fossil fuels. Companies involved in the production, sale or distribution of dedicated and key components of anti-personnel mines and cluster munitions. Companies in the following non-infrastructure sectors: mining, explosives, alcohol and gambling. Companies that generate more than 5% of their revenues from tobacco. You may request the sale of your shares in the Fund on any UK business day. For the income share class shown in this document, dividend income is distributed to investors. For further information on the Objectives and Investment Policy of the Fund, please refer to the “Investment Objectives and Policies of the Funds” section of the current prospectus of Franklin Templeton Funds. Terms to Understand Hedging: this share class is hedged and aims to minimise, as far as possible, the currency risk. In particular, it aims to reduce the impact of exchange rate fluctuations between the Fund's base currency and the currency/ies of securities held by the Fund. Please refer to the Fund's prospectus and the following document which set out further information relating to hedging strategies: https://www.franklintempleton.co.uk/resources-and-literature/education/a-guide-to-hedged-share-classes Shares of companies (equities): securities that represent an ownership stake in a company. Transferable securities: investments such as shares or debt that can be bought and sold between investors.