We Digitize

Sub-fund of KBC Equity Fund, an open-ended investment company under Belgian law (bevek), managed by KBC Asset Management NV.

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The digital evolution is creating unprecedented opportunities.

Digital technology is evolving at breakneck speed, providing a constant stream of new applications. The main trends are:

  • Transformational technologies: Technological innovation is rapidly gaining momentum and changing every aspect of our day-to-day lives.
  • The rise of data: The growing mass of big data and the power to process it are creating unprecedented opportunities.
  • Changing lifestyles: The way we communicate and gather information is constantly changing.
  • Mismatch of skills: Increasing digitalisation, robotics and artificial intelligence require specific expertise and new skills.
  • Increasing global wealth: The number of people with digital communication tools is growing worldwide, raising the prospect of increased prosperity.
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According to ASML, the main supplier to the chip industry, the computing power of a chip will continue to double every two years until at least 2030.

Joris Franck, Fund Manager, KBC Asset Management

You invest in companies that support the digital evolution.

These companies are active in areas such as:

  • Electronics: computers, smartphones, virtual reality, Internet-of-Things devices, etc.
  • Semiconductors: sensors, processor chips (CPU), graphics chips (GPU), memory chips, etc.
  • Cloud services and artificial intelligence
  • Software
  • IT consultancy: guiding companies through the digital transformation, transition to the cloud, etc.
  • Communication infrastructure: web 3.0, 5G/6G, network infrastructure, etc.
  • Cybersecurity
  • Platforms: e-commerce, metaverse, etc.
  • Data: data centres, data providers, etc.
  • Promising technologies: technology for self-driving vehicles, quantum computing, blockchain, etc.

Invested in a responsible manner

By opting for this responsible fund, you exert a positive influence on the world we live in. In this regard, the fund invests in companies and/or countries that contribute towards:

  • achieving specific targets relating to the environment, social issues and corporate governance (ESG) and a reduction in carbon intensity (CO2)
  • achieving the United Nations Sustainable Development Goals

Companies that specialise in controversial activities (such as tobacco, gambling and weapons) are excluded.

What can you expect from this product?

  • Actively managed equity fund
  • Responsible investment
  • In euros
  • No maturity date, no capital protection, no guaranteed return
  • Redeemable on a daily basis

Risks

  • Risk-reward indicator
    6 on a scale of 1 (low risk and potentially lower return) to 7 (high risk and potentially higher return).
  • High exchange rate risk
    Since there are investments in securities that are denominated in currencies other than the Euro, there is a considerable chance that the value of an investment will be affected by movements in exchange rates. There is no capital protection.

Charges

  • Entry charge: 3%
  • Exit charge: None (5% but only if you sell units within a month of purchase)
  • Ongoing charges: 1.79% (factored into the net asset value)
  • Anti-dilution levy: In exceptional situations*

* When net subscriptions and redemptions involve exceptionally large amounts, KBC Asset Management may decide to apply an additional charge to the investors concerned [those entering or exiting the fund on that day] to mitigate the negative impact on the net asset value. The size of this levy is based on the transaction charges incurred by the manager. Applied in very exceptional situations, this levy is in the interests of those investors remaining in the fund.

Taxes

  • Withholding tax on dividends: 30% (only for distribution units)
  • Withholding tax upon exit: None
  • Stock market tax upon exit: 1.32%, with a maximum charge of 4 000 euros (only for capitalisation units)

This tax treatment applies to individual investors subject to Belgian personal income tax and may change in the future.

Investment policy

KBC Equity Fund We Digitize aims to generate a return by investing primarily in shares of companies whose products and services support the digital evolution, such as:

  • Electronics
  • Big data and artificial intelligence
  • Quantum computing
  • Cloud services and cloud computing
  • Cybersecurity
  • Semiconductors
  • Data services to companies
  • Software for professional purposes
  • IT consultancy
  • Network infrastructure
  • Digital marketplaces
  • Etc.

A current overview can be found at www.kbc.be/thematic-funds.

The fund pursues responsible investing objectives based on a dualistic approach: a negative screening and a positive selection methodology.

This approach will be gradually implemented in the portfolio from 13 September 2022.

The negative screening entails that the fund may not invest in assets of companies that are excluded based on exclusion criteria (including tobacco, gambling activities and weapons). More information on the exclusion policy can be found at www.kbc.be/investment-legal-documents > Exclusion policy for Responsible Investing funds.

The positive selection methodology is a combination of portfolio targets and supporting sustainable development. Portfolio targets are based on a reduction in carbon intensity and an improvement in ESG characteristics versus its benchmark. Sustainable development is supported by investing in companies that contribute to the achievement of the UN Sustainable Development
Goals. More information on the positive selection methodology and the concrete goals of the compartment can be found at www.kbc.be/investment-legal-documents> Investment policy for Responsible Investing funds.
KBC Equity Fund We Digitize is actively managed with reference to the following benchmark: MSCI All Countries World - Net Return Index(www.MSCI.com). However, it is not the aim of the fund to replicate the benchmark. The composition of the benchmark is taken into account when compiling the portfolio. In line with its investment policy, the fund may not invest in all the instruments included in the benchmark. When compiling the portfolio, the manager may also decide to invest in instruments that are not included in the benchmark, or indeed not to invest in instruments that are included.
Due to the aforementioned responsible investing methodology, the composition of the portfolio will differ from that of the benchmark. The benchmark is also used to determine the fund's risk limitation mechanism. This limits the extent to which the fund's return may deviate from the benchmark. The long term expected tracking error for this fund is higher than 4.00%. The tracking error measures the volatility of the fund's return relative to that of the benchmark. The higher the tracking error, the more the fund's return fluctuates relative to the benchmark. Market conditions may cause the actual tracking error to differ from the expected tracking error.

KBC Equity Fund We Digitize may make limited use of derivatives*. This means that derivatives can be used either to help achieve the investment objectives (for instance, to increase or decrease the exposure to one or more market segments in line with the investment strategy), or to neutralise the portfolio’s sensitivity to market factors (by hedging an exchange rate risk, for example).

The fund is denominated in Euro.

The above objectives and investment policy were taken in full from the Key Investor Information Document (KIID). Capital and/or returns are not guaranteed or protected.

More things you need to know

This information is governed by the laws of Belgium. Please read the key investor information document and the prospectus before subscribing. Both documents are available free of charge in Dutch and English (and in French for the key investor information document) from your KBC or CBC branch or at www.kbc.be/investment-legal-documents or www.cbc.be/documentation-investissements. You will also find a summary of your rights as an investor there in Dutch, English, French and German.

The net asset value can be found on www.beama.be, in KBC Mobile or CBC Mobile.

If you have a complaint, the contact details for KBC are complaints@kbc.be, + 32 16 43 25 94 or ombudsman@ombfin.be and the contact details for CBC are gestiondesplaintes@cbc.be, + 32 81 803 163 or ombudsman@ombfin.be for CBC.

* For the complete overview of financial and economic terms, go to www.kbc.be/lexicon or www.cbc.be/lexique.

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