Diversified investment funds

The purpose of an investment fund is to generate potential returns. Every investor is different, so we offer three variants each with its own individual mix of shares, bonds and other investments. Diversifying like this means you don’t put all your eggs in one basket and you spread your risks.

Decisions on which investments are made through these funds are based on the investment strategy pursued by KBC Asset Management NV. The specialists at KBC Asset Management base their decisions on an extensive analysis of the financial and economic developments, and the outlook for regions, sectors and themes, meaning you don’t have to keep a close eye on the financial markets and investments each day.

Sivek, the open-ended investment company under Belgian law (bevek²), includes three sub-funds that are managed by KBC Asset Management, namely:

• Sivek Global Low
• Sivek Global Medium
• Sivek Global High

Each of the three sub-funds strikes a different balance between risk and return. The more a fund invests in shares, the more likely its value will fluctuate, but also the better its long-term return prospects may be.

The various target allocations used by our fund managers for each sub-fund are given below. The target allocation of assets may be deviated from in line with the investment strategy of KBC Asset Management NV (see www.kbc.be/investment-strategy), such as when KBC Asset Management expects certain types of investments to do better than others. This means that cash, real estate and/or other alternative investments may be included in the fund.

Sivek Global Low

• 30% shares and share-related investments
• 70% bonds and bond-related investments
• 0% cash, real estate and alternative investments

Sivek Global Low is actively managed with reference to the following benchmark: 30% MSCI All Countries World Net Return Index - 35% JP Morgan EMU government bonds investment grade all maturities Total Return Index - 35% iBoxx Euro corporate bonds Total Return Index (www.MSCI.com). However, is not the aim of the fund to replicate the benchmark. The composition of the benchmark is taken into account when compiling the portfolio. The composition of the portfolio will to a large extent be similar to that of the benchmark. The benchmark is also used to assess the performance of the fund. 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 longterm expected tracking error for this fund is 1.5%. 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.

Sivek Global Medium

• 55% shares and share-related investments
• 45% bonds and bond-related investments
• 0% cash, real estate and alternative investments

Sivek Global Medium is actively managed with reference to the following benchmark: 55% MSCI All Countries World Net Return Index - 22,5% JP Morgan EMU government bonds investment grade all maturities Total Return Index - 22.5% iBoxx Euro corporate bonds Total Return Index (www.MSCI.com). However, is not the aim of the fund to replicate the benchmark. The composition of the benchmark is taken into account when compiling the portfolio. The composition of the portfolio will to a large extent be similar to that of the benchmark. The benchmark is also used to assess the performance of the fund. 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 longterm expected tracking error for this fund is 2%. 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.

The risk indicator for Sivek Global Low and Sivek Global Medium is 4 on a scale of 1 (lower risk) to 7 (higher risk).

The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
3 reflects how sensitive the various assets in which the fund invests are to the markets. Consequently, the indicator lies between that of a typical bond fund (2) and a typical equity fund (4).
This product does not include any protection from future market performance so you could lose some or all of your investment.
The risk indicator assumes you keep Sivek Global Low for 4 years an Sivek Global Medium for 5 years. The actual risk can vary significantly if you cash in at an early stage and you may get back less.

Moreover, an investment in these funds involves:

• A moderate level of inflation risk: the bond component does not provide any protection against an increase in inflation.
• A moderate level of exchange risk: since investments are made in securities that are denominated in currencies other than the euro, there is a real chance that the value of an investment will be affected by movements in exchange rates.
• A moderate level of credit risk: the bond component of this fund invests primarily – but not exclusively – in bonds with an investment grade³ rating. Consequently, the risk that an issuer can no longer meet its obligations is higher than when only in bonds with an investment-grade rating are invested in. If investors doubt the creditworthiness of the bonds' issuers, the value of those bonds can fall. 

Sivek Global High

• 75% shares and share-related investments
• 25% bonds and bond-related investments
• 0% cash, real estate and alternative investments

Sivek Global High is actively managed with reference to the following benchmark: 75% MSCI All Countries World Net Return Index - 12.5% JP Morgan EMU government bonds investment grade all maturities Total Return Index - 12.5% iBoxx Euro corporate bonds Total Return Index (www.MSCI.com). However, is not the aim of the fund to replicate the benchmark. The composition of the benchmark is taken into account when compiling the portfolio. The composition of the portfolio will to a large extent be similar to that of the benchmark. The benchmark is also used to assess the performance of the fund. 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 longterm expected tracking error for this fund is 2.5%. 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.

The risk indicator is 4 on a scale of 1 (lower risk) to 7 (higher risk).

The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
4 reflects how sensitive the various assets in which the fund invests are to the markets. The rating indicates that this fund invests primarily in more risky asset classes such as shares and equity funds.
This product does not include any protection from future market performance so you could lose some or all of your investment.
The risk indicator assumes you keep the product for 6 years. The actual risk can vary significantly if you cash in at an early stage and you may get back less.

Moreover, an investment in this fund involves:

• A high level of 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.
  
• A moderate level of credit risk: the bond component of this fund invests primarily – but not exclusively – in bonds with an investment grade³ rating. Consequently, the risk that an issuer can no longer meet its obligations is higher than when only in bonds with an investment-grade rating are invested in. If investors doubt the creditworthiness of the bonds' issuers, the value of those bonds can fall.