300128-KBC Bonds SRI Str Board 50/50

The KBC Bonds Strategic Broad 50/50 Responsible Investing sub-fund invests at least 90% of its assets in corporate bonds, government bonds, convertible bonds, deposits, money market instruments, other debt securities or derivative financial instruments (including bond futures, interest rate swaps and CDS contracts) or units in UCIs within the limits specified in 6.1.2.3 of the prospectus. The remaining 10% can be invested in other assets as defined in Section 6.1. ‘Eligible Instruments’ of the prospectus. Typically, the sub-fund invests 50% of its assets in corporate bonds, mainly investment grade bonds denominated in euros, and/or in derivatives that create exposure to corporate credit risk (mainly interest-rate swaps, futures and CDS contracts). However, the sub-fund may invest up to 100% in these types of assets if the sub-fund manager adopts a more pro-cyclical approach. The sub-fund will generally invest the remaining 50% of its assets in balanced government bonds issued by governments belonging to the Economic and Monetary Union (EMU) or which intend to join, mainly investment grade bonds denominated in euros and considering all maturities, and/or in derivatives which create exposure to sovereign risk (mainly interest-rate swaps and futures). However, the sub-fund may invest up to 100% in these types of assets if the sub-fund manager opts for more defensive forms of exposure. The sub-fund may invest in transferable securities and/or derivatives denominated in any currency. The currency risk will not be hedged systematically. In addition, the portfolio may be concentrated in certain issuers, currencies or types of transferable securities and/or derivatives. The portfolio composition may therefore vary significantly over time. Derivatives may be used in pursuit of the investment objectives and to hedge the sub-fund's risk exposure. The sub-fund may not invest more than 25% of its assets in convertible bonds and bonds with options, more than 10% of its total assets in equities and other securities and shares or units, and more than one third of its total assets in bank deposits. The sub-fund will invest at least 75% of its assets in bonds and debt instruments rated as investment grade,* i.e. at least BBB-/Baa3 (long term) or A3/F3/P3 (short term) by Standard & Poor’s or a corresponding rating from Moody’s or Fitch and/or in government bonds issued in local currency or non-subordinated corporate bonds that have not been rated by the aforementioned agencies, but the issuer of which has been rated as investment grade by at least one of these agencies. The sub-fund may invest up to 25% of its assets in bonds and debt instruments to which the aforementioned agencies have not assigned a rating and/or which do not meet the rating conditions specified above. The sub-fund will not invest in distressed and defaulted securities at the time of purchase.