KBC Equity Fund Enhanced Intelligence Stock Selection invests directly or indirectly in shares and/or share-related investments that may come from any region, sector or theme. The fund’s stock selection is based on quantitative criteria using publicly available information. These criteria are incorporated into a specific model designed by KBC Asset Management that applies advanced quantitative, to analyze a long and broad history of stock-level data. The basic assumption of this model is that share prices are not always an accurate reflection of the fundamental value of the company in question, but that this fundamental value can be estimated provided one has sufficient information and can process this information efficiently. It is also assumed that share prices will evolve towards fundamental value over time. However, the way in which this happens depends on the prevailing cycle in the market structure and its impact on the criteria included in the model. The quantitative model created by KBC Asset Management estimates a relative rating per share on a regular basis, evaluating shares in the investment universe relative to each other. Better-rated shares are assigned a relatively heavier weight in the fund's portfolio relative to their weight in the fund's benchmark, while lower-rated shares are assigned a relatively lighter weight relative to their weight in the benchmark. Appropriate diversification is ensured in accordance with relevant legal and risk restrictions. However, the fund manager may decide at any time not to follow the models or to follow them only partially. Human intervention is expected to occur rather in exceptional circumstances.
KBC Equity Fund Enhanced Intelligence Stock Selection is actively managed with reference to the following benchmark: MSCI All Countries World - Net 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.
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 .
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 3.00 %. 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 Enhanced Intelligence Stock Selection 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 fund reinvests any income received in the manner set out in the prospectus (for more details, see section 'Types of units and fees and charges' of the information for this sub-fund in the prospectus).
The above objectives and investment policy have been taken in their entirety from the Key Information Document (KID). Neither the capital nor the return is guaranteed or protected.