KBC Defensive Tolerant - a sub-fund of KBC Horizon, strives to achieve the highest possible return by investing the funds raised in accordance with the investment policy of KBC Asset Management NV. The fund invests directly or indirectly in various asset classes, such as shares and/or equity-related investments (“equity share”), bonds and/or bond-related investments (“bond share”), money market instruments, cash and cash equivalents and/or alternative investments (including real estate as well as financial instruments related to commodity market price movements).

The target asset allocation is 30% investments in shares and/or investments related to shares (“equity share”) and 70% investments in bonds and/or investments related to bonds (“bond share”). The target allocation may deviate in accordance with the investment policy of KBC Asset Management NV. Therefore, the fund may invest in asset classes that are not included in the target asset allocation, as well as money market instruments and cash. The equity share can increase up to a maximum of 45% of the fund’s assets. The equity share is invested in a selection of shares from worldwide, regardless of region, sector or sphere. When applying the investment policy of KBC Asset Management NV, an analysis of the financial and economic development and the prospects for specific regions, sectors and spheres is made. If financial market conditions are uncertain, volatile, or both, part of the portfolio may also be converted to lower-risk investments (such as cash). If the equity share performs better than the bond share or vice versa, the investment management may use part of the portfolio to purchase additional assets of the best performing class between these two classes and to sell assets of the class with the worst results.

The focus in investment management is one and a half times more on the risk reduction than on the potential for investment growth. The more attention is paid to the risk of downward movement, the greater part of the portfolio in uncertain and/or volatile market conditions can be converted into investments with lower risk, such as cash and money market instruments. The portfolio is composed mainly of funds managed by a company from the KBC Group, based on criteria such as the transparency of the investment policy of these funds and whether their strategy is in line with the investment strategy of this fund.