KBC Dynamic Tolerant - a sub-fund of KBC Horizon, strives to achieve the highest possible return by investing the raised funds 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 distribution of assets is 55% for the equity share and 45% for the bond share. The target allocation may have a significant deviation in accordance with the investment policy of KBC Asset Management NV, as illustrated below. Therefore, the fund may invest a significant portion of its assets in asset classes that are not included in the target allocation (such as money market instruments and cash). The equity share can increase up to a maximum of 70% of the fund.

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 money market instruments and cash). If the equity share is performing better than the bond share or vice versa, managers are likely to 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.

Managers pay one and a half times more attention to reducing risk than to the potential for increased investment. The more attention is paid to risk reduction, the larger part of the portfolio in uncertain and/or volatile market conditions can be converted into lower risk investments, 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 transparency of the investment policy of these funds and whether their strategy is in line with the investment strategy of this fund.