Horizon KBC Dynamic Responsible Investing invests directly or indirectly in various asset classes, such as shares and/or share-related investments (the ‘stock component’), bonds and/or bond-related investments (the ‘bond component’), money market instruments, cash and cash equivalents, and/or alternative investments (including real state and financial instruments that are linked to price movements on the commodity market). The target allocation is 55% shares and/or share-related investments (stock component) and 45% bonds and/or bond-related investments (bond component).

The stock component is invested in a worldwide selection of shares that may come from any region, sector or theme. The credit rating* that the bond component must meet is set out in the prospectus (for more details, see the 'Characteristics of the bonds and debt instruments' section in the information concerning this sub-fund in the prospectus). Within the limitations described above, the fund pursues responsible investing objectives based on a dualistic approach: a negative screening and a positive selection methodology. The negative screening entails that the fund may not invest in the assets of issuers operating in industries where exclusion criteria apply (however, specific turnover tresholds apply, for example to tobacco, gambling activities and weapons). More information on the exclusion policy can be found at www.kbc.be/investment-legal-documents > Exclusion policy for Responsible Investing funds. The positive selection methodology is a combination of portfolio targets and supporting sustainable development. Portfolio targets are based on a reduction in greenhouse gas intensity and an improvement in ESG characteristics versus its benchmark. Sustainable development is supported by investing in green, social and sustainability bonds and in issuers contributing to the UN Sustainable Development Goals. More information on the positive selection methodology and the concrete goals of the fund can be found at www.kbc.be/investment-legal-documents > Investment policy for Responsible Investing funds and in the annex to the prospectus for this 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%.