KBC Eco Fund Semi-annual report 29 February 2020€¦ · Organisation of the Bevek KBC Eco Fund...

KBC Eco FundSemi-annual report29 February 2020

Public open-ended investment company under Belgian law with a variable number ofunits opting for investments complying with the conditions of Directive 2009/65/EC -UCITS

No subscriptions will be accepted on the basis of this report. Subscriptions will only be valid if effected after a freecopy of the simplified prospectus or prospectus has been provided 1

Table of contents

1. General information on the Bevek KBC Eco Fund

1.1. Organisation of the Bevek KBC Eco Fund

1.2. Management report

1.2.1. Information for the shareholders1.2.1.1. Securities Financing Transactions (SFTs)1.2.1.2. General strategy for hedging the exchange rate risk1.2.1.3. Social, ethical and environmental aspects1.2.1.4. Synthetic risk and reward indicator1.2.1.5. Ongoing charges1.2.1.6. Existence of fee sharing agreements and rebates1.2.1.7. Existence of fee sharing agreements and rebates1.2.1.8. Recurrent fees and charges

1.2.2. General market overview

1.3. Aggregate balance sheet

1.4. Aggregate profit and loss account

1.5. Summary of recognition and valuation rules

1.5.1. Summary of the rules1.5.2. Exchange rates

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1. General information on the Bevek1.1. Organisation of the BevekRegistered office

2 Havenlaan - B-1080 Brussels, Belgium.

Date of incorporation27 March 1992

LifeUnlimited.

Board of directors of the BevekName Function Mandat

Patrick Dallemagne Financial Director CBC Banque SA,Avenue Albert 1er 60, B-5000 Namur

Chairman

Jean-Louis Claessens / Independent Director

Jozef Walravens / Independent Director

Carine Vansteenkiste General Manager KBC Private Banking- West Region KBC Bank NV,Havenlaan 2, B-1080 Brussels

Non-executive director

Tom Mermuys Head of Asset Allocation and StrategyPortfolios KBC Asset Management NV,Havenlaan 2, 1080 Brussels

Natural person to whom theexecutive management of theBevek has been entrusted

Wilfried Kupers General Manager Group Legal KBCGroup NV, Havenlaan 2, 1080 Brussels

Natural person to whom theexecutive management of theBevek has been entrusted

Management typeBevek that has appointed a company for the management of undertakings for collective investments.The appointed management company is KBC Asset Management NV, Havenlaan 2, B-1080 Brussels.

Date of incorporation of the management company30 december 1999.

Names and positions of the directors of the management companyName Title

Stefan Van Riet Non-Executive DirectorPierre Konings Non-Executive DirectorKatrien Mattelaer Non-Executive DirectorJohan Daemen Non-Executive DirectorAndré Van Poeck Independent DirectorLuc Popelier ChairmanJohan Lema President of the Executive CommitteeTiny Ergo Managing Director resigned 31/08/2019Linda Demunter Managing DirectorFrank Van de Vel Managing DirectorChris Sterckx Managing DirectorKlaus Vandewalle Managing Director

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Names and positions of the natural persons to whom the executivemanagement of the management company has been entrusted

Name TitleJohan Lema President of the Executive CommitteeTiny Ergo Managing Director resigned 31/08/2019Linda Demunter Managing DirectorFrank Van de Vel Managing DirectorChris Sterckx Managing DirectorKlaus Vandewalle Managing Director

These persons may also be directors of various beveks.

Auditor of the management companyPriceWaterhouseCoopers België, Woluwe Garden, Woluwedal 18, 1932 Sint-Stevens-Woluwe, represented byGregory Joos, company auditor and recognized auditor.

Status of the BevekPublic Bevek with various sub-funds that has opted for investments complying with the conditions of Directive2009/65/EC and which, as far as its operations and investments are concerned, is governed by the Law of 3 August2012 relative to undertakings for collective investment complying with the conditions of Directive 2009/65/EC andthe undertakings for investment in receivables.

In the relationship between the investors, each sub-fund will be viewed as a separate entity. Investors have a rightonly to the assets of and return from the sub-fund in which they have invested. The liabilities of each individual sub-fund are covered only by the assets of that sub-fund.

Financial portfolio managementthe creation of the and its maintenance in terms of the technical, product-specific and legal aspects is delegated by

the management company to , , , .

Financial service providersThe financial services providers in Belgium are:KBC Bank NV, Havenlaan 2, B-1080 BrusselsCBC Banque SA, Avenue Albert 1er 60, B-5000 Namur

CustodianKBC Bank NV, Havenlaan 2, B-1080 Brussels.

Custodian’s activitiesThe custodian:

a) Ensures the safe-keeping of the assets of the Bevek and compliance with the standard obligations in thisregard;

b) Ensures that the sale, issue, purchase, redemption and withdrawal of shares in the Bevek occur incompliance with the applicable legal and regulatory provisions, the articles of association and theprospectus;

c) Ensures that the net asset value of the shares in the Bevek is calculated in accordance with the applicablelegal and regulatory provisions, the articles of association and the prospectus;

d) Carries out the instructions of , provided that these do not contravene the applicable legal and regulatoryprovisions, the articles of association and/or the prospectus;

e) Ensures that in transactions relating to the assets of the Bevek, the equivalent value is transferred to theBevekwithin the usual terms;

f) Ascertains that:i. The assets in custody correspond with the assets stated in the acounts of the Bevek;ii. The number of shares in circulation stated in the accounts corresponds with the number of shares in

circulation as stated in the acounts of the Bevek;iii. The investment restrictions specified in the applicable legal and regulatory provisions, the articles of

association and the prospectus are respected;iv. The rules regarding fees and costs specified in the applicable legal and regulatory provisions, the

articles of association and the prospectus are respected;v. The returns of the Bevek are appropriated in accordance with the applicable legal and regulatory

provisions, the articles of association and the prospectus.

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The custodian ensures that the cash flows of the Bevek are correctly monitored and in particular that all paymentsby or on behalf of subscribers on subscription to shares in the Bevek, have been received and that all the cash ofhas been booked to cash accounts that:

1. Have been opened in the name of the Bevek, in the name of the management company acting on itsbehalf, or in the name of the custodian acting on its behalf;

2. Have been opened at an entity as intended in Article 18(1a, b and c) of Directive 2006/73/EC; and3. Are held in accordance with the principles set out in Article 16 of Directive 2006/73/EC.

If the cash accounts have been opened in the name of the custodian acting in name of the Bevek, no cash from theentity intended in Article 18(1a, b and c) of Directive 2006/73/EC and none of the custodian’s own cash may bebooked to these accounts.The assets of the Bevek are placed in custody with a custodian as follows:

a) For financial instruments that may be held in custody:i. The custodian will hold in custody all financial instruments that may be registered in a financial

instrument account in the books of the custodian, as well as all financial instruments that can bephysically delivered to the custodian;

ii. the custodian will ensure that all financial instruments that can be registered in a financial instrumentaccount in the custodian’s books, are registered in the custodian’s books in separate accounts inaccordance with the principles set out in Article 16 of Directive 2006/73/EC; these separateaccounts have been opened in the name of the Bevek or in the name of the management companyacting on its account, so that it can be clearly ascertained at all times that they belong to the Bevek,in accordance with the applicable law.

b) For other assets:i. The custodian will verify that the Bevek or the management company acting on its behalf is the

owner of the assets by checking based on information or documents provided by the Bevek or themanagement company and, where appropriate, of available external proofs, whether the Bevek orthe management company acting on its behalf has ownership;

ii. The custodian will maintain a register of the assets from which it is clear that the Bevek or themanagement company acting on its behalf is the owner thereof and will keep that register up-to-date.

The custodian’s duty to return the financial instruments only applies to financial instruments that may be held incustody.

Custody tasks delegated by the custodianThe custodian of the Bevek has delegated a number of custody tasks as of the publication date of this annual/half-year report. The tasks delegated to this sub-custodian are:

- Holding the required accounts in financial instruments and cash;- Carrying out the custodian’s instructions regarding the financial instruments and cash;- Where required, the timely delivery of the relevant financial instruments to other parties involved with

holding them;- The collection of every type of return from the financial instruments;- The appropriate communication to the custodian of all information that the sub-custodian receives directly or

indirectly from the issuers via the chain of depositaries and performing the required formalities with regard tothe financial instruments, with the exception of exercising voting rights, unless otherwise agreed in writing;

- Maintaining and communicating to the custodian all required details regarding the financial instruments;- Processing corporate events on financial instruments, whether or not after the holder of these instruments

has made a choice;- Providing the services that have been agreed between the custodian and the sub-custodian and are legally

permitted, with the exception of investment advice and asset management and/or any other form of advicerelating to transactions in or the simple holding of financial instruments;

- Maintaining and communicating to the custodian all required details regarding the financial instruments.

List of sub-custodians and sub-sub-custodiansThe updated list of entities to which the custodian has delegated custody duties and, where applicable, the entitiesto which the delegated custody duties have been sub-delegated, can be consulted at www.kbc.be/investment-legal-documents.The custodian is liable for the loss of financial instruments held in custody in the sense of Article 55 of the Law of 3August 2012 relative to undertakings for collective investment complying with the conditions of Directive 2009/65/ECand the undertakings for investment in receivables.

Investors can approach the institutions providing the financial services for up-to-date information regarding theidentity of the custodian and its principal duties, as well as the delegation of these duties, and the identity of theinstitutions to which these duties have been delegated or sub-delegated, and also regarding any conflicts of interestas specified below.

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Conflicts of interestThe custodian will take all reasonable measures to identify conflicts of interest that may arise in the execution of itsactivities between

- The custodian and management company of the Bevek, or the management companies of other beveks orfunds of which the custodian holds assets;

- The custodian and the Bevek whose assets the custodian holds, or other beveks or funds of which thecustodian holds assets;

- The custodian and the investors in this Bevek whose assets the custodian holds,or other beveks or funds ofwhich the custodian holds assets;

- These parties themselves.

The custodian of the Bevek will implement and maintain effective organisational and administrative procedures inorder to take all reasonable measures to detect, prevent, manage and control conflicts of interest so that they do notprejudice the interests of the aforementioned parties.

If these procedures are not sufficient to be able to assume with reasonable certainty that the interests of theaforementioned parties have not been harmed, the investors will be notified of the general nature or causes ofconflicts of interest according to the procedure described on the following website: www.kbc.be/investment-legal-documents (About Us > Code of conduct for conflicts of interest). Investors who wish to be informed personally ofsuch conflicts of interest can contact the financial services providers. If necessary, the open-ended investmentcompany’s custodian will adjust its processes.

Administration and accounting managementKBC Asset Management N.V., Havenlaan 2, B-1080 Brussel

Accredited auditor of the the BevekDeloitte Bedrijfsrevisoren CVBA, Gateway Building, Luchthaven Brussel Nationaal 1 J, 1930 Zaventem, representedby Maurice Vrolix, company auditor and recognized auditor.

DistributorKBC Asset Management S.A., 4, Rue du Fort Wallis, L-2714 Luxembourg

PromoterKBC

The official text of the articles of association has been filed with the registry of the Commercial Court.

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List of sub-funds and share classes of KBC Eco FundThe table below contains an overview of the sub-funds sold and their share classes. If no share class is mentionedfor a sub-fund, that means that only capitalisation- and/or distribution units are available.The characteristics of the different share classes are given in the prospectus.

Name1 Alternative Energy

Classic Shares Institutional B Shares

2 Climate Change Classic Shares Institutional B Shares

3 CSOB Water4 Impact Investing

Classic Shares Classic Shares HUF

5 Water Classic Shares Institutional B Shares

6 World Classic Shares Institutional Shares

Sub-funds and share classes liquidated during the reporting periodNot applicable

In the event of discrepancies between the Dutch and the other language versions of the (Semi-)Annual report, theDutch will prevail.

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1.2. Management report1.2.1. Information for the shareholders1.2.1.1. Securities Financing Transactions (SFTs)

The Bevek may not lend any financial instruments.

1.2.1.2. General strategy for hedging the exchange rate riskIn order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles ofassociation, a sub-fund may perform transactions relating to the sale of forward currency contracts, as well as thesale of call options and the purchase of put options on currencies. The transactions in question may relate solely tocontracts traded on a regulated market that operates regularly, that is recognised and that is open to the public or,that are traded with a recognised, prime financial institution specialising in such transactions and dealing in the over-the-counter (OTC) market in options. With the same objective, a sub-fund may also sell currencies forward orexchange them in private transactions with prime financial institutions specialising in such transactions.

1.2.1.3. Social, ethical and environmental aspectsInvestments may not be made in financial instruments issued by manufacturers of controversial weapons whose useover the past five decades, according to international consensus, has led to disproportionate human sufferingamong the civilian population. This involves the manufacturers of anti-personnel mines, cluster bombs andmunitions and weapons containing depleted uranium.In addition, as of 31 March 2014 no new investments may be made in financial instruments issued by companiesthat do not have an anti-corruption policy and that have been given a negative score in a thorough screening forcorruption in the last two years. A company has no anti-corruption policy if it cannot be demonstrated that it has anacceptable policy concerning the fight against corruption. An acceptable policy should be made public and must atleast state that bribery will not be tolerated and that the law will be followed in this respect. The screening will bebased on a generally accepted and independent 'Social, ethical and environmental factors' database.In this way, not only is a purely financial reality represented, but also the social reality of the sector or region.

1.2.1.4. Synthetic risk and reward indicatorIn accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has beencalculated. This indicator provides a quantitative measure of a sub-fund's potential return and the risk involved,calculated in the currency in which a sub-fund is denominated. It is given as a figure between 1 and 7. The higherthe figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possibletoo. The lowest figure does not mean that the investment is entirely free of risk. However, it does indicate that,compared with the higher figures, this product will generally provide a lower, but more predictable return.

The synthetic risk and reward indicator is assessed regularly and can therefore go up or down based on data fromthe past. Data from the past is not always a reliable indicator of future risk and return.

The most recent indicator can be found under the 'Risk and reward profile' heading in the 'Key Investor Information'document.

1.2.1.5. Ongoing chargesThe key investor information sets out the ongoing charges, as calculated in accordance with the provisions ofCommission Regulation (EC) No. 583/2010 of 1 July 2010.

The ongoing charges are the charges taken from the UCITS over a financial year. They are shown in a single figurethat represents all annual charges and other payments taken from the assets over the defined period and for a sub-fund and that is based on the figures for the preceding year. This figure is expressed as a percentage of the averagenet assets per sub-fund or, where relevant, of the share class.

The following are not included in the charges shown: entry and exit charges, performance fees, transaction costspaid when buying or selling assets, interest paid, payments made with a view to providing collateral in the context ofderivative financial instruments, or commissions relating to Commission Sharing Agreements or similar feesreceived by the Management Company or any person associated with it.

1.2.1.6. Existence of fee sharing agreements and rebatesThe management company may share its fee with the distributor, and institutional and/or professional parties.In the information for each sub-fund – under '2.4.6. Expenses' – you can see the percentage of the fee that hasactually been shared for each sub-fund.If the management company invests the assets of the undertaking for collective investment in units of undertakingsfor collective investment that are not managed by an entity of KBC Groep NV, and receives a fee for doing so, it willpay this fee to the undertaking for collective investment.Fee sharing heeft geen invloed op de hoogte van de beheercommissie die a sub-fund to the managementcompany. This management fee is subject to the limitations laid down in the articles of association. The limitationsmay only be amended after approval by the General Meeting.The management company has concluded a distribution agreement with the distributor in order to facilitate the wider

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distribution of the sub-fund's shares by using multiple distribution channels.It is in the interests of the holders of shares of a sub-fund and of the distributor for the largest possible number ofshares to be sold and for the assets of a sub-fund to be maximised in this way. In this respect, there is therefore noquestion of any conflict of interest.

1.2.1.7. Existence of Commission Sharing AgreementsThe Management Company, or where applicable, the appointed manager has entered into a Commission SharingAgreement with one or more brokers for transactions in shares on behalf of one or more sub-funds. Thisagreement specifically concerns the execution of orders and the delivery of research reports.

What the Commission Sharing Agreement entails:The Management Company, or where appropriate, the appointed manager can ask the broker to pay invoices ontheir behalf for a number of goods and services provided. The broker will then pay those invoices using the savingsthat have been built up to a certain percentage above the gross commission that it receives from the sub-funds forcarrying out transactions.

N.B.:Only goods and services that assist the Management Company, or where applicable, the appointed manager inmanaging the sub-funds in the interest of this a sub-fund can be covered by a Commission Sharing Agreement.

Goods and services eligible for a Commission Sharing Agreement:• Research-related and advice-related services;

• Portfolio valuation and analysis;

• Market information and related services;

• Return analysis;

• Services related to market prices;

• Computer hardware linked to specialised computer software or research services;

• Dedicated telephone lines;

• Fees for seminars when the topic is relevant to investment services;

• Publications when the topic is relevant to investment services;

• All other goods and services that contribute directly or indirectly to achieving the investment objectives of thesub-funds.

The Management Company, or where appropriate, the appointed manager has laid down an internal policy asregards entering into Commission Sharing Agreements and avoiding possible conflicts of interest in this respect,and has put appropriate internal controls in place to ensure this policy is observed.No CSA accrual during this period.

1.2.1.8. Recurrent fees and chargesRecurrent fees and charges paid by the Bevek

Fees paid to directors who are notresponsible for the executive managementof the Bevek, insofar as the GeneralMeeting has approved said fees.

250 EUR per meeting attended, linked to the director's actualattendance of/participation in the meetings of the Board ofDirectors. This fee is divided across all the sub-funds marketed.

Recurrent fees and charges paid by the sub-fund

Fee paid to the statutory auditor of theBevek

Fee of the statutory auditor:1844 EUR/year (excluding VAT) for non-structured sub-fundsThese amounts can be indexed on an annual basis inaccordance with the decision of the General Meeting.

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1.2.2. General market overview1 September 2019 – 29 February 2020General overviewThe economic context

Low interest rates, strong job creation and a robust fiscal plan created a very favourable economic environment inthe US. This was much less the case in the euro area, where economic growth stalled, particularly in the formerpowerhouse Germany. Industry in particular had a very difficult time, due among other things to the continuinguncertainty about the outcome of Brexit and slowing international trade. Simultaneously, inflation figures increasedsomewhat and the US central bank (the Federal Reserve or Fed) introduced a more stringent policy, which justpoured oil on the fire.

Monetary policyThe US central bank changed tack during the reporting period. After systematically raising interest rates throughout2018, the Federal Reserve responded to slowing growth by cutting the base rate three times in equal steps of0.25%. Falling inflation gave the central bank the necessary scope to do this.

The European Central Bank (ECB) was initially clear that it would be some time before interest rates would beraised again. However, as growth in the euro area continued to slow, the Frankfurt-based bank announced a newround of stimulus measures, relaunching its bond purchase programme and reducing deposit rates to -0.5%. Atbarely 1%, core inflation in the euro area is still well below the ECB's target.

Currency marketsDuring the period under review, the euro lost ground to safe-haven currencies like the Japanese yen (+0.6%) andthe Swiss franc (+2.2%). The euro weakened by 1.5% against the US dollar. The biggest loss was against sterling(+4.7%), which benefited from the easing fears about a hard Brexit.

Stock marketsThe global stock market (euro-denominated MSCI World AC) gained 1.2% in euro terms over the past six months(up to and including 28 February 2020). 2019 ended up being an excellent year for the stock markets. The solidstart to the year, which was largely a case of the market bottoming out after the sharp fall in share prices at the endof 2018, was improved upon after some hesitancy in the summer. The strong performance at the end of the yearwas due mainly to stabilising economic growth and receding risks. For instance, a partial trade deal was reachedbetween the US and China, And the risk of a hard Brexit diminished. Producer confidence improved somewhat inthe closing months of the year. The stock markets got off to a good start in January 2020, but fears about theeconomic impact of the new strain of coronavirus spooked investors, causing the initial earnings for the year toquickly dwindle. After a temporary recovery, stock markets fell even more sharply, because of the coronavirusspreading from China to South Korea, Japan and Europe (especially Italy) and economic growth figures worldwidebeing revised downwards.

Over the past six months, clear regional differences have been apparent. Among the traditional markets, the US(+2% in euro terms) once again beat the global average, while the euro area (-1.4%) slightly underperformed thebroad market. Although the UK recovered somewhat from Brexit anxiety, it still lost -2.7%. In Asia, the Hong Kongstock market rallied (+0.7%) after a turbulent period of unrest and street violence, with fears about the coronavirusalso having an effect since January. Japan, too, recorded barely positive returns (+0.6%). With gains of 3.2%,shares from emerging markets (countries or regions that are expected to experience rapid economic growth tomake up their lag with the West) performed relatively better than the traditional markets. Asian stock markets initiallyrose in line with the broad market. The relief following the partial trade agreement, in particular, pushed investors inthe direction of Chinese shares. They too recovered quickly after having been hit hard by fears about the new strainof coronavirus. Latin America lost ground due to Brazil's poor performance (-5.6%).

As regards sectors, the strongest return in euro terms again came from the technology sector (+12%). Defensivesectors also performed well: healthcare (+4.7%) outperformed the broad market index, the defensive utilities sector(+2%) got off to a robust start in 2020 due to the sharp fall in interest rates and because of risk aversion. Commoditysectors faced a tougher time, with Materials losing -4.3% on fears of lower global growth and the Energy sectornosediving (-12.9%). The sector has been in investors' bad books for a while now and the sharp fall in oil prices atthe beginning of 2020 gave it another beating.

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Bond marketsGerman 10-year rates again dropped to a record low of -0.72% in August 2019. In the six months to 29 February2020, this rate initially rose by more than 0.5% to -0.16%. As more certainty emerged regarding the stabilisation ofmonetary policy, rates started to rise, reaching -0.16% on 13 January. But then fears regarding the Covid-19 virusoutbreak and its negative impact on global growth brought rates back down again to -0.61% at the end of January.

In the US, long rates reached a low of 1.46% at the beginning of September. Rates rose fairly rapidly again to1.90% but then stalled at this level for a long time. Since the beginning of 2020, they have fallen very sharply againto 1.11% at the end of February.

Uncertainties surrounding the trade conflict, weaker economic growth and a below-target rate of inflation persuadedcentral banks that a more accommodative rate policy is needed. The US central bank (Fed) cut its key rate threetimes in 2019, the last time by 25 bp in October. Fed Chairman Jerome Powell indicated at the time that this wasprobably the last cut for a while. The European Central Bank (ECB) also announced a whole raft of stimulusmeasures in September, including a reduction in the deposit rate from -0.4% to -0.5% and the relaunch of the bondpurchase programme. The ECB also indicated that this ultra-easy monetary policy will be maintained as long asinflation does not near 2%. But for the time being, the ECB's arsenal seems to be exhausted.

Since the emergence of the Covid-19 coronavirus in China and its global spread, the situation seems to havechanged again. At the beginning of this year, signs pointed towards a recovery in growth. But due to the stagnationof economic activity in China at the start of February, its consequences for the global economy and fears of apandemic, many investors fled to the safer bond markets in early 2020. German bonds continue to fulfil their role asa safe haven and therefore remain in demand with investors, pushing down rates and leading to a negativecompensation for maturities up to more than 30 years. Most peripheral risk premiums have also fallen in recentmonths. But in Italy, they increased again after the country was struck by the novel coronavirus.

Corporate bonds are sensitive to the many uncertainties and slower growth. Investor appetite remains strong in thepresent period of low rates, putting risk premiums under pressure and pushing them down by 0.2% since thebeginning of October until the end of January. Despite the slowdown in economic growth and declining corporateprofitability, businesses remain financially healthy for the most part. However, at the end of February, the riskpremium suddenly shot up again by 0.24%. Rates also fell in most emerging markets, with the exceptions of SouthAfrica, Hungary and the Czech Republic. British bonds also achieved high yields due to the appreciation of thesterling by almost 5% as hopes of a favourable settlement of Brexit increased. This development has also comeunder pressure since mid-February.

OutlookThe economic context

The coronavirus outbreak in China, and above all its spread to the rest of the world, has had a major impact on theeconomic outlook for 2020. A contraction of the world economy (for the first time since the financial crisis) in the firstquarter is the unavoidable consequence of the measures being taken to stem the spread of the virus and of the lossof confidence among investors and consumers. However, we think this dropout of demand and production will (likethe virus itself) be only temporary and that a recovery will set in during the second half of the year.

Monetary policyCentral banks have responded fairly quickly to the deteriorating economic picture. The US central bank introducedan ‘emergency measure’ in early March, cutting its key rate by 50 bp between its regular meetings. Many othercentral banks followed suit. Given the limited policy scope, we think the European Central Bank will go no furtherthan confirming its present very accommodative policy.

Currency marketsGiven the acceleration in interest-rate reductions, we think a further slight weakening of the US dollar against theeuro is the most likely scenario in 2020.

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Stock marketsEmerging markets and the euro area are our preferred regions given the recent modest global stabilisation in theactivity indicators. These leading indicators suggest that, in economic terms, the worst is over for both regions.Concerns about a hard Brexit and the trade conflict have also eased. Both risks have put a damper on investmentand confidence, and have weighed on economic growth. What’s more, both regions are valued more cheaply thanthe US, where most of the good news seems to have already been factored into the record share prices. Growthhad long been stronger than in the rest of the developed world, but this difference is expected to narrow.

The bottoming out of these activity indicators is also positive news for cyclical, growth-oriented sectors. Valuationsare extremely low in a number of these sectors, such as Materials. Thanks to the sharp reductions in interest rates,sectors which are more sensitive to interest rates performed well in 2019. The bottoming out that has taken placealso means that these traditionally defensive sectors, such as Utilities, Health Care and Consumer Staples (e.g.food), have little upside potential left. Recovering interest rates (German rates have rebounded sharply sinceSeptember of last year) also mean that the worst is probably over for the benighted financial sector. The interestmargin is under less pressure, while lending volumes have increased systematically over recent years. IT is easilythe sector with the strongest forecast earnings growth. Software companies are growing on the back of the servicesthey provide to businesses, with Cloud computing as the spearhead. This means they are enjoying very highmargins. The hardware and semiconductor segment should also benefit from the improving economic climate.

With regard to investment themes, we prefer quality companies which buy back their own shares. On the one hand,this sends out a signal of confidence, whilst on the other a buyback and the cancellation of these treasury sharesleads to an increase in earnings per share – an added attraction in an environment of lower earnings growth.Buybacks are at record levels in the US, but interest among European companies is also rising steadily.Finally, there is a preference for water companies. Drinking water is in very short supply due to obsolete andinadequate water infrastructure, climate change and problems with water quality and waste-water. This offers robustlong-term revenue growth opportunities for water companies. The traditional premium for water companies ismoreover lower than the average over the last eight years.

Bond marketsGiven the extremely low interest rates (even negative in some cases), we are invested below the benchmark levelfor bonds. The US central bank (Fed) cut interest rates three times in 2019 in steps of 0.25%, with the final cut inNovember. The European Central Bank (ECB) also announced a whole raft of stimulus measures in September2019, including a reduction in the deposit rate from -0.4% to -0.5% and the relaunch of the bond purchaseprogramme. The ECB has also indicated that this ultra-easy monetary policy will be maintained as long as inflationdoes not approach 2%. The Bank does not expect this to happen during the next two years. Bond yields areunattractive and, given the low levels, create an asymmetric risk. Government bonds maturing in the next fewmonths or years are in many cases offering negative returns. Yields on longer maturities are also so low that theleast rise in rates would be enough to push the return into the red. The Belgian ten-year yield also turned negativefor the first time ever in the summer of 2019.

The risks and the fear of recession mean that government bonds issued in the euro area are appealing to investors.The slower economic growth and low inflation caused bond prices to rise in 2019. The uncertainties surrounding theperipheral countries (such as Italy and Spain) have also eased, leading to a reduction in risk premiums; Interestrates reached their low point in August last year. Given unchanged monetary policy and a slight pickup in growth,KBC Asset Management expects to see a slight rise in interest rates. We prefer government bonds from the euroarea with relatively short maturities.

We take a neutral stance on corporate bonds. The lower economic growth and the risks (trade war, coronavirus,Brexit, etc.) may weigh on the credit premium. These investments also often show increased volatility in times ofuncertainty, Euro-area companies remain financially sound. The risk of a hard Brexit has eased and the confidenceindicators appear to have bottomed out. Furthermore, the European Central Bank (ECB) decided in September torelaunch its bond purchase programme, which will provide some support for corporate bonds.

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1.3. Aggregate balance sheet (in EUR)

Balance sheet layout 29/02/2020 28/02/2019

TOTAL NET ASSETS 1,384,780,256.92 1,093,942,532.24II. Securities, money market instruments,

UCIs and derivativesC. Shares and similar instruments

a) Shares 1,380,358,090.68 1,093,090,666.17D. Other securities 0.01F. Derivative financial instruments

j) Foreign exchange Futures and forward contracts (+/-) -729,437.13 -20,644.16

IV. Receivables and payables within oneyear

A. Receivablesa) Accounts receivable 15,063,143.38 1.34

B. Payablesa) Accounts payable (-) -8,442,520.77c) Borrowings (-) -4,760,231.22 -3,357,232.01

V. Deposits and cash at bank and in handA. Demand balances at banks 2,507,577.68 4,712,816.53D. 800,000.03VI. Accruals and deferralsB. Accrued income 1,770,507.55 933,582.76C. Accrued expense (-) -1,786,873.29 -1,416,658.38

TOTAL SHAREHOLDERS' EQUITY 1,384,780,256.92 1,093,942,532.24A. Capital 1,379,586,170.12 1,100,894,612.63B. Income equalization 364,413.94 -59,673.30D. Result of the period 4,829,672.86 -6,892,407.10

Off-balance-sheet headingsI. Collateral (+/-)I.A. Collateral (+/-)I.A.a. Securities/money market instrumentsI.A.b. Cash at bank and in hand/deposits 800,000.03III. Notional amounts of futures and forward

contracts (+)III.A. Purchased futures and forward contracts 39,660,286.11 31,165,655.99III.B. Written futures and forward contracts -4,173,225.25 -2,366,675.32

14

1.4. Aggregate profit and loss account (in EUR)Income Statement 29/02/2020 28/02/2019

I. Net gains(losses) on investmentsC. Shares and similar instruments

a)Shares 958,317.25 -27,893,570.24D. Other securities -5.68 188,018.52

G. Receivables, deposits, cash at bank and inhand and payables -0.02 0.01

H. Foreign exchange positions andtransactionsa)Derivative financial instruments Futures and forward contracts -291,972.84 -147,115.86b)Other foreign exchange positions andtransactions 6,652,699.34 21,728,618.38

Det.section I gains and losses oninvestmentsRealised gains on investments 56,844,543.49 27,354,950.16Unrealised gains on investments -2,836,314.98 -1,440,549.01Realised losses on investments -13,301,764.34 -9,973,128.87Unrealised losses on investments -33,387,426.12 -22,065,321.53

II. Investment income and expensesA. Dividends 8,578,429.04 7,636,205.12B. Interests

b)Cash at bank and in hand and deposits 21,824.39 25,800.84C. Interest on borrowings (-) -19,455.71 -8,846.52

III. Other income

A.Income received to cover the acquisitionand realizaion of assets, to discouragewithdrawals and for delivery charges

112,469.34 124,781.64

IV. Operating expenses

A. Investment transaction and delivery costs(-) -1,201,476.95 -317,443.33

B. Financial expenses (-) -191.94 -892.99C. Custodian's fee (-) -275,442.08D. Manager's fee (-)

a)Financial management -8,151,153.71 -7,481,806.72b)Administration and accountingmanagement -703,180.68 -525,081.39

E. Administrative expenses (-) -5,004.60 -5,001.57F. Formation and organisation expenses (-) -12,405.55 -20,205.33

G. Remuneration, social security charges andpension -11,262.94 -13,303.62

H. Services and sundry goods (-) -61,675.51 -25,570.22J. Taxes -568,027.44 -254,654.20K. Other expenses (-) -192,810.86 97,660.44

Income and expenditure for the periodSubtotal II + III + IV -2,489,365.14 -768,357.91

V. Profit (loss) on ordinary activitiesbefore tax 4,829,672.86 -6,892,407.10

VII. Result of the period 4,829,672.86 -6,892,407.10

15

1.5. Summary of recognition and valuation rules1.5.1. Summary of the rules

Summary of the valuation rules pursuant to the Royal Decree of 10 November 2006 on the accounting, annualaccounts and periodic reports of certain open-ended undertakings for collective investment.The assets of the various sub-funds are valued as follows:• When purchased or sold, securities, money market instruments, units in undertakings for collective

investment and financial derivatives are recorded in the accounts at their acquisition price or sale price,respectively. Any additional expenses, such as trading and delivery costs, are charged directly to the profitand loss account.

• After initial recognition, securities, money market instruments and financial derivatives are measured at fairvalue on the basis of the following rules:

• Securities that are traded on an active market without the involvement of third-party financialinstitutions are measured at fair value using the closing price;

• Assets that have an active market which functions through third -party financial institutions thatguarantee continuous bid and ask prices are measured using the current bid price set on that market.However, since most international benchmarks use mid-prices, and the data providers cannot supplybid prices (e.g., JP Morgan, iBoxx, MSCI, etc.), the midprices are used to measure debt instruments,as provided for in the Notes to the aforementioned Royal Decree. The method to correct thesemidprices and generate the bid price is not used, as it is not reliable enough and could result in majorfluctuations.

• Securities whose last known price is not representative and securities that are not admitted to officiallisting or admitted to another organised market are valued as follows:

1 When measuring these securities at fair value, use is made of the current fair value of similarassets for which there is an active market, provided this fair value is adjusted to takeaccount of the differences between the assets concerned.

2 If no fair value for similar assets exists, the fair value is calculatedon the basis of other valuation techniques which make maximumuse of market data, which are consistent with generally accepted economic methods andwhich are verified and tested on a regular basis.

3 If no organised or unofficial market exists for the assets beingvalued, account is also taken of the uncertain character of these assets, based on the riskthat the counterparties involved might not meet their obligations.

• Shares for which there is no organised or unofficial market, and whose fair value cannot becalculated reliably as set out above, are measured at cost.Impairment is applied to these shares if there are objective instructions to this end.

• Units in undertakings for collective investment (for which there is no organised market) are measuredat fair value using their last net asset value.

• Liquid assets, including assets on demand at credit institutions, obligations oncurrent account vis-à-vis credit institutions, amounts payable and receivable in the short term that are notrepresented by negotiable securities or money market instruments (other than vis-à-vis credit institutions), taxassets and liabilities, are measured at nominal value.Other amounts receivable in the longer term that are not represented by negotiable securities are measuredat fair value.Impairment is applied to assets, amounts to be received and receivables if there is uncertainty that they willbe paid in full or in part at maturity, or if the realisation value of this asset is less than its acquisition value.Additional impairment is recorded on the assets, amounts to be received and receivables referred to in theprevious paragraph to ensure that any change in their value, or risks inherent in the asset in question, aretaken into account.

• The income generated by securities lending is recognised as other income (Income statement II.B.a.:Investment income and expenses – Interest – Securities and money market instruments) and is included onan accruals basis in the income statement over the term of the transaction.

• Securities issued in a currency other than that of the relevant sub-fund are converted into the currency of thesub-fund at the last known mid-market exchange rate.

DifferencesA minor difference may appear from time to time between the net asset value as published in the press and the netasset value shown in this report. These are minimal differences in the net asset value calculated that are identifiedafter publication.If these differences reach or exceed a certain tolerance limit, the difference will be compensated. For those buyingor selling shares in the bevek and for the bevek itself, this tolerance limit will be a certain percentage of the netasset value and the net assets, respectively.This tolerance limit is:

• money market funds: 0.25%• bond funds, balanced funds and funds offering a capital guarantee: 0.50%• equity funds: 1%• other funds (real estate funds, etc.): 0.50%

16

1.5.2. Exchange rates1 EUR = 29/02/2020 29/02/2019

1.703683 AUD 1.600550 AUD4.955821 BRL 4.270400 BRL1.474504 CAD 1.499650 CAD1.063244 CHF 1.134350 CHF

901.091489 CLP 745.649250 CLP25.481513 CZK 25.617000 CZK

7.472920 DKK 7.461150 DKK1.000000 EUR 1.000000 EUR0.859978 GBP 0.856100 GBP8.560275 HKD 8.938600 HKD

337.645021 HUF 315.870000 HUF3.835128 ILS 4.125700 ILS

79.272390 INR 80.991450 INR118.484309 JPY 126.760100 JPY

1,334.067530 KRW 1,280.695900 KRW21.745465 MXN 21.942250 MXN

4.629966 MYR 4.630500 MYR10.404298 NOK 9.731750 NOK

1.770979 NZD 1.670850 NZD55.993488 PHP 58.893550 PHP10.649582 SEK 10.511000 SEK

1.533106 SGD 1.538600 SGD34.686304 THB 35.954450 THB

6.864488 TRY 6.073850 TRY33.260516 TWD 35.045200 TWD

1.098450 USD 1.138700 USD17.280266 ZAR 16.010100 ZAR

17

Semi-annual report as at 29 February 2020

Table of contents

2. Information on KBC Eco Fund Alternative Energy


2.1.1. Launch date and subscription price2.1.2. Stock exchange listing2.1.3. Goal and key principles of the investment policy2.1.4. Financial portfolio management2.1.5. Distributors2.1.6. Index and benchmark2.1.7. Policy pursued during the financial year2.1.8. Future policy2.1.9. Synthetic risk and reward indicator (SRRI)

2.2. Balance sheet

2.3. Profit and loss account

2.4. Composition of the assets and key figures

2.4.1. Composition of the assets of KBC Eco Fund Alternative Energy2.4.2. Changes in the composition of the assets KBC Eco Fund Alternative Energy (in the

currency of the sub-fund)2.4.3. Amount of commitments in respect of financial derivatives positions2.4.4. Changes in the number of subscriptions and redemptions and the net asset value2.4.5. Performance figures2.4.6. Costs2.4.7. Notes to the financial statements and other data

18

2. Information on KBC Eco FundAlternative Energy2.1. Management report2.1.1. Launch date and subscription price

Classic Shares DistributionLaunch date: 31 October 2000Initial subscription price: 500 EURCurrency: EURClassic Shares CapitalisationLaunch date: 31 October 2000Initial subscription price: 500 EURCurrency: EURInstitutional B Shares CapitalisationLaunch date: 25 November 2011Initial subscription price: 160.81 EURCurrency: EUR

2.1.2. Stock exchange listingNot applicable.

2.1.3. Goal and key principles of the investment policyObject of the sub-fund

The main objective of this sub-fund is to generate the highest possible return for its shareholders by investingdirectly or indirectly in transferable securities. This is reflected in its pursuit of capital gains and income. To this end,the assets are invested, either directly or indirectly via correlated financial instruments, primarily in shares.

Sub-fund's investment policyPermitted asset classes

The sub-fund may invest in securities, money market instruments, units in undertakings for collective investment,deposits, financial derivatives, liquid assets and all other instruments insofar as permitted by the applicable laws andregulations and consistent with the object as described above.The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

Restrictions of the investment policyThe investment policy will be implemented within the limits set by law and regulations.The sub-fund may borrow up to 10% of its net assets, insofar as these are short-term borrowings aimed at solvingtemporary liquidity problems.

Permitted derivatives transactionsDerivatives can be used both to achieve the investment objectives and to hedge risks.

Listed and unlisted derivatives may be used to achieve the objectives: these may be forward contracts,futures, options or swaps on securities, indexes, currencies or interest rates or other transactions involvingderivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised insuch transactions.

Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks toconclude the most effective transactions. All costs associated with the transactions will be charged to thesub-fund and all income generated will be paid to the sub-fund.

If the transactions result in a risk in respect of the counterparty, this risk can be hedged by using a marginmanagement system that ensures that the sub-fund is the beneficiary of security (collateral) in the form of liquidinstruments, such as, for instance, cash or investment grade bonds. The relationship with the counterparty orcounterparties is governed by standard international agreements.

Derivatives may also be used to hedge the assets of the sub-fund against open exchange rate risks inrelation to the currency in which the sub-fund is denominated.

20

Where derivatives are used, they must be easily transferable and liquid instruments. Using derivatives doesnot, therefore, have a negative impact on liquidity risk. The use of derivatives may, however, affect the spread ofthe portfolio across regions, sectors or themes. Consequently, there may be an impact on concentration risk.Derivatives may not be used to protect capital, either fully or partially. They neither increase nor decreasecapital risk. In addition, using derivatives has no negative impact on credit risk, settlement risk, custodyrisk, flexibility risk or inflation risk or risk dependent on external factors.

The UCITS may conclude contracts that entail a credit risk in respect of issuers of debt instruments. Creditrisk is the risk that the issuer of the debt instrument will default. This credit risk relates to parties whosecreditworthiness at the time the contract is concluded is equal to that of the issuers whose debt instrumentsthe UCITS can hold directly. Credit derivatives may possibly be used both to carry out the investmentobjectives and to cover the credit risk, but solely within the existing risk profile and without implying anyshift to less creditworthy debtors than those the UCITS can invest in.

Strategy selectedAt any time, at least 75% of the assets are invested in the shares of companies that that operate on asustainable basis in the alternative energy sector. These companies have to realize a substantial proportion oftheir turnover in this sector. The companies have to satisfy a number of basic criteria regarding the environment, human rights, the trade andmanufacture of arms, and nuclear energy. The basic criteria are set out by KBC Asset Management in co-operation with the Independent Environmental Advisory Committee. They may also change the method used toperform the sustainability screening, based on new trends in society. The shares are screened by KBC Asset Management’s Sustainable and Socially Responsible InvestmentDepartment and the independent Environmental Advisory Committee.

Volatility of the net asset value

The volatility of the net asset value may be high due to the composition of the portfolio.

Securities Financing Transactions (SFTs)The sub-fund may not lend any financial instruments.

General strategy for hedging the exchange riskA more detailed explanation can be found in this report's General information on the Bevek under ‘Information forshareholders – 1.2.1.2. General strategy for hedging the exchange rate risk’.

Social, ethical and environmental aspectsA more detailed explanation can be found in this report's General information on the Bevek under ‘Information forshareholders – 1.2.1.3. Social, ethical and environmental aspects

2.1.4. Financial portfolio managementThe intellectual management, with the exception of the sustainability screening described in the prospectus and thecreation of the sub-fund and its maintenance in terms of the technical, product-specific and legal aspects has beendelegated by the management company to KBC Fund Management Limited, Sandwith Street, Dublin 2, D02 X489,Ireland.

2.1.5. DistributorsKBC Asset Management S.A., 4, Rue du Fort Wallis, L-2714 Luxembourg.

2.1.6. Index and benchmarkNot applicable.

2.1.7. Policy pursued during the financial yearWe refer to the General information on the SICAV of this report under '1.2.2. General overview of the markets' for areview of the market.

2.1.8. Future policyWe refer to the General information on the SICAV of this report under '1.2.2. General overview of the markets' for anoverview of the outlook.

21

2.1.9. Synthetic risk and reward indicator (SRRI)Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk)Institutional B Shares: 5 on a scale of 1 (lowest risk) to 7 (highest risk)

A more detailed explanation can be found in this report's General information on the Bevek under ‘Information forshareholders – 1.2.1.4. Synthetic risk and reward indicator’

The synthetic risk indicator gives an idea of the risk associated with investing in an undertaking for collectiveinvestment or a sub-fund. It measures risk on a scale of zero (least risk) to seven (most risk).

22

2.2. Balance sheet

Balance sheet layout29/02/2020

(in the currency of the sub-fund)

28/02/2019(in the currency of the sub-

fund)

TOTAL NET ASSETS 42,252,662.48 36,404,149.58II. Securities, money market instruments,


a) Shares 42,005,164.74 36,395,170.01IV. Receivables and payables within one

yearA. Receivables

a) Accounts receivable 7,417.29 0.38B. Payables

a) Accounts payable (-) -55,418.96c) Borrowings (-) -97,277.07

V. Deposits and cash at bank and in handA. Demand balances at banks 336,303.10 133,728.84VI. Accruals and deferralsB. Accrued income 9,113.11 21,177.87C. Accrued expense (-) -49,916.80 -48,650.45

TOTAL SHAREHOLDERS' EQUITY 42,252,662.48 36,404,149.58A. Capital 36,807,008.57 36,468,049.07B. Income equalization 1,641.32 -4,960.17D. Result of the period 5,444,012.59 -58,939.32

23

2.3. Profit and loss accountIncome Statement

29/02/2020(in the currency of the fund)



a) Shares 5,575,121.47 -577,131.54D. Other securities 7,894.75

G. Receivables, deposits, cash at bank and inhand and payables 0.01

H. Foreign exchange positions andtransactionsa) Derivative financial instruments Futures and forward contracts -0.01b) Other foreign exchange positions andtransactions 26,826.06 541,252.43

Det.section I gains and losses oninvestmentsRealised gains on investments 3,280,790.39 1,444,401.19Unrealised gains on investments 2,489,318.26 -1,361,767.34Realised losses on investments -704,222.38 -303,124.46Unrealised losses on investments 536,061.25 192,506.26

II. Investment income and expensesA. Dividends 155,935.27 252,315.89B. Interests

b) Cash at bank and in hand and deposits 1,121.93 694.30C. Interest on borrowings (-) -418.11 -510.87III. Other income


1,516.41 1,979.20


A. Investment transaction and delivery costs(-) -15,910.71 -8,296.15


a) Financial management Classic Shares -226,807.72 -184,123.93 Institutional B Shares -15,947.58 -62,262.87b) Administration and accountingmanagement -20,436.32 -17,357.13

E. Administrative expenses (-) -998.67 -1,000.00F. Formation and organisation expenses (-) -1,452.51 -1,688.90

G. Remuneration, social security charges andpension -323.78 -438.40

H. Services and sundry goods (-) -5,020.47 -2,815.03J. Taxes

Classic Shares -16,198.25 -8,227.67 Institutional B Shares -411.44 -62.17

K. Other expenses (-) -4,531.81 887.52Income and expenditure for the periodSubtotal II + III + IV -157,934.93 -30,954.97

V. Profit (loss) on ordinary activitiesbefore tax 5,444,012.59 -58,939.32

VII. Result of the period 5,444,012.59 -58,939.32

24


2.4.1. Composition of the assets of KBC Eco Fund Alternative EnergyName Quantity on

29/02/2020Currency Price in

currencyEvaluation

(in the currency ofthe sub-fund)

%owned by

UCI

%portfolio

%Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

INFIGEN ENERGY - 647,390.00 AUD 0.640 243,196.33 0.58 0.58

Austria

ANDRITZ AG - 11,249.00 EUR 31.920 359,068.08 0.86 0.85 ZUMTOBEL AG - 35,279.00 EUR 7.200 254,008.80 0.61 0.60

Belgium

BEKAERT - 26,396.00 EUR 19.490 514,458.04 1.23 1.22 ELIA SYSTEM OPERATOR - 10,698.00 EUR 90.100 963,889.80 2.30 2.28 UMICORE - 11,839.00 EUR 37.770 447,159.03 1.07 1.06

Brazil

SAO MARTINHO SA - 198,055.00 BRL 26.490 1,058,649.20 2.52 2.51

British Virgin Islands

RENESOLA LTD -_ADR 27,305.00 USD 1.310 32,563.66 0.08 0.08

Canada

BALLARD POWER SYSTEMS - 84,944.00 USD 8.900 688,243.98 1.64 1.63 HYDRO ONE LTD - 70,175.00 CAD 26.940 1,282,135.58 3.06 3.04 INNERGEX RENEWABLE ENERGY INC - 86,303.00 CAD 19.680 1,151,873.87 2.74 2.73 POLARIS INFRASTRUCTURE INC - 35,722.00 CAD 15.250 369,453.30 0.88 0.87 5N PLUS INC - 16,902.00 CAD 2.040 23,384.18 0.06 0.06

China

DONGFANG ELECTRIC CORP LTD - 403,400.00 HKD 4.340 204,520.98 0.49 0.48 GCL POLY ENERGY HOLDINGS LTD - 7,453,400.00 HKD 0.370 322,157.61 0.77 0.76

Denmark

NOVOZYMES A/S B 14,634.00 DKK 343.100 671,882.65 1.60 1.59 VESTAS WINDS SYSTEMS - 6,804.00 DKK 649.400 591,270.55 1.41 1.40

France

LEGRAND (PAR) 7,655.00 EUR 69.020 528,348.10 1.26 1.25 NEXANS SA (PAR) 14,845.00 EUR 41.200 611,614.00 1.46 1.45

Germany

AIXTRON AG - 36,240.00 EUR 9.152 331,668.48 0.79 0.79 ENCAVIS AG - 95,309.00 EUR 10.480 998,838.32 2.38 2.36 ENERGIEKONTOR AG - 6,528.00 EUR 20.000 130,560.00 0.31 0.31 MANZ AG - 6,899.00 EUR 16.800 115,903.20 0.28 0.27 NORDEX AG - 32,484.00 EUR 10.630 345,304.92 0.82 0.82 OSRAM LICHT AG - 11,368.00 EUR 40.730 463,018.64 1.10 1.10 PNE AG - 22,427.00 EUR 4.210 94,417.67 0.23 0.22 SMA SOLAR TECHNOLOGY AG - 14,575.00 EUR 30.640 446,578.00 1.06 1.06 WACKER CHEMIE AG - 6,041.00 EUR 63.480 383,482.68 0.91 0.91

Greece

TERNA ENERGY SA - 52,434.00 EUR 7.540 395,352.36 0.94 0.94

Hong Kong

CHINA EVERBRIGHT INTL - 791,703.00 HKD 5.190 480,000.72 1.14 1.14 WASION HOLDINGS LTD - 438,000.00 HKD 3.150 161,174.71 0.38 0.38

India

PRAJ INDUSTRIES LTD - 408,375.00 INR 95.050 489,654.01 1.17 1.16

Italy

FALK RENEWABLES SPA - 189,736.00 EUR 5.860 1,111,852.96 2.65 2.63 TERNA RETE ELETTRICA NAZIONALE - 184,632.00 EUR 5.990 1,105,945.68 2.63 2.62

Japan

KYOCERA - 10,700.00 JPY 6,796.000 613,728.52 1.46 1.45 NIPPON SHEET GLASS CO LTD - 88,000.00 JPY 485.000 360,216.47 0.86 0.85 WEST HOLDINGS CORP - 92,690.00 JPY 1,197.000 936,410.32 2.23 2.22

Netherlands

ADVANCED METALLURGICAL GROUP - 18,559.00 EUR 21.000 389,739.00 0.93 0.92

25

ALFEN BEHEER BV - 6,878.00 EUR 26.650 183,298.70 0.44 0.43

New Zealand

MERIDIAN ENERGY LTD - 211,155.00 NZD 4.620 550,845.53 1.31 1.30

Norway

REC SILICON ASA - 811,045.00 NOK 3.900 304,016.21 0.72 0.72 SCATEC SOLAR ASA - 53,115.00 NOK 161.200 822,942.35 1.96 1.95

South Korea

OCI CO LTD - 7,997.00 KRW 49,250.000 295,226.62 0.70 0.70

Spain

ABENGOA S.A. B SHARES 40,847,142.00 EUR 0.009 359,454.85 0.86 0.85 AUDAX RENOVABLES SA - 176,230.00 EUR 2.380 419,427.40 1.00 0.99 EDP RENOVAVEIS SA - 64,037.00 EUR 12.200 781,251.40 1.86 1.85 RED ELECTRICA DE ESPANA - 68,976.00 EUR 17.345 1,196,388.72 2.85 2.83 SIEMENS GAMESA RENEWABLE ENERGY SA - 36,810.00 EUR 14.525 534,665.25 1.27 1.26 SOLARIA ENERGIA Y MEDIO AMBIENTE SA - 96,451.00 EUR 8.665 835,747.92 1.99 1.98

Switzerland

ABB LTD - 28,533.00 CHF 20.810 558,452.58 1.33 1.32 LANDIS+GYR GROUP AG - 6,260.00 CHF 78.900 464,534.65 1.11 1.10 MEYER BURGER TECHNOLOGY AG MEYER BURGER

TECHNOLOGY AG784,055.00 CHF 0.276 203,527.17 0.49 0.48

OC OERLIKON CORP AG (NOM)20CHF 52,713.00 CHF 8.965 444,462.18 1.06 1.05

Taiwan

E-TON SOLAR TECH CO LTD - 180,334.00 TWD 1.470 7,970.14 0.02 0.02 GLOBALWAFERS CO LTD - 44,248.00 TWD 409.500 544,776.74 1.30 1.29 MOTECH INDUSTRIES INC - 1,255,000.00 TWD 6.960 262,617.69 0.63 0.62 SINO-AMERICAN SILICON PRODUCTS - 173,000.00 TWD 105.000 546,143.05 1.30 1.29

Thailand

ENERGY ABSOLUTE PCL - 495,700.00 THB 39.000 557,346.77 1.33 1.32

U.K.

CERES POWER HOLDINGS PLC - 67,120.00 GBP 3.870 302,047.70 0.72 0.72 DIALIGHT PLC - 26,042.00 GBP 2.140 64,803.84 0.15 0.15 JOHNSON MATTHEY PLC - 13,445.00 GBP 25.110 392,572.74 0.94 0.93 SPIRAX-SARCO ENGINEERING PLC - 5,186.00 GBP 83.950 506,250.93 1.21 1.20

U.S.A.

ADVANCED ENERGY INDUSTRIES - 7,138.00 USD 59.475 386,483.27 0.92 0.92 ALBEMARLE CORP. - 6,513.00 USD 81.850 485,310.26 1.16 1.15 AMERESCO INC - 30,279.00 USD 22.540 621,319.73 1.48 1.47 AMERICAN SUPERCONDUCTOR CORP - 42,614.00 USD 6.850 265,743.46 0.63 0.63 APPLIED MATERIALS - 8,239.00 USD 58.120 435,933.07 1.04 1.03 CANADIAN SOLAR INC - 18,458.00 USD 20.400 342,795.03 0.82 0.81 CREE RESEARCH INC - 7,768.00 USD 44.730 316,320.85 0.75 0.75 ENERSYS - 7,305.00 USD 61.580 409,524.24 0.98 0.97 ENPHASE ENERGY INC - 11,975.00 USD 48.970 533,857.48 1.27 1.26 ESCO TECHNOLOGIES INC - 6,763.00 USD 90.920 559,781.47 1.33 1.33 FIRST SOLAR INC - 5,642.00 USD 45.770 235,089.75 0.56 0.56 FUELCELL ENERGY LTD - 573,155.00 USD 1.950 1,017,481.22 2.42 2.41 ITRON INC - 6,233.00 USD 75.840 430,343.41 1.02 1.02 JINKOSOLAR HOLDING CO LTD - 16,129.00 USD 22.840 335,369.26 0.80 0.79 MYR GROUP INC/DELAWARE - 17,455.00 USD 25.510 405,368.52 0.97 0.96 ORMAT TECHNOLOGIES INC - 12,785.00 USD 69.680 811,014.43 1.93 1.92 PATTERN ENERGY GROUP INC - 38,856.00 USD 27.050 956,852.66 2.28 2.27 PLUG POWER INC - 167,669.00 USD 4.340 662,463.89 1.58 1.57 SUNPOWER CORP -A- 25,192.00 USD 8.570 196,545.53 0.47 0.47 TESLA INC - 1,665.00 USD 667.990 1,012,520.69 2.41 2.40 VEECO INSTRUMENTS INC - 34,999.00 USD 13.390 426,634.45 1.02 1.01 VMWARE INC CLASS A - 3,171.00 USD 120.520 347,916.54 0.83 0.82 Total shares 42,005,164.74 100.00 99.41TOTAL SECURITIES PORTFOLIO 42,005,164.74 100.00 99.41

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 4,941.17 AUD 1.000 2,900.29 0.01 KBC GROUP CAD 717.29 CAD 1.000 486.46 0.00 KBC GROUP CHF 5,850.98 CHF 1.000 5,502.95 0.01 KBC GROUP DKK 56,084.77 DKK 1.000 7,505.07 0.02 KBC GROUP EURO 275,298.05 EUR 1.000 275,298.05 0.65 KBC GROUP GBP 3.29 GBP 1.000 3.83 KBC GROUP HKD 1,166.54 HKD 1.000 136.27 KBC GROUP JPY 2,122,567.00 JPY 1.000 17,914.33 0.04 KBC GROUP NOK 63,616.19 NOK 1.000 6,114.41 0.01 KBC GROUP NZD 33,369.63 NZD 1.000 18,842.47 0.05 KBC GROUP SEK 343.23 SEK 1.000 32.23 KBC GROUP USD 1,720.99 USD 1.000 1,566.74 0.00 Total demand accounts 336,303.10 0.80

26

TOTAL CASH AT BANK AND IN HAND 336,303.10 0.80

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 7,417.29 EUR 1.000 7,417.29 0.02 Total receivables 7,417.29 0.02

Payables

Belgium

KBC GROUP EUR PAYABLE -55,418.96 EUR 1.000 -55,418.96 -0.13 Payables -55,418.96 -0.13TOTAL RECEIVABLES AND PAYABLES -48,001.67 -0.11

OTHER Interest receivable EUR 9,113.11 0.02 Expenses payable EUR -49,916.80 -0.12TOTAL OTHER -40,803.69 -0.10

TOTAL NET ASSETS 42,252,662.48 100.00

Geographic breakdown (as a % of securities portfolio)31/08/2018 28/02/2019 31/08/2019 29/02/2020

Australia 0.67 0.55 0.64 0.58Austria 3.06 1.93 2.67 1.45Belgium 2.59 3.67 3.67 5.22Brazil 1.24 1.42 1.66 2.50Canada 6.39 6.86 8.74 8.32Switzerland 3.13 3.41 3.47 3.95China 0.34 0.78 0.91 1.24Germany 7.96 7.53 7.69 7.83Denmark 4.40 3.17 3.07 2.99Spain 7.68 8.25 9.35 9.75France 4.62 5.06 3.22 2.70U.K. 7.10 7.70 6.16 2.99Greece 0.00 0.78 0.90 0.93Hong Kong 2.62 3.96 3.17 1.51India 0.68 0.65 0.76 1.16Ireland 1.48 1.08 1.06 0.00Italy 2.81 3.05 2.93 5.24Japan 3.85 3.42 4.52 4.51South Korea 1.38 1.27 1.22 0.71Netherlands 2.88 2.28 2.49 1.35Norway 0.31 0.33 0.39 2.67New Zealand 0.18 0.20 0.23 1.30Philippines 0.80 0.00 0.00 0.00Portugal 1.89 2.07 1.99 0.00Thailand 0.00 0.00 0.00 1.32Taiwan 2.79 2.05 2.53 3.22U.S.A. 27.68 28.53 26.56 26.48British Virgin Islands 0.00 0.00 0.00 0.08Guernsey The Channel Islands 1.47 0.00 0.00 0.00TOTAL 100.00 100.00 100.00 100.00

Sector breakdown (as a % of securities portfolio)31/08/2018 28/02/2019 31/08/2019 29/02/2020

Cyclicals 58.04 56.94 55.11 50.69Consum(cycl) 3.80 3.33 5.53 6.66Cons.goods 1.90 2.61 1.66 2.50Financials 2.79 3.76 1.21 3.03Technology 11.85 11.36 10.14 13.02Utilities 21.62 22.00 26.35 24.10TOTAL 100.00 100.00 100.00 100.00

27

Currency breakdown (as a % of net assets)31/08/2018 28/02/2019 31/08/2019 29/02/2020

AUSTRALIAN DOLLAR 0.67 0.55 0.64 0.59BRASILIAN REAL 1.24 1.42 1.66 2.50CANADIAN DOLLAR 5.64 6.08 7.52 6.69SWISS FRANC 3.19 3.48 3.50 3.96DANISH KRONE 4.44 3.20 3.14 3.01EURO 34.71 35.34 35.73 34.34POUND STERLING 8.19 9.20 6.16 2.99HONG KONG DOLLAR 2.96 4.78 4.09 2.75INDIE RUPEE 0.68 0.65 0.76 1.16JAPANESE YEN 3.88 3.49 4.55 4.55KOREAN WON 1.38 1.27 1.22 0.71NORWEGIAN KRONE 0.32 0.34 0.40 2.68NEW ZEALAND DOLLAR 0.19 0.23 0.27 1.34PESO 0.80 0.00 0.00 0.00THAI BATH 0.00 0.00 0.00 1.32NEW TAIWAN DOLLAR 2.79 2.05 2.53 3.22US DOLLAR 28.92 27.92 27.83 28.19TOTAL 100.00 100.00 100.00 100.00

2.4.2. Changes in the composition of the assets of KBC Eco FundAlternative Energy (in the currency of the sub-fund)

1st half of yearPurchases 12,632,327.54Sales 13,470,606.08Total 1 26,102,933.62Subscriptions 3,385,285.37Redemptions 3,507,040.15Total 2 6,892,325.52Monthly average oftotal assets

40,911,514.67

Turnover rate 46.96%

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of totalsubscriptions and redemptions) is also compared to the average net assets at the beginning and end of the period.A figure close to 0% implies that the transactions relating to the securities or transactions relating to the assets(excluding deposits and cash) in a given period only involve subscriptions and redemptions.A negative percentage shows that subscriptions and redemptions entailed few, if any, transactions in the portfolio.Active asset management may result in high turnover rates (monthly percentage >50%).

The detailed list of transactions can be consulted free of charge at the company designated as financial service:CBC Banque SA, Avenue Albert 1er 60, B-5000 NamurKBC Bank NV, Havenlaan 2, B-1080 Brussels

2.4.3. Amount of commitments in respect of financial derivativespositions

Nil

2.4.4. Changes in the number of subscriptions and redemptions and thenet asset value

28

Classic SharesPeriod Change in number of shares in circulation

YearSubscriptions Redemptions End of period

Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 7,736.22 6,039.00 17,076.61 1,960.00 78,108.77 22,408.48 100,517.242019 - 08* 7,100.98 2,361.00 9,550.88 2,297.50 75,658.86 22,471.98 98,130.842020 - 02* 7,378.99 3,749.00 5,230.55 1,168.38 77,807.31 25,052.60 102,859.91

Period Amounts received and paid by the UCITS(in the currency of the class)

Year Subscriptions RedemptionsCapitalization Distribution Capitalization Distribution

2018 - 08* 2,171,902.96 1,418,181.39 4,789,878.74 457,442.102019 - 08* 1,947,383.61 526,000.90 2,593,077.37 497,077.042020 - 02* 2,417,767.74 976,666.00 1,702,109.50 299,413.47

Period Net asset valueEnd of period (in the currency of the class)

Year Of the class Of one shareCapitalization Distribution

2018 - 08* 26,684,436.46 276.50 227.032019 - 08* 26,816,887.83 286.23 229.662020 - 02* 31,988,092.84 328.11 257.81

*The financial year does not coincide with the calender year.

Institutional B SharesPeriod Change in number of shares in circulation


Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 35,851.10 777.04 38,616.07 38,616.072019 - 08* 2,699.06 5,888.00 35,427.13 35,427.132020 - 02* 4,628.07 30,799.06 30,799.06



2018 - 08* 9,701,974.98 217,744.532019 - 08* 688,427.30 1,580,712.292020 - 02* 1,516,417.91



2018 - 08* 10,687,687.27 276.772019 - 08* 10,233,049.48 288.852020 - 02* 10,264,569.64 333.28


29

2.4.5. Performance figuresClassic Shares

BE0175279976KBC Eco Fund Alternative Energy Classic Shares DIS

Annual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012# 2012-2013# 2013-2014# 2014-2015# 2015-2016# 2016-2017 2017-2018 2018-2019 2019-2020 in EUR -0.8% -27.6% 2.2% 22.8% 6.3% -12.0% 17.0% 8.3% -0.8% 18.7%

Classic SharesBE0175280016

KBC Eco Fund Alternative Energy Classic Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012# 2012-2013# 2013-2014# 2014-2015# 2015-2016# 2016-2017 2017-2018 2018-2019 2019-2020 in EUR -0.7% -27.6% 2.2% 22.8% 6.3% -12.0% 17.0% 8.4% -0.8% 18.7%

30

CapDiv ISIN Code Curr

ency 1 year 3 years 5 years 10 years Since Launch*

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

DIS BE0175279976 EUR 18.68% 8.44% 5.59% 2.31% 31/10/2000 -2.17%

CAP BE0175280016 EUR 18.71% 8.46% 5.60% 2.32% 31/10/2000 -2.16%

Risk warning: Past performance is not a guide to future performance.* Return on annual basis.

Classic Shares• The bar chart shows the performance for full financial years(period of 12 months prior to the half-yearly

closing).• The figures do not take account of any restructuring..• Calculated in EUR.• The return is calculated as the change in the net asset value between two dates expressed

as a percentage. In the case of units that pay dividends, the dividend is incorporatedgeometrically in the return.

• Calculation method for date D, where NAV stands for net asset value:Capitalisation units (CAP)Return on date D over a period of X years : [NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-XReturn on date D since the start date S of the unit: [NIW(D) / NIW(S)] ^ [1 / F] - 1 where F = 1 if the unit has existed for less than one year on date D where F = (D-S) / 365.25 if the unit has existed for longer than one year on date DDistribution units (DIV)Return on date D over a period of X years : [ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-XReturn on date D since the start date S of the unit: [ C * NIW(D) / NIW(S)] ^ [1 / F] - 1 where F = 1 if the unit has existed for less than one year on date D where F = (D-S) / 365.25 if the unit has existed for longer than one year on date D where C is a factor that is determined for all N dividends between the calculation date D and the reference date.For dividend i on date Di with value Wi: Ci = [Wi / NIW(Di)] + 1 i = 1 ... N from whichC = C0 * .... * CN.

• If the interval between the two dates exceeds one year, the ordinary return calculation is converted into areturn on an annual basis by taking the nth square root of 1 plus the total return of the unit..

• The return figures shown above do not take account of the fees and charges associated with the issue andredemption of units.

• These are the performance figures for capitalisation and distribution shares

31

Institutional B SharesBE6228924690

KBC Eco Fund Alternative Energy Institutional B Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012# 2012-2013# 2013-2014# 2014-2015# 2015-2016# 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 8.4% -0.6% 20.3%

# There is insufficient data for this year to give investors a useful indication of past performance.

32



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

CAP BE6228924690 EUR 20.27% 9.02% % % 25/11/2011


Institutional B Shares• The bar chart shows the performance for full financial years(period of 12 months prior to the half-yearly


as a percentage.• Calculation method for date D, where NAV stands for net asset value:

Capitalisation units (CAP)Return on date D over a period of X years : [NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-XReturn on date D since the start date S of the unit: [NIW(D) / NIW(S)] ^ [1 / F] - 1 where F = 1 if the unit has existed for less than one year on date D where F = (D-S) / 365.25 if the unit has existed for longer than one year on date D



• These are the performance figures for capitalisation shares.

33

2.4.6. CostsOngoing Charges and Transaction costs:Classic Shares Distribution :

Ongoing Charges : 1.816%Transaction costs : 0.066%

Classic Shares Capitalisation :Ongoing Charges : 1.787%Transaction costs : 0.066%

Institutional B Shares Capitalisation :Ongoing Charges : 0.489%Transaction costs : 0.066%

Percentage calculated at reporting date: 29 February 2020 (period of 12 months prior to the half-yearly closing).

A more detailed explanation with respect to the method of calculating ongoing charges and the relevant exclusionscan be found in this report's General information on the Bevek under ‘Information for shareholders – 1.2.1.5.Ongoing charges’More information on how transaction costs are calculated: the transaction costs are not included in the ongoingcharges, but are instead shown separately. Moreover, this does not fully reflect the actual transaction costs as onlythe explicit transaction costs are given.

Existence of Commission Sharing AgreementsA more detailed explanation can be found in this report's General information on the Bevek under ‘Information forshareholders – 1.2.1.7. Commission Sharing Agreements’.

No CSA accrual during this period.

Existence of fee sharing agreements and rebatesThe management company has shared 46,72% of its fee with the distributor, and institutional and/or professionalparties.If the management company invests the assets of the undertaking for collective investment in units of undertakingsfor collective investment that are not managed by an entity of KBC Groep NV, and receives a fee for doing so, it willpay this fee to the undertaking for collective investment.Fee-sharing does not affect the amount of the management fee paid by a sub-fund to the management company.This management fee is subject to the limitations laid down in the articles of association. The limitations may onlybe amended after approval by the General Meeting.

2.4.7. Notes to the financial statements and other dataClassic Shares

Fee for managing the investmentportfolio

Max 1.50% per year calculated on the basis of the average total netassets of the sub-fund, no management fee is charged onassets invested in underlying undertakings for collectiveinvestment managed by a financial institution of the KBCgroup.

KBC Fund Management Limited receives a fee from themanagement company of max. 1,50% per year, calculatedon that part of the portfolio that it manages, without the totalmanagement fee received by the management companybeing exceeded.

Administration fee 0.10% per year calculated on the basis of the average total netassets of the sub-fund.

Custodian’s fee Max 0.04% per year calculated on the basis of the value of thesecurities held in custody by the custodian on the lastbanking day of the preceding calendar year, except onthose assets invested in underlying undertakings forcollective Investment managed by a financial institution ofthe KBC group.

Fee paid to the bevek's statutory auditor see the 'Information concerning the Bevek - G. Fees and charges regarding the Bevek’for this non-structured sub-fund

Annual tax see the 'Information concerning the Bevek - H. Tax treatment’

Institutional B SharesFee for managing the investment Max 1.50% per year calculated on the basis of the average total net

34

portfolio assets of the sub-fund, no management fee is charged onassets invested in underlying undertakings for collectiveinvestment managed by a financial institution of the KBCgroup.






Exercising voting rightsIf necessary, relevant and in the interest of the shareholders, the management company will exercise the votingrights attached to the shares in the Bevek’s portfolio.The management company will adhere to the following criteria when determining how it stands relative to the itemson the agenda that are put to the vote:- Shareholder value may not be adversely affected.- Corporate governance rules, especially with regard to the rights of minority shareholders, must be respected.- The minimum standards with regard to sustainable business and corporate social responsibility must be met.The list of companies for which voting rights are exercised is available at the registered office of the Bevek.

35


Table of contents

2. Information on KBC Eco Fund Climate Change



2.2. Balance sheet



2.4.1. Composition of the assets of KBC Eco Fund Climate Change2.4.2. Changes in the composition of the assets KBC Eco Fund Climate Change (in the


36

2. Information on KBC Eco Fund ClimateChange2.1. Management report2.1.1. Launch date and subscription price

Classic Shares DistributionLaunch date: 2 February 2007Initial subscription price: 500 EURCurrency: EURClassic Shares CapitalisationLaunch date: 2 February 2007Initial subscription price: 500 EURCurrency: EURInstitutional B Shares CapitalisationLaunch date: 25 November 2011Initial subscription price: 296.94 EURCurrency: EUR












38



Strategy selectedAt any time, at least 75% of the assets are invested, directly or indirectly, in companies that operate on asustainable basis in combating climate change and/or focus on reducing greenhouse gas emissions. Thesecompanies have to realize a substantial proportion of their turnover in this sector. The companies have to satisfy a number of basic criteria regarding the environment, human rights, the trade andmanufacture of arms, and nuclear energy. The basic criteria are set out by KBC Asset Management in co-operation with the Independent Environmental Advisory Committee. They may also change the method used toperform the sustainability screening, based on new trends in society. Screening is carried out by KBC Asset Management’s Sustainable and Socially Responsible InvestmentDepartment and the independent Environmental Advisory Committee.











39




40

2.2. Balance sheet




fund)




yearA. Receivables

a) Accounts receivable 42.30B. Payables

a) Accounts payable (-) -116,005.75c) Borrowings (-) -0.46 -1,037.52


TOTAL SHAREHOLDERS' EQUITY 27,735,175.49 23,758,336.35A. Capital 26,888,817.34 24,154,658.26B. Income equalization 13,904.02 -4,089.06D. Result of the period 832,454.13 -392,232.85

41





a) Shares 820,130.80 -709,265.38D. Other securities 5,515.22

H. Foreign exchange positions andtransactionsb) Other foreign exchange positions andtransactions 110,459.09 351,160.87

Det.section I gains and losses oninvestmentsRealised gains on investments 2,294,103.85 483,341.87Unrealised gains on investments -711,733.32 -354,493.29Realised losses on investments -1,268,361.15 -49,140.32Unrealised losses on investments 616,580.51 -432,297.54


b) Cash at bank and in hand and deposits 822.85 408.61C. Interest on borrowings (-) -501.36 -356.43III. Other income


152.14




a) Financial management Classic Shares -192,585.10 -163,267.24 Institutional B Shares -1,943.82 -8,090.51b) Administration and accountingmanagement -13,486.88 -11,545.32

E. Administrative expenses (-) -1,000.12 -1,000.00F. Formation and organisation expenses (-) -1,402.74 -1,529.92

G. Remuneration, social security charges andpension -215.21 -294.68


Classic Shares -12,115.03 -4,855.16 Institutional B Shares -5.59 -7.99

K. Other expenses (-) -4,245.71 1,794.27Income and expenditure for the periodSubtotal II + III + IV -98,135.75 -39,643.56

V. Profit (loss) on ordinary activitiesbefore tax 832,454.13 -392,232.85

VII. Result of the period 832,454.13 -392,232.85

42


2.4.1. Composition of the assets of KBC Eco Fund Climate ChangeName Quantity on


currencyEvaluation


%owned by

UCI

%portfolio

%Net

assets

NET ASSETS


Shares


Belgium

C.F.E. (BRU) 3,874.00 EUR 79.300 307,208.20 1.11 1.11 UMICORE - 6,745.00 EUR 37.770 254,758.65 0.92 0.92

Canada

CANADIAN NATIONAL RAILWAY CO - 6,739.00 CAD 112.500 514,164.30 1.86 1.85 CANADIAN PACIFIC RAILWAY LTD - 2,338.00 CAD 332.670 527,487.39 1.91 1.90 HYDRO ONE LTD - 50,527.00 CAD 26.940 923,155.89 3.35 3.33 WESTPORT FUEL SYSTEMS INC - 11,000.00 CAD 2.530 18,874.14 0.07 0.07 5N PLUS INC - 24,812.00 CAD 2.040 34,327.79 0.12 0.12

China

BYD CO LTD - 47,549.00 HKD 47.700 264,954.93 0.96 0.96 CHINA COMMUNICATIONS CONST-H - 385,000.00 HKD 5.810 261,305.83 0.95 0.94 CHINA RAILWAY CONSTRUCTION COR - 302,000.00 HKD 8.920 314,690.80 1.14 1.14 CRRC CORP LTD - 454,000.00 HKD 5.000 265,178.37 0.96 0.96

Denmark

NOVOZYMES A/S B 8,322.00 DKK 343.100 382,083.33 1.38 1.38 ROCKWOOL INTERNATIONAL A/S - 1,634.00 DKK 1,561.000 341,322.26 1.24 1.23 VESTAS WINDS SYSTEMS - 3,860.00 DKK 649.400 335,435.67 1.21 1.21

Finland

LASSILA & TIKANOJA OYJ - 21,988.00 EUR 15.020 330,259.76 1.20 1.19

France

ALSTOM - 6,713.00 EUR 44.490 298,661.37 1.08 1.08 CIE DE ST-GOBAIN - 8,032.00 EUR 31.600 253,811.20 0.92 0.92 LEGRAND (PAR) 4,764.00 EUR 69.020 328,811.28 1.19 1.19 VALEO - 8,353.00 EUR 22.780 190,281.34 0.69 0.69

Germany

CENTROTEC SUSTAINABLE AG - 9,932.00 EUR 14.600 145,007.20 0.53 0.52 CONTINENTAL AG - 2,102.00 EUR 101.620 213,605.24 0.77 0.77 ELRINGKLINGER AG - 35,469.00 EUR 6.040 214,232.76 0.78 0.77 HELLA GMBH + CO.KGAA - 6,098.00 EUR 37.340 227,699.32 0.82 0.82 SGL CARBON AG - 62,869.00 EUR 3.428 215,514.93 0.78 0.78 SMA SOLAR TECHNOLOGY AG - 7,873.00 EUR 30.640 241,228.72 0.87 0.87 TRAFFIC SYSTEM SE - 5,252.00 EUR 22.000 115,544.00 0.42 0.42 VOSSLOH AG (FRA) 6,354.00 EUR 35.800 227,473.20 0.82 0.82

Hong Kong

CHINA EVERBRIGHT INTL - 543,781.00 HKD 5.190 329,688.37 1.19 1.19 MTR CORPORATION - 70,500.00 HKD 43.850 361,136.15 1.31 1.30 ZHUZHOU CSR TIMES ELECTRIC CO - 75,300.00 HKD 27.250 239,703.14 0.87 0.86

Ireland

KINGSPAN GROUP PLC - 6,478.00 EUR 57.300 371,189.40 1.34 1.34

Italy

TERNA RETE ELETTRICA NAZIONALE - 129,498.00 EUR 5.990 775,693.02 2.81 2.80

Japan

CENTRAL JAPAN RAILWAY - 2,600.00 JPY 17,780.000 390,161.37 1.41 1.41 EAST JAPAN RAILWAY - 6,900.00 JPY 8,319.000 484,461.62 1.75 1.75 KYOCERA - 6,900.00 JPY 6,796.000 395,768.86 1.43 1.43 NGK INSULATORS - 24,000.00 JPY 1,697.000 343,741.72 1.24 1.24 NIPPON SHEET GLASS CO LTD - 63,200.00 JPY 485.000 258,700.92 0.94 0.93 WEST JAPAN RAILWAY - 8,500.00 JPY 7,618.000 546,511.18 1.98 1.97

Malaysia

TALIWORKS CORP BHD - 520,600.00 MYR 0.830 93,326.37 0.34 0.34

Singapore

MOYA HOLDINGS ASIA LTD - 3,645,900.00 SGD 0.073 173,602.21 0.63 0.63 SIIC ENVIRONMENT HOLDINGS LTD - 442,500.00 SGD 0.245 70,714.26 0.26 0.26 SOUND GLOBAL LTD - 75,000.00 HKD 0.000 0.01

43

South Korea

SAMSUNG SDI CO LTD - 1,172.00 KRW 295,000.000 259,162.29 0.94 0.93 WOONGJIN COWAY CO LTD - 6,225.00 KRW 68,900.000 321,499.84 1.16 1.16

Spain

EDP RENOVAVEIS SA - 52,831.00 EUR 12.200 644,538.20 2.33 2.32 RED ELECTRICA DE ESPANA - 50,425.00 EUR 17.345 874,621.63 3.16 3.15 SIEMENS GAMESA RENEWABLE ENERGY SA - 19,324.00 EUR 14.525 280,681.10 1.02 1.01

Sweden

SWECO AB - 12,574.00 SEK 308.400 364,128.98 1.32 1.31

Switzerland

ABB LTD - 17,753.00 CHF 20.810 347,464.64 1.26 1.25 LANDIS+GYR GROUP AG - 3,877.00 CHF 78.900 287,699.82 1.04 1.04 OC OERLIKON CORP AG (NOM)20CHF 32,242.00 CHF 8.965 271,856.08 0.98 0.98

Taiwan

CLEANAWAY CO LTD - 120,000.00 TWD 159.000 573,653.14 2.08 2.07

Thailand

EASTERN WATER RESOURCES DEVELO - 970,300.00 THB 10.700 299,317.27 1.08 1.08 ENERGY ABSOLUTE PCL - 377,600.00 THB 39.000 424,559.49 1.54 1.53

U.K.

CERES POWER HOLDINGS PLC - 48,505.00 GBP 3.870 218,278.06 0.79 0.79 DIALIGHT PLC - 27,877.00 GBP 2.140 69,370.12 0.25 0.25 FIRSTGROUP PLC - 260,600.00 GBP 1.178 356,970.49 1.29 1.29 INVINITY ENERGY SYSTEMS PLC - 742,369.00 GBP 0.011 9,279.85 0.03 0.03 JOHNSON MATTHEY PLC - 8,149.00 GBP 25.110 237,937.91 0.86 0.86 RENEWI PLC - 722,462.00 GBP 0.360 302,433.66 1.09 1.09 SIG PLC - 288,717.00 GBP 0.631 211,843.11 0.77 0.76 SPIRAX-SARCO ENGINEERING PLC - 2,823.00 GBP 83.950 275,577.78 1.00 0.99

U.S.A.

AMERICAN SUPERCONDUCTOR CORP - 28,267.00 USD 6.850 176,274.71 0.64 0.64 APPLIED MATERIALS - 3,665.00 USD 58.120 193,918.52 0.70 0.70 APTIV PLC - 3,341.00 USD 78.110 237,576.14 0.86 0.86 BORGWARNER INC - 6,913.00 USD 31.600 198,871.86 0.72 0.72 CLEAN HARBORS INC - 5,854.00 USD 69.520 370,494.86 1.34 1.34 COVANTA HOLD CORP - 32,971.00 USD 13.360 401,012.85 1.45 1.45 CREE RESEARCH INC - 4,223.00 USD 44.730 171,964.85 0.62 0.62 CSX - 4,894.00 USD 70.450 313,880.74 1.14 1.13 DANAHER CORPORATION - 3,163.00 USD 144.580 416,319.85 1.51 1.50 DELPHI TECHNOLOGIES PLC - 16,890.00 USD 14.120 217,112.11 0.79 0.78 ECOLAB, INC. - 1,931.00 USD 180.450 317,218.76 1.15 1.14 ENERSYS - 4,336.00 USD 61.580 243,079.69 0.88 0.88 ENVISTA HOLDINGS CORP - 1,255.00 USD 25.380 28,997.13 0.11 0.11 ESCO TECHNOLOGIES INC - 3,669.00 USD 90.920 303,687.45 1.10 1.10 FUEL TECH INC - 40,394.00 USD 0.800 29,422.59 0.11 0.11 GREAT LAKES DREDGE & DOCK CORP - 37,975.00 USD 9.700 335,342.98 1.21 1.21 LINDSAY MANUFACTURING CO - 3,199.00 USD 99.030 288,403.63 1.04 1.04 NORFOLK STHN CP - 1,869.00 USD 182.350 310,266.42 1.12 1.12 PLUG POWER INC - 55,163.00 USD 4.340 217,950.22 0.79 0.79 REGAL-BELDIT CORP - 4,284.00 USD 77.640 302,799.18 1.10 1.09 REPUBLIC SERVICES INC. - 7,402.00 USD 90.260 608,224.79 2.20 2.19 TESLA INC - 302.00 USD 667.990 183,652.40 0.66 0.66 THERMO ELECTRONIC - 1,087.00 USD 290.800 287,768.77 1.04 1.04 UNION PACIFIC CORPORATION - 2,022.00 USD 159.810 294,174.35 1.06 1.06 VEECO INSTRUMENTS INC - 15,229.00 USD 13.390 185,640.05 0.67 0.67 VMWARE INC CLASS A - 1,954.00 USD 120.520 214,389.44 0.78 0.77 WASTE CONNECTIONS INC - 9,447.00 CAD 129.240 828,027.58 3.00 2.99 WASTE MANAGEMENT INC. - 4,791.00 USD 110.810 483,308.94 1.75 1.74 XYLEM INC/NY - 3,789.00 USD 77.340 266,777.06 0.97 0.96 Total shares 27,638,907.85 100.00 99.65TOTAL SECURITIES PORTFOLIO 27,638,907.85 100.00 99.65


Demand accounts

Belgium

KBC GROUP CAD 0.89 CAD 1.000 0.60 KBC GROUP CHF 0.46 CHF 1.000 0.43 KBC GROUP DKK 27,274.29 DKK 1.000 3,649.75 0.01 KBC GROUP EURO 37,929.83 EUR 1.000 37,929.83 0.14 KBC GROUP GBP 2,173.96 GBP 1.000 2,527.92 0.01 KBC GROUP HKD 531.52 HKD 1.000 62.09 KBC GROUP JPY 7,166.00 JPY 1.000 60.48 KBC GROUP NOK 20.95 NOK 1.000 2.01 KBC GROUP NZD -0.76 NZD 1.000 -0.43 KBC GROUP SEK -0.28 SEK 1.000 -0.03 KBC GROUP SGD 2.46 SGD 1.000 1.60 KBC GROUP USD 206,310.35 USD 1.000 187,819.52 0.68

44

Total demand accounts 232,053.77 0.84TOTAL CASH AT BANK AND IN HAND 232,053.77 0.84


Receivables

Belgium

KBC GROUP EUR RECEIVABLE 42.30 EUR 1.000 42.30 Total receivables 42.30

Payables

Belgium

KBC GROUP EUR PAYABLE -30,133.87 EUR 1.000 -30,133.87 -0.11 KBC GROUP TWD TE BETALEN -2,856,143.00 TWD 1.000 -85,871.88 -0.31 Payables -116,005.75 -0.42TOTAL RECEIVABLES AND PAYABLES -115,963.45 -0.42


TOTAL NET ASSETS 27,735,175.49 100.00


Austria 0.81 0.98 0.79 0.00Belgium 3.03 3.52 3.30 2.45Canada 5.71 5.28 7.62 10.25Switzerland 2.35 2.24 2.47 3.27China 0.63 1.03 0.97 3.97Germany 8.41 8.30 5.62 5.76Denmark 1.49 1.35 1.46 3.82Spain 2.11 3.06 3.35 6.48Finland 0.49 0.48 0.40 1.19France 6.44 6.79 6.02 3.86U.K. 6.17 5.44 7.17 6.03Hong Kong 2.47 3.32 3.31 3.35India 0.64 0.97 0.54 0.02Ireland 1.42 1.16 1.16 1.34Italy 3.47 2.24 2.62 2.79Jersey/The Channel Islands 0.27 0.14 0.04 0.03Japan 8.05 8.09 8.32 8.71South Korea 1.22 1.36 1.55 2.11Malaysia 0.00 0.00 0.00 0.34Netherlands 2.81 2.48 2.24 0.00Norway 1.56 1.26 1.52 0.00Singapore 1.08 0.94 0.58 0.88Sweden 1.30 1.30 1.46 1.31Thailand 0.00 0.00 0.00 2.61Taiwan 1.61 1.68 1.45 2.07U.S.A. 36.46 36.59 36.04 27.36TOTAL 100.00 100.00 100.00 100.00


Cyclicals 43.70 45.12 41.09 42.22Consum(cycl) 37.92 36.32 40.89 34.47Cons.goods 1.02 1.00 1.22 0.00Pharma 0.77 0.34 0.92 2.23Financials (0.03) 0.66 0.23 0.42Technology 7.55 7.68 5.81 8.56Utilities 9.07 8.88 9.84 12.10TOTAL 100.00 100.00 100.00 100.00

45


CANADIAN DOLLAR 5.75 5.35 7.62 10.25SWISS FRANC 2.40 2.30 2.52 3.27DANISH KRONE 1.51 1.37 1.49 3.83EURO 28.59 28.60 25.04 23.48POUND STERLING 6.52 5.61 7.29 6.07HONG KONG DOLLAR 3.22 4.45 4.35 7.32INDIE RUPEE 0.64 0.97 0.54 0.02JAPANESE YEN 8.07 8.10 8.40 8.71KOREAN WON 1.22 1.36 1.55 2.11MALAYSIAN RINGGIT 0.00 0.00 0.00 0.34NORWEGIAN KRONE 1.62 1.33 1.52 0.00SWEDISH KRONA 1.32 1.32 1.51 1.31SINGAPORE DOLLAR 1.05 0.91 0.63 0.88THAI BATH 0.00 0.00 0.00 2.61NEW TAIWAN DOLLAR 1.61 1.68 1.45 1.76US DOLLAR 36.48 36.65 36.09 28.04TOTAL 100.00 100.00 100.00 100.00

2.4.2. Changes in the composition of the assets of KBC Eco FundClimate Change (in the currency of the sub-fund)


27,023,537.90





Nil


46



Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 4,403.15 499.00 2,540.25 739.00 38,289.56 3,671.21 41,960.772019 - 08* 2,707.93 1,013.00 3,494.33 341.00 37,503.15 4,343.21 41,846.362020 - 02* 6,546.51 1,334.00 3,082.69 152.00 40,966.97 5,525.21 46,492.18



2018 - 08* 2,474,238.77 252,269.27 1,428,681.05 379,615.862019 - 08* 1,536,081.34 508,026.00 1,900,595.78 171,049.382020 - 02* 4,044,246.33 713,586.02 1,965,477.11 80,319.60



2018 - 08* 23,754,764.71 571.48 510.232019 - 08* 22,985,042.95 556.41 487.632020 - 02* 26,432,243.85 578.15 497.25




Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 900.00 105.00 2,466.00 2,466.002019 - 08* 250.00 2,216.00 2,216.002020 - 02* 100.00 100.00 2,216.00 2,216.00



2018 - 08* 504,263.00 56,119.352019 - 08* 0.00 144,997.502020 - 02* 62,528.00 58,351.00



2018 - 08* 1,412,418.38 572.762019 - 08* 1,245,816.82 562.192020 - 02* 1,302,931.64 587.97


47


BE0946843266KBC Eco Fund Climate Change Classic Shares DIS


2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 15.6% -8.4% 13.0% 17.2% 10.0% -10.7% 18.5% 0.2% 3.2% 2.4%


KBC Eco Fund Climate Change Classic Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 15.6% -8.4% 13.0% 17.3% 10.0% -10.7% 18.6% 0.2% 3.3% 2.5%

48



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

DIS BE0946843266 EUR 2.42% 1.92% 2.30% 5.62% 02/02/2007 1.09%

CAP BE0946844272 EUR 2.48% 1.98% 2.35% 5.66% 02/02/2007 1.12%









49


KBC Eco Fund Climate Change Institutional B Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 12.9% 17.4% 10.1% -10.6% 18.6% 0.2% 3.5% 3.8%

50



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

CAP BE6228923684 EUR 3.82% 2.50% 2.69% % 25/11/2011 8.62%









51



















52








53


Table of contents

2. Information on KBC Eco Fund CSOB Water



2.2. Balance sheet



2.4.1. Composition of the assets of KBC Eco Fund CSOB Water2.4.2. Changes in the composition of the assets KBC Eco Fund CSOB Water (in the currency

of the sub-fund)2.4.3. Amount of commitments in respect of financial derivatives positions2.4.4. Changes in the number of subscriptions and redemptions and the net asset value2.4.5. Performance figures2.4.6. Costs2.4.7. Notes to the financial statements and other data

54

2. Information on KBC Eco Fund CSOBWater2.1. Management report2.1.1. Launch date and subscription price

DistributionLaunch date: 31 July 2007Initial subscription price: 1 000 CZKCurrency: CZKCapitalisationLaunch date: 31 July 2007Initial subscription price: 1 000 CZKCurrency: CZK












Where derivatives are used, they must be easily transferable and liquid instruments. Using derivatives doesnot, therefore, have a negative impact on liquidity risk. The use of derivatives may, however, affect the spread ofthe portfolio across regions, sectors or themes. Consequently, there may be an impact on concentration risk.Derivatives may not be used to protect capital, either fully or partially. They neither increase nor decrease

56

capital risk. In addition, using derivatives has no negative impact on credit risk, settlement risk, custodyrisk, flexibility risk or inflation risk or risk dependent on external factors.


Strategy selectedThe sub-fund invests at least 75% of its assets in companies that operate on a sustainable basis and thatgenerate a substantial proportion of their turnover in the water sector.

The companies have to satisfy a number of basic criteria regarding the environment, human rights, the tradeand manufacture of arms, and nuclear energy. The basic criteria are set out by KBC Asset Management in co-operation with the Independent Environmental Advisory Committee. They may also change the method used toperform the sustainability screening, based on new trends in society.

Screening is carried out by KBC Asset Management’s Sustainable and Socially Responsible InvestmentDepartment and the Environmental Advisory Committee.











2.1.9. Synthetic risk and reward indicator (SRRI)5 on a scale of 1 (lowest risk) to 7 (highest risk)



57

2.2. Balance sheet




fund)

TOTAL NET ASSETS 1,208,396,391.97 1,101,979,468.86II. Securities, money market instruments,


a) Shares 1,215,852,063.17 1,093,448,864.67F. Derivative financial instruments

j) Foreign exchange Futures and forward contracts (+/-) -18,587,161.76 -528,841.00


A. Receivablesa) Accounts receivable 1,535,878.97

B. Payablesa) Accounts payable (-) -2,275,220.85c) Borrowings (-) -22,585,865.44 -96,780.88

V. Deposits and cash at bank and in handA. Demand balances at banks 13,196,121.31 9,496,818.06D. 20,385,211.18VI. Accruals and deferralsB. Accrued income 1,661,740.46 736,435.96C. Accrued expense (-) -786,375.07 -1,077,027.95

TOTAL SHAREHOLDERS' EQUITY 1,208,396,391.97 1,101,979,468.86A. Capital 1,228,794,448.83 1,137,339,326.47B. Income equalization 266,886.13 331,804.82D. Result of the period -20,664,942.99 -35,691,662.43

Off-balance-sheet headingsI. Collateral (+/-)I.A. Collateral (+/-)I.A.a. Securities/money market instrumentsI.A.b. Cash at bank and in hand/deposits 20,385,211.18III. Notional amounts of futures and forward

contracts (+)III.A. Purchased futures and forward contracts 1,010,604,096.00 798,370,609.62III.B. Written futures and forward contracts -106,340,093.44 -60,627,121.64

58





a) Shares -4,623,928.88 -32,867,901.52D. Other securities 188,107.64

G. Receivables, deposits, cash at bank and inhand and payables 0.02 -0.02

H. Foreign exchange positions andtransactionsa) Derivative financial instruments Futures and forward contracts -7,533,017.69 -3,768,666.98b) Other foreign exchange positions andtransactions -1,738,501.55 4,706,226.74

Det.section I gains and losses oninvestmentsRealised gains on investments 70,800,922.09 37,867,303.54Unrealised gains on investments 203,888,041.86 23,654,562.75Realised losses on investments -38,090,162.72 -32,880,105.80Unrealised losses on investments -250,494,249.33 -60,383,994.63


b) Cash at bank and in hand and deposits 55,273.55 100,054.64C. Interest on borrowings (-) -64,279.24 -48,872.89IV. Operating expenses


B. Financial expenses (-) -813.79 -1,343.54C. Custodian's fee (-) -251,881.26D. Manager's fee (-)

a) Financial management -12,672,873.59 -10,213,306.93b) Administration and accountingmanagement -633,644.93 -510,666.27

F. Formation and organisation expenses (-) -8,347.37 -11,319.85


H. Services and sundry goods (-) -114,773.84 -73,973.74J. Taxes -5,826.86 -7,350.26K. Other expenses (-) -138,165.27 45,274.78

Income and expenditure for the periodSubtotal II + III + IV -6,769,494.90 -3,949,428.29

V. Profit (loss) on ordinary activitiesbefore tax -20,664,942.99 -35,691,662.43

VII. Result of the period -20,664,942.99 -35,691,662.43

59


2.4.1. Composition of the assets of KBC Eco Fund CSOB WaterName Quantity on


currencyEvaluation


%owned by

UCI

%portfolio

%Net

assets

NET ASSETS


Shares


Australia

G.U.D. HOLDINGS LTD - 95,489.00 AUD 10.640 15,196,069.03 1.27 1.26

Austria

ANDRITZ AG - 12,658.00 EUR 31.920 10,295,636.53 0.86 0.85 WIENERBERGER AG (WIEN) 33,847.00 EUR 23.080 19,905,872.31 1.66 1.65

Bermuda

CONSOLIDATED WATER CO LTD - 40,514.00 USD 16.160 15,187,679.26 1.27 1.26

Brazil

CIA DE SANEAMENTO DE MINAS GER - 53,780.00 BRL 60.310 16,677,066.25 1.39 1.38 CIA SANEAMENTO BASICO - 59,000.00 BRL 58.750 17,822,532.29 1.49 1.48

Cayman Islands

CT ENVIRONMENTAL GROUP LTD - 9,512,000.00 HKD 0.340 9,626,939.08 0.80 0.80

Chile

AGUAS ANDINAS SA - 1,991,410.00 CLP 280.010 15,768,506.40 1.32 1.31

China

OZNER WATER INTERNATIONAL HOLD - 1,470,000.00 HKD 0.560 2,450,432.97 0.21 0.20 TIANJIN CAPITAL ENVIRONMENTAL - 34,000.00 HKD 2.490 252,008.81 0.02 0.02

Finland

KEMIRA (HEL) 56,023.00 EUR 11.470 16,374,008.34 1.37 1.36 UPONOR OYJ - 58,436.00 EUR 11.850 17,645,097.35 1.47 1.46

France

EUROFINS SCIENTIFIC - 1,100.00 EUR 454.800 12,747,891.81 1.07 1.06

Hong Kong

BEIJING ENTERPRISES WATER GROUP LTD - 1,914,000.00 HKD 3.620 20,624,715.62 1.72 1.71 CHINA EVERBRIGHT INTL - 1,030,144.00 HKD 5.190 15,914,857.72 1.33 1.32 CHINA LIANSU GROUP HOLDINGS LT - 566,000.00 HKD 11.700 19,712,411.57 1.65 1.63 CHINA WATER AFFAIRS GROUP LTD - 2,220,000.00 HKD 0.390 2,577,241.09 0.22 0.21 CHINA WATER AFFAIRS GROUP LTD - 1,008,000.00 HKD 6.210 18,633,292.33 1.56 1.54 WASION HOLDINGS LTD - 618,000.00 HKD 3.150 5,794,773.88 0.48 0.48

India

JAIN IRRIGATION SYSTEMS LTD - 2,497,127.00 INR 5.400 4,334,486.52 0.36 0.36 NCC LTD/INDIA - 801,219.00 INR 35.600 9,168,631.21 0.77 0.76 THERMAX LTD - 63,540.00 INR 922.750 18,846,665.88 1.57 1.56

Ireland

PENTAIR PLC - 12,642.00 USD 39.390 11,551,721.33 0.97 0.96

Japan

EBARA CORP - 23,000.00 JPY 2,571.000 12,717,281.73 1.06 1.05 KUBOTA CORP - 38,700.00 JPY 1,523.000 12,675,796.21 1.06 1.05 KURITA WATER INDUSTR. - 25,600.00 JPY 2,795.000 15,388,141.01 1.29 1.27 NOMURA MICRO SCIENCE CO LTD - 48,400.00 JPY 962.000 10,013,474.90 0.84 0.83 ORGANO CORPORATION - 13,000.00 JPY 6,360.000 17,781,354.81 1.49 1.47 TORISHIMA PUMP MANUFACTURING CO - 36,900.00 JPY 708.000 5,618,546.81 0.47 0.47 TSUKISHIMA KIKAI CO LTD - 43,000.00 JPY 1,242.000 11,485,619.68 0.96 0.95 TSURUMI MANUFACTURING CO LTD - 21,000.00 JPY 1,729.000 7,808,698.74 0.65 0.65

Netherlands

AALBERTS NV (AMS) 14,482.00 EUR 33.750 12,454,535.88 1.04 1.03 ARCADIS N.V. (AMS) 36,662.00 EUR 20.700 19,338,007.59 1.62 1.60

Philippines

MANILA WATER CO - 2,308,900.00 PHP 11.760 12,356,632.74 1.03 1.02 METRO PACIFIC INVESTMENTS CORP - 8,238,000.00 PHP 3.070 11,509,272.07 0.96 0.95

Singapore

SOUND GLOBAL LTD - 374,000.00 HKD 0.000 1.11

South Korea

60

WOONGJIN COWAY CO LTD - 10,896.00 KRW 68,900.000 14,339,490.65 1.20 1.19

Sweden

ALFA LAVAL - 24,648.00 SEK 216.100 12,744,684.46 1.06 1.06 INDUTRADE AB - 21,216.00 SEK 310.400 15,757,156.72 1.32 1.30 SWECO AB - 23,600.00 SEK 308.400 17,414,820.71 1.46 1.44

Switzerland

FERGUSON PLC - 7,899.00 GBP 67.400 15,775,017.62 1.32 1.31 GEBERIT AG - 1,973.00 CHF 479.000 22,649,290.72 1.89 1.87 GEORG.FISCHER (NAAM) 703.00 CHF 821.000 13,832,175.48 1.16 1.15 LANDIS+GYR GROUP AG - 7,535.00 CHF 78.900 14,247,946.23 1.19 1.18

Thailand

EASTERN WATER RESOURCES DEVELO - 868,400.00 THB 10.700 6,826,070.61 0.57 0.56 TTW PCL - 2,732,200.00 THB 13.900 27,899,374.81 3.88 2.31

U.K.

AMIAD FILTRATION SYSTEMS LTD - 60,000.00 GBP 2.400 4,266,780.83 0.36 0.35 HALMA PLC - 25,182.00 GBP 19.290 14,393,297.10 1.20 1.19 PENNON GROUP PLC - 77,909.00 GBP 10.780 24,885,377.53 2.08 2.06 POLYPIPE GROUP PLC - 106,656.00 GBP 5.345 16,891,602.17 1.41 1.40 ROTORK PLC - 141,370.00 GBP 2.816 11,795,809.53 0.99 0.98 RPS GROUP - 299,749.00 GBP 1.232 10,942,241.45 0.91 0.91 SEVERN TRENT - 32,890.00 GBP 24.650 24,022,524.22 2.01 1.99 UNITED UTILITIES WATER PLC - 76,895.00 GBP 9.442 21,512,948.63 1.80 1.78

U.S.A.

AGILENT TECHNOLOGIES - 7,567.00 USD 77.070 13,528,636.55 1.13 1.12 AMERICAN STATES WATER CO - 11,455.00 USD 76.590 20,352,234.58 1.70 1.68 AMERICAN WATER WORKS INC. - 7,849.00 USD 123.660 22,515,858.35 1.88 1.86 AO SMITH CORP - 12,148.00 USD 39.550 11,145,414.07 0.93 0.92 ARTESIAN RESOURCES CORP -A- 13,543.00 USD 34.330 10,785,334.49 0.90 0.89 BADGER METER INC - 9,805.00 USD 60.210 13,694,972.42 1.14 1.13 CADIZ INC - 95,492.00 USD 8.760 19,405,106.57 1.62 1.61 CALIFORNIA WATER SERVICE GROUP - 18,892.00 USD 47.960 21,018,515.92 1.76 1.74 DANAHER CORPORATION - 4,742.00 USD 144.580 15,904,305.40 1.33 1.32 ECOLAB, INC. - 3,505.00 USD 180.450 14,672,017.80 1.23 1.21 ENVISTA HOLDINGS CORP - 2,064.00 USD 25.380 1,215,195.77 0.10 0.10 FRANKLIN ELECTRIC CO INC - 11,138.00 USD 51.690 13,355,454.82 1.12 1.11 GORMAN-RUPP CO/THE - 15,742.00 USD 31.990 11,682,050.65 0.98 0.97 IDEXX LABORATORIES INC. - 2,617.00 USD 254.510 15,450,890.34 1.29 1.28 INSITUFORM TECHN. CORP. - 31,295.00 USD 18.010 13,074,756.38 1.09 1.08 ITRON INC - 6,747.00 USD 75.840 11,870,088.89 0.99 0.98 LINDSAY MANUFACTURING CO - 5,347.00 USD 99.030 12,283,493.48 1.03 1.02 MIDDLESEX WATER CO - 15,185.00 USD 59.470 20,948,728.65 1.75 1.73 MUELLER WATER PRODUCTS INC -A- 47,028.00 USD 10.950 11,945,808.97 1.00 0.99 NORTHWEST PIPE COMPANY - 19,477.00 USD 31.550 14,254,971.86 1.19 1.18 PERKINELMER, INC. - 7,109.00 USD 86.440 14,255,032.41 1.19 1.18 PICO HOLDINGS INC - 56,631.00 USD 9.490 12,467,098.18 1.04 1.03 PURE CYCLE CORP - 46,528.00 USD 12.370 13,351,468.06 1.12 1.11 REXNORD HOLDINGS INC - 18,106.00 USD 29.160 12,247,712.19 1.02 1.01 SJW GROUP - 15,833.00 USD 61.180 22,470,752.75 1.88 1.86 SPX CORPORATION - 13,585.00 USD 41.930 13,213,852.11 1.10 1.09 TETRA TECH INC. - 8,311.00 USD 80.870 15,591,419.69 1.30 1.29 THE TORO COMPANY - 8,262.00 USD 71.430 13,690,231.04 1.14 1.13 THERMO ELECTRONIC - 1,923.00 USD 290.800 12,972,348.97 1.08 1.07 VALMONT INDUSTRIES - 4,771.00 USD 116.220 12,862,791.33 1.07 1.06 WATTS WATER TECHNOLOGIES INC A 6,123.00 USD 93.910 13,338,931.33 1.11 1.10 XYLEM INC/NY - 6,885.00 USD 77.340 12,352,448.42 1.03 1.02 YORK WATER CO - 21,897.00 USD 42.290 21,481,630.40 1.79 1.78 Total shares 1,215,852,063.17 101.55 100.62 Forward contracts CZK -18,587,161.76 -1.54TOTAL SECURITIES PORTFOLIO 1,197,264,901.41 100.00 99.08

GIVEN COLLATERAL

Belgium

COLLATERAL CASH FX SWAP GEGEVEN 800,000.00 EUR 1.000 20,385,211.18 1.69TOTAL GIVEN COLLATERAL 20,385,211.18 1.69


Demand accounts

Belgium

COLLATERAL CASH FX SWAP GEGEVEN TEGENPOST -800,000.00 EUR 1.000 -20,385,211.18 -1.69 KBC GROUP AUD 45.24 AUD 1.000 676.64 KBC GROUP BRAZILIAANSE CRUZEIRO -0.03 BRL 1.000 -0.15 KBC GROUP CAD -508.17 CAD 1.000 -8,781.89 -0.00 KBC GROUP CHF 0.11 CHF 1.000 2.64 KBC GROUP CZK 6,541,345.33 CZK 1.000 6,541,345.33 0.54 KBC GROUP EUR COLL REK 800,000.00 EUR 1.000 20,385,211.18 1.69 KBC GROUP EURO -885,828.38 EUR 1.000 -22,572,248.25 -1.87 KBC GROUP GBP 5.86 GBP 1.000 173.63

61

KBC GROUP HKD -1,617.20 HKD 1.000 -4,813.95 KBC GROUP JPY -94.00 JPY 1.000 -20.22 KBC GROUP MXN 31,481.62 MXN 1.000 36,890.42 0.00 KBC GROUP SEK -0.41 SEK 1.000 -0.98 KBC GROUP SGD 251.32 SGD 1.000 4,177.15 KBC GROUP USD 285,065.13 USD 1.000 6,612,855.50 0.55 Total demand accounts -9,389,744.13 -0.78TOTAL CASH AT BANK AND IN HAND -9,389,744.13 -0.78


Receivables

Belgium

KBC GROUP CZK RECEIVABLE 1,535,878.97 CZK 1.000 1,535,878.97 0.13 Total receivables 1,535,878.97 0.13

Payables

Belgium

KBC GROUP CZK PAYABLE -2,263,329.39 CZK 1.000 -2,263,329.39 -0.19 KBC GROUP EUR PAYABLE -466.67 EUR 1.000 -11,891.46 -0.00 Payables -2,275,220.85 -0.19TOTAL RECEIVABLES AND PAYABLES -739,341.88 -0.06

OTHER Interest receivable CZK 1,661,740.46 0.14 Expenses payable CZK -786,375.07 -0.07TOTAL OTHER 875,365.39 0.07

TOTAL NET ASSETS 1,208,396,391.97 100.00


Australia 1.37 1.12 0.98 1.29Austria 0.00 0.00 0.00 2.50Belgium 0.24 0.82 -1.83 -0.65Bermuda 0.98 0.93 1.04 1.26Brazil 1.50 2.61 2.71 2.85Canada 2.44 0.00 0.00 0.00Switzerland 5.69 5.92 4.95 6.45Chile 2.40 3.43 2.45 1.30China 1.36 1.30 1.13 0.22Cayman Islands 1.02 0.66 0.84 0.80Spain 1.13 0.80 1.08 0.00Finland 2.67 2.27 2.63 2.81France 1.64 1.62 2.43 1.05U.K. 10.44 10.89 9.93 10.67Hong Kong 4.53 6.35 4.90 6.89India 4.18 3.50 3.28 2.69Japan 6.02 5.64 7.12 7.75South Korea 1.05 1.25 1.26 1.20Netherlands 2.11 2.41 2.67 2.63Philippines 2.22 2.40 3.12 1.97Singapore 3.93 3.40 1.81 0.00Sweden 2.31 1.96 2.24 3.79Thailand 1.34 1.35 1.57 2.87U.S.A. 39.43 39.37 43.69 39.66TOTAL 100.00 100.00 100.00 100.00


Cyclicals 53.92 52.91 47.67 49.27Consum(cycl) 8.27 5.22 5.45 4.46Pharma 0.00 0.00 0.00 3.50Financials 2.37 3.05 1.08 1.33Technology 3.18 3.12 3.63 5.59Telecomm. 1.01 0.79 1.30 0.00Utilities 31.25 34.91 40.87 35.85TOTAL 100.00 100.00 100.00 100.00

62


AUSTRALIAN DOLLAR 1.41 1.20 1.08 1.29BRASILIAN REAL 1.50 2.61 2.71 2.85CANADIAN DOLLAR 0.95 1.61 0.00 0.00SWISS FRANC 0.26 0.28 2.66 -0.44

2.40 3.43 2.45 1.30CZECH KORUNA 77.59 78.36 76.93 92.57EURO 1.10 0.69 0.30 -1.05POUND STERLING 0.54 1.21 0.39 -0.91HONG KONG DOLLAR 7.14 8.53 6.85 7.91INDIE RUPEE 4.18 3.50 3.28 2.69JAPANESE YEN 0.24 0.16 0.12 -1.07KOREAN WON 1.05 1.25 1.26 1.20PESO 2.22 2.40 3.12 1.97SWEDISH KRONA 2.36 2.00 2.29 -0.53SINGAPORE DOLLAR 0.69 0.40 1.86 0.00THAI BATH 1.34 1.35 1.57 2.87US DOLLAR -4.97 -8.98 -6.87 -10.65TOTAL 100.00 100.00 100.00 100.00

2.4.2. Changes in the composition of the assets of KBC Eco FundCSOB Water (in the currency of the sub-fund)


1,268,091,103.85




63


Name Currency Value in currency In the currency ofthe sub-fund

Lot-size Transactiondate

COLLATERCASH FX SWAPGEGEVEN

EUR 800,000.00 20,385,211.18 N/A 28.02.2020

KBCAK-VK CZK-CHF200430-200204 23.62840

CZK 55,193,956.27 55,193,956.27 N/A 04.02.2020

KBCAK-VK CZK-EUR200430-200204 25.25621

CZK 118,025,207.13 118,025,207.13 N/A 04.02.2020

KBCAK-VK CZK-GBP200430-200204 29.78392

CZK 156,495,409.85 156,495,409.85 N/A 04.02.2020

KBCAK-VK CZK-SEK200430-200204 2.379492

CZK 51,991,860.22 51,991,860.22 N/A 04.02.2020

KBCAK-VK CZK-USD200430-200204 22.73087

CZK 628,897,662.53 628,897,662.53 N/A 04.02.2020

KBCVK-AK JPY-CZK200430-200204 4.785377

JPY -494,461,700.00 -106,340,093.44 N/A 04.02.2020


Period Change in number of shares in circulation


Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 246,292.49 0.00 68,437.85 0.00 768,504.70 0.00 768,504.702019 - 08* 224,303.09 128,967.19 863,840.60 863,840.602020 - 02* 141,083.80 87,304.71 917,619.69 917,619.69

Period Amounts received and paid by the UCITS(in the currency of the sub-fund)


2018 - 08* 338,449,400.59 0.00 94,168,580.53 0.002019 - 08* 292,464,977.90 0.00 167,968,958.17 0.002020 - 02* 201,437,945.20 124,071,571.80

Period Net asset valueEnd of period (in the currency of the sub-fund)

Year Of the sub-fund Of one shareCapitalization Distribution

2018 - 08* 1,052,889,346.15 1,370.05 0.002019 - 08* 1,151,694,961.55 1,333.232020 - 02* 1,208,396,391.97 1,316.88


64

2.4.5. Performance figuresBE0947249448

KBC Eco Fund CSOB Water DISAnnual performance on 29/02/2020 (in CZK)

The cumulative returns are shown where they relate to a period of at least one year.

BE0947250453KBC Eco Fund CSOB Water CAP

Annual performance on 29/02/2020 (in CZK)

2010-2011# 2011-2012# 2012-2013# 2013-2014# 2014-2015# 2015-2016# 2016-2017# 2017-2018# 2018-2019# 2019-2020 in CZK 12.4% 1.6% 21.6% 23.4% 4.7% -8.9% 22.6% 3.3% -2.0% -0.3%

BE0947249448KBC Eco Fund CSOB Water DIS

Annual performance on 29/02/2020 (in EUR)The cumulative returns are shown where they relate to a period of at least one year.

65

BE0947250453KBC Eco Fund CSOB Water CAP


2010-2011# 2011-2012# 2012-2013# 2013-2014# 2014-2015# 2015-2016# 2016-2017# 2017-2018# 2018-2019# 2019-2020

in EUR 19.6% -0.7% 17.9% 16.1% 4.1% -7.5% 22.8% 9.8% -2.8% 0.2%

66



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

DIS BE0947249448 CZK 26.76% % % % 31/07/2007 -15.27%

DIS BE0947249448 EUR 37.32% 31/07/2007 -12.67%

CAP BE0947250453 CZK -0.31% 0.30% 2.42% 7.29% 31/07/2007 2.21%

CAP BE0947250453 EUR 0.22% 2.28% 3.98% 7.48% 31/07/2007 2.99%


• The bar chart shows the performance for full financial years(period of 12 months prior to the half-yearlyclosing).

• The figures do not take account of any restructuring..• Calculated in CZK and in EUR.• The return is calculated as the change in the net asset value between two dates expressed






67

2.4.6. CostsOngoing Charges and Transaction costs:Distribution :


Capitalisation :Ongoing Charges : 2.177%Transaction costs : 0.061%






2.4.7. Notes to the financial statements and other data








68


Details of collateral cash given for financial derivativesName Currency Value in currency of the portfolioGiven cash collateral EUR -800.000,00

69


Table of contents

2. Information on KBC Eco Fund Impact Investing



2.2. Balance sheet



2.4.1. Composition of the assets of KBC Eco Fund Impact Investing2.4.2. Changes in the composition of the assets KBC Eco Fund Impact Investing (in the


70

2. Information on KBC Eco Fund ImpactInvesting2.1. Management report2.1.1. Launch date and subscription price

Classic Shares DistributionLaunch date: 29 December 2000Initial subscription price: 500 EURCurrency: EURClassic Shares CapitalisationLaunch date: 29 December 2000Initial subscription price: 500 EURCurrency: EURClassic Shares HUF CapitalisationLaunch date: 23 September 2019Initial subscription price: 1 000 HUFCurrency: HUF












72



Strategy selectedAt least 75% of the assets are invested in the shares of companies worldwide that contribute to sustainabledevelopment as described by the Brundtland Commission already in 1987: “development that meets the needs ofthe present without compromising the ability of future generations to meet their own needs”. As such sustainabledevelopment ties together the concern for the carrying capacity of natural systems with the social and economicchallenges faced by humanity.It is built on the interaction of three pillars:

- social development - economic development - environmental protection

The investment philosophy is based on the concept of impact investing. These are investments made into sharesof companies with the intention to generate social and environmental impact alongside a financial return via theiroffering of products and/or services. The companies are screened and selected by KBC Asset Management’s Investment Research Department, in co-operation with an independent external board. Companies that via their offering of products and/or services have apositive impact on a sustainability/impact theme are potential candidates for inclusion. The impact a company hason the theme via its core business will be measured and evaluated on a regular basis. The selected companiesmust comply with all SRI exclusion criteria applicable to general SRI funds offered by KBC Asset Management. KBC Asset Management is co-operating with an independent external board of experts to assure the credibility ofthe sustainability screening and to oversee the quality of the methods used and the research carried out by KBCAsset Management










73


2.1.9. Synthetic risk and reward indicator (SRRI)Classic Shares: 5 on a scale of 1 (lowest risk) to 7 (highest risk)Classic Shares HUF: 5 on a scale of 1 (lowest risk) to 7 (highest risk)



74

2.2. Balance sheet




fund)



a) Shares 145,920,675.38 115,129,474.81D. Other securities 0.01IV. Receivables and payables within one

yearA. Receivables

a) Accounts receivable 178,605.35B. Payables

a) Accounts payable (-) -103,488.03c) Borrowings (-) -3,670.43

V. Deposits and cash at bank and in handA. Demand balances at banks 408,485.96 1,498,927.64VI. Accruals and deferralsB. Accrued income 110,007.18 29,770.09C. Accrued expense (-) -233,770.58 -204,519.73

TOTAL SHAREHOLDERS' EQUITY 146,276,844.84 116,453,652.81A. Capital 145,316,695.24 120,802,573.88B. Income equalization 41,955.44 31,375.86D. Result of the period 918,194.16 -4,380,296.93

75





a) Shares 943,706.21 -5,790,360.59D. Other securities -5.68

H. Foreign exchange positions andtransactionsb) Other foreign exchange positions andtransactions 652,851.05 1,739,365.49

Det.section I gains and losses oninvestmentsRealised gains on investments 2,964,302.11 843,022.60Unrealised gains on investments 3,717,392.29 1,614,015.00Realised losses on investments -669,875.28 -93,941.01Unrealised losses on investments -4,415,267.54 -6,414,091.69


b) Cash at bank and in hand and deposits 413.86 992.29C. Interest on borrowings (-) -2,280.88 -842.91IV. Operating expenses



a) Financial management Classic Shares -1,071,279.55 -798,311.00 Classic Shares K&H HUF -3,492.13 0.00b) Administration and accountingmanagement -71,677.30 -53,220.80

E. Administrative expenses (-) -995.94 -1,003.53F. Formation and organisation expenses (-) -2,108.98 -2,841.67



Classic Shares -72,728.77 -41,930.86 Classic Shares K&H HUF -717.80 0.00

K. Other expenses (-) -20,958.19 5,259.57Income and expenditure for the periodSubtotal II + III + IV -678,357.42 -329,301.83

V. Profit (loss) on ordinary activitiesbefore tax 918,194.16 -4,380,296.93

VII. Result of the period 918,194.16 -4,380,296.93

76


2.4.1. Composition of the assets of KBC Eco Fund Impact InvestingName Quantity on


currencyEvaluation


%owned by

UCI

%portfolio

%Net

assets

NET ASSETS


Shares


Austria

LENZING AG (WIEN) 36,592.00 EUR 60.800 2,224,793.60 1.53 1.52

Belgium

BIOCARTIS NV - 378,803.00 EUR 4.970 1,882,650.91 1.29 1.29 CARE PROPERTIES INVEST - 56,862.00 EUR 30.000 1,705,860.00 1.17 1.17 MATERIALISE NV - 158,742.00 USD 16.540 2,390,270.54 1.64 1.63 UMICORE - 68,681.00 EUR 37.770 2,594,081.37 1.78 1.77 WAREHOUSE DISTR. DE PAUW - 209,703.00 EUR 24.200 5,074,812.60 3.48 3.47

Brazil

COGNA EDUCACAO - 1,027,071.00 BRL 10.090 2,091,105.47 1.43 1.43

Denmark

BAVARIAN NORDIC A/S - 122,364.00 DKK 221.500 3,626,912.31 2.49 2.48 NOVO NORDISK A/S B 89,457.00 DKK 395.800 4,738,051.53 3.25 3.24 VESTAS WINDS SYSTEMS - 39,071.00 DKK 649.400 3,395,286.85 2.33 2.32

Finland

RAISIO GROUP (HEL) 'V' 605,503.00 EUR 3.070 1,858,894.21 1.27 1.27

Germany

AUMANN AG - 112,097.00 EUR 12.380 1,387,760.86 0.95 0.95 BRAIN BIOTECHNOLOGY RESEARCH & - 57,190.00 EUR 8.880 507,847.20 0.35 0.35 EVOTEC SE - 121,130.00 EUR 21.750 2,634,577.50 1.81 1.80 WACKER CHEMIE AG - 39,751.00 EUR 63.480 2,523,393.48 1.73 1.73

India

JAIN IRRIGATION SYSTEMS LTD - 7,363,336.00 INR 5.400 501,587.18 0.34 0.34 SHRIRAM CITY UNION FINANCE LTD - 128,850.00 INR 1,427.650 2,320,514.14 1.59 1.59

Ireland

KINGSPAN GROUP PLC - 9,497.00 EUR 57.050 541,803.85 0.37 0.37 KINGSPAN GROUP PLC - 60,580.00 EUR 57.300 3,471,234.00 2.38 2.37

Japan

FANUC CORP - 21,200.00 JPY 17,970.000 3,215,311.83 2.20 2.20 KEYENCE CORP - 13,200.00 JPY 34,410.000 3,833,520.27 2.63 2.62

Luxembourg

MILLICOM INTL. CELLULAR - 94,505.00 SEK 440.600 3,909,909.39 2.68 2.67

Netherlands

ALFEN BEHEER BV - 93,095.00 EUR 26.650 2,480,981.75 1.70 1.70 CORBION NV (AMS)NRC 132,708.00 EUR 32.900 4,366,093.20 2.99 2.99 KONINKLIJKE D.S.M. NV (AMS) 33,259.00 EUR 101.750 3,384,103.25 2.32 2.31 SIF HOLDING NV - 170,004.00 EUR 13.140 2,233,852.56 1.53 1.53 SIGNIFY NV - 106,278.00 EUR 26.800 2,848,250.40 1.95 1.95

New Zealand

A2 MILK CO LTD - 450,256.00 AUD 15.420 4,075,256.41 2.79 2.79

Philippines

MANILA WATER CO - 8,540,200.00 PHP 11.760 1,793,650.55 1.23 1.23

Spain

CONSTRUCCIONES Y AUXILIAR DE F - 75,907.00 EUR 39.250 2,979,349.75 2.04 2.04

Sweden

AUTOLIV INC AB 35,722.00 SEK 650.200 2,180,972.28 1.50 1.49 DORO AB - 259,403.00 SEK 39.850 970,668.05 0.67 0.66

Switzerland

LANDIS+GYR GROUP AG - 37,996.00 CHF 78.900 2,819,562.10 1.93 1.93

U.K.

CARETECH HOLDINGS PLC - 555,532.00 GBP 4.470 2,887,548.07 1.98 1.97 CIVITAS SOCIAL HOUSING PLC - 4,232,564.00 GBP 0.957 4,710,077.90 3.23 3.22 DS SMITH PLC - 802,289.00 GBP 3.142 2,931,228.25 2.01 2.00

77

POLYPIPE GROUP PLC - 643,602.00 GBP 5.345 4,000,163.23 2.74 2.74 PURECIRCLE LTD - 371,508.00 GBP 1.312 566,780.14 0.39 0.39 UNITE GROUP PLC - 358,354.00 GBP 11.330 4,721,225.95 3.24 3.23 3IGROUP - 259,698.00 GBP 10.080 3,043,979.73 2.09 2.08

U.S.A.

BIOMARIN PHARMACEUTICAL INC - 46,738.00 USD 90.370 3,845,157.32 2.64 2.63 BLUEBIRD BIO INC - 27,747.00 USD 72.330 1,827,065.87 1.25 1.25 BRIGHT HORIZONS FAMILY SOLUTIO - 30,967.00 USD 157.150 4,430,300.92 3.04 3.03 CHEGG INC - 86,909.00 USD 39.210 3,102,282.21 2.13 2.12 EQUINIX INC - 9,141.00 USD 572.800 4,766,684.69 3.27 3.26 GILEAD SCIENCES - 53,187.00 USD 69.360 3,358,414.42 2.30 2.30 ITRON INC - 47,233.00 USD 75.840 3,261,095.84 2.24 2.23 LKQ CORP - 148,946.00 USD 29.580 4,010,945.13 2.75 2.74 ORMAT TECHNOLOGIES INC - 68,581.00 USD 69.680 4,350,424.76 2.98 2.97 SUNPOWER CORP -A- 199,180.00 USD 8.570 1,553,982.98 1.07 1.06 VMWARE INC CLASS A - 18,141.00 USD 120.520 1,990,398.58 1.36 1.36 Total shares 145,920,675.38 100.00 99.76

Rights

Belgium

CARE PROPERTIES INVEST CP 11 56,862.00 EUR 0.000 0.01 Total rights 0.01TOTAL SECURITIES PORTFOLIO 145,920,675.39 100.00 99.76


Demand accounts

Belgium

KBC GROUP AUD -560.34 AUD 1.000 -328.90 KBC GROUP CHF -0.42 CHF 1.000 -0.40 KBC GROUP DKK -22,214.09 DKK 1.000 -2,972.61 -0.00 KBC GROUP EURO 240,073.24 EUR 1.000 240,073.24 0.16 KBC GROUP GBP 45,496.41 GBP 1.000 52,904.15 0.04 KBC GROUP HKD 2.34 HKD 1.000 0.27 KBC GROUP HUF 37,624,883.39 HUF 1.000 111,433.25 0.08 KBC GROUP JPY 384,266.00 JPY 1.000 3,243.18 0.00 KBC GROUP NOK -0.47 NOK 1.000 -0.05 KBC GROUP SEK 8,859.03 SEK 1.000 831.87 0.00 KBC GROUP USD -404.75 USD 1.000 -368.47 Total demand accounts 404,815.53 0.28TOTAL CASH AT BANK AND IN HAND 404,815.53 0.28


Receivables

Belgium

KBC GROUP EUR RECEIVABLE 178,328.72 EUR 1.000 178,328.72 0.12 KBC GROUP HUF RECEIVABLE 93,403.31 HUF 1.000 276.63 Total receivables 178,605.35 0.12

Payables

Belgium

KBC GROUP EUR PAYABLE -103,488.03 EUR 1.000 -103,488.03 -0.07 Payables -103,488.03 -0.07TOTAL RECEIVABLES AND PAYABLES 75,117.32 0.05


TOTAL NET ASSETS 146,276,844.84 100.00


Austria 0.00 0.00 1.73 1.52Belgium 10.58 10.72 10.74 9.64Brazil 1.37 2.14 1.68 1.43Switzerland 2.26 2.01 2.53 1.92Germany 6.27 4.65 4.09 4.82Denmark 6.57 6.46 7.13 8.03Spain 2.22 2.24 1.93 2.03Finland 1.67 1.35 1.43 1.27France 2.94 2.57 0.00 0.00U.K. 13.58 12.97 11.90 15.61India 4.02 3.93 2.57 1.96

78

Ireland 2.66 2.10 1.95 2.74Japan 4.24 4.14 4.20 4.81Luxembourg 2.70 2.74 2.16 2.67Netherlands 10.68 9.67 11.37 10.44New Zealand 2.27 3.02 2.62 2.78Philippines 1.61 1.79 1.62 1.22Sweden 0.90 0.79 0.59 2.16U.S.A. 23.46 26.71 29.76 24.95TOTAL 100.00 100.00 100.00 100.00


Cyclicals 26.50 24.77 25.66 26.46Consum(cycl) 11.77 11.54 11.85 13.07Cons.goods 11.90 11.94 11.77 10.16Pharma 14.34 15.37 13.63 15.66Financials 5.03 5.94 5.23 3.99Technology 14.67 13.70 13.98 10.20Telecomm. 2.70 2.74 2.16 2.67Utilities 3.52 3.62 4.02 3.45Real est. 9.57 10.38 11.70 14.34TOTAL 100.00 100.00 100.00 100.00


AUSTRALIAN DOLLAR 2.29 3.02 2.62 2.78BRASILIAN REAL 1.37 2.14 1.68 1.43SWISS FRANC 2.27 2.02 2.53 1.92DANISH KRONE 6.60 6.46 7.15 8.03EURO 34.88 31.83 31.51 30.71POUND STERLING 13.59 12.97 11.94 15.65HUNGARIAN FORINT 0.00 0.00 0.00 0.08INDIE RUPEE 3.98 3.93 2.57 1.96JAPANESE YEN 4.25 4.14 4.24 4.81PESO 1.61 1.79 1.62 1.22SWEDISH KRONA 3.60 3.58 2.84 4.83US DOLLAR 25.56 28.12 31.30 26.58TOTAL 100.00 100.00 100.00 100.00

2.4.2. Changes in the composition of the assets of KBC Eco FundImpact Investing (in the currency of the sub-fund)


143,433,149.23

Turnover rate 6.96%



79


Nil







2018 - 08* 34,605,251.87 16,205,146.16 11,581,148.66 2,468,383.672019 - 08* 28,657,844.10 10,810,104.09 10,928,643.25 6,181,301.252020 - 02* 13,591,547.33 6,828,023.20 5,678,731.86 3,033,540.42



2018 - 08* 110,725,035.31 648.47 495.512019 - 08* 133,134,662.98 647.74 487.902020 - 02* 145,103,012.94 654.80 485.83


Classic Shares K&H HUFPeriod Change in number of shares in circulation


Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2020 - 02* 398,817.00 432.00 398,385.00 398,385.00



2020 - 02* 409,005,638.20 484,615.24



2020 - 02* 396,338,543.20 994.70*The financial year does not coincide with the calender year.

80


BE0175717504KBC Eco Fund Impact Investing Classic Shares DIS


2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 13.2% -12.8% 11.1% 20.7% 22.8% 17.9% -3.5% 5.3%

* These performances were achieved under circumstances that no longer apply


KBC Eco Fund Impact Investing Classic Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 13.2% -12.7% 11.1% 20.7% 22.8% 17.9% -3.5% 5.3%

* These performances were achieved under circumstances that no longer apply

81



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

DIS BE0175717504 EUR 5.32% 6.19% 4.38% 6.57% 29/12/2000 1.40%

CAP BE0175718510 EUR 5.32% 6.20% 4.38% 6.60% 29/12/2000 1.42%









82

Classic Shares HUFBE6315653806

KBC Eco Fund Impact Investing Classic Shares HUF CAPAnnual performance on 29/02/2020 (in HUF)


Classic Shares HUFBE6315653806

KBC Eco Fund Impact Investing Classic Shares HUF CAPAnnual performance on 29/02/2020 (in EUR)


83




Classic Shares HUF Capitalisation :Ongoing Charges : %Transaction costs : %














Classic Shares HUFFee for managing the investment Max 1.35% per year calculated on the basis of the average total net

84








85


Table of contents

2. Information on KBC Eco Fund Water



2.2. Balance sheet



2.4.1. Composition of the assets of KBC Eco Fund Water2.4.2. Changes in the composition of the assets KBC Eco Fund Water (in the currency of the

sub-fund)2.4.3. Amount of commitments in respect of financial derivatives positions2.4.4. Changes in the number of subscriptions and redemptions and the net asset value2.4.5. Performance figures2.4.6. Costs2.4.7. Notes to the financial statements and other data

86

2. Information on KBC Eco Fund Water2.1. Management report2.1.1. Launch date and subscription price

Classic Shares DistributionLaunch date: 1 December 2000Initial subscription price: 500 EURCurrency: EURClassic Shares CapitalisationLaunch date: 1 December 2000Initial subscription price: 500 EURCurrency: EURInstitutional B Shares CapitalisationLaunch date: 25 November 2011Initial subscription price: 549.15 EURCurrency: EUR












Where derivatives are used, they must be easily transferable and liquid instruments. Using derivatives doesnot, therefore, have a negative impact on liquidity risk. The use of derivatives may, however, affect the spread of

88

the portfolio across regions, sectors or themes. Consequently, there may be an impact on concentration risk.Derivatives may not be used to protect capital, either fully or partially. They neither increase nor decreasecapital risk. In addition, using derivatives has no negative impact on credit risk, settlement risk, custodyrisk, flexibility risk or inflation risk or risk dependent on external factors.


Strategy selectedAt any time, at least 75% of the assets are invested, in the shares of companies that operate on a sustainable basisin the water sector. These companies have to realize a substantial proportion of their turnover in this sector. The companies have to satisfy a number of basic criteria regarding the environment, human rights, the trade andmanufacture of arms, and nuclear energy. The basic criteria are set out by KBC Asset Management in co-operation with the Independent Environmental Advisory Committee. They may also change the method used toperform the sustainability screening, based on new trends in society. The shares are screened by KBC Asset Management’s Sustainable and Socially Responsible InvestmentDepartment and the External Advisory Board for Sustainability Analysis.












89

2.2. Balance sheet




fund)



a) Shares 902,453,797.98 648,953,561.53F. Derivative financial instruments

j) Foreign exchange Futures and forward contracts (+/-) -0.02


A. Receivablesa) Accounts receivable 4,414,674.96 0.96

B. Payablesa) Accounts payable (-) -2,129,237.55c) Borrowings (-) -3,794,962.39 -2,729,973.61

V. Deposits and cash at bank and in handA. Demand balances at banks 272,397.58 2,110,548.63VI. Accruals and deferralsB. Accrued income 1,235,019.46 627,758.60C. Accrued expense (-) -1,216,304.48 -906,737.73

TOTAL SHAREHOLDERS' EQUITY 901,235,385.56 648,055,158.36A. Capital 907,430,103.80 646,620,605.24B. Income equalization 544,124.30 -193,042.69D. Result of the period -6,738,842.54 1,627,595.81

90





a) Shares -9,439,309.14 -12,970,671.56D. Other securities 167,265.47

G. Receivables, deposits, cash at bank and inhand and payables -0.02

H. Foreign exchange positions andtransactionsa) Derivative financial instruments Futures and forward contracts 0.02b) Other foreign exchange positions andtransactions 4,901,765.30 14,974,479.11

Det.section I gains and losses oninvestmentsRealised gains on investments 24,425,716.36 16,989,123.46Unrealised gains on investments 2,519,840.18 -870,111.78Realised losses on investments -4,087,818.62 -2,360,407.77Unrealised losses on investments -27,395,281.76 -11,587,530.97


b) Cash at bank and in hand and deposits 14,283.10 16,583.30C. Interest on borrowings (-) -10,743.57 -3,792.00III. Other income


67,669.26 94,198.10




a) Financial management Classic Shares -4,947,554.21 -3,343,245.93 Institutional B Shares -331,614.37 -1,193,418.08b) Administration and accountingmanagement -440,375.65 -320,035.63

E. Administrative expenses (-) -1,010.09 -998.54F. Formation and organisation expenses (-) -4,856.47 -9,726.18



Classic Shares -413,602.99 -165,959.14 Institutional B Shares -13,386.21 -7,924.42

K. Other expenses (-) -141,995.94 85,427.47Income and expenditure for the periodSubtotal II + III + IV -2,201,298.68 -543,477.21

V. Profit (loss) on ordinary activitiesbefore tax -6,738,842.54 1,627,595.81

VII. Result of the period -6,738,842.54 1,627,595.81

91


2.4.1. Composition of the assets of KBC Eco Fund WaterName Quantity on


currencyEvaluation


%owned by

UCI

%portfolio

%Net

assets

NET ASSETS


Shares


Australia

G.U.D. HOLDINGS LTD - 441,440.00 AUD 10.640 2,756,921.30 0.31 0.31

Austria

ANDRITZ AG - 298,471.00 EUR 31.920 9,527,194.32 1.06 1.06 WIENERBERGER AG (WIEN) 185,967.00 EUR 23.080 4,292,118.36 0.48 0.48

Bermuda

CONSOLIDATED WATER CO LTD - 64,349.00 USD 16.160 946,679.27 0.11 0.11

Brazil

CIA DE SANEAMENTO DE MINAS GER - 740,600.00 BRL 60.310 9,012,750.37 1.00 1.00 CIA SANEAMENTO BASICO - 2,349,000.00 BRL 58.750 27,846,793.46 3.09 3.09

Cayman Islands

CT ENVIRONMENTAL GROUP LTD - 27,048,000.00 HKD 0.340 1,074,301.84 0.12 0.12

Chile

AGUAS ANDINAS SA - 7,423,035.00 CLP 280.010 2,306,673.69 0.26 0.26

China

OZNER WATER INTERNATIONAL HOLD - 1,764,000.00 HKD 0.560 115,398.15 0.01 0.01 TIANJIN CAPITAL ENVIRONMENTAL - 3,490,000.00 HKD 2.490 1,015,165.89 0.11 0.11

Finland

KEMIRA (HEL) 312,617.00 EUR 11.470 3,585,716.99 0.40 0.40 UPONOR OYJ - 195,240.00 EUR 11.850 2,313,594.00 0.26 0.26

France

EUROFINS SCIENTIFIC - 39,906.00 EUR 454.800 18,149,248.80 2.01 2.01

Hong Kong

BEIJING ENTERPRISES WATER GROUP LTD - 23,790,000.00 HKD 3.620 10,060,400.19 1.12 1.12 CHINA EVERBRIGHT INTL - 14,985,851.00 HKD 5.190 9,085,754.80 1.01 1.01 CHINA LIANSU GROUP HOLDINGS LT - 6,417,000.00 HKD 11.700 8,770,616.98 0.97 0.97 CHINA WATER AFFAIRS GROUP LTD - 6,096,000.00 HKD 6.210 4,422,306.13 0.49 0.49 CHINA WATER AFFAIRS GROUP LTD - 2,584,000.00 HKD 0.390 117,725.18 0.01 0.01 WASION HOLDINGS LTD - 938,000.00 HKD 3.150 345,164.11 0.04 0.04

India

JAIN IRRIGATION SYSTEMS LTD - 11,297,848.00 INR 5.400 769,604.38 0.09 0.09 NCC LTD/INDIA - 20,636,204.00 INR 35.600 9,267,398.88 1.03 1.03 THERMAX LTD - 138,331.00 INR 922.750 1,610,206.65 0.18 0.18

Ireland

PENTAIR PLC - 650,405.00 USD 39.390 23,323,276.39 2.58 2.59

Japan

EBARA CORP - 822,000.00 JPY 2,571.000 17,836,640.29 1.98 1.98 KUBOTA CORP - 2,277,800.00 JPY 1,523.000 29,278,892.95 3.25 3.25 KURITA WATER INDUSTR. - 649,500.00 JPY 2,795.000 15,321,459.15 1.70 1.70 NOMURA MICRO SCIENCE CO LTD - 85,400.00 JPY 962.000 693,381.26 0.08 0.08 ORGANO CORPORATION - 84,100.00 JPY 6,360.000 4,514,319.28 0.50 0.50 TORISHIMA PUMP MANUFACTURING CO - 47,000.00 JPY 708.000 280,847.31 0.03 0.03 TSUKISHIMA KIKAI CO LTD - 100,000.00 JPY 1,242.000 1,048,240.07 0.12 0.12 TSURUMI MANUFACTURING CO LTD - 20,000.00 JPY 1,729.000 291,852.99 0.03 0.03

Netherlands

AALBERTS NV (AMS) 381,142.00 EUR 33.750 12,863,542.50 1.43 1.43 ARCADIS N.V. (AMS) 249,904.00 EUR 20.700 5,173,012.80 0.57 0.57

Philippines

MANILA WATER CO - 5,575,900.00 PHP 11.760 1,171,075.16 0.13 0.13 METRO PACIFIC INVESTMENTS CORP - 38,162,000.00 PHP 3.070 2,092,338.64 0.23 0.23

Singapore

SOUND GLOBAL LTD - 2,051,000.00 HKD 0.000 0.24

South Korea

92

WOONGJIN COWAY CO LTD - 220,751.00 KRW 68,900.000 11,401,029.98 1.26 1.26

Sweden

ALFA LAVAL - 794,004.00 SEK 216.100 16,111,830.00 1.79 1.79 INDUTRADE AB - 227,390.00 SEK 310.400 6,627,664.07 0.73 0.74 SWECO AB - 148,476.00 SEK 308.400 4,299,698.88 0.48 0.48

Switzerland

FERGUSON PLC - 322,619.00 GBP 67.400 25,284,970.78 2.80 2.81 GEBERIT AG - 62,008.00 CHF 479.000 27,935,086.40 3.10 3.10 GEORG.FISCHER (NAAM) 22,299.00 CHF 821.000 17,218,500.45 1.91 1.91 LANDIS+GYR GROUP AG - 119,661.00 CHF 78.900 8,879,661.55 0.98 0.99

Thailand

EASTERN WATER RESOURCES DEVELO - 1,241,900.00 THB 10.700 383,100.19 0.04 0.04 TTW PCL - 3,641,400.00 THB 13.900 1,459,234.71 0.16 0.16

U.K.

AMIAD FILTRATION SYSTEMS LTD - 174,140.00 GBP 2.400 485,984.48 0.05 0.05 HALMA PLC - 827,418.00 GBP 19.290 18,559,651.24 2.06 2.06 PENNON GROUP PLC - 1,601,704.00 GBP 10.780 20,077,685.17 2.23 2.23 POLYPIPE GROUP PLC - 634,818.00 GBP 5.345 3,945,568.26 0.44 0.44 ROTORK PLC - 2,680,024.00 GBP 2.816 8,775,744.14 0.97 0.97 RPS GROUP - 525,292.00 GBP 1.232 752,530.51 0.08 0.08 SEVERN TRENT - 804,220.00 GBP 24.650 23,051,777.11 2.55 2.56 UNITED UTILITIES WATER PLC - 2,325,466.00 GBP 9.442 25,532,104.26 2.83 2.83

U.S.A.

AGILENT TECHNOLOGIES - 316,090.00 USD 77.070 22,177,665.16 2.46 2.46 AMERICAN STATES WATER CO - 275,743.00 USD 76.590 19,226,324.70 2.13 2.13 AMERICAN WATER WORKS INC. - 251,587.00 USD 123.660 28,322,862.60 3.14 3.14 AO SMITH CORP - 607,394.00 USD 39.550 21,869,391.14 2.42 2.43 ARTESIAN RESOURCES CORP -A- 22,365.00 USD 34.330 698,976.24 0.08 0.08 BADGER METER INC - 201,202.00 USD 60.210 11,028,606.15 1.22 1.22 CADIZ INC - 290,942.00 USD 8.760 2,320,225.70 0.26 0.26 CALIFORNIA WATER SERVICE GROUP - 331,967.00 USD 47.960 14,494,184.82 1.61 1.61 DANAHER CORPORATION - 205,774.00 USD 144.580 27,084,350.60 3.00 3.01 ECOLAB, INC. - 169,172.00 USD 180.450 27,791,057.76 3.08 3.08 ENVISTA HOLDINGS CORP - 165,317.00 USD 25.380 3,819,696.35 0.42 0.42 FRANKLIN ELECTRIC CO INC - 190,516.00 USD 51.690 8,965,152.75 0.99 1.00 GORMAN-RUPP CO/THE - 74,775.00 USD 31.990 2,177,661.48 0.24 0.24 IDEXX LABORATORIES INC. - 101,379.00 USD 254.510 23,489,434.47 2.60 2.61 INSITUFORM TECHN. CORP. - 180,019.00 USD 18.010 2,951,561.01 0.33 0.33 ITRON INC - 278,151.00 USD 75.840 19,204,307.74 2.13 2.13 LINDSAY MANUFACTURING CO - 121,852.00 USD 99.030 10,985,482.78 1.22 1.22 MIDDLESEX WATER CO - 67,530.00 USD 59.470 3,656,069.10 0.41 0.41 MUELLER WATER PRODUCTS INC -A- 1,030,032.00 USD 10.950 10,267,968.87 1.14 1.14 NORTHWEST PIPE COMPANY - 75,325.00 USD 31.550 2,163,506.53 0.24 0.24 PERKINELMER, INC. - 271,261.00 USD 86.440 21,346,261.40 2.37 2.37 PICO HOLDINGS INC - 129,034.00 USD 9.490 1,114,782.34 0.12 0.12 PURE CYCLE CORP - 62,285.00 USD 12.370 701,411.49 0.08 0.08 REXNORD HOLDINGS INC - 757,499.00 USD 29.160 20,108,945.19 2.23 2.23 SJW GROUP - 221,158.00 USD 61.180 12,317,762.70 1.37 1.37 SPX CORPORATION - 288,571.00 USD 41.930 11,015,323.44 1.22 1.22 TETRA TECH INC. - 299,822.00 USD 80.870 22,073,471.84 2.45 2.45 THE TORO COMPANY - 324,921.00 USD 71.430 21,128,960.84 2.34 2.34 THERMO ELECTRONIC - 72,315.00 USD 290.800 19,144,432.61 2.12 2.12 VALMONT INDUSTRIES - 151,692.00 USD 116.220 16,049,564.60 1.78 1.78 WATTS WATER TECHNOLOGIES INC A 149,503.00 USD 93.910 12,781,489.13 1.42 1.42 XYLEM INC/NY - 261,468.00 USD 77.340 18,409,518.07 2.04 2.04 YORK WATER CO - 39,090.00 USD 42.290 1,504,953.43 0.17 0.17 Total shares 902,453,797.98 100.00 100.14TOTAL SECURITIES PORTFOLIO 902,453,797.98 100.00 100.14


Demand accounts

Belgium

KBC GROUP AUD -0.19 AUD 1.000 -0.11 KBC GROUP CAD 57.89 CAD 1.000 39.26 KBC GROUP CHF -20,422.77 CHF 1.000 -19,207.97 -0.00 KBC GROUP EURO -11,488.08 EUR 1.000 -11,488.08 -0.00 KBC GROUP GBP 93.33 GBP 1.000 108.53 KBC GROUP HKD 514.07 HKD 1.000 60.05 KBC GROUP JPY -446,006,478.00 JPY 1.000 -3,764,266.19 -0.42 KBC GROUP MXN 9,849.22 MXN 1.000 452.93 KBC GROUP SEK -0.42 SEK 1.000 -0.04 KBC GROUP SGD 1,577.75 SGD 1.000 1,029.12 KBC GROUP USD 297,358.86 USD 1.000 270,707.69 0.03 Total demand accounts -3,522,564.81 -0.39TOTAL CASH AT BANK AND IN HAND -3,522,564.81 -0.39


93

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 4,414,674.96 EUR 1.000 4,414,674.96 0.49 Total receivables 4,414,674.96 0.49

Payables

Belgium

KBC GROUP EUR PAYABLE -1,981,540.39 EUR 1.000 -1,981,540.39 -0.22 KBC GROUP PHP TE BETALEN -8,270,079.32 PHP 1.000 -147,697.16 -0.02 Payables -2,129,237.55 -0.24TOTAL RECEIVABLES AND PAYABLES 2,285,437.41 0.25

OTHER Interest receivable EUR 1,235,019.46 0.14 Expenses payable EUR -1,216,304.48 -0.13TOTAL OTHER 18,714.98 0.00

TOTAL NET ASSETS 901,235,385.56 100.00


Australia 0.45 0.40 0.25 0.31Austria 0.00 0.00 0.00 1.54Belgium 0.17 -0.10 1.04 -0.14Bermuda 0.09 0.09 0.09 0.10Brazil 2.06 3.49 4.58 4.08Canada 0.70 0.00 0.00 0.00Switzerland 10.49 8.15 9.13 11.37Chile 0.51 0.69 0.35 0.26China 0.23 0.25 0.18 0.12Cayman Islands 0.45 0.18 0.14 0.12Spain 0.30 0.23 0.23 0.00Finland 0.66 0.74 0.65 0.66France 2.80 2.89 3.28 2.01U.K. 12.32 13.12 11.68 11.24Hong Kong 3.96 7.55 4.32 3.64India 2.73 2.98 1.84 1.31Japan 6.40 5.36 6.02 7.72South Korea 1.43 2.22 1.65 1.28Netherlands 2.24 2.29 2.33 2.00Philippines 0.53 0.52 0.48 0.36Singapore 1.18 1.31 0.19 0.00Sweden 2.50 1.94 1.98 3.00Thailand 0.14 0.16 0.16 0.20U.S.A. 47.66 45.54 49.43 48.82TOTAL 100.00 100.00 100.00 100.00


Cyclicals 58.58 55.97 50.09 50.42Consum(cycl) 5.03 3.76 5.56 7.41Pharma 0.00 0.00 0.00 7.16Financials 0.82 0.50 1.59 0.21Technology 4.37 4.14 4.40 8.00Telecomm. 1.22 1.05 1.17 0.00Utilities 29.98 34.58 37.19 26.80TOTAL 100.00 100.00 100.00 100.00

94


AUSTRALIAN DOLLAR 0.48 0.45 0.30 0.31BRASILIAN REAL 2.06 3.49 4.58 4.08CANADIAN DOLLAR 1.51 0.83 0.01 0.00SWISS FRANC 6.73 4.68 4.94 5.99

0.51 0.69 0.35 0.26EURO 5.80 5.73 7.14 6.48POUND STERLING 14.45 15.00 14.20 14.04HONG KONG DOLLAR 4.80 8.08 4.68 3.88INDIE RUPEE 2.73 2.98 1.84 1.31JAPANESE YEN 6.42 5.38 6.05 7.30KOREAN WON 1.43 2.22 1.65 1.28MEXICAN PESO 0.02 0.02 0.02 0.00PESO 0.53 0.52 0.48 0.34SWEDISH KRONA 2.52 1.94 2.05 3.00SINGAPORE DOLLAR 1.13 1.26 0.20 0.00THAI BATH 0.14 0.16 0.16 0.20US DOLLAR 48.74 46.57 51.35 51.53TOTAL 100.00 100.00 100.00 100.00

2.4.2. Changes in the composition of the assets of KBC Eco Fund Water(in the currency of the sub-fund)


880,161,280.99





Nil


95






2018 - 08* 160,577,754.22 71,015,198.47 23,316,093.88 8,180,832.132019 - 08* 91,905,982.13 24,349,481.74 47,784,435.88 14,370,343.032020 - 02* 78,766,670.16 98,570,323.18 25,168,698.95 9,835,655.49



2018 - 08* 460,714,454.34 1,381.36 1,059.572019 - 08* 544,230,952.11 1,468.63 1,103.432020 - 02* 676,456,290.77 1,474.97 1,088.23




Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 181,907.15 28,997.00 153,600.15 153,600.152019 - 08* 36,871.14 54,288.85 136,182.44 136,182.442020 - 02* 21,856.97 8,575.00 149,464.41 149,464.41



2018 - 08* 242,659,810.90 39,346,570.912019 - 08* 50,643,768.36 74,937,399.382020 - 02* 36,083,844.88 13,543,494.94



2018 - 08* 213,197,014.85 1,388.002019 - 08* 202,606,591.61 1,487.762020 - 02* 224,779,094.79 1,503.90


96


BE0175478057KBC Eco Fund Water Classic Shares DISAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 15.0% 4.1% 21.5% 17.5% 20.0% -6.4% 25.6% -1.6% 5.9% 6.6%


KBC Eco Fund Water Classic Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 15.0% 4.1% 21.5% 17.5% 20.0% -6.4% 25.6% -1.6% 5.9% 6.7%

97



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

DIS BE0175478057 EUR 6.62% 3.56% 5.47% 10.34% 01/12/2000 5.76%

CAP BE0175479063 EUR 6.67% 3.59% 5.49% 10.36% 01/12/2000 5.78%









98


KBC Eco Fund Water Institutional B Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 21.6% 17.6% 20.1% -6.3% 25.7% -1.5% 6.1% 8.1%

99



Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Shareclasses

Benchmark

Startingdate

Shareclasses

CAP BE6228912570 EUR 8.06% 4.12% 5.85% % 25/11/2011 12.96%









100



















101








102


Table of contents

2. Information on KBC Eco Fund World



2.2. Balance sheet



2.4.1. Composition of the assets of KBC Eco Fund World2.4.2. Changes in the composition of the assets KBC Eco Fund World (in the currency of the

sub-fund)2.4.3. Amount of commitments in respect of financial derivatives positions2.4.4. Changes in the number of subscriptions and redemptions and the net asset value2.4.5. Performance figures2.4.6. Costs2.4.7. Notes to the financial statements and other data

103

2. Information on KBC Eco Fund World2.1. Management report2.1.1. Launch date and subscription price

Classic Shares DistributionLaunch date: 30 April 1992Initial subscription price: 10 000 BEFCurrency: EURClassic Shares CapitalisationLaunch date: 30 April 1992Initial subscription price: 10 000 BEFCurrency: EURInstitutional Shares CapitalisationLaunch date: 25 September 2013Initial subscription price: 1 000 EURCurrency: EUR












Where derivatives are used, they must be easily transferable and liquid instruments. Using derivatives doesnot, therefore, have a negative impact on liquidity risk. The use of derivatives may, however, affect the spread of

105

the portfolio across regions, sectors or themes. Consequently, there may be an impact on concentration risk.Derivatives may not be used to protect capital, either fully or partially. They neither increase nor decreasecapital risk. In addition, using derivatives has no negative impact on credit risk, settlement risk, custodyrisk, flexibility risk or inflation risk or risk dependent on external factors.


Strategy selectedAt least 75% of the assets are invested in the shares of companies in all sectors worldwide that outperform theirpeers in managing the environmental impact of both their production process and their end product. Thesecompanies must also have been approved by KBC Asset Management’s Sustainable and Socially ResponsibleInvestment Department and the Independent Environmental Advisory Committee. The shares must satisfy the following criteria:1. the companies must be considered the ‘best in class’ in terms of sustainability: This means that the companieshave to be screened based on the following criteria: - economic policy and role in society - business ethics and corporate governance - environment - internal social relations - human rights - socially controversial practices and technologies2. the companies must be considered the ‘best in class’ in environmental terms. Each criterion is sub-divided into measurable indicators.The requirements, criteria and indicators are set out by KBC Asset Management in co-operation with the ExternalAdvisory Board for Sustainability Analysis and the Independent Environmental Advisory Committee. Theserequirements, criteria and indicators are constantly checked to ensure their relevance. Accordingly, the methodused to conduct the sustainability screening may be changed, subject to approval by the External Advisory Boardfor Sustainability Analysis and the Independent Environmental Advisory Committee. The shares are screened by KBC Asset Management’s Sustainable and Socially Responsible InvestmentDepartment, in co-operation with the External Advisory Board for Sustainability Analysis and the IndependentEnvironmental Advisory Committee. Because the External Advisory Board for Sustainability Analysis and the Independent Environmental AdvisoryCommittee work independently, the assessment of companies is objective, assuring the credibility of thesustainability screening. Their task also consists in overseeing the quality of the methods used and the researchcarried out by KBC Asset Management.








106




2.1.9. Synthetic risk and reward indicator (SRRI)Classic Shares: 5 on a scale of 1 (lowest risk) to 7 (highest risk)Institutional Shares: 5 on a scale of 1 (lowest risk) to 7 (highest risk)



107

2.2. Balance sheet




fund)




yearA. Receivables

a) Accounts receivable 10,402,129.23B. Payables

a) Accounts payable (-) -5,949,081.40c) Borrowings (-) -75,235.13 -525,165.82


TOTAL SHAREHOLDERS' EQUITY 219,857,714.38 226,253,728.45A. Capital 214,920,566.86 228,450,891.68B. Income equalization -247,684.86 98,090.24D. Result of the period 5,184,832.38 -2,295,253.47

108





a) Shares 3,240,130.01 -6,563,090.79

H. Foreign exchange positions andtransactionsa) Derivative financial instruments Futures and forward contracts 3,653.93b) Other foreign exchange positions andtransactions 1,029,023.83 3,938,645.50

Det.section I gains and losses oninvestmentsRealised gains on investments 21,101,109.66 6,116,851.12Unrealised gains on investments -18,852,542.74 -1,391,584.77Realised losses on investments -5,076,671.33 -5,882,988.52Unrealised losses on investments 7,100,912.18 -1,466,723.12


b) Cash at bank and in hand and deposits 3,013.49 3,216.55C. Interest on borrowings (-) -2,989.21 -1,436.48III. Other income


43,131.53 28,604.34




a) Financial management Classic Shares -501,136.33 -427,672.34 Institutional Shares -361,456.91 -902,722.27b) Administration and accountingmanagement -132,337.68 -102,987.85

E. Administrative expenses (-) -999.78 -999.50F. Formation and organisation expenses (-) -2,257.26 -3,976.77



Classic Shares -27,775.01 -17,757.30 Institutional Shares -10,857.68 -7,642.56

K. Other expenses (-) -15,657.03 2,524.24Income and expenditure for the periodSubtotal II + III + IV 912,024.63 329,191.82

V. Profit (loss) on ordinary activitiesbefore tax 5,184,832.38 -2,295,253.47

VII. Result of the period 5,184,832.38 -2,295,253.47

109


2.4.1. Composition of the assets of KBC Eco Fund WorldName Quantity on


currencyEvaluation


%owned by

UCI

%portfolio

%Net

assets

NET ASSETS


Shares


Australia

AURIZON HOLDINGS LTD - 9,193.00 AUD 4.830 26,062.46 0.01 0.01 NATIONAL AUSTRALIA BANK - 31,243.00 AUD 25.100 460,296.32 0.21 0.21 RAMSAY HEALTH CARE LTD - 22,702.00 AUD 68.010 906,249.86 0.42 0.41 SYDNEY AIRPORT - 201,255.00 AUD 7.770 917,864.88 0.43 0.42

Austria

AUST&NZ BANKING GROUP - 13,824.00 AUD 24.830 201,475.16 0.09 0.09 ERSTE GROUP BANK AG - 16,020.00 EUR 31.030 497,100.60 0.23 0.23

Belgium

TELENET - 8,735.00 EUR 34.520 301,532.20 0.14 0.14

Canada

FIRST CAPITAL REALTY INC - 44,714.00 CAD 20.020 607,101.82 0.28 0.28 MANULIFE FINANCIAL CORP - 310,734.00 CAD 22.560 4,754,247.75 2.22 2.16 POWER CORP - 80,137.00 CAD 29.670 1,612,517.98 0.75 0.73 TORONTO DOMINION BK - 19,214.00 CAD 69.040 899,647.77 0.42 0.41

Cayman Islands

SEAGATE TECHNOLOGY - 46,515.00 USD 47.950 2,030,492.28 0.95 0.92

Denmark

A.P. MOLLER-MAERSK A/S -B- 149.00 DKK 6,770.000 134,984.72 0.06 0.06 NOVO NORDISK A/S B 36,351.00 DKK 395.800 1,925,315.08 0.90 0.88 VESTAS WINDS SYSTEMS - 27,093.00 DKK 649.400 2,354,393.45 1.10 1.07

Finland

KONE CORP. - 12,032.00 EUR 51.000 613,632.00 0.29 0.28 METSO OYJ (HEL) 51,368.00 EUR 29.220 1,500,972.96 0.70 0.68

France

ALSTOM - 13,912.00 EUR 44.490 618,944.88 0.29 0.28 BNP PARIBAS SA - 28,987.00 EUR 43.785 1,269,195.80 0.59 0.58 BOUYGUES - 37,822.00 EUR 35.480 1,341,924.56 0.63 0.61 CREDIT AGRICOLE - 132,599.00 EUR 10.810 1,433,395.19 0.67 0.65 LVMH-MOET HENNESSY LOUIS VUITT SE - 253.00 EUR 370.850 93,825.05 0.04 0.04 MICHELIN (PAR) 1,394.00 EUR 96.240 134,158.56 0.06 0.06 NATIXIS (PAR) 618,286.00 EUR 3.667 2,267,254.76 1.06 1.03 PEUGEOT - 90,116.00 EUR 17.505 1,577,480.58 0.74 0.72 VIVENDI SA - 145,835.00 EUR 23.020 3,357,121.70 1.56 1.53

Germany

AXEL SPRINGER SE - 5,502.00 EUR 62.900 346,075.80 0.16 0.16 DEUTSCHE TELEKOM INT FIN REG 89,123.00 EUR 14.756 1,315,098.99 0.61 0.60 LANXESS - 29,426.00 EUR 47.310 1,392,144.06 0.65 0.63

Italy

MEDIOBANCA (MIL) 74,809.00 EUR 8.190 612,685.71 0.28 0.28 TELECOM ITALIA SPA (MIL) 4,280,551.00 EUR 0.500 2,140,703.56 1.00 0.97 TELECOM ITALIA SPA (MIL) DI RISPARMIO NWE 1,706,172.00 EUR 0.504 859,569.45 0.40 0.39 TERNA RETE ELETTRICA NAZIONALE - 218,594.00 EUR 5.990 1,309,378.06 0.61 0.60

Japan

AEON CO LTD. - 130,600.00 JPY 2,014.500 2,220,494.02 1.03 1.01 BENESSE - 31,800.00 JPY 2,782.000 746,660.89 0.35 0.34 CANON INC - 71,800.00 JPY 2,733.500 1,656,466.60 0.77 0.75 DAI NIPPON PRINTNG - 98,000.00 JPY 2,595.000 2,146,360.16 1.00 0.98 DAIWA HOUSE - 8,000.00 JPY 2,979.500 201,174.32 0.09 0.09 EAST JAPAN RAILWAY - 2,300.00 JPY 8,319.000 161,487.21 0.08 0.07 FAST RETAILING CO LTD. - 3,900.00 JPY 53,440.000 1,759,017.73 0.82 0.80 HITACHI CONSTRUCTION MACHINERY CO - 88,100.00 JPY 2,663.000 1,980,095.95 0.92 0.90 IDEMITSU KOSAN CO LTD - 1.00 JPY 2,658.000 22.43 KAO CORP - 22,700.00 JPY 7,868.000 1,507,402.98 0.70 0.69 MAZDA MOTOR CORP. - 103,600.00 JPY 750.000 655,783.04 0.31 0.30 NEC CORP(NIPPON EL.) - 7,800.00 JPY 4,040.000 265,959.27 0.12 0.12 NIKON - 137,600.00 JPY 1,109.000 1,287,920.75 0.60 0.59

110

NIPPON YUSEN KK - 39,300.00 JPY 1,544.000 512,128.57 0.24 0.23 NOMURA RESEARCH INSTITUTE LTD - 81,700.00 JPY 2,355.000 1,623,873.25 0.76 0.74 NTT DATA CORPORATION - 85,000.00 JPY 1,291.000 926,156.39 0.43 0.42 NTT DOCOMO, INC. - 25,500.00 JPY 2,927.500 630,051.78 0.29 0.29 ORACLE CORP JAPAN - 4,300.00 JPY 8,440.000 306,302.16 0.14 0.14 SONY CORP - 46,200.00 JPY 6,611.000 2,577,794.50 1.20 1.17 TAKEDA PHARMACEUTICAL CO LTD - 81,100.00 JPY 3,763.000 2,575,693.80 1.20 1.17

Netherlands

A.K.Z.O. NOBEL - 53,391.00 EUR 72.150 3,852,160.65 1.80 1.75 HEINEKEN HOLDING (AMS)(A 25NLG) 8,178.00 EUR 79.800 652,604.40 0.30 0.30 KON. AHOLD DELHAIZE NV - 14,182.00 EUR 21.180 300,374.76 0.14 0.14 NXP SEMICONDUCTOR NV - 7,701.00 USD 113.690 797,056.48 0.37 0.36 VOYA FINANCIAL INC - 40,755.00 USD 52.640 1,953,064.04 0.91 0.89

New Zealand

MERIDIAN ENERGY LTD - 151,314.00 NZD 4.620 394,736.76 0.18 0.18

Spain

INDUSTRIA DE DISENO TEXTIL SA - 4,773.00 EUR 28.130 134,264.49 0.06 0.06 RED ELECTRICA DE ESPANA - 42,845.00 EUR 17.345 743,146.53 0.35 0.34

Sweden

ESSITY AB - 70,142.00 SEK 287.600 1,894,237.55 0.88 0.86

Switzerland

GEBERIT AG - 642.00 CHF 479.000 289,225.99 0.14 0.13 ROCHE HOLDING GENOTS 8,498.00 CHF 309.700 2,475,282.17 1.15 1.13 SCHINDLER-HLDG PART.BON 1,431.00 CHF 214.500 288,691.31 0.14 0.13 SWISSCOM AG - 2,673.00 CHF 513.600 1,291,191.79 0.60 0.59

U.K.

CARNIVAL PLC PLC 10,279.00 GBP 24.350 291,046.55 0.14 0.13 DIAGEO - 28,397.00 GBP 27.655 913,184.95 0.43 0.42 PEARSON PLC - 235,228.00 GBP 5.576 1,525,191.58 0.71 0.69 SEVERN TRENT - 42,691.00 GBP 24.650 1,223,674.39 0.57 0.56 UNITED UTILITIES WATER PLC - 190,059.00 GBP 9.442 2,086,724.21 0.97 0.95 VODAFONE GROUP PLC - 239,545.00 GBP 1.344 374,256.82 0.17 0.17 WHITBREAD HOLDINGS PLC - 4,385.00 GBP 38.940 198,553.78 0.09 0.09

U.S.A.

ABBOTT LAB. - 13,361.00 USD 77.030 936,954.65 0.44 0.43 ABBVIE INC - 19,359.00 USD 85.710 1,510,546.58 0.70 0.69 ADOBE SYSTEMS - 10,803.00 USD 345.120 3,394,174.85 1.58 1.54 AGILENT TECHNOLOGIES - 28,092.00 USD 77.070 1,971,005.00 0.92 0.90 AIR PRODUCTS & CHEMICALS - 15,241.00 USD 219.610 3,047,090.00 1.42 1.39 AKAMAI TECHNOLOGIES INC - 35,486.00 USD 86.510 2,794,750.66 1.30 1.27 APPLE INC - 19,929.00 USD 273.360 4,959,526.10 2.31 2.26 APTIV PLC - 3,261.00 USD 78.110 231,887.40 0.11 0.11 AUTOMATIC DATA PROCESSING, INC. - 613.00 USD 154.740 86,354.06 0.04 0.04 AVALONBAY COMMUNITIES INC - 5,417.00 USD 200.590 989,208.46 0.46 0.45 AVERY DENNISON CORPORATION - 23,224.00 USD 114.490 2,420,607.00 1.13 1.10 BANK OF AMERICA CORP - 168,954.00 USD 28.500 4,383,621.47 2.04 1.99 BANK OF NEW YORK MELLON CORP - 22,710.00 USD 39.900 824,916.02 0.38 0.38 BAXTER INTL INC - 34,769.00 USD 83.470 2,642,057.84 1.23 1.20 BEST BUY - 28,585.00 USD 75.650 1,968,642.41 0.92 0.90 BIOGEN INC - 6,689.00 USD 308.390 1,877,937.74 0.88 0.85 CAMPBELL SOUP CO - 10,191.00 USD 45.120 418,606.15 0.20 0.19 CARDINAL HEALTH INC - 45,767.00 USD 52.120 2,171,583.63 1.01 0.99 CARNIVAL CORP CORP 7,142.00 USD 33.460 217,553.21 0.10 0.10 CB RICHARD ELLIS GROUP INC - 70,823.00 USD 56.140 3,619,648.80 1.69 1.65 CISCO SYSTEMS INC - 39,514.00 USD 39.930 1,436,382.19 0.67 0.65 EBAY INC. - 96,722.00 USD 34.640 3,050,161.66 1.42 1.39 EDWARDS LIFESCIENCES CORP. - 5,645.00 USD 204.840 1,052,684.97 0.49 0.48 EQUINIX INC - 1,268.00 USD 572.800 661,213.89 0.31 0.30 EXPEDITORS INTL OF WASHINGTON INC. - 25,301.00 USD 70.420 1,622,009.58 0.76 0.74 GENERAL MILLS IN - 19,529.00 USD 49.000 871,155.72 0.41 0.40 GILEAD SCIENCES - 20,102.00 USD 69.360 1,269,311.05 0.59 0.58 HARTFORD FIN.SERV.GR. - 20,960.00 USD 49.950 953,117.57 0.44 0.43 HERSHEY CORP - 19,038.00 USD 143.990 2,495,590.71 1.16 1.14 HEWLETT PACKARD - 26,365.00 USD 20.790 499,001.64 0.23 0.23 HEWLETT PACKARD ENTERPRISE CO - 217,675.00 USD 12.790 2,534,537.99 1.18 1.15 HILTON WORLDWIDE HOLDINGS INC - 15,617.00 USD 97.200 1,381,922.16 0.64 0.63 HOME DEPOT - 2,572.00 USD 217.840 510,068.26 0.24 0.23 HOST HOTELS & RESORTS INC - 136,625.00 USD 14.480 1,801,019.62 0.84 0.82 INTEL CORP - 73,753.00 USD 55.520 3,727,767.82 1.74 1.70 INTUIT INC - 2,454.00 USD 265.850 593,924.07 0.28 0.27 JONES LANG LASALLE INC - 4,079.00 USD 147.770 548,731.24 0.26 0.25 JPMORGAN CHASE & CO - 29,244.00 USD 116.110 3,091,192.90 1.44 1.41 KELLOGG CO. - 32,124.00 USD 60.470 1,768,435.78 0.82 0.80 KIMBERLEY-CLARK CORP - 14,667.00 USD 131.190 1,751,708.07 0.82 0.80 LEAR CORP - 4,186.00 USD 111.200 423,763.67 0.20 0.19 LIBERTY GLOBAL INC -C- 158,466.00 USD 18.590 2,681,854.38 1.25 1.22 LIBERTY GLOBAL INC A 155,145.00 USD 19.520 2,757,003.41 1.29 1.25

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LOWE'S CIE - 12,713.00 USD 106.570 1,233,396.52 0.57 0.56 MANPOWER GROUP - 20,731.00 USD 75.940 1,433,212.38 0.67 0.65 MCGRAW HILL FINANCIAL INC - 10,434.00 USD 265.910 2,525,836.35 1.18 1.15 MEDTRONIC PLC - 7,166.00 USD 100.670 656,744.70 0.31 0.30 MERCK & CO - 49,879.00 USD 76.560 3,476,477.07 1.62 1.58 METTLER-TOLEDO INTERNATIONAL INC - 3,308.00 USD 701.700 2,113,180.94 0.99 0.96 MICROSOFT CORP - 22,446.00 USD 162.010 3,310,552.56 1.54 1.51 MORGAN STANLEY - 29,426.00 USD 45.030 1,206,293.21 0.56 0.55 NORDSTROM - 3,385.00 USD 34.700 106,932.04 0.05 0.05 NORTHERN TRUST CORPORATION - 12,194.00 USD 87.760 974,232.27 0.45 0.44 NVIDIA CORP NAS 6,687.00 USD 270.070 1,644,096.76 0.77 0.75 ORACLE CORP - 83,416.00 USD 49.460 3,755,979.21 1.75 1.71 PEPSICO INC - 17,777.00 USD 132.030 2,136,735.68 1.00 0.97 PROLOGIS TRUST - 9,911.00 USD 84.280 760,434.32 0.35 0.35 PRUDENTIAL FINANCIAL INC - 37,339.00 USD 75.450 2,564,729.89 1.20 1.17 REGENRON PHARMACEUTICALS - 2,165.00 USD 444.570 876,229.28 0.41 0.40 STARBUCKS CORP - 41,254.00 USD 78.430 2,945,560.76 1.37 1.34 STATE STREET CORPORATION - 22,355.00 USD 68.110 1,386,134.14 0.65 0.63 TRACTOR SUPPLY COMPANY - 7,946.00 USD 88.510 640,266.25 0.30 0.29 TRANE TECHNOLOGIES PLC - 30,346.00 USD 129.040 3,564,884.92 1.66 1.62 UNION PACIFIC CORPORATION - 21,445.00 USD 159.810 3,119,964.91 1.45 1.42 UNITEDHEALTH GROUP INC. - 9,386.00 USD 254.960 2,178,573.95 1.01 0.99 VARIAN MEDICAL SYSTEMS - 1,050.00 USD 122.970 117,546.09 0.06 0.05 VERIZON COMMUNICATIONS INC - 31,311.00 USD 54.160 1,543,815.16 0.72 0.70 VISA INC - 28,886.00 USD 181.760 4,779,752.71 2.23 2.17 VMWARE INC CLASS A - 6,193.00 USD 120.520 679,485.06 0.32 0.31 W.W. GRAINGER, INC. - 5,777.00 USD 277.540 1,459,646.39 0.68 0.66 WASTE MANAGEMENT INC. - 2,500.00 USD 110.810 252,196.28 0.12 0.12 Total shares 214,624,479.18 100.00 97.62TOTAL SECURITIES PORTFOLIO 214,624,479.18 100.00 97.62


Demand accounts

Belgium

KBC GROUP AUD -3,101.83 AUD 1.000 -1,820.66 -0.00 KBC GROUP CAD -37,042.80 CAD 1.000 -25,122.20 -0.01 KBC GROUP CHF 101,623.96 CHF 1.000 95,579.09 0.04 KBC GROUP DKK 1,454,101.95 DKK 1.000 194,582.83 0.09 KBC GROUP EURO 155,388.24 EUR 1.000 155,388.24 0.07 KBC GROUP GBP 162,860.40 GBP 1.000 189,377.39 0.09 KBC GROUP HKD 2,330.38 HKD 1.000 272.23 KBC GROUP ILS 13,748.72 ILS 1.000 3,584.94 0.00 KBC GROUP JPY -2,878,035.00 JPY 1.000 -24,290.43 -0.01 KBC GROUP NOK -72,811.58 NOK 1.000 -6,998.22 -0.00 KBC GROUP NZD 3,973.81 NZD 1.000 2,243.85 0.00 KBC GROUP SEK 1,026,634.36 SEK 1.000 96,401.37 0.04 KBC GROUP SGD 7.16 SGD 1.000 4.67 KBC GROUP TRY -2,873.70 TRY 1.000 -418.63 KBC GROUP USD -18,217.78 USD 1.000 -16,584.99 -0.01 KBC GROUP ZAR 52,390.23 ZAR 1.000 3,031.80 0.00 Total demand accounts 665,231.28 0.30TOTAL CASH AT BANK AND IN HAND 665,231.28 0.30


Receivables

Belgium

KBC GROUP CAD RECEIVABLE 377,057.51 CAD 1.000 255,718.14 0.12 KBC GROUP EUR RECEIVABLE 5,972,562.38 EUR 1.000 5,972,562.38 2.72 KBC GROUP USD RECEIVABLE 4,584,764.12 USD 1.000 4,173,848.71 1.90 Total receivables 10,402,129.23 4.73

Payables

Belgium

KBC GROUP CAD PAYABLE -345,630.00 CAD 1.000 -234,404.19 -0.11 KBC GROUP CHF PAYABLE -105,898.00 CHF 1.000 -99,598.90 -0.05 KBC GROUP DKK PAYABLE -1,496,650.00 DKK 1.000 -200,276.46 -0.09 KBC GROUP EUR PAYABLE -19,779.81 EUR 1.000 -19,779.81 -0.01 KBC GROUP GBP PAYABLE -167,519.00 GBP 1.000 -194,794.50 -0.09 KBC GROUP JPY PAYABLE -93,597,859.00 JPY 1.000 -789,959.95 -0.36 KBC GROUP SEK PAYABLE -1,062,403.00 SEK 1.000 -99,760.06 -0.05 KBC GROUP USD PAYABLE -4,734,877.00 USD 1.000 -4,310,507.53 -1.96 Payables -5,949,081.40 -2.71TOTAL RECEIVABLES AND PAYABLES 4,453,047.83 2.03

OTHER Interest receivable EUR 314,235.97 0.14 Accrued interest EUR 17,500.02 0.01 Expenses payable EUR -216,779.90 -0.10TOTAL OTHER 114,956.09 0.05

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TOTAL NET ASSETS 219,857,714.38 100.00


Australia 0.28 0.40 0.72 1.14Austria 0.80 0.44 0.00 0.23Belgium 0.12 -0.05 0.78 2.45Canada 5.62 5.43 5.34 3.62Switzerland 0.83 2.50 4.02 1.97Germany 1.79 2.33 1.61 1.39Denmark 0.74 1.20 1.28 2.00Spain 2.14 2.28 0.56 0.40Finland 0.89 0.77 0.56 0.97France 3.89 3.66 4.53 5.50U.K. 6.20 6.94 5.08 3.01Hong Kong 0.00 0.65 0.55 0.00Italy 1.15 1.24 1.11 2.24Japan 11.46 10.44 10.33 10.83Luxembourg 0.53 0.31 0.00 0.00Netherlands 0.60 0.65 2.71 3.44Norway 0.00 0.33 0.56 0.00New Zealand 0.00 0.00 0.00 0.18Singapore 0.00 0.24 0.00 0.00Sweden 3.69 0.22 0.62 0.86U.S.A. 59.27 59.90 59.62 59.77South Africa 0.00 0.12 0.02 0.00TOTAL 100.00 100.00 100.00 100.00


Cyclicals 14.66 13.83 12.06 9.52Consum(cycl) 17.44 17.53 18.97 19.97Cons.goods 10.67 12.53 13.71 9.66Pharma 10.37 11.59 11.30 13.07Financials 17.35 16.71 15.16 16.62Technology 21.16 17.74 18.11 19.89Telecomm. 1.54 2.20 2.85 4.46Utilities 3.00 3.74 4.05 2.63Real est. 3.81 4.13 3.79 4.18TOTAL 100.00 100.00 100.00 100.00


AUSTRALIAN DOLLAR 0.31 0.40 2.27 1.14CANADIAN DOLLAR 5.66 5.47 5.53 3.62SWISS FRANC 0.39 2.50 4.06 1.96DANISH KRONE 0.77 1.23 1.33 2.00EURO 11.56 11.45 10.86 15.83POUND STERLING 6.74 7.06 4.87 3.01HONG KONG DOLLAR 0.00 0.66 0.61 0.00JAPANESE YEN 11.50 10.44 8.55 10.46NORWEGIAN KRONE 0.00 0.33 0.65 0.00NEW ZEALAND DOLLAR 0.00 0.00 0.08 0.18SWEDISH KRONA 3.69 0.30 0.69 0.85SINGAPORE DOLLAR 0.00 0.24 0.01 0.00US DOLLAR 59.38 59.92 60.49 60.95TOTAL 100.00 100.00 100.00 100.00

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2.4.2. Changes in the composition of the assets of KBC Eco Fund World(in the currency of the sub-fund)


264,816,406.59





Nil




Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 11,041.23 2,925.04 4,551.38 2,210.69 49,383.54 11,162.45 60,545.992019 - 08* 7,839.65 4,921.11 11,334.55 942.95 45,888.64 15,140.61 61,029.252020 - 02* 6,851.79 3,247.94 3,547.82 644.17 49,192.61 17,744.38 66,936.99



2018 - 08* 10,814,535.03 2,210,365.76 4,488,948.61 1,661,736.092019 - 08* 7,808,538.58 3,725,278.69 11,437,126.46 708,862.372020 - 02* 7,788,946.46 2,733,359.64 4,092,364.14 517,593.66



2018 - 08* 59,133,690.22 1,021.38 778.882019 - 08* 60,344,408.26 1,055.33 787.062020 - 02* 65,662,612.33 1,056.52 771.49


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Institutional SharesPeriod Change in number of shares in circulation


Capitalization Distribution Capitalization Distribution Capitalization Distribution Totaal2018 - 08* 44,700.00 0.00 146,800.05 146,800.052019 - 08* 50,000.00 17,000.00 179,800.05 179,800.052020 - 02* 36,300.05 143,500.00 143,500.00



2018 - 08* 44,426,836.00 0.002019 - 08* 50,632,616.00 17,423,360.002020 - 02* 43,131,525.00



2018 - 08* 150,398,995.58 1,024.522019 - 08* 191,824,902.09 1,066.882020 - 02* 154,195,102.05 1,074.53


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BE0177657500KBC Eco Fund World Classic Shares DISAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 16.6% -2.0% 13.9% 16.0% 30.9% -8.6% 20.4% 3.6% 3.0% 5.0%


KBC Eco Fund World Classic Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 16.7% -2.0% 13.8% 16.1% 31.0% -8.6% 20.8% 3.6% 3.0% 5.1%

116



Shareclasses

Benchmark

Shareclasses

Benchmark

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Benchmark

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Benchmark

Startingdate

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DIS BE0177657500 EUR 5.00% 3.85% 4.27% 9.31% 30/04/1992 3.71%

CAP BE0133741752 EUR 5.06% 3.89% 4.37% 9.38% 30/04/1992 5.34%









117

Institutional SharesBE6257810497

KBC Eco Fund World Institutional Shares CAPAnnual performance on 29/02/2020 (in EUR)

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 in EUR 31.0% -8.5% 21.0% 3.7% 3.2% 6.4%

118



Shareclasses

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Startingdate

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CAP BE6257810497 EUR 6.35% 4.40% 4.72% % 25/09/2013 8.81%


Institutional Shares• The bar chart shows the performance for full financial years(period of 12 months prior to the half-yearly







119




Institutional Shares Capitalisation :Ongoing Charges : 0.506%Transaction costs : 0.106%














Institutional SharesFee for managing the investment Max 1.50% per year calculated on the basis of the average total net

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KBC Eco Fund Semi-annual report 29 February 2020€¦ · Organisation of the Bevek KBC Eco Fund...

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